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Street Calls of the Week

Street Calls of the Week Oct. 7, 2024, 3:14 a.m., readers: 15

This past week saw several key updates and insights from Wall Street analysts regarding major companies. Analysts made critical calls that could influence market movements and guide investors in their portfolio decisions. Below are some of the most notable calls from top analysts and firms this week: 1. Amazon (AMZN) Analyst: Morgan Stanley Call: Overweight Target Price: Raised to $175 from $150 Rationale: Morgan Stanley highlighted Amazon’s strong growth prospects, especially in its core e-commerce and AWS (Amazon Web Services) segments. The firm believes that Amazon’s continued investment in AI and cloud services will bolster its market leadership, driving higher earnings and long-term profitability. 2. Tesla (TSLA) Analyst: Piper Sandler Call: Neutral Target Price: $290 Rationale: Piper Sandler is taking a cautious stance on Tesla despite its recent stock rally. While acknowledging Tesla’s leadership in the EV market and energy solutions, the firm cited concerns about rising competition from traditional automakers and potential margin pressures. As a result, they maintain a neutral rating for now. 3. NVIDIA (NVDA) Analyst: Citigroup Call: Buy Target Price: $600 Rationale: Citigroup remains bullish on NVIDIA, driven by its dominant position in the AI and graphics processing unit (GPU) market. The analyst noted the growing demand for AI-powered solutions and the increasing adoption of NVIDIA chips in data centers and automotive applications, which could fuel sustained revenue growth. 4. Apple (AAPL) Analyst: Bank of America Call: Neutral Target Price: $190 Rationale: Bank of America retained a neutral stance on Apple due to concerns over potential saturation in the smartphone market and challenges in product innovation. Although Apple’s services segment continues to grow, the firm is cautious about near-term upside potential given supply chain risks and economic uncertainties. 5. Meta Platforms (META) Analyst: JP Morgan Call: Overweight Target Price: $385 Rationale: JP Morgan has a positive outlook on Meta Platforms, emphasizing the company's strong engagement on its core social media platforms and its potential to capitalize on AI-driven advertising strategies. The firm also views Meta’s development in the metaverse as a long-term opportunity that could create substantial revenue streams. 6. Microsoft (MSFT) Analyst: Goldman Sachs Call: Buy Target Price: $400 Rationale: Goldman Sachs reiterated its bullish call on Microsoft, citing the tech giant’s robust growth in cloud computing, AI, and software services. The analyst sees Microsoft’s strong positioning in enterprise solutions, along with its ongoing innovations in generative AI and its integration into products like Microsoft 365, as a key driver for long-term success. 7. Palantir Technologies (PLTR) Analyst: Wedbush Call: Outperform Target Price: $25 Rationale: Wedbush is optimistic about Palantir’s potential to scale up its government and enterprise contracts. The firm noted that Palantir’s AI-powered platforms are becoming increasingly critical in both defense and commercial sectors, positioning the company for significant revenue growth in the coming years. 8. Alphabet (GOOGL) Analyst: UBS Call: Buy Target Price: $145 Rationale: UBS expressed confidence in Alphabet's growth trajectory, particularly in its core search business and YouTube segment. The firm sees Alphabet’s AI integration across its services as a game-changer, enabling better ad targeting and driving higher user engagement across platforms. Takeaway for Investors This week's analyst calls highlight several key themes, including the growing role of AI, cloud computing, and metaverse opportunities for tech companies. While some firms are taking a cautious approach due to market competition or macroeconomic factors, the overall sentiment remains optimistic for companies with strong fundamentals and innovation strategies. Investors should weigh these analyst calls against their own portfolio goals and risk tolerance, as these insights could play a pivotal role in shaping market trends in the near future.

About NASDAQ: GOOG

A lphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

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