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Analyst revamps Nvidia stock price target ahead of earnings
| 2024-04-30 |
It covers the following details: Back in March, Nvidia(NVDA)had some big news to share.The chipmaker used its GTC event to unveil the Blackwell GPU architecture, which, Nvidia said, will "power a new era of computing."Related: Nvidia set to capture billions as big tech boosts AI spendingThe company said Blackwell will enable organizations to build and run real-time generative AI on trillion-parameter large language models at up to 25 times less cost and energy consumption than its predecessor.“For three decades, we’ve pursued accelerated computing, with the goal of enabling transformative breakthroughs like deep learning and AI,” Jensen Huang, Nvidia’s co-founder and CEO, said in a statement.“Generative AI is the defining technology of our time," Huang added. "Blackwell is the engine to power this new industrial revolution. Working with the most dynamic companies in the world, we will realize the promise of AI for every industry.”Jensen Huang, co-founder and chief executive officer of Nvidia Corp., sees continued growth for the company. Photographer: Lam Yik Fei/Bloomberg via Getty ImagesBloomberg/Getty ImagesNvidia CFO sees 'tipping point'Nvidia currently boasts an estimated 80% share of the market for AI-powering processors.The company used last month’s GTC event to unveil the newest iteration of its lineup, the Blackwell GPU architecture. This architecture could command a 40% premium to the current range for H100 chips, which go for between $30,000 and $40,000 each.Related: Analysts revise AMD price targets as stock hit by muted AI sales forecastNvidia is scheduled to report first-quarter earnings on May 22. Analysts surveyed by FactSet expect the company to report $5.60 per share, on revenue of $24.75 billion.A year ago, Nvidia posted earnings of $1.09 per share on revenue of $7.19 billion.On Feb. 21, Nvidia beat Wall Street's fiscal fourth-quarter targets, delivering its third quarter of triple-digit percentage growth in sales and earnings.“The world has reached the tipping
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Why MicroStrategy Stock Plummeted by Nearly 18% on Tuesday
| 2024-04-30 |
It covers the following details: MicroStrategy(NASDAQ: MSTR)had the misfortune to report its latest set of earnings at a time when its most important asset was on the decline.MicroStrategy is a niche tech company that has almost entirely transformed itself into basically an institutionalBitcoin(CRYPTO: BTC)holder. It published first-quarter results at a time when the cryptocurrency was going throughseveraldays of declines. That, compounded with generally weak fundamentals, drove MicroStrategy's share price down by almost 18% on Tuesday.Bitcoin blues?MicroStrategy proudly bills itself as the "largest corporate holder of Bitcoin," which is fantastic when the leading crypto is on the rise, but not so impressive when it's in the doldrums... like now.That's uncomfortable enough. But the numbers the company posted for the quarter were more uncomfortable. Revenue came in at just over $115 million, which was down from the first quarter 2023 result of nearly $122 million. It also didn't meet the average analyst estimate of $121.7 million.Non-GAAP(adjusted) net loss deepened considerably, landing in a vat of red ink to the tune of almost $186 million. In comparison, the year-ago shortfall of under $3 million was relatively painless.Adding over 25,000 coins to the digital money pileAt least its Bitcoin pile is growing. MicroStrategy reported that its holdings in the coin now total 214,400, for which it paid $7.54 billion. This works out to $35,180 per Bitcoin. Of that tally, 25,250 Bitcoin were acquired during the quarter at an average price of $65,232. That's higher than the current level, following the coin's recent decline.Should you invest $1,000 in MicroStrategy right now?Before you buy stock in MicroStrategy, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and MicroStrategy 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,
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'Be like Buffett' and buy the dip in Apple stock before its next iPhone announcement, analyst says
| 2024-04-30 |
It covers the following details: Mega-billionaire investor Warren Buffett and Apple CEO Tim Cook.Getty/GettyInvestors should imitate Warren Buffett and buy Apple while it's cheap, Bernstein's Toni Sacconaghi said.He says the stock is attractively priced, pushed down by cyclical issues in China, not due to fundamental problems.The stock will also see boosted upside from its forthcoming iPhone 16 cycle, he told CNBC.Investors should grabApplebecause it's looking cheap, Bernstein said on Monday, turning bullish on the stock for the first time in years.The investment firm upgraded Apple to "outperform," shedding the "neutral" rating it's held since 2018. Its $195 price target remained unchanged, signaling 12% upside from where shares stood as of Tuesday."Be like Buffett," analyst Toni Sacconaghi wrote in a note: "Despite his reputation as a long term buy and hold investor, Warren Buffett has been remarkably disciplined at adding to his Apple position when it is relatively cheap and trimming when it is relatively expensive."For investors, that means adding positions at multiples of 25 times or below, and reducing exposure at more than 30 times. The stock is currently trading at 2024 forward price-earnings ratio of 26.4.Bernstein's change of tune chiefly stems from its outlook on Apple's dilemmas in China, a leading reason for why the smartphone giant has slid 10% in markets this year —rising competitionandiPhone crackdownsin the country have chipped at Apple's standing in the key market.But in Bernstein's take, this issue is more cyclical than structural."What we found is, we're getting a price break on it," Sacconaghi toldCNBCTuesday. "We saw the price come down because of the fears over the week, iPhone 15 cycle and because of concerns about China, and we believe that Apple's business model was very much intact."Cheap pricing and low expectations for this quarter are setting the stock up for a clearing event, right before Apple enters a seasonally strong trading period, he said. Upside is especially warranted with the iPhone 16 scheduled to release this
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Analyst adjusts MicroStrategy stock price target after earnings
| 2024-04-30 |
It covers the following details: U.S. Sen. Everett Dirksen is credited with the famous phrase "a billion here, a billion there, and pretty soon you're talking real money."The senator from Illinois, who died in 1969, was supposedly complaining about excessive federal spending, and while some dispute that he actually said those words, the line has found a place in history.Related: Analyst updates SoFi stock outlook after earningsMichael Saylor also knows a thing or two about real money.The co-founder and executive chairman of MicroStrategy(MSTR)once lost $6 billion in a single day back in 2020, after the business-intelligence company announced accounting mistakes and the stock dropped.Saylor, who stepped down as MicroStrategy's CEO in 2022, reached a settlement with the Securities and Exchange Commission that included an $8.3 million personal disgorgement.He has also been a bitcoin evangelist, and he spoke about the primary digital currency during MicroStrategy'sfirst-quarter-earnings call."This quarter," he said, "it's the end of the crypto childhood or the crypto cowboy era, where you had had 15 years of lots of confusion, chaos, and jockeying of thousands and thousands of crypto assets.""Well, bitcoin is the winner, and it is the one emergent institutional asset that has come out of that 15 years," Saylor said.MicroStrategy Executive Chairman Michael Saylor says it's the end of the 'crypto childhood'Image source: Twitter.MicroStrategy's co-founder calls bitcoin 'unique'Investors’ interest in bitcoin soared with January’s introduction of bitcoin exchange-traded funds, or ETFs, particularly the ones offered by BlackRock and Fidelity Investments."And so, bitcoin is very unique," Saylor said. "It's the one crypto asset that a publicly traded company can hold on its balance sheet, can capitalize upon."Related: Analyst revamps Apple stock rating ahead of key earnings reportSaylor maintained that entire modern institutional asset economy, the options market, the securities market, the money manager system, the institutional mutual funds, the institutional ETFs, are all going to be centered around bitcoin as the digital property going forward."And so, while we're at
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April Showers On Wall Street: Miners, Utilities Emerge As Bright Spots In Gloomy Market
| 2024-04-30 |
It covers the following details: April Showers On Wall Street: Miners, Utilities Emerge As Bright Spots In Gloomy MarketAs April comes to a close, it’s time to compile the rankings for the top-performing sector and industry exchange-tradedfunds of the month.Taking a broader look at the stock market, the S&P 500 Index, represented by theSPDR S&P 500 ETF Trust(NYSE:SPY), finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.Similarly, the tech-heavy Nasdaq 100, tracked by theInvesco QQQ Trust(NASDAQ:QQQ), experienced a 3.5% decline.Among large-cap indices, blue-chip stocks showed slight underperformance, with theSPDR Dow Jones Industrial Average ETF (NYSE:DIA) slipping by 4.5%.Small-cap stocks, represented by theiShares Russell 2000 ETF(NYSE:IWM), plummeted by over 6%, marking their worst performance since October 2023.Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee(FOMC) meeting on Wednesday.While no interest rate changes are expected, all eyes will be on Fed ChairJerome Powell‘s remarks to assess the Fed’s stance in response to recent inflation surprises.Read also:Federal Reserve Meeting Preview: High Interest Rates ‘Need More Time To Work,’ Bank of America SaysPerformance Of Sector ETFs In April 2024At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.The largest stock contributors to the utilities’ performance in April areNextEra Energy, Inc.(NYSE:NEE),The Southern Company(NYSE:SO),Dominion Energy, Inc.(
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S&P 500, Nasdaq 100 Snap 5-Month Winning Streak In April As Inflation Reality Check Hits Bullish Sentiment
| 2024-04-30 |
It covers the following details: S&P 500, Nasdaq 100 Snap 5-Month Winning Streak In April As Inflation Reality Check Hits Bullish SentimentThe U.S. stock market broke a streak of five consecutive months of gains in April, reigniting concerns about the impact of rising inflationary pressures and the potential for a prolonged restrictive monetary policyby the Federal Reserve.Despite positive signals from first-quarterearnings reports, all major U.S. indices ended the month in negative territory as macroeconomic fears hit risk sentiment.The S&P 500, as tracked by theSPDR S&P 500 ETF Trust(NYSE:SPY), closed 4% lower, snapping a five-month winning streak and marking its worst performance since September 2023.The tech-heavy Nasdaq 100, monitored through theInvesco QQQ Trust(NASDAQ:QQQ) witnessed a 4.4% decline for the month, similarly snapping a five-month positive streak and hitting the worst monthly return since September 2023.Blue chip stocks in the Dow Jones, as tracked by theSPDR Dow Jones Industrial Average ETF(NYSE:DIA), fell 4.9% on the month, marking its lowest performance since September 2022.Chart: April Snaps A 5-Month Winning Streak For Major US AveragesInflation Fears Overshadow Positive Earnings TrendsWith nearly half of S&P 500 companies reporting first-quarter 2024 results, 77% of companies revealed a positive EPS surprise, and 60% reported a positive revenue surprise.However, March’s inflation reports delivered a stark reality check to investors.The latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics showed a surge in price pressures from 3.2% year-on-year in February to 3.5% in March 2024, surpassing forecastsof a 3.4% increase.Another blow came from the Bureau of Economic Analysis’ Personal Consumption Expenditure (PCE) price index report, theFed’s preferred inflation gauge.Annual PCE inflation rose
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Can Scorpio Tankers Stock (NYSE:STNG) Regain Momentum as the Industry Booms?
| 2024-04-30 |
It covers the following details: The tanker industry is booming, but Scorpio Tankers (NYSE:STNG) stock, along with many of its peers, has remained pretty flat in recent months. However, while the share price is flattening, the tailwinds that propelled this crude oil and petroleum transporter (and the industry as a whole) to where we are today are continuing. Day rates (leasing rates) remain elevated, and the industry appears to be at the start of a multi-year supercycle whereby supply can’t keep up with demand. Thus, I’m bullish on Scorpio Tankers.Scorpio Tankers and the Multi-Year SupercycleExperts had been warning for several years that the tanker industry was building too few vessels. Just two new supertankers are set to join the global fleet in 2024. That’s the fewest additions in nearly 40 years and around 90% below the yearly average this millennium.One reason for this is the pandemic. The disruption caused by the virus, the associated lockdowns, and shifting demand dynamics created uncertainty within the tanker industry. New orders were put on hold while many shipyards closed — some permanently. In fact, the number of shipyards has fallen from ~700 in 2007 to ~300 by 2022.With fewer vessels and fewer shipyards, supply is lagging behind demand. This was largely kept in check in the early part of last year as OPEC kept oil off the market, thus reducing near-term demand for tankers. Coupled with a less optimistic long-term outlook on the tanker industry — as the global economy transitions to greener energy — tanker stocks didn’t pick up until Q2 of 2023.However, many analysts now think we’re moving toward a supercycle in the sector. Demand is robust due to a resurgent global economy, and supply isn’t catching up. After all, it can take between two and four years to build a new tanker.Scorpio Tankers’ Short-Term TailwindsSeveral factors have contributed to supply becoming tighter. This was noted by management during the Q4 earnings call in February: “We’ve seen low water levels in the Panama Canal, attacks
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This Streaming Stock Is in Huge Trouble
| 2024-04-30 |
It covers the following details: Paramount(NASDAQ: PARA.A)reported earnings this week, and they weren't very positive for a company hoping to build a profitable business. In this video, Travis Hoium shows why the company is stuck between a rock and a hard place.*Stock prices used were end-of-day prices of April 29, 2024. The video was published on April 30, 2024.Should you invest $1,000 in Paramount Global right now?Before you buy stock in Paramount Global, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Paramount Global 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 $537,692!*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 30, 2024Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Travis Hoiumhas positions in Alphabet and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Netflix, and Walt Disney. The Motley Fool recommends Comcast. 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.This Streaming Stock Is in Huge Troublewas originally published by The Motley Fool
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Why Sanmina Stock Got Thumped on Tuesday
| 2024-04-30 |
It covers the following details: Investors sold of out electronics component makerSanmina(NASDAQ: SANM), and it wasn't hard to figure out why. The company posted fiscal second-quarter results that, while not bad, included guidance that fell notably short of analyst expectations. For this transgression, the market punished it by sending its share price more than 5% lower on the day. TheS&P 500index, meanwhile, did relatively well with "only" a 1.6% decline.A mixed fiscal second quarterFor the quarter, Sanmina's net sales amounted to $1.83 billion. This was not only down from the $2.32 billion of the same period a year ago, it was lower than the consensus analyst estimate of $1.88 billion.Non-GAAP(adjusted) net income also headed south, falling to $73.9 million ($1.30 per share) from the year-ago profit of $95.1 million. Yet this bettered the average pundit projection of $1.25 per share.Sanmina said that its results were affected by macroeconomic uncertainty, but sounded a hopeful note on the immediate future. It quoted its CEO, Jure Sola, as saying that, during the second quarter, "We started to see positive movement in some end-markets that have been notably depressed for the last few quarters."Weak guidanceSola added that Sanmina was hopeful that it would see improvements in the fundamentals sequentially through this fiscal year. Its guidance didn't necessarily reflect that -- the company is expecting revenue of $1.8 billion to $1.9 billion for this current (third) quarter, with adjusted net income coming in at $1.22 to $1.32. Both ranges were under the consensus prognosticator estimates of $1.97 billion and $1.36, respectively.Should you invest $1,000 in Sanmina right now?Before you buy stock in Sanmina, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Sanmina 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,
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Stock market today: Indexes drop as hot labor data adds pressure ahead of Fed meeting
| 2024-04-30 |
It covers the following details: Photo of a help wanted sign along Middle Country Road in Selden on July 20, 2021.Thomas A. Ferrara/Newsday RM/Getty ImagesUS stocks slid Tuesday after a hotter-than-expected employee cost index.The quarterly measure saw wage and labor costs accelerate, adding pressure on the Fed.Tuesday marks the start of the Fed's meeting of the Federal Open Market Committee.US equity markets slipped Tuesday as hot labor data stoked fresh bets the Federal Reserve would remain hawkish on monetary policy.The Employee Cost Index, a quarterly measure of wages and benefits, jumped 1.2%, suppressing estimates of a 1% acceleration. It's also well past the 0.9% increase seen in the fourth quarter, the Bureau of Labor Statistics reported Tuesday.The index is among a number of inflationary reports to have come out this year, pouring cold water on previous hopes that the Fed would lower interest rates soon.Tuesday marks the start of the central bank's policy meeting, and investors are looking for insight about future rate cuts during the press conference that will follow on Wednesday.Meanwhile, earnings continue to pour in, with Amazon and Apple among the big names set to report this week. Among Tuesday's movers, missed estimates took a toll on McDonald's shares.Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:S&P 500: 5,101.43, down 0.28%Dow Jones Industrial Average: 38,216.67, down 38,216.67% (-181.37 points)Nasdaq Composite: 15,918.18, down 0.4%Here's what else is going on today:A new ETF promises100% downside protection, but with a limit on upside potentialTrump advisors arediscussing penalties for countriesthat pull away from the dollar, Bloomberg reported.One bank that called for deep interest rate cuts this yearnow sees a possible hike on the horizon.In commodities, bonds, and crypto:West Texas Intermediatecrude oil climbed 0.69% to $83.04 a barrel.Brent crude
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Traders Expect Biggest Fed-Day Move in S&P Since 2023, Citi Says
| 2024-04-30 |
It covers the following details: (Bloomberg) -- The options market is more concerned about a potentially big move in the S&P 500 Index off of the Federal Reserve’s interest-rate decision Wednesday than it’s been at any point in almost a year. 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 Supercharge
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ON Semiconductor Set for Growth: Analysts Cite SiC and Auto Market Stability As Catalysts
| 2024-04-30 |
It covers the following details: ON Semiconductor Set for Growth: Analysts Cite SiC and Auto Market Stability As CatalystsBenchmarkanalyst David Williams maintainedON Semiconductor Inc(NASDAQ:ON) with a Buy and lowered theprice target from $88 to $80.While ON’sresults were betterthan feared, with stabilization in the Auto market and moderate improvement in traditional Industrial, Williams noted that the outlook missed expectations on persistent inventory digestion and a tepid demand environment.SiC remains the key momentum driver in the near term, with convincingly strong evidence of the firm’s ability to outperform the industry growth by 2x, per the analyst.Although unit volume remains the wildcard, share gains across existing platforms scheduled for production this year support substantial SiC growth opportunities.However, with the pace of EV adoption in question and the accelerating push toward more economical models, investors are more concerned with the potential erosion of SiC content than ON seems to be, he said.While Williams recognized the SiC performance advantages extend to the lower-end platforms, the number of sockets is considerably reduced and will require meaningfully higher unit sales to offset the lower available content.The near-term growth opportunity remains positive, but the analyst is increasingly cautious about the sustainability of the mid to longer-term growth trajectory on the global SiC capacity expansion coming online and an anticipated mix shift toward lower content auto platforms over time.Williams projected second-quarter revenue and EPS of $1.73 billion (prior $1.81 billion) and $0.92 (prior $1.00).Goldman Sachsanalyst Toshiya Hari reiterated a Buy rating on ON Semiconductor with a price target of $89 (up from $81 prior).ON reported a modest upside to Street’s first-quarter 2024 EPS expectations ($1.08 vs. $1.04) and provided a better-than-feared fiscal second-quarter adjusted gross margin outlook of 45.2% (mid-point).While the near-term outlook for the SiC business remains uncertain, Hari remained constructive on the company’s long-term growth potential given its above-average exposure to applications in secular growth
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Why HSBC Stock Topped the Market Today
| 2024-04-30 |
It covers the following details: Sprawling international banking conglomerateHSBC Holdings(NYSE: HSBC)pleased the market with its first quarterly-earnings report of 2024, although the company's CEO shocked some with a surprise resignation.Both of these developments occurred well before market open Tuesday. Investors reacted to them by trading the company's U.S.-listed American depositary receipts (ADRs) up by more than 3.3% across the day. That contrasted well with theS&P 500index's 1.3% slide.A convincing top-line beat and a resignationTaking the earlier of those two big news items first, HSBC announced that CEO Noel Quinn informed the bank's board of directors that he is stepping down after a five-year stint in the position. His date of departure hasn't been set; the company said he will continue in the role while the board goes through the process of finding a successor. It said it will consider both internal candidates and outsiders for the job.HSBC's first-quarter results were unveiled just after that, revealing that thebankearned revenue of $20.8 billion, or 3% higher year over year. Net income, when adjusted for certain one-time or extraordinary items, fell to $6.3 billion ($0.34 per ADR) from the year-ago profit of slightly over $7 billion.That top-line figure well exceeded the average-analyst estimate of $16.7 billion. Estimates for adjusted-net income were not available.Shareholder returnsHSBC also declared an interim dividend of $0.10 per ADR, plus a special dividend totaling $0.21 per ADR from the recent sale of its Canadian assets. Bolstering these shareholder-pleasing measures, it also announced its intention to launch a new stock-repurchase program of up to $3 billion.The two dividends will be paid in June; the company did not get more precise about timing, nor did it specify an ex-dividend date or dates. It plans to begin the share-buyback initiative after its annual general meeting in May.Should you invest $1,000 in HSBC Holdings right now?Before you buy stock in HSBC Hold
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Warner Bros. Discovery stock tumbles as NBC reportedly preps bid for NBA rights
| 2024-04-30 |
It covers the following details: Warner Bros. Discovery (WBD) stock closed more than 9% lower on Tuesday afterthe Wall Street Journal reported late Mondaythat Comcast's NBCUniversal (CMCSA) is working on a bid for an NBA rights deal that could move the league off Warner Bros.'s TNT network.Tuesday's decline saw the lowest close since Feb. 24, 2009, for the stock.According to theWall Street Journal, NBC is nearing a deal to pay $2.5 billion a year to air a package of NBA games, more than double the $1.2 billion annual fee Warner Bros. Discovery currently shells out.The package would reportedly include playoff and regular season games that would air on the NBC network, along with the company's flagship streaming service Peacock.Warner Bros. Discovery was unable to strike a new agreement with the league before its exclusive negotiation period expired last week, according to the report. The NBA's current rights deal expires at the end of next season.Disney (DIS), the NBA's other major broadcast partner, has reportedly agreed to increase its payment of $1.5 billion a year to $2.6 billion in order to renew its deal, according to the Journal.Amazon (AMZN) is alsoin talksfor a streaming rights package through its Prime Video service.The interest in sports rights has escalated in recent years with tech giants like Amazon, Apple (AAPL), and YouTube (GOOG,GOOGL) committing more heavily to streaming deals over the past several years.Los Angeles Lakers forward LeBron James (23) dunks during the first half of Game 3 of an NBA basketball first-round playoff series against the Denver Nuggets in Los Angeles, Thursday, April 25, 2024. (AP Photo/Ashley Landis)(ASSOCIATED PRESS)Amazon, which debuted thefirst Black Friday NFL gamein November, agreed to spend $1 billionannuallyfor its 11-yearNFL Thursday Night Footballdeal, while Google's YouTube coughed up areported$2.5 billion to acquire the sought-after rights toNFL Sunday Ticket.Apple, meanwhile,announceda 10-year, $2.5 billion
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Extreme Bond Market Shorts Gamble on a Hawkish Powell Pivot
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Bond traders who’ve been stung by the market’s recent rout are turning more and more bearish ahead of what many expect will be a hawkish tilt by the Federal Reserve.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 Automa
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Here's Why E2open Parent Holdings Stock Soared Higher Today
| 2024-04-30 |
It covers the following details: Shares of supply chain software companyE2open Parent Holdings(NYSE: ETWO)soared higher on Tuesday after it reported financial results for its fiscal fourth quarter of 2024. TheS&P 500was down a sharp 1.1%. In contrast, E2open stock was up a whopping 16% as of 3 p.m. ET.E2open beat really low expectationsE2open offers cloud-based software as a service(SaaS)formanaging supply chains, which would seem to be an in-demand product given the broad supply chain volatility in recent years. However, the company's total Q4 revenue of $159 million was down almost 5% year over year.Investors may have been optimistic nevertheless because E2open earned adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $220 million in its fiscal 2024. Considering it has an enterprise value (EV) of about $2.3 billion as of this writing, it trades at a downright cheap EV-to-EBITDA ratio of about 10.The cheap valuation suggests that expectations from investors were low going into E2open's earnings report. But even though revenue was down, investors were pleased relative to their low expectations.Is E2open a turnaround candidate?Looking ahead, newly appointed CEO Andrew Appel is doing some introspection. The company's current gross retention rate is 90%, which is down from last year and has serious room for improvement. This is partly motivating the company to do a strategic review of the business. It doesn't intend to sell, but it clearly needs to do better at gaining and retaining customers if it's going to be a long-term success story.E2open is promising, and perhaps this is why billionaire investor Paul Singer has taken an interest in the company through his hedge fund Elliot Investment Management. The fund often looks to companies that are in a slump but can turn things around.That said, E2open doesn't expect to turbocharge its financial results quickly. The company is already in its fiscal 2025, and it expects revenue to basically be flat from fiscal 2024. Adjusted EBITDA is also expected to
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AMD beats on Q1 revenue and EPS, stock edges lower on light guidance
| 2024-04-30 |
It covers the following details: Chip giant AMD (AMD) reported its first quarter earnings on Tuesday beating analysts' expectations on the top and bottom lines, but lighter-than-anticipated guidance for the current quarter sent the stock lower.Shares in the chipmaker were down more than 6% in early trading on Wednesday.AMD's announcement follows rival Intel’s disappointing report last week, in which it posted a lower-than-anticipated revenue outlook for the current quarter.AMD said it expects Q2 revenue of between $5.4 billion and $6 billion; estimates called for $5.72 billion.AMD reported adjusted earnings per share (EPS) of $0.62 on revenue of $5.5 billion.Wall Street was looking for adjusted EPS of $0.61 on revenue of $5.45 billion. The company reported EPS of $0.60 on revenue of $5.35 billion in the same quarter last year.Importantly, AMD saw better-than-anticipated Data Center revenue in the quarter, with the company reporting sales of $2.34 billion. Wall Street was looking for $2.31 billion.AMD’s MI300 chips are meant to go head-to-head with Nvidia’s (NVDA) bestselling H100 line of accelerators. The company previously said that its MI300X beats out Nvidia’s chips, a claim Nvidia rejected. Intel is also chasing Nvidia’s H100 platform with its Gaudi 3 accelerators.Lisa Su, CEO of AMD, speaks onstage during Vox Media's 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on Sept. 26, 2023, in Dana Point, Calif. (Jerod Harris/Getty Images for Vox Media)(Jerod Harris via Getty Images)Nvidia, however, announced its follow-up to the H100, the Blackwell platform, during its GTC conference in March. This platform should offer better performance than its predecessor.The AI arms race isn’t slowing anytime soon, either. Microsoft (MSFT), Google (GOOG,GOOGL), and Meta (META) each announced that they’re pouring money into
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Are money market accounts insured by the FDIC?
| 2024-04-30 |
It covers the following details: If you’re thinking about opening a money market account, it’s important to ensure that the account is FDIC-insured. Here’s why, and how you can check.
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Wall Street Hit by Fed Jitters to Close Wild April: Markets Wrap
| 2024-04-30 |
It covers the following details: (Bloomberg) -- The stock market sank in the final stretch of April and bond yields climbed on concern that stubborn inflation will force the Federal Reserve to keep interest rates higher for longer.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 Bl
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The stock rally is masking stagflation risk raised by the latest GDP report, JPMorgan says
| 2024-04-30 |
It covers the following details: Yuichiro Chino/Getty ImagesJPMorgan says the recent stock rebound driven by robust earnings masks looming stagflationary risks.The soft landing narrative is challenged by the first-quarter GDP report.There's evidence that the worldwide disinflation trend has come to a halt, the bank said.The recent rally in the stock market, bolstered by a wave of upbeat earnings, is glossing over a host of risks raised by the latest economic data points, JPMorgan said this week.Earnings season has gained momentum withstrong first-quarter reportsfrom tech stalwartsAlphabetandMicrosoft, among others, following a weekslong pullback, but JPMorgan's Marko Kolanovic said the latest "downside surprise" on first-quarter GDP and the "upside surprise" on inflation challenge the "soft landing views held by many in the market."While the worry for risk markets is overheating that jeopardizes rate cutting, in contrast to the overheating story, the recent GDP print heads in a stagflationary direction relative to market expectations," the JPMorgan team said in a note on Monday.Analysts explained that hopes for a soft landing were built on strong economic growth and prospects that inflation would calm down once a few key problem sectors settled back down, particularly rent inflation and auto insurance.However, the recent economic data has dashed those hopes, and Kolanovic said the message of lower growth and higher inflation — a situation that points the way to stagflation — hasn't been received by market.The fresh real gross domestic product index roseat an annualized rate of 1.6%, less than the estimated 2.5%. Meanwhile, the Fed's go-to inflation measure exceeded the forecasted 2.7% in March,clocking in 2.8%.The bank said that there's solid proof that the worldwide trend of disinflation has come to a halt.Even on the earnings front, JPMorgan analysts said they are "not overly impressed" so far this season.Among the roughly 42% of S&P 500 companies having reported, 75% are beating EPS estimates, but only 59% are topping revenue estimates, slipping below the 63% average.Other Wall Street voices have sounded off on the risk of stagfl
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Stock market today: Nasdaq sinks 2% as stocks plummet to end worst month of 2024
| 2024-04-30 |
It covers the following details: US stocks closed in a sea of red on Tuesday to close Wall Street's worst month of 2024, as new labor data came in hotter than expected while investors await the Federal Reserve's upcominginterest rate decisionand digest strong earnings from Amazon (AMZN).The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each nosedived to end the trading day, falling roughly 1.6% and 2%, respectively. The Dow Jones Industrial Average (^DJI) fell about 1.5% while the yield on the 10-year Treasury (^TNX) jumped about 7 basis points to trade near 4.69%.According tonew datareleased by the Bureau of Labor Statistics early Tuesday, the employment cost index, which measures compensation and benefits, increased 1.2% from December to March — the highest increase in a year — after rising 0.9% at the end of 2023.Wages and salaries increased by 1.1% over that same three-month period, while benefit costs also increased by 1.1%. The data adds to ongoing concerns that persistently high wages are keeping inflation levels elevated.Investors are bracing for policymakers to hold interest rates at historically elevated levels at the Fed's two-day meeting, which began Tuesday.Amazon's results after the bell showed a beaton both the top and bottom linesas investors cheered a strong showing from its cloud computing segment. Shares popped as much as 5% in after hours trading.LIVE COVERAGE IS OVER16 updatesTue, April 30, 2024 at 1:39 PM PDTAlexandra CanalA tale of two earnings: Amazon, StarbucksIt was a tale of two earnings stories on Tuesday as results from Amazon (AMZN) and Starbucks (SBUX) highlighted the after-hours calendar for investors.Amazonshares jumped as much as 5% in after hours trading after the tech giant topped Wall Street estimates on both the top and bottom lines and showed strong results from its cloud computing segment. Sales of Amazon Web Services (AWS) jumped 17% year over year.Yahoo Finance's Hamza Shaban breaks down the results here.
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Amazon stock pops after earnings beat
| 2024-04-30 |
It covers the following details: Amazon (AMZN) reported first quarter earnings that topped Wall Street estimates on the top and bottom lines, sending shares of the retail giant up around 3% in morning trading Wednesday.Powered by a strong showing from its cloud computing segment, Amazon continued a wave of Big Tech results that have mostly wowed Wall Street even as investors turn their focus to the conclusion of the Fed's May policy meeting on Wednesday.Net sales rose 13% from the same period last year to $143.3 billion, Amazon reported late Tuesday, topping analyst expectations of $142.6 billion, per Bloomberg data. The beat was driven by a 16% jump in Amazon Web Services (AWS) revenue, which Amazon said is on course to generate $100 billion annually.The company reported adjusted earnings per share of $0.98 versus consensus estimates of $0.83."We were really encouraged by the discipline on the bottom line," Jefferies analyst Brent Thill says on$AMZNQ1 earnings, which were driven by AI-fueled cloud growth. "We're encouraged by the discipline on the top line."pic.twitter.com/C7Y2pG9Tvt— Yahoo Finance (@YahooFinance)May 1, 2024Like its competitors Microsoft (MSFT) and Alphabet (GOOG,GOOGL), Amazon is wielding its heft in its cloud computing business to gain an edge in the nascent AI market. AI tools require huge amounts of data and processing power to train and run large language models and their applications, relying on cloud providers to supply vital infrastructure.Amazon CFO Brian Olsavsky said on a call with reporters following the report that overall capital expenditures are expected to "meaningfully" increase this year from nearly $50 billion in 2023, driven by higher infrastructure costs to support growth in AWS.Amazon is seeing strong demand on the AWS side, with customers signing up for longer deals with bigger commitments, many with generative AI components, he said.Advertising was another strong contributor to Q1 revenue growth. The company matched analyst expectations of $11.8 billion, up 24% from the same period last year.Even as Amazon dazzled with growth across its businesses, its outlook flashed some signs of a potential pullback in consumer spending."What
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Starbucks cuts annual sales forecast as demand cools in key US, China markets
| 2024-04-30 |
It covers the following details: By Juveria Tabassum(Reuters) -Starbucks on Tuesday cut its annual sales forecast after reporting a fall in same-store sales for the first time in nearly three years, as it struggles with weak demand for its coffees in the United States and China, its two biggest markets.Shares of the company slumped 12% on Tuesday in extended trading as the coffee chain also missed estimates for quarterly profit and flagged a hit from geopolitical uncertainties in the Middle East.Starbucks expects comparable sales growth - both globally and in the U.S. - to be in the range of a low single-digit decline to flat for the full year, down from its previous range of 4% to 6% growth.The second quarter was "challenging", CFO Rachel Ruggeri said on a post-earnings call."...Headwinds consistently persisted throughout the quarter leading us to revamp our actions and response plans to both unlock and attract demand," Ruggeri said.Western brands such as Starbucks and McDonald's are also feeling the impact of a boycott campaign in the Middle East and certain other countries over Israel's military offensive in the Gaza Strip.In the U.S., Starbucks faced decelerating demand as cold weather in January and a choppy macro environment weighed on sales of its pricier beverages.The coffee chain's second-quarter global comparable sales fell 4%, compared with a 1.44% rise estimated by analysts, according to LSEG data."We still see the effects of a slower-than-expected recovery, and we see fierce competition among value players in the market," CEO Laxman Narasimhan said on a post-earnings callComparable sales fell 11% in China and 3% in the United States."In the near term we think the company would be well-served to articulate a plan to reinvigorate traffic trends," said Matthew Goodman, senior analyst at research firm M Science.Data from M Science shows that sales growth decelerated further month-over-month in February and has yet to recover, including in the current quarter.Operating margin in the reported quarter fell 240 basis points to 12.8% as Starbucks grappled with a tough labor market and increased union actions, while boost
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Pot Stocks Surge on Report DEA Set to Reclassify Marijuana
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Shares of cannabis-related companies jumped Tuesday after the US Drug Enforcement Administration moved to reclassify marijuana to a less dangerous drug category in what would be a historic shift for the industry. 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 M
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Why Snap Stock Was Climbing Today
| 2024-04-30 |
It covers the following details: Shares ofSnap(NYSE: SNAP)were moving higher today on reports that the European Union could also move to block TikTok, following in the footsteps of recent proposed legislation in the U.S. And Snap shares continued to drift higher after last week's strong first-quarter earnings report.As of 3:07 p.m. ET on Tuesday, the social media stock was up 4.8% on the news.Image source: Getty Images.The clock is ticking on TikTokSnap, the parent of Snapchat, and its social media peers have gotten a boost from recent legislation that could ban TikTok in the U.S. Investors seem to believe that such a move would push users toward alternatives like Snapchat.Now, the E.U. seems to be considering similar legislation. According to multiple media reports, European Commission President Ursula von der Leyen was open to restrictions on TikTok, saying in a debate, "We know exactly the danger of TikTok." That followed the commission's second formal investigation into TikTok last week.Separately, investors continued to push Snap's stock up after last week's impressive first-quarter results as it has gotten several upgrades since then.The company delivered solid beats on the top and bottom lines in the quarter and gave better-than-expected guidance. It also continues to see solid user growth, indicating that the platform remains popular despite competition from the likes of TikTok and Instagram.What's next for SnapBased on the stock's movements, investors seem to think that Snap would be the biggest beneficiary from a TikTok ban, but that alone doesn't seem like a good reason to invest. A ban is likely to take years to play out in the courts, and a divestiture -- one alternative -- might not significantly benefit the Snapchat parent.However, if Snap can keep up its momentum from the first quarter, which included 21% revenue growth, the stock could easily move higher. The company still needs to make significant progress toward profitability on the basis of generally accepted accounting principles (GAAP), but the future looks brighter after the recent report.Should you invest $1,000 in Snap right now?Before you buy stock in Snap, consider this:TheMotley Fool Stock Advisoranalyst team just
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Walgreens Stock Lashed as Investors Left With ‘Nothing to Go On’
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Walgreens Boots Alliance Inc. shares capped off their worst month in more than five years as the troubled drugstore chain navigates a difficult turnaround that has caused investors to flee the stock.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 Superch
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Rogoff Says Markets Will Thwart Any Political Pressure on Fed
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Harvard University economics professor Kenneth Rogoff said that financial markets would effectively impose restraint on any move by a US president to force the Federal Reserve into easing monetary policy.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 Su
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Apple's Glass Supplier Corning Outperforms in Tough Market, Eyes $3B Sales Boost in Three Years
| 2024-04-30 |
It covers the following details: Apple's Glass Supplier Corning Outperforms in Tough Market, Eyes $3B Sales Boost in Three YearsCorning Inc(NYSE:GLW) reported a fiscal first-quarter 2024 core sales decline of 3% year-on-year to $3.26 billion, beating theconsensus of $3.12 billion.TheApple Inc(NASDAQ:AAPL) glass supplier’s core EPS of $0.38 beat theconsensus of $0.35.Display Technologies’ sales grew by 14% year over year to $872 million, driven by higher volume and pricing actions in the second half of 2023. However, sales remained flattish quarter over quarter.Optical Communications sales declined 17% year over year to $930 million, reflecting temporarily lower carrier demand as customers continued to draw down inventory.Sales increased by 3% quarter over quarter, driven by growing sales in carriers and enterprises.Specialty Materials sales increased by 12% year over year to $454 million, driven by continued strong demand for premium smartphone cover materials and semiconductor-related products.The bet sales declined 4% Q/Q.Life Sciences sales decreased by 8% year over year to $236 million as customers in North America and Europe continued to draw down their inventory. The sales declined by 2% quarter over quarter.Environmental Technologies sales grew by 6% year over year to $455 million, driven by increased gasoline particulate filter adoption in China. The sales also grew by 6% quarter over quarter.Hemlock and Emerging Growth Businesses sales declined 19% year over year to $311 million, primarily reflecting lower pricing for solar-grade polysilicon and lower sales in Corning Pharmaceutical Technologies from the completion of volume commitments for COVID-related products. The sales decreased 13% quarter over quarter.The core gross margin increased by 160 bps to 36.8%, reflecting the continued benefit of pricing and productivity improvement actions. The adjusted free cash flow used was $(62) million versus $(383
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Bonds for Florida High-Speed Rail Pop in Market ‘Starved’ for High-Yield Munis
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Municipal bonds issued last week for Florida’s private rail operator, Brightline, climbed in the secondary market as investors clamored for new high-yield securities. 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 Auto
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Why ArcBest Stock Drove Off the Road Today
| 2024-04-30 |
It covers the following details: A miserable earnings season for the trucking sector continued on Tuesday with results fromArcBest(NASDAQ: ARCB). Shares of the Arkansas-based transportation and logistics provider traded down 13% as of 2:30 p.m. ET following the release of its quarterly earnings report.A cool climate for demandArcBest investors were likely fearing the worst, ahead of the company's earnings release. A number oftrucking stocksthat have already reported, including industry juggernautOld Dominion Freight Line, have posteddisappointing quartersdue to sluggish demand from large shipping customers.ArcBest was no different. The company earned $1.34 per share in the quarter on sales of $1 billion, which was light compared to the expected $1.53 per share in earnings on revenue of $1.03 billion. Revenue was down 3%, and total shipments per day decreased by 6.2% year over year.The trucking industry rebounded well after the pandemic on inventory restocking due to soaring demand for consumer goods, but large shippers turned cautious in 2023 amid signs that the economy could slow. Although the recession that some were fearing hasn't materialized, transportation companies haven't seen a bounce back in demand.Is ArcBest a buy on its post-earnings dip?Winter weather impacted the quarter, but the company saw some pricing momentum, thanks to a better mix of premium freight and decent contract renewal increases. That said, it's hard to get too excited about any trucker until the economy improves.ArcBest is a decent operator caught in a tough operating environment. Until this cyclical stock sees trends reverse, there's no reason for investors to rush in.Should you invest $1,000 in ArcBest right now?Before you buy stock in ArcBest, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and ArcBest 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 $537
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Private Equity Largely Absent From US IPO Market’s Recovery
| 2024-04-30 |
It covers the following details: (Bloomberg) -- While company founders and venture investors have been reaping gains from the listings market’s recent rebound, private equity has hardly benefited.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 AutomakersDivestments b
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Signal Says Avoid This Luxury Retail Stock
| 2024-04-30 |
It covers the following details: Retail stockTapestry Inc (NYSE:TPR)-- which owns luxury fashion brands Coach, Kate spade, among others -- has executed quite the V-shaped rally on the charts in the last nine months. The shares hit an annual low of $25.99 on Nov. 1, only to bounce back in three months and score a two-year high of $48.80 on Feb. 23. Now battling its year-over-year breakeven level, TPR is entering a historically bearish month.The stock appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of 25 worst S&P 500 Index (SPX) stocks in May in the last decade. TPR averaged a 4.3% loss for the month, finishing positive only twice out of those 10 years.Worst Stocks May 2024From the equity's current perch at $40.22, that would mean a move down to roughly $38.50 and below the 12-month breakeven level. Amid a 15% drawdown this quarter, the shares have breached their 100-day moving average, and are now testing the 120-day trendline. The 10% year-to-date level also stands out as potential resistance going forward.TPR Stock ChartDespite the middling performance, 13 of the 19 brokerages in coverage maintain "buy" or better ratings, with zero "holds" on the books. And with a slim 2.7% of the stock's total available float sold short, there's plenty of room aboard the bearish bandwagon.The security looks to be a good target for premium buyers,, based on itsSchaeffer's Volatility Scorecard (SVS)of 95 (out of 100). In other words, the shares have regularly made bigger moves than options traders were pricing in during the last 12 months.
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Pot stocks jump as U.S. DOJ moves to reclassify cannabis as a less dangerous drug
| 2024-04-30 |
It covers the following details: By Tanay Dhumal(Reuters) -Shares of cannabis companies surged on Tuesday afternoon after the U.S. Department of Justice (DoJ) moved to reclassify marijuana as a less dangerous drug.U.S.-listed shares of Cronos Group, Tilray Brands and Canopy Growth rose between 14.9% and 67.7%, while ETF AdvisorShares Pure US Cannabis soared 24.8%.Canada-listed Green Thumb Industries and Trulieve Cannabis were also up 26.6% and 37.3%, respectively.Cannabis firms are taxed under section 280E as a part of Schedule I drug, which disallows them from deducting normal business expenses from their profit, increasing tax burden for the companies. Reclassifying to Schedule III would eliminate this tax, helping towards their profitability."This would result in meaningful cash benefits for operators and we estimate a cash benefit upwards of $150 mln," Alliance Global Partners analyst Aaron Grey said in a note.The proposal, which, if finalized, could potentially be the most significant shift in federal cannabis policy in 40 years, is being sent to the White House Office of Management and Budget for review and to finalize the rule-making process, sources told Reuters.The reclassification will not legalize marijuana outright for recreational use.Shares of U.S.-listed marijuana companies had similarly soared in 2019 after Canada legalized recreational marijuana use, but the rally collapsed the following year as underwhelming revenue numbers failed to justify their sky-high valuations.(Reporting by Tanay Dhumal in Bengaluru; Editing by Tasim Zahid and Anil D'Silva)
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Here's Why Harmonic Stock Soared Higher While the Nasdaq Dropped
| 2024-04-30 |
It covers the following details: Shares of video-streaming technology companyHarmonic(NASDAQ: HLIT)soared higher on Tuesday after reporting financial results for the first quarter of 2024. As of 2 p.m. ET, Harmonic stock was up 15% in stark contrast to the 1% drop for theNasdaq.Revenue is down, but the backlog is upIn Q1, Harmonic generated revenue of $122 million, which was down 23% year over year. This included a 21% decline in its broadband-segment revenue and a 25% decline in its smaller video-segment revenue. The company'sgross marginalso went down. And on the bottom line, it had anet lossof $8 million compared with net income of $5 million in the prior-year period.With all the financial metrics trending in the wrong direction, investors might rightly wonder why Harmonic stock is up. Here's why: There's some cyclicality with the company's revenue, and one number points to improvements in the near future.Harmonic's backlog was at $678 million at the end of Q1. Not only is this a record backlog for the company, the backlog was up 9% year over year. Therefore, this metric is pointing to revenue growth in the not-so-distant future as this backlog is realized.The future is the video businessHarmonic's video segment accounted for 35% of its Q1 revenue. Management had conducted a strategic review of the segment. But earlier this month it elected to keep it instead of divesting it.Harmonic's video-business technology improves live-streaming capabilities, including live streaming for sports, which certainly seems like an idea on the right side of industry trends. And the company boasts some impressive customers, including its two biggest customersComcastandCharter Communications.Considering its video-segment revenue is higher margin, it makes sense that Harmonic would keep it and focus on it. However, the company still has work to do when it comes to growing this part of the business and turning a consistent profit. Expect incoming CEO Nimrod Ben-Natan to talk more about this when Harmonic has its investor-day presentation on June 13.Should you invest $1,000
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Here's What's Happening in Markets: April 30
| 2024-04-30 |
It covers the following details: ETF Investing ToolsMarkets fell midday Tuesday as the Fed kicked off its two-day policy meeting.Tomorrow afternoon, the Fed is expected to announce it will hold interest rates steady. Investors will also be paying attention to corporate earnings fromAmazon.com Inc. which is set to report today after the bell, andAppleInc., which reports on Thursday.SPY, theSPDR S&P 500 ETF Trustslid more than half a percentage point as the S&P 500 took a leg lower by midday trading. DIA, theSPDR Dow Jones Industrial Average ETF Trustwas also in the red at midday, sinking nearly 1%. Markets are headed toward an April decline, the first monthly drop since November.SPY vs DIAPerformanceSource: etf.comTech stocks are also in the red as investors get ready for two Mag 7 stocks, Amazon and Apple, to report this week. QQQ, theInvesco QQQ Trustwhich tracks the tech-heavy Nasdaq, slid by more than three-quarters of a point. MAGS, theRoundhill Magnificent Seven ETFwhich holds the Magnificent Seven in its fund, dropped nearly 1.5% at midday.Inflows in technology ETFs have risen this year as investors, beaten down by a "higher for longer" rate environment, have turned to high growth stocks and funds for gains.MAGS has seen inflows of just over $197M so far this year, according to etf.com data. Meanwhile QQQ inflows have topped $8.6B.QQQ 2024Fund FlowsSource: etf.comTech has continued to perform well in 2024, despite higher interest rates that typically keep high growth stocks under pressure. Wednesday, the Federal Reserve is expected to hold rates steady as persistent inflation keeps the Fed hawkish.According to theCME Fed Watch Tool, investors are not forecasting a rate cut until September. Traders had started 2024 with the belief that the Fed would deliver 6 rate cuts this year, an expectation that has now been slashed to just one.Permalink| © Copyright 2024etf.com.All rights reserved
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Why ATI Stock Is Flying High Today
| 2024-04-30 |
It covers the following details: Material sciences specialistATI(NYSE: ATI)reported a strong first quarter, and its guidance implies that issues atBoeingare not softening demand for its products. Investors are relieved, sending ATI shares up 17% as of 2 p.m. ET.Steady results in a tough environmentATI makes high-performance materials for theaerospace, defense, healthcare, and energy markets. It is best known for the composite fibers used to replace heavier metals on aircraft to improve fuel economy.ATI earned $0.48 per share in the quarter on sales of $1.04 billion, topping Wall Street expectations for $0.41 per share in earnings on sales of $1.03 billion. Sales to the aerospace and defense sector were up 7% year over year, fueling the beat.The company said it has moved past outages and weather impacts that have weighed on results. As a result, the company is raising its full-year earning guidance to $2.30 to $2.60 per share, up from $2.12 to $2.52, and raised its free-cash-flow guidance by $15 million to $260 million to $340 million."ATI's outlook continues to be strong and is supported by a robust backlog of commercial aircraft orders," CEO Robert S. Wetherbee said in a statement. He added thatContinued demand in our core markets and increasing production capacity provide a clear path for achieving our robust 2024 and 2025 financial targets, as well as exceeding both $5 billion in revenue and $1 billion in adjustedEBITDAby 2027.Is ATI a buy after its strong quarterly results?The entire aerospace sector is grappling with Boeing's manufacturing slowdown. These results should go a long way toward calming some of the fears around ATI.Sales of commercial airframe and engine components have been wobbly quarter to quarter, but defense revenue grew 20% year over year in the quarter, and electronics sales were up more than 50%.ATI is unlikely to soar until Boeing's issues are resolved, but the quarter is a reminder that the company has a lot more going on than just supplying new Boeing jets. Investors are understand
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Target This Outperforming Chip Stock in May
| 2024-04-30 |
It covers the following details: It's been a blockbuster year forNVIDIA Corp (NASDAQ:NVDA). The semiconductor company andMagnificent Sevenmember became one of the world's most valuable publicly traded companies thanks to its position as a leading artificial intelligence (AI) chipmaker. Below, we will further explore the security's chart performance, and why it may offer a solid investment opportunity over the next month.Specifically, NVDA appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of best S&P 500 Index (SPX) stocks in May in the last decade. More specifically, the security averaged a 12.6% jump for the month, notching a positive settlement during eight out of those 10 years.Best of May 2024On the charts, Nvidia stock is in the midst of a V-shaped rally as it looks to reclaim its March 25, record close of $950.02. The shares are vastly outperforming the VanEck Semiconductor ETF's (SMH) 24.2% year-to-date gain, with the former up 76% in 2024.NVDA Chart April 302024
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Why GE HealthCare Technologies Stock Just Crashed 14%
| 2024-04-30 |
It covers the following details: GE HealthCare Technologies(NASDAQ: GEHC), one-third of the industrial behemoth thatused to be General Electric, saw its shares crater 13.7% through 1:30 p.m. ET after reporting a narrow earnings miss Tuesday.Heading into earnings, analysts forecast GE HealthCare would earn $0.91 per share (adjusted for one-time items) on $4.8 billion in the first quarter of 2024 sales. Instead, the company reported a $0.90 per-share profit and sales of $4.6 billion.GE HealthCare Q1 sales and earningsSales for the quarter declined 1% instead of growing as they were expected to do, which is one reason investors were disappointed. GE HealthCare also noted that its book-to-bill ratio was an anemic 1.03, implying little chance of sales ticking significantly higher in the near term.On the plus side, net profit marginsdidtick up 10 basis points, and earnings moved markedly higher -- up 6% on an adjusted basis and up nearly 100% as calculated according to generally accepted accounting principles (GAAP).GAAP earnings, by the way, were $0.81 per share.Is GE HealthCare stock a sell?Turning to guidance, management did not give a GAAP forecast for 2024 earnings, saying only that adjusted earnings will range from $4.20 to $4.35 per share -- 7% to 11% growth year over year. At the midpoint of that guidance range, this would imply GE HealthCare is an 18 price-to-earnings (P/E) stock growing at 9%, resulting in a price-to-earnings-to-growth (PEG) ratio of 2 (which seems expensive).And that's the good news. Valued on its free-cash-flow (FCF) projection of $1.8 billion this year, GE HealthCare stock sells for closer to a 22.5 multiple, giving the stock a price-to-FCF ratio of about 2.5. (And both these valuations get even more expensive once GE HealthCare's $7.3 billion net debt load is fact
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Why Warner Bros. Discovery Stock Tumbled Today
| 2024-04-30 |
It covers the following details: Shares ofWarner Bros. Discovery(NASDAQ: WBD)were heading lower today on reports that its TNT cable network was expected to lose the rights to air the NBA in the latest auction.Separately, the stock also seemed to be declining in response toParamountGlobal's slide after its rival reported disappointing earnings and took a step closer to a merger, seemingly putting a nail in the coffin of a once-rumored merger with Warner Bros. Discovery.As of 1:26 p.m. ET, Warner Bros. Discovery stock was down 9% on the news.Image source: Getty Images.WBD goes from bad to worseJust when you think things can't get worse for Warner Bros. Discovery, the stock finds a way to plumb new depths.Investors seemed disappointed in the news that the network was likely to lose NBA rights toComcast, whose NBC subsidiary was set to pay $2.5 billion a year for them, about double the average of what TNT has paid in its current deal. According toThe Wall Street Journal, WBD is eager to keep those rights, but may not be able to match NBC's offer.Losing the NBA would not only be a setback for TNT and the Max streaming service, but could jeopardize the company's position in the announced sports streaming joint venture withWalt DisneyandFox, as it would clearly give it less to contribute.Additionally, Paramount's post-earnings slide today seemed to weigh on Warner Bros. Discovery stock. The WBD rival let go of CEO Bob Bakish in anticipation of a deal with Skydance and reported improved results in the streaming division.Can WBD bounce back?Warner Bros. Discovery has some of the most attractive properties in the entertainment industry, including HBO, the Warner Bros. studio, and the Turner networks, including CNN. However, the company is also saddled with debt from its series of mergers, and CEO David Zaslav has been more focused on cost-cutting than building a growing business.With today's sell-off, investors seem to be signaling that theentertainment stockis going to be punished for continuing to retreat rather than spending on valuable content.We'll learn more when the company reports first-quarter earnings on
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Chegg Slumps as Wall Street Sees AI Threat to Homework-Help Firm
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Shares of online-education firm Chegg Inc. were on track for their biggest drop in about a year as competition from AI tools led Wall Street analysts to downgrade the stock.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 Othe
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Amazon Results to Bring More Scrutiny for AI-Tethered Stocks
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Amazon.com Inc.’s “show-me” moment will arrive on Tuesday when its earnings become the latest litmus test on appetite for heavy artificial intelligence spending.Most Read from BloombergTruce Talks Shift to Qatar as Hamas Hits Israel Border CrossingFrance’s Macron Calls for Reset of Economic Ties With ChinaBuffett Praises Apple After Trimming It, Drops Paramount StakeEverything Apple Plans to Show at May 7 ‘Let Loose’ iPad EventWorsening Weather Is Igniting a $25 Billion MarketThe message so far from investors: shares of firms that demonstrate progress in monetizing AI will be rewarded, while firms that don’t will see their stock price punished.Last week’s misfire by Meta Platforms Inc. triggered a roughly $400 billion selloff in tech stocks amid concerns about the benefits of heavy spending on artificial intelligence. Later results from Alphabet Inc. and Microsoft Corp. eased those fears.When Amazon reports, scrutiny will be on its web services segment, where it uses generative AI. Options traders are pricing in a move of nearly 8% in either direction for the stock a day after the report, according to data compiled by Bloomberg.“It’s all about AWS, how much they’re maintaining market share and then what they’re doing in AI to increase the bottom line,” said Paul Marino of GraniteShares.“Amazon has an incredibly steady retail business and that’s all great and they’re a dominant player — but none of that means anything if what they’re doing in the cloud, and what they’re going to do with AI, doesn’t bear fruit.”Shares of Amazon fell as much as 1.4% on Tuesday, after advancing 4% over the previous two trading days.Amazon believes generative AI cloud services can generate billions in revenue in the coming years, and has invested heavily in the technology to ramp up.Crucial to how well its report is received is how Amazon communicates its outlook, with Meta’s slump last week partly coming down to what investors regarded as a lack of clarity. That’s key at a time when traders are rapidly reassessing whether the Federal Reserve will cut interest rates this year.“They were not very clear about what the next couple of quarters look like, they were
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Why Oatly Group Stock Soared Today
| 2024-04-30 |
It covers the following details: Shares of alternative-milk companyOatly Group(NASDAQ: OTLY)soared on Tuesday after the company reported financial results for the first quarter of 2024. It's only a mild reprieve for a stock that's still 96% below its all-time high, but it was a welcome reprieve for shareholders, nonetheless, with Oatly stock up 15% as of 1:15 p.m. ET.A huge step forward with gross profitsWhen it comes to the top line, Oatly didn't turn any heads in Q1. The company's Q1 revenue of $199 million was up less than 2% year over year. However, management is shooting for profitable operations, and the company took a humongous step forward.In Q1, Oatly had agross marginof 27%. For perspective, its gross margin was only 17% in the prior-year period and 11% in 2022. Management credited improvements to its supply chain operations for the big jump. By contrast, its prices increased less than 2%.With its gross-margin improvement, Oatly is quickly bouncing back to the margin profile it had when it went public, as the chart below shows. (Keep in mind that the chart isn't up to date with Q1 results.)OTLY Revenue (TTM) ChartIs the progress enough?Oatly only expects 5% to 10% full-year revenue growth in 2024. Its gross-margin improvements are impressive. However, the company is still burning significant cash for its size, with negativefree cash flowof $45 million in Q1 alone.Oatly has cash and equivalents of just over $200 million as of the end of Q1, which will easily get it through the rest of the year at this pace. But its growth is moderating, and it's unclear how much more operating leverage it can find to improve its bottom line.This means that Oatly stock is still risky today, so investors need to know their risk tolerance. But Oatly stock could keep soaring if management can find ways to keep cleaning up the company's financials.Should you invest $1,000 in Oatly Group Ab right now?Before you buy stock in O
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8 best stock apps in May 2024
| 2024-04-30 |
It covers the following details: Looking for the best stock trading apps to get your money in the market? There’s a growing list of apps to choose from, which can make the search intimidating, especially if you’rejust starting to invest.The best stock apps let you quickly trade, track your account in real-time, help you learn about the markets and more — all at little to no cost.Here are some of the top apps to get you trading stocks in no time.Best stock apps to help you make moneyAll of these stock apps are great for beginners and they make it easy to start investing in the stock market with little money.Robinhood– Best app for active tradingPublic– Best app for building communityCharles Schwab– Best app for research, account typesWebull– Best app for margin trading, charting toolsFidelity Investments– Best app for managing money all-in-oneE-Trade– Best app for robust trading featuresAlly Invest– Best app for integration with bankingStash– Best app for round-up auto investingRobinhoodIf you’re looking for a smooth interface and zero trading fees, thenRobinhoodhas everything you need. Whether you’re trading stocks, ETFs, options or cryptocurrency, you’ll be able to do so seamlessly with Robinhood, the app that pioneered zero-commission trades and, some might argue, democratized trading for everyday people.Minimum balance required:$0Fees:No commissions for stock, ETF, options or crypto trades.Why we like itRobinhood’s stripped-down app is simple to navigate and will serve the needs of most stock traders well. The app gets you in the game faster: Instead of waiting several days for bank transfers to clear, Robinhood can move up to $1,000 into your trading account immediately.It also features a feed that aggregates articles from news and investing sites, making it easy to stay up on market trends and developments.Who is it best for?Traders who prefer a mobile-first feel and are looking for a quick way to trade stocks with no commission.PublicPublicis a unique app that lets you invest infractional sharesof stocks, making it accessible to investors on tighter budgets. It features a social media-like interface where you can follow other investors and see their holdings. You can also search through thematically linked stocks to get ideas and then get input from
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Is Hawkish Shift On Inflation Imminent? Wall Street Analysts, Traders Brace For Fed Impact
| 2024-04-30 |
It covers the following details: Is Hawkish Shift On Inflation Imminent? Wall Street Analysts, Traders Brace For Fed ImpactInvestors are on edge ahead of Wednesday’s Federal Open Market Committee meeting, as policymakers meet following a slew of higher-than-anticipated inflation readings that have dashed hopesfor near-term interest rate cuts.While there’s widespread agreement among Wall Street analysts that the Fed will maintain interest rates at the meeting, the focus now shifts to the central bank’s stance, specifically concerning the potential scope and timing of an anticipated rate-cutting cycle.During a recent public appearance, Fed ChairJerome Powellemphasized the need for more time for policy to take effect. This comes as the latest inflation data failed to instill confidence in the Fed’s ability to reach its 2% target.Recent inflation reports, including the Personal Consumption Expenditure (PCE) price index — theFed’s favorite inflation gauge— and data from the Bureau of Labor Statistics, have shown higher-than-expected inflation levels in each of the first three months of 2024.Read also:‘This Puts The Fed In Quite A Tricky Position’: 7 Economists Weigh In On March Inflation ReportAnalysts expect a more cautious approach from the FOMC in May, given the robust inflation and economic activity data. While no significant changes are expected in the statement’s forward guidance, there is a consensus for the Fed to announce the tapering of its balance sheet runoff, starting from June at a pace of $30 billion per month.Analysts anticipate a cumulative range of 25 to 100 basis points in rate cuts by the conclusion of 2024. Bank of America is at the forefront of hawkish predictions, suggesting only one cut this year, while Citigroup takes a more dovish position, advocating for a full percentage point reduction.Investors are pricing in a 35-basis-point cut in interest rates, with one 25-basis-point cut fully priced in by the end of the year, as implied by Fed futures pricing.Ahead of the Fed meeting, the policy-sensitive two-year Treasury yield traded at 5%, the highest level since mid-November 2023. The S&
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Stock market today: futures slip ahead of Amazon earnings and a key Fed update
| 2024-04-30 |
It covers the following details: Wall Street traders.Mario Tama/Getty ImagesUS stock futures retreated on Tuesday as Wall Street awaited key earnings reports and a Fed update.Amazon, Eli Lilly, McDonald's, and Starbucks are among the companies set to report earnings later.The Fed will weigh in on inflation and the outlook for interest rates on Wednesday.Stocks drifted lower in premarket trading on Tuesday as investors held their breath for marquee earnings reports and a critical update from the Federal Reserve.S&P 500andDow Jones Industrial Averagefutures were down 0.1% shortly after 5.30 a.m. ET, whileNasdaq 100futures traded marginally lower.The key10-year Treasury yieldrose by about 0.2% to 4.64%. The US Dollar Index — which tracks the buck's value against a basket of foreign currencies — advanced 0.3% to 105.9 points.The Fed is scheduled to begin its two-day meeting later. In January, the central bank was widely expected to cut interest rates significantly this year as inflation appeared to be normalizing. However, stubborn price growth hastempered Wall Street's hopesof a rate cut in the months ahead."We are preparing to hear Jerome Powell ask for more patience and for more time to abate inflation," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, in a morning note."If that's the case, we could see a further meltdown in Fed rate cut expectations. The next stop is no rate cut in 2024, which would be a cold shower for the bulls," she added.While companies' financial reports have broadly beaten expectations this earnings season, stocks could suffer if the Fed sounds the alarm on inflation and says it'seyeing further rate increases."If the Fed expectations turn undesirably hawkish, we could see the equity rally stall," Ozkardeskaya said.Amazon, Eli Lilly, Coca-Cola, McDonald's, and Starbucks are allexpected to report earningslater. Thekey data releasesinclude an update to the S&P Case-Shiller home price index and new consumer confidence figures.Read the original article onBusiness Insider
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Why Tesla Stock Flopped 5% on Tuesday
| 2024-04-30 |
It covers the following details: Up again, down againTesla(NASDAQ: TSLA)stock, the world's fastest electric roller coaster, tumbled 4.9% through 12:30 p.m. ET Tuesday, giving back one-third of the 15% gains it collected yesterday after announcingElon Muskwas meeting with China's premier to discuss FSD self-driving technology.And the reason for today's reversal? Tesla is laying off all workers on its uber-popular Tesla Supercharger EV charging team.What Electrek said about TeslaThe fact that Tesla is making job cuts, laying off 10% of its workforce in response to a sharp slowdown in sales, is no secret. But as electric transportation website Electrek reports today, new layoffs include "senior executives and longtime veterans," as well as "the entire Supercharging team."That's 500 more employees gone. And these include Rebecca Tinucci, Tesla's senior director of EV charging and the person responsible for arguably Tesla's biggest win of last year: signing up all other carmakers to use Tesla's NAC charging standard for their own electric cars.Is Tesla stock a sell?Tesla investors are rightly worried by the development, which seems to imply that Tesla is slowing its rollout of Supercharging stations, limiting its potential to grow as a provider of charging services. Up until now, as Electrek points out, Tesla seemed on course to become the "gas station of the future" to the entire auto industry, collecting billions in government subsidies along the way. Instead, Musk is voluntarily giving up his advantage, which feels like a gigantic unforced error.One could argue that Tesla has already "won" the charging game, now that everyone else has agreed to adopt Tesla's NAC technology as the standard for charging. And onecouldsay this is a "mission accomplished" situation, that the Supercharging team is no longer needed, and so there's no downside to laying them off. But this seems a crummy way to reward success -- and loyalty -- to Tesla. I can't imagine it will do anything good for employee morale.I can't imagine that will mean anything good for Tesla stock, either.Where to invest $
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GE HealthCare's Q1 Earnings Miss Wall Street Projections, But It Sticks To Annual Guidance
| 2024-04-30 |
It covers the following details: GE HealthCare's Q1 Earnings Miss Wall Street Projections, But It Sticks To Annual GuidanceGE Healthcare Technologies Inc(NASDAQ:GEHC) reported first-quarter sales of $4.6 billion, down 1% Y/Y, and were approximately flat on an Organic basis, with decreased volume partially offset by positive price, missing theconsensus of $4.8 billion.Net income attributable to GE HealthCare was $374 million versus $372 million for the prior year, and Adjusted EBIT was $681 millionversus $664 million.Total company book-to-bill was at 1.03 times, defined as Total orders divided by Total revenues. Total company orders increased by 1% organically year-over-year.The company posted an adjusted EPS of $0.90, compared to $0.85 in the prior year, missing the consensus of $0.91.Imaging segment revenues of $2.5 billion, down 1% Y/Y on the reported basis and flat organically.Ultrasound segment revenues of $824 million declined by 4% on both reported an Organic basis.Patient Care Solutions' Revenues of $747 million decreased by 4% on reported and organic basis. Pharmaceutical Diagnostics' revenues of $599 million increased by 7% reported and 8% on an Organic basis.Citing BTIG analyst, Reuters noted that "many of GE HealthCare's suppliers were noting weakness in China last quarter, so it makes some sense that we would see that come through (to this quarter)."Management struck an upbeat tone, "We delivered margin expansion while continuing to invest in innovation to solve the evolving needs of customers and patients," said CEO Peter Arduini in a news release. "This is reflected in our healthy backlog, orders growth, and positive book-to-bill...we expect to see business growth weighted toward the second half of 2024 consistent with our previous comments, and we remain on track to deliver our guidance for the year."Guidance:GE
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Why Coursera Stock Crashed to an All-Time Low Today
| 2024-04-30 |
It covers the following details: Shares of online education companyCoursera(NYSE: COUR)crashed on Tuesday and even briefly hit all-time lows in the first moments of trading today. Coursera stock has recovered a little from the bottom, but was still down about 12% as of noon ET.Where's the expected AI boost?Coursera just reported financial results for the first quarter of 2024, and in isolation, the numbers weren't bad. In Q1, the company generated revenue of $169 million, up 15% year over year. Itsgross marginimproved to 53% compared to 52% in the prior-year period. And it quintupled itscash from operationsto $24.5 million.Analysts were nevertheless discouraged because the numbers for Coursera aren't as good as expected. For starters, the company's Q1 revenue was at the low end of its guidance. And for 2024, management just lowered revenue expectations to $705 million, at best, compared with previous guidance of $730 million, at worst.Both management and the analyst community had expected courses for artificial intelligence (AI) to drive strong results for Coursera in 2024. However, by lowering guidance, it seems the boost isn't as advertised.What should investors do now?It's admittedly hard to know what to do with Coursera stock right now. On one hand, Q1 had some good numbers, so the drop seems like an overreaction. On the other hand, the company's new lower full-year revenue guidance implies just 10% year-over-year growth. Trading at about 2.5 times its trailing sales right now, Coursera stock seems reasonably valued, not necessarily a great deal.Online education is a tough business, and AI education isn't delivering as expected. Coursera has some strong partnerships and some promise. But investors might be better off taking the wait-and-see approach when it comes to believing the company can stimulate a better growth rate.Should you invest $1,000 in Coursera right now?Before you buy stock in Coursera, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best
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Why Woodward Stock Is Soaring Higher Today
| 2024-04-30 |
It covers the following details: Strong aerospace demand and China's push away from burning oil fueled better-than-expected earnings atWoodward(NASDAQ: WWD). The stock is up 8% as of noon ET after the company easily topped quarterly expectations.Robust demand and profitable growthWoodward is a diversifiedindustrialmanufacturer focused on power and control products for theaerospaceand heavy-equipment markets. The company's fiscal second quarter saw strong demand from China for natural gas truck and bus powertrains, as well as significant interest in aerospace spare parts.The company earned $1.62 per share in the quarter on sales of $835 million, topping Wall Street's $1.32 per share in earnings on sales of $807 million consensus estimate. Net sales were up 16%, and net earnings were up 170% to $98 million."Our improving operational performance allows us to capitalize on robust demand for Woodward products and services across both aerospace and industrial markets," CEO Chip Blankenship said in a statement. "As we drive profitable growth, operational excellence, and innovation, we remain well positioned to deliver long term shareholder value."Woodward now expects to earn between $5.70 and $6 per share for the full year, up from the $5 to $5.40 range announced in late January. The company also raised its guidance for industrial revenue growth by 500 basis points and said it expects the segment to be significantly more profitable than it guided for just a few months ago.Is Woodward stock a buy after its strong earnings report?Blankenship came to Woodward in 2022 with a strong reputation in the aerospace sector, and has done little to tarnish that reputation in his short time in charge. This company has done a good job focusing its portfolio on its most lucrative offerings, and the results are beginning to reflect that focus.Demand for commercial aerospace spare parts should remain strong, thanks to the ongoing issues atBoeingand delays on new plane development. China was more of a wild card heading into earnings because of questions about the country's economy, but Woodward's guidance suggests no slowdown.Shares of Woodward are now up 70% over the past year. If the company's guidance is correct
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Why Archer-Daniels-Midland Stock Was Falling Today
| 2024-04-30 |
It covers the following details: Shares ofArcher-Daniels-Midland(NYSE: ADM)were heading lower today after the agricultural company missed top-line estimates in its first-quarter earnings report. It did beat profit expectations, but earnings still fell.As a result, the stock was down 3.3% as of 11:05 a.m. ET on Tuesday.Image source: Getty Images.Falling prices weigh on resultsAs a grain processor and trader, ADM is sensitive to commodity prices, and falling prices due to an increase in supply have weighed on results. In the first quarter, revenue fell 9.3% to $21.8 billion, which was below estimates at $22.3 billion.Not surprisingly, the decline in revenue pushed profits lower as adjusted segment operating profit fell 24% to $1.31 billion, and adjusted earnings per share (EPS) declined from $2.09 to $1.46, though that topped the analyst consensus at $1.36.CEO Juan Luciano said, "ADM's solid first-quarter results showcased our team's ability to execute our strategy with agility in the face of anticipated challenging market conditions." The company is also focused on strategic initiatives like its Green Bison joint venture focused on soybean processing to create renewable diesel fuel.What's next for ADMThe agricultural company maintained its earnings guidance for the year, calling for adjusted EPS of $5.25 to $6.25, which compares favorably with the analyst consensus at $5.57.Price fluctuations are outside of its control, but investors could reward the company for its investments in green energy down the road. And the stock looks cheap, trading atforward price-to-earnings ratioaround 10, given that ADM looks like a good bet to recover from the current weakness in the industry.Should you invest $1,000 in Archer-Daniels-Midland right now?Before you buy stock in Archer-Daniels-Midland, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Archer-Daniels-Midland wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the
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Why Is Hospital Chain Operator Tenet Healthcare Stock Soaring On Tuesday?
| 2024-04-30 |
It covers the following details: Why Is Hospital Chain Operator Tenet Healthcare Stock Soaring On Tuesday?On Tuesday,Tenet Healthcare Corporation(NYSE:THC) reported first-quarter sales of $5.37 billion, up around 7% year over year, beating theconsensus of $5.15 billion. Tenet Healthcare operates hospitals and healthcare facilities.“We have had an outstanding start to the year highlighted by strong growth in revenues, admissions, and profitability,” said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.Adjusted EBITDA in first-quarter 2024 was $1.024 billion compared to $832 million a year ago, reflecting strong same-hospital admission growth, favorable payer mix, and improved contract labor costs, partially offset byhigher medical fees.Ambulatory Care net operating revenues increased 9.9% to $995 million, driven by strong net revenue per case growth, acquisitions and opening of de novo facilities, and increased service lines.Surgical business same-facility system-wide net patient service revenues increased 6.4%, with cases down 0.4% and net revenue per case up 6.8%.Hospital Operations and Services revenues increased 6.2% to $4.4 billion, primarily due to increased admissions, favorable payer mix, and improved pricing yield. This was partially offset by the impact of hospital sales in the first quarter of 2024.Outlook: Tenet Healthcare raised its fiscal year 2024 revenues guidance to $20 billion—$20.4 billion, up from prior guidance of $19.9 billion—$20.3 billion and the consensus of $20.37 billion.The guidance includes Hospital segment sales of $$15.85 billion-$16.1 billion and Ambulatory Segment sales guidance of $4.15 billion-$4.3 billion.The company forecasts adjusted EPS of $8.37-$9.41 versus a consensus of $6.11.The fiscal year 2024 adjusted EBITDA outlook is expected to be $3.5 billion to $3.7 billion, a $215 million
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Wall Street Helps Build $15 Billion Pot of Blended Finance
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Deals blending public and private funds reached a five-year high of $15 billion in 2023, as some of the world’s biggest banks and asset managers entered transactions with governments to tackle climate change.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 o
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Exclusive-S&P Global weighs options for mobility unit, sources say
| 2024-04-30 |
It covers the following details: By Amy-Jo Crowley and Milana VinnLONDON/NEW YORK (Reuters) -Financial information company S&P Global is weighing options for its mobility business, including a full sale, three people with knowledge of the matter told Reuters.The New York-listed group, known for its rating agency business and stock market indexes, has spoken with advisers over plans for the business, which provides vehicle, market and consumer data for original equipment manufacturers, the people said.Private equity firms in recent months have expressed interest in the unit, which is not viewed as a core part of S&P’s strategy, the people said. The unit could be valued at more than $12 billion, two of the people said.The sources, speaking on condition of anonymity because the talks are private, said that no decision had been made and a sale may not proceed.A spokesperson for S&P Global said: "We do not comment on market speculation."S&P in February said it was reviewing its portfolio of assets to focus on core areas of growth.The company said it would explore strategic options for marketing services firm Fincentric after agreeing to buy research platform Visible Alpha for an undisclosed sum.Revenue from S&P’s mobility segment grew 8% to $386 million in the most recent quarter from a year earlier, and totalled $1.4 billion in 2023.The unit made adjusted operating profit of $576 million in 2023, up 9% from the year before.S&P's deliberations stem from its belief that its market value does not fully reflect the sum of its parts and the fact that the unit has a very different customer base from the rest of the group, two of the people said.A move to sell the mobility unit would come as Thoma Bravo is seeking to sell its automotive data firm J.D. Power for $8 billion including debt.(Reporting by Amy-Jo Crowley in London and Milana Vinn in New York. Editing by Anousha Sakoui and Mark Potter)
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Why Crown Holdings Stock Jumped Today
| 2024-04-30 |
It covers the following details: Shares of packaging companyCrown Holdings(NYSE: CCK)jumped on Tuesday after the company reported financial results for the first quarter of 2024. As of 11:15 a.m. ET, Crown Holdings stock was up about 3% but had been up by nearly 6% earlier in the day.Lower sales but higher shipmentsIn Q1, net sales for Crown Holdings were down 6% year over year to about $2.8 billion. That would be discouraging without context.The encouraging context is that the company has deals with certain customers that pass on fluctuations in material costs. This negatively impacted sales in Q1. But shipments were up, including a 2.5% increase for beverage-can shipments, arguably the more important metric.On the bottom line, Crown Holdings' Q1net incomedropped by nearly 24% to $93 million. This translated intoearnings per share(EPS) of $0.56. But even though this was a decrease, analysts weren't too upset because this is about what they expected.Moreover, management for Crown Holdings kept its full-year adjusted EPS guidance unchanged at $5.80 to $6.20. By keeping the guidance unchanged, management communicated that the business is on track for the year despite the drop in Q1.An average stock?As of this writing, Crown Holdings stock trades at about 22 times its trailing earnings, which is close to the average for theS&P 500. Moreover, the company's dividend yield of 1.2% is also about average.CCK PE Ratio ChartIt may be fair to say that Crown Holdings stock trades at a reasonable valuation when compared to the S&P 500. But given Crown Holdings' modest growth prospects and challenges with profitability, I don't believe its stock presents a compelling buying opportunity today. There are likely many other safe stocks that offer better upside potential.Should you invest $1,000 in Crown right now?Before you buy stock in Crown, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Crown wasn’t one of them. The 10 stocks that made
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Ether Holds Up Despite Correction in CoinDesk 20: CoinDesk Indices Market Update
| 2024-04-30 |
It covers the following details: CoinDesk Indices (CDI) presents its bi-weekly market update, highlighting the performance of leaders and laggards in the benchmark CoinDesk 20 Index (CD20) and the broad CoinDesk Market Index (CMI).The CoinDesk 20 slipped 6.8% over the past week, bringing its loss to 21% for the month of April. Each of the 20 assets in the index traded lower over the past seven days, with Tuesday's unexpectedly soft launch of spot bitcoin and ether ETFs in Hong Kong adding to the sour action.Ether {{ETH}} has fared relatively well amidst the broader market downturn, lower by just 0.5% over the past week, the smallest decline in the CoinDesk 20.Conversely, alternative Layer 1s experienced the most significant declines. Solana {{SOL}}, Cardano {{ADA}}, and Aptos {{APT}} all dropped by more than 10%, making them the weakest performers.CoinDesk 20 tracks top digital assets and is investible on multiple platforms. The broader CMI comprises approximately 180 tokens and seven crypto sectors: currency, smart contract platforms, DeFi, culture & entertainment, computing, and digitization.
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Will Taiwan Semiconductor Be a Trillion-Dollar Stock by 2030?
| 2024-04-30 |
It covers the following details: Six tech stocks are worth at least $1 trillion today, in terms ofmarket capitalization. All six are members ofthe "Magnificent Seven" groupof game-changing market darlings that drove the stock market's gains in 2023. There are other ways to measure market footprints, of course -- sorted by assets on the balance sheet, you'd get a very different list of six mega-banks and an insurance-based conglomerate instead.Chip-making giantTaiwan Semiconductor Manufacturing(NYSE: TSM)is nowhere near the assets-based club of trillion-dollar companies -- but it falls just short of the trillion-dollar benchmark with a $718 billion market cap.Is Taiwan Semi (also known as TSMC) joining the trillion-dollar elite order anytime soon? Let's see what it would take if I set the goal line at the year 2030.Measuring the distance to $1 trillionPast performance is not a guarantee of future returns, but a long history of market-beating success may point to a company with good ideas and a solid management team.Play around with the time-period selector in the chart above. You'll see Taiwan Semi beating theS&P 500(SNPINDEX: ^GSPC)index by a country mile over the last three or six months, and the advantage only grows larger in a full-year or five-year comparison.And what if you stretch the chart to a whole decade, using total returns to account for the impact of reinvested dividends along the way? Well, an S&P 500 index-fund investment of $1,000 would have grown into $6,737 over the last ten years. Taiwan Semi, on the other hand, would have put a cool $31,000 in your pocket over the same period:^SPX ChartI don't necessarily expect the company to maintain its breakneck growth rate of 18.7% per year over the next six years -- but if it did, TSMC would have a $2.0 trillion market cap in April 2030.Cool down to the S&P 500's recent compound average growth rate (CAGR) of 1
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European Stocks Slip as Hot US Wage Inflation Fuels Hawkish Bets
| 2024-04-30 |
It covers the following details: (Bloomberg) -- European stocks dropped after US wage inflation accelerated, adding to the view that price pressures remain too high and increasing the odds that the Federal Reserve will be in no rush to reduce interest rates. Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsBinance and CZ’s Fortunes Are Set to Grow, Even in JailWall Street Hit by Fed Jitters to Close Wild April: Markets WrapTesla Soars on Tentative China Approval for Driving SystemPot Stocks Sur
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Microsoft invests $1.7bn in Indonesian cloud and AI market
| 2024-04-30 |
It covers the following details: Microsoft will invest $1.7bn in Indonesia's cloud and AI market. The money will also be used to build data centres.The investment was announced by Microsoft CEO Satya Nadella today (30 April) during a meeting with Indonesia’s President Joko Widodo.Nadella is visiting Indonesia to promote Microsoft’s generative AI technology and stated that its $1.7bn investment would help provide Indonesia with the latest AI infrastructure.“[Microsoft is] going to lead this wave in terms of AI infrastructure that is needed,” stated Nadella.Indonesia’s Minister of Communications, Budi Arie Setiadi, praised the investment and stated that he would be meeting with Microsoft to talk about future joint AI research and talent development.Nadella also committed to training 850,000 Indonesian citizens in AI by 2025.“This is (a breath of) fresh air for Indonesia as a country,” Setiadi told reporters outside Indonesia’s Ministry of Communication and Information.Setiadi stated that AI infrastructure could help Indonesia in its technological transformation.“This is not only about GovTech but also other aspects like agriculture, fisheries, business, and digital economy. The collaboration with Microsoft can greatly help our digital transformation,” he said.Nadella will visit Thailand and Malaysia after his trip to Indonesia to continue promoting Microsoft technology in Southeast Asia.In total, Nadella stated that Microsoft hopes to train over 2.5 million people in Southeast Asia in AI by 2025.By 2030, research and analysis company GlobalData forecast the total AI market to be worth over $1037bn globally.Companies will continue to ramp up their AI rollout throughout 2024, increasing the need for critical infrastructure like data centres."Microsoft invests $1.7bn in Indonesian cloud and AI market" was originally created and published byVerdict, 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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Neuromodulation to see market growth, pioneering technology for epilepsy
| 2024-04-30 |
It covers the following details: Epilepsy is a neurological disorder that is characterised by recurrent seizures and affects about 50 million people worldwide. While pharmaceuticals have historically been the primary treatment approach, the landscape of epilepsy management is evolving with the emergence of promising technologies such as neuromodulation devices. GlobalData's latest models forecast consistent growth for these devices in the near future.Epilepsy is a seizure disorder, which stems from abnormal electrical discharges in the brain, manifesting in various forms from loss of awareness to full-body seizures. This disorder, with its diverse causes and severities, presents a formidable challenge to healthcare professionals and patients alike. While some epilepsies have known genetic factors, others remain enigmatic in origin.Despite its prevalence, epilepsy treatment options have historically been limited. However, neuromodulation devices such as deep brain stimulators (DBS) and vagus nerve stimulators (VNS), offer innovative approaches to seizure management. A DBS is a device that comprises a brain-oriented pacemaker (an implantable pulse generator) that sends electrical stimulation through surgically implanted electrodes to specific targets in the brain. A VNS is a device that comprises an electrical pacemaker that sends electrical stimulation through surgically implanted electrodes to target the vagus nerve. Both technologies modulate neural activity to potentially reduce seizure frequency and severity.Neuromodulation devices are often used to treat severe, but not life-threatening, conditions. The neuromodulation device market was negatively impacted by the Covid-19 pandemic, as procedures that were deemed to be not life-threatening were deprioritised or deferred. However, GlobalData predicts consistent growth for the neuromodulation market in the near future.GlobalData forecasts positive mid-single-digit growth for the neuromodulation devices market in terms of market share, with segments such as DBS and VNS seeing compound annual growth rates of 6.53% and 5.92%, respectively, between 2023 and 2033."Neuromodulation to see market growth, pioneering technology for epilepsy" was originally created and published byMedical Device Network, a GlobalData owned brand.The information on this site has been included in good
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Global power and distribution transformers’ market value likely to reach $23.60bn and $27.73bn in 2028
| 2024-04-30 |
It covers the following details: Leading data and analytics company GlobalData’s latest report, Transformers Market Size, Share and Trends Analysis by Technology, Installed Capacity, Generation, Key Players and Forecast to 2028, reveals that the global power transformers market is estimated to reach $23.60bn, growing at a compound annual growth rate (CAGR) of 7.2% and distribution transformers market value likely to reach $27.73bn in 2028.Globally, the power sector is undergoing changes, owing to various economic and environmental factors.Concerns about global warming, increasing consumer base, rapid urbanisation, growing income, and operational efficiency are some of the factors aiding market reforms in the sector.In 2023, the Asia-Pacific power transformers market reached $8.57bn and is estimated to reach $12.74bn in 2028.China is expected to lead not only the regional market but also the global market.The Americas and Europe, Middle East, and Africa (EMEA) markets were valued at $5.05bn and $3.08bn, respectively.Replacements and grid resilience initiatives are resulting in market growth in the US, the UK, Germany, and a few other developed countries.Extensive power generation capacity additions, grid expansion, and economic progress similar to the trend observed in developing countries of Asia-Pacific are influencing the markets of Russia, Saudi Arabia, and Brazil.With the demand for power set to increase in the Middle East and Africa, EMEA is estimated to be the fastest-growing region, with the market growing at a CAGR of 11.5%, over the forecast period.With respect to the distribution transformers, Asia-Pacific is estimated to be the largest.Increasing commercial activity in Southeast Asia and large-scale asset requirements in China and India facilitate growth in the regional market.In 2023, the Asia-Pacific distribution transformers market reached $12.09bn and is estimated to reach $14.65bn in 2028.Similarly, the deployment of smart technologies and the shift from fossil fuels are resulting in new business opportunities for stakeholders in the growing power sector in EMEA.Grow
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3 AI Stocks You'll Wish You'd Bought on the Dip
| 2024-04-30 |
It covers the following details: After nearly a year during whichartificial intelligence(AI) stocks steadily booked significant increases, the segment began to cool off in March. The pullbacks of some of these stocks left investors questioning whether the AI rally had run its course, or whether what was occurring was a healthy short-term correction.The answer to that question likely depends somewhat on the individual company. Nonetheless, the recent sell-offs were likely a short-term correction for many of these stocks. And with that in mind, we asked three Motley Fool analysts for ideas on which AI stocks are now better positioned to deliver outsized returns for investors.Nvidia's healthy breather is a long-term buying opportunityJustin Pope(Nvidia):Nvidia(NASDAQ: NVDA)is my pick for buying the dip. The stock has produced blistering gains over the past few years, but its acceleration to triple-digit percentage top- and bottom-line growth justified those gains. This uptick in Nvidia's business looks likely to last for some time.NVDA Revenue (TTM) ChartNvidia is the dominant AI chip player today. The company's recipe for winning a large majority of that market has been a combination of cutting-edge chips and proprietary software that gets the most computing performance out of those chips. It's estimated that Nvidia now controls as much as 90% of the AI chip market.The opportunity ahead of it is simple. AI is poised to become a massive market, and demand for computational capacity to support it could potentially lead to the data center footprint in America doubling by 2030, according to a report from Newmark. Even if competition eats into Nvidia's market share, Nvidia should benefit from the high demand that expansion will produce.On average, analysts are forecasting that Nvidia's earnings will grow at an annualized rate of 35% over the next three to five years. At today's share price, that outlook gives the stock a PEG ratio of just 1, which is a reasonable valuation.Don't let short-term price fluctuations distract you from the high probability that Nvidia will likely be a more valuable stock five or 10 years from now. Look at the bigger picture, and Nvidia's value will become apparent.Microsoft's early investments in
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Why Eli Lilly Stock Is Jumping Today
| 2024-04-30 |
It covers the following details: Shares ofEli Lilly and Company(NYSE: LLY)were jumping 6% higher as of 11:03 a.m. ET on Tuesday. The solid gain came after the big drugmaker announced its first-quarter 2024 results.Lilly reported Q1 revenue of $8.77 billion, up 26% year over year. This result came in a little below the average analyst's revenue estimate of $8.92 billion.However, Lilly made up for the miss with its bottom line. The company posted Q1 net income of $2.24 billion, or $2.48 per share, based ongenerally accepted accounting principles (GAAP). Non-GAAP earnings were nearly $2.34 billion, or $2.58 per share. The consensus Wall Street estimate was for non-GAAP earnings of $2.46 per share.What really made investors happy with Eli Lilly's updateInvestors like it when companies top quarterly earnings expectations. But they love it when companies have an earnings beatandraise guidance. Eli Lilly did both in its Q1 update.Lilly increased its 2024 full-year revenue outlook to a range of $42.4 billion to $43.6 billion, $2 billion higher than its previous guidance. The company said that it was able to boost its forecast largely due to tremendous sales growth for type 2 diabetes drug Mounjaro and weight loss drug Zepbound.The big drugmaker also increased its full-year GAAP earnings per share (EPS) guidance to between $13.05 to $13.55, up $1.25. Lilly raised its non-GAAP EPS guidance by $1.30 to a range of $13.50 to $14.Is Eli Lilly stock a buy after its Q1 earnings bump?Lilly might seem priced for perfection with shares trading over 59 times forward earnings after its Q1 earnings bump. However, the company's growth prospects make its valuation much more palatable. I think Lilly remains a solid stock to buy for long-term investors.Should you invest $1,000 in Eli Lilly right now?Before you buy stock in Eli Lilly, consider this:TheMotley Fool Stock Advisoranalyst
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Why 3M Stock Is Rising Today
| 2024-04-30 |
It covers the following details: Long-suffering3M(NYSE: MMM)shareholders must have been pleasantly surprised by its first-quarter results Tuesday morning, and the stock is moving higher as a result. Shares of 3M were trading up by 5% as of 10:30 a.m. ET after its numbers easily beat expectations.A return to organic growthTheindustrial conglomeratehas lost more than 40% of its value over the past three years as it worked through a series of restructurings, lawsuits, and operational issues that have impacted earnings.The first quarter provided some reasons for hope that the worst is over. 3M earned $2.39 per share on sales of $7.72 billion, easily topping Wall Street's consensus estimates of $1.96 per share on $7.1 billion. Sales were down slightly year over year, including the impact of foreign currency fluctuations, and itsGAAP(generally accepted accounting principles) operating income margin improved by more than 300 basis points to 18.8%."We delivered results that were better than our expectations as we returned to organic growth and achieved double digit adjusted earnings growth," CEO Mike Roman said in the earnings release.The company has completed the spinoff of its healthcare businesses asSolventumand finalized legal settlements related to water contamination and its combat earplugs. 3M is also getting a leadership change: Bill Brown is slated to take over as CEO on May 1.Is 3M a buy after its strong earnings report?Management sees a continued stabilization for the business as the year goes on. Full-year revenue is expected to land in a range of down 0.25% to up 1.75%, and earnings per share (EPS) are expected to come in at between $6.80 and $7.30. The midpoint of that range suggests at least some upside to Wall Street's EPS consensus of $7.3M has been weighed down by a lot of different factors in recent years, but increasingly, there are signs that the headwinds besetting it are beginning to ease. Don't expect it to make a rapid turnaround, but if you're intrigued by 3M's potential, this is a good time to consider buying in.Should you invest $
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Wall Street’s ‘Macro Agnostic’ Tech Trade Shatters ETF Records
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Investors are plowing into technology-tracking ETFs at a record clip as conviction builds that the market’s biggest stocks can thrive in almost any economic cycle. Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsBinance and CZ’s Fortunes Are Set to Grow, Even in JailWall Street Hit by Fed Jitters to Close Wild April: Markets WrapTesla Soars on Tentative China Approval for Driving SystemStocks Trade for 390 Minutes a Day. Increasingly, Only 10 Mat
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Here's Why Yum China Stock Dropped Today
| 2024-04-30 |
It covers the following details: Shares of restaurant companyYum China(NYSE: YUMC)-- parent company of KFC, Pizza Hut, and more in China -- dropped on Tuesday after it reported financial results for the first quarter of 2024. The company grew sales by opening new restaurants, but sales at existing restaurants fell, which was not something investors cared for. As of 10 a.m. ET, Yum China stock was down 6%, but it had been down 10% earlier in the day.The growth engine is still purringIn Q1, Yum China surpassed 15,000 restaurant locations, including over 10,600 KFC locations and over 3,400 Pizza Hut locations. Overall, the company opened nearly 400 new restaurants in Q1, which boosted total sales by 6% year over year. However,same-store salespulled back by 3%, weighing negatively on the stock today.Also weighing negatively on Yum China is its profitability. The company had a Q1operating marginof 12.7%, which isn't bad in absolute terms. However, it is a step back from the 14.3% operating margin it had in the prior-year period.This lower profit margin caused Yum China's operating profit to drop by 5% year over year. And when factoring in an unfavorable currency exchange rate, the company's operating profit dropped 10% in dollar terms.What's in it for shareholders?Yum China opened a record number of restaurants in Q1 and expects to open 1,500 to 1,700 total for the year. That's strong double-digit growth for this portfolio of brands that's resonating in China. Moreover, management for Yum China plans to give $1.5 billion back to shareholders this year between stock buybacks and dividend payments.For perspective, Yum China has a market capitalization of just a little more than $14 billion. Relative to its size, the company is planning big growth and compelling returns to shareholders in the coming year. With today's drop in price, I think Yum China deserves a place on a watch list at least.Should you invest $1,000 in Yum China right now?Before
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Is Tesla a Top Artificial Intelligence (AI) Stock to Buy?
| 2024-04-30 |
It covers the following details: In today's video, I discuss recent updates impactingTesla(NASDAQ: TSLA). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of April 29, 2024. Thevideo was publishedon April 29, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades,Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the10 best stocksfor investors to buy right now… and Tesla made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of April 30, 2024Jose Najarrohas positions in Tesla. The Motley Fool has positions in and recommends Tesla. 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 link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.Is Tesla a Top Artificial Intelligence (AI) Stock to Buy?was originally published by The Motley Fool
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3 Dates for Disney Stock Investors to Circle in May
| 2024-04-30 |
It covers the following details: A third of the way into 2024,Walt Disney(NYSE: DIS)is the second-biggest gainer among the 30 components of theDow Jones Industrial Average. The stock's 25% jump this year is notable, especially since the media giant has lagged the market badly in each of the three previous years.Now that Disney has momentum, keeping it is essential. The month of May matters for Disney because it gives an important financial update. It's also releasing the first of the films that could get its sluggish movie-studio division back on track. Let's take a closer look at what to watch in the month ahead.May 1This is typically a slow month for the theme parks, straddled between the end of the spring break holiday and the start of the busy summer vacation period. Disney World and Disneyland know how to drum up guests to keep their gated attractions busy. A couple of festivals that already began -- Pixar Fest at Disney's California Adventure and the International Flower and Garden Festival at EPCOT -- will run through all if not most of May.One thing starting this month at Disney World to help keep the locals coming is V.I.PASSHOLDER Days. From the first of the month through late June, the Florida resort will reward its annual passholders with exclusive perks at its EPCOT theme park.Guests with year-round access can pick up a complimentaryLilo & Stitchmagnet, relax in a temporary passholder lounge, and explore exclusive photo opportunities. Passholders who can't make it out to Disney World's second-oldest park can still cash in with a 20% discount at DisneyStore.com from May 5 to May 24.Image source: Walt Disney World.May 7If there's one day that will likely move Disney stock higher or lower in May it will probably happen next week. The company reports its fiscal second-quarter results after the market close on May 7. Expect the market to react accordingly the following trading day.Analysts see revenue clocking in at $20.65 billion for the three months ending in March, a 5% year-over-year decline. A small dip isn't a surprise.This year's quarter is stacked against fiscal 2023's performance that was spiked by
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Gold Slumps as Markets See Hawkish Fedspeak at US Rate Meeting
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Gold slid — narrowing what is set to be a third straight monthly gain — as investor focus turned to this week’s US Federal Reserve meeting at which policymakers are expected to strike a hawkish tone on interest rates.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsBinance and CZ’s Fortunes Are Set to Grow, Even in JailWall Street Hit by Fed Jitters to Close Wild April: Markets WrapTesla Soars on Tentative China Approval for Driving SystemStocks T
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Why This Could Be a Massive Week for Nvidia Stock Investors
| 2024-04-30 |
It covers the following details: In today's video,I discuss recent updates impactingNvidia(NASDAQ: NVDA).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 29, 2024. Thevideo was publishedon April 29, 2024.Should you invest $1,000 in Nvidia right now?Before you buy stock in Nvidia, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $537,692!*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 30, 2024John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Jose Najarrohas positions in Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Microsoft, Nvidia, and Qualcomm. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has adisclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley F
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While Secondhand Watch Market Sees Downturns, Christie’s Finds Opportunities Among Younger Clients
| 2024-04-30 |
It covers the following details: Despite the slowdown in the secondhand watch market, Christie’s remains optimistic on the opportunities to continue its success in the category.According to Christie’s head of sales for the watch department, Rebecca Ross, and watch specialist, Mathieu Ruffat, the auction house has been able to successfully navigate thechallenges facing the secondhand watch marketthanks to its auctions of unique timepieces, as well as a growing younger clientele.More from WWDIWC Schaffhausen Fetes New Boutique for Madison Avenue Watch WeekJaeger-LeCoultre's CEO Talks New Madison Avenue Store and the Brand's Constant-classic Reverso WatchMadison Avenue Watch Week Returns With Breitling, Ralph Lauren, Apple and Others, After Pandemic HiatusIn 2023, Christie’s came out as the global market leader by generating $234 million through 12 live sales and eight online sales, according to the auction house.“Right after COVID-19, the prices were crazy,” Ruffat explained. “The demand was huge, especially for modernwatches, and for the last few months, we can feel that there’sa downturn.We don’t really see it at Christie’s because the watches that we offer at our auctions, they are mostly vintage watches. And today, what our collectors are looking for are extremely rare, vintage watches or independent watchmakers.”Ross echoed Ruffat’s statement, saying: “The phenomenal collections that we’ve been able to offer our clients in our auctions, we’re able to sort of sidestep the declining market a little bit in that way by offering items that are highly covetable and fresh to the market to our customers.”Mathieu RuffatIn addition to the unique auctions, Ross and Ruffat explained that a burgeoning younger clientele has also posed as an area of opportunity to continue Christie’s success in the secondhand watch market.“It’s very interesting to see the changing profile for the modern watch collector,” Ross continued. “For the longest time, the watch collector was the same kind of collector with similar interests in brands and similar sort of tastes, but now you have more of the exchange of information on the internet being so obvious and so easy to access. You have all sorts of micro-communities
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Should You Buy Arm Stock Before May 8?
| 2024-04-30 |
It covers the following details: Fool.com contributor Parkev Tatevosian answers whether long-term investors should buyArm Holdings(NASDAQ: ARM)stock before it announces a critical investor update.*Stock prices used were the afternoon prices of April 27, 2024. The video was published on April 29, 2024.Should you invest $1,000 in Arm Holdings right now?Before you buy stock in Arm Holdings, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Arm Holdings 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 $537,557!*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 30, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Should You Buy Arm Stock Before May 8?was originally published by The Motley Fool
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Why Japan’s currency is cratering right now, even though its stock market is red hot
| 2024-04-30 |
It covers the following details: Japan’s stock market has been on fire over the past few years. The Nikkei 225, which tracks the 225 largest firms by market cap in Japan’s Tokyo Stock Exchange, has surged 130% from its COVID-induced low in March 2020 to a record high of over 38,000. That’s even better than the impressive 121% surge from the U.S.’s equivalent index, the S&P 500, over the same period.Japanese stocks’ recent run is quite the shift from the pain of the previous three decades. The Nikkei 225 last hit a record high during a market bubble in 1989, before three “lost decades” of low economic growth and stagnant prices in Japan led to years of underperformance. Now, though, just as Japan’s stock market is entering a new era of strength, its currency has collapsed.The yen briefly touched a 34-year low compared to the U.S. dollar this week. And even after rising on Monday, perhaps due to an undisclosed intervention from the Bank of Japan, the dollar is now worth more than 157 Japanese yen, compared to just 129 in January of 2023. There are several reasons for the yen’s underperformance compared to the dollar, but the main one is clear: rising U.S. interest rates.“The key lesson from Japan’s travails with the yen over the past couple years is that what matters most to the currency’s fortunes is expected interest rate differentials,” Jonas Goltermann, deputy chief market economist at Capital Economics, explained in a Monday note.The phrase “expected interest rate differentials” may sound confusing, but it just means the anticipated difference between interest rates in Japan and other parts of the world, particularly the U.S.When the U.S. or other western powers’ interest rates are higher than Japan’s, it puts pressure on the yen. Goltermann noted there are two main reasons for this phenomenon. First, because of Japan’s low interest rates, the yen is often used in the so-called “carry trade.” That’s when investors borrow at a low interest rate to invest in an asset with a higher return.For example, a fund
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Massive News for Intel Stock Investors
| 2024-04-30 |
It covers the following details: Fool.com contributor Parkev Tatevosian discusses the latest strategic decisions atIntel(NASDAQ: INTC).*Stock prices used were the afternoon prices of April 27, 2024. The video was published on April 29, 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 $537,557!*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 30, 2024Parkev Tatevosian, CFAhas 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.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.Massive News for Intel Stock Investorswas originally published by The Motley Fool
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Why Leidos Stock Is Higher Today
| 2024-04-30 |
It covers the following details: Government information technology (IT) and defense vendorLeidos Holdings(NYSE: LDOS)easily topped quarterly expectations and raised guidance for the full year. Investors are buying in, sending shares of Leidos up 7% in the first half hour of trading on Tuesday.Strong results across the businessAlthough most of the attention is focused onPalantir Technologies, Leidos is actually the largest provider of tech and systems management for the Pentagon and other government agencies. The company earned $2.29 per share in the first quarter on revenue of $3.98 billion, topping Wall Street's consensus $1.70 per share in earnings on sales of $3.8 billion. Revenue was up 7% year over year, led by significant strength in the company's health and civil agency business."Our strong start to the year demonstrates the team's ability to deliver for its employees, customers, and shareholders," CEO Thomas Bell said in a statement. "We fully expect that 2024 will showcase our commitment to profitable growth."Leidos now says it expects to earn between $8.40 and $8.80 per share in 2024, a boost to the company's previous guidance of $7.50 to $7.90 and well above the $7.85 per-share consensus estimate. Full-year revenue guidance was also raised by $300 million at the low and high ends to $16 billion to $16.4 billion.Is Leidos a buy following its strong earnings report?Healthcare and, in particular, the company's business providing medical exams to government officials, led the way, but it's worth noting that all four segments of the business came in ahead of expectations. Net bookings at the end of the quarter came in at $3.7 billion, meaning Leidos has won about $1.10 in new business for every $1 in revenue it has taken in over the last 12 months.Leidos has a history of raising full-year guidance as the year progresses, but the big boost after the first quarter is surprisingly aggressive and implies management is feeling confident about what lies ahead. Heading into 2024, these IT specialists appeared to be the best choices for investors amongdefense stocks, and Leidos is demonstrating why it's a leader in the
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Should You Buy SoundHound Stock Before May 9?
| 2024-04-30 |
It covers the following details: Fool.com contributor Parkev Tatevosian answers whether investors should buySoundHound AI(NASDAQ: SOUN)stock before a key investor update.*Stock prices used were the afternoon prices of April 27, 2024. The video was published on April 29, 2024.Should you invest $1,000 in SoundHound AI right now?Before you buy stock in SoundHound AI, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and SoundHound AI 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 $537,557!*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 30, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Should You Buy SoundHound Stock Before May 9?was originally published by The Motley Fool
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Markets aren’t excited about a second Trump presidency
| 2024-04-30 |
It covers the following details: Stocks poppedafter Donald Trump won the presidency in 2016. Markets had priced in a Hillary Clinton win, and Trump’s surprise victory raised the odds of business tax cuts and higher corporate earnings. That came to pass, validating investors who bought stocks when Trump won.A second Trump presidency could be less welcome, based on evolving estimates of how Trump’s policies would impact markets and the economy if he wins a second term. “Most of the major policy initiatives being suggested by Donald Trump’s campaign would be inflationary,” Paul Ashworth, chief North American economist at Capital Economics, wrote in an April 29 analysis. Ashworth cited several Trump proposals that could upset markets: More tariffs on imports, devaluing the dollar, curbing immigration, and possibly meddling with Federal Reserve policy.Trump’s economic agenda for a second term is part playbook and part improvisation. Trump has clearly stated hisdesire to raise tariffsbeyond the levels he established during his first presidential term androll back immigrationas aggressively as possible. Possible plans todevalue the dollarandassert more control over the Fedcome from media reporting with Trump aides and other tipsters who might be floating trial balloons to gauge public reaction.Markets survived Trump's trade wars during his first term, despitepredictions that Trump’s tariffs would hammer the economy. As president, however, Trump imposed tariffs that were much lighter than what he proposed as a candidate. His pitch as a candidate in 2016, for instance, was to slap a new 45% tariff on all Chinese imports. As president, however, Trump imposed tariffs ranging from 7.5% to 25%, and they only applied to about half of all Chinese imports.Even then,stocks gyratedfor much of the time Trump was threatening and imposing new tariffs, while China responded with its own punitive trade measure on imports from the United States. And the original Trump tariffs did hurt the US economy.One analysisfound that American firms and consumers paid an extra $48 billion per year in Trump tariffs. That would have been higher except some Chinese importersrerouted their shipments through other countries, such as Vietnam and Mexico, to avoid the tariffs. There’s no evidence the Trump tariffsboosted US manufacturing, as he intended.Trump was lucky to have pushed
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A Once-in-a-Generation Investment Opportunity: 1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Surges 1,068%, According to Cathie Wood
| 2024-04-30 |
It covers the following details: One of the most outspoken investors on Wall Street is Ark Invest CEOCathie Wood. Wood is known to take large positions in emerging technology businesses that she and her team believe have massive upside potential. However, like any other money manager, Wood faces her share of backlash and skepticism.I'll concede that some of Wood's high-conviction opportunities look far-fetched to me. But to be fair, one thing that Wood does that many of her peers do not is that she publicly releases her research. So while you may not agree with her, at least she backs up her forecasts by making them public.Wood's largest position across all of her exchange-traded funds (ETFs) isTesla(NASDAQ: TSLA). With the stock at $170 per share as of market close on April 25, Wood believes it could reach $2,000 by 2027 -- implying roughly 1,068% upside from current trading levels.Let's dive into Wood's report and assess Tesla's long-run roadmap. While $2,000 per share may appear a stretch, I'd encourage investors to keep an open mind. There's a lot to unpack, and buying Tesla stock now could end up being an incredibly lucrative move.Is Tesla just a car company?One of the biggest debates surrounding Tesla is whether it is just an automobile manufacturer, or if it is far more prolific. Technically, Tesla is more than a car business because the company also offers energy storage products that are separate from the core electric vehicle (EV) operation.However, Tesla bulls would contest that the company is more advanced than its automotive peers. Namely, the long-term optimism surrounding Tesla is that the company isdisrupting artificial intelligence (AI)in many different ways.This is what Cathie Wood sees, and Tesla's CEO Elon Musk is backing her up. During the company's first-quarter earnings call, Musk stated, "But I think Cathie Wood said it best. Like really, we should be thought of as an AI or robotics company." Let's explore what that means.Image source: Getty Images.Artificial intelligence (AI) is the catalystThere are two big
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How To Earn $500 A Month From Bank of America Stock Following Upbeat Q1 Earnings
| 2024-04-30 |
It covers the following details: How To Earn $500 A Month From Bank of America Stock Following Upbeat Q1 EarningsBank of America Corp(NYSE:BAC) reported better-than-expected earnings for itsfirst quarter on April 16.The Charlotte, North Carolina-based bank posted quarterly adjusted net income of $7.2 billion and adjusted EPS of 83 cents, beating the consensus of 77 cents. Revenue, net of interest expense, decreased 2% year over year to $25.8 billion. Adjusted revenue declined 1.6% year over year to $25.98 billion, beating the consensus of $25.46 billion, according to data fromBenzinga Pro.On April 25, Bank of America declared a regular quarterly cash dividend of 24 cents per share, payable on June 28 to shareholders of record as of June 7.With the recent buzz around Bank of America, some investors may be eyeing potential gains from the company's dividends. As of now, Bank of America has a dividend yield of 2.68%, which is a quarterly dividend amount of 24 cents a share (96 cents a year).To figure out how to earn $500 monthly from Bank of America, we start with the yearly target of $6,000 ($500 x 12 months).Next, we take this amount and divide it by Bank of America's $0.96 dividend: $6,000 / $0.96 = 6,250 sharesSo, an investor would need to own approximately $223,688 worth of Bank of America, or 6,250 shares to generate a monthly dividend income of $500.Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.96 = 1,250 shares, or $44,738 to generate a monthly dividend income of $100.View more earnings on BACAlso Read:Over $3M Bet On Steel Connect? Check Out These 4 Stocks Insiders Are BuyingNote that dividend yield can change on a rolling basis, as the
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5 Reasons to Buy Coca-Cola Stock Like There's No Tomorrow
| 2024-04-30 |
It covers the following details: Coca-Cola(NYSE: KO)is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends. But over the past 12 months, its stock declined 3% as theS&P 500rallied 23%.Emboldened by the prospects of interest rate cuts, many investors flocked toward the market's higher-growth stocks instead of Coca-Cola. However, I believe it's actually the perfect time to buy Coca-Cola's stock for five simple reasons.Image source: Coca-Cola.1. It's a Dividend KingCoca-Cola raised its dividend annually for 62 consecutive years. That puts it in the elite club ofDividend Kings, which grew their payouts annually for at least 50 years. Only the best-run companies can stay in that club, since they need to consistently grow their earnings per share (EPS) and free cash flow (FCF) through recessions to support their rising dividends.Those annual dividend hikes will also help its investors stay ahead of inflation while compounding their returns. If you had reinvested Coca-Cola's dividends back over the past 40 years, you would have generated a total return of 13,340%.2. Its yield will become more attractive as interest rates declineCoca Cola currently pays a decent forward dividend yield of 3.1%, but higher interest rates have boosted the yields of CDs, T-bills, and bonds above 5%. In this environment, many income investors are likely sticking with those safer fixed income investments instead of buying Coca-Cola's stock -- which is riskier and pays a lower yield.For now, hotter-than-expected inflation reports are dampening hopes for aggressive interest rate cuts this year. But over the long term, Coca-Cola's yield should becomemore appealingto income investors as interest rates decline again.3. It will be a safe haven stock if interest rates stay elevatedOn the other hand, if interest rates stay higher for longer than expected, Coca-Cola's stock could become a safe haven play again as the higher-growth stocks crumble. In a high interest rate environment, companies
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Chegg stock crashes as free AI tools send online education company 'spiraling'
| 2024-04-30 |
It covers the following details: Chegg stock (CHGG) plummeted on Tuesday as the rise of free artificial intelligence tools has stunted growth at the online education company.Late Monday, the company saidin its first quarter releaseit expects total net revenue, gross margins, and profits to all decline sequentially in the current quarter.The stock fell more than 20% Tuesday morning following the earnings release, which included an announcement that Nathan Schultz will replace Dan Rosensweig as CEO.Rosensweig will now serve as executive chairman.Chegg stock has lost nearly 70% over the last year and has been roughly cut in half in 2024. From its peak in 2021, the stock is down over 95%.Sincethe launch of ChatGPT in late 2022the company has seen year-over-year subscriber declines.Following this report, Jefferies analyst Brent Thill downgraded the stock to Underperform from Hold, slashing his price target to $4 from $7. He noted that Chegg is "spiraling with no stability in sight.""We question if Chegg can build an AI experience that is meaningfully better than free alternatives that students will be willing to pay for," Thill wrote."Chegg has historically always beaten free competitors in the marketplace, but we believe the AI wave presents a truly credible free product experience to Chegg's paid subscription."Chegg stock was a pandemic darling stock of sorts as education moved online and the company thrived, sending the stock to an all-time high of $113 per share in early 2021.As students returned to the classroom and free AI solutions emerged, the company's revenue tumbled, and the stock is now trading hands around $6 per share.In May 2023, Cheggtold investorsit had seen a "significant spike in student interest in ChatGPT" since March of that year."We now believe it's having an impact on our new customer growth rate," the company said at the time. A trend that has continued.ChatGPT sign on OpenAI website displayed on a laptop screen and Chegg logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland, on May 4, 2023. (Jakub Porzycki/NurPhoto via Get
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Boeing, Paramount downgraded: Wall Street's top analyst calls
| 2024-04-30 |
It covers the following details: Boeing, Paramount downgraded: 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 Upgrades:BofA upgradedMSCI(MSCI)to Neutral from Underperform with a price target of $525, up from $425. The firm thinks the recent stock pullback is pricing in an "unlikely worst-case scenario" and sees pending upside support from buybacks.DA Davidson upgradedHope Bancorp(HOPE)to Buy from Neutral with a $12.50 price target following its announced merger with Territorial Bancorp(TBNK). The transaction is expected to be double-digit EPS accretive in 2025, with limited credit risk and a long tail of discount accretion benefit, says the firm.Janney Montgomery Scott upgradedCitizens Financial Services(CZFS)to Buy from Neutral with a $53 fair value estimate. Citizens is trading at a discount multiple to not only tangible book value per share, but also to the peer group, for the first time in over 10 years, notes the firm, which believes shares are undervalued.Barclays upgradedDeciphera(DCPH)to Equal Weight from Underweight with a $26 price target after the company entered into a definitive merger agreement with Ono Pharmaceutical for Ono to acquire Deciphera for $25.60 per share through a tender offer.Top Downgrades:Argus downgradedBoeing(BA)to Hold from Buy without a price target. The shares have fallen 35% this year due to new problems with the Max airplane that have ultimately led to the replacement of the board chairman and early retirement of the CEO, the firm tells investors in a research note.Needham downgradedParamount(PARA)to Hold from Buy after its Q1 results and a 9-minute-long earnings call with no Q&A. The firm is citing the shift in leadership from one CEO to a committee of three, saying it is difficult to argue that three leaders can create more value than a single leader with board accountability.Jefferies downgradedChegg
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Missed Out on Nvidia? Here Are 3 Other Artificial Intelligence (AI) Stocks to Buy Instead
| 2024-04-30 |
It covers the following details: One of the pillars of the artificial intelligence (AI) boom is the semiconductor. And when it comes to high-performance graphics processing units (GPUs), "Magnificent Seven" memberNvidiais at the forefront of the discussion. But even as demand is soaring for the company's A100 and H100 chips, smart investors realize that there are other opportunities alongside Nvidia.Considering that stock is up 200% over the last year, it might be worth checking out the competition and looking for a better value. Let's dig into three of Nvidia's primary competitors and assess why each company could be a good buy right now.1. IntelIn early April,Intel(NASDAQ: INTC)made waves with an announcement about its new AI chip, the Gaudi 3. According to Intel, the Gaudi 3 has 1.5 times faster training and inferencing power over Nvidia's H100. Moreover, the chip uses 40% less power than Nvidia GPUs, offering customers nice savings.Although Nvidia holds an estimated 80% share of the AI chip market, I'm cautiously optimistic that Intel can eat away at its rival's lead. Providers of IT architecture solutions -- includingDell Technologies,Hewlett Packard Enterprise,Lenovo, andSuper Micro Computer-- will all be designing systems that use the Gaudi 3. And Intel announced that early Gaudi 3 customers and partners includeIBMandSAP.Investors got a nice surprise during the company's first-quarter 2024 earnings report when CEO Pat Gelsinger said he now expects over $500 million in accelerated revenue in the second half of the year following the release of Gaudi 3.Although Nvidia is still the 800-pound gorilla in AI semiconductors, I see Intel's latest product release as an encouraging sign and am impressed by the initial success of Gaudi 3. With AI applications constantly evolving, I think Intel has a good chance to compete with Nvidia at a high level in the long run.Image Source: Getty Images2. Advanced Micro DevicesThe second company on my list is Nvidia's closest competitor,
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Huawei steals market share from Apple despite Western sanctions
| 2024-04-30 |
It covers the following details: Huawei released a new high-end smartphone in August made largely with home-grown microchips - STR/AFP via Getty ImagesHuawei’s profits have surged more than six-fold afterthe Chinese technology champion overcame Western sanctionsto steal market share from Apple.The Shenzhen-based company reported a 19.6bn yuan (£2.1bn) profit in the three months to March, up 564pc on the same period a year ago.This comesdespite facing US export controls and banson overseas sales of its networking equipment in the last year, including in the UK.The company released a new high-end smartphone in August that was made largely with home-grown microchips.This proved to be a surprise hit among Chinese consumers and helped Huawei squeeze sales of Apple’s iPhone in the Far East.It has also been developing advanced artificial intelligence chips in an attempt to compete with Silicon Valley giant Nvidia, which has seen its sales to China curbed by the Biden administration.China has invested heavily in catching up to the US and Taiwan in advanced semiconductor production, reaping rewards for companies like Huawei that have struggled to get hold of foreign-made chips.Huawei said revenues had risen by 37pc in the quarter to 178.5bn yuan. The sales came in the critical Chinese New Year period when shoppers typically spend heavily on electronics.This marks a stark reversal in Huawei’s fortunes after chief executive Guo Ping said in 2020 that the company’s goal was “survival” after “nonstop aggression from the US government”.In December, the company said it was “back on track”, claiming it had weathered the storm after reporting an increase in annual revenues.According to research firm Counterpoint, Huawei’s smartphone sales in China rose by 70pc in the first quarter of the year, putting it almost level with Apple.By comparison, Apple’s sales are believed to have fallen sharply. The US tech giant is expected to reveal the scale of its China sales fall on Thursday when it reports results for the first three months of the year.China has discouraged government employees from bringing foreign-made devices to work.Huawei is also investing heavily in smart car technology, seeking
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From scandals to monopoly: how Adani maintains dominance in India’s energy market
| 2024-04-30 |
It covers the following details: On 3 January 2024, Indian multinational conglomerate Adani Group received relief from India’s Supreme Court as the judges ruled that the company, accused of stock manipulation and accounting fraud by US-based Hindenburg Research, does not require further investigation.In January 2023, forensic financial research company Hindenburg published a report accusing Adani of impropriety in using tax havens and raising concerns over its debt levels. Adani denied the allegations, calling them "unsubstantiated speculations”.Following the allegations, not only did Adani stocks plummet, but India’s entire energy market was rattled. Then, Adani stocks mysteriously recovered soon after. The country’s market volatility led to further accusations of possible stock manipulation by Adani and concerns about the company’s influence over the market.The Supreme Court agreed to hear a plea in February 2023, setting up a panel to investigate the allegations. The panel scrutinised whether the group failed to disclose transactions between related parties and the Securities and Exchange Board of India (SEBI), a routine requirement, as well as whether stock prices were manipulated after the accusations.It would be months before the panel made a decision. Meanwhile, in April 2024, the opposition party Congress accused the Modi government of granting monopolies to the Adani Group despite ongoing investigations and the company’s fraudulent history. In its report, Congress questioned why the group's stock prices skyrocketed during this time and whether the Modi government pressured the SEBI to slow down its investigation.On 6 May 2023, the panel concluded that there was no artificial trading or “wash trades”, where stocks are exchanged to mislead market watchers. The board considered stock exchange alerts in four reports, two produced before the Hindenburg report and two after.A report by the SEBI added that while the allegations against Adani contributed to the market volatility, it was not solely responsible. “The market has re-priced and re-assessed the Adani stocks. While they may not have returned to pre-24 January levels, they are stable at the newly re-priced level,” the SEBI’s178-page report reads.The SEBI had already been investigating 1
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Why Tesla Stock Roared Back Last Week
| 2024-04-30 |
It covers the following details: It seems that for many investors,Tesla(NASDAQ: TSLA)is a company that can do no wrong. Despite publishing an earnings report that showed worrying declines in key metrics and a double miss on analyst estimates, the company's stock rose last week. According to data compiled byS&P Global Market Intelligence, the leading electric-vehicle (EV) company enjoyed a more than 14% lift across the last five trading days.First quarter somehow not a flopTesla reported itsfirst-quarter earningsafter market hours on Tuesday, and they didn't look good at all. Revenue declined by 9% year over year, while non-GAAP(adjusted) earnings plummeted by nearly 50%. Both figures came in notably under the consensus analyst projections.That difference between the rates of decline was due mostly to Tesla's aggressive cost-cutting. The EV space has become more competitive at a time when such vehicles are no longer a novelty. Customers are less willing to pay a premium for a good that's becoming commonplace.The usual reaction to a lousy quarter is a widespread share sell-off, but the opposite happened with Tesla. It seems investors were encouraged by CEO Elon Musk's insistence that, regardless of the company's numerous difficulties with advanced technology in the past, the company has a bright future with products such as its promised robotaxi and autonomous EVs. Tesla bulls were also cheered by the company's aim to produce lower-priced EVs.Price-target bumpsIn the wake of the earnings report, several analysts hiked their price targets on the stock, includingCitigroup's Itay Michaeli. Writing in a new research note that the company's first quarter was "better than feared," Michaeli added $2 per share to his target for a new level of $182. This doesn't make him a bull, however, as he maintained his neutral recommendation.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades,Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the10 best stocksfor investors to buy right now… and Tesla made
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1 Wall Street Analyst Says RTX Stock Has 18% Upside
| 2024-04-30 |
It covers the following details: RTX(NYSE: RTX)beat on both the top and bottom lines in itsearnings reportlast week. But it also released guidance for the rest of 2024 which revealed less than many analysts hoped.That news ledWells Fargoanalyst Matthew Akers to trim his RTX price target by $1 (to $119 per share). The new target implies 16% upside over the next 12 months. On balance, the analyst remains optimistic about thisdefense contractor's chances and maintains his "overweight" rating on the stock.Why?Up 50% from October 2023 lows, is RTX stock still a buy?RTX reported falling profit margins in two of its three main businesses, with Pratt & Whitney declining to an anemic 6.4%. But after earning just $2.23 per share last year, RTX predicted profits will bounce back to at least $5.25 per share this year -- more than double last year's performance.How will RTX do that? Akers says RTX's forecast implies a "substantial ... margin ramp up at both Collins and Pratt" (RTX's airplane parts and airplane engines businesses, respectively). Importantly, the analyst says the number of airplanes grounded by airlines for inspection of suspect Pratt & Whitney engines has peaked, and this division's numbers should improve throughout this year -- and beyond.He's probably right.When RTX first admitted its problems with manufacturing defects in its engines in July 2023, management forecast anywhere from nine to 12 months of accelerated inspections, and removals of engines, that would ground planes in which the engines were installed. Nine months later, this problem should be largely behind RTX -- and both sales and profit margins should begin bouncing back.Granted, there's still the question of whether RTX stock is too expensive to buy. The timeline for inspecting and replacing engines wasn't exactly a secret, and RTX's stock price has risen roughly 50% from its October 2023 lows in anticipation of this very event that's got Wells Fargo feeling optimistic. At 40 times trailing earnings and 2x annual sales, RTX is
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Liquid Restaking Protocol Renzo Airdrops REZ Token, Debuts at $289M Market Cap
| 2024-04-30 |
It covers the following details: Renzo has allocated 32% of the total tokens to the community.The protocol tweeted that the token was not yet available on decentralized exchanges, however Dextools data shows the token is being traded on Uniswap.50% of the tokens accumulated by users with more than 500,000 ezPoints are subject to a three-month vesting period.Liquid restaking protocol Renzo has opened airdrop claims for its native token (REZ), which has debuted at a $289 million market cap, according toCoinMarketCap.The initial circulating supply of REZ is 1.15 billion, with the remaining 8.85 billion tokens remaining locked up until various criteria are met. 31% of the tokens have been allocated to investors, 32% to the community and 20% to core contributors, who are subject to a 1-year lock up and 2-year vesting period.Renzo is a protocol that acts as a portal to EigenLayer by securing actively validated services (AVS). Users that stake ether {{ETH}} on the platform generate a yield and automatically receive ezETH, Renzo’s liquid restaking token, which can be used to generate a higher yield across various decentralized finance (DeFi) protocols.Users holding more than 500,000 ezPoints, which were accumulated by staking on Renzo following its launch in January, are subject to a 50% lockup over a three-month vesting period.Renzo said in atweetthat REZ was not available to trade on any decentralized exchange, although the official token contract posted on Renzo’s website had racked up $75 million in trading volume an hour after claims went live, Dextoolsdata shows.
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Analysis-Inflation hasn't lost its grip on bond markets yet
| 2024-04-30 |
It covers the following details: By Yoruk Bahceli(Reuters) - Government borrowing costs across developed economies saw their biggest jumps in months in April, evidence that bond markets are not yet out of the woods when it comes to inflation and the threat of higher-for-longer than expected interest rates.U.S. inflation jumping the most in six months sent two-year Treasury yields above 5% in April as traders slashed Federal Reserve rate cut bets.Benchmark 10-year U.S. yields, up over 40 basis points (bps) at 4.6% in their biggest move since September when fiscal worries mounted, could also hit 5% soon, some investors reckon. Bond yields move inversely to prices.In Europe, German 10-year bond yields have crossed the closely-watched 2.5% technical level. Britain's rose nearly 40 bps in their biggest monthly jump since May.Ed Hutchings, head of rates at Aviva Investors, said that without U.S. economic data cooling, it was hard to bet with conviction that bond yields would fall."Until the data turns, investors are going to want a little bit of extra compensation to own government bonds," he said.Hutchings has favoured shorter-dated euro zone and UK debt over Treasuries, but noted U.S. yields had pulled European peers higher.Global government bonds have lost investors 2.5% so far this year. That risks leaving 2023's modest return looking like a blip after 15% losses over 2021-22, when surging inflation surprised markets and policymakers.The latest moves highlight market sensitivity to inflation even as it slows from double-digit levels in 2022.EUROPE TOOTraders have also curbed European rate cut expectations, adding to the bond selloff.They expect just 40 bps of Bank of England cuts this year, down from around 70 bps in late March, and around 70 bps from the European Central Bank, down from 90 bps in early April .While the repricing of Fed rate cut expectations prompted much of those moves, investors have also reacted to data this month showing British inflation and wage growth slowed less than expected. Dovish, followed by hawkish BoE polic
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Getir retreats from international markets
| 2024-04-30 |
It covers the following details: Fast-grocery delivery company Getir is making a strategic shift, refocusing its efforts on its home turf of Turkey.This move involves exiting operations in the UK, Germany, the Netherlands, and the US, marking a significant retreat from its ambitious international expansion plans.The decision comes amidst a period of intense competition and a wider slowdown in the rapid grocery delivery sector.Getir's international operations only accounted for 7% of its revenue, but the company faced mounting pressure from investors to kerb losses.The global cost-of-living crisis has further dampened demand for Getir's services, which hinge on delivering groceries within minutes at a premium price point.Earlier this month, Getir was reportedly in discussions regarding apotential financial restructuring.Specifically,Sky Newsreported that the company was exploring options with its primary investors and it could lead to a division of the rapid delivery group, withdrawal from several markets, or the execution of an emergency restructuring process.Despite its international retreat, Getir has reportedly secured fresh funding from existing investors to bolster its domestic operations.This suggests a strong belief in the long-term potential of the Turkish market.The company will also retain itsrecently acquired US subsidiary, FreshDirect, which operates independently.Getir's scaling back reflects the broader struggles of the rapid grocery delivery sector.Many of its competitors have faced similar challenges, with some companies merging, downsizing operations, or even folding entirely.Established takeaway delivery players such as Deliveroo and Uber Eats have also entered the fray, offering grocery delivery alongside restaurant meals.Additionally, some major supermarket chains have developed their own in-house grocery delivery services, further saturating the market.The impact of Getir's retreat will likely be most acutely felt in its departing markets. While the company hasn't confirmed exact figures, estimates suggest significant job losses, with approximately 1,500 positions potentially affected in the UK alone.Getir's story serves as a cautionary tale for startups in the hyper-competitive world of rapid delivery.The initial pandemic boom for grocery delivery services appears to be fading, and long-term profitability remains a challenge for many companies.Getir's decision to focus on its core Turkish market highlights the need for a strategic and sustainable approach in this evolving
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Here Are My 3 Top Artificial Intelligence (AI) Stocks to Buy Right Now
| 2024-04-30 |
It covers the following details: The artificial intelligence revolution is in full swing, as evidence by the strong results reported by several big tech giants last week. There is perhaps no stronger medium-term tailwind than AI spending and investment; however, for investors putting money to work today, many AI-related stocks have soared this year, pricing in a very strong future.So which are the best AI stocks to buy now? Perhaps those companies likely to benefit from the AI revolution, but which have either pulled back or trailed higher-profile peers based on near-term concerns.That makes these three storied tech stocks prime pickups this week for your new AI investment dollars.Meta PlatformsFacebook and Instagram parentMeta Platforms(NASDAQ: META)plunged following its recent earnings report, but let's keep things in perspective. The stock had rallied some 50% at one point earlier this year, so it needed an absolutely perfect report to go higher.Instead, there were some legitimate concerns. Though Meta beat Q1 estimates, management guided somewhat conservatively, for "only" 18% growth in the coming quarter, a deceleration from last quarter's booming 27% growth. While revenue guidance came in a tad light, CEO Mark Zuckerberg actuallyincreased his forecast for capital investmentsin artificial intelligence (AI) this year.Lighter-than-expected revenue and increased spending is certainly a recipe for a sell-off. But that's probably shortsighted. After all, there's a good reason the company is ramping up AI investments this year. Not only are current AI investments benefiting Meta's core social media platform recommendation engines today, but Meta also has the potential to be an AI leader outside of its current core businesses. After all, its Llama 3 large language model has become a best-in-class LLM, especially in the open source community.Mark Zuckerberg said on the conference call with analysts:So with the latest models, we're not just building good AI models that are going to be capable of building some new good social and commerce products. I actually think we're in a place where we've shown that we can build leading models and be the leading AI company in the world. And that opens up a lot of additional opportunities beyond just ones that are the most obvious ones for us. So that's -- this is what I was trying to refer to in
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GE HealthCare misses quarterly revenue estimates on weakness in China market
| 2024-04-30 |
It covers the following details: (Reuters) - GE HealthCare Technologies missed first-quarter revenue estimates on Tuesday, hurt by lower sales in China market and weaker-than-expected demand for its scanning devices, sending its shares tumbling as much as 12% before the bell.The medical device maker's revenue from China market, which constitutes nearly 13% of its total revenue, dropped more than 11% in the quarter ended March 31."Many of GE HealthCare's suppliers were noting weakness in China last quarter, so it makes some sense that we would see that come through (to this quarter)," BTIG analyst Ryan Zimmerman said.The company, at an investor conference last month, had said it expects a sales decline in China during the first half of the year. It expects to see growth in the second half with the end of the Chinese government's anti-corruption campaign that began last year.The company is also facing pressure from the Chinese government's volume-based procurement, under which the country buys drugs and medical devices in bulk at a sharp discount.GE HealthCare's total sales came in at $4.65 billion in the quarter, missing LSEG estimates of $4.8 billion.Sales at its imaging unit — the largest among the company's four segments — were $2.47 billion, also below analysts' estimate of $2.61 billion.The company's three other units are ultrasound, patient care solutions and pharmaceutical diagnostics.On an adjusted basis, it earned $0.90 per share in the first quarter, compared with the $0.91-per-share estimated.GE HealthCare, however, maintained its full-year adjusted profit-per-share forecast in the range of $4.20 to $4.35.(Reporting by Mariam Sunny in Bengaluru; Editing by Shilpi Majumdar)
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Seeking up to 13% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy
| 2024-04-30 |
It covers the following details: So far this year, the stock markets are riding high, with both theS&P 500and the NASDAQ standing just under their record levels. However, the picture may not be all roses and light.Covering the markets from B. Riley Wealth Management, chief investment strategist Paul Dietrich is predicting a mild recession in the US this year – but also an S&P decline of up to 44%. Dietrich is noted for advising his clients to move out of stocks ahead of recessions and market downturns in 2000 and 2007.Summing up his attitude toward current conditions, Dietrich said, “Despite the fun and excitement of participation in the current Mardi Gras-like stock market bubble completely untethered to any stock fundamentals, suppose an investor could miss most of a 49% or 57% decline in the S&P 500 index and then get back into the stock market when the leading economic indicators and long-term moving averages indicate the recession is over.”This is a recipe for a defensive portfolio stance, and some of Wall Street’s analysts are recommendingdividend stocksas solid buys right now. Div stocks are the classic defensive play in a tough investing environment – and for investors looking to realize up to 13% returns on dividend yields, the analysts are suggesting 2 dividend stocks in particular. Let’s take a closer look.Annaly Capital Management (NLY)We’ll start with Annaly Capital Management, a real estate investment trust, or REIT, that focuses its business on residential real estate and mortgage-backed securities. The company is a leader in the mREIT segment, with a market cap of $9.45 billion and approximately $11 billion in permanent capital. Annaly boasts an investment portfolio totaling $73.5 billion, and of that total, some $64.7 billion is held in the company’s ‘highly liquid’ Agency portfolio segment.In addition to its sizable Agency portfolio, Annaly also has large investments in residential credit and mortgage servicing rights. The larger of these two segments is the Residential Credit portfolio, valued at $6.2 billion, while the Mortgage Servicing Rights portfolio holds $2.7 billion worth of assets. These portfolio valuations are current
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Is PepsiCo Stock Still a Buy?
| 2024-04-30 |
It covers the following details: If you've been waiting for the perfect time to buy an under-the-radar dividend stock, you might just be in luck. Many dividend payers are cheaper today thanks to the tech-fueled stock market rally.Wall Street is also avoiding these businesses due to elevated interest rates, which makes them seem like weaker investments -- at least temporarily.PepsiCo(NASDAQ: PEP)is a great example. The snack food and beverage company has been shut out of the market's rally over the past year, dropping 7% in the previous 12 months compared to a 23% spike in theS&P 500. But the business is performing well, even if growth has slowed in recent quarters. Let's look at why you might want to put this dividend standout into your portfolio.Diversification paysPepsiCo is known for its rivalry withCoca-Cola(NYSE: KO)because the companies control the world's top soda brands. Yet a PepsiCo investment delivers far more diversification than you get with Coke. More than half of PepsiCo's earnings come from the foods division, which is anchored by snack and breakfast brands like Doritos and Quaker Oats.That diversification means it can deliver more-stable growth each year, though frequently at a slower overall rate. Organic sales rose by just 3% in the most recent quarter, management announced on April 23. That weak result was mainly due to product recalls that pressured the Quaker Foods unit.But PepsiCo is still projecting that sales will rise by a decent 4% in 2024 following last year's 10% boost. Coke is forecasting much faster growth with its more-focused portfolio.Profit margins aren't flatThe company is making the best out of that slower growth environment. Earnings are jumping thanks to the past year's aggressive price increases, cost cuts, and rising demand for products like energy drinks.Profit per share rose 7% last quarter to easily outpace the company's 3% sales boost. CEO Ramon Laguarta and his team believe earnings will rise by 8% for the full year, or double the projected sales rate.PEP Operating Margin (TTM) ChartThat
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Apple Stock is a Top Holding in These Tech ETFs
| 2024-04-30 |
It covers the following details: Apple - AAPL Stock - iPhone - MacConsumer electronics giant Apple Inc. announces its latest financial results post-market Thursday amid various headwinds, including missed growth expectations, increased competition and increasing perceptions that it is not as innovative as it once was.APPL stock rose 3% on Monday amid investor hopes that the Cupertino, Calif.-based company would build on the same artificial intelligence momentum that has recently swept Microsoft and other tech firms upward. But AAPL is down nearly 12% for the year.This poor performance has been a drag on many tech-focused exchange-traded funds this year. For example, theVanguard Information Technology ETF (VGT)started the week up a modest 4.4% year-to-date, which lagged the 7.3% gain on theSPDR S&P ETF Trust (SPY).Why Is AAPL Stock Down in 2024?Apple, Inc. (AAPL)stock is down in 2024 for many reasons. Here's a breakdown of some potential factors that some analysts say are contributing to the stock price decline:Missed growth expectations:While Apple maintains a massive installed user base, its product sales, particularly iPhones, were down 19% in the first three months of 2024. This has led to investor disappointment and a decline in stock price.Competition:Renewed competition from Huawei, particularly in the Chinese market, is putting pressure on Apple's smartphone dominance. Huawei's resurgence with its advanced 5G technology disrupts Apple's market share, especially in a critical country like China.Innovation shortfall:Apple is battling a rising perception among investors that Apple hasn't delivered groundbreaking innovations recently. Compared to previous years with product launches like the Apple Watch or AirPods, there is a lack of excitement surrounding newer offerings, leading to a less bullish outlook.Tech sector slowdown:The technology sector hasn't performed as well as some other sectors in 2024. This broader slowdown might be affecting AAPL stock along with other tech giants.Valuation concerns:Apple's stock price might have reached a point where some investors believe it's overvalued compared to its current growth
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Is Nvidia Stock a "No-Brainer" Headed to $1,125? 1 Wall Street Analyst Thinks So.
| 2024-04-30 |
It covers the following details: There's no denying thatartificial intelligence(AI) has gone viral over the past year or so, with graphics processing units (GPUs) byNvidia(NASDAQ: NVDA)fueling the fire. In recent weeks, however, the stock has stalled, and investors are wondering what's to come.One Wall Street analyst thinks investors are overthinking it.Leading the AI boomMelius Research analyst Ben Reitzes reiterated his buy rating on Nvidia stock while raising his price target to $1,125. That represents potential gains for investors of 28% over the coming year compared to the stock's closing price on Monday. The analyst points to expandingcapital expendituresby the "Big Three" cloud providers and other big tech companies as evidence that Nvidia stock has further to run.The analyst has a point.MicrosoftandAlphabeteach reported their first calendar quarter results last week, and both announced plans to increase capex spending to support cloud growth fueled by generative AI. At the same time,Meta Platformssaid it plans to boost spending by several billion dollars for the coming year to "support our AI road map."Reitzes references the current AI "gold rush," saying the large cloud providers "are all spending ~20% more on chips than we thought over the next few years." He goes on to say they're "spending like crazy" now, hoping they can "monetize like crazy" later. "Sometimes a no-brainer is a no-brainer," he wrote.If you don't believe it, consider this: Nvidia is the leading provider of the GPUs used in data center processing where much of AI systems reside, with an estimated 95% market share. That dominance was evident in Nvidia's fiscal 2024 fourth quarter (ended Jan. 28), as its data center revenue of $18.4 billion soared 409% year over year, driven by the build-out of data centers to support AI.While Nvidia stock is a bit pricey, selling for 35 times forward earnings, the company's triple-digit growth and market dominance make it worth every penny.Should you invest $1,000 in Nvidia right now?Before you buy stock in Nvidia,
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Logitech CEO aiming to double target market for peripherals
| 2024-04-30 |
It covers the following details: LAUSANNE, Switzerland (Reuters) - Logitech International wants to increase sales in future by making more products for people who work outside offices as well as gamers who play on consoles and mobile phones, Chief Executive Hanneke Faber said on Tuesday.Logitech "can double the total addressable market that we play in for work," Faber told Reuters, by making products used in areas like education and healthcare.The company, which reported its fourth-quarter earnings earlier on Tuesday, could also double its addressable market in gaming by providing more products for console and mobile phone players, she said.(Reporting by John Revill; Editing by Miranda Murray)
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Chipotle Crushes Wall Street Estimates: Is It Too Late to Buy the Skyrocketing Stock?
| 2024-04-30 |
It covers the following details: Chipotle Mexican Grill(NYSE: CMG)has satisfied investors, who have been hungry for massive portions of strong returns. Shares of the fast-casual restaurant concept are up a jaw-dropping 366% in just the past five years, easily outpacing the broaderS&P 500. This business now carries an impressive $86 billion market cap.Therestaurant stockhas soared 40% just this year as of Apr. 26, most recently boosted by better-than-expected first-quarter financials. You might be asking yourself, "Is it too late to buy Chipotle?"No signs of slowing downThe past four years have been some of the most turbulent times for corporate executives. The pandemic was followed by supply chain issues, inflationary pressures, and rapidly rising interest rates. Even today, there are still fears about an upcoming recession.Despite these factors that are perceived as major headwinds and could derail any business, Chipotle has continued humming along as if everything was normal. Last quarter proved that.During the three-month period ended March 31, the company reported revenue anddiluted earnings-per-share(EPS) growth of 14.1% and 23.9%, respectively. The top line was bolstered by a same-store sales gain of 7% due to higher transaction counts and average check sizes. The bottom line improved significantly on the back of a year-over-year drop in operating expenses (as a percentage of revenue).A key part of management's strategy is to open new stores aggressively, and there's no reason they shouldn't follow this plan. The typical Chipotle location rakes in $3.1 million of annual sales, a figure that has trended higher over time.Stores continue to focus on improving throughput and driving efficiencies to better serve customers. The restaurant-level operating margin of 27.5% speaks volumes about how profitable these stores are. Opening more drive-through locations helps, too.The ultimate goal is to get the North American store countto 7,000, which would translate to doubling the current footprint. And the figure doesn't include possible expansion in other markets. Chipotle just opened its first restaurant in Kuwait. If
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5 Top Stocks to Buy in May
| 2024-04-30 |
It covers the following details: Earnings season is officially here. As per usual, there have already been epic sell-offs and run-ups across well-known names.However, long-term investors know that the best way to view a quarterly earnings report is within the context of an investment thesis rather than the market's knee-jerk reaction to short-term results. That's exactly how these Motley Fool contributors discussMicrosoft(NASDAQ: MSFT),Pfizer(NYSE: PFE),NextEra Energy(NYSE: NEE),Home Depot(NYSE: HD), andFiverr International(NYSE: FVRR).Here's why all five companies that have what it takes to besolid long-term investmentsand are worth buying in May.Image source: Getty Images.Microsoft shows no signs of slowing downDaniel Foelber (Microsoft):Microsoft continues to achieve impeccable financial results. While artificial intelligence is a key driver of its growth, the sustained expansion of itscloud businesshas taken the company's results to new heights.Ultimately, it doesn't matter which segment contributes the most growth as long as the overall performance improves. However, Microsoft continues to grow sales and margins across its segments. This one-two punch is a dream come true for investors because it shows Microsoft is becoming even more of a cash cow by generating more operating income from each dollar in sales.In the recent quarter, Microsoft grew its Intelligent Cloud revenue by 21% year over year and boosted the segment operating margin to 46.8% -- which is incredibly efficient. Here's a look at how each of the company's three segments is doing.MetricQ3 Fiscal 2023Q3 Fiscal 2024ChangeProductivity and Business Processes Revenue$17.52 billion$19.57 billion11.7%Productivity and Business Processes Operating Income$8.64 billion$10.14 billion17.4%Productivity and Business Processes Operating Margin49.3%51.8%25 basis pointsIntelligent Cloud Revenue$22.08 billion$26.71 billion21%Intelligent Cloud Operating Income$9.48 billion$12.51 billion32%Intellig
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Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
| 2024-04-30 |
It covers the following details: Cathie Wood kicked off the new trading week looking to shake things up. The co-founder and CEO of Ark Invest added to 11 of her existing positions. She's had a rough start to 2024, but anyone who saw her breakthrough performance in 2020 knows that you never count Wood out.Wood bought shares ofPalantir Technologies(NYSE: PLTR),Meta Platforms(NASDAQ: META), andQualcomm(NASDAQ: QCOM)on Monday, building up some of her largest positions. Let's take a closer look at these three purchases.1. PalantirOne of last year's hottest stocks got off to a strong start through the first two months of 2024. Palantir was nearly a four-bagger in those 14 months, up a wealth-altering 291%. With shares of the software developer for the intelligence community moving lower for the second month in a row, Wood is a buyer.She's not the only one who sees this as apotential buying opportunity. The once-bearish Monness Crespi upgraded Palantir on Friday, boosting its rating from sell to neutral. With Palantir a week away from announcing its first-quarter results, the timing of the upgrade is noteworthy. The company's execution and government contracts remain spotty, and the stock isn't cheap. But with the shares pulling back in recent weeks, Monness Crespi isn't comfortable going into Palantir's upcoming financial update with a bearish rating.Image source: Getty Images.Expectations are high for Palantir. Analysts see revenue rising 19% to $625.3 million for next week's first-quarter report. They also see Palantir's earnings per share soaring 60% to $0.08. Those are ambitious targets, but reality has been more than up to the task, as Palantir has posted double-digit percentage beats on the bottom line in three of the past four quarters.Momentum is on Palantir's side despite the recent downticks. After three years of decelerating top-line growth, Wall Street pros see the top line accelerating in 2024. Why? In part because after a
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Stock Market Today: Stocks slide on inflation concern; Amazon earnings on deck
| 2024-04-30 |
It covers the following details: Updated at 4:35 PM EDT by Rob LenihanStocks finished lower Tuesday, with the S&P 500 marking its first monthly decline since September, amid disappointing economic reports and the Federal Reserve's upcoming rate decision.The Dow Jones Industrial Average fell 570 points, or 1.5%, to 37,815.92, while the S&P 500 lost 80 points, or 1.6%, to 5,035.69 and the tech-heavy Nasdaq dropped 325 points, or 2%, to 15,657.82.The Dow lost 5% in April for its worst monthly performance since September 2022,CNBC reported. The S&P 500 slid about 4.2% this month, and the Nasdaq lost 4.4%.Meanwhile, the Conference Board’s index of consumer confidence fell for a third straight month, sparking renewed stagflation concerns.“Consumers have a more cautious outlook with fewer vacations planned and less demand for big ticket items,” said Jeffrey Roach, chief economist for LPL Financial. “Softer consumer demand would certainly release some inflationary pressure, giving investors and policy makers some reprieve on rate expectations.”Roach said he still expects a decent jobs report on Friday “but don’t be surprised if it comes in softer than previous reports.”Updated at 12:11 PM EDTExtending slideStocks are extending their early declines heading into the afternoon session, with the S&P 500 down 38 points, or 0.76%, and the Dow off more than 330 points.This mornings employment cost index data is the likely culprit, as the spike in wages (and more acutely, benefits) has underscored the Fed's 'last mile' inflation challenge.The Conference Board’s index of consumer confidence, meanwhile, fell for a third straight month, setting up renewed stagflation concerns.Quite a drop in April for expectations component in @Conferenceboard Consumer Confidence Index … now close to retesting summer 2022 lowpic.twitter.com/XPpmdfOKKW— Liz
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