Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
Citigroup analyst Tyler Radke maintained a 'buy' rating and raised the target price from $495 to $520. The reason behind this adjustment is Microsoft's holdings of a large number of shares in OpenAI, an artificial intelligence startup company, as well as positive news from the company in recent times.$Microsoft (MSFT.US)$However, analysts generally expect Microsoft's earnings per share to reach $2.93 and revenue to be $64.367 billion in the next quarter. This indicates that despite some potential financial risks, the market remains optimistic about Microsoft's overall performance.
According to the latest report, OpenAI's annual revenue has more than doubled, reaching $3.4 billion. In addition, OpenAI has signed an agreement with Microsoft to expand its cloud computing service capacity. Radke believes that both of these developments are positive from a growth perspective and highlight the strong power of Microsoft Azure cloud computing service.$Oracle (ORCL.US)$has signed an agreement with the purpose of expanding its cloud computing service capacity. Radke thinks that these two progresses are positive from the perspective of growth and highlight the strong power of Microsoft Azure cloud computing service.
Although the news of OpenAI is a bullish signal for Microsoft, Radke also warns that the significant losses in non-operating expenses of this startup led by Sam Altman may have a $0.04 to $0.05 impact on earnings per share.
Despite this, analysts generally expect Microsoft's earnings per share to reach $2.93 and revenue to be $64.367 billion in the next quarter. This indicates that despite some potential financial risks, the market remains optimistic about Microsoft's overall performance.
Editor/tolk