Wall Street’s strongest week since June
U.S. stocks closed the week higher as inflation data showed signs of cooling off
The better-than-expected inflation data sent cheers across the markets as consumer prices fell to a 9-month low in October. Growth stocks – tech in particular – made a comeback with the Nasdaq surging 8.1% last week.
In the crypto world, the collapse of FTX drove a decline in Bitcoin and other crypto currencies.
- Meta’s mass layoff
- TSMC’s expansion plans
- Ralph Lauren’s upbeat quarterly results
Meta’s mass layoff
Facebook-owner Meta Platforms (META) laid off more than 11,000 employees as the social media company saw its costs jump exponentially last quarter. The move came in as the management is working towards reducing its expenses amid a challenging business environment.
Meta stock gained about 19% last week.
- Analyst rating: The overall consensus on Meta stock is a “Moderate Buy”, based on 39 analysts, with an average price target of $146.46.
- Future outlook: Meta extended its hiring freeze through 1Q2023 and plans to hire fewer people in 2023 as per CEO Mark Zuckerberg.
TSMC’s expansion plans
The world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co or TSMC (TSM) said it was planning expansion of its Arizona plant in the United States. As per the company, the new building could serve as its second chip factory in the country, but the management has not finalised the decision yet.
TSMC stock gained about 13% last week.
- Analyst rating: The overall consensus on TSMC stock is a “Strong Buy”, based on five analysts, with an average price target of $93.
- Future outlook: TSMC sees Q4 revenue rise 29%, to the range of $19.9 billion to $20.7 billion.
Ralph Lauren’s upbeat quarterly results
Ralph Lauren (RL) reported better-than-expected revenue and earnings for the quarter ending Oct 1, 2022, as demand for luxury clothing remained unaffected despite rising inflation. Quarterly revenue rose 5% to $1.57 billion.
The stock gained over 9% through the last week.
- Analyst rating: The overall consensus on Ralph Lauren stock is a “Moderate Buy”, based on 9 analysts, with an average price target of $109.50.
- Future outlook: UBS analyst called Ralph Lauren a “strong turnaround stock”, noting useful changes to its business model.