AMZN Dec 2024 220.000 call
- Yahoo Finance Video
Rate cuts plus innovation equals 'magic' for tech: Analyst
Goldman Sachs managing director Kash Rangan sits down with Brian Sozzi and Madison Mills at the Goldman Sachs 2024 Communacopia and Technology Conference to discuss the Tech sector's outlook as the Federal Reserve kicks off its rate-easing cycle. "With every economic cycle, as we come out of an economic cycle, coincidentally, there's always a new tech cycle that also goes with it," Rangan tells Yahoo Finance. He explains that after the 2008 recession, tech companies came out with cloud products, which eventually became "the catalyzing force for the tech industry." He notes that for real growth, there needs to be innovation alongside economic improvement: "It's not as easy as saying lower rates are good. I mean, they're kind of the first lift. It's the primer. The next thing, it has to be followed by real innovation." At this moment for tech, he believes "this game is about capital." Cloud, just like AI, was "capital-intensive," Rangan explains, and if companies like Microsoft (MSFT) and Adobe (ADBE) hadn't listened to investors, he argues that they wouldn't have the massive cloud businesses they have today. He adds, "Now we're augmenting human capital, I don't know, $20, $30 trillion? That installed base of human capital is far more valuable. That's cognition capital than compute capital. So this cycle, if done well, is going to be huge." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance Video
Nvidia's sell-off: Why this analyst is still bullish on the stock
Nvidia's (NVDA) stock has stumbled as investors grow concerned the AI demand hype may be slowing. Goldman Sachs lead analyst Toshiya Hari is still bullish on the stock for a couple of reasons. First, he says, "Demand for accelerated computing continues to be really strong," adding that it's more than hyperscalers looking to buy Nvidia's chips. Second, he thinks the company's competitive positive is still strong. He also thinks the stock has an attractive valuation and that the sell-off has been overdone. Investors have been increasingly scrutinizing the amount of money Big Tech has been spending on AI without much return on investment so far. Hari agrees that companies "need monetization for this to be sustainable," but he notes hyperscalers are seeing some return on those AI investments. He adds that if a lack of monetization becomes a problem, it will affect many companies, not just Nvidia. Watch the video above to hear what Hari has to say about companies like Amazon (AMZN) and Meta (META) developing their own chips. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Stephanie Mikulich.
- CNN Business
Amazon targets Aldi and Target with a new lineup of ‘no-frills’ groceries
Amazon is taking a page out of Aldi and Target’s playbook and launching a new line of budget-friendly food items in an attempt to attract price-conscious shoppers who are ditching name brands to save money.
