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🤖 Informatica's AI-As-A-Service

🤖 Informatica's AI-As-A-Service

Plus, are GameStop short sellers getting cold feet?

June 12, 2024

Pencils down, it’s time for lunch. Here’s what you missed this morning:

🟩 | Market Snapshot: All three major indexes rose, and the S&P 500 and the Nasdaq composite rose to fresh highs as investors wait for the Fed’s June interest rate decision.
🏛️ | In focus: Good news: inflation is cooling. The Consumer Price Index was flat month over month, while analysts expected 0.1% growth. Year over year, CPI increased 3.3%, marking a slight slowdown from the previous 3.4% pace.
❌| Noteworthy: Andrew Left’s Citron Research announced it is no longer shorting Game Stop. The firm stated, “Despite analysts setting an $11 target today, we respect the market’s irrationality.”
🤖 | The Midday Trade: Informatica’s AI-As-A-Service. Scroll down for more.

Plus, our partner is on a mission to show people how they could start targeting an extra $500 a week.

And, click here or the button below to share The Midday Trade with a friend and unlock exclusive access to JPMorgan's top stock picks, delivered straight to your inbox.

TOGETHER WITH JACK CARTER TRADING

Bridging the Financial Divide: A Step-by-Step Trading Guide!

The average household has just north of $5,000 a month in expenses…

I’m talking about things like healthcare, food, transportation…

Clothing, electricity… Just the bare necessities.

Meanwhile, the average monthly income in the United States is only $4,340 a month…

If we’re being honest that’s a huge income gap many folks can’t fill right now…

But that’s exactly why I’m on a mission…

To show a small group of people today exactly how they could start targeting an extra $500 or more week after week…

Step-by-step. Starting right now.

STREET STATS

Credit: Statista

MORNING MOVERS

GameStop, Oracle & Klaviyo

GME: Shares of GameStop surged after the company raised $2.14 billion by selling 75 million shares (YF)

ORCL: Oracle’s stock popped after the company’s fourth-quarter results showed a strong RPO backlog and cloud deals with Microsoft and Google (CNBC)

RTO: Pest control company Rentokil Initial saw its stock rise on news that Nelson Peltz’s Trian Partners amassed a significant stake in its parent company (CNBC)

KVYO: Marketing automation company Klaviyo received an upgrade from Barclays to overweight from equal weight, causing shares to rise (SA)

AVGO: Broadcom’s stock rose nearly 2% as investors wait for the company to announce earnings after the markets close today (YF)

TOP CALLS

Robinhood: JMP Securities Reiterates Market Outperform on Robinhood Markets, Maintains $30 Price Target (Trade It)

Constellation Energy: RBC Capital Reiterates Sector Perform on Constellation Energy, Maintains $218 Price Target (Trade It)

California Resouces: RBC Capital Reiterates Outperform on California Resources, Maintains $65 Price Target (Trade It)

NICE: Wedbush Reiterates Outperform on NICE, Maintains $250 Price Target (Trade It)

Northland Power: Scotiabank Maintains Sector Perform on Northland Power (Trade It)

Autodesk: RBC Capital Reiterates Outperform on Autodesk, Maintains $260 Price Target(Trade It)

THE MIDDAY TRADE

Informatica’s AI-As-A-Service

Poised for Success

The list of companies benefitting from the expansion of AI technology is long, and according to Scotiabank (BNS), US-based software developer Informatica (INFA) is one of them.

According to analyst Patrick Colville, Informatica has been solving data management issues for customers for over 30 years. Colville believes this expertise makes Informatica well-positioned to partner with companies developing generative AI.

Improving Efficiency

Informatica launched its new AI technology, ClaireGPT, last month. According to the company, it can provide businesses with information by pulling data from several linked third parties, such as Salesforce (CRM), Amazon Web Services (AMZN), and internal databases. This could cut days off employees' time to complete tasks.

Scotiabank notes that, while promising, the GPT is still in its infancy and probably won’t be a significant source of revenue this year. That being said, it is still bullish.

Room to Grow

The bank is predicting Informatica’s share price will see a jump to $33 over the next 12 months. However, the rest of Wall Street is even more bullish, with an average price target of $38.41.

RBC Capital, whose 12-month price target is $41, believes the company has an advantage over its competition thanks to its Intelligent Data Management Cloud product. The firm also believes ClaireGPT allows it to provide businesses with a fuller analysis of complex questions.

The stock is up just over 4% YTD and over 56% over the past 12 months. If analysts are correct, despite the gains, it may still be trading at great value.