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Biden’s China Tariffs Are the End of an Era for Cheap Chinese Goods 2024-05-18 04:01:32+00:00 - For the first two decades of the 21st century, many consumer products on America’s store shelves got less expensive. A wave of imports from China and other emerging economies helped push down the cost of video games, T-shirts, dining tables, home appliances and more. Those imports drove some American factories out of business, and they cost more than a million workers their jobs. Discount stores and online retailers, like Walmart and Amazon, flourished selling low-cost goods made overseas. But voters rebelled. Stung by shuttered factories, cratered industries and prolonged wage stagnation, Americans in 2016 elected a president who vowed to hit back at China on trade. Four years later, they elected another one. In separate but overlapping efforts, former President Donald J. Trump and President Biden have sought to revive and protect American factories by making it more expensive to buy Chinese goods. They have taxed imports in legacy industries that were hollowed out over the last quarter-century, like clothes and appliances, and newer ones that are struggling to grow amid global competition with China, like solar panels. Mr. Biden’s decision on Tuesday to codify and escalate tariffs imposed by Mr. Trump made clear that the United States has closed out a decades-long era that embraced trade with China and prized the gains of lower-cost products over the loss of geographically concentrated manufacturing jobs. A single tariff rate embodies that closure: a 100 percent tax on Chinese electric vehicles, which start at less than $10,000 each and have surged into showrooms around the world, but have struggled to crack government barriers to the U.S. market.
Samsung trolls Apple after failed iPad Pro "crush" ad 2024-05-18 02:13:00+00:00 - Apple event announces a new line-up of products and software updates Apple event announces a new line-up of products and software updates 02:43 A cheeky new Samsung advertisement makes light of a recent Apple ad for its iPad Pro that was widely panned as insensitive and out of touch. The Apple spot featured a hydraulic press shown crushing instruments, paint buckets, an arcade game and other objects, seemingly to demonstrate that the latest iPad is at once powerful and compact. But artists and other critics blasted Apple as tone deaf in view of mounting concerns about artificial intelligence and other technologies replacing people. Apple apologized for the ad shortly after it was released, acknowledging the spot "missed the mark." Now Apple competitor Samsung, which has its own tablet, has piled on. In its ad, a woman enters a scene that appears to show the aftermath of the Apple ad. Amid splattered paint, she picks up a broken guitar and starts playing a tune while reading music off a Samsung Galaxy Tab S9 tablet. "Creativity cannot be crushed," the tagline for the Samsung spot reads. Directed by filmmaker Zen Pace, the spot from advertising agency BBH USA "celebrates a fundamental truth: creativity comes from within, and it's something that technology cannot take away from us," the ad agency said in a statement to CBS MoneyWatch. BBH USA executive creative director Estefanio Holtz said the industry chatter around Apple's "crush" ad provided his client, Samsung, with a unique opportunity to respond. "Samsung was interested in saying something, and it happened really fast," Holtz told CBS MoneyWatch. Focusing on a woman playing a broken guitar was a simple concept that Holtz said delivered a core message: "It's about humanity, and the tablet is just a tool that helps her play the notes," he said. "We went in the opposite direction to remind people, as we go through technological innovations, that we cannot leave humanity behind."
Dow closes above 40,000 for first time, notching new milestone 2024-05-17 22:54:00+00:00 - The Dow closed above 40,000 points for the first time on Friday in a quiet day on Wall Street, with investors taking cheer in strong corporate profits and signs that inflation is cooling. The Dow Jones Industrial Average, which was launched in 1896, tracks the stocks of 30 major "blue-chip" companies generally regarded as low-risk investments. The index's listed companies include Apple, Intel and Microsoft among tech players, while the financial industry is represented by companies such as American Express, Goldman Sachs and JPMorgan Chase. Health care companies in the Dow include Amgen, Johnson & Johnson, Merck and UnitedHealth Group. The Dow crossed the 30,000 point mark in November of 2020. Yet while the 128-year-old index is still widely followed, institutional investors generally focus on broader stock market barometers, such as the S&P 500 and tech-heavy Nasdaq. The Dow added 134 points, up 0.3%, to close at a record high of 40,004. The S&P 500 index edged up 0.1% and the Nasdaq ended essentially flat. All three financial markets climbed to new heights this week after the Consumer Price Index rose at an annual rate of 3.4% in April, in line with analyst forecasts. The Dow has risen nearly 20% over the last 12 months, while the S&P 500 has surged 27.5%. Soft landing ahead? Although inflation continues to run considerably hotter than the Federal Reserve's 2% target, the latest CPI data suggests that prices around the U.S. are moderating after rising much faster than expected earlier this year. That is rekindling hopes the Federal Reserve could soon act to cut its benchmark interest rate, which would give a further lift to financial markets as well as lower borrowing costs for consumers and businesses. With the U.S. economy seemingly on track for a soft landing, many traders expect the U.S. central bank to trim the federal funds rate — now at its highest level in more than two decades — twice this year. Yet analysts said the Fed will wait for more evidence that inflation is retreating before easing policy. "Of course, the Fed will not wait for inflation to retreat to 2% to start cutting rates," Bob Schwartz, senior economist with Oxford Economics, said in a note to investors. "By then it would probably be too late to prevent the economy from descending into a recession. But it is taking longer than usual for the Fed's rate hikes in 2022 and 2023 to bring inflation under control, and it will take several months of benign inflation reports to instill confidence that the trend towards 2% is firmly in place." While major markets have continued levitating, so-called meme stocks are fizzling after soaring earlier in the week. Shares of GameStop, a money-losing video game retailer that has been embraced by retail investors, fell nearly 20% on Friday after the company said it expects to report a loss of $27 million to $37 million for the three months through May 4. It also said it could sell up to 45 million shares of stock in order to raise cash. The stock had topped $64 on Tuesday after Keith Gill, a popular online trader known on social media as "Roaring Kitty," resurfaced on X (formerly Twitter) after a three-year hiatus. —The Associated Press contributed to this report.
Chevrolet Bolt owners win $150 million settlement after electric vehicles caught fire 2024-05-17 18:45:00+00:00 - What to consider when making the switch to an electric vehicle What to consider when making the switch to an electric vehicle 05:46 General Motors and LG are establishing a $150 million fund to compensate Chevrolet Bolt owners after a faulty battery caused some of the electric vehicles to burst into flames. The $150 million is part of a legal settlement between GM and Bolt owners who filed a class-action suit against the Michigan automaker in 2020 for allegedly selling them a vehicle with a defective battery. Bolt owners who installed special software that GM offered to fix the battery issue can receive $1,400 from the fund, according to court documents filed late Thursday in Michigan. Bolt owners who sold their car before that date, or drivers who leased the Bolt before then, are eligible for a $700 payment, according to the documents. "GM, LG Energy Solution and LG Electronics have agreed to a settlement with plaintiffs to resolve class-action litigation related to the Bolt EV battery recall," GM said in a statement on Friday. "As a result, Bolt owners who received a battery replacement or who have installed the latest advanced diagnostic software may qualify for compensation." GM partnered with subsidiaries of South Korea-based electronics company LG to create the batteries used in the Bolt, which debuted in 2015. In the following years, drivers noticed their cars would spontaneously catch fire, leading to owners to file complaints about the problel with GM and the National Highway Traffic Safety Administration. GM traced the fires to a manufacturing defect in the battery modules, which the automaker said caused a short in the battery cell. Some of the incidents took place in Bolts with battery cells made in South Korea, while other fires came from cells made at a LG plant in Michigan. In 2021, GM recalled all Bolts worldwide. GM sold just under 25,000 Bolts in the U.S. before telling dealers to stop selling them. The company ceased production of the vehicle in December of 2023, a major financial and reputational blow for GM as automakers raced to enter the electric vehicle market. The automaker has spent $1.8 billion recalling the Bolt because of its battery issues. The Bolt was one of GM's first all-electric vehicles, second only to the Spark EV, which debuted in June 2013. Since then, GM has rolled out an electric Hummer, Chevrolet Silverado and Cadillac Lyriq. GM has said it plans to stop manufacturing gas-powered cars by 2035 and will spend $35 billion to roll out more than 30 new EVs globally by 2025, including about 20 in North America. By the end of the decade, GM expects to generate $90 billion in additional annual revenue from EVs.
Take-Two Interactive Software Offers 2nd Chance for Investors 2024-05-17 13:45:00+00:00 - Key Points Take-Two Interactive had a solid quarter but showed weakness in bookings and issued light guidance. The release of Grand Theft Auto 6 is impacting the outlook for 2025; results will pick up in 2026. Analysts are trimming targets, but the consensus is that this stock is still undervalued. Take-Two Interactive Software (NASDAQ: TTWO) turned a corner in 2022, which resulted in a 60% upswing in the stock price. The growth outlook is intact, but the Q4 results and 2025 guidance have reset the market. The problem is that the timeline for the release of Grand Theft Auto VI, the company’s flagship offering, was pushed out to early F2026 and significantly impacted the outlook for this year. Take-Two isn’t in trouble; it is in excellent shape with a solid pipeline of new releases slated for the coming year. The problem is that investors hoped the rebound would accelerate this year, but it won’t, leaving the market in danger of extending the correction that began in February after the Q3 release. The takeaway for investors is that this is a 2nd chance to get into the rally that started two years ago, a rally that still has years to run. Get stock market alerts: Sign Up Take-Two Has Solid Q4: Guides Weak for 2025 Take-Two Interactive Software Today TTWO Take-Two Interactive Software $147.84 +1.76 (+1.20%) 52-Week Range $130.34 ▼ $171.59 Price Target $176.32 Add to Watchlist Take-Two had a decent quarter in Q4, with strengths in its key platforms that sustained the business despite the tough comp compared to last year. The $1.4 billion in net revenue is down 3.4% but edged past the consensus on strength in NBA 2K24, Zynga, and Grand Theft Auto. PC and Other Platforms were the weakest segment with a decline of 20%, 25% for bookings, offset by a much smaller decline in the others. Mobile was strongest, with a decline of -0.4% and a 0.3% increase in net bookings. Console sales fell by 2.5%, with bookings down 1.4%. Booking was the weak link in the chain. Bookings are an indication of future revenue growth and fell by 3%. Within that, bookings from recurring customers fell by 2% and was 79% of the net. Booking weakness was seen again in the guidance for F2025 due to the delayed launch of GTQ6. Guidance is good because revenue and bookings are expected to grow in 2025. The company also forecast revenue strength compared to the consensus reported by Marketbeat, but bookings are well below estimates. The company targets $5.6 billion in net bookings, which is $1.4 billion or 20% below the consensus. The good news is that bookings should accelerate as soon as Q1 F2026; however, that is still a long way off. Until then, earnings are good. The company’s GAAP loss widened due to significant non-cash charges and impairments; the adjusted $0.28 outpaced consensus by $0.20. Analysts Trim Targets: Market Enters Wait-and-See Mode The analyst's response to the Q4 results is favorable, but the group is trimming targets. The consensus Moderate Buy is unchanged, but the uptrend in the consensus price target is over, and the upside potential is capped. The first half-dozen revisions include Roth MKM, Jeffries, and Goldman Sachs updates. They all lowered their price targets to $175 to $180 to align with the broad market consensus. The consensus implies about 20% of upside but is below a critical resistance point that will likely cap gains until there is more clarity on GTA6 and bookings growth. Take-Two Interactive's share price edged lower following the release and may move lower in the near-term. However, analysts and institutions support the market well, so the downside is limited. The low end of the analysts' expected range is unchanged and above the current price action at $147. In this scenario, the market for Take-Two is undervalued and setting up for a rebound that could begin later this year. The targets for critical support are near $140 and $130. A move below $130 could take this market down to the $100 level, but that is not expected for this tech stock. Before you make your next trade, 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. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Deere & Company’s Q2 Report: Strong Revenue, Cautious Outlook 2024-05-17 13:30:00+00:00 - Key Points Deere & Company's Q2 earnings beat analysts' expectations, driven by strong revenue but offset by a lowered full-year profit forecast. The agricultural sector faces multiple headwinds, including lower commodity prices, rising input costs, and declining farm income, creating a cautious outlook for the industry. Deere & Company remains committed to its long-term growth strategy, focusing on technology, innovation, sustainability, and diversification. 5 stocks we like better than Deere & Company Deere & Company NYSE: DE is a titan of the agricultural and construction equipment sector. Deere & Company’s financial reports often serve as a barometer for the health of these crucial market sectors. Deere & Company’s earnings report for the second quarter of 2024 was released, providing investors with insight into the company’s financial health. While showing strong revenue and earnings per share, the report also revealed a cautious outlook on the agricultural sector. The lowered guidance prompted investors to closely analyze the company’s performance and the implications for their portfolios. Get Deere & Company alerts: Sign Up Q2’s Earnings Harvest Deere & Company Today DE Deere & Company $397.02 +2.59 (+0.66%) 52-Week Range $345.55 ▼ $450.00 Dividend Yield 1.48% P/E Ratio 11.95 Price Target $435.78 Add to Watchlist gave investors a detailed view of the company's recent financial performance. While the company exceeded Deere & Company’s analyst community’s expectations on revenue and earnings per share, it also lowered its full-year profit forecast for the second time. This adjustment reflects the company's cautious outlook on the agricultural sector, which is currently facing challenges. The company reported revenue of $15.24 billion for the quarter, exceeding analyst estimates of $13.3 billion. Earnings per share came in at $8.53, topping analysts predictions of $7.86. However, Deere's net income fell by 17% compared to the same period last year, demonstrating the company's struggle to maintain profitability in the challenging agricultural industry. A closer examination of Deere's segment performance reveals the source of this mixed bag of results. The company's Production and Precision Agriculture segment, which encompasses large and mid-size tractors, combines, and other equipment, saw revenue decline by 16% to $6.58 billion. This segment's performance reflects the softening demand from farmers struggling with lower commodity prices and higher input costs. Deere's Small Agriculture and Turf segment, which includes mid-size and small tractors and other equipment, experienced a more significant decline, with revenue falling by 23% to $3.19 billion. This segment's performance is particularly noteworthy, as it signals a broader downturn in agricultural demand. While not immune to broader economic trends, the Construction and Forestry segment fared relatively better, with a 7% revenue decline to $3.84 billion. This performance suggests that the construction industry remains relatively stable compared to the agricultural sector. Deere's Financial Services segment, which provides financing solutions to farmers and construction companies, reported a net income of $162 million, a significant increase compared to the same period last year. This segment benefits from higher interest rates and increased portfolio balances but is also facing pressure from higher credit losses and less favorable financing spreads. Analyst Sentiment on Deere Analyst sentiment on Deere remains positive, with a consensus rating of Moderate Buy. The average price target for Deere's stock is $436.93, suggesting a potential upside from current levels. However, analysts are closely monitoring the agricultural sector's challenges and subsequent impact on Deere's business. Analysts are concerned about the near-term outlook for the agricultural sector, citing the impact of lower commodity prices, higher input costs, and declining farm income. They are also watching for signs of improvement in the global economic environment, which could provide some relief to the agricultural sector. Analysts remain optimistic about Deere's long-term growth potential despite the near-term headwinds. They highlight the company's investments in technology, such as precision agriculture, and its commitment to sustainability initiatives as key drivers of future growth. Deere's Long-Term Strategy Deere & Company MarketRank™ Stock Analysis Overall MarketRank™ 3.84 out of 5 Analyst Rating Moderate Buy Upside/Downside 9.8% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -4.75 News Sentiment 0.42 Insider Trading N/A Projected Earnings Growth -1.73% See Full Details Despite the near-term challenges facing the agricultural sector, Deere & Company remains committed to its long-term growth strategy. The company is actively investing in technology and innovation to improve farm efficiency, profitability, and sustainability. Deere's investments in precision agriculture technology, such as automation, data analytics, and machine learning, are transforming farming practices. These technologies help farmers to optimize crop yields, reduce input costs, and minimize environmental impact. Deere is also committed to its sustainability initiatives to reduce its carbon footprint and promote sustainable farming practices. The company is developing and introducing equipment that uses alternative fuels and reduces greenhouse gas emissions, aligning with global efforts to mitigate climate change. In addition to its core agricultural business, Deere is expanding into new markets and product lines. The company is actively exploring opportunities in renewable energy and infrastructure development, seeking to leverage its technological expertise and global reach. Challenges and Risks Facing Deere Despite Deere & Company's commitment to innovation and diversification, it faces several challenges and risks that could impact its future performance. These challenges are often intertwined, reflecting the complex dynamics of the agricultural and construction industries. The agricultural sector is inherently cyclical, subject to fluctuations in commodity prices, weather patterns, and government policies. These factors can significantly impact farm income and demand for Deere's equipment. Lower commodity prices, driven by global supply chain disruptions, geopolitical instability, and increased production, can reduce farmer profitability, decreasing demand for agricultural equipment. Higher input costs, including fertilizer, fuel, and labor, are another significant challenge facing the agricultural sector. These rising costs squeeze farmer’s profit margins, making investing in new equipment more difficult. Inflationary pressures further exacerbate this issue as the cost of equipment and other inputs rises. The rapid pace of technological advancement presents opportunities and challenges for Deere. New technologies, such as autonomous vehicles, drones, and data analytics platforms, are emerging and could disrupt the traditional agricultural equipment market. Deere must adapt to these changes, investing in research and development to maintain its technological leadership. Deere & Company's commitment to innovation, diversification, and sustainability positions the company for long-term success. However, investors should be aware of the company's challenges and risks, particularly in the agricultural sector. Investors should carefully assess Deere's valuation, risk profile, and potential for future growth before making an investment decision. They should also monitor the company's financial performance, response to industry challenges, and progress in advancing its long-term growth strategy. Before you consider Deere & Company, 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 Deere & Company wasn't on the list. While Deere & Company currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Analysts Still Want Double-Digit Upside Out of Applied Materials 2024-05-17 13:12:00+00:00 - Key Points Applied Materials stock has changed slightly after reporting its first quarter of 2024 earnings results. Analysts still see the company's double-digit upside and EPS growth as its primary customers are taking over the industry. Price action gave Applied Materials all the hype, yet its valuation shows a steep discount to peers. 5 stocks we like better than Applied Materials Investors may have noticed a recent hype surrounding technology stocks, with a particular niche calling for additional attention. Those in the semiconductor industry responsible for making all of artificial intelligence’s promises today have seen preferential treatment from the markets and Wall Street analysts. However, not all stocks in this space are created equal. Shares of Applied Materials Inc. NASDAQ: AMAT have changed a little this week, as investors are likely looking to take a breather after the stock rallied by as much as 37.3% in the past six months. While some investors may be squirming to take some profits off the table, especially after disappointing Federal Reserve (the Fed) timetables regarding interest rate cuts, that is far from what portfolios may need today. Get Applied Materials alerts: Sign Up A better medicine can be found in picking some of these stocks that have yet to see the valuation expansions others experienced. Nvidia Co. NASDAQ: NVDA and Advanced Micro Devices Inc. NASDAQ: AMD saw their market capitalizations more than double in the past year. Yet, Applied Materials’ valuations show that it could have a 25% leg to push higher. The Economy Needs Applied Materials to Stay Applied Materials Today AMAT Applied Materials $212.08 -1.95 (-0.91%) 52-Week Range $120.18 ▼ $219.36 Dividend Yield 0.75% P/E Ratio 24.38 Price Target $215.64 Add to Watchlist As the U.S. government pushes its plan to onshore semiconductor manufacturing , decreasing the world’s exposure to Asian regions, wherereigns king as one of the world’s leading provider of chips, Applied Materials could see more significant growth than is expected. Taiwan Semiconductor recently received a $12 billion grant from the U.S., which will help the company build out its necessary factories to diversify the semiconductor supply chain. The supply chain was severely disrupted during COVID-19, causing shortages in every consumer electronic product. Others are hopping on this bandwagon, with Intel Co. NASDAQ: INTC and even Samsung Electronics Co. OTCMKTS: SSNLF receiving a few billion themselves to start building manufacturing infrastructure in the U.S. The keyword here is manufacturing, as in the manufacturing sector itself. Analysts at The Goldman Sachs Group Inc. expect to see a breakout in the industry throughout 2024, a thesis investors can find in the bank’s 2024 macro outlook report. Because the Fed is looking to cut interest rates this year, leading to a weaker dollar, American goods could become more attractive in the eyes of foreign buyers. February’s ISM manufacturing PMI index posted a 6.4% bump in export orders; it looks like Goldman’s thesis is correct. Bringing a fundamental reason to stay within manufacturing stocks and an even more significant global trend in artificial intelligence, it is time for investors to find out why Applied Materials is a top candidate on this list. Applied Materials, Inc. (AMAT) Price Chart for Sunday, May, 19, 2024 Don’t be Fooled by The Quarter Flat revenue, that’s what the company’s press release says about the first quarter of 2024. Though an 11% boost in earnings per share (EPS) shows the business’s operations are becoming more efficient – and profitable – despite seeing no material increase in the top-line. This is because of the easing supply chains in the semiconductor space, helping improve pricing power for companies like Taiwan Semiconductor Manufacturing and Samsung, which are top customers for Applied Materials. If the world wants more advancements in AI. That’s good for Taiwan Semiconductor’s business, which is also suitable for Applied Materials. Moving past this obvious economic fact, here’s where investors can get some extra juice to squeeze. Analysts at Cantor Fitzgerald saw it fit to slap a $260 price target on Applied Materials, calling for up to 21.5% upside from where the stock trades today. Following this trend, UBS analysts pushed for $235 a share, or roughly 10% above today’s price. Compared to Advanced Micro Devices, which trades at 72% of its 52-week high, Nvidia stock reached 97% of its 52-week high, showing investors how winners will always attract bullish traders to bid them higher. As an extension to Nvidia’s price action, Applied Materials is flirting with making new all-time highs, but wait, there’s more. Compared to the computer sector’s 265.2x P/E multiple, Applied Materials stock trades at 25.2x to bring a discount of 90% to the industry. The so-called 'smart money' took notice, which could be one reason behind the $128.4 billion of institutional inflows into Applied Materials stock over the past 12 months. These institutions could be looking to close the stock's massive valuation gaps. Before you consider Applied Materials, 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 Applied Materials wasn't on the list. While Applied Materials currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Baidu Stock Earnings Prove Ray Dalio Right about China? 2024-05-17 12:59:00+00:00 - Key Points Baidu is the latest company to show investors why Chinese stocks may be back in play today. It reports growth rates above the supposed lagging economy overall. Recovering inflation rates due to government stimulus has drawn investors like Ray Dalio to invest in China, and analysts agree. Double-digit upside and EPS growth, with falling short interest, are only some of the reasons to keep watching Baidu stock. 5 stocks we like better than Alphabet The year of the Chinese stock market could be approaching after the 2020-2023 timeframe offered nothing but headaches and frustration for shareholders. As the underlying economy shows signs of a potential recovery, investors could soon find out why stocks like Baidu Inc. NASDAQ: BIDU could become buy targets for mega investors already finding their way into China. Wall Street legends like Ray Dalio have tagged along with the potential uprise in Chinese stocks, especially as the CSI 300 (China’s S&P 500) hit a near-decade low level. As news follows the stock price, the media found all sorts of justifications for why the Chinese index went that low; however, that all changes today. Get Alphabet alerts: Sign Up Shares of Baidu are little changed this week, even after the company’s first quarter 2024 earnings results were announced. However, other peers like Alibaba Group NYSE: BABA are rallying by nearly 8% in a single day this week, all celebrating a common trend in the Chinese economy. The Year of the Profit Dragon? As dividend yields on the CSI 300 index surpassed the Chinese 10-year yield, Ray Dalio found no reason to stay outside of the iShares MSCI China ETF NASDAQ: MCHI, and Michael Burry (yes, the guy who called the 2008 financial crisis), saw fit to make Alibaba and JD.com Inc. NASDAQ: JD one of his biggest portfolio positions today. But first, investors must understand why Chinese stocks declined this much. A measure of how well an economy is doing can be found through inflation. Too calm a reading means little – if any - business and consumer activity, which is – or was at least – the case in China. After reporting flat to negative inflation during the third and fourth quarters of 2023, Chinese inflation has now read positive for three consecutive months to show the potential comeback in part of businesses and consumers. The Caixin Composite PMI index has been in expansion mode since November 2023, dragging stocks like Baidu along with it. Fundamentally, the story is that you should check out Baidu stock to see brighter days ahead. However, one more critical trend is coming that could push the stock even more. Because Baidu is China’s version of Alphabet Inc. NASDAQ: GOOGL, it handles vast amounts of data from consumers and businesses. Access to endless data could cross many checks off those lists looking for investment into artificial intelligence, and this technology stock starts to fit the description even more. Stellar First Quarter Baidu Today BIDU Baidu $110.58 -2.01 (-1.79%) 52-Week Range $94.25 ▼ $156.98 P/E Ratio 14.80 Price Target $162.00 Add to Watchlist Knowing that the economy is one of the many factors pushing Baidu’s business forward, here’s a deeper look into how the company is affected today. According to Baidu’s press release , core revenue rose by 4% to reach $3.3 billion; if China’s economy is this supposedly stagnant, Baidu shouldn’t have pushed these numbers. Because commerce is coming back into the game, as the Chinese government keeps injecting liquidity into the market in an attempt to rescue the economy, some of this money is ending up in the hands of advertising budgets. Investors can see this at play by noticing Baidu’s online marketing revenue rise by 3% over the year, reaching $2.4 billion. In addition, Baidu’s artificial intelligence cloud business became a focus for management this quarter. Some reports indicate that Baidu’s ERNIE generative A.I. model is tied to Chinese military research, one of the many uses of artificial intelligence’s computing power. Wall Street’s Take Analysts at Citigroup Inc. see Baidu stock going as high as $176 a share. To prove these valuations right, the stock would need to rally by as much as 56.3% from where it trades today, giving investors another reason to start considering this stock for a potential watchlist. Here is where investors can get an added bonus on top of this double-digit upside. Compared to the computer & data industry, Baidu’s 14.3x P/E ratio offers a discount of 77% to the sector’s 62.2x average valuation today. Even after rallying 18.8% in the past month, Baidu stock still trades at only 72% of its 52-week high. This shows investors how much gap this company could attempt to fill in delivering returns. Not even those who are bearish in China are willing to risk more of their capital against stocks like Baidu. Over the past month, Baidu’s short interest fell by 7.4%, opening a more favorable playing field for bulls to continue the stock’s outperformance. Before you consider Alphabet, 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 Alphabet wasn't on the list. While Alphabet currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Reasons Nvidia is on The Verge of a 4 Digit Stock Price 2024-05-17 12:39:00+00:00 - Key Points Shares of Nvidia have been rallying hard this year, continuing last year's trend. The bullish calls from analysts keep coming in, with fresh price targets extending well beyond $1,000. Technically, the stock still has much room to run before it approaches overbought levels. 5 stocks we like better than NVIDIA It's been a solid year for shares of Nvidia Corporation NASDAQ: NVDA. Having had a stellar 2023, they've already tacked on an impressive 100% value since January. Helped by a perfect combination of falling inflation, a market-wide risk-on sentiment and a booming AI industry, they've become one of the hottest stocks to talk about and own. With a high in yesterday's session of just under $960, expectations are growing for the tech titan's stock to hit 4 digits soon. This can be a big milestone in a stock's journey, and those that make it there are few and far between. Investors should be getting excited, though, and here are 3 reasons we think it's on the verge of happening. Get NVIDIA alerts: Sign Up Strong Fundamental Momentum NVIDIA Today NVDA NVIDIA $924.79 -18.80 (-1.99%) 52-Week Range $298.06 ▼ $974.00 Dividend Yield 0.02% P/E Ratio 77.45 Price Target $966.55 Add to Watchlist First up are the fundamental drivers behind the company's growth and strong momentum. These include the strength of Nvidia's data center business and its bullish exposure to the AI industry. Just yesterday, the team at UBS Group included Nvidia near the top of a list of stocks they see as extremely well-positioned to benefit from the artificial intelligence boom in the coming years. With global AI revenue set to hit $400 billion by 2027, first-mover advantage counts more than ever, and Nvidia has that. It's one of the reasons the company has a current quarter-on-quarter revenue growth rate of more than 20%, which becomes nearly 400% yearly. And the most amazing thing is that Nvidia's valuation, as seen through its price-to-earnings (PE) ratio, isn't even that extended right now. At just 79, it's well below the 150 it spent much of last year at. Bullish Analyst Upgrades The other factor to consider is all the analysts coming out with red hot Buy or Outperform ratings right now, even after all the recent gains. This past week alone, the teams at Wedbush, Wells Fargo and Jefferies Financial Group all reiterated their bullish ratings on the stock, while giving it a price target of $1,000 or above. Jefferies, for example, gave Nvidia a boosted price target of $1,200, which was more than a 50% jump from where they had it previously. That's pointing to an immediate upside of 25%, which is not bad for a $2.3 trillion company. This isn't a new trend that simply echoes the rating updates and price target increases of recent weeks and months. Indeed, every price target update since the last week of March has been at $1,000 or more. This kind of bullish outlook should be reassuring for investors on the sidelines who might think that they missed the boat by not getting involved last year. In many ways, you could argue that Nvidia's growth story is still in its infancy. Impressive Technicals The final reason to think that Nvidia will soon be trading for more than $1,000 is that the stock's relative strength index (RSI) is nowhere near overbought levels. This is remarkable after a 750% rally in the past 18 months. It helps that the broader market, in general, took a bit of a breather last month, as this removed any concerns about Nvidia's stock becoming frothy. NVIDIA Co. (NVDA) Price Chart for Sunday, May, 19, 2024 But even with it having gained 25% since the back half of April, its RSI is still only around 60. This confirms the momentum is bullish while making it clear the stock still has much room to run before anyone could call it overbought. With less than a 10% jump needed to take it above $1,000 for the first time, you'd have to be exceedingly bearish to think we won't see this milestone being hit in the short-term and that the stock won't continue to rally north. Before you consider NVIDIA, 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 NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Bargain Alert: Lululemon Shares Could Be About To Hit Rally Mode 2024-05-17 12:35:00+00:00 - Key Points Lululemon shares have struggled to consolidate after last quarter’s dismal earnings report. However, several analysts have been reiterating their Buy rating with aggressive price targets. With an attractive valuation and an RSI reading that suggests the stock is heavily oversold, things could be about to get interesting. 5 stocks we like better than Lululemon Athletica It’s been a tough year for shares of Lululemon Athletica Inc. NASDAQ: LULU; there’s no getting around it. While the rest of the equity market has been enjoying a broad and diverse rally back towards highs, the athleisure company has been struggling to gain any momentum since its bombshell earnings last quarter. As a sign of just how quickly the stock can rally when it wants to, we saw Lululemon shares gain more than 40% in the final 2 months of last year as a risk-on sentiment swept across the market. But perhaps a muted start in January, where the divergence from the rest of the market really started, was a sign of what was coming. Get Lululemon Athletica alerts: Sign Up Recent Decline for Lululemon Lululemon Athletica Today LULU Lululemon Athletica $334.95 -3.33 (-0.98%) 52-Week Range $326.93 ▼ $516.39 P/E Ratio 27.43 Price Target $474.79 Add to Watchlist Late March saw the company report its Q4 earnings , but a beat on both headline numbers was nowhere near enough to make up for the dire profit warnings from management. The fact that it was a similar situation for Nike Inc NYSE: NKE , arguably their closest competitor, didn’t help when it came to the damage to the stock, and an immediate 20% drop has turned into a 30% since then. You know you’ve messed up when some analysts, like Randal Konik from Jefferies, ask if “Lululemon headed for the same fate as Under Armour?”. But that’s where we are today as we head into the back half of May, with the benchmark S&P 500 index notching a record high in Thursday’s session, making things worse for Lululemon investors. Getting Involved in Lululemon But there could be an interesting opening opportunity for those on the sidelines who have avoided getting caught in this year’s downturn. Having sunk almost 35% since its last December peak, and with the stock back trading at 2020 levels, the question has to be asked if the Lululemon selloff has become overdone. There are several reasons to think so. Consider, for starters, the stock’s relative strength index (RSI). Based on recent trading history, the RSI is a popular tool for getting a quick sense of how overbought or oversold a stock. With it currently reading 34, having been down below 20 last month, the stock is clearly verging on extremely oversold levels. Several analysts have also been screaming that the stock is still a solid Buy, with a huge upside potential that’s only getting bigger as the downturn continues. For example, Oppenheimer reiterated their Outperform rating on Lululemon shares last month and said it was still their top pick in the athleisure space. This was based on what they called the “underlying growth and expansion potential for the brand” and an increasingly attractive valuation, largely thanks to the stock’s drop. With a price-to-earnings (PE) ratio of just 27 right now, this is the most attractively valued, on that key metric at least, Lululemon has been since 2017. It’s a far cry from the PE of 80 the stock had in 2020 or even 50 towards the end of last year. Last month also saw an Outperform rating on the part of Robert Baird, who while trimming their price target still had it at an attractive $505. From the $338 that shares closed at on Thursday, that’s pointing to an upside of some 50% from current levels. Final Considerations Beyond these two updates last month, the team at BTIG Research took a similar bullish stance last week. They initiated their coverage of Lululemon with a Buy rating and a $425 price target. While lower than Baird’s, this suggests an upside of 25%. Investors should expect shares to hold their ground around the $330 mark, where the bears ran out of steam last month. If Lululemon can consolidate there ahead of its Q2 earnings at the end of the month, things could get interesting quickly. Before you consider Lululemon Athletica, 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 Lululemon Athletica wasn't on the list. While Lululemon Athletica currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Bill Gates Sells Microsoft, Berkshire Hathaway Shares In Q1: Are These Still Top Positions? 2024-05-17 04:20:00+00:00 - Bill Gates Sells Microsoft, Berkshire Hathaway Shares In Q1: Are These Still Top Positions? Billionaire Bill Gates is best known as the co-founder and former CEO of Microsoft Corp. (NASDAQ:MSFT). He is also known for his philanthropic efforts with the Bill and Melinda Gates Foundation Trust. Those two items collided in the first quarter with the sale of Microsoft stock. Here's what to know. What Happened: Gates stepped down as the CEO of Microsoft in 2000 and later left the board of directors in 2020. The co-founder of the software giant remains a large shareholder in the company through his own holdings and the stock holdings of the Bill and Melinda Gates Foundation Trust. A new 13F filing for the Bill and Melinda Gates Foundation Trust reveals two key changes made in the first quarter. The trust sold 1.7 million Microsoft shares and 2.6 million shares of Berkshire Hathaway Inc (NYSE:BRK). The trades lowered the weighting of these two stocks by 4.5% and 13.1%, respectively. After the sales, the top holdings of the trust are, with values from the end of the first quarter: Microsoft: 33.5% of the portfolio, 36,499,597 shares, $15.4 billion Waste Management, Inc. (NYSE:WM): 16.4% of the portfolio, 35,234,344 shares, $7.5 billion Berkshire Hathaway: 15.9% of the portfolio, 17,303,097 shares, $7.3 billion With the latest trades, Berkshire Hathaway moved from the second-place spot down to third place. Related Link: Microsoft Q3 Earnings: Revenue Beat, EPS Beat, ‘New Era Of AI Transformation’ And More Why It's Important: Gates owns Microsoft shares in his Cascade Investments vehicle and his personal holdings. The former CEO once owned 45% of the company when it went public in 1986. The ownership stake has been reduced over the years by Gates and the foundation trust, which represents his philanthropic efforts. Berkshire Hathaway, led by Gates' friend Warren Buffett, has been a top investment of Gates and also sees shares donated by Buffett to the trust. The latest moves in the first quarter come as it was recently announced that Gates' ex-wife Melinda French Gates is stepping down as the co-chair of the trust. French Gates will be leaving for her own philanthropic efforts with an added $12.5 billion commitment. The former Microsoft CEO is listed as the fifth richest person on the Bloomberg Billionaires Index with a wealth of $154 billion, up $13.6 billion year-to-date. Gates' sale of Microsoft stock comes as shares have soared in the last year thanks to new artificial intelligence initiatives and growth. Microsoft shares are up 37% over the last year. Read Next: How Bill Gates Almost Killed The Xbox: ‘This Is An Insult To Everything I’ve Done’ Story continues Photo: Lev Radin 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 Bill Gates Sells Microsoft, Berkshire Hathaway Shares In Q1: Are These Still Top Positions? originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
'$2 Million Is Nothing' Suze Orman Warns Don't Retire If You Don't Have At Least $5 Million Or $10 Million Saved 2024-05-17 04:00:00+00:00 - '$2 Million Is Nothing' Suze Orman Warns Don't Retire If You Don't Have At Least $5 Million Or $10 Million Saved On the "Afford Anything" podcast, Suze Orman delivered a pointed critique on the notion of retiring early with a $2 million portfolio. She was direct in her advice, emphasizing the insufficiency of such an amount for early retirement. "Two million dollars is nothing," Orman declared, "It’s nothing. It’s pennies in today’s world, to tell you the truth." Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. Orman expanded on the potential financial dangers that could deplete such savings quickly. "If you have $20 [million], $40 [million], $50 [million] or $100 million, be like me, okay. If you have that kind of money … and you want to retire, fine," she explained, contrasting this with the risks faced by those with less substantial sums. "But if you only have a few hundred thousand dollars, or a million, or $2 million, I’m here to tell you...if a catastrophe happens...what are you going to do? You are going to burn up alive." Addressing the common retirement strategy of withdrawing 4% annually, Orman was skeptical: "I think that in the long run, $80,000, especially after taxes and as you get older, is not going to be enough. You may think it’s going to be enough, but it’s just not," she stated firmly. Her advice underscores the importance of ample financial cushioning, particularly if unexpected costs arise, such as health care or family support needs. "Think about it logically," Orman urged, highlighting potential expenses that could easily top hundreds of thousands annually. Trending: Reddit user reveals his retirement account’s “hourly wage” — how much does your money really make per hour? When asked if $3 million was enough Orman firmly stated it was not. "If you don’t have at least $5 million or $10 million, don’t retire early," Suze asserted. Orman’s assertion that individuals need "at least $5 million to retire early" stirred a mix of reactions, with some viewing it as excessively cautious while others validate her perspective. Financial Samurai supports Orman’s viewpoint, highlighting that with today’s low interest rates, a larger capital is necessary to generate sufficient risk-adjusted income for early retirement. This is particularly relevant considering the need to depend more on investment income due to the diminishing reliability of traditional retirement income sources like Social Security and pensions. Story continues While Orman faced significant backlash for her statements, with critics arguing that her figures are unattainable for most, the underlying principle she advocates is prudence. This idea resonates with a segment of the financial community that sees the wisdom in ensuring a substantial financial buffer to address uncertainties in retirement, especially given potential long-term trends such as increasing health care costs and ongoing economic fluctuations. Orman's conservative approach, advocating for a higher threshold of retirement savings, reflects a cautious strategy designed to safeguard against the unknowns of future decades. Financial planning is crucial for a secure retirement, and while Suze Orman’s recommendations may not be suitable for everyone, consulting a financial advisor can help you craft a personalized plan that aligns with your unique goals and risk tolerance. An advisor can help you assess your current financial situation, including your income, expenses, debts, and savings, and create a road map to reach your retirement goals. 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? Are you secretly doing better with your money than you think? Here are some signs you’re financially healthy. "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 '$2 Million Is Nothing' Suze Orman Warns Don't Retire If You Don't Have At Least $5 Million Or $10 Million Saved originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Coinbase Shares Sink 9% on Report CME to Consider Listing Spot Bitcoin 2024-05-17 03:37:00+00:00 - Shares of Coinbase fell nearly 8% on Thursday to a price of $202.49. The drop came after a report from the Financial Times that futures exchange CME was considering offering spot bitcoin trading to its clients. Shares of Coinbase dropped nearly 8% to $202.49 during U.S. morning hours on Thursday after a Financial Times report that the Chicago Mercantile Exchange (CME) might soon offer spot bitcoin trading amid strong interest from clients. Cryptocurrencies were up on the day. The CoinDesk 20 Index , which tracks 20 of the largest digital tokens by market capitalization, is 0.91% higher over the past 24 hours. Bitcoin {{BTC}} was up by half a percent as it continued to profit from Wednesday’s better-than-expected inflation report . COIN is up 29% year-to-date as crypto prices have rallied since the beginning of the year. Chicago-based CME, with a history dating back more than a century, is the largest futures exchange globally and a financial powerhouse. Until recently, Coinbase profited strongly from being the most trusted crypto exchange in the U.S., but that advantage could change if CME comes into play. The CME has been designated by U.S. regulators as a "systemically important financial market utility," a designation that implies it's subject to more strict supervision. Many investors also assume that the designation implies the government would never let the CME fail in the event of financial duress. CME is already the biggest bitcoin futures exchange by open interest in the U.S. The exchange said that it has been holding meetings with traders who wish to trade bitcoin on a regulated marketplace, people familiar with the matter told the Financial Times. A common reason for traders not wanting to touch digital assets is the lack of trust in crypto exchanges, especially after a series of bad players were outed in recent years, including the once highly-popular crypto exchange FTX . Recently launched spot bitcoin exchange-traded funds (ETFs) gave traders a safer way to invest in the token, which over 500 institutions took advantage of within only the first three months of existence, allocating over $10 billion in the funds alone. The rest, over $40 billion, came from retail traders.
‘Banks continue to become increasingly less relevant’: the professor who sees a $2 trillion hole in the economy predicts a thinning of the herd 2024-05-17 02:34:00+00:00 - Silicon Valley Bank’s failure in March 2023 was a watershed moment for the banking sector. The $210 billion collapse was the third-biggest in American history, sending shockwaves throughout the industry and exposing the solvency issues created by rising interest rates. Columbia finance professor Tomasz Piskorski is one of the leading experts in surveying the post-SVB landscape, as one of the co-authors of a widely read 2023 study estimating a $2 trillion decline in banks' asset values after the monetary tightening of the previous year. At the Fortune Future of Finance conference in New York City, Piskorski said the long-term consequence of higher-for-longer interest rates and new regulations will mean banks becoming less central to the financial system, as private credit and nonbank mortgage lenders such as Rocket Mortgage pick up the slack. “Banks continue to become increasingly less relevant, especially smaller-to-mid-sized banks,” Piskorski, Columbia’s Edward S. Gordon Professor of Real Estate, said Thursday. “Because of consolidation in the banking industry, I predict that in two years, we’ll have much fewer smaller-to-mid-size banks.” Banks are being forced to confront new risks post-pandemic, as tight Fed monetary policy devalues many of their loans and real estate holdings. They’re also contending with a string of bank failures that have exposed how quickly a seemingly stable bank can go under. Last March, Santa Clara-based SVB collapsed virtually overnight after depositors withdrew $175.4 billion in deposits in a matter of days. SVB’s clients started pulling their deposits after concerns circulated relating to losses the bank sustained on its long-term Treasury holdings, which went underwater after the Fed started hiking interest rates—so-called “duration risk.” SVB simply couldn’t handle the speed of the bank run, requiring the FDIC to step in and repay depositors: A new problem banks are being forced to contend with. “Regulations we have around liquidity were written before a time that you could move millions of dollars from a tiny device in your hand while on the subway,” Adrienne Harris, Superintendent of New York State’s Department of Financial Services, the state’s financial regulator, said. “You see 20% of deposits leave an institution in four hours. We’ve never seen anything like that before.” Bank runs aside, the macro conditions that led to last year’s bank failures haven’t gone away—Piskorski said there are likely many banks facing the same hidden solvency issues as SVB. “There are quite a few banks in the United States right now that have very similar risk characteristics [to SVB],” Piskorski said. “[They] have the market value of their assets being less than the face value of their debt…In principle, if the depositors show up, there’s bank runs—unless, of course, regulators step in.” Story continues Commercial real estate has emerged as a key area of concern for banks and regulators. Office buildings’ values have plunged post-pandemic as the rise of remote work has decreased demand for in-person desk space, leaving many banks on the hook for expensive real estate loans they signed a decade ago. They’re being forced to kick the can down the road by refinancing at high rates, sell their properties for pennies on the dollar, or default. Midsize banks are especially exposed—they hold around 40% of their assets in CRE loans, according to Piskorski. That overweight exposure has already generated banking flare-ups, such as New York Community Bank’s emergency bailout in March. “In general, the banking sector is very stable. Federal regulators did a wonderful job last spring…to contain the contagion that we've started to see across the banking sector from SVB and then to Signature [Bank], but there are still risks in the sector at large,” Harris said. “A lot of regulators, federal and state, are watching commercial real estate very closely.” Piskorski predicts that as struggling CRE portfolios and duration risks continue to weigh heavily on the banking sector, industry-wide tightening is on the horizon, potentially in the form of consolidation—and new, more nimble forms of lending will pick up the slack. New regulations potentially mandating higher capital requirements will also force smaller banks to tighten their belts, cutting down on their margins and creating opportunities for private credit or nonbank lenders such as Rocket Mortgage. “If the regulators decide to crack down, we'll see further contraction of smaller and mid-size banks,” Piskorski said. “We’ll see growing [market share for] debt securities and private credit.” This story was originally featured on Fortune.com
WARWICK LE CRYSTAL - MONTREAL BECOMES SPONSOR OF THE EXHIBITION SAINTS, SINNERS, LOVERS AND FOOLS: THREE HUNDRED YEARS OF FLEMISH MASTERWORKS 2024-05-16 22:42:00+00:00 - Loading... Loading... MONTREAL, May 16, 2024 /CNW/ - Warwick Le Crystal – Montreal becomes sponsor of the exhibition Saints, sinners, lovers and fools: three hundred years of Flemish masterworks presented at the Montreal Museum of Fine Arts from June 8 to October 20 2024. This captivating exhibition will offer visitors an immersive exploration of significant Flemish art through the ages, highlighting iconic works and unique artistic treasures. Warwick Le Crystal – Montreal is delighted to support this major cultural initiative, which promotes the appreciation of the arts and the richness of the Flemish artistic heritage. This collaboration reflects Warwick Le Crystal – Montreal's commitment to the city's cultural community, as well as its desire to support cultural events of international scope. Warwick Hotels and Resorts has deep roots in the Flemish community, with two hotel properties in Belgium. The exhibition Saints, sinners, lovers and fools: three hundred years of Flemish masterworks has been made in collaboration with the Denver Art Museum, in which city Warwick Hotels and Resorts is also present. In addition, Warwick Le Crystal – Montreal is proud to highlight the presence of Ms. Clare Annabelle Chiu on the Board of Directors of the Montreal Museum of Fine Arts, as well as her role as Vice-President of the Warwick Hotels and Resorts group. Ms. Chiu's dedication to the arts and her contribution to the cultural development of Montreal are key elements of this collaboration. About Warwick Hotels and Resorts: Warwick Hotels and Resorts was founded in 1980 with the purchase of the Warwick New York, a hotel originally built by William Randolph Hearst for his Hollywood friends. WHR now includes more than 40 prestigious hotels, resorts and spas worldwide. The 20 or so hotels located in the Americas, Europe and the South Pacific are wholly owned and operated by WHR. Another 20 or so hotels either are affiliates, which participate in sales and marketing activities of the Group or operated under management contracts. Further details can be found at www.warwickhotels.com. SOURCE Warwick Hotels and Resorts
Finally, Tax Refunds! These Cannabis Companies Will Get The Most Money Back If Rescheduling Happens - Curaleaf Holdings (OTC:CURLF), Trulieve Cannabis (OTC:TCNNF) 2024-05-16 22:39:00+00:00 - Loading... Loading... Significant tax benefits are anticipated for the cannabis industry, following President Joe Biden's confirmation of the administration's intent to reschedule cannabis from Schedule I to Schedule III. This move could alleviate the burdens of IRS tax code 280e, which has prevented cannabis companies from deducting normal business expenses. Which cannabis companies will benefit the most? Leading The Pack In Tax Payments Rescheduling cannabis will eliminate the burdensome 280E tax code, potentially freeing up over a billion dollars in tax breaks for the industry. Among the companies poised to benefit the most are Curaleaf CURLF and Trulieve TCNNF, given their significant tax contributions. According to Pablo Zuanic, a senior analyst from Zuanic & Associates, these tax savings could lead to enhanced cash flows, enabling these companies to reinvest in growth and expansion. Zuanic has consistently highlighted the disparity between current market valuations and the potential upside, particularly if federal legalization occurs. He emphasizes that immediate cash flow improvements could lead to substantial revaluation of these companies. By enabling the deduction of ordinary business expenses, the financial statements of these companies would more accurately reflect their true profitability. Curaleaf's Financial Landscape Beacon Securities' Russell Stanley notes that Curaleaf's operating cash flow management, which facilitated a debt repurchase post-quarter, improving its financial stability. The expected rescheduling of cannabis and potential enactment of the SAFER Banking Act would create a financial landscape for Curaleaf, potentially increasing the company's operating cash flow by 92% and free cash flow by 188%. Loading... Loading... Wedbush Securities released a report on Curaleaf, raising the stock's 12-month price target to $7.00 from $6.00 and maintaining a buy recommendation. Their report notes Curaleaf's performance in key domestic markets such as Connecticut, Arizona, Maryland, and New York, anticipating revenue to increase to $1.50 billion in 2025 with improvements in profitability. Trulieve's Growth Potential Needham's Matt McGinley highlights Trulieve for its operational efficiency, noting that the company achieved the highest gross margin and EBITDA rates observed in over two years. He points to significant potential for growth in revenue stemming from legislative advancements in key markets like Florida and Pennsylvania, which may transition to adult-use cannabis. Analyst Outlook On Industry Impact Viridian Capital Advisors also provides an outlook, noting that ten MSOs surpassed EBITDA estimates by $37 million in the first quarter of 2024. This performance indicates that initial projections may have been too conservative. Analysts from Viridian highlight that Curaleaf and Trulieve, among others, are positioned to benefit from the financial changes resulting from the removal of 280E. “We are long-term bullish. Just on the US market alone, we could justify over $110 billion valuations by around 2030 assuming federal legalization,” Zuanic said. “The tax savings would flow straight to the bottom line. If we take 10x on those savings, the upside for most stocks would be significant; in most cases, the value creation would be greater than the respective stocks’ market cap." To learn more about the cannabis business and how to invest in the sector, don't miss the opportunity to join us at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry's future. Secure your tickets now before prices increase by following this link . Deep Dive: Key Data On Curaleaf And Trulieve Curaleaf Holdings, Inc. The latest earnings reports and data from Benzinga Pro reveal the following key metrics for Curaleaf Holdings, Inc.: Market capitalization: $4.161 billion Q1 2024 revenue: $339 million Adjusted gross margin: 48% Net loss: $48.3 million Adjusted EBITDA: $77 million Total assets: $3.083 billion Total liabilities: $1.948 billion Long-term debt: $475.627 million Current ratio: 0.719 Free cash flow for the quarter: $25.675 million Revenue over the trailing twelve months (TTM): $1.353 billion Gross profit margin: 47.47% Trulieve Cannabis Corp. The latest earnings reports and data from Benzinga Pro reveal the following key metrics for Trulieve Cannabis Corp.: Market capitalization: $2.232 billion Q1 2024 revenue: $298 million Gross profit margin: 58.4% Net loss: $23 million Adjusted EBITDA: $106 million Total assets: $2.819 billion Total liabilities: $1.428 billion Long-term debt: $478.614 million Current ratio: 4.994 Free cash flow for the quarter: $118.652 million Revenue over the trailing twelve months (TTM): $1.142 billion Photo: AI-Generated Image.
The $2,000 Bike That Can't Move: Is The Peloton Fad Officially Over? - Peloton Interactive (NASDAQ:PTON), SPDR S&P 500 (ARCA:SPY) 2024-05-16 22:34:00+00:00 - Loading... Loading... Business Insider's Emily Stewart may not have just written the Peloton Interactive Inc PTON obituary, but her assessment indicates that the exercise bike company is about to kick the bucket. What Happened: Stewart’s article, which came out on Wednesday, outlines why the workout equipment maker is headed "to the fitness fad graveyard." Now, it's no secret that Peloton's stock has struggled. While the SPDR S&P 500 Trust ETF SPY and overall market hit new all-time highs this week, Peloton's stock traded down more than 97% from its highs and more than 83% lower than what it opened at in the fall of 2019. Stewart, a Peloton user herself, points out that some of the company's problems were brought on by unfortunate circumstances. Work-from-home and at-home workouts created a pull-forward effect for Peloton. But bike demand subsided quicker than the company could ramp up production. The fitness industry also has a habit of welcoming one workout trend after another. Eventually, they become fads. As Stewart puts it: Jazzercise, Zumba, CrossFit, Pilates, Cardio Barre, “or, well, you get the point… Fitness is a lot like fashion." See Also: Major Indexes Close In The Red, Dow Falls Below 40,000 As Investors Make U-Turn On Economic Outlook Why It Matters: Peloton’s market capitalization currently hovers at around $1.44 billion (it was $49.3 billion in January 2021). That may be concerning for the private equity suitors that are reportedly circling the struggling company. Another concern is the fact that the CEO tasked with turning the company around, Barry McCarthy, is already leaving after joining in 2022. Whether it's failing to attract new customers, cut into market share with new products, or keep legacy users engaged, Peloton clearly has some growth issues outside of its valuation and stock performance. Price Action: The New York-based company’s share price closed Thursday at $3.89, down 4.42%. Now Read: Planet Fitness Has Been ‘Pretty Much Destroyed,’ Says Company Founder Amid Speculation On Boycott Cancellations Image: Shutterstock
Dow hits 40,000 for the first time as bull market accelerates 2024-05-16 22:26:00+00:00 - Inflation slows in April, gas and housing prices still up in latest CPI report Wall Street advanced into uncharted territory on Thursday, with the Dow Jones Industrial Average topping 40,000 for the first time after a blowout earnings report from Walmart cast a positive light on the U.S. economy. "The more important messaging from achieving one of these milestones is that corporate America is in pretty good shape," said Art Hogan, a managing director and chief market strategist at B. Riley Financial. "It's like getting a gold star in school — guess what, things are OK." Investors expect "soft landing" Ryan Detrick, chief market strategist at Carson Group, noted that stocks have continued climbing as the U.S. seems headed for a so-called soft landing in which inflation recedes to more normal levels and economic growth remains healthy. Consumer spending and job gains, while slowing, also remain robust enough to stave off a prolonged slump even as the Federal Reserve pushes back its timeline for cutting its benchmark interest rate. "Think about how many people were talking about recessions and bear markets all last year — now we are once again back to new highs," he said. "Investors who were patient and ignored all the scary headlines were once again rewarded, just as they have been throughout history." The Dow hit the historic mark as Walmart jumped 7% after delivering robust first-quarter results. After hitting a high of 40,051, the index turned lower to close at 39,869, down 38.6 points, or 0.1%, on the day. The big-box retailer reported a large jump in e-commerce sales, as well as making inroads with high-income shoppers. "These are not inflation-driven results," Walmart CEO Doug McMillon told analysts on an earnings call. The S&P 500 and Nasdaq Composite also rose to record heights before paring their gains, ending 0.2% and 0.3% lower. A slowly cooling, but still resilient, economy has supported corporate earnings even as expectations of five or six interest rate cuts by the Fed this year have ebbed. Odds of a rate cut in September increased some after data released on Wednesday showed a slight moderation in consumer prices in April. "The reestablishment of a disinflation trend in the coming months should allow the Fed to start easing policy in September," according to Solita Marcelli, chief investment officer Americas, UBS Global Wealth Management, who still expects Fed cuts of 50 basis points in total this year. Lower rates are likely ahead as inflation "drastically" improves in the second half of 2024, according to Detrick at the Carson Group. "It is an election year, so expect some bumps, but overall the bull market that stared in October 2022 is alive and well." From Hogan's perch, investors are just fine foregoing multiple rates cuts as long as the economy continues to perform and drive corporate earnings. As he put it: "We're in a better place if we don't need the Fed to come to the rescue." While financial markets moved higher, so-called meme stocks are plummeting to earth. Shares of companies including GameStop, AMC Entertainment and Blackberry had surged earlier this week after a popular investor, know by his online handle "Roaring Kitty," reappeared on social media after a long absence.
Reddit soars after announcing OpenAI deal that allows use of its data for training AI models 2024-05-16 22:06:00+00:00 - The trading floor of the New York Stock Exchange prepares for the social media platform Reddit's initial public offering in New York City on March 21, 2024. Reddit shares surged 11% in extended trading on Thursday after the social media company announced a partnership with OpenAI that will allow the ChatGPT maker to train its artificial intelligence models on Reddit content. As part of the deal, OpenAI will gain access to Reddit's Data application programming interface, or API, "which provides real-time, structured, and unique content from Reddit," according to a release. In exchange, Reddit will begin offering certain AI features to users and moderators, powered by OpenAI, which will also become a Reddit advertising partner. Google announced a similar partnership with Reddit in February, allowing the company to train its AI models, such as Gemini, on Reddit content via access to the platform's API. "Reddit has become one of the internet's largest open archives of authentic, relevant, and always up to date human conversations about anything and everything," CEO Steve Huffman said in Thursday's release. "Including it in ChatGPT upholds our belief in a connected internet, helps people find more or what they're looking for, and helps new audiences find community on Reddit." OpenAI CEO Sam Altman is a former board member and major shareholder in Reddit, with a stake valued at about $750 million after Thursday's pop. OpenAI Chief Operating Officer Brad Lightcap spearheaded the deal, which was approved by the company's board, the release said. Earlier this week, OpenAI launched a new AI model and desktop version of ChatGPT, along with an updated user interface, the company's latest effort to expand use of its popular chatbot. The update brings GPT-4 to everyone, including OpenAI's free users, Chief Technology Officer Mira Murati said Monday in a livestreamed event. Murati said the new model, GPT-4o, is "much faster," with improved capabilities in text, video and audio. OpenAI said it eventually plans to allow users to video chat with ChatGPT. For Reddit, the deal provides another spark following a rally on Monday and Tuesday tied to a broader surge in so-called meme stocks such as GameStop . Reddit, which went public in March and reached a record close a few days after its initial public offering, is back to trading near its high of $65.11. WATCH: OpenAI co-founder and chief scientist leaving company
The US is worried about an invasion, but China could take control of Taiwan without firing a shot, war experts warn 2024-05-16 21:46:01+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview With the US and its allies focused on what a Chinese invasion of Taiwan could look like, and how American forces could defend Taiwan if necessary, they're missing a glaring alternative strategy China could employ to capture Taiwan, a new report argues. Defense experts say that an aggressive Chinese coercion campaign, short of war but still threatening, is more likely than a full-scale invasion and the US needs to prepare for such an event. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. A new report co-authored by war experts from the American Enterprise Institute and the Institute for the Study of War explores a scenario where China undergoes a "coercion campaign that remains far short of invasion but nevertheless brings Taiwan under Beijing's control," identifying such an event as a "significant gap in US strategic thought." Elements of such a campaign are already underway and include China's military exercises both in the Taiwan Strait and around the island, which are growing in scale and raising worries about escalation. Economic and diplomatic pressure is notable, and Chinese misinformation operations and the potential to slowly set up a blockade of Taiwan are also concerns. Advertisement The increasing Chinese military presence around Taiwan, the report says, could exhaust and overwhelm Taiwan's military and fuel a narrative that it is unable to defend the island, decreasing "trust in the military and feelings of security among the Taiwanese populace." Taiwan's AAV7 amphibious assault vehicle maneuvers across the sea during the Han Kuang military exercise, which simulates China's People's Liberation Army (PLA) invading the island, on July 28, 2022 in Pingtung, Taiwan. Annabelle Chih/Getty Images The report identifies four things key to resisting Chinese coercion. The first is a US-Taiwanese strategic relationship that foregoes concerns that "cooperation directly precipitates further escalation, whereas peace and prosperity are just around the corner if this partnership is halted." Second, Taiwan's government must function despite Chinese efforts to undermine it in the eyes of the Taiwanese people through things like "economic warfare, cyber warfare, sabotage, rigorous (and pseudo-legal) inspections of ships carrying goods to Taiwan, air and sea closures, electronic warfare, and propaganda critical of government mismanagement." These efforts include significantly degrading Taiwan's essential services, like clean water and electricity. Advertisement The third point is that Taiwanese people must resist Chinese "cognitive and psychological campaigns" aimed at breaking their rejection of the Chinese government, including "intimidating supporters of resistance, sowing doubt and fear among the population, and generating demands to trade political concessions for peace." And lastly, there has to be resistance against "widespread information campaigns" that "aim to decrease the US public's and political leadership's willingness to support Taiwan." Such campaigns are already occurring, prompting anxiety that the US public and government may see getting involved in defending Taiwan as heightening risks of war at a significant cost with little to gain. The AEI and ISW experts argue that is not the case. Related stories Notably, the report says that "Taiwan is strategically vital to the larger US-led coalition to contain" China, arguing that a US-friendly Taiwan links America's allies in the northwestern Pacific with US partners and allies to the south." A China-controlled Taiwan, however, "would become a springboard for further PRC aggression and would seriously compromise the US-led coalition's ability to operate cohesively." Advertisement A US-made AH-1W Super Cobra helicopter launches flares during an annual drill at the a military base in the eastern city of Hualien on January 30, 2018. MANDY CHENG/AFP via Getty Images The authors of the new report present coordinated actions China could pursue to prompt Taiwan and its partners to accept reunification, referring to it as a "short-of-war coercion course of action." Some of Beijing's biggest problems are Taiwanese resistance to China, which continues to grow, especially after the historic election of Democratic Progressive Party candidate Lai Ching-te, who is currently the vice president, in January, and continued support from the US and its regional allies. The new report looks at a hypothetical timeline that begins with the inauguration of Lai this month and leads into 2028, imaging how China and Taiwan could, by that point, come to a "peace" agreement. China could ultimately be successful in such a campaign, the authors say, if the US and its allies fail to recognize Beijing's coercive tactics or strategically plan to deter them. The US must clearly "recognize the possibility and danger of a coercion campaign that is far more intense than the one currently ongoing against Taiwan and develop ways to prevent Taiwan's isolation through means short of war," they write. Advertisement The report's authors argue that "increased efforts in the information domain will be key to ensuring that the US government and friendly international audiences do not fall prey to [Chinese] information operations intended to reshape the way Americans and key international actors think." CM-11 tanks fire artillery during the 2-day live-fire drill, amid intensifying threats military from China, in Pingtung county, Taiwan, 7 September 2022. Ceng Shou Yi/NurPhoto via Getty Images US-Taiwanese relations and concerns about an aggressive China in the Pacific region are often at the forefront of the minds of US officials and experts, but the focus is frequently on hard power elements, even if there is recognition of some of the coercive aspects of Chinese behavior. In March, US Navy Adm. John Aquilano, then the commander of US Indo-Pacific Command, stressed that China was pursuing a massive military build-up not seen since World War II and "all indications" pointed to it "meeting President Xi Jinping's directive to be ready to invade Taiwan by 2027." He also told the US Armed Services House Committee China's actions indicated it would ready to unify Taiwan by force, if necessary. Aquilano urged lawmakers to intensify the US' military development and posturing in the Pacific in order to deter such a fight. Advertisement And, earlier this month, over a dozen US lawmakers wrote to US Navy Secretary Carlos Del Toro and Air Force Secretary Frank Kendall, raising concerns about what preparations were being made to harden the US presence in the Pacific and deter military action from China. Of the lawmakers' concerns, the most prominent appeared to be the lack of active and passive defenses protecting US bases in the area, specifically on Guam and in Japan. "We are concerned about the alarming lack of urgency by the Department of Defense in adopting such defensive measures," they wrote, adding that "it is apparent that the Pentagon is not urgently pursuing needed passive defenses" to harden US bases and airfields from a vicious, preemptive strike by China's threatening missile force.