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UK secondhand clothing market grapples with addiction to fast fashion
| 2024-04-30 |
It covers the following details: WRAP is advocating for support through grants, investments and legislation so the secondhand clothing market can fuel the transition towards a more circular fashion ecosystem.It warns that the UK doesn’t have sufficient infrastructure to accommodate all the clothing and textiles that are being discarded and that recycling and reuse organisations need urgent support to avoid sending textiles waste to landfill. It also highlights the need for improved design to make clothes more durable.WRAP's latestTextiles Market Situation Reportrevealed that responsibly donated textiles have seen a significant drop in price. This decline is attributed to the oversaturation of "low-quality fast fashion" items flooding the market, resulting in less revenue for reuse and recycling sectors.Its most recent estimates point to the UK discarding 711,000 tonnes of post-consumer textiles into residual black bins and general waste at Household Waste Recycling Centres (HWRCs). This, WRAP pointed out, is the equivalent of almost 30,000 shipping containers full of cast-off fashion and home textiles items a year.Of this, evidence from WRAP’s newWaste Hotspots Reportfound that in England alone, 613,000 tonnes of post-consumer i.e. household textile waste were disposed through household residual waste bins and residual waste banks at Household Waste Recycling Centres (HWRCs).WRAP noted that 84% of that material was incinerated with energy recovery and 11% sent to landfill. It believes this represents a key concern for an industry with circular economy ambitions.WRAP further warns a "perfect storm" is brewing, with more post-consumer clothing coming onto the second-hand market and the presence of more fast fashion and low-quality items impacting on the profitability of the centuries old markets that trade in second hand clothing and textiles.Its latest report shows that the value of recovered textiles from textile banks and charities has fallen massively over the last decade.According to WRAP, the 2023 figures stood at £172.5 ($216.38) per tonne for textile banks and £255 per tonne for charity shops, while a decade earlier, 2013 figures were more
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McDonald's plans to step up deals and marketing to combat slower fast food traffic
| 2024-04-30 |
It covers the following details: McDonald’s plans to step up deals and value messaging to combat slowing sales.The Chicago burger giantsaid inflation-weary customers are eating out less often in many big markets. In the first quarter, fast food traffic was flat or down in the U.S., Australia, Canada, Japan, the United Kingdom and Germany.“The consumer is certainly being very discriminating in how they spend their dollar,” McDonald's President andCEO Chris Kempczinskisaid Tuesday during a conference call with investors. “It may be more pronounced with lower-income consumers, but its important to recognize that all income cohorts are seeking value.”McDonald's said its same-store sales – or salesat storesopen at least a year -- rose 1.9% worldwide in the January-March period. That was below Wall Street’s forecast of a 2.1% increase, according to analysts polled by FactSet.McDonald'shad warned investorsthat the exceptional post-pandemic growth it saw would likely slow this year. Still, the same-store sales increases the company posted in the first quarter were lower than the 3% to 4% McDonald's usually sees in a typical year.In the U.S., same-store sales rose 2.5% in the first quarter, but that was largely due to price hikes carried over from last year.Kempczinski checked his McDonald's app during the call and noted that there were multiple deals available in his area, including one Big Mac for 29 cents when you buy another. And Kempczinski said 90% of U.S. restaurants are offering meal bundles for $4 or less.But Kempczinski said McDonald's needs a nationwide value message and marketing to back it up. In some areas, it's losing out to competitors on customers' perception of value and affordability, he said. Wendy's is currently offering free fries with the purchase of a medium burger, for example.“There’s a lot of great value out there, but everyone else has a value message too,” Kempczinski said.Things aren't looking much brighter overseas. In McDonald's international franchised markets, same-store sales fell 0.2% in the first quarter as customers in the Middle East and Muslim-majority markets like Indonesia
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Should You Buy Roku Stock on the Dip?
| 2024-04-30 |
It covers the following details: Fool.com contributor Parkev Tatevosian answers if the dip inRoku's(NASDAQ: ROKU)stock price is a buying opportunity for long-term investors.*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 Roku right now?Before you buy stock in Roku, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Roku 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 22, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Roku. 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 Roku Stock on the Dip?was originally published by The Motley Fool
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1 Magnificent Dividend Growth Stock That's Down 40% and Trading at a Once-in-a-Decade Valuation
| 2024-04-30 |
It covers the following details: So far, 2024 has been a year to forget for animal healthcare juggernautZoetis(NYSE: ZTS). Hit by the triple whammy of weak earnings, a formal investigation from the European Commission, and adverse events linked to some of its newest medicines, Zoetis has seen its share price plunge 27% this year and 40% from its all-time highs.We will get to these issues in a moment, but the silver lining to these recent developments is that Zoetis shares now trade at a once-in-a-decade valuation. So this begs the question: Is Zoetis now a fundamentally flawed business destined to continue dropping? Or is this sell-off a unique opportunity for investors willing to buy and hold for a decade and beyond?Here's why I'm leaning toward the latter.Image source: Getty Images.Is Zoetis stock losing its bite?Zoetis is the global leader in medicines, diagnostics, vaccines, and beyond for the companion animal (cats and dogs) and livestock (cattle, swine, horses, fish, and sheep) markets. Selling in over 100 countries, Zoetis is theglobal market share leader(by species) in categories that comprise over 90% of its total sales.This dominant positioning in the animal healthcare industry has helped the company delivertotal returnsof over 400% since its 2013 spinoff fromPfizer. However, after outpacing the returns of theS&P 500index for more than a decade, Zoetis stock has struggled recently after three red flags appeared.Missed earnings and disappointing guidanceDespite growing earnings per share (EPS) by 15% in the fourth quarter, Zoetis missed analysts' EPS estimates by $0.08. Making matters worse, the company also guided for 2024 EPS slightly below analysts' expectations.As disappointing as these shorter-term figures were, 2023 marked the company's 11th consecutive year of growing faster than the animal health industry. The power of this longer-term trend is far more helpful in analyzing the strength of Zoetis' operations than what analysts may expect over
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Is Alphabet Stock Going to $225? 1 Wall Street Analyst Thinks So.
| 2024-04-30 |
It covers the following details: Shares of Google's parent company,Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG), have risen about 60% over the past year, but there could be more fuel in the tank. Susquehanna analyst Shyam Patil recently raised Google's price target on Alphabet to $225 from $170 and maintained the firm's positive rating.Why Wall Street's bullish for AlphabetPatil and his investment bank colleagues are encouraged by Alphabet's recent performance. Both its advertising and cloud computing segments outperformed expectations. Total first-quarter revenue climbed 15% year over year to a record-breaking $80.5 billion.First-quarter Google advertising sales climbed 13% year over year, and this isn't the only sign that the cyclical ad industry is in an upswing. Total acquisition costs crept forward more slowly than sales, which allowed operating profit to soar 46% year over year to $25.5 billion.Alphabet employs about 10,000 fewer people than it did a year ago, but that didn't slow down its cloud computing business. Cloud sales rose 28% year over year to $9.6 billion. The cloud segment also reported a $900 million operating profit, which was a new record for the company.Is Google's parent company a good stock to buy now?Patil's $225 price target for Alphabet seems reasonable. The stock is up sharply this year, but it's still trading for a sensible valuation of around 23 timesforward-looking earningsexpectations. Even if the stock doesn't reach its target in the next 12 months, long-term shareholders have an excellent chance to come out ahead over the long run.Alphabet recently declared a dividend and another $70 billion in stock buybacks. The quarterly payout of $0.20 per share translates to a minuscule yield of about 0.5%, but it's still a great sign of confidence from the company.Should you invest $1,000 in Alphabet right now?Before you buy stock in Alphabet, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now
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Huawei's quarterly profit surges as it takes China phone market share from Apple
| 2024-04-30 |
It covers the following details: BEIJING (Reuters) — Huawei Technologies's net profit leapt 564% to 19.65 billion yuan ($2.71 billion) in the first quarter, a regulatory filing by its parent company showed on Tuesday, as it continues to recover from U.S. sanctions.Huawei's revenue for the quarter to March rose 37% to 178.5 billion yuan, the filing to China's National Interbank Funding Center showed. It did not break down how business units, such as consumer and smart car components, performed.A Huawei spokesperson said "digitalization, intelligence, and decarbonization" helped to drive revenue growth."The industry and global markets will remain rife with uncertainty for the rest of 2024. Nevertheless, we are continuously building out mechanisms for global business continuity and agile operations," the company said."We are confident that we can meet our annual business targets and achieve sustainable growth."A salesman shows a Huawei smartphone to a customer at a Huawei store in Beijing. REUTERS/Jason Lee(REUTERS / Reuters)Last year, Huawei recorded its fastest revenue growth in four years, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from U.S. sanctions.The company's smartphone business has undergone a renaissance since it was crippled by repeated rounds of U.S. sanctions since 2019, after Huawei rolled out a new high-end smartphone powered by a domestically-made chip last year that has taken Chinese market share from Apple.Apple's share in the world's biggest smartphone market fell to 15.7% in the first quarter from 19.7% a year earlier. That put it almost level with Huawei, which saw sales jump 70%, research firm Counterpoint said last week.Huawei also started selling its highly anticipated, high-end Pura 70 smartphone series this month.It has become a force in smart car technology too, with its driver assistance system touted by at least seven Chinese automakers at the Beijing auto show.(Reporting by Brenda Goh; Additional reporting by David Kirton; Editing by Jason Neely and Mark
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I'd Avoid This Industry Like the Plague -- Except for 1 Stock
| 2024-04-30 |
It covers the following details: There are some industries and sectors that have plenty of winners. Technology is a great example. But there are others that only have one or two standout companies among a sea of poorly performing stocks. In this video, Matt Frankel, CFP®, discusses the only hotel owner he'd ever invest in, while Tyler Crowe discusses his top pick in oil exploration and production.*Stock prices used were the afternoon prices of April 25, 2024. The video was published on April 27, 2024.Should you invest $1,000 in Ryman Hospitality Properties right now?Before you buy stock in Ryman Hospitality Properties, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Ryman Hospitality Properties 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 22, 2024Matt Frankelhas positions in Ryman Hospitality Properties.Tyler Crowehas positions in Ryman Hospitality Properties and Unit. The Motley Fool recommends Ryman Hospitality Properties. The Motley Fool has adisclosure policy.Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.I'd Avoid This Industry Like the Plague -- Except for 1 Stockwas originally published by The Motley Fool
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Saudi Arabia card payments market to grow by 7.6% in 2024, forecasts GlobalData
| 2024-04-30 |
It covers the following details: The Saudi Arabia card payments market is forecast to grow by 7.6% to reach SAR550.5bn ($146.8bn) in 2024, driven by consumers’ increasing preference for electronic payments, a surge in contactless payments, and the government’s push for a cashless society, according to GlobalData, a leading data and analytics company.GlobalData’s Payment Cards Analytics, reveals that card payment value in Saudi Arabia registered a growth of 17.8% in 2022, followed by 9.7% in 2023 to reach SAR511.5bn ($136.4bn), driven by a rise in consumer spending.Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, commented: “While cash has traditionally been a preferred method of payment in Saudi Arabia, its usage is on the decline in line with the rising consumer preference for electronic payments. The country has a robust digital payment infrastructure, supported by a developing card market and a well-established card acceptance infrastructure. The government is taking steps to enhance the infrastructure in the country by encouraging merchants to adopt at least one electronic payment option apart from cash.”Cash remains an integral part of the Saudi consumer payments landscape, particularly for lower-value transactionsHowever, there has been a consistent decline in cash usage, while electronic payment methods have witnessed an increase. The government also aims to reduce the country’s dependence on cash, promote electronic payments, and encourage payment innovation. The Kingdom's Vision 2030 plan is aimed at reducing cash transactions and increasing the share of electronic payments to 70% of all transactions by 2025. This will greatly benefit debit and credit card adoption and usage.Sharma adds: “The COVID-19 pandemic changed the way Saudi consumers make payments, with an increasing number of consumers preferring contactless payments supported by an improved payment infrastructure. Contactless cards have been on the rise in the country with the Saudi Arabian central bank reporting 363.4 million transactions using NFC-enabled mada cards in February 2024 compared to 331.7 million in February 2023. This surge was supported by a robust contactless payment infrastructure, with 1.8 million POS terminals driving contactless payments as of February 2024.”In terms
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Addex stock tanks after lead drug flops in Phase II epilepsy trial
| 2024-04-30 |
It covers the following details: Addex Therapeutics’s lead drug candidate, developed in collaboration with Johnson and Johnson (J&J), has failed to meet endpoints in a Phase II trial.Following the release of the Phase II top-line results, the Swiss company’s stock was down by 53.3% at the market close on 29 April compared to the market close on the previous day. According toYahoo Finance, Addex’s market cap stands at $8.8m.The placebo-controlled Phase II trial (NCT04836559) evaluated ADX71149 (JNJ-40411813) as an adjunct therapy in 110 patients with epilepsy. The study failed to achieve statistical significance for the primary endpoint of time for patients to reach baseline seizure count.Addex did not provide additional information regarding the future of drug development. However, the company’s chief medical officer, Roger Mills, added: “We will provide details on data from the full study when this analysis is completed and will work with our partner to determine the next steps for the ADX71149 program.”ADX71149 is a positive allosteric modulator (PAM) of metabotropic glutamate receptor-2 (mGlu2 receptor), which plays a key role in seizure initiation and spread. The drug was developed as part of a partnership with J&J signed back in 2004.Earlier this month, Addexspun out a new company, Neurosterix, to develop its preclinical neurological assets. In exchange for the drug candidates and technology, Addex received SFr5m ($5.5m) and 20% equity in Neurosterix.Addex has also partneredwith Indivior and is developing the gamma-aminobutyric acid subtype B (GABA-B) PAM asset, INDV-1000. The therapy is in preclinical development, with plans to select drug candidates for an investigational new drug (IND), enabling studies in June for substance use disorder and chronic cough programs.Otherallosteric modulator assetsin the Addex pipeline include dipraglurant and a GABA-B PAM candidate for the treatment of chronic cough. The company
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UnitedHealth Stock Sales Prompt Lawmakers to Call for SEC Probe
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Democratic US lawmakers led by Massachusetts Senator Elizabeth Warren are asking the Securities and Exchange Commission to investigate the timing of stock sales by UnitedHealth Group Inc.’s chairman and three executives.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsTesla Soars on Tentative China Approval for Driving SystemStocks Trade for 390 Minutes a Day. Increasingly, Only 10 MatterBinance and CZ’s Fortunes Are Set to Grow, Jail or no JailCo
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Wall Street stocks fall as markets weigh strong wage data, Fed meeting
| 2024-04-30 |
It covers the following details: By Chibuike OguhNEW YORK (Reuters) - U.S. stocks ended lower on Tuesday as markets weighed economic data showing rising labor costs and deteriorating consumer confidence on the day of a key Federal Reserve policy meeting to decide the direction of interest rates.Data showed on Tuesday that U.S. labor costs rose by a more-than-expected 1.2% last quarter, indicating an uptick in wage pressures. A survey also found that U.S. consumer confidence worsened in April, dropping to its lowest level in more than 1-1/2 years.The reports came a day before the Federal Reserve Open Market Committee (FOMC) ends its two-day meeting, with investors widely expecting the central bank to leave interest rates unchanged.Most Magnificent Seven stocks finished lower, including Tesla, Alphabet, Nvidia, Microsoft, and Amazon."We're still in an environment where the knee-jerk reaction is to extrapolate any warmer data into firmer inflation and more hawkish reaction from the Fed," said Garrett Melson, portfolio strategist at Natixis Investment Managers in Boston."But nothing has changed: growth is still strong, labor markets are holding up, and ultimately we're taking a little bit of breather in the disinflation process," Melson added.Money markets are pricing in just about 31 basis points (bps) of rate cuts this year, down from about 150 bps estimated at the start of 2024, according to LSEG data.According to preliminary data, the S&P 500 lost 79.92 points, or 1.56%, to end at 5,036.25 points, while the Nasdaq Composite lost 325.26 points, or 2.00%, to 15,664.13. The Dow Jones Industrial Average fell 574.08 points, or 1.47%, to 37,823.57.Shares of GE HealthCare shrank after its first-quarter revenue missed analyst estimates, 3M gained after posting a better-than-expected quarterly profit.Drugmaker Eli Lilly jumped after it raised its full-year profit forecast. PayPal rose
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These 2 Stocks Have Their Highest Dividend Yields in a Decade. Time to Buy?
| 2024-04-30 |
It covers the following details: Real estate investment trusts, or REITs, haven't exactly performed well in the rising-rate environment, but there's good news for investors with money to deploy. Several high-quality REITs are paying unusually high dividend yields, including these two that have their highest yields in over a decade.*Stock prices used were the afternoon prices of April 25, 2024. The video was published on April 27, 2024.Should you invest $1,000 in Public Storage right now?Before you buy stock in Public Storage, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Public Storage 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 22, 2024Matt Frankelhas positions in Public Storage.Tyler Crowehas positions in Rexford Industrial Realty. The Motley Fool has positions in and recommends Rexford Industrial Realty. The Motley Fool has adisclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.These 2 Stocks Have Their Highest Dividend Yields in a Decade. Time to Buy?was originally published by The Motley Fool
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Geopolitics and U.S. rules push chip firms to decouple from mainland China, with one major Taiwanese testing company ditching the market entirely
| 2024-04-30 |
It covers the following details: It's hard to be a chip company with operations in mainland China, one of the world's largest producers of the semiconductors that power everything from consumer electronics to household appliances. Washington wants toconstrain China's chip developmentwhile bolstering its own semiconductor industry. Now, one Taiwanese semiconductor firm is pulling out of mainland China's chip sector altogether, blaming the effects of U.S. tech controls.On Friday, King Yuan Electronics Co. (KYEC), a major player in the testing and packaging segment of the semiconductor supply chain, said it would exit the mainland China market ina Taiwan stock exchange filing. The company said it would dispose its entire 92.16% stake in its mainland China-based subsidiary, King Long Technology (Suzhou), to a consortium of Chinese firms for 4.9 billion yuan ($676.5 million).KYEC, in its filing, said there were "many uncertainties" regarding the operating environment for King Long Technology. In a statement, the companyalso pointedto the impact of geopolitics on the semiconductor industry and U.S. restrictions on China's semiconductor industry.The company said it would invest in the proceeds from selling its mainland Chinese operations, totaling $16.6 billion New Taiwan dollars ($509 million), in building new factories and procuring high-end testing technology to meet growing demand in AI and high-performance computing. The Taiwanese company said it would focus on the island's existing chip supply chain, but did not rule out global investments.KYEC is headquartered in Hsinchu, in northern Taiwan. The city is home to the Hsinchu Industrial Science Park,a key semiconductormanufacturing hub for Taiwan and the global industry. Apart from its headquarters, KYEC also has a presence in Singapore, Japan, and the U.S.KYEC did not immediately respond toFortune’srequest for comment.ChipdecouplingKYEC's decision to leave the mainland Chinese market shows how difficult it is for companies in the chip supply chain to navigate a more complicated geopolitical climate. Chinaholds a significantmarket share in legacy chips, accounting for 31
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Why I'm Buying This Beaten-Down, High-Yield Dividend Stock Hand Over Fist
| 2024-04-30 |
It covers the following details: I owned shares ofPfizer(NYSE: PFE)when the COVID-19 pandemic started. Watching the stock soar over 60% in roughly two years was fun. Seeing Pfizer's share price fall nearly 60% from its peak wasn't so fun.Have I been tempted to sell during this major decline? Nope. Instead, I'm buying this beaten-down, high-yield dividend stock hand over fist.Through the dark cloudsIt's understandable why Pfizer stock has fallen so much. The drugmaker has faced some big challenges and has more on the way.Pfizer's revenue in 2023 fell 42% from the previous year. Sales for the company's top-selling product, COVID-19 vaccine Comirnaty, sank 70% year over year. Sales for Pfizer's COVID-19 pill Paxlovid plunged 93%. Ouch.Those COVID woes weren't Pfizer's only problem areas. Sales for six of the company's cancer drugs that generate $180 million or more annually fell by double-digit percentages. Revenue for Pfizer's best-selling cancer therapy, Ibrance, dropped 7% year over year in 2023.To make matters worse, the key U.S. patents for seven of Pfizer's products expire by 2027. All wereblockbusterslast year.So why am I buying Pfizer stock? I can see the sun peeking out through the dark clouds. I've observed the tremendous productivity of the company's pipeline in recent years, with a record number of Federal Drug Administration (FDA) approvals in 2023. I've also watched Pfizer use the massive cash stockpile accumulated during the peak COVID period to gobble up several smaller drugmakers. These deals have bolstered the company's pipeline considerably.The numbers look goodAs I see it, Pfizer's numbers look very good. Let's start with valuation. The stock trades at aforward price-to-earnings ratioof under 11.5. Compared to theS&P 500's forward-earnings multiple of 20.5, Pfizer is dirt cheap.Granted
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3 High-Yield Dividend Stocks I'm Excited to Buy More of in May
| 2024-04-30 |
It covers the following details: I'm on a mission to build out my passive income to the point where it can cover my expenses. I still have a long way to go. However, like the tortoise, I make slow and steady progress each month by investing more money into assets that generate passive income.A key aspect of my passive income strategy is investing in dividend stocks.Itend tofocus on companies that pay a steadily rising, higher-yielding dividend.VICI Properties(NYSE: VICI),Brookfield Infrastructure(NYSE: BIPC)(NYSE: BIP), andCamden Property Trust(NYSE: CPT)top the list ofhigh-yield dividend stocksthat I'm excited to buy more of in May.Here's whyI believethey can supply me with a lucrative and growing stream ofdividend income.Betting that the house will always pay its rentVICI Properties' dividend currently clocks in at a 5.8% yield. That's several times higher than theS&P 500's dividend yield (around 1.4%).The real estate investment trust (REIT) backs that payout withaverystrongfinancial profile. It owns a high-quality portfolio of experiential real estate (including some of the top gaming properties on the Las Vegas Strip) that generates very stable rental income backed by long-termnet leases. It pays a conservative portion of its steady income in dividends (75% of its adjustedfunds from operations or FFO). On top of all that, it has an investment-grade balance sheet with a lowleverage ratioand long-term, fixed-rate debt.VICI Properties' strong financial profile gives it the flexibility to invest in expanding its portfolio. The REIT secured $1.8 billion of new investments last year, including acquiring 38 bowling entertainment centers fromBowleroandproviding funding to buildan indoor water park and a couple of destination golf courses. The company's growing portfolio has enabled itto increase its dividend steadily. It has raised its payout every year since its formation, growing it at a 7.6% compound annual rate since the end of 2018. With ample financial flexibility and a long growth runway, VICI Properties should be able to continue pushing its payout higher.The
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What Is the Price Target for Plug Power Stock?
| 2024-04-30 |
It covers the following details: Plug Power(NASDAQ: PLUG)is a volatile stock, no doubt. In 2021, shares of this small energy company maxed out at $73 per share. Today, they trade hands at just $2.40. What has soured investors so much on this small-cap stock and where do Wall Street analysts think it could now be headed?Staking out a place in energy's futurePlug Power is focused on developing hydrogen systems. The market potential could be huge: $1.4 trillion, by one estimate. But the company also faces challenges. Hydrogen fuel isn't yet cost efficient, and competitors are also cropping up.The uncertainty has left analysts with a range of opinions. According to data fromFactSet, 30 analysts cover the stock. Nine rate it a buy or overweight, 17 rate it a hold, and four rate it a sell. If you average those together, the consensus rating for Plug Power stock is a "hold." That's a big change from three months ago, when the consensus was a "buy."When it comes toshare price targets, the highest for Plug Power is $18 while the lowest is $2. The median stands at $4 -- still meaningfully higher than the current stock price of $2.40.Before you deem the shares a buy, however, take note of two things. First, Plug Power's stock price is changing fast. Over the last 30 days, shares have lost nearly one-third of their value. Analyst price targets likely need time to catch up to current conditions.Second, analysts haven't proven very reliable when it comes to predicting this volatile stock. Three months ago, when the consensus rating on the stock was "overweight," the stock price was nearly 50% higher than where it is today.There area lot of concernswith Plug Power stock right now, and the dip in analyst expectations seems to reflect that reality. While some price targets still seem to suggest massive upside, be sure to dig into the numbers yourself to arrive at your own conclusions.Should you invest $1,000 in Plug Power right now?Before you buy stock in Plug Power, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy
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Is Roku Stock Going to $80? 1 Wall Street Analyst Thinks So.
| 2024-04-30 |
It covers the following details: Shares ofRoku(NASDAQ: ROKU)are down about 46% from a peak they set last year, but Wall Street's still bullish for the streaming platform.Susquehanna analyst Shyam Patil recently lowered his firm's price target for Roku to $80 per share and maintained a positive rating. The reduced target still implies a gain of about 38% from recent prices.Why Wall Street isn't changing the channel on RokuRoku's been operating since 2002, but it's still losing money. Last year, it lost a stunning $709 million.Despite poor performance on its bottom line, Patil and his Wall Street colleagues are generally bullish for the streaming platform. That's because its net loss narrowed to just $50.9 million in the first quarter.If you're willing to ignore a heap of noncash expenses, such as $94.6 million instock-based compensation, Roku's already profitable. Cash from operations reached $46.7 million in the first quarter. Over the past 12 months, Roku has generated $427 million infree cash flow.A buy now?Patil's $80 price target isn't unreasonable. At recent prices, the stock is trading for around 19.5 times trailing free cash flow, which is a fair price to pay for a business growing as quickly as Roku.In the first quarter, the number of households streaming with Roku devices rose 14% year over year to 81.6 million. It hardly costs streamers anything to watch a Roku device, but the company records about $40 in revenue per user annually. With such a valuable platform, profits could roar higher.Risk-averse investors probably want to wait until Roku can report net income according to generally accepted accounting principles (GAAP). With profitability metrics rapidly moving in the right direction, though, investors with a high tolerance for risk would do well to add some shares to their portfolio now.Should you invest $1,000 in Roku right now?Before you buy stock in Roku, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Roku wasn’t one of them.
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Chipotle Is Incredible, but This Restaurant Stock Is Better
| 2024-04-30 |
It covers the following details: Chipotle's(NYSE: CMG)first-quarter 2024 results showed a company continuing to operate very efficiently in the food business. But the stock is expensive, and there's a cheaper company with even more impressive results. Travis Hoium covers both in this video.*Stock prices used were end-of-day prices of April 26, 2024. The video was published on April 28, 2024.Should you invest $1,000 in Chipotle Mexican Grill right now?Before you buy stock in Chipotle Mexican Grill, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Chipotle Mexican Grill 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 22, 2024Travis Hoiumhas positions in Portillo's. The Motley Fool has positions in and recommends Chipotle Mexican Grill. 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.Chipotle Is Incredible, but This Restaurant Stock Is Betterwas originally published by The Motley Fool
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Is It Too Late to Buy Microsoft Stock?
| 2024-04-30 |
It covers the following details: Microsoft(NASDAQ: MSFT)posted its latest earnings report on April 25. For the third quarter of fiscal 2024, which ended on March 31, the tech giant's revenue rose 17% year over year to $61.9 billion and beat analysts' expectations by $971 million. Its earnings per share (EPS) grew 20% to $2.94 and cleared the consensus forecast by a dime.Those headline numbers were impressive, but is it too late to buy its stock after Microsoft's near-50% rally over the past 12 months?Its cloud growth is still acceleratingMicrosoft operates three main businesses: the Intelligent Cloud division, which houses its cloud and server products; the Productivity and Business Processes division, which handles Office, Dynamics, and LinkedIn; and the More Personal Computing division, which includes its Windows, Xbox, Surface, Bing, and digital advertising businesses.Image source: Getty Images.During the third quarter, Microsoft generated 43% of its revenue from the Intelligent Cloud division, 32% from the Productivity and Business Processes division, and the remaining 25% from the More Personal Computing division. Here's how those three businesses fared over the past year.MetricQ3 2023Q4 2023Q1 2024Q2 2024Q3 2024Intelligent Cloud Revenue Growth (YOY)16%15%19%20%21%Productivity and Business Processes Revenue Growth (YOY)11%10%13%13%12%More Personal Computing Revenue Growth (YOY)(9%)(4%)3%19%17%Total Revenue Growth (YOY)7%8%13%18%17%Data source: Microsoft. YOY = Year-over-year.The Intelligent Cloud segment's accelerating growth over the past year was largely driven by Azure, the world's second largestcloud infrastructure platformafterAmazonWeb Services (AWS). Its "Azure and other cloud services" revenue increased 31% year over year in the third quarter, compared to its 3
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SPP Markets+ Western market plan sparks support, protest and concerns
| 2024-04-30 |
It covers the following details: This story was originally published onUtility Dive. To receive daily news and insights, subscribe to our free dailyUtility Dive newsletter.The Southwest Power Pool’s plan to launch its Markets+ market in the West drew support, opposition and recommended changes from utilities, state regulators and other stakeholders, in Monday filings at the Federal Energy Regulatory Commission.One of the main concerns is how to manage the seams that would be created between the Markets+ footprint and the pending Extended Day-Ahead Market set to be run by the California Independent System Operator, as well as with other balancing authorities.Other concerns include a lack of clarity about some aspects of the plan, its greenhouse gas tracking provisions and inadequate ratepayer representation in the market’s governance structure, according to comments.Late last month, SPP askedFERC to approve its Markets+ market, which includes day-ahead and real-time energy and flexibility reserve product markets, carbon pricing and congestion rent models, along with a transmission coordination model. SPP aims to launch the market for the West in 2027.Markets+ garners utility supportArizona utilitiesSalt River Project,Tucson Electric PowerandArizona Public Serviceurged FERC to approve SPP’s proposal.“Markets+ has great potential for customer cost savings and enhanced reliability,” APS said. “These benefits are enabled through ISO/RTO market-like features existent in the market design adopted by Markets+.”The proposal includes an independent governance structure that facilitates equitable representation for market participants and stakeholders, the Phoenix-based utility said. It also includes key reliability features such as adopting the Western Resource Adequacy Program as a common resource adequacy structure for market participants, according to APS.APS said that Markets+ will improve the efficiency of market seams by producing a market solution using a flow-based dispatch to optimize unit commitments and dispatch between market participants. Seams between balancing authority areas will exist in the West even if there is only one day-ahead market, according to APS.“If Markets+ is not approved, APS and other entities may determine that continuing with only real-time market participation is the best option and refrain from joining a day-ahead market,” the utility said.
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Vanguard S&P 500 ETF vs. Vanguard High Dividend Yield ETF: Which Is Best for You?
| 2024-04-30 |
It covers the following details: Exchange-traded funds, orETFs, can be a great way to achieve strong long-term performance in your portfolio without much ongoing effort from you. Whether or not you invest in individual stocks, high-quality index funds can form a solid backbone to your nest egg and help give you peace of mind during turbulent markets.Two excellent low-cost index fund ETFs are theVanguard S&P 500 ETF(NYSEMKT: VOO)and theVanguard High Dividend Yield ETF(NYSEMKT: VYM). While it's tough to make a good argument that either ETF is a bad choice, there are some key differences between them.Two low-cost ETFs with excellent portfoliosThe Vanguard S&P 500 ETF is a bet on large American businesses. As the name implies, this fund invests in the 500 companies that make up the S&P 500 benchmark index, and it aims to match the performance of the index over time. And with a bare minimum annual expense of 0.03% of fund assets, the long-term performance should be extremely close to that of the actual index.Since 1965, the annualized total return of the S&P 500 has been 10.2%. While there's no guarantee that the S&P 500 will match this rate of return going forward, the point is that over long periods of time, investing in the S&P 500 has been a winning strategy, and will likely continue to be one for the foreseeable future.The Vanguard High Dividend Yield ETF, on the other hand, tracks an index of companies that pay above-average dividend yields. As of the latest information, the ETF had 557 stocks, and like the S&P 500, it is a weighted index, meaning that larger companies make up more of the fund's assets.Just to give you an idea of what the fund invests in, top holdings includeJPMorgan Chase,Broadcom,ExxonMobil, andHome Depot, just to name a few.Important differences to knowOf course, the obvious difference between these two ETFs is that one is focused on income, while the other is
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Forget Starbucks: Buy This Unstoppable Growth Stock Instead
| 2024-04-30 |
It covers the following details: Historically,Starbucks(NASDAQ: SBUX)has been a big winner on the stock market.The company essentially pioneered the modern-day coffeehouse concept in the 1990's and the format has been copied by a wide range of competitors, including independent coffee shops and large chains.Howard Schultz's fundamental innovation, bringing espresso drinks to the American market and adapting the experience to American tastes, generated tens of billions of dollar market value for Starbucks and made the brand famous around the world.However, these days Starbucks appears to be struggling. The stock has underperformed theS&P 500over the last few years, comparable sales growth has been sluggish, and Starbucks' reputation has suffered due to a unionization push that has led to some stores closing.Investors looking for the kind of growth that Starbucks represented in its earlier years are better off looking elsewhere. And one toprestaurant stockto consider isCava Group(NYSE: CAVA).Image source Cava.The next restaurant star?Cava has been a publicly traded stock for less than a year, but it's showing the strength of a much more mature restaurant company. The company combines strong comparable sales, an aggressive expansion strategy, improving restaurant-level operating margins, and a proven business model.Cava is a Mediterranean fast-casual chain and resemblesChipotlein a number of ways. Like Chipotle, Cava's menu is focused around rolled-up pita sandwiches that resemble burritos as well as bowls.The fast-casual chain is also well-represented in the digital channel as digital orders made up 36% of its revenue last year.Its other results help show Cava's potential. Revenue jumped 60% last year to $717.1 million as it opened 72 locations. The company now operates more than 300 restaurants, benefiting from its acquisition and rebranding of Zoe's Kitchen.Comparable sales last year surged 18%, and the company recorded average unit volumes of $2.6 million, showing its restaurants bring in high volumes of customers, a bullish sign for the company's future growth.On the bottom line, Cava's growth story is also taking shape
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Forget Nvidia: Prominent Billionaires Are Selling It and Buying These 2 Ultra-High-Yield Dividend Stocks Instead
| 2024-04-30 |
It covers the following details: Since the advent of the internet roughly 30 years ago, there hasn't been an innovation or trend that's excited professional and everyday investors quite likeartificial intelligence (AI).The lure of AI is the ability of software and systems to learn over time without human intervention (what's known as "machine learning"). Having these systems become more proficient at their assigned tasks, as well as expanding their utility beyond their initial assignment(s), gives AI a use case in virtually all sectors and industries.Wall Street's brightest minds and most successful investors aren't oblivious to the game-changing growth potential AI brings to the table. It's why semiconductor stockNvidia(NASDAQ: NVDA)has gained close to $1.9 trillion in market cap since 2023 began.But not all of Wall Street's top-tier investors see this AI darling maintaining its elite status.Image source: Getty Images.Prominent billionaires have been decisive sellers of Nvidia stockNvidia has arguably benefited from the AI revolution more than any other company. Its A100 and H100 graphics processing units (GPUs) have become the clear choice of businesses running AI-accelerated data centers. Various estimates from Wall Street analysts peg Nvidia's share of GPUs deployed in high-compute data centers at roughly 90% in 2024!Additionally, exceptional demand for Nvidia's chips -- especially its H100 GPUs that power large language models and generative AI solutions -- helped the company more than triple its Data Center segment sales last year. With demand handily outpacing the supply of its high-powered GPUs, Nvidia's margins, sales, and profits have all soared.Despite these positives,eight prominent billionaire investors pared down their fund's respective stakesin Nvidia during the December-ended quarter. The three biggest sellers included (total shares sold in parentheses):Israel Englander of Millennium Management (1,689,322 shares)Jeff Yass of Susquehanna International (1,170,611 shares)Steven Cohen of Point72 Asset Management (1,088,821 shares)History provides a key reason for these
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Should You Buy Lucid Stock Before May 6?
| 2024-04-30 |
It covers the following details: Fool.com contributor Parkev Tatevosian answers if investors should buyLucid(NASDAQ: LCID)stock before the company reports quarterly earnings results.*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 Lucid Group right now?Before you buy stock in Lucid Group, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Lucid Group 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 22, 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 Lucid Stock Before May 6?was originally published by The Motley Fool
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Meet the Newest Dividend Stock in the Nasdaq 100. It Could Be a $4 Trillion Company by 2030, With Help From Artificial Intelligence.
| 2024-04-30 |
It covers the following details: Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL)had more than $110 billion in cash and cash equivalents on its balance sheet at the end of 2023. The company is investing heavily in artificial intelligence, and capital expenditures are projected to climb 27% this year from a record $32 billion last year, according to Bloomberg.However, several Wall Street analysts saw that cash pile as evidence that Alphabet was preparing to pay a dividend. Lo and behold, when the company reported first-quarter earnings results last week, management announced a dividend of $0.20 per share payable on June 17 to stockholders of record on June 10.That makes Alphabet the newest dividend stock in theNasdaq 100, an index that tracks the 100 largest companies on theNasdaq Stock Exchange. But investors shouldn't interpret that news to mean Alphabet lacks growth prospects. On the contrary, its market capitalization could reach $4 trillion by 2030, implying 90% upside.Here's what investors should know.Alphabet looked strong in the first quarterAlphabet reported stellar financial results in the first quarter, easily surpassing what Wall Street expected on the top and bottom lines. Revenue increased 15% to $80.5 billion due to particularly strong momentum in Google Cloud, the product category that includes cloud infrastructure and platform services, and the business productivity suite called Google Workspace.Alphabet has been optimizing its cost base by focusing on the most compelling product development opportunities and rightsizing its workforce. That strategy continued to bear fruit in the first quarter. Operating margin expanded 700 basis points (7 percentage points) andGAAPnet income jumped 62% to $1.89 per diluted share.The chart below provides more detail on first-quarter revenue growth across Alphabet's four primary product categories.The chart shows Alphabet's revenue growth by product category in the first quarter of 2024.Going forward, management sees substantial growth opportunities in search advertising and cloud computing, especially where artificial intelligence (AI) is concerned. CEO Sundar Pichai said, "Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI
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2 Dow Jones Dividend Stocks That Still Look Like Bargains
| 2024-04-30 |
It covers the following details: It's already been a pretty good year for two of America's three main market indexes. Enthusiasm for growth stocks already pushed theNasdaq CompositeandS&P 500indexes more than 6% higher since the start of 2024.Unfortunately, theDow Jones Industrial Averagehasn't kept pace with its larger cousins. It's up by less than 1.5% this year, and some of its components appear underappreciated.Image source: Getty Images.Before assuming the Dow Jones Industrial Average is full of losers, it's important to understand it's a price-weighted index. WhenWalmart, one of its components, enacted a three-for-onestock splitin February, the big box retailer's contribution to the Dow Jones index immediately decreased by two-thirds. Walmart's market value didn't change in the blink of an eye -- just the stock price and number of shares outstanding.The Dow Jones Industrial Average is deeply flawed, but it has a redeeming feature. Stocks aren't added to the list unless their underlying businesses have already shown an ability to generate profits on a recurring basis.Here's a look at two reliably profitable businesses in the Dow Jones Industrial Average index that could continue raising their dividend payouts for many years to come.VerizonVerizon(NYSE: VZ)is the largest member of America's three-way telecommunications oligopoly. At recent prices, its stock offers an eye-popping 6.7% dividend yield.The company announced its 17th consecutive annual-payout raise last September. Unfortunately for Verizon's long-term shareholders, those raises haven't been very big. The mobile and broadband internet service provider's payout has only risen by 10.4% over the past five years.Shares of Verizon have been trading for about 8.7 times trailing free cash flow. That is a tempting price to pay for a reliably profitable industry leader. Even if profits stagnate, the business will generate about $11.49 annually in cash available to reinvest, make dividend payments, repurchase shares, or reduce its debt load for every $100 invested at recent prices.Before loading up on Verizon stock
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Has Snap Stock Finally Turned a Corner?
| 2024-04-30 |
It covers the following details: Snap(NYSE: SNAP)finally reported a good quarter in the first quarter of 2024, and the market reacted positively. While the company isn't making money, there were bright signs, which Travis Hoium digs into in this video.*Stock prices used were end-of-day prices of April 26, 2024. The video was published on April 28, 2024.Should you invest $1,000 in Snap right now?Before you buy stock in Snap, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Snap 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 22, 2024Travis Hoiumhas positions in Snap. The Motley Fool has no position in any of the stocks mentioned. 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.Has Snap Stock Finally Turned a Corner?was originally published by The Motley Fool
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4 Reasons to Buy Costco Stock Like There's No Tomorrow
| 2024-04-30 |
It covers the following details: Costco(NASDAQ: COST)has been one of the market's most resilient retail stocks since its public debut in 1985. The warehouse retailer endured four major U.S. recessions while turning a $1,000 investment in its IPO into more than $436,600.That was an incredible run, but cautious investors might be hesitant to buy Costco today because it looks a bit pricey at 46 times forward earnings. So today, I'll discuss four reasons it deserves that premium valuation -- and why it could head higher.Image source: Getty Images.1. Membership growth and high renewal ratesCostco can sell its products at such low prices and margins because it generates most of its profit from its high-margin membership fees. To keep growing, it needs to keep gaining new members while maintaining high renewal rates.In the second quarter of fiscal 2024 (which ended in February), Costco's total number of cardholders rose 7.3% year over year to about 132 million. Its worldwide renewal rate stayed flat year over year at 90.5%, but its renewal rate in the U.S. and Canada -- which accounts for 81% of its stores -- reached 92.9%.2. Expanding brick-and-mortar presenceCostco's low prices, sales of bulk products, and sticky membership plans enable it to compete effectively against e-commerce giants likeAmazonand superstores likeWalmart. That's how Costco survived the "retail apocalypse" which wiped out many of its brick-and-mortar peers.Instead of closing its brick-and-mortar stores, Costco expanded its presence from 638 warehouses at the end of fiscal 2013 (which ended in September. 2013) to 875 warehouses at the end of the first quarter of fiscal 2024. It also expanded overseas by opening more warehouses in Asia and Europe. That growing store count should lock more customers into its membership plans and widen its moat against Walmart's Sam's Club,BJ's Wholesale, and other warehouse retailers. Costco plans to open 30 new
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Standing out in a crowded market: how packaging design is evolving
| 2024-04-30 |
It covers the following details: The packaging industry is constantly evolving, with design trends adapting to meet the changing needs of consumers and brands alike. In a competitive landscape, brands need to find ways to differentiate themselves and increase brand appeal on store shelves.Simon Ellis, Managing Director of strategic creative agency Into The Light, discusses these trends and how packaging design is playing a crucial role in brand success.The demise of Little Chef: A cautionary taleEllis opens by highlighting the cautionary tale of Little Chef, a restaurant chain that once thrived but failed to adapt to changing consumer preferences.It lost sight of the market's shift towards convenience food, leading to its decline. This story emphasises the importance for brands, particularly in the FMCG (Fast Moving Consumer Goods) sector, to stay relevant and evolve its branding and product proposition, as Ellis explains: "They lost their relevance. They’d lost sight of how the market was changing…”“Customers were no longer as keen to stop for a sit-down meal, they wanted good, wholesome, quality food in an instant! So, they were replaced by brands like Costa, Starbucks, Greggs that provided quality food, with great service that you could eat on-the-go!”Packaging design trends for staying relevantEllis outlines two key design trends that are helping brands stay relevant:Less is more:In today's fast-paced world, consumers have limited attention spans.According to Ellis, research by an FMCG player revealed that shoppers typically only read 7 words on packaging in a 60-minute shopping trip. This highlights the need for simplicity and clear communication.Ellis reinforces this point: "You’ll be familiar with the phrase ‘less is more’, well this couldn’t be more apt for packaging design. […] How many times do you see a piece of packaging with multiple flashes and icons seemingly communicating all the brands USP. Do people take notice? No. They simply don’t have time."Go big or go home:Ellis highlights that amplifying a brand's existing distinctive assets can significantly enhance recognition.Ellis cites Yougov research that found consistent brand presentation across platforms can increase revenue by up to 23%. Examples include Nurofen's bullseye target and Nescafe's recent focus on its “apost
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Why I Just Bought More of This Magnificent 5.7%-Yielding Dividend Stock (and Why I'll Continue Buying in May)
| 2024-04-30 |
It covers the following details: I have been steadily building a position in dividend powerhouseRealty Income(NYSE: O)over the past few years. I recently boughtsomemore shares and plan to do that again this May. Here's why I can'tseem toget enough of this magnificent dividend stock these days.A premier passive-income producerThe biggest reason I have been buying Realty Income is to collect more of its attractivemonthly dividend. The real estate investment trust (REIT) currently yields 5.7%. That's several times above theS&P 500's 1.4% dividend yield.That sizable payout is onan extremely firmfoundation.Realty Income's diversifiedportfolio ofnet-leasereal estate generates very durable income.The lease structure requires that tenants cover maintenance, real estate taxes, and building insurance. The REIT also focuses on properties leased to tenants in industries relatively immune to economic downturns and the pressures of e-commerce, like grocery stores, warehouses, and home improvement stores.Meanwhile, the company has a conservativedividend-payout ratiofor a REIT (about 75% of its adjustedfunds from operations, or FFO). That enables it to retain over $800 million annually to help fund new investments. It complements that with an elite balance sheet (it has a lowleverage ratioand A-rated credit).Realty Income's strong financial foundation enables it to steadily expand its portfolio by acquiring additional income-generating properties. That helps grow its sources of stable cash flow, allowing itto steadily increase its dividend. The REIT has raised its monthly payment 124 times since going public in 1994 (including for the last 106 straight quarters). It has grown the dividend at a 4.3% compound annual rate.An attractive valueInvestors can buy this high-quality, income-generating machine for a great value these days. Shares of Realty Income have fallen more than 10% over the past year (and are down nearly 30% from their peak in 2022). Higher interest rates are the primary factor weighing on its stock. They've made borrowing money more expensive for REITs like Realty Income. Higher rates
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5 of the "Magnificent Seven" Stocks Pay a Dividend. In Mere Hours, a New Member May Join the Club
| 2024-04-30 |
It covers the following details: Following a volatile start to the decade, the bulls are, once again, running wild on Wall Street. Despite a modest pullback, investors have witnessed the agelessDow Jones Industrial Average, benchmarkS&P 500, and growth-poweredNasdaq Compositejump to record-closing highs within the last five weeks.While there have been pockets of strength in a variety of sectors since this new bull market took shape, theMagnificent Sevenhave done the lion's share of the heavy lifting.Image source: Getty Images.The Magnificent Seven are long-term outperformers with well-defined competitive advantagesThe Magnificent Seven are seven of Wall Street's largest and most-influential businesses. Listed in descending order by market cap, as of the closing bell on April 26, the Magnificent Seven stocks are:Microsoft(NASDAQ: MSFT)Apple(NASDAQ: AAPL)Nvidia(NASDAQ: NVDA)Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG)Amazon(NASDAQ: AMZN)Meta Platforms(NASDAQ: META)Tesla(NASDAQ: TSLA)MSFT ChartAside from all seven of these companies crushing the S&P 500 in the return column over the trailing decade, their lure, from an investment standpoint, is their competitive advantages and/or seemingly impenetrable moats.Microsoft is leveraging the old with the new. Windows is still the world's leading operating system for desktops, while Azure is the global No. 2 cloud-infrastructure service platform.Apple's calling card to success has long been its iPhone, which accounts for more than half of U.S. smartphone market share.Nvidia's graphics processing units (GPUs) are expected to make up in the neighborhood of 90% of the GPUs deployed in high-compute data centers this year.Alphabet's Google comprised more than 91% of global internet-search share in March, while streaming service YouTube is the second most-visited site in the world.Amazon's online marketplace is No. 1 in the U.S., with an estimated 37.6% of domestic
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Billionaires Are Selling Nvidia and Buying This Artificial Intelligence (AI) Stock Instead
| 2024-04-30 |
It covers the following details: Nvidiawas the best-performing stock in theS&P 500last year. Its share pricesurged 239%as artificial intelligence (AI) whipped Wall Street into a frenzy.However, several hedge fund billionaires began diversifying away from Nvidia in the fourth quarter, while purchasing shares ofAmazon(NASDAQ: AMZN).Louis Bacon of Moore Capital Management sold 873,000 shares of Nvidia, reducing his stake by 99%. He simultaneously increased his stake in Amazon by more than 1,000%, such that it now ranks as his third-largest position.Israel Englander of Millennium Management sold 1.7 million shares of Nvidia, reducing his stake by 45%. He simultaneously increased his stake in Amazon by 1%, such that it now ranks as his fourth-largest position (excluding options).Steven Cohen of Point72 Asset Management sold 1.1 million shares of Nvidia, reducing his stake by 66%. He simultaneously increased his stake in Amazon by 11%, such that it now ranks as his largest position (excluding options).The trades made by Englander and Cohen are especially noteworthy because they run two of the most successful hedge funds in history. Specifically, as of December 2023, Millennium Management ranked No. 2 and Point72 Asset Management ranked No. 13 in terms of net gains since inception, according to LCH Investments.However, investors should not interpret their trades to mean Nvidia is a bad investment. None of the fund managers completely closed their positions in the AI chipmaker, but rather reduced their stakes and reallocated capital to other AI stocks, including Amazon.Amazon has a strong presence in three marketsAmazon has three important growth engines:e-commerce, digital advertising, and cloud computing. Specifically, Amazon operates the largest online marketplace in North America and Western Europe as measured by sales, but the company is still gaining market share.Morgan Stanleyanalysts expect Amazon to surpassAlibabaand lead the world in retail e-commerce sales by 2027.Strength in retail has naturally led Amazon to dominate the retail advertising market, so much so that it ranks as the third-largest
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Goldman Sees Momentum Traders Buying Stocks in Every Scenario
| 2024-04-30 |
It covers the following details: (Bloomberg) -- Momentum traders are modeled to buy equities over the next week regardless of market direction, according to Goldman Sachs Group Inc.’s trading desk.Most Read from BloombergHSBC CEO Quinn Unexpectedly Steps Down After Almost 5 YearsTesla Soars on Tentative China Approval for Driving SystemStocks Trade for 390 Minutes a Day. Increasingly, Only 10 MatterBinance and CZ’s Fortunes Are Set to Grow, Jail or no JailCocoa Plunges Most Ever With Trader Exodus Sparking Huge MovesCommodity t
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1 Wall Street Firm Thinks Advanced Micro Devices Stock Is Going to $185 Instead of $200 -- But Is It Still a Buy?
| 2024-04-30 |
It covers the following details: Analysts at Susquehanna are sounding a note of caution ahead ofAdvanced Micro Devices'(NASDAQ: AMD)first-quarter earnings report due on Tuesday after the market close.The firm maintained a positive rating on the shares but lowered its price target from $200 to $185. The analysts expect the company to issue weaker guidance in the upcoming report that could limit the stock's near-term upside. Here's why.A lot is riding on AMD's data center GPUsInvestors are anticipating great news from the company's data center business, where revenue surged 43% in the fourth quarter of 2023 over the previous quarter. AMD has previously guided for its data centergraphics processing units (GPUs), which are in high demand forartificial intelligence (AI), to rake in around $3.5 billion in revenue this year.However, the rest of the business is expected to remain soft. A weak year for PC shipments caused AMD's client segment, including sales of Ryzen desktop processors, to post a 25% decline in revenue last year. The gaming and embedded segments also saw revenues fall, but management doesn't expect the embedded business to recover until the second half of 2024.Is the stock a buy ahead of earnings?AMD will need to offer a strong outlook for 2024 to justify the stock's valuation. AMD shares trade at a forward price-to-earnings ratio of 44, which is more expensive thanNvidia's 35 forward P/E. If the stock hits the analysts' price target, it will likely be due to surging demand for its MI300 data center GPUs and the expectation for a recovery in AMD's client segment later this year.Nonetheless, AMD's share price should eventually climb back to the previous high of $227. The company has a lucrative opportunity to supply chips for AI PCs and data centers for many years. From a long-term perspective, the stock would be a compelling buy on any weakness following tomorrow's earnings report.Should you invest $1,000 in Advanced Micro Devices right now?Before you buy stock in Advanced Micro Devices, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the
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Carlsberg says Q1 growth driven by premium brands despite flat Chinese beer market
| 2024-04-30 |
It covers the following details: By Jacob Gronholt-Pedersen and Emma RumneyCOPENHAGEN (Reuters) -Danish brewer Carlsberg sold more of its premium beer brands and saw price increases in all its main markets during the first quarter, although beer drinkers in China continued to hold back, its CEO said on Tuesday.Carlsberg, the maker of brands such as Kronenbourg 1664, Tuborg and Somersby, reported first-quarter sales slightly above expectations on Tuesday and said sales of premium beer brands grew 8% in the period.While Carlsberg grew its market share in China and increased volumes by 5%, the overall beer market in the country was flat as consumer spending remained subdued, Carlsberg CEO Jacob Aarup-Andersen said."To be very direct, (Chinese consumers) are not buying more beer," he said, adding Carlsberg grew market share but overall industry volumes were flat.The number of people travelling over the huge Lunar New Year celebration was at record highs, but consumer spending per person remained below pre-COVID levels.Trading conditions in China had not worsened, but they had not improved either, he said.Carlsberg's total volumes were up 2.1% in the period, mostly driven by Asian markets."We've had a solid start to the year with volume and revenue growth in all three regions," Aarup-Andersen said, referring to Carlsberg's main markets in Western and Eastern Europe and Asia."We're particularly satisfied with the growth of our premium portfolio and the volume and revenue growth in Asia, both of which are important strategic growth drivers for the group," he said.Sales rose 4.4% to 17.13 billion Danish crowns ($2.46 billion), compared with 17 billion forecast by analysts in a poll gathered by the company.The company on Tuesday launched a new share buyback programme of 1 billion crowns that will run until Aug. 9.The company still expects organic operating profit this year at between 1% and 5%.Shares in Carlsberg traded 1.7% lower at 0725 GMT. They are up 11% this year but remain well below peaks before Russia invaded Ukraine in February 2022. The company took a
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Stock market today: US stocks edge higher ahead of earnings deluge and Fed policy meeting
| 2024-04-30 |
It covers the following details: : Traders work on the floor of the New York Stock Exchange (NYSE) on June 01, 2023 in New York City.Spencer Platt/GettyUS stocks jumped on Monday, extending gains from last week as investors digest Q1 earnings results.The upcoming earnings reports of Amazon and Apple later this week will grab investors' attention.Also on the radar is this week's Federal Reserve meeting and interest rate decision and the April jobs report.US stocks gained on Monday, extending their jump from last week as investors feel optimistic about another wave of first-quarter earnings reports.AmazonandApplewill headline this week's earnings results, and an additional 170S&P 500companies are expected to report their results throughout the week.So far, about half of S&P 500 companies have reported earnings results. Of those companies, 80% are beating profit estimates by a median of 7%, while 59% are beating revenue estimates by a median of 3%, according to data from Fundstrat.Apart from earnings,investors will be paying close attention to the Federal Reserve's FOMC meetingon Wednesday. While the Fed is expected to keep interest rates unchanged, investors will be looking for clues from Fed Chairman Jerome Powell on the outlook of the economy and what the Fed might do in the coming months.Forecasters have greatly reduced expectations for rate cuts this year. On Monday, analysts at Macquarie predicted the next move from the central bank could be a hike, a stark about-face after the bank previously projected 225 basis points worth of rate cuts in 2024.Finally, investors will keep their eye on the April jobs report, which is set to be released on Friday. Economists expect 250,000 jobs to have been added to the economy in April, down from 303,000 jobs added in March.Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:S&P 500:5,116.17, up 0.32%Dow Jones Industrial Average:38,387.06, up 0.39% (+147.40 points)Nasdaq Composite
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Space NK Conquers More Territory in the Hot U.K. Beauty Market
| 2024-04-30 |
It covers the following details: LONDON —Beauty is booming and so isSpace NK, which is set to add seven more stores to its U.K. retail portfolio this year, enrich its service offer and become a leader in fragrance.Sales at the retailer owned byManzanita Capitalhave been increasing by 30 percent annually for three years, and growing two-and-a-half times faster than the U.K. prestige premium market, according to Andy Lightfoot, chief executive officer ofSpace NK.More from WWDBeauty Barrage and Space NK on What It Takes to Succeed in RetailFrasers Group Buys Back Matches' Intellectual Property, but Not the Stock'White Lotus' Luggage Line Carl Friedrik to Launch Quintessentially British Styles With Menswear Brand HackettDemand in the new Covent Garden store has been so high that Space NK has already decided to move to bigger premises after just 18 months.The new store, at 6-7 Neal Street, will open in July and span 3,152 square feet (up from the current 2,000 square feet). It will offer a wider array of brands, a dedicated treatment room and larger spaces for the names it already carries.“It’s a good time for the market and premium beauty in the U.K. is strong,” said Lightfoot in an interview.He believes the retailer’s success derives from its broad and curated offer of products that range in price from 6 pounds to 600 pounds, and the tight relationship between the sales assistants and customers.Space NK on the King’s Road in London.He said Space NK’s offer “is not about age or demographic. It’s about demand. People who love beauty want to find these brands, to touch, play with and experience them” and the stores are ready to cater to those needs.Given the 30 percent annual growth and bullish retail rollout strategy, there have been reports that Manzanita plans to sell Space NK, which it had first tried to do in 2018. It worked with Goldman Sachs before deciding to pull the retailer off the market.Earlier this month Sky News reported that Manzanita has been in talks with potential bankers for a deal valued
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Down More Than 40%: Analysts Say These 2 Beaten-Down Stocks Are Poised for a Rebound
| 2024-04-30 |
It covers the following details: The mantra of ‘buy low, sell high’ might sound like an old cliché, but it persists because it’s true. Locking in a discount price on a quality asset has long been used as a sure ticket to generating profits down the road.The only hard part to it, for stock traders, is recognizing the right stocks to buy at bargain prices. Stock prices can fall for a myriad of reasons, and those reasons don’t always boil down to fundamental soundness – stock prices can fall after a change in management, or a shift in business strategy, as investors wait to see how events shake out.To spot these bargains, investors can turn to Wall Street’s analysts for help. These professional stock watchers build their reputations on the quality of their calls, sorting through reams of data to find and recommend just the right stocks.With this in mind, we’ve used theTipRanks databaseto pinpoint two beaten-down stocks that analysts believe are gearing up for a rebound. In fact, despite having experienced a decline of over 40% over the past year, the two tickers have scored enough praise from the Street to earn a “Strong Buy” consensus rating. Let’s take a closer look.Ameresco, Inc.(AMRC)We’ll start in the renewable energy sector, with Ameresco. This company provides clean energy solutions to improve efficiency, distribution, and the supply of cleaner energy, as well as supply management, infrastructure, and alternative energy sources.Ameresco operates in the US, Canada, and the UK, and boasts more than 1,500 employees across its offices. The company works with partners in a wide range of industries, including healthcare, higher education, housing, industrial and commercial real estate, transport, and related infrastructure, utility companies, and the public sector. Ameresco’s services and solutions help eliminate the financial obstacles that frequently hamper clean and green energy projects.There are strong social and political pressures supporting a generative economic shift toward cleaner and greener energy, and as of December 31, 2023, the company has raised some $4.5 billion in project financing while delivering over $13 billion in energy solutions.Some recent examples, from this April, show the type of projects that Ameresco is involved in. At the beginning of the month,
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Is Costco Stock a Good Buy Today?
| 2024-05-02 |
It covers the following details: Costco(NASDAQ: COST)is one of those rare businesses that does an excellent job satisfying all its stakeholders. Shoppers love its treasure-hunting atmosphere and low prices, employees stick around for far longer than the industry average, and the chain's investors have been rewarded for patiently holding the stock. Costco shares have returned more than 15% per year for nearly 40 years, in fact, enough to create many millionaires since its 1985 initial public offering.Investing is all about the future, though, and there are limits to Costco's growth potential from here. Shares are trading near a record high valuation, and so it's reasonable to wonder whether you'll get good returns from buying the stock right now. Despite those challenges, Costco stock should be a good addition to most investors' portfolios. Here's why.Engagement is highThe foundation of any retailer's strength is the level of engagement it can keep with its core shoppers. With inflation soaring, this past year has tested Costco along with all of its peers on this point, and the warehouse retailing giant has aced that test. Comparable-store sales growth remained steady in 2023 and accelerated to an 8% increase in early 2024.There's an even better metric to judge the chain, though, and that's its renewal rate. As a membership club, it's critical that Costco convince its existing membership base to continue paying its annual fees. A record 92% of subscribers are choosing to renew today, meaning shoppers believe they are getting plenty of value from the service.Margins are steadyCostco isn't the stock for you if you prioritize high profits. In fact, the chain easily generates the lowest gross profit margin among national retailers. Earnings don't tend to spike during high growth periods, either. That's because Costco's management team takes the chain's price leadership selling approach seriously and chooses to redirect most excess cash toward reducing prices even further.COST Net Income (TTM) ChartStill, you'll see much more stability when owning Costco's stock than you'd expect from a retailing business. That's a valuable prospect for investors who've been burned by sharp profit drops by peers such asTarget
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Should You Buy AMD Stock on the Dip?
| 2024-05-02 |
It covers the following details: Fool.com contributor Parkev Tatevosian reviewsAMD's(NASDAQ: AMD)latest quarterly investor update and answers if the stock is a buy at current valuations.*Stock prices used were the afternoon prices of April 30, 2024. The video was published on May 2, 2024.Should you invest $1,000 in Advanced Micro Devices right now?Before you buy stock in Advanced Micro Devices, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $508,797!*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 positions in and recommends Advanced Micro Devices. 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 AMD Stock on the Dip?was originally published by The Motley Fool
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Is Alphabet Stock Headed to $200? 1 Wall Street Analyst Thinks So.
| 2024-05-02 |
It covers the following details: Recent advances inartificial intelligence (AI)have ignited a sea change in the adoption of these next-generation algorithms. Investors are being swept up in the possibilities, but in most cases, AI is used to improve existing processes, thereby increasing productivity. In other cases, AI offers an intriguing opportunity that could result in much greater profits.Analysts at Argus Research boosted their price target forAlphabet(NASDAQ: GOOGL)(NASDAQ: GOOG)stock to $200 while maintaining a buy rating on the shares. This represents potential gains for investors of 22% over the coming year, compared to Wednesday's closing price.Lots of ways to profitThe analyst points to Alphabet's first-quarter financial results as evidence that the company is firing on all cylinders across its vast multisegment empire, and the analysts have a point. Alphabet's revenue growth accelerated to 15% year over year and 16% in constant currency, marking its strongest showing in three years.Google Search, YouTube, and Google Cloud all contributed to the gains, with revenue increasing by 14%, 21%, and 28%, respectively. Furthermore, the analysts cited the company's cost-cutting campaign for boosting Alphabet's operating income by 46%.Taken together, the strong segment results and expanding bottom line show how Alphabet is able to invest heavily in AI, which will increase the company's future profit potential.Despite regulatory uncertainties and antitrust litigation, Google "remains an advertising juggernaut," as evidenced by the aforementioned results. Add to that the solid results by YouTube and Google Cloud, and it's easy to see the numerous ways in which Alphabet can thrive. And that's without even considering theAI connection.It's also worth mentioning that Alphabet just revealed plans to begin paying a dividend -- a first for the search giant. This helped propel that company's market cap above $2 trillion, another first for the stock.Finally, at just 25 times earnings, Alphabet is selling at a discount to the price-to-earnings (P/E) ratio of 27 for theS&P 500while offering significantly more upside potential. For these reasons and more, Al
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3 Dow Stocks That Are No-Brainer Buys in May
| 2024-05-02 |
It covers the following details: For nearly 128 years, the iconicDow Jones Industrial Average(DJINDICES: ^DJI)has served as one of the premier barometers of Wall Street's health. Since its official debut on May 26, 1896, it's evolved from a 12-component index that catered heavily to industrial stocks into a 30-stock index packed with diverse, time-tested, multinational businesses.Although theDow Jonesis very much in a new bull market -- the index closed less than 200 points shy of 40,000 on March 28 -- it's retraced by almost 5% over the last five weeks. For opportunistic long-term investors, it means bargains abound.As we leap into May, three Dow stocks stand out as no-brainer buys.Image source: Getty Images.ChevronThe first seemingly surefire buy in the Dow Jones Industrial Average in May is none other than energy titanChevron(NYSE: CVX). Although shares of Chevron are down 5% over the trailing-12-months, the company is better-positioned to grow over the long run than it was a year ago.Macro factors are undeniably working in Chevron's favor. During the COVID-19 pandemic, global energy majors (including Chevron) were forced to significantly pare back their spending due to historic demand uncertainty. Even with capital expenditures now ramping up, the worldwide supply of crude oil remains constrained. The law of supply and demand notes that if demand for a good or service outweighs its supply, the price of that good or service is going to climb.Though Chevron's drilling operations will benefit immensely from a sustained higher spot price for crude oil, don't overlook thatit's an integrated energy company. Chevron generates more of its revenue, collectively, from its midstream (transmission pipelines) and downstream operations (chemical plants and refineries) than it does from drilling. These other segments provide an ideal hedge for Chevron in the event that the spot price of crude declines.Chevron's pending acquisition ofHessis another growth catalyst that would be a mistake to ignore. Assuming the all-
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Should You Buy Palantir Technologies Stock Before Monday?
| 2024-05-02 |
It covers the following details: Palantir Technologies(NYSE: PLTR), one of the forerunners of modern artificial intelligence (AI), is scheduled to report the results of its fiscal 2024 first quarter (ended March 31) after market close on Monday. Wall Street will be waiting with bated breath to review its performance -- and with good reason.The stock has surged roughly 250% since the beginning of last year, driven higher by Palantir's improving financial results and the profit potential resulting fromgenerative AI. Furthermore, its results could shed some light on the overall state of AI adoption.Palantir has long been a leader in the development of AI, but investors will be watching closely to see if the company can continue to capitalize on recent demand -- and whether the current strong interest will continue. So should investors buy Palantir stock before its Q1 results are released? Let's see what the evidence suggests.Image source: Getty Images.A strategic shift and bountiful resultsFor years, Palantir seemed to concentrate exclusively on its sales growth. However, all that changed when the downturn hit in late 2021. Over the next couple of years, management set its sights on profitability, and those efforts paid off in spades.When Palantir reported the results of its fiscal 2023 fourth quarter (ended Dec. 31), it marked the fifth consecutive quarter of generally accepted accounting principles (GAAP) profitability. Wall Street and investors alike cheered.But that wasn't the only cause for celebration. Palantir's revenue grew 20% year over year and 9% quarter over quarter, fueled by increasing demand for AI tools -- the company's bread and butter. Most notable was Palantir's U.S. commercial segment, which grew 70%, while the customer count in the segment grew 55%.As a result of this AI-induced stampede, the segment's total contract value soared 107%. These metrics clearly illustrate that demand for Palantir's AI expertise is high, and it's reasonable to expect its growth spurt to continue.When demand for generative AI ramped up last year, Palantir was quick to pivot and develop a solution that businesses could use to solve real-world problems. The fruit of those labors was the company's Artificial Intelligence
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Dow to divest flexible packaging business to Arkema
| 2024-05-02 |
It covers the following details: US-headquartered company Dow has reached an agreement with speciality materials provider Arkema to divest its flexible packaging laminating adhesives business for $150m.This move is part of Dow's strategy to concentrate on its core, high-value downstream businesses. The Dow business is within its Packaging & Specialty Plastics segment.The sale is expected to support Dow's Decarbonize & Grow and Transform the Waste strategies to capture more than $3bn in annual earnings growth by 2030, with the proceeds aiding the company's growth and shareholder value.Dow's flexible packaging laminating adhesives business offers a range of high-quality solutions for customers in the food and medical sectors.Arkema will significantly enhance its flexible packaging solutions portfolio through this acquisition, positioning itself as a major player in that market.The transaction includes the transfer of five manufacturing sites located in Italy, the US, and Mexico.These sites are responsible for producing solvent-based laminating adhesives, solventless laminating adhesives, and heat seal coatings.Arkema chair and CEO Thierry Le Hénaff said: “We are very happy to announce this great acquisition which is perfectly in line with Arkema’s strategy to offer its customers innovative products with high technological content and continue to grow in the attractive adhesives segment.“It will allow the group and Bostik to broaden its commercial and geographic presence in packaging and complete its product ranges in this demanding and rapidly evolving market, notably regarding sustainable development challenges. We are very happy to welcome Dow’s teams in this new development stage.”The transaction value is approximately ten times the forecasted 2024 earnings before interest, taxes, depreciation, and amortisation.Subject to regulatory approvals, the deal is anticipated to conclude by the end of 2024.Dow will continue to maintain ownership of its water-based laminating adhesives and acrylic adhesives businesses within its Packaging & Specialty Plastics segment.Additionally, Dow will continue to offer adhesive solutions through its Consumer Solutions and MobilityScience divisions."Dow to divest flexible packaging business to Arkema" was originally created and published byPackaging Gateway, a GlobalData owned brand.The information on this site has been included in
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Massive News for Luminar Stock Investors
| 2024-05-02 |
It covers the following details: Fool.com contributor Parkev Tatevosian discusses what the latest news could mean forLuminar(NASDAQ: LAZR)stock investors.*Stock prices used were the afternoon prices of April 30, 2024. The video was published on May 2, 2024.Should you invest $1,000 in Luminar Technologies right now?Before you buy stock in Luminar Technologies, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Luminar Technologies 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 $508,797!*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.Massive News for Luminar Stock Investorswas originally published by The Motley Fool
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1 Unstoppable Stock That Could Join Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta in the $1 Trillion Club
| 2024-05-02 |
It covers the following details: Artificial intelligence (AI) has become all the rage since early 2023, so it's easy to forget that these sophisticated algorithms have been around in some form or another for decades, helping early adopters become some of the world's most valuable companies.Microsofttops the list at $2.9 trillion, having wrested the crown fromApple, which clocks in at No. 2 at $2.6 trillion.Nvidia, which currently ranks third at $2.1 trillion, arguably helped kick-start the current AI revolution, thanks to its processors that underpin the technology.Alphabet,Amazon, andMeta Platformseach have a long history of using AI to advance their business objectives and are also members of this elite fellowship.With amarket capof roughly $31 billion (as of this writing), it might seem laughable to suggest thatHubSpot(NYSE: HUBS)might be on the fast track to the $1 trillion club. However, the company's quickly growing customer list, ever-expanding market opportunity, and strategic use of AI could give HubSpot a clear path to membership.Image source: Getty Images.An inbound advertising pioneer -- and so much moreUnless you've worked in the advertising field, you might not be familiar with HubSpot, but the company pioneered the concept of inbound marketing --attractingpotential customers with compelling online content, social media, and blog posts -- rather than hounding them with traditional ads.From those humble beginnings, HubSpot has expanded its offerings to include a broad cross-section of interconnected customer relationship management (CRM) tools, which include marketing, sales, service, content management systems, and operations.That strategy has served the company well. By expanding its suite of products and services, HubSpot's revenue has increased at a compound annual growth rate (CAGR) of 38% over the past decade. Even as the economy was emerging from the worst downturn since 2008, HubSpot's growth persisted.In 2023, its revenue of $2.17 billion climbed 25%, while adjusted operating income soared 95%. This was driven by a customer base that grew 23% to 205,091, while its average
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Soft US Jobs Raise Selloff Risk for Stocks, BofA Strategist Hartnett Says
| 2024-05-02 |
It covers the following details: (Bloomberg) -- A weaker jobs report would be a stagflation signal, raising the odds of a selloff in stock markets, according to Bank of America Corp. strategist Michael Hartnett.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dimon's America, the Stock Market Has Already
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Stocks buoyed by tech as focus shifts to US jobs: Markets Wrap
| 2024-05-02 |
It covers the following details: (Bloomberg) -- European stocks tracked a tech-driven rally in Asia as investors awaited a critical US jobs report due later on Friday. The yen surged to a three-week high.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dimon's America, the Stock Market Has Already VotedTh
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The 10 Best Growth Stocks to Buy Now in May
| 2024-05-02 |
It covers the following details: Fool.com contributor Parkev Tatevosian has identified 10 growth stocks that offer long-term investors an excellent value.*Stock prices used were the afternoon prices of April 30, 2024. The video was published on May 2, 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 $508,797!*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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Parkev Tatevosian, CFAhas positions in Alphabet and PayPal. The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short June 2024 $67.50 calls on PayPal. 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
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Best Stock to Buy Right Now: Costco vs. Walmart
| 2024-05-02 |
It covers the following details: Costco(NASDAQ: COST)andWalmart(NYSE: WMT)are two of the retail sector's most resilient stocks. Both companies weathered fierce competition fromAmazon(NASDAQ: AMZN)and expanded as other brick-and-mortar retailers crumbled. Over the past five years, Costco's stock soared 199% as Walmart's stock advanced 78%. TheS&P 500rose only 73% in comparison.But should you buy either of these popularretail stocksright now? Let's take a fresh look at their businesses to find out.Image source: Getty Images.The differences between Costco and WalmartCostco is a warehouse club retailer that mainly sells bulk and discount products to its paid members. It can afford to sell its products at such low margins because it generates most of its profit through its higher-margin membership fees. To keep growing, Costco needs to keep gaining new members, maintain high renewal rates, occasionally raise its fees, and continuously open new warehouses. More than 80% of Costco's warehouses are located in the U.S. and Canada.Walmart is more diversified. It operates its namesake superstores in the U.S., Mexico, China, and other overseas markets; competes against Costco in the warehouse club market with its Sam's Club stores; and operates smaller brick-and-mortar banners and e-commerce websites across 19 countries. However, the company still generated more than 80% of its total revenue from its Walmart and Sam's Club's stores across the U.S. in fiscal 2024, which ended this January.Costco continues to flourish in a challenging marketCostco is still gaining and locking in members. In the second quarter of fiscal 2024, which ended this February, its total number of cardholders grew 7.3% year over year to 132 million. Its worldwide renewal rate stayed flat year over year at 90.5%, but its renewal rate in the U.S. and Canada grew 30 basis points to 92.9%.It's also opening new stores. It ended the second quarter with 875 warehouses, which marked
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Stock market today: World shares advance ahead of key US jobs report
| 2024-05-02 |
It covers the following details: Wall Street capped a choppy week of trading Friday with the best day for the stock market in over two months, as traders welcomed cooler-than-expected U.S. employment data as a sign that inflationary pressures on the economy are easing.The S&P 500 rose 1.3%, its best day since late February. The benchmark index also erased its losses for the week.The Dow Jones Industrial Average rose 1.2%. The Nasdaq composite ended 2% higher, reflecting strong gains by technology sector stocks, which accounted for much of the rally.The nation’s employers added 175,000 jobs last month, down sharply from the blockbuster increase of 315,000 in March, according to the Labor Department. The latest hiring tally came in well below the 233,000 gain that economists had predicted. Meanwhile, average hourly earnings, a key driver of inflation, rose less than expected.The modest increase in hiring last month suggests the Federal Reserve’s aggressive streak of rate hikes may be finally starting to take a bigger toll on the world’s largest economy. That may help reassure the Fed that inflation will ease further, which could move the central bank closer to lowering interest rates.“The demand for labor is slowing, which will eventually ease inflation pressures, giving the Fed some leeway to cut rates later this year,” said Jeffrey Roach, chief economist for LPL Financial. “Slower payroll growth and fewer hours worked imply the economy is slowing at a measured pace. This jobs report is consistent with the soft landing narrative.”Treasury yields in the bond market mostly fell following the jobs report. The yield on the 10-year Treasury, which lenders use as a guide for pricing home loans, eased to 4.5% from 4.59% late Thursday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.81% from 4.88%.The U.S. economy is in a tight spot, where the hope is that it remains strong enough to stay out of a recession but not so strong that it worsens thealready stalled progress on inflation. That is essentially the “soft landing” the Fed is hoping to achieve as it tries to cool the rate of inflation to
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Stock market today: Stocks rally ahead of big April jobs report
| 2024-05-02 |
It covers the following details: Traders work on the floor of the New York Stock Exchange during morning trading on January 11, 2024 in New York City.Angela Weiss/AFP via Getty ImagesStocks closed higher on Thursday ahead of Apple earnings and the April jobs report.Economists predict 240,000 job gains for April, a slowdown from 303,000 in March.Bank of America's Savita Subramanian said the stock market has more room to run even without a rate cut.US indexes closed higher on Thursday ahead of Apple's earnings and a key labor report set to be published Friday morning.Major averages edged up on Thursday, halting the two-day decline as mega-cap tech equities led the way while Treasury yields dipped.Nvidiaspearheaded the rebound with nearly a 3% increase, whileMicrosoftgained roughly nearly 1%. Investors are bracing forAppleearnings after the closing bell, with the stock rising more than 2% heading into the results.Expectations are mixed, with investors eyeing slumping demand in China and a weak iPhone upgrade cycle.On Friday, all eyes will be on the April nonfarm payroll report as a key indicator of the Fed's next move. Economists surveyed by Dow Jones predict 240,000 job gains, marking a deceleration from303,000 jobs added in March.Citi Bank's Veronica Clark recently said in a note that falling quits align with survey data indicating rapidly declining employment prospects, and slower hiring has coincided with an increase in unemployment."We continue to see downside risks for upcoming employment reports, including April payrolls on Friday," she said in a note.Markets have regained momentum since Fed Chairman Jerome Powell calmed investors fretting over the prospects of a rate hike coming this year, saying that a move up in the fed funds rate would be unlikely.Bank of America's US equity head, Savita Subramanian, has said the stock market has more room to run even without looser monetary policy.With high rates likely sticking around for longer, shetold Bloomberg TVon Thursday that "this is actually kind of a reasonable setup for equities.""I think we're going to a soft landing, with a reasonable
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The Private Conversations Giving Stock Traders a Hard Time
| 2024-05-02 |
It covers the following details: (Bloomberg) -- Around 10:20 a.m. one morning last month, shares of Continental AG dropped almost 5%. There had been no statement from the company, no important industry news. But most traders knew. It was that time again.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dim
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Exodus of Foreign Investors From Indonesian Stocks May Continue Amid Weak Rupiah
| 2024-05-02 |
It covers the following details: (Bloomberg) -- Global funds are poised to continue selling Indonesian stocks after the central bank’s surprise interest-rate hike had minimal impact in boosting the nation’s currency. Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dimon's America, the Stock Market Has Al
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AMZN vs. META: Which Magnificent Seven Stock Is Better?
| 2024-05-02 |
It covers the following details: In this piece, Ievaluated two of the Magnificent Seven stocks, Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META), using TipRanks’ Comparison Tool below to see which is better. A closer look suggests a bullish view for Amazon and a neutral view for Meta.Of course, neither company needs an introduction, but Amazon is an e-commerce and cloud-computing giant, while Meta Platforms owns and operates several social networks, including Facebook, Instagram, WhatsApp, and others.Shares of Amazon are up 15% year-to-dateand have soared 69% over the last year, whileMeta Platforms stock is up 22% year-to-dateand 80% over the last 12 months.Although their year-to-date performances are somewhat similar, that’s where the similarities between these two companies end. While both are part of the so-called “Magnificent Seven” stocks, they operate in totally different businesses despite both having a technology bent.However, a closer look at their latest earnings results and the market’s reactions to those reports reveals something very interesting. In short, investors initially rewarded one for spending more on artificial intelligence technology and punished the other for the same thing.It seems clear that both Amazon and Meta Platforms could benefit from improved AI technology, but unfortunately, this sort of manic-depressive behavior is commonplace on Wall Street right now. Let’s see if those totally opposite reactions were warranted.Amazon (NASDAQ:AMZN)At a P/E of 50.9x, Amazon is trading at a discount to its five-year mean price-to-earnings (P/E) ratio of 72.2x. Its forward P/E of about 36.4x is also quite attractive and suggests analysts are projecting significant increases in earnings over the next 12 months. Thus, a bullish view seems appropriate, especially considering the cloud computing results in Amazon’s latest earnings report.For the first quarter,Amazon reported adjusted earnings of 98 cents per shareon $143.3 billion in revenue versus theconsensus estimates of 84 cents per shareon $142.5 billion in revenue. Sales in North America rose 12% year-over
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Global hedge funds chase Hong Kong stocks rally, UBS says
| 2024-05-02 |
It covers the following details: By Summer ZhenHONG KONG (Reuters) - Global hedge funds that use an equities long-short strategy are growing increasingly bullish on China, evidenced by the heavy pick-up in their purchases of Hong Kong-listed shares, UBS Group said in a note.Hong Kong's stock markets, which closely mirror China's struggling performance, have recovered since March as Beijing rolled out economic support measures. The Hang Seng Index rose more than 7% in April, marking its best monthly gain since January 2023 and outperforming most major markets.Swiss bank UBS said in a note Hong Kong market trends had changed in the final days of April, in contrast to that since February when most inflows came from short covering. As Hong Kong stocks rose, fundamental long-short hedge funds continued to accumulate Hong Kong-listed Chinese companies, according to the UBS note tracking hedge fund flow, dated May 1.Most of the buying was focused on the technology and consumer discretionary sectors, UBS said, without disclosing the amount of flows.Index heavyweights Meituan, Tencent and Haidilao jumped 21%, 15% and 13%, respectively, last week.Many funds entered 2024 bearish on China while being overweight stocks in Japan and the United States.However, sentiment towards the world's second-largest economy has improved after measures to stabilise the market, a slight easing in U.S.-China tensions and declines in both U.S. and Japanese markets.Beijing is also showing signs of resolving a property crisis through policy easing and clearing housing inventory.UBS last week upgraded China and Hong Kong stocks to overweight, while Goldman Sachs said China was poised for a "re-rating", citing the latest government guidance aimed at strengthening corporate governance and raising the quality of listed firms.Meanwhile, some large global long-only funds appear to be adding to their China positions through Hong Kong stocks, according to a sales note by BofA Securities issued on Thursday.Given the recent volatility in markets such as Japan and U.S., "investors could be looking for inexpensive diversification for their portfolio in HK or China," the sales note said.Both Japan's Nikkei and U.S
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INTU, NOW, SNPS: Which Strong Buy Tech Stock Has the Most Upside?
| 2024-05-02 |
It covers the following details: With Spring storm clouds hovering over the tech-heavy Nasdaq 100 (NDX), investors with a bit of extra cash may wish to deploy it in some of the most promising tech higher flyers as their recent corrections look to extend. Turning to the Wall Street community, there are a handful of tech stocks that Wall Street analysts still stand by (like INTU, NOW, and SNPS), even as the going gets rougher for their share prices.These stocks may be worth monitoring while their implied upside looks to swell further as things turn a tad more bearish. Thus, let’s check in withTipRanks’ Comparison Tool to determine which Strong Buy tech stockcould be in for the most upside potential for the year ahead.Intuit (NASDAQ:INTU)Tax season has come and gone, but the maker of Turbotax and QuickBooks is still worth considering afterits latest 10% drawdown. The Wall Street community has been quite bullish on the stock, but don’t look for recent share price turbulence to cause them to turn their backs on the name or lower their price targets.Moving into year’s end, the company has a lot going for it as it looks to make its incredibly popular (and Intuit-ive) software that much better with a sprinkle of generative artificial intelligence (AI) magic. On the latest dip, I can’t help but stay bullish on the financial software innovator as it looks to play AI in its own unique way.On the TurboTax side, Intuit stands to gain as federal governments continue introducing various tax code changes. From proposed wealth taxes under the Biden administration to adjusting the capital gains tax, it’s clear the reporting requirements are ever-evolving. With that, it’s becoming more time-intensive to file one’s taxes and stay up to date with the latest reporting needs. And it’s not just the U.S. tax code that’s subject to substantial year-over-year changes, either.As Intuit makes its AI-powered offering, Intuit Assist (which is run on its generative operating system), smarter and ready to go for the latest tax season, it’s becoming even harder to swap TurboTax for an alternative. Of course, Intuit needs to stay on its toes when it comes to AI, as many of its rivals
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Stocks and yen steady ahead of U.S. payrolls
| 2024-05-02 |
It covers the following details: By Chuck MikolajczakNEW YORK (Reuters) -A gauge of global stocks rallied while Treasury yields fell on Friday after a U.S. payrolls report was softer than anticipated, easing concerns the Federal Reserve would keep interest rates higher for longer.Nonfarm payrolls rose by 175,000 last month, the lowest since October 2023, and short of the 243,000 estimate of economists polled by Reuters.The 3.9% annual change in average hourly earnings was the smallest since May 2021 and continued a steady decline toward the mid-3% range, which policymakers feel is consistent with their 2% inflation target.Recent data on inflation and the labor market had fueled concerns the Fed could would be forced to keep rates higher for longer than the market was anticipating, or even raise rates again.But at the end of its policy meeting on Wednesday, Fed Chair Jerome Powell the next move in rates would be down, seeing an unlikely chance of a rate hike."The combination of how Powell characterized the committee's stance on hikes relative to the data they were getting and then today's job reports, which was good but not super worrisome, especially on the wage side, it's setting up for kind of what we thought we had at the end of last year," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina.On Wall Street, U.S. stocks rallied, with each of the three major indexes up more than 1% and the Nasdaq leading the advance with a jump of about 2%.Tech was the top performing of the 11 major S&P sectors, getting an additional boost from a jump of about 5.97% in Apple, after the iPhone maker reported its quarterly earnings and announced a record $110 billion stock buyback plan.Of the 397 companies in the S&P 500 that have reported earnings through Friday morning, 76.8% have topped analyst expectations, according to LSEG data, compared with the 67% beat rate since 1997 and the 79% over the past four quarters.The Dow Jones Industrial Average rose 450.02 points, or
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E-waste is overflowing landfills. At one sprawling Vietnam market, workers recycle some of it
| 2024-05-02 |
It covers the following details: HO CHI MINH CITY, Vietnam (AP) — Dam Chan Nguyen saves dead and dying computers.When he first started working two decades ago in Nhat Tao market, Ho Chi Minh City’s biggest informal recycling market, he usually salvaged computers with bulky monitors and heavy processors. Now he works mostly with laptops and the occasional MacBook.But the central tenet of his work hasn't changed: Nothing goes to waste. What can be fixed is fixed. What can be salvaged gets re-used elsewhere. What's left is sold as scrap.“We utilize everything possible,” he said.The shop he works at is one of many in a market that spreads across several streets filled with haggling customers. Most repair shops are a single room crammed with junked electronic devices or e-waste with tables placed outside. Workers, many of them migrants from across Vietnam, repair or salvage items like laptops, scarred mobile phones, camera lenses, television remotes, even entire air conditioning units. Other shops sell brand-new electronics alongside old, refurbished items.The bustle is emblematic of a world that isproducing more e-waste than ever— 62 million metric tons in 2022, projected to grow to 82 million metric tons by 2030, according to a report by the United Nation’s International Telecommunications Union and research arm UNITAR. Asian countries generate almost half of it.“We are currently generating e-waste at an unprecedented rate,” said Garam Bel, e-waste officer at the U.N.’s International Telecommunication Union.Managing that waste is crucial. It's filling up landfills at an alarming pace and dangerous chemicals like lead leak into the environment and harm human health. It also means missing out on recoverable resources — $62 billion worth in 2022, according to the U.N. report.And that waste is rising five times faster than formal recycling.Less than a quarter of electronic waste was properly collected and recycled in 2022. Some of the rest winds up in the hands of informal waste workers, like Nguyen, in different parts of the world. That’s especially the case in Southeast Asian nations where, the UN report found, none of the electronic waste
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The specter of stagflation is back in the news. BofA says investors should buy these 2 areas of the market to capitalize.
| 2024-05-02 |
It covers the following details: Are we in a bear or bull market? Here's how they compareundefined undefined/ Getty ImagesHeadlines talking about "stagflation" have rocketed to the most in two years, Bank of America said.Even though there isn't yet a stagflationary regime, the market narrative could shift quickly.Utilities and energy typically benefit the most in stagflationary conditions, the bank said.Headline references to "stagflation" catapulted to a two-year high last week, Bank of America reported, which could start weighing on Wall Street sentiment.The feared scenario occurs when growth buckles against still-rising inflation, as has come true in recentfirst-quarter prints.Though analysts told Business Insiderit's too early to officially announcea stagflationary regime, for its part, Bank of America still cautioned that alarming headlines can easily shift the market narrative.For those looking to make the most of the situation and protect their portfolios, the bank said utilities and energy are the best areas to hone in on:"These sectors have outperformed the most during historical stagflation regimes and were also the best performing sectors in 2022 amid stagflation concerns," it said in a note on Wednesday. "Real Estate was the worst performing sector amid higher rates, followed by Tech."That may be because stagflation cycles restrict the Federal Reserve's ability to cut rates, as doing so risks stoking further high inflation. In this case, the central bank often has no option but to tighten monetary policy.The performance of these sectors also adds to stagflationary worries, with real estate and tech dropping 8.6% and 5.5%, respectively. Compared to that, utilities climbed 1.6%, while energy shed only 0.9%, Bank of America reported.Still, the bank isn't necessarily forecasting stagflation, and saw no signs of it in last month's thorny GDP and personal consumption expenditures data: although growth appeared to slow down substantially against rising inflation, consumer spending still remained strong, it said."This created a narrative of 'stagflation' or a negative supply shock. We think that view is misguided, as it is based on an apples-to-oranges comparison," the bank wrote last week.Read the original article onBusiness Insider
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Cathie Wood buys $40 million of wounded tech stock
| 2024-05-02 |
It covers the following details: Video streaming platform Roku(ROKU)has carved itself a leading role in the industry over its 22-year history.Roku is the No. 1 streaming operating system in the sector, with over 80 million active accounts in the first quarter, up 14% from a year earlier.The company “provides the most-used streaming operating system in the U.S. through the streaming devices and televisions that it manufactures or licenses its name and software to,” wrote Morningstar analyst Matthew Dolgin.Related: Analysts weigh in on Warren Buffett's Berkshire Hathaway ahead of its meetingRoku reportedfirst-quarter earningson April 25. Net revenue totaled $882 million, up 19% from a year ago. It posted a net loss, which narrowed to $50.9 million, or 35 cents a share, in the first quarter from $193.6 million, or $1.38 a share a year earlier.The ongoing losses and cutthroat competition have caused Roku shares to tumble since November, leading analysts to rethink their Roku stock price targets, and Cathie Wood to take action.Streaming stalwart Roku has attracted the attention of analysts and investors.SOPA Images/Getty ImagesAnalysts reboot their Roku stock outlooksAnalysts are concerned about Roku's future.“Roku had a very good first quarter, with impressive user engagement driving strong revenue growth and EBITDA (earnings before interest, taxes, depreciation and amortization) that is tracking better than our full-year forecast,” Dolgin said.“Management tempered expectations a bit for the second half of 2024 but believes it is setting itself up for acceleration in 2025.”He’s skeptical. “We’re concerned that Roku’s customer acquisition costs must remain elevated for the account base to continue growing at a healthy clip.”So, he slashed his fair value estimate to $50 per share from $75 while maintaining his no-moat rating. No moat means he doesn’t see Roku as having durable competitive advantages. The stock traded at $59 on May 2.Related: Roku reveals its second major security breach of the yearMost other analysts offered downbeat
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Analysts revise CVS stock targets after Aetna Medicare Advantage earnings plunge
| 2024-05-02 |
It covers the following details: These are trying times for the healthcare industry, but Karen Lynch says her company has gone through tough times before."We have a track record of successfully navigating complex industry pressure, and we’ll continue to demonstrate our resilience," the president and CEO of CVS Health told analysts during the company'searnings call. "We will provide updates throughout the year on these efforts."Related: CVS stock crashes after Aetna Medicare Advantage hitCVS Health, which missed Wall Street's first-quarter earnings expectations on May 1, slashed its full-year profit forecasts amid soaring medical costs and the expected impact of changes to Medicare Advantage reimbursements.Private plans have been part of the Medicare program since its inception in 1966. Medicare Advantage enrollment began to surge in 2010 when payment provisions in the Affordable Care Act created incentives for improved care quality.CVS and its rivals in the health insurance sector, including UnitedHealth Group(UNH)and Humana(HUM), are seeing huge increases in medical payouts as more Americans, typically those of retirement age, find the time and space for elective surgeries in hospitals that were previously overwhelmed by Covid patients.As of 2023, about 50% of Medicare beneficiaries were members of Medicare Advantage plans, and nearly all beneficiaries had access to at least one plan.Analysts react to CVS Health's latest earnings report.Analyst: 'CVS has been punished enough'"When we last gave 2024 guidance, our outlook assumed normalized Medicare Advantage trends on top of the elevated baseline we experienced in the fourth quarter of 2023," Lynch told analysts. It is now clear that the first quarter of 2024 Medicare Advantage trends are notably above this level."Lynch said that, like others in the industry, the company's visibility in the quarter was impaired by the February cyberattack on Change Healthcare, a division of UnitedHealth Group, which shut down the largest healthcare payment system in the U.S.Related: Analysts revisit Humana stock price targets amid Medicare Advantage hitThe company posted first-quarter earnings of $1.31 per share, down from $2.20 per share a year
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Why one economist says Elon Musk has turned Tesla into a meme stock
| 2024-05-02 |
It covers the following details: Elon Musk took a surprise trip to China over the weekend.Kevin Winter/Getty ImagesTesla's stock is a "tech-bubble casino play," J. Bradford DeLong wrote for Project Syndicate.The economist thinks the firm no longer keeps up with what CEO Elon Musk promises.Musk really wants Tesla to be a tech company, but it's an automaker, DeLong said.Tesla'smarket success relies on CEO Elon Musk's ability to keep promising, irrelevant of what the company actually delivers, UC Berkeley economist J. Bradford DeLong thinks."From the standpoint of its suppliers, employees, and customers, it is a source of income and production," he said. "And from the standpoint of Wall Street speculators, it is a bouncing ball in a roulette wheel: a tech-bubble casino play."In an op-ed forProject Syndicate, DeLong noted that Musk used to cheerlead technologies Tesla could deliver on, such as battery developments or electric vehicle breakthroughs.But since Musk unlocked the entire worth of his pay package agreed with Tesla in 2018 — which vested when the firm reached a certain market capitalization threshold — he has instead started touting ideas that the company has yet to make good on, DeLong said. That includes full self-driving, humanoid robots, and an artificial intelligence supercomputer."For all the current Tesla shareholders planning to offload their holdings in the next couple of years, everything hinges on the company succeeding as a meme stock, and Musk is diligently working toward that goal," DeLong argued. "Since there are virtually no long-term Tesla shareholders, the market does not particularly care that the company lacks a CEO who is trying to build it into an enduring profit-making organization."For instance, he noted Musk's recent earnings commentary, in which he said that it's a fundamentally wrong framework to consider Tesla an auto company; instead, the CEO called on investors to consider it an AI or robotics firm.But to DeLong, that doesn't follow what first-quarter results actually show, as "automotive revenues" made up more than 80% of the company's sales."While car manufacturing does have
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Why Freshworks Stock Crashed Today
| 2024-05-02 |
It covers the following details: Freshworks(NASDAQ: FRSH)stock plummeted in Thursday's trading. The company's share price closed out the daily session down 19.6%, according to data fromS&P Global Market Intelligence.Freshworks released its first-quarter results after the market closed on Wednesday and actually reported sales and earnings for the period that beat Wall Street's expectations. Despite the Q1 performance beats, uninspiring forward guidance and downgrades from analysts prompted investors to sell out of the stock today.Freshworks Q1 beats can't stave off big sell-offsFreshworks postednon-GAAP(adjusted) earnings per share (EPS) of $0.10 on revenue of $165.1 million in the first quarter. Meanwhile, the average analyst estimate had called for the business to post adjusted earnings of $0.08 on revenue of $163.5 million. Sales were up 20% year over year in the quarter, but some investors felt that the software company's customer-service offerings could soon face new pressures.Following the Q1 report, Oppenheimer analyst Brian Schwartz lowered his rating on the stock from outperform to perform. The analyst also removed his one-year price target of $26 per share for the stock and opted not to introduce a new price target.Schwartz noted thatartificial intelligence(AI) could be a potential disruptor for Freshworks' business. Along with weaker-than-expected forward-sales guidance, the warning about AI-driven headwinds drove big sell-offs for the stock today.Mixed forward guidance worries investorsFreshworks is guiding for Q2 earnings to come in between $0.05 per share and $0.06 per share, and it believes that sales for the period will be between $168 million and $170 million. For comparison, the average analyst estimate had called for the business to post per-share earnings of $0.05 per share on sales of $172.1 million.Looking ahead to the full-year period, Freshworks expects to record per-share earnings between $0.32 and $0.35 on sales between $695 million and $705 million. Meanwhile, the average analyst estimate had called for the business to post earnings of $
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1 Wall Street Analyst Thinks Eli Lilly Stock Is Going to $892. Is It a Buy?
| 2024-05-02 |
It covers the following details: By almost any measure,Eli Lilly(NYSE: LLY)stock has been a standout so far in 2024. Using a basic yardstick, the pharmaceutical sector giant's share price has climbed by over 33%, against theS&P 500index's 5%. A mix of well-established commercialized drugs, a robust pipeline, and the company's recent dive into the hottest segment of the pharmaceutical market have made its stock one of the most attractive in the sector.What also helped was the company's just-released first-quarter results, which boasted an earnings beat and fresh guidance that came in ahead of analyst estimates. Shortly after the figures were published, several analysts raised their price targets on the stock. Let's take a look at one of those hikes.15% upside potentialJust after Eli Lilly posted those numbers, Robyn Karnauskas of Truist Securities revised her fair value estimation of its shares. She now believes they're worth $892 apiece, up from her previous $850. The new target implies 15% upside from the stock's latest closing price as I write this. Karnauskas maintained her buy recommendation on the stock.In a new research note, Karnauskas waxed bullish on thosequarterly figures. She wrote "Solid first quarter 2024 revenues driven by Mounjaro/Zepbound strong performance and underlying demand seems healthy, and we see progress made to address manufacturing constraints, which remain top of mind given demand is expected to exceed supply throughout 2024."Mounjaro and Zepbound are essentially the same drug, with the former being Food and Drug Administration (FDA)-approved for diabetes, and the latter for weight loss. Zepbound particularly has high potential, as such drugs are relatively new on the scene and precious few have earned regulatory nods.Paying a premium for qualityEli Lilly was a powerhouse in thepharmaceutical industrywell before Zepbound became a hot item. The veteran company has proven to be very adept at both developing and commercializing drugs that address large patient populations.The stock is relatively expensive on its current valuations, but it's got some of the juiciest potential in big pharma
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Starbucks Stock Is $20 Undervalued, According to 1 Wall Street Analyst
| 2024-05-02 |
It covers the following details: Starbucks(NASDAQ: SBUX)stock is inkind of a funk. The world's most famous coffee chain reported a 2% decline in quarterly revenue on Tuesday, and a 14% slide in profits. Starbucks stock promptly plummeted from more than $88 to less than $75 a share.But there's good news, too. Thanks to Starbucks stock getting so much cheaper last week, investment bank Barclays says there's now much more profit potential in the stock. In fact, he thinks Starbucks shares will rise as high as $95 over the next 12 months -- up $20 from today.Is it time to buy Starbucks stock?Make no mistake: Starbucks' numbers were bad. Barclays called them even worse than "the worst case scenario" in a note on TheFly.com Wednesday. Beyond the Q2 earnings miss, Starbucks told investors that instead of growing earnings 15% to 20% this year (as it previously promised), it now thinks earnings will rise only in the "low single digits," or might even be "flat" against 2023.So what does this mean to investors?In 2023, Starbucks earned $3.58 per share. "Low single digits" growth implies that 2024 earningsmightbe as high as $3.72 per share. So at $75 today,the coffee stockis trading for at best 20 times current-year earnings.For a "low single digits" grower, 20x earnings sounds kind of expensive. Also worrisome is the fact that Starbucks says it's opening 4% more stores in the U.S. this year, and 12% in China.All those new stores, yet Starbucks' profits will grow only grow "low single digits"? That sounds inefficient and bad.Sure, over time, Starbucks could grow faster. CEO Laxman Narasimhan says he has a "Triple Shot Reinvention with Two Pumps" strategy to turn around the business. And laugh at the name all you like, but he promises shareholders will see results sometime in Q4 of this year. And that's the other good news. If Narasimhan can deliver
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Is Palo Alto Networks Stock Going to $360? 1 Wall Street Analyst Thinks So.
| 2024-05-02 |
It covers the following details: The share price ofPalo Alto Networks(NASDAQ: PANW)reached $380 earlier this year but currently sits at $293 as of this writing. The company continues to see strong demand for its cybersecurity solutions, and one analyst believes it's worth buying on the dip.Morgan Stanleyanalyst Hamza Fodderwala is maintaining an overweight (buy) rating on the shares with a $360price target-- 23% upside from the current share price.Why the stock is downPalo Alto's revenue grew 19% year over year in the January-ending quarter, with remaining performance obligations up 22%. But the solid top-line growth was overshadowed by management's guidance that calls for revenue to grow between 13% and 15% in fiscal Q3.Importantly, this guidance doesn't reflect weak demand. Palo Alto's top 10 highest-spending customers grew their spend by 36% last quarter, and Morgan Stanley's research indicates that Palo Alto is competitively positioned to continue winning large deals.And Palo Alto still has an enormous opportunity win more spending with existing customers. Management is doubling down on accelerating customers' shift from legacy security providers its three platforms, which include cloud security, security automation and operations, and network security. When customers adopt all three platforms, their lifetime value increases significantly.Shares have dropped and trade at aprice-to-salesvaluation that is in line with leading cybersecurity providers, Looking at the valuation from another angle, the stock is trading at a multiple of 35 times trailing free cash flow.When factoring in another year's worth of revenue and free cash flow growth, the stock could be on pace to hit the analyst's price target within the next year. The recent pullback in the shares should have reset near-term growth expectations, so market participants can return their focus to the company's long-term opportunities in the booming cybersecurity market.Should you invest $1,000 in Palo Alto Networks right now?Before you buy stock in Palo Alto Networks, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Palo Alto Networks
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Cloudflare Stock Tanks Following Q1 Results, Subpar Guidance - Here's Why
| 2024-05-02 |
It covers the following details: Cloudflare Stock Tanks Following Q1 Results, Subpar Guidance - Here's WhyCloudflare, Inc.(NYSE:NET)reported its first-quarter financial results after the bell on Thursday. Here arethe details.Cloudflare reported quarterly earnings of 16 cents per share, which beat the analyst consensus estimate of 13 cents by 23.08%. The company closed quarterly sales of $378.6 million, which beat the analyst consensus estimate of $373.09 million. It represents a 30.47% growth from the prior year's period.Free cash flow was $35.6 million, or 9% of revenue, compared to $13.9 million, or 5% of revenue, in the first quarter of 2023. Cash and equivalents totaled $1.716 billion as of March 31, 2024."The first quarter marked a strong start to the year, as we grew revenue 30% year-over-year to $378.6 million—fueled by a record number of net-new customers year-over-year spending more than $100,000, $500,000, and $1 million with Cloudflare on an annualized basis. I'm incredibly proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products—including in the AI space—while also remaining disciplined with our gross and operating margins and our free cash flow," saidMatthew Prince, CEO of Cloudflare.View more earnings on NETOutlook:Cloudflare sees second-quarter revenue between $393.5 million and $394.5 million, versus the $393.4 million estimate, and adjusted earnings of approximately 14 cents per share versus the 13 cents estimate.The company expects full-year 2024 revenue between $1.648 billion and $1.652 billion, versus the $1.653 billion estimate, and adjusted earnings between 60 cents and 61 cents per share, versus the 60 cent estimate.Related News:Rivian Automotive Receives $827M Incentive
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Analysts reveal Eli Lilly stock price targets after earnings
| 2024-05-02 |
It covers the following details: The people at Eli Lilly(LLY)say they're working as fast as they can.The drugmaker, which reported first-quarter earnings on Tuesday, responded to concerns about supplies of two of its key products, Mounjaro and Zepbound.Mounjaro and Zepbound are the same drug, tirzepatide, but they are marketed under two different names. Zepbound is approved to treat obesity, while Mounjaro is approved to treat diabetes.Currently, several weight-loss drugs are in limited supply, according to the U.S. Food and Drug Administration.Eli Lilly's chief financial officer, Anat Ashkenazitold analystsduring the company's earnings call that "the demand for tirzepatide is very strong.Related: Ozempic, weight-loss drugs force a change of focus on health"Each week, hundreds of thousands of people fill scripts from Mounjaro and Zepbound," she said. "While we are working tirelessly to ramp supply and expect meaningful increases in shipment volumes in the second half of the year, demand continues to outstrip even increased supply."Worldwide, obesity among adults has more than doubled since 1990, and has quadrupled among children and adolescents, according to the World Health Organization.The U.S. Centers for Disease Control and Prevention has described obesity as "a common, serious, and costly disease."Lilly's chairman and chief executive, David Ricks, told analysts that the company's strong revenue growth was driven by recent product launches, primarily Mounjaro and Zepbound.Analysts respond to Eli Lilly's first-quarter resultsEli LillyLilly raises full-year earnings guidanceEli Lilly reported first-quarter earnings of $2.58 a share, up 59% from $1.62 a share a year earlier, beating the FactSet consensus analyst estimate of $2.46.Revenue totaled $8.77 billion, up 26% from $6.96 billion a year earlier but short of FactSet’s call for $8.93 billion.Related: CVS stock crashes after Aetna Medicare Advantage hitThe company also boosted its full-year guidance
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Apple Rallies on Upbeat Forecast, Record-Setting Stock Buyback
| 2024-05-02 |
It covers the following details: (Bloomberg) -- Apple Inc. shares jumped the most in almost a year-and-a-half after the company posted stronger-than-expected sales last quarter and predicted a return to growth in the current period, sparking optimism that a slowdown is easing.Most Read from BloombergTrump Judge Indefinitely Postpones Documents Case TrialAmericans Are Racking Up ‘Phantom Debt’ That Wall Street Can’t TrackOne Out of Every 24 New York City Residents Is Now a MillionaireTrump’s Private Life Exposed in Intimate Stormy Daniels TestimonyThough revenue fell 4.3% to $90.8 billion in the March quarter, that was better than the $90.3 billion predicted by analysts. Profit also topped Wall Street projections in the period, and Apple announced the biggest stock buyback in US history.The shares rallied as much as 8.1% to $187 Friday morning in New York. It was the biggest intraday gain since November 2022. Apple had been down 10% this year before results were released on Thursday.Read More: Apple’s $110 Billion Stock Buyback Plan is Largest in US HistoryThe results came as a relief to investors, who have been waiting for the iPhone maker to pull out of a long slump. Apple has posted sales declines in five of the past six quarters, hurt by a sluggish smartphone market and headwinds in China. The company had warned analysts in February that revenue in the latest period would be down about 5% from a year earlier.In the current period, Apple expects sales to climb by a percentage in the low single digits. The company predicted that both its iPad and services business would grow by a rate in the double digits, but declined to give a forecast for the iPhone — its flagship product.Earnings amounted to $1.53 a share in the fiscal second quarter, which ended March 30. That exceeded the $1.50 analysts had estimated. Apple increased its dividend 4% to 25 cents a share, in line with expectations. And the board approved plans to buy back an additional $110 billion of the company’s stock.A lack of innovative new devices has contributed to slow sales at Apple, but
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The stock market's sell-off is over and the Fed gave 5 bullish signs to investors at its latest meeting, Fundstrat's Tom Lee says
| 2024-05-02 |
It covers the following details: Specialist Peter Mazza, left, and trader John Panin work on the floor of the New York Stock Exchange, Thursday, Dec. 6, 2018. U.S. stocks tumbled in early trading Thursday following a sell-off in overseas markets.AP/Richard DrewThe sell-off that battered stocks in April probably won't stretch into May, according to Fundstrat's Tom Lee.The uber-bullish forecaster pointed to five dovish signs the Fed gave after its policy meeting on WednesdayThat suggests equities will end the month of May with a gain, Lee predicted.The stock market's sell-off could be over, and five bullish signals the Fed gave at its latest policy meeting are setting the stage for gains in May, according to Fundstrat's head of research Tom Lee.In a video sent to Fundstrat clients on Wednesday, Lee pointed to the May Federal Open Markets Committee meeting, whichsparked a brief rally in stocks. Central bankers opted to keep interest rates level and suggested a rate hike was unlikely, fueling bullish sentiment among traders."That gets us to a situation where I'm still confidence that April is going to be the end of that selloff," Lee said. "I think May's going to end up being an up month.He pointed to five dovish signals the central bank gave markets, which suggests that the path ahead for stocks looks a lot brighter:1. The Fed is slowing its pace of quantitative tighteningCentral bankers said they would slow their pace ofbalance sheet reductions, which is a positive for stocks. The Fed hasshed over a trillionfrom its balance sheet in order to tighten financial conditions and help control inflation.Balance sheet reductions will slow from $60 billion to $25 billion a month starting in June, the central bank said in a statement.2. Inflation is pointing lowerInflation came in hotter-than-expected all throughout the first quarter, and prices in the economy still remain above the Fed's 2% target. But inflation is on the decline overall, Lee said:Consumer prices grew 3.5% year-per-year in March, down from a peak of 9.1% growth posted in mid-2022.In prepared remarks, Powell added that he was confident inflation would continue to fall toward
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A red-hot job market that’s defied Fed rate hikes is cooling (finally)
| 2024-05-02 |
It covers the following details: The U.S. economy likely added nearly a quarter of a million new jobs last month, extending the longest streak of sub-4% unemployment since the 1960s, as the labor market continues to defy repeated warnings of a slowdown and Federal Reserve interest rate hikes.Economists expect the Labor Department to report headline job creation of around 243,000 for the month of April, down from the 303,000 tally recorded in March and just shy of the first quarter average of 276,000.The headline unemployment rate, meanwhile, is expected to hold at 3.8%, extending a run of 27 consecutive months under the 4% threshold and matching the longest such streak on record, which was tallied during a three-year period between 1967 and 1970.Fed Chairman Jerome Powell touted the job market's strength earlier this week as he justified holding the central bank's benchmark lending rate steady at a 23-year high of 5.25% to 5.5%, even as he noted some cooling in labor demand."We’re trying to use our tools in a way that keeps the labor market strong and the economy strong but also helps bring inflation back down to 2% sustainably," Powell told reporters in Washington on May 1. "We will bring inflation down to 2% sustainably. We hope we can do it without significant dislocations in the labor market."The surprising resilience in the labor market has been one of the biggest successes of Fed Chair Jerome Powell's 'higher for longer' interest rate policy.OLIVIER DOULIERY/Getty ImagesHowever, he also noted that while the "demand side of the labor market" remains strong, it's cooling from its extremely high level a couple of years ago."You see that in job openings. You see more evidence of that today in the Jolts Report as you know," Powell said.The Labor Department's Job Openings and Labor Turnover survey, better known as the Jolts report, showed 8.48 million positions went unfilled in March, a modest decline from the 8.81 million tally recorded in February and the lowest in three years.Creases, but not yet cracks
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Why Bausch Health Companies Stock Dived by More Than 7% Today
| 2024-05-02 |
It covers the following details: Eyecare specialistBausch Health Companies(NYSE: BHC)wasn't a clear winner on the stock exchange Thursday, to put it charitably. After unveiling its latest earnings report it was met with a sell-off, as investors drove its share price down by over 7%. That was out of sync with the generally positive sentiment on equities that day, as theS&P 500index posted a gain of 0.9%.Investors not pleased with revenue growth and narrowed lossAlthough Bausch management put a positive spin on the company's first quarter, the earnings release featured a few numbers that just didn't look very pretty.It earned revenue of $2.15 billion, and although this was up by 11% year over year, it matched the average estimate of analysts following the stock. The company managed to narrow its net loss based on generally accepted accounting principles (GAAP) to $64 million ($0.17 per share) from the first-quarter 2023 shortfall of $201 million, which was undoubtedly an accomplishment. Yet it wasn't anywhere near the $0.69 per-share profit those pundits were collectively modeling.Another positive the market did not appreciate was that all of Bausch's operating segments posted gains in revenue. This was led by its foundational Bausch + Lomb unit; it saw an 11% increase, matching that of total revenue.2024 guidance reaffirmedBausch also reaffirmed its guidance for full-year 2024. It stated again that it's expecting revenue of $9.30 billion to $9.55 billion for the year, with non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) of $3.20 billion to $3.35 billion. It did not provide a bottom-line forecast.On average, analysts tracking Bausch stock are anticipating $9.39 billion for annual revenue.Should you invest $1,000 in Bausch Health Companies right now?Before you buy stock in Bausch Health Companies, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to
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Why Moderna Stock Blasted 13% Higher Today
| 2024-05-02 |
It covers the following details: Moderna(NASDAQ: MRNA)was a fine stock to heal an ailing portfolio on the second-to-last trading day of the week. The company, which developed and sells the Spikevax COVID-19 vaccine, saw its share price balloon by almost 13% thanks to an encouraging set of quarterly results. With that rise, it easily topped the 0.9% bump of theS&P 500index on the day.Huge revenue drop and major net loss, as expectedModerna's opening quarter of 2024 saw the company reap $167 million in revenue, less than a tenth of the nearly $1.9 billion it made in the same period of 2023. The key reason why was simple and entirely expected: We're well past the peak of the Covid pandemic, after all, and there has been a sharp drop-off in demand for vaccines like Spikevax.Consequently, the company posted a rather deep headline net loss of almost $1.2 billion, or $3.07 per share, against the year-ago profit of $79 million ($0.19).Normally, investors wouldn't reward such declines and steep shortfalls. But the market was braced for a notably worse showing. On average, analysts following Moderna stock were estimating that thebiotechwould earn only $94 million in revenue and book a steeper net loss of $3.55 per share.The Spikevax story is over, but...Barring a renewed Covid surge -- fingers crossed! -- there isn't much future in Spikevax. Yet as ever, Moderna continues to develop vaccines and drugs based on innovative use of mRNA. Its respiratory syncytial virus (RSV) vaccine is currently being put through its paces in a phase 2/3 clinical trial and has already been submitted for approval for somewhat limited indications. It also reported success in late-stage testing of its seasonal flu vaccine.Should you invest $1,000 in Moderna right now?Before you buy stock in Moderna, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Moderna wasn’t one of them.
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Why Blink Charging Stock Crushed the Market Today
| 2024-05-02 |
It covers the following details: A new deal that's sure to ramp upBlink Charging's(NASDAQ: BLNK)presence alongside roads in the Northeast got investors excited about the stock Thursday. They greeted news of the arrangement by trading Blink's shares up by more than 11% in price that day, a far more robust improvement than the sub-1% gain recorded by theS&P 500index.A deal with the Empire StateShortly before market open that day, Blink announced that it has secured a contract to be an officialelectric vehicle (EV)charging provider for New York state. In addition to its network of charging stations, Blink is also to provide associated services such as maintenance, repair, and parts and supplies.The company did not provide any financial details of the arrangement, nor did it specify how long it would be in force.It quoted chief revenue officer Jim Nemec as saying that this contract would see it "continue to lay the groundwork for an electric revolution.""It's rewarding to have a direct role in reducing emissions while enhancing the EV driver experience in New York. We are grateful for the state's trust and our shared vision," he added.Big state, big moneyNew York state is certainly a prize; it's the fourth-largest state by population and No. 3 in terms of gross domestic product. Although it's a bit tough to determine with any accuracy what impact this could have on the company without knowing the deal's particulars, it's surely a win regardless. Blink will become that much more prominent and familiar to the public and reap the benefits of being a top charging provider in the state.Should you invest $1,000 in Blink Charging right now?Before you buy stock in Blink Charging, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Blink Charging 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 $508,797!*Stock Advisorprovides investors with an easy-to
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Wall Street Seizes Opportunity to Gut SEC Trading Surveillance
| 2024-05-02 |
It covers the following details: (Bloomberg) -- After 14 years of debate, the Securities and Exchange Commission is in the final stages of bringing a powerful new surveillance tool fully online. But Wall Street is seizing on the ideal political environment for a last-ditch attempt to kill it.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobi
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Starbucks CEO's Dilemma Unfolds With Stock Performance, Falling Sales
| 2024-05-02 |
It covers the following details: Starbucks CEO's Dilemma Unfolds With Stock Performance, Falling SalesJust over a year into the job, the chief executive officer ofStarbucks Corp.(NASDAQ:SBUX), Laxman Narasimhan, faces a tough situation as shares plummeted following a disappointing quarterly performance.The company saw a significant drop in shares, declining by as much as 18% after issuing guidance cuts and experiencing itsfirst sales decline since late 2020.Second-quarter Comparable store sales declined 4% globally, driven by a 6% decline in comparable transactions.Efforts to revive Starbucks’ fortunes include ramping up service efficiency, offering more discounts, introducing new products like a boba-inspired beverage, and expanding food offerings beyond peak hours, reportedBloomberg.The company acknowledged the need for improvement in app service and product availability after experiencing user frustration and supply chain challenges.Also Read:Starbucks Presents A ‘Bitter Bean To Swallow’: Analysts Cut Forecasts After FQ2 ResultsHowever, Starbucks anticipates a prolonged recovery process, as reflected in its lowered full-year revenue growth forecast and the possibility of flat adjusted earnings per share.Analysts expressed skepticism about the company’s ability to bounce back swiftly, with concerns raised about its pricing strategy and menu complexity.Industry experts are questioning Narasimhan’s approach to rejuvenating Starbucks amidst persistent challenges, including inflationary pressures and evolving consumer preferences.With doubts looming over the company’s growth prospects, investors are keen to see a concrete plan to reignite demand and restore confidence in Starbucks’ future.Narasimhan, once heralded for his turnaround expertise, now faces the huge task of steering Starbucks through turbulent waters.Starbucks stock has lost over 34% in the last 12 months. Investors can gain exposure to the stock viaConsumer Discretionary Select Sector SPDR Fund(NYSE:XLY) andVanguard Total Stock Market Index Fund ETF(NYSE:VTI).Price Action: SBUX shares closed higher by 0.6
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Apple’s $110 Billion Stock Buyback Plan is Largest in US History
| 2024-05-02 |
It covers the following details: (Bloomberg) -- In a move fitting for one of the largest companies in the world, Apple Inc. just announced the biggest US buyback ever, saying its board approved an additional $110 billion in share repurchases. Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaUS and Saudis Near Defe
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Apple sales fall less than expected, beating Wall Street estimates
| 2024-05-02 |
It covers the following details: Apple shares saw a boost in aftermarket trading after beating Wall Street's estimates with a year-over-year sales decline of 4.3%, while iPhone sales remain flat.
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Why Penn Entertainment Stock Got Trounced on Thursday
| 2024-05-02 |
It covers the following details: Gaming stockPenn Entertainment(NASDAQ: PENN)didn't feel like a good bet on Thursday. After the company posted quarterly results that didn't meet analyst expectations, investors traded out of it to the point where its share price fell by almost 9%. And this was on the day when the benchmarkS&P 500index rose, advancing by nearly 1%.Double miss in the first quarterBefore market open, Penn published its first-quarter figures. The on- and offline gaming company's revenue slumped slightly on a year-over-year basis, sliding by 4% to just under $1.61 billion. On the bottom line it flipped to a loss of almost $115 million, against first-quarter 2023's profit of $514 million. Penn's non-GAAP(adjusted), per-share result also turned negative, at $0.79 versus the year-ago surplus of $0.39.Analysts tracking the stock were expecting better. Collectively, they were modeling revenue of $1.64 billion and an adjusted net loss of only $0.57.With its casino operations early in the quarter, Penn was affected by bad weather that kept customers away from its facilities. Meanwhile, its interactive segment suffered from negative hold (the portion of gambled money that is kept by the casino operator) from major sports games.The future is virtualIn its earnings release, Penn -- which runs the ESPN Bet online sportsbook -- nevertheless took an optimistic tone when discussing its future in the virtual gaming sphere. It quoted CEO Jay Snowden as pledging that "Our improved online product offering will help engage, reactivate, and retain our expanding database, while also advancing our strategy to create a highly differentiated experience for sports fans and sports bettors."Should you invest $1,000 in Penn Entertainment right now?Before you buy stock in Penn Entertainment, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Penn Entertainment 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,
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Market Hunts for Signs of Japan Yen Intervention in Fed Accounts
| 2024-05-02 |
It covers the following details: (Bloomberg) -- Fresh data on the Federal Reserve’s various accounts hints at two potential ways Japanese policy makers may have funded currency interventions this past week to bolster the beleaguered yen. Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dimon's America, th
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RXO, still suffering from weak market, touts Q1 volume growth
| 2024-05-02 |
It covers the following details: RXO tried to point to several improving benchmarks in a tough freight market. (Photo: Jim Allen/FreightWaves)RXO’s earnings released Thursday, likethose of C.H. Robinson a day before, looked to various data points to show “green shoots” that indicate a market bottom for 3PLs may have been reached and a turnaround has commenced.The focus at C.H. Robinson was on its sequential performance, and investors Thursday liked what they saw a day earlier. Robinson’s stock price was up 12.26%, or $8.84, to $80.93. It was one of the biggest gainers of any stocks for the day.Although the indicators cited by RXO(NYSE: RXO)were not as overwhelmingly positive as those at C.H. Robinson, RXO’s stock price Thursday climbed as well, though not as much as Robinson’s(NASDAQ: CHRW). RXO was up $1.12, to $20.12, a gain of 5.89%.While year-to-year comparisons are the standard fare in financial reporting, comparing brokerages on a sequential basis the past two quarters seems appropriate as investors and analysts dig for any sign of life in the moribound 3PL industry.On that basis, RXO’s earnings on the surface didn’t seem to be pointing toward a significant turnaround. But compared to C.H. Robinson, it wasn’t carrying the burden of proving wrong the enormous short positions that have been taken in CHRW stock, reportedly one of the largest on Wall Street.Those sequential numbers were mostly negative for RXO. The company as a whole recorded revenue of $900 million for the quarter, down from $1 billion in the fourth quarter.RXO had a GAAP net loss of $15 million in the first quarter, compared to fourth-quarter 2023 net income of $2 million. Adjusted (non-GAAP) net income in the fourth quarter of 2023 was $7 million. For the first quarter, it was a loss of $4 million.Adjusted earnings before interest, taxes, depreciation and amortization for the first quarter at RXO was $15 million,
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Down 57% from Highs, Is Tesla (NASDAQ:TSLA) Stock a Buy Now?
| 2024-05-02 |
It covers the following details: While Tesla (NASDAQ:TSLA) has generated game-changing wealth for long-term shareholders, it has trailed the broader markets by a wide margin in the last two years. Tesla stock has returned a whopping 10,790% to investors since its IPO in July 2010. However, shares of the world’s leading electric vehicle manufacturer are currently down 57% from all-time highs, and now could be a good time to buy the dip.I am bullish on Tesla due to its strong market positioning, widening portfolio of vehicles, and the worldwide transition toward battery-powered vehicles. Let’s dive deeper.Why Has Tesla Stock Soared Recently?Tesla stock is up over 24% since it reported Q1 results last week. In Q1 of 2024, Tesla reported revenue of $21.3 billion and adjusted earnings of $0.45 per share. Comparatively, Wall Street expected revenue of $22.2 billion andearnings of $0.49 per share. Despite the revenue and earnings miss,Tesla stock surged over 12%in a single trading session after the company disclosed plans to begin producing cheaper EV vehicles within the next 12 months.Earlier this week, Tesla stock popped 15.3% after the company stated it ispositioned to launch its FSD (full self-driving) technology at scale in China. According to several reports, Tesla CEO Elon Musk visited China over the weekend and discussed data security measures with industry regulators.Soon after the meeting, China paved the way for Tesla to launch its FSD software in the country. Due to data security concerns, Tesla’s FSD tech was previously deployed with certain restrictions in China.Tesla Is Part of an Expanding MarketAccording to a report fromFortune Business Insights, the global electric vehicle market is forecast to expand from $385 billion in 2022 to $1.58 trillion in 2030, indicating an annual growth rate of almost 18%. An expanding addressable market provides Tesla with enough room to grow its top line while entering new growth markets such as Asia.Tesla is the largest EV manufacturer in the U.S. and has a 6.7
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Morning Bid: Markets loving the Fed, yen loving the BOJ
| 2024-05-02 |
It covers the following details: By Jamie McGeever(Reuters) - A look at the day ahead in Asian markets.The dovish waves from Fed Chair Jerome Powell's press conference on Wednesday continue to wash over world markets, putting Asian stocks on the cusp of a second straight weekly gain and highs not seen in well over a year.Investor sentiment is positive and risk appetite looks strong going into the Asian open on Friday, after world stocks rose and U.S. bond yields and the dollar fell the previous day.The upbeat mood may be strengthened by the first quarter results from Apple after the U.S. close on Thursday, as the world's second most valuable company reported a smaller than expected decline in revenue and Chief Executive Tim Cook said he expects a return to sales growth in the current quarter.The regional economic and corporate calendar is light on Friday - the Australian services PMI, consumer inflation from Thailand and retail sales from Singapore are the highlights.Perhaps the most important news for world markets on Friday, apart from the U.S. employment figures for April, will come from Tbilisi, where the Asian Development Bank is hosting its 57th annual meeting.Japan's Finance Minister Shunichi Suzuki and Bank of Japan governor Kazuo Ueda are scheduled to hold a press conference on the sidelines of the meeting and if they do face reporters, they will be grilled about Japan's apparent intervention in the currency market this week buying yen.Japan likely intervened early on Monday and early on Thursday local time buying yen to stem its rapid decline that culminated in a fresh 34-year low of 160.00 per dollar.Estimates suggest Tokyo spent just under $60 billion in the two yen-buying forays, around the same amount used in the three interventions over September and October 2022, the last time authorities waded into the market.The targeted action, when market liquidity was particularly thin, appears to have worked, for now at least - the yen hit 153.00 per dollar on Thursday, its strongest since April 15 and up 4.5% from that historic low on Monday.In Asian equities, meanwhile, Hong Kong stocks go into Friday's session at a six-month high, having leaped 2.5% on Thursday thanks to gains in local technology, property and financial stocks.
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1 Wall Street Analyst Thinks Amazon Stock Is Going to $220. Is It a Buy?
| 2024-05-02 |
It covers the following details: Amazon(NASDAQ: AMZN)reported solid financial results for the first quarter on April 30. Revenue grew 13% over the year-ago quarter, and solid cost controls provided a massive boost to the company's profits.After the report came out,Morgan Stanleyanalyst Brian Nowak maintained an overweight (buy) rating on the shares but increased theprice targetfrom $215 to $220, representing upside of 23% above the current share price.Here's what's going right for Amazon, and why the stock could hit a new high in the next few years, if not sooner.Why buy Amazon stockManagement is generating enormous upside for Amazon's profitability by more efficiently allocating inventory across its network of fulfillment centers and squeezing more efficiency out of capital spending. These efforts led to anet profitof $10.4 billion in the first quarter, a big jump from $3.2 billion a year ago.Following the massive improvement on the bottom line, Morgan Stanley raised its forward estimates for operating income and earnings per share by about 10%. While the firm estimates that Amazon's North American retail business is still not profitable when excluding advertising revenue, which grew 24% year over year, it sees further upside for Amazon's profits from further cost efficiencies and accelerating growth in the high-margin Amazon Web Services cloud business.It's not unreasonable to expect the share price to hit a new high. At $220, the shares would trade at 27 times trailing cash from operations per share, which would still be in the middle of the previous 10-year range for this valuation metric.Considering the value underneath the shares, Amazon still looks like a great buy even after the run over the last year.Should you invest $1,000 in Amazon right now?Before you buy stock in Amazon, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Amazon 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
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Is Sirius XM Stock Going to $4.90? 1 Wall Street Analyst Thinks So.
| 2024-05-02 |
It covers the following details: You like to listen to it in your car, but would you invest in its stock?Sirius XM Holdings(NASDAQ: SIRI)is the one and only satellite radio broadcaster, and its shares win attention simply because of that fact.One analyst believes that there are other compelling reasons for owning Sirius XM, not least that the stock has some powerful upside. He advises investors to seriously consider tuning into the company for the strong returns it can produce.A bull remains steadfastTo call prognosticator Jeffrey Wlodarczak of Pivotal Research a Sirius XM bull is a big understatement. As April came to a close, he reiterated his buy recommendation on the stock at a price target of $4.90 per share. That's nearly 70% higher than the stock's most recent closing price.Wlodarczak's move feels somewhat counterintuitive, as it comes on the heels of a disappointing earnings report from the uniqueentertainment company.In itsfirst quarter, Sirius XM reported only incremental (0.8%) year-over-year revenue growth to $2.16 billion. Net income saw a more dramatic rise of 14% to $265 million. Both headline figures more or less met analyst expectations, but the company's revenue guidance fell just short. This combination clearly discouraged investors, who traded the shares down by more than 7% that day.The company's essentially in-line performance led Wlodarczak to leave his existing estimates intact. In his latest Sirius XM research note, he wrote of the benefits the satellite radio broadcaster should reap from its out-of-car app, and its personalized marketing.User base issuesWhile Sirius XM has an unbeatable and powerful position in its market, it's finding it hard to grow its numbers.Satellite radio is very far from being a novelty, and folks have either signed up for the service or aren't interested at this point. It's difficult, after all, to find new converts for well-established technology. Unless management finds a way to rope in vastly more users or create new revenue streams, I don't think this is an exciting investment despite the impressive -- and very useful -- technology.Should you invest $1,0
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Is This Stock-Split Stock Going to $3,600? 1 Wall Street Analyst Thinks So.
| 2024-05-02 |
It covers the following details: Chipotle Mexican Grill(NYSE: CMG)has always been an outlier of a restaurant stock, a factor that was behind a recent price target increase from an analyst. According to him, the fast-casual chain operator, which is heading for the firststock splitin its history and trades over $3,000 now, is deserving of a price tag approaching $4,000. Here's a brief look at this recent evaluation.A stock-split superstarThat boost clocked in at over 12%, as Evercore ISI's David Palmer upped his Chipotle target from $3,200 per share to $3,600. At the risk of stating the obvious, this is a pre-stock split price; that piece of financial engineering is subject to shareholder approval in a vote to be taken at the company'sJune annual meeting.Like many recent changes in analyst evaluations, Palmer's modification came just after Chipotle unveiled quarterly results.As it usually does, the company posted excellent numbers, with first-quarter revenue rising 14% year-over-year to $2.7 billion, comparable-restaurant sales advancing by 7%, and per-share profitability vaulting an impressive 27% higher to $13.37. Chipotle beat the consensus analyst estimates on both the top and bottom lines.After parsing that earnings report, Palmer raised his estimates for "comps" and earnings. Referring to the former, he said his increase was because "Chipotle's superior 'food quality for the money' and improving throughput is helping differentiate itself from an industry with declining traffic."Tasty tech temptationsThe analyst also believes Chipotle can leverage technology to beef up its bottom line, for example using artificial intelligence (AI) to enhance its marketing efforts. Advanced kitchen equipment, meanwhile, should help it slice costs.Chipotle's management, in my view, is one of the best teams in the business. The company is the gold standard in the fast-casual segment, with consistently high profit margins almost unknown in the challenging restaurant industry. It's proven to be adept at leveraging available tech to bolster its results, and with more opportunities to do so those numbers are sure to keep improving. This
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Why Fastly Stock Crashed Today
| 2024-05-02 |
It covers the following details: Fastly(NYSE: FSLY)stock cratered in Thursday's trading. The content-delivery-network company's share price closed out the daily session down 32%, according to data fromS&P Global Market Intelligence.Fastly published its first-quarter report after the market closed on Wednesday, delivering mixed results. While the company's loss per share was lower than anticipated, its revenue came in lower than Wall Street's target. Making matters worse, theedge-computingspecialist significantly lowered its full-year performance targets.Fastly's growth is slowingFastly's revenue increased roughly 13.6% year over year to come in at $133.52 million in Q1, but this performance fell short of the average analyst estimate by $0.35 million. The business posted anon-GAAP(adjusted) loss of $0.05 per share in the quarter, beating the average Wall Street target by $0.01.Even though Fastly posted a solid sales increase in the first quarter, its near-term performance outlook isn't encouraging. They company closed out Q1 with remaining performance obligations of $227 million, representing a 4% year-over-year decline compared with the total at the end of last year's quarter.Fastly stock is now down roughly 51% across 2024's trading. Its share price is also down a staggering 93% from the lifetime high it reached in October 2020.Fastly's new guidance flashes warning signsFastly said it was expecting second-quarter sales to come in between $130 million and $134 million. The guidance range came in significantly below the average Wall Street estimate, which had called for sales of $140.3 million in the period.Meanwhile, management guided for full-year sales to come in between $555 million and $565 million, representing a significant downward revision from the company's previous target for sales to be between $580 million and $590 million.Following the underwhelming results and guidance,Bank of Americaanalyst Madeline Brooks cut her rating on the stock from buy to underperform and lowered her one-year price target on the stock from $18 per share to $8. With Fastly closing out
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Tech Jumps in Late Hours on Apple’s Solid Outlook: Markets Wrap
| 2024-05-02 |
It covers the following details: (Bloomberg) -- The rally in tech heavyweights extended into late hours after better-than-estimated results from Apple Inc., with the iPhone maker also raising its dividend and announcing plans to buy back more stock.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaIn Jamie Dimon's
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Why Peloton Stock Was All Over the Charts Today
| 2024-05-02 |
It covers the following details: Shares ofPeloton Interactive(NASDAQ: PTON)were sliding after an initial pop in response to news of layoffs and the departure of CEO Barry McCarthy gave way to selling in the regular trading session.As a result, the stock closed down 2.5%, recovering most of its losses after it bottomed out down 16% around 11 a.m. ET. The stock had opened up as much as 18% higher as it initially rallied on the announcement.Image source: Peloton.What to make of the latest Peloton newsPeloton investors seem to be arguing over the implications of the latest upheaval at theconnected fitness company.On the one hand, it seems easy to posit that layoffs and a CEO change are bullish for the company as they could be the spark that ignites the long-awaited turnaround for the one-time pandemic star. Throw in the fact that stock has fallen as far as it has, and buying it looks even more enticing.On the other hand, the news only makes Peloton look more broken, as McCarthy was brought in just a little more than two years ago to turn around the at-home exercise company when it was struggling in the aftermath of the pandemic.Can Peloton be fixed?This is the million-dollar question for the company, but at this point, I'd lean against expecting a recovery in the stock. Peloton's brand awareness is high. It was a buzzy brand during the pandemic, which means that consumers who would have bought the product, especially during the shutdown period, probably already did. It hasn't been easy for the company to find new customers since then, and it seems unlikely to get easier.For the current fiscal year, it expects a 1% decline in paid fitness subscriptions and a 4% decline in revenue. While the company is making significant improvements on the bottom line through cost cuts, it will need to deliver revenue growth for the stock to make a recovery.It will fall on the next CEO's shoulders to come up with a plan for that. Stay tuned for more updates on the CEO search and a potential transformation plan, and expect the stock to remain volatile in the meantime.Should you invest $1,000 in Peloton Interactive right now?Before you buy stock in Peloton Interactive, consider this:TheMotley Fool Stock
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Why Zoetis Stock Popped by Almost 6% on Thursday
| 2024-05-02 |
It covers the following details: Investors were meowing for animal healthcare specialistZoetis(NYSE: ZTS)on Thursday, following the company's release of its latest quarterly results. These obviously pleased market participants, as the stock's price leaped nearly 6% higher over the course of the trading session. That was more than enough to top the performance of theS&P 500index, which rose by 0.9%.First-quarter growth in several product segmentsFor its first quarter, Zoetis earned revenue of $2.2 billion, which was a 10% improvement over the same period of 2023. Non-GAAP(adjusted) net income also headed north, by 4% year over year to $634 million ($1.38 per share).Both figures edged past the average analyst estimate. Collectively, prognosticators following Zoetis stock were modeling $2.15 billion for revenue and $1.35 for adjusted, per-share net income.In the earnings release, Zoetis attributed its gains to success in the pet anti-parasite, osteoarthritis, and dermatology product segments. It also quoted CEO Kristin Peck as saying, "Our scientific breakthroughs have firmly established us as trusted and preferred partners to our customers."The company has a fairly even revenue mix in geographic terms. In the quarter, it took in $1.2 billion from U.S. sales and $1 billion from international markets.2024 guidance liftedAnother factor in the company's successful Thursday was its raising of full-year 2024 guidance. The company is now forecasting it will book revenue of $9.05 billion to $9.2 billion for the period, filtering down into adjusted net income of $2.62 billion to $2.67 billion ($5.71 to $5.81 per share). The current analyst top-line and bottom-line estimate falls within this range, at $9.16 billion for revenue and $5.78 per share for adjusted net income.Should you invest $1,000 in Zoetis right now?Before you buy stock in Zoetis, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best
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Carvana Father-Son Duo Make $11 Billion in 3,000% Stock Rebound
| 2024-05-02 |
It covers the following details: (Bloomberg) -- The father-son duo behind Carvana Co. have seen their fortunes rebound as shares of the Phoenix-based online used-car dealer have surged more than 3,000% from historic lows.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesBiden Calls Ally Japan ‘Xenophobic’ Along With China, RussiaUS and Saudis Near Defense Pact Meant to Resh
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Apple's quarterly iPhone sales plunge 10%, but stock price surges on dividend, stock buyback news
| 2024-05-02 |
It covers the following details: Apple on Thursday disclosed its steepest quarterly decline in iPhone sales since the pandemic’s outset, deepening a slump that’s increasing the pressure on the trendsetting company to spruce up its products with more artificial intelligence.The 10% drop in year-over-year iPhone sales for the January-March period is latest sign of weakness in a product that generates most of Apple’s revenue. It marked the biggest drop in iPhone sales since July-September period in 2020, when production bottlenecks caused by factory closures during the pandemic resulted in a delayed release of that year's model.The current iPhone downturn was the main reason Apple’s revenue for the latest quarter decreased 4% from last year to $90.8 billion. It marked thefifth consecutive quarterthat Apple’s revenue dipped from the previous year. Apple’s profit in the past quarter totaled $23.64 billion, or $1.53 per share, a 2% dip from last year.But both Apple's revenue and earnings per share came in slightly above analysts projections, according to FactSet Research. Apple also predicted its revenue for the April-June quarter will rise modestly from a year ago, which would end the recent streak of erosion.Part of the iPhone deterioration during the first three months of the year stemmed from a big boost in sales during the same period last year when Apple said it was filling pent-up demand caused by pandemic-driven shipment delays.Even as it stumbles slightly, Apple remains one of the world’s most prosperous companies. The Cupertino, California, company hammered home that point by announcing a 4% increase in its quarterly dividend to 25 cents per share. The company also committed to spending $110 billion buying back its own stock, a move that investors cheered but may fuel criticism that Apple is spending more money catering to Wall Street than creating more innovative products.Bolstered by the increased dividend and stock repurchase commitment, Apple's shares rose nearly 7% in extended trading after the news came out. The stock price has fallen 10% so far this year, erasing about $300 billion in stockholder wealth.Although investors have been dismayed by the weakening iPhone sales, they are also concerned Apple may
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Apple earnings see 10% iPhone sales drop, massive buyback fuels stock jump
| 2024-05-02 |
It covers the following details: Apple on Thursdayreported a 10% drop in iPhone salesfor the second fiscal quarter, dropping from $51.33 billion to $45.96 billion, year-over-year. The slowdown was fueled, in part, by an 8% drop in China.Apple’s slow adoption of AI versus competitors like Google and Microsoft likely played a role in consumers’ decision to hold off on purchasing a new iPhone. Apple has promised some big announcements on that front (likely at WWDC in June), but the iPhone 16 itself likely won’t arrive until fall."Keep in mind as we described on the last call in the March quarter a year ago, we were able to replenish iPhone channel inventory and fulfill significant pent-up demand from the December quarter COVID-related supply disruptions on the iPhone 14 pro and 14 Pro Max," CEO Tim Cook explained on an earnings call. "We estimate this one-time impact is $5 billion to the March quarter revenue last year. If we remove this from last year's results, our March quarter total company revenue this year would have grown."In spite of those dire hardware figures, however, the company still managed to beat Wall Street expectations and the stock rosemore than 6%after hours, fueled by both an increase on services revenue and a massive $110 billion stock buyback -- a jump over last year's $90 billion purchase.Services, which includes offerings like iCloud, Apple TV+ and Apple Music, jumped 14% for the year. Apple has long anticipated a slowdown in hardware sales, and its increasing focus on subscription services have helped to make up for some of that loss."We expect our services business to grow double digits at a rate similar to the growth we reported for the first half of the fiscal year," CFOLuca Maestri noted on the call. He added that, "iPad should grow double digits."The company is expected to release two new iPads at astandalone event next week. That the company has not refreshed the tablet line since 2022 no doubt contributed to its own drop in sales from $6.67 billion to $5.56 billion, year over year. At Tuesday's event, Apple is also expected to announce the M4 chip -- the latest addition to the Apple Silicon line. The company's chip progress, however
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‘Almost impossible’: Janet Yellen despairs at housing market’s one-two punch for first-time buyers
| 2024-05-02 |
It covers the following details: It’s official: Home prices are up nearly 5% year over year inevery major U.S. city, according to a Redfin report released Thursday. Meanwhile, current mortgage rates are nearing the 8% peak from fall 2023. That deadly combination is making it “almost impossible” for first-time homebuyers to break into the U.S. housing market, Treasury Secretary Janet Yellen said during hertestimonybefore the House Ways and Means Committee on Tuesday.“With house prices having gone up, and now with much higher interest and mortgage rates, it’s almost impossible for first-time buyers,” Yellen said.Yellen also cited thelock-in effectas a major obstacle for new buyers. The phenomenon is when current homeowners are reluctant to sell their home out of fear of losing their low mortgage rates, only to trade them for high rates and higher home prices. A pair of housing tax credits proposed by President Joe Biden, however, could potentially help ease the lock-in effect.One tax credit would provide $10,000 for first-time homebuyers, while a separate $10,000 tax credit would benefit homeowners in selling their “starter home” to move into a larger house. The hope would be this particular tax credit would increase starter home supply, which is extremely low as more current homeowners hold on to their current properties. However, with home prices reaching a near-record $383,188 at median, according to Redfin, many buyers are still excluded.“We know that affordable housing and starter homes are an area where we really need to do a lot to increase availability,” Yellen said during her testimony.Why it’s so hard for first-time homebuyers to find an affordable houseThere are several factors working against first-time homebuyers in today’s housing market. Rising home prices in conjunction with rising mortgage rates have driven the median monthly housing payment to a record $2,890—a whopping 15% year-over-year increase, the Redfin report shows.U.S. Bureau of Labor Statisticsdatashows the median weekly earnings for full-time workers as of the fourth quarter of 2023 was $1,403. Assuming the median monthly housing payment, that means homeowners would be spending half of their
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Peloton stock sinks to record low as CEO steps down
| 2024-05-02 |
It covers the following details: Conway Gittens brings the latest business headlines from the floor of theNew York Stock Exchangeas markets close for trading Thursday, May 2.Related: Stock Market Today: Stocks gain as Powell nixes rate hikes; Apple on deckFull Video Transcript Below:CONWAY GITTENS:I’m Conway Gittens reporting from the New York Stock Exchange - here’s what we’re watching on TheStreet today.Stocks were in the green to close out today's session. The Dow closed 300 points higher, the Nasdaq closed 1.5 percent higher, and the S&P closed nearly one percent higher. This comes as investors continue to digest corporate earnings while looking ahead to the all-important April jobs report out Friday. Analysts are anticipating another strong month of job growth, forecasting a gain of 240,000 jobs, a slowdown from the 303,000 in March. Investors will be closely watching this report to determine the health of the U.S. labor market.In other news - Peloton is now searching for its third CEO in just over two years. The company announced that current CEO Barry McCarthy will step down. 15 percent of the company’s workforce is heading out the door as well. Peloton says the layoffs were necessary because it ““simply had no other way to bring its spending in line with its revenue.”More Videos:Most common investing mistake even veteran investors makeEverything to know about the iconic force behind 'RuPaul's Drag Race'What it's actually like to drive this luxury car – reviewing the Bentley Continental GT V8The company released a statement saying “This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business,”The restructuring plan comes on the heels of disappointing third-quarter results. The fitness company missed Wall Street’s expectations on both its top and bottom lines. Peloton has suffered a dramatic fall from pandemic darling. Revenues have declined for nine straight quarters, and it hasn’t turned a net profit since December of 2020. The stock is at an all-time low.Pel
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Why ChargePoint Stock Jumped This Week
| 2024-05-02 |
It covers the following details: Shares of electric vehicle (EV) charging network companyChargePoint Holdings(NYSE: CHPT)popped this week. The stock jumped 16.5% as trading came to a close Thursday afternoon, according to data provided byS&P Global Market Intelligence.That move brought ChargePoint shares off the lowest level of the year. And there could be more to come based on the reason for the sharp move. Before investors get too excited, though, realize that shares are still lower by 36.5% year to date.EV charging leadership changeChargePoint's move didn't come from anything the company specifically did. There was no major news orSecurities and Exchange Commission (SEC) filingsfrom the company. But there was some seemingly major, and surprising, news from EV leaderTesla(NASDAQ: TSLA). Tesla's Supercharger network is so dominant that its North American Charging Standard (NACS) system is becoming the official standard in North America.But the company shocked investors and Tesla owners this week by laying off most or all of its Supercharger segment employee base. That comes after Tesla announced agreements with many other EV makers last year to allow their customers access to the network.So investors were trying to make sense of it. And one explanation -- or at least outcome -- could be that third-party charging network companies will now be the ones to build out much of the future North American charging network. Tesla could conserve capital by letting others build out the network that Tesla vehicle owners can still utilize.That could be a huge shot in the arm to companies like ChargePoint. And it needs one.Revenue growth has hit a wallfor ChargePoint after several years of strong increases. It projects revenue for the fiscal 2025 first quarter (ended April 30) will be lower both sequentially and year over year.But ChargePoint and other charging network companies have reputations for quality and reliability issues. That needs to be overcome. Investors probably shouldn't jump into ChargePoint on this news until all of those questions get more definitive answers.Should you invest $1,000 in ChargePoint right now?Before you buy stock in ChargePoint, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now
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Why Caterpillar Stock Crawled to a 4% Loss On Tuesday
| 2024-05-02 |
It covers the following details: This Monday, construction equipment specialistCaterpillar(NYSE: CAT)became a bit less of an international company. It withdrew its listing from a prominent stock exchange overseas, and investors weren't happy that its presence was shrinking. They traded the company's main (i.e., U.S.-listed) shares down by 4.4% in price the following day, which was a steeper dive than theS&P 500index's 1.6%.The French delistingCaterpillar will no longer have a presence on the Euronext Paris, the company announced. This follows what it characterized as a "comprehensive review," of its Paris-listed stock, which it said suffered from notably low trading volume. Citing the costs and requirements of administering those shares, it requested they bedelisted. The request was granted by Euronext Paris's board of directors.The delisting is to occur on May 28, with the last day of trading set for May 27.This appears to be the start of a general retreat from European equity markets. Caterpillar added that it plans to make a similar move to delist its shares from the SIX Swiss Exchange. It hopes this will be finalized by the end of this year.Caterpillar emphasized that foreign investors wanting to remain or become its shareholders purchase its New York Stock Exchange (NYSE)-listed shares. It added that holders of the Paris-listed stock can sell it via the NYSE by going through a "centralizing agent," tasked with handling these transactions. This entity is storied French bankSociete Generale, and the window for effecting the sales will be open from May 3 through May 16.No real negative impact on operations, but...While this move won't impact Caterpillar's core business, if at all, it doesn't do wonders for its prestige and reputation. The most important blue chips on the U.S. market are also popular overseas, with more than a few being traded on foreign bourses. Now, Caterpillar looks less of a world-beater than those peers.Should you invest $1,000 in Caterpillar right now?Before you buy stock in Caterpillar, consider this:TheMotley
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Why Remitly Global Stock Was Sliding Today
| 2024-05-02 |
It covers the following details: Shares ofRemitly Global(NASDAQ: RELY)were tumbling today after the remittance specialist missed the mark in its first-quarter earnings report.As a result, the stock was down 11.4% as of 2:29 p.m. ET.Image source: Getty Images.Remitly comes up short on the top lineRemitly delivered solid results in the quarter, but the company is still unprofitable and valued as a growth stock. That means that it's likely to get punished if it comes up short on the top line, and that's exactly what happened today.Revenue in the quarter rose 32% to $269.1 million, but that was a bit shy of the consensus of $274 million. Active customers rose 36% to 6.2 million, and send volume jumped 34% to $11.5 billion.The company also made progress on the cost side as it controlled spending on a number of line items, including transaction expenses, customer support, and general and administrative expenses. On the bottom line, it showed improvement, as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from $5.4 million to $19.3 million. On a generally accepted accounting principles (GAAP) basis, its loss per share narrowed from $0.16 to $0.11, beating estimates at a loss of $0.14 per share.CEO Matt Oppenheimer said, "We are pleased with our strong start to the year that reflects our resilient customer base and superior customer experience."What's next for Remitly?The sell-off in Remitly shares was a bit surprising considering that the company also raised its EBITDA guidance for the year.Remitly, which competes with money-transfer specialists likeWestern Unionand Moneygram, maintained its full-year revenue forecast of $1.225 billion-$1.25 billion, representing 30%-32% growth, but raised its EBITDA forecast from $75 million-$90 million to $85 million-$95 million.Nonetheless, investors still seem concerned about the first-quarter miss, although it seems unlikely to impact full-year results.Remitly continues to look like a promising
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Wall Street Inches Up After Powell's Inflation Remarks; Chipmakers Rebound; Gold, Crude Falter: What's Driving Markets Thursday?
| 2024-05-02 |
It covers the following details: Wall Street Inches Up After Powell's Inflation Remarks; Chipmakers Rebound; Gold, Crude Falter: What's Driving Markets Thursday?U.S. stock markets surged during Thursday’s midday trading session in New York, with major averages all showing gains.Trader sentiment rebounded thanks to positive signals from corporate earnings and relief after Fed ChairJerome Powelldismissed the possibility of a rate hikeduring Wednesday’s press conference.TheS&P 500inched 0.3% up at 12:30 p.m. ET, while the tech-heavyNasdaq 100slightly outperformed, up 0.6%. Semiconductors stood out as a bright spot, buoyed byrobust quarterly results and optimistic guidancefromQualcomm Inc.(NASDAQ:QCOM). TheiShares Semiconductor ETF(NYSE:SOXX) rose 1.2%, after plummeting 3.4% Wednesday.Small caps fared better than large caps, with theiShares Russell 2000 ETF(NYSE:IWM) up 1%.Treasury yields moved slightly lower after Wednesday’sFederal Open Market Committee(FOMC) meeting indicating reduced fears on potential upward moves in interest rates. The policy-sensitive 2-year yield fell to 4.9%, after touching 5.05% on Wednesday.Commodities slid, with gold dropping by 0.8% and West Texas Intermediate (WTI) light crude declining by 0.5% to $78 a barrel, poised to close at its lowest level since Mar. 13, 2024.Bitcoin(CRYPTO:BTC) slightly rebounded to $59,000 after tumbling to as low as $56,500 Wednesday.Thursday’s Performance In Major U.S. Indices, ETFsMajor IndicesPrice1-day %chgRussell 20002,000.821.0%Nasdaq 10017,396.760.6%Dow Jones37,994.030.
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