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3 High-Potential Stocks That Could Turn Into Multi-Baggers 2024-08-13 15:10:00+00:00 - For most investors, the best fit for their capital is a passive index fund or mutual fund, which outsources their financial future to the hands of the stock market, often the S&P 500. While this is the surefire way to build capital over the long term, another way could provide a faster path to wealth without necessarily added risks. Warren Buffett understood this. By picking individual stocks, as long as they fit certain profitability and growth criteria, Buffett grew his wealth at over 20% a year for several decades, making him the richest man in the world at one point. Replicating Buffett’s track record might not be realistic, but being 10% as good as the best out there will still end up being life-changing. On that note, investors can pick up on the few characteristics that Buffett looks for before considering buying a business. Get Walmart alerts: Sign Up First is the return on invested capital (ROIC) rate, driven by both steady and predictable revenues and a high gross margin, enabling capable management to compound this leftover capital for investors. Predictable cash flow software names like Alphabet Inc. NASDAQ: GOOGL, China’s biggest E-commerce player, Alibaba Group NYSE: BABA, and a simple grocery play for the consumer staples sector like Sprouts Farmers Market Inc. NASDAQ: SFM all fit this profile. High ROIC Fuels Google's Double-Digit Upside Potential Alphabet Today GOOGL Alphabet $164.16 +1.87 (+1.15%) 52-Week Range $120.21 ▼ $191.75 Dividend Yield 0.49% P/E Ratio 25.18 Price Target $203.74 Add to Watchlist One of the perks of being a big software company like Google is that cash flows start to become predictable, as subscriptions and advertising revenue are a less cyclical way to navigate the market’s volatility. Google’s business model allows it to manage costs to a point of predictably having a 57.6% gross margin, leaving plenty of capital to work with. Management uses this capital to reinvest at high return rates, which reach an ROIC of over 25% on average for the past five years. ROIC matters because annual stock price performance tends to match the long-run ROIC rate, so investors can now start to get closer to Buffett’s 20% or so annual return and compound. Alphabet Stock Forecast Today 12-Month Stock Price Forecast: $203.74 24.11% Upside Moderate Buy Based on 35 Analyst Ratings High Forecast $240.00 Average Forecast $203.74 Low Forecast $165.00 Alphabet Stock Forecast Details Looking at the stability and growth of the business, Wall Street analysts now forecast up to 13.1% earnings per share (EPS) growth for Google in the next 12 months. While this may not be the most aggressive growth rate, it is significant considering that Google’s size is over $2 trillion today. Leaning on these trends, BMO Capital Markets has set a $222 a share price target for Google stock, daring it to rally by as much as 36% from its current level. Considering the stock already trades at 89% of its 52-week high, this also represents a further vote of confidence in the potential momentum the company can deliver. China's Growth Momentum Puts Alibaba Stock in the Spotlight Alibaba Group Today BABA Alibaba Group $81.10 +0.19 (+0.23%) 52-Week Range $66.63 ▼ $96.68 Dividend Yield 1.21% P/E Ratio 18.90 Price Target $109.09 Add to Watchlist While the United States economy has been struggling with slowing inflation, throwing the manufacturing sector into a 21 consecutive-month contraction, China has been doing the opposite. Reporting accelerating growth in inflation in every month of 2024 will help consumer discretionary stocks like Alibaba. Knowing this, legendary investor Michael Burry (who called the 2008 financial crisis) has made both Alibaba and JD.com Inc. NASDAQ: JD his largest holdings today. Ray Dalio joins Burry in the optimistic sentiment for China, as he has been accumulating positions in the iShares MSCI China ETF NASDAQ: MCHI since 2023. Alibaba Group Stock Forecast Today 12-Month Stock Price Forecast: $109.09 34.23% Upside Moderate Buy Based on 15 Analyst Ratings High Forecast $135.00 Average Forecast $109.09 Low Forecast $85.00 Alibaba Group Stock Forecast Details Now, a 37.7% gross margin for Alibaba will place the company among the top retail and e-commerce names today. Being able to keep so much capital from each sale, management is taking advantage of the low business cycle by allocating up to $25 billion to share buybacks. These programs represent over 13% of the company’s market capitalization. While ROIC rates are below 10% today, as China's stocks have been severely compressed in the cycle, management is putting aside enough capital to make this stock a potential multi-bagger once the cycle turns up and the ROIC returns to historical levels. Knowing this, Wall Street forecasts 11.3% EPS growth, leading to the $116 price target set by Jefferies Financial Group, which calls for a 43.3% upside from where the stock sits today. Sprouts Farmers Market: A Perfect Blend of Stability and Growth Sprouts Farmers Market Today SFM Sprouts Farmers Market $95.62 -0.56 (-0.58%) 52-Week Range $37.16 ▼ $103.80 P/E Ratio 32.97 Price Target $93.38 Add to Watchlist No matter whether the economy is booming or busting, consumers will likely always find room in their budgets to buy groceries. While this may not create the exciting growth rates investors can expect out of the technology sector, Sprouts Farmers Market stock offers more stability and a less bumpy ride to wealth building. Sprouts Farmers Market Stock Forecast Today 12-Month Stock Price Forecast: $93.38 -2.05% Downside Hold Based on 9 Analyst Ratings High Forecast $111.00 Average Forecast $93.38 Low Forecast $76.00 Sprouts Farmers Market Stock Forecast Details Building on this fundamental factor, investors shouldn’t be surprised to see a 37.6% gross margin out of this company, which is higher than other peers like Walmart Inc. NYSE: WMT, which only generates 24.5% gross margins. This gross margin superiority signals investors that there might be more pricing power or market penetration. This pricing power and superior position have allowed management to reinvest at ROIC rates above 12% over the past five years. Again, this is not the most exciting growth, but it still outpaces most alternatives in the market. Leaning on these trends, analysts at Goldman Sachs decided to boost their valuations on the stock from $89 a share up to $111 a share as recently as July 2024. This new view calls for a 15.6% upside from where it trades today. Before you consider Walmart, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Walmart wasn't on the list. While Walmart currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

How Food Prices Have Changed Over the Past Four Years 2024-08-13 15:06:57+00:00 - A central issue has plagued the Biden administration for most of its term: the steep rise in grocery prices. Polls have consistently found that inflation remains a top concern for voters, who have seen their budgets squeezed. A YouGov poll published last month found that 64 percent of Americans said inflation was a “very serious problem.” And when it comes to inflation, several surveys suggested that Americans were most concerned about grocery prices. Despite the gloom about grocery costs, food price increases have generally been cooling for months. On Wednesday, new data on inflation for July will show if the trend has continued. Economists in a Bloomberg survey think that inflation overall probably climbed by 3 percent from a year earlier, in line with a 3 percent rise in June. That sort of reading would probably keep officials at the Federal Reserve on track to cut interest rates in September. Investors, who were recently rattled by signs of an economic slowdown, have looked to rate cuts as a support for markets.

Transfers and Pay Cuts: Pregnant Officers Accuse Border Agency of Discrimination 2024-08-13 14:49:03+00:00 - When Roberta Gabaldon was ready to share news of her pregnancy with her colleagues at Customs and Border Protection in 2015, she brought in pink and blue doughnuts with a sign that read: “Pink and blue. Pink and blue. Somebody’s pregnant, guess who?” But her palpable excitement, particularly after a miscarriage months earlier, quickly dissipated. “My boss came into my office and he’s like: ‘You have to leave. You have to get a note about your pregnancy, and you have to go on light duty,’” Ms. Gabaldon, an agriculture specialist in the El Paso office, recalled, describing how she was told she needed to be reassigned to a post with fewer responsibilities regardless of whether she or her doctor believed it was necessary. Her experience reflects that of hundreds of female employees at the agency who have filed suit against Customs and Border Protection, saying that since at least 2016, they were denied equal treatment once they disclosed they were expecting. No matter the physical demands of their jobs, many were transferred to another post, typically centered on administrative or secretarial work and usually unrelated to what skills they had developed in their existing roles. The policy, they say, hurt their opportunities for advancement, and others add that they weathered pay cuts because light duty meant no more overtime. But under a $45 million settlement reached on Monday, Customs and Border Protection agreed to adjust a practice that some employees say has instilled a culture of shame and perpetuated a fear of retaliation as women try to hide their pregnancies at work for as long as possible.

Starbucks names Chipotle chief Brian Niccol as new CEO in surprise shake-up 2024-08-13 14:49:00+00:00 - Starbucks named the Chipotle Mexican Grill head, Brian Niccol, as its new CEO on Tuesday in a surprise management shake-up as it tries to fend off pressures from the activist investor Elliott Investment Management. Niccol replaces Laxman Narasimhan, who was tapped in 2022 from the Lysol maker Reckitt to undertake a “reinvention” of the world’s biggest coffee chain. Starbucks stock soared on the news – spiking 20% before noon. The company’s share price has sunk in recent years, losing roughly 20% of its value over the last five years when the broad-market S&P 500 has gained more than 80%. In July, the company fell short of sales expectations due to weakening demand in the United States and China. Elliott, which owns a sizable stake, has been pressuring the company to improve its performance and stock price, proposing the company expand its board and improve its governance. Elliott’s offer was reported to be part of an effort to allow Narasimhan to keep his job as CEO. When asked if Elliot was consulted about the shake-up, the Starbucks board chair, Mellody Hobson, said it had not been. “We look forward to engaging with all of our shareholders about this new development,” she said on CNBC. It is unclear what will happen with negotiations with Elliott with the appointment of Niccol. Elliott was seeking to add Jesse Cohn, an equity and managing partner in the firm, to the Starbucks board, Reuters reported on Monday, citing sources. In May, days after Starbucks cut its annual sales forecast, the former CEO Howard Schultz wrote on his LinkedIn account that its US operations were the “primary reason for its fall from grace”, and that senior leaders need to spend more time with workers. Niccol has spearheaded the Chipotle burrito chain, which in its most recent quarter topped Wall Street estimates for quarterly results on strong demand. The change comes as Starbucks appears to be inching closer to an agreement with staff who have fought for years to organize unions at the chain’s stores. In February the company agreed on a new organizing framework with Starbucks Workers United and held several contract negotiations to reach an agreement. More than 470 locations have voted to unionize since late 2021. The change was a reversal from the company’s efforts to dissuade unionizing efforts and fend off hundreds of labor law violation allegations filed by workers with the National Labor Relations Board. Chipotle too has faced backlash over its efforts to thwart union drives. Under Niccol, Chipotle has opposed unionization since the first location unionized in Lansing, Michigan, in 2022. The union had criticized Niccol for paltry five-cent wage increase offers amid negotiations to secure a first union contract with workers. In 2023, the company agreed to pay $240,000 to former employees to settle unfair labor practice charges that the company closed a location in Augusta, Maine, in retaliation for union organizing. Chipotle also settled other unfair labor practice charges in 2023 filed by workers in Kansas who alleged they were retaliated against for filing to unionize. Chipotle also paid to settle child labor law violations at its locations in recent years in Washington DC, New Jersey and Massachusetts. Starbucks said Niccol would start in his new role on 9 September and that the CFO, Rachel Ruggeri, will serve as interim CEO until that time. Chipotle said its board had appointed Scott Boatwright, chief operating officer, as interim CEO. Reuters contributed reporting

The Little Streamer That Could 2024-08-13 14:47:39+00:00 - When Nicole Parlapiano joined Tubi as its marketing chief two years ago, one of the most searched questions about the decade-old streaming service was, “Is it a scam?” It was free, after all, and consumers were skeptical. “Would it put a virus on your computer?” Ms. Parlapiano said. “People wouldn’t even touch it.” That’s not an issue now. Tubi has exploded in popularity over the last 18 months, establishing itself as one of the most popular streaming outfits in the United States. It now consistently outranks Peacock, Max, Paramount+ and Apple TV+ in total viewing time, according to Nielsen — and is drawing even with Disney+. Only YouTube, Netflix, Amazon and Hulu are still ahead. The streaming service, which is owned by the Fox Corporation, runs a different business model from those competitors. In addition to being free — with revenue coming from advertising — it doesn’t require an account to use, making it more similar to services like Roku and Pluto. And it comfortably commands more engagement than those peers, according to Nielsen.

CEO Swap: Starbucks Surges 22% on Hiring New CEO From Chipotle 2024-08-13 14:44:00+00:00 - Starbucks Today SBUX Starbucks $95.90 +18.87 (+24.50%) 52-Week Range $71.55 ▼ $107.66 Dividend Yield 2.38% P/E Ratio 26.42 Price Target $90.88 Add to Watchlist Global coffeehouse chain and coffee supplier Starbucks Co. NASDAQ: SBUX made a bombshell announcement that it is replacing current CEO Laxman Narasimhan with the current CEO of Chipotle Mexican Grill Inc. NYSE: CMG Brian Niccol. The news caused Starbucks shares to surge by 22% in premarket trading, while Chipotle shares fell 13% as traders engaged in a pairs trade strategy. Starbucks CFO Rachel Ruggeri will take the helm as interim CEO effectively immediately. Niccol will leave Chipotle on Aug. 31, 2024, and commence the CEO role at Starbucks on Sept. 9, 2024. Chipotle COO Scott Boatwright will assume the role of interim CEO at Chipotle on Sept. 1, 2024. Chipotle President of Strategy, Finance and Supply Chain Jack Hartung will remain on board, rescinding his earlier retirement plans for early 2025. Get Starbucks alerts: Sign Up Starbucks operates in the retail/wholesale sector, competing with Dutch Bros. NYSE: BROS, Luckin Coffee Inc. OTCMKTS: LKNCY, and privately owned Dunkin Donuts. Starbuck’s Gets a Much Needed Jolt Starbucks Stock Forecast Today 12-Month Stock Price Forecast: $93.04 0.04% Upside Hold Based on 25 Analyst Ratings High Forecast $112.00 Average Forecast $93.04 Low Forecast $75.00 Starbucks Stock Forecast Details Starbucks has been struggling, with shares trading down 19.77% prior to the new CEO announcement. The company missed consensus analyst revenue estimates by $135 million for its third quarter of 2024 as revenue fell 0.7% YoY. Most concerning was the global comparable store sales falling 3%, driven by a 5% drop in comparable transactions. In North America, comparable sales dropped 2%, driven by a 6% drop in comparable transactions. Contrast this to Chipotle's most recent earnings, which posted 18% YoY revenue growth, beating consensus estimates by $32.5 million. Chipotle also posted an impressive 11.1% restaurant-level comparable sales growth, driven by 8.7% transaction growth as average check size grew 2.4% YoY. Chipotle also managed to grow restaurant-level margins to 28.9%, surpassing the 27.5% consensus estimates. Is Chipotle’s Loss Starbuck’s Gain? Chipotle CEO Brian Niccol was largely credited for Chipotle’s success since he took the top role in March 2018. Niccol spearheaded the digitization efforts, tepid store count growth, food quality improvement, international growth efforts and the addition of drive-thru Chipotlanes. Chipotle also executed a record 50-to-1 stock split under his tenure, which opened the door to a new generation of investors who could finally afford the stock. Frictionless and Seamless Engagements Under Niccol's leadership, Chipotle has enhanced customer interactions and transactions, significantly contributing to the industry-leading 11.1% YoY growth in same-store sales. Chipotlanes underscores the frictionless model as customers place their orders in the Chipotle mobile app and pick them up seamlessly through the drive-thru without having to park. Customers can only place their drive-through orders through the Chipotle app, which helps to keep traffic flowing, rather than having customers place orders through a window and wait to be completed. Incidentally, long wait times have been a major pain point with Starbucks, especially during the morning rush. The company has admitted that 17% of its mobile orders don't complete the checkout because customers can't handle the wait times. The company claimed it was a product of their success as their popularity is what drives the traffic. The company has been working on ways to improve order turnaround times. One distinction between the two brands is that Chipotle owns 100% of its stores. Starbucks also owns its stores but licenses an estimated 40% of them. Starbucks Co. (SBUX) Price Chart for Tuesday, August, 13, 2024 SBUX Stock Completes the Gap Fill The daily candlestick chart for SBUX formed a gap fill through the $87.19 level on the morning gap and continued to gap and go. The 94.14 weekly upper Bollinger Bands and the $98.36 are the next upside resistance level to watch. The daily relative strength index (RSI) has surged to the $96-band. Pullback support levels are at $90.66, $87.18 gap fill, $84.42, and $81.48. Starbucks analyst ratings and price targets are at MarketBeat. There are 26 Wall Street analyst ratings on SBUX stock, comprised of 11 Buys and 15 Holds. Before you consider Starbucks, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Starbucks wasn't on the list. While Starbucks currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Rachel Reeves ponders private finance to help fund £9bn Lower Thames Crossing 2024-08-13 14:07:00+00:00 - The Treasury is investigating how to attract private finance to bring down the cost of the UK government’s largest planned infrastructure project, the £9bn Lower Thames Crossing. Rachel Reeves’s department is considering handing over the income from tolls to a private consortium in return for a cash injection that would reduce the cost to the public purse. It is understood officials are considering a scheme allowing investors into the bidding process to finance some or all of the scheme in return for a lease that could run for 125 years – or even indefinitely – to recoup the outlay. Reeves has promised to involve the private sector in large infrastructure projects to fill the £22bn hole she identified in government’s finances last month. The chancellor has rejected reviving the private finance initiative (PFI) which was used by the Blair government to pay for new schools and hospitals, typically over 30 years, but became associated with costly and inflexible contracts. Bringing back the Conservatives’ reformed version of PFI, known as PF2, is also seen as unsuitable by advisers to Reeves. Both PFI and PF2 contracts were abolished for new projects in 2018 after the collapse of the construction company Carillion. A straightforward investment contract that guarantees a return over a longer period, but leaves the commissioning and building of the tunnel in place, could be a more attractive option. The Lower Thames Crossing has been planned for more than 10 years to create a relief road under the river for the M25, running east of the Dartford Crossing. After the cancellation of the second leg of HS2 between Birmingham and Manchester, it remains the largest infrastructure project in England. An expected cost of £9bn is likely to have grown considerably since the budget was last calculated during the pandemic and before a 20% cumulative increase in inflation. National Highways, which looks after England’s major roads, put forward the scheme after it said the Dartford Crossing was overwhelmed with traffic using London’s orbital road and lorries driven from the ports of Dover and Folkestone to destinations north of the capital. Environmental campaigners have argued that National Highways’ own figures show the new tunnel will be over capacity within a few years and undermine attempts to lower carbon emissions. They argue that more sustainable solution would be to reroute container lorries to ports further up the coast or increase the capacity of the rail network. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The transport secretary, Louise Haigh, has commissioned an internal review of capital spending by her department using “external expertise” to judge which projects move forward. The government has already halted a scheme to tunnel beside Stonehenge to widen the A303 and is expected to cull many more projects to save money. A Treasury spokesperson said: “The government retired PFI and PF2 models in 2018, and there has been no change to this policy. “The government is committed to harnessing private investment and restoring growth, and will work in partnership with the private sector to deliver its missions.”

W.N.B.A. Star Takes Over Voting Organization Started by LeBron James 2024-08-13 14:00:09+00:00 - More Than a Vote, a nonprofit organization founded by LeBron James in 2020, is rebooting this fall with a new focus on women’s issues and reproductive rights. Nneka Ogwumike, a nine-time W.N.B.A. All-Star with the Seattle Storm and president of the players union, will take over James’s role in leading the organization, and has recruited a group of female athletes to her cause. “It’s more than just abortion,” Ogwumike said in an interview. “It’s all about educating people about all the different roles that exist in society that support and protect the freedoms of women when it comes to family planning, I.V.F., birth control, everything. There’s just a lot that’s at stake.” More Than a Vote was founded when, motivated by nationwide protest movements after the killing by police of George Floyd and Breonna Taylor, athletes like James said they were starting to think more deeply about how they could use their platforms.

Buy the Dip in Home Depot, But Wait for It to Bottom First 2024-08-13 13:36:00+00:00 - Home Depot Today HD Home Depot $350.07 +4.26 (+1.23%) 52-Week Range $274.26 ▼ $396.87 Dividend Yield 2.57% P/E Ratio 23.48 Price Target $384.00 Add to Watchlist Home Depot NYSE: HD is a high-quality business in no danger of failure, but its stock price will likely head lower now that the Q2 results and guidance are in. The guidance was improved, but factors including acquisitions, organic declines, and cautionary statements raise serious doubts about the results for the next two to four quarters. Doubts and questions about economic health will likely pressure this stock’s price and other consumer discretionary names because the market is forward-looking. That situation is unlikely to change until after the FOMC makes its first interest rate cuts, the soft economic landing is more assured, and the outlook for organic business growth improves. This market will form a technical bottom between then and now and signal it’s time to buy. Get Home Depot alerts: Sign Up Home Depot Has Beat-and-Raise Quarter: Signals Turbulence Ahead Home Depot had a decent quarter because of the diversifying business model and acquisitions rather than core strength. The company reported $43.2 billion in net sales for a gain of 0.7%, which beat the consensus reported by MarketBeat by 115 basis points. However, comp sales are down 3.3% systemwide and 3.6% in the U.S., offset by the addition of SRS. SRS is a building material supply distributor acquired earlier in the year; it added $1.3 billion in revenue worth about 300 basis points, which is why revenue grew. Comps are up sequentially due to seasonally expected spending habits but down YoY on a 1.8% decline in transactions compounded by a 1.3% decrease in average tickets. Also, comps have been negative for nearly two years, and transaction size is near a two-and-a-half-year low, with guidance expecting continued pressure on consumers for the foreseeable future. The margin news is mixed and shaded by the guidance. The operating margin came in better than expected but was insufficient to offset the top-line weakness, even with a lower share count. Operating margin contracted by 30 basis points to 15.1%, leaving the adjusted EPS at $4.67. The $4.67 is $0.12 or 260 bps above consensus but down a penny compared to last year. Guidance is why the market for HD moved lower after the release in premarket trading. The company raised its guidance for revenue by 200 basis points at the mid-point but reduced its expectations for comp-store sales and earnings. The increased revenue outlook is due primarily to the SRS acquisition. The expected 3% to 4% contraction in comp sales is 250 bps worse than the prior guidance and includes negative earnings growth versus a 1% increase. The worst news is the CEO's comments, which mention high interest rates and macroeconomic pressures impacting consumers and their growing uncertainty. With this in play, investors should expect to see the core business weaken as the year progresses. Home Depot’s Financial Health Improves: Repurchases Slow to a Trickle Home Depot Dividend Payments Dividend Yield 2.57% Annual Dividend $9.00 Dividend Increase Track Record 15 Years Annualized 3-Year Dividend Growth 11.69% Dividend Payout Ratio 60.36% Recent Dividend Payment Jun. 13 HD Dividend History Home Depot’s financial health improved over the last year, aided by the acquisition of SRS. The net impact is a negative cash-flow quarter, a reduction in net cash, and increased debt and liability offset by increased assets and shareholder equity. Equity is up 26% and likely to continue growing. The critical detail is that the cash reduction led to a slowdown in share repurchases that may linger for the next few quarters. Repurchases over the last year reduced the average diluted count by 1%, but the total in Q2 is down 86%. Management may choose not to increase the pace to rebuild the cash position and address the increase in debt, which is a good thing but will weaken the tailwind buybacks provided. The dividend is safe and likely to grow if growth runs slower than the 12% CAGR it now runs. Home Depot Shares Are at a Critical Turning Point HD shares are down in premarket action and at a critical turning point that may lead to lower prices. The market is struggling to support the stock at $345, which coincides with an important pivot point that has impacted price action since early 2021. If the market can not continue to support the stock at this price, there is a danger it will fall to $320 or lower before rebounding. Even if the market can support the price at $345, HD stock will likely move sideways within its trading range for the foreseeable future. Before you consider Home Depot, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Home Depot wasn't on the list. While Home Depot currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Micron Stock Just Got Its Most Bullish Update Of The Year 2024-08-13 13:28:00+00:00 - After a golden first half of the year, investors have been getting a crash course in what gravity feels like from the stock market these past few weeks. A combination of poor job numbers and an increase in interest rates from Japan combined to give equities some of their worst sessions and weeks in years. It didn’t help that some of the big tech names, like NVIDIA Corporation NASDAQ: NVDA, which had done much of the work in pulling up the market all year, had been softening since June. But as we wrote about last week, these broad, market-wide selloffs can create some real golden opportunities. When an index like the S&P 500 falls 10% in just three weeks, you can be sure that almost every stock out there will take some heat, regardless of how well it’s been performing. Get Micron Technology alerts: Sign Up Micron: Hero to Zero Micron Technology Today MU Micron Technology $97.44 +2.80 (+2.96%) 52-Week Range $61.75 ▼ $157.54 Dividend Yield 0.47% Price Target $157.92 Add to Watchlist Take semiconductor giant Micron Technology NASDAQ: MU, for example. The Idaho-headquartered stock logged gains of nearly 100% through the middle of June, but by Wednesday of last week, had shed some 45% of that. In tandem with the S&P 500's start to turn down, most of Micron’s losses only started in the second half of July, going on to pick up serious pace through the middle of last week. However, there are several reasons to think Micron’s selloff is overdone, and we could be looking at the mother of all entry opportunities. Micron's Fundamentals Remain Strong Take the company’s fundamental performance, for starters. Both headline numbers from its June earnings report smashed analyst expectations, with top-line earnings coming in 29% higher than the consensus and bottom-line revenue also landing a solid beat. It was also Micron’s highest revenue print in two years and its first time posting consecutive quarters of profitability since the back half of 2022. As reports go, it doesn’t get much better than that, especially considering all the rate increases and shifts in market sentiment since then. Yet, such is the viciousness of the recent selling that Micron shares are back trading at 2021 levels, and you can’t help but feel that it makes them a bargain in their own right. Micron's Low RSI: A Key Indicator for Timing Your Entry Alongside the company’s fundamental performance, the stock’s technical setups are also attractive, particularly its Relative Strength Index (RSI). The RSI is a popular indicator for seeing how oversold or undersold a stock might be. It considers a stock’s recent trading performance, typically over the past 14 days, and spits out a number between 0 and 100. Anything over 70 suggests a stock is extremely overbought and potentially near a top, while anything under 30 suggests a stock is extremely oversold and potentially near a bottom. Last Wednesday saw Micron’s RSI hit 25, its lowest reading since 2018, which all but confirmed the recent dip was overextended and likely to start running out of steam. Watching and waiting for an RSI reading that extreme can be one of the most reliable ways to time an entry, and it’s already starting to look like that’s exactly what Wall Street has done. Since tagging that low last week, Micron’s shares have logged three straight days of gains and are up almost 10%. Micron's AI and Memory Demand Fuels Analyst Optimism Micron Technology MarketRank™ Stock Analysis Overall MarketRank™ 4.71 out of 5 Analyst Rating Moderate Buy Upside/Downside 62.4% Upside Short Interest Healthy Dividend Strength Weak Sustainability -2.35 News Sentiment 0.42 Insider Trading Selling Shares Projected Earnings Growth 1,408.62% See Full Details The recent analyst comments and updates tie all this together. KeyCorp didn’t hesitate to reiterate their Overweight rating on Micron shares last week or give them a refreshed price target of $145. Considering the stock closed below $95 on Monday evening, that indicates an impressive targeted upside of more than 50%. Their bullishness was echoed by the team at Citi, who not only “remain bullish” on the semiconductor industry as a whole but have named Micron their top pick for the rest of the year. As analyst Christopher Danely wrote in a note to clients, “Now is the time to double down,” as he sees no impending slowdown in spending on AI or memory. Considering there was blood on the streets last week, and the stock is only just starting to show a potential bottom, this was a brave call to make. But in the context of the solid fundamentals and technicals behind it, it feels like a well-informed call and one that investors could do well to listen to. Before you consider Micron Technology, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Micron Technology wasn't on the list. While Micron Technology currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

How to Trade a Long Straddle When Expecting a Large Earnings Move 2024-08-13 13:00:00+00:00 - Earnings season is the time when stocks make large price swings based on how the market perceives their earnings reports. Earnings reports are the most materially impactful news events for stocks. Traders, speculators, and gamblers regularly place their bets with stock options, hoping for the big price gap up or down, often taking directional out-of-the-money (OTM) call or put options like scratch-off lottery tickets. While the payoffs can seem big, most bets go bust, just as most lottery tickets lose. While it's never a great idea to bet on earnings results, there is another way to play the outcome rather than taking a directional approach. In sports betting, the over/under bet enables you to bet on the total points scored in the game being above or below a specific number rather than on who wins. This is the same concept with a long straddle. The stock must rise above or below a specific price level for the trade to be in the money. Failing that, the straddle position loses value. Get Advanced Micro Devices alerts: Sign Up How to Execute Long Straddle Trade To set up a straddle, first choose a strike price. Then, purchase both a call option and a put option at that same strike price and expiration date. This straightforward two-legged options strategy can be executed either manually or automatically, depending on your brokerage platform. Most platforms offer a straddle trading option, allowing you to easily select the strike price and expiration for both the call and put options. Let's use leading AI chip stock Applied Micro Devices Inc. NASDAQ: AMD as an example. AMD stock has fallen heading into earnings after completing the cup pattern at $187.11. The sentiment going into its earnings report is negative. The daily relative strength index (RSI) has also fallen to the oversold 30-band. Step 1: Select the Strike Price and Expiration AMD is trading at $138.44. Since earnings are being reported after the close, you can select the August 2, 2024, expiration date, which is 2 days away. You will also select the $140 strike price. Step 2: Buy the Call and Put Options The cost of the long AMD 140 call is $5.53. The close of the long AMD 140 put is $6.93. The total cost of the trade is $12.45. The trade is: Buy 1 AMD 140 Call for $5.53 Buy 1 AMD 140 Put for $6.93 This position would cost you $12.45 or $1,245. In order to break even on the trade, AMD would have to rise to $152.45 on the upside or fall below $127.55 on the downside. This is the strike price plus the cost of the trade, $12.45. Since there will be 2 days until expiration, there will still be time to salvage some value should AMD shares stay within the $152.45 to $127.55 range if you cut losses quickly. Step 3: Take Profits As You Make Them or Cut Losses Quickly Depending on how far away your expiration is, you will need to take your exits quicker. The problem often is that traders may get greedy and want more money, not realizing that time is of the essence. For straddles that are under one week until expiration, you will need to lock profits or cut losses quickly. With the AMD 140 straddle, the outcome was a gap-up the following morning. AMD surged on the open to $152.85. You needed AMD to bounce up to $152.45 to break even on the trade. However, you can see that the straddle is worth $13.59 due to the high volatility on the open. You can and should cash out at $13.59 for a profit of $1.14 on the trade. Since AMD gapped up, the $140 put option collapsed in value to 26 cents, down from $6.93. However, the $140 call option jumped in value to $13.33, up from 5.53. The net total value of the contracts is $13.59, resulting in a $114 profit or a 9.1% return. Straddles Plays on Earnings is a Speculative Bet As most lottery scratch-off tickets lose, most straddles and directional options bets on earnings will lose. However, unlike lottery tickets, you can salvage some value on your options straddle if you cut your losses quickly. Keep in mind that premiums will sink immediately due to the implied volatility (IV) crush that occurs after the earnings release. In fact, you may be right on your trade but still lose money because of the IV crush, causing premiums to collapse, especially if your options are OTM. Start Your Research with MarketBeat Want to learn more about options trading? Click here to access MarketBeat's extensive educational materials and market-tracking features. Before you consider Advanced Micro Devices, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Advanced Micro Devices wasn't on the list. While Advanced Micro Devices currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Stock market today: Nasdaq edges higher, Dow drops as investors await key signals on inflation, economy 2024-08-13 05:57:00+00:00 - US stocks closed mixed on Monday as Wall Street braced for a week full of key economic data signals. The benchmark S&P 500 (^GSPC) hugged the flat line while the tech-heavy Nasdaq Composite (^IXIC) rose about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) dropped roughly 0.4%, or less than 150 points. In single stock moves, Nvidia (NVDA) finished the day about 4% higher, sparking a rally in the tech sector. Wall Street is coming off a whipsaw week that has left markets jumpy and "on edge." Though the major indexes practically ended last week where they had started, it didn't come without volatility throughout the week. Strategists say that is likely to continue — and this week comes with plenty of opportunities. Wednesday provides a fresh look at the state of inflation with the latest release of the Consumer Price Index. Then Thursday comes with two key signals on the state of the US consumer: a reading on July's retail sales and Walmart (WMT) earnings. Wall Street once again sees good news as good news, so volatility this week may depend on the signals those data introduce. Either way, though, markets are seeing a slowing economy, which has shifted the debate from whether the Federal Reserve should cut interest rates in September to how much it should cut them. A small majority of traders expects a 25 basis point cut next month, while the balance — around 48% — see a bigger 50 basis point cut coming. LIVE COVERAGE IS OVER 9 updates Stocks close mixed as investors await key economic data US stocks closed mixed on Monday as investors look ahead to a full week full of key economic data, highlighted by July's Consumer Price Index (CPI) on Wednesday. The benchmark S&P 500 (^GSPC) hugged the flatline while the tech-heavy Nasdaq Composite (^IXIC) rose about 0.2%. Meanwhile, the Dow Jones Industrial Average (^DJI) dropped roughly 0.4%, or less than 150 points. In single stock moves, Nvidia (NVDA) finished the day about 4% higher, sparking a rally in the tech sector. Don't panic: Dips, pullbacks, and corrections are normal Markets are in recovery mode following the most volatile 5-day stretch of the year last week. But don't panic. Pullbacks and dips aren't anything new. "Pullbacks are the stubbed toe of the stock market," LPL Financial's Adam Turnquist and George Smith wrote in a note to clients on Monday. "The pain [is] acute but not worthy of a full-blown panic." The duo blamed last week's volatility on overbought financial conditions in Big Tech, the unwinding of the yen carry trade, and waning confidence in a soft landing following disappointing jobs and manufacturing data. "Like a stubbed toe, pullbacks in the market are inevitable, something investors tend to forget during low periods of volatility." It's true markets have enjoyed an impressive run. Excess pandemic savings, strong corporate earnings, and an artificial intelligence-fueled tech rally are just some of the reasons why stocks have rallied despite the largest and fastest rate-hike cycle from the Fed in 40 years. But as the old adage goes, all good things must come to an end. Last week, the CBOE Volatility Index (^VIX), also known as Wall Street's fear gauge, surged to its highest reading since March 2020, a further sign that bad news for the economy is once again bad news for stocks. Yet, as Yahoo Finance's chart of the day shows, the history of the S&P 500 reminds us that dips, pullbacks, and even corrections of 10% or more are normal and even healthy elements of a bull market. According to data compiled by LPL Financial, stocks experience a pullback of over 5% more than three times per year and a correction of 10% or more around once a year, even in bull runs. In other words, "94% of years since 1928 have experienced a pullback of at least 5%, and 64% of years have had at least one 10% correction," LPL Financial said. "We believe that how common these occurrences are should provide comfort to equity investors, allowing them to be patient, stay investing, and most importantly, to not panic." DJT stock falls after Trump returns to X Trump Media & Technology Group (DJT) took a hit Monday afternoon after former President Donald Trump returned to X just hours ahead of his much-anticipated conversation with Elon Musk. It was the first time Trump had posted on his X account since August 24, 2023. Shares of the parent company of Trump's social media platform, Truth Social, fell as much as 7% to trade around $24.50. Other Trump-related stocks, like conservative-leaning video platform Rumble (RUM), also saw shares fall, down about 4%. Last week, the company reported second quarter results that revealed losses of $16 million, about half of which were tied to expenses related to its SPAC deal. The company also reported revenue of just under $837,00 for the quarter ending June 30, a 30% year-over-year drop. Shares of DJT have been on a bumpy ride in recent months, oscillating between highs and lows. In June, the stock popped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump. Biden dropped out of the race one month later. Since Biden's announcement, shares have remained under pressure as vice president Kamala Harris, the presumed Democratic presidential nominee, tracks ahead of Trump in the latest polling. In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction. Trump Media, the parent company of Truth Social, went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp. The stock has fallen sharply since the company's public debut at the end of March, when shares hit a high of more than $71 shortly after it began trading in late March. Inflation will start to get more attention from the Fed: Oxford Economics Markets are eyeing upcoming readings on inflation and the consumer following a volatile run last week, spurred by a disappointing jobs report that showed bad news is, well, bad news again. "Since the release of the July employment report, financial markets have been focused on the labor market and the implications for Federal Reserve policy, but the other side of the central bank's dual mandate will come back into view during the week ahead," Oxford Economics lead economist Nancy Vanden Houten wrote in a note to clients on Friday. The July Consumer Price Index (CPI) will serve as the next big test for inflation (and for markets). "We expect the July CPI to be a touch less friendly than the weaker-than-expected June readings, but don't think the data will shake the Fed's confidence that inflation is moving in the right direction," Houten said. According to Bloomberg consensus estimates, headline inflation, which includes the price of food and energy, is expected to post an annual gain of 3%, unchanged from June's reading. But the metric is set to rise 0.2% month over month after declining 0.1% in June. On a "core" basis, which strips out the more volatile costs of food and energy, inflation is expected to tick up 3.2% year over year, a deceleration from the 3.3% increase seen in June. Monthly core price are expected to have risen 0.2% compared to a 0.1% increase in June. As of Monday, markets were pricing in a roughly 52% chance the Federal Reserve cuts interest rates by 50 basis points by the end of its September, down from a 85% a week prior, per the CME Fedwatch Tool. "In our view, financial markets overreacted to the latest batch of employment statistics, pricing in a 50 basis point (bp) rate cut for September, and more than 100bps in cuts for the year," Houten wrote. "Over the course of the week, markets scaled back expectations, although they continue to anticipate more than 50bps in cuts than we expect for the year. We acknowledge an increased risk of a more aggressive pace of policy normalization if future employment reports are weaker than expected, but we are comfortable with our baseline forecast." Projected Fed rate cut path (Source: Oxford Economics) Recent drop in mortgage rates won't revive the housing market The recent decline in mortgage rates likely won’t spark a significant rebound in the housing market, according to a new note by Capital Economics. Data released last week showed that mortgage rates fell to their lowest levels in over a year amid growing concerns over the health of the US economy. The average 30-year fixed mortgage rates dropped to 6.47% from 6.73% last week, Freddie Mac reported on Thursday. A year ago, the average rate on a 30-year fixed-rate loan was 6.96%. Capital Economics' Thomas Ryan wrote in the note that “rates are still high compared to recent years, discouraging homeowners from moving, while most potential new buyers remain sidelined due to historically stretched affordability.” Expectations that the central bank will cut interest rates starting next month have caused long-term bond yields to fall, which in turn has pushed mortgage rates downward. The recent drop in mortgage rates “will breathe some life into the market," Ryan wrote. Applications for a mortgage to purchase a home increased just 1% last week and were 11% lower than a year ago. “The bigger picture, though, is that rates have not fallen nearly enough to spark a meaningful recovery in activity,” Ryan wrote. “We may get more of a response from buyers and sellers this time around given that rates have fallen to a lower level, and more time has elapsed. Based on past form, however, it seems that borrowing costs would have to fall below 5% to see a full recovery in home buying,” the economist added. Technology the lone big winner on Monday The S&P 500 is clinging to gains of about 0.2% on the day in a narrowly driven day for the 11 sectors. Technology (XLK) is the clear outperformer, rising 1%, while Energy (XLE), up 0.3%, is the only other sector in the green. Source: Yahoo Finance Nvidia rises more than 5%, leading tech rally Nvidia stock (NVDA) rose more than 5% on Monday morning, leading a rally in tech stock as talk of delays for the company's Blackwell next-generation chip remains in focus on Wall Street. Technology (XLK) was the leading sector in the S&P 500 on Monday, up more than 1.5%. UBS analyst Timothy Arcuri maintained his Buy rating on the stock and a $150 price target in a note to clients on Monday while also remarking that he believes Blackwell customer volume shipments are likely delayed four to six weeks "at most." "Lead customers should have first Blackwell instances stood up in April 2025 timeframe," Arcuri wrote. "AI labs are still upsizing and lengthening their instance commitments and enterprises are rapidly growing as a proportion of the demand mix — both bullish indicators." Additionally, Arcuri argued the market may be underestimating Nvidia's future earnings growth. For now, Arcuri believes the market is currently pricing in peak earnings growth for Nvidia in 2025. But Arcuri argued that 2026 "seems more likely to be up again given our customer discussions." Also on Monday, Bank of America analyst Vivek Arya noted Nvidia is one of the firm's top "rebound" picks amid what he expects to be a comeback for semiconductors to end 2024. "Our base case remains for a [semiconductor] rebound likely in Q4 as seasonal headwinds dissipate," Arya wrote in a note to clients. More jittery markets to start the week Stocks are seesawing again on Monday, continuing the action seen throughout last week, which started with a massive sell-off before the major indexes closed the week nearly flat. All three of the major indexes reversed course early Monday, shifting from green to red as markets await key economic data. As Bank of America US equity and Canada strategist Ohsung Kwon pointed out in a weekly note on Monday, markets are bracing for a big move after Wednesday's Consumer Price Index (CPI) inflation reading. "The growth overhang [on markets] still remains, with a big CPI hurdle this week to clear the path for the Fed," Kwon wrote. "A soft CPI could provide a relief rally, but a hot CPI would be a major downside event, potentially bringing stagflation fears back to the market. A hotter print would be a bigger surprise to the market than a softer print." Stocks drift higher at the open US stocks rose slightly on Monday as Wall Street braced for a week full of key economic data signals. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) popped about 0.3%. Meanwhile, the Dow Jones Industrial Average (^DJI) was higher by less than 0.2%. There were limited catalysts driving the market action early Monday morning, as investors await a busy week of economic data that will begin in earnest on Tuesday with the latest reading of the Producer Price Index (PPI).

DJT stock falls after Donald Trump returns to X ahead of Elon Musk interview 2024-08-13 05:29:00+00:00 - Trump Media & Technology Group (DJT) stock fell Monday afternoon after former President Donald Trump returned to X, the platform formerly known as Twitter, just hours ahead of his much-anticipated conversation with Elon Musk. It was the first time Trump had posted on his X account since Aug. 24, 2023. Shares of the parent company of Trump's social media platform, Truth Social, closed down around 5% to trade near $25. On Friday, DJT reported second quarter results that revealed a net loss of $16.4 million, about half of which was tied to expenses related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ending June 30, a 30% year-over-year drop. In April, an updated regulatory filing showed Trump Media reported sales of just over $4 million as net losses reached nearly $60 million for the full year ending Dec. 31. The company warned it expects losses to continue amid greater profitability challenges. Shares of DJT have been on a bumpy ride in recent months, oscillating between highs and lows. In June, the stock popped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump. Biden dropped out of the race one month later. Since Biden's announcement, shares have remained under pressure as vice president Kamala Harris, the presumed Democratic presidential nominee, tracks ahead of Trump in the latest polling. In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction. Trump Media went public on the Nasdaq after merging with special purpose acquisition company Digital World Acquisition Corp. Shares have fallen about 50% since the company's public debut at the end of March. Republican presidential nominee former President Donald Trump arrives to speak at a campaign rally in Bozeman, Mont., Friday, Aug. 9, 2024. (AP Photo/Rick Bowmer) (ASSOCIATED PRESS) Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter following the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on those platforms. Trump maintains a roughly 60% stake in DJT. At current levels of around $25 a share, Trump Media boasts a market cap of roughly $3.39 billion, giving the former president a stake worth around $2 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion. In late April, the stock hit a milestone that secured Trump an additional $1.2 billion in cash. Stakeholders, however, are still subject to a six-month lockup period before selling or transferring shares. Story continues StockStory aims to help individual investors beat the market. Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance

Nvidia's Earnings Set For 'Drop The Mic' Moment As Investors Anticipate 'Massive' AI Demand Forecast From CEO Jensen Huang, Says Tech Bull 2024-08-13 05:15:00+00:00 - Nvidia's Earnings Set For 'Drop The Mic' Moment As Investors Anticipate 'Massive' AI Demand Forecast From CEO Jensen Huang, Says Tech Bull The upcoming earnings report from NVIDIA Corp. (NASDAQ:NVDA) could be a pivotal moment for the company, according to a prominent analyst. What Happened: Dan Ives, an analyst at Wedbush Securities, predicts that the earnings report, scheduled for Aug. 28, will be a significant event for the tech industry. Don't Miss: Ives emphasized that the earnings call will capture the attention of investors globally, as they await insights from CEO Jensen Huang on the future demand for artificial intelligence chips through 2025. “Nvidia earnings on August 28th you will be able to hear a pin drop on trading desks around the Street/globe as investors hear from the Godfather of AI Jensen on the massive demand trajectory for AI chips into 2025 which we believe will be another drop the mic moment for tech,” Ives wrote on X on Sunday. Nvidia earnings on August 28th you will be able to hear a pin drop on trading desks around the Street/globe as investors hear from the Godfather of AI Jensen on the massive demand trajectory for AI chips into 2025 which we believe will be another drop the mic moment for tech 🔥 — Dan Ives (@DivesTech) August 12, 2024 Trending: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500. Why It Matters: Nvidia has seen a significant decline in market value, dropping by $900 billion since its peak in June, despite the ongoing surge in AI spending. Major tech companies like Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META) have committed to continued investment in AI infrastructure, which represents over 40% of Nvidia's revenue. Additionally, the “Magnificent Seven” mega-cap stocks, including Nvidia, have been at the forefront of market volatility. Despite a 30% drop from their five-year peak valuations, they remain 50% above their five-year troughs. This group, which includes major players in IT, communication services, and the electric vehicle industry, continues to wield significant influence over the market. Story continues See Also: Don’t miss out on the next Nvidia – you can invest in the future of AI for only $10. Furthermore, notable figures like former Speaker Nancy Pelosi (D-Calif.) have shown confidence in Nvidia’s future by purchasing additional shares. Pelosi recently disclosed acquiring more Nvidia shares while selling part of her stake in Microsoft. Lastly, early tech investor James Anderson has predicted that Nvidia could achieve a market capitalization of nearly $50 trillion within the next decade, driven by the growing demand for AI chips. This bullish outlook has contributed to Nvidia’s shares soaring by 117% since the beginning of the year. Price Action: Nvidia’s stock closed at $104.75 on Friday, down 0.21% for the day. In after-hours trading, the stock inched up 0.019%. Year to date, Nvidia’s stock has surged by an impressive 117.46%, according to data from Benzinga Pro. Read Next: "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 article Nvidia's Earnings Set For 'Drop The Mic' Moment As Investors Anticipate 'Massive' AI Demand Forecast From CEO Jensen Huang, Says Tech Bull originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Super Micro Computer Stock Climbs After Its Post-Earnings Swoon 2024-08-13 04:54:00+00:00 - Bloomberg / Contributor / Getty Images Key Takeaways Super Micro Technology stock posted solid gains on Monday, clawing back some of the losses posted after last week's earnings report. Declining margins contributed to the pressure on the stock, but Supermicro said it sees a path to margin improvement through manufacturing efficiencies. A report published over the weekend highlighted the potential of Supermicro's direct liquid cooling technology. Super Micro Computer (SMCI) shares jumped more than 6% on Monday, recovering a portion of the steep losses recorded last week after the server and data storage company released its fiscal fourth-quarter earnings. In its latest set of quarterly figures, released after the closing bell Tuesday, the server maker reported revenue had more than doubled from the prior year, edging out analysts' sales forecasts. Profits, however, fell short of expectations, and Supermicro's stock plunged 20% the next day. Supermicro Sees Path to Margin Recovery Although Supermicro forecasted further sales growth, increasing costs contributed to a drop in margins that appeared to underpin the negative reaction to the earnings report. Bank of America analysts downgraded the stock to "neutral," saying they expect margins to remain subdued in coming quarters. On its earnings call, Supermicro attributed the downtick in gross margins to product mix, competitive pricing aimed at securing new design wins, and elevated initial costs involved in increasing production of direct liquid cooled (DLC) technology for clusters of graphic processing units used in artificial intelligence (AI) data centers. As DLC production ramps up, the company believes it can slow manufacturing costs to drive margin recovery. Liquid Cooling Technology Set for Growth In addition to the company's assertion that preliminary cost headwinds should be temporary, a report over the weekend in The Wall Street Journal suggested that Supermicro's investments in liquid cooling technology could pay off. The article highlighted liquid cooling as a "novel method" for helping AI data centers without relying as heavily on energy-intensive air conditioners. Supermicro delivered more than 1,000 liquid-cooled AI racks in June and July, according to the report, and around 30% of the server racks the company ships next year will incorporate liquid cooling. Stock Performance Following last week's losses and Monday's recovery, Supermicro shares have gained nearly 90% so far in 2024. Read the original article on Investopedia.

The Unraveling of a Crypto Dream 2024-08-13 04:01:30+00:00 - On sun-drenched days in 2022, the cryptocurrency entrepreneur Brock Pierce liked to take his friends sailing to the island of Vieques, about 75 miles from his home in Puerto Rico. Mr. Pierce wanted to show off a property that he described as “the most important passion in my life”: a once-glamorous beachside resort that he had recently bought for more than $15 million. In its heyday, the resort, a W Hotel, boasted a 6,000-square-foot spa, restaurants run by a Michelin-starred chef and sweeping views of the ocean; it was a key source of tourism jobs in Vieques. Then, in 2017, the hotel was damaged by Hurricane Maria, forcing it to close. Mr. Pierce planned to reopen it, using his crypto riches to revitalize both the glistening property and the local economy. A former child actor, Mr. Pierce knew how to put on a show. On the trips to Vieques, he would anchor his Italian-made yacht at a local harbor, then lead his guests to the gates of the shuttered W, along a stretch of beach where wild horses roamed.

Why Intel Stock Kept Going Down Today 2024-08-13 02:59:00+00:00 - According to a Wall Street Journal that appeared in print this morning, Intel (NASDAQ: INTC) stock is too big to fail. Based on trading today, investors aren't so sure about that. Shares of the once-upon-a-time semiconductor king slipped 2% through 1:45 p.m. ET on Monday, extending an almost uninterrupted slide in share price since the company's disastrous second-quarter earnings report that has cost the stock 37% in just a little over a week and a half. What the WSJ says about Intel In the column, the Journal argued that while Intel will take a long time and a lot of money to turn itself around, its recovery is inevitable for several reasons. First and foremost, the company has factories that are actually worth more than the stock currently sells for, and these are "key to Intel's staying power." The importance of semiconductors to modern life and modern economies, says the Journal, means the U.S. government cannot allow Intel to fail as a business. The publication points to the 2022 Chip Act passed by Congress, and the $8.5 billion in subsidies that the government awarded to Intel to assist it in building new chip factories in Arizona and Ohio. Although these factories aren't currently running at full capacity (a big reason Intel's earnings missed by so much), the Journal says that Intel could fill out their capacity if it either figures out a way to compete with Nvidia (NASDAQ: NVDA) in artificial intelligence chips, or farms out unused capacity to other chipmakers as a foundry (or contract chipmaker). Is Intel stock a buy? The problem for Intel, and for its investors, is that whichever of these tracks Intel takes, the strategy will take time to succeed. In the meantime, investors must resign themselves to owning a second-tier chipmaker with an operating profit margin worse than any of the companies it has to compete with: AMD (NASDAQ: AMD) at 4.6%, Taiwan Semiconductor Manufacturing (NYSE: TSM) at 42.6%, or Nvidia at 64.9%. With numbers like these, it's hard to call Intel stock a buy. Should you invest $1,000 in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $641,864!* Stock Advisor provides 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. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of August 12, 2024 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy. Why Intel Stock Kept Going Down Today was originally published by The Motley Fool

Harris economic policy draws on Biden White House alums Brian Deese, Mike Pyle 2024-08-12 21:49:00+00:00 - In this article F Follow your favorite stocks CREATE FREE ACCOUNT US Vice President and Democratic presidential candidate Kamala Harris speaks during a campaign rally at the Thomas and Mack Center, University of Nevada in Las Vegas, Nevada, on August 10, 2024. Ronda Churchill | Afp | Getty Images Economist Brian Deese has begun advising Vice President Kamala Harris as she develops her economic policy plan, according to three people familiar with the matter. Deese is a former director of President Joe Biden's National Economic Council and a fellow at MIT's Center for Energy and Environmental Policy Research. Harris has said she plans to release her brand new presidential campaign's first formal platform — focused on lifting up the middle class — in the coming days. As Harris and her team have been putting together the policy plan, Deese has been a key advisor and sounding board for Harris, said the people, who were granted anonymity in order to discuss internal campaign operations. Harris is also working with Mike Pyle, a former deputy National Security Advisor for International Economics in the Biden White House, these people said. Director of the National Economic Council Brian Deese (L) and Vice President Kamala Harris (R) listen during the weekly economic briefing in the Oval Office at the White House on April 9, 2021 in Washington, DC. (Photo by Amr Alfiky-Pool/Getty Images) Amr Alfiky | Getty Images Both Deese and Pyle are alums of asset management giant BlackRock, key Wall Street experience that they bring to the Harris team. Pyle was global chief investment strategist at BlackRock. Deese did three year stint as the company's head of sustainable investing. Another key figure back who is back in the fold is Deanne Millison, Harris' chief economic adviser until 2023, a person with direct knowledge told CNBC. Millison currently works as a lobbyist for Ford Motor Co. Deese did not return requests for comment. Pyle did not reply to a request for comment sent through Macro Advisory Partners, where he is a senior advisor. A spokesperson for Ford did not immediately return a request for comment. Along with Pyle and Deese, former senior Treasury official Brian Nelson is also advising Harris on policy. So is longtime White House senior advisor Gene Sperling. Deese is part of a small group of advisors who are helping Harris and her team develop policy proposals that dovetail with Biden's broader economic agenda. As Biden's vice president for the past three years, Harris has been a vocal champion of his economic recovery plan, both across the country and around the globe. But now that she is the Democratic nominee, Harris has so far offered few indications of how she might shift course to carve out a slightly different version of Biden's economic agenda. Her barnstorm tour of battleground states last week devoted little time to specific details, like tax policy and jobs.

Felicis Ventures leads $10 million round in AI startup MemGPT at a $70 million valuation, sources say 2024-08-12 21:48:18+00:00 - MemGPT helps users "build LLM agents with long term memory and custom tools." It is an agentic framework focused on increasing the memory of large language models. The MemGPT project has over 11,000 stars on GitHub. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement MemGPT, a toolkit for developing AI agents, has raised a $10 million round at a $70 million valuation, Business Insider has learned. Felicis Ventures led the round, four sources familiar said. This is the company's first round, a source said. MemGPT helps users "build LLM agents with long term memory and custom tools," according to its associated GitHub page. The MemGPT project has over 11,000 stars on GitHub, indicating the project's popularity among developers. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Drone photos show the elegance of animals in the wild from a perspective humans rarely see 2024-08-12 21:44:47+00:00 - The Siena Drone Awards highlight gorgeous images of wildlife photos from a unique perspective. Nominees include photos of an erupting volcano, polar bears, and migrating birds. Winners will be announced on September 28. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement An erupting volcano, slumbering polar bears, and soaring birds are just a few of the majestic sights in line for first prize at this year's Siena Drone Photo Awards. To capture these stunning shots, photographers weren't limited to just drones, though. The contest guidelines encourage aerial shots from planes, helicopters, balloons, and even kites. There were over 2,000 entries across nine categories for this year's awards, Forbes reported. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .