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Virgin Orbit Fake Offer: SEC Sues Texas Man For $20M Bid 2024-06-18 19:00:00+00:00 - Loading... Loading... The U.S. Securities and Exchange Commission (SEC) sued Matthew Brown, a Texas man, for allegedly making a fraudulent $200 million offer to save the now-defunct satellite launch company Virgin Orbit Holdings, Inc. VORBQ, previously owned by billionaire Richard Branson. According to the SEC, Brown falsely claimed to be an experienced venture capitalist with investments in more than 13 space companies and fabricated a bank statement to support his bid. The SEC’s complaint, filed in Fort Worth, Texas, federal court, accused Brown of presenting a doctored screenshot showing his company’s bank account holding $182.4 million when it contained less than $1. Brown also demanded a 3% break-up fee if his investment did not close. Following his offer on March 19, 2023, Virgin Orbit’s stock price surged by 33%, only to fall after the deal collapsed. Brown and his firm, Matthew Brown Companies, are defendants in the case. Reuters noted the SEC seeks a civil fine, a ban on offering securities and other remedies. The defendants have dismissed the SEC’s complaint as containing “egregious errors,” “fabrications” and “biased allegations” favoring Virgin Orbit management, Reuters added. Once valued at $3.8 billion and serving the U.S. military, Virgin Orbit filed for Chapter 11 bankruptcy protection in April last year. This move followed the company’s struggle to secure long-term funding after a failed launch three months earlier. Virgin Orbit was spun off from Branson’s space tourism venture Virgin Galactic Holdings Inc SPCE in 2017. Issues with Brown’s credibility led Virgin Orbit to terminate discussions with him on March 25, 2023, two days after he told CNBC he was in “final discussions” to rescue the company. Three sources familiar with the talks confirmed the termination. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Viewimage on Shutterstock

Nathy Peluso Announces 'GRASA' Tour For The US And Europe: Tickets And Dates 2024-06-18 18:44:00+00:00 - Loading... Loading... Via El Planteo Argentine singer, songwriter, performer and provocateur Nathy Peluso has announced her highly anticipated "GRASA" tour, marking her first-ever U.S. run and dates across Europe. This exciting news comes in the wake of her acclaimed album "GRASA," released via 5020 Records / Sony Music Spain. Fans can look forward to experiencing Peluso's dynamic performances live, with tickets available now at www.nathypeluso.com. "This tour is all about embracing who we are and celebrating it with every beat,” Nathy shared exclusively with NYLON. “It’s going to be raw, powerful, and full of energy. I can't wait to share these unforgettable moments with all of you!" The "GRASA" album features 16 tracks, each accompanied by video vignettes conceptualized by Nathy, directed by Agustín Puente, and produced by The Movement by Landia. The standout single “TODO ROTO” featuring CA7RIEL and Paco Amoroso has quickly emerged as a fan favorite, trending worldwide on TikTok. This track invites listeners on a journey of self-discovery, challenging them to confront their fears and embrace their true selves. The album reveals a more mature and emboldened Nathy, who asserts her unique capabilities as a songwriter and performer. Seamlessly navigating rap, ballads, and tropical genres, she offers a more intimate and personal side in her lyrics, unafraid to open up about the growing pains and creative crises that come with fame and success. In Spanish, "GRASA" evokes many different meanings and cultural subtexts. In Argentina, the word can mean “tacky,” “tasteless,” or “vulgar.” But Nathy, like her music, doesn’t limit herself to one definition. She proudly flaunts her body, which doesn't fit heteronormative expectations, and reveres simple pleasures like a slice of pizza or pasta on her social media feeds. Nathy wants to reclaim the word and make it part of her universe: “For me, it’s a state of mind, a lifestyle,” she says. Nathy co-produced and co-wrote the 16 tracks on the album. Most tracks are the result of a close collaboration with Venezuelan musician and producer Manuel Lara, who serves as executive producer with Nathy. "GRASA" draws visual and stylistic inspiration from a diverse array of references, including the cinematic grandeur of mafia lore, 1970s NYC salsa, and contemporary icons like Kendrick Lamar. Grounded in a contemporary sound, the album feels like the soundtrack of Nathy’s current moment as she pushes boundaries and defies expectations in her craft. A notable track, "La Presa," is a salsa song in the classic vein of Hector Lavoe or Rubén Blades. Collaborating with Venezuelan songwriter-producers Servando Primera and Yasmil Morrufo, the song features backup vocals by Jerry Rivas, Luisito Carrión, and members of El Gran Combo de Puerto Rico. Nathy masterfully delivers a salsa song from a woman’s point of view, imbuing what could be a mere romantic trope with satire and dark humor. Another standout is “Manhattan,” featuring Argentine trap artist Duki, where Nathy rises above her haters with raw honesty. Similarly, “Envidia,” preceded by an intro from C. Tangana, offers a theatrical, even humorous take on societal toxicity. “Humor is what keeps me alive, I swear,” says Nathy about having the last laugh. “God will always give you an opportunity, but it’s up to you whether you take advantage of it or whether you waste your energy worrying about other people's business.” In an industry often characterized by superficiality, Nathy's authenticity shines through, reminding us that you can be an ambitious, powerful woman while also showing vulnerability and being open about life's challenges. Reflecting on her journey, Nathy's critically acclaimed 2020 debut album 'Calambre' catapulted her to fame, winning “Best Alternative Album” at the 2021 Latin GRAMMYs. Her signature zeal and grueling work ethic, however, came at a personal cost. The pressures of the industry and a series of romantic heartbreaks left her emotionally unfulfilled. “I was like a robot telling myself, ‘I’m a gladiator’. But I had to relearn how to enjoy simple things in life that were not work,” she admits. With "GRASA," Nathy Peluso continues to push boundaries, defy expectations, and inspire fans worldwide with her raw authenticity and unyielding spirit. The "GRASA" tour promises to be an unforgettable celebration of identity, music, and the power of being unapologetically oneself. Nathy Peluso Tour Dates: USA And Europe 2/9/25 - Milan, Italy - Fabrique 2/11/25 - Berlin, Germany - Columbiahalle 2/13/25 - Amsterdam, Netherlands - Melkweg 2/15/25 - Paris, France - Salle Pleyel 2/16/25 - Brussels, Belgium - Cirque Royal 2/19/25 - London, UK - Roundhouse 3/5/25 - Miami, FL - Fillmore Miami Beach 3/7/25 - Washington, DC - 9:30 Club 3/8/25 - Brooklyn, NY - Brooklyn Paramount 3/12/25 - Chicago, IL - The Vic 3/15/25 - Los Angeles, CA - The NoVo Photo: Ivan Resnik This article is from an external unpaid contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Phoenix police union resists reform after DOJ finds officers engaged in rampant abuse 2024-06-18 18:28:41+00:00 - Phoenix police are resisting federal accountability after the Justice Department released a scathing report that detailed a disturbing pattern of violating the civil rights of minority groups and unhoused people. The Phoenix Police Department has developed a reputation as America’s deadliest police department in recent years, and public reporting on officers’ violence prompted a multiyear probe in 2021. When the report was released late last week, it affirmed what many activists from Arizona have long claimed: that Phoenix police have effectively had carte blanche to mistreat residents. “The Justice Department has concluded there is reasonable cause to believe that the City of Phoenix and the Phoenix Police Department engage in a pattern or practice of conduct that deprives its residents and visitors, including Black, Hispanic, and Native American people, of their rights under the Constitution and federal law,” Attorney General Merrick Garland said in a statement. As NBC News reported: The Phoenix Police Department uses excessive force, violates constitutional rights, particularly those of homeless people, and discriminates against Black, Hispanic and Native American people, according to the results of an investigation by the Justice Department released Thursday. The Justice Department found a “pattern or practice” of violations, saying Phoenix police frequently stop, detain and arrest homeless people without reasonable suspicion that they’ve committed any crime. The city and its police department also seize and destroy the property of homeless people without providing adequate notice or fair opportunity to collect their belongings, the Justice Department said. The report found that Black drivers in Phoenix are 144 times more likely than white drivers to be arrested or cited for low-level traffic infractions, while nonwhite Hispanic drivers were 40% more likely than white people to be arrested or cited for such violations. The DOJ also confirmed reporting that Phoenix police officers circulated a commemorative coin that made light of an incident involving an officer who shot a protester in the groin with a pepper ball during a mass demonstration in 2017. In the months leading up to the report, Phoenix police officials tried to pre-empt it with a pressure campaign to discourage the city from entering a consent decree with the federal government that would authorize federal oversight of the department. Leaders of the Phoenix police union expounded upon those fears in a press conference last week in which they denounced the DOJ report and pushed debunked claims that federal accountability could harm officer morale. Since the report dropped, victims of police misconduct have spoken out to demand changes. Both Phoenix’s police chief and Democratic Mayor Kate Gallego have been noncommittal about what reforms might follow or whether they would accept a consent decree. A letter sent to Garland by the city attorney on Thursday cited the City Council's investment in "substantial public expenditures and ... significant projects," such as body cameras and funding to address mental health and homelessness, ABC 15 reports. There are 2024 election implications here, too. Arizonans this fall will vote on a ballot measure that would allow local police to carry out immigration enforcement, a legally dubious policing plan modeled after a previous Arizona law that permitted widespread racial profiling. The outcome of the presidential election is also likely to influence whether Phoenix police or any police department, for that matter, face accountability for misconduct. While Biden’s administration is holding Phoenix police to account, Donald Trump has vowed to “indemnify” police from misconduct if he is elected president. The stakes could not be more clear.

Hargreaves Lansdown says it will accept private equity buyout offer 2024-06-18 18:19:00+00:00 - British investment fund supermarket Hargreaves Lansdown has said it will accept a proposed offer from a trio of private equity investors, meaning another of the UK’s biggest companies will leave the FTSE 100 index. In a stock market filing on Tuesday, the company said that the US private equity firm CVC, Denmark’s Nordic Capital and a subsidiary of the Abu Dhabi Investment Authority (ADIA) had made an offer worth £11.40 a share in cash. It was the fourth proposed offer in recent months, Hargreaves Lansdown said. The first, revealed in May, was worth £9.85 a share. Hargreaves Lansdown’s share price has risen by more than half since the end of February. Its share price was up 5% on Tuesday, hitting £11.30, in response to the proposal, making it the biggest riser in the FTSE 100. The bidders have until 5pm on 19 July to make a firm offer, after the company asked for an extension to the deadline under takeover rules. If successful, the buyout would add Hargreaves Lansdown to a long list of companies leaving the FTSE 100 index. Some UK executives and investors are concerned that London-listed companies are undervalued compared with peers in the US. Recent departures from the FTSE 100 include the building materials company CRH, which last year shifted its main stock market listing to the US, and the Anglo-German tourism company Tui, which voted to move its main listing from London to Frankfurt earlier this year. The Bristol-based Hargreaves Lansdown pioneered the business of selling units of investment funds online. At the end of March it administered £150bn in assets for 1.86 million clients. However, the company’s share price has struggled in recent years, with analysts concerned about rising costs and risks relating to a major investment plan. The private equity offer values Hargreaves Landown at just over half of its 2019 peak. Its billionaire founders, Peter Hargreaves and Stephen Lansdown, are still major shareholders, with stakes that would be valued at £1.07bn and £308m respectively if they were to sell, according to analysis of data from S&P Global Market Intelligence. 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 Shareholders will also be able to continue to hold their investments in the unlisted company if the sale goes ahead. The company said that it “remains confident in management’s ability to execute Hargreaves Lansdown’s strategic priorities” and in the company’s “fundamental longer-term prospects”, but added that the board would be “willing to recommend” an offer at the new offer price.

Congressional Budget Office raises this year’s federal budget deficit projection by $400 billion 2024-06-18 18:18:56+00:00 - WASHINGTON (AP) — The Congressional Budget Office said Tuesday that it projects this year’s federal budget deficit to be $400 billion higher, a 27% increase compared to its original estimate released in February. The major drivers of the change include: higher costs from the supplemental spending package signed in April that provides military aid to Ukraine and Israel; higher than estimated costs of reducing student loan borrower balances; increased Medicaid spending; and higher spending on FDIC insurance after the agency has not yet recovered payments it made after the banking crises of 2023and 2024. The report also projects that the nation’s publicly held debt is set to increase from 99% of gross domestic product at the end of 2024 to 122% of GDP — the highest level ever recorded — by the end of 2034. “Then it continues to rise,” the report states. Deficits are a problem for lawmakers in the coming years because of the burden of servicing the total debt load, an aging population that pushes up the total cost of Social Security and Medicare and rising health care expenses. The report cuts into President Joe Biden’s claim that he has lowered deficits, as borrowing increased in 2023 and is slated to climb again this year. The White House budget proposal released in March claims to reduce the deficit by roughly $3 trillion over the next 10 years and would raise tax revenues by a total of $4.9 trillion in the same period. White House spokeswoman Karine Jean-Pierre, said in a statement that the report “is further evidence of the need for Congress to pass President Biden’s Budget to reduce the deficit by $3 trillion — instead of blowing up the debt with $5 trillion of more Trump tax cuts.” A May CBO report estimates that extending the provisions of Trump’s Tax Cuts and Jobs Act would increase deficits by nearly $5 trillion into 2034. Trump, as a candidate for president in 2024, recently told a group of CEOs that he would further cut the corporate tax rate he lowered while in office, among other things. The Committee for a Responsible Federal Budget estimates that the 10-year cost of the legislation and executive actions former President Donald Trump signed into law was about $8.4 trillion, with interest. In a statement, House Budget Committee Chairman Jodey Arrington, R-Texas, responded to the increased deficit forecast by saying that “Congress must reverse the spending curse of the Biden Administration by undoing expensive and overreaching executive actions.” Arrington added that “we must address the most significant debt drivers of our mandatory spending,” a category in the budget that includes Social Security and Medicare. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said the CBO projections show that the outlook for America’s critical national debt challenge is worsening. “The harmful effects of higher interest rates fueling higher interest costs on a huge existing debt load are continuing, and leading to additional borrowing. It’s the definition of unsustainable,” Peterson said. “The leaders we elect this fall will face a series of highly consequential fiscal deadlines next year, including the reinstatement of the debt limit, the expiration of the 2017 tax cuts and key decisions on healthcare subsidies, discretionary spending caps and more.”

Dollar Tree left lead-tainted applesauce pouches on store shelves for weeks after recall, FDA says 2024-06-18 18:14:05+00:00 - Dollar Tree failed to effectively recall lead-tainted applesauce pouches linked to reports of illness in more than 500 children, leaving the products on some stores shelves for two months, the Food and Drug Administration said Tuesday. The FDA sent a warning letter to Dollar Tree this month and placed Negasmart, the Ecuadorian distributor of WanaBana apple cinnamon pouches, under import alerts following the October 2023 recall of the products found to be contaminated with “extremely high” levels of lead and chromium. Children in 44 states had probable or confirmed cases of elevated blood lead levels after eating the applesauce pouches marketed for toddlers, according to the U.S. Centers for Disease Control and Prevention. The outbreak was declared over in April. FDA officials sent a warning letter to Dollar Tree Inc. last week saying the WanaBana apple puree products remained on store shelves in several states through late December, two months after the firm was told about the recall. Officials at the Chesapeake, Virginia-based company had said they disallowed sales of the products at registers, but the FDA said that was “not an effective measure” because at least one child in Washington state ate a recalled fruit pouch in a store before an attempted purchase. Dollar Tree officials said in an email Tuesday that the company is operating under new management and is taking steps to bolster its process “for quickly and effectively executing product recalls.” The company operates more than 16,000 discount stores in 48 states. Negasmart was placed under multiple import alerts this month, even though FDA officials said they had no indication that the firm is attempting to import products into the U.S. The action is to ensure that any attempt by the firm to import products would be “flagged” by FDA reviewers and prevented from reaching consumers. Tests showed that cinnamon tested from the plant had lead levels more than 2,000 times higher than a maximum level proposed by the FDA. Anyone who consumed the recalled pouches should consult with a health care provider, the CDC said. There is no safe level of lead consumption, which can cause serious learning and behavior problems, the agency emphasized. The pouches include those sold under the WanaBana brand at Dollar Tree stores and online and under the Schnucks and Weis brands in stores. Because they have a long shelf life, they may still be in consumers’ homes. Consumers should not eat or serve the pouches and should discard them. ___ The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

How Biden can push back on Trump attacks about his age 2024-06-18 18:09:18+00:00 - In an attempt to take a shot at Joe Biden’s age, the Republican National Committee last week put out a grossly misleading video of the president at the G7 meeting. It was replayed by conservative media outlets over and over again. Will this strategy work? Yes, because most Americans believe both Biden and presumptive Republican nominee Donald Trump are too old to run the country. But also because not everyone ages the same way. Given the choice, I would rather have someone who shuffles a bit and at times appears a little frail than a man who is clearly unhinged and cannot hold a train of thought. Just last week, CNBC reported that after business leaders met with Trump, they were less likely to support him because he was “all over the map” and “doesn’t know what he’s talking about.” Biden's response has been to use humor to deflect the criticism. Biden's response has been to use humor to deflect the criticism. It's in keeping with a broader campaign tactic, as when he closed his video agreeing to a debate by saying he heard that Trump is free on Wednesdays — a reference to Trump's trial schedule. Next week, the two men will meet for a 90-minute debate. They have both agreed to the rules that include no audience and muted mics that will only be on when it is the candidate’s turn to speak. This will be challenging for both candidates. Much has been made about whether and how Biden should address the age issue. The fact is, Biden is going to appear older than Trump, but that will not be the comparison people will notice at the debate. With this format, Biden will be able to address the real issues facing our country, with knowledge and facts, compared to Trump, who rambles and lies. As with the State of the Union, the debate will be a chance for Biden to show he's still sharp, despite physically slowing down. His light-handed approach so far seems like a smart way to show a contrast. My only advice to President Biden would be that he should not, under any circumstances, challenge Trump to a pushup contest. Sign up for MSNBC’s new How to Win 2024 newsletter and get election insights like this delivered to your inbox weekly.

U.S. Debt on Pace to Top $56 Trillion Over Next 10 Years 2024-06-18 18:00:07+00:00 - The United States is on a pace to add trillions of dollars to its national debt over the next decade, borrowing money more quickly than previously expected, at a time when big legislative fights loom over taxes and spending. The Congressional Budget Office said on Tuesday that the U.S. national debt is poised to top $56 trillion by 2034, as rising spending and interest expenses outpace tax revenues. The mounting costs of Social Security and Medicare continue to weigh on the nation’s finances, along with rising interest rates, which have made it more costly for the federal government to borrow huge sums of money. As a result, the United States is expected to continue running large budget deficits, which are the gap between what America spends and what it receives through taxes and other revenue. The budget deficit in 2024 is projected to be $1.9 trillion, up from a forecast earlier this year of $1.6 trillion. Over the next 10 years, the annual deficit is projected to swell to $2.9 trillion. As a share of the economy, debt held by the public in 2034 will be 122 percent of gross domestic product, up from 99 percent in 2024. The new projections come as lawmakers are gearing up for a big tax and spending battle. Most of the 2017 Trump tax cuts will expire in 2025, forcing lawmakers to decide whether to renew them and, if so, how to pay for them. The United States will also again have to deal with a statutory cap on how much it can borrow. Congress agreed last year to suspend the debt limit and allow the federal government to keep borrowing until next January.

Horizon IT scandal investigator tells inquiry Post Office was ‘sabotaging our efforts’ 2024-06-18 17:16:00+00:00 - An investigator appointed to look into concerns about the Post Office’s Horizon IT system in 2012 came to believe that he was “dealing with a cover-up” by the state-owned body, which made “various threats” against him, a public inquiry has heard. Ian Henderson, a chartered accountant, and his colleague Ron Warmington, who ran Second Sight Investigations, were appointed in 2012 to review cases of post office operators after MPs raised concerns about possible miscarriages of justice involving the Post Office’s Horizon IT system. Second Sight’s fees were paid by the Post Office, which had agreed to cooperate with the investigation. However, Henderson said that after the first year of investigation, he believed the Post Office “was constantly sabotaging our efforts” to seek the truth and used claims of legal professional privilege – a type of confidentiality which covers legal documents – “to justify withholding documents from us”. Henderson told the inquiry that Paula Vennells, the then chief executive, “frequently and consistently attempted to steer Second Sight away from investigating potential miscarriages of justice”. “When I first met Paula Vennells, she told me that POL [Post Office Ltd] was the nation’s most trusted brand with a history of over 400 years. As our work continued, I increasingly formed the view that because of this history, POL somehow felt it was above the law,” he said. “We tried to go where the evidence took us, but increasingly we were finding evidence of questionable conduct by POL, some of which, in my opinion, was probably criminal,” Henderson added. He said by February 2015 he no longer believed the Post Office was taking Second Sight’s concerns about the Horizon IT system seriously. “I felt we were dealing with a cover-up by POL and possibly a criminal conspiracy,” he said. Henderson told the inquiry that, during a short-lived mediation scheme for post office operators set up in 2014, Chris Aujard, the acting head of legal at the Post Office, “warned me to be careful about what I said”. Aujard had said the state-owned body “would not hesitate to take legal action against me” under a “draconian” non-disclosure agreement (NDA) which he had signed, Henderson said. “I took this as a thinly veiled threat to bankrupt me if I continued causing trouble,” Henderson said in his witness statement. “I was concerned about the various threats that had been made to me by POL concerning alleged breaches of my NDA and my duties of confidentiality … The most likely threats appeared to be an action for defamation, breach of confidence or breach of contract.” The inquiry heard that Henderson became concerned after reviewing the case file of Jo Hamilton, one of the most high-profile victims of the scandal, who had been charged with theft and false accounting by the Post Office. Henderson said the Post Office’s decision to charge Hamilton did not seem to be supported by its own internal security report, and there was evidence that “potentially exculpatory material” had not been disclosed to her at trial or subsequently. “I regarded this as either professional misconduct or, potentially, criminal conduct,” he said. Henderson said he believed that the Post Office eventually terminated Second Sight’s contract in March 2015 because the investigators were “getting too close to the truth”. 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 He added: “Our overriding duty was, in a phrase attributed to Alan Bates, to help ‘the skint little people’ who didn’t have a voice and had been so badly treated.” Warmington, the co-director of Second Sight, told the inquiry that in 2014 he had described the Post Office as having the “worst corporate behaviour I have ever come across”. He said Vennells appeared to have “conveyed an extraordinarily rosy summary” of Second Sight’s interim report to the board in July 2013. He added: “I wish that I had demanded, rather than asked, to more frequently see Paula Vennells, but also, when I was doubting whether the truth was penetrating through to her and the board, I should have demanded to address POL’s full board.” The public inquiry is examining the Post Office Horizon IT scandal and why the state-owned body hounded post office operators for more than a decade, alleging financial shortfalls in their branch accounts and criminally prosecuting hundreds of people. It has since emerged that these financial discrepancies were caused by IT bugs within the Post Office Horizon computer system. The inquiry continues.

Texas court dismisses Exxon’s lawsuit against climate activist shareholders 2024-06-18 17:04:00+00:00 - A federal court in Texas has dismissed a lawsuit brought by ExxonMobil against activist shareholders pushing for the oil giant to reduce greenhouse gas emissions as well as contributions to anthropogenic climate change. The lawsuit aimed at Arjuna Capital was dismissed after a lawyer for the activist investor group agreed not to pursue its effort to put climate science on the agenda at the company’s annual meetings. At heart, the dispute centered on whether climate risk is a legitimate business concern and part of a corporate pushback against shareholder proposals. Exxon’s lawsuit had raised alarm among investors that by going through the courts rather than regulators at the US’s Securities and Exchange Commission (SEC) because it could restrict the ability of shareholders to raise concerns with public companies. In the ruling, US district court judge Mark Pittman said Exxon’s claim was no longer valid after Arjuna “unconditionally and irrevocably” agreed not to submit a future proposal regarding Exxon’s greenhouse gas emissions. “Our lawsuit put a spotlight on the abuse of the shareholder-access system,” Exxon said in a statement. “The court has made absolutely clear that Arjuna cannot continue abusing the process. Shareholder democracy is only as strong as the rules that govern it, which must be fairly and consistently applied.” Netherlands-based climate group Follow This, which had been joined to the Arjuna claim, characterized the order as a victory for climate activists. “The dismissal of Exxon’s lawsuit against shareholders is a victory for all investors who want to safeguard the long-term future of US oil and gas companies and the global economy in view of the climate crisis,” said Follow This founder Mark van Baal. “The right for shareholders to file proposals has not been compromised as no precedent about the application of the SEC rules and use of shareholder rights has been created, which was the ultimate goal of pulling our proposal.” Van Baal said that withdrawing the lawsuit was “the toughest decision in the history of Follow This, but we had to take one for the team, the global team of responsible investors. We are glad that our withdrawal was not in vain.” Exxon had sued Follow This and Arjuna in January and had refused to drop the case after they agreed not to bring the shareholder petition forward. The company cited “the likelihood” the two could file similar resolutions in the future. Exxon had been backed by the US Chamber of Commerce and the business roundtable trade groups who said that government regulators’ decision to allow “shareholder proposals pushing social and political agendas” enables “a subset of activists to commandeer corporate proxy statements for their own parochial ends”.

New Boeing whistleblower alleges faulty airplane parts may have been used on jets 2024-06-18 16:14:00+00:00 - A new whistleblower report alleges some faulty airplane parts may have been used on Boeing jets. It comes as the company has faced a series of safety and quality concerns, including a door panel that blew off an Alaska Airlines plane mid-flight in January. The new complaint is from Boeing employee Sam Mohawk, who claims that when Boeing restarted production of the 737 Max after two deadly crashes in 2018 and 2019, there was "a 300% increase" in reports about parts that did not meet manufacturer standards. While those parts were supposed to be removed from production and closely tracked, the report alleges "the 737 program was losing hundreds of non-conforming parts." "Mohawk feared that non-conforming parts were being installed on the 737s and that could lead to a catastrophic event," according to the report. Boeing's outgoing CEO Dave Calhoun is set to testify Tuesday before the Senate on Capitol Hill. The document also claims that when Boeing learned of a pending FAA inspection last June, many parts were moved to another location to "intentionally hide improperly stored parts from the FAA." "We received this document late Monday evening and are reviewing the claims," Boeing said in a statement. "We continuously encourage employees to report all concerns as our priority is to ensure the safety of our airplanes and the flying public." In April, Boeing whistleblowers, including Sam Salehpour, a quality engineer at the company, testified to lawmakers over safety concerns. "Despite what Boeing officials state publicly, there is no safety culture at Boeing, and employees like me who speak up about defects with its production activities and lack of quality control are ignored, marginalized, threatened, sidelined and worse," he told members of an investigative panel of the Senate Homeland Security and Governmental Affairs Committee. Boeing denied Salehpour's allegations, and said in a statement, "A 787 can safely operate for at least 30 years before needing expanded airframe maintenance routines. Extensive and rigorous testing of the fuselage and heavy maintenance checks of nearly 700 in-service airplanes to date have found zero evidence of airframe fatigue." Calhoun is also expected during his testimony to outline steps Boeing is taking to make improvements, including its safety and quality action plan recently submitted to the FAA, and tell senators Boeing's culture is "far from perfect, but we are taking action and making progress." "Boeing has adopted a broken safety culture of shut up, not speak up when it comes to its workers reporting problems and that kind of retaliation is a recipe for disaster," Sen. Richard Blumenthal, a Democrat from Connecticut, said. Boeing company leaders met with federal regulators in May to discuss safety and quality concerns. "We reviewed Boeing's roadmap to set a new standard of safety and underscored that they must follow through on corrective actions and effectively transform their safety culture," FAA Administrator Mike Whitaker said. "On the FAA's part, we will make sure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business." Calhoun will leave his position by the end of this year, a new CEO has not been named.

Occidental Stock: Buffett's 9-Day Buying Spree Lifts Stake to 29% 2024-06-18 15:51:00+00:00 - The typical advice in the financial market is to never blindly follow a whale investor like Warren Buffett. However, these investors' reverse-engineering investment decisions can often prove helpful. Today, Warren Buffett didn't buy more shares of Occidental Petroleum Co. NYSE: OXY because the economy is slowing but because a commodity supercycle could be about to push oil prices higher. Occidental Petroleum Today OXY Occidental Petroleum $61.26 +1.06 (+1.76%) 52-Week Range $55.12 ▼ $71.18 Dividend Yield 1.44% P/E Ratio 16.74 Price Target $71.50 Add to Watchlist After nine consecutive days of buying, which isn’t usual for Buffett, it looks like the oracle of Omaha found a company worthy of his recent all-time high cash pile held inside Berkshire Hathaway Inc. NYSE: BRK.A. Buffett’s stake in Occidental is now as high as 29%, which is something to consider going forward. Get Berkshire Hathaway alerts: Sign Up But Occidental doesn’t operate by itself in the energy sector. Competitors like Hess Co. NYSE: HES, Chevron Co. NYSE: CVX, and even Exxon Mobil Co. NYSE: XOM are the ones to peg Buffett’s choice against in this coming cycle, and for reasons that will become clear in just a bit, Occidental stock is the one that deserves – not only Buffett’s – the market’s attention. Buffett’s Insights: Why the Energy Sector is Set to Surge While not publicly quoted, investors can attempt to navigate Buffett’s mind by breaking down the drivers behind the potential oil rally coming up. Starting at the top, here’s how the U.S. economy is today. It could be better, as GDP growth was revised to only 1.3% over the past quarter. Now, that only gives the Federal Reserve (the Fed) another reason to consider cutting interest rates this year, where the CME's FedWatch tool predicts these cuts to come by September 2024. Another pain point can be found inside the ISM manufacturing PMI index, which has been contracting for over a year and a half. However, the latest issue (covering the manufacturing sector for May) showed the oil industry going on a sudden breakout. New orders increased, production increased, and employment increased. These three measures carry arguably the heaviest weighing inside the PMI report, so investors can see how the oil industry is getting ready to ramp up production despite being inside a contraction. And that’s good for a cheap stock like Occidental Petroleum. Warren Buffett Sees Opportunity in Occidental Petroleum's Discounted Stock Occidental stock is a potential steal today on a price-to-free cash flow basis. The company’s financials show That It generated a five-year average free cash flow (operating cash flows minus capital expenditures) of $6.4 billion. Occidental Petroleum MarketRank™ Stock Analysis Overall MarketRank™ 4.30 out of 5 Analyst Rating Hold Upside/Downside 16.7% Upside Short Interest Bearish Dividend Strength Moderate Sustainability -8.07 News Sentiment 1.11 Insider Trading Acquiring Shares Projected Earnings Growth 28.53% See Full Details Occidental stock has a $54.4 billion market capitalization today, which is 8.5 times its five-year average free cash flow. Exxon Mobil stock is 15.6 times, Chevron is 14.3 times, and Hess is over 100 times. More than that, Occidental’s free cash flow has grown at a five-year compounded average growth rate (CAGR) of 40%, making it a steady and predictable return on Buffett’s investment. Because Occidental stock has superior profitability at a discount in this case, Wall Street analysts have chosen to reflect this fact for the next 12 months. Current earnings per share (EPS) growth projections stand at 28.5% for Occidental stock, where its peers also fall behind. Chevron’s EPS is set to grow by 15.6%; analysts couldn’t find a reason to push Exxon’s future EPS above 8.8%. While Hess got closer to Occidental stock with its 17.3% projection, it still falls behind by over 10%. With this growth in mind, Buffett isn’t the only one who thinks Occidental Petroleum stock could have some decent upside ahead. Scotiabank boosted its valuations on Occidental stock as high as $90 a share, daring the stock to rally by 46.3% from where it sits today. Goldman Sachs Supports Warren Buffett's Oil Investment Thesis For better or for worse, Goldman Sachs predicts that oil prices could reach $100 a barrel this year. The factors driving this push can be tied to the recent breakouts in the manufacturing PMI or the fact that potential interest rate cuts could boost business activity overall. As businesses access cheaper financing and demand trends rise on a more confident consumer, oil will be in the eye of the demand storm. Buffett is known for taking the long-term view, so here’s a guesstimate of where that view is. Rising trends in the artificial intelligence space are also bullish for oil; why? Well, data centers and computing power will draw on a significant amount of energy to function and train these AI models, and that’s where fossil fuel energy sources (like oil) will come into play. In other words, Nvidia’s success could also be Occidental stock’s success or at least a portion of it. Occidental Petroleum Co. (OXY) Price Chart for Tuesday, June, 18, 2024 Before you consider Berkshire Hathaway, 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 Berkshire Hathaway wasn't on the list. While Berkshire Hathaway currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

HSBC’s Swiss private banking arm breached money-laundering rules, regulator finds 2024-06-18 15:45:00+00:00 - HSBC’s Swiss private banking arm breached money-laundering rules by failing to carry out adequate checks on the high-risk accounts of two politically exposed individuals, Switzerland’s banking regulator has found. HSBC Private Bank (Suisse) has been banned from taking on any new high-risk customers until it has completed a full review of its business relationships, Switzerland’s Financial Market Supervisory Authority (Finma) said. The watchdog found that the bank had operated two high-risk business relationships where it had failed to carry out an adequate check of either the origins, purpose or background of the assets involved. A number of high-risk transactions were insufficiently clarified and documented, making it impossible to establish their legitimate nature. They were carried out between 2002 and 2015 and totalled more than $300m (£236m, €279m). The funds, which originated from a government institution, were transferred from Lebanon to Switzerland and, usually after a short time, flowed back to other accounts in Lebanon. HSBC said it would appeal against the decision. It said: “We acknowledge the matters raised by Finma, which are historic. HSBC takes its anti-money-laundering obligations very seriously including complying with all laws and regulations in every market we operate in. As we plan to appeal the decision it would be inappropriate to comment further.” Finma, which opened enforcement proceedings against HSBC in December 2021, said it had “breached its obligations in the prevention of money laundering in connection with two politically exposed persons and thereby seriously violated financial market law”. The regulator said that until the measures had been implemented in full, the bank may not enter into any new business relationships with politically exposed persons. It added that the bank had cooperated with Finma. 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 watchdog has ordered the bank to review all its high-risk business relationships and business relationships with politically exposed persons. It must also check the correct categorisation of the risks presented by other customers. An audit agent will monitor the implementation of these measures on site, and report to Finma.

Apple discontinues its buy now, pay later service in the U.S. 2024-06-18 15:42:00+00:00 - New protections for "buy now, pay later" shoppers New protections for "buy now, pay later" shoppers Apple has shut down its buy now, pay later service known as Apple Pay Later, less than a year after launching it. The service was discontinued in the U.S. as of Monday, ahead of Apple's launch of new Apple Pay features, set to hit iPhones this fall. The changes will let Apple Pay users make purchases, as well as access installment loans through Affirm. "With the introduction of this new global installment loan offering, we will no longer offer Apple Pay Later in the U.S." Apple said in a statement to 9to5mac. "Our focus continues to be on providing our users with access to easy, secure and private payment options with Apple Pay, and this solution will enable us to bring flexible payments to more users, in more places across the globe, in collaboration with Apple Pay-enabled banks and lenders," the company added. Apple Pay users with active Apple Pay Later loans can still manage them through the Apple Wallet app, the company told 9to5mac. Apple did not immediately respond to CBS MoneyWatch's request for comment on the discontinuation. More than 40% of Americans say they have used so-called buy now, pay later services, according to a Lending Tree survey. The loans are designed to encourage consumers to borrow in order to spend more, and users are subject to fees if they miss payments, which can lead to their accumulating debt. In 2021, buy now, pay later loans totaled $24 billion, up from $2 billion in 2019, according to a CFPB report. The popular payment option has become ubiquitous in stores and online, but many consumers struggle with the "pay later" part of the equation. Financial regulators have been studying the industry since 2021, and have since issued rules designed to protect consumers. For example, in May, the CFPB issued a rule mandating that BNPL lenders give consumers the same protections that apply to conventional credit cards, including the right to dispute charges and receive a refund from a lender after returning a purchase made with a BNPL loan.

E.V. Maker Fisker Files for Bankruptcy as Cash Runs Short 2024-06-18 15:23:56+00:00 - Fisker filed for bankruptcy protection late on Monday, the latest start-up in the electric vehicle industry to fall short after raising large amounts of money from investors with lofty expectations. Fisker’s bankruptcy filing, roughly one year after it delivered its first vehicle and almost four years after it went public, came after months of doubts about its financial viability. The start-up repeatedly cut production targets for its flagship Ocean S.U.V. and faced escalating financial turmoil, warning of “substantial doubt” that it could continue as a going concern in February, pausing production in March and defaulting on a loan repayment in May. Talks with another automaker about a potential investment broke down earlier this year, and the company’s beaten-down stock, once worth several billion dollars, was delisted from the New York Stock Exchange for “abnormally low” price levels. Fisker had delivered over 6,400 vehicles by mid-April, it said. It outsourced production and emphasized its design and software, such as a rotating dashboard screen.

3M Stock: Invest Now for Unmatched Quality and Growth Potential 2024-06-18 15:04:00+00:00 - 3M NYSE: MMM is turning a corner. The company wasn’t hurt by ailing business so much as lawsuits related to legacy businesses that are now primarily in the past. The settlements may still be appealed or amended, but the $18-odd billion in damages is close to the final payments expected. The takeaway is that headwinds are diminishing for this well-positioned industrial giant, and now, catalysts are in play. 3M Today MMM 3M $100.77 +0.24 (+0.24%) 52-Week Range $71.12 ▼ $106.04 Dividend Yield 2.78% Price Target $111.58 Add to Watchlist Among the catalysts is Bill Brown's appointment to the CEO suite. Mr. Brown comes from L3Harris Technologies NYSE: LHX and brings a wealth of experience and knowledge to the business. His appointment and receding headwinds have the analysts raising their ratings and targets, leading this market higher. Get 3M alerts: Sign Up Upgraded Analyst Ratings Boost 3M's Market Prospects There is a profound shift in the analysts' sentiment. Since January, the series of sentiment upgrades and price target revisions have lifted the consensus rating from Reduce to Hold and the high-end of the Hold range, verging on Moderate Buy. The price target is still down compared to last year but up significantly off the lows, leading the market. The consensus projects an 11% upside, with a high-end potential of 30%-40% upside. This could push the market above the long-term moving average, break critical resistance, and reach an 18-month high. The five latest updates are the most promising. Starting with HSBC in May, the stock has received four upgrades to Buy and five price target revisions ranging from an above-consensus target of $115 to the new high target of $140. HSBC cited the company's quality and easing headwinds, while Vertical Research makes note of persistent uncertainties but views risk as to the upside. Bank of America and Wolfe Research are baking on the new CEO, whose reputation includes operational intelligence and savvy, practical application. His last project is highlighted by outperformance, which is now expected for 3M. 3M's Dividend Cut Not a Worry for Investors 3M Dividend Payments Dividend Yield 2.78% Annual Dividend $2.80 Dividend Increase Track Record 67 Years Annualized 3-Year Dividend Growth 0.68% Dividend Payout Ratio -22.01% Recent Dividend Payment Jun. 12 See Full Details Dividend cuts are never a good thing in the eyes of investors, but there are mitigating factors for 3M. Aside from the fact that the earplug and forever-chemical litigation was a cloud over the company that might have led to a cut, the cut is because of the recent spin-off of Solventum NYSE: SOLV. The spin-off created a stand-alone healthcare company and was paid as a dividend. The cut to 3M’s payment aligns the distribution with payout-ratio targets and keeps it healthy. The yield is also healthy at nearly 3%, with shares trading at $100. The balance sheet is in good shape despite the settlement payments. Payments have yet to begin but have been structured over 13 years (for PFAS), and reserves have been recorded as sufficient to cover the earplugs. The takeaway is that debt rose significantly over the last year but is offset by increased cash, assets, total assets, and reduced liabilities. Equity is up and expected to continue rising for the foreseeable future. A Bullish Reversal is in Play for 3M The technical outlook for 3M is bullish and may soon result in a new high. The market is up 50% from its low and on track to complete a Head & Shoulders Reversal Pattern. The critical resistance is near the long-term exponential moving average at $105. A complete reversal is confirmed if the market can rise above it, and a sustainable uptrend may form. Trading at 14x earnings is a deep value relative to the S&P 500 and pays substantially more in dividends. Before you consider 3M, 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 3M wasn't on the list. While 3M currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Unlikely World Cup Victories Raise Cricket’s Profile in U.S. 2024-06-18 14:53:41+00:00 - When Harmeet Singh left India in 2020, he was looking for a fresh start. His career as a cricket player had stagnated, and his dream of making the Indian national team — and playing in the World Cup, the sport’s biggest stage — was fading. His destination was the United States, where cricket had long struggled to gain any kind of mainstream visibility, and professional opportunities were typically sparse. Arriving during the pandemic on a special visa given to individuals with extraordinary abilities, Mr. Singh made around $60,000 a year by playing for the U.S. men’s national cricket team and in small leagues, and coaching on the side as part of his contract. This month, his decision is paying off in a big way. Mr. Singh and the U.S. team defeated Pakistan during a Men’s T20 Cricket World Cup match on June 6, shocking the sport. On Friday, the team advanced to the second stage of the tournament, the first to be held in part in America, which is sharing hosting duties with several Caribbean nations. The United States next plays on Wednesday against South Africa in Antigua, the first of three matches in the second stage. The team’s success has been the latest event to help boost cricket’s profile in the United States, where the sport has seen a surge in investment in recent years. Cricket still faces notable obstacles in trying to attain more widespread popularity, some of which have been highlighted by the tournament. But the most passionate backers are bullish on the sport’s trajectory.

Titan Disaster Forces Global Rethinking of Deep Sea Exploration 2024-06-18 14:15:22+00:00 - When five men died on June 18, 2023, in the implosion of the Titan submersible during a dive to the Titanic’s resting place, the knowledge of Paul-Henri Nargeolet was lost too. It was Nargeolet’s 38th dive to the sunken liner. Known as Mr. Titanic, he helped retrieve thousands of artifacts that have been displayed in museums and at events around the world. One year later, the company he worked for as director of underwater research is preparing a July expedition that will employ a pair of robots instead of people in submersibles looking for more treasures to bring up in the future. Jessica Sanders, president of RMS Titanic which is organizing the expedition, said, “there’s an art to artifact recovery and a human element that technology can never replace — and shouldn’t.” She said Mr. Nargeolet had embodied that kind of expertise. On the other hand, she said the results of the robotic expedition, “will speak for themselves.” The plans of Mr. Nargeolet’s former employers show one of the more immediate effects of the Titan disaster: a prioritization of robots for plying the icy depths in place of humans piloting submersibles. The robots are seen as safer.

Super Micro AI Stock: Should You Invest After a 275% Increase? 2024-06-18 13:57:00+00:00 - The artificial intelligence (AI) sector is experiencing explosive growth, captivating investors and sending ripples through the stock market. Super Micro Computer NASDAQ: SMCI is a leading high-performance computing and AI infrastructure provider. Super Micro’s financials show that it has been a beneficiary of the artificial intelligence boom, witnessing a remarkable 275% surge in its stock price since the start of the year. This impressive performance raises a critical question for investors: is it too late to buy into Super Micro, or does the company still hold significant upside potential? Get Super Micro Computer alerts: Sign Up Super Micro Stock Performance Reaches New Heights Super Micro Computer Today SMCI Super Micro Computer $920.01 +32.60 (+3.67%) 52-Week Range $213.08 ▼ $1,229.00 P/E Ratio 51.57 Price Target $954.38 Add to Watchlist Super Micro's stock has experienced a dramatic upswing, reaching new heights this year. SMCI's share price is currently over $885.00, representing a substantial year-to-date gain of 275%. This performance is further highlighted by the stock's 52-week range, which extends from a low of $213.08 to a high of $1,229.00. The recent trading activity also reflects significant investor interest, with the stock experiencing a volume of 8.85 million shares traded, exceeding its average daily volume of 8.64 million. This heightened trading activity suggests strong confidence in the company's future prospects. This surge is directly linked to the rapid growth of the AI market. Super Micro's core business revolves around providing high-performance servers essential for developing and deploying AI applications. As the demand for AI technologies continues to escalate across most market sectors, Super Micro's products are becoming increasingly sought after. This dynamic connection between the company's business model and the AI boom is a primary driver of its stock's impressive performance. Institutional Investors Show Strong Confidence in Super Micro Beyond the generally positive sentiment surrounding the AI market, a closer look at Super Micro's ownership data and recent trading activity reveals a compelling trend: institutional investors are placing substantial bets on the company's future. Institutional investors, such as hedge funds, large investment firms, and pension funds, typically have access to more information and resources than retail investors, and their moves often signal significant market insights. Super Micro Computer MarketRank™ Stock Analysis Overall MarketRank™ 4.49 out of 5 Analyst Rating Moderate Buy Upside/Downside 4.4% Upside Short Interest Bearish Dividend Strength N/A Sustainability -1.86 News Sentiment 1.01 Insider Trading Selling Shares Projected Earnings Growth 43.44% See Full Details The recent detection of uncommon trading activity in Super Micro’s options chain proves this institutional interest. These trades, often involving large volumes of options contracts, suggest that these investors anticipate further price increases shortly. This bullish sentiment is reflected in the data, which reveals a total trade value of $923,502 for calls and a total trade value of $111,500 for puts. This activity suggests that most large investors lean towards a bullish outlook for Super Micro. Reviewing Super Micro’s analyst community data reveals a predicted price range for Super Micro spanning from $250.00 to $1,500.00 with a consensus of $954.38. This significant range, with the high end extending significantly higher than the current price point, suggests that these analysts see substantial upside potential in Super Micro's stock, with the current consensus price reflecting a 7.5% increase and the high-end projection predicting a near 70% increase. This analyst data suggests that Super Micro's stock price is expected to move significantly, with a wide range of potential outcomes. Overall, the analyst community appears to be optimistic about Super Micro's future prospects. Evaluating Super Micro's Core Business Model While the AI market hype and institutional activity are significant drivers of Super Micro's stock price, assessing the company's underlying fundamentals is crucial in determining its long-term viability. Super Micro's business model is centered around designing, manufacturing, and distributing high-performance servers tailored for a wide range of applications, including cloud computing, data centers, and the rapidly growing AI market. This strategic focus positions the company to capitalize on the continued expansion of the AI sector. Examining Super Micro's financial health reveals mixed signals. The company boasts a market capitalization of $49.63 billion, indicating its significant scale and prominence within the market. Analyst ratings are generally positive, but the company did experience a quarterly revenue decline, which could raise concerns for some investors. This decline may be attributed to short-term factors such as supply chain disruptions or the sector's cyclical nature. Still, it is an important data point to monitor in upcoming earnings reports. Industry Momentum and Potential Challenges for Super Micro Super Micro's stock performance reflects the broader positive sentiment surrounding the AI sector. Broadcom NASDAQ: AVGO is a leading connectivity, semiconductor, and software provider with significant AI-related growth. Broadcom’s recent earnings report was positive and has further fueled optimism within the sector. Similarly, Oracle NYSE: ORCL, a major player in cloud computing and infrastructure, has provided encouraging guidance relative to the AI sector. Oracle’s fourth-quarter earnings call indicated a growing demand for AI-related technologies. This positive momentum from industry leaders reinforces the favorable conditions for Super Micro's growth. However, investors should remain aware of the potential risks that could impact the company's trajectory. Despite its rapid growth, the AI market is becoming increasingly competitive. Super Micro will need to continue innovating and developing new solutions to maintain its market share and compete with other prominent players. Another key consideration is valuation. The significant stock price increase has pushed Super Micro's price-to-earnings P/E ratio to 49.74. This suggests that the stock may be trading at a premium valuation compared to some of its peers, prompting investors to consider whether the current price reflects future growth potential or indicates a potential overvaluation. Finally, it's essential to acknowledge the inherent volatility associated with the stock market, particularly in high-growth sectors like AI. While the current momentum is positive, investors should be prepared for potential short-term corrections or fluctuations in the market. Investment Considerations for Super Micro's Stock Super Micro's impressive performance and position in a dynamic growth market like AI present compelling reasons for investors to consider the company. Favorable industry trends, strong institutional activity, and the potential for continued AI market expansion create a favorable environment for the company's future. However, investors must carefully weigh these factors against the recent revenue decline and the potential for overvaluation. While Super Micro has undoubtedly benefited from the AI boom, its stock price has risen significantly. This begs the question: has the stock already factored in much of its future growth? Investors must consider their risk tolerance, investment timeline, and due diligence before committing to this stock. Super Micro Computer, Inc. (SMCI) Price Chart for Tuesday, June, 18, 2024 Before you consider Super Micro Computer, 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 Super Micro Computer wasn't on the list. While Super Micro Computer currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

VinFast Auto's EV Sales Target: Stock Market Hype or Reality? 2024-06-18 13:35:00+00:00 - VinFast Auto Today VFS VinFast Auto $3.92 -0.22 (-5.31%) 52-Week Range $2.26 ▼ $93.00 Price Target $9.75 Add to Watchlist VinFast Auto Ltd. NASDAQ: VFS is a Vietnamese manufacturer of electric vehicles (EVs), e-buses, and e-scooters. The start-up company is pursuing an aggressive EV expansion strategy growing in the United States, Europe and Southeast Asia. VinFast officially signed agreements with 12 new dealers in the United States in April 2024, bringing the total dealership count to 18 across seven states, in addition to the 15 operational stores and service centers in California. The company announced its ambitious forecast of hitting 30X to 40X increase in U.S. sales in 2024 over the $6.4 million in 2023. This implies sales of more than $180 million to $240 million in 2024, up from $6.4 million in 2023. VinFast operates in the auto/tires/trucks sector, competing with EV makers like Tesla Inc. NASDAQ: TSLA, Lucid Group Inc. NASDAQ: LCID, and Rivian Automotive Inc. NASDAQ: RIVN. Get VinFast Auto alerts: Sign Up Hype is No Stranger to VinFast VinFast made headlines when its stock surged to a high of $93.00 on August 28, 2023, before selling off to a low of $2.26 on April 22, 2024. A brief meme stock rally recently spiked shares to a swing high of $6.42 before falling back down to a swing low of $3.72. VinFast went public through a reverse merger with a special purpose acquisition company (SPAC). Shares may have finally put in a bottom since they’ve doubled off the lows. The VinFast Line-Up and Infrastructure Its EV line-up consists of four SUVs, from the 5-passenger VF6, VF 7, and VF8 models to the 7-passenger VF9 all-wheel drive (AWD) starting at $69,800. Its vehicles come with a 10-year, 125,000-mile bumper-to-bumper warranty and 24/7 mobile service. Its batteries have a 10-year unlimited-mile warranty. Its connected vehicles have over-the-air (OTA) software updates, continually adding features to enhance performance and improve the ownership experience. VinFast vehicles have access to 100,000 chargers across the United States and an all-in-one VinFast app that provides a comprehensive hub for all charging and maintenance needs. The app also enables in-app payments, trip-planning tools, and remote charging management. VinFast is already manufacturing and delivering vehicles in the United States. It needs to ramp up production to meet its lofty goals. VFS Stock is Attempting to Break Out of a Descending Triangle Pattern The daily candlestick chart on VFS illustrates a descending triangle breakout pattern. The descending trendline formed after peaking at $6.42, capping bounce attempts at low highs until reaching the flat-bottom lower trendline at $3.72. A breakout is attempting to form as shares rise to the upper trendline at $3.90. The daily relative strength index (RSI) is rising through the 50-band. Pullback support levels are at $3.72, $3.20, $2.85, and $2.26. VinFast's Triple-Digit Revenue Growth in Q1 2024 But Larger Losses VinFast reported a Q1 2024 GAAP EPS loss of 26 cents, missing consensus expectations by 2 cents. VinFast recorded a net loss of $618.3 million. Vehicle sales grew 324.4% YoY to $270.5 million. Revenues surged 269.7% to $302.65 million, which still missed consensus estimates by $119.77 million. EV deliveries rose 444% to 9,686. E-scooter deliveries fell 32% YoY to 6,632. As of March 31, 2024, VinFast had 119 global showrooms for its EVs and 235 showrooms and service workshops for e-scooters. Lofty Full-Year Delivery Target of 100,000 VinFast Vehicles Chairman Thuy Le stated that despite temporary market fluctuations in certain regions, the company is confident about the strength of the EV industry's medium and long-term prospects. The full-year delivery target for 2024 is set at 100,000 vehicles. Le commented, "Supportive government policies, the anticipated transition of the EV market from early to mass adoption, and the projected growth in Ex-China markets fuel our confidence. During the first quarter, we strategically expanded our global business, successfully entering new markets and achieving yearly growth in vehicle deliveries." VinFast Provides June 2024 Update and 30x to 40x U.S. Sales Goal On June 14, 2024, VinFast released a statement, "We are expecting a 30x to 40x increase in sales in the U.S. market this year over $6.4 million in 2023 and believe that this growth trajectory can be sustained over the next five years. We also expect to reach a break-even point soon. This outlook reflects our current and preliminary view on the business and existing market conditions, which is subject to change." The company also officially launched its brand in the Philippines in May 2024. It expects to open a series of showrooms and commence sales shortly afterward. VinFast Auto analyst ratings and price targets are at MarketBeat. Before you consider VinFast Auto, 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 VinFast Auto wasn't on the list. While VinFast Auto currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here