Calls of the Day: Nvidia, Boeing, Lockheed Martin, Uber and Charles Schwab
Summary
The Investment Committee assessed AI's expansion into healthcare through Bristol Myers Squibb using Nvidia's system, flagged fading momentum in Boeing and caution on defense stocks like Lockheed Martin, presented contrasting views on Uber with one member eyeing a re-entry and another calling it dead money, and highlighted Charles Schwab's upcoming earnings as a potential catalyst for new all-time highs.
- Bristol Myers Squibb buying Nvidia's AI computing system underscores AI adoption in healthcare, boosting efficiency and drug development timelines.
- Boeing momentum signal has deteriorated to yellow/red, prompting avoidance despite potential earnings event.
- Lockheed Martin and defense stocks face budget headwinds and lack near-term catalysts; caution advised until midterm elections clarity.
- Uber drawdown to 60s looks interesting to one member who trimmed in 90s, watching for cash flow growth and super-app expansion.
- Another member sees Uber as dead money due to rising EV/AV competition, missed earnings, and escalating driver costs from gas prices.
- Charles Schwab's earnings seen as bullish catalyst with retail trading engagement driving net interest margin, targeting breakout above $107.5 toward $110-115.
Ideas
AI healthcare efficiency lifts BMY, NVDA
Bristol Myers Squibb purchasing Nvidia's AI computing system illustrates the growing adoption of AI in healthcare, which improves efficiency and speeds drug development. More healthcare companies are expected to follow, making this a powerful theme for both Bristol Myers and Nvidia.
Boeing momentum fading, avoid for now
Boeing's momentum signal has faded to yellow/red; the position was taken purely on momentum and currently lacks that momentum, so the stock is not a buy and may remain weak unless earnings restart it.
Defense stocks need catalyst, caution LMT
Lockheed Martin and other defense stocks face fundamental budget concerns and lack a near-term catalyst; momentum hasn't built since the position was added, warranting caution until after the midterm elections possibly provide budget clarity.
Uber pullback interesting, watching for re-entry
Uber's recent German acquisition and super-app ambitions, combined with a pullback from the 90s to the 60s, make the stock interesting again; the firm is watching for cash-flow earnings growth and may re-enter after trimming near the highs.
