Reupload Note: We recently changed the way we host our site. Unfortunately, during the transition, our previously uploaded articles were lost. This article has now been reuploaded and was originally posted on June 23, 2024. Unfortunately, for this particular article, the images have been lost. So this article will be chart-less.
Summary
2 Companies Involved in Elon Musk’s New AI Startup
Nike (NKE) Turnaround?
Netflix New Announcement
A Nuclear Stock
The Market
The market had a productive week: the S&P grew 0.75% and the Dow Jones grew 1.61% this week.
Elon Musk announced that his AI company xAI has been using technology from Dell Technologies (DELL) and Super Micro Computer (SMCI), causing both stocks to shoot up in price, increasing 8.77% and 6.90% respectively. After Dell reported earnings in May the stock dropped significantly, but after this recent announcement, the stock has recouped a little but still hasn’t reached the former price of $179. With the AI craze in the market currently, Dell has room for growth. We believe that Dell can hit a high of $172.59 or a low of $130. SMCI has established a price floor of $724.57 and a ceiling of $937.94. The new AI news helped propel the stock to the ceiling, bouncing off it after hitting it. We expect the stock to fall to the floor and bounce off of it once again, but SMCI hitting higher highs can be a sign of it following the AI hype train and growing uncontrollably.
Nike had a good week, growing 3.66% in the past trading week. This past week is a bad reflection of Nike’s performance so far this year with the athletic footwear giant dropping 8.79% YTD. This disappointing fact has been caused by factors like economic conditions in China and competition like Deckers Outdoor (DECK). However, things may be looking up for Nike with the Olympics being this year. Nike has made specialized shoes for the American break-dancing team and will continue to sponsor countless Olympic athletes boosting the company's reach. Nike is also set to report earnings on the 27th, which, if promising, will be the first sign of a reversal of Nike’s down year.
Netflix had an excellent trading week, growing 4.42%, adding to Netflix’s 46.45% growth YTD. On the 21st Netflix announced “Netflix House”, an experiential immersive experience for fans. 2 locations are set to open in 2025, this announcement is what, for the most part, fueled Netflix’s growth this week. This growth isn’t bound to stop anytime soon, Netflix’s long-term potential is very high. However, we believe that the stock will drop a little to around $653.67 before rallying back up and hit $700.
Constellation Energy (CEG), the nation's largest nuclear plant operator, fell 0.25% this past trading week, a small setback in the 89.27% growth the energy company has experienced YTD. This major growth has been fueled by talk of Constellation helping tech companies open data centers next to their nuclear plants. AI is very power intensive, and many tech companies need access to plenty of clean energy, like nuclear energy. This proves, once again, that everything in today’s market is fueled by AI. We believe that Constellation’s stock will continue to grow in the AI environment that is the market and have set a price target of $235.
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