Amid a backdrop of proliferating cyberattacks, Morgan Stanley has upgraded its rating on cybersecurity firms CrowdStrike Holdings (CRWD, Financial) and Tenable (TENB, Financial). Analysts led by Hamza Fodderwala have shifted their stance to Overweight from Equal-weight, citing an improving demand outlook driven by accelerating cyberattacks, multiple new products, and generative AI tailwinds. CrowdStrike, which has seen a 150% rise in 2023, had its price target increased to $304 from $203, while Tenable's target was raised to $60 from $46. The bank's analysts believe there is still upside potential for these stocks, supported by positive reseller feedback.
Match Group (MTCH, Financial) saw its shares surge over 12% in pre-market trading following a report that activist investor Elliott had taken a roughly $1 billion stake in the company. Elliott is expected to discuss strategies for improving the company, which owns online dating platforms like Tinder and Hinge. Despite a 12% decline in Match Group's shares in 2023, the involvement of an activist investor has sparked a positive reaction in the stock market.
Qualcomm (QCOM, Financial) is making strides in artificial intelligence integration in the automotive sector. The company announced its use of the Snapdragon Digital Chassis to bring generative AI to vehicles, enhancing digital cockpits and connected car technologies. With a presence in over 350 million vehicles, Qualcomm is on track to achieve significant automotive-related revenue growth, aiming for $4 billion by 2026 and $9 billion by the end of the decade.
Alphabet's Google (GOOG, Financial) (GOOGL, Financial) is set to face a federal jury in Boston over allegations that its processors infringe upon a computer scientist's patents. The case could have significant financial implications, with Singular Computing seeking up to $7 billion in damages. Google has refuted the claims, stating that its processors were developed independently over many years.
BMO Capital Markets has initiated coverage on several internet and technology stocks, including Amazon (AMZN, Financial), Meta Platforms (META, Financial), and Alphabet (GOOG, Financial) (GOOGL, Financial). The firm highlights the potential benefits these companies could reap from content creators and artificial intelligence. BMO has given outperform ratings to Alphabet, Snap (SNAP, Financial), and Pinterest (PINS, Financial), while Meta has been started with a market perform rating.
Brookfield Asset Management (BAM, Financial) has received approval for a normal course issuer bid, allowing the purchase of up to 34,605,494 Class A shares. This move is part of a strategy to manage the company's share structure and reflects confidence in the firm's long-term prospects.
Realty Income (O, Financial) has priced a public offering of senior unsecured notes, aiming to raise a combined total of $1.25 billion. The proceeds from this offering are intended for general corporate purposes and are expected to close on January 16, 2024.
Grifols (GRFS, Financial) has faced a significant stock plunge following allegations by Gotham City Research of manipulated debt and EBITDA figures. Grifols has denied these claims, asserting the integrity and transparency of its disclosures. Spain's market regulator is investigating the matter.
BioNTech (BNTX, Financial) has projected its full-year revenue for 2024 at €3 billion, which is below the consensus estimate. The company expects to return to growth in 2025 and is preparing to launch its first oncology products by the end of that year.
United Airlines (UAL, Financial) and Alaska Airlines (ALK, Financial) have reported finding loose parts on some Boeing (BA, Financial) 737 Max 9 planes, raising concerns about quality control at Boeing. This follows an emergency landing incident involving an Alaska Airlines plane, prompting further investigations by the National Transportation Safety Board.
