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Wayfair to open its first large store, as physical locations make a comeback 2024-05-16 14:46:00+00:00 - What retail apocalypse? Online home goods retailer Wayfair is opening its first namesake store, near Chicago, following a string of other digitally native companies that have turned to brick-and-mortar for growth. In an ironic twist for a company that became a $12 billion powerhouse by persuading consumers to buy couches and beds online, Wayfair is leaning into the most basic building blocks of retail. That’s because no matter how far tech has evolved, shoppers still can’t try out a new mattress from their laptops or phones. “If you think about the categories we’re in, they’re typically very visual categories, or very tactile, or, you know, considered purchases, because it’s reasonably expensive and you’re going to put a lot of care into picking the right item,” Wayfair CEO and co-founder Niraj Shah told CNBC. “Depending on what purchase someone’s making, they may prefer the in-store experience and getting to work with an associate,” he said. “Or they may want to discuss financing or want design help, and we can provide all of those experiences. We provide them online as well, but sometimes, in-store can be either more pleasurable or more effective.” The 150,000-square-foot megastore in Wilmette, Illinois, is set to open May 23. Wayfair follows other direct-to-consumer brands that have opened stores, including Warby Parker, Figs, Casper, Glossier and Everlane. Wayfair’s retail ambitions come as online-only companies look to plot their next phases of growth in a landscape that has evolved since their companies were founded, making it harder than ever to run a profitable e-commerce business. Privacy changes on Meta and Apple iOS have made it more difficult for marketers to target customers in advertising campaigns. Companies also face more competition from Chinese-linked upstarts such as Shein and Temu. Returns and the scams that come along with them are a never-ending, money-losing game. With the proliferation of online marketplaces on Amazon, Walmart and Target, just about anyone can be a retailer — and brands can find themselves competing against their own manufacturers. Many companies that started by selling directly to consumers now offer their wares in department stores and big-box retailers, but even that brings pitfalls. Brands that earned their competitive edge by gathering enormous amounts of data on their customers don’t have as much visibility when they’re working with wholesalers, nor do they make as much money. They’re also subject to the whims of their partners and could be taken off the shelves with little notice or risk losing a primary revenue source if that wholesaler suddenly goes under or sees sales fall. When brands have their own stores in addition to websites, they have a lot more control over mitigating those risks. Plus, torrid e-commerce growth during the Covid-19 pandemic has moderated and fallen to below its pre-pandemic low, U.S. Census data shows. Given the seemingly inextricable role online shopping plays in most Americans’ lives, some may be surprised to learn that the vast majority of retail sales — about 85% in 2023 — still happen offline, according to Census data. “For some of my companies in our various experiences, [stores] can be your very best channel from an economics perspective — if you have a really good brand,” said Larry Cheng, a founding partner at Volition Capital, a technology growth equity fund that invests in software, internet and consumer companies. “It’s not going anywhere, it’s additive to online sales, it’s additive to attracting new customers, the economics can be great.” What to expect at Wayfair's store Wayfair’s new location will look somewhat like an Ikea in its size and on-site restaurant, but its assortment will offer a range of diverse styles as it works to become a one-stop shop for all things home. “You’ll see furniture, you’ll see the marketplace, which is very decor centric, but we have home improvement, which includes large appliances, kitchen cabinetry, tile, doors, hardware, you’ll also see housewares, small electric, there’ll be storage and organization,” Liza Lefkowski, Wayfair’s vice president of merchandising and stores, told CNBC. “You’ll see a number of categories outside of furniture, but that are very core to your home,” she said. ng just one large-format store to complement a handful of smaller shops it opened under its specialty retail brands All Modern and Joss & Main. In the future, Shah is envisioning a “whole portfolio of large-format stores” with a nationwide footprint. Brick-and-mortar is back Wayfair’s physical store ambitions reflect a bigger wave of brick-and-mortar openings. In the early 2010s, new store openings largely outpaced closures, until the tide turned in 2017. Nearly 8,000 retail storefronts were shuttered and only about 5,000 new ones opened that year, according to Coresight Research’s U.S. and U.K. Store Tracker Databank. The spike in store closures sparked headlines about the so-called retail apocalypse and warnings that stores would die off as shopping moved online. For a while, that seemed to be true. New store closures outpaced openings until the trend changed in 2022. For the first time in five years, more storefronts opened than closed, resulting in 1,575 net new openings. There were 307 net new openings in 2023, and there have already been 521 net new openings in 2024, as of May 10. Discount retailers such as Dollar General, Five Below, Burlington and TJX Companies have fueled a lot of that growth, said John Mercer, Coresight’s head of global research and managing director of data-driven research. But direct-to-consumer retailers are playing their part, as well. Take Warby Parker, the glasses company credited with starting the direct-to-consumer movement. In May 2023, the retailer said it believed it could open more than 900 stores in the U.S. It opened about 40 in 2023, and has 40 more planned in 2024. The new store openings contributed to a 12% jump in revenue in 2023 compared with 2022. Figs, which sells scrubs and other products for health-care professionals, sold its products exclusively online until it opened its first store in Los Angeles in November. It has another planned in Philadelphia for this summer. CEO Trina Spear told analysts during the company’s first-quarter earnings call May 9 that 40% of the people shopping in the Los Angeles store are new customers. “And this is in our most penetrated market of Los Angeles. So, that’s great to see,” Spears said. “Health-care professionals are like everybody else, right? They want to engage with brands both online and off, and we’re seeing that in our Century City store.” Other privately held direct-to-consumer brands have also expanded into retail stores, including bedding company Brooklinen, furniture store Burrow and apparel brands Everlane and Untuckit. “Pure plays on [e-commerce] are saying, ‘We’re getting to a certain number, we’re doing fantastic on [e-commerce], but we won’t be able to hurdle this number no matter what ... if we don’t turn on another channel,’” said Rebecca Fitts, who previously served on Warby Parker’s in-house real estate team and is now the senior vice president of business strategy at real estate advisory firm Alvarez & Marsal Property Solutions. “I don’t think every brand is going to get to a store count of a Warby, but they’re certainly looking at those lessons, and it bodes well,” she said. High cost of entry If direct-to-consumer brands could all open stores and suddenly boost sales and profitability, they’d all be doing it. But retail fundamentals can bring a steep learning curve for companies that started out as online disruptors. Expanding into physical retail is challenging and expensive. Companies looking to open stores need to figure out a physical location, along with furnishings and supplies, and the logistics, such as transporting inventory, said Amish Tolia, the co-founder and CEO of Leap, a start-up that helps brands open retail stores. They also need to determine how to drive foot traffic and operate a store, he said. All those components require “time, energy, budget and resources, right? And so for as long as we can remember, besides a multi-brand department store, if you want to go set up your own fully branded retail environment, the barriers to entry have always been incredibly high,” Tolia said. Some direct-to-consumer brands have already been burned after they expanded too quickly and demand fell. Allbirds, whose market cap has gone from $4.1 billion following its initial public offering to about $114 million, rapidly opened dozens of stores over the last few years, bringing its total count to about 60, as of the end of March. But the shoe and apparel seller now plans to close 10 to 15 “underperforming” locations in the U.S. in 2024 so it can focus on “maximizing the productivity of our remaining stores,” executives said during the company’s first-quarter earnings call May 8. Mattress brand Purple has also opened about 60 stores, but it said during the ICR consumer investor conference in January that its showrooms are perhaps “the toughest part of our model right now” because about a third of its locations “are problematic for one reason or another.” “So, we’re going to slow [store openings] down a little bit in the coming year and try to figure out, how do we make sure that we get them to where they need to be so they’re profitable,” said Purple CEO Rob DeMartini. “They’re great brand beacons. But they’ve got to make some money.” Wayfair, which hasn’t turned an annual profit since 2020, will face the same challenges as it embarks on its retail expansion. The company spent about $348 million on capital expenditures in 2023 but has also slashed costs to save hundreds of millions of dollars and strengthen its cash position. Wayfair said it’s starting slow and plans to roll out stores carefully, taking time to see what’s working and what isn’t before making future investments. “The challenge with it is the capital expenditure upfront,” said Cheng, from Volition Capital. “But ultimately, all of these brands, there’s not like this one channel that is the silver bullet,” he said. “The good brands, they work across all of them.”

Supreme Court Rejects Challenge to Consumer Watchdog’s Funding 2024-05-16 14:19:56+00:00 - The Supreme Court rejected a challenge on Thursday to the way the Consumer Financial Protection Bureau is funded, one that could have hobbled the bureau and advanced a central goal of the conservative legal movement: limiting the power of independent agencies. The vote was 7 to 2, with Justice Clarence Thomas writing the majority opinion. Had the bureau lost, the court’s ruling might have cast doubt on every regulation and enforcement action it had taken in its 13 years of existence, including ones concerning mortgages, credit cards, consumer loans and banking. The central question in the case was whether the way Congress chose to fund the bureau had violated the appropriations clause of the Constitution, which says that “no money shall be drawn from the Treasury, but in consequence of appropriations made by law.” Justice Thomas said the mechanism was constitutional. “Under the appropriations clause,” he wrote, “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes.”

This Walmart Rally has Legs: 20% Upside Left To Go 2024-05-16 13:16:00+00:00 - Key Points Walmart had a blowout quarter, outperforming on the top and bottom lines, with revenue growth accelerating sequentially. The quarter was FCF negative but is not a worry, with earnings and cash flow expected to improve as the year progresses. Capital returns are reliable and include $1.1 billion in repurchases and a dividend in Q1. 5 stocks we like better than Walmart Walmart’s NYSE: WMT stock is rallying because of its industry-leading position and persistent growth. The Q1 results have spurred the market to new highs, suggesting the rally still has legs. There will be volatility; the market is unlikely to move higher in a straight line, but a 20% upside is possible before the end of the year. Analysts have lifted their targets steadily this year, and that trend is unlikely to change. The pre-release activity leads the market to the high end of the target range of $175, or about 20% above the post-release pop. Get Walmart alerts: Sign Up Walmart has Blowout Quarter: The Bar was Set Low Walmart Today WMT Walmart $64.01 +4.18 (+6.99%) 52-Week Range $48.34 ▼ $64.42 Dividend Yield 1.30% P/E Ratio 33.45 Price Target $61.97 Add to Watchlist Walmart had a blowout quarter, with strength seen in all metrics. The caveat is that the bar was set low, with seventeen of the twenty-three revisions tracked by Marketbeat.com being lower. Regardless, the $161.5 billion in revenue is up 6% and outpaced the consensus by 200 basis points. All segments posted growth led by International with a 12.1% advance, 10.7% on an FXN basis. The US comps came in at 3.8%, driven 100% by transactions. Sam’s Club posted a solid 4.6% increase on a 4.4% gain in comps. Sam’s Club comps are also driven by transactions but offset by a slight decline in ticket averages. Sam’s Club also posted a solid 13% increase in membership income, indicating increased revenue and earnings leverage in upcoming quarters. However, the boost to Sam’s Club revenue may be short-lived. The company discounted memberships in April that may not get renewed the following year. eCommerce remains a driving force for Walmart. Global eCommerce sales grew by 21% on online, same-day, and delivery strength. The Global Ad business also did well, growing 24% and aiding the outlook. Strength in all categories also aided margin. The net result is a 9.6% increase in consolidated operating income, a 13.7% increase in adjusted operating income, and a 22.5% increase in adjusted earnings. Adjusted earnings came in at $0.60, beating the consensus by more than 1000 basis points. Guidance is among the factors driving the market. The company updated its guidance to the high end or above the previous range, above the consensus forecasts. Because the company has momentum and is gaining a share in today’s critical categories, including grocery, it may outperform its guidance and raise it despite general weakness in the retail sector. Walmart Capital Returns are Safe, Health, and Growing Walmart was FCF negative in Q1, but this is not a concern. Free cash flow will improve as the year progresses, leaving the capital return in solid shape. Capital return in Q1 included the dividend and share repurchases worth $1.1 billion to investors or about 0.2% of the market cap. Repurchases reduced the share count by roughly 0.35% on average YOY in the quarter and should continue steadily this year. The dividend is worth about 1.45% annually to investors and aligns with the S&P 500 average. The distribution is growing and will likely increase by another mid-to-low single-digit amount this year. The technical action is promising. The Q1 results and guidance have the market up more than 5% and at a new all-time high. The move extends a rally in place, breaking the market out of a consolidation band, and suggests a $20 movement is in play. In this scenario, the market could advance to $80 and above the current high target set by analysts. The risk is that the market will fail to follow through on this move. Walmart shares offer an attractive price point for taking profits, which may cap gains over the summer. In this scenario, the market may pull back to retest support near $60 or lower before setting any more fresh highs. Before you consider Walmart, 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 Walmart wasn't on the list. While Walmart currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

5 Companies Leading the Charge With Robotic Solutions 2024-05-16 12:59:00+00:00 - Key Points Recent major AI advancements, like ChatGPT, have accelerated the automation adoption process for robotics. Global robotics investment is set to surge, presenting a potentially lucrative investment opportunity. Key players like Emerson Electric, Medtronic, Caterpillar, Teradyne, and Zebra Technologies are pioneering innovative solutions in robotics and automation . . 5 stocks we like better than Teradyne Since the mid-1900s, modern robotics has captivated our collective imagination. The prospect of machines performing tasks once exclusive to humans is both thrilling and, for some, a bit disturbing. Nevertheless, robotics' true purpose is to enhance human productivity by automating mundane and repetitive tasks, thereby freeing us to engage in more meaningful activities. Recent breakthroughs in technologies such as generative AI, exemplified by services like ChatGPT, have accelerated the adoption of automation significantly within various industries. Get Teradyne alerts: Sign Up Various predictions and estimates indicate a substantial increase in global robotics investment. Goldman Sachs recently predicted that the global market for just humanoid robots could reach $38 billion by 2035. This growth suggests that investing in robotics stocks could be a savvy financial move in the near future. So, let’s take a closer look at five companies that are not just leading the charge but also pushing the boundaries with their innovative robotic solutions in their respective sectors. Emerson Electric Co. Emerson Electric Today EMR Emerson Electric $112.82 -2.00 (-1.74%) 52-Week Range $76.94 ▼ $116.76 Dividend Yield 1.86% P/E Ratio 6.04 Price Target $120.56 Add to Watchlist is a global technology and software company that offers a range of solutions for industrial, commercial, and consumer markets across the Americas, Asia, the Middle East, Africa, and Europe. The company is involved in robotics primarily through its Discrete Automation segment, which provides programmable automation control systems and electric linear motion solutions. These technologies are integral to robotic operations, enhancing precision and efficiency in industrial applications. Additionally, the AspenTech segment contributes by offering asset optimization software, which helps industrial manufacturers design, operate, and maintain robotic and automated systems for improved performance. Emerson Electric Co. (EMR) Price Chart for Thursday, May, 16, 2024 Medtronic PLC Medtronic Today MDT Medtronic $85.64 +0.92 (+1.09%) 52-Week Range $68.84 ▼ $91.00 Dividend Yield 3.22% P/E Ratio 27.27 Price Target $94.91 Add to Watchlist is a leading global medical technology company that develops and manufactures devices to improve patient outcomes. Its diverse portfolio includes products for cardiac and vascular health, spinal and biologics, diabetes management, and neuromodulation. MDT is involved with robotics primarily through its development of robotic-assisted surgical technologies. These innovations enhance precision and outcomes in minimally invasive procedures, aligning with Medtronic’s commitment to leveraging advanced technology to improve patient care and operational efficiency. Emerson Electric Co. (EMR) Price Chart for Thursday, May, 16, 2024 Caterpillar Inc. Caterpillar Today CAT Caterpillar $350.72 -9.32 (-2.59%) 52-Week Range $205.60 ▼ $382.01 Dividend Yield 1.48% P/E Ratio 15.83 Price Target $323.35 Add to Watchlist a Fortune 500 company that needs no introduction, is pushing the boundaries with robotics through its investment in advanced technologies to enhance productivity and reduce costs. The company integrates automation and robotics into its machinery, improving efficiency in construction and mining operations. This commitment to innovation positions Caterpillar well for long-term growth, bolstered by its strong balance sheet and ongoing investments in research and development. Caterpillar Inc. (CAT) Price Chart for Thursday, May, 16, 2024 Teradyne, Inc. Teradyne Today TER Teradyne $131.49 -0.46 (-0.35%) 52-Week Range $81.07 ▼ $132.76 Dividend Yield 0.37% P/E Ratio 50.00 Price Target $117.83 Add to Watchlist designs, develops, manufactures, and sells automated test systems and robotics products globally. The company provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software, serving manufacturing, logistics, and industrial customers. These innovative robotic solutions enhance productivity and efficiency, making Teradyne a key player in the automation and robotics market. Teradyne, Inc. (TER) Price Chart for Thursday, May, 16, 2024 The Robo Global Robotics and Automation Index ETF ROBO Global Robotics & Automation ETF Today ROBO ROBO Global Robotics & Automation ETF $57.21 -0.43 (-0.75%) 52-Week Range $45.42 ▼ $60.29 Dividend Yield 0.05% Assets Under Management $1.30 billion Add to Watchlist The ETF NYSE: ROBO focuses on stocks in the robotics and automation sectors. Managed by ROBO Global and launched on October 22, 2013, it tracks a global index of companies engaged in these innovative industries, employing a tiered weighting strategy for its portfolio. ROBO’s top holdings include prominent companies such as Teradyne, Zebra Technologies, Intuitive Surgical, and Rockwell Automation. This diversified approach allows investors to gain exposure to the rapidly growing robotics and automation markets, leveraging the performance of leading firms in these fields. ROBO Global Robotics & Automation ETF (ROBO) Price Chart for Thursday, May, 16, 2024 Before you consider Teradyne, 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 Teradyne wasn't on the list. While Teradyne currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

These 5 Penny Stocks Just Surged Double Digits 2024-05-16 12:35:00+00:00 - Key Points Penny stocks and meme stocks are back in the spotlight, with GME and AMC rising triple digits in days. The stocks on this list qualify as meme stocks, surging double-digits in days, and some could keep rising. High short interest plays a role in the stock price increases but is not the only to drive these markets. 5 stocks we like better than Faraday Future Intelligent Electric Meme stocks are back in focus, with Gamestop NYSE: GME and AMC Entertainment NYSE: AMC gaining triple digits in hours. The next great meme trade could be around the corner, and the stocks on this list could be the winners. They all surged by double digits, driven by catalysts with more meat than a picture posted on X. The caveat for investors is that these highly speculative stocks come with significant risks that could lead to losses for the unwary and gains for short-sellers. Get FFIE alerts: Sign Up Faraday Future Intelligent Electric Inc. - Short Squeeze In-play Faraday Future Intelligent Electric Today FFIE Faraday Future Intelligent Electric $1.65 +0.95 (+134.04%) 52-Week Range $0.04 ▼ $117.36 Add to Watchlist is up more than 100% on the day and quadruple digits since the rally began. The rally is driven by nothing more than short-covering due to a lack of other news. The company is involved with the EV market but has no product to speak of and a very high short interest in play. The short interest is likely down since the last report but incredibly high then, nearly 100%, and the short sellers may be using this rally to reposition. The rally will eventually run out of steam because no meat is on this bone. Surprisingly, institutional ownership is high and includes names like Palantir Technologies NYSE: PLTR, but investors should expect the group to lean toward sales with elevated share prices. No analysts rate this stock. AEye Rises 200% After Results and Outlook AEye Today LIDR AEye $3.20 -0.14 (-4.19%) 52-Week Range $0.92 ▼ $24.00 Add to Watchlist is a LIDR-focused robotics and autonomous vehicle company with rising shares. The company issued a favorable earnings report that validated its business, catalyzing the rally. The results were weak, but a new partnership opened the Chinese market, paving the way toward sustained revenue and profitability. Short interest is not a factor in the rally; short interest was less than 4% on April 30th. No analysts rate LIDR stock; few institutions own it, but the names on the list are telling. Among the top holders are Intel NASDAQ: INTC and General Motors NYSE: GM, which hold more than 10%. The price action post-release is favorable. The stock is up in a series of moves that align with a market reversal and sustained rally. The move is driven by high volume and may continue rising, although resistance is evident near $4. Petco Health and Wellness Company Rises to the Occasion Petco Health and Wellness Today WOOF Petco Health and Wellness $2.46 -0.15 (-5.75%) 52-Week Range $1.41 ▼ $10.31 Price Target $2.96 Add to Watchlist rose to the occasion, gaining 50% in days, due primarily to short-covering. The short interest is not as high as FFIE but still high at 20%, sufficient to fuel a squeeze. The question is whether the market can get above critical resistance at the $2.60 level, which looks unlikely. The analysts' consensus is above that level but falling compared to last year, last quarter, and last month, led lower by revisions. The recent revisions put this stock trading below $2, and they may be optimistic. Petco operates in a healthy market but faces intense competition from larger players like Chewy NYSE: CHWY, which is diversifying and gaining market share in its sector. iPower is a Small but Powerful eCommerce Retailer iPower Today IPW iPower $1.46 +0.20 (+15.87%) 52-Week Range $0.40 ▼ $1.59 Price Target $1.25 Add to Watchlist is a small eCommerce retailer with quarterly revenue below $25 million, but it is a powerful operator in its space. It provides gardening and growing light equipment for homes and businesses. The latest results include 15% top-line growth and a return to profitability that is expected to persist. Short interest is not a factor in this rally, but an analyst is. Roth MKM is the only analyst rating the stock tracked by Marketbeat. It rates this stock as a Buy and sees it trading near fair value at current levels, a potential cap for the market. Canaan Sells Spare Parts to the Bitcoin Mining World Canaan Today CAN Canaan $1.17 +0.12 (+11.43%) 52-Week Range $0.75 ▼ $3.50 Price Target $4.25 Add to Watchlist is surging on news its CEO and CFO would buy at least $2 million worth of their US-listed ADS. Each ADS is worth 15 class A shares and is a significant vote of confidence in the business. Rising Bitcoin prices support business and now, AI, which relies heavily on similar equipment. Short interest and short-covering are factors in this rally; results aren’t. The short interest rate was over 11% at the end of April; the company did not make money. However, analysts rate it as a Buy and see it increasing by 200% at the low end of the range so the rally could continue. Before you consider Faraday Future Intelligent Electric, 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 Faraday Future Intelligent Electric wasn't on the list. While Faraday Future Intelligent Electric currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Arcos Dorados: McDonald’s, But Cheaper With Better Growth 2024-05-16 11:30:00+00:00 - Key Points Arcos Dorados is McDonald's largest independent franchisee and the largest restaurant operator in Latin America. It is growing at double the pace of its parent company and accelerating its store count growth. The value and dividend make it attractive for income and dividend growth investors who can tolerate emerging market risk. 5 stocks we like better than Arcos Dorados McDonald’s NYSE: MCD is a great stock, but investing in MCD directly isn't the only way to buy into its success. With Arcos Dorados NYSE: ARCO, you can get MCD exposure for cheaper and with a more robust growth outlook. Arcos Dorados is the brand's largest independent franchise operator and restaurant chain in Latin America, leading with growth and accelerating its store openings. Surely, it comes with risks, but those are offset by the company’s health and the brand it represents, which is well-established, trusted worldwide, and growing. Get Arcos Dorados alerts: Sign Up Arcos Dorados Dividend Payments Dividend Yield 2.27% Annual Dividend $0.24 Dividend Increase Track Record 1 Year Annualized 3-Year Dividend Growth 57.48% Dividend Payout Ratio 28.24% Next Dividend Payment Jun. 28 See Full Details ARCO stock trades at a deep value to McDonald’s -- near 10x this year’s earnings outlook and 10.5x next year’s with an outlook for accelerating results. McDonald’s trades more than double the valuation at 22x this year and 20.5x next year’s earnings consensus, and its business is growing at half the pace. The MCD dividend is a bit better than ARCO; the yield is worth 70 basis points more annually, but it has a less robust outlook for distribution growth. McDonald’s is unlikely to curb distribution increases or cut them out, but its 55% payout ratio is far higher. The takeaway is that Arcos Dorados' dividend may not match up to MCD now, but it will over time, and that is another value driver for shareholders. Arcos Dorados Had a Robust Quarter, Gives Positive Outlook Arcos Dorados Today ARCO Arcos Dorados $10.46 -0.11 (-1.04%) 52-Week Range $8.32 ▼ $13.20 Dividend Yield 2.29% P/E Ratio 12.31 Price Target $13.38 Add to Watchlist Arcos Dorados had a robust quarter in Q1, with strength in all regions and segments. The company reported $1.1 billion in net sales for a gain of 9.1%, nearly double the 4.6% pace set by the parent company. The growth is driven by a 38.6% systemwide comp due partly to inflation. Inflation is raging throughout Latin America, but company growth is outpacing it significantly, more than 2x on average, as volume growth continues. Volume growth trends are supported by the push into markets outside Brazil, including deepening penetration of existing markets. It has been positive for 12 quarters. Internal metrics are good. The company’s three-D strategy of Digital, Drive-thru, and Delivery is paying off. Digital sales amounted to 55% of the revenue and are supported by the lean into freestanding units. Freestanding units provide the fullest MCD experience, which centers on the Drive-thru. Loyalty membership is another strength, more than doubling compared to the prior year. The company maintained its margin despite the push of inflation. Consolidated adjusted EBITDA growth trailed the top line slightly at 8.4% but is still solid. The net result is a GAAP income of 14 cents, a penny below the consensus and down compared to last year but aligning with dividend health. The company gave no specific guidance but said demand is solid across the footprint. The results in Q1 led them to accelerate plans for store openings, which stand at 22 new stores so far for this year. Among the positive developments during the quarter is the sponsorship of Formula One in Latin America. The sport resonates with families across all boundaries and should aid brand awareness and growth over the next few years. Analysts See Upside for Arcos Dorados Analysts' activity in Arcos Dorados is light but bullish: the coverage of MCD is more robust and bullish and includes the impact of Arcos Dorados. The four analysts tracked by Marketbeat.com covering ARCO are pegged at Buy/Outperform with a consensus price target of $13.38. That is 25% above the current action, suggesting a deep value opportunity. Because the stock trades below the analyst's lowest price target, it should rebound from its current lows soon. The stock is down following the Q1 release but shows signs of support near the recent low. A rebound could form within days if the market sustains support at this level. If not, this stock could fall to new lows, which is unexpected. Deepening the penetration of markets with growing markets is a recipe for persistent growth, even with headwinds in place, and that should support higher price action and the long-term trend in this stock. Before you consider Arcos Dorados, 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 Arcos Dorados wasn't on the list. While Arcos Dorados currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Advertising That Mixes Reality with A.I. 2024-05-16 09:00:44+00:00 - Love it or hate it, artificial intelligence has become increasingly prevalent in our lives. Now, jewelers are exploring its marketing potential. Frankie Deane, senior vice president of growth for the British brand Monica Vinader, said A.I. was “another form of us utilizing technology to elevate our digital experience for consumers.” When it comes to providing an elevated product and in-store experience, “there is a greater expectation I think on brands like us to translate that digitally,” she said. The brand, whose pieces range from 24 British pounds (about $30) to £1,495 (about $1,870), announced in December that it would begin work with the U.S.-based company Constructor, an A.I.-powered search platform, to create bespoke digital experiences including tailored landing pages for each shopper and personalized search results. While the overall project was still in a testing phase, some elements began to be introduced in March. Last year, the Bond Street jeweler David Morris was seeking help to create a gifting advertising campaign for its everyday pieces, which start at £1,500.

Rivian's Stock Has Already Had a Wild Week, but the Story Hasn't Changed 2024-05-16 06:26:00+00:00 - Shares of electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) sank Wednesday after rising early in the week on the brief resurgence of interest in meme stocks. As of the close of trading, Rivian was down by about 8.9% from Tuesday's closing price -- but still up about 2% since the end of last week. The meme stock revival faded on Wednesday This has already been quite a week for followers of meme stocks -- the group of heavily shorted stocks that surged earlier this decade following aggressive promotion by social media personalities and others who hoped to cause short squeezes. The group had a brief revival on Monday and Tuesday after a Reddit user who came to prominence in the initial run-ups posted on social media for the first time in roughly three years. Rivian, like several other EV companies, had a moment as a meme stock. It had a huge run-up shortly after the automaker's initial public offering in late 2021, briefly giving Rivian -- which had only just begun production of its first vehicle -- a market cap of more than $100 billion. Rivian is out of the hype phase and into the grind Things have changed a lot since then. While Rivian is now an established EV brand, having delivered roughly 100,000 vehicles, its market cap of $10.2 billion is just a fraction of what it was at its peak. Why? Lots of reasons. Among them: Reality has set in. Rivian isn't yet close to sustainable profitability, and getting there will be a costly grind. Right now, Rivian is aiming to finish developing the first vehicle on its new, smaller, less-expensive platform. The company has told investors it expects to begin production of that vehicle, the R2 SUV, in the first half of 2026. Rivian's path to profitability is clear -- it's just long There's a good chance that the $45,000 R2 -- and the even smaller R3 that will follow -- will be the vehicles that give Rivian the scale to become profitable in the long term. And we should note that Rivian isn't in acute danger of going broke: It recently confirmed that it has enough cash on hand to get the R2 into production, and it's working hard to lower its costs in the meantime. CEO RJ Scaringe and his team are doing just about everything right. But Rivian investors waiting for a real return to rocket-like share price growth will probably have to wait another couple of years at least. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Story continues Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $559,743!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of May 13, 2024 John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rivian's Stock Has Already Had a Wild Week, but the Story Hasn't Changed was originally published by The Motley Fool

Stock market today: S&P 500 breaches 5,300 as stocks rally to records after CPI 2024-05-16 05:28:00+00:00 - US stocks rallied on Wednesday, with all three major indexes closing at record highs as a soft reading on consumer prices fueled hopes that the Federal Reserve could cut interest rates sooner than expected. The S&P 500 (^GSPC) rose nearly 1.2%, closing at 5,308.18, above 5,300 for the first time ever. The Dow Jones Industrial Average (^DJI) jumped about 0.9%, or almost 350 points, creeping closer toward the 40,000 level. The tech-heavy Nasdaq Composite (^IXIC) climbed about 1.4%, notching its second record close in as many days. The Consumer Price Index rose 0.3% over the previous month and 3.4% over the prior year in April, a deceleration from March. "Core" inflation — which strips out the cost of food and gas — also cooled. The relatively cool inflation reading led the 10-year Treasury yield (^TNX) to fall 4.35%, its lowest level in a month, and sparked new bets on Fed rate cuts as soon as September. According to the CME FedWatch Tool, around 70% of traders now expect at least one cut by the September meeting, a notable increase from a week ago. Stocks have ground higher amid rekindled confidence that the US economy is in good enough shape for the Federal Reserve to start bringing down rates from their current historic highs. That optimism has fueled a resurgence in bullishness in the market. Elsewhere on the macroeconomic front, retail sales fell flat — exactly — last month, coming in well short of Wall Street's expectations. Read more: How does the labor market affect inflation? Meanwhile, the pace slackened in the frenzied meme stock rally that saw GameStop (GME) and AMC (AMC) prices more than double at one point on Tuesday. Both stocks dropped about 20% on Wednesday.

Cisco forecasts upbeat fourth-quarter revenue on enterprise demand 2024-05-16 05:09:00+00:00 - (Reuters) -Cisco Systems forecast fourth-quarter revenue above Wall Street estimates on Wednesday as the network equipment maker benefits from a pick up in enterprise spending and easing supply chain constraints. The company's shares rose 5% in trading after the bell. Cisco has been benefiting from an increase in spending, with companies trying to boost their growing artificial intelligence and cloud computing needs. The company has also been trying to reduce its reliance on its massive networking equipment business, which has suffered in recent years from supply chain issues and a post-pandemic slowdown in demand. Last year, the Cisco agreed to buy Splunk, to enhance its cybersecurity capabilities and broaden its market reach. The deal, which closed in March, is expected to accelerate revenue growth and gross margin expansion in the first fiscal year post completion. "Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result. The addition of Splunk to our product line will be a catalyst for further growth," Cisco Chief Financial Officer Scott Herren said. Cisco forecast fourth-quarter revenue between $13.4 billion and $13.6 billion, compared with analysts' estimates of $13.23 billion, according to LSEG data. For the third quarter, revenue came in at $12.7 billion, beating estimates of $12.53 billion. Splunk contributed $413 million. On an adjusted basis, Cisco earned 88 cents per share, beating estimates of 82 cents. (Reporting by Juby Babu in Mexico City; Editing by Shounak Dasgupta)

Buffett’s Berkshire Reveals $6.7 Billion Stake in Insurer Chubb 2024-05-16 05:08:00+00:00 - (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. unveiled a $6.7 billion stake in insurer Chubb Ltd., ending months of suspense over its mystery position in a financial firm, previously kept concealed in regulatory filings. Most Read from Bloomberg Berkshire disclosed the holding in a filing on Wednesday, reflecting its positions at the end of the first quarter. The conglomerate has been building the stake since 2023 but it hadn’t previously been reported because the Securities and Exchange Commission allowed Berkshire to keep it confidential. Still, separate quarterly filings reflected that Berkshire’s equity stakes in banks, insurance and finance companies were growing, while the firm was pulling back in other industries including consumer products. “Millions of people follow what Buffett does,” said David Kass, a finance professor at the University of Maryland‘s Robert H. Smith School of Business, explaining why Berkshire wants confidentiality while it amasses big positions. “Warren Buffett would be more sensitive to the issue than others.” Chubb stock jumped in after-hours trading, adding as much as 9.9%. Buffett’s Berkshire is deeply familiar with the insurance industry, owning a range of companies including Geico and National Indemnity. The billionaire investor has called Berkshire’s property-casualty insurance operation the “core” of the conglomerate, helping generate “float” that can then be reinvested. The conglomerate has also invested in other businesses in the insurance industry. Berkshire owns a stake in Aon Plc, a major broker, and has previously bet on rivals including Marsh & McLennan Cos. Cash Pile Chubb is one of the biggest property-casualty insurers in the US and operates in 54 countries globally. Its chief executive officer, Evan Greenberg, is the son of Maurice “Hank” Greenberg, who led American International Group Inc. for many years. Evan Greenberg built Chubb through the 2016 merger of Ace Ltd. and Chubb Corp., which created a massive insurer that covers a range of risks including cyber attacks and marine shipping. Chubb insured Baltimore’s Francis Scott Key Bridge, which collapsed when a cargo ship slammed into it in late March. It’s reportedly set to pay out $350 million to the state of Maryland. Story continues Buffett already revealed a few recent changes to his company’s holdings at Berkshire’s annual meeting in Omaha earlier this month. It trimmed a stake in Apple Inc. to $135.4 billion at the end of the first quarter, as the iPhone maker faces a range of struggles including an antitrust fine, sliding sales in China and a failed car project. The billionaire investor heaped praise on the tech giant at the meeting — which Apple CEO Tim Cook attended — and said it will remain Berkshire’s largest investment barring any dramatic changes. The cash pile at Berkshire reached a record $189 billion at the end of March. Buffett said at the annual meeting that it was “a fair assumption” that it will hit $200 billion by the end of this quarter. Funds with more than $100 million must file disclosures about their holdings within 45 days of the end of each quarter, providing a glimpse into the holdings of secretive money managers including hedge funds and large family offices. (Adds context on Chubb in paragraphs 8-9) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Charlie Munger Warned Millennials And Gen Z Are 'Going To Have A Hell Of A Time Getting Rich' — Warned Wealthy And Poor Gap Will Narrow 2024-05-16 05:00:00+00:00 - Charlie Munger, who passed away in November 2023 at nearly 100 years old, lived through a remarkable span of history and economic change. As Warren Buffett’s right-hand man and vice chairman of Berkshire Hathaway, his insights and predictions carry significant weight. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? In 2021, Munger made some noteworthy comments at Berkshire Hathaway’s annual shareholder's meeting. He expressed concerns about how economic conditions, particularly low interest rates and asset inflation, might disproportionately impact younger generations’ ability to build wealth compared to previous ones. He stated, "With everything boomed up so high and interest rates so low, what’s going to happen is the millennials generation is going to have a hell of a time getting rich compared to our generation." While these concerns remain relevant three years later, the economic landscape has shifted since then. In 2021, interest rates were historically low, and asset prices, such as real estate and stocks, were soaring. Munger argued that these factors made it difficult for younger people to enter the market and accumulate wealth at the same pace as older generations had. However, by 2023, the situation had changed. Inflation surged to levels not seen in decades, prompting central banks to raise interest rates significantly. This has impacted asset prices and potentially made it even more challenging for younger generations to build wealth. High inflation erodes purchasing power and makes saving more difficult. For example, a recent CNBC survey found that 53% of Americans feel behind on their retirement savings, a sentiment that could be exacerbated by high inflation. Trending: 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? Munger’s warning has proven accurate, as difficulties have markedly increased for renters seeking mortgages. A recent study indicates that the percentage of renters who find obtaining a mortgage somewhat or very difficult has surged to 74.2%, up from 50.5% in 2021. Munger’s mention of Bernie Sanders, who advocates for policies to reduce wealth inequality, indicates his belief that these economic policies might unintentionally result in a smaller wealth gap. This would occur not because wealth is increasing overall, but because asset inflation benefits current asset owners, leaving others behind. He observes, "The difference between the rich and the poor in the rising generation is going to be a lot less," highlighting that wealth disparities may appear less significant as fewer people can accumulate substantial wealth. Story continues Financial advisors are key in guiding individuals of all ages through today’s economic challenges. By developing tailored financial strategies and providing advice on savings and investment options, these professionals enable people to enhance their financial stability and work toward long-term goals. Read Next: 82% of Americans aren’t using this government secured 5% passive income stream , are you one of them? Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? "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 Charlie Munger Warned Millennials And Gen Z Are 'Going To Have A Hell Of A Time Getting Rich' — Warned Wealthy And Poor Gap Will Narrow originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief 2024-05-16 03:00:00+00:00 - Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief Florida Congressman Byron Donalds is teaming up with his colleague Sen. Rick Scott on a bill to provide Florida homeowners a measure of relief from the Sunshine State's insurance crisis. The bill, known as "The Flood Insurance Relief Act," would change the Internal Revenue Code of 1986 by giving homeowners what's known as an "above the line" deduction for their insurance premiums. An "above the line" deduction would allow homeowners to deduct the cost of their insurance premiums from their gross income instead of their take-home pay, a move that would result in significant savings. In a news release explaining the motivation behind the bill, Rep. Donalds and Sen. Scott contend that it would provide ‘much-needed tax relief for National Flood Insurance Program (NFIP) and private insurance policyholders across Southwest Florida, the Sunshine State, and the nation.' It has the potential to be an important piece of legislation because Florida's home insurance crisis is rapidly spreading beyond its borders and becoming a national issue. With that said, the situation in Florida is particularly dire. Florida's insurance industry has been battered by a series of rapid-fire hurricanes and extreme weather events that struck the state at the same time property values were spiking due to a massive influx of new residents. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can collect passive rental income without being a landlord. Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. Investing in its booming real estate market has never been more accessible. Those storms, which came in quick succession between 2018 and 2023, cost insurers billions of dollars in claims payouts and claims-related litigation. It not only forced insurers to dramatically raise premiums, but it also disrupted the reinsurance market to such an extent that many insurers packed up and left the market entirely. As it stands, Florida's state government-run insurance company, Citizens Property Insurance, is the single largest home insurance policy provider in Florida. The idea of a state-run insurer being on the hook for the bill after a major hurricane is problematic for obvious reasons when one considers the total value of privately held property in Florida and the fact that there is no state income tax. Another issue for Florida's homeowners is that the state's remaining private insurers are making ever-increasing demands in terms of premiums, deductibles, and coverage limits on policy renewals. Story continues Florida residents already pay the highest average insurance premiums in the nation and many policy renewals have one thing in common: they cost more and cover less. This has become a particularly thorny issue for Florida's condominium market, a lucrative sector popular with the state's retirees. Many of them are getting squeezed on both sides, as the only thing rising faster than their individual homeowner's premium is the group policy on the entire community. Trending: Want to Create a Passive Income Stream? These High-Yield Real Estate Notes Might Be Your Holy Grail Insurers are also inspecting condominium communities and demanding that upgrades and repairs be made before renewing policies. In many cases, these repairs are very expensive and result in hefty assessments that property owners on fixed incomes simply can't afford. Consequently, many condominium owners are putting their properties on the market, only to find buyers very hesitant about purchasing due to concerns about secondary expenses such as insurance premiums and HOA assessments. It's also important to note that Florida is far from the only state dealing with an insurance crisis. Home insurers have been heading for the exit door in California due to the cost of covering floods, fires, and other natural disasters. Like Florida, California's state-run insurance company, which was supposed to be a carrier of last resort, is quickly becoming a first option for frustrated homeowners who can't find affordable policies elsewhere. States like Louisiana, West Virginia, and South Dakota are all reporting average premium increases of over 200%. With that as a backdrop, "The Flood Insurance Relief Act" could be a big help to struggling homeowners nationwide. Being able to write insurance premiums off against gross income wouldn't solve the problem entirely, but it would certainly soften the blow many American homeowners are receiving when their policies come up for renewal. Read Next: Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to this Jeff Bezos-backed startup to generate monthly rental income without having to purchase their own property. Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform allows individuals to invest in commercial real estate with as little as $5,000. "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 Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Half of Amazon warehouse workers struggle to cover food, housing costs, report finds 2024-05-16 02:43:00+00:00 - Roughly half of frontline warehouse workers at Amazon are having trouble making ends meet, a new report shows. The study comes five years after the online retailer raised minimum hourly wages to $15. Fifty-three percent of workers said they experienced food insecurity in the previous three months, while 48% said they had trouble covering rent or housing costs over the same time period, according to a report from the Center for Urban Economic Development at the University of Illinois Chicago. Another 56% of warehouse workers who sort, pack and ship goods to customers said they weren't able to pay their bills in full. "This research indicates just how far the goalposts have shifted. It used to be the case that big, leading firms in the economy provided a path to the middle class and relative economic security," Dr. Sanjay Pinto, senior fellow at CUED and co-author of the report, said in a statement Wednesday. "Our data indicate that roughly half of Amazon's front-line warehouse workers are struggling with food and housing insecurity and being able to pay their bills. That's not what economic security looks like." Despite working for one of the largest and most profitable companies in the U.S., Amazon warehouse employees appear to be so strained financially that one-third has relied on at least one publicly funded assistance program, like the Supplemental Nutrition Assistance Program, or SNAP. The report's data reveals what appears to be a gulf between what these workers earn and any measure of economic stability. The researchers included survey responses from 1,484 workers in 42 states. The Ford Foundation, Oxfam America and the National Employment Law Project backed the work. Linda Howard, an Amazon warehouse worker in Atlanta, said the pay for employees like herself pales in comparison to the physical demands of the job. "The hourly pay at Amazon is not enough for the backbreaking work ... For the hard work we do and the money Amazon makes, every associate should make a livable wage," she said in a statement. The report also highlights the financial destruction that can occur when warehouse workers take unpaid time off after being hurt or tired from the job. Sixty-nine percent of Amazon warehouse workers say they've had to take time off to cope with pain or exhaustion related to work, and 60% of those who take unpaid time off for such reasons report experiencing food insecurity, according to the research. "The findings we report are the first we know of to show an association between the company's health and safety issues and experiences of economic insecurity among its workforce," said Dr. Beth Gutelius, research director at CUED and co-author of the report. "Workers having to take unpaid time off due to pain or exhaustion are far more likely to experience food and housing insecurity, and difficulty paying their bills." Amazon disputed the survey's findings. "The methodology cited in this paper is deeply flawed – it's a survey that ignores best practices for surveying, has limited verification safeguards to confirm respondents are Amazon employees, and doesn't prevent multiple responses from the same person," a spokesperson for Amazon said in a statement to CBS MoneyWatch. The company added that its average hourly pay in the U.S. is now $20.50. In April, the company criticized earlier research from the groups that focused on workplace safety and surveillance at Amazon warehouses. "While we respect Oxfam and its mission, we have strong disagreements with the characterizations and conclusions made throughout this paper — many based on flawed methodology and hyperbolic anecdotes," Amazon said in part of the earlier research. Amazon also cast doubt on the veracity of the responses used in the Oxfam report; the company said it believed researchers could not verify that respondents actually worked for Amazon.

Nissan data breach exposed Social Security numbers of thousands of employees 2024-05-15 22:46:00+00:00 - Nissan suffered a data breach last November in a ransomware attack that exposed the Social Security numbers of thousands of former and current employees, the Japanese automaker said Wednesday. Nissan's U.S.-based subsidiary, Nissan North America, detailed the cyberattack in a May 15 letter to affected individuals. In the letter, Nissan North America said a bad actor attacked a company virtual private network and demanded payment. Nissan did not indicate whether it paid the ransom. "[U]pon learning of the attack, Nissan promptly notified law enforcement and began taking immediate actions to investigate, contain and successfully terminate the threat," the car maker said in the letter, adding that "Nissan worked very closely with external cybersecurity professionals experienced in handling these types of complex security incidents." Nissan North America also notified state officials across the U.S. of the attack, noting that data belonging to more than 53,000 current and former workers was compromised. But the company said its investigation found that affected individuals did not have their financial information exposed. Nissan North America "has no indication that any information has been misused or was the attack's intended target," the automaker said in its letter. Ransomware attacks, in which cybercriminals disable a target's computer systems or steal data and then demand payment to restore service, have become increasingly common. One cybersecurity expert said someone likely got a password or multi-factor authentication code from an existing Nissan employee, enabling the hacker to enter through the company's VPN. "It is unfortunate that the breach ended up involving personal information, however Nissan has done the right thing by continuing to investigate the incident and reporting the update," Erich Kron, a cybersecurity awareness advocate at KnowBe4, told CBS MoneyWatch in an emailed statement. "In this case, targeting the VPN will often help bad actors avoid detection and bypass many of the organizational security controls that are in place."

MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme 2024-05-15 21:51:00+00:00 - Washington — A pair of brothers from New York and Boston were taken into federal custody Tuesday, accused by prosecutors of devising a novel criminal scheme to steal about $25 million in cryptocurrency from a commonly used blockchain, according to a newly unsealed indictment. Anton and James Peraire-Bueno were charged with wire fraud and conspiracy to commit money laundering. Investigators accused them of spending months plotting their theft within the Ethereum blockchain, baiting their victims and establishing shell companies to hide their illicit profits. According to charging documents, the pair studied math and computer science "at one of the most prestigious universities in the country," which prosecutors said afforded them a unique set of skills that allowed them to carry out the first-of-its-kind endeavor in a matter of seconds. James Peraire-Bueno is listed as a 2021 graduate of the Massachusetts Institute of Technology, and the MIT Registrar's Office confirmed that Anton Peraire-Bueno earned a B.S. in computer science and engineering in February 2024, and James Peraire-Bueno earned a B.S. in mathematics, computer science and aerospace engineering in June 2019, as well as a M.S. in aeronautics and astronautics in June 2021. The brothers allegedly started laying the groundwork in December 2022, engaging in what investigators called a "baiting" operation that targeted three specific victim traders on the digital Ethereum platform. They are specifically accused of exploiting the "validators" on the blockchain, vital components of the integrity and security of transactions. "In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims' cryptocurrency," prosecutors alleged in court documents. Investigators said the defendants' plot took months to plan but just 12 seconds to execute, allegedly raking in approximately $25 million from their unwitting victims. From April and June of last year, Peraire-Buenos are accused of laundering their money through shell companies. Prosecutors said the duo even rejected repeated requests from a victim, the victim's attorney and an Ethereum representative to return the cryptocurrency. They were arrested on Tuesday and are expected to make their initial appearances in New York and Boston federal courts on Wednesday. "As cryptocurrency markets continue to evolve, the Justice Department will continue to root out fraud, support victims, and restore confidence to these markets," Deputy Attorney General Lisa Monaco said in a statement. Attorneys for the brothers could not be immediately identified.

More employees are cheating on workplace drug tests. Here's how they do it. 2024-05-15 21:45:00+00:00 - Cannabis industry expects reclassification of marijuana by Justice Dept. to help business Cannabis industry expects reclassification of marijuana by Justice Dept. to help business 04:08 A record number of U.S. workers are cheating on employer drug tests by tampering with urine samples or using other means to evade detection, new research shows. The percentage of employees who tried to fake the results of workplace drug screenings jumped more than six-fold in 2023 from the previous year, according to Quest Diagnostics, a national drug testing company. The surge in workers trying to hide their drug use comes as more states across the U.S. legalize recreational marijuana use. The shifting legal environment and changing societal norms around cannabis use is forcing employers to review their drug-testing policies. The chief aim of employer-mandated drug tests is to ensure a safe workplace, while recreational drug use can also affect worker productivity. "Workforce drug testing exists because it's intended as a deterrence mechanism," Dr. Suhash Harwani, senior director of science for workforce health solutions at Quest, told CBS MoneyWatch. "That's why it was founded — to ensure workplace safety." Quest's analysis of lab data also found that the drug positivity rate for the overall U.S. workforce remained at a record high of 4.6%, up from a low of 3.5% between 2010 and 2012. As of April 2024, recreational marijuana is legal in 24 states, or nearly half the country, according to the Pew Research Center. How workers cheat Workers typically used one of two methods to foil an employer's drug testing protocols: substituting their urine specimens by replacing them with synthetic formulas or even animal urine, or submitting invalid specimens, suggesting they'd been tampered with in order to conceal drug use. "Given the growing acceptance and use of some drugs, particularly marijuana, it may be unsurprising that some people feel it necessary to try and cheat a drug test," Dr. Harwani said in a statement. "It is possible that our society's normalization of drug use is fostering environments in which some employees feel it is acceptable to use such drugs without truly understanding the impact they have on workplace safety." Some experts expressed concern about the findings, saying they underline a need to improve drug testing policies and procedures. "Drug tests are an important tool employers have to keep everyone in communities safe," Katie Mueller, senior program manager at the National Safety Council, told CBS MoneyWatch. "When policy and procedure fails us or people make decisions to alter their tests for whatever reason, it puts everyone at risk." Regarding the widening push to legalize cannabis, Mueller added that "we need to have a really open dialogue with employees, employers and lawmakers about the impacts of legalization, and how it's trickling down to the workplace." Dr. Harwani said there could be better ways of testing employees and job candidates for drug use than relying on urine samples. For example, the U.S. Department of Transportation recently approved oral fluid testing to detect drug use, in addition to using urine samples. Whereas urine samples are submitted in a private space, oral fluids are collected directly by lab technicians. And while drugs can take time to show up in a donor's urine sample, they can be detected in saliva immediately after they are used.

McDonald's to launch $5 meal promo in effort to reinvigorate sales 2024-05-15 21:37:00+00:00 - What to know about California's new fast food minimum wage McDonald's plans to launch a $5 meal promo in an effort to lure back customers scared away by recent price hikes to its menu. The limited-time offer is slated to begin June 25 and will last about a month, a source familiar with the promotion told CBS MoneyWatch on Wednesday. The value meal will include a choice of either a McChicken, a McDouble or four-piece chicken nuggets as well as fries and a drink. "We know how much it means to our customers when McDonald's offers meaningful value and communicates it through national advertising. That's been true since our very beginning and never more important than it is today," McDonald's USA told CBS MoneyWatch. Bloomberg first reported McDonald's plans to offer a $5 promo meal, which required approval from franchise owners. Palmaccio and other franchise owners gave the new promotion their consent this week, with McDonald's thanking those operators in an internal message Tuesday night. "Great value and affordability have always been a hallmark of McDonald's brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it," McDonald's franchise owner John Palmaccio said. Talk of the upcoming $5 meal promo comes weeks after McDonald's executives reported slower growth in foot traffic at its restaurants. Some inflation-weary customers are cutting back on fast-food dining after many chains boosted menu item prices. Between 2014 and 2024, Popeye's, Jimmy John's and Subway hiked their food prices 86%, 62% and 39%, respectively. Fast-food chains point to rising labor costs and costs of food as the key factors driving up prices. Still, the hikes appear to be particularly harmful to low-income Americans. A January poll by consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, pointing to cost as a concern. Casual dining restaurants — like Applebee's and IHOP — are also feeling the absence of low-income Americans. The company has to be "laser-focused" on keeping prices affordable to convince customers to return, McDonald's CEO Chris Kempczinski said during an April 30 earnings call with analysts and investors. "Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry," Kempczinski added. "[I]t's imperative that we continue to keep affordability at the forefront for our customers." McDonald's, the nation's largest fast-food chain, with more than 2 million people employed at its 14,300 restaurants and another 150,000 employees at its corporate offices. A majority of McDonald's locations are owned and operated by franchisees. To be sure, a $5 meal wouldn't necessarily make McDonald's a pioneer in the fast-food industry. In 2015, Wendy's introduced the 4 for $4 meal that includes a small hamburger, four-piece chicken nuggets, small fries and a small drink. In 2019, Wendy's added its $5 Biggie Bag which includes a choice of sandwich or four chicken nuggets, and a small order of fries and a small drink.

AST SpaceMobile Stock Is Blasting Off After The Bell: Here's Why - AST SpaceMobile (NASDAQ:ASTS) 2024-05-15 21:36:00+00:00 - Loading... Loading... AST SpaceMobile Inc ASTS shares are ripping higher in Wednesday’s after-hours session after the company reported first-quarter financial results and announced a definitive commercial agreement with AT&T Inc T. What Happened: AST SpaceMobile reported first-quarter sales of $500,000, which missed analyst estimates of $5.5 million, according to data from Benzinga Pro. The company reported an adjusted loss of 16 cents per share, which beat estimates for a loss of 21 cents per share. “I am grateful for our global team’s unwavering dedication and hard work as we prepare for the launch of our first five commercial satellites and initial commercial service. We are set up for an exciting summer ahead as we push forward on all fronts of our business,” said Abel Avellan, chairman and CEO of AST SpaceMobile. The after-hours surge in shares of AST SpaceMobile appears to be in reaction to the company’s new agreement with AT&T. AST SpaceMobile said it entered into a definitive commercial agreement with AT&T to provide a space-based broadband network direct to everyday cell phones. The two companies were previously working together under a Memorandum of Understanding. The new agreement extends the collaboration until 2030. “This is not just one small step, but one giant leap towards enhanced connectivity for consumers and businesses across the country,” the company said in a press release. AST SpaceMobile plans to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit this summer to enable commercial service. Management will hold a conference call to discuss its quarterly results and new announcements at 5 p.m. ET. See Also: Cisco Q3 Earnings: Revenue Beat, EPS Beat, Splunk Tailwinds, ‘Stabilization Of Demand’ And More ASTS Price Action: AST SpaceMobile shares were up 42.7% after hours at $3.40 at the time of writing, according to Benzinga Pro. Photo: PIRO from Pixabay.

Warren Buffett's company reveals its mystery bet is a nearly $7 billion stake in insurance giant Chubb 2024-05-15 21:32:33+00:00 - Warren Buffett's secret stock is Chubb, an insurance giant. Berkshire Hathaway quietly built a 6.4% stake in under nine months, worth $6.7 billion as of March. Buffett and his team also slashed their biggest stock bet, Apple, by 13% last quarter. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement Warren Buffett has finally revealed his company's mystery stock: Chubb. The famed investor's Berkshire Hathaway first bought into the insurance giant in the third quarter of 2023, but secured regulatory permission to keep the holding confidential until it finished building its stake. Buffett's company initially purchased 8.1 million Chubb shares worth $1.7 billion at the end of September, then boosted the position to 20.1 million shares valued at $4.5 billion at December's close. It raised the bet to 25.9 million shares worth $6.7 billion at the end of March, SEC filings revealed on Wednesday. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .