The Apple of Goldman’s Eye

1. Goldman Sachs rates Apple a buy

For the first time in nearly six years, Goldman Sachs has recommended buying Apple stock. This comes after the investment bank has remained on the sidelines while the iPhone maker’s stock has more than quadrupled in value.

This change in Goldman’s recommendation has come largely due to Apple’s success in growing and retaining their user base, making it easier for the company to reduce the number of users leaving the ecosystem while lowering client acquisition costs and encouraging repeat purchases.

2. It’s sales season again at Tesla

Tesla has reduced the prices of its premium Model S and Model X electric vehicles for the second time in 2023. The drops in prices have led experts to declare a price war in the EV market with competitors including Ford dropping prices in January 2023.

Tesla is hoping to compete with EV and battery giant BYD as well as premium EV makers NIO and Li Auto, which are also hoping to enter mass-markets by producing more affordable models.

3. All about the gains

China’s National People Congress (NPC) has set a growth target of around five per cent for this year, its lowest growth target in decades, as it warned that risks remain in the real estate sector. Last year, China’s gross domestic product (GDP) grew by just three per cent, due to COVID-19 restrictions, a crisis in its vast property sector, a crackdown on private enterprise as well as weakening demand for Chinese exports.

The annual budget and its associated growth target will be analysed closely here in Australia given the influence China’s infrastructure spending program has, particularly on Australian iron ore.

4. Who runs the world

The Hypatia Women CEO ETF (WCEO), an ETF that only invests in companies with female CEOs, is outperforming the S&P 500 Index, returning 4.8 per cent vs the index’s 2.4%, since its introduction two months ago. Despite the outperformance, the fund’s assets under management (AUM) remain small, with the fund’s managers hoping to increase their investment.

WCEO believes that highlighting the performance of women-led US public companies can help increase the percentage of women CEOs in the United States in all asset classes.

5. Charged up

Sayona Mining, an emerging lithium producer, has successfully produced its first 70 tonnes of lithium concentrate at its North American Lithium (NAL) operation in Quebec, Canada.

The company expects its first shipment to occur in July 2023, with four more shipments targeted for the first half of FY24, aiming to produce between 85,000 and 115,000 tonnes of lithium to meet the demand of North America’s growing electric vehicle and battery industry.