TSP Weekly Tech Stock Update—April 27, 2024
This Week: HashiCorp to be acquired, top enterprise AI use cases, AMZN AWS growth in the spotlight, GOOGL hits record high on strong Q1, MSFT/NOW/TEAM earnings reviews, AAPL earnings preview & more.
Hello from Rob…
—In the TSP Small-Cap Portfolio, HashiCorp (HCP, $32.59) has agreed to be taken over by IBM at $35 a share in cash in a deal worth $6.4 billion. HashiCorp shares traded as low as $23 as recently as April 16.
—The AWS growth rate will be a key metric to watch when Amazon (AMZN, $179.62) reports Q1 results on Tuesday (April 30). In Q4, AWS revenue rose 13%, an acceleration from 12% growth in the previous quarter. Amazon in Q4 added more than $1.1 billion of AWS revenue sequentially, as customers continued to shift their focus to bringing new workloads to the cloud, with a diminishing impact from cost optimizations.
For Q1, UBS expects AWS growth of 15% to 16%. The firm raised its Amazon price target to $215 from $198. In lifting its Amazon target to $225, Wedbush said it looks for accelerating AWS growth and incremental positive commentary related to AI demand. Amazon shares are up 18% YTD.
—Braze (BRZE, $41.71—TSP Watch List) shares this week rebounded 7%. On the price chart, there’s short-term resistance around the $44 level. The stock remains below its 200-day moving average of $48.54. At recent prices, Braze’s enterprise value is 6.5 times the midpoint of the FY’25 (Jan.) revenue outlook of $570 million to $575 million (+21.5% at the midpoint). Read more about Braze here.
*Inside This Issue: Cloud CapEx On The Rise
—Paid subscribers will receive the May 2024 PDF of Tech-Stock Prospector (TSP #267) via email on Tuesday, May 7.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.