All Posts in "George"

Is Apple Inc. (NASDAQ:AAPL) the Best Tech Stock to Buy For Long-Term Investment?

We recently published a list of 12 Best Tech Stocks to Buy For Long-Term Investment. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other tech stocks to buy for long-term investment.

On April 1, Chris Verrone, chief market strategist at Strategas Research Partners, appeared on CNBC’s ‘Closing Bell’ to talk about his outlook on the tech sector. Verrone believes that most of the current market’s negative sentiment has already been factored into recent stock prices. He highlighted that even after the market’s decline, the VIX, and the currency and bond volatility are lower than they were during the mid-March stress period. Plus, fewer stocks are hitting new lows. He thinks that market lows are formed during periods of bad news, and the market will rally from its current level with an anticipated range of 5,900 to 5,950.

Verrone believes that the current downturn is more than a typical 10% correction so it will take some time to figure out the market’s true direction. He emphasized the importance of monitoring market breadth, new highs, and credit conditions in the upcoming weeks and months. He also acknowledged the shift in investor sentiment, with more bears than bulls. As the conversation touched on the impact of the Fed and politics in a market, Verrone stated that he pays more attention to what the 2-year Treasury yield tells him instead of listening to what Fed officials have to say. He noted that the 2-year yield’s decline from 3.83% to 3.85% suggests a shift in the market expectations for the Fed’s actions. He highlighted the resilience of financials during the correction and contrasted it with the weakness of tech. He thinks that, unlike financials that entered the correction as leaders, the tech sector might not be able to regain the leadership role.

While Verrone’s stance acknowledges the current weakness in tech, it’s important to note that the tech sector remains one of the more innovative markets in the long run. For instance, MAG7 continues to be a driving force for this market.

Our Methodology

We first sifted through financial media reports to compile a list of the top tech stocks that are being touted as long term investment plays. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A wide view of an Apple store, showing the range of products the company offers.

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. Its popular products include the iPhone, Mac, and iPad lines. It’s also known for its AirPods, Apple TV, Apple Watch, Beats products, and HomePod. The company provides AppleCare support and cloud services; and operates platforms like the App Store.

In the December quarter, the company’s Services segment made record revenue of $26.3 billion, which marked a 14% year-over-year increase. The company generated around $100 billion in services revenue in the past year. This growth was driven by an installed base of active devices which reached a record of more than 2.35 billion. The company has also seen all-time highs in transacting and paid accounts because of improved customer engagement. Notably, paid subscriptions have exceeded 1 billion.

The offerings in this segment include a range of categories, such as entertainment, productivity, and financial services. Apple TV+ is one instance, which attracts viewers through its original content. Another example includes the Find My services, which can help track luggage among other things. On March 25, UBS affirmed a Neutral rating on the company with a $236 price target.

The stock has been facing pressure due to the lack of an AI-driven iPhone upgrade cycle. However, Columbia Seligman Global Technology Fund is optimistic about the company due to iPhone 17’s AI potential. It stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”

Overall, AAPL ranks 8th on our list of the best tech stocks to buy for long-term investment. While we acknowledge the growth potential of AAPL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — April 13, 2025 By George in Equities
Is Microsoft Corp. (NASDAQ:MSFT) a NASDAQ Stock with the Highest Upside Potential?

We recently published a list of the 13 NASDAQ Stocks with the Highest Upside Potential. In this article, we are going to take a look at where Microsoft Corp. (NASDAQ:MSFT) stands against other NASDAQ stocks with high upside potential.

On April 7, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss how the current tariff environment could impact tech supply chains. Musk’s actions and Trump’s tariffs have contributed to broad economic uncertainty, which Ives also referred to as the economic Armageddon for US tech in an earlier conversation. He expressed concern about the structural supply chain challenges posed by recent tariffs and geopolitical tensions. Ives highlighted that the US tech sector has historically maintained an edge over China but this could be wiped out if manufacturing were relocated to the US. The logistical hurdles of building manufacturing plants in the US are not negligible and it would take 4 to 5 years to establish facilities capable of sustaining production levels comparable to those in Asia.

He also acknowledged that he hasn’t downgraded major stocks like the ones in MAG7 but remains cautious. If these previously highlighted issues persist for months, Ives anticipates drastic cuts in earnings. This uncertainty surrounding tariffs could lead to lower demand for emerging technologies like AI and cybersecurity. He explained that this situation could severely impact the US tech companies and lead to broader cuts across the tech sector — potentially up to 25% in earnings. He also criticized Elon Musk’s political involvement, which he believes has caused permanent damage to his brand and customer base. He estimated a 20% demand destruction in Europe and 10% in the US.

Our Methodology

We used the Finviz stock screener to select the 13 stocks with the highest analysts’ upside potential (at least 35%) as of April 8. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A development team working together to create the next version of Windows.

Microsoft Corp. (NASDAQ:MSFT)

Average Upside Potential as of April 8: 39.72%

Number of Hedge Fund Holders: 317

Microsoft Corp. (NASDAQ:MSFT) develops and supports software, services, devices and solutions worldwide. These are mainly offered through its Productivity and Business Processes segment, the Intelligent Cloud, and the More Personal Computing segment. It sells its products through OEMs, distributors, and resellers, and also directly through digital marketplaces, online, and retail stores.

On April 8, Jefferies lowered the price target on Microsoft from $500 to $475, while acknowledging the macroeconomic pressures that slightly reduced their fiscal year estimates by 1% to 2% for the software and internet sectors. However, the firm maintained a Buy rating on the stock because of the company’s position in AI-driven cloud, productivity, and business solutions.

In FQ2 2025, the company’s AI revenue surged by 175% year-over-year, which represented a $13 billion annual run rate. While Azure’s growth recently slowed down a bit, this performance excluded the impact of AI in this segment. Azure AI services grew by 157% in FQ2, which was 13 points of the segment’s overall growth. Over 200,000 monthly users are already on Azure AI Foundry, and Azure OpenAI app usage has doubled. Azure cloud revenue grew 31%. Microsoft Corp. (NASDAQ:MSFT) now expects 31% to 32% Azure growth in FQ3.

Generation Global Equity Strategy expressed optimism about the company due to its AI leadership potential. It stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:

“Microsoft Corporation (NASDAQ:MSFT), the world’s largest software company, has been in the portfolio for over a decade. We like the firm because its products align closely with society’s evolving needs. As the world digitises, demand for Microsoft’s tools will continue to grow. The company enjoys a wide economic moat – built on its unique market position, deep customer understanding and extensive global footprint.

Overall, MSFT ranks 11th on our list of NASDAQ stocks with the highest upside potential. While we acknowledge the growth potential of MSFT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — April 13, 2025 By George in Equities
Stock market today: Dow, S&P 500 post best week since 2023 to cap wild week of tariff-fueled chaos

US stocks turned higher on Friday to cap a chaotic week on Wall Street, as investors weighed the latest tariff-related developments in the trade war between the US and China. The S&P 500 (^GSPC) rose 1.8% after seesawing earlier in the session. The tech-heavy Nasdaq Composite (^IXIC) climbed 2.1%. The Dow Jones Industrial Average (^DJI) advanced 1.5%, about 600 points. Trump’s fast-moving tariff policy has whiplashed stocks this week with historic gains during Wednesday’s session but sharp losses on Thursday. In the end, the S&P 500 and Dow had their best weeks since 2023, while the Nasdaq’s 7% weekly gain was its best since 2022. Friday’s session caps a chaotic week on Wall Street, with an increased focus on waning appetite for US assets. The benchmark 10-year Treasury yield (^TNX) climbed to its highest level since February, closing around 4.5%. Meanwhile, the dollar (DX=F) index tumbled below the 100 threshold, while gold (GC=F) hit a fresh record. Consumer sentiment tumbled to its lowest level since 2022 in April as the impacts of President Trump’s tariff policies remained top of mind, with consumers expecting inflation to surge in the year ahead. China said Friday it will raise duties on imports of US goods to 125%, compared with the 84% previously planned, effective Saturday. The move is in direct response to Trump’s ballooning “reciprocal” tariffs on China, the commerce ministry said, but it also suggested it will “ignore” any retaliatory US hikes in duties. Big Wall Street banks got first quarter earnings season going in earnest on Friday, with results rolling in from JPMorgan (JPM), Wells Fargo (WFC), and BlackRock (BLK). JPMorgan CEO Jamie Dimon said the US economy is going through “extreme turbulence.”
George by — April 13, 2025 By George in Market Watch
Japan’s Nikkei slumps on trade war worries, stronger yen

TOKYO, April 11 (Reuters) – Japan’s Nikkei share average slumped on Friday in a brutal end to a volatile week as investors worried about the economic fallout from the rapidly escalating U.S.-China trade war as well as a strong yen that has been lifted by safe-haven flows. The Nikkei (.N225), opens new tab ended 2.96% lower at 33,585.58 after declining as much as 5% earlier in the session. The broader Topix (.TOPX), opens new tab closed down 2.85% at 2,466.91. “Risk in equities is too high right now with such huge volatilities every day. The best thing to do, I would say, is to stay away from the market,” said Yusuke Sakai, a senior trader at T&D Asset Management. The Nikkei started the week sliding to an 18-month low on Monday but then surged 6% on Tuesday before slipping again on Wednesday. On Thursday it soared 9%, its biggest one-day gain since August. The Nikkei lost 0.6% for the week. The sudden moves underscore investor restlessness as they try to gauge the risks from a raft of tit-for-tat tariff headlines. “Equities rise as long as companies grow, but I am afraid that the companies may not be able to disclose their outlook, and even if they do, it could be conservative. That may push the Nikkei to a new low,” said Sakai. Japanese companies will start announcing their outlook for this fiscal year from the end of this month. The dollar slumped 1% to its lowest level since September 30 against the yen, as investors ditched U.S. assets amid growth concerns. A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan. Uniqlo-brand owner Fast Retailing (9983.T), opens new tab lost 2.04% and chip-testing equipment maker Advantest (6857.T), opens new tab slipped 4.59%. Of the 225 Nikkei components, 22 stocks rose and 203 fell.
George by — April 13, 2025 By George in Market Watch
GM drowning in unsold BrightDrop vans as mounting EV inventory sparks mass layoffs

General Motors’ all-electric CAMI Assembly plant in Ontario is halting production of BrightDrop delivery vans, Unifor said Friday. Unifor is Canada’s largest private sector union, representing 320,000 workers. The company will initiate temporary layoffs starting April 14 and production will stall for three weeks, Mike Van Boekel, plant chair for Unifor Local 88, which represents hourly workers at CAMI, told the Detroit Free Press. Workers will return for two weeks in May for limited production, and then the factory will close for another 20 weeks. During this downtime, GM plans to complete retooling work to prepare the facility for production of the 2026 model year of commercial electric vehicles. CAMI Assembly had run two shifts while producing Chevrolet BrightDrop vehicles. When production resumes in October, Unifor said the plant will operate on a single shift for the foreseeable future — a reduction expected to impact 450 workers. “This is devastating for our members,” Van Boekel told the Detroit Free Press. “We are losing these shifts indefinitely.” About 1,200 Local 88 members work there assembling Chevrolet BrightDrop EVs and constructing battery modules and packs. “This is a crushing blow to hundreds of working families in Ingersoll and the surrounding region who depend on this plant,” Unifor National President Lana Payne said in the statement. “General Motors must do everything in its power to mitigate job loss during this downturn, and all levels of government must step up to support Canadian autoworkers and Canadian-made products.” GM Canada confirmed CAMI is making operational and employment adjustments to balance inventory and align production schedules with current demand. “GM remains committed to the future of BrightDrop, and the CAMI plant and will support employees through the transition,” the company said in a statement emailed to the Free Press. “This adjustment is directly related to responding to market demand and rebalancing inventory. Production of BrightDrop and EV battery assembly will remain at CAMI.”

Many hurdles

GM’s struggles with BrightDrop inventory come less than a year after the company folded the commercial vans into its Chevrolet brand in a bid to boost its performance. GM has tried and failed to gain ground against competitors, including Ford and Rivian, in the electric van space, an effort further hindered by the vehicle’s high price tag. Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said the opaque trade environment spurred by President Donald Trump’s vacillating tariff announcements hardly aided the company’s U.S. sales projections. “If there’s a tariff with Canada, how do you build any vehicle of volume there to be sold in the U.S.?” Fiorani asked. Tariffs with Canada currently stand at 25%, though the auto industry is still seeking clarity about whether vehicles and parts compliant with the U.S.-Mexico-Canada Agreement are included. GM produces BrightDrop 400 and BrightDrop 600 vans at CAMI Assembly, Canada’s — and GM’s — first full-scale all-electric vehicle manufacturing plant, which required massive investment to retool for EV production, including funding support from both governments. As the Free Press first reported, a glut of those slow-selling delivery vans has built up on both sides of the U.S.-Canada border. CAMI produced 3,500 electric Chevrolet BrightDrop delivery vans last year — compared with nearly 200,000 Chevrolet Equinox crossovers the plant produced five years earlier — according to the Automotive News Data & Research Center. Of those, GM sold only 1,529, compared with Ford’s 12,610 E-Transit vehicles and Rivian’s 13,243 EDV. GM reported sales of just 274 Chevrolet BrightDrop vehicles so far this year, up 7% from 256 sold in the first quarter of 2024. Last month, a Free Press photographer captured images of hundreds of vehicles lining a Flint storage lot. Reuters published similar photos from CAMI in Ingersoll, Ontario. CAMI reopened in late 2022 following a retooling period outfitting the facility for electric vehicle production. Production stalled again this year with a scheduled two-week shutdown to “align production schedules and balance inventory,” a GM spokesperson said in a statement. Part of the reason BrightDrop sales are lagging in the U.S. is the comparatively high price tag to nearest competitors. Before incentives, the vehicles cost about $74,000. Ford’s E-Transit van with extended battery range, for example, is $51,600 — more than $20,000 cheaper — even before applying incentives.

Falling far short of projections

GM launched BrightDrop in 2021 as a wholly owned subsidiary with expectations its revenue would top $10 billion by 2030 with low-20% profit margins. BrightDrop CEO Travis Katz said in 2022 that the company expected to be making 50,000 trucks a year starting in 2025 and bring in “a lot of revenue.” Katz left the company in late 2023 without specifying why as GM began reorganizing BrightDrop to function less independently and reduce costs. “Make no mistake — the world is moving rapidly towards electrification. If Canada and the U.S. hit pause now, we may never catch up,” Payne said in the statement. “We risk surrendering our future unless we act decisively to support our own industry.” The economics, and the lack of charging infrastructure, likely made it difficult for the company to find a foothold in the U.S. market, Fiorani said. “It should be easy to convince a business that you can drive this thing. On paper, it’s a good idea. But business owners that are not used to taking risks won’t buy something they don’t understand fully,” he said. “In early 2020, when everybody was delivering things directly to their homes, this was a perfect vehicle for that market.”
George by — April 13, 2025 By George in Business News
Trump’s ongoing 25% auto tariffs expected to cut sales by millions, cost $100 billion

DETROIT — As President Donald Trump’s 25% tariffs on imported vehicles remain in effect despite a pullback this week on other country-based levies, analysts are expecting massive global implications for the automotive industry due to the policies. They’re expecting to see a drop in vehicle sales in the millions, higher new and used vehicle prices, and increased costs of more than $100 billion for the industry, according to research reports from Wall Street and automotive analysts. “What we’re seeing now is a structural shift, driven by policy, that’s likely to be long-lasting,” Felix Stellmaszek, Boston Consulting Group’s global lead of automotive and mobility, told CNBC. “This may well be the most consequential year for the auto industry in history – not just because of immediate cost pressures, but because it’s forcing fundamental change in how and where the industry builds.” BCG expects tariffs to add $110 billion to $160 billion on an annual run rate basis in costs to the industry, which could impact 20% of U.S. new-vehicle market revenues, increasing production costs for both U.S. and non-U.S. manufacturers. The Center for Automotive Research, a Michigan-based nonprofit think tank, believes costs for automakers in the U.S. alone will increase by $107.7 billion. That includes $41.9 billion for Detroit automakers General Motors, Ford Motor and Chrysler parent Stellantis. Both analyses take into account the 25% tariffs on imported vehicles implemented by Trump on April 3 as well as forthcoming levies of the same amount on automotive parts that are set to begin by May 3.
George by — April 13, 2025 By George in Business News
BlackRock’s Larry Fink says U.S. is very close to a recession and may be in one now

BlackRock CEO Larry Fink told CNBC on Friday that he thinks the U.S. economy has weakened to the point of growth possibly turning negative.

“I think we’re very close, if not in, a recession now,” Fink said on “Squawk on the Street.”

Fears of an economic slowdown have risen sharply since President Donald Trump unveiled widespread tariffs last week, sparking a sell-off in the stock market. Trump on Wednesday announced that he was pausing some of those import levies for 90 days, but that move has not been enough to restore confidence in the economy, Fink said.

“I think you’re going to see, across the board, just a slowdown until there’s more certainty. And we now have a 90-day pause on the reciprocal tariffs — that means longer, more elevated uncertainty,” Fink said Friday.

Surveys of consumers and business leaders have shown weakening sentiment in recent months. However, other pieces of economic data like job growth and retail sales have held up better. Fink said consumers may have been stocking up on goods ahead of the threatened tariffs, which could be masking some underlying economic weakness.

Despite his concerns, Fink said he did not think the U.S. was in a financial crisis and he expects “megatrends” in the economy like artificial intelligence would persist.

At an event for the Economic Club of New York on Monday, Fink said that other CEOs also think the U.S. is “probably in a recession.”

Fink’s latest remarks come after BlackRock announced its first-quarter financial results. In a press release Friday morning, the CEO commented that “uncertainty and anxiety about the future of markets and the economy are dominating client conversations.”

The asset management giant’s financial results were mixed. BlackRock reported $11.30 in adjusted earnings per share for the first quarter, above the $10.14 expected by Wall Street analysts, according to LSEG. However, $5.28 billion in revenue was short of the $5.34 billion consensus estimate.

On the assets front, BlackRock reported $84 billion in net inflows during the quarter and ended March with nearly $11.58 trillion under management.

Shares of the firm rose 2.3% on Friday.

George by — April 12, 2025 By George in World News
Trump administration changes course on in-person requirements for Social Security

The Trump administration is further backing off the in-person requirements it announced for Americans seeking services at the Social Security Administration that were set to go into effect Monday.

Liz Huston, a spokesperson for the White House, said in a statement to NPR on Thursday that telephone services will continue for people seeking services through the agency.

“President Trump has repeatedly promised to protect Social Security and uproot waste, fraud and abuse across the federal government,” she said. “The Social Security anti-fraud team has worked around the clock in person to improve technological capabilities and they are now able to identify fraud on claims filed over the telephone.”

Social Security officials first announced last month that people filing claims or seeking benefits would have to travel in-person to a local field office, if they were unable to use the agency’s online verification system. The policy would have effectively eliminated widely used telephone services for many beneficiaries.

These changes were met with concerns from advocates for seniors and people with disabilities, as well as lawmakers. Dozens of Democratic members of Congress sent a letter to agency leaders asking them to reconsider the change because it would “create additional barriers” for people seeking services — “particularly for those who live far from an office.”

The Center on Budget and Policy Priorities, a left-leaning think tank based in Washington advocating for “economic justice,” recently published an analysis that found the travel requirement would have amounted to a “45-mile trip for some 6 million seniors.”

According to a White House official who spoke on the condition of anonymity to speak generally about the Trump administration’s position, the Social Security Administration reversed course on these requirements because the anti-fraud team “implemented new technological capabilities so quickly” that the agency can now “perform anti-fraud checks on all claims filed over the phone.”

These technological improvements, the official said in a statement, will be able to flag abnormal behavior in a person’s account and then those individuals who were flagged would be required to travel in-person for verification.

In a statement, Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, called this reversal “a victory for Social Security beneficiaries across the country.”

“The Trump administration did not change the policy out of the goodness of their hearts,” he said. “They responded to public pressure. This is a victory for advocacy on the grassroots and national level, by and on behalf of the millions of seniors who depend on phone service from the Social Security Administration.”

“The Trump administration has been busy erecting barriers for people simply trying to access their earned benefits. We are glad this one barrier has fallen.”

The Social Security Administration is currently undergoing massive changes – including widespread layoffs, regional office closures and general restructuring of duties across the agency. These changes have worried advocates about access to services that many of the country’s seniors rely on.

George by — April 12, 2025 By George in World News
Morgan Stanley earnings boosted by record equity trading, but stock dips on fear it may not be sustained

Morgan Stanley’s stock fell 1% Friday in morning trading, after the bank’s first-quarter earnings topped consensus estimates thanks to a record performance in stock trading that some analysts fear may not be sustained.

The stock, like those of its big bank peers, has been volatile in recent sessions as President Donald Trump’s tariffs have created unprecedented U.S. market turmoil. The stock has fallen 16% in 2025, while the S&P 500
SPX +1.81% has fallen 10%.

Brian Mulberry, client portfolio manager at Zacks Investment Management with $20.4 billion of assets under management, said the 45% increase in equities trading to a record $4.1 billion was much higher than expected.

Combined with net new assets in wealth management of $94 billion, which helped drive revenue comfortably above consensus.

However, “The recent market volatility could impact both these segments in the short term as markets have lost 15-20% of value amid uncertainty in trade, tariffs and taxes,” Mulberry said in emailed comments.

“There is still time to recover in the current quarter, but we will be paying close attention to see if the asset flows and trading volumes continue to add growth in this difficult time.”

Morgan Stanley

MS +1.44% posted net income of $4.3 billion, or $2.60 a share, for the quarter, up from $3.4 billion, or $2.02 a share, in the year-earlier period. Revenue rose to $17.7 billion from $15.1 billion a year ago.

The FactSet consensus was for EPS of $2.21 and revenue of $16.5 billion.

“Institutional Securities strong performance was led by our Markets business,” Chief Executive Ted Pick said in prepared remarks.

Revenue at the institutional securities business rose to $8.9 billion from $7 billion a year ago, ahead of the $7.8 billion FactSet consensus. Equity trading rose from $2.8 billion a year ago, boosted by strength in Asia.

Fixed-income net revenue rose to $2.6 billion from $2.5 billion a year ago, boosted by foreign-exchange gains in a more volatile trading environment.

Investment-banking revenue rose to $1.6 billion from $1.4 billion a year ago, matching the FactSet consensus. Revenue was boosted by strong fixed-income underwriting that offset a decline in equity underwriting owing to a dearth of deals.

In wealth management, revenue rose to $7.3 billion from $6.9 billion a year ago, reflecting strength in asset management and higher levels of client activity. The FactSet consensus was for revenue of $7.4 billion.

The business added $94 billion in net new assets, while fee-based asset flows rose to $29.8 billion from $26.2 billion a year ago.

In investment management, revenue rose to $1.6 billion from $1.4 billion, ahead of the $1.5 billion FactSet consensus, as average assets under management rose to $1.7 trillion from $1.5 trillion a year ago.

The bank set aside $135 million in loan-loss reserves after a drawdown of $6 million a year ago.

On a call with analysts, Pick acknowledged the “less predictable” outlook in the current “adjustment period.” Other bank chiefs have also addressed Trump’s tariffs and trade wars in their earnings Friday, which they agree have introduced deep uncertainty to markets and the economy.

The stock, bond and currency markets are exhibiting the kind of overnight and intraday volatility that reflect rapidly changing probability assessments of different policy outcomes,” Pick said, according to a FactSet transcript.

The simple truth is: “we do not yet know where trade policy will settle, nor do we know what the actual transmission effects will be on the real economy,” he said.

As a result, some of the bank’s clients are “deferring strategic activity” while others are pushing ahead, he said.

Overall, Pick is not expecting the economy to go into recession, and believes clients have hit the pause button, but not the delete button, he said.

Chief Financial Officer Sharon Yeshaya said the company’s pipelines have not meaningfully changed since the start of the year and remain robust.

But the timing of deal execution “remains sensitive to market conditions,” while demand for strategic advice and capital raising is still there.

George by — April 12, 2025 By George in Equities
Indonesia’s $48 billion social security fund eyes doubling equities exposure

JAKARTA, April 11 (Reuters) – Indonesia’s $48 billion social security fund BPJS Ketenagakerjaan, the country’s largest institutional investor, aims to raise the share of local equities in its portfolio to up to 20% within three years, a top official told Reuters on Friday.

Asked about this week’s local stock market (.JKSE), opens new tab tumble following the global turmoil caused by U.S. tariffs, Edwin Ridwan, the agency’s director of investment development, said it had created room for the fund to invest in undervalued shares.

The state-owned fund has been increasing its investment gradually in stocks with big market capitalisation, he said, in sectors such as banking, telecommunications, commodities and consumer goods.
“These are the conditions where people are selling, if we look at history … whenever the market overshoots, people are selling, it’s the best time to buy,” he said in an interview, referring to the financial crises of 1998 and 2008 and the COVID-19 pandemic.
“The window has started to open up for us to increase our exposure to equities, because we need volume, we need liquidity, and with everybody
selling, that liquidity is being provided.”
Edwin added that the fund was targeting a 13% year-on-year increase in returns in 2025.
BPJS Ketenagakerjaan’s current exposure to equities was at around 10% or equivalent to $4.8 billion, either directly in the stock market or through mutual funds, it said, adding that its target is to expand that to between 15% and 20% within three years. The largest portion is invested in bonds, and the rest is in deposits and other instruments.
Indonesia’s stock market tanked when it reopened on Tuesday after an extended holiday break, triggering a 30-minute trading halt in response to the global turmoil over U.S. President Donald Trump’s tariffs announcement days earlier. The market has since regained some of its losses.
President Prabowo Subianto is looking to increase the state’s role in achieving its 8% growth target, including via the setting up of a new sovereign wealth fund managing more than $900 billion in assets as well as a state firm to run confiscated palm plantations.
Since the global turmoil hit Indonesian markets, the country has also eased buyback rules for publicly listed companies, including state-run firms, and Bank Indonesia intervened “aggressively” to support a plummeting rupiah.
Asked whether there was any order from the government for BPJS to support the falling stock market, Edwin said the agency was “quite independent.”

‘TOO BIG FOR THE MARKET’

The agency has been trying for years to get government approval to invest in overseas financial markets, especially equity markets, Edwin said, citing its need to have more options for its large funds.
“Basically we have a very limited universe…so we can’t get in and out easily and we can’t buy when other people buy,” he said, referring to the risk of crowding out the market.
The agency’s assets under management have been expanding at a rate of 13% to 14% per year, and it receives up to 10 trillion rupiah ($595 million) per month from premiums paid by members, Edwin said, explaining why it needs to find more investment instruments.
Possible pressure on the rupiah has been one consideration against overseas investment, Edwin said, but he added that foreign exchange supply could be improved via return repatriation.
($1 = 16,790.0000 rupiah)
George by — April 12, 2025 By George in Equities
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