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BigTech – Back on watch after leading the impressive rally on Thursday, chipmakers rallied sharply despite the mixed report from NVDA. Multiple positive notes on the chip sector this morning, AAPL and MSFT both higher in early trading as well. AMD, NVDA, AAPL, MSFT, AMZN, GOOGL

TSLA.NQ 0.74%
Tesla Inc – Back above $700 this morning, Credit Suisse out with a note on the stock this morning say “We anticipate near term (specifically Q2) to reflect some regression in terms of margins and total deliveries, led by challenges to production at Shanghai.” Despite lower cost of LFP cells the note says Long Range NMC battery vehicles are more profitable than LFP battery vehicles, due to higher prices of Long Range vehicles, says brokerage after meeting with management. Credit Suisse says for Tesla to produce at two shifts with meaningful volume, its China suppliers will also need to resume production. Adds that it sees Q2 deliveries tracking towards ~240,000 to ~250,000 units vs estimate of 295k units, led by reduced production from Shanghai, given slower-than-anticipated restart.

Retail Stocks – Under pressure again this morning as a group after GPS, COST and BIG all warned of lower margins going forward because of higher costs. Multiple PT cuts on GPS shares from analysts including JP Morgan after Gap slashed its annual results forecast pointing to poor fashion choices at its Old Navy line and weak demand in the face of decades-high inflation. Gap now expects fiscal 2022 per-share profit between 30 cents and 60 cents on an adjusted basis, compared with $1.85 to $2.05 earlier and far lower than Definitive estimates of $1.34. BIG shares are set to open at fresh 2 yr lows after reporting Q1 sales of $1.37 bln vs est of $1.46 and says trends “materially slowed” in April, forcing it to discount more. BIG also says it was holding off on providing Q2 profit outlook and will continue to take actions to reduce expenses. GPS, BIG, M, TGT, WMT, AEO, COST

PDD.NQ 8.87%
Pinduoduo Inc – Following BIDU and BABA yesterday the company reported better-than-expected quarterly revenue, as more people shopped online due to a resurgence in COVID-19 cases in parts of the country. Pinduoduo’s total revenue rose 7% to 23.79 billion yuan in the first quarter, compared with estimates of 20.61 billion yuan. The company’s net income attributable to ordinary shareholders was 2.6 billion yuan during the quarter ended March 31, compared with a loss of 2.91 billion yuan a year ago.

DELL.NY 9.26%
Dell Technologies – Higher on light volume after the pc maker beat Wall Street estimates for quarterly profit and revenue. The company also said it expects revenue to be in the range of $26.1 billion to $27.1 billion in the current quarter and forecast adjusted profit per share of between $1.55 and $1.70. Analysts estimate second-quarter profit of $1.47 per share and revenue of $25.6 billion. For the first quarter, the company reported adjusted profit of $1.84 per share and revenue of $26.12 billion, compared with estimates for a profit of $1.39 per share and revenue of $25.04 billion.

CGC.NQ -11.71%
Canopy Growth – Reported a larger adjusted core loss for the fourth quarter, as demand for cannabis fell from COVID-19 lockdown-induced highs, sending shares of the Canadian pot producer about 10% down. The company said it expects to turn a profit in 2024, excluding certain investments. Net loss attributable to the company for the reported quarter narrowed to C$574.62 million, or C$1.46 per share, from C$699.98 million, or C$1.85 per share, a year earlier.

Meme.Stocks 1.53%
Meme Stocks – Much lower volume premarket on both GME and AMC but worth keeping an eye on these for a possible late week rally into the long weekend. Earlier this week new data from analytics firm ORTEX suggested borrow costs for highly shorted GME shares were beginning to rise once again.

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