Technology Stocks Rebound as Share Prices Show Signs of Life

Technology stocks see a rebound at the start of 2025. Notably, Monolithic Power Systems avoids worst-case scenarios with NVIDIA, while Uber shares rise following a major investor's positioning. Investors should be cautious but optimistic as these stocks exhibit recovery potential.

Date: 15-02-2025

AI Rating: 7

Monolithic Power Systems demonstrates significant activity regarding revenue growth and earnings per share (EPS). After a 34% drop in Q4 2024 shares, the company reported better-than-expected revenue and adjusted EPS in its February 6 earnings report, which contributed to an 18% increase in stock price. The announcement of a 25% increase in quarterly dividends and a $500 million share buyback program adds to investor confidence. Analysts expect revenue for Q1 2025 to grow by 35% year-over-year, which exceeds the forecasted growth of 27%. Notably, the decline in the company's relationship with NVIDIA from a 100% market share to an expected 50% in 2025 is a cause for caution, yet the overall performance across five of six end markets remains resilient. The potential upside of nearly 15% from recent price target updates suggests optimism among analysts regarding future performance. Uber Technologies reflects notable fluctuations, with shares increasing by about 30% as a result of investor confidence following Bill Ackman's $2.3 billion stake. Although the company's gross bookings failed to meet expectations and shares fell 7% post-earnings report, the announcement of a $1.5 billion accelerated share buyback initially propelled the stock higher. The positive sentiment generated by Ackman's comments positions Uber favorably, even amidst challenges from competitive pressures in the ride-hailing industry. In summary, both companies exhibit characteristics that could positively influence stock prices moving forward, despite facing some headwinds. Investors should monitor earnings reports and market share shifts closely to gauge further potential shifts in stock performance.

Stocks: MPWR NVDA UBER TSLA