Latest News
See the latest news and get GPT analysis of articles
CrowdStrike's Earnings: Consolidation and AI-Driven Growth 2024-06-05 15:33:00+00:00 - CrowdStrike Holdings, Inc. NASDAQ: CRWD is among the top players in the cybersecurity sector, a tech industry subsector. CrowdStrike’s earnings were released for the first quarter of fiscal year 2025, highlighting the company’s strategic focus on platform consolidation and AI-powered solutions. These strategic initiatives are driving significant growth and solidifying CrowdStrike's position as a dominant force in the evolving cybersecurity landscape. Get CrowdStrike alerts: Sign Up CrowdStrike's Earnings Reflect Strong Business Momentum CrowdStrike Today CRWD CrowdStrike $342.18 +36.60 (+11.98%) 52-Week Range $139.37 ▼ $365.00 P/E Ratio 950.53 Price Target $373.95 Add to Watchlist CrowdStrike's Q1 2025 earnings report underscored the company's continued financial performance, demonstrating sustained growth across key operational and financial metrics. The company achieved total revenue of $921.0 million for the quarter, representing a 33% year-over-year increase. This robust revenue growth was driven by strong performance in subscription revenue, which climbed to $872.2 million, representing a 34% year-over-year increase. Professional services revenue also saw a notable rise, growing 18% year-over-year to $48.9 million. The geographic distribution of revenue reflected a consistent pattern, with approximately 68% of total revenue originating from the United States and the remaining 32% from international markets. Further indicative of CrowdStrike's strong business momentum was the company's Annual Recurring Revenue (ARR) performance. Ending ARR for the quarter reached $3.65 billion, representing a 33% year-over-year increase. This growth was fueled by the addition of $212 million in net new ARR, signifying a 22% year-over-year increase. CrowdStrike's commitment to profitability and operational efficiency was evident in its margin performance. Generally accepted accounting principles (GAAP) subscription gross margin remained at 78% for Q1 2025 and Q1 2024. Similarly, the gross margin of non-GAAP subscriptions held steady at 80% for both quarters. Total GAAP gross margin also remained at 76% for the same period. Total Non-GAAP gross margin followed suit, staying at 78% for Q1 2025 and Q1 2024. This consistent margin performance further highlights CrowdStrike's ability to manage costs effectively while driving growth. Moreover, CrowdStrike achieved a non-GAAP operating margin of 22% in Q1 2025, exceeding the 17% achieved in Q1 2024. This improvement demonstrates the company's continued focus on operational leverage and profitability. CrowdStrike’s financial performance translated into robust profitability. GAAP income from operations reached $6.9 million in Q1 2025, a significant improvement compared to the loss of $19.5 million experienced in Q1 2024. Non-GAAP income from operations also saw a marked increase, reaching $198.7 million, compared to $115.9 million in Q1 2024. GAAP net income attributable to CrowdStrike for the quarter climbed to $42.8 million, a substantial improvement from $0.5 million in Q1 2024. Non-GAAP net income attributable to CrowdStrike reached $231.7 million, a notable increase from $136.4 million in Q1 2024. CrowdStrike Holdings, Inc. (CRWD) Price Chart for Wednesday, June, 5, 2024 The company's earnings per share (EPS) also reflected this strong performance. GAAP net income per share attributable to CrowdStrike, diluted, was $0.17 for the quarter, compared to $0.00 in Q1 2024. Non-GAAP net income per share attributable to CrowdStrike, diluted, came in at $0.93 for the quarter, exceeding the $0.57 achieved in Q1 2024. CrowdStrike's strong financial performance was further solidified by its robust cash flow generation. Net cash generated from operations reached $383.2 million in Q1 2025, exceeding the $300.9 million generated in Q1 2024. Free cash flow also experienced a significant year-over-year increase, reaching $322.5 million for the quarter, compared to $227.4 million in Q1 2024. As of April 30, 2024, CrowdStrike held $3.70 billion in cash and cash equivalents. CrowdStrike's Platform Consolidation Strategy: A Foundation for Success CrowdStrike's success hinges on its strategic focus on platform consolidation. The company's Falcon platform, a unified cybersecurity suite, addresses the industry's demand for comprehensive, cost-effective security solutions. Customers are increasingly choosing to consolidate their security needs on a single platform to streamline operations, enhance efficiency, and reduce the overall cost of security. The Falcon platform delivers several tangible benefits for customers, including: Faster Detection and Response: Thanks to the platform's unified approach, customers report significantly reduced alert to resolution times, moving from days and hours to seconds and real-time. Thanks to the platform's unified approach, customers report significantly reduced alert to resolution times, moving from days and hours to seconds and real-time. Extreme Cost Savings: The platform eliminates the need for multiple-point solutions, reducing operational complexity and delivering cost savings. CrowdStrike's customers have reported recognizing $6 of cost savings for every dollar invested in Falcon solutions. The Falcon Flex subscription model further enhances CrowdStrike's platform consolidation strategy. This program allows customers to subscribe to the specific Falcon modules they need, providing flexibility and control over their security investments. Since its inception, Falcon Flex has proven successful, driving broader platform adoption and representing over $500 million in deal value. CrowdStrike's partner ecosystem is also instrumental in the company's platform consolidation strategy. Strategic partnerships with Managed Security Service Providers (MSSPs) and other technology providers expand the platform's reach and facilitate seamless customer transitions. The company is witnessing a shift towards a more consolidated approach to security solutions, with partners prioritizing CrowdStrike on their product line cards. Hypergrowth Solution Areas: Driving Innovation and Expansion CrowdStrike's Q1 2025 earnings report highlighted the rapid growth of several key solution areas within the Falcon platform: Cloud Security: The demand for cloud security solutions is accelerating as organizations shift workloads to the cloud. CrowdStrike's Falcon Cloud Security Suite provides a comprehensive approach to cloud security, offering runtime-centric detection and response capabilities that safeguard cloud workloads and data. The demand for cloud security solutions is accelerating as organizations shift workloads to the cloud. CrowdStrike's Falcon Cloud Security Suite provides a comprehensive approach to cloud security, offering runtime-centric detection and response capabilities that safeguard cloud workloads and data. Identity Protection: CrowdStrike is a pioneer in the Identity Detection and Response (ITDR) category, offering a single-agent solution that provides comprehensive protection against identity-based attacks. CrowdStrike is a pioneer in the Identity Detection and Response (ITDR) category, offering a single-agent solution that provides comprehensive protection against identity-based attacks. LogScale Next-Gen SIEM: CrowdStrike is disrupting the traditional SIEM market with its AI-powered LogScale Next-Gen SIEM solution. This solution is natively integrated within the Falcon platform, leveraging the company's data gravity to deliver superior incident detection and response capabilities. These hypergrowth solution areas demonstrate CrowdStrike's commitment to addressing the evolving needs of the cybersecurity market, driving substantial revenue growth and solidifying its market position. CrowdStrike MarketRank™ Stock Analysis Overall MarketRank™ 4.43 out of 5 Analyst Rating Moderate Buy Upside/Downside 9.8% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.11 News Sentiment 0.59 Insider Trading Selling Shares Projected Earnings Growth 59.82% See Full Details CrowdStrike's strong Q1 2025 earnings and strategic approach to platform consolidation, innovation, and market expansion highlight its continued dominance in the cybersecurity industry. The company is strategically positioned to capitalize on the growing demand for AI-powered and cloud security solutions. At the same time, its commitment to innovation ensures its continued adaptation to the evolving threat landscape. CrowdStrike is well-positioned to remain a critical partner for organizations seeking to protect digital assets in an increasingly complex and interconnected world. Before you consider CrowdStrike, 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 CrowdStrike wasn't on the list. While CrowdStrike currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
New Stock Exchange in Texas Takes Aim at N.Y.S.E. and Nasdaq 2024-06-05 15:29:01+00:00 - A start-up stock exchange headquartered in Dallas and backed by the financial powerhouses BlackRock and Citadel Securities is set to challenge the dominance of the New York Stock Exchange and Nasdaq in the listing and trading of companies and funds. The Texas Stock Exchange, or TXSE, has raised roughly $120 million from more than two dozen investors, including BlackRock and Citadel Securities as well as some unnamed business leaders, according to a statement on Wednesday. The exchange has yet to register with the Securities and Exchange Commission, which will be its primary regulator, but intends to do so later this year. It cannot begin operating without the S.E.C.’s approval. The announcement of the exchange was first reported by The Wall Street Journal. Established exchanges have come under fire in recent years for what some investors have seen as onerous costs for services like accessing trading data, and from companies that have grumbled about regulatory overreach, such as with rules targeting board diversity and governance.
3 Options Strategies to Protect Your Stocks in a Falling Market 2024-06-05 15:08:00+00:00 - While the stock market is near all-time highs again, not all stocks are experiencing the same bullish sentiment. You have probably noticed that a portion of your portfolio underperforming the benchmark indexes. Stocks that underperform when the market rises tend to sell off harder when the markets fall. Even the strongest stocks will eventually sell off either from profit-taking or a trend reversal. If you want to protect your stocks in a falling market, you can use stock options for that purpose. Here are 3 options strategies to protect your stocks in a falling market. There’s (Almost) No Such Thing as a Perfect Hedge You've probably heard that there's really no such thing as a perfect hedge. This is mostly true. The only way to perfectly hedge a stock position is to short-sell the position in another account. Even then, you're paying margin interest on the short position. Get Advanced Micro Devices alerts: Sign Up Our Guinea Pig Applied Micro Devices Stock For each strategy, we’ll use a computer and technology sector stock, semiconductor giant Applied Micro Devices Inc. NASDAQ: AMD, as an example. AMD is trading at $160 on June 4, 2024. The daily candlestick chart appeared to form a bullish ascending triangle but is starting to break down as shares fell under the ascending trendline. The daily relative strength index (RSI) has also turned down through the 50-band. Let’s assume you own 100 shares of AMD stock long-term but want to protect yourself from a sell-off in the event that AMD breaks down. We'll use the July 3, 2024, expiration 31 days out. Here are 3 options and strategies to consider. Strategy #1: Write a Covered Call Writing a covered call is also referred to as selling a covered call. It's not selling a call but selling/writing a covered call, which means you already own the stock in the event it gets assigned. This strategy is similar to collecting rent on your stocks. A covered call strategy protects a portion of the downside since you collect a premium upfront. However, there is a risk of having to sell your position at the selected strike price if the underlying shares surge above it on expiration. Let's select the 70-strike price. This would give us a $4.15 premium, which covers our downside on AMD to $155.85, which is just above the $155 support level. It also enables us to profit an additional $10 if AMD rises to $170 or higher by the July 5, 2024, expiration. Strategy #2: Buy a Protective Put If AMD could get into a serious breakdown, we can take on an insurance policy by buying a protective put. A long put will cost us money out of pocket, like an insurance policy. If AMD doesn't fall, then we lose that money. However, our upside isn't limited like a covered call in the case that AMD surges higher. The put option rises in value as AMD falls under the strike price. We can select that strike price level since $155 is the next support. Since it's an out-of-the-money (OTM) option, our premium will be cheaper, as a $160 put would cost us $7.40. Remember, AMD is a long-term hold in the portfolio, so we want to get some protection in the near term. We would buy the AMD for $155 Put for $5.15. This provides us protection if AMD falls below the $155 support level. Technically, AMD could fall to zero, and we would be protected from $155 down. AMD would need to fall to $149.55 for the put option to reach breakeven. We would still be down the $5 we are willing to stomach on the long-term hold. It's like a high-deductible health insurance plan where the $5 is the deductible, but we are covered for anything after that. Strategy #3: Implement an Options Collar An options collar is a way to lower the cost of the insurance. Rather than pay $5.15 for a $155 put, we can add one more leg (trade) by selling a higher strike call to collect a premium and lower the trade cost. The flip side is that we can get called out at $165, so we would have to sell the shares at $165 for a $5 upside in addition to whatever credit we may receive on the collar. To execute a collar, we would buy the AMD $155 Put for $5.15 like we did for the protective put but also sell/short the AMD $165 call for $5.85. This results in a 70-cent credit, which is paid to us upfront. The cost of the trade is not only free but results in a $70 credit. If AMD falls to $155 or below, then we are protected, and the max loss is $430, comprised of $500 minus the $70 credit. If AMD rises to $165 or higher, our max profit is $570, comprised of $500 plus the $70 credit. Options Provide You with Options on Your Hedge There is no perfect hedge; however, options can help buffer your downside. If you're holding stocks in a portfolio long or medium-term, these 3 strategies can help smoothen the ride when it gets bumpy. As with all options trades, holding the positions is not required until expiration. You can cut the cord anytime before expiration when you feel the coast is clear or if you don’t want to have your shares assigned. You can also roll your positions to extend the protection. We’ll go into those strategies in future articles. 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
Tesla Stock is Under Pressure and at Risk of a Deep Implosion 2024-06-05 15:06:00+00:00 - Tesla’s NASDAQ: TSLA stock is under pressure and at risk of a deep implosion. The company’s high valuation alone makes it a target, and there are many risks for investors. Among them is the upcoming vote on CEO Elon Musk’s compensation package and a sluggish EV market. EV sales are slowing globally and significantly impact current operations and plans. The takeaway is that Tesla is amid a major turnaround, focused on the future, while faced with near-term obstacles that could derail the market and send the stock price down by 25% or more. Get Tesla alerts: Sign Up The Future of Elon Musk’s AI Dreams Are in the Balance Tesla Today TSLA Tesla $175.00 +0.23 (+0.13%) 52-Week Range $138.80 ▼ $299.29 P/E Ratio 44.64 Price Target $185.90 Add to Watchlist Tesla shareholders face a critical vote on June 13th. Elon Musk’s $56 billion controversial pay package is among the items for approval. Analysts estimate the empire will spend over $10 billion on AI chips alone in 2024 and rely on easy capital access. Cutting the package would not only hinder Mr. Musk’s ability to fund advancements at SpaceX, The Boring Company, xAI, and Neurolink but could harm shareholder value. The purpose of the package is to keep Mr. Musk interested in Tesla. The fear is that he may deprioritize Tesla if forced to turn to other projects for cash flow. The flip side is that curbing Mr. Musk’s ample pay package would improve Tesla's cash flow, which also invests heavily in AI. Mr. Musk estimates Tesla will spend $3 to $4 billion on NVIDIA hardware this year as it builds its AI training centers and the DOJO supercomputer. Plans for the Texas Gigafactory include eventually housing 50,000 NVIDIA H-100s to help power its AI network. Tesla Sales Fall: 2024 Will be a Weak Year Tesla’s sales data isn’t promising for this year. The company produced a significant decline in revenue for Q1, guided weakly, and the latest news is not promising. The latest sales data from China, the company’s 2nd-largest market, show the business improved sequentially, but sales are still down nearly 7% compared to last year. The slowdown is partly due to conditions and loss of market share as local models, including low-price offerings, resonate with consumers. Tesla is reported to have cut back on production in China and increased ad spending, which will negatively impact the margin. Margin is already an area of weakness, with price wars underway globally. Analysts have been lowering the bar for Q2 but may need to cut their estimates more. The consensus targets in early June forecast only a 3% YoY revenue decline, underestimating the risk posed by competition. Analysts are also cutting their price targets, setting the market up for a fall should the results fail to impress. MarketBeat tracks 33 analysts with current ratings on Tesla. This is significant and threatens the stock price due to the revision trend. The analysts have been cutting their ratings and price targets all year and have put the stock on MarketBeat’s Most Downgraded Stocks and Lowest Rated Stocks lists. These lists aggregate analysts' data and rank them based on ratings, price targets, and activity. Tesla is the 2nd most-downgraded auto stock this year, with 27 downward revisions, and the 78th lowest-rated stock. The analysts peg Tesla at Hold, but the sentiment is slipping, as is the price target. Consensus assumes fair value near the bottom of a trading range, and the analysts are leading the market to the low end of their target range, which is below consensus. Tesla is at a Critical Turning Point Tesla’s market is at a critical turning point. Good news could spur the market to rebound, but the technical outlook is not robust. The market is at the low end of a trading range and showing resistance at levels where it should show support. If the market follows through on the current signals, a move to retest the recent low to $137.50 is likely. The risk is that this market will fall below support at $137.50 and pave the way to $110 or lower. Before you consider Tesla, 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 Tesla wasn't on the list. While Tesla currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How Electric Car Batteries Might Aid the Grid (and Win Over Drivers) 2024-06-05 14:55:14+00:00 - Electric cars are more expensive than gasoline models largely because batteries cost so much. But new technology could turn those pricey devices into an asset, giving owners benefits like reduced utility bills, lower lease payments or free parking. Ford Motor, General Motors, BMW and other automakers are exploring how electric-car batteries could be used to store excess renewable energy to help utilities deal with fluctuations in supply and demand for power. Automakers would make money by serving as intermediaries between car owners and power suppliers. Millions of cars could be thought of as a huge energy system that, for the first time, will be connected to another enormous energy system, the electrical grid, said Matthias Preindl, an associate professor of power electronic systems at Columbia University. “We’re just at the starting point,” Dr. Preindl said. “They will interact more in the future, and they can potentially support one another — or stress one another.”
UN chief wants a tax on profits of fossil fuel companies, calling them ‘godfathers of climate chaos’ 2024-06-05 14:18:25+00:00 - GENEVA (AP) — U.N. Secretary-General António Guterres called Wednesday for a “windfall” tax on profits of fossil fuel companies to help pay for the fight against global warming, calling them the “godfathers of climate chaos.” Guterres spoke in a bid to revive the world’s focus on climate change at a time when elections, inflation and conflict in places like Ukraine, Gaza and Sudan have seized the spotlight. In a speech timed for World Environment Day, the U.N. chief drew on new data and projections to make a case against Big Oil. The European Union’s Copernicus service, a global reference for tracking world temperatures, said that last month was the hottest May ever, marking the 12th straight monthly record high. The service cited an average surface air temperature of 15.9 degrees Celsius (60.6 degrees Fahrenheit) last month — 1.52 degrees Celsius higher than the estimated May average before industrial times. The burning of fossil fuels — oil, gas and coal — is the main contributor to global warming caused by human activity. The World Meteorological Organization said the global mean near-surface temperature for each year from 2024 to 2028 is expected to range between 1.1 and 1.9 degrees Celsius hotter than at the start of the industrial era. The landmark Paris climate accord of 2015 set a target of keeping the rise below 1.5 degrees Celsius (2.7 degrees Fahrenheit). “Beyond the predictions and statistics is the stark reality that we risk trillions of dollars in economic losses, millions of lives upended and destruction of fragile and precious ecosystems and the biodiversity that exists there,” Ko Barrett, the WMO’s deputy secretary-general, told a news conference in Geneva. “What is clear is that the Paris agreement target of 1.5 degrees Celsius is hanging on a thread. It’s not yet dead, but it’s hanging by a thread,” she added. “This forecast is affirmation that the world has entered a climate where years that are as hot as 2023 should no longer be a surprise,” Noah Diffenbaugh, a professor at Stanford’s Doerr School of Sustainability, said in an email. A study released Tuesday by 57 scientists said that as the world keeps burning fossil fuels, Earth is likely to reach the 1.5 degrees Celsius limit in four-and-a-half years. U.N. experts and academics have repeatedly highlighted how rising temperatures can upend climate patterns and cause drought, flooding and forest fires. That can lead to climate migration, higher costs for farm products or insurance and greater public health risks linked to high heat or water scarcity. “While some individuals may escape direct consequences, we will all be affected,” said Waleed Abdalati, who heads an environmental sciences institute at the University of Colorado Boulder. Guterres appealed to media and technology companies to stop taking advertising from the fossil fuel industry’s biggest players, as has been done in some places with Big Tobacco. He also repeated concerns about subsidies paid in many countries for fossil fuels, which help keep prices low for consumers. “Climate change is the mother of all stealth taxes paid by everyday people and vulnerable countries and communities,” he said. “Meanwhile, the godfathers of climate chaos — the fossil fuel industry — rake in record profits and feast off trillions in taxpayer-funded subsidies.” Guterres said global emissions of carbon dioxide must fall 9% each year to 2030 for the 1.5-degree Celsius target under the Paris climate accords to be kept alive. “We need an exit ramp off the highway to climate hell,” Guterres said, while adding: “The truth is, we have control of the wheel.” He called on the Group of 20 countries — which are holding a summit in Brazil next month and are responsible for about 80% of all carbon dioxide emissions — to lead. The richest 1% of people on Earth emit as much as two-thirds of all humanity, he said. “We cannot accept a future where the rich are protected in air-conditioned bubbles, while the rest of humanity is lashed by lethal weather in unlivable lands,” Guterres said. He appealed to “global finance,” alluding to banks and international financial institutions, to help contribute, saying “innovative sources of funds” are needed. “It’s time to put an effective price on carbon and tax the windfall profits of fossil fuel companies,” Guterres said. But all countries must join the fight, he said, including the developing world, such as by ending deforestation and meeting targets to double energy efficiency and triple the use of renewable energy by 2030. For the first time, a promise of $100 billion a year in climate finance agreed in 2009 was fulfilled, according to the Organization for Economic Cooperation and Development. Still, experts say that’s well below what’s needed to fill the finance gap, with estimates of the annual cost of the global energy transition in the trillions. Some experts said Guterres’ alarmist rhetoric, including a reference to “playing Russian roulette” with the planet, could turn off some people. “A phrase like this that conjures images of holding a gun to our head risks shifting the conversation away from the science and solutions and more toward the emotion,” Abdalati said, adding that “phrases like this serve as fodder for critics, who will claim this is hyperbole.” U.N. officials acknowledge that the secretary-general has little power beyond the “bully pulpit” — his perch at the head of the world body — to encourage change.
The 2 Best Cybersecurity Stocks to Watch 2024-06-05 14:00:00+00:00 - Everyone in the market is focusing on the wave technology stocks launching in artificial intelligence. However, a few critical areas in this transforming economy may better suit investors looking for exposure to the next ‘big thing.’ This time around, it isn’t semiconductor stocks that get the spotlight. As the global economy goes online and remote—or hybrid—work settings become the norm rather than the exception, cybersecurity stocks could be at the top of investors' and businesses' minds. Needing to keep staff, client, and company information as protected as possible, these stocks include Cloudflare Inc. NYSE: NET and even Okta Inc. NASDAQ: OKTA. Get Amazon.com alerts: Sign Up With each of these companies holding significant drivers pushing double-digit upside potential for shareholders shortly, it isn’t only these stocks’ clients that stand to profit from their services but also Wall Street’s so-called ‘smart money’ investors. Before Digging deeper into these drivers, here’s why cybersecurity may be the next gold mine. New Money Shifts Headed Here The U.S. economy has been looking down the shotgun barrel lately, as the past quarter only delivered a revised 1.3% gross domestic product (GDP) growth, with inflation rates going twice as high. However, after contracting for more than 15 consecutive months, the manufacturing sector had no credit to take home during these small GDP expansions. On the other hand, the business services sector, judged by the ISM services PMI index, has carried all the weight in GDP growth by expanding every month since 2021. Fast-forward to May 2024, and the services PMI contracted for the first time since, opening the Federal Reserve’s (the Fed) eyes to a new reality. This reality has interest rate cuts in its path, to say the least. Now that the economy has no 'legs' to stand on, the Fed could feel pressured to speed up these potential rate cuts, which could be coming as soon as September 2024, according to the CME's FedWatch tool. With a reasonable timetable underway, cheaper financing and an ample money supply headed into the services sector could amplify business digitalization overall. Okta and Cloudflare stand in the splash zone to see higher demand ahead if this thesis plays out. Cloudflare Stock Forecast: Analysts Predict Major Rally Cloudflare Today NET Cloudflare $69.85 +1.83 (+2.69%) 52-Week Range $53.88 ▼ $116.00 Price Target $90.70 Add to Watchlist Market analysts, particularly those at Needham & Company, see a price target of up to $135 a share for Cloudflare stock. The stock would need to rally by as much as 98.5% from where it trades today to prove these analyst targets right. It's not that today's prices are near highs; the opposite is true. Cloudflare stock fell down to only 58% of its 52-week high prices, making today's price targets all the more bold of a decision based on where the company stands in the industry. Cloudflare holds roughly 39.2% market share in the content delivery network space, beating competitors like Amazon.com Inc. NASDAQ: AMZN. No wonder the Vanguard Group upped its stake in Cloudflare by 1.5% as of May 2024, bringing its net investment to $2.7 billion. Okta Stock Forecast: Analysts Anticipate Robust Growth Okta Today OKTA Okta $88.51 +1.89 (+2.18%) 52-Week Range $65.04 ▼ $114.50 Price Target $104.48 Add to Watchlist Okta follows a similar path, as Needham & Company analysts found reasons to boost their valuations for Okta stock up to $130 a share. While there is not as much upside as in Cloudflare, this valuation calls for 50.1%, which is more than most stocks offer today, regardless of whether rate cuts come. Holding a 26.9% market share in the identity and access management (IAM) space, Okta is one stock that investors need to watch in the coming years. Following the digitalization thesis, usernames and passwords (even face IDs) will be managed and kept somewhere, which is where Okta’s services come to shine. Like its other cybersecurity peer, Okta was attractive enough for Vanguard to increase its investment in the stock by 0.8%, for a total allocation of $1.7 billion today. Because Okta's stock fell to 77% of its 52-week high, investors can find a reasonable bottom in its dominant industry position. Bears Are On Retreat Mode Over the past month, short interest in Cloudflare stock declined by 13.2%, giving bulls a broader path to take over the stock and potentially bring on upside momentum. While not as recent, Okta’s short interest is now 2.9% of total shares outstanding or $479 million in dollar terms. Today’s level compares to the fourth quarter of 2021 when this balance stood as high as $1.9 billion in short interest. After these bearish traders retreated, institutional ownership looked like they replaced them. Okta’s institutional ownership is now 86.6%, and Cloudflare’s was reported at 82.7% today, casting a vote of confidence in these two companies. Before you consider Amazon.com, 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 Amazon.com wasn't on the list. While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Why Altria Stock is Still a Good Dividend Play 2024-06-05 12:31:00+00:00 - Altria NYSE: MO is among the leading sin stocks but is still a good dividend play today. Up more than 17.5% in the last few weeks, the purveyor of tobacco products is on track to reclaim the high end of a long-term trading range and possibly set new highs. Among the drivers for this move is the company’s considerable cash flow, which is used to repurchase shares, pay market-beating dividends, and maintain a healthy balance sheet. Get Altria Group alerts: Sign Up Here are 7 Compelling Reasons Altria is A Good Buy for Income Investors Altria Group Today MO Altria Group $46.67 -0.16 (-0.34%) 52-Week Range $39.06 ▼ $46.85 Dividend Yield 8.40% P/E Ratio 9.76 Price Target $46.90 Add to Watchlist #1 Altria has Value - Altria provides a deeper value than virtually all blue-chip dividend stocks. The company trades at a mere 9X this year’s earnings outlook and 8.75X next year with growth in the forecast. This is less than half the valuation of the average S&P 500 NYSEARCA: SPY stock. It is about half what you pay for Duke Energy Co., which has half the yield and less than 35% of the blue-chip leaders in sectors like Tech, Consumer Staples, Consumer Discretionary, and other high-profile dividend-paying sectors. When it comes to earnings-bang for your buck, Altria has it. #2 Altria is a Dividend King - Dividend Kings are stocks that have paid and made annual dividend distribution increases for at least fifty years. This significant milestone marks companies with stable cash flows and a management structure committed to long-term business health and value creation. Altria has increased its dividend for fifty-five years and is on track to continue the trend. The company’s payout ratio is high but offset by an outlook for earnings growth and a healthy balance sheet. As it is, the distribution CAGR runs near 4%, enough to offset inflation. #3 Altria is a High-Yielding Stock - Altria is a high-yielding stock with a payout of nearly 8.35%, with shares at nearly $47. That is at the high end of the range for stocks worth buying and more than 4X the S&P 500 average. The payout is safe relative to cash flow and more due to share repurchases. Share repurchases are reducing the count and freeing up capital to sustain annual increases long into the future. If the yield falls, the most likely reason will be a higher share price. #4 Earnings; Growth is Back - Altria struggled some over the last year or two due to shifting consumer habits and the impact of JUUL. However, the company is expected to return to growth in the current quarter due to improving comps and solid shipment data from Q1. Analysts expect revenue and earnings growth to accelerate into F2025 and support the company’s robust capital return program. #5 Altria Accelerates Share Repurchase Program - The big news from Q1 is the accelerated share repurchase program. The company announced a $2.4 billion accelerated repurchase authorization in addition to the existing $1 billion already in place. The bulk of the $2.4 billion has already been spent; the remainder is expected to be used by the end of June, and the final $1 billion by the end of the year. The total figure was worth about 5% of the market cap at the time of release and will positively impact shareholder value. The average share count is down 1.6% at the end of Q1. #6 Altria has a Healthy Balance Sheet - Altria uses debt to help finance operations, but the balance sheet is fine. The $25.042 billion in debt at the end of Q1 is flat compared to last year, leaving leverage at 0.7X assets. There is a shareholder deficit, but this is a situation in which a deficit is good. It is a function of share repurchases because the company effectively spends money on nothing but building shareholder leverage. Altria Group Dividend Payments Dividend Yield 8.41% Annual Dividend $3.92 Dividend Increase Track Record 55 Years Annualized 3-Year Dividend Growth 4.14% Dividend Payout Ratio 82.01% Next Dividend Payment Jul. 10 See Full Details #7 Analysts Hold Altria - Analysts' sentiment alone is not a reason to buy Altria but another factor impacting its buyability. Markrtbeat.com tracks more than a dozen analysts with ratings on this stock; they peg it at hold and view it as fairly valued at current levels. The activity is light, and the group does not issue regular revisions, but there is some interesting activity this year. The three updates issued in 2024 include a reiterated Buy with a $50 price target, about 1000 basis points of upside, a boosted price target and an upgrade. Ultimately, the buy-and-hold mentality of Altria investors leads to reduced volatility; the stocks' 24-month beta is less than 0.5X the S&P 500, and the 5-year is near 0.65X. Altria’s Technical Price Action is Strong Atlria’s uptrend looks strong. The market recently consolidated and confirmed the trend, indicating another push higher is likely. The next target for significant resistance is near $48; a move above that could take it to $50. A move above $50 will depend on market conditions and sales in the current quarter. If the company affirms the growth outlook, this stock could rally into year’s end. Before you consider Altria Group, 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 Altria Group wasn't on the list. While Altria Group currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Dollar Tree Explores Sale of Family Dollar 2024-06-05 12:22:47+00:00 - Dollar Tree said on Wednesday that it was considering a sale or spinoff of Family Dollar, which has struggled with its operation for years. There are about 8,000 Family Dollar stores, and Dollar Tree, which owns Family Dollar, said in March that it would close nearly 1,000 of them. In February, the U.S. Justice Department fined Family Dollar $41.7 million, the largest-ever financial criminal penalty in a food safety case, for distributing food, drugs, medical devices and cosmetics from a rat-infested warehouse. Rick Dreiling, chairman and chief executive of Dollar Tree, said in a statement on Wednesday that the “unique needs” of its discount store chains led the company to explore a sale of Family Dollar, which it bought in 2015 in an $8.5 billion deal. “Dollar Tree has been on a multiyear journey to help the company fully achieve its potential,” said Mr. Dreiling, who was made chief executive in January 2023.
Intel to Sell 49% of Irish Factory to Apollo for $11 Billion 2024-06-05 05:43:00+00:00 - (Bloomberg) -- Intel Corp. agreed to sell a stake in a plant in Ireland to Apollo Global Management Inc. for $11 billion, helping bring in more external funding for a massive expansion of its factory network. Most Read from Bloomberg Under terms of the deal, the investment firm will take a 49% share of a joint venture that owns Intel’s Fab 34, the chipmaker said in a statement Tuesday. It’s the second such investment program that Intel has announced, part of an effort to lessen the burden on its already-stretched finances. Chief Executive Officer Pat Gelsinger is pushing an ambitious and expensive plan to return Intel to the summit of the semiconductor industry. He’s investing heavily to revitalize its struggling product lineup and pouring money into plants around the world, aiming to reinvigorate its manufacturing and attract external outsourced-manufacturing customers. Intel, once the richest company in the semiconductor industry, has been forced to seek external funding in a program it’s dubbed “Smart Capital.” “The announcement highlights Intel’s continued progress in its transformation strategy,” the company said in the statement. “The company continues to advance to create financial flexibility and accelerate its strategy, including investing in global manufacturing operations, while maintaining a strong balance sheet.” Intel said that construction of the plant, on an existing company site in Leixlip near Dublin, is “largely complete.” The transaction, which allows Intel to invest its money elsewhere, will be completed in the second quarter of 2024. Fab 34 will use Intel’s 4 and 3 process technologies. In 2022, Intel announced a deal with Brookfield Infrastructure Partners LP to secure a $15 billion commitment to help finance a semiconductor complex in Arizona. That deal helped ease fears that Gelsinger’s revival plan would prove too costly. A string of weak earnings results — along with the loss of market share to rivals such as Nvidia Corp. — have renewed those concerns and weighed on Intel’s stock. The shares, which fell less than 1% at $30.03 in New York trading Tuesday, are the worst-performing member of the Philadelphia Stock Market Semiconductor Index. They’re down 40%. (Updates with company comment, previous deal details starting in third paragraph.) Story continues Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Nvidia, AMD Chips To Get Dearer as Taiwan Semi Eyes AI Chip Price Hike 2024-06-05 04:01:00+00:00 - Nvidia, AMD Chips To Get Dearer as Taiwan Semi Eyes AI Chip Price Hike Chip stocks led by Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Qualcomm Inc (NASDAQ:QCOM), Micron Technology, Inc (NASDAQ:MU) and Arm Holdings Plc (NASDAQ:ARM) were trading lower Tuesday amid reports of Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) plans to boost the price of its AI chip production services. TSMC stock also traded lower on Tuesday. U.S. Big Tech stocks harboring AI ambitions are also trading lower Tuesday, including Microsoft Corp (NASDAQ:MSFT), Meta Platforms, Inc (NASDAQ:META), Alphabet Inc (NASDAQ:GOOGL), Apple Inc (NASDAQ:AAPL), and Amazon.Com, Inc (NASDAQ:AMZN). TSMC’s new Chair, C.C. Wei, has already discussed his price hike plans with Nvidia CEO Jensen Huang, the Nikkei Asia reports. Wei justified passing down the higher value of its AI chips to its customers, like Nvidia, who were already charging a premium for their products, taking credit for their AI moat. Huang recently voiced AI’s “$100 trillion” opportunities at his Taipei Computex tech trade fair speech. However, Wei ruled out the possibility of migrating its fabs out of Taiwan despite political tensions, as the island accounts for 80%—90% of its production capacity. Semiconductor sector ETFS, including VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX), are trading lower on Tuesday. U.S. Big Tech ETFs, including Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), and SPDR Select Sector Fund (NYSE:XLK) are down Tuesday. Photo by Sundry Photography on Shutterstock "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, AMD Chips To Get Dearer as Taiwan Semi Eyes AI Chip Price Hike originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stock-Split Watch: 2 Household-Name Stocks That Look Ready to Split 2024-06-05 02:11:00+00:00 - Stock splits are often misunderstood. They don't change the fundamental value of a company; instead, they increase the number of shares available, making them more accessible to a broader range of investors. It's similar to peeling and segmenting an orange. The orange remains the same, but the smaller pieces are more convenient to consume. This technical adjustment -- a pure exercise in accounting gymnastics, really -- can generate excitement in the market, as it often signals a company's strong performance and growth potential. For those seeking to take advantage of the buzz around stock splits, here are two outstanding investments on the verge of stock splits right now. Key details about Chipotle's upcoming stock split Let's start with the most obvious stock splitter. Chipotle Mexican Grill (NYSE: CMG) proposed a 50-for-1 stock split on March 19, and shareholders will vote on the proposal in Thursday's annual meeting. The measure is likely to pass with an overwhelming majority. First, I can't recall a single example of ordinary stock splits getting a thumbs-down in the arena of shareholder approvals. Second, this would be the first stock split in Chipotle's history, and the share price is getting quite rich. Currently trading at $3,090 per share, there are only four beefier share prices on the American market today. Again, the split won't add any value to Chipotle's market cap, but it will make the stock easier to manage -- especially for retail investors with modest stock-buying budgets. Some of us would have to save up for many months before grabbing a single Chipotle share today, and some of the most popular stock brokerages haven't embraced fractional trades yet. But after the suggested 50-for-1 split, the share price should drop to roughly $62 on the morning of June 26. Chipotle stands out in the restaurant industry for many reasons. In an era of widespread franchising, Chipotle insists on owning its stores to control product quality and employee relations. Its career-oriented management style reminds me of Costco's (NASDAQ: COST), complete with generous worker benefits and solid pay scales. The incoming stock split suggests that Chipotle's leadership expect share prices to keep rising for the foreseeable future. The company's focus on product quality and humane employee relations is setting new standards for the restaurant sector. I personally can't eat at Chipotle -- cilantro tastes like soap -- but it's an undeniably great company, and the stock split makes it more accessible. Story continues Why Costco should consider a stock split soon Speaking of Costco, the wholesale retailer should consider a stock split nowadays. Costco isn't a complete stranger to stock-splitting operations -- it has just been a while. Its last stock split was a 2-for-1 affair on Jan. 13, 2000. Costco's stock has seen a total return of 2,450% since then, leaving the S&P 500 (SNPINDEX: ^GSPC) index far behind with a mere 477% gain: ^SPX Chart Like Chipotle, Costco is known for its employee-friendly environment. Its Kirkland selection of store-brand products is often indistinguishable from leading name-brand options. In fact, they're often made in the same factories, by the same market-leading producers, but packaged with a Kirkland label and sold at a lower price. And Costco runs its retail operations near the break-even line. The company is quite profitable anyway, thanks to its membership shopping system. Annual fees accounted for 1.9% of Costco's total revenue in last month's third-quarter report, but they also generated more than half of the company's operating profits. Now, Costco hasn't announced a stock split or arranged for a shareholder vote on the idea yet. But with share prices crossing the $800 mark last week, those stubs are getting a bit unwieldy. It would behoove Costco's board of directors to make the stock more easily reachable for individual investors -- including their own workers. Should you invest $1,000 in Chipotle Mexican Grill right now? Before you buy stock in Chipotle Mexican Grill, 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 Chipotle Mexican Grill 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 $704,612!* 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*. See the 10 stocks » *Stock Advisor returns as of June 3, 2024 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Costco Wholesale. The Motley Fool has a disclosure policy. Stock-Split Watch: 2 Household-Name Stocks That Look Ready to Split was originally published by The Motley Fool
AT&T says nationwide issue affecting ability of customers to make calls 2024-06-04 22:43:00+00:00 - What to know to protect your data in wake of AT&T breach What to know to protect your data in wake of AT&T breach 04:05 AT&T on Tuesday said the telecommunications company and other wireless carriers are working to fix an issue preventing customers from completing calls placed to non-AT&T customers across the U.S. "There is a nationwide issue that is affecting the ability of customers to complete calls between carriers. The carriers are working as quickly as possible to diagnose and resolve the issue," the carrier stated in a post on X. Calls between AT&T customers were not impacted, the telecom said. The website Downdetector showed a surge in customer reports of trouble using AT&T's service beginning about 1 p.m. Eastern Time, with the numbers rising during the following few hours. The site showed Chicago, Dallas, Indianapolis, New York City, Philadelphia and Pittsburgh as among the cities most impacted. Downdetector also showed a spike of outage reports by Verizon customers. Although the wireless carrier said its network was "operating normally," the company also noted in a statement that some customers, "primarily in the Northeast and Midwest, are experiencing issues when calling or texting with customers served by another carrier. We are continuing to monitor the situation." AT&T's customer support service was deluged with complaints. Some AT&T users, including Virginia's Hanover County and Georgia's Camden County, also posted alerts on social media stating that the AT&T outage was affecting emergency calls to 911. "Nationwide 911 services are operating normally at this time and our customers are not affected. We're working to correct a wireless impact notification that was sent in error to 911 call centers," a spokesperson for AT&T said. The outages come after millions of current and former AT&T customers learned last month that hackers likely stole their personal information and were sharing it on the "dark web". The massive data breach was the latest after another leak impacting 9 million users early last year.
Amazon's first U.S. labor union moves to affiliate with Teamsters 2024-06-04 22:41:00+00:00 - Amazon workers arrive with paperwork to unionize at the National Labor Relations Board office in Brooklyn, New York, Oct. 25, 2021. The Amazon Labor Union, the company's first group of workers to organize at a U.S. warehouse, said Tuesday that it's taken steps to affiliate with the International Brotherhood of Teamsters. Formed in 2021 as a grassroots group of current and former workers, the ALU gained national attention two years ago by winning a historic union election in Staten Island, New York, at a facility known as JFK8. The ALU originally eschewed major labor unions, establishing itself instead as an independent organization. But the group has struggled to negotiate a contract with Amazon , which sought to toss out the 2022 election results, and rifts have formed between leader Chris Smalls and ALU members. A group of former members sued the union last year, accusing it of violating the ALU's constitution and asking a Brooklyn court to compel it to hold an election for union officers. Aligning with the Teamsters, one of the largest labor unions in the U.S., could give the ALU additional heft to jumpstart negotiations with Amazon. The Teamsters, formed in 1903, has long sought to organize Amazon warehouse and delivery workers, and created an Amazon division in 2021 to support and fund workers at the company in their unionization efforts. In a post on X, the Teamsters said the affiliation was unanimously approved by the union's board on Tuesday. The affiliation agreement is tentative until members of the ALU and the Teamsters vote to ratify it, Smalls said in a text message. The decision has already generated pushback from the ALU Democratic Reform Caucus, the group that sued the ALU last year. Arthur Schwartz, an attorney for the caucus, said it was unclear how the ALU will hold a membership vote to ratify the Teamsters affiliation when it "doesn't possess a list of employees, much less a membership list." In March, ALU members voted to hold an election for new union officers. Smalls has said he doesn't plan to run for reelection as ALU president. That election is expected to be held in July in person outside of JFK8, Schwartz said. The Teamsters declined to comment further. An Amazon spokesperson also declined to comment. WATCH: Amazon's first U.S. union faces an uphill battle after historic win
House Speaker Mike Johnson says Trump right on trade and immigration, but won't commit to policy 2024-06-04 22:18:00+00:00 - House Speaker Mike Johnson showed up at court in Manhattan to support Donald Trump during the case that led to the former president's conviction — a decision that he said he alone made one night at 10:15 p.m. during a fundraising trip to New York — but he stopped short of committing to some of Trump's most vocal priorities during an appearance at the CNBC CEO Council Summit in Washington, D.C., on Tuesday: trade tariffs and mass deportations at the southern border. When asked by CNBC's Eamon Javers at the event if he would support Trump's call for 10% across-the-board tariffs, Johnson would only say "I believe there's a role to play for that, and I think we will have some very thoughtful discussion ... vigorous debate about exactly when that can be applied and how it should be." Pressed on the tariffs, Johnson added, "Look, I don't know that we know all the details of all the ideas yet, but I'm open to those discussions. But as the speaker of the House and the leader of my party in the Congress, I'm going to be very careful about what I commit to on the front end." Johnson is in lockstep with Trump over tax cuts and regulations, recently unveiling plans for an "aggressive" first 100 days of a new administration focused on cementing the 2017 Trump tax cuts and cutting regulations, among other sweeping priorities. "This new team in charge reflexively did almost exactly the opposite, and I think it's not a mystery of how we get back to prosperity. We implement those same plans and principles again." "I still think of myself as a Reagan Republican. But I certainly have great respect for what President Trump did," Johnson said during the CNBC appearance. "In the 2015-2016 election cycle, he emphasized new things, working families, and workers, and trade, and tariffs, new approaches to that, China threat that he foresaw. And the border, of course, he emphasized. And I think that those ideas and issues were important to bring into the mix, and he expanded the tent, frankly." But on immigration, another top issue for Trump, Johnson again pushed back against committing to policy. "You have got to be careful. I have spoken with President Trump about the deportation necessity. I mean, I think that's right. By our estimates, maybe as many as 16 million illegals have come across that open border since Joe Biden took office. But the reality is, deporting them all is not a simple thing. I'm not even sure you could locate many of them. I mean, that's part of the problem," he said. Pressed on the costs and logistics required, which Javers said would be "enormous," as well as the legal issues, Johnson agreed. "So the theory in this is probably different than the actual application of it. And that's what we will have to sift through," he said. "Look, I think this is doing untold damage to the country. It's catastrophic what the open border has done to us. ... But we're going to be dealing with this for decades to come. And it is a nation-changing, nation-shifting kind of problem. And we will have to deal with it and develop responses as we go." House Speaker weighs in on Fed Chair Jay Powell Johnson also weighed in on the Federal Reserve, refusing to say whether he would support the removal of Fed Chair Jerome Powell. But he added, "I have always had concerns about the Fed as an institution itself. It is manipulation of the markets at some level." While Johnson allowed that he understands the rational for the Fed and "what the idea behind it is," he focused on the fact that "they have been wrong on many occasions and wrong in recent years." He recounted one visit from Chairman Powell to Capitol Hill which he said occurred in late 2019 or early 2020 when he was chair of the Republican Study Committee, the largest caucus of conservatives, and to him showed how Powell was out of step with Republicans. "We had all the fiscal hawks in the room. ... And he gave a quick update on the economy and spoke for 10 or 15 minutes and never mentioned the federal debt. And all the hands went up for the Q&A. And I said: 'Well, Mr. Chairman, I can anticipate what they're about to ask you.' "I don't remember his exact quote, but Chairman Powell said something to the effect of: 'Well, I think too much emphasis is placed on the federal debt. Wrong room to say that in. ... I could see the steam coming out of the ears of my colleagues." "I think some mistakes have been made. I have some concerns about it. Should it be a completely independent body and immune from politics? Probably. But I think a lot of attention has to be paid to their activities and the jurisdiction they have and the broad influence they have on the markets." Johnson said the almost $35 trillion in debt is not a sustainable trajectory, and with mandatory spending at 72% of the federal budget, all the time spent arguing over discretionary spending and how to limit that, and how to limit the size and scope of the government, "has gotten very serious. Now we're spending our grandchildren's finances. And they're not going to enjoy the same liberty and opportunity and security that we have known because it simply will not be affordable. So we have to do big things. And we have to do it in a bipartisan fashion." Johnson said his first six months as House Speaker have demonstrated the new dynamics in Congress and the need to navigate them differently. "It's not lost on us that we're probably beyond the days of having 35- and 40-seat majorities in Congress. Because of redistricting and gerrymandering, we're probably going to have small majorities on one side or the other for the foreseeable future. So you will need very thoughtful, very responsible members of Congress to sit around a room and arm-wrestle over this to figure out what the real answers are." "Even though I'm, by some estimates, a hardcore conservative, I'm not mad at anybody who's not, right?" On the biggest issue of all, certifying a Biden reelection if the president wins in November, Johnson equivocated a bit in his response. "That's the intention. I agree with the sentiment. I mean, we absolutely have to make sure that it will be a free and fair election. And I trust and hope and believe there will be, so yes. ... If it's a fair election, yes, of course."
Ikea is hiring real people to work at its virtual Roblox store 2024-06-04 22:09:00+00:00 - Grand opening of SoMa IKEA food court draws excited crowd Grand opening of SoMa IKEA food court draws excited crowd 03:11 Furniture chain Ikea says it's hiring real people to work inside a virtual store within the gaming platform Roblox. Ikea's virtual employees will be paid the same rate as a London co-worker — £13.15 / €14.80 an hour — which equates to $14.31 / $16.10 in U.S. dollars and is aligned with the Living Wage Foundation's real living wage, the company said. The so-called "Co-Worker Game" launches June 24, and will allow players to "experience working in Ikea's virtual universe," according to Ikea. Those hired will help customers and get promoted to new departments, working in different parts of Ikea including serving meatballs. The positions are remote but applicants have to live in London and be at least 18 years old. Ikea is accepting applications through Sunday, June 16. Ikea will hold virtual interviews June 14 through June 18 and new hires will be paid for their time on the game. "We're excited to be the first brand to launch paid work on Roblox to showcase how we do careers differently," Darren Taylor, country people and culture manager, Ikea UK and Ireland, stated in a news release. "At Ikea, there is no set route to career progression. Our co-workers are able to change roles, switch departments and grow in any direction they chose, both in the game or in the real world." For more information on how to apply, click here.
'You name it, Labour will tax it': UK PM Sunak attacks main rival as he languishes in election polls 2024-06-04 22:02:00+00:00 - U.K. Prime Minister Rishi Sunak (left), leader of the incumbent Conservatives, and opposition leader Sir Keir Starmer of the Labour Party. The politicians traded barbs in their first head-to-head debate on Tuesday ahead of the July 4 General Election. LONDON — Taxes emerged as a key battleground in the first live televised debate of the U.K. election race, as party leaders addressed public concern over the cost-of-living crisis. Prime Minister Rishi Sunak, leader of the incumbent Conservative Party which is trailing in the polls, said the opposition Labour Party's policies would amount to a £2,000 ($2,553.73) tax rise for "every working family," based on an analysis by independent Treasury officials. "I'm clear that I'm going to keep cutting people's taxes as we now are ... Mark my words, Labour will raise your taxes, it's in their DNA. Your work, your car, your pension. You name it, Labour will tax it," Sunak said. He repeated a new Conservative pledge to raise the U.K.'s tax-free pension allowance through a "triple lock" program. Labour leader Keir Starmer said the £2,000 calculation was "based on made-up Labour policies." Starmer said that his party would only offer "fully costed" policies, and would raise funds by changing carried interest tax rules on private equity, fulfilling the closure of the so-called "non-dom" tax regime, ending tax breaks on independent schools and increasing the windfall tax on oil and gas companies. Starmer accused the Conservatives of damaging public finances during the 2022 premiership of Liz Truss, who lasted just 45 days as prime minister before resigning after a series of shock fiscal announcements jolted financial markets and threatened to destabilize British pension funds. He also said the Conservatives had overseen a rise in taxes to a 70-year high. When asked by debate moderator Julie Etchingham of ITV News, both leaders said they would not raise income tax or national insurance — a general taxation — during the next parliament.
Most Americans still not sold on EVs despite push from Biden, poll finds 2024-06-04 21:57:00+00:00 - Michigan lawmakers discuss gas tax replacement Michigan lawmakers discuss gas tax replacement 02:36 Many Americans still aren't sold on going electric for their next car purchase. High prices and a lack of easy-to-find charging stations are major sticking points, a new poll shows. About 4 in 10 U.S. adults say they would be at least somewhat likely to buy an EV the next time they buy a car, according to the poll by The Associated Press-NORC Center for Public Affairs Research and the Energy Policy Institute at the University of Chicago, while 46% say they are not too likely or not at all likely to purchase one. The poll results, which echo an AP-NORC poll from last year, show that President Joe Biden's election-year plan to dramatically raise EV sales is running into resistance from American drivers. Only 13% of U.S. adults say they or someone in their household owns or leases a gas-hybrid car, and just 9% own or lease an electric vehicle. Caleb Jud of Cincinnati said he's considering an EV, but may end up with a plug-in hybrid — if he goes electric. While Cincinnati winters aren't extremely cold, "the thought of getting stuck in the driveway with an EV that won't run is worrisome, and I know it wouldn't be an issue with a plug-in hybrid," he said. Freezing temperatures can slow chemical reactions in EV batteries, depleting power and reducing driving range. A new rule from the Environmental Protection Agency requires that about 56% of all new vehicle sales be electric by 2032, along with at least 13% plug-in hybrids or other partially electric cars. Auto companies are investing billions in factories and battery technology in an effort to speed up the switch to EVs to cut pollution, fight climate change — and meet the deadline. EVs are a key part of Biden's climate agenda. Republicans led by presumptive nominee Donald Trump are turning it into a campaign issue. Younger people are more open to eventually purchasing an EV than older adults. More than half of those under 45 say they are at least "somewhat" likely to consider an EV purchase. About 32% of those over 45 are somewhat likely to buy an EV, the poll shows. But only 21% of U.S. adults say they are "very" or "extremely" likely to buy an EV for their next car, according to the poll, and 21% call it somewhat likely. Worries about cost are widespread, as are other practical concerns. Range anxiety – the idea that EVs cannot go far enough on a single charge and may leave a driver stranded — continues to be a major reason why many Americans do not purchase electric vehicles. About half of U.S. adults cite worries about range as a major reason not to buy an EV. About 4 in 10 say a major strike against EVs is that they take too long to charge or they don't know of any public charging stations nearby. Concern about range is leading some to consider gas-engine hybrids, which allow driving even when the battery runs out. Jud, a 33-year-old operations specialist and political independent, said a hybrid "is more than enough for my about-town shopping, dropping my son off at school'' and other uses. With EV prices declining, cost would not be a factor, Jud said — a minority view among those polled. Nearly 6 in 10 adults cite cost as a major reason why they would not purchase an EV. Price is a bigger concern among older adults. The average price for a new EV was $52,314 in February, according to Kelley Blue Book. That's down by 12.8% from a year earlier, but still higher than the average price for all new vehicles of $47,244, the report said. Jose Valdez of San Antonio owns three EVs, including a new Mustang Mach-E. With a tax credit and other incentives, the sleek new car cost about $49,000, Valdez said. He thinks it's well worth the money. "People think they cost an arm and a leg, but once they experience (driving) an EV, they'll have a different mindset,'' said Valdez, a retired state maintenance worker. Quiet ride, less expensive to maintain The 45-year-old Republican said he does not believe in climate change. "I care more about saving green" dollars, he said, adding that he loves the EV's quiet ride and the fact he doesn't have to pay for gas or maintenance. EVs have fewer parts than gas-powered cars and generally cost less to maintain. Valdez installed his home charger himself for less than $700 and uses it for all three family cars, the Mustang and two older Ford hybrids. With a recently purchased converter, he can also charge at a nearby Tesla supercharger station, Valdez said. About half of those who say they live in rural areas cite lack of charging infrastructure as a major factor in not buying an EV, compared with 4 in 10 of those living in urban communities. Daphne Boyd, of Ocala, Florida, has no interest in owning an EV. There are few public chargers near her rural home "and EVs don't make any environmental sense," she said, citing precious metals that must be mined to make batteries, including in some countries that rely on child labor or other unsafe conditions. She also worries that heavy EV batteries increase wear-and-tear on tires and make the cars less efficient. Experts say extra battery weight can wear on tires but say proper maintenance and careful driving can extend tire life. Boyd, a 54-year-old Republican and self-described farm wife, said EVs may eventually make economic and environmental sense, but "they're not where they need to be" to convince her to buy one now or in the immediate future. Ruth Mitchell, a novelist from Eureka Springs, Arkansas, loves her 2017 Chevy Volt, a plug-in hybrid that can go about 50 miles on battery power before the gas engine takes over. "It's wonderful — quiet, great pickup, cheap to drive. I rave about it on Facebook," she said. Mitchell, a 70-year-old Democrat, charges her car at home but says there are several public chargers near her house if needed. She's not looking for a new car, Mitchell said, but when she does it will be electric: "I won't drive anything else.'' ___ The AP-NORC poll of 6,265 adults was conducted March 26 to April 10, 2024 using a combined sample of interviews from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population, and interviews from opt-in online panels. The margin of sampling error for all respondents is plus or minus 1.7 percentage points. The AmeriSpeak panel is recruited randomly using address-based sampling methods, and respondents later were interviewed online or by phone.
It's all unraveling at OpenAI (again) 2024-06-04 21:45:10+00:00 - 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. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview OpenAI's rough week has turned into a rough month — and it's not looking like a problem that the company's golden boy CEO, Sam Altman, can easily solve. In the latest development of the OpenAI-is-a-disaster saga, a group of current and former OpenAI employees has gone public with concerns over the company's financial motivations and commitment to responsible AI. In a New York Times report published Tuesday, they described a culture of false promises around safety. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "The world isn't ready, and we aren't ready," Daniel Kokotajlo, a former OpenAI researcher, wrote in an email announcing his resignation, according to the Times report. "I'm concerned we are rushing forward regardless and rationalizing our actions." Also on Tuesday, the whistleblowers, along with other AI insiders, published an open letter demanding change in the industry. The group calls for AI companies to commit to a culture of open criticism and to promise not to retaliate against those who come forward with concerns. Advertisement While the letter isn't specifically addressed to OpenAI, it's a pretty clear subtweet and another damaging development for a company that has taken more than enough hits in the last couple of weeks. In a statement to Business Insider, an OpenAI spokesperson reiterated the company's commitment to safety, highlighting an "anonymous integrity hotline" for employees to voice their concerns and the company's safety and security committee. "We're proud of our track record providing the most capable and safest AI systems and believe in our scientific approach to addressing risk," they said over email. "We agree that rigorous debate is crucial given the significance of this technology and we'll continue to engage with governments, civil society and other communities around the world." Safety second (or third) A common theme of the complaints is that, at OpenAI, safety isn't first — growth and profits are. Advertisement In 2019, the company went from a nonprofit dedicated to safe technology to a "capped profit" organization worth $86 billion. And now Altman is considering making it a regular old for-profit vehicle of capitalism. This put safety lower on the priority list, according to former board members and employees. "Based on our experience, we believe that self-governance cannot reliably withstand the pressure of profit incentives," former board members Helen Toner and Tasha McCauley wrote in an Economist op-ed last month that called for external oversight of AI companies. Toner and McCauley voted for Altman's ouster last year. (In a responding op-ed, current OpenAI board members Bret Taylor and Larry Summers defended Altman and the company's safety standards.) Those profit incentives have put growth front and center, some insiders say, with OpenAI racing against other artificial intelligence companies to build more advanced forms of the technology — and releasing those products before some people think they are ready for the spotlight. Advertisement According to an interview Toner gave last week, Altman routinely lied and withheld information from the board, including that about safety proccesses. The board wasn't even aware of ChatGPT's release in November 2023 — and found out it went live on Twitter, she said. (The company did not explicitly deny this but, in a statement, said it was "disappointed that Ms. Toner continues to revisit these issues.") The former researcher Kokotajlo told the Times that Microsoft began testing Bing with an unreleased version of GPT, a move that OpenAI's safety board had not approved. (Microsoft denied this happened, according to The New York Times.) The concerns mirror those of the recently departed Jan Leike, who led the company's superalignment team with chief scientist Ilya Sutskever, another recent defector. The team, dedicated to studying the risks that AI superintelligence poses to humanity, saw a number of departures over recent months. It disbanded when its leaders left, though the company has since formed a new safety committee. "Over the past years, safety culture and processes have taken a backseat to shiny products," Leike wrote in a series of social media posts around his departure. "I have been disagreeing with OpenAI leadership about the company's core priorities for quite some time, until we finally reached a breaking point." Advertisement These concerns are heightened as the company approaches artificial general intelligence — or technology capable of all human behavior. Many experts say AGI increases the likelihood of p(doom), a nerdy and depressing term for the probability of AI destroying humanity. Related stories To put it bluntly, as leading AI researcher Stuart Russell said to BI last month: "Even people who are developing the technology say there's a chance of human extinction. What gave them the right to play Russian roulette with everyone's children?" An A-list actor and NDAs You probably didn't have it on your 2024 bingo card that Black Widow would take on a Silicon Valley giant, but here we are. Over the past few weeks, the company has met some unlikely foes with concerns that go beyond safety, including Scarlett Johansson. Advertisement Last month, the actor lawyered up and wrote a scathing statement about OpenAI after it launched a new AI model with a voice eerily similar to hers. While the company insists it did not seek to impersonate Johansson, the similarities were undeniable — particularly given the fact that Altman tweeted out "Her" around the time of the product announcement, seemingly a reference to Johansson's 2013 movie in which she plays an AI virtual assistant. (Spoiler alert: The movie isn't exactly a good look for the technology.) "I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar," Johansson said of the model, adding that she had turned down multiple offers from Altman to provide a voice for OpenAI. The company's defense was, more or less, that its leadership didn't communicate properly and handled the matter clumsily — which isn't all that comforting considering the company is dealing with some of the world's most powerful technology. Things worsened when a damaging report was published about the company's culture of stifling criticism with its restrictive and unusual NDAs. Former employees who left the company without signing an NDA could lose out on vested equity — worth millions for some. Such agreement was basically unheard of in the world of tech. Advertisement "This is on me and one of the few times I've been genuinely embarrassed running openai; I did not know this was happening, and I should have," Altman responded to the claims in a tweet. But days later he was caught with egg on his face when a report came out that seemed to indicate Altman knew about the NDAs all along. As Altman learned, when it rains, it pours. No more white knight But the May rain did not bring June flowers. Advertisement Like many tech rocketships before it, OpenAI is synonymous with its cofounder and CEO Sam Altman — who, until recently, was seen as a benevolent brainiac with a vision for a better world. But as the company's perception continues to sour, so does that of its leader. Earlier this year, the venture capital elite started to turn on Altman, and now the public may be following suit. The Scarlet Johansson incident left him looking incompetent, the NDA fumble left him looking a bit like a snake, and the safety concerns left him looking like an evil genius. Advertisement Most recently, The Wall Street Journal reported Monday some questionable business dealings by Altman. While he isn't profiting directly from OpenAI — he owns no stake in the company, and his reported $65,000 salary is a drop in the bucket compared to his billion-dollar net worth — conflicts of interest abound. He has personal investments in several companies with which OpenAI does business, the Journal reported. He owns stock in Reddit, for example, which recently signed a deal with OpenAI. The first customer of nuclear-energy startup Helion, in which Altman is a major investor, was Microsoft, OpenAI's biggest partner. (Altman and OpenAI said he recused himself from these deals.) Faced with the deluge of detrimental media coverage, the company and its leader have tried to do some damage control: Altman announced he was signing the Giving Pledge, a promise to donate most of his wealth, and the company has reportedly sealed a major deal with Apple. Advertisement But a few positive news hits won't be enough to clean up the mess Altman is facing. It's time for him to pick up a bucket and a mop and get to work
Muhammad Ali’s Childhood Home Goes on the Market 2024-06-04 21:34:39+00:00 - The childhood home where Muhammad Ali, the three-time world heavyweight boxing champion and activist, learned to box and that was along the route of his funeral procession in Louisville, Ky., is for sale. On Tuesday, the pink one-story home, which for several years was a museum of sorts, focusing on Ali’s early life and humanitarian pursuits, and two of its neighboring properties were listed for sale through Christie’s International Real Estate Bluegrass for $1.5 million, according to the company’s listing. “Home to ‘The Greatest,’” the listing states, noting that the ranch style, one-story house at 3302 Grand Avenue in the Parkland neighborhood of the city features two bedrooms. The living area of the three homes combined is 3,363 square feet.