Oracle’s bond and equity financing has arrived earlier than expected, but refinancing, supplier financing and lease liabilities remain issues for creditors. Morgan Stanley remains cautious about its medium-term credit outlook.
Marvell plans to acquire Lumentum in an all-stock transaction. Morgan Stanley sees promise in the co-design of lasers and chips, but believes cost synergies, customer relationships and elevated margins will test the transaction’s returns.
Marvell plans to acquire Lumentum at an enterprise value of approximately 115 billion dollars; Lumentum’s quarterly margins exceeded expectations and it secured a second purchase commitment worth more than 5 billion dollars, but the capacity ramp and transaction approvals will still determine subsequent progress.
IDEXX’s third-quarter revenue and earnings per share both exceeded market expectations, with consumables and reference laboratories the main highlights. The company raised its full-year organic growth and EPS guidance while lowering its operating margin expansion range.
Trading revenue trends in October fell short of expectations. Morgan Stanley sharply cut its earnings forecasts for Coinbase over the next two years and downgraded the stock from Equal-weight to Underweight. New products continue to grow, but retail trading remains a key variable for profits.
Morgan Stanley raised its third-quarter earnings per share forecast for Circle but lowered its 2027–2028 estimates and price target: slower growth in USDC circulation and higher revenue-sharing costs from the Hyperliquid partnership offset the benefit of higher reserve yields.
Morgan Stanley expects Arm’s results for the quarter ending September 2026 to be broadly in line with consensus. Investors are more focused on whether fiscal 2028 CPU revenue guidance can be raised from over $1 billion to around $2 billion.
Apple expects revenue to grow 7%–10% year over year in the December quarter, above Morgan Stanley’s and market expectations. However, services growth continues to slow, and rising memory costs are pressuring gross margin. Morgan Stanley maintains its Overweight rating and cuts its price target to $350.
The October survey shows that US consumers’ net outlook for the economy remains negative, while expectations for household finances and short-term spending continue to improve; Morgan Stanley expects benefit cuts to weigh on consumption growth in 2027.
Combined revenue growth at the three largest cloud providers rose from 48% year over year in the second quarter to 56% in the third. Morgan Stanley sees this as a favorable demand backdrop for infrastructure software earnings, although cloud providers are also intensifying competition in data analytics, databases and AI monitoring.
US credit spreads widened last week, while European spreads narrowed. Morgan Stanley favors US investment-grade bonds while monitoring the shift toward shorter-term AI financing and pressure on high-yield telecommunications and media debt.
Citi expects Xiaomi to report third-quarter 2026 revenue of 104 billion yuan and adjusted net profit of 4.8 billion yuan. Average smartphone prices and gross margin are improving, but the IoT, internet and electric vehicle businesses are under pressure, while AI research and development and automotive selling expenses are also weighing on earnings.
Xiaomi delivered over 336.5 thousand electric vehicles in the first three quarters, achieving approximately 75% of its full-year target of 450 thousand vehicles; deliveries exceeded 50 thousand in October. Citi expects the third quarter may be the low point of the year and maintains its Buy rating.
Taiwan’s GDP grew 14.4% year over year in the third quarter of 2026, driven jointly by investment, exports and consumption. Citi raised its growth forecasts and expects inflation and financing demand to prompt the central bank to raise rates starting in December.
Weaker-than-expected white goods demand slowed IPM growth, while fair-value losses on investments brought Silan’s third-quarter net profit down to 18 million yuan. Citi cut its earnings forecasts and target price while maintaining a Neutral rating.
In the third quarter of 2026, CR Micro’s gross margin exceeded 30% for the first time in three years, but widening losses from the ramp-up of joint-venture wafer fabs in Chongqing and Shenzhen brought net profit below expectations. Citi raised its revenue forecasts while lowering its earnings forecasts.
Revenue and net profit declined slightly in the third quarter of 2026, while revenue from innovative products and related services continued to grow rapidly. Citi cut its earnings forecasts and target price, expecting the commercial contribution of new drugs to become more pronounced in 2028.
TAL’s revenue missed consensus, but cuts in sales and marketing spending lifted its margin. Citi infers from the size of withholding tax that future shareholder returns could increase, while monitoring device destocking and margin sustainability.
In a US phase II trial of ASC30 involving 100 patients with type 2 diabetes, all three dose groups achieved statistically significant placebo-adjusted reductions in blood glucose. Citi believes the data support its best-in-class potential and expects phase III doses to be discussed soon.
Two tools supporting capital markets have been further refined, and GF Securities sees potential for a recovery in the brokerage sector; China Life’s core profit grew, but investment volatility and falling new policy sales weighed on its third-quarter performance.
