In today’s briefing:
- Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
- FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
- [US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness
- [US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook
- Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
- Darden’s Uber Partnership and Steakhouse Boom: Why Its Stock Is Holding Strong Despite Dropping Sales! – Major Drivers
- FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers
- Why General Mills’ Snacks and Cereal Are Unstoppable Despite Market Shifts! – Major Drivers
- Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers
- Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers
Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
- NVIDIA Corp (NVDA US) CEO Mr. Jensen Huang announced plans to establish an offshore headquarters in Taipei during his visit this June.
- From a geopolitical perspective, Taiwan is one of the focal points where the U.S. and China could potentially be in conflict.
- Focusing on AI, NVIDIA Corp (NVDA US) is currently attracting significant attention, but the decision to establish an offshore headquarters in Taipei is raising curiosity.
FedEx’s $30 Billion Spin-Off: A Game-Changer for Freight and Shareholders? – Major Drivers
- FedEx Corporation is embarking on a transformative journey with its announcement to spin off FedEx Freight into a standalone publicly traded company within the next 18 months.
- The move, estimated to unlock over $30 billion in value, aims to streamline FedEx’s core operations and capitalize on the rising valuations of standalone trucking companies.
- The spinoff is seen as a strategic step to enhance focus, competitiveness, and shareholder value.
[US Crude Oil Options Weekly 2024/51] WTI Futures Fall on Weak China Data and Fed Hawkishness
- WTI futures fell 2.6% for the week ending 20/Dec, pressured by weak economic data, a robust dollar, and the Fed’s hawkish outlook on rate cuts in 2025.
- WTI options Put/Call volume ratio fell to 0.95 from 1.15 (13/Dec) last week, as call volume dropped by 52.5% WoW while put volume decreased by 60.8%.
- WTI OI PCR rose to 0.87 from 0.85 last week. Call OI fell by 18.5% WoW, while put OI declined by 16.3%.
[US Nat Gas Options Weekly 2024/51] Henry Hub Surged for the Second Week on Robust Demand Outlook
- US natural gas prices surged by 14.3% for the week ending 20/Dec, driven by rising LNG exports, favourable long-term weather forecasts, and stronger-than-expected declines in natural gas stockpiles.
- Henry Hub Put/Call volume ratio fell sharply to 0.60 from 1.10 (13/Dec) the previous week as call volumes surged by 228.8% WoW, while put volumes increased by 77.6%.
- Henry Hub OI PCR inched up to 0.84 from 0.83 compared to last week. Call OI rose by 5.3% WoW, while put OI increased by 6.0%.
Jabil Inc.: Can Its AI and Data Cloud Expansion Give Them A Competitive Edge? – Major Drivers
- Jabil Inc. entered the first quarter of its fiscal year 2025 with a relatively solid performance, as evidenced by its reported revenues and continued efforts in restructuring its business model.
- The company reported $7 billion in revenue for the quarter, representing a 1% increase when excluding the impact of a prior-year divestiture in the Mobility segment.
- Core operating income was $347 million, with a margin holding steady at 5%, despite a modest impact from recent hurricanes.
Darden’s Uber Partnership and Steakhouse Boom: Why Its Stock Is Holding Strong Despite Dropping Sales! – Major Drivers
- Darden Restaurants recently delivered mixed financial results for its first fiscal quarter, marked by an earnings miss and a drop in same-store sales but bolstered by news of a promising partnership with Uber Technologies.
- The company reported adjusted earnings of $1.75 per share, slightly below analysts’ estimates of $1.83, and revenue of $2.76 billion, missing the consensus forecast of $2.8 billion.
- While total revenue improved year-over year due to acquisitions such as Tex-Mex chain Chuy’s for $605 million, same-store sales fell 1.1%, signaling challenges in attracting diners.
FactSet Research System: Its Monetization of Gen AI Products Could Be A Multi-Faceted Growth Opportunity? – Major Drivers
- FactSet delivered a mixed set of results for its first fiscal quarter of 2025, showcasing positives in operating performance amid a backdrop of economic uncertainties and industry-specific challenges.
- The company reported 4.5% growth in organic Annual Subscription Value (ASV) year-over-year, supported by favorable developments in its wealth management segment and a 7% growth in the Asia-Pacific region.
- FactSet’s adjusted operating margin stood at 37.6%, and adjusted diluted earnings per share (EPS) reached $4.37.
Why General Mills’ Snacks and Cereal Are Unstoppable Despite Market Shifts! – Major Drivers
- General Mills has shown a keen focus on accelerating its organic sales growth, particularly through targeting volume growth.
- Leadership has prioritized enhancing market competitiveness by employing a “remarkable experience framework” to broaden its market share.
- There are positive trends in consumer engagement with core brands, bolstered by increased investment in product innovation, brand building, and promotional activities.
Lamb Weston Holdings Inc.: Expanded Customer Base & Volume Growth Driving Our Bullishness! – Major Drivers
- Lamb Weston reported financial results for the second quarter of fiscal year 2025, which fell short of expectations amidst challenging operating conditions.
- The company experienced an 8% decline in net sales compared to the same period last year, driven primarily by a 6% reduction in volume due to declining restaurant traffic both domestically and internationally.
- In the backdrop of a competitive environment, Lamb Weston faced incremental customer share losses and exit from lower-margin business in EMEA, further impacting sales and volume negatively.
Micron Bets Big on AI Chips Amid Sluggish Smartphone and PC Sales But Will It Work? – Major Drivers
- Micron Technology Inc., a key player in the computer-memory chip industry, has faced significant headwinds, as evidenced by its recent revenue forecast, which missed analyst expectations.
- The company projected fiscal second-quarter revenue of $7.9 billion, far below the average estimate of $8.99 billion, while profit forecasts also lagged significantly.
- These results reflect sluggish demand in its largest markets—smartphones and personal computers—despite a notable surge in data center-related revenue and strong orders for artificial intelligence (AI) components.
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