Category: Stock

Rocket Lab’s stock soars 7% after landing key national security deal

■  Key Highlights

■  FY2025 Q2 Earnings Summary

• Revenue: $8.05 billion (YoY +38.3%)
  → In line with market consensus of $7.91 billion

• EPS: $1.56 (YoY +271.4%)
  → Beats consensus estimate of $1.43 by 9%

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■  Positive Forward Guidance

• Q3 Revenue Guidance: $8.8 billion
  → 3.5% above market consensus

• Q3 EPS Guidance: $1.57
  → 6.1% above expectations

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■  Slight Weakness in Gross Margin

• Current Gross Profit Margin (GPM): 37.9% (QoQ -1.6%)

• Q3 GPM Guidance: 36.5%
  → Below consensus estimate of 37.4%

§ Reason:
Reduced utilization of NAND fabs led to operational losses,
which offset some of the positive impact from increased HBM sales.

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■  Full Entry into the HBM Market

• Quarterly HBM revenue exceeded $1 billion for the first time

• HBM TAM (Total Addressable Market): Raised from $30B to $35B

• HBM3e 12-layer products: Currently undergoing smooth certification

• Capex: Primarily allocated to expanding HBM capacity and long-term fab planning

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■  Summary & Outlook

✔️ Micron exceeded earnings expectations with solid top and bottom line growth
✔️ The company demonstrated real traction in the high-bandwidth memory (HBM) market
✔️ Although gross margin declined in the short term,
✔️ Micron is well-positioned to lead the HBM space in the mid-to-long term

The U.S. stock market rose for the second consecutive session, as investors took advantage of buying opportunities after recent market declines.
The Nasdaq and S&P 500, which had been falling for four straight weeks, saw a rebound, signaling potential recovery.
However, economic data and the impact of Trump’s policies continue to influence market sentiment.

■  U.S. Stock Market Gains – Key Index Performance

●  As of March 17 (ET), major stock indices saw gains:
•  Dow Jones Industrial Average (DJI): +353.44 points (+0.85%) 41,841.63
•  S&P 500 (SPX): +36.18 points (+0.64%) 5,675.12
•  Nasdaq Composite (IXIC): +54.58 points (+0.31%) 17,808.66

●  After four consecutive weeks of declines, the Nasdaq and S&P 500 rebounded as investors sought bargains!

●  However, market uncertainty remains:

• Retail sales rose slightly but fell short of expectations → Consumer sentiment remains weak.
• New York State factory activity saw its biggest drop in nearly two years → Economic slowdown concerns.
• Homebuilder sentiment fell to a seven-month low → Higher costs due to import tariffs.

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■  Trump’s Economic Policies & Market Uncertainty

●  Economic Outlook & Federal Reserve Policy
•  Federal Reserve expected to keep interest rates unchanged on
March 20
•  Q1 GDP Forecast: -2.1% (Federal Reserve Bank of Atlanta)
•  Fed meeting expected to shed light on Trump administration’s economic impact

●  Will Trump’s Policies Lead to a Recession?
•  U.S. Treasury Secretary Scott Bessent: “There are no guarantees the U.S. will avoid a recession.”
•  Massive federal budget cuts & tariff policies → Increasing market uncertainty.

●  Weak Retail Sales & Manufacturing Data
•  February retail sales showed a slight recovery but missed expectations → Tariffs impacting consumer behavior.
•  New York State’s factory activity saw its biggest drop in two years → Weak demand signals.

●  Housing Market Challenges
•  Homebuilder sentiment hit a 7-month low in March
•  Higher construction costs due to tariffs on imported materials

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■  Stocks That Gained vs. Stocks That Declined

●  Gaining Stocks (Tech & AI Leading the Rally)
•  Quantum Computing Stocks Surged:
    D-Wave Quantum (QBTS.N): +10.15%
    Quantum Corp (QMCO.O): +40.09%

•  Nvidia (NVDA.O) AI Conference Boosted AI-related Stocks
•  Intel (INTC.O): +6.82% (New CEO Lip-Bu Tan expected to overhaul AI & semiconductor strategy)

●  Declining Stocks (Consumer & EV Stocks Under Pressure)
• Tesla (TSLA.O): -4.79%
   Mizuho Securities cut its price target from $515 to $430
   Stock down 41% year-to-date

•  Consumer discretionary stocks lagged due to weak consumer confidence

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■  Conclusion: Where is the Market Headed?

• U.S. stock market rebounded after four weeks of decline → Bargain-hunting investors driving gains.
• Uncertainty remains over Trump’s economic policies & potential recession risks.
• AI & quantum computing stocks leading the recovery, while Tesla & consumer sectors struggle.
• Market awaits March 20 Fed meeting for further economic guidance.

§ The upcoming Federal Reserve meeting could be a major turning point for the stock market!

The Nasdaq Composite Index plunged 4% on March 10, marking its biggest drop in 2.5 years as recession fears intensified.
The Dow Jones Industrial Average (-2.08%) and the S&P 500 (-2.7%) also saw significant losses, while Bitcoin (BTC) slipped back to the $79K range.

※ What’s causing this market crash?
Investors panicked after President Donald Trump hinted at a possible economic recession, saying he “does not rule it out.”

■ Nasdaq Plummets 4% – Tech Stocks Hit Hard!

▼ On March 10, the Nasdaq Composite Index closed at 17,468.32, down 4.0% from the previous session.
▼ Largest single-day drop since September 13, 2022
▼ Down 13.4% from its all-time high of 20,173.89 (Dec 16, 2024)

● Biggest tech stock losers
• Tesla (TSLA): -15.43%
• Nvidia (NVDA): -5.07%
• Palantir Technologies (PLTR): -10.05%
• Broadcom (AVGO): -5.39%
• Philadelphia Semiconductor Index (SOX): -4.85%

● The market was already declining last week (March 4-8):
✔️ S&P 500: -3.1% (biggest weekly drop since September 2024)
✔️ Dow Jones: -2.4%
✔️ Nasdaq: -3.5%

■ Did Trump’s Comments Spark the Market Panic?

● Donald Trump (March 9, Fox News Interview):
• “I am doing very important work… but a transition period is necessary.“
• Investors saw this as Trump not ruling out a recession, fueling uncertainty.

●White House National Economic Council (NEC) Chair Kevin Hassett (CNBC Interview):
• “We are considering the possibility of a GDP decline in Q1. It would be a temporary issue.“

※ Market analysts fear Trump’s policies might trigger a “Trump Session” (Trump-driven recession).

■ Bitcoin & Crypto Stocks Plunge as Well

●Bitcoin drops back to $79K
• As of March 11, 7:10 AM (ET), BTC is trading at $79,390

●Crypto-related stocks also took a massive hit:
• MicroStrategy (MSTR): -16.7% ($239.27)
• Coinbase (COIN): -17.6%

※ Why is crypto falling?
 Trump’s administration included Bitcoin in its Strategic Reserve, but only from government-seized assets – disappointing crypto investors.

■ Conclusion: Where is the Market Headed?

• Nasdaq crashes 4% – biggest single-day drop in 2.5 years
• Trump hints at recession → market panic spreads
• Bitcoin & crypto stocks plunge alongside tech stocks
• Future market direction depends on upcoming economic data & Trump’s policies

§ Will the market rebound, or is a deeper correction coming? Investors must stay alert!

Buffett’s Singular Focus on One Stock

Legendary investor Warren Buffett has consistently purchased stocks over the past few years. Many investors closely follow his moves, and most assume that his top investment is Berkshire Hathaway. However, there is one more stock that Buffett has continuously bought over 10 out of the last 13 quarters. That stock is Occidental Petroleum (OXY).

A Multi-Year Buying Frenzy

Buffett has been net-selling stocks for the past nine consecutive quarters. However, he has made an exception for one stock—Occidental Petroleum, a major oil and gas producer.
Occidental Petroleum (OXY) was initially acquired by Buffett in Q3 2019, but he exited his position in Q2 2020. However, starting in Q1 2022, Buffett began repurchasing Occidental aggressively and has continued accumulating shares since.
On February 7, 2025, Berkshire Hathaway disclosed another regulatory filing revealing yet another purchase of Occidental shares. As of now, Berkshire owns 264.9 million shares, valued at approximately $13 billion (~17 trillion KRW), making it the sixth-largest holding in Berkshire’s portfolio.

Why Does Buffett Favor Occidental Petroleum?

Buffett has multiple reasons for his strong confidence in Occidental. In an April 2023 CNBC interview, he praised Occidental Petroleum’s CEO, Vicki Hollub, stating that she “understands oil.”
A major factor influencing Buffett’s investment decision is Occidental’s commitment to carbon capture and storage (CCS) technology. With carbon emissions being a global concern, Occidental’s leadership in this sector has drawn Buffett’s attention.
In early 2024, Buffett reiterated in Berkshire Hathaway’s annual shareholder letter:
“We particularly like Occidental’s vast oil and gas reserves in the U.S. and its leadership in carbon capture technology.”

Energy Independence and Occidental’s Role

Buffett has emphasized that advancements in shale oil extraction technology have enabled the U.S. to achieve a level of energy independence. Occidental Petroleum plays a crucial role in this transformation and is positioned to maintain long-term stability in the industry.

Occidental Petroleum Stock Performance

Here is a recent snapshot of Occidental Petroleum Corp. (OXY) stock performance:

● Current Price: $48.84
● Price Change: +0.20000 (+0.41%)
● Day High: $48.92
● Day Low: $47.79
● Trading Volume: 12,687,888 shares
● Latest Trading Time: March 1, 2025 – 01:19 UTC

Key Takeaways

1️⃣ Buffett has consistently accumulated Occidental Petroleum stock over the past few years.
2️⃣ Occidental holds significant U.S. oil and gas reserves and is a leader in carbon capture technology.
3️⃣ Berkshire Hathaway currently owns 28.2% of Occidental, with the potential to increase ownership up to 50%.
4️⃣ Occidental remains undervalued, presenting strong long-term growth potential.