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Markets are closely monitoring China's potential response to trade tariffs, as highlighted by UBS's Lee. Microsoft collaborates with 728 third-party vendors, utilizing cookies to enhance service delivery and ad personalization. Users can manage their preferences regarding data usage and consent.
Matador Technologies, a Canadian crypto firm, plans to adopt Bitcoin as a treasury reserve asset, starting with a $4.5 million purchase. The company, which aims to launch a platform for trading digital representations of gold by early 2025, has seen its stock price drop 35% since its recent debut on the TSX Venture Exchange. Meanwhile, Bitcoin's price has fallen below $93,000, marking its lowest point in nearly a month, as market conditions shift.
Dow Jones futures were stable ahead of Tuesday's market open, while Bitcoin fell below $94,000 for the first time since late November, impacting related stocks like Coinbase and MicroStrategy. Taiwan Semiconductor Manufacturing (TSMC) broke out past a key buy point, closing in the buy zone, as the Dow Jones Industrial Average rose 0.2% and the S&P 500 climbed 0.7%. The economic calendar is light this week, with new home sales expected to show modest recovery.
Apple is nearing a historic $4 trillion market valuation, driven by investor optimism surrounding its AI advancements and potential iPhone supercycle. Despite recent sluggish iPhone sales, analysts predict a rebound in revenue by 2025 as Apple expands its AI features and geographic reach. The company's shares have surged approximately 16% since early November, reflecting strong market confidence.
U.S. stocks showed mixed results as the Dow dipped 0.2%, while the S&P 500 and Nasdaq rose 0.3% and 0.7%, respectively, amid hopes for a Santa Claus rally. Eli Lilly's shares climbed after the approval of its weight-loss drug for sleep apnea, while Treasury yields hit a new high at 4.58%. Economic data revealed a drop in consumer confidence and disappointing new home sales, with the stock market closing early on Tuesday and remaining shut on Wednesday.
As 2025 approaches, the Ark Innovation ETF is poised for recovery amid a tech sector rally, though some mega-cap stocks may face valuation challenges. While the Magnificent Seven have driven market gains, analysts warn that companies like Apple and Tesla may struggle due to high price-to-earnings ratios. In contrast, AI software stocks are expected to gain traction, with a shift in investor focus from hardware to practical applications of AI, benefiting companies like SoundHound and Palantir.
Coinbase has surpassed Nasdaq and the Hong Kong Stock Exchange in transaction revenue, generating $5.75 billion over the past year, though it still lags in trading volume. Despite a recent revenue dip to $1.2 billion in Q3 2024, analysts predict growth potential in international markets. CEO Mouloukou Sanoh anticipates Coinbase could become a leading global exchange in the next decade.
UBS has raised its price target for Microsoft from $500 to $525 while maintaining a 'Buy' rating. Analyst Karl Keirstead highlighted strong cost control and provided an update on the company's AI developments, reinforcing confidence in Microsoft's growth potential.
UBS has raised its price target for Microsoft, indicating further potential for the tech giant. The Swiss bank continues to recommend a 'Buy' rating, reflecting confidence in Microsoft's growth prospects. The original study was published on December 18, 2024.
UBS maintains a positive outlook on Microsoft Corporation, the global leader in operating systems and software development for PCs and servers. The company's revenue is primarily derived from operating systems and application development tools (49.4%), followed by cloud-based software applications (25%), and video game consoles and software (8.8%). Notably, 50.9% of its sales come from the United States.

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