💰 New Alpha | We are the champions: NKE/AS/VFC
💰U.S. stocks opened higher collectively, with NVIDIA rebounding and Chinese concept stocks continuing their upward trend.
💹 $Nike(NKE)$ / $Amer Sports, Inc.(AS)$ / $VF Corp(VFC)$ : Sports apparel is less influenced by trends. Stay ahead of the curve.
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| Market recap
The market experienced a notable shift during mid-session, turning downward before regaining some ground in the final trading hours.
Cheers for our readers
As we have mentioned, since the beginning of the year, $SPDR EURO STOXX 50 ETF(FEZ)$ has risen by over 13%, easily outperforming SPY and QQQ.
U.S. major indices exhibited mixed performances, initially opening high before retreating sharply. Both $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ managed to secure slight gains, ending a previous downtrend. Nvidia, meeting expectations, surged over 3.6%, lifting the semiconductor and technology sectors from their recent declines.
Leading the charge, $NASDAQ Golden Dragon China Index(HXC)$ rose nearly 3.7%, while $XPeng Inc.(XPEV)$ jumped close to 15% and $Li Auto(LI)$ increased by over 10%.
Megacaps
Earnings reports have activated the market, with $NVIDIA(NVDA)$ rebounding by 3.67% in response to robust demand for its high-performance AI chips, Blackwell. CEO Jensen Huang highlighted an astonishing surge in demand, prompting a significant production increase. The company reported fourth-quarter revenue of $39.3 billion, marking a 78% year-over-year growth and surpassing all financial metrics expectations.
However, such impressive figures may not satisfy all investors, as the evolving landscape of AI computational demand poses unanswered questions, particularly with the advancement of open-source initiatives like DeepSeek.
MAGA
In a relatively tranquil market, $Meta Platforms, Inc.(META)$ took the lead with a nearly 2.5% increase, re-entering an upward trajectory. Recently, both $Tesla Motors(TSLA)$ and Bitcoin have seen declines, potentially signaling a cooling off period for the "Trump trade."
The uncertain future of the close ties between Trump and Musk has allowed Meta to capitalize on the situation. The company is reportedly planning a massive $200 billion data center, which could require between 5,000 to 7,000 megawatts of power, positioning it to become one of the largest of its kind.
Movers
After-hours trading saw significant gains, with $Snowflake(SNOW)$ expected to ignite further momentum tonight. Continuing the positive sentiment from Nvidia's performance, the market has shifted back towards earnings-driven speculation, with several high-performing stocks rising over 10%. Snowflake's fourth-quarter revenue exceeded expectations, and its strong sales outlook contributed to an after-hours surge exceeding 10%.
The AI healthcare sector is undergoing a revival, with leading players like $Tempus AI(TEM)$ and $Hims & Hers Health Inc.(HIMS)$ both rising by 5%.
$HSTECH(HSTECH)$ experienced a brief pullback, while Singapore’s $SIA(C6L.SI)$ continued its upward trend for five consecutive trading days.
| New opportunities, old sport!
The market structure and development trends in the sports apparel industry demonstrate resilience and a strong capacity to withstand risks.
Over the past week, U.S. tech stocks have generally declined due to concerns regarding rising interest rates and uncertainties surrounding economic growth. In stark contrast, the consumer sector has experienced an uptick, indicating a robust investor confidence in consumer spending.
Within the consumer sector, sports apparel has outperformed, driven primarily by a growing emphasis on healthy lifestyles and the continuing popularity of fitness culture. Additionally, various sports brands have successfully captured the attention of younger consumers by launching limited edition products and enhancing online sales channels, enabling them to stand out amid market competition. Overall, the sports apparel industry is exhibiting strong growth momentum, propelled by consumer recovery and brand innovation.
Unlike the fashion apparel sector, sports apparel is less influenced by trends, resulting in more stable seasonal fluctuations. The functional and practical nature of sports apparel ensures consistent demand in consumers' daily lives, fostering higher brand loyalty. Leading brands command significant market shares, creating a concentrated competitive landscape. For instance, Nike holds nearly 30% of the global sports apparel market, allowing it to maintain relatively stable performance during economic fluctuations. Meanwhile, these leading brands have effectively mitigated market risks through continuous innovation and precise market positioning, ensuring sustained growth even in a highly competitive environment.
| We are the champion
$Nike(NKE)$ , $Amer Sports, Inc.(AS)$ , and $VF Corp(VFC)$ , owners the brands Nike, Arc’teryx, and The North Face, respectively, are leading figures in their branch markets.
NKE
$Nike(NKE)$ has recently garnered attention with a 5.7% rise over the past five days, establishing a foothold amid a broader market decline.
With the appointment of a new CEO, the company is refocusing on sports. Last year, Nike rehired veteran Elliott Hill, prioritizing the restoration of wholesale partnerships and promoting innovation. Previously, the company faced criticism for an excessive reliance on direct-to-consumer sales, which strained relationships with distributors. The return of experienced leadership aims to strengthen traditional channels and re-establish the brand’s athletic spirit.
AS
$Amer Sports, Inc.(AS)$ , a globally recognized sports and outdoor brand group, encompasses brands such as Arc’teryx, Salomon, Wilson, Atomic, and Peak Performance.
The company made waves with its IPO in February last year, marking the largest consumer goods IPO recently, and has since seen its stock price increase by over 200%. Amer Sports exhibited strong growth dynamics in the fourth quarter of 2024, with sales, adjusted profit margins, and earnings per share all exceeding market expectations, reporting a 23% revenue increase for the quarter.
Arc’teryx has gained immense popularity in the Chinese market, regarded as a status symbol for the middle class. On second-hand platforms, Arc’teryx tags are seen as “hard currency,” with rare collections even commanding prices of 300 yuan per tag.
VFC
$VF Corp(VFC)$ is the parent company of outdoor brands such as The North Face, Vans, and Timberland, and previously owned the Supreme brand.
The company has reported revenue growth, with sales expected to increase by 1.9% year-over-year by the end of 2024, achieving a net profit of $168 million, a significant turnaround from a net loss of $42.5 million during the same period last year.
Growth has been observed across global markets, with sales in the Americas increasing by 2%, in the Europe, Middle East, and Africa (EMEA) region by 1%, and in the Asia-Pacific region by 5%.
With a focus on restructuring, VFC is progressively enhancing profitability. The company has initiated a comprehensive global business unit reorganization plan aimed at reducing costs and improving operational efficiency.
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- squishx·02-27Sounds like a solid strategyLikeReport
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