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Rent Is Harder to Handle and Inflation Is a Burden, a Fed Financial Survey Finds 2024-05-21 15:58:33+00:00 - American households struggled to cover some day-to-day expenses in 2023, including rent, and many remained glum about inflation even as price increases slowed. That’s one of several takeaways from a new Federal Reserve report on the financial well-being of American households. The report suggested that American households remained in similar financial shape to 2022 — but its details also provided a split screen view of the U.S. economy. On the one hand, households feel good about their job and wage growth prospects and are saving for retirement, evidence that the benefits of very low unemployment and rapid hiring are tangible. And about 72 percent of adults reported either doing OK or living comfortably financially, in line with 73 percent the year before. But that optimistic share is down from 78 percent in 2021, when households had just benefited from repeated pandemic stimulus checks. And signs of financial stress tied to higher prices lingered, and in some cases intensified, just under the report's surface.

How Donald Trump’s Financial Future Became Tied to Trump Media 2024-05-21 15:54:46+00:00 - At Mar-a-Lago on a Wednesday evening last month, Donald J. Trump mingled with partygoers, greeting his supporters and making small talk. The country star Lee Greenwood sang “God Bless the U.S.A.,” and the former president’s oldest son, Donald Jr., gave a speech. The elder Mr. Trump was presiding over a cocktail reception for about 150 guests to celebrate the public debut of Trump Media & Technology Group, the parent company of his social media app, Truth Social. Trump Media’s share price had soared in its first day of trading, adding billions of dollars to Mr. Trump’s wealth. But the party was far from lavish. Guests munched on cookies emblazoned with the letters DJT, the company’s stock symbol. They were invited via the free Paperless Post app and told they couldn’t bring a plus one, according to a copy of the invitation.

CD interest rate forecast for summer 2024: Everything experts predict 2024-05-21 15:31:00+00:00 - We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. There could be a shift in CD rates this summer, experts say, but it will depend on a few different factors. Getty Images Inflation remains relatively high at 3.4%, higher than the Federal Reserve's target rate. To achieve its goal of lower inflation, the Fed opted to keep the federal funds paused at the same rate at last month's meeting. As a result, interest rates for borrowing products, like auto loans and home loans, will remain high — at least until the Fed's next meeting. The continued rate pause was good news for savers, though, since high-yield savings and certificate of deposit (CD) rates will likely stay elevated for now. In fact, some of the best CD accounts have interest rates of over 5% currently. But that could change over time. So what exactly will happen with CD rates this summer? Compare the top rates you could earn on the right CD account today. What will happen to CD rates in the summer of 2024? Here's what some experts think might happen to CD rates this summer. CD rates might remain flat When the Federal Open Market Committee (FOMC) met earlier this month, the Federal Reserve voted to keep the federal funds rate the same. As a result of this decision, CD rates could remain flat this summer, some experts say. "Short-term rates will likely stay flat or decline slightly if the FED cuts rates later this year," says Noah Damsky, CFA, principal of Marina Wealth Advisor. "The opportunity for higher CD rates is the least probable outcome." Chris Diodato, CFA and CFP and founder at WELLth Financial Planning, also believes CD rates will stay the same this summer. "Officials at the Federal Reserve have noted that progress on beating down inflation has stalled in 2024," says Diodato. "Wage inflation is too high, and we're starting to see inflation in raw materials like copper and aluminum." Because of those factors, Diodato expects rates to stay the same, at least through the third quarter of this year. Find out how opening a CD could help you achieve your savings goals now. CD rates might drop Most of the experts we spoke with agree that CD rates will likely fall this summer, but that's only if the Fed lowers rates. "If the Fed lowers their benchmark federal funds rate (what they directly control), it could cause CD rates for just about every term under five years to fall," says Diodato. However, he believes it's harder to predict the direction of CDs with terms over five years. "Longer-term CDs are influenced by interest rate changes, but are also determined by factors, such as long-term inflation and economic growth expectations, which the Fed doesn't directly control," Diodato says. "The Fed may lower rates in the fall," says Angela Dorsey, a certified financial planner and founder at Dorsey Wealth Management. If that happens, Dorsey thinks CD rates will drop. The benefits of opening a CD now The main benefit of opening a CD now is that you can lock in a good CD interest rate for up to a year or longer. "If someone is waiting for rates to increase to purchase a CD, they may miss out on today's relatively high rates. I would encourage them to purchase now and lock in today's rate by purchasing a 6-month or 12-month CD," says Dorsey. Brian Seymour, II, a certified financial planner, ChFC, and founder at Prosperitage Wealth, has similar thoughts. "I would remind anyone looking at current CD rates of the below 1% rates we saw last decade," says Seymour, "Locking in a guaranteed rate above 5% can provide investors with a return and peace of mind that may not be available much longer." The bottom line Right now, CD rates are high — and some financial institutions offer rates as high as 5.30%. But before you open one, consider alternative banking products and the likelihood you'll need to access the money before the term expires to avoid early withdrawal penalties. "With the rates of CDs and high-yield savings accounts (HYSAs) so comparable, an HYSA should be considered as an alternative to locking your money away for extended periods of time," says Seymour. If you decide to get a CD, select a CD term that fits your financial situation. For instance, if you plan on paying your child's first-year tuition in two years, consider getting a 2-year CD.

Jeremy Hunt looks to cut NICs again despite IMF warning of £30bn fiscal hole 2024-05-21 15:20:00+00:00 - Jeremy Hunt is preparing a pre-election cut in national insurance despite a warning from the International Monetary Fund of a looming £30bn hole in the public finances, Downing Street has indicated. Rishi Sunak’s spokesperson said the government rejected the IMF’s argument that there was no room for a third cut in NI in less than a year and that the Treasury should instead be thinking about tax increases or spending cuts. “I think on that we respectfully disagree with the IMF,” the spokesperson said. “My view is that cutting national insurance, rewarding work, is an important part of growing the economy.” Downing Street was responding to the release of the IMF’s annual health check on the UK in which it said “difficult choices” lay ahead. Speaking at a press conference, Kristalina Georgieva, the IMF’s managing director, said a cautious approach to tax cuts was needed because the pandemic and Russia’s invasion of Ukraine had damaged the public finances. “We are genuinely concerned, not just for the UK, for all countries that have used fiscal buffers extensively, that they must do more to rebuild these buffers,” she said. The IMF said it would have advised Hunt not to cut national insurance contributions (NICs) by two percentage points in last year’s autumn statement and March budget, and expressed strong doubts about the wisdom of the chancellor’s plans for another cut in NICs before polling day. It said that in order to stop debt rising, the Treasury may need to consider a range of potentially unpopular revenue-raising measures including widening the scope of VAT, road pricing, scrapping the triple lock on the state pension, raising more from inheritance tax and capital gains tax, and wider user charges for public services. Georgieva said the economy was on course for a “soft landing” after a faster-than-expected fall in the annual inflation rate and the end of last year’s shallow recession. The IMF believes the UK will grow by 0.7% this year rather than the 0.5% it had estimated in last month’s World Economic Outlook. With the Bank of England contemplating whether to cut interest rates next month from their current 5.25%, the IMF said it saw scope for two or three 0.25 percentage point cuts in official borrowing costs this year. But it said the longer-term growth prospects for the economy remained poor and that this – coupled with demands for better public services and “critical investment needs” – put pressure on the public finances. A team of IMF officials has been in the UK for the past two weeks for the annual Article IV consultation and said in a concluding statement: “In light of the medium-term fiscal challenge, staff would have recommended against the NIC rate cuts, given their significant cost. “But staff does recognise the potential labour supply benefits of the NIC cuts and that they were accompanied by well-conceived measures (eg reform of the ‘non-dom’ regime) that will partially offset their fiscal cost over the medium term.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The statement said that “as a general principle, staff would advise against additional tax cuts, unless they are credibly growth-enhancing and appropriately offset by high-quality deficit-reducing measures”. Government plans involve day-to-day departmental spending rising by 1% a year when adjusted for inflation, and for investment spending to be flat. The IMF said these did not “sufficiently account for known pressures in public services (especially health and social care), and critical growth-enhancing investment needs (including for the green transition)”. The IMF team said it was assuming higher increases – 2% real growth – in departmental spending, but that this would result in debt as a share of national income continuing to rise, reaching 97% of gross domestic product (GDP) by the end of the decade. The IMF said that, to be certain of stabilising debt by 2029-30, the government would need to raise revenue or make savings equivalent to one percentage point of GDP – roughly £30bn – and that this would involve “tough choices”. Hunt said: “Today’s report clearly shows that independent international economists agree that the UK economy has turned a corner and is on course for a soft landing. “The IMF have upgraded our growth for this year and forecast we will grow faster than any other large European country over the next six years – so it is time to shake off some of the unjustified pessimism about our prospects.”

How to Invest in NASDAQ: An Easy-to-Follow Guide 2024-05-21 15:18:00+00:00 - When tracking the US stock market, you’ll usually see quotes from 3 major indices: the Dow Jones Industrial Average, the S&P 500 and the NASDAQ Composite Index. All 3 are proxies for US stock market performance, but they don’t always share the same components and weigh their stocks differently. The NASDAQ is the newest of the major indices, composed of the tech-heavy companies trading on the NASDAQ exchange. Confused yet? Read on to learn more about the difference between the NASDAQ exchange and the NASDAQ Composite Index and how to invest in its component securities. The NASDAQ exchange was one of the first marketplaces to eschew a trading floor in favor of a fully electronic system. Traders could buy and sell stocks through a digital network, which increased speed and reduced bid/ask spreads. Today, all exchanges operate using computers, and traders can move stocks with a few smartphone taps. However, the NASDAQ is still an essential cog in global markets, and investors should be aware of the different securities based on it. Get breaking market news alerts: Sign Up Ways to Invest in Nasdaq Buying all 2,500+ stocks in the NASDAQ Composite would stretch your portfolio thin. Thankfully, investors and fund companies have been getting NASDAQ exposure through more conventional means since the Dot Com Boom. Here are 3 easy paths to invest in NASDAQ: Direct Stock Purchases One method of NASDAQ investing is to concentrate your portfolio into a smaller assortment of stocks through direct purchases. Investing in individual stocks is the riskiest and most time-consuming way of gaining NASDAQ exposure, but some investors prefer it for the potential index-beating returns. Always conduct due diligence on your target stocks and ensure they align with your goals and timeframe. Nasdaq-focused ETFs If picking individual stocks isn’t ideal, consider an ETF - a basket of stocks based on a particular theme or strategy. One of the most popular ETFs is Invesco QQQ (NASDAQ: QQQ), the $260 billion cap-weighted colossus composed of the top 100 non-finance firms in the Composite. When choosing an ETF, consider the fund’s goals, methodology and costs before investing. Some QQQ alternatives include the broader Fidelity NASDAQ Composite ETF (NASDAQ: ONEQ) and the balanced Direxion NASDAQ-100 Equal Weighted Index (NASDAQ: QQQE). Mutual Funds Like ETFs, mutual funds are baskets of stocks bundled into a single security. However, ETFs trade on exchanges during open market hours; mutual funds aren’t actively traded, and shares can only be swapped after net asset value (NAV) is calculated at day’s end. Mutual funds are less tax-efficient than ETFs and frequently carry higher expense rates, but they’re the primary investment vehicle for 401(k) savers since ETFs aren’t allowed, and taxes on capital gains distributions can be deferred. How to Choose the Right Investment Strategy Picking an investment strategy requires a little self-analysis. What are your goals as an investor? How much risk do you want to take? You can’t control market returns, so focus on what’s within your grasp. Consider the following factors: Time Horizon - How long do you plan on staying invested? If you have a long timeline, you can likely handle a riskier portfolio since you can dollar-cost average your way through a bear market. However, with short-term goals, a steep decline is tougher to tolerate. Investment Goals - What’s the objective behind your investments? If you’re saving for retirement, consider tax-deferred accounts like a 401(k) or Roth IRA. But if you’re in a standard account, you won’t get tax advantages and will probably consider a different asset allocation. Financial Situation - No one gives away stocks for free, and you need to consider how much you can afford to invest before buying any assets. If you max out your retirement vehicles and still have leftover income to invest, your plan might differ from someone who can only fill 80% of a 401(k) account. Investment decisions are always personal, so consult with an advisor if you want to get serious about building a portfolio. A Guide for Getting Started If you decide that exposure to NASDAQ stocks suits your investment goals, you must open a brokerage account to construct a portfolio. Don’t know where to get started? Follow these 4 simple steps: 1. Research and Select a Brokerage Firm Now that commissions on stock and ETF investments are non-existent at most brokers, investors have more factors to consider when picking a broker. You’ll still need to research each broker’s fee schedule for transfer fees, inactivity fees and margin rates. But also consider features like charting tools, technical indicators, and research, especially if you’re actively trading individual stocks. If you’re choosing between a few favorites, look for a demo or paper trading account to test the platform before depositing any real cash. 2. Open a Trading Account Once you’ve picked a broker, you must open an account. Your investment goals will dictate which account you open. Are you saving for retirement? Consider a traditional or Roth IRA for tax benefits. If you aren’t opening a tax-deferred account, you’ll need to choose between cash or margin. Margin accounts allow investors to borrow capital, but rates apply, and margin accounts are subject to pattern day trader (PDT) rules. Regardless of your account, you’ll need to fill out a few forms to register and provide documentation like a driver's license, social security or proof of residence. 3. Invest in Individual Stocks or Funds If you have a portfolio strategy in mind for your NASDAQ investments, you can locate your preferred assets through your broker and purchase shares. If you don’t have a plan yet, use MarketBeat’s tools to narrow your stock selection and learn how to place orders. 4. Keep Up with Financial News Even the best investment strategy requires occasional tweaking, so stay current with market headlines and economic news. If market sentiment changes, you may need to adjust your asset allocation sooner than initially anticipated. Risks and Rewards of Investing in Nasdaq Investing in NASDAQ, especially in securities like QQQ, has provided investors with breathtaking highs and stomach-churning lows. Look no further than the Dot Com Bubble to see how highly volatile tech stocks can run up past reasonable valuations, only to crash and burn devastatingly. The NASDAQ Composite Index contains a wide range of stocks, including many small caps that lack favorable fundamentals. Additionally, the heaviest-weighted companies are tech giants like NVIDIA Corp (NASDAQ: NVDA) and Amazon Inc (NASDAQ: AMZN), which are known to be volatile despite their size and maturity. Learning how to invest in NASDAQ requires a certain level of risk tolerance, but the gains over the last decade-plus have been worth it for investors. Thanks to large-cap tech, the NASDAQ 100 index has vastly outperformed the S&P 500 since the end of the Global Financial Crisis, although with deeper corrections and volatility along the way. Regardless of your investment strategy, always mitigate risk through diversification, have a long-term plan and be flexible if the market data changes. Conclusion The NASDAQ Composite is more volatile than its peers thanks to the tech concentration, but tech has been one of the most rewarding sectors in the post-GFC era. While a portfolio of only tech stocks might be too risky for the average investor, NASDAQ investments through ETFs can still allow for diverse portfolio construction. Explore Your Options with MarketBeat NASDAQ investing requires ample due diligence since the tech sector can be risky and volatile. If you want to enhance your stock research and analysis, consider the wealth of tools and reports MarketBeat offers. Click here to learn more about our offerings.

How Media Outlets Are Covering Justice Merchan in Trump’s Criminal Trial 2024-05-21 15:17:02+00:00 - Conservative media has been preoccupied for weeks with Justice Juan M. Merchan, the New York judge presiding over the Manhattan criminal trial against former President Donald J. Trump. Mr. Trump has long attacked Justice Merchan and his family in social media posts and on his campaign website. But Justice Merchan did not earn a starring role in conservative media until after he issued a formal gag order against the former president, forbidding attacks against various people involved in the trial, including jurors and witnesses. Since then, right-wing commentators, most prominently on Fox News, have condemned the judge nearly daily in their coverage of the trial. They have painted Justice Merchan’s rulings as biased, decried small donations he made to Democrats in 2020 and suggested that his connection to his daughter, a Democratic political consultant, made him unfit to oversee the case. Liberal outlets have focused less on Justice Merchan, instead centering their coverage of the trial on the charges against Mr. Trump and the figures in his orbit. But some smaller outlets have praised Justice Merchan for clamping down on Mr. Trump.

What next for regime and region after Iran's president dies in helicopter crash? 2024-05-21 14:30:00+00:00 - The sudden death of a leader will shake any country, but the crash that killed President Ebrahim Raisi comes at a particularly precarious moment for Iran and the Middle East as a whole. The Islamic Republic is a regional giant that can ill afford a wobble at the top. Abroad, it is engaged in a shadow war with Israel that has come terrifyingly close to spiraling into an open regional conflict. At home, it is grappling with a long-running economic crisis that’s been joined by social turmoil, as brutal protest crackdowns have caused a widening chasm between the ultraconservative religious elite and the more liberal youth. Raisi, 63, was seen by many as a pliant figurehead, chosen for his loyalty to Ayatollah Ali Khamenei, Iran’s aging supreme leader. Former Western officials and experts said it was unlikely the death of Raisi would trigger major changes in how the theocratic government handled international or domestic issues, including Tehran’s long-established hostility to the United States and its support of Hamas and other proxy groups across the Middle East. “I don’t expect any major sort of fundamental shifts in domestic or foreign policy,” said Alex Vatanka, senior fellow and the founding director of the Iran program at the Middle East Institute think tank in Washington. Raisi has “always been a yes man.” While this may not change any immediate policies — foreign or domestic — many observers believed him to be a front-runner to replace Khamenei, 85, and his sudden death could upend the battle to helm the theocratic regime. “There’s a lot of money and power at stake when Khamenei dies,” Vatanka said. So far, Khamenei has chosen not to name or suggest a likely successor, preferring to keep it as an open question. Raisi wore a black turban, symbolic of those who are descendants of the Prophet Muhammad. Iranian Presidency / AFP - Getty Images “There is a big void with Raisi gone, not just in terms of presidential candidates but also, even more importantly, in terms of succession to the supreme leader,” Aniseh Bassiri Tabrizi, an Abu Dhabi-based senior analyst at the security consultancy Control Risks, told NBC News. Raisi’s shocking death comes at a time of vulnerability for Iran, even as it forges deeper ties with Russia and China. More generally, it could add an “increased perception of vulnerability” of Iran in Western eyes, Tabrizi said. “That will affect their negotiating position,” she added, whether that’s “on nuclear issues or, generally speaking, on negotiations with the West.” Thousands of mourners gathered for the first funeral event early Tuesday in Tabriz, the closest major city to the crash site. Iranian Presidency / AFP - Getty Images Tehran has accelerated its nuclear program since the U.S. withdrew from a landmark agreement capping its activities and has now pushed far beyond the restrictions imposed in that deal, enriching uranium close to the levels needed to build nuclear weapons, according to the International Atomic Energy Agency. Meanwhile, it is supporting a number of proxy forces fighting Israel, and in some cases American forces, across the region: from Hamas in Gaza, Hezbollah in Lebanon, the Houthis in Yemen, and fighters in Iraq and Syria. The situation escalated last month after a suspected Israeli bombing of a consular building in Damascus, Syria, killed two Iranian generals. Iran’s unprecedented direct response of 300 missiles and drones fired at Israel brought the rivals closer to a wider war that neither appeared to want. Raisi “was not a strong driving force of any particular line on Iranian foreign policy, and as a result, his absence is not going to have an impact on that,” said Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, a Washington-based think tank. Iran is in a military standoff with Israel, its regional rival whose Prime Minister Benjamin Netanyahu is seen on a billboard in Tehran earlier this month. AFP - Getty Images However, his death “is going to create some problems for the regime internally,” according to Parsi, not only “intensifying the rivalry over who will take over the supreme leadership,” but also possibly weakening Iran’s attempts to limit attacks by its proxy militias on American forces. If Iran’s sudden succession quandary causes “some sort of a paralysis, even briefly, it could lead to a scenario in which Iran’s control over these militias is weakened,” he said. “And they may actually begin anew their attacks on U.S. troops and bases.” It’s clear Iran wants to convey an air of stability and strength. Khamenei enacted Article 131 of the Constitution, giving Vice President Mohammad Mokhber power and mandating elections within 50 days, while launching five days of mourning featuring public funeral processions in major cities that began Tuesday. “The Iranians will certainly try to present this as nothing changing,” said Michael Stephens, a senior fellow at the Foreign Policy Research Institute, a Philadelphia-based think tank. “Mokhber isn’t really well known, so they can paint any image onto him that they like, essentially.” Raisi was rivaled by many in the Iranian diaspora. On his inauguration, in August 2021, the National Council of Resistance of Iran held a protest in London. Adrian Dennis / AFP via Getty Images It’s unclear who Raisi’s successor might be, owing to the opaque nature of Iran’s political system. Hard-liners have assumed dominance of all major facets of Iranian power, and the clerical elite tightly controls who is allowed to run in its elections — disbarring moderates at recent ballots in March. Keen Iran-watchers expect Mohsen Rezaee, former head of the powerful Islamic Revolutionary Guard Corps, and former Central Bank governor Abdolnaser Hemmati to stand again as they did in 2021. Mohammad Bagher Ghalibaf, current speaker of the Iranian Parliament, “is the most prepared candidate,” according to the London-based diaspora news website IranWire. Meanwhile, “Mokhber will certainly throw his hat in,” Gregory Brew, an analyst at the New York consultancy Eurasia Group, wrote on X. A new vote “will bring some dilemmas for the regime’s top leaders: How open a field will they allow?” Rob Macaire, former British ambassador to Iran, wrote in an Atlantic Council briefing. “Would they prefer a cleric, who might be seen as a potential contender to take over from Khamenei in due course, or a technocrat?” Though thousands gathered for the funeral, the mourning period was more muted than those for other prominent Iranian figures. Ata Dadashi / Fars News Agency via AP For many Iranians, Raisi was a hated figure, owing to his role overseeing mass executions in the 1980s — which earned him the nickname the “Butcher of Tehran” — and his more recent, brutal crackdown on protesters demonstrating against Iran’s conservative clothing restrictions for women. Turnout for the March elections was just 41%, the lowest in modern history. And public mourning for Raisi has been far more muted than for other officials, according to Reuters reports from the region, with many shops staying open. Meanwhile, there were scenes of celebration among the Iranian diaspora in London and elsewhere. “Many families have placed Raisi near the top of the list of officials they wished to see brought to justice for the government’s most egregious crimes,” said Tara Sepehri Far, a researcher with Human Rights Watch. But any hopes that Raisi’s death may open the way for a less hard-line supreme leader will very likely be disappointed, Parsi at the Quincy Institute said. “The main candidates right now, as at least the ones that have publicly spoken, are not necessarily less hawkish than Raisi,” he said. “On the contrary, many of them are considered to be more so.” Rights advocates said there was a danger the Iranian government could try to exploit the president’s death as a rationale for ratcheting up repression of peaceful dissent. “As the state scrambles to maintain its grip on power, the international community must remain vigilant and responsive to any potential escalation in the crackdown on civil society in Iran,” Hadi Ghaemi of New York-based Center for Human Rights in Iran said in a statement.

Buy the Dip in Palo Alto Networks; Analysts Raise Targets 2024-05-21 14:05:00+00:00 - Key Points Palo Alto Networks stock price dipped on a surge in billings that have no bearing on company health or future growth. Guidance was narrowed to a range bracketing the consensus; guidance expects 10% to 11% revenue growth in Q4. Analysts are raising their targets and leading this market to retest its all-time high. 5 stocks we like better than Palo Alto Networks Palo Alto Networks' NASDAQ: PANW share price is down more than 5% following its FQ3 release, which provides an attractive buy-the-dip opportunity. The move is driven by an increase in billings that have no bearing on the underlying business. The increase in billings is due to customers choosing to pay for their services over time instead of upfront, a trend driven by inflation and interest rates more than anything else. The report's takeaway is that the cybersecurity industry-leading Palo Alto Networks is still growing at a double-digit pace and forecasting robust growth. Its platformization plans resonated with clients and had no visible impact on the Q3 results. The results include robust growth, wider margins, and a significant improvement in shareholder equity that will help drive the share higher this year and over the long term. Get Palo Alto Networks alerts: Sign Up The takeaway from the analyst chatter is that the move lower was overblown. The company is expected to produce above-peer growth aided by the latest deal with IBM. IBM and Palo Alto Networks have partnered to provide AI-powered security services across their networks, which should drive growth for both businesses. The analysts' response to the release is mixed. There are several price target reductions, but the reductions are to levels above consensus, and the bulk of revisions are upward. The bottom line is that consensus is rising and supports the stock price, and the high end of the analysts’ range puts the stock at a new all-time high. Palo Alto Has a Solid Quarter, Guides in Alignment with Forecasts Palo Alto Networks Today PANW Palo Alto Networks $311.66 -12.11 (-3.74%) 52-Week Range $188.30 ▼ $380.84 P/E Ratio 48.70 Price Target $319.13 Add to Watchlist Palo Alto Network had a solid quarter, with growth in its core segments contributing to top-line strength. The company reported $1.98 billion in net revenue for a gain of 15.1%. Product revenue grew by 0.7%, while the larger Subscription and Services segment grew by 19.5%. Subscriptions and Services are 80% of the net. The top-line outpaced the consensus estimates by $0.10 billion or 500 basis points and suggests another quarter of strength will come in Q4. Margin is another area of strength. The company widened the margin at the gross and operating levels to drive significant improvements in GAAP and adjusted results. The GAAP operating and net income more than doubled compared to last year, while the adjusted operating margin widened by 200 basis points to 26%, ahead of forecasts. The adjusted $1.32 is up 20% to outpace the topline advance by 500 basis points, and margin strength is expected to continue. The guidance is why the market contracted following the release. The guidance aligns with the consensus outlook and was narrowed, curbing the potential for outperformance. Regardless, the company expected a 9% to 10% increase in billings and revenue to grow by 10% to 11%, and forecasts have top and bottom-line growth accelerating next year. Palo Alto Networks Builds Value for Investors Palo Alto Networks doesn’t pay dividends or repurchase shares but doesn’t have to deliver value for shareholders. The share count is increasing and aids a rapid market cap expansion. The company's market capitalization, or the total value of its stock, doubled over the last year, and equity is also rising. The company’s balance sheet is rock solid, with cash rising, no significant debt and equity up more than double. Palo Alto Network’s stock price is down in early trading but shows clear support at a key level. Support is evident at the 30-day moving average and aligns with other buy signals that were previously fired. Assuming the market follows through on the signal today, this stock could rise to retest the recent highs soon. A move to a new high would be bullish and open the door to a sustained rally that could reach an all-time high by the end of the year. Before you consider Palo Alto Networks, 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 Palo Alto Networks wasn't on the list. While Palo Alto Networks currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Comeback Alert: Shopify’s Rally Is About to Begin 2024-05-21 13:40:00+00:00 - It’s been a tough couple of weeks for investors of Shopify Inc. NYSE: SHOP. Indeed, while the broader market has been setting record highs since the final weeks of last year, shares of the e-commerce platform have been sinking some 40% from their high in February. Key Points Shares of Shopify have been trending down since the start of the year while the rest of the market has rallied. The latest drop came from this month’s earnings report and contracting margins. However, there are several reasons to think the selloff is overdone, and a major rally is about to begin. 5 stocks we like better than Shopify It's not a great look for a stock that was still working to undo% drop. What about being in a downtrend when most, if not all, of your peers are sinking, the damage from 2021 and 2022’s jaw-dropping 90 too? Wall Street has little patience for stocks that sink while the rest of the market rallies. Get Shopify alerts: Sign Up Weak Guidance Shopify Today SHOP Shopify $57.02 -1.89 (-3.21%) 52-Week Range $45.50 ▼ $91.57 Price Target $76.86 Add to Watchlist The catalyst for the latest drop of 25% since the first week of the month was Shopify’s Q1 earnings report . Despite topping analyst expectations for both headline numbers and showing impressive year-on-year revenue growth of 24%, a 50 basis point drop in their gross margin figure completely spooked investors. It didn’t help that as a result of this, management’s forward guidance came in a little light. Shopify shares gapped down more than 15% the following day and only really looked likely to start bottoming out towards the end of last week. But was this a justified reaction? Sure, a contraction of that magnitude in gross margin is going to impact future profits, but as CEO Harley Finkelstein said, investors are “seeing the strongest version of Shopify in our history.” Upside Potential What’s interesting for those of us on the sidelines is that, despite the recent drop and longer-term downtrend that’s developing, this isn’t exactly an isolated view. In the 2 weeks since Shopify released their earnings, more than a dozen of the Wall Street heavyweights have commented bullishly on the stock’s potential. To be fair, many of those reiterating their Buy or Outperform ratings did so while trimming their price target on Shopify shares. However, even those lowered price targets are still pointing to significant upside from current prices. Take Canaccord Genuity Group , for example, which, alongside restating its Buy rating , also lowered its price target from $90 to $80. But from the $59 that Shopify shares were trading at during Monday’s session, that still suggests an upside of more than 30%. That’s n though. The price target reduction from Citigroup, which reiterated its Buy rating in the aftermath of the earnings report, was from $105 to only $95. That’s almost an upside of 60% from current levels, not to be sniffed at. Considering a Position Indeed, given that Shopify shares topped out at $90 back in February, that means that even with the refreshed price target, Citi is still expecting the company to trend back towards a high post-selloff in the coming weeks. All this suggests there's a serious bargain to be had right now that won’t be around for much longer. Shopify Inc. (SHOP) Price Chart for Tuesday, May, 21, 2024 The technical argument supports this thesis, too. Shopify’s relative strength index (RSI) reading, a measure of how overbought or oversold a stock is, is only just starting to come out of the extremely oversold territory it spent much of last week in. This is the result of the consolidating price action that started at the end of last week and which has kept shares above their post-earnings low of $57. The fact that the bears have been unable to take the stock below here means momentum is starting to swing to the bulls. The longer the stock can stay above that level, the more likely it is to start testing the upside. We saw a hint of this on Friday when Shopify shares finished at their high of the day for the first time since April. It’s worth watching for more bullish momentum this week, as the upside potential is real and could be realized sooner than you think. Before you consider Shopify, 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 Shopify wasn't on the list. While Shopify currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Protesters show up at Trump’s trial, but not the ones he wanted 2024-05-21 13:31:58+00:00 - As his criminal trial prepared to begin anew yesterday, Donald Trump briefly addressed journalists, complaining once again about the lack of protesters at the Manhattan Criminal Courthouse. The defendant, however, had an explanation that seemed to make him feel better. “Outside, it looks like it’s supposed to be Fort Knox,” the former president complained. “There are more police than I’ve ever seen anywhere — because they don’t want to have to anybody come down.” George Conway, a lawyer with considerable experience in Republican politics, noted soon after, “This is an amazing lie, even for Trump. There is virtually complete freedom of movement around that courthouse.” As a great many people have noted in recent weeks, there’s a park across from the courthouse. It’s open to the public. If the former president’s followers wanted to assemble and show their support for the defendant, they could do so, freely. The park does not resemble Fort Knox in any way. I understand why Trump is lying — it bruises his ego that the park has been largely empty for weeks — but that doesn’t make his whining any less pitiful. That said, it’s important to note that there were some protesters on hand at the courthouse yesterday, though they weren’t the ones the former president wanted to see. The New York Times reported: Donald J. Trump has been joined in recent days by entourages of supporters who watch his prosecution in the morning and then give statements backing him outside the courthouse. On Monday, the daily news conference disintegrated into chaos, when anti-Trump demonstrators and hecklers surrounded the speakers, then effectively silenced them with shouts, whistles and the clanging of a cowbell. The protester taunting the Trump surrogates with a “Bootlickers” banner stood out as especially notable. As the trial began in earnest last month, the defendant made no secret of what he wanted to see. In a message he published to his social media platform, the presumptive GOP nominee wrote, “GO OUT AND PEACEFULLY PROTEST. RALLY BEHIND MAGA. SAVE OUR COUNTRY!” The Times reported soon after that Trump was “not happy” when few followed his directive, because “he wanted a circus to accompany his trial.” Much to the Republican’s chagrin, the circumstances were familiar. Circling back to our recent coverage, as Trump’s post-defeat legal woes intensified, his rhetoric about his supporters taking to the streets grew louder. In January 2022, for example, amidst speculation about possible indictments, the Republican said at a rally that if he were to face charges, “I hope we are going to have in this country the biggest protests we have ever had.” In September 2022, Trump delivered a related ominous message, saying that if he were indicted, the United States would face “problems ... the likes of which perhaps we’ve never seen.” The vague predictions turned into directives last year. In March 2023, as the former president prepared for an indictment in New York, he turned to his social media platform, writing, “PROTEST, TAKE OUR NATION BACK!” In case that was too subtle, Trump added a few hours later, “IT’S TIME!!! ... WE JUST CAN’T ALLOW THIS ANYMORE. ... WE MUST SAVE AMERICA! PROTEST, PROTEST, PROTEST!!!” Around the same time, the Republican derided talk of “peaceful” demonstrations, while suggesting that if he were indicted in New York, it might cause “potential death [and] destruction” that “could be catastrophic for our Country.” Though it seemed as if Trump envisioned mass groups of red-capped followers taking to the streets, those calls were largely ignored. Some supporters turned out in Manhattan around the time of his first arrest, but the gatherings were, by any fair measure, underwhelming duds. After his classified documents scandal led to his second indictment, the former president again called on his followers to rally behind him — Trump wrote, “SEE YOU IN MIAMI ON TUESDAY!!!” on his social media platform — but the numbers were again small. Local law enforcement was prepared for crowds of up to 50,000 people. The actual crowd was closer to 500. Two months later, at a Trump arraignment in Washington, D.C., a “handful” of his supporters showed up to register their dissatisfaction. The good news is, some protesters finally showed up and were heard yesterday. The bad news, at least for the criminal defendant, is that they were there to heckle Trump’s sycophants as the Republican surrogates took steps to undermine the legal system. This post updates our earlier related coverage.

Lowe’s Companies Tracking to New Highs in 2024 2024-05-21 13:15:00+00:00 - Key Points Lowe's had a decent quarter, outperforming expectations and reaffirming guidance. Cash flow remains solid and allows for repurchases and dividends while improving the balance sheet. Analysts are leading this market to a new high that may be reached before the end of the year. 5 stocks we like better than Lowe's Companies Shares of Lowe’s Companies NYSE: LOW corrected to critical support levels ahead of the Q1 release, setting up a buying opportunity confirmed in its aftermath. The results are not strong but highlight the differentiation between the company and its largest competitor, The Home Depot NYSE: HD, which trails in key spring segments. Where Home Depot is favored by professional accounts, offering a slimmer selection in a more compact format, Lowe’s excels with choice across critical spring verticals like lawn and garden, outdoor entertaining, and DIY projects. That, along with its leaning into professional services, helped to sustain operations, provide better-than-expected results, and lead management to reaffirm guidance. Get Lowe's Companies alerts: Sign Up "This quarter, we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories. We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online,” said Marvin R. Ellison, Lowe's chairman, president and CEO. Lowe’s Advances On Results and Guidance Lowe's Companies Today LOW Lowe's Companies $224.86 -4.31 (-1.88%) 52-Week Range $181.85 ▼ $262.49 Dividend Yield 1.96% P/E Ratio 17.09 Price Target $252.67 Add to Watchlist Lowe’s results aren’t fantastic but are much better than feared . The company produced $21.4 billion in revenue for a decline of 4.3% that outperformed the consensus by 150 basis points. The outperformance is good but offset by the fact most analysts lowered their targets within the last 30 days; the bar was set low. The decline is driven by a 4.1% decline in comp sales compounded by lower realized prices in commoditized verticals. Big-ticket DIY items were the primary weakness, offset by professional and online shopping growth. Margin is also better than feared. The company’s gross and operating margin contracted compared to last year but less than expected. The GAAP $3.06 in diluted earnings is down YOY but a dime better than the consensus reported by Marketbeat.com, suggesting the guidance may be cautious. The company reiterated its full-year guidance despite the Q1 strength. This means guidance is cautious, or the back half will be softer than expected. However, full-year revenue and earnings guidance align with the consensus estimates and leave room for outperformance. In the long term, the company will likely return to growth by the year's end and accelerate in 2025 as lower interest rates fuel economic activity and housing markets. Lowe’s Capital Returns Are Safe and Reliable Lowe's Companies Dividend Payments Dividend Yield 1.97% Annual Dividend $4.40 Dividend Increase Track Record 52 Years Annualized 3-Year Dividend Growth 24.10% Dividend Payout Ratio 33.43% Recent Dividend Payment May. 8 See Full Details The only negative aspect of Lowe’s report is the negative shareholder equity, which is not a problem for investors. That situation will be corrected in time because it is a function of share repurchases that significantly reduce the count. The average diluted count is down 2.5% in FQ1 after falling nearly 10% in the prior year’s Q1, and repurchases are likely to continue at a robust pace this year. The company’s business is cash flow positive and allows for repurchases, dividends, reinvestment, and balance sheet improvements. The company uses debt to finance operations but reduces the load over time. The dividend is worth about 1.9%, with shares near $235, outpacing the S&P 500 average by roughly 50 basis points. The payout is a safe 33% of the earnings and growing. The company is a Dividend King with 60 years of increases to its credit. Future increases may be small but should continue annually for the foreseeable future, aided by share repurchases. Each year, the share count is reduced, freeing up cash flow to increase the dividends for the shares still floated on the market. Lowe’s Analysts Indicate New Highs Are Possible Lowe’s analysts’ have the stock pegged at Hold, verging on Moderate Buy with a rising price target. The consensus is 10% above the prerelease price point and up compared to last quarter and year. The Q1 results are not robust but suggest the sentiment will hold firm if the trend in price targets doesn’t continue. Until then, the trend suggests this stock will trade in the upper end of its target range between the consensus $252 and the high target of $289, well above the current all-time high. The price action is favorable following the release. The market shows support at the critical level and may continue to rebound. The risk is resistance near $240. The market also shows some resistance at this level and may have difficulty moving higher. If the market cannot continue higher soon, it risks moving sideways or falling within the established range until later in the year. Before you consider Lowe's Companies, 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 Lowe's Companies wasn't on the list. While Lowe's Companies currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Survey: The 130 Most Coveted Retirement Destinations in America [2024] 2024-05-21 13:00:00+00:00 - We ran a survey of 3,000 retirees and those nearing retirement, pinpointing specific locations that retirees would choose if money were no object. The results are below. Created by MarketBeat • Viewlarger version Implications of the Study Financial Preparedness: Many of the chosen destinations are higher-end, which underscores the importance of proper retirement planning early on. Many of the chosen destinations are higher-end, which underscores the importance of early on. Lifestyle Priorities: The desire for luxury, tranquility, and active living suggests that today's retirees prioritize a high quality of life, valuing areas that offer both relaxation and social engagement. This trend reflects broader societal shifts towards seeking fulfillment and well-being in the later stages of life. The desire for luxury, tranquility, and active living suggests that today's retirees prioritize a high quality of life, valuing areas that offer both relaxation and social engagement. This trend reflects broader societal shifts towards seeking fulfillment and well-being in the later stages of life. Impact on Real Estate Markets: The popularity of certain regions may influence local real estate markets, driving demand and potentially increasing property values. This trend suggests that areas known for their retiree-friendly amenities may experience economic growth and increased investment in luxury housing and community facilities. The popularity of certain regions may influence local real estate markets, driving demand and potentially increasing property values. This trend suggests that areas known for their retiree-friendly amenities may experience economic growth and increased investment in luxury housing and community facilities. Community and Social Integration: The appeal of active, socially engaging communities suggests that retirees value strong community ties and opportunities for interaction. This trend may encourage the development of more inclusive and engaging community models that cater more to the social needs of older adults. Methodology Online panel survey of 3,000 adults based on age, gender, and geography. Internal data sources are used to obtain population data sets. We used a two-step process to ensure representativeness through stratified sampling and post-stratification weighting. Respondents are carefully chosen from a geographically representative online panel of double opt-in members. This selection is further tailored to meet the precise criteria required for each unique survey. Throughout the survey, we design questions to carefully screen and authenticate respondents, guaranteeing the alignment of the survey with the ideal participants. To ensure the integrity of our data collection, we employ an array of data quality methods. Alongside conventional measures like digital fingerprinting, bot checks, geo-verification, and speeding detection, etc. each response undergoes a thorough review by a dedicated team member to ensure quality and contextual accuracy. Our commitment extends to open-ended responses, subjecting them to scrutiny for gibberish answers and plagiarism detection.

GOP’s Elise Stefanik haunted by her original position on Trump 2024-05-21 12:42:29+00:00 - Plenty of Republicans have undergone unfortunate metamorphoses since Donald Trump took over the party — Sen. Lindsey Graham, I’m looking in your direction — but few have changed more than House Republican Conference Chair Elise Stefanik. In the not-too-distant past, the New York Republican encouraged voters to see her as one of Congress’ “most bipartisan” members, and in 2017, when nearly all GOP lawmakers rallied behind Trump’s proposed tax breaks for the wealthy and big corporations, Stefanik voted against them. That didn’t last. As regular readers know, Stefanik eventually concluded that to get ahead in Republican politics, she would need to put her principles aside and start embracing partisan nonsense. By 2020, the congresswoman had adopted an entirely new persona as a hard-liner and Trump loyalist, and after the 2020 race, Stefanik joined with radicals and urged the U.S. Supreme Court to overturn election results she didn’t like. Weeks later, she also voted against certifying election results. The dramatic shift appears to have put her on the shortlist of Trump’s potential running mates — causing her to take a variety of unfortunate steps in the hopes of impressing Mar-a-Lago. The problem for Stefanik, however, is that the recent past still exists, whether she wants to acknowledge it or not. Politico reported on the GOP leader’s appearance on Fox News over the weekend. Rep. Elise Stefanik took exception to being asked about her loyalty to former President Donald Trump by a Fox News host Sunday morning. The New York Republican got into a heated exchange with “Fox News Sunday” host Shannon Bream over a question about how her support of Trump has changed over time, which comes as she’s being floated as a potential running mate for Trump. The host referenced this New York Times article from 2022, which highlighted Stefanik’s earlier Trump criticisms, before the congresswoman’s sharp turn to the right. The guest was not pleased. “It’s a disgrace you would quote the New York Times with nameless and faceless people,” Stefanik said, adding that she dismisses “false smears.” The trouble is, the Times didn’t rely on nameless and faceless people. On the contrary, the newspaper obtained a message in which Stefanik actually referred to the former president as a “whack job.” It’s also true that in 2016, Stefanik publicly rejected Trump’s election conspiracy theories. This came on the heels of Stefanik also saying publicly that she believed Trump “has been insulting to women.” These aren’t behind-the-scenes quotes from anonymous sources. Rather, this is just the GOP congresswoman’s record. We are, after all, talking about a New York Republican who was reluctant to even say Trump’s name out loud in 2016 for fear that voters might see her as a Trump ally. If Stefanik wants to argue that she was wrong about the former president, she’s free to explain why she changed her mind. But the idea that the House Republican Conference chair’s record from eight years ago is somehow off-limits is ridiculous.

Serie A champion Inter facing a nervous wait as deadline passes for loan repayment to Oaktree 2024-05-21 11:51:49+00:00 - MILAN (AP) — Just two days after celebrating its Serie A title win, Inter Milan and its fans face a nervous wait to see what will happen with the club. Club owner Suning and Inter president Steven Zhang could lose control of the Nerazzurri if they fail to repay a debt of nearly 400 million euros ($434 million) to American investment fund Oaktree. That sum stems from a loan — and interest — taken out three years ago, shortly after Inter won its last league title. The deadline for repayment was at 5 p.m. local time (1500 GMT) and there was no word of the outcome several hours after that had passed. Zhang has tried to extend the deadline for the loan repayment and come up with alternative solutions with Oaktree but without success. “I can only guarantee that the club is very solid,” Inter CEO Giuseppe Marotta said on Sunday, amid a party atmosphere at San Siro as Inter was presented with its 20th league title. “Whatever decision the Zhang family takes, it will be for the good of the club that they love.” If the deadline has not been met, Oaktree will complete the acquisition of Inter in the next few days although it is unclear whether the American fund will keep the club long term or look for a buyer. In 2018, Milan was taken over by American fund Elliott Management after previous owner Li Yonghong missed the deadline to repay part of a loan. Elliott had been expected to sell the club, with a number of parties reportedly interested, but it kept hold of it for five years before selling to RedBird Capital Partners last year, shortly after Milan won the Serie A title. ___ AP soccer: https://apnews.com/hub/Soccer

Jamie Dimon says the end to his time as JPMorgan CEO is 'not five years anymore' 2024-05-21 05:47:00+00:00 - Jamie Dimon had some new things to say Monday about his own future plans, making it clear the CEO of JPMorgan Chase (JPM) now envisions a day when he will no longer run the largest US bank. His timetable is "not five years anymore," Dimon said while speaking at his bank’s annual investor day in New York City. The comments were the latest acknowledgment from the 68-year-old Dimon that he does see an end to his CEO role in sight. In the past when asked about the topic, his default response was to say he would stay in the job another five years. Jamie Dimon, CEO of JPMorgan Chase. (Photo by Aaron Schwartz/Xinhua via Getty Images) (Xinhua News Agency via Getty Images) "I have the energy that I've always had," he added. "When I can't put the jersey on and give it the full thing I should leave, basically." The stock fell more than 4.5% on the day. His comments came during a wide-ranging question-and-answer session with analysts who quizzed him on succession, how the bank expects to deploy all of its excess capital, how pessimistic he is about the state of inflation and the potential that AI represents for his bank. Dimon says there's no debate about the importance of AI anymore. "I think it's gonna change every job, like every job," he said. His executives spent part of the day discussing what that might look like across the banks. JPMorgan chief operating officer Daniel Pinto said the bank has assigned roughly $1 billion to $1.5 billion in value to AI use cases it has identified in the field of customer service, trade and operational efficiencies and fraud management. Pinto also said the full implications of large language models may have a far wider impact to JPMorgan than just those use cases. "We have 60,000 developers, we have between operations and call centers 80,000 people so that is almost half of the company where this technology will be very very powerful." Mary Erdoes, JPMorgan’s head of asset and wealth management, framed the bank’s focus on AI another way. This year, she said, "everyone coming in here will have prompt engineering training to get them ready for the AI of the future." Dimon offered up a number of other views Monday, including on the bank’s plans to deploy any excess capital. He flatly stated that stock buybacks were not going to happen. "We’re not gonna buy back a lot of stock at these prices," then added, "We'd be more aggressive if the stock comes down." Dimon also admitted he didn’t "love the idea" of issuing another special dividend after doing so in March and while acknowledging "there may be opportunities" in M&A he said "we don’t count on that." Story continues As for what the bank plans to do with all of its capital, he said "it's going to sit there until we get to deploy it at very good returns." Click here for in-depth analysis of the latest stock market news and events moving stock prices. Read the latest financial and business news from Yahoo Finance

Palo Alto Networks falls on disappointing billings guidance 2024-05-21 05:23:00+00:00 - Palo Alto Networks (PANW) reported fiscal third quarter results that topped Wall Street estimates but a disappointing billings forecast. For Q3, the cybersecurity company reported adjusted earnings per share of $1.32 compared to an estimated $1.26. Revenue of $2.0 billion was slightly better than the expectations of $1.97 billion. For the full year, Palo Alto Networks sees billings of $10.13 billion to $10.18 billion, a narrower range than the previously forecasted $10.10 billion to $10.20 billion and short of the $10.19 billion estimate. The company sees adjusted earnings per share of $5.56 to $5.58. Full-year revenue is estimated to be $7.99 billion to $8.01 billion, an increase from the prior guidance of $7.95 billion to $8.00 billion, and better than the $7.98 billion estimate. Yahoo Finance's Julie Hyman and Jared Blikre break down Palo Alto Network's Q3 results. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Stephanie Mikulich. Video Transcript Palo Alto Networks, the cyber security company. Coming out with numbers here, a lot of attention on the billings forecast. So I'm gonna jump right to that. Here for the fiscal fourth quarter, the company says billings will be $3.43 billion to $3.848 billion the midpoint of that below the 3.47 billion that analysts had been estimating. And there was a lot of concern a lot. Um, talk about the billings. Um, that that was gonna be the key indicator. West Park capital writing ahead of the, uh, print here. The importance of Billings as a leading indicator of the business can't be overlooked. Um, and it's forecast to have grown from 2 to 32 to 4% from the third quarter. Um, if you look at the, uh, Billings here that the company just reported, um, I'm looking for that number, not seeing it off the top of my head, But revenue in the last quarter was up by 15%. Just about in line with estimates here. But it does seem that that billings number is what's responsible for the drop. Yes, and, um, just looking at some of the product. The revenue numbers that you just quoted that can be fur further divided into product revenue. That's 391 million, very small beat there. And that's only up 7/10 of percent year over year, but still a minor beat subscription and support revenue. 1.59 billion. That's up 20% year over year and also just, uh, a little bit more than the street was expecting. Um, I do have some other I don't know if you broke this out specifically, Julie, but you did the year forecast fourth quarter forecast. Story continues UH, we we do have a revenue of 2.15 to 2.17 billion. Now the estimate was 2.17 billion. So a little bit on the light side, they see billings 3.43 to 3.48 billion. Estimate was 3.47. So a little bit light there when you consider the midpoint, and then they see adjusted EPS as a dollar 40 to a dollar 42 and I don't have a comp on that one, right? But by and large, it does seem like that the forward looking numbers was what was, uh, you know, sort of some trouble for Palo Alto. Uh, versus what analysts were expecting. If you look at the shares year to date, they're up about 10%. I have them on the Wi Fi Interactive that, shall we? All right, So, year to date, we are now up 9.8%. But you see this This drop here 8.12% when we open tomorrow, Uh, that number to the right in green is going to be a little bit lower. In fact, it might be wiped out, so we might be heading down to the unchanged line for the year. Um, PW is an interesting stock. Uh, so over the last five years, up 326% you can see basically holding its rather steep trend line. So nothing out of the ordinary here. But I would expect on tomorrow's open to be testing the lower bound there, and so that's gonna be the key level. Probably in play

Nvidia CEO Says Dell Partnership Is Key in Its Push to Expand AI 2024-05-21 03:40:00+00:00 - (Bloomberg) -- Nvidia Corp. Chief Executive Officer Jensen Huang said its partnership with Dell Technologies Inc. will spread artificial intelligence to a wider range of customers, helping businesses and organizations create their own “AI factories.” Most Read from Bloomberg “We want to bring this generative AI capability to every company in the world,” he said in a Bloomberg Television interview in Las Vegas, where Dell is holding a conference. “It’s not about just delivering a box — it’s about delivering an entire infrastructure. It’s an infrastructure that’s insanely complicated.” Dell is one of the largest providers of computing infrastructure to government agencies and businesses — a market that Nvidia doesn’t directly serve. Though Nvidia’s sales have surged in the past year, it has mostly relied on a small group of customers for that growth: the data center operators known as hyperscalers. Microsoft Corp., Meta Platforms Inc., Amazon.com Inc. and Alphabet Inc. are its biggest customers, according to data compiled by Bloomberg — though Dell is close behind. Nvidia’s expansion plan hinges on getting agencies and businesses to develop their own AI capabilities, spurring demand for its products. For that, they’ll need the storage, networking and computing supplied by Dell, Huang said. That’s why it’s an essential partner, he said. The CEO is pushing Nvidia deeper into software tools, computer design and AI models, helping spread the company’s technology into everything from drug discovery to shipbuilding. Nvidia has succeeded because it prepared for the shift toward AI and has out-innovated all of its competitors, said Michael Dell, who also spoke on Bloomberg Television. Nvidia’s stock, up more than 90% this year, rose 2.8% to $951.07 in New York trading on Monday. Dell, which also has rallied about 90% this year, was down 2.3% at $146.06. Nvidia — the most valuable tech company after Microsoft and Apple Inc. — is slated to report its latest earnings on Wednesday. Analysts estimate that sales grew 243% last quarter. The company’s revenue has grown so quickly that Nvidia now makes nearly as much in a quarter as it did annually just two years ago. Dell, a top maker of personal computers, unveiled a new line of PCs on Monday that are optimized for AI tasks. Nvidia, meanwhile, is the biggest seller of so-called AI accelerators — the processors that are key to development of chatbots and other cutting-edge tools. Story continues Nvidia currently sells graphics chips for PCs, but not the central processing units, or CPUs. Huang declined to say whether the company will ultimately produce the CPU itself, a move that would put it in direct competition with Intel Corp., Advanced Micro Devices Inc. and Qualcomm Inc. Before Huang could discuss a potential move into that area, Michael Dell interrupted and said, “Come back next year.” Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Jeff Bezos Quietly Enters Residential Mortgage Business, Giving High Interest Rate Loans To Other Investors 2024-05-21 00:31:00+00:00 - Jeff Bezos Quietly Enters Residential Mortgage Business, Giving High Interest Rate Loans To Other Investors Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Jeff Bezos may be best known as the founder of Amazon.com Inc. (NASDAQ:AMZN), but the billionaire has several lesser-known business interests across multiple industries. Through his investment firm, Bezos Expeditions, Bezos has made several early-stage investments in companies that have gone on to become industry leaders. Some of the more notable ones include Airbnb Inc. (NASDAQ:ABNB), Uber Technologies Inc. (NYSE:UBER) and, more recently, Arrived. Arrived has made a name for itself by fractionalizing single-family rentals and selling shares to retail investors with a minimum investment of $100. Since launching its first property in 2021, the real estate investment platform has already funded nearly 400 properties and has over $156 million in assets under management. Bezos first invested in Arrived during the company's $37 million Seed Round in 2021, then doubled down on that investment during the Series A round in 2022. New Real Estate Debt Fund The company just expanded its offerings to include the Private Credit Fund, giving its investors access to a pool of short-term real estate loans made to other investors and homebuilders. Unlike a typical residential mortgage, these loans have terms ranging from six to 36 months and are used to finance real estate projects, such as renovations, rehabs or new home construction. The fund is targeting individual loans between $100,000 to $500,000 but will evaluate loan opportunities as high as $5 million. The fund generates cash returns by collecting interest payments on the loans and distributing them to investors. The Private Credit Fund is targeting an annualized yield of 7% to 9% with dividends paid monthly. The short-term nature of the loans also allows for more flexible liquidity options than many other debt funds. After six months, investors can request a redemption of all or a portion of their shares. View fund details >> During the announcement of the Private Credit Fund, Arrived co-founder and CEO Ryan Frazier said, "We launched this new product based on direct feedback from our investor community, and we’re confident that now is the right time to introduce it to investors. A number of debt investment opportunities have arisen that allow us to deliver strong risk-adjusted returns." Growing Interest In Private Credit The launch of Arrived’s new fund comes at a time when the private credit market is experiencing significant growth, particularly in the real estate sector. The current high interest rate environment along with uncertainties in the equity markets has made this asset class more appealing to investors seeking high yields and low correlation to the stock market. The number of opportunities has also increased as banks have tightened their lending requirements. Story continues The current 30-year fixed-rate mortgage is 7.04%, and typical bridge loans range from 9.5% to 12%. Considering long-term government bonds are paying roughly 4.5%, residential real estate-backed loans offer a compelling risk-adjusted return. Interested investors can visit the website here to view more details about the new Private Credit Fund and invest as little as $100. This article Jeff Bezos Quietly Enters Residential Mortgage Business, Giving High Interest Rate Loans To Other Investors originally appeared on Benzinga.com

Homes are overvalued in most of the US – and the problem is worse in these 5 states 2024-05-20 23:15:00+00:00 - An overwhelming majority of homes in the U.S. are overvalued as steep mortgage rates and an ongoing housing shortage push the price of real estate even higher. A new report published by Fitch Ratings found that homes were overvalued by 11.1% at the end of 2023, a trend occurring in about 90% of U.S. metro areas. But the increase in homes being sold at prices over the long-term average was noticeably higher in a handful of Southern states. Tennessee, Arkansas and South Carolina saw the sharpest rise in overvalued homes, followed by Montana and Alabama. CREDIT CARD DELINQUENCIES ARE SURGING There are a number of driving forces behind the spike in prices. READ ON THE FOX BUSINESS APP Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials. Available home supply remains down a stunning 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, according to a separate report published by Realtor.com. Higher mortgage rates over the past three years have also created a "golden handcuff" effect in the housing market. Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell, limiting supply further and leaving few options for eager would-be buyers. WHY CAN'T YOU FIND A HOME FOR SALE? Homes in the Issaquah Highlands area of Issaquah, Washington, on April 16, 2024. While an uptick in the number of home listings in certain markets is a welcome sign that suggests "early signs of normalization," Fitch said "the pace is being tempered by persistently high mortgage rates and the escalation of home prices." Economists predict that mortgage rates will remain elevated in 2024 and that they will only begin to fall once the Federal Reserve starts cutting rates. Even then, rates are unlikely to return to the lows seen during the pandemic. On top of that, investors are growing skeptical about the odds of a Fed rate hike this year given the string of hotter-than-expected inflation reports at the beginning of the year. AMERICANS EXPECT HIGH INFLATION TO STICK AROUND IN LATEST NY FED SURVEY Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan last week fell to 7.02%. While that is down from a peak of 7.79% in the fall of 2023, it remains sharply higher than the pandemic-era lows of just 3%. A sign outside a home for sale in Atlanta, Georgia on Sept. 6, 2023. Most homeowners say they are nearly twice as willing to sell their home if their mortgage rate is 5% or higher, according to a separate Zillow survey. Currently, about 80% of mortgage holders have a rate below 5%. Story continues A separate survey conducted by Redfin shows the combination of steep mortgage rates and elevated home prices has pushed the median monthly housing payment to a record $2,775 – an 11% increase from the same time last year. "Market conditions for homebuyers remain challenging with few homes listed and costs for ownership still climbing," said Ben Ayers, Nationwide senior economist. "Despite strong fundamentals for demand from demographics and a strong labor market, many first-time buyers are being shut out of the market by elevated financing rates and rising prices." Original article source: Homes are overvalued in most of the US – and the problem is worse in these 5 states

DJT: Trump Media reports $771,000 revenue for first quarter, net loss of $327.6 million 2024-05-20 22:31:00+00:00 - This photo illustration shows an image of former President Donald Trump reflected in a phone screen that is displaying the Truth Social app, in Washington, DC, on February 21, 2022. Trump Media & Technology Group, the parent company of Donald Trump's Truth Social platform, disclosed a net loss of $327.6 million in the first quarter of the year, with total revenue at $770,500, according to its earnings report, filed Monday with the Securities and Exchange Commission. The report is one of the first measures of company's true financial health, since it debuted as a public company on the Nasdaq stock exchange in March, after completing a merger with a shell company, Digital World Acquisition Corp. DJT shares were relatively flat in post-market trading following the release of the earnings report, which had not been highly publicized prior. The stock was down 5% at market close, with a share price of $48. Since going public, the DJT stock has whipsawed on what experts say is a meme stock trajectory, sometimes rising or falling dramatically, without any significant news to account for the swing. TMTG CEO Devin Nunes said that the company is exploring "a wide array of initiatives and innovations to build out the Truth Social platform including potential mergers and acquisitions activities" in a statement on Monday. "We are particularly excited to move forward with live TV streaming by developing our own content delivery network, which we believe will be a major enhancement of the platform," Nunes added. In April, the company announced that Truth Social would launch a TV streaming platform in three phases, the first for Android, iOS, and Web. The second would roll out as stand-alone apps for phones, tablets and other devices. The last phase would launch for home television. In its Q1 report, TMTG said it has signed contracts with its first data center partner, which would host the TV platform, and a hardware vendor to provide equipment. The company told the SEC last week that it would delay its quarterly filing, after the agency charged its former auditor, BF Borgers CPA, with "massive fraud" of hundreds of companies, raising red flags about the accuracy of the financial information that the firm had audited.