Monthly Buzz: Market float in AI bubble
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Welcome back to Monthly Buzz!
Earlier this month, the strong earnings of big tech companies, particularly Apple, helped offset the impact of a 25 basis point rate hike by the Federal Reserve and the ongoing regional banking crisis. Concerns about the stability of the financial sector and cooling inflation data weighed on market sentiment, leading many to believe that the central bank would soon cut interest rates.
As the month progressed, major stock indices rebounded as concerns over debt subsided, and the market witnessed a surge in technology stocks driven by the AI trend. Nonetheless, with inflation data indicating a higher probability of a Fed rate hike, market participants have adjusted their expectations, now anticipating the central bank to pause its rate hike in June.
The three major indexes finished the month with different results. Fueled by AI hype, the tech-heavy Nasdaq climbed 5.80%, the S&P 500 was up 0.25% during the month, and the Dow was down 3.49%.
In terms of sector performance during the month, the Information Technology sector takes the lead, and Communication Services and Consumer Discretionary also outperformed. Sectors such as Energy, Materials and Consumer Staples were the biggest losers. (Data as of May 31, 2023)
Let's take a look at how the stocks that created the most buzz on the moomoo app performed during the month.
Note: The number of buzz stars is based on the search and message volumes of the stocks on moomoo (data as of May 31, 2023).
1. TSLA – Buzzing Stars: ⭐⭐⭐⭐⭐
May 05: Tesla shares soared 5.50% after it raised the prices on certain models in China for the second time in a week. Earlier this week, the EV maker hiked prices across the U.S., China, Japan and Canada. The new price hike comes after a slew of price cuts that helped stoke demand.
May 17: Tesla shares rose 4.41% after its annual shareholder meeting late Tuesday; its Chief Executive Elon Musk confirmed that the Cybertruck will be on sale this year, repeated his bullish comments about improvements in Tesla's self-driving technology, and said Tesla would advertise its products.
May 22: Tesla shares rallied 4.85% after Tesla Asia posted a two-minute video on Twitter that suggests the company is starting to work on delivering on its advertising promise.
2. MULN – Buzzing Stars: ⭐⭐⭐⭐
May 02: Mullen Automotive shares rallied 8.43% after it provided an update on its cash position and purchase orders. The company noted that it has received $263 million in purchase orders for Mullen Class 1 and Class 3 EV vans and trucks from Randy Marion Automotive Group.
May 03: The shares of Mullen Automotive dropped 21.11% after the company announced a 1-for-25 reverse stock split, effective on May 4.
3. NVDA – Buzzing Stars: ⭐⭐⭐⭐
May 01: NVIDIA shares rallied 4.18%. Boosted by ON Semiconductor's positive earnings and upbeat guidance, semiconductor companies' shares were boosted, with the iShares Semiconductor ETF closing up 0.91% and the SOX rising 0.81%.
May 18: NVIDIA shares rallied 4.97%. NVIDIA officially announced the GeForce RTX 4060 family of GPUs, with two graphics cards that deliver all the advancements of the NVIDIA() Ada Lovelace architecture — including DLSS 3 neural rendering and third-generation ray-tracing technologies at high frame rates — starting at just $299.
May 25: NVIDIA shares surged 24.37% after the company reported quarterly results, which reset the bar with an exceptional beat and raise performance supported by growing demand for artificial intelligence projects from companies.
4. AMC – Buzzing Stars: ⭐⭐⭐
May 05: AMC Entertainment stocks dropped 0.51% after a beat on revenues led to a better loss than expected in its first-quarter earnings. Attendance grew 22% Y/Y to 47.6M, offering new signals of an ongoing slow but steady recovery at the box office.
5. AAPL – Buzzing Stars: ⭐⭐⭐
May 05: Apple shares were trading 4.69% higher after its Q2 earnings release. Apple beat estimated earnings by 6.29%, reporting an EPS of $1.52 versus an estimate of $1.43. It set $90 billion in share repurchases and raised quarterly dividend by 4%.
May 23: Apple shares slid 1.52% after House Speaker Kevin McCarthy and President Biden failed to reach a deal to raise the debt ceiling following a high-stakes meeting at the White House. The S&P 500 was down 1.12%, Nasdaq was down 1.26%.
6. TOP – Buzzing Stars: ⭐⭐⭐
May 01: TOP Financial Group shares dropped 52.39%, after spiking more than 600% on Friday amid discussions on the popular subreddit WallStreetBets (WSB), a key player in the meme stock phenomenon that fueled rallies in AMC Entertainment Holdings Inc. (AMC), GameStop Corp. (GME) and Bed Bath & Beyond Inc. (BBBY).
May 03: TOP Financial Group shares surged 59.97%. A look at the last three months in trading for TOP stock underscores the potential that this is a new meme stock.
May 30: TOP Financial Group shares rallied 13.58% the day it resumed trade after the SEC ordered this Hong Kong online brokerage stock to suspend trading for 10 days.
7. NIO – Buzzing Stars: ⭐⭐⭐
May 02: NIO shares were trading 4.61% lower after it reported 6,658 new vehicles delivered in April, the lowest sales month since this year, up 31% Y/Y and down 36% M/M, with Chinese new energy vehicle companies' April deliveries diverge significantly.
May 22: NIO shares rallied 8.92% among U.S. EV stocks collectively soared. The company was recently found to file five GPT-related trademark applications on May 15, and their classifications involve communication services, scientific instruments, construction, and social services.
May 19: NIO stocks plummeted 9.49% after its peer XPeng's first-quarter sales fell short of Wall Street estimates, and the second-quarter outlook wasn't great either, indicating a demand problem.
8. BABA – Buzzing Stars: ⭐⭐⭐
May 11: Alibaba shares jumped 5.96%. Chinese tech stocks moved higher in pre-market trading on Thursday after JD.com reported first-quarter results that handily topped expectations.
May 18: Alibaba shares plummeted 5.41% following its March quarter earnings results, as China's post-reopening consumption recovery proved softer than hoped for. Analysts also noted a cautious tone from the company's management during its earnings call.
9. FRCB – Buzzing Stars: ⭐⭐⭐
May 03: First Republic Bank plunged 90.50%. S&P further downgraded First Republic Bank's junk credit rating on Tuesday after regulators took over the bank and sold its assets to JPMorgan Chase. S&P downgraded the bank to "CC" from "B+" and said it expects First Republic's default to be "almost certain."
May 26: First Republic Bank stocks rallied 7.19% after JPMorgan notified about 1,000 First Republic Bank employees that they aren't being given jobs even temporarily, reported Bloomberg.
10. AMD – Buzzing Stars: ⭐⭐
May 03: Advanced Micro Devices shares dropped 9.22% after the chip maker reported an earnings and revenue beat but issued weaker-than-expected sales forecasts. The company now expects revenue of $5.3 billion, partly by declining demand for PCs.
May 25: Advanced Micro Devices shares soared 11.16% after its peer NVIDIA's earnings beat market estimates. The AI hype drove the US market sentiment, with Nasdaq Composite up 1.71% and S&P 500 up 0.88%.
Source: All the news events mentioned above are from moomoo news. The percentage change data of the above stocks are from moomoo's daily quotes.
That's all for today's Monthly Buzz. Thanks for reading!
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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