1. Apple's Q2 FY25 financials show modest growth (5% revenue, 4.8% net earnings) driven by record services revenue ($26.6B, 75.7% margin); 2. iPhone sales stagnate (+2%) with declining market share, while facing $900M tariff risks and escalating AI R&D costs; 3. Valuation concerns persist with ~30x P/E and 2.7x PEG ratios, 46% above sector median despite limited earnings growth.
Recent #Rating Downgrade news in the semiconductor industry
1. Negative divergence in MACD, RSI, and stochastics indicates a potential top and major reversal. 2. Mixed recent earnings with revenue growth and EPS reaching three-year lows. 3. Valuation seems excessive with a high P/S ratio relative to revenue growth and peers. 4. Both technical and fundamental setups are unappealing, suggesting a sell for Snowflake stock.
1. Despite beating revenue estimates, Super Micro Computer faces significant regulatory concerns; 2. The company's auditor resigned, and it has previous SEC charges and potential delisting from Nasdaq; 3. The analyst downgrades the rating to Hold due to potential long-term risks.
1. Last year, I gave AT&T a buy rating due to its cheap valuation and earnings beat. The stock has since rallied 40%. 2. Today, AT&T is at 10 times earnings with no growth, no longer a 'deep value' play. 3. I am downgrading my AT&T rating to hold.
1. Tesla's Q2 automotive revenue missed estimates and expects lower vehicle volume growth in FY2024; 2. The company's total revenue exceeded expectations, mainly driven by a 100% YoY growth in energy storage revenue; 3. Despite Elon Musk's optimism on autonomous driving, the stock's high valuation and weak fundamentals suggest a 'strong sell' rating.