July’s Stock Picks

The S&P 500 closed at a record high in June on strong earnings reports from AI-focused companies like Broadcom and Oracle. The tech sector is expected to continue its momentum in the second half of the year. Big names like Microsoft, Alphabet, and Amazon are anticipated to report strong earnings growth. Some companies to watch this month include Broadcom, Tesla, McDonald’s, Boeing, and Spotify.

Broadcom saw a significant increase in AI revenue in its fiscal second quarter and announced a 10-for-1 stock split, leading to a 21% increase in its stock price in June. Market analysts have named Broadcom as a top AI option and suggested that it could join the trillion-dollar club. Tesla, on the other hand, experienced a rough start to the year but has seen an uptick in its stock price in recent months despite challenges in production and delivery reported in its first quarter earnings.

McDonald’s has been facing challenges with slowing comparable-store sales and consumer spending, leading the company to introduce a $5 meal deal to attract price-sensitive customers. Boeing, on the other hand, is under scrutiny from the Department of Justice for violating a deferred prosecution agreement. The DOJ decision in July could impact the stock’s performance. Lastly, Spotify is expected to report its second consecutive profitable quarter and investors will closely watch for user growth and updates on new subscription levels.

Overall, the outlook for these companies varies as they navigate challenges and opportunities to drive growth in the coming months.

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