Dataset Viewer
title
stringlengths 18
203
| date
date32 | content
stringlengths 59
2.74k
|
|---|---|---|
Why Arm Holdings Stock Took a Dive Today
| 2024-04-17 |
It covers the following details: Shares ofArm Holdings(NASDAQ: ARM)were taking it on the chin today after a disappointing earnings report fromASML Holdings(NASDAQ: ASML)led to a broad-based sell-off in artificial intelligence (AI) stocks. Arm was the worst performer of the group as its shares finished the day down 12%, which was even worse than ASML's 7.1% drop.Arm shares get spookedArtificial intelligence stockshave soared in recent months, and Arm has been among the winners. The chip designer, known for highly efficient CPU architecture, has seen revenue growth accelerate from the breakout technology.However, ASML's update this morning threw cold water on the sector and led to a broad sell-off in AI stocks. As one of the most expensive in the sector, Arm got hit hard on the news.Image source: Getty Images.ASML reported a sharp decline in revenue, and its guidance called for a continued decline in sales in the second quarter. While that news was roughly what Wall Street expected, both the first-quarter and revenue number and the guidance missed analyst estimates.ASML expects revenue growth to improve in the second half of the year and accelerate in 2025, but the update shows that demand from chip manufacturers likeTSMCmay not be as strong as expected. That, in turn, could be a warning sign for Arm as the stock soared in February after it promised accelerating revenue growth due to AI-related demand.What's next for ArmHigh expectations are built into Arm stock, which is trading at aforward price-to-earnings (P/E) ratioabove 100 and isn't putting up the kind of eye-popping revenue growth as its collaboratorNvidia. Still, the company figures to have a bright future in AI as its CPU architecture is favored by companies like Nvidia, in part because it requires less power than alternatives.We'll get an update from Arm next month when its fiscal fourth-quarter earnings report comes out. Until then, expect continued volatility from the stock as investors weigh its valuation with the future growth in AI.Should you invest $1,000 in Arm Holdings right now?Before you buy stock in Arm Holdings, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are
|
Stock market today: Indexes rise as traders try to shrug off Powell's hawkish commentary
| 2024-04-17 |
It covers the following details: In this March 21, 2018, file photo, Federal Reserve Chairman Jerome Powell speaks following the Federal Open Market Committee meeting in Washington. The Federal Reserve releases minutes from the March meeting of its policymakers on Wednesday, April 11.Carolyn Kaster/APUS stocks rose Wednesday as traders tried to move past Jerome Powell's hawkish commentary on Tuesday.The Fed boss said progress on inflation appeared to be stuck, indicating rates will remain high.Major averages ticked higher at the open as traders looked to break a three-day losing streak.US stocks rose on Wednesday as traders tried to recover from a three-day losing streak. All three benchmark indexes ticked higher, while long-dated bond yields dipped.Stocks tumbled this week as investors continued to digest hotter-than-expected inflation data and the central bank's latest guidance on rate cuts. Inpublic remarkson Tuesday, Federal Reserve Chair Powell said the inflation fight appears to have stalled, and central bankers needed more confidence inflation was on track to fall to its 2% target.The comments hint that Fed officials will likely keep rates higher for longer unless the job market should "unexpectedly weaken," Powell added.Strong economic data and hawkish Fedspeak have cut into the market's rate-cut hopes. Investors have nearly taken the possibility of a June Fed rate cut off the table, and are now expecting just 1-2 rate cuts by the end of the year, down from 6 cuts expected at the start of 2024, according to theCME FedWatch tool."Chair Powell's comments in Washington, DC, yesterday, materially reduce the chance of a June Fed easing," Ian Shepherdson, the chief economist of Pantheon Macroeconomics, said in a note on Wednesday. "For the record, we think delaying rate cuts is a mistake, and the risk of an unwanted recession is rising. But we don't have our hands on the policy levers.""The Fed picked a bad time to have a communication problem on the path of rates this year," Jamie Cox, a managing partner at Harris Financial Group said in a statement. "Markets need to focus on the fact that rates are sufficiently restrictive, instead of how many cuts are in the pipeline," he added.Bond yields
|
S&P 500 Suffers Its Longest Slide Since January: Markets Wrap
| 2024-04-17 |
It covers the following details: (Bloomberg) -- The stock market saw its longest losing streak since January as a handful of big techs sold off — despite a slide in bond yields.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelEquities fell for a
|
Steering Clients Through Unstable Markets
| 2024-04-17 |
It covers the following details: Steering Clients Through Unstable MarketsPaul Schatz, president of founder of Heritage Capital in Woodbridge, Conn., spoke with etf.com about navigating client portfolios through the current market environment that includes higher than expected inflation and interest rates.Jeff Benjamin: Are you diversifying out of theMagnificent Sevenleaders?Paul Schatz: We spent the first quarter reducing exposure to most things artificial intelligence as well as other hot and sexy stocks. Most of these positions had been held for a long while and saw parabolic rallies which are rarely sustainable. We outright sold Marvell Technology, Broadcom, Micron Technology and Tyler Technologies, while reducing position size in Nvidia and Advanced Micro Devices, for example.JB: Where are you finding opportunities?PS: Until very recently, I was finding almost too many opportunities in the unloved and overlooked areas like pharmaceuticals, chemicals and staples. We bought Bristol-Myers Squibb, Pfizer, CVS Health, Dow and Hershey, all downtrodden with solid dividends that no one seems to care about. We even found some less trafficked financials to buy like Moelis.I am typically early on these kinds of buys, so I won’t be surprised if they take some time to turn around.JB: Is the stock market at a turning point?JS: After positioning for a 20% year in 2023, 2024 looked to be a still strong 11% to 15% for the stock market. My thesis was for a first-quarter peak followed by a less than 10% decline that bottomed by Memorial Day. From there, fresh all-time highs over the summer.I think the March 27 high was that first quarter peak and now stocks are pulling back. I wouldn’t read too much into that. Contrary to popular belief, elections have almost no bearing on markets although the masses obsess over elections all year. If there is a quick, sharp downdraft from some geopolitical event, I would use that as a buying opportunity.JB: Are your clients holding more cash than usual at this point?PS: Our cash position ebbs and flows throughout the year during most years. We are definitely an active boutique.However, over the years with the
|
Stock correlations tick up as Wall Street extends declines
| 2024-04-17 |
It covers the following details: By Saqib Iqbal AhmedNEW YORK (Reuters) - A stock market correlation index hit a near four-month high on Wednesday, signaling that investors expect stock market gyrations to tick up in coming days.With the S&P 500 slipping 0.58% on Wednesday, down nearly 5% from the record high touched in late March, the Cboe 1-Month Implied Correlation Index rose as high as 21.79, its highest since late December.The Cboe index, which measures the market's expectations of correlation between S&P 500 index components, was languishing below 10 as recently as the start of April, lows rarely touched in the index's near two-decade history, according to LSEG data.The rise in correlation expectations points to investors gearing up for some more volatility in the days ahead, according to JJ Kinahan, CEO of IG North America and president of online broker Tastytrade.Kinahan, however, noted that correlation levels still remain low compared to history, and the recent uptick may be due to investors adjusting portfolios in response to the recent rise in volatility."Does it bear watching? Of course ... but it isn't really panic time," Kinahan said.The index remains well below its five-year median reading of around 35."Over the past two years, correlation levels have been historically muted, even lower than what we saw in 2017," said Mandy Xu, head of derivatives market intelligence at Cboe Global Markets."In order for volatility to shock higher, you need correlations to start picking up," Xu said.When correlation is low and individual stocks are charting their own paths, it tends to subdue index level volatility.(Reporting by Saqib Iqbal Ahmed; Editing by Will Dunham)
|
Stock market today: Tech leads stock slide, Nvidia falls almost 4%
| 2024-04-17 |
It covers the following details: US stocks fell on Wednesday, struggling to mount a comeback asinvestors' interest rate worriescoincided with a fresh slate of corporate earnings.After all three major indexes started the day in the green, the S&P 500 (^GSPC) ended down about 0.6%. The Dow Jones Industrial Average (^DJI) lost a more modest 0.1%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) led the losses, falling over 1%.Big Techdrove the market action, with Nvidia (NVDA) falling almost 4% and Meta (META) sliding over 1%. The tech sector (XLK) was the worst-performing sector in the S&P 500, falling nearly 1.5%.Stocks havestruggled to reprisetheir early-year rally, buffeted most recently by worries over heightened tensions in the Middle East and uncertainty over the timing and depth of rate cuts.Another bump came on Tuesday as Federal Reserve Chair Jerome Powell'sdownbeat comments on inflationprompted some to recalibrate their bets on a September cut to December.After robust big bank results signaled areturn to strength on Wall Street, investors are looking to earnings season to give stocks a push upward. United Airlines (UAL) shares rose more than 17% after postinga revenue beatlate Tuesday.But shares of ASML (ASML) fell more than 7% in New York after the Dutch company'squarterly update. ASML, the largest supplier of equipment to chipmakers worldwide, missed order estimates, though its sales to China held up amid US curbs.LIVE COVERAGE IS OVER17 updatesWed, April 17, 2024 at 1:00 PM PDTJosh SchaferThe S&P 500 has its worst stretch since start of 2024The S&P 500 closed lower for a fourth straight day on Wednesday. This marks the benchmark average's first four-day losing streak since a stretch from late December into the start of 2024, per Bespoke Invest.The market action has whipsawed more than usual too,reflecting the "bumpier path" forwardsome Wall Street strategists see
|
Prologis sees market tightening again once interest rate cuts begin
| 2024-04-17 |
It covers the following details: “The worst that we are projecting in this period is almost as good as the best we’ve seen in other cycles,” Hamid Moghadam, co-founder and CEO, told analysts on a Wednesday call. (Photo: Jim Allen/FreightWaves)Management from logistics real estate investment trust Prologis said Wednesday that uncertainty around the timing of interest rate cuts has slowed leasing demand in the near term but that its favorable longer-term outlook remains unchanged.Prologis (NYSE: PLD) reported first-quarter core funds from operations (FFO) of $1.28 per share, in line with the consensus estimate. However, it lowered its full-year guidance by 1% to a new range of $5.37 to $5.47 compared to analysts’ expectations of $5.50 at the time of the print.The slight pullback in outlook represents some hesitancy in the market, which management believes will last for the next two to three quarters. Looking two and three years out, it said it’s potentially more bullish than before as deferred demand continues to build.“If you are sensing any acute change in our outlook, you are not reading our call correctly, said Hamid Moghadam, co-founder and CEO, on a Wednesday call with analysts.He said lease signings have been pushed out somewhat due to geopolitical concerns and higher interest rates. However, he expects that to change once rates start moving lower.“People are just scared of pulling the trigger until the Fed gives the all-clear sign with the first rate cut,” Moghadam said.Table: Prologis’ key performance indicatorsRental revenue increased 12% year over year (y/y) to $1.83 billion in the first quarter. Consolidated revenue was 11% higher at $1.96 billion.Occupancy across its portfolio was 96.8%, which was 30 basis points lower than the fourth quarter and 120 bps lower y/y. The company said occupancy rates have fallen 310 bps across the broader industry since the peak two years ago, but only by 80 bps across Prologis’ portfolio.Prologis now expects average occupancy in 2024 to be between 95.7
|
Why AMD, Applied Materials, and Lam Research Stocks All Tumbled Today
| 2024-04-17 |
It covers the following details: Wednesday is turning into a bad day to ownsemiconductor stocks-- and China is the reason. Late last night, theSouth China Morning Postreported that semiconductor chip output in the Middle Kingdom surged 40% in the first quarter -- more than twice as fast as total global semiconductor sales, according to data from the Semi global semiconductor manufacturers association.Shares of leading chipmakerAdvanced Micro Devices(NASDAQ: AMD)are down 4.5% through 2:10 p.m. ET.Lam Research(NASDAQ: LRCX)andApplied Materials(NASDAQ: AMAT)-- both builders of machines tomakesemiconductor chips -- are down 4.3% and 4.5%, respectively.Why China is importantChinese chipmakers are seeing "soaring" demand for their products from automobile companies (EVs especially) and smartphone manufacturers (such as Xiaomi). While slowing sales of EVs and smartphones dominate headlines in the West, thePostsays Chinese EV sales grew 29% in Q1, and smartphone sales rose 17% -- and China's building its own chips to supply them.Denied access to advanced chips and chipmaking equipment by the West, and spurred by local government edicts, Chinese companies are "doubling down on ... efforts to achieve self-reliance" in semiconductors. This could be bad news both for Western makers of semiconductors and for sellers of semiconductor manufacturing equipment -- and help explain why equipment manufacturerASMLmissed earnings today.What it means for semiconductor stocksThePostcalls all this "an unintended consequence of US export controls on advanced chip technology to China," and says it's causing "a wave of state-backed investment leading to overproduction and, potentially, Chinese dominance of global legacy-chip production."And you can see why that might worry investors.According toS&P Global Market Intelligencedata, AMD got 22% of its revenue from China in 2022 -- but by 2023, that number had dwindled to only 15%. The story is similar for Lam Research, where China sales slid from 31.4% of revenue to 25.6
|
Neurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's Data
| 2024-04-17 |
It covers the following details: Neurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's DataWednesday,Sage Therapeutics Inc(NASDAQ:SAGE) announced topline results from the PRECEDENT Phase 2 study of dalzanemdor (SAGE-718) in people with mild cognitiveimpairment in Parkinson’s Disease.The PRECEDENT Study did not meet its primary endpoint of demonstrating a statistically significant difference from baseline in participants treated with once-daily dalzanemdor versus placebo on the Wechsler Adult Intelligence Scale Fourth Edition-IV (WAIS-IV) Coding Test score at Day 42.WAIS-IV is the most advanced adult measure of cognitive ability.Dalzanemdor (SAGE-718) was generally well-tolerated, and no new safety signals were observed.48 participants experienced treatment-emergent adverse events (TEAEs). The vast majority of TEAES were mild to moderate in severity.“We are disappointed by the results of the Phase 2 PRECEDENT study given the significant burden of mild cognitive impairment on people and families affected by Parkinson’s Disease,” said Barry Greene, Chief Executive Officer at Sage Therapeutics.Analyses did not suggest meaningful differences versus placebo in the other exploratory endpoints, such as SCOPA-Cog, a measure for assessing cognitive function.Based on the data, the company does not plan to develop dalzanemdor (SAGE-718) further in Parkinson’s Disease.The company expects the following milestones for the dalzanemdor (SAGE-718) Phase 2 clinical development program in 2024:Topline data from the SURVEYOR Study in Huntington’s disease cognitive impairment in mid-2024.Topline data from LIGHTWAVE Study in people with mild cognitive impairment and mild dementia in Alzheimer’s disease in late 2024.Topline data from the DIMENSION Study in people with Huntington’s disease cognitive impairment in late 2024.Price Action:SAGE shares are down 23.80
|
Why Interactive Brokers Stock Was Moving Higher Today
| 2024-04-17 |
It covers the following details: Shares ofInteractive Brokers(NASDAQ: IBKR)were climbing today after the discount brokerage platform posted better-than-expected results in its first-quarter earnings report.The company also gave investors a generous dividend hike.As of 1:23 p.m. ET, the stock was up 3.3%.Image source: Getty Images.Interactive Brokers delivers solid growthIn a competitive environment in the brokerage industry, Interactive Brokers reported solid growth across the board with revenue up 14% to $1.2 billion, matching expectations.The company has benefited from higher interest rates as it collected a net interest income of $747 million, up 17% from the quarter a year ago, but non-interest income, which is mostly commissions, continued to grow as well, up 9% to $456 million.Overall, adjusted earnings per share was up 21% to $1.64, which edged out estimates at $1.63.In addition to the solid financial results, Interactive Brokers also posted strong results in other key metrics as customer accounts increased 25% to 2.75 million and customer margin loans, a key source of income, rose 30% to $51.2 billion. Total customer equity was also up 36% to $465.9 billion.What's next for Interactive BrokersRising stock markets tend to be good for the brokerage industries as they attract more money into the market and encourage investors to borrow on margin. Additionally, Interactive Brokers is benefiting from the high interest rate environment as net interest margin expanded from 2.24% to 2.41%.Interactive Brokers didn't give guidance, but it did raise itsquarterly dividendfrom $0.10 to $0.25, a sign of confidence from the company.If the stock market remains healthy and interest rates stay up, Interactive Brokers should continue delivering solid results.Should you invest $1,000 in Interactive Brokers Group right now?Before you buy stock in Interactive Brokers Group, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Interactive Brokers Group wasn’t one of them
|
United Airlines Stock: Q1 Earnings Surge Vs. Technical Red Flags
| 2024-04-17 |
It covers the following details: United Airlines Stock: Q1 Earnings Surge Vs. Technical Red FlagsUnited Airlines HoldingsInc‘s (NASDAQ:UAL) stock has taken flight after reporting impressive first quarter earnings, surpassing market expectations.The stock was up about 12% as of 10:30 a.m. ET on Wednesday, fueled by investor optimism around itsupbeat earnings report.Q1 Earnings Triumph Fueling The Stock HigherUnited Airlines reported first-quarter revenue of $12.5 billion, exceeding the consensus estimate of $12.4 billion.The company reported an adjusted quarterly loss of 15 cents per share, outperforming analyst estimates for a loss of 57 cents per share.Despite headwinds, including a 9.1% increase in capacity, the company improved TRASM by 0.6% and reduced CASM by 0.6%.Also Read:Why United Airlines Stock Is Rising WednesdayUnited Airlines’ Strategic MovesUnited Airlines reiterated its expectations for full-year 2024 adjusted earnings of $9 to $11 per share, demonstrating confidence in future performance.The company also announced the conversion of a portion ofBoeing Co(NYSE:BA) Max 10 orders to Boeing Max 9 orders, along with agreements with lessors to lease 35 new Airbus A321neos.Technical Indicators Raise Red FlagsChart: Benzinga ProUnited Airlines’ stock is currently facing a bearish trend, with its price positioned below its 5-, 20-, and 50-day exponential moving averages (EMAs). Specifically, the 8-day simple moving average (SMA) is below the current share price, indicating a sell-off. Additionally, both the 20-day and 50-day SMAs are situated below the stock’s current price, further reinforcing the bearish sentiment.The Moving Average Convergence Divergence (MACD) indicator stands at -0.32, suggesting a sell-off for the stock and implying a negative trend in momentum.Moreover, the Relative Strength Index (RSI) of 59.84 points to oversold conditions, indicating the potential for
|
1 Wall Street Analyst Upgraded Rivian Stock With a Possible Catalyst Ahead. Is It a Buy?
| 2024-04-17 |
It covers the following details: One Wall Street analyst thinksRivian Automotive(NASDAQ: RIVN)stock has dropped far enough.UBSanalyst Joseph Spak upgraded the stock of the electric vehicle (EV) maker on Tuesday, and implied there could be another upgrade ahead.Spak addressed both a short-term view as well as a specific catalyst that could drive Rivian shares higher over the long term. After Rivian stock has dropped by more than 50% in the last three months, Spak upgraded his rating from sell to neutral on Tuesday. He kept his price target of $9, but noted that there could be a new catalyst emerging, too.One catalyst that could drive this EV maker's stockIn the short term, Spak noted, "We believe the near-term risk/reward is more balanced at current levels" after the recent slide in Rivian shares. He added that risks that are now reflected in the stock price include slowing EV sales growth in general. Butthe short interesthas also reached over 18% of available Rivian shares.Any near-term catalystcould spark a short squeezethat would push shares higher. And there is a potential catalyst ahead. Rivian recently introduced the R2 SUV, its next EV offering. The analyst believes that a positive initial update on R2 reservations would support the longer-term potential for the stock.The R2 won't be available until 2026, but the stock could push higher on any update that has investors anticipating growing revenue in the coming years. With Rivian stock trading near its all-time lows, much of the pessimism surrounding EV demand and slowing sales may already be priced into the stock.Investors shouldn't look at the short-term movement or whether short covering might push shares higher. But if the R2 platform, or even the future R3 crossover SUV that will follow, are a hit with EV buyers, Rivian's stock may have bottomed. Risks remain, of course, but investors who believe EV demand will be strong for the lower priced vehicles should consider buying Rivian stock now.Should you invest $1,000 in Rivian Automotive right now?Before you buy stock in Rivian Automotive, consider this:TheMotley Fool Stock Advisoranalyst team
|
Why ASML Holding Stock Was Falling Today
| 2024-04-17 |
It covers the following details: Shares ofASML Holding(NASDAQ: ASML), the leading manufacturer of semiconductor producing equipment, were moving lower today after the company turned in disappointing results in its first-quarter earnings report.As of 11:54 a.m. ET on Wednesday, the stock was down 7.4% on the news.Image source: Getty Images.ASML comes up shortRevenue was down 22% from the quarter a year ago as the company transitions to new technology to prepare for the AI boom. It fell to 5.29 billion euros and was down even more sequentially. That result, which was equal to $5.62 billion, missed estimates at $5.87 billion.ASML's gross margin improved from 50.6% to 51%, but operating margins fell from 32.7% to 26.3% as spending on research and development rose, along with selling, general, and administrative expenses.Earnings of $3.30 per share were down from $5.26 in the quarter a year ago. That still beat estimates at $3.15.CEO Peter Wennink said, "We see 2024 as a transition year with continued investments in both capacity ramp and technology to be ready for the turn in the cycle."What's next for ASMLThe news seems to signal that chip manufacturers likeIntel,Taiwan Semiconductor, andSamsungaren't rushing to upgrade their equipment in order to prepare for the wave of AI-related demand.ASML's guidance also indicated a continuing decline in year-over-year revenue. For the second quarter, the company expects revenue of $6.1 billion to $6.7 billion, which compares to $7.3 billion.The slowdown isn't alarming because ASML's business tends to be lumpy, but a pullback in the stock seems justified as the stock had soared along with a broaderAI boomsince last October. Based on its guidance, dialing back some enthusiasm for the stock makes sense.Should you invest $1,000 in ASML right now?Before you buy stock in ASML, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now
|
Here's What's Happening in Markets: April 17
| 2024-04-17 |
It covers the following details: Here’s What’s Happening in Markets Today: April 09Markets wavered between green and red Wednesday as investors looked for optimism in corporate earnings after Fed Chair Jerome Powell's comments about rate cuts left them downbeat.SPY, theSPDR S&P 500 ETF Trustand DIA, theSPDR Dow Jones Industrial Average ETF Trustboth flipped to higher from slightly lower midmorning, while QQQ, theInvesco QQQ Trustwhich mirrors the tech-heavy Nasdaq, dipped further than the other broad exchange-traded funds. Investors pulled money from SPY and DIA yesterday and QQQ experienced inflows of cash.Investors looking to snap a losing streak in the market were hit with a dose of pessimism on Tuesday by Fed Chair Powell at an event on the Canadian economy. Powell noted a "lack of further progress so far this year on returning to our 2% inflation goal" in his remarks, torpedoing hopes that the Fed would start cutting interest rates any time soon.According to the CME Fed Watch Tool, traders aren't forecasting rate cuts until September, with a nearly 100% bet on holding rates steady at the Fed's May policy meeting.Fixed income traders have been taken on a ride this year by the "higher for longer" rate environment. Most investors started off the year believing the Fed would cut rates half a dozen times—a belief that quickly dissipated in the first quarter. Bond yields, which were on the rise in previous days, fell on Wednesday, with the benchmark 10-year sliding to roughly 4.64%.TLT, theiShares 20+ Year Treasury Bond ETFwas also in the green on Wednesday as bond prices rose. Bond prices have an inverse relationship to yields.Despite Powell's comments, earnings from megacap companies (companies with market capitalization of roughly $200B or more) injected optimism into the markets Wednesday.United Airlines Holdings Inc.announced both earnings and revenue beats, while the airline maintained its economic forecast for 2024. Shares for the company jumped more than 10% Wednesday after the strong earnings report. JETS, theU.S. Global Jets ETFwhich
|
Nigeria Curbs Banks’ Ability to Grant Loan to Reduce Market Liquidity
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Nigeria’s central bank curbed the ability of banks to grant loans as it seeks to reduce market liquidity and help reduce an inflation rate that rose to a 28-year high in March.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will
|
Why Old Dominion Freight Line Stock Is Falling Today
| 2024-04-17 |
It covers the following details: J.B Hunt Transportsounded the alarm on weakness in the trucking business, andOld Dominion Freight Line(NASDAQ: ODFL)is taking notice. Shares of Old Dominion are down 5% as of 12:30 p.m. ET following J.B. Hunt's worse-than-expected earnings report.Reading between the lines after a rival reportsInvestors intrucking companieshave been on a wild ride in recent years. The pandemic initially wiped out demand, but the e-commerce boom that followed created a significant need for trucks to restock inventories and make deliveries. In 2023, companies saw demand weaken as customers pulled back on expansion due to questions about the economy.If J.B. Hunt is to be believed, things didn't improve in the first three months of 2024. On Wednesday, the companyreported first-quarter results that fell short of top-line and bottom-lineexpectations due to soft demand and higher costs.Each company's cost structure is different, but the market viewed the commentary regarding demand as a harbinger of things to come for other truckers. Shares of Old Dominion and other truckers, includingXPOandKnight-Swift Transportation Holdings, fell in response to J.B. Hunt's results.Is Old Dominion Freight Line stock a buy heading into earnings?We'll know more on April 24 when Old Dominion is scheduled to release its first-quarter results, but today's reaction is understandable. Trucking is a cyclical business, so if one big trucker is seeing weak demand, it's likely an industrywide problem.Shares of Old Dominion have tripled in the last five years alone. The company has been a long-term winner because it's among the best-run trucking companies, allowing it to better navigate downturns and beat out competition when pricing is strong.But after a wave of consolidation and the failure of a few poorer operators, the industry has never been more competitive. Last quarter, for example, other companies delivered results indicating they're managing through the current environment better than Old Dominion.Given the uncertain macro climate, investors would be wise to wait to hear from Old Dominion instead of jumping in on this weakness.Should you invest $1,000 in
|
Citi Says Wall Street Is Wrong to Slash Fed Rate-Cut Bets
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Economists at Citigroup Inc. are going out on a limb by wagering that virtually everyone on Wall Street is wrong about the Federal Reserve.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelAfter thre
|
Stock market today: futures higher after hawkish comments from the Federal Reserve
| 2024-04-17 |
It covers the following details: NYSE traders.Michael M. Santiago/GettyUS futures were trading higher ahead of the opening bell on Wednesday.The S&P 500 and Nasdaq look set to end their losing streak following hawkish comments from the Fed.Brent Crude prices steadied as investors await Israel's response to Iran's weekend drone attack.US futures looked set too open higher after a day of hawkish comments from Fed officials on Tuesday.S&P 500 futureswere up 0.22% shortly before 5 a.m. ET, whileNasdaq 100 futuresrose 0.12%.Dow Jones Industrial Average futuresgained 0.33%, in line Tuesday's rise that broke a six-day losing streak.The S&P 500 and Nasdaq both closed lower on Tuesday, marking the third straight day of declines for both indexes.Brent crude oildipped 0.36% in pre-market trading. Prices shot up last week to more than $90 a barrel in anticipation of Iran's attack on Israel, but have fallen as traders continue to wait on Israel's response.Yields onten-year Treasury notesfell slightly on Wednesday after climbing to a five-month high. Federal Reserve Chair Jerome Powell's hawkish comments on rate cuts had triggered the surge in yields.He hinted at further delays, saying that it "would take longer than expected" for the Fed to feel confident about taming inflation.Fed vice-chair Philip Jefferson added that "if incoming data suggests that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer" in another dampening of rate cut hopes.The Fed is due to release the Beige Book — an indicator of regional economic conditions — later on Wednesday.US Bancorpreports quarterly earnings, as will transportation and real estate giantCSX.Read the original article onBusiness Insider
|
Bullish Trendline Has Never Failed Crispr Therapeutics Stock
| 2024-04-17 |
It covers the following details: Crispr Therapeutics AG (NASDAQ:CRSP)is 2.8% lower at $56.35 this afternoon, continuing a pullback from a Feb. 22, more than two-year high of $91.10. Over the last month, CRSP has erased 20.8% and now sports a 9.6% year-to-date deficit.For those looking to buy in on the dip, however, the recent pullback putsCrispr Therapeutics stockwithin one standard deviation of its 320-day moving average, a trendline with historically bullish implications. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity saw two similar signals in the past three years, after which it was higher one month later each time, averaging an impressive 13.3% gain. A move of similar magnitude would put the shares at roughly $63.85.CRSP Chart April 172024Crispr Therapeutics stock's 14-day relative strength index (RSI) of 18.2 is deep in "oversold" territory, which is typically indicative of a short-term bounce. Plus, short interest represents 17.6% of the stock's available float, and would take eight days to cover at CRSP's average pace of trading.Plus, itsSchaeffer's Volatility Scorecard(SVS) stands at a high 86 out of 100, indicating the stock exceeded option traders' volatility expectations in the past 12 month -- a boon for premium buyers.
|
Why J.B. Hunt Transport Stock Is Sputtering Today
| 2024-04-17 |
It covers the following details: Higher costs and weaker demand led to an earnings miss atJ.B. Hunt Transport Services(NASDAQ: JBHT), and the company doesn't see things improving quickly. Investors are moving to the exit lane, sending J.B. Hunt shares down 9% as of 11:30 ET.A weak market for transportJ.B. Hunt is a trucking and logistics company focused on hauling intermodal containers (the rectangular boxes designed to transition seamlessly from ship to rail to truck). The company earned $1.22 per share on revenue of $2.94 billion in the first quarter, far short of the $1.52 inEPSon sales of $3.12 billion that Wall Street had expected.Revenue fell 9% year over year and operating income was down 30%, a reflection of weakening demand and the impact of higher costs. J.B. Hunt said that operating income as a percentage of revenue decreased due to higher wages and benefits, equipment maintenance expenses, and soaring insurance rates.The company's freight brokerage unit handled 22% fewer loads in the quarter than it did a year ago.Is J.B. Hunt stock a buy after its earnings miss?Trucking is acyclical business. J.B. Hunt has a reputation for being a solid operator, but there isn't much any transportation company can do if there isn't sufficient demand for its services. In February, management warned that 2024 rate negotiations were soft, and the first-quarter results seem to confirm as much.On the expense side, there is little J.B. Hunt can do other than accept lower margins and wait for demand -- and therefore pricing power -- to return.For long-term-focused investors looking to buy into strong operators in the transportation sector, the slump in J.B. Hunt's shares could be an opportunity. But given the uncertainty about when demand will rebound, there is no reason to rush in and buy the dip today.Should you invest $1,000 in J.B. Hunt Transport Services right now?Before you buy stock in J.B. Hunt Transport Services, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and J.B. Hunt Transport
|
Why VinFast Auto Stock Crashed Today
| 2024-04-17 |
It covers the following details: Shares ofVinFast Auto(NASDAQ: VFS), theVietnamese vehicle makerthat went public in a merger with a special purpose acquisition company (SPAC)last summer, tumbled 11.5% through 11 a.m. ET Wednesday after reporting big misses on both sales and earnings for its first fiscal quarter of 2024.Heading into earnings, analysts were already pessimistic, predicting the company would lose $0.22 per share on sales of $450 million. As it turned out, analysts weren't pessimisticenough.VinFast lost $0.26 per share, and its sales were only $302.6 million.VinFast Q1 sales and earnings (make that "losses")The news wasn't all bad (only mostly bad). Total first-quarter sales grew 270% year over year, with revenue from vehicle sales up 324%. Gross profit margins improved from negative 173% to "only" negative 50%. Still, the company continued to lose money at an alarming rate.And it could be losing momentum as well. Deliveries of electric cars, while up 444% year over year, declined 28% sequentially from the fourth quarter of 2023. Deliveries of electric scooters -- formerly VinFast's main business -- declined both year over year (down 32%) and sequentially (down 73%).Is VinFast stock a sell in 2024?VinFast is trying to turn around the sales decline, nearly tripling the number of U.S. dealerships (to 16) with which it has relationships and signing up dealers in Indonesia, Thailand, and Oman.It has also returned to its roots with a new electric bike that it's trying to sell in the U.S. for $2,599, at the same time as it awaits the start of sales of its VF 9 EV later this month. And it promises to sell 100,000 EVs worldwide this year.VinFast might not live to see the end of this year, however. Negative free cash flow in the first quarter alone was a staggering $717.3 million, and
|
Housing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'
| 2024-04-17 |
It covers the following details: Housing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'The path to homeownership isproving more difficultfor first-time buyers as mortgage rates and other associated costs soar.Mitch Roschelle, managing director at Madison Ventures+, described the timing as the worst of the year, with mortgage rates reaching their highest since last November. He conveyed his concerns during an interview on Fox Business's' "Varney & Co."The average rate for a 30-year fixed mortgage is 7.375%. Roschelle anticipates an increase in these rates,compounding the difficultiesfor new entrants into the housing market. He highlighted additional financial burdens, such as rising property taxes and insurance costs, which are inflating the overall expense of homeownership.Don't Miss:Investing in real estate just got a whole lot simpler. ThisJeff Bezos-backed startup will allow you to become a landlordin just 10 minutes, and you only need $100.Want To Grow Your Wealth Passively? Unlock Real Wealth withCityfunds’ Exclusive 8% Yield Fund.Rising costs aren’t just a burden for renters. Landlords are facing a similar squeeze. Property taxes and insurance premiums are on the rise, eating into their profit margins. To keep up with these increasing expenses, many landlords raising rents. This creates a ripple effect, as tenants must adjust their budgets to cover the higher housing costs."Consequently, rents are climbing," Roschelle said.He referred to the situation as a "price spiral," with rent increases surpassing 5% annually. This trend, according to Roschelle, could force many young adults to delay their plans of moving out, especially those belonging to Generation Z."I think if you're a parent of Gen Z kids, get used to them living in your house for a while because the prospects of them moving out look pretty grim," he said.TrendingWant to Create a Passive Income Stream?These High-Yield Real Estate Notes Might Be Your Holy GrailA recent study from the Pew Research Center reveals that less than half (45%) of adults ages 18 to
|
European Stocks Tick Up as LVMH, Adidas Help Offset Tech Selloff
| 2024-04-17 |
It covers the following details: (Bloomberg) -- European stocks ended the day slightly higher as LVMH’s reassuring results and Adidas AG’s surge on profit forecast offset tech’s sharp selloff.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelThe S
|
Netflix Stock is Up 35% Year to Date. Can the Streaming Service Keep Going?
| 2024-04-17 |
It covers the following details: Netflix(NASDAQ: NFLX)is expected to report earnings on April 18th after market close. Leading up to that release, investors have been weighing the potential for a continuation of the membership growth that was witnessed in the fourth quarter of 2023, after the company began cracking down on shared memberships and pushed its ad supported memberships. The move led to some compelling figures in Q4'23. The question now is can that growth continue?In simplest terms, Netflix's initiatives seem to be working.Membership growth, earnings and guidanceStreaming is a competitive business, and one of the main concerns for Netflix has been its ability to continue driving membership growth asrivals likeDisney(NYSE: DIS)andParamount Global(NASDAQ: PARA)continue pushing for market share in streaming. For Netflix investors, that mounting competition hasn't damaged their investment over the last twelve months. Shares are up roughly 82%, and the impact of ad based memberships and crackdowns on password sharing appear to be working.Global paid memberships increased 12.8% year over year in Q4 2023 to 260.28 million, compared to a 4% increase the year prior. Operating margins were a whopping 16.9% compared to margins of 7% in Q4'22, and earnings hit $2.11 per diluted share vs. earnings of $0.12 per diluted share in Q4 2022.While these figures are great, what really encourages me is the continued positive forecasting. First quarter revenue is forecast to reach $9.24 billion; a 13.2% increase year over year, while operating margins are forecast to reach 26.2% compared to 21% in 2023. Forecasted net income of $1.98 billion would mark a 51% increase over Q1'23, and provide forecasted earnings of $4.49 per diluted share. That would represent almost 56% growth year over year.The bull caseLooking at the full year, insights from the fourth quarter shareholder's letter gave us a clue as to what is expected:"We enter 2024 with good momentum. We expect healthy
|
Why Vanda Pharmaceuticals Stock Is Skyrocketing Today
| 2024-04-17 |
It covers the following details: Shares ofVanda Pharmaceuticals(NASDAQ: VNDA)were skyrocketing 37.8% higher as of 10:09 a.m. ET on Wednesday. The huge gain came after the company confirmed it had received -- and rejected -- several unsolicited acquisition proposals from pharmaceutical contract-manufacturing and packaging-services provider Future Pak.Why Vanda isn't interested in Future Pak's offerFuture Pak's most recent proposal to acquire Vanda was made on April 1, 2024. The offer was to buy Vanda for $7.25 to $7.75 per share.The low end of this range reflects a premium of 79% to Vanda's closing price on Tuesday. However, the company's board of directors concluded the offers "significantly undervalue" the company.Why would Vanda's board dislike Future Pak's bid? For one thing, Vanda's cash and marketable securities total around $6.75 per share, and Future Pak's offer is only 7% to 15% higher than this cash balance.The takeover proposals also give short shrift to Vanda's growth opportunities. Although the biotech's revenue declined 30% year over year in the fourth quarter of 2023, it recently won U.S. Food and Drug Administration (FDA) approval for Fanapt in treating bipolar I disorder.Is Vanda Pharmaceuticals stock a buy?Vanda Pharmaceuticals has a firm proposal from a potential suitor well above the current share price and a recent FDA victory in hand. The FDA set aPDUFA dateof Sept. 18, 2024 for an approval decision on tradipitant in treating symptoms of gastroparesis.The drugmaker still faces some risks, especially with an FDA decision on Hetlioz in treating insomnia in limbo. However, with a cash position greater than its market cap, Vanda could be a good pick for aggressive investors.Should you invest $1,000 in Vanda Pharmaceuticals right now?Before you buy stock in Vanda Pharmaceuticals, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocks
|
The Smartest Dividend Stocks to Buy With $400 Right Now
| 2024-04-17 |
It covers the following details: Investors are starting to pay attention to yield signs these days, but not the ones you see on the road. Income-generating stocks may not have the same appeal as they used to, with safer money market funds often yielding better than 5% right now, but it wouldn't surprise anyone if folks begin bidding up dividend-paying companies as soon as short-term rates start falling.Pesky inflation data is likely delaying the Fed's plans to cut rates, but when it does happen, you're going to find dividend stocks -- especially ones that historically push up their payouts -- more inviting. Even if you have a modest amount of money to put to work,Costco Wholesale(NASDAQ: COST),Disney(NYSE: DIS), andCracker Barrel Old Country Stores(NASDAQ: CBRL)are worth investigating. Let's see why these could be the smartest dividend stocks to buy with your next $400 investment.1. CostcoYou know Costco, even if you have never set foot in any of its warehouse clubs. Costco is a combination of mesmerizing extremes, but none more tantalizing than its low prices and long lines. Good luck finding another retailer or even a grocery store with a gross margin as low as Costco's 12.6%.Investors tend to shy away from low-margin stocks, but this is the appeal of Costco. It barely marks up its merchandise to pass on the savings to its shoppers, and in return, folks willingly pay annual membership fees to keep coming back.Costco is huge. It has generated $248.8 billion in revenue over the past four quarters.Comparable-store sales tend to hold up in most economic climates, up a hearty 7.7% in March with e-commerce sales soaring 28.3%. It's probably not the first name you think about when you start sizing up income-generating investments, given its 0.6% yield. But sometimes, the best dividend stocks aren't the ones with the chunkiest distributions.Image source: Getty Images.When the warehouse-club operatorhiked its quarterly dividend rate14% last week, it didn't generate a whole lot of excitement. The stock is trading lower now, and
|
Wall Street Bank Leaders Hail IPO Market’s Budding Revival
| 2024-04-17 |
It covers the following details: (Bloomberg) -- The leaders of Wall Street’s largest banks are optimistic about the reopening of the market for initial public offerings, after listings by firms such as Reddit Inc. and Galderma Group AG boosted underwriting revenues.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching
|
Wall Street Takes New Role as Matchmaker to Private Credit
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Banks have found another way to fight back after private lenders have grabbed ever larger pieces of the lucrative business of financing leveraged buyouts.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on I
|
Why United Airlines Stock Is Flying Higher Today
| 2024-04-17 |
It covers the following details: United Airlines Holdings(NASDAQ: UAL)posted a smaller-than-expected quarterly loss and said issues atBoeingwill not derail its full-year guidance. Investors are cheering the result, sending shares up 11% as of 10 a.m. ET.Growing despite major headwindsUnited lost $0.15 per share in the quarter on revenue of $12.54 billion, besting Wall Street's consensus estimate for a $0.57-per-share loss on sales of $12.45 billion. The company's pre-tax loss was $164 million, which is a $92 million improvement over the same quarter a year ago.The results included a $200 million hit related to the impact of the grounding of Boeing MAX 9 jets in the quarter after an incident involving anAlaska Air Groupplane. Without that hit, United would have reported a quarterly profit.United said it is adjusting its long-term fleet strategy based on demand trends and delays expected due to Boeing's ongoing issues. But the company reiterated its guidance for full-year earnings of between $9 and $11 per share, offering some upside to the $9.67-per-share consensus estimate.The airline grew capacity by 9.1% year over year in the quarter.Is United Airlines a buy following its strong earnings report?Airline investorshave a lot to process this earnings season. The sector has held up remarkably well during a period of higher inflation and rising rates, and United appears to see no sign of a weakening in demand.United's ability to adjust its fleet to minimize the impact of Boeing's delays stands in contrast to comments made bySouthwest Airlinesthat caused thatstock to drop ahead of earnings season.In recent years, United's new management has worked to position the longtime laggard as an industry leader. These latest results highlight the good work that has been done.Investors need to be aware that airlines are cyclical and a recession would likely send the stocks downward. But for those interested in investing in the sector, United is an attractive choice.Should you invest $1,000 in United Airlines right now?Before you buy stock in United Airlines, consider this:TheMotley Fool Stock
|
The Great Freight Recession has now lasted longer than the COVID bull market
| 2024-04-17 |
It covers the following details: The trucking industry is asking, “How much longer is the market going to remain in a recession?” (Photo: Jim Allen/FreightWaves)On March 31, 2022, FreightWaves declared that a freight recession was imminent. More than two years later, the freight market remains in one of its deepest and longest recessions in history.Our original conclusion was derived from signals from FreightWaves SONAR. Its high-frequency datasets, which track freight supply and demand in real time, indicated an imminent collapse. When FreightWaves first published the article, many were not only skeptical of the conclusion, they derided FreightWaves for the call. Even after the recession took hold, few would have guessed that the freight downturn would be as deep or as long as it has been.As we enter the third year of the Great Freight Recession, the trucking industry asks, “How much longer is the market going to remain in a recession?”Finally, the bottom has been reachedWe believe that we are now at the bottom of the market.SONAR’s Outbound Tender Rejection Index, or OTRI, measures the percentage of truckload transactions rejected by carriers. OTRI indicates that conditions are better than they were a year ago, albeit not by much.Tender rejections are a highly reliable indicator of the balance of supply and demand. The higher the rejection rate, the more load options a carrier has. The lower the rate, the fewer load options a carrier has. While some will look at the absolute value of tender rejections, we also look at them in the context of where they have been.Tender rejections are currently at 3.95%, up from the 2024 low of 3.39 on March 26 and up substantially from 2.88% a year ago.The Outbound Tender Rejection Index.To learn more about FreightWaves SONAR, clickhere.We believe that tender rejections bottomed out in late March and have steadily increased throughout April, which is historically a soft month in freight. This indicates that the 2024 low is in the rearview mirror.Slow market growth for over a yearContracted load accepted volumes, another SONAR index measuring contracted load demand,
|
Huge News for Tesla Stock Investors
| 2024-04-17 |
It covers the following details: Fool.com contributor Parkev Tatevosian discusses what the cost-cutting move could mean forTesla(NASDAQ: TSLA)stock investors.*Stock prices used were the afternoon prices of April 14, 2024. The video was published on April 16, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades,Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the10 best stocksfor investors to buy right now… and Tesla made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of April 15, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Huge News for Tesla Stock Investorswas originally published by The Motley Fool
|
1 Amazing Artificial Intelligence (AI) Semiconductor Stock to Buy (Not Nvidia)
| 2024-04-17 |
It covers the following details: In today's video, I discuss recent updates affectingAdvanced Micro Devices(NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of April 16, 2024. The video was published on April 16, 2024.Should you invest $1,000 in Advanced Micro Devices right now?Before you buy stock in Advanced Micro Devices, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Jose Najarrohas positions in Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has adisclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.1 Amazing Artificial Intelligence (AI) Semiconductor Stock to Buy (Not Nvidia)was originally published by The Motley Fool
|
China Is Still ASML’s Top Market Despite US Chip Gear Curbs
| 2024-04-17 |
It covers the following details: (Bloomberg) -- ASML Holding NV’s sales to China were resilient in the first quarter despite curbs on exports of high-end chipmaking equipment to the Asian nation kicking in this year.Most Read from BloombergTrump Has Only $6.8 Million for Legal Fees With Trial UnderwayTikTok to Remove Executive Tasked With Fending Off US ClaimsChina Is Front and Center of Gold’s Record-Breaking RallyTesla Spends Weekend Cutting Prices of Cars and FSD SoftwareUS Dollar’s Extended Reign Delivers Stark Wake-Up Call for MarketsChina remains ASML’s biggest market, representing 49% of system sales in the first quarter, the Dutch company said on Wednesday. By contrast, the proportion of sales from Taiwan more than halved, while the US accounted for 6%, down five percentage points from the prior quarter.ASML, Europe’s most valuable technology company, has been caught in the crosshairs of the US government’s effort to stymie China’s progress in the chip industry. The Biden administration pushed the Dutch government to introduce restrictions on exports of ASML’s immersion DUV lithography machines, its second-most capable category of machinery, to China from Jan. 1.As the US tries to restrict China’s access to cutting-edge chipmaking tools, Beijing has been buying up kit to make more mature types of semiconductors. ASML was never permitted to sell its most advanced extreme ultraviolet machines to China, but first quarter sales indicate that demand for older lithography systems has continued.“The more you put them under pressure, the more likely it is that they will double up their efforts,” ASML Chief Executive Officer Peter Wennink said last year in a Bloomberg interview.Read More: ASML Orders Plunge as Chipmakers Pause High-End Gear PurchasesASML has forecast that as much as 15% of China sales this year will be hampered by the export control measures. Still, ASML expects “strong” demand from China to continue for the rest of this year, Chief Financial Officer Roger Dassen said in an investor call after the earnings.Meanwhile, the US has been pushing the Dutch government to stop ASML from servicing and repairing restricted chipmaking equipment procured by Chinese companies
|
Analysis-Wall Street wants answers from Musk on Tesla's affordable car
| 2024-04-17 |
It covers the following details: By Hyunjoo Jin, Norihiko Shirouzu and Chris Kirkham(Reuters) - Elon Musk has kept investors hanging since he issued cryptic social posts following an exclusive April 5 Reuters report that Tesla had scrapped its plans for a $25,000 “Model 2” electric vehicle.“Reuters is lying,” Musk wrote in one post that day, without identifying any inaccuracies.Nearly two weeks later, with no concrete updates from Musk, Tesla investors are restless. Some are demanding clear answers on the Model 2, along with Musk’s plans for arresting a sales slide amid falling electric-vehicle demand globally and rising competition from cheap Chinese EVs.Tesla’s move to lay off more than 10% of its global workforce and a handful of senior executives, made public Monday, added to shareholder jitters.“The street wants and NEEDS answers” when Tesla holds an earnings call scheduled for April 23, wrote analysts for Wedbush Securities after the layoffs were revealed. They cited a months-long “horror show” of bad Tesla news and called for a clear “strategic vision … with Model 2 a key component.”Wedbush Senior Equity Analyst Dan Ives told Reuters that Musk’s silence on the Model 2 was “gut-wrenching” to Tesla investors “because it’s so instrumental to the growth story.”Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management and a Tesla investor, put it more bluntly. “There’s no point in even investing in Tesla if they don't come out with this car,” he said.Musk and Tesla did not respond to requests for comment for this story or the April 5 report.The Street also wants clarity on another key aspect of the April 5 story: That after ditching the affordable-car project, Tesla plans to move forward with a self-driving robotaxi on the same small-car platform.Another Musk post that same day raised as many questions as answers: “Tesla Robotaxi unveil 8/8,” he wrote, implying some version of the self-driving vehicle might be ready by August, but
|
The Stanley Cup marketing wizard’s next project is Heydude shoes
| 2024-04-17 |
It covers the following details: Terence Reilly might not be a household name, but he played a big part in making a product that is likely already in your house into anational phenomenon.Reilly is credited withmaking the Stanley Cup a must-have item. Now he’s leaving Stanley and will try to work his magic on another brand, which already has a fairly high level of consumer appeal: Heydude shoes.It’s a return of sorts for Reilly.Crocsowns the Heydude brand, and that’s where Stanley recruited him from originally. His marketing leadership on the rubber clog shoes made them a must-have for Generation Z and others for a while, with a strong rub from social influencers. He will serve as president of Heydude, replacing Rick Blackshaw, who left the company earlier this week.“We are thrilled to be welcoming back Terence to the Crocs, Inc. family,” said Andrew Rees, CEO at Crocs,in a statement. “Terence has had tremendous success in creating and executing brand-building playbooks at both Stanley and Crocs by leveraging iconic product, scaling awareness, driving brand relevance and ultimately building communities… I am confident he is the right person to lead the Heydude Brand into its next phase of growth.”Heydude shoes—which are lightweight and comfortable, but are hardly fashionable—have a following with some teens, but the brand hasn’t broken out like Crocs had hoped it would when it acquired it in 2021. Sales increased 6% last year, less than half of the increase Crocs saw.Rees, on an earnings call in February, admitted the company had oversaturated the market with Heydude shoes in late 2022 and early 2023. Despite that, brand awareness only reached 32%, which Rees called “low by any global brand standards.”This story was originally featured onFortune.com
|
Best Artificial Intelligence (AI) Stock: Nvidia vs. Intel vs. AMD
| 2024-04-17 |
It covers the following details: In today's video, I discuss bullish and bearish points forNvidia(NASDAQ: NVDA),Intel(NASDAQ: INTC), andAdvanced Micro Devices(NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of April 16, 2024. The video was published on April 16, 2024.Should you invest $1,000 in Nvidia right now?Before you buy stock in Nvidia, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Jose Najarrohas positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel. The Motley Fool has adisclosure policy.Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.Best Artificial Intelligence (AI) Stock: Nvidia vs. Intel vs. AMDwas originally published by The Motley Fool
|
Nio Stock Has 33% Upside, According to 1 Wall Street Analyst
| 2024-04-17 |
It covers the following details: China is the largest automotive market in the world and has been an early adopter of electric vehicles (EVs). But competition is growing, and one Wall Street analyst thinks that could make it more painful for investors in Chinese EV makerNio(NYSE: NIO).Macquarie Equity Research analyst Eugene Hsiao isn't bullish on Nio's stock, but he does think it has dropped too far. He rates it "neutral" but sees share prices getting back to $5 over the next 12 months. That would be a gain of 30% for investors from its recent level.EV demand and rising competitionThe stock has dropped as EV demand has slowed in China and elsewhere. Nio shares are down by nearly 60% so far this year. Investors have fretted that the timing of the demand drop doesn't bode well for smaller EV makers like Nio just as competitive offerings are increasing.Hsiao believes the Chinese EV market has matured enough that successful EV makers will now have to tap a larger market focused on lower-priced vehicles. He summarized it by saying: "China's EV market is now well past the early adopter stage of the S-curve and firmly into mass adoption. This shift means previously niche start-up EV pure plays need to chase volume in the mass market."Nio management also likely believes that to be the case. The company plans to reveal a new mass market sub-brand next month. If it follows in line with other Chinese EV makers launching lower-priced brands, it could offer vehicles priced as low as about $20,000.Theanalyst is more bullishon other Chinese EV makers, however, particularly those that offer hybrid vehicles. That's why he isn't recommending that investors buy Nio right now. But Nio also has acompetitive advantage from its battery swapand other technologies. And the analyst still sees meaningful gains ahead for Nio stock.Investors who think Nio can successfully add a lower-priced brand could do well to buy shares now.Should you invest $1,000 in Nio right now?Before you buy stock in Nio, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Nio wasn’t
|
Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slides
| 2024-04-17 |
It covers the following details: Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock SlidesThe Travelers Companies(NYSE:TRV) reported a mixed first quarter, with earnings lagginganalyst' expectations. Core income per share reached $4.69 from $4.11 a year ago, missing the$4.90 consensus forecast. Net income per share rose to $4.80 from $4.13 a year earlier.The stock declined after the results. The New York-based company offers auto, home, and business property casualty insurance.For the first quarter, net written premiums increased by 8% to $10.18 billion, while total revenues also increased 16% Y/Y to $11.23 billion, beating the Street consensus of $10.51 billion. The company attributed performance to strong profitability, production in all three segments, and higher investment income.The quarter included an elevated level of catastrophe losses of $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter.Catastrophe losses primarily resulted from severe wind and hail storms in the central and eastern regions of the United States.The company's underlying combined ratio fell from 90.6% to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.The quarterly net investment income increased 28% to $846 million pre-tax ($698 million after-tax). Income from the fixed-income investment portfolio increased over the prior year's quarter due to a higher average yield and growth in fixed-maturity investments.Dividend:The Board declared a 5%growth in the regular quarterly dividend to $1.05 per share.Travelers Companies stock gained over 30% in the last 12 months. Investors can gain exposure to the stock viaInvesco KBW Property & Casualty Insurance ETF(NASDAQ:KBWP) andIShares U.S. Insurance ETF(NYSE:IAK).Price Action:TRV shares are down 3.20% at $215.98 premarket on the last check Wednesday.Photo via Wikimedia
|
Netflix Stock Has a Lot to Prove This Week
| 2024-04-17 |
It covers the following details: If you're aNetflix(NASDAQ: NFLX)investor -- like me -- it's OK to be excited and nervous. You have every right to be excited. The stock is beating the market with its 27% gain this year, more than doubling if we stretch the starting line to the beginning of last year.You should also be nervous because it reports its first-quarter results shortly after Thursday's market close. Expectations are high, and with great upticks come great responsibilities. Netflix will need another strong financial update if it wants to build on its stellar gains over the past 15 months.Leave the world behindMomentum is on the side of the bulls. Netflix stock hit another 52-week high this month, something that it has now done for six consecutive months. But this isn't an all-time high for the premium digital video pioneer. Netflix is still 12% away from taking out the all-time peak it scored in late 2021. With the stock's tendency to move sharply higher or lower after fresh financials, it could be there by the end of this week if things go right.The problem with the bubbly upbeat scenario is that Netflix itself offered up rosy guidance when it announced its fourth-quarter numbers back in January. Netflix was targeting $9.24 billion in revenue for the first three months of this year. The 13.2% year-over-year increase would be its biggest top-line jump in more than two years.This is a better story at the other end of the income statement. Netflix is starting to cash in on the fruits of scalability. It's at the point now where the platform was able to start cracking down on password sharing without shifting into reverse on subscriber growth. The 260.3 million accounts it was serving worldwide by the end of 2023 is a 13% increase, its largest quarterly jump in nearly three years.Good luck canceling Netflix. You'll find yourself on the outside of coworker and friend conversations about the widely watched shows and films on the service. Folks aren't flinching at price increases and the password sharing restrictions at Netflix, and that's padding its profitability.Its guidance calls for $1.976 billion in earnings, or $4.49 a share
|
Chewy Stock: Buy, Sell, or Hold?
| 2024-04-17 |
It covers the following details: Pet e-commerce companyChewy(NYSE: CHWY)went public in 2019 and ended its first day of trading at about $35 per share. Considering it trades at around $18 today, I bet investors wish they had sold Chewy stock on day one.In early 2021, Chewy stock traded at about $120 per share -- I'msureinvestors wish they had sold then, too.But when determining what to do with Chewy stock today, selling should be completely ruled out of the equation. This company has a lot going for it, and shareholders will want to hold on for the ride, at least. But there's good reason to buy as well, as I'll explain.What Chewy has done (and is doing) rightRetaile-commercecan be a surprisingly low-margin business. For evidence, consider the world's largest e-commerce player,Amazon. The company's North American and international business segments combined to bring in $484 billion in net sales in 2023. These operations are mostly e-commerce.These two segments for Amazon only earned $12 billion in full-year operating income. That's a paltry operating margin of 2.5%. And consider that Amazon has the requisite scale to be more profitable than its peers. Other e-commerce companies don't have it so good.In short, e-commerce margins are thin because consumers expect low prices, wide availability, and fast shipping. And companies consequently have high shipping-and-logistics expenses. But Chewy has found a way to overcome the challenge.In 2020, Chewy launched automation enhancements at a fulfillment center, and it has continued upgrading its facilities since then. Its fifth automated fulfillment center is opening in the first half of this year.Automation efforts have resulted in more efficient business operations for Chewy and have served as an undeniable profit-enhancing catalyst. The chart below shows a sharp increase in profitability when the first automated fulfillment center went live.CHWY Revenue (TTM) ChartOn its balance sheet, Chewy has $1.1 billion in cash, cash equivalents, and marketable securities, and it doesn't have any long-term debt. That's a strong position to be in. And
|
Time to Buy Chipotle Before Its Massive Stock Split?
| 2024-04-17 |
It covers the following details: A lot of people seem to care aboutstock splits, so much so that we even have adedicated calendarfor them at The Motley Fool. A huge split is coming up forChipotle Mexican Grill(NYSE: CMG), which is doing a 50-to-1 exchange, estimated to occur on June 26. Investors have gotten excited and sent shares of Chipotle close to all-time highs at around $3,000 a share.I am here to tell you that stock splits don't matter. A stock is worth the future cash it will distribute back to shareholders, discounted back to today. For Chipotle, it is irrelevant whether it has one share that trades at a price of $80 billion (its current market capitalization) or 80 billion shares trading for $1. An investor will make money if the company generates more in earnings.Forgetting the irrelevant stock split, how does Chipotle stack up when doing fundamental analysis? Should you buy the stock at current prices? Let's take a closer look and find out.A lot of room for store count growthAs the premier fast-casual restaurant chain for Mexican grub, Chipotle now has 3,437 store units, mostly in the United States. Over the long term it plans to open 7,000 stores in North America, and it is starting to dip its toe into international markets. Specifically, it has a few stores opened in Western European markets, and just launched a partnership to bring Chiptole to Dubai and the Middle East.While it is unclear how many locations Chipotle plans to build internationally, I think it is reasonable for the company to hit a few thousand at some point over the next decade or two, especially if it moves to other markets such as Australia. That would bring it to a total addressable market of at least 10,000 restaurants, which I don't think is crazy.McDonald's, for reference, has over 40k locations worldwide.How much would this mean in sales? Today, the average Chipotle generates $3 million in annual sales, a number that has grown at a single-digit rate in recent years as the company keeps up with inflation. Eventually, Chipotle should hit an average restaurant sales level of $3.5
|
Got $5,000? These 3 Growth Stocks Are on Sale Right Now
| 2024-04-17 |
It covers the following details: Do you have $5,000 that you're looking to invest in the stock market today? Below are some solid businesses you can invest in and which have promising long-term prospects but whose shares haven't been doing all that well this year.Shares ofApple(NASDAQ: AAPL),PDD Holdings(NASDAQ: PDD), andUnitedHealth Group(NYSE: UNH)are all in negative territory, and here's why that has created some great buying opportunities for investors.AppleCash-rich tech giant Apple has a wonderful business. It's Warren Buffett's top investment and for good reason -- it has a strong brand and fantastic financials behind it. Consumer demand for its products has remained relatively resilient even though economic conditions aren't ideal for a business that sells high-priced products.Last quarter, Apple's product revenue was flat at around $96.5 billion for the last three months of 2023. But it's the company's other segment, services, which is what should make investors bullish on the business. Service revenue totaled $23.1 billion and rose 11% year over year. Once Apple has consumers into its ecosystem, it can be hard (i.e., costly) for them to leave.As the business grows its service business, such as potentially launching a chatbot in the future, it has the potential to expand on these opportunities. That means even if its products may not be generating strong growth in the future, they may not need to given the potential for the service segment to pick up the slack.Shares of Apple are down 9% this year, but with the stock trading at a more modest 28 times earnings, now may be a prime time to invest in the business. Its strong 26% profit margins and phenomenal brand make Apple a stock worth adding to your portfolio whenever it's on sale. It can be a great place in which to invest $5,000 today.PDD HoldingsThe worst-performing stock on this list is PDD Holdings -- it's down 21% year to date. The China-based company comes with inherent risks, such as the worry that the Chinese government may add regulations which restrict its growth prospects at home and abroad. That risk is one of the reasons many Chinese stocks
|
Is Iovance Biotherapeutics Stock a Buy Now?
| 2024-04-17 |
It covers the following details: Is this the start of a comeback forIovance Biotherapeutics(NASDAQ: IOVA)? Though the small-cap biotech has significantly trailed the broader market in the past five years, its shares are up by 50% since 2024 started. Iovance is making progress on several fronts (more on that below).It's no wonder that many investors are increasingly excited about the company's direction. But should long-term investors put their hard-earned money into this stock today? Let's find out.IOVA ChartIOVAdata byYChartsWhat's going on with Iovance Biotherapeutics?Iovance Biotherapeutics specializes in oncology. The company's platform uses the power of the body's defenses against cancer. Tumor-infiltrating lymphocytes (TILs) are a type of cell that can recognize and kill cancer cells. Iovance Biotherapeutics' approach seeks to remove TILs from cancer patients' bodies, grow them by the billions, and reinsert them into patients. Iovance Biotherapeutics currently has two products on the market.The most recent to earn approval is Amtagvi, which belongs to the TIL family and earned the nod in February. Amtagvi became the first therapy approved by the U.S. Food and Drug Administration (FDA) for previously treated advanced melanoma, a form of skin cancer. The manufacturing process for Amtagvi takes about 34 days, on average, so revenue for it won't ramp up as fast as it would if it was a simple oral pill.However, considering that it is currently the only game in town for advanced melanoma patients, it could become successful. Iovance estimates that there are roughly 15,000 cases of advanced melanoma in the U.S. every year and 8,000 deaths.The company is also looking to expand, with planned regulatory submissions for Amtagvi in Europe and Canada sometime this year. Iovance will also go after the Australian market next year. Some analysts believe that Amtagvi could generate sales of $846 million by 2029. Last year, Iovance generated just about $1.2 million in sales, so things are about to improve
|
Amazon, Apple initiated: Wall Street's top analyst calls
| 2024-04-17 |
It covers the following details: Amazon, Apple initiated: Wall Street's top analyst callsThe most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades:TD Cowen upgradede.l.f. Beauty(ELF)to Buy from Hold with a price target of $190, down from $220. The firm sees the potential for e.l.f. to double its business by fiscal 2027 with shelf space and international expansion as the driving forces.HSBC upgradedDanaher(DHR)to Buy from Hold with a price target of $280, up from $250. HSBC's supply chain analysis suggests the de-stocking effects as well as order books might be on a recovery path for the life sciences tools sector.Wells Fargo upgradedOmnicom(OMC)to Overweight from Equal Weight with a price target of $106, up from $91. The firm sees upside to the company's organic growth from new business, media trends and "Flywheel."Morgan Stanley upgradedAntero Resources(AR)to Overweight from Equal Weight with a price target of $36, up from $26. The firm sees the company providing attractive leverage to rising gas prices and leading exposure to the growing liquified natural fairway in the Gulf Coast.Guggenheim upgradedGroup 1 Automotive(GPI)to Buy from Neutral with a $305 price target, calling it the "best positioned dealer" to navigate the current landscape, which is "somehow trading at [the] lowest multiple."Top 5 Downgrades:Northcoast downgradedBoeing(BA)to Sell from Neutral with a $140 price target. The firm expects Boeing's quarterly earnings report in two weeks to prompt concerns about the company's underlying fundamentals and ultimately shift investor focus to liquidity and acquisition concerns.JPMorgan downgradedFortive(FTV)to Neutral from Overweight with a price target of $90, down from $95. The firm also removed the shares from its Analyst Focus List. The company's Precision Technologies order trends have remained sluggish so far this year, with
|
TSMC Capex Outlook Key to Next Phase of $340 Billion Stock Rally
| 2024-04-17 |
It covers the following details: (Bloomberg) -- With Taiwan Semiconductor Manufacturing Co. still trading at pedestrian valuations even after surging to a record high, there is potential for its upcoming results to drive the stock even higher.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will Last After Attack on IsraelRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsWhat If Fed Rate
|
What's Going On With Mobileye Global Stock Wednesday?
| 2024-04-17 |
It covers the following details: What's Going On With Mobileye Global Stock Wednesday?Mobileye Global Inc(NASDAQ:MBLY) stock is trading higher Wednesday amid reports of the company winning orders to ship 46 million of its EyeQ6 Lite assisted-driving chips.The chips, which are in significant demand across global markets, will be incorporated into vehicles launching mid-year.The company’s executive vice president of business strategy and development, Nimrod Nehushtan, highlighted that this figure represents current wins, anticipating further growth and deployment in the coming years, Reuters reports.While Mobileye has kept its customer list confidential due to non-disclosure agreements, known clients includeprominent automotive manufacturerslikeVolkswagenandPorsche, according to Reuters.The EyeQ6 Lite system represents Mobileye’s mass-market offering, enabling vehicles with basic assisted driving features such as automated cruise control and lane changes.Nehushtan emphasized the EyeQ6 Lite’s capability to interpret text on road signs and its significant computing power upgrade—4.5 times that of its predecessor, made possible byTaiwan Semiconductor Manufacturing Co’s(NYSE:TSM) 7-nanometer process.Additionally, the chip is power-efficient and cost-effective while supporting global five-star safety ratings.It includes an 8-megapixel camera offering a 120-degree field of vision for improved environmental detection. Mobileye also mentioned its more advanced EyeQ6 High chip, which is slated for volume production early next year.Mobileye reportedfourth-quarter revenuegrowth of 13% year-on-year in January to $637.0 million, missing the Street consensus estimate of $639.8 million. Adjusted EPS of $0.28 beat the Street consensus estimate of $0.27.Mobileye stock plunged over 30% in the last 12 months. Investors can gain exposure to the stock viaFirst Trust Nasdaq Artificial Intelligence And Robotics ETF(NASDAQ:ROBT) andVanguard Extended Market ETF(NYSE:VXF).Price Action: MBLY shares are trading higher by 2.72% at $30.95 in premarket on the last check Wednesday."ACTIVE
|
No landing, no Fed rate cuts: the markets' new bet on 2024
| 2024-04-17 |
It covers the following details: Federal Reserve Chairman Jerome Powell is tasked with a unique and sharply difficult challenge in American public life: talking about the success of the U.S. economy while simultaneously apologizing for it.The Fed has a twin mandate, to deliver some sort of mythical ideal called "price stability," aligned with an equally ephemeral notion of "full employment" while playing its informal role as the flag-bearer for bullishness on Wall Street.Powell's odd tone, reflecting both sides of that mandate, was in stark evidence earlier this week during a speech in Washington.In his last public appearance before the Fed's next policy meeting later this month, Powell seemed pained to note that faster inflation, tied to a stronger domestic economy, would likely mean higher lending rates into the summer and beyond."Right now, given the strength of the labor market and progress on inflation so far, it's appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us," Powell told an audience of economists, in full knowledge that he actually was speaking to investors on Wall Street and beyond.Fed Chairman Jerome Powell could be preparing for a 'no landing" scenario for the red-hot U.S. economy.Bloomberg/Getty ImagesFed Vice Chairman Philip Jefferson was even more succinct, spelling out the likely path for rates and the economy in a separate event at the International Research Forum on Monetary Policy in Washington."My baseline outlook continues to be that inflation will decline further, with the policy rate held steady at its current level, and that the labor market will remain strong, with labor demand and supply continuing to rebalance," he said.For traders, September is the new JuneTraders reacted as you would fully expect, by dumping U.S. Treasury bonds — sending their yields sharply higher — and paring bets on any Fed interest-rate cuts until at least September, according to the CME Group's FedWatch.Benchmark 10-year Treasury note yields, in fact, tested the 4.7% mark, a level seen less than a handful of times since the global financial crisis, while 2-year notes briefly topped 5%, a level more than 3.7 times higher than the current dividend yield on the S&P 500.Powell's pal
|
2 High-Yield Dividend Stocks to Buy and Hold for 10 Years
| 2024-04-17 |
It covers the following details: Great dividend stocks don't always have particularly high yields. Still, it's nice to see a solid income stock that boasts one that's higher than average. And if this company can reward its shareholders by constantly raising its payouts -- and if it can do so for long periods -- that's even better. A number of dividend stocks on the market fit this description.Let's consider two in the healthcare sector:Bristol Myers Squibb(NYSE: BMY)andNovartis(NYSE: NVS). These drugmakers have plenty to offer to long-term, income-seeking investors.1. Bristol Myers SquibbBristol Myers looks like a great pick for income seekers looking for reasonably valued stocks. The drugmaker has lagged the market over the past year due to slow top-line growth following important patent cliffs. As a result, Bristol Myers' forward price-to-earnings (P/E) ratio currently sits at 14.3 -- the average for thepharmaceutical industryis 17.4.Despite its recent issues, Bristol Myers has maintained its dividend program. The company has increased its payouts by 46% in the past five years and offers a juicy dividend yield of about 5%.Further, though revenue growth is slow right now, Bristol Myers should be able to bounce back. The key, as always, is to develop newer medicines to replace ones that have lost patent exclusivity or will soon do so. Bristol Myers has been working on that project for years and boasts a lineup of newer drugs approved since 2019.With the company's product mix changing significantly, it should eventually return to delivering strong financial results. Bristol Myers expects more than $10 billion in revenue from its new product portfolio in 2026. For context, these products generated $3.6 billion in revenue last year, making that projection an increase of 77% year over year.The drugmaker estimates $25 billion in sales from this portfolio by 2030. Of course, Bristol Myers will earn other brand-new approvals in the meantime, judging by its vast pipeline. The company is running several dozen clinical trials. Although this transition period might be somewhat challenging, Bristol Myers should still
|
2 Wall Street Analysts Share Differing Views on Caterpillar Stock. Who Is Right?
| 2024-04-17 |
It covers the following details: Caterpillar(NYSE: CAT)is a cyclical stock, meaning its revenue, profit margin, profits, and cash flow tend to ebb and flow along with the economy. Its earnings can overshoot expectations when the economy is in growth mode and undershoot them when it is slowing.Recently, two heavyweight analysts published opposing views regarding the stock.Morgan Stanley's analyst set a new price target is $327 with an equal weight rating, whileJ.P. Morgan's new price target is $435 with an overweight rating. The Morgan Stanley 12-month target suggests a 9% drop from the current price of around $360, while the J.P. Morgan target points to a 21% upside.Caterpillar: The bull and bear debateThe case for buying Caterpillar relies on lower interest rates stimulating construction activity, ongoing benefits of infrastructure spending on its equipment, and higher commodity prices driving its mining machinery and energy equipment sales. If you are optimistic about these indicators, the stock is a buy.The bear case is the reverse of all these things, or at least it argues that these factors won't be strong enough to propel the stock higher.A third viewpoint on CaterpillarAnother case revolves around believing in the end market drivers that can improve Caterpillar's earnings (lower rates,infrastructure spending, higher commodity prices). Complicating matters is the fact that it's best to buy cyclical stocks when the market isnotpricing in an optimistic scenario.Caterpillar's fair value is around 20 times the midpoint of its free cash flow (FCF) generation through the cycle. Management's updated guidance calls for $5 billion to $10 billion compared to previous guidance of $4 billion to $8 billion.The midpoint of the new guidance is $7.5 billion, implying a valuation of $150 billion, when the current market cap is $181 billion at a share price of $360. While Caterpillar has the potential to exceed earnings estimates this year, and momentum is behind the stock, the current entry point is not an excellent value for long-term investors aware of the cyclicality of earnings.Should you invest $1,000
|
Palantir Stock vs. Microsoft Stock: Which Is the Best Artificial Intelligence (AI) Stock to Buy?
| 2024-04-17 |
It covers the following details: Fool.com contributor Parkev Tatevosian comparesPalantir Technologies(NYSE: PLTR)toMicrosoft(NASDAQ: MSFT)to determine the better stock to buy.*Stock prices used were the afternoon prices of April 14, 2024. The video was published on April 16, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades,Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the10 best stocksfor investors to buy right now… and Microsoft made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of April 15, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Palantir Stock vs. Microsoft Stock: Which Is the Best Artificial Intelligence (AI) Stock to Buy?was originally published by The Motley Fool
|
What's Going On With ASML Stock Wednesday?
| 2024-04-17 |
It covers the following details: What's Going On With ASML Stock Wednesday?Netherlands-based critical chipmaking firmASML Holding NV(NASDAQ:ASML) reported a fiscal first-quarter 2024 net sales of €5.29 billion, down 21.6% year-on-year. In USD, sales of $5.75 billion missed theconsensus of $6.13 billion.Net bookings for the first quarter were €3.61 billion, compared to€3.75 billion ayear ago, down from fourth-quarternet bookings of €9.19 billion.Of these quarterly net bookings, €656 million was EUV for the first quarter, versus fourth-quarter net bookings of €5.6 billion. The stock price declined after the results.Also Read:ASML Faces Setback as Huawei Innovates Beyond EUV Restrictions with Breakthrough PatentThe gross margin remained flattish at 51%. GAAP EPS was €3.11 in the first quarter. In USD terms, EPS of $3.38 missed the street view of $3.43.ASML held €5.41 billion in cash and equivalents as of the first quarter.Dividends:ASML proposes declaring a total dividend of €6.10 per ordinary share for the year 2023, a 5.2% increase compared to 2022. Recognizing the three interim dividends of €1.45 per ordinary share paid in 2023 and 2024, this leads to a final dividend proposal to the annual meeting of €1.75 per ordinary share.Outlook:ASML expects fiscal second quarter 2024 net sales of €5.7 billion-€6.2 billion versus consensus of $6.50 billion and a gross margin of 50%-51%.ASML’s outlook for the full year2024 is unchanged, with the second half expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn.The ASML stock gained over 52% in the last 12 months. Investors can gain exposure to the stock viaTidal ETF Trust II The Meet Kevin P
|
Is Mobileye Stock a Buy?
| 2024-04-17 |
It covers the following details: The explosion in artificial intelligence (AI) technology last year brought the possibility of fully self-driving vehicles closer to reality. One of the companies working to bring autonomous cars to the masses isMobileye Global(NASDAQ: MBLY).Founded in 1999, the company possesses decades of experience with advanced driver assistance systems (ADAS), technology that helps drivers avoid accidents. It has built an impressive business selling its technology to over 50 vehicle manufacturers around the globe, includingVolkswagen.But the potential of autonomous driving and the advent of AI doesn't necessarily mean Mobileye stock is a buy. Let's delve deeper.Mobileye's technologyAccording to consulting firm McKinsey, the combined ADAS and autonomous driving market could be worth over $300 billion by 2035. At least $170 billion of that would come from autonomous driving.Mobileye has built a complex platform that analyzes driving conditions in real time, consumes minimal vehicle power, and is cost-effective for automakers. The firm's solutions have been used in more than 170 million vehicles, and have provided Mobileye with vast quantities of driving data to continue evolving its systems.The company anticipates that the path to fully autonomous vehicles will be a gradual transition. The evolution from today's advanced driver assistance systems, which feature tools such as sensors and back-up cameras, will move to hands-free driving on highways, and eventually, to vehicles capable of self-driving anywhere.As a result, Mobileye has designed the products in its portfolio to be modular. This gives automakers the ability to pick the appropriate level of ADAS and autonomous capabilities for each car model, as well as to scale up in technical complexity based on consumer demand.As public interest in self-driving tech increases, Mobileye will be ready with progressively comprehensive capabilities. These include sensors, cameras, and radar for the car to "see" the road, software that defines driving safety criteria, redundant systems to ensure constant system uptime, and real-time mapping abilities to analyze traffic and road conditions.Mobileye's financialsMobileye's impressive technology, and its wide adoption among automakers, translated into sales of $2.1 billion in 2023, up from $1.9 billion in 2022. The company also achieved
|
Government hiring spree propping up the US job market
| 2024-04-17 |
It covers the following details: State and local governments are on a hiring spree to fill high-turnover positions, which is keeping the job market afloat, Labor Department data shows.
|
1 Analyst Thinks Apple Stock Will Slide to $162. Is It a Sell?
| 2024-04-17 |
It covers the following details: For many years now,Apple(NASDAQ: AAPL)stock has been a favorite of individual and institutional investors alike. For most of its recent history, analysts have been bullish on the tech giant's shares too.However, there are always those whose views run counter to the conventional, and one such contrarian just reiterated his bearish take on Apple stock in a new research note. Could he be right?A bear in a field packed with bullsThe rare Apple bear in question is Thiago Kapulskis from the Brazilian financial services company Itau-BBA. On Monday, Kapulskis published an update of his Apple view in which he continued to rate the stock an underperform (sell, in other words) with a price target of $162 per share. That implies a 4.3% downside over the next 12 months from the current share price.The analyst's new note on the company came a day after tech sector research firm IDC published its latest data on smartphones. The report was not favorable for Apple, as IDC found that shipments of its iconic iPhone fell by roughly 10% year over year in the first quarter. Compounding that, Apple lost its crown as the top smartphone purveyor in the world, sliding to the No. 2 spot behind its archrival in the segment,Samsung.In his note, Kapulskis wrote that "this is a demonstration that momentum remains weak for Apple."More than just a phone makerIn the same note, however, the Itau-BBA analyst pointed out that the IDC data makes it more important that Apple develop and sell an iPhone loaded with some usefulartificial intelligence (AI)features.If any company is capable of harnessing AI effectively in a device, it's Apple. Even if it continues to be something of a laggard in handsets, we should remember that the company is more than just the iPhone -- its revenue from services has been growing, at times impressively, and it's doing well in other product niches too. I've been a shareholder for some time now, and I'm not discouraged by the smartphone sales slump. I remain an Apple bull.Should you invest $1,000 in Apple right now?Before you buy stock in Apple, consider this:TheMotley Fool
|
Klarna credit card launches in the US as Swedish fintech grows its market presence
| 2024-04-17 |
It covers the following details: Klarnais launchingits credit card in the United States, the Swedish fintech giant told TechCrunch in an exclusive interview.“It was one of our most asked for products,” said David Fock, Klarna’s chief product and design officer, “and will allow people to pay in the Klarna way but with a card.”By “Klarna way,” Fock means in installments. While the company’s offerings have evolved over the years, it started out as a buy now, pay later business, giving consumers a way to spread out payments over time.Klarna launched a credit card in the EU several years ago but this will be the first time consumers in the U.S. can apply for one.With the Klarna credit card, the company is now competing with the likes ofAppleand more recently,Robinhoodas well as rival BNPL playerAffirmin offering a credit card in the United States. It is partnering with Salt Lake City–based WebBank in the effort. There is no annual fee for the card, and no foreign transaction fees.Users can earn up to 10% cash back on selected merchants when using the card in its app, and the card integrates with the company’s AI assistant to find deals on planned purchases, he said. Klarna’s virtual Visa card is compatible with Google and Apple Pay.For now, people can apply to be on a waitlist for the card, which will be rolling out in the coming months. Customers can pay for purchases either in stores or online. They will have the option after the fact to spread out the payments for a larger purchase across three to six months, with an interest rate of 33.9%. Or, they can extend the due date by one month, also paying 33.9% on that purchase. While that interest rate isn't unheard of for BNPL offerings (though it can be far lower), it is high compared to typical credit cards, which tend to be closer to 30% at the high end,according to Nerdwallet.“We want to offer payment option flexibility but we don’t want it to be like a credit card that builds revolving credit for consumers,” Fock told TechCrunch. “We see it as a problem that the credit card debt in the U.S. is hitting record levels, and we believe our options are healthier and more sustainable.”Aff
|
Should You Buy the Dip in Adobe Stock?
| 2024-04-17 |
It covers the following details: Fool.com contributor Parkev Tatevosian evaluatesAdobe(NASDAQ: ADBE)stock for long-term investors.*Stock prices used were the afternoon prices of April 14, 2024. The video was published on April 16, 2024.Should you invest $1,000 in Adobe right now?Before you buy stock in Adobe, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $526,933!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Should You Buy the Dip in Adobe Stock?was originally published by The Motley Fool
|
Here Are My Top 3 "Magnificent Seven" Stocks to Buy in April
| 2024-04-17 |
It covers the following details: There's no hotter topic in technology today than artificial intelligence (AI). Breakthroughs from ChatGPT and competing platforms have captivated both tech enthusiasts and investors. But with so many companies trying to make waves in the AI realm, investors can become exhausted trying to identify the most compelling opportunities.The "Magnificent Seven" stocks --Amazon(NASDAQ: AMZN),Microsoft(NASDAQ: MSFT),Meta Platforms(NASDAQ: META),Alphabet,Apple,Tesla, andNvidia-- are the usual suspects in the AI spotlight. Below, I'll break down the three megacap tech behemoths I think are the strongest buys right now.1. MicrosoftMicrosoft kicked off the AI revolution with its multibillion-dollar investment inOpenAIin early 2023. OpenAI is the start-up behind the wildly successfulAI application ChatGPT.Over the past year, Microsoft has swiftly integrated ChatGPT throughout its Windows operating system. The technology has helped spear gains in the company's Azure cloud computing platform, as well as Microsoft's developer product GitHub.The investment in OpenAI appears to be paying off in spades. It's no wonder that top tech analyst Dan Ives of Wedbush Securities has proclaimed thatMicrosoft's "iPhone moment" has arrived.The integration of ChatGPT into Microsoft's ecosystem represents something bigger than just new revenue opportunities. Microsoft has transformed from a personal computing empire to a leader in cloud computing and is now evolving into a full-blown AI powerhouse.At a forward price-to-earnings (P/E) ratio of about 36, Microsoft stock isn't exactly cheap. The forward P/E of theS&P 500is just under 21. However, the company's robust cash-flow machine and diversified business model is hard to pass over -- especially when it comes to the Magnificent Seven.Microsoft is a top investing opportunity as the AI narrative continues to play out. Now is a great time to begin using dollar-cost averaging to add to an existing position or initiate a new one. Prepare to hold for the long term.Image source: Getty Images.2. AmazonAlthough Microsoft's partnership with OpenAI was the talk of the town for
|
Before You Buy and Hold Roku Stock, You Should Know About Its Biggest Risk
| 2024-04-17 |
It covers the following details: One of the most powerful and recognizable trends across the economy in the past decade has been the changing video entertainment landscape. The rise of streaming is something all investors are paying attention to.I believeRoku(NASDAQ: ROKU)is a smart way to play this secular shift, as it's positioned well to benefit from the industry's growth. But before you rush to buy and hold thisstreaming stock, you need to know more about what might be its biggest risk.Sizing up the industry backdropRoku operates a true streaming platform. It has created an environment that lets advertisers target streaming viewers. This so-called connected TV setting competes for marketing budgets with traditional broadcast and cable TV.Additionally, Roku allows viewers to aggregate all their various streaming services into one easy-to-use interface. That on its own is extremely valuable given the sheer number of choices on the market today.This means that Roku has deals in place with some of the most popular services out there, likeNetflix,Walt Disney's Disney+,Warner Bros. Discovery's Max, andAlphabet's YouTube, for example. These businesses make their services available on Roku, arranging various advertising and subscription revenue-sharing agreements.This presents a big risk, though. These content companies are incredibly powerful when it comes to negotiations, and they might have the upper hand versus Roku when trying to obtain favorable terms. This points to the fact that Roku might need these content partners more than they need Roku.Netflix currently has 260 million global subscribers. YouTube has an estimated 2.5 billion users. They operate direct-to-consumer business models that probably would be fine without Roku's distribution capabilities. It's hard to find information on this, but I'd be surprised if Netflix and Alphabet paid any money to Roku at all. Consequently, there's probably a lot of potential revenue being left on the table that could be showing up on Roku'sincome statement.Another related concern is the possibility that the streaming industry consolidates to a small number of massive content enterprises. Let's say a decade from now, there's only Netflix, YouTube, and Disney. Roku's entire value proposition, which comes from being able to combine a large number of services into one interface, is undermined in that bearish scenario.In
|
Could SoundHound AI Stock Be a 100-Bagger in 20 Years?
| 2024-04-17 |
It covers the following details: One stock that's been generating a lot of interest this year isSoundHound AI(NASDAQ: SOUN). After it was revealed that chipmakerNvidiahas a stake in it, investors have grown bullish about the company. And given its relatively small $1.3 billion market cap, investors are likely hoping the stock can generate some significant returns.But could SoundHound AI be the next greatAI stockto own, and perhaps even grow its valuation by 100 times over the next few decades?Why SoundHound AI could be a huge growth stockSoundHound AI is an exciting growth stock because there are many ways for its business to grow. Its cutting-edge voice AI and speech recognition technology could find applications in electric vehicles, drive-thrus at restaurants, and smart devices in general. Allowing customers to have conversations with an AI app through SoundHound's platform could help companies cut down on overhead and wage expenses while potentially improving accuracy, such as during an order-taking process.With so many opportunities out there, it's not unreasonable to expect some terrific growth, especially as the company works closely with Nvidia. The business is still in its early growth stages, and that's evident from its rapid growth rate. In Q4 2023, SoundHound AI's revenue rose 80% year over year to $17.1 million, and it tightened its net loss to $18 million from the $30.9 million loss it incurred a year earlier.Overall, the company is moving in the right direction and as long as it can capitalize on its opportunities, the business is likely to become much more valuable. In 2025, management expects the top line to exceed $100 million -- more than double the $45.9 million it reported in 2023.Can SoundHound AI grow to 100 times its valuation?For SoundHound AI to become a 100-bagger, its market cap would have to rise to around $130 billion. Over the course of two decades, that could be a possibility given the potential for AI to transform industries. And in 20 years, as stocks rise in value, $100 billion valuations may be more common than they are today, making it more plausible for SoundHound AI to reach that
|
Forget Nvidia: Consider These 2 Millionaire-Maker Stocks to Buy Instead
| 2024-04-17 |
It covers the following details: Nvidia(NASDAQ: NVDA)has made a lot of millionaires over the last year as its share price skyrocketed 225%. The company rallied investors as it became the poster child for a boom in artificial intelligence (AI), snapping up an estimated 90% market share in AI chips.NVDA PE Ratio (Forward) ChartHowever, the chart above shows that Nvidia's meteoric rise has made it an expensive option compared to other tech stocks. Nvidia's forward price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio are significantly higher than the same metrics forIntel(NASDAQ: INTC)andApple(NASDAQ: AAPL).Forward P/E is calculated by dividing a company's current share price by its estimated future earnings per share. Meanwhile, P/S divides its market cap by its trailing-12-month revenue. These are useful valuation metrics as they consider a company's financial health alongside its share price.For both, the lower the figure, the better the value. As a result, Intel and Apple are trading at a bargain compared to Nvidia.So, forget Nvidia and consider these two millionaire-maker stocks instead.1. IntelShares in Intel have risen more than 135% since it went public in 1971, creating plenty of millionaires along the way.However, the company has hit a few roadblocks in recent years. Its stock is down about 45% over the past three years after seeing decreased market share in central processing units (CPUs) and the end of a partnership with Apple that lasted more than decade.Intel responded to recent headwinds by introducing significant structural changes that could pay off in the coming years. Last June, Intel announced a "fundamental shift" to its business, adopting an internal foundry model that it believes will help it save $10 billion by 2025.This would see it adopt a model similar toTaiwan Semiconductor Manufacturing, becoming a major provider of foundry capacity in North America and Europe.Moreover, Intel is moving into AI, a market valued at about $200 billion last year and projected to hit nearly $2 trillion by 2030.
|
Which Has More Staying Power, Stocks or Gold?
| 2024-04-17 |
It covers the following details: Despite the impressive performance from stocks in recent months, it pales in comparison to gold. Prior to the recent pullback, stocks had surged by more than 10% in the preceding three months and by over 20% in the past six months. Conversely, gold prices have soared by more than 15% in the last three months and by over 25% in the preceding six months. That’s a lot of money flowing into what is often considered competing asset classes. This week, I’m looking into past instances when stocks and gold surged higher together to see if history has tended to favor one or the other going forward… or both or neither.SPX GoldGold, Stocks Flying High TogetherGoing back to 1980, I found times that the S&P 500 Index (SPX) and gold both shot up at least 10% over a three-month period. There were 16 prior instances, with the last time occurring this past December. The table below summarizes the S&P 500 returns after these instances. Stocks tended to outperform their baseline after these occurrences in each of the timeframes studied from one month to a year out. For example, six months after these two assets rally 10% over a three-month period, the S&P 500 gained an average of 10.4%, with 93% of the returns positive. Typically, the S&P 500 has gained about 5% over a six-month period with 73% of returns positive.SPX Gold 10 PercentNext, let’s see how gold has performed after the same signals. History clearly favors buying stocks over gold after these occurrences; the safe-haven asset has typically underperformed after strong rallies from equities. Six months after the signals, gold averaged a slight loss, with just 40% of the returns positive. Since 1980, gold typically gained 2% over a six-month period with a 54% chance of having a positive return.Gold SPX ReturnsI did a similar study as above, except instead of looking at three-month rallies of 10% or more for both assets, I looked at 15% rallies over six months. The first table
|
3 Stocks That Could Turn $1,000 Into $5,000 by 2030
| 2024-04-17 |
It covers the following details: As theS&P 500andNasdaq Compositehover near their all-time highs, it might seem tough to find growth stocks that can generate multi-bagger gains over the next few years. But if you dig a little deeper you can unearth a few hidden gems that still have the potential to turn a modest $1,000 investment into $5,000 by the end of this decade. Here are several to consider now.1. Celsius HoldingsCelsius Holdings(NASDAQ: CELH)sells sugar-free energy drinks that are made from natural ingredients like green tea, ginger, and amino acids. It claims its drinks have "thermogenic" properties that can accelerate a person's metabolism and burn more body fat during workouts.Image source: Getty Images.Celsius' health-oriented approach has resonated with younger consumers, and it has become the third-largest energy drink brand in the U.S. after Red Bull andMonster Beverage. It also signed a U.S. distribution deal withPepsiCoin 2022, and continues to roll out its drinks in more overseas markets.In 2023, Celsius' revenue soared 102% to $1.3 billion as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 316% to $296 million. Analysts expect its revenue to rise 42% in 2024 and 33% in 2025.Trading at 10 times this year's sales, Celsius' stock isn't too pricey relative to those growth rates. If Celsius can hit those targets and continue expanding its revenue at a compound annual growth rate (CAGR) of 30% from 2025 to 2030, it could generate $9.2 billion in revenue by the final year.That would be more than seven times higher than its revenue in 2023 -- so it could easily turn a $1,000 investment into more than $5,000.2. On HoldingOn Holding(NYSE: ONON)is a Swiss maker of athletic footwear and apparel. It
|
Jet Maker Embraer Emerges as Brazil’s Best Stock on Orders Flow
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Embraer SA’s push into a market long dominated by Boeing Co. and Airbus SE is bearing fruit in equity markets, as a flow of new orders from North America and Europe to Asia sends the stock soaring.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will Last After Attack on IsraelWhat If Fed Rate Hikes Are Actually Sparking US Economic Boom?Red Lobster Considers
|
Here's How Much Stock Visa Repurchased in the Past Year
| 2024-04-17 |
It covers the following details: Say this about card payment giantVisa(NYSE: V): It's not stingy about spending capital on shareholder-pleasing measures. The company regularly allocates piles of money to buying back its own stock.Visa's stock repurchases are large, amounting to $12.7 billion over the past year. Let's take a look at the particulars behind Visa's buybacks, and what they indicate about the company.Nearly 54 million shares bought in the past yearAll told, $12.7 billion bought 53.9 million shares of stock. Breaking that down into the four quarters, Visa purchased between 10 million and 17 million shares in each, with the total spend ranging from $2.2 billion to $4.1 billion.The company is also a consistent (if not particularly generous) dividend payer, which costs it about $1 billion per quarter. So we're looking at north of $3 billion in quarterly share price-boosting measures from the company. How can it afford such high spending on a regular basis?The answer is: robustfree cash flow (FCF). See, even though the Visa name is readily identified with credit cards, the company does not provide any credit to the holders of that plastic. Instead, it operates as a brand and as a payment processor between those consumers and the card issuers -- the financial institutions actually extending the credit powering the credit cards (or channeling the cardholder's existing funds in the case of debit cards).A middle man supremeAs such, Visa is basically a high-margin middle man. That's why its profitability is almost always sky-high -- net margin was a very enviable 52% in fiscal 2023 -- and the FCF number immense (almost $20 billion for the period).That's also why investors looking for a rock-solid blue chip in the finance sector should consider Visa. The world's consumers aren't going to stop using Visa plastic while old-fashioned cash transactions keep losing ground to newer technology. Barring some wild black swan event, Visa will surely remain dominant in its industry for many years to come.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the news
|
The Best Cannabis Stock to Invest $1,000 in Right Now
| 2024-04-17 |
It covers the following details: Do you want to invest in the cannabis industry? One thing you should know off the bat is that marijuana legalization isn't inevitable in the U.S., despite any news you may have heard about drug rescheduling or new bills in Congress. It's important to get that out of the way, as many investors load up on shares ofTilray Brands(NASDAQ: TLRY)andCanopy Growth(NASDAQ: CGC)in the hope that these stocks will benefit from legalization and be surefire ways to invest in the industry's long-term growth.But in reality, that leaves you exposed to significant risk -- because while you're waiting for a day that may never come (legalization), or at least, not anytime soon, those businesses are struggling to generate any growth that doesn't come from acquisitions. They're also burning through tons of cash.If you're serious about investing in thecannabis industryand have $1,000 that you can leave in a pot stock for the long haul, then I've got a better option for you: Investing in a cheap multi-state operator that's already generating revenueand profitin the U.S. That company isCresco Labs(OTC: CRLBF).Cresco Labs is all business, without the hypeCresco Labs is notably different from Tilray and Canopy Growth in its approach. It has a low-key chief executive officer, Charles Bachtell, who doesn't need to hype up his company's performance or growth opportunities. Unlike Tilray's Irwin Simon and Canopy's David Klein, who are often on investing shows talking up their growth prospects, odds are you probably haven't even seen Bachtell or heard of him.Investors in Cresco Labs may be disappointed with that and with the company not being more aggressive in promoting its stock, but that also means there's less potential for wild swings in its valuation. Sure, Cresco Labs hasn't been a great stock to own in recent years, falling about 80% since 2021, but that's more to do with the industry as a whole than its own individual performance. And it's not as if Tilray or Canopy Growth have performed any better. The former is
|
3 Must-Know Facts About Cava, Before You Buy the Stock
| 2024-04-17 |
It covers the following details: Shares ofCava Group(NYSE: CAVA)are having a fantastic year, as they satisfy the appetites of hungry investors. As of April 12, the stock has surged 48% in 2024, beating theS&P 500by a wide margin.This mid-caprestaurant stockis starting to win over the market. And given its strong performance, you might be considering adding shares to your portfolio. Before doing so, there are three things you need to know.Rapid expansionCava might fly under the radar given that it doesn't have the scale and wide reach of a business likeMcDonald'sorStarbucks. But that's precisely why it's attracting Wall Street's attention. There is meaningful growth potential.As of Dec. 31, Cava operated 309 restaurants across the country, up 30% from the year before. And the plan is to open 50 new stores in 2024. But over the very long term, executives believe the chain could have 1,000 locations open by 2032. That would translate to a more than threefold expansion.At that size, Cava would certainly be generating significantly greater revenue. And it could become a household name in the competitive restaurant sector.I believe there are two key trends working in Cava's favor right now. One is the popularity of the fast-casual concept that prioritizes value and quality for consumers. Another tailwind is simply a growing interest in health and wellness, particularly in light of the COVID-19 pandemic.I know that Cava's most bullish supporters hope that this enterprise canone day get toChipotle Mexican Grill's level. The Tex-Mex chain has 10 times the number of restaurants Cava does.Looking at the financialsIt's not surprising that Cava's top line has posted outsize gains. Revenue in 2023 totaled $717 million, a 60% year-over-year increase. Opening new stores, while generating more sales per store, creates this growth. I think this is what investors are most excited about.But typically when a company plows all its resources into expansion initiatives, there are no profits. Cava might be in the early innings of bucking this trend.
|
Is It Too Late to Buy AMD Stock?
| 2024-04-17 |
It covers the following details: Artificial intelligence (AI) technology took off in a big way last year. This generated explosive demand for the high-performance semiconductor chips produced byAdvanced Micro Devices(NASDAQ: AMD).As a result, AMD shares more than doubled from a 52-week low of $81.02 reached last May to a high of $227.30 in March. Since then, AMD's stock price has dipped along with the broader stock market.Does this share price decline create a buy opportunity despite AMD's amazing stock climb? To answer that question, a closer examination of AMD is necessary.AMD's mixed demand environmentAMD's AI chips proved a boon for the company's division focused on data center products. This is understandable because AI systems require tons of data and computing power, both of which reside in thesecloud computinglocations.As a result, fourth-quarter revenue in AMD's data center segment rose an impressive 38% year over year to $2.3 billion. AMD's management team anticipates this segment's sales will continue to grow in 2024. However, all is not rosy for the chipmaker.AMD exited 2023 with $22.7 billion in revenue, down 4% compared to 2022's $23.6 billion. Why did AMD suffer a modest year-over-year revenue decline despite the red-hot AI market?Historically, AMD depends on two business segments to generate the majority of its revenue. These are its PC and video games divisions.These two segments produced $13 billion of AMD's $23.6 billion in 2022 sales. Yet in 2023, these divisions accounted for $10.9 billion in revenue, contributing less than half of AMD's $22.7 billion.This decrease is part of thecyclical natureof the semiconductor industry. In fact, the video game industry's currently tepid demand for chips means AMD's gaming segment is expected to remain depressed in 2024. Management anticipates revenue for the division will decline by double digits compared to 2023.Adding to this, the company forecasts its embedded segment, which encompasses AMD's products for commercial and industrial applications, will
|
Can This High-Yield Dividend Stock Keep Beating the S&P 500?
| 2024-04-17 |
It covers the following details: Dividend stocks are potent instruments for building wealth. A staggering 85% of theS&P 500's total returns since 1960 have emanated from dividend payouts, according to a report by Hartford Funds.Amgen(NASDAQ: AMGN), a top-tier U.S. biotech firm, has been a coveted dividend stock since it began regular distributions to shareholders in 2011. Highlighting this fact, the company's shares have significantly outperformed theS&P 500during this time.AMGN Total Return Level ChartCan Amgen's stock continue to deliver excess returns relative to this benchmark index? Let's delve into the drugmaker's core value proposition to find out.Image source: Getty Images.Amgen: A reversal of fortuneAmgen's shares have gotten off to a rocky start in 2024. Since the start of the year, the biotech's stock price has fallen by a hefty 8% compared to a nearly 7% gain for the S&P 500.Amgen's stock has come under pressure following a bull run in 2023. Investors bid up the biotech's stock by almost 10% last year in response to the excitement over its experimental weight loss candidate, MariTide.Early-stage data suggest MariTide might sport a dosing advantage over competing drugs in the category and, perhaps, a superior safety profile as well.If this line holds, Amgen should be able to capture a worthwhile share of the potentially $100 billion-plus weight loss drug market, possibly supercharging the drugmaker's earnings in the next decade. However, recentreadoutsfrom other obesity-care candidates have muddied the waters regarding MariTide's commercial opportunity, which appears to be one of the main culprits behind Amgen's poor start to the year.A compelling valuation and dividend yieldAmgen's stock is trading at 13.6 times forward earnings following its pullback in 2024, qualifying as bargain territory within its blue chip biotech peer group (average forward-looking price-to-earnings ratio of 17). It also
|
Wildfires Are Upending Some of the Safest Bets on Wall Street
| 2024-04-17 |
It covers the following details: (Bloomberg) -- When the Texas Panhandle went up in flames this winter, the news spread fast on Wall Street. An electric utility by the name of Xcel Energy Inc. was getting blamed for the massive blaze — a lawsuit pointed the finger at its dilapidated equipment — and this was making the company’s investors very nervous.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will La
|
Is It Too Late to Buy Energy Transfer Stock?
| 2024-04-17 |
It covers the following details: Energy Transfer(NYSE: ET)has gone on a strong run since the start of 2023. The master limited partnership (MLP) has rallied more than 25%. That's a big move for a relatively slower-growing pipeline company.TheMLP'srally likely has some investors wondering if it's too late to buy. Here's a look at whether thepipeline stockis about to run out of fuel or has plenty left in the tank.What has fueled Energy Transfer's rally?A big driver of Energy Transfer's recent run is its growing earnings. The MLP has grown its adjustedearnings before interest, taxes, depreciation, and amortization (EBITDA)from $13.1 billion in 2022 to $13.7 billion last year, about a 5% increase. It expects earnings to grow to $14.5 billion-$14.8 billion this year, a 7% to 8% year-over-year increase.Powering Energy Transfer's growth has been a combination of organic expansion and acquisitions. It invested $1.6 billion on expansion projects last year and expects to spend $2.4 billion-$2.6 billion on growth capital projects in 2024. Meanwhile, the company paid $1.5 billion to buy Lotus Midstream and $7.1 billion for fellow MLP Crestwood Equity Partners in deals that closed last year.The company's growing earnings are giving it the fuel to increase its already attractive distribution (currently yielding over 8%). The MLP aims to expand that payout by 3% to 5% annually. Its earnings growth has also helped drive down itsleverage ratio, which it expects will be toward the low end of its 4.0-4.5 times target range this year.That lower leverage recently gave two credit rating agencies the confidence to upgrade Energy Transfer'scredit ratingto BBB with a stable outlook. That higher credit rating gives it greater access to lower-cost capital. It used that access earlier this year to issue new notes and used the proceeds to redeem all its outstanding Series C and Series Dpreferred units.Is there any upside left?Energy Transfer's sharp rally last year made it the second-best-performing energy midstream company in its peer group. It delivered
|
Up Nearly 80% This Year, Does Nvidia's Stock Have Room for More?
| 2024-04-17 |
It covers the following details: After having an incredible 2023,Nvidia(NASDAQ: NVDA)hasn't slowed a bit in 2024. It's up nearly 80% this year, placing among the top-performing stocks again in back-to-back years.But because of such a tremendous start, most wonder if Nvidia has room for more upside. I think it does, but there's also a possibility it could reverse course.Nvidia is a key part of the AI technological boomNvidia has been a rockstar of a stock because of its ties to artificial intelligence (AI). Its primary product, graphics processing units (GPUs), are an integral part of training AI models due to their ability to compute in parallel. When GPUs are tasked to train an AI model, companies don't just use one or two of them. Instead, they use thousands to increase the computing power.Nvidia's flagship GPU for training AI models is the H100, and it costs around $40,000 apiece. When companies purchase these GPUs by the thousands at that price, it's a great sign for Nvidia's business.This has shown up in Nvidia's financial results in a big way, like when its revenue increased by 265% year over year to $22.1 billion in the fourth quarter of fiscal year 2024 (ending Jan. 28). With the infrastructure needed to train all of these AI models not yet built, it's a great sign for Nvidia that the demand for its product will still be high.This is the base thesis on why Nvidia's stock still has room for upside, as no one knows when there will be enough computing capacity to quench the demand for AI training. However, there's a flip side to this coin as well.Once the industry has built out the computing power it needs to satisfy the demand, Nvidia's revenue stream will dry up. Its GPUs are one-time purchases unless a client upgrades, which could be an issue. Nvidia will still be around, as it has multiple other business segments. But, with so much of its revenue coming from this AI demand wave, Nvidia will eventually face a downturn.It's unknown how long it will take to build all the computing power
|
Better "Magnificent Seven" Stock: Apple vs. Alphabet
| 2024-04-17 |
It covers the following details: Apple(NASDAQ: AAPL)andAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)are two of the world's top tech companies. They're also two of the "Magnificent Seven" stocks, which account for nearly 30% of theS&P 500's market capitalization.But this year, Apple's stock declined 9% as investors fretted over its competitive, macro, and regulatory challenges. Alphabet's stock advanced 14% even as its advertising business cooled off and it suffered a major setback in the AI race. Will Alphabet continue to shake off the bears and outperform Apple this year?Image source: Getty Images.Why are investors giving up on Apple?In fiscal 2023 (which ended last September), Apple's revenue declined 3% as its earnings per share (EPS) stayed nearly flat. Its iPhone sales -- which accounted for over half of its top line -- fell 2% as the 5G upgrade cycle ended, macro headwinds curbed consumer spending, and it grappled with currency headwinds. Mac sales plunged 27% amid the personal computing market's recent decline. Its sales of iPads, wearables, home products, and accessories also dipped.Apple's services revenue -- which accounted for over a fifth of its top line -- rose 9% for the year as it locked in more than 1 billion paid subscribers across its ecosystem, but that growth couldn't offset the weakness of its hardware businesses.For fiscal 2024, analysts expect Apple's revenue and earnings to only rise 1% and 7%, respectively, as its hardware business grows at a sluggish pace. But those estimates could still be too optimistic in light of Apple's recent challenges.According to Counterpoint Research, Apple's iPhone sales dropped 24% year over year in China in the first six weeks of calendar 2024 as it ceded the market to aggressive domestic competitors like Huawei. The Vision Pro also remains a pricey niche gadget for early adopters, and it recently scrapped its electric vehicle plans after pouring billions of dollars into the project over the past decade.On the regulatory front, Europe's antitrust regulators
|
Stock Market Today: Stocks lower as Treasury yield spike challenges markets
| 2024-04-17 |
It covers the following details: Updated at 5:50 PM EDT by Rob LenihanStocks finished lower Wednesday for the third day in a row as some of the biggest tech names ended the session in the red.The Dow Jones Industrial Average slipped 45 points or 0.12%, to 37,753, while the S&P 500 lost 0.58% to 5,022.21 and the tech-heavy Nasdaq fell 1.15% to 15,683.37.Adam Turnquist, chief technical strategist for LPL Financial, said that the S&P 500 is experiencing its first real bout of volatility this year."The April showers — bringing a 3.9% decline thus far — have started to create some technical damage,” he said. “The index recently violated its shorter-term uptrend and its 20- and 50-day moving average (dma), leaving the 5,000-point milestone as the next major area of downside support.”Turnquist said that while shorter-term breadth appears oversold, as nearly half of the index registered new 4-week lows this week, longer-term breadth metrics have held up well.“Nearly 70% of S&P 500 constituents remain above their 200-dma,” he said. “Moreover, cyclical/offensive sectors are leading the way, with financials, energy, industrials, technology, and materials reporting the highest breadth readings.""The lack of major damage to longer-term breadth across the offensive sectors suggests bullish leadership is still on stable ground despite the recent shakeout,” Turnquist added.Updated at 12:19 PM EDTStocks slippingA back-up in Treasury bond yields isn't helping stocks heading into the afternoon session, with the S&P 500 down 24 points, or 0.45%, and the Nasdaq off 130 points, or 0.82%.Benchmark 10-year note yields have eased to 4.608%, with 2-yearn notes dipping below 4.94%, despite the ongoing re-set of Federal Reserve rate cut forecasts.
|
2 Top Bargain Stocks Ready for a Bull Run
| 2024-04-17 |
It covers the following details: Many stocks with an interest in artificial intelligence (AI) have soared recently.Nvidiastock more than tripled over the last year, whileMicrosoftshares gained 45%, easily outpacing theS&P 500index's 22% gain over the same period.But the AI boom didn't light a fire under every related stock, and you can still find some great companies with undervalued stocks in the AI corner of Wall Street.Two of these tempting AI picks are data warehousing specialistSnowflake(NYSE: SNOW)and process automation expertUiPath(NYSE: PATH). These stocks have underperformedthe S&P 500over the last year and have endured price drops of more than 20% year to date.That said, both companies should enjoy robust business growth in the ongoing AI frenzy. Starting from today's modest share prices, the stocks look ready to go on a bull run. Let me show you what I mean.AI-automated business growthUiPath merges AI with automation to streamline enterprise processes. Their platform uses AI to analyze and mimic human interactions with digital systems, providing businesses with the tools to automate tasks with AI-driven precision. This integration makes UiPath a unique service provider in AI-powered business automation, also known as robotic process automation (RPA).The company's software robots are not chunks of automated hardware but software programs that can automate jobs people used to do. They're often called "bots" in the industry, but that's not UiPath's preferred terminology.These computer applications work inside existing computer systems. They help businesses by doing repetitive tasks, like filling out forms or updating records, saving time and reducing mistakes. UiPath's software is deeply integrated with common business platforms, enhancing its ability to deliver effective RPA solutions across various industries and hyper-specific client needs.You'd think an AI expert like this would see a soaring stock price in 2024. But UiPath's stock has only gained 20% in 52 weeks, including a 22% drop since New Year's. And it's down 77% from the all-time highs of mid-2021, just before the inflation crisis drove investors away from growth
|
Short Squeeze Fears Grip Tin as LME Says It’s Watching Market
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Supply ruptures from Southeast Asia to Africa. The rise of artificial intelligence. A “big bull” with a dominant position. This potent cocktail has put an often-overlooked metal, tin, at risk of a short squeeze after a price spike this month.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will Last After Attack on IsraelWhat If Fed Rate Hikes Are Actually Sp
|
2 Artificial Intelligence (AI) Stocks That Could Go Parabolic
| 2024-04-17 |
It covers the following details: When you look at the double- and triple-digit gains artificial intelligence (AI) stocks have posted in recent times, you may think the opportunity to invest in them is over. But it's important to remember that we're in the early days of the AI growth story. Only about 16% of companies mentioned AI in last year's earnings calls, according to Statista, implying there's plenty of room for companies serving the AI market to win new customers and increase revenue. And speaking of the market, it's expected to surpass $1 trillion by the decade's end.All this means that many of today's AI stocks -- whether they've climbed or not in recent months or years -- have plenty of potential to make major advances in the future. Let's check out two that have what it takes to go parabolic.Image source: Getty Images.1. IntelIntel(NASDAQ: INTC)missed out on the initial AI boom as the chipmaker fell behind in this high-growth market. Known for its central processing units (CPUs), Intel is still the leader in powering personal computers. However, a slowdown in PC demand in recent times represented yet another headwind for the company and the stock.Things are changing quickly, though, thanks to Intel's determination to become a force in the AI market. Late last year, the company released a portfolio of new AI products and just recently announced the upcoming release of its Gaudi 3 AI accelerator -- one that can even beat market giant Nvidia's top chip when used on certainlarge language models. Intel didn't provide a price range for the Gaudi 3, but the announcement did imply it's considerably cheaper than Nvidia's H100.Many companies launching AI products may like this combination of solid performance and lower price, meaning Intel could start carving out more and more market share.Meanwhile, Intel is also working toward its goal of becoming the No. 2 chip producer by 2030 by opening its manufacturing network to others. The demand for AI chips and the U.S.'s interest in becoming a player in the foundry business could help put this effort on the road to success.Trading for 26xforward earnings estimates, Intel looks like a very reasonable buy right now, considering these two revenue drivers could supercharge earnings --
|
3 Reasons Warren Buffett Might Love Chipotle Stock, and 1 Reason He'd Avoid It Like the Plague
| 2024-04-17 |
It covers the following details: Warren Buffett is regarded as the greatest capital allocator ever. His track record runningBerkshire Hathawayhas made him a legend. But he missed out on a massive winner.It might not be a business operating at the cutting edge of artificial intelligence (AI), butChipotle Mexican Grill(NYSE: CMG)has been a fantastic investment. In the past five years, its shares have skyrocketed 315%, a gain that crushes theNasdaq Composite.The Oracle of Omaha may or may not have ever had has his eye on this booming company. But here are three reasons he might love this toprestaurant stock, and one obvious reason he might avoid it like the plague.Building a strong brandLook through Berkshire's holdings, and you'll notice companies with powerful brands.Apple,American Express, andCoca-Colaare top Buffett positions.Chipotle might not be on quite the same level as those industry leaders, but one can't deny that the brand is well-known in the cutthroat restaurant sector. This business singlehandedly pioneered the fast-casual food category -- so much so that other restaurant concepts with different cuisines exist all over the country that are trying to emulate what Chipotle has accomplished. The company has roughly 3,500 stores, which adds to its wide reach and brand exposure.According toPiper Sandler's Spring 2024 "Taking Stock With Teens"survey, Chipotle is the third-most-popular food brand among teenagers. That's up from No. 4 in the fall of 2023.Putting the customer firstBusinesses that prioritize their customers perform exceedingly well.Amazon, a small Berkshire holding, embodies this philosophy. I think Chipotle is a company that does this, too.Over the past several years, the company has been focused on bolstering its digital and technological capabilities. Chipotle has a thriving rewards program that facilitates digital ordering. Online orders represented 36% of overall sales in Q4.Moreover, the business is aggressively building new stores with Chipotlanes, which are drive-through locations. This increases accessibility and convenience for hungry customers -- a move that improves the
|
Bank of America CEO Brian Moynihan thinks Wall Street is Fed watching way too much: ‘They don’t have the power to decide what the facts are’
| 2024-04-17 |
It covers the following details: While analysts may be hankering after hints from Fed chairman Jerome Powell on his next move,Bank of AmericaCEO Brian Moynihan is looking elsewhere to gauge the economic temperature.Wall Street has been waiting for months with bated breath to see when—or even if—Powell and his colleagues decide to cut the base rate, currently at a two-decade high.Earlier this year, experts who were fairly confident theFed would make a number of cutsdown from the 5.25% to 5.5% bracket are nowbeginning to questionwhether a reductionwill happen at all this year.But Moynihan—who leads a team that handled $25 billion in flows of assets under management in Q1 2024—isn't waiting for a cue from Powellto make decisions.He says he's looking at the data to decide how well the economy's doing, which doesn't fall under the Fed's influence.Speaking toCNBC's'Closing Bell'on Tuesday, Moynihan said he believes analysts are "Fed watching way too much right now."He explained the Fed had put a"huge constraint" on economic growthsince the fiscal stimulus rolled out to push the economy through the pandemic, but that a slowdown in activity had taken longer than Fed experts had predicted.A Bank of America research note released Monday expects the Fed to start cutting rates from December withinflation staying "stubborn"in the near term."There is high uncertainty regarding what the Fed can do," wrote Carlos Capistran, David Hauner and Claudio Irigoyen."Two, one or zero cuts are on the table for this year, and even a hike does not have zero probability although it is unlikely, in our view. It all depends on how economic activity, the labor market and inflation behave in the following months."Such experts, Moynihan added, believe itwill take up to four yearsto "wind out of inflation"—so while the Fed may have levers at their disposal to wrangle down inflation, they cannot control every aspect."While the Fed has omnipotent power to make the decision, they don’t have the power to decide what the facts are," Moynihan added.Like hiscounterpart at JPMorgan Chase, Jamie Dimon, Moynihan said his company will
|
2 Artificial Intelligence (AI) Stocks to Buy Like There's No Tomorrow
| 2024-04-17 |
It covers the following details: Artificial intelligence (AI) investing is a massive opportunity, as there are many ways to take advantage of this trend. With multiple investment opportunities, you don't have to worry about picking between a handful of companies. The ability to be selective is key, as there are some AI companies I wouldn't touch with a 10-foot pole.But there are two AI stocks on sale right now that I think investors should take advantage of and buy like there is no tomorrow.Snowflake(NYSE: SNOW)andUiPath(NYSE: PATH)are two that I believe are attractively priced and play a critical role in the implementation of AI technology.SnowflakeTo make the best AI models possible, you need data. Collecting and storing that data can be problematic as it may be in unstructured formats, which can take up a lot of storage space. However, Snowflake's data cloud software gives its users all the tools they need to collect, store, process, and utilize data efficiently.This makes Snowflake a crucial product when developing a proprietary AI model suited for a particular business.Snowflake is already a sizable platform and brought in $738 million in product revenue during the fourth quarter of fiscal year 2024 (ending Jan. 31), up 33% year over year. It's also expected to grow more throughout this year, as management guided for around 22% product revenue growth during FY 2025. Additionally, Snowflake's CEO announced his sudden retirement during the quarterly earnings report, sending the stock down nearly 20% the following day.This is an overreaction, as new CEO Sridhar Ramaswamy helped lead the advertising division atAlphabet'sGoogle from a few billion in annual revenue to more than $100 billion. Ramaswamy is the perfect man for the job, as he has the blueprint to take Snowflake from a company of a similar size to a much larger company.I think right now is a great time to take advantage of Snowflake stock's pessimism, and investors should take the next opportunity to buy some Snowflake shares thanks to the sell-off.UiPathUiPath is more of an AI application investment. Its primary product is robotic process automation (RPA) software, which isn't
|
Stocks decline as interest rate uncertainty, earnings weigh
| 2024-04-17 |
It covers the following details: By Chuck MikolajczakNEW YORK (Reuters) -U.S. stocks fell in choppy trading on Wednesday as investors assessed the Federal Reserve's interest rate stance and a batch of soft earnings early in the financial reporting season.Travelers tumbled 7.41% and was among the biggest drags on the S&P 500 and largest on the Dow Industrials after the insurance giant missed Wall Street expectations for first-quarter profit.Also weighing on the benchmark S&P index after quarterly results were Prologis, with the warehouse-focused real estate investment trust dropping 7.19%, and Abbott Laboratories, which fell 3.03% after topping quarterly estimates but disappointing on its annual forecast.After a rally in the last two months of 2023 that extended into the first quarter, equities have struggled with the S&P 500 registering its fourth straight session of declines. The index is on pace for its third straight weekly loss as investors have dialed back expectations for the timing and size of the Fed's rate cuts.On Tuesday, U.S. central bank officials including Fed Chair Jerome Powell backed away from providing guidance on when rates may be cut, saying instead that monetary policy needs to be restrictive for longer."The markets are dealing with a couple things - inflation is hotter than most expect, rate cut expectations are coming down and we've had a ramp higher in geopolitical tensions, particularly out of the Middle East," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan."It's just an excuse for traders to kind of move to the sidelines and markets to kind of take a breath after a really, really strong five months of gains."The Dow Jones Industrial Average fell 45.66 points, or 0.12%, to 37,753.31, the S&P 500 lost 29.20 points, or 0.58%, to 5,022.21 and the Nasdaq Composite lost 181.88 points, or 1.15%, to 15,683.37.The four-session S&P 500 sell-off is the
|
Billionaire Warren Buffett Recently Cut This Stock From Berkshire Hathaway's Portfolio. It Just Dropped 53% In 1 Day. Here's What Investors Need to Know.
| 2024-04-17 |
It covers the following details: Globe Life(NYSE: GL)stock plummeted by more than 53% in a single day last week after short-seller Fuzzy Panda Research accused the life insurance company of fraud. The claims piled onto the already struggling stock, which had previously been a longtime holding of Warren Buffett's conglomerate,Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B).If you're thinking about buying the dip in the stock, there are some things you'll want to know.Image source: Getty Images.Globe Life's troubles began last yearGlobe Life was one of Berkshire Hathaway's longest-held investments, having been part of the conglomerate's portfolio for more than two decades. Berkshire held Globe Life through several difficult economic periods, including the COVID-19 pandemic, which put tremendous pressure on life insurers by elevating claims costs.Buffett examines amanagement team'scharacter and trustworthiness when investing. Buffett and his team have an excellent track record of evaluating management, which is a big reason for the conglomerate's long-term success. When Globe Life became the subject of several lawsuits accusing it of misconduct, Berkshire pulled the plug on its investment.Last year, two Globe Life subsidiaries, American Income Life Insurance Co. and Arias Agencies, faced a lawsuit accusing them of inappropriate workplace conduct; this included rampant drug use, sexual abuse, and degradation of agents who didn't hit sales targets.Globe Life's struggles continued when a former executive claimed he was fired for blowing the whistle on "potentially illegal" sales practices at the subsidiary. It appears that the accusations were why Berkshire sold its stake in the insurer last year.Here's what short seller Fuzzy Panda had to say about the insurerFast-forward to this year, and Globe Life's troubles have gone from bad to worse. On March 6, the U.S. Department of Justice issued subpoenas to Globe Life and American Income Life. The subpoena is part of an investigation into allegations of fraud and misconduct at the (renamed) Arias Organization, now one of American Income Life's agencies.
|
3 No-Brainer High-Yield Dividend Stocks to Buy Right Now for Less Than $1,000
| 2024-04-17 |
It covers the following details: Investing in high-yielding dividend stocks can be a great way to start generating passive income. While the average dividend yield is relatively low today (theS&P 500's 1.4% yield isn't that far above its historical low of 1.1%), many companies offer much higher dividend yields.For example, thereal estate investment trust (REIT)sector is ripe withhigh-yielding dividend stocks.Realty Income(NYSE: O),Prologis(NYSE: PLD), andCamden Property Trust(NYSE: CPT)stand out as three of the top options for income-seeking investors. Their bigger payouts enable investors to produce more income from every dollar they invest, maximizing their income production.Built to produce incomeRealty Income certainly lives up to its name. The diversified REIT has paid 646 consecutivemonthly dividendsthroughout its operating history. It has increased its payment 124 times since its public market listing in 1994, growing the dividend at a 4.3% compound annual rate.The REIT currently offers a dividend yield approaching 6%. To put that into perspective, an investor can generate about $6 in annual dividend income for every $100 they invest in its stock. That compares to about $1.40 in annual dividend income from a similar investment in an S&P 500 index fund.That already higher payout should continue heading higher in the future. Realty Income expects to grow its adjustedfunds from operations (FFO)by 4% to 5% per share over the long term, driven by rent growth and new income-generating property investments.The company has a long growth runway, which it routinely extends by adding new growth verticals. Over the past year, it has added data centers, gaming properties, and additional European countries to its portfolio, opening the doors to $6.6 trillion of potential new investment opportunities.A dividend growth juggernautPrologis currently offers a dividend yielding around 3.3%, more than double that of the S&P 500. The leadingindustrial REITstands out for its ability to grow its payout at an above-average rate. Over the last five years, Prologis has
|
Better Magnificent Seven Stock: Nvidia vs. Meta Platforms
| 2024-04-17 |
It covers the following details: Nvidia(NASDAQ: NVDA)andMeta Platforms(NASDAQ: META)have been the two best-performing "Magnificent Seven" stocks over the past 12 months. Nvidia's stock surged more than 230% as the explosive growth of the AI market drove more companies to upgrade their data center GPUs to process complex AI tasks. Meanwhile, Meta's stock rallied nearly 140% as the growth of its advertising business accelerated again.But should investors still buy either of these high-growth tech stocks today?Image source: Getty Images.Nvidia is still firing on all cylindersNvidia once generated most of its revenue by selling discrete GPUs for gaming PCs. But over the past few years, the chipmaker rolled out higher-end GPUs for accelerating machine learning and AI tasks at data centers.That move gave it a firm foothold in the growing AI market, and its sales of data center GPUs soared and eclipsed it sales of gaming GPUs. It generated 78% of its revenue in fiscal 2024 (which ended this January) from data center GPUs.Its revenue soared 126% that year as its adjusted earnings per share (EPS) jumped 288%. That marked an astonishing acceleration from its flat revenue growth and 25% adjusted EPS decline in fiscal 2023.Most of its growth was driven by the rising popularity of OpenAI's ChatGPT and other generative AI platforms, which prompted more companies to buy its data center GPUs to upgrade their own AI capabilities. Its sales of gaming GPUs also stabilized in the second half of the year as the PC market recovered.In fiscal 2025, analysts expect Nvidia's revenue and adjusted EPS to grow 81% and 89%, respectively, as the AI market continues to expand. Based on those expectations, Nvidia's stock still looks reasonably valued at 37 times forward earnings. Its smaller rivalAMD(NASDAQ: AMD), which is growing at a slower rate, trades at 49 times forward earnings.Nvidia remains the top seller of shovels and picks for this AI gold rush, but investors shouldn't ignore the longer-term
|
Top US markets regulator probing insider trading guardrails, official says
| 2024-04-17 |
It covers the following details: By Chris PrenticeNEW YORK (Reuters) -The U.S. Securities and Exchange Commission is scrutinizing whether investment advisers and other firms have strong enough policies to ensure nonpublic information is not misused to gain an illegal edge in trading, a top official told Reuters.The SEC is looking to crack down on ineffective policies and procedures as part of broader insider trading scrutiny, Gurbir Grewal, the SEC's enforcement director, said in a recent interview. Under Democratic leadership, the agency has sought to charge more individuals for misconduct and pushed for higher penalties when negotiating with companies to resolve investigations into compliance violations and misconduct."The frustration with insider trading is that sometimes the threat of jail and penalties don't prevent it," Grewal said. "So we have to emphasize the tools we have and the firms need to tighten up their policies to prevent abuse."The SEC's efforts are aimed not just at insider trading in equity markets, but also potential use of complex financial tools including swaps or derivatives to benefit from non-public information or to mask misconduct, he said.Grewal declined to say whether the agency has or would launch an enforcement sweep to target the issue.The SEC has pursued some cases seen by many as novel under Grewal's leadership.The agency this month scored a victory in a "shadow trading" case when a jury found that a former pharmaceutical company executive violated civil insider-trading laws by betting on another company's stock after learning of the acquisition of his own company, Medivation Inc.That case has already prompted companies to begin checking their policies to meet a broader standard to guard against misuse of nonpublic information, said Perrie Weiner, a securities litigation lawyer with Baker & McKenzie."The SEC is going to be looking for policies that go beyond simply saying that you're not allowed to trade on material nonpublic insider information. They're going to be looking for policies that prohibit trading in any other company to which the information might apply."The efforts will apply not just to public companies but also to hedge funds and other firms that may gain access to nonpublic information through advisory work, Weiner said.The regulator has also been targeting violations of basic rules and policies at financial firms. Earlier this year, Morgan Stanley and a former executive agreed to
|
Why the 2024 stock market still looks like 2023: Morning Brief
| 2024-04-17 |
It covers the following details: This is The Takeaway from today's Morning Brief, which you cansign upto receive in your inbox every morning along with:The chart of the dayWhat we're watchingWhat we're readingEconomic data releases and earningsWith roughly one-third of the year gone by, investors may notice something strange about 2024: It looks a lot like 2023."The rotation trade has just gotten a lot more complicated," wrote RBC strategists led by Lori Calvasina in a note to clients this week."One of the best questions we got [last] week was what the hot inflation data means for the leadership rotation in the US equity market that seemed like it was finally getting underway. Our answer: generally we think higher inflation and fears over higher interest rates are good for the mega cap growth stocks."One of the biggest narratives for investors entering 2024 is thatlast year's rally would broaden.And this hasn't been entirely untrue.Energy was thebest-performing S&P 500 sectorin March and the second-best sector in the first quarter.Moreover, the S&P 500's roughly 10% gain in the first quarter was outpaced by five of the 11 sectors in the index, illustrating a broader base of leadership than one focused on Technology (XLK) and Communications Services (XLC).But, like 2023, concentration in a handful of megacap tech companies has played a big part in pushing markets higher.Even as the "Magnificent" group of market leadersdwindled from seven to four and new superstar stocks rose, the percentage of the S&P 500 comprised by just 10 stocks reached new highs.As data from RBC Capital Markets shows, the top 10 stocks in the S&P 500 today now comprise an even higher percentage of the index's market cap than the peak reached back in 2021 and during the early part of last year's rally.The 10 biggest names in the S&P 500 now account for more than a third of the index's value. (Source: RBC Capital Markets)Going forward, RBC notes, "crosscurrents for the old leadership, much like the broader market itself, are
|
Mortgage rates today, April 17, 2024: A strong jobs market leads to higher rates
| 2024-04-17 |
It covers the following details: These are today's mortgage rates. Rates shouldn't plummet in the near future, so you may want to buy a house now if you're ready. Lock in your rate today.
|
Column: With his Truth Social stock, Trump may be laughing all the way to the bank — but his investors have reason to weep
| 2024-04-17 |
It covers the following details: Donald Trump: Who are the losers from his Truth Social venture?(Alex Brandon / Associated Press)With their life savings, childrens' college funds and their own retirement prospects at stake, most people probably view investing in stocks as a serious business. Now and then, however, the markets produce comedy gold.Hello, Trump Media & Technology Group.The owner of Truth Social, a social media platform exclusively hitched to Donald Trump, staged an initial public offering March 26 amid a torrent of speculation over how many billions the IPO would produce for Trump himself. In the event, the figure was a paper gain of about $5 billion for him, virtually pure profit.It's a scam. Just like everything he's ever been involved in, it's a con.Barry Diller on Trump and Trump MediaThe cult of Trump had sent the shares soaring as high as $79.38 on that first day, valuing the company at about $9.5 billion. By the end of the day it had settled back to $57.99. Since then, it has mostly been on the schneid, falling steadily.As I write, midway in the trading day Tuesday, the shares are quoted at $22.80, down more than 14% on the day. That brings the shares' slide since they peaked at $79.38 on March 26 to about 70.2%.Trump, who loves hyperbole, might revel in a three-week plunge that could be some sort of a record. Whether he would call it "beautiful," one of his favorite superlatives, is another question.The slide has pared the market value of Trump Media by more than $6 billion from its peak. Trump is still sitting on a paper holding worth more than $2 billion, but his outside investors, many of whom are small investors who bought at or near the top, have been been taken to the abattoir."I think they're dopes," the veteran entertainment executiveBarry Diller said of Trump Media's investors during a CNBC appearance on April 4.That's not to say, given the stock's volatility, that it might not recover and end up in the green for the day, though whether it can recover the full 69.8% loss, even over time, is subject
|
1 Magnificent Stock That's Skyrocketed Nearly 500%: Don't Buy and Hold Until You Know These 3 Risks
| 2024-04-17 |
It covers the following details: After a disappointing 2022 that rattled markets, theNasdaq Compositeindexroared back and now is in record territory. This bullishness lifted some stocks to new heights.Just look atMeta Platforms(NASDAQ: META). Since the start of November 2022, shares skyrocketed more than 450%. A favorable market environment, coupled with strong fundamentals, are propelling this business.Meta has been one of the best performers in recent times. But before you buy and hold this magnificent social media stock, you need to know these three risks.Metaverse uncertaintyOne area that presents a sizable risk is the company's Reality Labs division, which houses itsmetaverse products and services. This is viewed by critics as a pet project for founder and CEO Mark Zuckerberg. And its ultimate result is far from certain.Meta's Reality Labs division reported a $16 billion operating loss in 2023, after losing $14 billion the year before. These massive losses should continue because Zuckerberg will keep investing aggressively in this segment. His goal is to introduce what he believes could be the next major computing platform after smartphones.Investors should probably give Zuckerberg the benefit of the doubt here, as what he's done over the past couple of decades building one of the world's most valuable enterprises is truly remarkable. But it's best to watch developments with the metaverse closely in the years ahead.Regulatory headachesLike many of its big tech peers, Meta seems to always be battling with regulators, mainly in the U.S. and in the European Union. A business of this size that has demonstrated its power and influence and that collects mountains of data can undoubtedly draw the attention of lawmakers.Meta paid sizable fines in the past. And it typically always relates to how the business handles and protects its users' data. Ongoing regulatory headaches could distract the management team and potentially alter Meta's operations. And they could limit the company's ability to acquire other businesses that might strengthen its competitive position.There's a positive take on this, though. And that's the simple fact that if a business finds regulatory burdens to be one of its biggest risk factors, then it clearly shows how dominant it has become. This all just points to how successful
|
Here's a Big Reason Why the S&P 500 Index Keeps Winning
| 2024-04-17 |
It covers the following details: Whitney Tilson knows a few things about investing. He has followedWarren Buffettfor decades, managed a hedge fund, and written various newsletters and emails for investors, often focused on value investing.I subscribe to one of his emails, and a point he made in it a few months ago made a big impression on me, as I hadn't thought of it before. He offered an excellent reason why theS&P 500index keeps winning. That reason can help each of us invest better, too.Image source: Getty Images.What's the S&P 500 and how is it winning?The S&P 500 index is a collection of about 500 of America's biggest and best companies. Together, these companies represent about 80% of the entire U.S. stock market's value, even though there are thousands of publicly traded U.S. companies. Here are the index's recent top holdings:CompanyWeight in IndexMicrosoft7.3%Apple5.8%Nvidia5.1%Amazon4%Alphabet4%Meta Platforms2.6%Berkshire Hathaway1.7%Broadcom1.4%Eli Lilly1.4%JPMorgan Chase1.3%Data source: Slickcharts.com.One of the virtues of broad-market index funds is that indexes such as the S&P 500 tend to outperform non-index mutual funds. For example, according to the folks at S&P Dow Jones Indices, over the past 15 years, the S&P 500 index outperformed a whopping 88% of managed large-cap mutual funds (that is, funds with managers who actively pick and choose investments, deciding when to buy and/or sell them).Why is the S&P 500 index winning?So why does the S&P 500 index, and lots of index funds that track it, tend to outperform funds where well-paid professionals are trying hard to beat it? A commonly cited reason is simply: fees. Fees can make a huge difference in your long-term returns.Here's another reason the S&P 500 index keeps winning, offered by Tilson: It hangs on to its winners!Indexes such as
|
Cathie Wood Believes This Fast-Paced Artificial Intelligence (AI) Stock Can Skyrocket 1,138%, but Congress' Most Active Stock Trader Is Selling Shares
| 2024-04-17 |
It covers the following details: Nikola Tesla was born during a lightning storm. He later earned the nickname "the wizard of lightning" because of his electrical inventions. It probably shouldn't be surprising that the company named after him,Tesla(NASDAQ: TSLA), is the investing equivalent of a lightning rod, attracting diehard supporters and adamant opponents.Tesla's fans and foes span a wide spectrum. Ark Invest founder Cathie Wood believes this fast-pacedartificial intelligence (AI)stock can skyrocket by 1,138%. However, Congress's most active stock trader is selling shares.Wood's favorite AI stockWood likes several AI stocks. There's no doubt whatsoever, though, that Tesla is her favorite. The electric vehicle (EV) maker ranks as the top holding in Wood's flagshipArk Innovation ETFand theArk Autonomous Technology & Robotics ETF,Nearly one year ago, Ark Invest set a price target of $2,000 for Tesla by 2027. Wood's team projected explosive growth in EV sales. More importantly, they predicted that autonomous ride-hailing would become an even bigger market opportunity for the company.Although Tesla's share price soared nearly 80% in the months after Ark Invest's bullish update, those gains have evaporated. Tesla is now trading nearly exactly where it did at this point last year.Wood remains a cheerleader for the company, though. Ark Invest has bought more shares of Tesla. In a recent interview with CNBC, she stood behind the $2,000 target, saying, "Now is not the time to run for the hills."One congressman is voting with his pocketbook against TeslaSpeaking of hills, a notable investor on Capitol Hill isn't so enthusiastic about Tesla. Rep. Rho Khanna (D-Calif.) is by far themost active trader in the U.S. Congress. In 2023, he made a whopping 4,253 trades -- more than 2.3 times greater than the runner-up, Rep. Michael McCaul (R-Texas).Khanna bought Tesla shares throughout much of 2023. However, he began
|
2 Superb Artificial Intelligence (AI) Growth Stocks to Buy Before They Soar 63% and 70%, According to Select Wall Street Analysts
| 2024-04-17 |
It covers the following details: The past year or so has marked a coming-of-age story for artificial intelligence (AI). Generative AI's ability to generate original content and streamline time-consuming processes represents a potential step change in how business gets done. The opportunity to profit from the productivity gains made possible by these next-generation algorithms has many companies scrambling to determine how best to integrate them into their day-to-day operations.Despite generating market-beating performances in 2023, some market watchers believe there's more to come for AI stocks. In fact, a pair of Wall Street analysts suggest two still have potential upside of 63% and 70% over the coming year.Image source: Getty Images.Artificial intelligence buy No. 1: Nvidia -- 63% implied upsideIf there is one stock that exemplifies the potential represented by recent advancements in AI,Nvidia(NASDAQ: NVDA)would certainly be in the running. Its graphics processing units (GPUs) use parallel processing, the ability to process a magnitude of mathematical calculations simultaneously by breaking the data into smaller chunks to make it more manageable. This not only revolutionized gaming but also enabled the evolution of AI.In the company's fiscal 2024 (ended Jan. 28), Nvidia delivered revenue that grew 126% year over year to roughly $61 billion, while its diluted earnings per share (EPS) soared 586% to $11.93. For its fiscal 2025 first quarter (ends April 30), Nvidia is guiding for record revenue of $24 billion, an increase of 234% year over year. Management left no doubt that the accelerating demand forgenerative AIwas behind the surge.Despite the stock rising 488% since the start of 2023 (as of this writing), Rosenblatt analyst Hans Mosesmann, the self-professed "most bullish analyst on Nvidia," has a buy rating and a Street-high price target of $1,400 on the stock. That represents potential upside of 63% compared to Monday's closing price. Mosesmann said, "The shift to accelerated compute away from general compute is reaching a tipping point, and a disruptive new app
|
Boeing Stock Has 27% Upside, According to 1 Wall Street Analyst
| 2024-04-17 |
It covers the following details: Because it suspended its dividend in 2020,Boeing(NYSE: BA)stock isn't a candidate for inclusion on theDogs of the DOWlist of beaten-down dividend payers. But there's no doubt Boeing has been a "dog" of a stock lately.Hurt by quality concerns, slower production, whistleblower claims, and a recent management shakeup, Boeing stock trades down over 15% in the past year while the rest oftheS&P 500has surged more than 22%.But RBC Capital Markets isn't ready to throw in the towel on Boeing stock -- not entirely.Is Boeing stock a buy?Citing expected slower deliveries of 737 aircraft going forward, RBC analyst Ken Herbert lowered his 12-month price target on Boeing to $215 a share, StreetInsider reported Tuesday. That implies a 26% upside from the current price. Herbert also stuck by his prediction that Boeing will "outperform" the S&P 500 over the next year.Key to Herbert's thesis is the notion that Boeing can replace outgoing boss David Calhoun with a new CEO who will rise to the challenge and eventually become the leader who fixed Boeing. But that's easier said than done.I won't deny that Boeing has things going for it, and it offers advantages a new CEO could find appealing. There are 5,568 Boeing planes on order -- sales the new CEO won't even have to work for! Boeing also has $4.4 billion in annual free cash flow -- a number that could more than double over the next three years, as airline travel continues growing after pandemic lockdowns.But Boeing also has significant flaws. Its business model of outsourcing plane parts to third parties has blown up in its face and contributed to the problems with product quality that plague Boeing today. Bringing this production back in-house is doable, but it won't be cheap. And a Boeing stock burdened with $47 billion in long-term debt will be hard-pressed to pay for it.Buying Boeing stock at 57 times earnings is an expensive bet that Boeing will succeed. I'm not as sure as Herbert seems to be.Should you invest $1
|
Alphabet Stock Has 12% Upside, According to 1 Wall Street Analyst
| 2024-04-17 |
It covers the following details: A recovery in the online advertising market has excited investors and pushed share prices of Google parentAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)to new highs over the last year. The stock is up 42% over the last 12 months, and analysts atStifel Financialstill see more upside.The investment bank maintained a buy rating on Alphabet shares but raised itsprice targetfrom $154 to $174. That's an 11% upside over the next 12 months from the current share price.Why buy Alphabet stockIn December, the tech giant launched its new Gemini artificial intelligence (AI) large language model, which will lay the foundation for new AI services across Google Search, YouTube, and other products over the next several years. Wall Street is largely bullish on Alphabet's prospects because of its massive cash resources, years of investment in AI technology, and the potential for AI-powered Search to attract more users -- and therefore, grow advertising revenue.However, new technologies could present new challenges for Alphabet.Microsoft's Bing beat Google to the punch last year by rolling out its own search features usinggenerative AI. Competition concerns explain why Alphabet stock trades at a modest price-to-earnings ratio of 23 despite the company's history of double-digit percentage growth in revenue and profits.But it won't be easy to bring down the search leader. Google Search attracts over 90% of online search traffic, according to Statista. Google Search converted this overwhelming dominance into $48 billion of revenue just in the fourth quarter, accounting for 55% of Alphabet's overall revenue.The Wall Street consensus estimate pegs the company's earnings growth at 16% on an annualized basis over the long term. Stifel appears to be adjusting its price target in line with these expectations. Assuming the economy and advertising market continue to improve this year, Alphabet should report strong growth, providing the needed catalyst for the shares to reach the analyst's price target within the next year.Should you invest $1,000 in Alphabet right now?Before you buy stock in Alphabet, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Alphabet
|
Stocks set to follow 'bumpier path' forward after stellar first quarter
| 2024-04-17 |
It covers the following details: Stocks rose in what seemed like a straight line over the first three months of 2024 as the S&P 500 (^GSPC) notched itsbest first quarter return in five years.Since the start of April,it's been a different story.The S&P 500 has dropped nearly 4% this month as investor hopes that the Federal Reserve will cut rates continue to fade."We've said at the FOMC that we'll need greater confidence that inflation is moving sustainably toward 2% before it would be appropriate to ease policy,"Fed Chair Jerome Powell said Tuesday. "The recent data have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence."The 2-year Treasury yield popped following the comments, surpassing 5% for the first time since Novemberwhile stocks sunk to session lows."We continue to expect a bumpier path forward relative to the abnormally smooth first quarter ride," Truist co-CIO Keith Lerner wrote in a note to clients published late Monday.Lerner noted the S&P 500's 4% intra-year drop is still a far cry from the average 14% drawdown seen over the last forty years. And during years in which the index rose 10% during the first quarter, like 2024, Lerner noted the average maximum pullback in the S&P 500 over the balance of the year was 11% and the index did not see a decline of at least 5% during the year only three times since 1980."Indeed, periodic pullbacks are the admission price to the market," Lerner wrote. "And they always come with bad news.""We've come so far, so fast," Freedom Capital Markets chief global strategist Jay Woodstold Yahoo Finance."I don't see that next catalyst outside of individual pockets of earnings to take the market higher. And now with the rising [bond] yields again ... that broadening rally in the small caps, utilities, that story is over for now."Inflation's pathdownward has proven"bumpy,"as Powell put it earlier this month, with three straight Consumer Price Index reports showing larger price increases than consensus expectations.Mean
|
These 2 Financial Stocks Just Raised Their Dividends
| 2024-04-17 |
It covers the following details: Within a space of two weeks, a pair of the most powerful American financial companies upped their shareholder payouts. These weren't token raises, either, with the more-modest raiser of the two hiking its dividend by almost 10%.There's nothing like getting passively richer from one of our investments. Here's a closer look at the latest dividend raises from finance sector powerhousesJPMorgan Chase(NYSE: JPM)andAmerican Express(NYSE: AXP).1. JPMorgan ChaseJPMorgan Chase, one of the so-called big four U.S.banks, is a bedrock of the U.S. economy. It's a bedrock for some income investors, too, with a habit of dividend raises stretching back nearly 15 years and an above-average yield on its payout.Keeping the increase streak alive, the bank declared a quarterly distribution of $1.15 per share before unveiling its first-quarter results -- the aforementioned near-10% dividend raise.An increase of that size indicates management's confidence in its current and future fundamentals, and JPMorgan Chase's executives are justified in feeling that way. In the first quarter, the company's net revenue rose 9% year-over-year and net income increased 6%. These gains were powered by an impressive 16% rise in average loans, although deposits crawled up by only 2%.In the earnings release, the bank quoted its star chief executive officer, Jamie Dimon, as saying that its very strong capital base and "peer-leading returns provide us with the capacity and flexibility to both reinvest for growth and maintain an attractive capital-return profile, without compromising our fortress balance sheet."Note what he said about the "attractive capital-return profile." We can take that to mean: "We're going to continue raising our payout as long as we keep posting these kinds of results." The company's talented management and the favorable economy should support this.The bank's freshly increased payout will be dispensed on April 30 to shareholders of record as of April 5. At the most recent closing stock price, the new amount would yield 2.5%.2. American ExpressOutdoing JPMorgan Chase in the dividend-raise race
|
1 Stock-Split ETF That Could Turn $500 Per Month Into $1 Million, With Help From Nvidia, Microsoft, and Apple
| 2024-04-17 |
It covers the following details: Exchange-traded funds (ETFs) are a great way for investors to buy an entire portfolio of stocks without the challenge of picking individual winners and losers. ETFs usually represent a specific sector or theme in the stock market, and they are typically actively managed, which means a team of experts will adjust the portfolio as necessary.TheiShares Expanded Tech Sector ETF(NYSEMKT: IGM)manages a $4.3 billion portfolio filled with the world's leading technology stocks, including those driving the artificial intelligence (AI) boom.Image source: Getty Images.The iShares Expanded Tech Sector (IGM) ETF just completed a stock splitThe IGMETFhas generated a compound annual return of 19.7% over the last 10 years, which crushes the 12.8% annual return of theS&P 500index. It's also better than the 18.6% annual gain in theNasdaq-100technology index.The ETF soared as high as $512 per share in March, which is a large outlay for most retail investors. To solve that problem, iShares executed a 6-for-1 stock split, which increased the number of shares in circulation sixfold and reduced the price per share by a proportional amount (to around $85 as of this writing).The split doesn't change the value of the ETF or any of its underlying holdings, but it does make it accessible to a wider investor base. That spells opportunity, because IGM's momentum will likely continue thanks to tailwinds like AI. Here's how it could turn an investment of $500 per month into $1 million over the long term, thanks to top holdings likeNvidia,Microsoft, andApple.The world's top tech stocks, all in one ETFThe technology sector grows broader each year thanks to innovative companies digitizing our economy. Smartphones, semiconductors, cloud computing, streaming, cybersecurity, software, and AI are just a few subsegments under the tech umbrella.AI is particularly important right now because of its potential to make individuals and businesses more productive. AI chatbots like ChatGPT, Claude, and Gemini can generate text content, images, videos, and even computer code. The data
|
Meet the Single Best Artificial Intelligence (AI) Stock to Buy Now, According to a Wall Street Analyst
| 2024-04-17 |
It covers the following details: Last year,Morgan Stanleyanalysts led by Keith Weiss identifiedMicrosoft(NASDAQ: MSFT)as the software company best positioned to monetize generative artificial intelligence (AI) across infrastructure and applications.Weiss reiterated that opinion following a recent survey of chief information officers (CIOs), which identified Microsoft as the company most likely to gain share in generative AI over the next three years. For context, 38% of CIOs selected Microsoft, while 12% selectedAmazon, putting the company in second place.Investors should be excited about AI given the tremendous opportunity it creates. Bloomberg Intelligence believes generative AI spending could compound at 43% annually through 2032. But it would be imprudent to buy a single AI stock, even if that company is expected to be the biggest winner. It makes more sense to own a basket of AI stocks. So, investors need to ask themselves if Microsoft belongs in that basket.Microsoft is supercharging its business with artificial intelligenceMicrosoft has two major growth engines in enterprise software andcloud computing. The company not only has a strong presence in both markets, but also has been gaining share. That leaves Microsoft ideally positioned to monetize artificial intelligence (AI) across software and cloud services, and new products like Microsoft 365 Copilot and Azure OpenAI Service should help the company do just that.To elaborate, Microsoft led the enterprise software market last year, accounting for 18% of total sales, up 350 basis points from 2018, according to the International Data Corp. Its flagship productivity platform Microsoft 365 was the primary source of that success. The company is leaning into that momentum with Microsoft 365 Copilot, a generative AI assistant that automates tasks across office applications like Excel, PowerPoint, and Word.Meanwhile, Microsoft Azure ranked second in cloud infrastructure and platform services (CIPS) in the fourth quarter. It accounted for 24% of CIPS spending, up 750 basis points from 2018, according to Synergy Research Group. Product categories contributing those share gains include cybersecurity, database, and developer services, especially those related to artificial intelligence and machine learning.Going forward, Microsoft is well positioned to maintain that trend. Azure is the exclusive cloud provider to OpenAI, meaning it monetizes usage of
|
3 No-Brainer Stocks to Buy With $100 Right Now
| 2024-04-17 |
It covers the following details: Volatility and short-term unpredictability are a few of the guarantees that Wall Street offers investors. Since the green flag waved in January 2020, all three major stock indexes have oscillated between bear andbull marketson a couple of occasions.However, theDow Jones Industrial Average,S&P 500, andNasdaq Compositehave a lengthy track record of putting stock market corrections firmly in the back seat and heading higher over the long term. This practical guarantee means anytime can be the ideal time to invest.Image source: Getty Images.What's great about putting your money to work on Wall Street is that most online brokerages have completely done away with minimum deposit requirements and commission fees for common stock trades on major U.S. exchanges. For everyday investors, it means any amount of money -- even $100 -- can be the perfect amount to put to work in the stock market.If you have $100 that's ready to invest, and this is cash you're absolutely certain isn't going to be needed to pay bills or cover emergencies as they arise, the following three stocks stand out as no-brainer buys right now.PfizerThe first genius stock that's begging to be bought with $100 right now is pharmaceutical titanPfizer(NYSE: PFE).It's pretty incredible what a difference a couple of years has made to Pfizer's stock. During the early stages of the COVID-19 pandemic, the company could seemingly do no wrong. In 2022, its COVID-19 vaccine (Comirnaty) and oral treatment (Paxlovid) generated more than $56 billion in combined sales. This year, the company expects revenue from its two star COVID-19 therapies to come in at $8 billion.Though witnessing an estimated $48 billion in annual sales get wiped away in two years may be disappointing, the $8 billion in sales Pfizer anticipates collectively bringing in from Comirnaty and Paxlovid is above and beyond what the company was generating in sales when 2020 came to a close. From a sales perspective, Pfizer is much a better company now than it was three years ago.More importantly,its non-COVID product portfolio hasn't stopped growing. Despite battling the
|
Asian Stock Gauge Flirts With Erasing 2024 Gain as Worries Mount
| 2024-04-17 |
It covers the following details: (Bloomberg) -- Asia’s stock benchmark briefly erased its gain for the year, as worries about higher-for-longer interest rates and geopolitical tensions triggered losses across the region.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will Last After Attack on IsraelWhat If Fed Rate Hikes Are Actually Sparking US Economic Boom?Red Lobster Considers Bankruptcy to Deal With
|
Is Intel Stock Going to $44? 1 Wall Street Analyst Thinks So.
| 2024-04-17 |
It covers the following details: It's a bit hard to imagine now, but struggling chip companyIntel(NASDAQ: INTC)was once a darling stock in the crowded tech sector. In the not-so-distant past, however, the once-dominant company started to become overshadowed by rivals developing and producing highly competitive products. Many observers started considering Intel something of a has-been, a sentiment that lingers in more than a few investor minds today.One market professional who might seem to agree with that take isBank of AmericaSecurities analyst Vivek Arya. After all, he recently lowered his price target on Intel stock while keeping his neutral recommendation. But there's more to the story than that.Neutral but hopefulThat cut was fairly deep; in mid-April, Arya lowered his Intel price target from $50 per share to $44. Yet even at the new level the analyst is expecting some upside -- if realized, it would mean a gain of over 23% on the most recent closing share price.Intel is in the midst of a concentrated push deeper into proprietarychip making. That's because the great bulk of the world's advanced chips are contract-manufactured by an overseas company,Taiwan Semiconductor Manufacturing. Intel would like to be a major counterweight to its Asian peer, hence the buildup of itsIntel Foundrybusiness unit (and a recent change in financial reporting to reflect the division's growing prominence).At the moment, Intel Foundry continues to post deep operating losses, but Arya sounded a bullish note on that business. He wrote that the "upcoming cyclical upturn in PCs," plus a bump from artificial intelligence (AI) functionalities that will require greater processing power, could provide a decent lift for the company.Much to proveArya also highlighted some negatives, however, not least of which is the buildup of other chip-making facilities by Intel rivals. So the veteran company undoubtedly has its work cut out for it in this new era despite the huge potential for the broader chip-making industry. Today's Intel still has to convince investors it can be a solid competitor in this space; as of now, that crowd seems skeptical.Should you invest $1,000 in Intel right now?Before you buy stock in Intel,
|
End of preview. Expand
in Data Studio
README.md exists but content is empty.
- Downloads last month
- 304