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Why Comcast Stock Slid 6% on Thursday
| 2024-04-25 |
It covers the following details: Cable internet giantComcast(NASDAQ: CMCSA)stock slipped 6% through 11:11 a.m. ET Thursday despite the company reporting better than expected sales and earnings for the first quarter of 2024.Analysts had forecast thecommunications companywould earn only $0.99 per share (non-GAAP, or adjusted) on sales of $29.8 billion in Q1, but Comcast surprised to the upside with $1.04 per share in earnings and sales of $30.1 billion. Yet its stock fell. Why?Comcast's Q1 earnings reportComcast's news wasn't all good. While the company beat expectations on both the top and bottom lines, revenue still only grew about 1% year over year, and net income rose less than 1%.Still, by buying back shares (so that what net income there was, was divvied up among fewer shares), Comcast managed to grow its earnings per share 6.5%, to $0.97 according to generally accepted accounting principles (GAAP). What's more, Comcast's free cash flow for the quarter surged nearly 20%, to $4.5 billion, which was better than reported net income.Also of interest: Comcast grew its broadband internet revenue 4% -- 4 times faster than total revenue growth. And the company increased its wireless customer subscriber count by 21%, to 6.9 million subscribers.Is Comcast stock a buy?Still, the number that interests me most is Comcast's free cash flow, which grew tremendously. At $16.8 billion, FCF now outstrips trailing net income by about 9%. And valued on these cash profits, Comcast stock costs less than 9x FCF. Considering that Comcast pays its shareholders a respectable 3.1% dividend yield, it shouldn't take more than about 6% annual growth to make this stock look like a bargain.Thanks to stock buybacks, Comcast actually just grew EPS by 6.5% (and FCF nearly 20%). Were it not for the fact that Comcast carries $90 billion more debt than cash on its balance sheet, I'd probably be calling this stock a buy right now.Withthe debt
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Why Unilever Stock Jumped Higher on the Market's Down Day
| 2024-04-25 |
It covers the following details: Shares of multinational consumer-goods conglomerateUnilever(NYSE: UL)jumped higher on Thursday even though theS&P 500was markedly down. The company just reported its latest quarterly financial results, which were full of pleasant surprises. And that's why Unilever stock was up 5% as of 11 a.m. ET today.A modest uptick in consumer demandIn the first quarter of 2024, sales were up a little more than 4% year over year. That's a small increase, to be sure, but small gains are to be expected with a company as big as Unilever. And investors were nevertheless encouraged because the company's salesvolumeincreased by 2.2%.For a matureconsumer staples companysuch as this, there are three usual paths to growth. Companies can increase sales volume or raise prices -- or do both. Unilever mostly grew thanks to volume increases alone in the first quarter, which is the best path of the three.By comparison, many of Unilever's peers are struggling with sales volume right now. For example,Procter & Gamblereported financial results last week, and its sales volume was flat year over year. Investors are encouraged with Unilever's relatively strong results compared to its sector.Performing particularly well for Unilever were products in the beauty and well-being category as well as sales in Latin America. And these strengths pushed financial results higher, exciting investors.A good start to a multiyear planUnilever is at the outset of a multiyear journey to invest in better growth and better profits. And it's taking the task seriously. It's separating its ice cream business into its own company, and it's looking for other ways to boost its profit margins.Unilever stock certainly isn't an investment idea with the highest upside. But its encouraging start to 2024 coupled with its long-term focus on profitable growth are things to consider with the stock trading atan unusually low valuation right now.Should you invest $1,000 in Unilever right now?Before you buy stock in Unilever, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now…
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Wolverine’s Work Division Promotes Scott Schoessel to Top Marketing Role
| 2024-04-25 |
It covers the following details: Wolverine Worldwide has promotedScott Schoesselto chief marketing officer of its Work Group division.The executive joined the Rockford, Mich.-basedfootwear companyin 2020 as director of digital and retail marketing for Wolverine Worldwide. In 2022, Schoessel was promoted to his most recent role as vice president of global marketing for the Wolverine, Bates and Hytest brands. Prior to joining Wolverine, Schoessel held roles at Limited Brands, Bluedog Design, Gigunda Group, Gatorade and Kellogg’s.More from Footwear NewsDeckers Taps Marco Ellerker as New President of Global MarketplaceMarcelo Burlon Steps Down From County of Milan BrandSchoessel told FN in an interview that his promotion is in line with the footwear company’s efforts to leverage the scale of the Work Group – which includes the Wolverine, Cat, Harley-Davidson, Bates and Hytest brands – and bring the labels closer together across functions.“We’ve begun to pull the brands, at least, functionally closer together to operate with some synergy versus operating as completely distinct brands,” Schoessel said. “And where this has the most impact is with the Wolverine and Cat brands. Because for years, those two brands have been set up as competitors under the same roof, versus taking the opportunity to be able to create a portfolio strategy. So, now as one team we have the opportunity to share ideas, to grow in conjunction or in parallel to each other.”Wolverine’s ReForce work boot.Courtesy of Wolverine WorldwideNow that Schoessel and his marketing team are ready to move forward, the executive said that he is now working to define the roles of each brand within the division across pricing, functionality of categories and customer base.“It’s really just outlining for retailers what role each of the businesses play and why it’s important to carry all of our work brands,” Schoessel said. “So that work is underway and continues to be in progress. And then it’s about assortment control as we move forward. So we will not be necessarily developing assortments individually in silos, we will instead develop assortments with clarity of each brand’s purpose.”Cat’s Intruder
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Chilean instant payments API startup Fintoc raises $7 million to turn Mexico into its main market
| 2024-04-25 |
It covers the following details: Open banking may be a global trend, but implementation is fragmented. The fintech startups doing the legwork to make it a reality in smaller markets could become M&A targets for incumbents like Visa.One of these is Y Combinator alumFintoc, a B2B fintech startup that has raised a $7 million Series A round of funding to consolidate its presence in its home country, Chile, and in Mexico, where it expanded one year ago.Fintoc's product is an API that lets online businesses accept instant payments coming directly from the customer's bank account. Known as accounts to accounts, or A2A, this method offers an alternative to credit card transactions, with fewer intermediaries.For end users, A2A can be as frictionless as an online credit card payment. Instead of entering card details, they can just pick their bank and securely facilitate their bank credentials. But the main selling point is to businesses, which pay a lower commission than the usual credit card transaction fees.Many countries now facilitate A2A, which has created tailwinds for open banking companies such asPlaid, Visa-ownedTink,TrueLayerandVolt. More generalist fintech players likeAdyenandStripehave also closed partnerships to offer A2A payments to their customers.Latin America, however, isn't particularly easy to enter for global players, nor very attractive. It is highly fragmented, and many countries still lag behind in financial inclusion: Fewer than half of Mexican adultshave a bank account, according to World Development Indicators.Mexico's low banking penetration is a problem, but also an opportunity for Fintoc, CEO Cristóbal Griffero told TechCrunch. He expects neobanks to address the issue, but it will take time. "If we are there right before this boom, we'll be able to grow with the market."Fintoc's home market was less challenging in some ways. This helped it get quite significant traction: "In 2023, 1,807,000 people paid products, services and bills using Fintoc. This is approximately 13% of Chile's population," content manager Pedro Casale wrote in an email. Fintoc says it is used by more than 1.2 million people monthly in Chile.These numbers
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Dow (DOW) Q1 2024 Earnings Call Transcript
| 2024-04-25 |
It covers the following details: Image source: The Motley Fool.Dow(NYSE: DOW)Q1 2024 Earnings CallApr 25, 2024,8:00 a.m. ETContents:Prepared RemarksQuestions and AnswersCall ParticipantsPrepared Remarks:OperatorGreetings, and welcome to the Dow first quarter 2024 earnings conference call. [Operator instructions] And as a reminder, this conference is being recorded. I would now like to turn it over to Dow investor relations vice president, Pankaj Gupta. Mr.Gupta, you may begin.Pankaj Gupta--Vice President, Investor RelationsGood morning. Thank you for joining today. The accompanying slides are provided through this webcast and posted on our website. I'm Pankaj Gupta, Dow's outgoing investor relations vice president.Leading today's call are Jim Fitterling, Dow's Chair and chief executive officer; and Jeff Tate, chief financial officer. Also joining is our new investor relations vice president, Andrew Riker, who you may remember, was a member of our IR team a few years ago. Please note, our comments contain forward-looking statements and are subject to the related cautionary statements contained in the earnings news release and slides. Please refer to our public filings for further information about principal risks and uncertainties. Unless otherwise specified, all financials, where applicable, exclude significant items.Should you invest $1,000 in Dow right now?Before you buy stock in Dow, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Dow 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 $488,186!*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
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Why Textron Stock Crashed 12% on Thursday
| 2024-04-25 |
It covers the following details: Shares of defense contractorTextron(NYSE: TXT)tumbled 11.8% through 10:35 a.m. ET Thursday despite the company reporting better-than-expected results for Q1 2024.Analysts forecast the maker of armored cars,military drones, Cessna airplanes, and Bell helicopters would earn only $1.13 per share (non-GAAP) on sales of $3.1 billion in Q1. But Textron surprised to the upside with $1.20 per share in earnings and sales of $3.14 billion -- yet its stock fell. Why?Textron Q1 earnings reportThe earnings numbers above are all non-GAAP -- which is to say they don't count costs that the company considers "one-time" in nature. When calculated according to generally accepted accounting principles (GAAP), Textron's earnings were actually only $1.03 per share, which was less than the non-GAAP number, and may have disappointed investors. Still, it's a respectable 12% improvement over Q1 2023 numbers -- not too shabby considering sales grew less than 4%.Textron grew sales and earnings in three of its four biggest segments (aviation, Bell helicopters, and "systems," the division that builds drones and armored cars). Only the company's industrial division suffered a sales and earnings decline.These weren't the biggest changes at Textron, however. Thebiggestchange was the fact that Textron's share count fell 6% year over year, as the company continued buying back stock. (This also helped drive earnings per share higher, as net profits were divvied up among fewer shares.)Is Textron stock a buy?Clearly, Textron thinks its stock is a buy. Just as clearly, investors today think it's a sell. So who's right?Here's how we find out: At $15.9 billion in market capitalization and $13.8 billion in annual revenue, Textron stock sells for about 1.2 times trailing sales. That's a bit expensive for a defense contractor. The stock also sells for 17 times earnings, which seems aggressive for the 10% long
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Why A.O. Smith Stock Is Down Today
| 2024-04-25 |
It covers the following details: Water heater manufacturerA.O. Smith(NYSE: AOS)had a solid first quarter, but warned some of those sales were likely pulled forward from future quarters.Investors are focused on what is to come, sending A.O. Smith shares down 7% as of 11:30 a.m. ET.A lukewarm quarterA.O. Smith is one of the world's largest manufacturers of commercial and residential water heaters and water treatment products. The company earned $1 per share in the first quarter on sales of $978.8 million, a mixed result relative to Wall Street's consensus estimate of a $0.98-per-share profit on $996 million in sales.Lower steel costs helped fuel profitability, and A.O. Smith said it saw strong commercial demand in the U.S. China is also producing sales growth despite ongoing macroeconomic issues in the country.The company reaffirmed its previous guidance for earnings of between $3.90 and $4.15 per share in the quarter on sales of between $3.97 billion and $4.05 billion. That's within range of Wall Street's expectations of $4.08 per share on $4.01 billion in sales. But A.O. Smith said first-quarter shipments did include some pull-forward of demand ahead of a March 1 price increase.Is A.O. Smith a buy following its earnings report?A.O. Smith's global reach is allowing it to benefit both from a energy efficiency-driven replacement cycle in the U.S. and growth in emerging markets including India and China. But China remains a wild card due to geopolitical tensions and concerns about the sustainability of growth, and residential demand remains caught up in the broaderhousing industry story.All in, it appears likely to be a solid, though not spectacular, year for the company. With the shares up 24% over the last year heading into earnings season, investors appear to be taking a wait-and-see approach to how the year develops.Should you invest $1,000 in A. O. Smith right now?Before you buy stock in A. O. Smith, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now…
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Bill Gross Says Stick to Value Stocks, Avoid Tech as US Yields Soar
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Bill Gross offered some advice to investors as Treasuries and equities slumped Thursday after some worrisome US economic data: “Stick to value stocks, avoid tech for now.”Most Read from BloombergUS Economy Slows and Inflation Jumps, Damping Soft-Landing HopesMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityJavier Milei Fuels Wild Rally That Makes Peso No. 1 in WorldBig Tech Surges in Late Hours on Blowout Earnings: Markets WrapBiden’s Gains Against Trump
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What Intel Stock Investors Should Know Before Earnings
| 2024-04-25 |
It covers the following details: In today's video, I discuss recent updates impactingIntel(NASDAQ: INTC). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the after-market prices of April 24, 2024. The video was published on April 25, 2024.Should you invest $1,000 in Intel right now?Before you buy stock in Intel, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Intel 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 $488,186!*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 22, 2024Jose Najarrohas no position in any of the stocks mentioned. 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.What Intel Stock Investors Should Know Before Earningswas originally published by The Motley Fool
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Check Point Software's Products and Licenses Revenue Falls In Q1, Stock Slides
| 2024-04-25 |
It covers the following details: Check Point Software's Products and Licenses Revenue Falls In Q1, Stock SlidesCheck Point Software Technologies Ltd(NASDAQ:CHKP) reported fiscal first-quarter 2024 revenue growth of 6% year-on-year to $598.80 million, beating theconsensus of $595.12 million.The American-Israeli enterprise security solution provider's adjusted EPS of $2.04 beat theconsensus of $2.01.Revenue from Products and licenses declined 7.1% to $100.3 million, Security subscriptions increased 15.4% year over year to $263.4 million, and Software updates and maintenance grew 2.2% year over year to $235.1 million.Margin:Adjusted operating margin remained firm at 42% Y/Y. Operating margin fell to 32.38% from 35.29% a year ago.The company generated $361 million in operating cash flow, compared to $386 million a year ago, and held $3.04 billion in cash and equivalents as of March 31, 2024.Gil Shwed, Founder & CEO of Check Point Software Technologies, said, "We introduced Quantum Force, a new line of security gateways empowering organizations of all sizes with next-generation firewall technology. In addition, we launched new technologies including Harmony SaaS protecting SaaS platforms and data, and Infinity AI Copilot, an AI-powered security assistant enhancing security effectiveness across organizations."Check Point Software Technologies stock gained 28% in the last 12 months. Investors can gain exposure to the stock viaIShares Inc IShares MSCI Israel ETF(NYSE:EIS) andVanEck Israel ETF(NYSE:ISRA).Price Action:CHKP shares traded lower by 3.58% at $154.87 at the last check on Thursday.Image: Shutterstock/ whiteMocca"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market
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Why Caterpillar Stock Is Down Today
| 2024-04-25 |
It covers the following details: Caterpillar(NYSE: CAT)delivered mixed first-quarter results and warned of demand softness in the quarters to come. Investors are not impressed, sending shares down as much as 9% on Thursday morning.Slow end markets eat into growthCaterpillar makes the heavy equipment used inconstructionandmining. It is a great business when times are good for its customers, but big-ticket equipment purchases tend to get deferred when customers are uncertain about their outlook.Caterpillar earned $5.60 per share in the first quarter, beating Wall Street's $5.14-per-share consensus estimate, despite sales that came in about $200 million short of consensus at $15.8 billion.The company was able to offset lower sales volume with strong pricing and a focus on costs. Operating profit margin was 22.3% for the first quarter of 2024, compared with 17.2% for the first quarter of 2023.Things are not expected to get easier in the quarters to come. Management sees second-quarter sales coming in lower than the $17.3 billion it recorded in the period last year and said full-year 2024 revenue should be "broadly similar" to the $67.1 billion in sales from 2023.The guidance is in line with expectations, but the lack of growth is still a disappointment. In 2023, Caterpillar grew sales by 13%.Is Caterpillar a buy following its earnings release?Caterpillar is reliant on customers that are cyclical businesses, and there is little the company can do to spark growth during periods where demand softens. But the company remains a cash-generation machine and does a good job deploying that cash to shareholders.In the quarter, Caterpillar repurchased about $4.5 billion worth of shares and paid out $600 million in dividends. Over the past decade, the company has reduced its share count by about 20%.Investors buying in will not get tech-stock-like growth, but they will get a high-quality operator with reliable returns and the potential for upside when market conditions improve. Any weakness here could be a good chance for long-term-focused investors
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Why Bristol Myers Squibb Stock Is Sinking Today
| 2024-04-25 |
It covers the following details: Shares ofBristol Myers Squibb(NYSE: BMY)were down 8.3% as of 11:19 a.m. ET on Thursday. The sell-off came after the big drugmaker announced its first-quarter results before the market opened.Bristol Myers Squibb reported Q1 revenue of $11.9 billion, up 5% year over year. The company posted a loss of $5.89 per share based ongenerally accepted accounting principles (GAAP)compared to a profit of $1.07 per share in the prior-year period. It also announced a non-GAAP loss of $4.40 per share, down from earnings of $2.05 per share in the first quarter of 2023.Why did investors react so negatively to Bristol Myers Squibb's update?The decline in Bristol Myers Squibb's share price today wasn't because of its Q1 numbers. The company's revenue came in above the consensus estimate of nearly $11.5 billion. Analysts also expected Bristol Myers Squibb to post a steeper loss of $4.44 per share.So why did investors react so negatively to Bristol Myers Squibb's update? The drugmaker's guidance was disappointing.Bristol Myers Squibb projects diluted non-GAAP earnings per share for full-year 2024 between $0.40 and $0.70. Its outlook in February was for non-GAAP earnings per share between $7.10 and $7.40. The big downward revision in guidance was primarily due to the company's acquisition of Karuna Therapeutics and a collaboration with SystImmune.Is the big pharma stock a buy?Investors seeking near-term gains will be better off staying on the sidelines in the case of Bristol Myers Squibb. The company faces patent expirations for two of itsblockbuster drugs-- Eliquis and Opdivo -- over the next three years. However, with a dividend yield of over 5.3%, Bristol Myers Squibb could be attractive to income investors prepared to hold the stock for the long term.
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Forget Nvidia: 2 Artificial Intelligence (AI) Stocks to Buy Instead
| 2024-04-25 |
It covers the following details: There's no denying thatNvidia(NASDAQ: NVDA)is on a roll. The chip designer has knocked every earnings report out of the park since OpenAI unveiled the ChatGPT artificial intelligence (AI) tool, powered by the company's AI accelerator chips.Trailing sales are up by 126% in just five quarters. Free cash flow soared 610% higher over the same period, and Nvidia's stock price more than quadrupled.Golf claps and finger snaps aplenty, please. Nvidia has made many investors a lot of money in this AI boom, including yours truly.But this isn't the right time to buy more Nvidia shares. The stock is trading at incredibly lofty valuation ratios as the company's investors bet it will continue to dominate the AI hardware arena for years to come. Since I'm not so sure about that, I recentlytook some Nvidia profits off the tableto reinvest in some lower-priced but equally exciting growth stocks.You may not want to sell Nvidia stock today. In any case, I wouldn't recommend buying more of it right now.Due to Nvidia's inflated share price, I suggest you steer clear of buying this stock until it cools down a bit. But if you insist on buying AI stocks right now, take a closer look at digital design software veteranAutodesk(NASDAQ: ADSK)and semiconductor pioneerIntel(NASDAQ: INTC).Autodesk's AI-driven strategyAutodesk is leaning into the AI opportunity. The company is already a leader in generative AI tools, particularly in the field of professional-quality 3D images."We can already generate 3D representations from images 10 times faster and with vastly higher quality than currently available 3D AI," CEO Andrew Anagnost said in February's fourth-quarter earnings report.To build on this industry-leading expertise, the company is rebuilding its core products around a shared, AI-driven design engine. The master plan is all about product lifecycle management, where a computer-aided design (CAD) can move from one team to another within each client's operating structure without running into red tape and speed bumps. At the same time, software improvements and new
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Why Southwest Airlines Stock Is Flying Lower Today
| 2024-04-25 |
It covers the following details: Southwest Airlines(NYSE: LUV)is cutting back in response toBoeing's issues delivering airplanes, and investors are heading for the exits. Shares of Southwest were down 10% as of 10:30 a.m. ET following the company's disappointing earnings release.Tough choices because of a difficult supplierSouthwest is famously an all-Boeing fleet, relying exclusively on theaerospace giant's workhorse 737 line. Unfortunately, the 737 has had a lot of issues of late. The MAX generation planes were grounded for 18 months in 2019-2020 after a pair of fatal crashes and recent quality issues forced the company toslow production and push back new model certifications.Fewer planes mean slower growth for Southwest. On Tuesday, the company announced it lost $0.36 per share in the quarter on revenue of $6.33 billion. The first quarter is historically a weak one, but the results were worse than the $0.34-per-share loss on sales of $6.42 billion that Wall Street had expected.Southwest said it as cutting service to airports in Houston; Syracuse, New York; Bellingham, Washington; and Cozumel, Mexico, due to a lack of planes and intends to limit hiring. The airline expects to end 2024 with about 2,000 fewer employees than at the end of 2023."We are focused on controlling what we can control and have already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations," CEO Bob Jordan said in a statement.Is Southwest a buy following its earnings miss?For decades, Southwest was one of the best growth stories in the airline industry. But those days were largely over even prior to Boeing's issues, as Southwest has evolved into one of the industry titans instead of a disruptor.This remains a well-run airline with an attractive franchise, but with so little clarity coming from Boeing, it is hard to say when these current headwinds will subside. For investors interested in airline stocks, it would be wise to shop around instead of just buying Southwest on the dip.Should you invest $1,000 in South
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Retail Traders Are Turning Pessimistic on Stocks for First Time Since November
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Individual investors are pessimistic that the US stock market can bounce back after stumbling in April with inflation remaining stickier than expected and economic growth stalling.Most Read from BloombergUS Economy Slows and Inflation Jumps, Damping Soft-Landing HopesMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityBig Tech Surges in Late Hours on Blowout Earnings: Markets WrapBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsJavier
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Why Meta Platforms Stock Crashed and Burned Thursday Morning
| 2024-04-25 |
It covers the following details: Shares ofMeta Platforms(NASDAQ: META)traded sharply lower Thursday morning, falling as much as 16%. As of 10:52 a.m. ET, the stock was still down 12.3%.The catalyst that sent thesocial mediatitan lower was the company's quarterly financial report, but not for the reasons you might think.AI spending spreeIn the first quarter, Meta reported revenue that grew 27% year over year to $36.4 billion. Expenses grew more slowly, increasing just 6%, which helped driveoperating marginsto 38%, up from 25% in the prior-year quarter. This fueled robust profits, as earnings per share (EPS) surged 114% to $4.71.To put the results into context, analysts' consensus estimates called for revenue of $36.14 billion and EPS of $4.32, so Meta sailed past expectations with ease.Meta also noted that the number of users of its family of social media sites grew 7% year over year to 3.24 billion, while advertising impressions across its family of apps jumped 20%.That mostly sounds like a cause for celebration, so what caused the stock to plummet? Meta's plans for artificial intelligence (AI) and the associated spending. Meta raised its full-year forecast for capital expenditures to a range of $35 billion to $40 billion, up from its prior outlook of $30 billion to $37 billion. Meta said, "We continue to accelerate our infrastructure investments to support our AI roadmap." It also said capital spending to support AI will be even higher in 2025.Context mattersSince generative AI burst on the scene last year, the demand to incorporate these advanced algorithms has been off the charts. Meta is one of just a few big tech companies with the resources to create the large language models needed to bring generative AI to life.The company's Large Language Model Meta AI (LLaMA) AI is widely regarded as being among the top AI systems in the world, though CEO Mark Zuckerberg acknowledged, "We're investing and scaling a new product but aren't yet monetizing it."While many analysts (slightly) reduced their price targets on Meta stock, sentiment was surprisingly
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Meta stock tanks as aggressive AI spending worries Wall Street
| 2024-04-25 |
It covers the following details: Caroline Woods brings the latest business headlines from the floor of theNew York Stock Exchangeon Thursday, April 25.Related: Analysts reset Facebook-parent Meta stock price targets amid post-earnings plungeFull Video Transcript Below:CAROLINE WOODS:I’m Caroline Woods reporting from the New York Stock Exchange - here’s what we’re watching on TheStreet today.Wall Street is looking ahead to key inflation data out Friday. The Fed’s preferred inflation gauge —the Personal Consumption Expenditures Price Index — measures how much consumers are spending on goods and services.This will be the final data on inflation before the Federal Reserve makes its next decision on interest rates on May first. Markets are pricing in a 96 percent chance that the central bank holds rates steady.Meanwhile, shares of Meta(META)fell sharply after the company announced higher than expected spending on artificial intelligence in its first-quarter earnings report. The tech giant said it expects to spend anywhere between $35 and $40 billion in the coming year, up from previous estimates of 30-37 billion, driven heavily by investments in AI.On an earnings call with investors, CEO Mark Zuckerberg doubled down on AI saying Meta wants to be the leading AI company in the world, adding that the company needs to increase spending meaningfully before expecting to generate revenue in AI.These commentsspooked investors and threatened to wipe almost 163 billion dollarsoff its market value.This all comes roughly a week after Meta deployed its AI assistant on Instagram and Facebook. Meta says the tool has been used by tens of millions of users.That’ll do it for your daily briefing - from the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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Meta’s Earnings Flop Sparks $400 Billion Selloff in Tech Stocks
| 2024-04-25 |
It covers the following details: (Bloomberg) -- A disappointing earnings report from Meta Platforms Inc. has technology investors on edge ahead of results from some of the stock market’s biggest and most important companies in the coming days.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsTesla Soars on Tentative China Approval for Driving SystemStocks Trade for 390 Minutes a Day. Increasingly, Only 10 MatterBinance and CZ’s Fortunes Are Set to Grow, Jail or no JailUS Warns ICC Action on Israel Would Hurt Cease-Fire ChancesTechnology stocks tumbled on Thursday with the tech-heavy Nasdaq 100 Index falling as much as 2% after Meta forecast weaker-than-expected sales in the current quarter while targeting higher capital expenditures. The selloff wiped out roughly $400 billion in market value from the benchmark at the low.Meta slumped as much as 16%. Alphabet Inc. and Microsoft Corp., which both report earnings on Thursday afternoon, dropped more than 5%. Amazon.com Inc., whose results are due on April 30, fell nearly 6%.Before its earnings, Meta shares had rallied this year amid heavy spending on artificial intelligence — and investors had been looking for use of the technology to boost results. Instead, the disappointing revenue forecast raised questions about returns on those investments and whether expectations for other Big Tech peers are too high.“The disappointment on the revenue side is overshadowing any optimism about AI,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors. “It’s hard to tell what the benefit will be to users, and while AI could ultimately mean some cost savings down the line, that isn’t visible yet.”For analysts at Lynx Equity Strategies, Meta’s results raised broader questions about the AI trade.“For all of this attention on AI, why isn’t the company able to beat June expectations,” analysts KC Rajkumar and Jahanara Ahmed said. “Is the monetization of gen AI on track with management’s expectations?”Elsewhere in technology, International Business Machines Corp. and software maker ServiceNow Inc. added to the gloom as their shares slumped after their own earnings reports.With the losses
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Nasdaq Profit Falls Most Since 2010 Amid Elusive IPO Revival
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Nasdaq Inc.’s profit fell the most in 14 years as firms continue to wait for the economy to stabilize before going public. Most Read from BloombergUS Economy Slows and Inflation Jumps, Damping Soft-Landing HopesMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsBig Tech Surges in Late Hours on Blowout Earnings: Markets WrapHow to Get a Meeting With the UAE’s $1.5 Trillion ManEarnings f
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Why Deckers Stock Dropped Today
| 2024-04-25 |
It covers the following details: Shares ofDeckers Outdoor(NYSE: DECK)dropped on Thursday after an analyst downgraded their outlook for the stock. Coincidentally, the company released a product update with its popular Hoka brand, but it didn't move the needle. As of 10:15 a.m. ET, Deckers stock was down 7%.A new shoe line didn't encourage investors todayDeckers stock has performed incredibly over the last five years, rising over 400%. The success of its Hoka brand is a big part of this. In its fiscal third quarter of 2024 (which ended in December), Hoka sales surpassed $400 million and accounted for nearly 28% of the company's total sales.This morning, Deckers announced its latest Hoka running shoe line, the Skyward X. It could help the brand keep growing, but that's not what investors are thinking about this morning.Rather, investors are thinking about comments fromBank of Americaanalyst Christopher Nardone. Previously, Nardone recommended buying Deckers stock but now he's shifting his outlook to more neutral, according to StreetInsider. This is causing some investors to rethink their positions.Deckers stock has gone up really fastIn fairness, Deckers stock is up over 60% in just the past year, which is a red-hot performance for a single year. This rapid price appreciation has pushedthe price-to-sales valuationof Deckers to over 5. For perspective, it's traded at about half of this valuation over the last five years.DECK PS Ratio ChartDeckers ownsshoe brandsthat are growing in popularity and the business turns a nice profit. But its valuation is reaching historically abnormal levels so there may be some validity in Nardone's more neutral near-term outlook.Longer-term, Deckers' success may be tied to its ability to continue expanding in international markets. Right now, its international business is about half of the size of its domestic business. But sales in international markets are growing at a faster pace, which is encouraging.Deckers is expected to report quarterly financial results next month.Should you invest $1,000 in Deckers Outdoor right now?Before you buy stock in De
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Is Bristol Myers Squibb Stock a Millionaire Maker?
| 2024-04-25 |
It covers the following details: Many top healthcare stocks provide investors with long-term stability, promising growth prospects, and in some cases even a dividend.Yet, investors don't appear to be sold on the fact thatBristol Myers Squibb(NYSE: BMY)checks off all those boxes. The business faces some concerning challenges in the near term, but there is hope that it can get back to growing in the long run.For contrarian investors willing to take a chance on thehealthcare company, there could be some promising upside, especially given its low valuation. Does Bristol Myers Squibb stock have the potential to make you a millionaire?What has investors so concerned?Bristol Myers Squibb hasn't been winning over many investors of late. In fact, they have been downright bearish; shares of the healthcare company are down 30% in just the past 12 months.It's not hard to see why investors might not be all that thrilled. It has around $37 billion in long-term debt on its books at a time when interest rates are high. It's also staring down the prospect of declining sales from top drugs Eliquis, Opdivo, and Revlimid as they lose patent protection in the years ahead. And in Revlimid's case, it is already facing competition from generics.Revenue fell by 3% last year to just over $45 billion, the second straight year that the top line has declined. The concern is that it could be the start of longer-term trend. And when combined with the high debt load, it doesn't paint a pretty picture for investors or give them much reason to buy shares of the company.Why the stock could be a tempting contrarian investmentThe near-term outlook for Bristol Myers is indeed concerning. But the company isn't standing pat. It's doing what drug companies always do: looking to bring new products to market and work on their pipelines.Within the past year, the company has obtained approvals from the Food and Drug Administration (FDA) for multiple drugs. In August 2023, regulators approved Reblozyl, a treatment for anemia in people who might require blood transfusions. It's a promisingblockbuster drugthat could generate $4 billion in sales at its peak.In March, the FDA
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3 Millionaire-Maker Biotech Stocks
| 2024-04-25 |
It covers the following details: It's been a tough past three years for biotech stocks. Although the COVID-19 pandemic sparked bullish interest in the industry, this interest has waned since the contagion began winding down. Between late 2021 and now, theNasdaq Biotechnology Indexis down on the order of 25% versus roughly a breakeven for the board market.As veteran investors can attest, however, the time to go shopping is when quality stocks are discounted. With that as the backdrop, here's a rundown on three biotech stocks you may want to consider scooping up while they're still on sale. Each of them could help you become a millionaire, given enough time and a big-enough up-front investment.Just keep in mind that the biotech industry's above-average potential is matched by its above-average risk. Invest in them accordingly.1. Iovance BiotherapeuticsCancer treatments aren't exactly a new idea, but the approachIovance Biotherapeutics(NASDAQ: IOVA)is taking to treat this highly varied disease is still relatively unique -- and promising.Iovance's core science is the development of tumor-infiltrating, or TILs. The are just the white blood cells that routinely fight lymphocytes off bodily infections. They also kill faulty cells before they can reproduce and turn into full-blown cancer. Sometimes, though, lymphocytes cells can't quite figure out how to do their job. They need a little help.Enter Iovance Biotherapeutics. Its technology custom-builds white blood cells for each and every cancer patient taking its treatment, which can be used alone or in conjunction with other oncology drugs. To date, this tech has only brought a single therapy called Amtagvi -- or lifileucil -- to the market, finally winning its first approval in February of this year.Although it's only FDA-approved to treat a very narrow sliver of metastatic melanoma patients, it's a start that can be expanded. And it will be. The therapy is in five other clinical trials.This isn't the only drug in Iovance's portfolio. Early last year, the company acquired the rights to a treatment called
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S&P slashes Boeing credit outlook as rating hovers above junk status
| 2024-04-25 |
It covers the following details: By Shankar Ramakrishnan and Allison Lampert(Reuters) -Boeing's credit rating faced pressure for a second time this week as S&P brought the company one step closer to a junk rating on Thursday after a January mid-air blowout of a cabin panel led the planemaker to slow production of its best-selling jet.The rating agency changed its outlook on the company's bottom of investment grade rating to "negative" from "stable" to reflect an increased potential for Boeing to face further delays in the expected recovery of its cash flow and credit ratios.S&P, which affirmed Boeing's "BBB-" long- and "A-3" short-term issuer credit ratings, expects the company will not generate enough free cash flow in 2024 to cover looming debt maturities and has flagged concerns over leadership uncertainty after CEO Dave Calhoun said he would leave by year's end.On Wednesday, Moody's cut Boeing's credit rating to one notch above junk status just hours after the company reported it used $3.93 billion of free cash flow in the first quarter."This rating change with negative watch just adds to the long list of pressures that Boeing is grappling with," said Rob Stallard, analyst at Vertical Research Partners, referring to the Moody's downgrade.The planemaker has been under heavy regulatory scrutiny, and has lowered production of its 787 widebody, along with its 737 MAX, after the cabin panel blew off an Alaska Airlines 737 MAX 9 flight in mid-air, forcing an emergency landing.But investors and analysts told Reuters that Boeing is in a position to solve its quality and supply-chain problems and increase production to generate needed cash flow before a more serious downgrade. The planemaker could also tap bond markets to get ahead of more than $12 billion in combined debt coming due in 2025 and 2026.Tony Bancroft, portfolio manager at Gabelli Funds which owns shares in Boeing, said the rating agencies might cause some near-term volatility but make a limited impact in the long-term.“I think the general understanding is if they’re able to generate the cash flow, by being able to improve deliveries in the
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Alphabet stock surges on earnings beat, dividend announcement
| 2024-04-25 |
It covers the following details: Google parent Alphabet's (GOOG,GOOGL) market cap surpassed $2 trillion on Friday following standout quarterly results that beat revenue and earnings estimates and the announcement of a cash dividend program of $0.20 per share.The board of directors also approved stock repurchases of up to an additional $70 billion.“Our results in the first quarter reflect strong performance from Search, YouTube and Cloud," said CEO Sundar Pichai in a statement on Thursday. "Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation.”The company's market cap stood at $2.15 trillion in early afternoon trading on Friday. Alphabet stock was up roughly 10% during the session.Revenue, excluding traffic acquisition costs, rose 16% from the same period last year to $67.59 billion, beating analyst expectations of $66.07 billion, per Bloomberg data. The company reported adjusted earnings per share of $1.89 versus consensus estimates of $1.53.In artificial intelligence, Google has widely been seen as playing catch up to Microsoft (MSFT), which was among the first in the tech world to reap the cultural excitement around consumer AI chatbots. Microsoft invested in OpenAI, the company behind the popular ChatGPT.But Google executives emphasized during the earnings call Thursday that the company is well positioned to lead the shift to an AI-centric tech world, and that it is committed to investments that will fuel the development of new models.Pichai said the company has clear paths to monetize AI breakthroughs through advertising, cloud, and subscriptions.He also touted the integration of AI tools into Google search, which allows users to ask more complex and descriptive questions.But how AI will influence Google’s search business remains unclear, since new AI-based interfaces might displace traditional search and change the way users interact with the Web.Investors are also wary of the costs associated with AI versus the return. Alphabet's report arrived a day after its advertising rival and Big Tech peer Meta (META) noted that expenses for the year are growing and that it will take some time before AI investments generate significant revenue. The comments helped send Meta shares tumbling more than 10%.Alphabet reported capital expenditures for the quarter
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Jefferies CEO sold $65 million in stock to buy a yacht from a client
| 2024-04-25 |
It covers the following details: Jefferies CEO Rich Handler and Landry's CEO Tilman Fertitta at the opening of Mastro's Steakhouse in New York City in 2014.Rob Kim/Getty ImagesJefferies CEO Rich Handler sold $65 million in company stock to buy a luxury yacht.He's said to be buying a Westport 164 from his friend Tilman Fertitta, a Jefferies client.Handler said on Wednesday that he wasn't planning any more stock sales.Jefferies CEO Rich Handler sold $65 million of his stock in the company to buy himself a gift — a luxury yacht.Handler sold 1.5 million shares, or 7% of his holdings, to purchase a "personal boat and to pay tax obligations," the investment bank said in a Wednesday statement."My sale of shares today was a gift to myself and my family, and I do not intend to sell any further shares," Handler said in the statement. "I remain extremely bullish on Jefferies."A source told theFinancial Timesthe boat was a Westport 164 yacht and was being purchased from Handler's longtime friend Tilman Fertitta, a Jefferies client.Fertitta is the billionaire CEO of the hospitality company Landry's and owns the Houston Rockets, an NBA team. The two men jointly own Landcadia Holdings, a blank-check company.Jefferies said in the statement that Handler, who's been with the bank since 1990, had received about 70% of his pay in the form of company shares. The bank said he'd previously sold shares only for tax purposes and charity.Jefferies didn't immediately respond to a request for comment from Business Insider.Investors often view executives' stock sales as signaling a lack of company confidence, so any sales are carefully messaged.In October, JPMorgan Chase CEO Jamie Dimon said he would sell 1 million of his 8.6 million shares, his first sale since becoming CEO in 2006. Thefiling announcing the planned salesaid that Dimon chose tosell the stocks"for financial diversification and tax-planning purposes" and that he "continues to believe the company's prospects are very strong."Dimon sold the first of
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Have $500? 4 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now
| 2024-04-25 |
It covers the following details: One tried-and-true path to great returns as an investor is to buy shares of strong companies that have fallen out of favor on Wall Street. These businesses are often enduring challenges that threaten the next year or two of earnings, but not the wider growth picture. In that way, you expose yourself to short-term paper losses in exchange for impressive gains over many years. In effect, you're being paid to be patient.Of course, many stocks are cheap for reasons that do impair the company's long-term growth prospects. The challenge is to avoid these situations while singling out the truly temporary corporate stumbles. Let's look at a few attractive candidates that fit the bill.1. Coca-ColaCoca-Cola(NYSE: KO)stock missed most of the pandemic-era rally in 2021 and then was left out of the post-pandemic market surge over the past year. As a result, shares of the beverage titan have risen by just 24% in the past five years compared to the 73% increase in theS&P 500over that time.Yet, Coke remains a formidable business with sales volumes rising along with prices in 2023. Earnings are stellar and profit margin is well above that of rivalPepsiCo. The company generates enough cash to pay one of the most stable, longest-running dividends on the market.And its growth prospects are solid as rising demand for waters, energy drinks, and other new niches offset declines in the more traditional soda portfolio.2. Electronic ArtsElectronic Arts(NASDAQ: EA)is playing a game that's stacked in its favor. The video game publisher owns a huge collection of intellectual property that spans popular niches like sports and casual games. Steady growth in its audience size (and monetization rates) has helped annual revenue rise to $8 billion from less than $4 billion a decade ago.Games are becoming more profitable as the selling model shifts to more of asoftware-as-a-serviceapproach. EA is a leader in this arena, with subscription services accounting for 70% of annual sales. Wall Street is worried about slowing growth following the pandemic spike, but savvy investors can look past that volatility toward EA's much brighter potential
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How To Earn $500 A Month From T-Mobile US Stock Ahead Of Q1 Earnings Report
| 2024-04-25 |
It covers the following details: How To Earn $500 A Month From T-Mobile US Stock Ahead Of Q1 Earnings ReportT-Mobile US, Inc.(NASDAQ:TMUS) is set to release earnings results for its first quarter, after theclosing bell on April 25, 2024.Analysts expect the Bellevue, Washington-based company to report quarterly earnings at $1.87 per share, up from $1.58 per share in the year-ago period. T-Mobile US is projected to post revenue of $19.81 billion (roughly the same as the year-earlier quarter, per data fromBenzinga Pro).T-Mobile recently announced $163 Million in completed network upgrades for Arkansas.With the recent buzz around T-Mobile US, some investors may be eyeing potential gains from the company's dividends, too. T-Mobile US currently offers an annual dividend yield of 1.58% — a quarterly dividend amount of 65 cents per share ($2.60 a year).So, how can investors exploit its dividend yield to pocket a regular $500 monthly?To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $378,927 or around 2,308 shares. For a more modest $100 per month or $1,200 per year, you would need $75,851 or around 462 shares.Read This:Jim Cramer Says This Energy Stock Is ‘Terrific,’ Calls Casey’s General Stores A ‘Winner’View more earnings on TMUSTo calculate:Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.60 in this case). So, $6,000 / $2.60 = 2,308 ($500 per month), and $1,200 / $2.60 = 462 shares ($100 per month).Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.How that works:The dividend yield is computed
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1 Incredible Stock That Turned $10,000 Into $4.6 Million
| 2024-04-25 |
It covers the following details: The stock market is the best tool available to most people when it comes to building lasting wealth. In the past two decades, theS&P 500returned 546%, including dividends. That gain is hard to dismiss.Unsurprisingly, some individual businesses have fared much better. TakeNetflix(NASDAQ: NFLX). Thestreaming stockmight be one of the best-performing in recent times. It has skyrocketed 46,000% since its initial public offering in 2002, turning a $10,000 initial investment into $4.6 million today.Let's look at Netflix's rise over the past couple decades before figuring out if the stock makes for a smart buying opportunity today.Creating a new entertainment categoryNetflix's early executive team, headed by co-founder Reed Hastings, was convinced early on that the internet was going to revolutionize how people viewed video entertainment. Consequently, they transitioned the business to a DVD-by-mail service to one fully focused on streaming. It also helped that the internet was becoming more prevalent, connectivity speeds were getting faster, and hardware devices were becoming more user-friendly.Netflix rode these infrastructure upgrades to rapid growth. What started as a streaming service in 2007 just in the U.S. has transformed into a truly international operation. Netflix has a presence today in 190 countries and territories. It's successfully ventured into new programming categories, video games, advertising, and live events.After years of strong revenue and subscriber gains, both of which continue to this day, Netflix has become a global media powerhouse. The company generated $35 billion in sales in the past 12 months, and it currently has 270 million members. These figures are up 121% and 94%, respectively, from about five years earlier in calendar 2018.Critics always pointed to the fact that Netflix was burning so much cash as it expanded. To their dismay, this is now a company that generates ridiculous amounts of profit. After reporting an operating margin of 21% last year, the leadership team expects this metric to come in at 25% in 2024.What's more, Netflix produced $8.5 billion infree cash flow(FCF)
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Zuckerberg Asks for Patience as Meta’s AI Push Spooks Market
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Mark Zuckerberg is asking investors for patience again. Instead, they’re alarmed.Most Read from BloombergTesla Soars on Tentative China Approval for Driving SystemHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsStocks Trade for 390 Minutes a Day. Increasingly, Only 10 MatterUS Warns ICC Action on Israel Would Hurt Cease-Fire ChancesYen Sparks Intervention Suspicion After U-Turn From 1990 LowsAfter Meta Platforms Inc. revealed that it will spend billions of dollars more than expected this year — fueled by investments in artificial intelligence — the company’s chief executive officer did his best to soothe Wall Street. But the spending forecast, coupled with slower sales growth than anticipated, sent the shares tumbling as much as 16% in New York on Thursday morning, the biggest drop since October 2022.It was a familiar pitch for Zuckerberg, who has said before that the company’s futuristic technological bets will eventually pay off — and that savvy shareholders should stick around.“Smart investors see that the product is scaling and that there is a clear monetizable opportunity there even before the revenue materializes,” he said during a conference call following Meta’s first-quarter earnings report.The strategic pivot may have caught investors by surprise because it had embraced aggressive cost-cutting in recent quarters to boost profit. Its stock had been up 39% so far this year at market close and was trading near all-time highs for the past month.The company credits AI for some of its recent user growth and advertising success, pointing to improvements within its recommendation algorithms. Meta has been one of the best-performing stocks among its Big Tech peers.The Facebook parent is now plowing ever more resources into artificial intelligence, which requires significant investments in computing power — part of an arms race with rivals from Alphabet Inc. to Microsoft Corp. for supremacy in this fast-developing technology. Zuckerberg warned that the investments would increase “meaningfully” and take a long time to generate returns for the social networking company — perhaps years — but urged them to see the long-term benefits that AI has to offer.Zuckerberg took a similar tack when Meta pivoted toward building the so-called metaverse
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Stocks sink after weak GDP data, Meta's miss
| 2024-04-25 |
It covers the following details: The Dow nosedived along with the S&P 500 and Nasdaq Composite after a fresh read on U.S. GDP fell well short, and earnings Facebook parent Meta disappointed investors.
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2 Fantastic Growth Stocks to Buy Right Now
| 2024-04-25 |
It covers the following details: While some stocks have responded to the 2024 bull market better than others, an abundance of stocks have followed this rising tide. There's no predicting how long this next bull market will last, although historically speaking, these periods tend to significantly outlast bear markets in average duration.If you're investing in top stocks for the long haul, what the market does in a few weeks, months, or even years won't deter you from building your portfolio in all market conditions. On that note, here are two fantastic growth stocks to consider putting cash into the next time you go shopping for businesses to add to your basket of investments.1. Vertex PharmaceuticalsVertex Pharmaceuticals(NASDAQ: VRTX)has made a habit of developing successful products that address significant patient populations with needs that have historically been unmet by existing medications or treatments. Its cystic fibrosis drug franchise has remained a leader in this multi-billion-dollar segment of the rare disease drug market for years, because Vertex's products are the only ones that treat the root cause of this genetic illness.The company is in the early days of launching Casgevy, the gene-editing therapy it developed withCRISPR Therapeutics. As a one-time potential functional cure for not one but two rare blood disorders, this therapy has significant blockbuster potential over the next several years.Vertex is also working on stem-cell-based therapies for Type 1 diabetes, as well as treatments for rare genetic illnesses like Duchenne muscular dystrophy, alpha-1 antitrypsin deficiency, and APOL1-mediated kidney disease. The company's candidate for APOL1-mediated kidney disease, inaxaplin, just advanced to the phase 3 clinical trial stage.While the launch of Casgevy will take time to manifest in terms of the effect on Vertex's balance sheet, the company is already coming from a position of strength with its existing portfolio. The two most likely next launches will be another cystic fibrosis therapy and a non-opioid drug candidate for acute pain.The cystic fibrosis therapy is a new triple-combination treatment that will widen its market share in this space while catering to new cohorts of patients, as well as those who have stopped taking its medicines previously.
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Monster downgraded, Five Below upgraded: Wall Street's top analyst calls
| 2024-04-25 |
It covers the following details: Monster downgraded, Five Below upgraded: 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:Wells Fargo upgradedFive Below(FIVE)to Overweight from Equal Weight with an unchanged price target of $180. While the company "has had its share of issues and now seems poised to lower guidance against a choppy backdrop," the firm does not believe the story is broken and says the stock's risk/reward "looks very good for those with some patience."HSBC upgradedUPS(UPS)to Buy from Hold with a price target of $170, up from $150. The company's Q1 results beat on tapering volume decline and an improving costs base, the firm tells investors in a research note.KeyBanc upgradedSherwin-Williams(SHW)to Overweight from Sector Weight with a $400 price target. The firm recommends taking advantage of the 13% pullback in shares since the recent peak in late March.Goldman Sachs upgradedTJX(TJX)to Buy from Neutral with a price target of $110, up from $100. The firm views TJX as a "best-in-class operator and market share winner."Needham upgradedSilicon Labs(SLAB)to Buy from Hold with a $150 price target. The firm believes the company is well positioned for the semiconductor cyclical recovery.Top 5 Downgrades:Truist downgradedMonster Beverage(MNST)to Sell from Buy with a price target of $46, down from $65. While the firm still views Monster as "a great company," it no longer sees it as a high growth story. JPMorgan also downgraded Monster Beverage to Neutral from Overweight with a price target of $59, down from $66, ahead of the company's Q1 earnings report on May 8.BofA downgradedDeckers Outdoor(DECK)to Neutral from Buy with a price target of $860, down from $875, as
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Is Albemarle Stock a Value Opportunity?
| 2024-04-25 |
It covers the following details: Lithium minerAlbemarle(NYSE: ALB)has struggled since hitting an all-time high in 2022, with shares down about 64% since. A primary cause of the decline is likely profit-taking after an intense run-up during the pandemic, but slowing adoption of electric vehicles (EVs) and reduced expectations for future EV demand are also significant factors.Multiple automakers -- includingFord Motor Company(NYSE: F),General Motors(NYSE: GM),Volkswagen(OTC: VWAP.Y), and Jaguar -- have pulled back on plans to electrify their fleets. For Albemarle, which generates 74% of its revenue from the production of lithium compounds used in battery production, this development has turned a long-running tailwind into an unexpected headwind. However, the market is overlooking the company's solid financial performance.Despite reduced demand, Albemarle remains profitableWhile the news and market sentiment are bearish right now, Albemarle has consistently turned a profit and paid a dividend. For 2023, the company reported net income of $1.6 billion, or $13.36 per diluted share. Gross profit declined year over year due to an increase incost of goods sold. The company reported a $604 million charge due to a reduction in the market price of lithium products. On the positive side, revenue rose by more than $2 billion. Despite slowing demand, Albemarle is growing its top line; any future increases in the market price for lithium products will only boost its margins and profits.From a cash-flow perspective, the company had net cash outflows for 2023. However, it generated positivefree cash flowthe prior two years. The lithium specialist announced an updated plan to focus on free cash flow, including reducing capital spending and expense management. Albemarle took these actions in response to market changes in the lithium supply chain.New ventures coming on lineDespite slowing electric vehicle sales, Albemarle closed deals with major auto manufacturers in the past year, including Ford and BMW, to provide lithium for battery production. The projects run from 2025 through at least 2030.While lithium products account for
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Crocs Stock: Everything You Need to Know
| 2024-04-25 |
It covers the following details: Their shoes are controversial, butCrocs'(NASDAQ: CROX)business has been nearly flawless. The company has been able to control costs and grow the bottom line, but investors haven't seemed to notice.In this video, Travis Hoium shows everything you need to know about Crocs stock.*Stock prices used were end-of-day prices of April 20, 2024. The video was published on April 24, 2024.Should you invest $1,000 in Crocs right now?Before you buy stock in Crocs, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Crocs 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 $505,010!*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 22, 2024Travis Hoiumhas positions in Crocs. The Motley Fool recommends Crocs. The Motley Fool has adisclosure policy. Travis Hoium 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.Crocs Stock: Everything You Need to Knowwas originally published by The Motley Fool
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Roblox Stock Has 33% Upside, According to 1 Wall Street Analyst
| 2024-04-25 |
It covers the following details: Roblox(NYSE: RBLX)is coming off a strong year for its interactive content platform. Daily active users hit new highs, and revenue grew 30% year over year in the fourth quarter of 2023. However, there remains skepticism around the company's ability to sustain high growth and monetize the content on its free-to-use platform.But this could be a great buying opportunity, according toJPMorgananalyst Cory Carpenter. The analyst upgraded the stock from neutral to overweight and raised hisprice targetfrom $41 to $48. That price target, usually an estimate of where the stock might trade in the next year or so, is 33% higher than the current share price.Is Roblox stock a buy?The market doesn't want to give Roblox credit for its recent growth streak for a few reasons. First, much of its content is centered around gaming, and thevideo game industryisn't growing that quickly right now.Second, Roblox has an inconsistent operating history. Its top-line growth slowed amid the broader macroeconomic weakness in 2022, and it doesn't have a record of generating a consistent profit yet.Carpenter sees the market's skepticism as a great opportunity to buy shares in a company with many opportunities to keep growing. He specifically cited Roblox's new revenue streams that it's developing in advertising.The analyst also likes that Roblox is wrapping up a period of heavy spending, which should lead to a period of strong bottom-line growth. Indeed, management is targeting one to three percentage points of margin expansion through 2027.The stock has consistently traded around a price-to-sales ratio of 8 over the last two years, so if Roblox can execute to management's outlook for 20% or better top-line growth through 2027, the stock could indeed hit the analyst's target.Should you invest $1,000 in Roblox right now?Before you buy stock in Roblox, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Roblox wasn’t one of them. The 10 stocks that made the cut could produce monster returns
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Pepsi Tops Estimates Despite A Weakened Domestic Market
| 2024-04-25 |
It covers the following details: Pepsi Tops Estimates Despite A Weakened Domestic MarketOn Tuesday, Pepsi Co Inc (NASDAQ:PEP) showed it managed to navigate weaker U.S. demand that was the result of Quaker Oats recalls and backlash to higher prices for its drinks and snacks. But despite delivering better than expected earnings and revenue for its first quarter, Pepsi shares dipped about 2% upon the report as Wall Street watched at other things, such as a struggling domestic market.First quarter highlightsFor the quarter ended on March 23rd, Pepsi reported that revenue grew 2.3% to $18.25 billion, surpassing LSEG’s estimate of $18.07 billion. When acquisitions, divestitures and foreign exchange are put aside, organic revenue rose 2.7%.Pepsi earned a net income attributable to the company of $2.04 billion while adjusted earnings per share of $1.61 also surpassed LSEG’s estimate of $1.52.Volume is still under pressure.Stripping out pricing and currency changes to truly reflect demand, the beverage segment reported flat volume while food division saw its volume decrease 0.5%. Besides higher prices pressuring volume, recalls of Quaker Foods cereals and bars only worsened the problem by denting the organic volume by about 1%. The recall due to potential salmonella contamination was first issued in December, and then it got further widened in January. The production at the plant tied to recalls has already ceased but Pepsi will close it in June. As a result, the North American Quaker Food division’s volume plummeted 22%.The domestic market is struggling the most.North American divisions reported declines across unit. The beverage unit contracted 5%, followed by Frito-Lay’s 2% decline. But, the situation seems brighter outside the U.S. Asia-Pacific, Australia, New Zealand and China region reported snacks volume grew 12%, while Europe reported beverage volumes increased 7%, followed
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MicroStrategy Could Merit S&P 500 Inclusion If It Adopts New Accounting Rules: Benchmark
| 2024-04-25 |
It covers the following details: MicroStrategy could boost earnings by over $3 billion if it chooses to adopt new standards, the report said.Benchmark said if the company reports positive earnings it meets the final condition for S&P 500 inclusion.This would boost MicroStrategy’s valuation as index funds would be forced to buy the stock, the broker said.MicroStrategy (MSTR) could surprise Wall Street analysts and report better-than-expected earnings if the software company chooses to adopt new accounting standards, a move that means it could qualify for inclusion in America’s most important stock index, the S&P 500, broker Benchmark said in a research report on Thursday.The company will report results for thefirst quarter2024 after the close of markets on April 29.MicroStrategy’s corporate strategy is partly based on the acquisition and holding of bitcoin. As of March 19 it held 214,246 bitcoin worth $13.9 billion at current prices. Benchmark notes that since the software company started holding bitcoin on its balance sheet it has recorded $2.27 billion in cumulative impairment losses due to a Financial Accounting Standards Board (FASB) rule called ASC 350.TheFASB issued new guidancein December last year that allows companies that hold digital assets on their balance sheet to measure them at fair value, and record changes in fair value in net income in each reporting period. The new rules become effective as of Jan. 1, 2025, but early adoption of the standard is allowed.“The impact of doing so on MSTR’s reported earnings per share would be massive: the company in its 2023 10-K report estimated that early adoption would increase its 2024 beginning retained earnings balance by ~$3.1 billion,” analyst Mark Palmer wrote.Analyst consensus is for MicroStrategy to report a first-quarter 2024 loss per share of $0.55. Benchmark estimates that if the company decides to opt for early adoption of the new standard it could report a gain of more than $300 per share for the quarter.MicroStrategy currently meets nearly all of the criteria for S&P 500 inclusion, the report said. The company is based in the U.S., its shares are highly liquid,
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Is QuantumScape Stock Going to $6? 1 Wall Street Analyst Thinks So.
| 2024-04-25 |
It covers the following details: The turbulent electric vehicle (EV) sector has provided a lot of up-and-down drama lately for investors, who should be very selective these days. But one they should select, at least according to one analyst, is next-generation battery makerQuantumScape(NYSE: QS). Here's a take on his latest take, if you will.Better battery neededQuantumScape is currently developing ahigher-energy-density EV batterythan the typical products used today, which in broad terms means one that can provide notably higher driving range per charge.The company's power packs haven't yet made it into the guts of any cars; however, they are progressing. In March, QuantumScape revealed that it has started shipping a prototype of such a battery cell to certain customers.According to the bullish -- if cautious -- analyst, one great advantage QuantumScape has is that it's well-funded and thus isn't under extreme pressure to deliver a revenue-generating product right away."With over $1 billion in liquidity and improvements to cash burn achieved over the last several quarters, QS has extended its current cash runway into 2026 as the company continues along its commercial scale-up path," wrote Jordan Levy of Truist Securities in a new research note.In that analysis, Levy reduced his price target from $8 per share to $6; in his view, downbeat news on the wider EV industry will somewhat limit the upside of the stock for now. Still, even at the reduced target, he expects upside of 12% on the most recent closing share price.QuantumScape has much going for itTo me, QuantumScape seems determined to prove it can fulfill the promise of a better battery forEVs, a product that is greatly needed in the industry.Current range-per-charge figures aren't impressive enough on their own to shift the car-buying public to EVs in great numbers. This company is in front of a spectacular opportunity, and given its low share price and that cash cushion Levy mentioned, I think it's a fine bet to become the Next Big Battery Thing.Should you invest $1,000 in QuantumScape right now?Before you buy stock in QuantumScape, consider this:TheMotley Fool Stock Advisoranalyst team
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3 Things You Might Not Know About This "Magnificent Seven" Stock
| 2024-04-25 |
It covers the following details: There haven't been many success stories as outstanding asAmazon(NASDAQ: AMZN). This business has grown rapidly over the past couple of decades and now dominates multiple sectors, with customers using its products daily.This "Magnificent Seven" stock has crushed it for investors, rising 975% in just the past 10 years (as of April 19). Even after this monumental performance, shares trade at a reasonableprice-to-sales(P/S) multiple of under 3.2.Before you buy Amazon stock, take the time to learn these three things you might not have known about this business.Up-and-coming revenue driverInvestors know Amazon as an e-commerce and cloud-computing powerhouse. That's certainly the case, as these areas produce the bulk of the company's revenue.But there's an under-the-radar segment that deserves some attention. I'm talking about digital advertising. Amazon displays ads on its popular website, which had 4.3 billion visitors in March, and through the Prime Video streaming service, for example.There are a lot of eyeballs on these two services, creating the perfect monetization opportunity. This allowed Amazon to bring in $14.7 billion of ad revenue in the fourth quarter of 2023, almost double the amount in the same three-month period three years ago.The rise of this segment in the recent past is truly remarkable, and it points to how Amazon is able to add adjacent business lines in short order. Amazon has become so successful in the advertising space that onlyAlphabetandMeta Platformsare ahead of it when it comes tomarket sharein the U.S.Notable competitive strengthsA business doesn't become as dominant as Amazon without developing some powerful competitive strengths along the way. This company has numerous advantages working in its favor.This business generated $575 billion in net sales in 2023. That demonstrates how Amazon benefits from tremendous scale. It sells and ships so many products and produces massive amounts of revenue, so it's able to drive a more efficient logistics network, cutting down delivery costs.Because the main online marketplace, as well as Prime and Amazon Web Services (AWS), collect so much data, the company now has another asset working for it. Businesses that can amass massive amounts of data on users and also glean insights from
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Analysts reset Facebook-parent Meta stock price targets amid post-earnings plunge
| 2024-04-25 |
It covers the following details: Meta Platforms shares tumbled in early Thursday trading, potentially hiving more than $200 billion from its market value, as the Facebook parent cautioned that the cost of AI investments would rise sharply for at least the next two years.The warning, paired with a muted near-term sales outlook and more losses in its Reality Labs division, triggered investor concern that AI investments aren't leading to corresponding revenue gains in the tech space.The Meta move in turn weighed on shares of Big Six peers Microsoft(MSFT)and Alphabet(GOOG), which report after the close of trading on April 25, as well as Nvidia(NVDA)and Amazon(AMZN).Meta(META)posted impressive first-quarter earnings, with early artificial-intelligence investments helping drive engagement on some of its key platforms, such as Instagram, and powering a 27% increase in overall revenue, which came in at $36.5 billion.The group's bottom line of $4.72 a share was also well above Wall Street forecasts, and CEO Mark Zuckerberg struck a bullish tone during his follow-up call with investors.He also cautioned, however, that Meta would transition from it had called a "year of efficiency" to what he deemed a "multiyear investment cycle," which will see big increases in expenses and capital spending before its major AI projects can start generating sales."As we're scaling [capital expenditures] and energy expenses for AI, we'll continue focusing on operating the rest of our company efficiently," Zuckerberg told investors. "But realistically, even with shifting many of our existing resources to focus on AI, we'll still grow our investment envelope meaningfully before we make much revenue from some of these new products."Meta CEO Mark Zuckerberg said the company is transitioning from a 'year of efficiency' to a 'multiyear investment cycle' focus on AI-related technologies.Drew Angerer/Getty Images"I think it's worth calling that out that we've historically seen a lot of volatility in our stock during this phase of our product playbook where we're investing in scaling a new product, but aren't yet monetizing it," he added."We saw this with Reels, Stories as news feed transitioned to mobile and more, and I also expect to see a
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Artificial Intelligence (AI) Robots Are a $38 Billion Market, According to Goldman Sachs. Here's How the "Magnificent Seven" Are Investing in the Technology.
| 2024-04-25 |
It covers the following details: Robotics is an emerging trend in the artificial intelligence (AI) landscape. Technology companies are leveragingroboticsto enhance operations related to warehouse logistics, manufacturing, and more.Earlier this year, investment bankGoldman Sachspublished a report in which it forecast the addressable market for humanoid robots reaching $38 billion by 2035. The interesting part? A year prior, Goldman had initially forecast a market size of $6 billion.As breakthroughs in AI continue at a fast pace, it's not entirely surprising to see such a dramatic increase in projections for a growing market.Let's break down how businesses are integrating robotics into their operations and assess which opportunities may be best for investors looking for some exposure to this area of the AI realm.What are robotics used for?There are many different use cases for robotics. Some of the most common applications include robots in warehouses and fulfillment centers.However, many companies are aggressively pursuing the technology to disrupt the labor force. In the long run, some businesses believe that robotics can assist or even replace human workers in various settings.For example, humanoid robots can be trained to assist with mundane or administrative tasks such as household chores. These bots could also learn to perform more sophisticated jobs in potentially dangerous environments.Image source: Getty Images.What companies are investing in robotics?Two of the earliest pioneers of robotics are e-commerce specialistsAlibabaandAmazon(NASDAQ: AMZN). Both companies leverage robotics in their warehouses. Essentially, complementing human labor with robots can lead to efficiencies in fulfillment centers. Given the volume of orders that Alibaba and Amazon digest on a daily basis, warehouse automation can lead to significant financial benefits at scale.Another company that is heavily investing in humanoid robotics isTesla(NASDAQ: TSLA). The company has been open about its ambitions in robotics, and how the technology can enhance its manufacturing capabilities.The long-term plan is to implement Tesla's bots, dubbedOptimus, into the company's factories. Specifically, Tesla is looking to facilitate human workers along the assembly line for its vehicles. Given the use cases explored so far, it's clear that robotics could lead to a major paradigm shift in the labor
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2 Roaring Growth Stocks to Hold for the Next 20 Years
| 2024-04-25 |
It covers the following details: Most investors know the potential benefits of leaving their winning stocks alone. While stocks can only fall to zero, there's no hard ceiling on how high a stock can climb. The growth in a long-term winner can often dwarf losses elsewhere in a portfolio.Billionaire investor Warren Buffett put it well in 2023 in a letter toBerkshire Hathawayshareholders: "The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders" for your returns.It therefore makes sense to look at the universe of highly successful stocks as fertile ground for your next stock buy. Among those rallying investments with plenty of room to run,Microsoft(NASDAQ: MSFT)andCostco(NASDAQ: COST)belong near the top of your watch list.Software is kingMicrosoft is already the biggest of the "Magnificent Seven" stocks -- and the world's largest public company -- but the tech giant could continue its remarkable growth streak over the next few decades. Consider just the enterprise software services segment that's anchored by its Azure platform. Microsoft has a strong foothold in this niche, with sales expanding 28% in the most recent quarter. That's better than the resultsAmazonachieved in the same period with its AWS platform.Both companies are poised to capitalize on the trend of more businesses migrating their digital operations onto the cloud over the next several decades. And thanks to switching costs and efficiencies of scale, this is an example of where winners like Microsoft can just keep on winning. Look for Azure contracts to keep growing in length and in the size of their annual revenue commitments. It's a highly profitable business, too, as you can tell from Microsoft's blazing 44% profit margin.Wall Street is bullish about the company in the short term, with most Wall Street pros looking for sales to rise 15% when the software giant reports its fiscal 2024 Q3 earnings in late April. That would be a 15% increase for a company that already generated a record $227 billion in trailing-12-month revenues. More growth in cloud services, in addition to other areas like cybersecurity, video games, and consumer tech, will pave the way for Microsoft to set sales records well past
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S&P Global first-quarter profit beats estimates on strong product demand
| 2024-04-25 |
It covers the following details: (Reuters) - S&P Global on Thursday beat Street estimates for its first-quarter profit, as hopes of a "soft landing" spurred investors to spend more on data and analytics productsWith growing expectations of the U.S. Federal Reserve avoiding a recession, investors are increasingly spending more on analytics and data-related products. This trend bodes well for companies like S&P Global who provide such offerings.Revenue from S&P's Ratings segment, which provides credit ratings, research and analytics to investors, jumped 29% to $1.06 billion in the quarter from a year earlier. It helped the company post its record quarterly revenue of $3.49 billion.The company reported an adjusted diluted profit of $4.01 per share for the three months ended March 31, compared with analysts' expectations of $3.66 per share.The New York-based firm also raised its full-year revenue growth as well as adjusted profit forecast on growing optimism of a rebound in the economy and increased confidence in strong demand for its services.The company now forecasts a full-year adjusted profit of $13.85 to $14.10 per share, compared with its earlier expectations of $13.75 to $14.00 per share.It expects its revenue growth for 2024 to be between 6% to 8%, compared with 5.5% to 7.5% it forecast earlier.(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Vijay Kishore)
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Is Coca-Cola a No-Brainer Dividend Stock to Buy While It's Below $65?
| 2024-04-25 |
It covers the following details: With its popular drinks being sold in 200 countries across the world,Coca-Cola(NYSE: KO)is without a doubt one of the strongest and most widely recognized brands on Earth. The business has been around since the late 1800s, showcasing just how durable demand is over long periods of time.The average investor might have their eyes on this beverage stock because Warren Buffett-ledBerkshire Hathawayis alarge shareholder. The Oracle of Omaha's track record speaks for itself.But is Coca-Cola a no-brainerdividend stockfor you to buy below $65? Let's take a closer look.Dominating the industryIn 2023, the business raked in $45.8 billion in revenue. It has 46% market share in the non-alcoholic, ready-to-drink (NARTD) category in the U.S., well ahead of smaller rivalPepsiCo.There's no question that the key ingredient to Coca-Cola's success is the brand. Consumers can get soft drinks from an unlimited number of companies, but this one has been around for such a long time, consistently delivering for its end users and their cravings. A powerful brand that resonates with consumers leads to tremendous loyalty.This results in steady demand throughout economic booms and downturns. Revenue held up well throughout the Great Recession. I believe that shows that even when times get tough, people will still buy these beverages.Investors should appreciate Coca-Cola's ability to register consistent profitability. Itsgross margin and operating marginhave averaged a phenomenal 60% and 26%, respectively, in the past decade.The business generates tons of free cash flow, to the tune of $9.7 billion in 2023. Even after investing in capital expenditures, there are a lot of resources left to fund dividends. The current 3.2% yield is healthy. But even more impressive, Coca-Cola has increased its annual dividend payout in 62 straight years.I see no reason to believe this trend won't continue. Investors who care most about generating income from their investment can do a lot worse than buy Coca-Cola shares.Can the stock
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Is This 1 Small Chip Stock a Top Bet on the Future of AI?
| 2024-04-25 |
It covers the following details: As interest rates increased and made the purchase of new vehicles more prohibitive in the last year, companies specializing in electric vehicles (EVs) have taken it on the chin in recent months. That includes tinyAehr Test Systems(NASDAQ: AEHR), a specialist that makes equipment used in production of silicon carbide (SiC) chips for high-voltage power devices -- including in EV motors and EV charging stations.Much has already been said about the outlook for EVs, which may just be going through some growing pains. Aehr itself predicts a rebound in sales in the current quarter (spring 2024). However, in the next couple of years, a new growth market may emerge for the tiny company: artificial intelligence (AI) systems.A miss on earnings, but the future potential is still thereAehr just whiffed on its third-quarter fiscal 2024 (the three months ended in January 2024) earnings report. Customers pushed back delivery of SiC test and burn-in equipment until later this year due to current excess supply of chips for the auto industry. Aehr's test equipment helps weed out bad SiC chips. The machines also do burn-in, which "ages" the SiC chips by running electric current through them for a fixed period of time -- a necessary step unique to SiC that helps with performance of these high-power devices once they get installed into EVs.The companypreviously anticipated $75 million to $85 million in revenuein fiscal 2024 but lowered its guidance to at least $65 million. That's roughly in line with sales in fiscal 2023, as top customers likeOnsemilap the heavy spending they did on Aehr equipment the last couple of years in preparation for their SiC chip production.The good news for Aehr is that it appears it will remain profitable even during the EV downturn. It expects generally accepted accounting principles (GAAP) net income to be at least $11 million for fiscal 2024.AEHR Revenue (TTM) ChartAehr has been working to diversify its customer base. The current auto industry volatility put a damper on some of that progress. However, AI could do much to help Aehr supercharge these efforts. I wrote about the promise of silicon phot
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‘It’s a bull market’: Billionaire investor Ken Fisher says the bears are getting 2 things wrong
| 2024-04-25 |
It covers the following details: ‘It’s a bull market’: Billionaire investor Ken Fisher says the bears are getting 2 things wrongAfter a strong start to the year, stocks seem to have cooled off recently. But according to investing legend Ken Fisher, this is no time to turn bearish.During a discussion on Fox Business, the billionaire founder of Fisher Investments shared his insights on why the recent dip in the stock market is not a significant worry.Don't missCommercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors canbecome the landlord of Walmart, Whole Foods or KrogerCost-of-living in America is still out of control —use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or saysThese 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes.Here's how“It is a bull market,”he stated. “The reality is that we've been, for the last three weeks, more or less straight off the top and there's your legendary saying that bull markets die with a whimper not with bang, traditional bear markets that are then accompanied by recession of a slow, steady start at the beginning, not a steep plunge.”Fisher describes the recent pullback as “a steep plunge off the top.” Instead of signaling the beginning of a bear market, he views it as “an attempt at a correction.”One of Fisher's points is that some Americans are overly focused on domestic markets; he recommends expanding their view internationally. This broader perspective can challenge two beliefs that have led people to adopt a bearish outlook.What pessimists are missingThe first belief is about tech.“This concept that so many people have wrongly had that the market was only about the“Magnificent Seven”or the “Fab Four” or whatever you want, is just wrong when you look at how many countries around the world that have nothing to do with tech have had all time global highs this year,” Fisher said.The tech sector has indeed been a focus for many investors, particularly due to the exceptional performance of a group of mega-cap tech giants last year nicknamed the “Magnificent Seven.” This elite group includes
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Stock Market Today: Stocks tumble as GDP slows with inflation spike; Meta plunges
| 2024-04-25 |
It covers the following details: Updated at 4:22 PM EDT by Rob LenihanStocks finish lower Thursday, as investors counted the cost of a big slump in Meta Platforms and a first quarter GDP report that showed slowing growth and faster-than-expected inflation pressures.The Dow Jones Industrial Average lost 375 points, or 0.98%, 38,085.73, while S&P 500 dropped 23 points, or 0.46%, 5,048.42, while the tech-heavy Nasdaq fell 100 points, or 0.64%, to 15,611.76.“The economy will likely decelerate further in the following quarters as consumers are likely near the end of their spending splurge,” said Jeffrey Roach, chief economist for LPL Financial.“Savings rates are falling as sticky inflation puts greater pressure on the consumer," he added. "We should expect inflation will ease throughout this year as aggregate demand slows, although the path to the Fed’s 2% target still looks a long ways off.”Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said “this report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting.”"The Fed wants to see inflation start coming down in a persistent manner, but the market wants to see economic growth and corporate profits increasing, so if neither are headed in the right direction then that’s going to be bad news for markets," he added.Zaccarelli said he was looking ahead to Friday’s Personal Consumption Expenditures Price Index numbers because “slowing inflation is the number one issue for the Fed and the rate cut (or even rate increase) debate has been heating up and that’s what’s injected so much uncertainty into bond and stock markets lately.”Updated at 12:45 PM EDTGoogle on DeckGoogle parent Alphabet will posted first quarter earnings after the close of trading, with analysts looking for a bottom line of $1.51 per share on revenues of $78.6 billion.The group's capex plans, which were seen rising "significantly" this year, are likely to be in sharp focus following Meta's warnings of a "multi-year" AI investment
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Should You Buy the Dip on Super Micro Computer Stock?
| 2024-04-25 |
It covers the following details: Super Micro Computer(NASDAQ: SMCI)has had a tremendous year, as the stock has increased around 160%. But it's well off its all-time highs set just over a month ago. In early March, Super Micro Computer hit an intra-day high of $1,229, a far cry from the $700 mark it trades at now.Many investors may wonder if it's time to get back into Supermicro's stock, especially after the $200 per share drop it experienced on April 19.Supermicro's recent tumble occurred for a ridiculous reasonSupermicro has had an amazing year thanks to the business it's operating in. It's a leader in the highly customizable computing server industry, which is experiencing a boom because of artificial intelligence (AI). While there are many competitors in this field, few offer the customizability that Supermicro does, as its product lines allow customers to specify their computing load sizes and specialty. So, whether a client wants to dedicate their server to running large workload AI models or smaller engineering simulation workloads, Supermicro has them covered.But none of that explains why the stock has dropped so aggressively as of late, as its business is doing fantastic. In fact, management expects revenue to grow at a 219% pace in the third quarter of fiscal year 2024 (ended March 31).We'll find out more on April 30, but that's all investors know right now. And therein lies the problem.The last time Supermicro announced its earnings report date, it pre-reported earnings. Companies usually elect to pre-report earnings if there is significant news that could drastically move the stock -- whether good or bad. The second-quarter report was full of great news and included Supermicro exceeding management's guidance of 50% to 61% growth drastically, as revenue rose 103%.The Q3 earnings announcement did not hint at results, so investors can only assume the results were in line with expectations. This is a problem, as the stock was trading in an area that required an earnings beat.The stock is the most attractive it has been in monthsBecause Supermicro is a profitable business, we'll use its price-to-earnings (P/E) ratio to value the company
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The Fed May Keep Rates Higher for Longer – Here's What It Could Mean for Your Stocks
| 2024-04-25 |
It covers the following details: Recent data has shown that inflation is still far from the Federal Reserve's 2% target, meaning interest rates could stay higher for longer than investors had expected. In this video, I discuss the latest expectations, how they could affect stocks, and three specific types of stocks that could be big winners once rates finally start to fall.*Stock prices used were the afternoon prices of April 23, 2024. The video was published on April 23, 2024.Don’t miss this second chance at a potentially lucrative opportunityEver feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.On rare occasions, our expert team of analysts issues a“Double Down” stockrecommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:Amazon:if you invested $1,000 when we doubled down in 2010,you’d have $20,221!*Apple:if you invested $1,000 when we doubled down in 2008,you’d have $31,494!*Netflix:if you invested $1,000 when we doubled down in 2004,you’d have $311,576!*Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.See 3 “Double Down” stocks »*Stock Advisor returns as of April 22, 2024Matt Frankelhas positions in Vanguard Small-Cap Value ETF and Vanguard Specialized Funds-Vanguard Real Estate ETF. The Motley Fool has positions in and recommends Vanguard Specialized Funds-Vanguard Real Estate ETF and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool has adisclosure policy.Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir link, they will earn some extra money that supports
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Jefferies CEO promises he’s still ‘extremely bullish’ despite selling $65 million in stock to buy himself a luxury yacht from a client
| 2024-04-25 |
It covers the following details: Jefferies' boss Richard Handler is not your average investment banking CEO: He’s a minorInstagram celebritywho tells his fans toprotect their work-life balance—and he’s just taken a leaf out of his own book by splashing out on a “gift to himself” that he can enjoy off duty with his family.The 62-year-old, who joined Jefferies in 1990 as a trader and salesman, has sold $65 million of his company stock to buy himself a luxury yacht.Handler sold 1.5 million shares, or 7% of his holdings, to facilitate the purchase, marking the first time he has sold shares in Jefferies in the 34 years he’s been at the bank, other than for charitable or tax purposes."My sale of shares today was a gift to myself and my family, and I do not intend to sell any further shares," Handler said ina statement. "I remain extremely bullish on Jefferies."Proceeds from Wednesday’s sale are being used to buy a personal boat and pay tax obligations, Jefferies echoed, while adding that following the transaction, Handler will still own about 19.25 million Jefferies shares.About 70% of the CEO’s pay has been in the form of company shares, the company added.According to theFinancial Times,Handler is buying the 164ft yacht from Tilman Fertitta—the hospitality billionaire, owner of the NBA’s Houston Rockets, and a longtime Jefferies client.It’s not the first time the duo have done business together: The two men have raised four special purpose acquisition companies together under the name Landcadia Holdings.Fertitta has even described Handler as one of his closest friends and has credited the banker with building a “juggernaut” that can go toe-to-toe with more established rivals.Fortunehas contacted Jefferies for comment.You’re in charge of your work-life balanceHandler recently encouraged his 48,000-strongInstagramfollowing to “take responsibility” for their life choices, including creating boundaries with work to avoid burnout.“There are always times when sacrifices must be made and sometimes there are periods of intensity when you have absolutely no choice, but surprise, surprise,
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Nasdaq's revenue beats on strong demand for fintech products
| 2024-04-25 |
It covers the following details: By Manya Saini and Laura Matthews(Reuters) -Nasdaq beat estimates for first-quarter revenue on Thursday, driven by strong demand for its financial technology products used by traders and investors to navigate the capital markets.Revenue from its financial technology unit surged 71% to $392 million in the first quarter, while revenue from its index business jumped 53% to $168 million."Our performance underscores the durability of our business model and our ability to deliver growth across uncertain environments," said Adena Friedman, chief executive officer, at Nasdaq on an analysts' call.Nasdaq's solutions business revenue rose 35% in the quarter, owing to the strong growth across its index and financial technology products. For market services, however, it fell 9% to $237 million, driven in part by declines in revenue from U.S. equity derivatives because of lower volatility, and U.S. cash equities.Meanwhile, revenue in the capital access platforms division rose 15%, also owing to the strong performance of the index business.The transatlantic exchange operator has expanded its business beyond trading and listing to create a more steady and sustainable source of revenue by offering products that focus on anti-financial crime and compliance.Nasdaq, like its peers, has been on an acquisition spree to diversify its portfolio of technology and intellectual property after regulations in 2005 opened the equities trading market up to competition from brokers.Net revenue in the first quarter jumped 22% to $1.12 billion. Analysts on average had expected $1.11 billion, according to LSEG data.The company's adjusted profit of 63 cents per share in the three months ended March 31 missed analysts' expectations of 65 cents.The push towards products and solutions helped offset a deceleration in trading activity in U.S. equities as markets took a breather following a period of prolonged volatility.U.S. equity matched shares volumes declined to 116.7 billion in the first quarter from 121.8 billion a year earlier. U.S. equity options volumes fell to 773 million contracts from 811 million contracts.Some of the biggest names that listed their shares
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A Few Years From Now, You'll Wish You'd Bought This High-Growth Stock
| 2024-04-25 |
It covers the following details: Every investor wants to buy stocks that do well over time, helping to build wealth for the future. Enough of these successful investments over decades can help make big financial dreams a reality. As fun as it is to look back with fondness at previous stock purchases, there's also sometimes regret at the ones that got away. No investor gets everything right, and there are inevitably decisions we look back on that make us think, "I should have bought that stock."However, until crystal balls are invented, the best investors can do is look at a business's fundamentals and prospects to make the most informed decision possible. Following that logic, I would putCrowdStrike(NASDAQ: CRWD)at the top of the list.Cybersecurity is a growing industry that is already indispensableMissing out on a stock that crushes the market over time can happen for several reasons. For example, investors can miss the fact that the company was at the forefront of a growing, important secular trend. When it comes to CrowdStrike, this is certainly the case. According to the company, the total addressable market for artificial intelligence (AI)-native security platforms is $100 billion. This is expected to increase to $225 billion by 2028.Total addressable market numbers should always be taken with a grain of salt, especially when they come from the company itself. In this case, the actual numbers matter less than the direction of the trend. Considering how important it is to protect againstcybersecuritythreats, it's reasonable to assume this market will continue to grow.Growing and improving profitabilityOne of the most impressive aspects of CrowdStrike's business is its long track record of consistent growth in essentially all aspects of its business. Since itcame publicin June 2019, CrowdStrike averaged year-over-year quarterly revenue growth of 67%. More recently this growth slowed, but only to a still-impressive 33% in the most recently reported quarter.The slowing growth isn't a concern because of how cash generation and profitability progressed over the same period. Consider the improvement over the last year in operating income and net income.MetricQ4 2023Q4 2024Operating income (loss)($62 million)$30 millionNet income (loss)
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Lutnick Lands Wall Street Giants for His Futures Fight With CME
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Howard Lutnick is lining up some of Wall Street’s biggest power players for a fresh challenge to the behemoth of futures trading and interest-rate derivatives, CME Group Inc.Most Read from BloombergUS Economy Slows and Inflation Jumps, Damping Soft-Landing HopesMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsZuckerberg Asks for Patience as Meta’s AI Push Spooks MarketHow to Get a Me
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Where Will Rivian Stock Be in 5 Years?
| 2024-04-25 |
It covers the following details: Down by 89% from its initial public offering price of $78 in November 2021,RivianAutomotive's(NASDAQ: RIVN)stock performance has been catastrophic for its early investors. While the electric vehicle (EV) maker has quickly built a leading brand with its trucks and SUVs, market weakness has soured investor interest in this once-exciting industry.Will Rivian's future be brighter than its past? Let's dig deeper to find out.What is going wrong with Rivian?Rivian's stock has faced multiple challenges during its short history on the public markets. The first was overvaluation. In late 2021 the company'smarket capof over $100 billion put it ahead of major automakers likeGeneral MotorsandFord Motor Companydespite having little production volume or revenue. Unsurprisingly, that absurd situation wasn't going to last forever.More recently, Rivian's problems have had more to do with macroeconomic factors largely outside its control. High interest rates mean consumers are less likely to spend money on big-ticket items like cars -- especially while inflation eats into their spending power. Most importantly, the much-hypedelectric vehicle(EV) industry is not meeting analysts' optimistic projections.Harvard Business Reviewsuggests that most buyers aren't ready for all-electric vehicles. While early adopters were willing to take risks on the new technology, it may be years or even decades for most consumers to be comfortable making the switch.Research from GBK Collective finds that consumers are significantly more interested in hybrids than their fully electric counterparts. This could create an off-ramp for legacy automakers, while crushing the market for pure-play EV makers like Rivian that lack the manufacturing expertise and supply chains to quickly pivot to this side of the market.How is Rivian's business performing?Despite industry weakness, Rivian's 2023 revenue soared 167% to $4.43 billion with a ramp-up in sales of its all-electric trucks and SUVs. The problem is that the company is in an extremely early stage of maturity, and the revenue earned from selling its vehicles doesn't even defray the costs of
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Access a complimentary edition of our monthly China Monthly Market Update report
| 2024-04-25 |
It covers the following details: As part of GlobalData's coverage of Auto China 2024, we are offering a complimentary edition of our China Automotive Monthly Market Update report. This report provides up-to-date analysis of current demand and assessments of OEM strengths and weakness in China, helping you to understand and track the latest market changes.CN AMMU - Report - March 2024Download"Access a complimentary edition of our monthly China Monthly Market Update report" was originally created and published byJust Auto, a GlobalData owned brand.The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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3 Absurdly Cheap Stocks to Buy and Hold for Years
| 2024-04-25 |
It covers the following details: The stock market has been showing some softness of late. And while that may be discouraging to investors, a pullback can make for a great buying opportunity, especially when you're holding on for the long haul. There is no shortage of deals out there for investors to consider.Three stocks trading at incredibly cheap valuations today areCVS Health(NYSE: CVS),Carnival Corp.(NYSE: CCL), andToronto-Dominion Bank(NYSE: TD). Here's a closer look at why you'll want to consider loading up on these stocks right now.CVS HealthCVS Health has evolved over the years from a pharmacy retailer into a much broader healthcare business. And the company continues to focus on getting bigger and more diverse. Last year, it acquired home health company Signify Health as a way to get deeper into healthcare and help meet the growing needs of seniors through in-home care options.And in 2023, the company reported a profit of $8.3 billion on revenue of nearly $358 billion. This truly massive business is going to get bigger in the future. And while its margins may not be huge, there's enough there to fund the company's dividend, which yields 3.8%, and for CVS to pursue growth opportunities. Its free cash flow last year totaled $10.4 billion and CVS paid out just $3.1 billion in dividends.At a dirt cheapforward price-to-earnings multiple(based on analyst estimates) of just 8.4, shares of CVS Health today could look like a steal in a few years.Carnival Corp.Another good long-term option for investors to consider is cruise line operator Carnival Corp. If not for the shutdowns during the pandemic, the company wouldn't have needed to accumulate so much debt and its share price would likely be much higher today.The good news, however, is that Carnival's financials are improving and the company is in a position to pay down its debt, particularly as demand for cruises remains resilient. In March, the company reported record revenue and booking levels for its fiscal first quarter, ended Feb. 29. Revenue during the period rose by 22% year over year to $5.4 billion, and the company recorded an operating profit of $276 million (
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History Says the Nasdaq Will Roar Higher This Year. My Top Growth Stock to Buy Before It Does.
| 2024-04-25 |
It covers the following details: TheNasdaqclimbed to a new record high this year as investors piled into growth stocks, particularly those in the area of artificial intelligence (AI). This confirmed that the index was in a bull market, an investing environment favoring growth companies. And this momentum may just be getting started for two reasons.First, the AI market is in its early days, with analysts predicting a double-digit compound annual growth rate over the next few years and a market surpassing $1 trillion by 2030. Many companies aim to get in on the AI story to either streamline their own operations or sell AI products and services to others.The desired result? A boost in earnings. Investors today and in the coming years want to get in on these growth stories, too, and that could lift these companies' shares, along with the Nasdaq.Second, if history is a guide, the Nasdaq will roar higher this year. Since 2009, in the three growth periods following years of declines, the Nasdaq has advanced for at least two years. And in that second year, it scored double-digit gains.This year, the Nasdaq has pared its earlier increase and is now up about 4.5% year to date. If history is right, the index could soar from this level. Here's my top growth stock to buy before it does.Image source: Getty Images.Investing in AIAs I mentioned earlier, AI has been the key to stock market gains in recent times, and this trend is likely to continue, thanks to the long-term market outlook. Companies have a lot to gain byinvesting in AItoday. This is terrific news for companies that produce the tools needed to unlock the power of this new technology. I'm talking about chip designers and makers of various key elements, like servers or workstations.Many of these companies are set to benefit, but one that should score the biggest win is top chip designerNvidia(NASDAQ: NVDA). The company's graphics processing units (GPU) have become the gold standard for training and inferencing, key tasks that power AI models so they can do their jobs of solving complex problems.Nvidia's GPUs are mainly used by the video game industry. But seeing that their power to simultaneously process many tasks could be useful in other areas, Nvid
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Dave Ramsey cuts through Colorado man's 'conspiracy' theory about a housing market crash. Here are the facts
| 2024-04-25 |
It covers the following details: Dave Ramsey cuts through Colorado man's 'conspiracy' theory about a housing market crash. Here are the factsOnline misinformation and economic anxiety is a dangerous combination. Stuck deep in the rabbit hole, Shane from Denver, Colorado, and his wife are concerned thehousing marketin their city is due for a crash in “six months or so.”On a recentepisodeof “The Ramsey Show,” Shane described how he and his wife arrived at their conviction based on online research, citing doom and gloom media headlines.Don't missCommercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors canbecome the landlord of Walmart, Whole Foods or KrogerCost-of-living in America is still out of control —use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or saysThese 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes.Here's how“You guys need to get off the internet,” Ramsey pushed back.However, the couple isn’t the only one experiencing a gap between economic sentiment and market reality.Sentiment gapEconomic indicators, such as gross domestic product, growth and low unemployment usually boostconsumer sentiment. However, economists have noticed a dislocation in this trend in recent years.According to the St. Louis Federal Reserve,consumer sentiment has slumpedin recent years and hit a record low in 2022, below even levels seen during the 2008 financial crisis. This detachment is “puzzling” for economists, according to the bank, while also pointing toward “negative economic news on social media.”Shane’s situation highlights this disparity. He explained his home was purchased for $500,000 in 2021. Just a few years later, the house is now estimated to be worth $700,000. The family has also managed toaggressively pay downthemortgage, so they only owe $280,000 on the loan. Shane says they have no other debt and $100,000 in savings.“You’re killing it dude!” Ramsey excl
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Dow sees quarterly sales below estimates over weak consumer durables demand
| 2024-04-25 |
It covers the following details: By Sourasis Bose(Reuters) -Chemicals maker Dow forecast second-quarter sales below expectations on Thursday amid weak demand for consumer durables and continuing uncertainty over the health of European economies.Retail sales in Germany, Europe's largest economy, fell unexpectedly in February, while the continent's manufacturing activity continued its decline during the first quarter.Consumer durables demand continues to be muted but the company expects margin expansion in Europe in its industrial intermediates and infrastructure segment, Jeffrey Tate, Dow's chief financial officer, said on a call with analysts.The Midland, Michigan-based company expects second-quarter sales of about $11 billion, up from the first quarter but below Wall Street estimates of $11.64 billion, according to LSEG data."After six quarters of negative earnings revisions, we have now reached a point in the cycle where Dow's market outlook has become marginally more constructive," said Vertical Research Partners analyst Kevin McCarthy."However, a relative dearth of prospective free-cash-flow remains a concern among some investors."Shares of Dow were down 1.5% amid broader market declines.Dow's net sales declined by 9% to $10.77 billion in the first quarter, hurt by a 10% fall in local prices.Chemical firms had raised their prices in 2022 to tackle inflation after Russia's invasion of Ukraine tightened feedstock supplies.However, an uptick in volumes and lower costs of feedstock such as natural gas helped the company top first-quarter profit estimates.Dow said volumes rose 1%, supported by all regions except Europe, the Middle East, Africa and India."In the near-term, demand in key end-markets from packaging and mobility to energy applications are trending sequentially higher," Dow Chief Executive Jim Fitterling said.The company reported operating earnings per share of 56 cents for the quarter ended March 31, compared with the average analyst estimate of 45 cents.(Reporting by Sourasis Bose in Bengaluru; Editing by Maju Samuel)
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These 3 High-Yield Dividend Stocks Are Set to Soar in 2024 and Beyond
| 2024-04-25 |
It covers the following details: Theworld needs to invest trillions of dollarsintobuilding new renewable energy-generating capacityover the coming decades. Thatshould drive supercharged growth for companies focused on building and operating renewable energy assets.However, despite that growth outlook, manyrenewable energy stockshave lost significant value over the past few years. The main culprit is rising interest rates, which have driven up theircost of capital, making it more expensive for them to fund their growth.That headwind should fade as the Federal Reserve starts reducing interest rates, which could come later this year. That upside catalyst, along with the sector's strong growth prospects, positionsNextEra Energy Partners(NYSE: NEP),Brookfield Renewable(NYSE: BEPC)(NYSE: BEP), andClearway Energy(NYSE: CWEN)(NYSE: CWEN.A)to soar later this year and beyond.Setting a strategy in motion to reduce the impact of higher ratesShares of NextEra Energy Partners have lost roughly two-thirds of their value from their peak in 2022. That sell-off has driven the company's dividend yield into the double digits.The main issue has beenthe impact thatrising interest rateshave hadon the company's ability to obtain capital at an attractive rate to refinance existing funding and finance new investments.NextEra Energy Partners is working to offset this headwind by selling off its natural gas pipeline assets to pay off the convertible equity portfolio financing (CEPF) it used to make acquisitions. It has also slowed its dividend growth outlook to a rate it can support with internally funded organic growth (5%-8% annually through 2026 with a 6% target, down from 12%-15% annually).The company has already made solid progress on its plan. It sold one of its natural gas pipeline businesses late last year and will use the proceeds to fund CEPF buyouts through June 2025. It also plans to sell its remaining gas pipeline operations next year.Meanwhile, it has secured over 1.1 gigawatts (GW) of wind repowering projects through 2026, putting it close to its target of 1.3 GW.The execution of its strategy,combined withthe eventual decline in
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Wall Street stocks fall as weak GDP growth spreads rate-cut gloom
| 2024-04-25 |
It covers the following details: By Chibuike OguhNEW YORK (Reuters) -Wall Street stocks closed lower on Thursday as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms.Data on Thursday showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year.Disappointing results from Meta, whose shares plunged nearly 11%, also weighed on market sentiment. Three other Magnificent Seven stocks, including Alphabet, Amazon.com and Microsoft, finished lower.However, shares of Alphabet and Microsoft were advancing in extended hours trading after both companies reported quarterly results that beat Wall Street estimates. Intel forecast second-quarter revenue and profit below market estimates, sending its shares down 8% in extended hours trading.Equities in the communications sector, dragged down by Meta, were the biggest losers in S&P 500. Other categories of stocks that lost ground are in healthcare, real estate, financials, consumer staples, and consumer discretionary sectors."The GDP numbers definitely puts a ding in the paradigm that markets were hanging onto for equities in terms of high growth; and if you don't have high growth that will translate to lower-than-expected earnings," said James St. Aubin, chief investment officer at Sierra Mutual Funds in California.The Dow Jones Industrial Average fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76.Money markets are pricing in just about 36 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year, according to LSEG data.Separately, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to still tight labor market conditions. The
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Explainer-Where are Wall Street's analyst notes on Trump's Truth Social?
| 2024-04-25 |
It covers the following details: By Echo WangNEW YORK (Reuters) - Trump Media & Technology Group is one of the most actively traded U.S. stocks, yet Wall Street's equity analysts are staying clear.Shares of the company that operates former U.S. President Donald Trump's social media app Truth Social listed on Nasdaq on March 26. An army of Trump supporters and speculators have snapped up the stock, giving it a market value of about $4.9 billion.Yet there are still no widely distributed analyst notes from brokerages for it, unlike social media peers with smaller valuations that are covered by several brokerages, including Nextdoor, Bumble and Grindr.Here is what happening with the lack of analyst coverage of TMTG and the reasons behind it.ARE THERE NO BROKERAGES COVERING TMTG?No analyst note on the company has surfaced thus far. JPMorgan Chase, Bank of America and Barclays Plc are among the top brokerages that told Reuters they were not covering TMTG. None of them provided a reason.A TMTG spokesperson declined to comment on the lack of equity coverage. "Our focus now, a few weeks after going public, is to build up our platform and continue delivering value to our shareholders," the spokesperson said.WHY ARE THERE NO EQUITY ANALYSTS COVERING TMTG?Most companies like TMTG that go public through a merger with a special purpose acquisition company (SPAC), rather than a traditional initial public offering, struggle to get brokerages to cover them. This is because the banks that operate these brokerages make little to no money on analyst notes. They typically produce them if they have worked on a company's listing, their big institutional clients ask for such coverage, or they hope the company will hire them for other investment banking work such as deal advisory or corporate financings.Few major banks work on SPAC deals, most of which have performed poorly in the stock market and have attracted fierce regulatory scrutiny. Only one brokerage, EF Hutton, advised Digital World, the SPAC that merged with TMTG last month. EF Hutton did not respond to a request for comment on whether the brokerage would provide equity coverage of TMTG in the future.Even by SPAC standards, however, TMTG's shares are snub
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Stocks are sending mixed signals, but investors shouldn't 'lose faith now': Morning Brief
| 2024-04-25 |
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 earningsDisappointing Boeing (BA) earnings drove the Dow to a small loss Wednesday, while a surprisingly positive reaction to Tesla (TSLA) results led that stock to its best day in two years (up 12%), helping the S&P 500 and Nasdaq Composite close in the green.Taking stock of equities as we head toward the end of April, investors are facing mixed messages from Wall Street.After a year that defied recession expectations, the first quarter of 2024 built on last year's strength.This year, the S&P 500 turned in the best first quarter return since 2019, rising 10%. But the stock sell-off this month has made April the worst month since last September.Ryan Detrick, chief market strategist at Carson Group, created a seasonality map from all the election years going back to 1950 that were sitting on gains of at least 5% by the end of March: 1956, 1964, 1972, 1976, and 2012.At first glance, 2024 is marching along to a similar playbook. And, if anything, the bout of April weakness is overdone.There's another reason to think that any short-term rallies will be fleeting, as research from Bank of America shows.The investment bank calculates investors' bullish or bearish bias to "buy the dip" by dividing the average return on positive days by the return on negative days.This indicator spiked higher several times over the pandemic — once to the highest level going back at least 25 years. But now it sits at the lowest level since April 2019."Muted up days [versus] down days this month seem to indicate weakening support from [buy-the-dip] behavior, particularly in the context of price action since the start of the AI wave,"BofA wrote in a recentnote to clients.JPMorgan's positioning intelligence team, however, sees the recent
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Uber Stock Is Up a Phenomenal 120% in 1 Year: But Is Now the Time to Buy?
| 2024-04-25 |
It covers the following details: Uber Technologies(NYSE: UBER)helped spearhead the so-called gig economy, allowing anyone with a car to start making money almost instantly. This disruptive internet enterprise wasn't always a great investment, though, as shares were down 45% exactly three years since they started trading.After really disappointing shareholders during the period after its initial public offering in May 2019, thistransportation-as-a-service stockhas been crushing it more recently, up a phenomenal 120% in the past year alone. Is now the right time to buy Uber?Positive factorsUber's business is exhibiting strong momentum as of late. It ended 2023 reporting $37.3 billion of revenue. That was up 17% year over year, and it was 165% higher than pre-pandemic 2019. The last year's financial results were propelled by $137.9 billion in gross bookings (up 19% year over year), 150 million monthly active users (up 15%), and 9.4 billion trips (up 24%).I find it encouraging how Uber fared during the worst days of the health crisis. Health restrictions limited consumer mobility, which hurt the ride business. But food deliveries saw robust demand. In the fourth quarter, 45% of the company's gross bookings came from the delivery segment, showing its durability.After years of investing aggressively in product development and marketing to grow sales and the user base, Uber is starting to turn the financial corner. It posted $1.1 billion ofoperating incomein 2023, with free cash flow totaling $3.4 billion. Investors will want these trends to continue, particularly as Uber keeps increasing its revenue base.A business of this scale has developed powerfulnetwork effects. As it attracts more consumers, drivers, and restaurants, the platform immediately becomes more valuable for all stakeholders. This protects Uber's competitive position.Negative trendsEven as Uber's business is showing that it's largely on strong footing right now, investors need to know about some less favorable trends. These point to how difficult it can be for a platform company like this to constantly please all of its stakeholders.According to Gridwise,
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Billionaire Bill Ackman Has His Sights on Only 1 "Magnificent Seven" Stock, and It's Not Nvidia
| 2024-04-25 |
It covers the following details: When you look at the stock portfolios of most billionaire hedge fund managers, you'll find plenty of the Magnificent Seven stocks, as well as exposure to some of the most promising AI stocks. But that isn't the case in Bill Ackman's Pershing Square hedge fund's portfolio. In fact, despite having about $10 billion invested in the stock market, there are only seven different stocks in its latest SEC filings, and only one is aMagnificent Seventech stock -- Google parent companyAlphabet(NASDAQ: GOOGL)(NASDAQ: GOOG)As of the latest information, Pershing Square owns more than 13.7 million shares of Alphabet, with a total market value of $1.93 billion. This accounts for about 19% of Pershing's portfolio and makes it the hedge fund's largest investment.Unlike some of the other investments in Ackman's portfolio, he hasn't held Alphabet shares long, adding shares of both Class A and Class C shares to the portfolio in early 2023. Here's a closer look at Alphabet's business and why Ackman might be such a fan.Alphabet in a nutshellAlphabet is best known for its Google subsidiary, which most people know for the Google search engine, as well as other tools like Gmail, Maps, Chrome, and Android. These, and a few other parts of the business, such as YouTube, make up the Google Services segment, which primarily makes its money by selling advertising on its various platforms.The lesser-known part of the business (by most investors) is Google Cloud, the cloud services business. It's a competitor toAmazon(NASDAQ: AMZN)Web Services andMicrosoft's(NASDAQ: MSFT)Azure, and is the number three cloud services provider, with a smaller share than either of those.There are a few other components of Alphabet's business, but the two Google segments produce virtually all of its revenue.A tremendous combination of profitability and growth potentialFirst off, Alphabet is a tremendously profitable business. It generated a net margin of 24% over the past four quarters and produced more than $88 billion in operating income in 2023 alone. The company also has about $111 billion
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Meta stock slides after second quarter outlook disappoints
| 2024-04-25 |
It covers the following details: Meta (META)reportedits first quarter earnings on Wednesday, and while it beat analysts' expectations on the top and bottom lines, a disappointing Q2 forecast sent shares of the social media giant plummeting as much as 14% in early trading Thursday.Meta says it will see second quarter revenue between $36.5 billion and $39 billion, falling short of midpoint estimates of $38.24 billion.In addition to the downbeat Q2 forecast, Meta CFO Susan Li raised the company's full-year total expenses estimate from a range between $94 billion and $99 billion to between $96 billion and $99 billion due to higher infrastructure and legal costs.On the company's earnings call, CEO Mark Zuckerbergsaid, "As we're scaling capex and energy expenses for AI, we'll continue focusing on operating the rest of our company efficiently. But realistically, even with shifting many of our existing resources to focus on AI, we'll still grow our investment envelope meaningfully before we make much revenue from some of these new products."Li said Meta also continues to expect its Reality Labs division to report increased year-over-year operating losses as the company builds out its various AI, AR, and VR efforts."While we are not providing guidance for years beyond 2024, we expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts," Li said in a release.Meta reported earnings per share of $4.71in the quarter on revenue of $36.46 billion. Wall Street was anticipating EPS of $4.30 on revenue of $36.12 billion, according to analysts' estimates compiled by Bloomberg.Meta stock had been on a tear, climbing 131% over the last 12 months and more than39% year to date. That’s far better than chief rival Google (GOOG,GOOGL) which is up 50%in the last 12 months and 13%year to date.While part of Meta’s stock performance has to do with a recovery in the digital advertising market, the company’s stock price also rocketed higher last quarter after the social media company announced it was initiating a $0.50 per share dividend and increased its stock buy
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These 3 Dow Stocks Are Set to Soar in 2024 and Beyond
| 2024-04-25 |
It covers the following details: The venerableDow Jones Industrial Averageappears to be getting left behind in the current bull market. Sure, the Dow is up over the last 12 months. However, its performance significantly lags theS&P 500and the even higher-flying Nasdaq-100.Some Dow Jones Industrial Average members aren't likely to be left behind, though. These three Dow stocks are set to soar in 2024 and beyond.1. AmazonAmazon(NASDAQ: AMZN)is one of three"Magnificent Seven" stocksin the Dow. Its performance over the last 12 months has been worthy of the "magnificent" label, with shares skyrocketing close to 70%.Wall Street thinks Amazon can keep up its winning ways. The consensus 12-month price target for the stock reflects an upside potential of 11%. I share analysts' optimism about Amazon.The company's cost-cutting efforts are paying off. Amazon's earnings jumped to $10.6 billion in the fourth quarter of 2023 from $0.3 billion in the prior-year period. I look for continued bottom-line momentum in the coming quarters.More importantly, Amazon's long-term growth prospects remain strong. Advertising has become an important new growth driver. Amazon plans to launch its Project Kuiper satellites later this year to provide internet service from space. Artificial intelligence (AI) should provide a huge tailwind for Amazon Web Services' cloud platform.2. IntelUntil recent weeks,Intel(NASDAQ: INTC)stood as one of the best-performing Dow stocks over the last 12 months. However, the giant chipmaker'smassive losses in its foundry businessrevealed earlier this month dampened investors' enthusiasm.Analysts still like Intel, though. The average 12-month price target for the stock is nearly 21% higher than the current share price. Although I'm unsure if Intel will hit that target over the next 12 months, I'm bullish about the stock overall.For one thing, Intel expects its foundry business to be highly profitable by 2030. I believe the company's investment in manufacturing semiconductor chips for others is a smart long-term move.I also
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1 Incredible Stock You Can Buy for a Ridiculously Cheap Valuation Right Now
| 2024-04-25 |
It covers the following details: General Motors(NYSE: GM)reported first-quarter results that were significantly better than experts had expected. Plus, the company raised its full-year guidance and gave encouraging updates on its electric vehicle progress and the Cruise automation platform. Despite the excellent results, GM still trades for a single-digit multiple of earnings. Could this be an incredible opportunity hiding in plain sight?*Stock prices used were the afternoon prices of April 23, 2024. The video was published on April 23, 2024.Should you invest $1,000 in General Motors right now?Before you buy stock in General Motors, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and General Motors 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 $505,010!*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 22, 2024Matt Frankelhas positions in General Motors. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has adisclosure policy.Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.1 Incredible Stock You Can Buy for a Ridiculously Cheap Valuation Right Nowwas originally published by The Motley Fool
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This Small-Cap Stock Is Up 140% This Year and Here's Why It Can Go Even Higher
| 2024-04-25 |
It covers the following details: Small-cap stocks can have exciting potential. At low valuations, there may be much more upside for investors than there can be for large tech stocks with market caps in excess of $1 trillion. One red-hot stock of late has beenMind Medicine(NASDAQ: MNMD). Shares of the psychedelic biotech company have jumped by close to 140% already this year. Here's why there may be room for the stock to rise even higher.Promising results from a clinical trial have given investors reason for hopeInvestors have been bullish on Mind Medicine recently because the company has released positive results relating to MM120 (its LSD-based treatment), which has shown effectiveness in reducing anxiety in patients. What's particularly promising is that only a single dose was used without any additional therapeutic intervention.A comparable drug fromJohnson & Johnson, Spravato, normally requires multiple treatments for the first four weeks, which gradually comes down afterward. MM120 has the potential to be a much more efficient treatment, which can result in better outcomes and fewer side effects for patients.Given the potential for MM120, the Food and Drug Administration (FDA) granted it breakthrough therapy designation as a treatment for generalized anxiety disorder. The designation can help speed up the time that a drug comes to market.Why the stock could go higherMind Medicine is moving forward with plans to initiate a phase 3 clinical program involving MM120 in the latter half of this year. It is also meeting with the FDA to discuss its phase 2 results. Any positive news relating to its discussions with the FDA or progress in its phase 3 trials could generate more bullishness and excitement behind the business and its prospects for long-term growth. A big reason for that is that Mind Medicine could establish itself fairly early on as a toppsychedelics company.The market for psychedelic drugs is still fairly small and has some regulatory hurdles. According to analyst estimates from Grand View Research, the global psychedelic drug market was worth roughly $1.6 billion in 2022. But it is growing at a compounded annual growth rate of more than 12%. It's an exciting growth opportunity in the healthcare industry. And given MM120's impressive results, investors eager to get in early could
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Peloton Stock Is Beaten Down Now, but It Could 10X
| 2024-04-25 |
It covers the following details: Peloton Interactive(NASDAQ: PTON)was one of the market's favorite growth stocks during the pandemic. The maker of connected exercise bikes and treadmills flourished as brick-and-mortar gyms closed down, and that growth spurt coincided with the buying frenzy in growth and meme stocks throughout 2020 and 2021.As a result, Peloton's stock hit a record high of $167.42 on Jan. 13, 2021. That equaled a 477% gain from its IPO price of $29 on Sept. 29, 2019. At its peak, Peloton's enterprise value reached $47.2 billion, or 12 times the revenue it would generate in fiscal 2021 (which ended in June 2021). Today, it trades at about $3 with an enterprise value of $2.7 billion, or just 1 times its projected revenue for fiscal 2024.Image source: Peloton.Peloton's stock crashed because it couldn't maintain its momentum after the pandemic waned. Fewer people bought its bikes and treadmills as gyms reopened and cheaper competitors entered the market. A recall for Peloton's treadmills then tarnished its brand, and co-founder and CEO John Foley abruptly stepped down in 2022. Rising interest rates also compressed its valuation and highlighted its ugly losses.Therefore, it's easy to see why investors have abandoned Peloton. But if we take the contrarian view, we can see how its stock might rise tenfold -- which would only bring it slightly back above its IPO price -- if its turnaround efforts pay off.How is Peloton trying to revive its business?Peloton's new CEO, Barry McCarthy, has been trying to stabilize its business by aggressively cutting costs, outsourcing its production to a Taiwanese manufacturer, and selling its products on third-party retailers likeAmazonto expand its presence beyond its first-party website and physical showrooms. McCarthy is also trying to expand Peloton's higher-margin subscription business to curb its dependence on its lower-margin bikes, treadmills, and
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This Artificial Intelligence (AI) Stock Could Soar 70%, According to Wall Street. Time to Buy?
| 2024-04-25 |
It covers the following details: Artificial intelligence (AI) stocks have skyrocketed in recent months, thanks to their potential to transform so many industries. There could be a lot of winners, including companies selling AI tools or using these tools to make their businesses more efficient. Investors who buy shares of these players could score a win, too.Even though many of these AI players have increased in the double and triple digits, some still may have plenty of room to run. We're in the early days of the AI story, so an AI company that's just ramping up its technology and signing on customers, for example, could see its stock climb as revenue starts to take off.This may be the case for an AI stock that Wall Street sees with a favorable eye. This particular player could soar 70% over the coming 12 months, according to the average Wall Street estimate. I'm talking aboutSoundHound AI(NASDAQ: SOUN), a specialist in voice AI that's already climbed nearly 100% this year. Is it time to buy, or is Wall Street too optimistic?Image source: Getty Images.SoundHound's voice technologySoundHound creates the technology powering some of our daily conversations, such as placing an order at a restaurant or interacting vocally with our cars. For example,Hyundaihas integrated the company's voice recognition system in some of its vehicles, offering drivers the ability to ask their cars about the weather, sports, or even how their favorite stock is doing. And just recently, SoundHound said it would go live in 100 White Castle drive-thru lanes by the end of the year.Today, the voice-AI specialist operates mainly in the areas of restaurants and automobiles, but the market opportunity is broad, and SoundHound aims to address areas such as financial, healthcare, and retail industries in the coming years. All of that offers SoundHound a total addressable market of more than $160 billion by 2026.SoundHound isn't the only voice-AI creator around, but it holds some competitive advantages that could help it win over the long run. Its technology, which is protected by more than 100 patents, takes speech and translates it directly into meaning. This makes it faster and more accurate than traditional systems that involve translating speech into text before meaning is determined. The company's
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One Member of Congress Is Going Against the Grain and Selling This Skyrocketing Stock-Split Stock
| 2024-04-25 |
It covers the following details: Over the three previous weeks, Wall Street's major stock indexes have sent a stern reminder to investors that equities don't move up in a straight line. The iconicDow Jones Industrial Average, benchmarkS&P 500, and innovation-poweredNasdaq Compositehave all retraced by at least 5% from their respective record-closing highs.When volatility and uncertainty rear their proverbial heads, both professional and everyday investors have a tendency to seek the safety of time-tested outperformers. While the "FAANG stocks" have been popular for more than a decade, it's stocks enacting splits that investors --includingmembers of Congress -- have really flocked to in recent years.Image source: Getty Images.Investors have gravitated to stock-split stocksA "stock split" is an event that allows a publicly traded company to cosmetically alter its share price and outstanding share count by the same factor. I say "cosmetically," because stock splits have no effect on a company's underlying market cap or its operations.A forward-stock split is used by public companies to make their shares more nominally affordable for everyday investors. This can be especially useful for investors who don't have access to fractional-share purchases. Meanwhile, a reverse-stock split increases a company's nominal share price to ensure continued listing on a major stock exchange.Though there have been instances in the past where companies enacting a reverse-stock split have gone on to make their shareholders richer (e.g.,Booking Holdings), most investors are focused on forward splits. Companies whose share price is rocketing higher are typically out-innovating and out-executing their competition. In other words, they're just the type of businesses we'd expect to increase in value over time.Since the midpoint of 2021,nearly a half-dozen prominent companies have completed a forward split, includingAmazon,Alphabet,Nvidia, and evenWalmart, which occurred earlier this year.Generally, when an outperforming company announces that it'll be joining this elite group of stock-split stocks, investors pile in. But that hasn't been the case for one of Congress' most-active traders when it comes to a skyrocketing stock-split stock.This history-making stock-
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This Elite Dividend Stock Continues to Produce Powerful Growth
| 2024-04-25 |
It covers the following details: NextEra Energy(NYSE: NEE)has an elitetrackrecord of paying dividends. The clean energy-focused utility has increased its payment every year for three decades. It has delivered supercharged growth over the past10years, increasing its payout at an 11% compound annual rate. The company currently offers a 3.1%-yielding dividend, more than double that of theS&P 500's 1.4%.The dividend growth machine is showing no signs of stopping. Theutilityhas gotten off to a strong start, keeping it on track to deliver on its long-term growth outlook.The powerful momentumcontinuesNextEra Energy's adjusted earnings grew by 8.3% per share in the first quarter. That's a strong rate for a utility. The company benefited from solid operational and financial performance at its regulatedelectric utilityin Florida (FPL) and energy resources segment.FPL generated nearly $1.2 billion, or $0.57 per share, of net income in the first quarter, up from almost $1.1 billion, or $0.53 per share, in the year-ago period. The country's largest utility grew by continuing to invest in its business. FPL's capital spending was $2.3 billion in the period. That included spendingto placemore than 1.6 gigawatts (GW) of cost-effectivesolar energyinto service in the period.It owns over 6.4 GW of solar capacity, the largest utility-owned solar energy portfolioin the country.FPL also benefited from strong customer growth, adding more than 100,000 over the past year. The first quarter was its strongest period of customer growth in more than 15 years.Meanwhile, NextEra's energy resources segment generated $828 million, or $0.40 per share, of adjusted earnings in the first quarter, up from $732 million, or $0.36 per share, in the year-ago period. The main driver was new investments added to the portfolio over the past year, including about 1.2 GW ofrenewableenergyprojects completed since January.The power to continue growingNextEra Energy's strong showing in the first quarter gave it the confidence to reaffirm
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Toyota pilots EV pickup trucks in key Thai market
| 2024-04-25 |
It covers the following details: By Chayut SetboonsarngPATTAYA, Thailand (Reuters) - Toyota launched a public transport pilot on Thursday with nine fully electric Hilux Revo pickup trucks in Thailand, a key Southeast Asian battleground for electric vehicles where Chinese players are challenging the dominance of Japanese automakers."The battery EV Revo have been modified into song-taews for public transportation," Toyota Motor Thailand Executive Vice President Surapoom Udomwong said Thursday, referring to the pickup trucks that have been re-purposed for public transit.A motorcade of Toyota electric pickup trucks drove through the Thai seaside city of Pattaya some 100 km (62 miles) east of Bangkok, where the vehicles were deployed for fixed-route transit.The world's top-selling automaker's move in Thailand comes as Chinese EV brands make inroads into the region's main auto assembly and export hub.Japanese carmakers, such as Toyota Motors, Honda Motors and Isuzu Motors have for decades dominated the Thai auto sector.But government subsidies and tax incentives have brought a wave of investment from China, with its EV automakers committing more than $1.44 billion worth of investments in Thailand.Chery Automobile would be the eighth Chinese brand to invest in the country, following BYD, state-owned Changan Automobile and Great Wall Motors, the government said this week.Toyota, which controls about a third of the Thai market, will deliver a dozen electric pickup trucks to Pattaya."This is a memorable day," said the city's mayor Poramet Ngampichet. "Pattaya is a major tourist city for Thailand and so lowering pollution is important."Poramet said he hoped to convert Pattaya's total fleet of 700 song-taews into EVs.Toyota has previously announced plans to mass produce the battery Hilux pickup truck by 2025, but did not specify where they would be made.Pickup trucks are popular in Thailand, accounting for about half of vehicle sales.Isuzu plans set up a plant in Thailand to make the electric version of its D-MAX pickup truck, with plans for domestic sales and exports, according to the Thai government.(Additional reporting Art
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EXO Biologics hopes to gain conditional marketing from Phase I/II BPD trial
| 2024-04-25 |
It covers the following details: EXO Biologics is hoping to receive conditional market approval from the European Medicines Agency (EMA) for its bronchopulmonary dysplasia (BPD) preventative EXOB-001 in preterm newborns if the Phase I/II trial is successful.CEO Hugues Wallemacq of the Belgium-based biotech said that the company has initiated its Phase I/II trial of mesenchymal stem cells (MSC)-based exosome drug EXOB-001 in Europe. Wallemacq said that EVENEW is the first European Medicines Agency (EMA) authorised clinical trial involving MSC-based exosomes.The trial will be funded thanks to €16m ($17.1m) gained through Series A funding. EXO Biologics will also use the funds to support future clinical trials as well as continuing its manufacturing expansion, ExoXpert.The Phase I/II trial will investigate the candidate as a preventative to Bronchopulmonary Dysplasia (BPD) in preterm newborns.The Phase I portion of the EVENEW trial (NCT06279741) will enroll 36 babies across three cohorts, a low dose, medium hose and high dose of EXOB-001. The trial will be controlled using historical data from babies born at the same site, with hopes to use more than 100 babies as an artificial placebo. Data from the Phase I stage is expected in 2025.Phase II will include three cohorts, two treatment groups and a placebo group. Wallemacq said that due to the high unmet medical needs of these patients, the company hopes that a positive Phase I/II trial could lead to accelerated approval from the US Food and Drug Administration (FDA) and conditional marketing approval from the EMA in 2028.If approval is granted, the company will then run a confirmatory Phase III trial taking place over several years.Currently, EXO Biologics will be running the trial at sites in Italy and Belgium but may look to run the study at more sites across Europe.EXO Biologics has also developed a manufacturing platform EXO Pulse designed for GMP production of exosomes. This platform has allowed the company to launch a subsidiary
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You Won't Believe What ASML Told Wall Street Investors
| 2024-04-25 |
It covers the following details: Fool.com contributor Parkev Tatevosian discusses what these comments could mean forASML(NASDAQ: ASML)stock investors.*Stock prices used were the afternoon prices of April 22, 2024. The video was published on April 24, 2024.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… and ASML 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 $505,010!*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 22, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. 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.You Won't Believe What ASML Told Wall Street Investorswas originally published by The Motley Fool
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What's the Best Way to Invest in Stocks Without Any Experience? Try This Index Fund
| 2024-04-25 |
It covers the following details: What's the best way to invest in stocks with no experience? Many will suggest you buy into an index fund. These investment vehicles, usually marketed as exchange-traded funds (ETFs), often track an index, which is a collection of stocks with some criteria in common.There are indexes for nearly anything you can think of. There are indexes that track utility companies, small-cap companies, or companies that operate exclusively in China. There are even indexes focused solely on dividend-paying stocks, or stocks that are expected to grow faster than the market.If you're just starting as an investor, there's one index fund in particular you should be targeting: theVanguard Utilities ETF(NYSEMKT: VPU).Two reasons to buy this index fund todayWhen it comes toindex funds, Vanguard is king. The company's founder, the late Jack Bogle, is popularly referred to as the "father of indexing." His life goal was to make sure everyday investors were able to invest wisely without paying an arm and a leg in management fees. Index funds allow investors to do just that, gaining broad market exposure while keeping fees to a minimum.The Vanguard Utilities ETF, for example, has an expense ratio of just 0.1%. That means you get to keep 99.9% of your investment year to year. The average expense ratio of similar funds from actively managed investment firms is around 1.01%, according to Vanguard.But you shouldn't just buy this fund for the low fees. You should be most excited about the fund's long-term performance, especially during market downturns. Since 2004 -- the year the fund was launched -- the Vanguard Utilities ETF has returned and average of roughly 9% per year. If you had invested $5,000 when the fund began, your total return (which reinvests dividends) would be about $28,280 today. These returns were made possible by the index funds' underlying portfolio of stocks it buys, which includes utility stocks likeNextEra EnergyandDuke Energy. These companies can be less volatile than the market overall given that they provide recession-resistant products. After all, people keep heating their homes, drinking water, and using electricity even during the worst bear markets.The resiliency of
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This Spectacular Vanguard ETF Could Turn $250 per Month Into $873,700, With Help From Artificial Intelligence (AI) Stocks Nvidia and Microsoft
| 2024-04-25 |
It covers the following details: TheS&P 500(SNPINDEX: ^GSPC)returned 220% over the last decade, compounding at 12.3% annually. That impressive performance was driven in large part by a single stock market sector.To elaborate, the S&P 500 tracks 500 large U.S. companies, including value stocks and growth stocks from all11 market sectors, as defined by the Global Industry Classification Standard (GICS). Those GICS stock market sectors are listed alphabetically below.Communications servicesConsumer discretionaryConsumer staplesEnergyFinancialsHealth careIndustrialsInformation technologyMaterialsReal estateUtilitiesThe information technology sector is somewhat unique for two reasons. First, it was the only stock market sector to beat the S&P 500 over the last decade. Second, it was the best-performing stock market sector over the last five, 10, and 20 years.That information makes a compelling case for buying shares of theVanguard Information Technology ETF(NYSEMKT: VGT). Indeed, history says the index fund could turn $250 per month into $873,700 over the next three decades. Read on to learn more.The information technology sector has consistently outperformed the S&P 500The internet went mainstream in the mid-1990s, laying the foundation for several technologies that have defined subsequent decades. The most impactful include mobile devices, e-commerce, cloud computing, cybersecurity, and software-as-a-service.Those secular trends have kept the information technology sector ahead of the S&P 500 and the other stock market sectors over the last five, 10, and 20 years, as shown in the chart below.The chart shows the return in each S&P 500 market sector over the last five, 10, and 20 years as of April 22, 2024.Going forward, many pundits believe artificial intelligence (AI) will be one of the most impactful technologies in human history. Indeed, formerMicrosoftCEO Bill Gates wrote the following in his blog last year: "Artificial intelligence is as revolutionary as mobile phones and the internet."More recently,JPMorgan ChaseCEO Jamie Dimon said artificial intelligence could
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1 Unstoppable Stock Up 72% in the Past 12 Months: Time to Buy?
| 2024-04-25 |
It covers the following details: The stock market had a terrible year in 2022 amid rapidly rising interest rates and fears of a recession. But since the start of 2023, investor sentiment has turned optimistic with theNasdaq Compositeindexrising 50% as of this writing.But there's one business whose shares have crushed that tech-heavy benchmark, soaring 96% over the same period. The company isNetflix(NASDAQ: NFLX)-- is it time to buy thisstreaming stock?Press fast-forwardNetflix recently reported financial results for the first three months of 2024. Revenue and diluted earnings per share totaled $9.4 billion and $5.28, respectively. The top line was up 15% year over year, while the bottom line skyrocketed 83%. These headline figures crushed Wall Street's estimates, and the report caps off an impressive run of strong financial performance from the streaming leader.Looking ahead, management believes revenue will rise between 13% and 15% in 2024. And executives upped their guidance on the profitability front, expecting full-yearoperating marginto come in at a stellar 25%, up from the previous forecast of 24%.Netflix added 9.3 million net new subscribers during Q1, bringing the total to 269.6 million. This performance was driven by the monster success of the cheaper ad-supported tier, which saw sign-ups soar 65% quarter over quarter. The business is also doing a good job at converting users that previously shared passwords into paid accounts.You'd think the stock would be trending higher following these upbeat results, but that hasn't been the case. As of this writing, shares of Netflix are down over 5% since reporting earnings on April 18, and there's one likely reason for this dip.Management said that starting next year, it will no longer report quarterly subscriber figures. "We'll also announce major subscriber milestones as we cross them," the recent shareholder letter states. Wall Street hates uncertainty, as well as anything that hints at a lack of full transparency. And there are fears this decision may be driven by Netflix's inability to add new subscribers at a solid clip going
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What's Going on With Salesforce Stock?
| 2024-04-25 |
It covers the following details: Fool.com contributor Parkev Tatevosian reviews the latest developments atSalesforce(NYSE: CRM).*Stock prices used were the afternoon prices of April 22, 2024. The video was published on April 24, 2024.Should you invest $1,000 in Salesforce right now?Before you buy stock in Salesforce, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Salesforce 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 $505,010!*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 22, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. 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.What's Going on With Salesforce Stock?was originally published by The Motley Fool
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Hong Kong Stocks Are Looking Hot Again as Chinese Money Pours In
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Suddenly, Hong Kong stocks are hot again with Chinese investors on a buying spree. Most Read from BloombergMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsZuckerberg Asks for Patience as Meta’s AI Push Spooks InvestorsHow to Get a Meeting With the UAE’s $1.5 Trillion ManMeta’s Miss Sparks Fears in Tech With More Earnings AheadThe benchmark Hang Seng Index has gained more than 6% thi
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Meta sparks tech selloff as AI splurge spooks Wall Street
| 2024-04-25 |
It covers the following details: By Aditya Soni and Kanchana Chakravarty(Reuters) -Shares of Meta Platforms sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.The drop was set to erase nearly $170 billion from the company's market value and triggered a fall of 3% to 4.2% in shares of AI-focused Microsoft and Alphabet, both of which report earnings after market close.The focus on AI spending, however, sparked a more than 2% jump in shares of Nvidia, Broadcom and Marvel Technology, which analysts have called the picks and shovels of the generative AI boom. Intel, which has missed out on the AI-led rally, was up 0.7% ahead of earnings.Meta CEO Mark Zuckerberg, who floored Wall Street last year with his cost-cutting drive, said on a post-earnings call that costs would grow "meaningfully" over the coming years before the company makes "much revenue" from some of its AI products.That stoked investor fears that Zuckerberg was plunging Meta into another costly endeavor at a time when its augmented and virtual reality business was losing billions of dollars each quarter."Investors were caught off guard by higher capital expenditure, exacerbated by slightly softer second-quarter revenue guide. As such, shares are entering the 'penalty box,'" Baird Equity Research analysts said.Meta forecast April-June revenue below estimates and raised the bottom end of its 2024 total expense forecast by $2 billion on Wednesday. It also raised the top end of its capital expenditure view as it invests in data centers essential to its efforts to catch up with AI frontrunners OpenAI and Microsoft.The dour expectations follow a series of smash-hit earnings that helped Meta nearly triple its stock in 2023 and powered the biggest one-day market value gain by any company in Wall Street history, of $196 billion, in February after its maiden dividend.Still, several analysts were positive on the investments, pointing to AI-driven engagement on content such as Instagram Reels and the warm reception for its virtual assistant Meta AI and early versions of
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Stock market today: Asian benchmarks mostly climb despite worries about US economy
| 2024-04-25 |
It covers the following details: TOKYO (AP) — Asian shares mostly rose Friday despite worries about the economic outlook and inflation in the U.S. and the rest of the world.The Bank of Japan ended a policy meeting with no major changes, keeping its benchmark interest rate in a range of 0 to 0.1%. In March, it raised the key rate from minus 0.1%, citing signs that inflation had reached the central bank’s target of about 2%.Japan's benchmark Nikkei 225 added 0.4% in morning trading to 37,780.35, while the U.S. dollar was trading at 155.54 Japanese yen, little changed from 155.58 yen.Although a weak yen is a boon for Japan’s giant exporters like Toyota Motor Corp., whose overseas earnings are boosted when converted into yen, some Japanese officials, including Finance Minister Shunichi Suzuki, has been raising concerns that an overly weak currency is not good for the Japanese economy in the long run.In other currency trading, the euro cost $1.0726, up from $1.0733.On Thursday, Wall Street was lower by worries about apotentially toxic cocktailcombining stubbornly high inflation with a flagging economy. A sharp drop for Facebook’s parent company, one of Wall Street’s most influential stocks, also hurt the market.The S&P 500 fell 0.5% to 5,048.42. The Dow Jones Industrial Average dropped 1% to 38,085.80, and the Nasdaq composite sank 0.6% to 15,611.76.Meta Platforms, the company behind Facebook and Instagram, dropped 10.6% even though it reported better profit for the latest quarter than analysts expected. Investors focused instead on the big investments in artificial intelligence that Meta pledged to make. AI has created afrenzy on Wall Street, but Meta is increasing its spending when it also gave a forecasted range for upcoming revenue whose midpoint fell below analysts’ expectations.Expectations had built high for Meta, along with the other “Magnificent Seven” stocks thatdrove most of the stock market’s return
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Up 6,326% Since IPO, Is It Too Late to Buy MercadoLibre (NASDAQ:MELI) Stock?
| 2024-04-25 |
It covers the following details: One of the most popular tech stocks in the last decade is MercadoLibre (NASDAQ:MELI), a Latin American company. MELI stock went public in August 2007. Since then, it has returned a staggering 6,326%, outpacing the broader markets by a wide margin. It means a $500 investment in MELI stock just after its IPO would be worth over $31,200 today. Comparatively, the S&P 500 (SPX) would have turned $500 into $2,386 after adjusting for dividends since August 2007. But does this mean it’s too late to buy MELI stock now?While MercadoLibre will not be able to replicate its historical returns, I’m bullish on the stock due to its widening portfolio of solutions, earnings growth profile, and reasonable valuation.An Overview of MercadoLibreMercadoLibre is the largest online commerce ecosystem in Latin America based on the number of orders and unique visitors. A Brazil-based company, it has a presence in 17 other countries, including Mexico, Argentina, Columbia, Chile, and Peru. MercadoLibre is valued at $70.7 billion.MercadoLibre operates an e-commerce platform similar to Amazon (NASDAQ:AMZN) and caters to a region with more than 650 million people. Its fintech platform, MercadoPago, offers a diverse range of fintech products, such as debit cards, online payments, credit lines, savings, insurance, and investments.How Did MercadoLibre Perform in Q4 of 2023?Despite a challenging macro environment, MercadoLibre reported revenue of $4.26 billion in Q4 of 2023, an increase of 42% year-over-year. In fact the company’s top line grew at the fastest pace since Q3 of 2022. Its adjusted net income stood at $572 million, indicating a healthy margin of 13.2%.MercadoLibre reported gross merchandise volume (GMV) of $13.5 billion as growth in items sold rose to 29%, the highest in over two years. The e-commerce giant attributed its
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BHP to reshape copper market with Anglo bid
| 2024-04-25 |
It covers the following details: MELBOURNE (Reuters) - London-listed miner Anglo American said on Thursday it had received an all-share buyout proposal from BHP Group, a deal that would make the world's biggest listed miner also the largest producer of copper globally.The deal, if agreed, would also trigger further transactions in the global mining industry, which has seen a flurry of mergers and acquisitions as companies look to raise exposure to metals deemed critical to the energy transition.BEN CLEARY, PORTFOLIO MANAGER AT TRIBECA INVESTMENT PARTNERS"This is all about copper. BHP becomes the global leader, knocking out Freeport. I think it’s a good deal for BHP. Anglo is obviously very much in play now."Good timing I think for BHP as most of their competitors are busy or not in the position to strike. Big read through for other copper producers clearly the global consolidation is on."Anyone that has watched the Australia Open ad breaks for the last five years knows BHP likes copper and wants to increase exposure. The deal would also mean London will become even smaller centre for financing the global mining sector."HAYDEN BAIRSTOW, HEAD OF RESEARCH AT BROKER ARGONAUT"It’s all about copper. BHP has talked about getting more copper for a long time. Anglo’s got plans to go to a million tonnes per year in the next 10 years. There’s also a tie in with BHP’s Jansen potash, and Anglo’s Woodsmith."As for the rest of it, some can be refloated or maybe there’s a combination of assets they package together similar to what BHP did with South32."CHRISTOPHER LAFEMINA, ANALYST JEFFRIES"Based on our analysis, Anglo would be a good strategic fit for BHP or another major miner due to potential synergies, asset quality, and commodity exposure (especially copper). Our analysis indicates that Anglo consists of an undervalued portfolio of multiple tier-1 assets, several of which are in relatively low-risk jurisdictions (Chile, Peru, Australia, Brazil). There is a scarcity value to tier-1 mining assets that is not reflected in equity valuations. Hence, Anglo could be a
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Apple loses top spot in China market with shipments down 6.6% in Q1, data shows
| 2024-04-25 |
It covers the following details: (Reuters) - Apple lost its crown as China's biggest smartphone seller in the first quarter of 2024 as its smartphone shipments fell 6.6% from a year ago amid intense competition, preliminary data from research firm IDC showed on Thursday.Honor and Huawei were tied for the top spot, with Honor's market share rising to 17.1% and Huawei's share climbing to 17%, IDC said, while the iPhone maker's market share fell to 15.6%.The IDC declares a statistical tie when the difference between the share of revenue or shipments between two or more vendors is 0.1% or less."Apple's price promotions in the quarter were unable to mitigate the impact of the intense competition from Android players," Arthur Guo, senior research analyst at IDC China said in the report.Overall smartphone shipments in China rose 6.5% to 69.3 million units, according to IDC.Earlier this week, data from research firm Counterpoint showed Apple's smartphone shipments in China tumbled 19% in the first quarter of the year, the worst performance since 2020.(Reporting by Mrinmay Dey in Bengaluru; Editing by Varun H K)
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Mercedes-Benz to launch luxury electric van for Chinese market
| 2024-04-25 |
It covers the following details: FRANKFURT (Reuters) - Mercedes-Benz is planning to launch a luxury electric van for the Chinese market based on its VAN.EA platform, the head of the carmaker's vans division told German magazine WirtschaftsWoche."A super-luxury variant, so to speak. We want to significantly increase our sales share in China," Mathias Geisen was quoted as saying. "In China, demand for vans is growing rapidly, especially in the luxury segment."Geisen did not give further details on the van or the timing.He confirmed the van division's 2024 outlook for a 12%-14% margin on sales, ahead of quarterly results scheduled for April 30.Last year, Mercedes-Benz Vans sold a record 447,800 vehicles and achieved an adjusted return on sales of 15.1%.(Reporting by Christoph Steitz; Editing by Kirsten Donovan)
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Stock market today: US stocks mixed as traders brace for GDP data and more earnings
| 2024-04-25 |
It covers the following details: A trader reacts as he watches screens on the floor of the New York Stock Exchange in New YorkReuters/Brendan McDermidUS stocks traded mostly lower on Wednesday as traders eyed the release of first-quarter GDP data.Investors are sifting through earnings, with mega-cap tech results rolling in.Tesla rallied Wednesday as traders cheered news of a cheaper vehicle model in the works.US stocks were mostly lower on Wednesday as traders prepared for the release of first-quarter GDP data and digested the latest round of corporate earnings.Investors are waiting on advanced estimates for first-quarter GDP to roll out tomorrow morning, which will give markets a sense of how strong the economy is growing and point to the Federal Reserve's next move.The US is expected to have expanded 2.7% in the first three months of the year, according toAtlanta Fed economists, but an especially strong print would raise the risk that the Fed keeps policy tight in order to prevent inflation from gaining a foothold again.Markets are pricing in just one or two rate cuts for the year, according to theCME FedWatch tool,down from as many as seven cuts seen at the start of 2024.Investors are also preparing to take in more earnings results, which have been resilient so far this quarter. The S&P 500 looks on track to post7% year-per-year earnings growth, according to FactSet. Of the companies that have reported financials so far,74% have beat earnings estimates.Facebook parent Meta Platforms will report after the closing bell, while Microsoft and Alphabet will report results after the close on Thursday.Tesla shares jumped 11% higheron Wednesday after the carmaker's latest earnings report. Revenue came in below expectations, but investors were pleased with the company's confirmation that a low-cost electric vehicle was set to roll out sometime next year.Here's where US indexes stood at the 4 p.m. closing bell on Wednesday:S&P 500: 5,071.67, up 0.02%Dow Jones Industrial Average: 38,460.92, down 0.11% (-42.77 points)Nasdaq Composite: 1
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Battery Stocks’ Rally in India May Extend After $2 Billion Surge
| 2024-04-25 |
It covers the following details: (Bloomberg) -- A rally in India’s battery maker stocks this month looks poised to extend amid optimism over further collaborations with foreign vehicle manufacturers. Most Read from BloombergBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityZuckerberg Asks for Patience as Meta’s AI Push Spooks InvestorsMeta’s Miss Sparks Fears in Tech With More Earnings AheadHow to Get a Meeting With the UAE’s $1.5
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Revival in Japanese Stock Market Hinges on Domestic Demand Taking Hold
| 2024-04-25 |
It covers the following details: (Bloomberg) -- Japan’s stock market needs to see more domestically-oriented companies step up their game to fuel further rallies, but the outlook for wages and the yen complicates the picture.Most Read from BloombergBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityZuckerberg Asks for Patience as Meta’s AI Push Spooks InvestorsMeta’s Miss Sparks Fears in Tech With More Earnings AheadTaylor Swift Is
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Tepid US data hits stocks, lifts Treasury yields to over 5-month high
| 2024-04-25 |
It covers the following details: By Chris Prentice and Marc JonesNEW YORK/LONDON (Reuters) -Stocks snapped a three-day winning streak on Thursday as disappointing forecasts from Facebook and Instagram owner Meta hammered the tech sector, and Japan's yen sank through 155 per dollar for the first time since 1990.Tepid U.S. GDP data and Meta's slump weighed on equities.U.S. Treasury yields hit their highest in over five months after the data showed signs of persistent inflation, lowering hopes that the Federal Reserve will cut interest rates anytime soon. [US/]U.S. Treasury Secretary Janet Yellen told Reuters that U.S. economic growth was likely stronger than suggested by weaker-than-expected data on first-quarter output and said the Biden administration was keeping all options open to respond to threats from China's excess industrial capacity.Gold prices rose, and oil prices finished higher.[GOL/]MSCI's gauge of stocks across the globe fell 3.87 points, or 0.51%, to 755.59.The Dow Jones Industrial Average fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76.Shares of Alphabet and Microsoft advanced in extended hours trading after both companies reported quarterly results that beat Wall Street estimates. However, Intel shares dropped 8% in extended hours trading after it forecast second-quarter revenue and profit below market estimates.European shares closed down 0.7%, paring losses after shedding more than 1% intraday, hit by bleak earnings from consumer giant Nestle and Dutch digital payments firm Adyen.London's FTSE 100 held onto gains and touched a record high as UK-listed miner Anglo American surged on a $39 billion buyout offer from Australian rival BHP.U.S. SLOWDOWNBeyond corporate earnings, investors were digesting the
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Einhorn’s Greenlight Underperformed ‘Broken’ Stock Market Last Quarter
| 2024-04-25 |
It covers the following details: (Bloomberg) -- David Einhorn’s Greenlight Capital underperformed the “fundamentally broken” stock market at the start of the year, according to a letter to investors.Most Read from BloombergBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityZuckerberg Asks for Patience as Meta’s AI Push Spooks InvestorsMeta’s Miss Sparks Fears in Tech With More Earnings AheadTaylor Swift Is Proof That How We Critique
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Mark Zuckerberg warns of stock volatility as Meta bets billions more on AI investment ‘before we make much revenue’
| 2024-04-25 |
It covers the following details: Brace for turbulence, and have patience. That was Mark Zuckerberg's message to Meta shareholders on Wednesday as he explained his decision to plow tens of billions of dollars into a multi-year AI spending spree that will precede any meaningful payoff.The cofounder and CEO of Meta, which owns Instagram,Facebook, and WhatsApp, said that he'd recently become more optimistic about the company's prospects to dominate the highly competitive market for generative AI services, and that he'd concluded that "it makes sense to go for it."That may not sit well with investors, Zuckerberg acknowledged during the company's first quarter earnings call —and shares of Meta were down by more than 15% after hours as he spoke. "We've historically seen a lot of volatility in our stock during this phase of our product playbook where we're investing and scaling a new product but aren't yet monetizing it."Meta said Wednesday that the capital expenditures to power its AI ambitions could total $40 billion this year, up to $5 billion more than it had earmarked in October. And costs will only go up in the years to come, the company said. "This is likely going to take several years," he said.But Zuckerberg also made a point to note that "smart investors" will recognize the opportunity at hand and be patient. After all, the company has been through this before, he said, pointing to investments in products like Reels and Stories that have since paid off.The direct appeal to Wall Street for patience underscores the risk of the AI arms race that Meta is committing itself to.Microsoftreportedly plans to spend up to $100 billion to build a specialized AI datacenter with ChatGPT-maker OpenAI. And Google-owner Alphabet has been investing heavily in AI for years.WhileGoogleand Microsoft both have cloud businesses that serve as vehicles to monetize their AI investments, Meta is not in the cloud business. But Zuckerberg hinted that charging for "compute" could be one avenue for generating revenue from its AI technology, along with its traditional advertising business.Zuckerberg ascribed his increasing confidence in Meta's AI prospects to the company's recently released Llama 3 large language model, and the technology's consumer version of it, dubbed Meta AI in a few
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Analysts overhaul GM stock price target after earnings
| 2024-04-25 |
It covers the following details: Austin Powers isn't the only one getting his mojo back.The satirical Sixties-era spy, created and portrayed by Mike Myers in four films, was rendered "shagless" in one of the flicks by Dr. Evil--also played by Myers--before bouncing back and restoring his most precious essence.Related: Analysts scramble to reset Tesla price targets as stock soars after earningsAnd there's at least one stock analyst who sees a similar story being played out by General Motors(GM), which produced some shagadelic first-quarter results on April 23.Revenue and earnings outpaced Wall Street analyst's predictions, with net income rising more than 25% on strong deliveries of pickup trucks and other higher-profit vehicles."Around the world, we are very focused on growth and profitability, which means taking full advantage of our winning product portfolio to grow share without chasing unprofitable business," Mary Barra, chairman and CEO, told analysts during the carmaker'searnings call.The performance has many GM stock analysts racing to overhaul targets.Mary Barra, CEO of General MotorsAnna Moneymaker/Getty ImagesGM delivers impressive first quarter resultsRevenue totaled $43.01 billion, up from $40 billion a year ago and surpassing FactSet's call for $41.94 billion.The iconic automaker earned $2.62 per share for the quarter, up from $2.21 a year ago, beating the FactSet consensus of $2.13 per share.The company boosted its 2024 guidance and now expects adjusted earnings of $12.5 billion to $14.5 billion, or $9 to $10 per share, up from a previous range of $12 billion to $14 billion, or $8.50 to $9.50 per share.GM also raised expectations for adjusted automotive free cash flow to a range of $8.5 billion to $10.5 billion, up from an earlier forecast of $8 billion to $10 billion.EV sales up sharply, says GM's CEOBarr said that electric vehicle production rose sharply, "and our dealers translated that into a 2
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Asian Stocks Decline as Focus Turns to Fed Meeting: Markets Wrap
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Stocks in Asia dropped after renewed concerns about higher-for-longer US interest rates fueled a selloff on Wall Street, with all eyes on the Federal Reserve’s policy decision due later Wednesday. Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsWall Street Hit by Fed Jitters to Close Wild April: Markets WrapBinance and CZ’s Fortunes Are Set to Grow, Even in JailPot Stocks Surge on Report DEA Set to Reclassify MarijuanaTesla Axes Most of Superchar
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Gold Holds Drop as Markets Brace for Hawkish Tone at Fed Meeting
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Gold held its hefty decline in the previous session, as hot US economic data further dented hopes the Federal Reserve will rapidly pivot to monetary easing.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsWall Street Hit by Fed Jitters to Close Wild April: Markets WrapBinance and CZ’s Fortunes Are Set to Grow, Even in JailPot Stocks Surge on Report DEA Set to Reclassify MarijuanaTesla Axes Most of Supercharger Team in Blow to Other AutomakersBulli
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Why SiriusXM Radio Stock Was Falling Today
| 2024-04-30 |
It covers the following details: Shares ofSiriusXM Radio(NASDAQ: SIRI)were pulling back today, after the satellite radio provider posted middling results in its first-quarter earnings report. Though it topped revenue estimates, full-year guidance was below expectations, and underlying growth remained weak.As a result, the stock was down 4.9% as of 12:27 p.m. ET.Image source: Getty Images.Sirius struggles to growSirius continued to lose self-pay subscribers, falling 359,000 to 33 million because of a decline in trial starts at the end of 2023 and higher self-pay monthly churn at 1.7%.Overall revenue fell 1% to $2.16 billion, which edged out estimates at $2.12 billion, but revenue from SiriusXM fell 1% to $1.7 billion. Growth at Pandora was slightly better. Ad revenue growth was a bright spot up 7%, compared with a 1% drop in subscription revenue.On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 4% to $650 million, and earnings per share improved from $0.06 in the quarter a year ago to $0.07.CEO Jennifer Witz said, "I'm pleased to share solid first-quarter financial results, underscored by record ad revenue for a first quarter and strong consumer engagement with our newly released content."What's next for SiriusXMSiriusXM stock has essentially been stuck in neutral over the past decade, and the acquisition of Pandora has not delivered the jolt to the stock that some investors were hopeful for.Looking ahead, the company reiterated its 2024 guidance, calling for revenue of $8.75 billion, down 2.2% from 2023 levels. It also sees adjusted EBITDA of $2.7 billion and free cash flow of $1.2 billion.While those are solid numbers for a company with a market cap of $11 billion, the revenue forecast was slightly below the consensus at $8.79 billion, and the growth concerns continue to weigh on the stock.Until it returns to subscriber growth and delivers top-line
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Tesla's plans to launch full self-driving tech in China could add $2 billion in earnings by 2030 and boost its stock
| 2024-04-30 |
It covers the following details: New Autopilot features are demonstrated in a Tesla Model S during a Tesla event in Palo Alto, CaliforniaThomson ReutersTesla's roll out of full-self driving technology in China could earn it over $2 billion by 2030, Bank of America said.But rising competition in the country could prompt Tesla to offer the software for free.In any case, FSD should push up demand for Tesla vehicles, supporting the stock.Tesla'ssuccess in getting China to approve its full self-driving technology could rev up the firm's earnings this decade, Bank of America said.The electric vehicle maker could pocket in excess of $2 billion by 2030, assuming that its software is increasingly adopted by Tesla drivers in China, the bank wrote on Monday.News of CEO Elon Musk's surprise trip to China this weekend has propelled Tesla's troubled stock as much as 16.6% since early Monday, as reports followed thatBeijing would green light the self-driving technology.Also announced was a partnership reached with Chinese firm Baidu, which will contribute navigation functions to Tesla's software.Once the technology rolls out, Tesla could charge Chinese FSD users around $99 a month, based on its US pricing.In the case that just a quarter of the 1.6 million Tesla drivers subscribe, this would amount to just half a billion in annual revenue, Bank of America said."But with a gross margin likely to exceed 70% the earnings benefit could be ~$350mm," the note said. "This number could increase meaningfully over time and, based on IHS projections for TSLA's China auto sales, could be $2.3bn in annual earnings by 2030 under the same assumptions."Also possible is that FSD generates zero earnings if Tesla feels pressured to deploy the technology at no cost to the consumer. Rising competition in the country could spur Tesla to do this. That doesn't mean the company won't benefit, as allowing more vehicles to use FSD would accelerate the software's neural network training, the bank said.At any rate, FSD is certain to spur Chinese demand for Tesla models, potentially reversing declining interest the company hasseen in the market."Competition is increasing
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Goldman Sachs revamps "high-quality" stock picks list
| 2024-04-30 |
It covers the following details: In times of market volatility, it can make sense to emphasize quality stocks.These companies have strong fundamentals, such as earnings, return on equity (ROE), cash flow, and management strength. Companies that offer regular dividend increases also count.Quality stocks tend to do particularly well in the middle and later stages of the economy, like now, says Michael Sheldon, executive director of RDM Financial Group.“In the current environment, exposure to quality companies makes sense, given the uncertainty we face with the economy, inflation, interest rates, and geopolitics,” he told TheStreet.com.“And while profits are rising, valuations are high.”Quality stocks can add ballast to your portfolio late in an economic cycle.According to FactSet, the forward 12-month price-earnings ratio for the S&P 500 was 20 on April 26. That’s well above the five-year average of 19.1 and the 10-year average of 17.8.Investors interested in owning quality stocks can invest in exchange-traded funds that own them, such as iShares MSCI USA Quality Factor ETF(QUAL)and Invesco S&P 500 Quality ETF(SPHQ). But if you go that route, make sure your portfolio doesn't get dominated by a small number of sectors.And remember, while quality stocks are attractive now, they are subject to market volatility just like other stocks. Nevertheless, “it’s a good strategy to include them in your portfolio,” Sheldon said.Related: $776 million fund manager finds bargains in small-cap stocksGoldman Sachs' High-Quality stocks listInvestors’ focus on quality has served as “one of many factors supporting the recent outperformance” of the Magnificent 7, Goldman Sachs analysts wrote in a commentary to institutional investors.The Mag 7 includes consumer electronics product wizard Apple(AAPL), retailer/tech titan Amazon(AMZN), tech conglomerate Alphabet(GOOG), social media giant Meta Platforms(META), software sultan Microsoft(MSFT), semiconductor king Nvidia(NVDA), and electric vehicle leader Tesla(TSLA).Related: Are stocks
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Amazon reports $143B in Q1 revenue, topping Wall Street expectations
| 2024-04-30 |
It covers the following details: E-commerce giant Amazon's first-quarter shipping costs were $21.8 billion, a 10% increase compared to the same quarter in 2023. (Photo: Jim Allen/FreightWaves)E-commerce giantAmazonreported better-than-expected earnings and revenue for the first-quarter, driven by tweaks in its logistics operations, as well as growth in its advertising and cloud computing units, according to Amazon CEO Andy Jassy.“Delivery speed really matters to customers and we’ve continued to get faster while improving our safety performance,” Jassy said during a call with analysts Tuesday. “Over the past year, we’ve talked about how our regionalization efforts have helped to lower our cost of service. We’ve continued to inspect our fulfillment network for additional opportunities and are working on several areas where we believe we can lower costs even further while also improving customer experience.”Amazon’s (NASDAQ:AMZN) first-quarter revenue rose 13% year-over-year (y/y) to $143.3 billion, topping analyst expectations of $142.6 billion. The company reported adjusted earnings per share of $0.98 versus estimates of $0.83.Operating income increased to $13.2 billion in the quarter, compared with $2.7 billion in the same year-ago period. Net income in the quarter increased to $10.6 billion, compared with $0.3 billion last year.Amazon’s first-quarter revenue from third-party sellers services, which includes commissions collected by Amazon, fulfillment, shipping fees and other charges, grew 16% y/y to $34.5 billion.The company expects revenue of $144 billion to $149 billion for the second-quarter ending in June. Operating income is expected to be between $10 billion and $14 billion.AmazonQ1/24Q1/23Y/Y % ChangeRevenueOperating incomeNet incomeShipping costsAdjusted earnings per shareAmazon’s first-quarter shipping costs, which include sortation and delivery centers and transportation costs, was $21.8 billion, a 10% y/y increase compared to the same period in 2023. The company delivered more than
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