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This is a news article titled 'Why Arm Holdings Stock Took a Dive Today', published on 17 April, 2024. It covers the following details: Shares ofArm Holdings(NASDAQ: ARM)were taking it on the chin today after a disappointing earnings report fromASML Holdings(NASDAQ: ASML)led to a broad-based sell-off in artificial intelligence (AI) stocks. Arm was the worst performer of the group as its shares finished the day down 12%, which was even worse than ASML's 7.1% drop.Arm shares get spookedArtificial intelligence stockshave soared in recent months, and Arm has been among the winners. The chip designer, known for highly efficient CPU architecture, has seen revenue growth accelerate from the breakout technology.However, ASML's update this morning threw cold water on the sector and led to a broad sell-off in AI stocks. As one of the most expensive in the sector, Arm got hit hard on the news.Image source: Getty Images.ASML reported a sharp decline in revenue, and its guidance called for a continued decline in sales in the second quarter. While that news was roughly what Wall Street expected, both the first-quarter and revenue number and the guidance missed analyst estimates.ASML expects revenue growth to improve in the second half of the year and accelerate in 2025, but the update shows that demand from chip manufacturers likeTSMCmay not be as strong as expected. That, in turn, could be a warning sign for Arm as the stock soared in February after it promised accelerating revenue growth due to AI-related demand.What's next for ArmHigh expectations are built into Arm stock, which is trading at aforward price-to-earnings (P/E) ratioabove 100 and isn't putting up the kind of eye-popping revenue growth as its collaboratorNvidia. Still, the company figures to have a bright future in AI as its CPU architecture is favored by companies like Nvidia, in part because it requires less power than alternatives.We'll get an update from Arm next month when its fiscal fourth-quarter earnings report comes out. Until then, expect continued volatility from the stock as investors weigh its valuation with the future growth in AI.Should you invest $1,000 in Arm Holdings right now?Before you buy stock in Arm Holdings, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are
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Continued from the article titled 'Why Arm Holdings Stock Took a Dive Today': the10 best stocksfor investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $535,597!*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*.Story continuesSee the 10 stocks »*Stock Advisor returns as of April 15, 2024Jeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has adisclosure policy.Why Arm Holdings Stock Took a Dive Todaywas originally published by The Motley Fool
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This is a news article titled 'Stock market today: Indexes rise as traders try to shrug off Powell's hawkish commentary', published on 17 April, 2024. It covers the following details: In this March 21, 2018, file photo, Federal Reserve Chairman Jerome Powell speaks following the Federal Open Market Committee meeting in Washington. The Federal Reserve releases minutes from the March meeting of its policymakers on Wednesday, April 11.Carolyn Kaster/APUS stocks rose Wednesday as traders tried to move past Jerome Powell's hawkish commentary on Tuesday.The Fed boss said progress on inflation appeared to be stuck, indicating rates will remain high.Major averages ticked higher at the open as traders looked to break a three-day losing streak.US stocks rose on Wednesday as traders tried to recover from a three-day losing streak. All three benchmark indexes ticked higher, while long-dated bond yields dipped.Stocks tumbled this week as investors continued to digest hotter-than-expected inflation data and the central bank's latest guidance on rate cuts. Inpublic remarkson Tuesday, Federal Reserve Chair Powell said the inflation fight appears to have stalled, and central bankers needed more confidence inflation was on track to fall to its 2% target.The comments hint that Fed officials will likely keep rates higher for longer unless the job market should "unexpectedly weaken," Powell added.Strong economic data and hawkish Fedspeak have cut into the market's rate-cut hopes. Investors have nearly taken the possibility of a June Fed rate cut off the table, and are now expecting just 1-2 rate cuts by the end of the year, down from 6 cuts expected at the start of 2024, according to theCME FedWatch tool."Chair Powell's comments in Washington, DC, yesterday, materially reduce the chance of a June Fed easing," Ian Shepherdson, the chief economist of Pantheon Macroeconomics, said in a note on Wednesday. "For the record, we think delaying rate cuts is a mistake, and the risk of an unwanted recession is rising. But we don't have our hands on the policy levers.""The Fed picked a bad time to have a communication problem on the path of rates this year," Jamie Cox, a managing partner at Harris Financial Group said in a statement. "Markets need to focus on the fact that rates are sufficiently restrictive, instead of how many cuts are in the pipeline," he added.Bond yields
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Continued from the article titled 'Stock market today: Indexes rise as traders try to shrug off Powell's hawkish commentary': edged lower on Wednesday, with the 10-year Treasury dropping three basis points to 4.626%.Here's where US indexes stood at the 9:30 a.m. opening bell on Wednesday:S&P 500: 5,074.74, up 0.47%Dow Jones Industrial Average: 37,918.94, up 0.34% (+127.83 points)Nasdaq Composite: 15,940.95, up 0.51%Here's what else is happening today:Elon Musk's wealth has crashed by $160 billionfrom its peak as Tesla's problems pile up.Bitcoin is about to undergo another "halving" event. Here's why that could send its price soaring.Stop thinking your expensive watch is an investment, Rolex's CEO says.Story continuesIn commodities, bonds, and crypto:West Texas Intermediatecrude oil dropped 0.9% to $84.51 a barrel.Brent crude, the international benchmark, slumped 1% to $89.04 a barrel.Goldrose 0.17% to $2,387.25 per ounce.The 10-year Treasury yield dropped three basis points to 4.626%.Bitcoinslipped 1.21% to $62,241.Read the original article onBusiness Insider
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This is a news article titled 'S&P 500 Suffers Its Longest Slide Since January: Markets Wrap', published on 17 April, 2024. It covers the following details: (Bloomberg) -- The stock market saw its longest losing streak since January as a handful of big techs sold off — despite a slide in bond yields.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelEquities fell for a
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This is a news article titled 'Steering Clients Through Unstable Markets', published on 17 April, 2024. It covers the following details: Steering Clients Through Unstable MarketsPaul Schatz, president of founder of Heritage Capital in Woodbridge, Conn., spoke with etf.com about navigating client portfolios through the current market environment that includes higher than expected inflation and interest rates.Jeff Benjamin: Are you diversifying out of theMagnificent Sevenleaders?Paul Schatz: We spent the first quarter reducing exposure to most things artificial intelligence as well as other hot and sexy stocks. Most of these positions had been held for a long while and saw parabolic rallies which are rarely sustainable. We outright sold Marvell Technology, Broadcom, Micron Technology and Tyler Technologies, while reducing position size in Nvidia and Advanced Micro Devices, for example.JB: Where are you finding opportunities?PS: Until very recently, I was finding almost too many opportunities in the unloved and overlooked areas like pharmaceuticals, chemicals and staples. We bought Bristol-Myers Squibb, Pfizer, CVS Health, Dow and Hershey, all downtrodden with solid dividends that no one seems to care about. We even found some less trafficked financials to buy like Moelis.I am typically early on these kinds of buys, so I won’t be surprised if they take some time to turn around.JB: Is the stock market at a turning point?JS: After positioning for a 20% year in 2023, 2024 looked to be a still strong 11% to 15% for the stock market. My thesis was for a first-quarter peak followed by a less than 10% decline that bottomed by Memorial Day. From there, fresh all-time highs over the summer.I think the March 27 high was that first quarter peak and now stocks are pulling back. I wouldn’t read too much into that. Contrary to popular belief, elections have almost no bearing on markets although the masses obsess over elections all year. If there is a quick, sharp downdraft from some geopolitical event, I would use that as a buying opportunity.JB: Are your clients holding more cash than usual at this point?PS: Our cash position ebbs and flows throughout the year during most years. We are definitely an active boutique.However, over the years with the
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Continued from the article titled 'Steering Clients Through Unstable Markets': advent of fantastic new products, we are more apt to hedge the downside or own low volatility instruments or products with defined outcomes like buffered ETFs.JB: Are youinvesting in bondswith the expectation forrate cutsthis year?JS: Coming in to 2024, I thought the six-to-seven rate cuts camp was clinically insane. What data were they analyzing? Nothing suggested that.Our work said that two or three cuts would be a lot with the risk being less or none. If the 2-Year Treasury somehow spikes to 5.5%, well, Houston, we have a big and serious problem.Story continues(Fed Chair Jerome) Powell and the FOMC would need to consider a 25-basis point hike. Talk about being embarrassingly wrong yet again.We haven’t bought cash bonds in many quarters. I am getting closer. Perhaps a monthly unemployment number of 4% or more will be the trigger.Permalink| © Copyright 2024etf.com.All rights reserved
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This is a news article titled 'Stock correlations tick up as Wall Street extends declines', published on 17 April, 2024. It covers the following details: By Saqib Iqbal AhmedNEW YORK (Reuters) - A stock market correlation index hit a near four-month high on Wednesday, signaling that investors expect stock market gyrations to tick up in coming days.With the S&P 500 slipping 0.58% on Wednesday, down nearly 5% from the record high touched in late March, the Cboe 1-Month Implied Correlation Index rose as high as 21.79, its highest since late December.The Cboe index, which measures the market's expectations of correlation between S&P 500 index components, was languishing below 10 as recently as the start of April, lows rarely touched in the index's near two-decade history, according to LSEG data.The rise in correlation expectations points to investors gearing up for some more volatility in the days ahead, according to JJ Kinahan, CEO of IG North America and president of online broker Tastytrade.Kinahan, however, noted that correlation levels still remain low compared to history, and the recent uptick may be due to investors adjusting portfolios in response to the recent rise in volatility."Does it bear watching? Of course ... but it isn't really panic time," Kinahan said.The index remains well below its five-year median reading of around 35."Over the past two years, correlation levels have been historically muted, even lower than what we saw in 2017," said Mandy Xu, head of derivatives market intelligence at Cboe Global Markets."In order for volatility to shock higher, you need correlations to start picking up," Xu said.When correlation is low and individual stocks are charting their own paths, it tends to subdue index level volatility.(Reporting by Saqib Iqbal Ahmed; Editing by Will Dunham)
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This is a news article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%', published on 17 April, 2024. It covers the following details: US stocks fell on Wednesday, struggling to mount a comeback asinvestors' interest rate worriescoincided with a fresh slate of corporate earnings.After all three major indexes started the day in the green, the S&P 500 (^GSPC) ended down about 0.6%. The Dow Jones Industrial Average (^DJI) lost a more modest 0.1%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) led the losses, falling over 1%.Big Techdrove the market action, with Nvidia (NVDA) falling almost 4% and Meta (META) sliding over 1%. The tech sector (XLK) was the worst-performing sector in the S&P 500, falling nearly 1.5%.Stocks havestruggled to reprisetheir early-year rally, buffeted most recently by worries over heightened tensions in the Middle East and uncertainty over the timing and depth of rate cuts.Another bump came on Tuesday as Federal Reserve Chair Jerome Powell'sdownbeat comments on inflationprompted some to recalibrate their bets on a September cut to December.After robust big bank results signaled areturn to strength on Wall Street, investors are looking to earnings season to give stocks a push upward. United Airlines (UAL) shares rose more than 17% after postinga revenue beatlate Tuesday.But shares of ASML (ASML) fell more than 7% in New York after the Dutch company'squarterly update. ASML, the largest supplier of equipment to chipmakers worldwide, missed order estimates, though its sales to China held up amid US curbs.LIVE COVERAGE IS OVER17 updatesWed, April 17, 2024 at 1:00 PM PDTJosh SchaferThe S&P 500 has its worst stretch since start of 2024The S&P 500 closed lower for a fourth straight day on Wednesday. This marks the benchmark average's first four-day losing streak since a stretch from late December into the start of 2024, per Bespoke Invest.The market action has whipsawed more than usual too,reflecting the "bumpier path" forwardsome Wall Street strategists see
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': the market headed.In each of the last four sessions, the S&P 500 has closed at least 0.5% lower than its session high. The only other time that's happened since the start of 2023 was back in October, the most recent bottom for the S&P 500, Bespoke also noted.Wed, April 17, 2024 at 12:15 PM PDTJosh SchaferTrending tickers on WednesdayArm holdings (ARM) ledthe Yahoo Finance trending tickers pageon Wednesday as shares fell nearly 10% amid a broader sell-off in chip stocks. The move came after ASML (ASML), the largest supplier of equipment to chipmakers worldwide, missed order estimates in a quarterly release on Wednesday. Nvidia (NVDA) shares also fell more than 2% on the news.Meanwhile, United Airlines (UAL) stock rose more than 16% after the company reported a narrower-than-expected loss than Wall Street expected. For the first quarter, United posted an earnings per share loss of $0.15, narrower than the $0.57 Wall Street expected, per Bloomberg data.Meanwhile, United guided for earnings per share in the current second quarter in a range of $3.75 to $4.25. This came in above Wall Street's projections for $3.73.Wed, April 17, 2024 at 11:35 AM PDTInes FerréOil prices fall as 'geopolitical premium' undwindsOil futures fell roughly 3% on Wednesday, extending their declines over the past two days as the risk of a widening conflict in the Middle East appeared to ease.Analysts anticipate Israel is unlikely to hit Iran's oil production when it responds to Tehran's attack on Israeli government targets unleashed over the weekend."Crude futures continue to unwind some of the Geopolitical premium that has been priced in," Dennis Kissler, senior vice president at BOK Financial, said in a recent note on Wednesday.West Texas Intermediate (CL=F) futures settled at $82.69 per barrel, while Brent (BZ=F), the international benchmark
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': price, fell below $88 per barrel.Crude has come off its 2024 intraday highs touched earlier this month when WTI rose above $87 per barrel and Brent surpassed $92 per barrel.Wed, April 17, 2024 at 11:25 AM PDTJosh SchaferHigh rates haven't always been a problem for stocksRising bond yields have beena key catalystfor stock drawdownsover the past year.But as the marketshiftsto expect that interest rates may remain higher than the previous decade for longer than many initially hoped, BMO chief investment strategist Brian Belski notes that higher rates haven't always been a bad enviornment for stocks.In an analysis going back to 1990, Belski found that the S&P 500's monthly return has actually delivered its best annualized average returns when the 10-year Treasury yield (^TNX) was higher.Belski's work shows the benchmark average delivered an average annual return of 7.7% in months where the 10-year Treasury yield was less than 4%, compared to an average annual return of 14.5% in months when the 10-year was 6%."In a higher interest rate environment, certainly higher than 0%-1% or 0%-2%, stocks traditionally do very well," Belski said. "So I think we're recalibrating that. We still think from these levels stocks are higher at year-end."Belski's research shows that, on average, stocks have performed better in a rising rate environment than in a falling rate environment. The average annual rolling one-year return for the S&P 500 during a falling rate environment is 6.5%, while it's 13.9% in a rising rate regime.He argued that this makes sense given that one reason the Fed would keep rates lower or cut them would be a sluggish economic growth outlook. Giventhe current backdropis one in which the Fed feels the economy is in a strong position to handle higher borrowing costs, increased rates might not be so bad for stocks, Belski said."If we can hover between this 4% and 5% range [on the
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': 10-year Treasury yield] and still have strong employment, but most importantly, have very strong earnings and, oh by the way, cash flow, I think the market can do very well," he added.Wed, April 17, 2024 at 10:22 AM PDTJosh SchaferASML's earnings miss sinks chips sectorShares of ASML (ASML) fell more than 8% in New York after the Dutch company'squarterly updaterevealed that the largest supplier of equipment to chipmakers worldwide missed order estimates for the most recent quarter.Net bookings for ASML's machinery declined 4% compared to the same year prior and were down nearly two-thirds from the quarter prior.“Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn,” ASML CEO Peter Wennink said in a statement.The disappointing outlook, by Wall Street's standards, forced selling action across the chip sector. Market leader Nvidia (NVDA) dipped more than 2%, while AMD (AMD) fell more than 4%.Wed, April 17, 2024 at 10:00 AM PDTDani RomeroHomebuyers applied for more mortgages even as rates roseIn a counterintuitive development, mortgage demand picked up for the second consecutive week even though rates rose during that period.The volume of mortgage applications increased 3.3% from the prior week ending April 12, the Mortgage Bankers Association (MBA)reported.Purchase applications drove the increase.Joel Kan, MBA's deputy chief economist, said in a release that "application activity picked up, possibly as some borrowers decided to act in case rates continue to rise."Mortgage rates have been hovering above 7%. The prospect of rate cuts by the Federal Reserve looks cloudy following recent higher-than-anticipated inflation prints.“Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down. Mortgage rates increased across the board, with the 30-year fixed rate at 7.13% — reaching its
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': highest level since December 2023,” Kan said.The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less increased to 7.13% from 7.01%, the MBA data showed. Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.90 % from 6.80%.Wed, April 17, 2024 at 9:31 AM PDTJosh SchaferTech leads losses on WednesdayStocks turned lower on Wednesday led by losses across tech.As Yahoo Finance's Myles Udlandrecently noted, the so-called "Magnificent" group of tech stocks that led the 2023 market rally still represent a historically high portion of the S&P 500's market cap. And midway through the trading day on Wednesday, that helped lead stocks lower.Nvidia (NVDA) fell more than 2%, while Meta (META) slid nearly 2%. The tech sector (XLK) was the worst-performing sector in the S&P 500, falling more than 1%.Below is a look at moves in the tech-heavy Nasdaq 100 (^NDX) as of 12:30 p.m. ET.Source: Yahoo FinanceWed, April 17, 2024 at 8:43 AM PDTJosh SchaferInvestors increasingly expect 'no landing' for US economyA growing number of investorsbelieve the US economy is headed fora "no landing"scenario, in which inflation doesn't reach the Fed's 2% target, but the US economy keeps growing.Thirty-six percent of respondents to Bank of America's Global Fund Manager Survey, released on Tuesday, said they believe the most likely outcome for the global economy is a "no landing." This was a noted move higher from the 23% who saw the outcome a month ago and the highest level seen since June 2023, the earliest date on BofA's graph.Meanwhile, 54% of respondents believea soft landing— where economic
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': growth slows but not to the point of recession, and inflation returns to its historical average — is the most likely outcome.This shows a shift in the discussion on Wall Street, as just 7% of respondents believe a hard landing, where restrictive policy forces the economy into recession, is the base case. Last year, much of the debate on Wall Street was whether a hard or soft landing was in the cards for the economy.Now, the debate has shifted to whether recent better-than-expected economic data could prohibit further progress on inflation."Recessions don't hit the US economy without a catalyst of some sort, and we just don't see what is going to stop consumer spending," Jefferies US economist Tom Simons wrote in a note on April 12. "With demand still solid, it is hard to see how inflation will continue to slow down, and thus it is hard to see how the Fed can cut rates."Read more here.Wed, April 17, 2024 at 7:57 AM PDTJosh SchaferEarnings are under more scrutiny this quarterIt's early in earnings season, but a warning sign is flashing for investors as quarterly results roll in.In a market that's priced in significant earnings growth for the rest of this year, investors are watching closely how companies live up to their expectations.With 43 S&P 500 companies having reported first quarter earnings, those that miss estimates for both earnings per share and revenue have seen a negative stock reaction of more than 10% the next day. This is well above the 3.1% average fall seen over the last five years, per Evercore ISI's Julian Emanuel.And as seen in the chart below from Emanuel, any mix of company beats or misses on earnings and revenue for the quarter have driven worse returns for investors on average this quarter.A chart from Evercore ISI shows that stocks have seen more aggressive swings to the downside when missing on earnings and revenue this quarter.(Source: Evercore ISI)Given the market'srecent slumpon fears inflation's downward path may have stalled and the Fed could cut rates less than expected, how this earnings season plays out will be increasingly "critical" for the market rally, according to BlackRock global chief investment strategist Wei Li."Earnings have
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': come to the rescue because markets are up year to date, despite the hawkish repricing," Litold Yahoo Finance."So we'll see if earnings will continue to come to the rescue of hawkish repricing, even as the bar has increased as well for earnings."Wed, April 17, 2024 at 6:59 AM PDTJosh SchaferUnited Airlines stock soars more than 10% after earningsUnited Airlines (UAL) stock rose more than 10% on Wednesday morning after the companyreported better-than-expected quarterly results.The airliner reported a $200 million impact on earnings from the recent Boeing 737 Max 9 grounding, a loss lower than Wall Street analysts expected."In a way, you could say the damage here is pretty limited," Nicolas Owens, Morningstar Industrials equity analyst, told Yahoo Finance.For the first quarter, United posted an earnings per share loss of $0.15, narrower than the $0.57 Wall Street expected, per Bloomberg data. Meanwhile, United's revenue of $12.54 billion came in above estimates for $12.44 billion.United guided for earnings per share in the current second quarter in a range of $3.75 to $4.25, which was above Wall Street's projections of $3.73.Wed, April 17, 2024 at 6:34 AM PDTJosh SchaferStocks rebound in early trade on WednesdayUS stocks rose on Wednesday, with the S&P 500 (^GSPC) eyeing a comeback as investors put interest rate worries on the back burner to focus on quarterly earnings.The S&P 500 was up roughly 0.4% afterbooking a three-day run of losses, while Dow Jones Industrial Average (^DJI) popped 0.4%. The tech-heavy Nasdaq Composite (^IXIC) led the gains, rising more than 0.5%.United Airlines (UAL) was the standout on Wednesday morning, with shares rising more than 7% in morning trade after postinga revenue beatafter the bell.Wed, April 17, 2024
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': at 4:15 AM PDTBrian SozziNetflix bulls not shaken ... yetNetflix (NFLX) shares have had a great ride this year, up 27% year to date (a move not many people have talked about).The bulls haven't been shaken in a volatile April for markets, with the stock up 1.6% versus the 3.9% drop for the S&P 500.The vibe on the Street is that when Netflix reports earnings after the close on Thursday, it will show continued benefits of its crackdown on password sharing and a strong original content slate. In short, investors are positioned for another blowout quarter from the streaming beast.But, there is some concern creeping in on the Street on the back half of the year outlook for Netflix. The company will be cycling several impressive quarters from 2023 (meaning growth could slow), and investors know the bullish thesis very well.What they may be missing are a few points brought to light by Deutsche Bank analyst Bryan Kraft this morning.Here's what Kraft said in a client note:"We believe that in order for the stock to appreciate further, consensus estimates for 2024-2025 will need to be revised higher, as we believe a lot is already priced in at these valuation levels. We think incremental subscriber growth from paid sharing will continue into this year, but at some point in 2024 will normalize at a lower level of net additions, with an ongoing benefit from a larger total addressable market and a less leaky customer acquisition funnel. Exactly when net addition normalize in 2024 is an open question since only management knows how large the base of unpaid sharers is that have not yet been forced to decide between paying or losing access to Netflix."More on what to watch from Netflix earnings from yours truly down below.Wed, April 17, 2024 at 4:00 AM PDTBrian SozziInvestors still not getting it on interest ratesA good amount of focus this morning in markets is on what Fed chief Jerome Powellsaid on Tuesday, that it will "take longer than expected" to get inflation down to the Fed's 2% target.Lost in the Powell focus, though, were even more hawkish
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': comments from Fed vice chair Philip Jefferson.“If incoming data suggest that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer. I am fully committed to getting inflation back to 2%," Jefferson said.In the wake of this commentary, fed funds futures are now pricing in only 40 basis points of rate cuts by year-end. Deutsche Bank points out this is the lowest this has been so far in this cycle.But I have to wonder if investors are truly getting that the Fed is unlikely to cut interest rates at all this year! Check out theCME Fed Watchtool below for the Fed's December meeting. More people are looking for rate cuts than those expecting rates to be at the same level they are today.Investors are still hoping for rate cuts in 2024.(CME Fed Watch)Wed, April 17, 2024 at 3:45 AM PDTBrian SozziBy the numbers: An early look at earnings seasonAll in all, earnings season has started well. But interestingly, investors may have priced it in months ago.To date, 43 S&P 500 companies have reported first quarter results. Reported sales growth has been a solid 4.5%, and earnings have expanded quicker by 8.8% (despite sticky inflation weighing on profit margins).However, despite the solid growth rates, the average stock price dropped 1.2% after the results, according to data crunched by Evercore ISI strategist Julian Emanuel.Companies beating on both the top and bottom lines have seen their stock rise only 0.6% after the results. Companies that have missed on both the top and bottom lines (known as double misses) have seen their stock price hammered by 10.4% on average.Wed, April 17, 2024 at 3:31 AM PDTBrian SozziAnd we're back again on TeslaI can't get enough of this Tesla (TSLA) fall-from-grace story!So I am back (see 6:00 a.m. post below) with a new piece of research that just came my way on Tesla from Deutsche Bank auto analyst Emmanuel Rosner. I loved
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': this title on his Tesla section: "Clarity Needed on Future Direction of the Company."Perfectly said, and most others on the Street would agree.Here's what Rosner said, which goes a long way in explaining why Tesla's stock has gotten run over:"Perhaps most importantly, we view recent sequence of Tesla news as potentially thesis-changing for investors. With still many questions unanswered, it may be too early to tell if it is particularly bearish, or just neutral. As of now, it is unclear if a drivable version of Model 2 is still coming and if so when; how far along is robotaxi in its development and what a realistic timeline for deployment is in light of considerable technology and regulatory hurdles ahead. We expect Tesla to have to comment on these on its upcoming earnings call. Unfortunately, if Tesla were to confirm that its renewed robotaxi focus comes at the expense of Model 2, we believe this would introduce considerably higher risk profile for the stock, and remove a key reason many shareholders currently own the stock. More critically, this change in strategy would also make any upside from here tied to Tesla cracking the code on full driverless autonomy, which represents a significant technological and regulatory challenge."All in, we await clarity from Tesla on any change in strategy. If Robotaxi is being accelerated with no focus or timeline change for Model 2, this may be perceived as a positive signal of Tesla’s confidence in its autonomous technology and could potentially be accretive to out year estimates. If, however, Model 2 is being pushed out or canceled, we would view it as completely thesis-changing, as we worry about Tesla’s new execution risk profile, see considerable downside risk to 2026+ earnings estimates, and believe the stock would need to undergo a potentially painful shift in ownership base, with investors focused on Tesla’s EV volume domination and cost advantage potentially throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizons."Wed, April 17, 2024 at 3:15 AM PDTBrian SozziCheck out where these former pandemic stock darlings now trade!The rise in broader market volatility in the past week hasn't been kind to two former pandemic stock darlings.
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Continued from the article titled 'Stock market today: Tech leads stock slide, Nvidia falls almost 4%': Shares of Zoom (ZM) hit a fresh low on Tuesday, down about 90% from their October 2020 peak. Not much buying at these lows is happening in the premarket today.Blame return to office for Zoom's fall from grace.(Yahoo Finance)Meanwhile, shares of Peloton (PTON) also hit fresh lows on Tuesday. The stock has crashed 98% since its December 2020 highs as people have returned to pumping iron in $50-a-month gyms.Shares have Peloton keep cycling lower.(Yahoo Finance)Wed, April 17, 2024 at 3:00 AM PDTBrian SozziOne chart on Tesla says it allTesla (TSLA) has had an awful start to 2024. Full stop.Layoff news this week was more widespread than initially thought. Analysts are chopping estimates going into the EV company's coming earnings release. Cybertruck deliveries are reportedly being delayed. And Musk scrapped the cheap Tesla he has long promised.The chart below from RBC Capital Markets this morning (where RBC joined other banks and cut their estimates on Tesla) nicely captures the entirety of this mess.The Tesla stock struggles continue.(RBC Capital Markets)
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This is a news article titled 'Prologis sees market tightening again once interest rate cuts begin', published on 17 April, 2024. It covers the following details: “The worst that we are projecting in this period is almost as good as the best we’ve seen in other cycles,” Hamid Moghadam, co-founder and CEO, told analysts on a Wednesday call. (Photo: Jim Allen/FreightWaves)Management from logistics real estate investment trust Prologis said Wednesday that uncertainty around the timing of interest rate cuts has slowed leasing demand in the near term but that its favorable longer-term outlook remains unchanged.Prologis (NYSE: PLD) reported first-quarter core funds from operations (FFO) of $1.28 per share, in line with the consensus estimate. However, it lowered its full-year guidance by 1% to a new range of $5.37 to $5.47 compared to analysts’ expectations of $5.50 at the time of the print.The slight pullback in outlook represents some hesitancy in the market, which management believes will last for the next two to three quarters. Looking two and three years out, it said it’s potentially more bullish than before as deferred demand continues to build.“If you are sensing any acute change in our outlook, you are not reading our call correctly, said Hamid Moghadam, co-founder and CEO, on a Wednesday call with analysts.He said lease signings have been pushed out somewhat due to geopolitical concerns and higher interest rates. However, he expects that to change once rates start moving lower.“People are just scared of pulling the trigger until the Fed gives the all-clear sign with the first rate cut,” Moghadam said.Table: Prologis’ key performance indicatorsRental revenue increased 12% year over year (y/y) to $1.83 billion in the first quarter. Consolidated revenue was 11% higher at $1.96 billion.Occupancy across its portfolio was 96.8%, which was 30 basis points lower than the fourth quarter and 120 bps lower y/y. The company said occupancy rates have fallen 310 bps across the broader industry since the peak two years ago, but only by 80 bps across Prologis’ portfolio.Prologis now expects average occupancy in 2024 to be between 95.7
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Continued from the article titled 'Prologis sees market tightening again once interest rate cuts begin': 5% and 96.75%, which is a 75-bp reduction from the midpoint of the prior range. It said available supply is down 80% from the peak and one-third lower than pre-pandemic levels. It expects vacancy rates to reach the mid-6% range, quickly moving quickly lower later this year.It views a 6% vacancy rate as market equilibrium for rent negotiations.Net effective rent change (over the entire lease term) was 67.6% in the quarter, 120 bps lower y/y.Global market rents were down 1% in the period, with most markets in the U.S. seeing little change. Prologis noted weakness in Southern California (rents down 6% in the first quarter) and the Inland Empire of California due to general demand softness. But Moghadam believes some of that sluggishness is tied to protracted labor negotiations at the West Coast ports over the past two years.Story continuesHowever, rent changes on multiyear leases rolling over were 120% higher across the U.S. and 156% higher in the Inland Empire. The company said marking its whole lease portfolio to current market conditions would produce $2.2 billion in additional rents, or about a 50% increase to the current lease rates.“The worst that we are projecting in this period is almost as good as the best we’ve seen in other cycles,” Moghadam said. “We’ve just been spoiled by a market … where vacancies have been lower than they’ve ever been.”Shares of PLD were down 6.9% at 2:40 p.m. EDT on Wednesday compared to the S&P 500, which was off 0.2%.More FreightWaves articles by Todd MaidenKnight-Swift slashes H1 2024 expectation by more than halfJ.B. Hunt’s long-term intermodal growth plan weighs on Q1 resultEstes to open at least 20 terminals this yearThe postPrologis sees market tightening again once interest rate cuts beginappeared first onFreightWaves.
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This is a news article titled 'Why AMD, Applied Materials, and Lam Research Stocks All Tumbled Today', published on 17 April, 2024. It covers the following details: Wednesday is turning into a bad day to ownsemiconductor stocks-- and China is the reason. Late last night, theSouth China Morning Postreported that semiconductor chip output in the Middle Kingdom surged 40% in the first quarter -- more than twice as fast as total global semiconductor sales, according to data from the Semi global semiconductor manufacturers association.Shares of leading chipmakerAdvanced Micro Devices(NASDAQ: AMD)are down 4.5% through 2:10 p.m. ET.Lam Research(NASDAQ: LRCX)andApplied Materials(NASDAQ: AMAT)-- both builders of machines tomakesemiconductor chips -- are down 4.3% and 4.5%, respectively.Why China is importantChinese chipmakers are seeing "soaring" demand for their products from automobile companies (EVs especially) and smartphone manufacturers (such as Xiaomi). While slowing sales of EVs and smartphones dominate headlines in the West, thePostsays Chinese EV sales grew 29% in Q1, and smartphone sales rose 17% -- and China's building its own chips to supply them.Denied access to advanced chips and chipmaking equipment by the West, and spurred by local government edicts, Chinese companies are "doubling down on ... efforts to achieve self-reliance" in semiconductors. This could be bad news both for Western makers of semiconductors and for sellers of semiconductor manufacturing equipment -- and help explain why equipment manufacturerASMLmissed earnings today.What it means for semiconductor stocksThePostcalls all this "an unintended consequence of US export controls on advanced chip technology to China," and says it's causing "a wave of state-backed investment leading to overproduction and, potentially, Chinese dominance of global legacy-chip production."And you can see why that might worry investors.According toS&P Global Market Intelligencedata, AMD got 22% of its revenue from China in 2022 -- but by 2023, that number had dwindled to only 15%. The story is similar for Lam Research, where China sales slid from 31.4% of revenue to 25.6
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Continued from the article titled 'Why AMD, Applied Materials, and Lam Research Stocks All Tumbled Today': %, and (to a lesser extent) Applied Materials -- from 28.1% to 27.3%.As China moves to take over the semiconductor industry, those revenues could fall further. So could the share prices.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.Story continuesStock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Rich Smithhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Applied Materials, and Lam Research. The Motley Fool has adisclosure policy.Why AMD, Applied Materials, and Lam Research Stocks All Tumbled Todaywas originally published by The Motley Fool
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This is a news article titled 'Neurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's Data', published on 17 April, 2024. It covers the following details: Neurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's DataWednesday,Sage Therapeutics Inc(NASDAQ:SAGE) announced topline results from the PRECEDENT Phase 2 study of dalzanemdor (SAGE-718) in people with mild cognitiveimpairment in Parkinson’s Disease.The PRECEDENT Study did not meet its primary endpoint of demonstrating a statistically significant difference from baseline in participants treated with once-daily dalzanemdor versus placebo on the Wechsler Adult Intelligence Scale Fourth Edition-IV (WAIS-IV) Coding Test score at Day 42.WAIS-IV is the most advanced adult measure of cognitive ability.Dalzanemdor (SAGE-718) was generally well-tolerated, and no new safety signals were observed.48 participants experienced treatment-emergent adverse events (TEAEs). The vast majority of TEAES were mild to moderate in severity.“We are disappointed by the results of the Phase 2 PRECEDENT study given the significant burden of mild cognitive impairment on people and families affected by Parkinson’s Disease,” said Barry Greene, Chief Executive Officer at Sage Therapeutics.Analyses did not suggest meaningful differences versus placebo in the other exploratory endpoints, such as SCOPA-Cog, a measure for assessing cognitive function.Based on the data, the company does not plan to develop dalzanemdor (SAGE-718) further in Parkinson’s Disease.The company expects the following milestones for the dalzanemdor (SAGE-718) Phase 2 clinical development program in 2024:Topline data from the SURVEYOR Study in Huntington’s disease cognitive impairment in mid-2024.Topline data from LIGHTWAVE Study in people with mild cognitive impairment and mild dementia in Alzheimer’s disease in late 2024.Topline data from the DIMENSION Study in people with Huntington’s disease cognitive impairment in late 2024.Price Action:SAGE shares are down 23.80
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Continued from the article titled 'Neurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's Data': % at $11.91 on the last check Wednesday."ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro -Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?This articleNeurodegenerative Disorder-Focused Sage Therapeutics Stock Falls On Disappointing Parkinson's Dataoriginally appeared onBenzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This is a news article titled 'Why Interactive Brokers Stock Was Moving Higher Today', published on 17 April, 2024. It covers the following details: Shares ofInteractive Brokers(NASDAQ: IBKR)were climbing today after the discount brokerage platform posted better-than-expected results in its first-quarter earnings report.The company also gave investors a generous dividend hike.As of 1:23 p.m. ET, the stock was up 3.3%.Image source: Getty Images.Interactive Brokers delivers solid growthIn a competitive environment in the brokerage industry, Interactive Brokers reported solid growth across the board with revenue up 14% to $1.2 billion, matching expectations.The company has benefited from higher interest rates as it collected a net interest income of $747 million, up 17% from the quarter a year ago, but non-interest income, which is mostly commissions, continued to grow as well, up 9% to $456 million.Overall, adjusted earnings per share was up 21% to $1.64, which edged out estimates at $1.63.In addition to the solid financial results, Interactive Brokers also posted strong results in other key metrics as customer accounts increased 25% to 2.75 million and customer margin loans, a key source of income, rose 30% to $51.2 billion. Total customer equity was also up 36% to $465.9 billion.What's next for Interactive BrokersRising stock markets tend to be good for the brokerage industries as they attract more money into the market and encourage investors to borrow on margin. Additionally, Interactive Brokers is benefiting from the high interest rate environment as net interest margin expanded from 2.24% to 2.41%.Interactive Brokers didn't give guidance, but it did raise itsquarterly dividendfrom $0.10 to $0.25, a sign of confidence from the company.If the stock market remains healthy and interest rates stay up, Interactive Brokers should continue delivering solid results.Should you invest $1,000 in Interactive Brokers Group right now?Before you buy stock in Interactive Brokers Group, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Interactive Brokers Group wasn’t one of them
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Continued from the article titled 'Why Interactive Brokers Stock Was Moving Higher Today': . The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Jeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool recommends Interactive Brokers Group. The Motley Fool has adisclosure policy.Why Interactive Brokers Stock Was Moving Higher Todaywas originally published by The Motley Fool
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This is a news article titled 'United Airlines Stock: Q1 Earnings Surge Vs. Technical Red Flags', published on 17 April, 2024. It covers the following details: United Airlines Stock: Q1 Earnings Surge Vs. Technical Red FlagsUnited Airlines HoldingsInc‘s (NASDAQ:UAL) stock has taken flight after reporting impressive first quarter earnings, surpassing market expectations.The stock was up about 12% as of 10:30 a.m. ET on Wednesday, fueled by investor optimism around itsupbeat earnings report.Q1 Earnings Triumph Fueling The Stock HigherUnited Airlines reported first-quarter revenue of $12.5 billion, exceeding the consensus estimate of $12.4 billion.The company reported an adjusted quarterly loss of 15 cents per share, outperforming analyst estimates for a loss of 57 cents per share.Despite headwinds, including a 9.1% increase in capacity, the company improved TRASM by 0.6% and reduced CASM by 0.6%.Also Read:Why United Airlines Stock Is Rising WednesdayUnited Airlines’ Strategic MovesUnited Airlines reiterated its expectations for full-year 2024 adjusted earnings of $9 to $11 per share, demonstrating confidence in future performance.The company also announced the conversion of a portion ofBoeing Co(NYSE:BA) Max 10 orders to Boeing Max 9 orders, along with agreements with lessors to lease 35 new Airbus A321neos.Technical Indicators Raise Red FlagsChart: Benzinga ProUnited Airlines’ stock is currently facing a bearish trend, with its price positioned below its 5-, 20-, and 50-day exponential moving averages (EMAs). Specifically, the 8-day simple moving average (SMA) is below the current share price, indicating a sell-off. Additionally, both the 20-day and 50-day SMAs are situated below the stock’s current price, further reinforcing the bearish sentiment.The Moving Average Convergence Divergence (MACD) indicator stands at -0.32, suggesting a sell-off for the stock and implying a negative trend in momentum.Moreover, the Relative Strength Index (RSI) of 59.84 points to oversold conditions, indicating the potential for
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Continued from the article titled 'United Airlines Stock: Q1 Earnings Surge Vs. Technical Red Flags': a reversal, albeit amidst prevailing downward pressure.Chart: Benzinga ProThe Bollinger Bands also reflect a bearish outlook, with the price trading in the lower band, indicating sell-off conditions.Despite the positive earnings report, these technical indicators collectively highlight the cautious stance investors should adopt, emphasizing the importance of closely monitoring the stock’s price movements for potential opportunities in line with prevailing market dynamics.United Airlines’ stellar first-quarter performance reflects resilience amidst industry challenges. While technical indicators paint a cautious picture, investor optimism and strategic initiatives hint at a promising future for the stock.As market dynamics evolve, investors should closely monitor United Airlines’ trajectory for potential opportunities.Story continuesRead Next:United Airlines Reports Upbeat Results, Joins Children’s Place, Interactive Brokers And Other Big Stocks Moving Higher On WednesdayPhoto: Courtesy United Airlines"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro -Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?UNITED AIRLINES HOLDINGS (UAL): Free Stock Analysis ReportThis articleUnited Airlines Stock: Q1 Earnings Surge Vs. Technical Red Flagsoriginally appeared onBenzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This is a news article titled '1 Wall Street Analyst Upgraded Rivian Stock With a Possible Catalyst Ahead. Is It a Buy?', published on 17 April, 2024. It covers the following details: One Wall Street analyst thinksRivian Automotive(NASDAQ: RIVN)stock has dropped far enough.UBSanalyst Joseph Spak upgraded the stock of the electric vehicle (EV) maker on Tuesday, and implied there could be another upgrade ahead.Spak addressed both a short-term view as well as a specific catalyst that could drive Rivian shares higher over the long term. After Rivian stock has dropped by more than 50% in the last three months, Spak upgraded his rating from sell to neutral on Tuesday. He kept his price target of $9, but noted that there could be a new catalyst emerging, too.One catalyst that could drive this EV maker's stockIn the short term, Spak noted, "We believe the near-term risk/reward is more balanced at current levels" after the recent slide in Rivian shares. He added that risks that are now reflected in the stock price include slowing EV sales growth in general. Butthe short interesthas also reached over 18% of available Rivian shares.Any near-term catalystcould spark a short squeezethat would push shares higher. And there is a potential catalyst ahead. Rivian recently introduced the R2 SUV, its next EV offering. The analyst believes that a positive initial update on R2 reservations would support the longer-term potential for the stock.The R2 won't be available until 2026, but the stock could push higher on any update that has investors anticipating growing revenue in the coming years. With Rivian stock trading near its all-time lows, much of the pessimism surrounding EV demand and slowing sales may already be priced into the stock.Investors shouldn't look at the short-term movement or whether short covering might push shares higher. But if the R2 platform, or even the future R3 crossover SUV that will follow, are a hit with EV buyers, Rivian's stock may have bottomed. Risks remain, of course, but investors who believe EV demand will be strong for the lower priced vehicles should consider buying Rivian stock now.Should you invest $1,000 in Rivian Automotive right now?Before you buy stock in Rivian Automotive, consider this:TheMotley Fool Stock Advisoranalyst team
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Continued from the article titled '1 Wall Street Analyst Upgraded Rivian Stock With a Possible Catalyst Ahead. Is It a Buy?': just identified what they believe are the10 best stocksfor investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.Story continuesSee the 10 stocks*Stock Advisor returns as of April 15, 2024Howard Smithhas positions in Rivian Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.1 Wall Street Analyst Upgraded Rivian Stock With a Possible Catalyst Ahead. Is It a Buy?was originally published by The Motley Fool
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This is a news article titled 'Why ASML Holding Stock Was Falling Today', published on 17 April, 2024. It covers the following details: Shares ofASML Holding(NASDAQ: ASML), the leading manufacturer of semiconductor producing equipment, were moving lower today after the company turned in disappointing results in its first-quarter earnings report.As of 11:54 a.m. ET on Wednesday, the stock was down 7.4% on the news.Image source: Getty Images.ASML comes up shortRevenue was down 22% from the quarter a year ago as the company transitions to new technology to prepare for the AI boom. It fell to 5.29 billion euros and was down even more sequentially. That result, which was equal to $5.62 billion, missed estimates at $5.87 billion.ASML's gross margin improved from 50.6% to 51%, but operating margins fell from 32.7% to 26.3% as spending on research and development rose, along with selling, general, and administrative expenses.Earnings of $3.30 per share were down from $5.26 in the quarter a year ago. That still beat estimates at $3.15.CEO Peter Wennink said, "We see 2024 as a transition year with continued investments in both capacity ramp and technology to be ready for the turn in the cycle."What's next for ASMLThe news seems to signal that chip manufacturers likeIntel,Taiwan Semiconductor, andSamsungaren't rushing to upgrade their equipment in order to prepare for the wave of AI-related demand.ASML's guidance also indicated a continuing decline in year-over-year revenue. For the second quarter, the company expects revenue of $6.1 billion to $6.7 billion, which compares to $7.3 billion.The slowdown isn't alarming because ASML's business tends to be lumpy, but a pullback in the stock seems justified as the stock had soared along with a broaderAI boomsince last October. Based on its guidance, dialing back some enthusiasm for the stock makes sense.Should you invest $1,000 in ASML right now?Before you buy stock in ASML, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now
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Continued from the article titled 'Why ASML Holding Stock Was Falling Today': … and ASML wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $535,597!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Story continuesJeremy Bowmanhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel. The Motley Fool has adisclosure policy.Why ASML Holding Stock Was Falling Todaywas originally published by The Motley Fool
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This is a news article titled 'Here's What's Happening in Markets: April 17', published on 17 April, 2024. It covers the following details: Here’s What’s Happening in Markets Today: April 09Markets wavered between green and red Wednesday as investors looked for optimism in corporate earnings after Fed Chair Jerome Powell's comments about rate cuts left them downbeat.SPY, theSPDR S&P 500 ETF Trustand DIA, theSPDR Dow Jones Industrial Average ETF Trustboth flipped to higher from slightly lower midmorning, while QQQ, theInvesco QQQ Trustwhich mirrors the tech-heavy Nasdaq, dipped further than the other broad exchange-traded funds. Investors pulled money from SPY and DIA yesterday and QQQ experienced inflows of cash.Investors looking to snap a losing streak in the market were hit with a dose of pessimism on Tuesday by Fed Chair Powell at an event on the Canadian economy. Powell noted a "lack of further progress so far this year on returning to our 2% inflation goal" in his remarks, torpedoing hopes that the Fed would start cutting interest rates any time soon.According to the CME Fed Watch Tool, traders aren't forecasting rate cuts until September, with a nearly 100% bet on holding rates steady at the Fed's May policy meeting.Fixed income traders have been taken on a ride this year by the "higher for longer" rate environment. Most investors started off the year believing the Fed would cut rates half a dozen times—a belief that quickly dissipated in the first quarter. Bond yields, which were on the rise in previous days, fell on Wednesday, with the benchmark 10-year sliding to roughly 4.64%.TLT, theiShares 20+ Year Treasury Bond ETFwas also in the green on Wednesday as bond prices rose. Bond prices have an inverse relationship to yields.Despite Powell's comments, earnings from megacap companies (companies with market capitalization of roughly $200B or more) injected optimism into the markets Wednesday.United Airlines Holdings Inc.announced both earnings and revenue beats, while the airline maintained its economic forecast for 2024. Shares for the company jumped more than 10% Wednesday after the strong earnings report. JETS, theU.S. Global Jets ETFwhich
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Continued from the article titled 'Here's What's Happening in Markets: April 17': holds major airline companies in the U.S. and abroad, gained 2.5%.It's a nice boost for airline investors, who have seen performance in the airline industry underperform the broader market year to date.JETS YTDSource: etf.comAnd for cryptocurrency investors, a surge in bitcoin might be coming. Thebitcoin halving, an event where rewards for bitcoin mining is cut in half is likely set to happen this week. The event reduces the amount of bitcoin supply in the market, increasing its scarcity. In the past, the halving event has usually preceded a large bitcoin rally.Story continuesIt's the first halving event after the launch of spot bitcoin ETFs in the beginning of the year and may provide a buying opportunity for crypto investors.Blackrock'sIBIT, theiShares Bitcoin Trustwas in the red Wednesday, slipping more than 2.7% in advance of the halving. The fund has seen huge inflows since its launch, raking in $15.3 billion since January, according to etf.com data. The fund has gained nearly 45% since it began trading.IBIT Total ReturnsSource: etf.comWhile crypto may rally in the coming weeks, this year's halving comes as bitcoin prices have hit new highs, potentially limiting further gains in bitcoin and the spot ETFs that track the digital currency.Permalink| © Copyright 2024etf.com.All rights reserved
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This is a news article titled 'Nigeria Curbs Banks’ Ability to Grant Loan to Reduce Market Liquidity', published on 17 April, 2024. It covers the following details: (Bloomberg) -- Nigeria’s central bank curbed the ability of banks to grant loans as it seeks to reduce market liquidity and help reduce an inflation rate that rose to a 28-year high in March.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will
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This is a news article titled 'Why Old Dominion Freight Line Stock Is Falling Today', published on 17 April, 2024. It covers the following details: J.B Hunt Transportsounded the alarm on weakness in the trucking business, andOld Dominion Freight Line(NASDAQ: ODFL)is taking notice. Shares of Old Dominion are down 5% as of 12:30 p.m. ET following J.B. Hunt's worse-than-expected earnings report.Reading between the lines after a rival reportsInvestors intrucking companieshave been on a wild ride in recent years. The pandemic initially wiped out demand, but the e-commerce boom that followed created a significant need for trucks to restock inventories and make deliveries. In 2023, companies saw demand weaken as customers pulled back on expansion due to questions about the economy.If J.B. Hunt is to be believed, things didn't improve in the first three months of 2024. On Wednesday, the companyreported first-quarter results that fell short of top-line and bottom-lineexpectations due to soft demand and higher costs.Each company's cost structure is different, but the market viewed the commentary regarding demand as a harbinger of things to come for other truckers. Shares of Old Dominion and other truckers, includingXPOandKnight-Swift Transportation Holdings, fell in response to J.B. Hunt's results.Is Old Dominion Freight Line stock a buy heading into earnings?We'll know more on April 24 when Old Dominion is scheduled to release its first-quarter results, but today's reaction is understandable. Trucking is a cyclical business, so if one big trucker is seeing weak demand, it's likely an industrywide problem.Shares of Old Dominion have tripled in the last five years alone. The company has been a long-term winner because it's among the best-run trucking companies, allowing it to better navigate downturns and beat out competition when pricing is strong.But after a wave of consolidation and the failure of a few poorer operators, the industry has never been more competitive. Last quarter, for example, other companies delivered results indicating they're managing through the current environment better than Old Dominion.Given the uncertain macro climate, investors would be wise to wait to hear from Old Dominion instead of jumping in on this weakness.Should you invest $1,000 in
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Continued from the article titled 'Why Old Dominion Freight Line Stock Is Falling Today': Old Dominion Freight Line right now?Before you buy stock in Old Dominion Freight Line, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Old Dominion Freight Line wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Story continuesConsider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $535,597!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Lou Whitemanhas positions in XPO. The Motley Fool has positions in and recommends Old Dominion Freight Line. The Motley Fool recommends XPO and recommends the following options: long January 2026 $195 calls on Old Dominion Freight Line and short January 2026 $200 calls on Old Dominion Freight Line. The Motley Fool has adisclosure policy.Why Old Dominion Freight Line Stock Is Falling Todaywas originally published by The Motley Fool
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This is a news article titled 'Citi Says Wall Street Is Wrong to Slash Fed Rate-Cut Bets', published on 17 April, 2024. It covers the following details: (Bloomberg) -- Economists at Citigroup Inc. are going out on a limb by wagering that virtually everyone on Wall Street is wrong about the Federal Reserve.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelAfter thre
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This is a news article titled 'Stock market today: futures higher after hawkish comments from the Federal Reserve', published on 17 April, 2024. It covers the following details: NYSE traders.Michael M. Santiago/GettyUS futures were trading higher ahead of the opening bell on Wednesday.The S&P 500 and Nasdaq look set to end their losing streak following hawkish comments from the Fed.Brent Crude prices steadied as investors await Israel's response to Iran's weekend drone attack.US futures looked set too open higher after a day of hawkish comments from Fed officials on Tuesday.S&P 500 futureswere up 0.22% shortly before 5 a.m. ET, whileNasdaq 100 futuresrose 0.12%.Dow Jones Industrial Average futuresgained 0.33%, in line Tuesday's rise that broke a six-day losing streak.The S&P 500 and Nasdaq both closed lower on Tuesday, marking the third straight day of declines for both indexes.Brent crude oildipped 0.36% in pre-market trading. Prices shot up last week to more than $90 a barrel in anticipation of Iran's attack on Israel, but have fallen as traders continue to wait on Israel's response.Yields onten-year Treasury notesfell slightly on Wednesday after climbing to a five-month high. Federal Reserve Chair Jerome Powell's hawkish comments on rate cuts had triggered the surge in yields.He hinted at further delays, saying that it "would take longer than expected" for the Fed to feel confident about taming inflation.Fed vice-chair Philip Jefferson added that "if incoming data suggests that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer" in another dampening of rate cut hopes.The Fed is due to release the Beige Book — an indicator of regional economic conditions — later on Wednesday.US Bancorpreports quarterly earnings, as will transportation and real estate giantCSX.Read the original article onBusiness Insider
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This is a news article titled 'Bullish Trendline Has Never Failed Crispr Therapeutics Stock', published on 17 April, 2024. It covers the following details: Crispr Therapeutics AG (NASDAQ:CRSP)is 2.8% lower at $56.35 this afternoon, continuing a pullback from a Feb. 22, more than two-year high of $91.10. Over the last month, CRSP has erased 20.8% and now sports a 9.6% year-to-date deficit.For those looking to buy in on the dip, however, the recent pullback putsCrispr Therapeutics stockwithin one standard deviation of its 320-day moving average, a trendline with historically bullish implications. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity saw two similar signals in the past three years, after which it was higher one month later each time, averaging an impressive 13.3% gain. A move of similar magnitude would put the shares at roughly $63.85.CRSP Chart April 172024Crispr Therapeutics stock's 14-day relative strength index (RSI) of 18.2 is deep in "oversold" territory, which is typically indicative of a short-term bounce. Plus, short interest represents 17.6% of the stock's available float, and would take eight days to cover at CRSP's average pace of trading.Plus, itsSchaeffer's Volatility Scorecard(SVS) stands at a high 86 out of 100, indicating the stock exceeded option traders' volatility expectations in the past 12 month -- a boon for premium buyers.
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This is a news article titled 'Why J.B. Hunt Transport Stock Is Sputtering Today', published on 17 April, 2024. It covers the following details: Higher costs and weaker demand led to an earnings miss atJ.B. Hunt Transport Services(NASDAQ: JBHT), and the company doesn't see things improving quickly. Investors are moving to the exit lane, sending J.B. Hunt shares down 9% as of 11:30 ET.A weak market for transportJ.B. Hunt is a trucking and logistics company focused on hauling intermodal containers (the rectangular boxes designed to transition seamlessly from ship to rail to truck). The company earned $1.22 per share on revenue of $2.94 billion in the first quarter, far short of the $1.52 inEPSon sales of $3.12 billion that Wall Street had expected.Revenue fell 9% year over year and operating income was down 30%, a reflection of weakening demand and the impact of higher costs. J.B. Hunt said that operating income as a percentage of revenue decreased due to higher wages and benefits, equipment maintenance expenses, and soaring insurance rates.The company's freight brokerage unit handled 22% fewer loads in the quarter than it did a year ago.Is J.B. Hunt stock a buy after its earnings miss?Trucking is acyclical business. J.B. Hunt has a reputation for being a solid operator, but there isn't much any transportation company can do if there isn't sufficient demand for its services. In February, management warned that 2024 rate negotiations were soft, and the first-quarter results seem to confirm as much.On the expense side, there is little J.B. Hunt can do other than accept lower margins and wait for demand -- and therefore pricing power -- to return.For long-term-focused investors looking to buy into strong operators in the transportation sector, the slump in J.B. Hunt's shares could be an opportunity. But given the uncertainty about when demand will rebound, there is no reason to rush in and buy the dip today.Should you invest $1,000 in J.B. Hunt Transport Services right now?Before you buy stock in J.B. Hunt Transport Services, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and J.B. Hunt Transport
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Continued from the article titled 'Why J.B. Hunt Transport Stock Is Sputtering Today': Services 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 $535,597!*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*.Story continuesSee the 10 stocks »*Stock Advisor returns as of April 15, 2024Lou Whitemanhas 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.Why J.B. Hunt Transport Stock Is Sputtering Todaywas originally published by The Motley Fool
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This is a news article titled 'Why VinFast Auto Stock Crashed Today', published on 17 April, 2024. It covers the following details: Shares ofVinFast Auto(NASDAQ: VFS), theVietnamese vehicle makerthat went public in a merger with a special purpose acquisition company (SPAC)last summer, tumbled 11.5% through 11 a.m. ET Wednesday after reporting big misses on both sales and earnings for its first fiscal quarter of 2024.Heading into earnings, analysts were already pessimistic, predicting the company would lose $0.22 per share on sales of $450 million. As it turned out, analysts weren't pessimisticenough.VinFast lost $0.26 per share, and its sales were only $302.6 million.VinFast Q1 sales and earnings (make that "losses")The news wasn't all bad (only mostly bad). Total first-quarter sales grew 270% year over year, with revenue from vehicle sales up 324%. Gross profit margins improved from negative 173% to "only" negative 50%. Still, the company continued to lose money at an alarming rate.And it could be losing momentum as well. Deliveries of electric cars, while up 444% year over year, declined 28% sequentially from the fourth quarter of 2023. Deliveries of electric scooters -- formerly VinFast's main business -- declined both year over year (down 32%) and sequentially (down 73%).Is VinFast stock a sell in 2024?VinFast is trying to turn around the sales decline, nearly tripling the number of U.S. dealerships (to 16) with which it has relationships and signing up dealers in Indonesia, Thailand, and Oman.It has also returned to its roots with a new electric bike that it's trying to sell in the U.S. for $2,599, at the same time as it awaits the start of sales of its VF 9 EV later this month. And it promises to sell 100,000 EVs worldwide this year.VinFast might not live to see the end of this year, however. Negative free cash flow in the first quarter alone was a staggering $717.3 million, and
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Continued from the article titled 'Why VinFast Auto Stock Crashed Today': by its own admission, the company only has $123.3 million left in the bank. At the rate it's burning cash, VinFast could be out of money -- and out of luck -- in a matter of weeks, not months.Should you invest $1,000 in VinFast Auto Ltd. right now?Before you buy stock in VinFast Auto Ltd., consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and VinFast Auto Ltd. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.Story continuesSee the 10 stocks*Stock Advisor returns as of April 15, 2024Rich Smithhas 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.Why VinFast Auto Stock Crashed Todaywas originally published by The Motley Fool
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This is a news article titled 'Housing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'', published on 17 April, 2024. It covers the following details: Housing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'The path to homeownership isproving more difficultfor first-time buyers as mortgage rates and other associated costs soar.Mitch Roschelle, managing director at Madison Ventures+, described the timing as the worst of the year, with mortgage rates reaching their highest since last November. He conveyed his concerns during an interview on Fox Business's' "Varney & Co."The average rate for a 30-year fixed mortgage is 7.375%. Roschelle anticipates an increase in these rates,compounding the difficultiesfor new entrants into the housing market. He highlighted additional financial burdens, such as rising property taxes and insurance costs, which are inflating the overall expense of homeownership.Don't Miss:Investing in real estate just got a whole lot simpler. ThisJeff Bezos-backed startup will allow you to become a landlordin just 10 minutes, and you only need $100.Want To Grow Your Wealth Passively? Unlock Real Wealth withCityfunds’ Exclusive 8% Yield Fund.Rising costs aren’t just a burden for renters. Landlords are facing a similar squeeze. Property taxes and insurance premiums are on the rise, eating into their profit margins. To keep up with these increasing expenses, many landlords raising rents. This creates a ripple effect, as tenants must adjust their budgets to cover the higher housing costs."Consequently, rents are climbing," Roschelle said.He referred to the situation as a "price spiral," with rent increases surpassing 5% annually. This trend, according to Roschelle, could force many young adults to delay their plans of moving out, especially those belonging to Generation Z."I think if you're a parent of Gen Z kids, get used to them living in your house for a while because the prospects of them moving out look pretty grim," he said.TrendingWant to Create a Passive Income Stream?These High-Yield Real Estate Notes Might Be Your Holy GrailA recent study from the Pew Research Center reveals that less than half (45%) of adults ages 18 to
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Continued from the article titled 'Housing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'': 34 consider themselves financially independent. A quick look at the current economy helps explain this situation. Nearly a third of young adults in the 18- to 34-year-old demographic live with at least one parent. This percentage increases for those ages 18 to 24, with 57% still living at home. The traditional “sink or swim at 18” mentality has largely shifted because of new economic realities. Echoing this trend, a Wharton School from the University of Pennsylvania report using census data indicates that nearly half of Americans ages 18 to 29 lived with their parents, the highest level since the Great Depression.Story continuesDespitegloomy market conditions, Roschelle remains optimistic about real estate investment, emphasizing that property values are likely to rise. He advises potential buyers to recalibrate their expectations concerning the ongoing costs associated with higher interest rates and the overall expense of maintaining a home.This advice comes amid reports indicating that housing affordability has plummeted to its lowest level in 40 years, emphasizing the severity of the current real estate climate.Read Next:Elon Musk Is Bullish On Austin. Here’sHow To Invest In The City’s Growth Before He Floods It With New Tech Workers.Whole Foods’ Landlord Has Achieved A 15% Net IRR For Accredited Investors Since 2015 —Discover The Latest Investment Opportunities On Its Platform."ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro -Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?APPLE (AAPL): Free Stock Analysis ReportTESLA (TSLA): Free Stock Analysis ReportThis articleHousing Market Challenges Intensify And Expert Warns, 'If You're A Parent Of Gen Z Kids, Get Used To Them Living In Your House For A While'originally appeared onBenzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This is a news article titled 'European Stocks Tick Up as LVMH, Adidas Help Offset Tech Selloff', published on 17 April, 2024. It covers the following details: (Bloomberg) -- European stocks ended the day slightly higher as LVMH’s reassuring results and Adidas AG’s surge on profit forecast offset tech’s sharp selloff.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on IsraelThe S
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This is a news article titled 'Netflix Stock is Up 35% Year to Date. Can the Streaming Service Keep Going?', published on 17 April, 2024. It covers the following details: Netflix(NASDAQ: NFLX)is expected to report earnings on April 18th after market close. Leading up to that release, investors have been weighing the potential for a continuation of the membership growth that was witnessed in the fourth quarter of 2023, after the company began cracking down on shared memberships and pushed its ad supported memberships. The move led to some compelling figures in Q4'23. The question now is can that growth continue?In simplest terms, Netflix's initiatives seem to be working.Membership growth, earnings and guidanceStreaming is a competitive business, and one of the main concerns for Netflix has been its ability to continue driving membership growth asrivals likeDisney(NYSE: DIS)andParamount Global(NASDAQ: PARA)continue pushing for market share in streaming. For Netflix investors, that mounting competition hasn't damaged their investment over the last twelve months. Shares are up roughly 82%, and the impact of ad based memberships and crackdowns on password sharing appear to be working.Global paid memberships increased 12.8% year over year in Q4 2023 to 260.28 million, compared to a 4% increase the year prior. Operating margins were a whopping 16.9% compared to margins of 7% in Q4'22, and earnings hit $2.11 per diluted share vs. earnings of $0.12 per diluted share in Q4 2022.While these figures are great, what really encourages me is the continued positive forecasting. First quarter revenue is forecast to reach $9.24 billion; a 13.2% increase year over year, while operating margins are forecast to reach 26.2% compared to 21% in 2023. Forecasted net income of $1.98 billion would mark a 51% increase over Q1'23, and provide forecasted earnings of $4.49 per diluted share. That would represent almost 56% growth year over year.The bull caseLooking at the full year, insights from the fourth quarter shareholder's letter gave us a clue as to what is expected:"We enter 2024 with good momentum. We expect healthy
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Continued from the article titled 'Netflix Stock is Up 35% Year to Date. Can the Streaming Service Keep Going?': double digit revenue growth for the full year 2024 on a F/X neutral basis driven by continued membership growth as well as improvement in F/X neutral ARM as we adjust prices."Management further reiterated their intentions to continue building their ad business, which I ultimately feel is what will be necessary for all streamers if they wish to profitably gather up market share from more traditional forms of content.As mentioned, the stock's performance over the last 12 months has been strong at 82%. For that kind of trend to continue, the subscriber story is arguably the most important metric. Continued membership growth will feed every other metric like revenue, earnings, etc. The other most important thing in my eyes is whether the company can continue to figure out advertising. Ad related plans give Netflix something that counterparts like Hulu and Parmount+ take advantage of on the regular.Story continuesNetflix continues to drive new content, while seemingly putting a better focus on creating the best environment for increasing total membership growth and engagement.Current analyst estimates for 2024 are calling for earnings of $17.21 per share. That would give Netflix a valuation of a little over 35x forward full year earnings on aprice-to-earnings basis. That is well below the 5 year average of 62x earnings listed on Ycharts. If the company can report solid membership growth, coupled with earnings that are in line with expectations, this stock could have room to run.Should you invest $1,000 in Netflix right now?Before you buy stock in Netflix, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024David Butlerhas no position in any of the stocks mentioned. The Motley Fool has positions in and
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Continued from the article titled 'Netflix Stock is Up 35% Year to Date. Can the Streaming Service Keep Going?': recommends Netflix and Walt Disney. The Motley Fool has adisclosure policy.Netflix Stock is Up 35% Year to Date. Can the Streaming Service Keep Going?was originally published by The Motley Fool
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This is a news article titled 'Why Vanda Pharmaceuticals Stock Is Skyrocketing Today', published on 17 April, 2024. It covers the following details: Shares ofVanda Pharmaceuticals(NASDAQ: VNDA)were skyrocketing 37.8% higher as of 10:09 a.m. ET on Wednesday. The huge gain came after the company confirmed it had received -- and rejected -- several unsolicited acquisition proposals from pharmaceutical contract-manufacturing and packaging-services provider Future Pak.Why Vanda isn't interested in Future Pak's offerFuture Pak's most recent proposal to acquire Vanda was made on April 1, 2024. The offer was to buy Vanda for $7.25 to $7.75 per share.The low end of this range reflects a premium of 79% to Vanda's closing price on Tuesday. However, the company's board of directors concluded the offers "significantly undervalue" the company.Why would Vanda's board dislike Future Pak's bid? For one thing, Vanda's cash and marketable securities total around $6.75 per share, and Future Pak's offer is only 7% to 15% higher than this cash balance.The takeover proposals also give short shrift to Vanda's growth opportunities. Although the biotech's revenue declined 30% year over year in the fourth quarter of 2023, it recently won U.S. Food and Drug Administration (FDA) approval for Fanapt in treating bipolar I disorder.Is Vanda Pharmaceuticals stock a buy?Vanda Pharmaceuticals has a firm proposal from a potential suitor well above the current share price and a recent FDA victory in hand. The FDA set aPDUFA dateof Sept. 18, 2024 for an approval decision on tradipitant in treating symptoms of gastroparesis.The drugmaker still faces some risks, especially with an FDA decision on Hetlioz in treating insomnia in limbo. However, with a cash position greater than its market cap, Vanda could be a good pick for aggressive investors.Should you invest $1,000 in Vanda Pharmaceuticals right now?Before you buy stock in Vanda Pharmaceuticals, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocks
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Continued from the article titled 'Why Vanda Pharmaceuticals Stock Is Skyrocketing Today': for investors to buy now… and Vanda Pharmaceuticals 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 $535,597!*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*.Story continuesSee the 10 stocks »*Stock Advisor returns as of April 15, 2024Keith Speightshas 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.Why Vanda Pharmaceuticals Stock Is Skyrocketing Todaywas originally published by The Motley Fool
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This is a news article titled 'The Smartest Dividend Stocks to Buy With $400 Right Now', published on 17 April, 2024. It covers the following details: Investors are starting to pay attention to yield signs these days, but not the ones you see on the road. Income-generating stocks may not have the same appeal as they used to, with safer money market funds often yielding better than 5% right now, but it wouldn't surprise anyone if folks begin bidding up dividend-paying companies as soon as short-term rates start falling.Pesky inflation data is likely delaying the Fed's plans to cut rates, but when it does happen, you're going to find dividend stocks -- especially ones that historically push up their payouts -- more inviting. Even if you have a modest amount of money to put to work,Costco Wholesale(NASDAQ: COST),Disney(NYSE: DIS), andCracker Barrel Old Country Stores(NASDAQ: CBRL)are worth investigating. Let's see why these could be the smartest dividend stocks to buy with your next $400 investment.1. CostcoYou know Costco, even if you have never set foot in any of its warehouse clubs. Costco is a combination of mesmerizing extremes, but none more tantalizing than its low prices and long lines. Good luck finding another retailer or even a grocery store with a gross margin as low as Costco's 12.6%.Investors tend to shy away from low-margin stocks, but this is the appeal of Costco. It barely marks up its merchandise to pass on the savings to its shoppers, and in return, folks willingly pay annual membership fees to keep coming back.Costco is huge. It has generated $248.8 billion in revenue over the past four quarters.Comparable-store sales tend to hold up in most economic climates, up a hearty 7.7% in March with e-commerce sales soaring 28.3%. It's probably not the first name you think about when you start sizing up income-generating investments, given its 0.6% yield. But sometimes, the best dividend stocks aren't the ones with the chunkiest distributions.Image source: Getty Images.When the warehouse-club operatorhiked its quarterly dividend rate14% last week, it didn't generate a whole lot of excitement. The stock is trading lower now, and
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Continued from the article titled 'The Smartest Dividend Stocks to Buy With $400 Right Now': that's fair. All the hike did was push its yield up from 0.5% to 0.6%.However, the company tends to announce meatier one-time distributions every few years. A special dividend of $15 a share declared near the end of last year means that it paid out $18.96 a share last year -- a 2.6% yield -- but it will probably take a few more years before another one-time disbursement is made.Costco's rewards come from its long-term performance. The stock is up 50% in the past year, 102% through the past three years, and 227% over the last five years. You won't find distributions as rich as the capital appreciation that Costco has been able to consistently deliver, and if you do, it likely came at the expense of that stock heading lower during that time. Even with anew CEO, Costco should continue to be a steady winner for dividend investors willing to think outside of the yield box.Story continues2. DisneyAnother low-yielding household name I like is Disney. The media giant suspended its semiannual payouts when the pandemic sucker punched many of its businesses, but the House of Mouse finally reinitiated its distributions in November 2023. It's apparently making up for lost time, already boosting its payout by 50% for the next dividend that will go out this summer.Like Costco, Disney's checks aren't going to wow you. It's a 0.8% yield with the new rate. However, Disney is a stock that has the potential to take big steps on the capital appreciation front. The company is cutting costs to the point that it sees Disney+ -- the flagship service of its streaming business that collectively posted a $4 billion operating loss in fiscal 2022 and a $2.6 billion deficit in fiscal 2023 -- turning profitable by the end of this year.Along the way, you have a more promising slate of theatrical releases in 2024 than the lineup that often fell flat in 2023. Its theme parks continue to thrive, and Disney's doubling its investments to make those gated attractions and its growing fleet of cruise ships much more of a magnet for tourist
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Continued from the article titled 'The Smartest Dividend Stocks to Buy With $400 Right Now': dollars.3. Cracker BarrelIf you need a chicken-dumpling-sized payout to get you going, consider Cracker Barrel. The chain of rustic restaurants specializing in comfort food with attached gift shops is currently yielding a whopping 8.7%. It's been able to continue with its generous payouts despite a rocky financial performance and declining share price.Cracker Barrel isn't likely to deliver the kind of capital appreciation that investors may see from Costco or Disney, but there's a potential turnaround here. The stock is relatively cheap, trading at just 13 times this year's adjusted earnings estimates.The company's strategy of placing its throwback restaurants off major highways with a lot of traveler and tourist traffic makes it more vulnerable to the economy than other casual-dining chains. However, if the economy holds up and Cracker Barrel can vanquish its cost challenges, it could be more than just the healthy dividend checks it's currently serving up every quarter.Should you invest $1,000 in Costco Wholesale right now?Before you buy stock in Costco Wholesale, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Costco Wholesale 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 $535,597!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Rick Munarrizhas positions in Costco Wholesale, Cracker Barrel Old Country Store, and Walt Disney. The Motley Fool has positions in and recommends Costco Wholesale and Walt Disney. The Motley Fool recommends Cracker Barrel
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Continued from the article titled 'The Smartest Dividend Stocks to Buy With $400 Right Now': Old Country Store. The Motley Fool has adisclosure policy.The Smartest Dividend Stocks to Buy With $400 Right Nowwas originally published by The Motley Fool
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This is a news article titled 'Wall Street Bank Leaders Hail IPO Market’s Budding Revival', published on 17 April, 2024. It covers the following details: (Bloomberg) -- The leaders of Wall Street’s largest banks are optimistic about the reopening of the market for initial public offerings, after listings by firms such as Reddit Inc. and Galderma Group AG boosted underwriting revenues.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching
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This is a news article titled 'Wall Street Takes New Role as Matchmaker to Private Credit', published on 17 April, 2024. It covers the following details: (Bloomberg) -- Banks have found another way to fight back after private lenders have grabbed ever larger pieces of the lucrative business of financing leveraged buyouts.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsBankers Hit With Millions in Breakup Fees for Ditching New JobsChina Tells Iran Cooperation Will Last After Attack on I
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This is a news article titled 'Why United Airlines Stock Is Flying Higher Today', published on 17 April, 2024. It covers the following details: United Airlines Holdings(NASDAQ: UAL)posted a smaller-than-expected quarterly loss and said issues atBoeingwill not derail its full-year guidance. Investors are cheering the result, sending shares up 11% as of 10 a.m. ET.Growing despite major headwindsUnited lost $0.15 per share in the quarter on revenue of $12.54 billion, besting Wall Street's consensus estimate for a $0.57-per-share loss on sales of $12.45 billion. The company's pre-tax loss was $164 million, which is a $92 million improvement over the same quarter a year ago.The results included a $200 million hit related to the impact of the grounding of Boeing MAX 9 jets in the quarter after an incident involving anAlaska Air Groupplane. Without that hit, United would have reported a quarterly profit.United said it is adjusting its long-term fleet strategy based on demand trends and delays expected due to Boeing's ongoing issues. But the company reiterated its guidance for full-year earnings of between $9 and $11 per share, offering some upside to the $9.67-per-share consensus estimate.The airline grew capacity by 9.1% year over year in the quarter.Is United Airlines a buy following its strong earnings report?Airline investorshave a lot to process this earnings season. The sector has held up remarkably well during a period of higher inflation and rising rates, and United appears to see no sign of a weakening in demand.United's ability to adjust its fleet to minimize the impact of Boeing's delays stands in contrast to comments made bySouthwest Airlinesthat caused thatstock to drop ahead of earnings season.In recent years, United's new management has worked to position the longtime laggard as an industry leader. These latest results highlight the good work that has been done.Investors need to be aware that airlines are cyclical and a recession would likely send the stocks downward. But for those interested in investing in the sector, United is an attractive choice.Should you invest $1,000 in United Airlines right now?Before you buy stock in United Airlines, consider this:TheMotley Fool Stock
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Continued from the article titled 'Why United Airlines Stock Is Flying Higher Today': Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and United Airlines 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 $535,597!*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*.Story continuesSee the 10 stocks »*Stock Advisor returns as of April 15, 2024Lou Whitemanhas no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group and Southwest Airlines. The Motley Fool has adisclosure policy.Why United Airlines Stock Is Flying Higher Todaywas originally published by The Motley Fool
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This is a news article titled 'The Great Freight Recession has now lasted longer than the COVID bull market', published on 17 April, 2024. It covers the following details: The trucking industry is asking, “How much longer is the market going to remain in a recession?” (Photo: Jim Allen/FreightWaves)On March 31, 2022, FreightWaves declared that a freight recession was imminent. More than two years later, the freight market remains in one of its deepest and longest recessions in history.Our original conclusion was derived from signals from FreightWaves SONAR. Its high-frequency datasets, which track freight supply and demand in real time, indicated an imminent collapse. When FreightWaves first published the article, many were not only skeptical of the conclusion, they derided FreightWaves for the call. Even after the recession took hold, few would have guessed that the freight downturn would be as deep or as long as it has been.As we enter the third year of the Great Freight Recession, the trucking industry asks, “How much longer is the market going to remain in a recession?”Finally, the bottom has been reachedWe believe that we are now at the bottom of the market.SONAR’s Outbound Tender Rejection Index, or OTRI, measures the percentage of truckload transactions rejected by carriers. OTRI indicates that conditions are better than they were a year ago, albeit not by much.Tender rejections are a highly reliable indicator of the balance of supply and demand. The higher the rejection rate, the more load options a carrier has. The lower the rate, the fewer load options a carrier has. While some will look at the absolute value of tender rejections, we also look at them in the context of where they have been.Tender rejections are currently at 3.95%, up from the 2024 low of 3.39 on March 26 and up substantially from 2.88% a year ago.The Outbound Tender Rejection Index.To learn more about FreightWaves SONAR, clickhere.We believe that tender rejections bottomed out in late March and have steadily increased throughout April, which is historically a soft month in freight. This indicates that the 2024 low is in the rearview mirror.Slow market growth for over a yearContracted load accepted volumes, another SONAR index measuring contracted load demand,
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Continued from the article titled 'The Great Freight Recession has now lasted longer than the COVID bull market': tell us that the market has grown since January 2023.As of April 15, 2024, year-over-year contracted volumes are up 9%.Contract accepted volumes are currently down 6% compared to April 2021, which was during the peak of the COVID bull run.Contract Load Accepted Volume.To learn more about FreightWaves SONAR,click here.While a gap certainly exists between peak volumes and current volumes, the gap is narrowing. In the past year, contracted load accepted volumes have increased by 9%.Contract Load Accepted Volume.To learn more about FreightWaves SONAR,click here.The Atlanta Federal Reserve now forecasts that year-over-year GDP growth is up by 3%. In a normal growing economy, freight demand grows faster than economic growth. If the economy grows above 2% for the year, we expect that contracted load accepted volumes in 2025 will surpass the 2021 peaks.Story continuesCapacity will continue to declineThe growth in contracted load accepted volumes will occur at the same time that capacity continues to bleed out of the market.Another of the many indices in the SONAR platform is the Carrier Details Net Revocation Data, which shows the increase or decline in the number of trucking companies in the market. In the chart below, anything above zero (green) shows expansion in the number of trucking authorities, while anything below zero (red) shows a decline in the number of trucking authorities.To learn more about FreightWaves SONAR,click here.The index has been in negative territory since the fourth quarter of 2022. Capacity continues to leave the market, allowing the market to come back into balance.During the two years of the freight market’s COVID bull run, fleets built up substantial operating surpluses and were able to build strong balance sheets. This has enabled them to hang on for a long time.For much of the Great Freight Recession, trucking fleets have been running many of their miles at losses. This has forced them to tap into the financial reserves they built up during the COVID bull run.The Great Freight Recession has gone on longer than the COVID bull run, meaning that since the first days of the COVID lockdowns, truckers have operated the majority of the time in recessionary
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Continued from the article titled 'The Great Freight Recession has now lasted longer than the COVID bull market': territory. For those that remain in the market, their reserves are likely exhausted and with it, their stamina.However, for those that can continue, the tough times may be ending. The data suggests that a recovery in the balance of supply and demand will come as soon as fall 2024, but almost certainly by the spring of 2025.The postThe Great Freight Recession has now lasted longer than the COVID bull marketappeared first onFreightWaves.
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This is a news article titled 'Huge News for Tesla Stock Investors', published on 17 April, 2024. It covers the following details: Fool.com contributor Parkev Tatevosian discusses what the cost-cutting move could mean forTesla(NASDAQ: TSLA)stock investors.*Stock prices used were the afternoon prices of April 14, 2024. The video was published on April 16, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades,Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the10 best stocksfor investors to buy right now… and Tesla made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of April 15, 2024Parkev Tatevosian, CFAhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has adisclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughhis link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Huge News for Tesla Stock Investorswas originally published by The Motley Fool
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This is a news article titled '1 Amazing Artificial Intelligence (AI) Semiconductor Stock to Buy (Not Nvidia)', published on 17 April, 2024. It covers the following details: In today's video, I discuss recent updates affectingAdvanced Micro Devices(NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of April 16, 2024. The video was published on April 16, 2024.Should you invest $1,000 in Advanced Micro Devices right now?Before you buy stock in Advanced Micro Devices, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.Jose Najarrohas positions in Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has adisclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.1 Amazing Artificial Intelligence (AI) Semiconductor Stock to Buy (Not Nvidia)was originally published by The Motley Fool
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This is a news article titled 'China Is Still ASML’s Top Market Despite US Chip Gear Curbs', published on 17 April, 2024. It covers the following details: (Bloomberg) -- ASML Holding NV’s sales to China were resilient in the first quarter despite curbs on exports of high-end chipmaking equipment to the Asian nation kicking in this year.Most Read from BloombergTrump Has Only $6.8 Million for Legal Fees With Trial UnderwayTikTok to Remove Executive Tasked With Fending Off US ClaimsChina Is Front and Center of Gold’s Record-Breaking RallyTesla Spends Weekend Cutting Prices of Cars and FSD SoftwareUS Dollar’s Extended Reign Delivers Stark Wake-Up Call for MarketsChina remains ASML’s biggest market, representing 49% of system sales in the first quarter, the Dutch company said on Wednesday. By contrast, the proportion of sales from Taiwan more than halved, while the US accounted for 6%, down five percentage points from the prior quarter.ASML, Europe’s most valuable technology company, has been caught in the crosshairs of the US government’s effort to stymie China’s progress in the chip industry. The Biden administration pushed the Dutch government to introduce restrictions on exports of ASML’s immersion DUV lithography machines, its second-most capable category of machinery, to China from Jan. 1.As the US tries to restrict China’s access to cutting-edge chipmaking tools, Beijing has been buying up kit to make more mature types of semiconductors. ASML was never permitted to sell its most advanced extreme ultraviolet machines to China, but first quarter sales indicate that demand for older lithography systems has continued.“The more you put them under pressure, the more likely it is that they will double up their efforts,” ASML Chief Executive Officer Peter Wennink said last year in a Bloomberg interview.Read More: ASML Orders Plunge as Chipmakers Pause High-End Gear PurchasesASML has forecast that as much as 15% of China sales this year will be hampered by the export control measures. Still, ASML expects “strong” demand from China to continue for the rest of this year, Chief Financial Officer Roger Dassen said in an investor call after the earnings.Meanwhile, the US has been pushing the Dutch government to stop ASML from servicing and repairing restricted chipmaking equipment procured by Chinese companies
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Continued from the article titled 'China Is Still ASML’s Top Market Despite US Chip Gear Curbs': before the current sales ban.“That has been a discussion between the two governments,” Wennink said on Wednesday during the investor call. “We are providing them with information and I think it’s all being taken into consideration,” he said. Currently, there’s no servicing restrictions on ASML’s installed base in China.Strong sales in China comes amid a backdrop of slower demand from top chipmakers outside of China, such as Taiwan Semiconductor Manufacturing Co. and South Korea’s Samsung Electronics Co. as they navigate a slump in smartphone and computer sales.Story continuesCountries from Germany to the US have committed tens of billions of dollars in subsidies for chipmakers to build new wafer fabrication facilities, or fabs, in an attempt to ensure domestic supplies. South Korea this year unveiled plans for a $470 billion chipmaking hub. Many of these projects, which should boost demand for ASML equipment, are not yet under construction.(Updates with quotes from ASML’s analyst call)Most Read from Bloomberg BusinessweekHow a Massive Hack of Psychotherapy Records Revealed a Nation’s SecretsChina’s Bubble Tea Boom Creates a Half-Dozen BillionairesWhat Really Happens When You Trade In an iPhone at the Apple StoreRents Are the Fed’s ‘Biggest Stumbling Block’ in Taming US InflationThe Pentagon Wants to Give Defense Startups a Chance©2024 Bloomberg L.P.
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This is a news article titled 'Analysis-Wall Street wants answers from Musk on Tesla's affordable car', published on 17 April, 2024. It covers the following details: By Hyunjoo Jin, Norihiko Shirouzu and Chris Kirkham(Reuters) - Elon Musk has kept investors hanging since he issued cryptic social posts following an exclusive April 5 Reuters report that Tesla had scrapped its plans for a $25,000 “Model 2” electric vehicle.“Reuters is lying,” Musk wrote in one post that day, without identifying any inaccuracies.Nearly two weeks later, with no concrete updates from Musk, Tesla investors are restless. Some are demanding clear answers on the Model 2, along with Musk’s plans for arresting a sales slide amid falling electric-vehicle demand globally and rising competition from cheap Chinese EVs.Tesla’s move to lay off more than 10% of its global workforce and a handful of senior executives, made public Monday, added to shareholder jitters.“The street wants and NEEDS answers” when Tesla holds an earnings call scheduled for April 23, wrote analysts for Wedbush Securities after the layoffs were revealed. They cited a months-long “horror show” of bad Tesla news and called for a clear “strategic vision … with Model 2 a key component.”Wedbush Senior Equity Analyst Dan Ives told Reuters that Musk’s silence on the Model 2 was “gut-wrenching” to Tesla investors “because it’s so instrumental to the growth story.”Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management and a Tesla investor, put it more bluntly. “There’s no point in even investing in Tesla if they don't come out with this car,” he said.Musk and Tesla did not respond to requests for comment for this story or the April 5 report.The Street also wants clarity on another key aspect of the April 5 story: That after ditching the affordable-car project, Tesla plans to move forward with a self-driving robotaxi on the same small-car platform.Another Musk post that same day raised as many questions as answers: “Tesla Robotaxi unveil 8/8,” he wrote, implying some version of the self-driving vehicle might be ready by August, but
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Continued from the article titled 'Analysis-Wall Street wants answers from Musk on Tesla's affordable car': giving no details. Industry experts call the notion that Tesla will quickly produce a road-ready robotaxi unlikely, given the steep engineering and regulatory challenges.Tuesday evening, Musk posted again on his social media site X about Tesla's focus on self-driving vehicles: "Not quite betting the company, but going balls to the wall for autonomy is a blindingly obvious move. Everything else is like variations on a horse carriage."Since the April 5 Reuters report, some investors have cheered the idea of focusing on robotaxis instead of the Model 2. Musk’s two initial posts helped reverse losses in Tesla’s stock, which dropped 6% after the Reuters report on the affordable model.Story continuesStill, Musk’s remarks left investors guessing over what vehicle Tesla plans to build next – and, critically, on what timeline. The stock dropped again with Monday's news of the layoffs, and is now down more than 45% since a recent peak in July.Tesla remains the world's most valuable automaker with a market capitalization of about $500 billion, higher than that of Toyota, the world's biggest automaker by volume.The April 5 report on the Model 2 cited four sources with knowledge of Tesla’s strategy and company messages describing the project’s termination. Company messages reviewed by Reuters show a person described by a source as a Model 2 program manager telling employees not to inform suppliers “about program cancellation.”“You all have done incredible work and those learnings will carry over into all future programs that you work on,” the manager wrote, advising staffers to “tie things off and document things properly” and handle “remaining items for us to close out before moving on.”INVESTORS ‘AWAIT CLARITY’With no answers from Musk, analysts have issued a flurry of advisories on Tesla’s growth prospects both with the Model 2 and without it.An analysis from Deutsche Bank, echoing others, noted: “we await clarity from Tesla.” It described a Model 2 cancellation as “completely thesis-changing,” saying it would cause investors betting on Tesla’s mass-market growth to throw in the towel, making way for “AI/tech investors with considerably longer time horizons” for robotaxi development.Wed
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Continued from the article titled 'Analysis-Wall Street wants answers from Musk on Tesla's affordable car': bush sees a bleak outlook without the Model 2. Wedbush analysts wrote last week that killing the vehicle would be a “debacle” for Tesla’s growth prospects and that a robotaxi was no “magic model” to replace it.Musk had said as recently as January that Tesla would deliver the Model 2 in the second half of 2025, confirming an exclusive Reuters report on those plans. “For the company to do a 180 in the course of three months would be ‘Twilight Zone,’” said Ives, of Wedbush. Tesla, Ives said, was already late in launching the development of the long-promised affordable model.“A lot of this is self-inflicted – no adult in the room,” he said.Currently, the cheapest Tesla is the Model 3 sedan, which sells at a U.S. price of about $39,000. The automaker has cut prices for the 3 and the Model Y crossover as electric-vehicle demand has softened worldwide and China EV makers have dominated the entry-level sector.Models 3 and Y, Tesla’s only current volume sellers, are aging and due for redesigns. Tesla has struggled to produce its more expensive and experimental Cybertruck in volume, in part because of manufacturing issues with its innovative 4680 battery. Tesla told investors earlier this month that sales of all its vehicles had dropped by 8.5% in the first quarter, the first decline in nearly four years.Chinese EV makers such as BYD are already doing a brisk business in EVs selling at prices as low as $10,000 in China. Chinese smartphone and appliance maker Xiaomi shocked the industry this month with its first car, a sport sedan priced at about $30,000 that racked up more than 100,000 orders in less than a week.‘BRILLIANT’ AND ‘GUTSY’ MOVESome investors welcome the idea of canceling the Model 2 to focus on robotaxis. One fan is Gene Munster, managing partner at Deepwater Asset Management, which owns Tesla shares. Munster said he doesn’t believe Musk actually denied the April 5 Reuters report
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Continued from the article titled 'Analysis-Wall Street wants answers from Musk on Tesla's affordable car': , as many investors assumed.“He didn't mention anything about Model 2,” Munster said. “He just said Reuters is a liar. But he calls everybody liars."That elusiveness, combined with Musk’s subsequent “robotaxi unveil” post, leads Munster to believe Tesla is in fact shelving the Model 2 to focus on a robotaxi – a strategy he applauded. Munster called the move “brilliant” and “gutsy” because it could vault Tesla to the next generation of transportation. Autonomous vehicles, he said, will be “a higher-margin business by orders of magnitude.”Jake Bleicher, portfolio manager at Carson Wealth Management Group, a Tesla investor, agreed Tesla could potentially leap ahead of Chinese EV rivals with a truly autonomous vehicle. But he said Musk should have something concrete to unveil in August, given the promise implied by his “8/8” post.Musk has vowed for years that self-driving Teslas are right around the corner."If Aug. 8 rolls around and Tesla says, 'We're going live with robotaxi in five or six cities,' I think that’s enough to get the stock moving,” Bleicher said.If the progress is less tangible, he said, investors “will be scared.”“Especially with the profit margin on (Tesla) vehicles dropping dramatically over the last two years,” Bleicher said, “it’s become less about the vehicles and more about the promises that Musk makes.”(Reporting by Hyunjoo Jin in San Francisco, Norihiko Shirouzu in Austin, Texas, and Chris Kirkham in Los Angeles. Writing by Brian Thevenot. Editing by Michael Williams)
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This is a news article titled 'The Stanley Cup marketing wizard’s next project is Heydude shoes', published on 17 April, 2024. It covers the following details: Terence Reilly might not be a household name, but he played a big part in making a product that is likely already in your house into anational phenomenon.Reilly is credited withmaking the Stanley Cup a must-have item. Now he’s leaving Stanley and will try to work his magic on another brand, which already has a fairly high level of consumer appeal: Heydude shoes.It’s a return of sorts for Reilly.Crocsowns the Heydude brand, and that’s where Stanley recruited him from originally. His marketing leadership on the rubber clog shoes made them a must-have for Generation Z and others for a while, with a strong rub from social influencers. He will serve as president of Heydude, replacing Rick Blackshaw, who left the company earlier this week.“We are thrilled to be welcoming back Terence to the Crocs, Inc. family,” said Andrew Rees, CEO at Crocs,in a statement. “Terence has had tremendous success in creating and executing brand-building playbooks at both Stanley and Crocs by leveraging iconic product, scaling awareness, driving brand relevance and ultimately building communities… I am confident he is the right person to lead the Heydude Brand into its next phase of growth.”Heydude shoes—which are lightweight and comfortable, but are hardly fashionable—have a following with some teens, but the brand hasn’t broken out like Crocs had hoped it would when it acquired it in 2021. Sales increased 6% last year, less than half of the increase Crocs saw.Rees, on an earnings call in February, admitted the company had oversaturated the market with Heydude shoes in late 2022 and early 2023. Despite that, brand awareness only reached 32%, which Rees called “low by any global brand standards.”This story was originally featured onFortune.com
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This is a news article titled 'Best Artificial Intelligence (AI) Stock: Nvidia vs. Intel vs. AMD', published on 17 April, 2024. It covers the following details: In today's video, I discuss bullish and bearish points forNvidia(NASDAQ: NVDA),Intel(NASDAQ: INTC), andAdvanced Micro Devices(NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the market prices of April 16, 2024. The video was published on April 16, 2024.Should you invest $1,000 in Nvidia right now?Before you buy stock in Nvidia, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Jose Najarrohas positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel. The Motley Fool has adisclosure policy.Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe throughtheir linkthey will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.Best Artificial Intelligence (AI) Stock: Nvidia vs. Intel vs. AMDwas originally published by The Motley Fool
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This is a news article titled 'Nio Stock Has 33% Upside, According to 1 Wall Street Analyst', published on 17 April, 2024. It covers the following details: China is the largest automotive market in the world and has been an early adopter of electric vehicles (EVs). But competition is growing, and one Wall Street analyst thinks that could make it more painful for investors in Chinese EV makerNio(NYSE: NIO).Macquarie Equity Research analyst Eugene Hsiao isn't bullish on Nio's stock, but he does think it has dropped too far. He rates it "neutral" but sees share prices getting back to $5 over the next 12 months. That would be a gain of 30% for investors from its recent level.EV demand and rising competitionThe stock has dropped as EV demand has slowed in China and elsewhere. Nio shares are down by nearly 60% so far this year. Investors have fretted that the timing of the demand drop doesn't bode well for smaller EV makers like Nio just as competitive offerings are increasing.Hsiao believes the Chinese EV market has matured enough that successful EV makers will now have to tap a larger market focused on lower-priced vehicles. He summarized it by saying: "China's EV market is now well past the early adopter stage of the S-curve and firmly into mass adoption. This shift means previously niche start-up EV pure plays need to chase volume in the mass market."Nio management also likely believes that to be the case. The company plans to reveal a new mass market sub-brand next month. If it follows in line with other Chinese EV makers launching lower-priced brands, it could offer vehicles priced as low as about $20,000.Theanalyst is more bullishon other Chinese EV makers, however, particularly those that offer hybrid vehicles. That's why he isn't recommending that investors buy Nio right now. But Nio also has acompetitive advantage from its battery swapand other technologies. And the analyst still sees meaningful gains ahead for Nio stock.Investors who think Nio can successfully add a lower-priced brand could do well to buy shares now.Should you invest $1,000 in Nio right now?Before you buy stock in Nio, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Nio wasn’t
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Continued from the article titled 'Nio Stock Has 33% Upside, According to 1 Wall Street Analyst': one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $526,933!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.Story continuesSee the 10 stocks »*Stock Advisor returns as of April 15, 2024Howard Smithhas positions in Nio. The Motley Fool has positions in and recommends Nio. The Motley Fool has adisclosure policy.Nio Stock Has 33% Upside, According to 1 Wall Street Analystwas originally published by The Motley Fool
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This is a news article titled 'Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slides', published on 17 April, 2024. It covers the following details: Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock SlidesThe Travelers Companies(NYSE:TRV) reported a mixed first quarter, with earnings lagginganalyst' expectations. Core income per share reached $4.69 from $4.11 a year ago, missing the$4.90 consensus forecast. Net income per share rose to $4.80 from $4.13 a year earlier.The stock declined after the results. The New York-based company offers auto, home, and business property casualty insurance.For the first quarter, net written premiums increased by 8% to $10.18 billion, while total revenues also increased 16% Y/Y to $11.23 billion, beating the Street consensus of $10.51 billion. The company attributed performance to strong profitability, production in all three segments, and higher investment income.The quarter included an elevated level of catastrophe losses of $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter.Catastrophe losses primarily resulted from severe wind and hail storms in the central and eastern regions of the United States.The company's underlying combined ratio fell from 90.6% to 87.7% in the quarter. The lower the ratio, the more profitable the insurance company, and vice versa.The quarterly net investment income increased 28% to $846 million pre-tax ($698 million after-tax). Income from the fixed-income investment portfolio increased over the prior year's quarter due to a higher average yield and growth in fixed-maturity investments.Dividend:The Board declared a 5%growth in the regular quarterly dividend to $1.05 per share.Travelers Companies stock gained over 30% in the last 12 months. Investors can gain exposure to the stock viaInvesco KBW Property & Casualty Insurance ETF(NASDAQ:KBWP) andIShares U.S. Insurance ETF(NYSE:IAK).Price Action:TRV shares are down 3.20% at $215.98 premarket on the last check Wednesday.Photo via Wikimedia
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Continued from the article titled 'Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slides': Commons"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro -Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?This articleElevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slidesoriginally appeared onBenzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This is a news article titled 'Netflix Stock Has a Lot to Prove This Week', published on 17 April, 2024. It covers the following details: If you're aNetflix(NASDAQ: NFLX)investor -- like me -- it's OK to be excited and nervous. You have every right to be excited. The stock is beating the market with its 27% gain this year, more than doubling if we stretch the starting line to the beginning of last year.You should also be nervous because it reports its first-quarter results shortly after Thursday's market close. Expectations are high, and with great upticks come great responsibilities. Netflix will need another strong financial update if it wants to build on its stellar gains over the past 15 months.Leave the world behindMomentum is on the side of the bulls. Netflix stock hit another 52-week high this month, something that it has now done for six consecutive months. But this isn't an all-time high for the premium digital video pioneer. Netflix is still 12% away from taking out the all-time peak it scored in late 2021. With the stock's tendency to move sharply higher or lower after fresh financials, it could be there by the end of this week if things go right.The problem with the bubbly upbeat scenario is that Netflix itself offered up rosy guidance when it announced its fourth-quarter numbers back in January. Netflix was targeting $9.24 billion in revenue for the first three months of this year. The 13.2% year-over-year increase would be its biggest top-line jump in more than two years.This is a better story at the other end of the income statement. Netflix is starting to cash in on the fruits of scalability. It's at the point now where the platform was able to start cracking down on password sharing without shifting into reverse on subscriber growth. The 260.3 million accounts it was serving worldwide by the end of 2023 is a 13% increase, its largest quarterly jump in nearly three years.Good luck canceling Netflix. You'll find yourself on the outside of coworker and friend conversations about the widely watched shows and films on the service. Folks aren't flinching at price increases and the password sharing restrictions at Netflix, and that's padding its profitability.Its guidance calls for $1.976 billion in earnings, or $4.49 a share
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Continued from the article titled 'Netflix Stock Has a Lot to Prove This Week': . Its projected operating margin of 26.2% would be the strongest showing since the first quarter of 2021.Image source: Getty Images.Don't look upWall Street is scrambling to catch up to the ascending share price. This young week alone, the market has seen Macquarie and Guggenheim boost their price targets by $90 and $100, respectively. Analysts tracking the company seem to think that it's going to be a strong report, and they want to win style points by ramping up their bullishness before the report.Things can still fall apart for the bellwether ofstreaming services stocks. A stock doesn't double in the span of 15 months without the ability to fall if the company itself stumbles. Growth should be fine on the top line. It's the bottom line where things can fall apart. Netflix has made investing in games, live content, and sports-adjacent programming this year. The push to expand its cheaper ad-supported memberships could squeeze margins as folks pay less and Netflix invests in digital marketing initiatives.Bears can also argue that Netflix isn't perfect despite its lofty current share price. It does miss to the downside on its guidance from time to time. It has also misfired in the past, when it overestimates its ability to push monthly membership rates higher.But you still don't want to bet against Netflix. It's a dominant player in a growing market. Investors tend to have happy Hollywood endings in similar scenarios. Thursday afternoon can't come soon enough for the excited -- and nervous -- Netflix shareholders.Should you invest $1,000 in Netflix right now?Before you buy stock in Netflix, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $526,933!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio
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Continued from the article titled 'Netflix Stock Has a Lot to Prove This Week': , regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Rick Munarrizhas positions in Netflix. The Motley Fool has positions in and recommends Netflix. The Motley Fool has adisclosure policy.Netflix Stock Has a Lot to Prove This Weekwas originally published by The Motley Fool
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This is a news article titled 'Chewy Stock: Buy, Sell, or Hold?', published on 17 April, 2024. It covers the following details: Pet e-commerce companyChewy(NYSE: CHWY)went public in 2019 and ended its first day of trading at about $35 per share. Considering it trades at around $18 today, I bet investors wish they had sold Chewy stock on day one.In early 2021, Chewy stock traded at about $120 per share -- I'msureinvestors wish they had sold then, too.But when determining what to do with Chewy stock today, selling should be completely ruled out of the equation. This company has a lot going for it, and shareholders will want to hold on for the ride, at least. But there's good reason to buy as well, as I'll explain.What Chewy has done (and is doing) rightRetaile-commercecan be a surprisingly low-margin business. For evidence, consider the world's largest e-commerce player,Amazon. The company's North American and international business segments combined to bring in $484 billion in net sales in 2023. These operations are mostly e-commerce.These two segments for Amazon only earned $12 billion in full-year operating income. That's a paltry operating margin of 2.5%. And consider that Amazon has the requisite scale to be more profitable than its peers. Other e-commerce companies don't have it so good.In short, e-commerce margins are thin because consumers expect low prices, wide availability, and fast shipping. And companies consequently have high shipping-and-logistics expenses. But Chewy has found a way to overcome the challenge.In 2020, Chewy launched automation enhancements at a fulfillment center, and it has continued upgrading its facilities since then. Its fifth automated fulfillment center is opening in the first half of this year.Automation efforts have resulted in more efficient business operations for Chewy and have served as an undeniable profit-enhancing catalyst. The chart below shows a sharp increase in profitability when the first automated fulfillment center went live.CHWY Revenue (TTM) ChartOn its balance sheet, Chewy has $1.1 billion in cash, cash equivalents, and marketable securities, and it doesn't have any long-term debt. That's a strong position to be in. And
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Continued from the article titled 'Chewy Stock: Buy, Sell, or Hold?': now the business is basically operating at breakeven. In other words, Chewy should at least remain as financially strong as it is right now. And with further operational improvements, it could get even stronger.The sky is still the limit for its core e-commerce business. According to a recent survey from the American Pet Products Association, 87 million U.S. households have a pet. By comparison, Chewy only has 20 million active customers.Therefore, there's clearly room to grow for Chewy, the top pet e-commerce company. For this reason (and given its financial strength), I don't see a compelling reason to sell the stock today.Story continuesChewy is playing a powerful wild cardThere's room for growth in its e-commerce business. Growth has admittedly stalled -- its active customer base has declined by nearly 2% in the past year, which is concerning. But the company also has an opportunity to get more money from existing customers by offering new products and services.Chewy is indeed offering new products and services in the pet healthcare space, which is an intriguing long-term wild card for investors. This includes thelaunch of clinicscalled Chewy Vet Care. CEO Sumit Singh said, "Our thoughtfully designed clinics will be unlike anything in the market." The company will open at least four clinics this year.Another new business venture is its nascent software operation. The company is looking to provide operating-system software to vet clinics. Not only is this an opportunity in itself, but it could also drive better sales for its e-commerce business because of the built-in buying incentives with its software.The pet healthcare space is huge and growing. And by staking its claim, Chewy is hoping it can meaningfully grow its business by winning more sales from existing customers. This is called "wallet share," and it could lead to substantial upside for this business if things go right.This potential is why I believe that Chewy shareholders should at least keep holding for now -- and other investors should consider buying. Not only is the company financially strong and has upside opportunity, but the stock is also quite inexpensive, trading at less than 0.7 times its trailing sales.Investors won't find many good opportunities that are this cheap. Therefore, Chewy stock is one to buy today for the long haul.Should you invest $1
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Continued from the article titled 'Chewy Stock: Buy, Sell, or Hold?': ,000 in Chewy right now?Before you buy stock in Chewy, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Chewy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Jon Quasthas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Chewy. The Motley Fool has adisclosure policy.Chewy Stock: Buy, Sell, or Hold?was originally published by The Motley Fool
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This is a news article titled 'Time to Buy Chipotle Before Its Massive Stock Split?', published on 17 April, 2024. It covers the following details: A lot of people seem to care aboutstock splits, so much so that we even have adedicated calendarfor them at The Motley Fool. A huge split is coming up forChipotle Mexican Grill(NYSE: CMG), which is doing a 50-to-1 exchange, estimated to occur on June 26. Investors have gotten excited and sent shares of Chipotle close to all-time highs at around $3,000 a share.I am here to tell you that stock splits don't matter. A stock is worth the future cash it will distribute back to shareholders, discounted back to today. For Chipotle, it is irrelevant whether it has one share that trades at a price of $80 billion (its current market capitalization) or 80 billion shares trading for $1. An investor will make money if the company generates more in earnings.Forgetting the irrelevant stock split, how does Chipotle stack up when doing fundamental analysis? Should you buy the stock at current prices? Let's take a closer look and find out.A lot of room for store count growthAs the premier fast-casual restaurant chain for Mexican grub, Chipotle now has 3,437 store units, mostly in the United States. Over the long term it plans to open 7,000 stores in North America, and it is starting to dip its toe into international markets. Specifically, it has a few stores opened in Western European markets, and just launched a partnership to bring Chiptole to Dubai and the Middle East.While it is unclear how many locations Chipotle plans to build internationally, I think it is reasonable for the company to hit a few thousand at some point over the next decade or two, especially if it moves to other markets such as Australia. That would bring it to a total addressable market of at least 10,000 restaurants, which I don't think is crazy.McDonald's, for reference, has over 40k locations worldwide.How much would this mean in sales? Today, the average Chipotle generates $3 million in annual sales, a number that has grown at a single-digit rate in recent years as the company keeps up with inflation. Eventually, Chipotle should hit an average restaurant sales level of $3.5
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Continued from the article titled 'Time to Buy Chipotle Before Its Massive Stock Split?': million. Apply that to 10,000 locations and you have $35 billion in annual sales compared to $10 billion today. Of course, there are many years of growth needed to hit these sales figures, but Chiptole has a clear line of sight to achieving these growth goals.Can profit margins keep moving higher?Okay, we have some estimates on Chipotle's sales potential. Now let's move to what really matters to investors: profits. Chipotle has done a great job in recent years to expand its operating margin, recovering back to 16.5% in the last 12 months. It has taken almost 10 years for the company to recover from its food-borne sickness outbreak, when profit margins were pushing toward 20%.Over the long term, investors should expect some small levels of operating leverage as Chipotle further scales around the globe. Don't expand massive margins from a restaurant concept, though. There will always be major labor and food costs for Chipotle, which will likely keep its profit margins in the 15%-20% range.Assuming Chipotle can hit an 18% consolidated margin at its $35 billion future sales estimate at 10k locations, the company will be generating $6.3 billion in annual profits at some point down the line.CMG Operating Margin (TTM) ChartDon't worry about a stock split, focus on valuationAgain, investors shouldn't worry about a 50-to-1 stock split for Chipotle. It has no bearing on the intrinsic value of Chipotle, how many people are going to visit its stores, or any of its input costs. What matters is how much it will earn in cash for shareholders in the coming years.I think Chipotle can generate over $6 billion in earnings once it hits 10,000 locations. At a current market cap of $80 billion, that would give Chipotle stock a cheap-looking price-to-earnings multiple (P/E) of 13. The problem is that it will take Chipotle many years to reach this earnings level. Even if it ups its store opening rate to 400 a year (it opened 271 in 2023), it will
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Continued from the article titled 'Time to Buy Chipotle Before Its Massive Stock Split?': take Chipotle over 16 years to reach 10,000 locations worldwide.This is not an overnight growth story likeNvidia. Chipotle is a good business, but one where 10-plus years of earnings growth is already priced in. Forget the stock split -- this is why you should avoid buying shares of Chipotle stock. The stock is overvalued right now and likely to disappoint investors who buy today.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 $526,933!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024Brett Schaferhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Nvidia. The Motley Fool has adisclosure policy.Time to Buy Chipotle Before Its Massive Stock Split?was originally published by The Motley Fool
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This is a news article titled 'Got $5,000? These 3 Growth Stocks Are on Sale Right Now', published on 17 April, 2024. It covers the following details: Do you have $5,000 that you're looking to invest in the stock market today? Below are some solid businesses you can invest in and which have promising long-term prospects but whose shares haven't been doing all that well this year.Shares ofApple(NASDAQ: AAPL),PDD Holdings(NASDAQ: PDD), andUnitedHealth Group(NYSE: UNH)are all in negative territory, and here's why that has created some great buying opportunities for investors.AppleCash-rich tech giant Apple has a wonderful business. It's Warren Buffett's top investment and for good reason -- it has a strong brand and fantastic financials behind it. Consumer demand for its products has remained relatively resilient even though economic conditions aren't ideal for a business that sells high-priced products.Last quarter, Apple's product revenue was flat at around $96.5 billion for the last three months of 2023. But it's the company's other segment, services, which is what should make investors bullish on the business. Service revenue totaled $23.1 billion and rose 11% year over year. Once Apple has consumers into its ecosystem, it can be hard (i.e., costly) for them to leave.As the business grows its service business, such as potentially launching a chatbot in the future, it has the potential to expand on these opportunities. That means even if its products may not be generating strong growth in the future, they may not need to given the potential for the service segment to pick up the slack.Shares of Apple are down 9% this year, but with the stock trading at a more modest 28 times earnings, now may be a prime time to invest in the business. Its strong 26% profit margins and phenomenal brand make Apple a stock worth adding to your portfolio whenever it's on sale. It can be a great place in which to invest $5,000 today.PDD HoldingsThe worst-performing stock on this list is PDD Holdings -- it's down 21% year to date. The China-based company comes with inherent risks, such as the worry that the Chinese government may add regulations which restrict its growth prospects at home and abroad. That risk is one of the reasons many Chinese stocks
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Continued from the article titled 'Got $5,000? These 3 Growth Stocks Are on Sale Right Now': aren't the hot buys they might otherwise be.But if you're comfortable with that risk, then PDD could make for a potential bargain buy in the long run. It trades at just 20 times earnings, and that multiple falls to 13 when looking at its future profits and what analysts expect from the business in the year ahead. In the longer run, it looks even cheaper, with a price-to-earnings growth, orPEG ratio, of just 0.6. Normally, a stock that is trading with a PEG of less than one is considered cheap; PDD is arguably a bargain.Story continuesThe company behind the popular Temu online marketplace reported revenue of $34.9 billion last year, growing at a rate of 90%. Its operating profit rose at an even higher rate of 93%, coming in at $8.3 billion.Temu's continued success and popularity make PDD Holdings a great growth stock to buy and hold.UnitedHealth GroupHealth insurance giant UnitedHealth Group has been facing some bad press of late. A data breach involving its subsidiary Change Healthcare is concerning enough that a federal agency will investigate into the hack.Unfortunately, data breaches aren't uncommon these days. While they are concerning and can be problematic in the short term, they normally don't weigh on a company's long-term prospects.This is an example of a good, modestly growing business that investors can buy and hold for years. In 2023, UnitedHealth reported revenue of $371.6 billion, which rose by 15% year over year. And its operating earnings of $32.4 billion increased by 14%.What I like about UnitedHealth as a long-term buy is its dominance and importance in the health insurance industry. In the years ahead as the number of seniors in the U.S. increases, there will be even more demand for its products and services. It also pays investors a dividend that yields 1.7%, which is higher than theS&P 500average of 1.4%.Shares of UnitedHealth are down 15% this year. At aprice-to-earnings(P/E) multiple of just 18, this modestly priced stock can make for an excellent investment to buy and forget about
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Continued from the article titled 'Got $5,000? These 3 Growth Stocks Are on Sale Right Now': .Should you invest $1,000 in Apple right now?Before you buy stock in Apple, consider this:TheMotley Fool Stock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider whenNvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $526,933!*Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice hasmore than quadrupledthe return of S&P 500 since 2002*.See the 10 stocks »*Stock Advisor returns as of April 15, 2024David Jagielskihas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends UnitedHealth Group. The Motley Fool has adisclosure policy.Got $5,000? These 3 Growth Stocks Are on Sale Right Nowwas originally published by The Motley Fool
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This is a news article titled 'Is Iovance Biotherapeutics Stock a Buy Now?', published on 17 April, 2024. It covers the following details: Is this the start of a comeback forIovance Biotherapeutics(NASDAQ: IOVA)? Though the small-cap biotech has significantly trailed the broader market in the past five years, its shares are up by 50% since 2024 started. Iovance is making progress on several fronts (more on that below).It's no wonder that many investors are increasingly excited about the company's direction. But should long-term investors put their hard-earned money into this stock today? Let's find out.IOVA ChartIOVAdata byYChartsWhat's going on with Iovance Biotherapeutics?Iovance Biotherapeutics specializes in oncology. The company's platform uses the power of the body's defenses against cancer. Tumor-infiltrating lymphocytes (TILs) are a type of cell that can recognize and kill cancer cells. Iovance Biotherapeutics' approach seeks to remove TILs from cancer patients' bodies, grow them by the billions, and reinsert them into patients. Iovance Biotherapeutics currently has two products on the market.The most recent to earn approval is Amtagvi, which belongs to the TIL family and earned the nod in February. Amtagvi became the first therapy approved by the U.S. Food and Drug Administration (FDA) for previously treated advanced melanoma, a form of skin cancer. The manufacturing process for Amtagvi takes about 34 days, on average, so revenue for it won't ramp up as fast as it would if it was a simple oral pill.However, considering that it is currently the only game in town for advanced melanoma patients, it could become successful. Iovance estimates that there are roughly 15,000 cases of advanced melanoma in the U.S. every year and 8,000 deaths.The company is also looking to expand, with planned regulatory submissions for Amtagvi in Europe and Canada sometime this year. Iovance will also go after the Australian market next year. Some analysts believe that Amtagvi could generate sales of $846 million by 2029. Last year, Iovance generated just about $1.2 million in sales, so things are about to improve
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Continued from the article titled 'Is Iovance Biotherapeutics Stock a Buy Now?': significantly on that front.What does the future hold?Iovance Biotherapeutics is running a phase 3 clinical trial for Amtagvi in targeting front-line (or non-previously treated) advanced melanoma. The company is also conducting several other pivotal studies. With well over a dozen ongoing programs, Iovance's pipeline is pretty deep for abiotech companywhose market capitalization is just $3.39 billion. That doesn't guarantee the company's success, but it is clearly an innovative biotech.There will be at least two problems for Iovance Biotherapeutics. First, will it have enough money to fund its expensive TIL manufacturing process? Second, can the company turn a profit anytime soon? Regarding the first issue, Iovance had $485.2 million in cash and equivalents as of February. The biotech estimates that the money it currently has, coupled with revenue from Amtagvi, will be enough to run its operations until the second half of next year.Story continuesThat's not very long, but Iovance shouldn't have too much trouble finding new funding sources, in my view. But can the company turn a profit anytime soon? Of note, Iovance Biotherapeutics improved on the bottom linelast year. Its net loss per share of $1.89 was better than the $2.49 net loss reported in 2022. However, the company's expenses should increase due to manufacturing costs related to Amtagvi. Some of the medicine's revenue will more than cover these costs, so Iovance Biotherapeutics could still get close to profitability.That said, investors will have to wait at least a few more years to see green on the bottom line. With that as a backdrop, Iovance Biotherapeutics looks like a somewhat risky bet, but one that could pay off with massive gains down the road, provided its platform bears fruit. I wouldn't advise this stock to risk-averse investors, but mildly aggressive ones may want to consider initiating a small position in the biotech stock.Should you invest $1,000 in Iovance Biotherapeutics right now?Before you buy stock in Iovance Biotherapeutics, consider this:TheMotley Fool Stock Advisoranalyst team just identified
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Continued from the article titled 'Is Iovance Biotherapeutics Stock a Buy Now?': what they believe are the10 best stocksfor investors to buy now… and Iovance Biotherapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisorprovides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of April 15, 2024Prosper Junior Bakinyhas no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iovance Biotherapeutics. The Motley Fool has adisclosure policy.Is Iovance Biotherapeutics Stock a Buy Now?was originally published by The Motley Fool
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This is a news article titled 'Amazon, Apple initiated: Wall Street's top analyst calls', published on 17 April, 2024. It covers the following details: Amazon, Apple initiated: Wall Street's top analyst callsThe most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades:TD Cowen upgradede.l.f. Beauty(ELF)to Buy from Hold with a price target of $190, down from $220. The firm sees the potential for e.l.f. to double its business by fiscal 2027 with shelf space and international expansion as the driving forces.HSBC upgradedDanaher(DHR)to Buy from Hold with a price target of $280, up from $250. HSBC's supply chain analysis suggests the de-stocking effects as well as order books might be on a recovery path for the life sciences tools sector.Wells Fargo upgradedOmnicom(OMC)to Overweight from Equal Weight with a price target of $106, up from $91. The firm sees upside to the company's organic growth from new business, media trends and "Flywheel."Morgan Stanley upgradedAntero Resources(AR)to Overweight from Equal Weight with a price target of $36, up from $26. The firm sees the company providing attractive leverage to rising gas prices and leading exposure to the growing liquified natural fairway in the Gulf Coast.Guggenheim upgradedGroup 1 Automotive(GPI)to Buy from Neutral with a $305 price target, calling it the "best positioned dealer" to navigate the current landscape, which is "somehow trading at [the] lowest multiple."Top 5 Downgrades:Northcoast downgradedBoeing(BA)to Sell from Neutral with a $140 price target. The firm expects Boeing's quarterly earnings report in two weeks to prompt concerns about the company's underlying fundamentals and ultimately shift investor focus to liquidity and acquisition concerns.JPMorgan downgradedFortive(FTV)to Neutral from Overweight with a price target of $90, down from $95. The firm also removed the shares from its Analyst Focus List. The company's Precision Technologies order trends have remained sluggish so far this year, with
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Continued from the article titled 'Amazon, Apple initiated: Wall Street's top analyst calls': sales likely down through the first half of 2024 despite support from an excess backlog that is close to being exhausted, JPMorgan says.Jefferies downgradedUrban Outfitters(URBN)to Underperform from Hold with a price target of $32, down from $42. The firm's latest data shows a "notable deceleration" in rolling three-month foot traffic to all three of Urban's brands.Wells Fargo downgradedEQT Corporation(EQT)to Equal Weight from Overweight with a price target of $37, down from $48. The firm acknowledges that the recently announced merger with Equitrans Midstream(ETRN)should position the company as a unique "Gas E&P + Midstream" entity, resembling a mini super-major, but says it is clear the E&P and midstream investor communities will take some time to embrace this integrated model, versus the prevailing preference for pure-play narratives.Piper Sandler downgradedMarsh McLennan(MMC)to Neutral from Overweight with an unchanged price target of $211. The shares are now "reasonably valued" and there is not much in the way of future catalysts that will change that, the firm says.Story continuesTop 5 Initiations:Maxim initiated coverage ofAmazon.com(AMZN)with a Buy rating and $218 price target. The firm believes the company will be able to exploit consumer internet trends that include advertising, artificial intelligence, cloud computing, healthcare, logistics, and over-the-top, or OTT, video.Maxim initiated coverage ofApple(AAPL)with a Hold rating and $178 price target. Apple is too dependent on China, from a sales and supply-chain standpoint, and it is overweight a single product, the iPhone, when it comes to its near-term operating results, the firm says.Maxim initiated coverage ofBeyond(BYND)with a Buy rating and $50 price target. The firm contends that the company will be able to exploit the Consumer Internet trends of 2024 that include international expansion as well as Blockchain and Mobile opportunities.Raymond James initiated coverage ofGE Vernova(GEV)with an Outperform rating and $1
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Continued from the article titled 'Amazon, Apple initiated: Wall Street's top analyst calls': 60 price target. The firm looks at Vernova as a mid-single-digit growth story, with power lagging behind wind and electrification.Mizuho initiated coverage ofRoyal Caribbean(RCL)with a Buy rating and $164 price target. Royal has a unique mix of quality ship assets, as well as differentiated destinations, the combination of which drives upside potential to estimates, says the firm.
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This is a news article titled 'TSMC Capex Outlook Key to Next Phase of $340 Billion Stock Rally', published on 17 April, 2024. It covers the following details: (Bloomberg) -- With Taiwan Semiconductor Manufacturing Co. still trading at pedestrian valuations even after surging to a record high, there is potential for its upcoming results to drive the stock even higher.Most Read from BloombergDubai Grinds to Standstill as Cloud Seeding Worsens FloodingTesla Asks Investors to Approve Musk’s $56 Billion Pay AgainChina Tells Iran Cooperation Will Last After Attack on IsraelRed Lobster Considers Bankruptcy to Deal With Leases and Labor CostsWhat If Fed Rate
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This is a news article titled 'What's Going On With Mobileye Global Stock Wednesday?', published on 17 April, 2024. It covers the following details: What's Going On With Mobileye Global Stock Wednesday?Mobileye Global Inc(NASDAQ:MBLY) stock is trading higher Wednesday amid reports of the company winning orders to ship 46 million of its EyeQ6 Lite assisted-driving chips.The chips, which are in significant demand across global markets, will be incorporated into vehicles launching mid-year.The company’s executive vice president of business strategy and development, Nimrod Nehushtan, highlighted that this figure represents current wins, anticipating further growth and deployment in the coming years, Reuters reports.While Mobileye has kept its customer list confidential due to non-disclosure agreements, known clients includeprominent automotive manufacturerslikeVolkswagenandPorsche, according to Reuters.The EyeQ6 Lite system represents Mobileye’s mass-market offering, enabling vehicles with basic assisted driving features such as automated cruise control and lane changes.Nehushtan emphasized the EyeQ6 Lite’s capability to interpret text on road signs and its significant computing power upgrade—4.5 times that of its predecessor, made possible byTaiwan Semiconductor Manufacturing Co’s(NYSE:TSM) 7-nanometer process.Additionally, the chip is power-efficient and cost-effective while supporting global five-star safety ratings.It includes an 8-megapixel camera offering a 120-degree field of vision for improved environmental detection. Mobileye also mentioned its more advanced EyeQ6 High chip, which is slated for volume production early next year.Mobileye reportedfourth-quarter revenuegrowth of 13% year-on-year in January to $637.0 million, missing the Street consensus estimate of $639.8 million. Adjusted EPS of $0.28 beat the Street consensus estimate of $0.27.Mobileye stock plunged over 30% in the last 12 months. Investors can gain exposure to the stock viaFirst Trust Nasdaq Artificial Intelligence And Robotics ETF(NASDAQ:ROBT) andVanguard Extended Market ETF(NYSE:VXF).Price Action: MBLY shares are trading higher by 2.72% at $30.95 in premarket on the last check Wednesday."ACTIVE
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Continued from the article titled 'What's Going On With Mobileye Global Stock Wednesday?': INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro -Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?MOBILEYE GLOBAL (MBLY): Free Stock Analysis ReportThis articleWhat's Going On With Mobileye Global Stock Wednesday?originally appeared onBenzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This is a news article titled 'No landing, no Fed rate cuts: the markets' new bet on 2024', published on 17 April, 2024. It covers the following details: Federal Reserve Chairman Jerome Powell is tasked with a unique and sharply difficult challenge in American public life: talking about the success of the U.S. economy while simultaneously apologizing for it.The Fed has a twin mandate, to deliver some sort of mythical ideal called "price stability," aligned with an equally ephemeral notion of "full employment" while playing its informal role as the flag-bearer for bullishness on Wall Street.Powell's odd tone, reflecting both sides of that mandate, was in stark evidence earlier this week during a speech in Washington.In his last public appearance before the Fed's next policy meeting later this month, Powell seemed pained to note that faster inflation, tied to a stronger domestic economy, would likely mean higher lending rates into the summer and beyond."Right now, given the strength of the labor market and progress on inflation so far, it's appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us," Powell told an audience of economists, in full knowledge that he actually was speaking to investors on Wall Street and beyond.Fed Chairman Jerome Powell could be preparing for a 'no landing" scenario for the red-hot U.S. economy.Bloomberg/Getty ImagesFed Vice Chairman Philip Jefferson was even more succinct, spelling out the likely path for rates and the economy in a separate event at the International Research Forum on Monetary Policy in Washington."My baseline outlook continues to be that inflation will decline further, with the policy rate held steady at its current level, and that the labor market will remain strong, with labor demand and supply continuing to rebalance," he said.For traders, September is the new JuneTraders reacted as you would fully expect, by dumping U.S. Treasury bonds — sending their yields sharply higher — and paring bets on any Fed interest-rate cuts until at least September, according to the CME Group's FedWatch.Benchmark 10-year Treasury note yields, in fact, tested the 4.7% mark, a level seen less than a handful of times since the global financial crisis, while 2-year notes briefly topped 5%, a level more than 3.7 times higher than the current dividend yield on the S&P 500.Powell's pal
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