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💻 Data Center Landlords
Plus, a new horse has entered the autonomous ride service race.
Hi All - Happy Thursday.
We are going to continue offering polls this week to gather your thoughts on “The Midday Trade” and help us make a decision on how to move forward with it.
There are 2 Days left to give us your feedback on the “Midday Trade,” and any input is greatly appreciated!
What did you think of "The Midday Trade"? |
Moving on, here’s what you missed this morning:
🟥 | Market Snapshot: Each of the three major indexes declined approximately 1% this morning as fresh economic data fueled fears over the state of the US economy.
🏢 | In focus: The Labor Department reported this morning that initial applications for US unemployment benefits increased by 14,000 to 249,000 last week. This marks the highest level in almost a year, showing that the labor market is slowing.
😥 | Noteworthy: Bill Ackman’s Pershing Square withdrew its IPO offering for a US closed-end fund. This comes after Pershing Square slashed its fundraising target from $25 billion to just $2 billion.
💻 | The Midday Trade: Data Center Landlords. Scroll down for more.
Plus, today’s partner identified top credit cards that help you pay down your debt, not add to it.
TOGETHER WITH THE FINANCEBUZZ
If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances. Our credit card experts identified top credit cards that are perfect for anyone looking to pay down debt and not add to it.
STREET STATS
MORNING MOVERS
MRNA: Shares of Moderna plunged after the pharma giant cut its full-year revenue guidance by 25%, citing very low EU Covid vaccine sales (Barron’s)
SHAK: Shake Shack’s stock shot higher after the fast-casual restaurant chain reported a 50% jump in earnings (IBD)
META: Meta’s stock surged after the company beat Wall Street estimates for revenue and profit and issued a better-than-expected forecast (CNBC)
TDOC: Shares of Teladoc tumbled after it reported a second-quarter loss and its revenue missed estimates (YF)
CHRW: Logistics company CH Robinson saw its stock jump higher after its new operating model showed greater efficiency and drove Q2 profits up 25% (SA)
TOP CALLS
Boeing: Stifel Maintains Buy on Boeing, Raises Price Target to $235 (Trade It)
Confluent: RBC Capital Maintains Outperform on Confluent, Lowers Price Target to $30 (Trade It)
Teladoc Health: DA Davidson Maintains Neutral on Teladoc Health, Lowers Price Target to $8 (Trade It)
Ingevity: Oppenheimer Maintains Outperform on Ingevity, Lowers Price Target to $50 (Trade It)
Jazz Pharmaceuticals: RBC Capital Maintains Outperform on Jazz Pharmaceuticals, Lowers Price Target to $174 (Trade It)
Oshkosh: Stifel Maintains Buy on Oshkosh, Lowers Price Target to $135 (Trade It)
THE MIDDAY TRADE
Data centers are being built at breakneck speed all over the country, and Moody’s (MCO) believes that there are two real estate investment trusts that have positioned themselves well to take advantage.
Those REITS are Digital Realty Trust (DLR) and Equinix (EQIX).
Moody’s senior credit officer Ranjini Venkatesan believes that these two trusts, which serve as data center landlords, are in the process of investing in global projects to meet the rising demand.
Digital Realty Trust
Digital Realty Trust is up over 10% YTD and its dividend yield sits at 3.32%. Around 59% of its revenue comes from the Americas, while 31% comes from Europe, the Middle East and Africa. It certainly has geographic diversification down.
Venkatesan believes that Digital Realty Trust, as well as Equinix, will be successful in attracting tenants due to their diverse portfolios and significant property pipelines.
Equinix
Equinix is down over 1% YTD, and its dividend yield is currently 2.19%. The share price drop is largely due to an accusation from Hindenburg that its management had manipulated a key profitability metric. Equinix has since claimed that an independent investigation found no wrongdoing.
Currently, 44% of its revenue comes from the Americas. 34% comes from Europe, the Middle East, and Africa, and 22% from APAC.
Combined, these trusts own around 71 million square feet of data center space around the world.
According to Moody’s, these trusts have a significant opportunity for future growth, as data centers are some of the most sought-after facilities in the world due to the AI revolution.
TOGETHER WITH THE FINANCEBUZZ
If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances. Our credit card experts identified top credit cards that are perfect for anyone looking to pay down debt and not add to it.
SURVEY THE STREET
There’s been a lot of news surrounding Tesla’s Robotaxi plans. Back in June, Tesla cleared a regulatory hurdle to launch fully self-driving cars in China.
However, another competitor has entered the race.
Uber and Chinese automaker BYD announced a multi-year partnership that aims to bring 100,000 electric BYD cars onto its ride-hailing platform. Importantly, the two companies are also planning to develop “autonomous-capable vehicles.”
The future is looking bright for Uber. Once considered a perennially unprofitable company, Uber ended 2023 in the black for the first time with a net income of $1.9 billion. For comparison, Uber lost $1.9 billion in 2022.
Who will win the autonomous ride service race? |
Plus, Yesterday’s Poll + Results:
🟩🟩🟩🟩🟩🟩 Yes ✅
🟨🟨🟨⬜️⬜️⬜️ No ❌
What did you think of today's edition? |
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