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What's Going On With Super Micro Computer Stock On Tuesday? 2024-06-04 12:50:00+00:00 - In this article: What's Going On With Super Micro Computer Stock On Tuesday? AI server vendor Super Micro Computer, Inc (NASDAQ:SMCI) stock traded lower Tuesday in sympathy with the broader semiconductor industry as Taiwan Semiconductor Manufacturing Co (NYSE:TSM) weighs price hikes for its AI chip production services as per a Nikkei Asia report. Meanwhile, at Computex 2024, Supermicro launched its X14 server portfolio, supporting Intel Corp (NASDAQ:INTC) Xeon 6700-series processors with E-cores and future support for Intel Xeon 6900 series processors with P-cores. Based on proven platforms, the servers include various rackmount servers and high-density multi-node servers like SuperBlade, BigTwin, and GrandTwin. The X14 systems are optimized for AI, cloud, storage, and 5G/Edge applications, offering significant performance improvements and energy efficiency. Supermicro’s new Intel Xeon 6 processors feature both E-cores and P-cores, delivering enhanced performance for AI workloads and higher memory bandwidth. The company also offers comprehensive liquid cooling solutions, improving efficiency and lowering total cost of ownership. Recently, Supermicro partnered with Apple Inc. (NASDAQ:AAPL) supplier Foxconn, Japanese electronics firm KDDI, and telecom partner Sharp to build an AI data center in Japan leveraging Nvidia Corp’s (NASDAQ:NVDA) advanced chips. Supermicro stock gained 245% in the last 12 months. Investors can gain exposure to the stock via Tidal Trust II YieldMax Ultra Option Income Strategy ETF (NYSE:ULTY) and Tidal ETF Trust II Pinnacle Focused Opportunities ETF (NYSE:FCUS). Image via 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 What's Going On With Super Micro Computer Stock On Tuesday? originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Can Bill Ackman Cash In on His Growing Fame? 2024-06-04 12:01:54+00:00 - Betting on Ackman Bill Ackman has gained new prominence in recent months for his outspoken presence on social media. But he has also made riches for his investors and himself — and now others are hoping he’ll continue to do so. His Pershing Square Capital Management has sold a 10 percent stake for just over $1 billion to an array of outside investors, giving the hedge fund a lofty valuation. The question is whether Ackman’s newfound fans on social media will follow him as he grows his empire, including through a new listed fund and, eventually, an I.P.O. Pershing Square is now valued at $10 billion. Among those that bought into the firm are Arch Capital Group, BTG Pactual and Iconiq Investment Management; Bloomberg reports that Ackman peers including Marc Lasry and Doug Hirsch also bought in. That has bolstered Ackman’s paper worth to $8 billion, Bloomberg calculates, making him 333rd among the world’s wealthiest people.

Ulta Beauty: A Must-Have Stock for Your Watchlist This Quarter 2024-06-04 11:50:00+00:00 - Key Points Ulta Beauty stock is a must-have for investors aiming to outperform the U.S. markets in the current stagflation environment. Despite high inflation and rising prices, Ulta saw an increase in all of the fundamental drivers that matter for the business. Analysts see a double-digit upside from today's prices, and profitability is still near all-time highs on an ROIC basis . 5 stocks we like better than Consumer Discretionary Select Sector SPDR Fund After reporting its first quarter 2024 earnings results, shares of Ulta Beauty Inc. NASDAQ: ULTA rallied by 12.7% as an initial reaction to the company’s financials. What investors need to keep in mind for the following months is Ulta’s resilient product line, which could be considered part of the consumer staples sector rather than the retail sector. Ulta Beauty Today ULTA Ulta Beauty $389.41 -0.50 (-0.13%) 52-Week Range $368.02 ▼ $574.76 P/E Ratio 15.19 Price Target $507.30 Add to Watchlist Despite having all of the typical characteristics that a value investor like Warren Buffett looks for, Ulta stock is still too small of a fish for Berkshire Hathaway Inc. NYSE: BRK.A to go after. At an $18 billion market capitalization, Ulta stock represents too tiny of a catch for Buffett’s current $168 billion cash pile. Get XLY alerts: Sign Up Luckily for retail investors, Ulta is sized to gain exposure to the Consumer Discretionary Select Sector SPDR Fund NYSEARCA: XLY. Despite lowering guidance for the rest of 2024, Ulta management still thinks the stock is not only cheap today but could see higher prices in the near future. Ulta's Stock is Right for Today’s Economy Many economists have had to wake up to one of history's most dreaded economic environments: Stagflation. Defined as low economic growth, measured as GDP, along with high inflation, the U.S. economy looks to be headed that way. After a revised 1.3% GDP growth for the past quarter and over 3% inflation, the economy has been contracting on a real – not nominal- rate basis. While this spells bad news for most stocks, it shouldn’t affect Ulta’s business. Consumers will always find a way to squeeze a budget for makeup and skincare products, whether the economy is booming or busting. Because of this, Ulta’s comparable sales rose by 1.6% when net sales pushed 3.5% higher, driven by a 0.3% increase in average tickets. Inflation-choked consumers had no issue paying a 0.3% higher price at Ulta’s counter, proving how recession-proof Ulta’s products can be. Willing to give up short-term profits for a larger market share, here’s what Ulta’s management got right. Ulta's Loyal Customers Drive Return on Capital As a percentage of sales, gross profits declined from 40% to 39.2% as Ulta gave up some of the gains it could have had if it kept up with inflation. Because the average ticket price only rose by 0.3%, Ulta’s gross profit contracted against over 3% inflation, but that’s alright. With over 40,000 loyalty member customers and keeping their prices competitive against peers like Sephora, Ulta knows it needs to invest in accommodating its future growth. Ulta Beauty MarketRank™ Stock Analysis Overall MarketRank™ 4.79 out of 5 Analyst Rating Moderate Buy Upside/Downside 29.6% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.83 News Sentiment 0.80 Insider Trading Selling Shares Projected Earnings Growth 11.29% See Full Details This is why Ulta invested up to $91 million to open new stores, reporting 10 new store openings over the quarter. Focusing on statistics, Ulta’s 42,200 loyalty membership customers over the net square footage of 14,614 this quarter bring a ratio of roughly 2.9x. Historically, this ratio has hovered between 2.3x and 2.6x, meaning Ulta needs to start opening more locations. This strategy is being implemented in a cooperative deal with Target Co. NYSE: TGT, as the two companies will cross-pollinate their audience by combining their locations. Knowing that net membership users have grown at a compounded average growth rate (CAGR) of 4.8% over the past six years, management is absolutely willing to avoid passing on these cost increases to customers, which are the heart of the company’s attractive return on invested capital (ROIC) rates. Understanding Ulta's Wealth Compounding Factor Over the past five years, Ulta has generated between 24% and 26% ROIC. Annual stock price performance matches the long-run ROIC rate for a company since it is essentially the rate at which the business itself is growing underneath the hood. Noticing that Ulta stock is now trading at only 70% of its 52-week high, with no adverse effects on its ROIC, management took an interest in its stock. Announcing a $2 billion stock buyback program was the concept. Still, deploying $289 million into buying back stock this quarter was the start. With $1.8 billion left in the program, Ulta management could consider buying back cheaper stock at today’s 15.2x P/E ratio, when historically, stock buybacks have been implemented around 22x to 25x P/E. J.P. Morgan Chase & Co. analysts think Ulta could rise to $544 a share, previously boosting their targets from $530. The stock would need to rally by 37.7% from today’s prices to prove these projections right. Before you consider Consumer Discretionary Select Sector SPDR Fund, 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 Consumer Discretionary Select Sector SPDR Fund wasn't on the list. While Consumer Discretionary Select Sector SPDR Fund currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Top 3 Analyst-Downgraded Stocks: Tesla, Workday, Starbucks 2024-06-04 11:40:00+00:00 - Key Points Downgrades are relative to the price action and outlook: these stocks get price target reductions as the outlook is reset. Tesla analysts have no conviction and see this stock trading in a wide range. Workday and Starbucks analysts operate in better alignment. Near-term headwinds impact the outlook, but the long-term growth outlook is solid. 5 stocks we like better than Tesla Investors should not ignore analysts' sentiment because it can profoundly impact a stock price direction. Upgrades naturally lift sentiment and lead markets higher, while downgrades can lower them. The caveat is that upgrades and downgrades are relative to the price action; a downgrade to Hold from Buy with a target that implies substantial upside isn’t the same as a downgrade to Sell and an expectation for substantial price decline. In the first case, sentiment has been reset but remains bullish; in the second case, a potential bull has given up hope and sees nothing but downside to come. This is a look at three leading names receiving negative analysts' attention that investors may want to buy. They may want to buy them because of the long-term opportunities and discounted prices today. Get Tesla alerts: Sign Up Tesla is the Most Downgraded Stock on MarketBeat Tesla Today TSLA Tesla $174.77 -1.52 (-0.86%) 52-Week Range $138.80 ▼ $299.29 P/E Ratio 44.58 Price Target $185.90 Add to Watchlist Tesla NASDAQ: TSLA holds the dubious distinction of being the number one Most Downgraded stock tracked by MarketBeat. The stock has received twenty-eight negative revisions or downgrades in the last 90 days, lowering the consensus price target and putting the market on the brink of collapse. The downgrades are due to weak results, a tepid outlook for the year, and expectations for increased spending as the company invests in the next growth phase. That phase will be aided by AI and, fingers crossed, a lower-priced model that may be available next year. However, despite the position, Tesla analysts remain mixed regarding the company’s future and show no conviction in sentiment. The company is #1 on the Most Downgraded list, but there are numerous reiterated price targets, at least one increased target, and an upgrade in the mix. The takeaway is that Tesla is still ranked at Hold. The Hold rating has been steady for more than a year, and the consensus price target, which is lower, is only slightly lower than last year. At $185.60, it implies a low single-digit upside but some upside. The risk for investors is the Musk factor, including the current push for more pay and the upcoming earnings release. Due in mid-July, it will be a market-moving event. Workday Works Out a Deep Value Opportunity Workday Today WDAY Workday $211.12 +0.29 (+0.14%) 52-Week Range $201.42 ▼ $311.28 P/E Ratio 38.04 Price Target $283.96 Add to Watchlist Decreasing guidance warranted an analyst reset of sentiment, but the more in Workday NASDAQ: WDAY stock price is overblown. The stock shed nearly 20% on a round of analysts' revisions that reduced the consensus target by 3.5% and left it over 35% above the current price action. Some targets suggest additional downside, and the low was reiterated with a sell rating, but most targets range around and align with consensus. The post-release activity includes revisions of bullish outperform ratings and above-consensus price targets that suggest that consensus may be low. The reset was caused by a reduction in guidance to about $7.7125 billion in annual revenue. This is down about 0.5% or 50 basis points from the previous midpoint but aligns with consensus and equates to 17% growth year over year. At 17%, growth isn’t accelerating or decelerating but is expected to hold steady over the next two to three years, solid for a business trading at 31X earnings. Starbucks Analysts Put a Floor in the Market Starbucks Today SBUX Starbucks $82.79 +0.71 (+0.87%) 52-Week Range $71.80 ▼ $107.66 Dividend Yield 2.75% P/E Ratio 22.81 Price Target $96.43 Add to Watchlist Starbucks NASDAQ: SBUX shares corrected long before the Q1 report was released, resulting in a buy-the-news event despite the analysts lowering their price targets. 24 analysts lowered their price targets on Starbucks to range around and align with the consensus of $96. That target implies a 20% upside for this hold-rated stock, which is expected to bounce back. Near-term headwinds, including high inflation and interest rates, impact business growth in 2024, but a return to growth is expected by year-end and to accelerate in 2025. Technically speaking, the market is bouncing from solid support near $75, which aligns with the low end of the analyst's range. Assuming this level holds, the market should trend sideways within its range until growth is back in the results. 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

Why You’ll Pay More and Behave Better When You Travel This Summer 2024-06-04 09:02:22.498000+00:00 - A new tourist fee in Bali. Higher hotel taxes in Amsterdam and Paris. Stricter rules on public drinking in Milan and Majorca. Ahead of the summer travel season, leaders in many tourist spots have adopted measures to tame the tourist crowds — or at least earn more revenue from them. All of this may pose headaches for travelers, although in most cases, the new fees or tax increases represent only a tiny fraction of the total cost of a trip. The goal is to ensure that tourism functions smoothly for visitors and locals alike, said Megan Epler Wood, managing director of the Sustainable Tourism Asset Management Program at Cornell University. “All tourism is dependent on beautiful natural and cultural resources. You have to protect those resources in order to be a viable tourism destination — and if you don’t, they degrade,” Ms. Epler Wood said. In some places, proposals for new fees or visitor rules have drawn opposition from residents, who fear they might scare away the tourists who bolster the local economy. But destinations need to find ways to counteract what Ms. Epler Wood calls “the invisible burden” of tourism, which includes strains on a community’s infrastructure, utilities and housing stock, as well as tourists’ carbon footprint and any challenges they might impose on residents’ daily lives.

Vistry sells 1,750 homes to Blackstone and Regis in £580m deal 2024-06-04 08:53:00+00:00 - The housebuilder Vistry has agreed to sell 1,750 new homes to the private equity group Blackstone and its partner Regis for rent in a £580m deal. Vistry said the portfolio, concentrated in the south-east of England and spanning 36 developments, would be managed by the private rented sector housing provider Leaf Living, which is backed by funds managed by Blackstone and Regis. The deal comes at a time when a delay in UK interest rate cuts has tempered hopes of a stronger recovery in the housing market. Vistry sounded more optimistic than its sector peers in recent times on the back of resilient demand for its affordable homes, mainly from housing associations and the private rented sector. The first completions under the agreement with Blackstone and Regis are expected by the end of June, with most homes expected to be finished within the next two years, Vistry said on Tuesday. Greg Fitzgerald, Vistry’s chief executive, said: “By working in partnership with organisations like Leaf Living we can maximise the number of high-quality homes we deliver every year. “This agreement supports our differentiated business model, with the certainty provided by the pre-selling of homes enabling us to accelerate our build programmes, guarantee work for our supply chain, reduce sales and build costs and create vibrant new communities.” Last month, Vistry raised its annual homebuilding target by about 3% to more than 18,000 units after rivals, including Taylor Wimpey and Persimmon, warned of subdued market conditions this year. Blackstone has been investing in UK residential property and acquired 2,915 homes for £819m from Vistry in November. 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 James Seppala, the head of European real estate at Blackstone, said: “Institutional private capital can play an important role in providing high-quality housing stock across the UK, particularly in the private rented sector which is significantly undersupplied today. “Partnerships such as these can meaningfully accelerate the delivery of new homes and help alleviate structural undersupply across the sector.”

Are You Richer Than Your Peers? The Net Worth Needed To Be In The Top 10% Of Your Age 2024-06-04 08:03:00+00:00 - Are You Richer Than Your Peers? The Net Worth Needed To Be In The Top 10% Of Your Age While the ultrawealthy 1% often dominates financial headlines, the real question for most Americans is whether their net worth is comparable to that of their peers. Understanding what it takes to be in the top 10% at your age can provide valuable insight into your financial standing and reveal the milestones for success at different stages of life. Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? Are you rich? Here’s what Americans think you need to be considered wealthy. The Net Worth Milestone According to the latest data from the Federal Reserve's 2022 Survey of Consumer Finances, to be among the wealthiest 10% of U.S. households, you need a net worth of at least $1.94 million. This figure represents the 90th percentile of net worth across all American families. Net Worth by Age Group The net worth required varies significantly by age group, with older Americans generally having more time to accumulate wealth: • 18-29: $281,550 • 30-39: $711,400 • 40-49: $1,313,700 • 50-59: $2,629,060 • 60-69: $3,007,400 • 70+: $2,862,000 Sources of Wealth The majority of wealth for the top 10% comes from investments in stocks, mutual funds, and home equity in their primary residence. Axios recently reported that the country’s wealthiest 10% hold about 93% of all household stock market wealth — a record high. While high labor incomes are not the primary driver, the top 10% tend to have incomes in at least the 90th percentile nationally thanks to advanced degrees and high-paying careers. Trending: Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? Survey Frequency and Alternative Perspectives The Federal Reserve's Survey of Consumer Finances is conducted every three years, with the next survey scheduled for 2025. This triennial survey provides a comprehensive snapshot of American household finances, but it is worth noting that other sources suggest the threshold to be in the top 10% might be higher. Different methodologies and data sets can lead to varying estimates of wealth distribution. The Path to Building Wealth While joining the top 10% may seem out of reach for many, sound financial habits like saving more than you spend, reducing debt, and investing wisely can help you increase your net worth over time. Homeownership, maximizing retirement accounts, and letting compound interest work its magic are key strategies affluent households employ. If you’re not there yet, focus on consistent saving and investing. Consulting with a financial advisor can help you create a personalized plan to grow wealth. They can provide expert advice on asset allocation, tax strategies, and long-term planning to help you reach your financial goals. Story continues Ultimately, assessing your financial progress by comparing your net worth to peers in the same age group can provide a more accurate benchmark than looking at national wealth percentiles alone. With discipline and a long-term perspective, growing your net worth and potentially joining the ranks of the nation's wealthiest is an achievable goal for many Americans. Read Next: Boomers and Gen Z agree they need a salary of around $125,000 a year to be happy, but millennials say they need how much? Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? *This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions. Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest, and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty, or undertaking, stated or implied, as to the accuracy or completeness of the information. "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 Are You Richer Than Your Peers? The Net Worth Needed To Be In The Top 10% Of Your Age originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

A Reporter Whose Beat Blends Sports and Culture 2024-06-04 07:00:07.314000+00:00 - Times Insider explains who we are and what we do and delivers behind-the-scenes insights into how our journalism comes together. When Emmanuel Morgan was hired as a sports reporter covering the N.F.L. and combat sports for The New York Times in 2021, the job felt familiar. After all, Mr. Morgan, who grew up playing football, had been writing about the sport since high school. He went on to cover the N.F.L. for The Los Angeles Times for nearly two years. “I knew the N.F.L. and the U.F.C. and all these other sports so well,” said Mr. Morgan, 27, who also covered high school sports and basketball for The Los Angeles Times, including helping report on the death of Kobe Bryant in 2020. So when The Times disbanded its Sports department last year, he took the opportunity to stretch himself and pitch a new beat: the intersection of sports and pop culture. “I’m not a movie critic or a Broadway-goer, but I follow pop culture, I watch Netflix and I listen to music constantly — in the shower every day, on the subway,” he said. “I had my pulse on it.” Over the past eight months, Mr. Morgan, now on the Culture desk, has written about the pop culture phenomenon of Taylor Swift and Travis Kelce, the growing relationship between the N.F.L. and streaming services and the rise of athlete podcasts.

My Tax Bill Is Huge Because My Investment Accounts Don't Withhold Capital Gains. How Can I Mitigate This Situation? 2024-06-04 07:00:00+00:00 - Michele cagan My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation? -David As capital gains distributions are unpredictable and usually unknown until the end of the year, it can be difficult to properly plan for them. Taking proactive steps to anticipate and “prepay” your tax bill can help you avoid an unmanageable balance due in April. Read on for more information on how to manage your tax liability throughout the year. (Looking for help with a financial question? This tool can help match you with potential advisors.) Options to ‘Prepay’ Your Tax Bill Ask an Advisor: 'How Can I Mitigate This Situation?' My Investment Accounts Don't Withhold Capital Gains Taxes, Which Causes Me to Owe a Large Tax Bill You have two main options for paying taxes throughout the year rather than dealing with a huge tax bill in April: adding or increasing withholding taxes from another income source, or making quarterly estimated tax payments. A third possible option would be to contact the mutual fund generating the capital gains distributions directly and ask it about withholding. It’s possible that the company would facilitate that but not likely. As for your investment account, those institutions typically only offer withholding when you sell securities or take retirement account distributions. Be aware that using these strategies will reduce the balance you have to pay when you file your taxes. But they won’t reduce your actual tax bill. (Looking for help with a financial question? This tool can help match you with potential advisors.) What Are Capital Gains Distributions? Mutual funds and exchange-traded funds (ETFs) hold lots of underlying investments like stocks and bonds. During the year, they may sell some of those investments, resulting in capital gains or losses inside the fund. At the end of the year, the fund distributes a proportional share of those sale proceeds to each investor – that’s a capital gains distribution. As an investor, you generally won’t know what to expect in terms of capital gain distribution income until late in the year. Funds typically post information about estimated distributions and expected payout dates on their websites in November or December. Unlike regular capital gains, which come into play when you sell an investment for more than its purchase price, you haven’t taken any action here. Your capital gains distribution is purely the result of trades that the fund itself made. So even though you haven’t sold any shares of your mutual fund, you’ll have taxable income from those capital gains distributions. This income will be taxed like long-term capital gains, no matter how long you’ve actually owned your fund shares. Long-term capital gains tax rates are based on your overall taxable income and filing status, so this income will be taxed at either 0%, 15% or 20%. Story continues How Can I Deal With These Taxes? Ask an Advisor: 'How Can I Mitigate This Situation?' My Investment Accounts Don't Withhold Capital Gains Taxes, Which Causes Me to Owe a Large Tax Bill Since you won’t know until late in the year how much you might receive in capital gains distributions, it can be tough to estimate the tax bill exactly – but you can get close enough to at least avoid IRS underpayment penalties. The IRS has safe harbor guidelines: As long as you pay at least 90% of your current tax bill or 100% of the prior year’s tax bill, or owe less than $1,000, you can avoid being charged underpayment penalties even if you end up owing. Both methods ask you to have a good sense of what your annual income will be early in the year, which isn’t always practical. You can start with your best estimate and make adjustments during the year if needed. (Looking for help with a financial question? This tool can help match you with potential advisors.) Begin or Increase Withholding on Other Income If you have other income sources, such as a regular W-2 job or federal retirement income, you can request that they enough withhold taxes to cover this additional income. You can even request withholding on Social Security payments. If you have an online account for your other income source, you can probably request or change withholding taxes right there. You’ll complete a Form W-4 (or the equivalent) and enter the amount you want withheld on the line that says “extra withholding.” For government payments like Social Security, you’ll use Form W-4V and choose the percent you want withheld. You can also stop this withholding at any time by updating your choices. Make Quarterly Estimated Tax Payments Once you know approximately how much tax you’ll owe, you can divide that by four and make equal estimated tax payments every quarter. You can either complete IRS Form 1040-ES and mail that with a check to your designated IRS mailing center or make your payment online at the IRS website. If you pay online, make sure you choose “Estimated Tax” for the reason and the correct current tax year. Pro tip: When making estimated tax payments for a jointly filed tax return, make sure to use the Social Security number of whichever of you appears first on the tax return (as “taxpayer” rather than as “spouse”). The IRS system sometimes misapplies or does not apply payments properly if the other SSN is used. Estimated tax due date payments are: April 15 June 15 Sept. 15 Jan. 15 (If the 15th falls on a weekend or holiday, the payments are due the next business day.) Estimated Tax Payments vs. Withholding Taxes Be aware that there are more potential penalties associated with estimated tax payments than withholding taxes. It’s also a lot easier to manage withholding as you can set it and forget it, as opposed to remembering to proactively make a payment every quarter. (Looking for help with a financial question? This tool can help match you with potential advisors.) Next Steps There are two ways to avoid paying a large tax bill in April. You can withhold extra taxes on another source of income or make quarterly estimated tax payments. Either way, you’ll be spreading out your taxes over the whole year instead of coming up with a lump sum when you file your tax return. Find a Financial Advisor If you have questions specific to your investing and taxation situation, a financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Understanding your tax bill can help you make plans for your money. Whether you plan on saving for retirement, paying off college or credit card debt, or investing your money differently, SmartAsset’s tax return calculator can help you figure out how much you will get back from the government so you can plan ahead. Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid -- in an account that isn't at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks. Michele Cagan, CPA, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. Please note that Michele is not a participant in the SmartAsset AMP platform, is not an employee of SmartAsset, and she has been compensated for this article. Photo credits: ©iStock.com/Milan_Jovic, ©iStock.com/AmnajKhetsamtip The post Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains appeared first on SmartAsset Blog.

Stock market today: Wall Street cleaves between winners and losers on report showing slowing economy 2024-06-04 06:13:29+00:00 - NEW YORK (AP) — U.S. stocks were split among winners and losers Tuesday after a report suggested the job market is cooling, the latest signal of a slowing economy that offers both upsides and downsides for Wall Street. The S&P 500 ticked up by 0.2%, though more stocks within the index fell than rose. The Dow Jones Industrial Average rose 140 points, or 0.4%, and the Nasdaq composite added 0.2%. The action was stronger in the bond market, where Treasury yields slid after Tuesday morning’s report showed U.S. employers were advertising fewer job openings at the end of April than economists expected. Wall Street actually wants the job market and overall economy to slow. That could help get inflation under control and convince the Federal Reserve to cut interest rates, which would ease the pressure on financial markets. Traders upped their expectations for cuts to rates later this year following the report, according to data from CME Group. The question is whether the slowdown for the economy overshoots and ends up in a painful recession. That would carry the downside of not only causing layoffs for workers across the country but also weakening profits for companies, which would drag stock prices lower. Tuesday’s report said the number of U.S. job openings at the end of April dropped to the lowest level since 2021. The numbers suggest a return to “a normal job market” following years full of strange numbers caused by the COVID-19 pandemic, according to Bill Adams, chief economist for Comerica Bank. But it also followed a report on Monday that showed U.S. manufacturing contracted in May for the 18th time in 19 months. Worries about a slowing economy have hit the price of crude oil in particular this week, raising the possibility of less growth in demand for fuel. A barrel of U.S. crude has dropped close to 5% in price this week and is roughly back to where it was four months ago. That sent oil-and-gas stocks to some of the market’s worst losses for a second straight day. Halliburton dropped 2.5%. Other companies whose profits tend to rise and fall with the cycle of the economy also fell to sharp losses, including steel makers and mining companies. Copper and gold miner Freeport-McMoRan lost 4.5%, and steelmaker Nucor fell 3.4%. The smaller companies in the Russell 2000 index, which tend to thrive most when the U.S. economy is at its best, fell 1.2%. Elsewhere on Wall Street, Bath & Body Works tumbled 12.8% for the worst loss in the S&P 500 despite topping expectations for revenue and profit in the latest quarter. Analysts called its forecast for results in the current quarter underwhelming. GameStop also gave back some of its big gain from the day before, when euphoria broke out after a central character in the stock’s 2021 run returned to say he had built a stake in the video-game retailer. It dropped 5.4%. On the winning side of Wall Street were dividend-paying stocks. They tend to benefit from lower interest rates because bonds paying lower yields can steer more income-seeking investors to real-estate investment trusts, utilities and other stocks that pay relatively high dividends. Camden Property Trust, which offers multifamily housing around the country, rose 2.6% for one of the largest gains in the S&P 500. Mid-America Apartment Communities rose 2.1%. Some Big Tech stocks whose fortunes seem to continue to rise no matter what the economy is doing also drove the market higher. Nvidia was the strongest force pushing the S&P 500 upward. It rose 1.2% as it keeps riding a furor on Wall Street around artificial-intelligence technology. All told, the S&P 500 rose 7.94 points to 5,291.34. The Dow gained 140.26 to 38,711.29, and the Nasdaq added 28.38 to 16,857.05. In the bond market, the yield on the 10-year Treasury slid to 4.33% from 4.39% late Monday and 4.50% late Friday. It had been above 4.60% recently. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.77% from 4.81%. In stock markets abroad, India’s Sensex dropped 5.7% a day after jumping 3.4% following the country’s elections. Indexes were mixed across the rest of Asia and lower across much of Europe. ___ AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Why Coherent Stock Exploded 20% Higher on Monday 2024-06-04 04:45:00+00:00 - Laser maker Coherent (NYSE: COHR) saw its stock run up 19.5% through 11:45 a.m. ET Monday after the company announced it has poached Jim Anderson, CEO of Lattice Semiconductor, to become its own new CEO. Conversely, Lattice shares are down 15% on the news. Lattice announced simultaneously that it has elevated Chief Marketing Officer Esam Elashmawi to become its interim CEO as it begins its search for a permanent replacement. Who is Jim Anderson -- and why does everyone want him? Lattice stock is down significantly from its recent highs hit in March -- which may not seem like high praise, or a great reason for Coherent to be poaching the company's CEO. According to data from S&P Global Market Intelligence, however, Anderson has served as CEO of Lattice since Sept. 4, 2018. And over this longer time span it's worth noting that Lattice shares have roughly octupled in value versus a gain in the S&P 500 of only 100%. So despite its recent decline, under Anderson's leadership, the stock's still produced 8x better performance than the average stock on the market. LSCC Total Return Level Chart This, in a nutshell, may be why Coherent investors are so enthused about today's news -- and why Lattice shareholders are so upset to be losing Anderson's leadership. Does a new CEO make Coherent stock a buy? Coherent can certainly use the help. While the company's stock has performed well of late, up 51% over the past 52 weeks, Coherent carries a significant debt load ($3.4 billion net of cash), and is not profitable. Coherent is generating decent free cash flow, about $225 million over the past year. Still, at a valuation of nearly 39 times trailing free cash flow and with a growth rate estimated in the low teens, it's not at all a cheap stock. Anderson's first task as head of Coherent, I suspect, will be to juice that growth rate a bit, and help Coherent grow into its valuation. Should you invest $1,000 in Coherent right now? Before you buy stock in Coherent, 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 Coherent 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 $671,728!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of June 3, 2024 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Coherent. The Motley Fool has a disclosure policy. Why Coherent Stock Exploded 20% Higher on Monday was originally published by The Motley Fool

Oil falls 3% on OPEC production cut as demand worries surface 2024-06-04 04:40:00+00:00 - Oil prices fell as much as 3.5% on Monday following OPEC+'s decision to start unwinding some voluntary cuts earlier than anticipated, increasing demand concerns heading into 2025. West Texas Intermediate (CL=F) futures settled at $74.27 per barrel, while Brent (BZ=F), the international benchmark price, closed at $78.36 per barrel. Oil futures are down roughly 13% from their April peak. Monday's heavy selling was "exacerbated by technical pressure and limited interest in buying the dip as demand has been a bit soft," Rebecca Babin, US senior energy trader at CIBC Private Wealth, told Yahoo Finance. Over the weekend, the oil alliance led by Saudi Arabia extended its 3.6 million barrels per day of existing cuts until the end of next year, but additional reductions of 2.2 million barrels per day would start to unwind over the next 12 months, starting this October. "Barring a material upside surprise in demand, lifting previous cuts after this coming September could prove premature," Peter McNally, global head of analysts at Third Bridge, said in a note on Monday. JPMorgan analysts saw the move as "market neutral" for oil balances and prices in 2024, though a demand slowdown is forecast for next year. "We have been arguing that the group should unwind some of the voluntary reductions in 2024 at a time when demand allows for it (at the expense of slightly lower prices)," wrote Natasha Kaneva, head of the global commodities strategy team at JPMorgan. "Otherwise ... OPEC’s massive effective spare capacity — a historic 4.1 mbd high at a time of record demand — will make it increasingly difficult to accommodate further large-scale supply reductions when they will likely be needed in 2H25." Crude's downward trend has also helped ease gasoline prices in recent weeks. On Monday, the national average for gasoline stood at $3.53 per gallon, down $0.06 from one week ago, the largest weekly drop of 2024, according to AAA data. "We're seeing an epic slide for wholesale gasoline prices and cocktail party chatter is likely to focus on plunging retail numbers," Tom Kloza, global head of energy analysis at OPIS, told Yahoo Finance last week. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

E*Trade considering kicking Keith Gill off its platform, WSJ reports 2024-06-04 04:17:00+00:00 - (Reuters) -E*Trade is considering telling meme-stock influencer Keith Gill he can no longer use its platform after growing concerns about potential stock manipulation amid his recent purchases of GameStop, the Wall Street Journal reported on Monday. Shortly before Gill reignited a meme stock craze in May, he bought a large volume of GameStop options on E*Trade, the Journal's report said, citing people familiar with the matter. E*Trade-parent Morgan Stanley declined to comment on the report. GameStop shares jumped around 30% on Monday after the stocks influencer, known as "Roaring Kitty", returned to Reddit with a post showing a $116 million bet on the embattled videogame retailer. The post was the first in three years from his Reddit account by Gill, the influencer behind the 2021 retail trading frenzy. In 2021, screenshots on Reddit of his bullish GameStop trades triggered a rush of demand for "meme stocks" - often companies with weak fundamentals that gained a cult-like following through social media hype among retail traders. The screenshot posted on Sunday showed a GameStop holding of 5 million shares, or 1.8% of its publicly available stock. Gill's last post from April 2021, titled "final update", showed a holding of 200,000 shares worth $30.9 million. Reuters could not verify the screenshot on Reddit. (Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel)

What Percentage Of People Retire With A $1 Million Nest Egg? It's Far Less Than You'd Expect 2024-06-04 04:02:00+00:00 - What Percentage Of People Retire With A $1 Million Nest Egg? It's Far Less Than You'd Expect For decades, the $1 million retirement savings goal has been considered the gold standard for a secure and comfortable post-work life. However, the reality for most Americans is quite different. According to the Federal Reserve’s latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more. This leaves a significant 90% who fall short of this milestone. Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? Reddit user reveals his retirement account’s “hourly wage” — how much does your money really make per hour? The median retirement savings account balance for all U.S. families, including all age brackets, is currently just $87,000. Generation X, born between 1965 and 1980, faces a unique set of challenges regarding retirement savings. The median retirement savings for Gen X is around $40,000, which is alarmingly low compared to what they believe they need. On average, Gen Xers think they will need about $1.1 million to retire comfortably. However, they expect only around $661,000 to be saved by retirement, highlighting a substantial gap in their retirement planning. This generation is in a tricky position. They are the first to rely more heavily on 401(k) plans and IRAs instead of traditional pensions, making them more susceptible to market fluctuations. Baby Boomers aged 58 to 77 are in or approaching retirement. The median retirement savings for Boomers is about $120,000, while the average savings are higher at around $306,000. Despite being closer to retirement, many Boomers still find themselves far from their retirement goals. They estimate needing around $1 million but often fall short due to financial and economic challenges. NerdWallet reports that those between 65 and 74 hold an average of $609,230 in retirement savings, with a median of $200,000. This figure is still far below the $1 million target, and many retirees need to adjust their lifestyle expectations significantly. Trending: Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? So, what sets the 10% who reach the $1 million mark apart? There are a few key strategies that have proven effective: Starting Early: The power of compounding is significant. For example, saving $400 per month starting at age 25 can grow to $1 million by 65, assuming a 7% annual return. Maximizing Tax-Advantaged Accounts: Using 401(k)s and IRAs effectively can boost savings considerably. These accounts offer tax benefits that can accelerate growth. Story continues Staying Invested: Riding out market ups and downs rather than trying to time the market can lead to better long-term returns. While $1 million is a common target, defining what "enough" means for you personally is key. This involves careful planning, considering expected longevity, health care costs, and desired lifestyle. By setting realistic goals and working with a financial advisor, you can develop a retirement plan that aligns with your specific needs and risk tolerance. If you aren’t on track to reach the $1 million goal, that’s OK. What’s enough for some might be different for others. Consulting a financial advisor can provide personalized guidance, helping you set achievable goals and craft a strategy tailored to your circumstances. With discipline, strategic planning, and realistic expectations, you can work toward a retirement that fits your unique situation, even if reaching the $1 million mark remains out of reach for many. Read Next: Americans got swindled out of $24.6 billion in the last 3 years – Which high profile ponzi scheme was endorsed by millionaires? A new fund backed by Jeff Bezos offers a 7-9% target yield with monthly dividends. Here’s how you can invest today. *This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions. Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest, and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty, or undertaking, stated or implied, as to the accuracy or completeness of the information. "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 What Percentage Of People Retire With A $1 Million Nest Egg? It's Far Less Than You'd Expect originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

As China’s Internet Disappears, ‘We Lose Parts of Our Collective Memory’ 2024-06-04 04:00:06+00:00 - Chinese people know their country’s internet is different. There is no Google, YouTube, Facebook or Twitter. They use euphemisms online to communicate the things they are not supposed to mention. When their posts and accounts are censored, they accept it with resignation. They live in a parallel online universe. They know it and even joke about it. Now they are discovering that, beneath a facade bustling with short videos, livestreaming and e-commerce, their internet — and collective online memory — is disappearing in chunks. A post on WeChat on May 22 that was widely shared reported that nearly all information posted on Chinese news portals, blogs, forums, social media sites between 1995 and 2005 was no longer available. “The Chinese internet is collapsing at an accelerating pace,” the headline said. Predictably, the post itself was soon censored.

Giant Food stores in D.C. area ban duffel bags to thwart theft 2024-06-03 23:15:00+00:00 - While some major retailers are investing in AI to combat shoplifters, Giant Food supermarket chain is taking a low-tech approach: It is banning large bags in some stores. "Giant Food initiated a new policy at select stores that are experiencing high shrink to mitigate the unprecedented levels of product theft that have become unsustainable for our business," the company said in a statement to CBS MoneyWatch. As of May 23, customers are prohibited from bringing suitcases, duffel bags or bags larger than 14" x 14" x 6" into certain Giant stores. The chain will still permit customers to use their own reusable shopping bags. The policy is in place at Giant supermarkets in Washington, D.C., and select additional locations in the region, a company spokesperson told CBS MoneyWatch. "We need to be able to run our stores safely and profitably, and we take these responsibilities seriously. The tactics we deploy are only one of the solutions to our problem," the spokesperson said. Giant added that retail theft is so pervasive at its stores that it's limiting product availability putting both associates and customers in harm's way. Other large retailers have taken steps to combat shoplifting like putting popular, easy-to-steal items behind locked shelves. But such anti-theft measures can turn away paying customers who don't want to wait for an attendant just to add a pack of peanuts to their shopping bags. Walmart, in its latest earnings call, said it was testing the use of AI to catch thieves.

NYSE glitch sends Berkshire Hathaway shares down nearly 100% 2024-06-03 22:54:00+00:00 - The New York Stock Exchange on Monday said it had resolved a technical problem that has Class A shares of Warren Buffett's Berkshire Hathaway seemingly down almost 100%. The issue prompted trading to be halted in Berkshire's A-class shares, along with about a dozen other companies, including Barrick Gold and Nuscale Power, both of which also showed faulty and steep declines. Trading continued in Berkshire's B-class shares. The trouble arose shortly after the opening bell, impacting the likes of Chipotle Mexican Grill, Abbott Laboratories and other stocks. A list of impacted stocks can be seen here. "A technical issue involving industrywide price bands published by the Consolidated Tape Association's Securities Information Processor triggered 'limit-up/limit down' trading halts on up to 40 symbols listed on NYSE Group exchanges. Shortly before noon, the issue was resolved and trading in the impacted stocks resumed," a spokesperson for the exchange said in an email. "The NYSE is reviewing potentially impacted trades."

Trump campaign and RNC say they raised $141 million in May 2024-06-03 22:35:00+00:00 - Former U.S. President and Republican presidential candidate Donald Trump smiles during a campaign rally in Windham, New Hampshire, August 8, 2023. Former President Donald Trump's campaign and the Republican National Committee announced Monday that the two entities together raised $141 million in May. The massive haul would represent a major shift in fortune for Trump after his campaign has struggled to keep up with President Joe Biden's fundraising for parts of the election. Trump and the RNC had said that in April they brought in just over $76 million, and Biden's political operation announced it raised around $51 million for that month. Trump was convicted Thursday on 34 counts of falsifying business records in an effort to cover up a hush money payment to porn star Stormy Daniels. The Trump campaign said it raised $34.8 million in less than seven hours after the New York jury's verdict was announced. The Trump team also said it raised a total of $52.8 million in the 24 hours after the trial concluded. The Trump campaign said that accounts for just over 37% of their May haul. Most of the Republican Party's biggest donors have shrugged off the guilty verdict and moved to back Trump. Venture capitalist and longtime Republican donor Doug Leone announced Monday that he too was going to support Trump, even though he denounced him after the Jan. 6, 2021, riot on Capitol Hill. "I have become increasingly concerned about the general direction of our country, the state of our broken immigration system, the ballooning deficit, and the foreign policy missteps, among other issues. Therefore, I am supporting former President Trump in this coming election," Leone said in a post on X. He did not respond to an email seeking comment. Since Trump's trial ended, the former president has continued to deny the allegations brought against him and used the verdict to try to raise more campaign cash. His team pointed to the trial as a fundraising boom and said donors want Trump's policies back in place. "President Trump raised $141 million this month [May] because Americans remember the roaring economy, secure border, and peace through strength at home and abroad under Donald J. Trump, and we will return to prosperity and success when he is re-elected in November," said Trump campaign senior advisors Susie Wiles and Chris LaCivita in a statement. If the Trump camp's figures are accurate, it would also suggest that the former president may have caught up with Biden in the fundraising game. Biden has not announced his fundraising totals for May, and it's impossible to verify yet the claim that Trump's team raised $141 million because the latest campaign finance records won't be made public until later in June. Trump's campaign has raised $120 million in the 2024 election cycle so far, while Biden's campaign has brought in $195 million, according to data from OpenSecrets.

Cucumbers recalled in 14 states due to salmonella risk 2024-06-03 22:31:00+00:00 - What to know about U.S. food safety amid bird flu, E. coli outbreaks U.S. food safety: What to know amid outbreaks U.S. food safety: What to know amid outbreaks A Florida company is recalling cucumbers shipped to 14 states due to the risk of salmonella. Fresh Start Produce Sales Inc. of Delray, Florida, is recalling whole cucumbers shipped from May 17 through May 21, 2024, to retail and food service distribution centers in the following states: Alabama, Florida, Georgia, Illinois, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia. Fresh Start Produce Sales Inc. of Delray, Florida, is recalling whole cucumbers shipped from May 17 through May 21, 2024. U.S. Food and Drug Administration The recall came after the Pennsylvania Department of Agriculture told the company a product sample tested positive for salmonella, Fresh Start Produce stated in a notice posted Saturday by the Food and Drug Administration. The organism can cause serious and sometimes fatal infections in the young, frail or elderly. Healthy people infected with salmonella can experience symptoms including fever, diarrhea, nausea, vomiting and abdominal pain. In rare circumstances, the bacteria can get into the bloodstream and cause more severe infections. Salmonella bacteria cause about 1.35 million infections, 26,500 hospitalizations and 420 deaths in the United States every year, with food being the source for most of the illnesses, according to the Centers for Disease Control and Prevention. Most people recover without specific treatment and should not take antibiotics, the CDC noted. Photo of recalled products. U.S. Food and Drug Administration The FDA is conducting whole genome sequencing to determine if the sample is related to an ongoing salmonella outbreak investigation, according to the recall notice. The sole salmonella outbreak on the agency's active investigation list involves one with 141 people sickened and a food link not yet identified, as first noted by food safety attorney Bill Marler. The recalled vegetables were shipped in bulk cartons and are dark green, approximately 1.5 to 2 inches in diameter and five to nine inches long, Fresh Start Produce said. Mini and English cucumbers are not included in the recall. Photo of recalled products. U.S. Food and Drug Administration People who purchased the recalled cucumbers should not eat them but are advised to discard or return for a refund. Those with additional questions cal call the company at 1-888-364-2993 Monday through Friday from 8 a.m. to 5 p.m. Eastern.

Poppi prebiotic soda isn't as healthy as it claims, lawsuit alleges 2024-06-03 22:16:00+00:00 - California bans four food additives California bans four food additives 00:26 Poppi prebiotic soda is not as "gut healthy" as the trendy beverage's maker would lead you to believe, according to a lawsuit. Filed Wednesday on behalf of San Francisco resident Kristin Cobbs, the class action claims the popular drinks do not contain enough prebiotic fiber to cause meaningful health benefits from consuming just one can. One would have to drink more than four Poppi sodas in a day to realize any of the product's touted claims, yet the drink's "high sugar content would offset most, if not all, of these purported gut health benefits," stated the suit filed in the Northern District of California. "We are proud of the Poppi brand and stand behind our products," a spokesperson for Austin-based VNGR Beverage, which makes and distributes the products, told CBS MoneyWatch in a statement. "We believe the lawsuit is baseless, and we will vigorously defend against these allegations." According to Poppi's website, the drinks contain agave inulin, apple cider vinegar and fruit juice. Agave inulin is a form of naturally soluble fiber that functions as a prebiotic, but consuming too much of it can cause "adverse health results," including gas, abdominal discomfort, diarrhea and liver damage, the suit states. Founded in 2016 as a healthy alternative to traditional sodas, the Poppi soda increased in popularity after an investment from "Shark Tank," a reality television show that gives entrepreneurs the chance to pitch their ideas.