Breakfast | US stock market hits the longest losing streak in six months, Netflix revenue guidance falls short of estimates

Good morning! A great day starts with making money.

Overnight Morning Market

Following the release of financial reports by European lithography giant ASML, Taiwan Semiconductor Manufacturing Company (TSMC) also hit chip stocks, continuing to drag down the market. The S&P 500 index recorded its longest consecutive decline since the Federal Reserve turned dovish in October last year, fueling expectations of interest rate cuts this year. Only the Dow Jones managed to close slightly higher, while the S&P and Nasdaq both fell for five consecutive days.

Tesla fell nearly 3.6%, marking a five-day decline. Microsoft closed down 1.8%, Apple fell for the fourth consecutive day, Amazon fell for five consecutive days, Netflix dropped 0.4%, and fell over 6% after hours. Meta rose 1.5%. NVIDIA rose nearly 0.8%; AMD closed up 0.7%; Intel closed down 1.8%, Micron Technology fell 3.8%, and ASML dropped nearly 2.1%.

Overall, AI concept stocks continued to decline. Super Micro Computer (SMCI), SoundHound.ai (SOUN), and Astera Labs (ALAB) all fell by over 3%.

Popular Chinese concept stocks rose overall. Nio rose over 2%, Li Auto and Xiaomi rose over 1%, XPeng fell over 3%. NetEase rose nearly 3%, Baidu and JD.com rose over 1%, Ctrip rose nearly 1%, Bilibili rose nearly 0.4%, Pinduoduo rose 0.2%, and Alibaba rose less than 0.1%.

Blue Chips and Hot Stocks

Netflix's first-quarter subscriber numbers greatly exceed expectations, but revenue guidance falls short

Netflix expects revenue growth slightly below analysts' targets, with streaming plans bringing in 9.3 million new subscribers, nearly double the number estimated by surveyed analysts. The company expects current quarter revenue to be $9.49 billion, while analysts expected $9.537 billion. Starting from the first quarter of 2025, the company will no longer report new subscriber numbers quarterly, but will announce them only when reaching significant milestones.

The Michigan Department of Treasury increased its holdings of NVIDIA and reduced its holdings of Apple in the first quarter, increasing the weight of technology stocks, surpassing any other industry; Arm and Pure Storage are among the top performers in new technology stocks.

Boeing is targeting the low-altitude economy, planning to bring flying cars to Asia by 2030. The company is developing electric vertical takeoff and landing (eVTOL) aircraft through its subsidiary Wisk Aero. The aircraft will use autonomous technology, which is rare in eVTOL aircraft. The company plans to first obtain certification in the United States before expanding to Asia.

Geely plans to divest its Volvo B shares, with a transaction value of $1.3 billion.

Tesla: Has already laid off 300 temporary workers in Germany.

Tesla bulls warned: Abandoning cheap cars will "change the bullish thesis"

If Musk abandons the goal of launching low-cost cars, his bullish prospects will be in danger. Recent reports suggest that Tesla may abandon its goal of introducing affordable cars and instead shift resources to developing self-driving rental cars, which has frustrated fund manager and Tesla bull David Baron.

Deutsche Bank analyst Emmanuel Rosner, who has been bullish on Tesla in the long term, downgraded Tesla's rating from buy to hold, slashing the target price by 35% to $123. He warned that the outlook for the low-cost car Model 2, originally expected to be launched by Tesla next year, now appears uncertain, which could change the investment theme for the stock Huawei Pura 70 Ultra and Pura 70 Pro are now on sale. Huawei's Xu Zhijun: We hope that when Mate 70 is sold this year, it can be launched with the "pure" HarmonyOS.

Lei Jun: Xiaomi's car delivery center will cover 40 cities by the end of this year.

Xiaomi Auto: The rumor that the SU7 intelligent driving low-end solution "adopts a three-party bidding" is completely false.

TSMC's net profit in the first quarter was 225.5 billion New Taiwan Dollars, market expectations were 214.9 billion New Taiwan Dollars, and Q2 sales are expected to be between 19.6 billion and 20.4 billion US dollars. Mass production of N2 is expected in 2025; N2 will enable us to seize the opportunity of artificial intelligence in the future. Expectations for chip market expansion have been lowered.

Chips and Artificial Intelligence

Meta introduces the latest artificial intelligence model Llama 3 to support chatbots.

NVIDIA announces optimization of all its platforms to accelerate META LLAMA 3.

Google is restructuring its artificial intelligence team to speed up progress, planning to integrate teams focusing on cross-departmental research and building models at Google DeepMind, and will transfer the responsible artificial intelligence research team to Google DeepMind.

Arm CEO: By 2030, global data center electricity consumption will exceed that of India.

Cryptocurrency

JPMorgan: Valuation of Bitcoin is $45,000, and the price is more likely to fall after the "halving" event.

Market news: A cryptocurrency trader was convicted of stealing $110 million from Mango Markets.

Antoni Trenchev, co-founder of crypto lending institution Nexo, said: "If we look at the previous halving situation, the price of Bitcoin should double in no more than 8 months."

Macro: Taking You to See the World

Federal Reserve's Williams: Not in a hurry to cut interest rates. Rate hikes are not the base case, but possible if supported by data.

Federal Reserve's Bostic: Can remain patient, unlikely to cut rates before the end of the year, reiterates expectation of one rate cut this year, open to rate hikes.

Federal Reserve's Kashkari: Rate cuts may not be needed until 2025. More focused on their own mission amid rising political pressure.

JPMorgan CEO Daniel Pinto stated that given the persistently high inflation levels, the Fed may not cut rates at all this year and may have to wait longer before doing so.

Due to weak demand for electric vehicles, car sales in Europe fell by 2.8% in March to 1.38 million units.

Macau's property market is completely cooling down, with the Macau Legislative Assembly voting to pass the bill to abolish the three real estate transaction taxes