Just yesterday, markets celebrated the latest quarter-point cut from the Federal Reserve, which lowered rates to a range of 3.5% to 3.75%.
The central bank also announced that it would again purchase short-term bonds, thereby driving down short-term yields. It also removed language that the labor market “remained low.” That could mean the central bank may be more likely to ease to support the jobs market and not care as much about sticky inflation. At the same time, we may only see one cut next year.
Markets exploded on the news.
Today, markets are in the red after Oracle (NYSE: ORCL | ORCL Price Prediction) posted revenue of $16.06 billion, which is less than the $16.21 billion analysts were expecting. Software revenue was. $5.88 billion, which missed estimates for $6.06 billion.
However, despite the news, analysts are still bullish.
Wells Fargo, for example, has an overweight rating with a $280 price target. Bank of America has a buy rating and a price target of $300. Barclays has an overweight rating with a price target of $310 a share. UBS has a buy rating with a $325 price target.
Micron
UBS analysts just reiterated a buy rating on Micron (NASDAQ: MU) with a price target of $295 ahead of earnings next week. As quoted by CNBC, “Against this backdrop of tightening supply, we walk EPS estimates higher yet again and see EPS of ~$38 out in C2027E, justifying a PT of $295 (up from $275), and we remain Buy rated.”
Just yesterday, analysts at HSBC initiated coverage of MU with a buy rating and a $330 price target. Analysts at BNP Paribas also say Micron is likely to benefit from a “historic upcycle” aided by artificial intelligence.
Netflix
And down, but not out, shares of Netflix (NASDAQ: NFLX) are being viewed positively by analysts at Needham. The firm has a buy rating on NFLX and doesn’t believe it needs Warner Bros. Discovery. According to the firm, “NFLX buying WBD would put $83B of additional value at risk of being disrupted by GenAI. Without WBD, NFLX is more global, more nimble, more tech-first, and has more flexibility with the Hollywood unions (called Guilds),” as quoted by CNBC.
Just the other day, Evercore ISI reiterated an outperform rating on NFLX. The firm noted, “We acknowledge that NFLX shares have been largely reactive to recent developments re: potential strategic outcomes. But we believe Netflix’s long-term fundamental outlook is increasingly strengthening, thanks to its highly compelling value proposition, its excellent execution track record, and its improved global, competitive positioning,” as quoted by CNBC.
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