Alphabet’s shares experienced a significant surge on Tuesday, closing over 5% higher after Google unveiled its latest innovation: a quantum computing chip named Willow. Hartmut Neven, the founder and lead of Google Quantum AI, announced on Monday that Willow boasts “state-of-the-art performance” across various metrics. Key breakthroughs include the chip’s ability to exponentially reduce errors as it scales using more qubits, a fundamental unit in quantum computing. This addresses a significant challenge in quantum error correction that researchers have been tackling for decades. Furthermore, Willow completed a benchmark computation in under five minutes, a task that would take current supercomputers an estimated 10 septillion years. Neven emphasized Willow as a “major step” in Google’s quantum computing journey.
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Tesla’s Price Target Raised by Morgan Stanley
Morgan Stanley boosted its price target for Tesla to $400 from $310, retaining an “overweight” rating and reaffirming its top-pick designation for the electric vehicle (EV) manufacturer. Analyst Adam Jonas anticipates that any potential backlash against EVs under the new administration will be temporary, given the US’s commitment to maintaining leadership in autonomous driving technology. Recent data reveals Tesla sold 21,900 EVs in China during the first week of December, marking its highest weekly sales in Q4 2024. Furthermore, Tesla’s Model Y achieved remarkable success in China, selling 556,000 units in the past year, making it the company’s top-selling passenger vehicle in the region. Tesla’s stock closed Tuesday’s session with a nearly 3% gain.
Walgreens Boots Alliance Potential Acquisition
Walgreens’ shares surged nearly 18% on Tuesday following reports of potential acquisition talks with private-equity firm Sycamore Partners. The Wall Street Journal suggests a deal could take Walgreens private after a period of share decline, reducing its market value from over $100 billion to under $8 billion. Sky News also reported that the potential acquisition could lead to a separate auction of the UK-based Boots chain, a part of the Walgreens Boots Alliance. Walgreens has faced challenges in the US market due to the rise of online prescription delivery services and ongoing retail pressures, leading to the announced closure of 500 stores by the end of next year, with a total of 1,200 closures planned within the next three years.
British American Tobacco on Track for 2024 Guidance
British American Tobacco (BAT), the company behind Lucky Strike cigarettes, affirmed its progress towards achieving its 2024 guidance in a recent trading update. The company reported accelerated performance in the second half of the year, attributed to innovations in its new category business, which includes vaping products. BAT anticipates low-single figure growth in both organic revenue and adjusted profit from operations. Analysts note that while traditional tobacco sales are gradually declining, next-generation products like vapes are compensating for the losses. BAT’s shares saw a minor increase following the announcement.
TUI Anticipates Slower Growth in 2025
TUI’s shares dipped 3% after the travel operator projected slower growth for the upcoming year. Despite reporting a 12% increase in full-year revenue to €23.2 billion and a 33% rise in earnings before interest and tax to €1.3 billion, TUI forecasts a more moderate 5% to 10% revenue growth and a 7% to 10% increase in underlying earnings for the 2025 fiscal year. Experts suggest that while travel demand remains strong, affordability concerns may impact growth, requiring TUI to focus on value-for-money offerings and continued investment to stay competitive.
Other Notable Market Movers
Several other companies made headlines on Wednesday, December 11th, including GameStop, Zalando, Inditex, Cohort, S&U, and Lennar. For deeper insights into market trends, consider exploring recent reports on global dividend payouts, the performance of tech giants like Apple, Amazon, and Tesla, and the shift in investor focus towards US funds and technology stocks amid lower interest rates.
