April 24-28st Trade Ideas

$AMD – Advanced Micro Devices – UPDATE
Recent News
Wells Fargo recently raised AMD’s price target from $85 to $120, representing a 32% increase over the stock’s current price. The company has a track record of phenomenal development, and its expanding positions in numerous key sectors should keep it thriving for decades. Furthermore, AMD has a number of significant new products in the works; two new Radeon Pro graphics cards were just released, and that’s only the beginning. 

Trade Ideas

  • AMD is trading near an important support level around the $85 range, which if the trend falls through the supports, it may head toward the $75-80 range.
  • On the upside, next important resistance will be around the $99-100 which will be the target if the trend bounces from the current support level.
  • AMD is expected to have earnings on 5/2 as well and may vary in the recent coming weeks in terms of higher volume and larger swings.

Shares Outstanding: 1.62B Share Float: 1.60B


$AMZN – Amazon
Recent News
UBS analysts said that Amazon Web Services will be the focus of investors at Q1 results, but they do not expect to see line of sight to AWS stabilization this quarter. UBS lowered its AWS estimates for 2023 and 2024 due to continued weakness and rationalization of cloud spending. The cloud unit will remain challenging in the near term, but new AI-centric workload investments could increase cloud consumption. UBS cut Amazon’s price target to $125 from $127 while keeping its buy rating.

Trade Ideas 

  • Amazon is trading slightly below its 200D Simple Moving Average (SMA) on a daily chart, which may cause some near term resistance.
  • However, this is about $20 below recent analyst price targets, which could mean Amazon is trading at a fair price as of now.
  • $AMZN has shown support on the 50D SMA on a 4hr chart previously, an area we think you should watch for buyers.

Shares Outstanding: 10.22B Share Float: 9.26B


$BAC – Bank of America Corporation – UPDATE
Recent News
Bank of America CEO, Brian Moynihan, commented on the recent flood of earnings reports from banks, stating that the first-quarter updates show the strength of the US financial system. While there have been recent collapses of Silicon Valley Bank and Signature Bank, Moynihan did not consider this a crisis. He noted that the stability of other business models has been reassuring and that the system worked by covering deposits and finding buyers for the failed banks. Moynihan also mentioned that loan demand is being impacted by the Fed’s increase in interest rates. Bank of America beat profit targets in the first quarter and saw record inflows of $37 billion from new and existing clients.

Trade Ideas

  • Earnings came out the morning of 4/18 and were better than expected. With estimations at $0.72 and actual being $0.94.
  • $BAC as of 4/24 fell through the previous support at the $30 level, it is currently trending downwards along with the 200 day SMA which is now acting as a solid resistance. However, price action appears to be squeezing between the 50 day SMA and the 200 day SMA in which case a break in price action may occur. 
  • The next strong support level can be found at the $29 level.
  • Although it is not clear whether the break will be downwards or upwards, DailyBubble will go out on a limb and surmise that it will likely break upwards.
  • $BAC after-earnings seems to be in a decent position, however it is important to note that this is a longer-play stock and best for investing longer-term. However, opportunities are present for some swing trading with good news and earnings, one may find a play to make. 

Shares Outstanding: 8.09B Share Float: 7.98B


$TSM – Taiwan Semiconductor Manufacturing Company – UPDATE
Recent News
Warren Buffett’s Berkshire Hathaway bought shares of Taiwan Semiconductor Manufacturing (TSMC) and then sold most of them shortly after, which confused industry observers as Buffett usually prides himself on long-term investments. However, in a recent interview, Buffett explained that his lieutenants bought the stock, and he decided to reverse most of that decision due to geopolitical concerns about Taiwan. This decision raised concerns among investors about the semiconductor industry.

Trade Ideas

  • There is currently a growing concern about the possibility of China invading Taiwan, which has led to speculation about a potential decline in TSM’s stock price. 
  • Given TSM’s significant presence in the semiconductor industry, this could present an opportunity for long-term investors to consider buying the stock in the future. 
  • Recent earnings reported by $TSM showed an EPS beat from $1.20 estimated to $1.31 actual. TSM is expected to remain the leader in process technology.
  • With an overall good earnings report, it may be seen at this time that fears are outweighing the news. It is likely that Warren Buffett’s exit has been priced in at this time, but overall fears may still remain over geopolitical concerns between China and the US over Taiwan.
  • We will continue to provide updates as we receive additional information.

Shares Outstanding: 5.19B Share Float: 4.86B

 

DailyBubble’s Disclaimer

This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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