Latest News
See the latest news and get GPT analysis of articles
A fire burns down a shopping complex housing 1,400 outlets in Poland’s capital 2024-05-12 06:44:57+00:00 - WARSAW, Poland (AP) — A major fire broke out Sunday morning in a vast shopping complex in the Polish capital that housed some 1,400 shops and service outlets and where many of the vendors were from Vietnam. Huge plumes of black smoke could be seen rising over the vast area. The fire department said that more than 80% of the Marywilska 44 shopping complex burned in the Bialoleka district of Warsaw, and that the roof caved in. Police reported no injuries, but traders were in despair at the loss of their livelihoods. The Gazeta Wyborcza daily reported that some Vietnamese vendors wanted to enter to save their goods from the complex, but were blocked by security guards. The Association of Vietnamese Entrepreneurs in Poland said the blaze meant “great financial losses for merchants,” calling it a “terrible tragedy for thousands of merchants and their families.” Chemical and environmental rescue specialists were among the large numbers of rescue officials who took part in the operation. Authorities sent a text message warning Warsaw residents about the fire, and telling them to stay home with the windows closed. Mirbud, an industrial construction company listed on the Warsaw Stock Exchange, owns the shopping center. Warsaw police said it had begun investigating the blaze, which began at around 3:30 a.m. local time (0130 GMT), but hadn’t yet determined the cause. The Warsaw city administration planned on Monday to discuss financial support for the small traders whose livelihoods were destroyed. Shopping centers and large shops are usually closed on Sunday because of a ban on trade imposed by the previous government, which had close ties to the Catholic church. However, small business owners are exempt from the ban, and many of the small shops at the center worked on Sundays.
At the Home of BTS, Turmoil Over a Rising K-Pop Star 2024-05-12 04:01:20+00:00 - The video had none of the hallmarks of K-pop. No catchy tune, no snazzy outfits, no slick dance routines. Definitely no stars. It was set in an unremarkable auditorium with plain white tables and a large projector screen. But it included screenshots of chats between two power players in the industry and instantly became the talk of the K-pop world. It was the live broadcast of a two-hour emotional tell-all delivered last month by Min Hee-Jin, the producer of NewJeans, arguably today’s hottest K-pop act. She had called a news conference to dispute accusations of corporate malfeasance by her employer, Hybe, the K-pop colossus behind BTS. The unusually public and hostile feud — which has included allegations of plagiarism, chart rigging and shamanism — has led to hundreds of millions of dollars being wiped off Hybe’s market value. And it has cast a cloud over Hybe’s relationship with a rising star, NewJeans, while its biggest act, BTS, is on hiatus.
Federal judge blocks White House plan to curb credit card late fees 2024-05-12 00:30:00+00:00 - A federal judge in Texas has blocked a new government rule that would slash credit card late-payment charges, a centerpiece of the Biden administration's efforts to clamp down on "junk" fees. Judge Mark Pittman of the U.S. District Court for the Northern District of Texas on Friday granted an injunction sought by the banking industry and other business interests to freeze the restrictions, which were scheduled to take effect on May 14. In his ruling, Pittman cited a 2022 decision by the U.S. Court of Appeals for the Fifth Circuit that found that funding for the Consumer Financial Protection Bureau (CFPB), the federal agency set to enforce the credit card rule, is unconstitutional. The regulations, adopted by the CFPB in March, seek to cap late fees for credit card payments at $8, compared with current late fees of $30 or more. Although a bane for consumers, the fees generate about $9 billion a year for card issuers, according to the agency. After the CFPB on March 5 announced the ban on what it called "excessive" credit card late fees, the American Bankers Association (ABA) and U.S. Chamber of Commerce filed a legal challenge. The ABA, an industry trade group, applauded Pittman's decision. "This injunction will spare banks from having to immediately comply with a rule that clearly exceeds the CFPB's statutory authority and will lead to more late payments, lower credit scores, increased debt, reduced credit access and higher APRs for all consumers — including the vast majority of card holders who pay on time each month," ABA CEO Rob Nichols said in a statement. Consumer groups blasted the decision, saying it will hurt credit card users across the U.S. "In their latest in a stack of lawsuits designed to pad record corporate profits at the expense of everyone else, the U.S. Chamber got its way for now, ensuring families get price-gouged a little longer with credit card late fees as high as $41," Liz Zelnick of Accountable.US, a nonpartisan advocacy group, said in a statement. "The U.S. Chamber and the big banks they represent have corrupted our judicial system by venue shopping in courtrooms of least resistance, going out of their way to avoid having their lawsuit heard by a fair and neutral federal judge." According to consumer advocates that support the CFPB's late-fee rule, credit card issuers hit customers with $14 billion in late-payment charges in 2019, accounting for well over half their fee revenue that year. Financial industry critics say such late fees target low- and moderate-income consumers, in particular people of color. Despite Pittman's stay on Friday, analysts said the legal fight over late fees is likely to continue, with the case possibly heading to the Supreme Court. "We believe this opens the door for the CFPB to seek to lift the preliminary injunction if the Supreme Court rules in the coming weeks that Congress properly funded the agency," Jaret Seiberg of TD Cowen Washington Research Group said in a report following the decision. "It is why we believe this is not the end of the fighting over whether the fee cut will take effect before full consideration of the merits of the lawsuit." —With reporting by CBS News' Alain Sherter
Target to limit Pride Month collection after last year’s anti-trans attacks 2024-05-11 21:11:19+00:00 - Target announced a muted rollout of its Pride Month collection this year in the wake of 2023’s vicious anti-trans campaign, launched by conservatives, that the company said endangered its employees and affected sales. In a statement Thursday, Target said its Pride collection will be available online and in select stores “based on historical sales performance.” As The New York Times reported, the rollout will be a marked departure from how the retailer approached marketing its Pride merchandise in previous years, when those products were prominently displayed in stores. Target’s statement about its 2024 Pride Month plans also only refers to “adult apparel.” Last year’s boycott, fueled by attacks from right-wing political activists like Matt Walsh and Charlie Kirk, centered on false claims that the retailer was selling “tuck-friendly” swimsuits for children and satanic children’s clothing. At the time, the company said the largely social media–fueled campaign had translated to real-life confrontations, as people harassed its employees and tore down displays in stores. Target later said its second-quarter sales dropped by 5%, though it did not specify how much of that could be attributed to the anti-trans campaign. Target has put out Pride collections for many years now, but last year was the first time the company faced any backlash. Bud Light’s sales were also affected last year when conservatives launched a boycott after trans influencer Dylan Mulvaney filmed sponsored content for the beer. These boycotts have coincided with concerted GOP efforts to pass harmful anti-trans legislation and fearmonger about “wokeness.” And judging by Target’s decision to pare back its Pride Month rollout this year, the right’s manufactured outrage behind the culture war has had an impact.
Northern Lights Set to Return During Extreme Solar Storm’s 2nd Night 2024-05-11 20:00:06+00:00 - Night skies in many parts of the Northern Hemisphere are expected to bloom again on Saturday night with the vivid colors of the northern lights, or aurora borealis, as a powerful geomagnetic storm caused by a hyperactive sun persists through the weekend. The National Oceanic and Atmospheric Administration, which monitors space weather, said in an update on Saturday that it continued to observe solar activity that could lead to periods of “severe-extreme” geomagnetic storms. The federal agency first issued a warning on Friday as bursts of material from the sun’s surface traveled into Earth’s atmosphere, causing irregularities in power, navigation and communication systems. Major power utilities had largely prepared their electrical grids for the solar storm, and their customers were unaffected. For most people, the solar storm was a gift: It caused ribbons of pink, purple and green light across night skies of much of the United States, Canada and Europe. Where evening skies are clear on Saturday, the lights can be expected again.
Kavanaugh: Unpopular Supreme Court rulings can become ‘the fabric of constitutional law’ 2024-05-11 19:00:41+00:00 - In remarks at a conference in Texas on Friday, Supreme Court Justice Brett Kavanaugh said rulings from the tumultuous period between the 1950s and ’60s, though unpopular at the time, eventually came to be accepted as “the fabric of American constitutional law.” Kavanaugh was referring to the court under Chief Justice Earl Warren, which issued landmark rulings that expanded civil rights in the U.S. and is widely seen as having shaped key aspects of modern American society. According to The Associated Press, Kavanaugh pointed to rulings like Brown v. Board of Education and others on free speech and criminal rights to argue that the Warren Court was “unpopular basically from start to finish from ’53 to ’69.” “What the court kept doing is playing itself, sticking to its principles,” he said. “And you know, look, a lot of those decisions [were] unpopular, and a lot of them are landmarks now that we accept as parts of the fabric of America and the fabric of American constitutional law.” His comment about unpopular rulings may have been an allusion to the court’s deeply polarizing decision to overturn Roe v. Wade in 2022. The ruling was met with widespread public disapproval and has left a messy patchwork of state-level abortion laws that have resulted in a dearth of access to reproductive care in large parts of the country. The current Supreme Court, with its conservative majority, is itself hugely unpopular. Since the Pew Research Center began collecting public opinion on the high court in 1987, favorable views of the institution have reached an all-time low, and unfavorable views are at a historic high of 54% of respondents. The justices are now considering rulings on a slate of major cases, including ones that will determine the scope of presidential power — and will have huge repercussions for the presidential election.
McDonald's is considering a $5 meal to win back customers. Here's what you'd get. 2024-05-11 18:04:00+00:00 - New numbers show California's fast food wage increase's impact on prices New numbers show California's fast food wage increase's impact on prices 02:40 McDonald's is considering adding a $5 meal to its menu across the U.S. as a way to coax customers back into its restaurants, according to a source familiar with the plans. The meal could include a choice of either a McChicken, a McDouble or four-piece chicken nuggets as well as fries and a drink, the person told CBS MoneyWatch. Leaders at McDonald's corporate offices are still in talks with franchise owners about introducing the $5 meal, the source said. The discussions about rolling out a new budget meal come just 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, ranging from McDonald's to Subway, have boosted prices in recent years to offset higher labor and ingredient costs. 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 prices Among all U.S. fast food chains, McDonald's raised its menu prices the most between 2014 and 2024, according to personal finance website FinanceBuzz. About 25% of people who make under $50,000 are cutting back on fast food, pointing to cost as a concern, a January poll by consulting firm Revenue Management Solutions found. Restaurant chains point to rising labor costs as a key factor driving up prices. Still, industry analysts said fast food chains need to court low-income customers if they wish to continue hitting revenue and earnings projections. "When you look at McDonald's, they're not getting a majority of high-income customers — the middle- and lower-income class are the bulk of their business," analyst Mark Kalinowski, president of Kalinowski Equity Research, told CBS MoneyWatch this month. "They need to be cautious with their spending, and that's what you're seeing right now." 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, and in 2019, the restaurant added its $5 Biggie Bag. The latter deal includes a choice of sandwich, four chicken nuggets, a small order of fries and a small drink. McDonald's, the nation's largest fast food chain, employs more than 2 million people at its 14,300 restaurants, and another 150,000 employees at its corporate offices.
Nike announces signature shoe for A'ja Wilson of the Las Vegas Aces 2024-05-11 17:26:00+00:00 - A'ja Wilson of the WNBA's Las Vegas Aces is getting her own Nike signature shoe. The news was announced on Saturday in a release from Nike, with Wilson showcasing a sweatshirt in a photo on X that read, "Of Course I Have a Shoe Dot Com." The answer to the question 💅🤭 pic.twitter.com/WgXSDMmbwE — A'ja Wilson (@_ajawilson22) May 11, 2024 In the news release, Nike said they were "proud to introduce A'ja Wilson as the newest member of the brand's signature family, marking the next chapter of partnership with one of basketball's greatest athletes." Wilson worked side-by-side with Nike's team of innovation, product, and design experts to create a signature shoe collection "inspired by her distinctive style, incredible performance and unapologetic realness," the news release said. "As one of the most iconic basketball players of her generation, of course, she got a shoe." Wilson, a South Carolina native who won back-to-back WNBA championships with the Aces - among her many other accolades, applauded the partnership. "It's been incredible working with Nike toward a dream of having my collection, and it really is an honor to take this next step and become a Nike signature athlete," Wilson said in the news release. "From the logo to the look of the shoe and the pieces throughout the collection, we've worked to make sure every detail is perfectly tuned to my game and style." Wilson joins a roster of women athletes partnered with Nike to develop signature collections, including Serena Williams, Naomi Osaka and Sabrina Ionescu. Wilson said she hopes her collection is empowering for women. "I hope when girls wear this shoe, they believe in themselves," she said. "I want them to hopefully lace them up, feel powerful and understand that nobody can stop them from their dreams. Set those goals high. Go get them — that's the biggest thing." The signature collection will include pieces in women's, men's and kid's sizing. The collection will be released globally on nike.com and SNKRS, and at select retailers in 2025. Wilson and the Aces kick off their season next week.
Rudy Giuliani’s radio talk show gets axed after one too many 2020 election lies 2024-05-11 16:16:17+00:00 - Rudy Giuliani has paid dearly for spreading lies about the 2020 election. And now they appear to have cost him a main source of income: After defying the station’s repeated warnings to stop questioning election results on his WABC radio talk show, Giuliani was suspended and his talk show axed on Friday. Giuliani had been warned twice about spreading false claims of voter fraud, WABC’s billionaire Republican owner John Catsimatidis told NBC News. Catsimatidis said he felt “very bad” about canceling Giuliani’s show “because he is still America’s mayor, but we need to know where to draw the line.” Giuliani, however, accused WABC of violating his First Amendment rights. He also suggested that if there had been a policy against his spreading misinformation, he would’ve violated it so often that it must not have been genuine anyway. “This directive is a clear violation of free speech,” Giuliani said. “Obviously I was never informed on such a policy, and even if there was one, it was violated so often that it couldn’t be taken seriously.” Donald Trump’s former lawyer has for years used his WABC-AM radio show as a platform to spread election fraud claims. But it seems the specter of legal action may have led to a change of heart among the station’s management. In a warning letter to Giuliani, Catsimatidis cited new accusations against Giuliani this week from two Georgia poll workers who won a defamation suit against him last year. “We do not condone these actions, and do not want to be subject to the ramifications of your conduct under any circumstances,” Catsimatidis wrote. Catsimatidis also told The New York Times that Giuliani was openly defiant. “We warned him once. We warned him twice. And I get a text from him last night, and I get a text from him this morning that he refuses not to talk about it,” he said. “So he left me no option.” Giuliani’s show on WABC had been among his only sources of income. He brought in about $400,000 a year from the radio show, and he has some income from his podcast and a livestream broadcast, according to a report from the Times. Giuliani has also hawked unapproved supplements and a 9/11 shirt to make money. Due to his role in the 2020 election fraud scheme, his license to practice law in New York was suspended in 2021, and he may soon be barred from practicing in Washington, D.C., as well. Giuliani declared bankruptcy in December after a judge ordered him to pay the Georgia election workers $146 million in damages for defaming them after the 2020 election. He lost a post-trial motion to dismiss that judgment in mid-April, which he has appealed. During the initial trial, his lawyer told jurors that the damages being sought “will be the end of Mr. Giuliani.”
Will Ukraine's Eurovision duo win the popular vote? 2024-05-11 15:20:19+00:00 - The Eurovision Song Contest is coming up on its 70th anniversary in a few years, but it’s only since the 2010s that the once Eurocentric event has become a true global phenomenon. The organizers have emphasized the sparkly, clubby extravaganza’s “safe” messages of peace and love and global togetherness. This year’s theme is literally “united by music.” But fans can tell you such posturing is mostly nonsense. Eurovision isn’t successful because it’s apolitical; it’s successful because it is a safe outlet for politics. Its musical battles have been giving viewers a way to process their feelings about their neighbors for decades, whether it’s voting for Israel to win in 1978 after the invasion of Lebanon or handing the trophy to Yugoslavia in 1989 as the USSR teetered on the brink of collapse. Most of these countries cannot afford to fight wars, let alone win them without outside help, so expressing their displeasure over squabbles via voting on Europop is far more cost-effective. Now, in our post-“American Idol” reality show reality, this political release is available worldwide. Most of these countries cannot afford to fight wars, let alone win them without outside help, so expressing their displeasure over squabbles via voting on Europop is far more cost-effective. In recent times, voters gave the U.K. zero points across the board the same year Brexit finally went into effect, and regularly shut out Germany, arguably because they hate the European Union tax standards set by the union’s largest player. But no country has been frustrated by the voters more than Russia. Russian artists have made it to many finals since their leaders invaded Ukraine in 2014 — only to be blocked from winning by low popular vote scores. The European Broadcast Union finally kicked the country out after the 2022 invasion of Ukraine. And speaking of Ukraine, that nation’s act won in a landslide in 2022 — but not necessarily because of its entry. The war wasn’t over by the time the contest rolled around the next year, so runner-up U.K. hosted for Ukraine. (The winning country hosts the next year’s competition.) Ukraine politely submitted something completely non-war-related that had little chance of winning, a tactic nations have used in the past to avoid back-to-back wins, and the expensive logistics that come with them. However, as the war continues, casualty counts rise on both sides and further aide for Ukraine falls out of favor with MAGA Republican lawmakers, Ukraine’s act has eschewed subtlety. Alyona Alyona and Jerry Heil’s “Teresa & Maria,” nominally about the Catholic saints and “hope,” features visuals that call to mind apocalyptic war. The song ends with both singers lying onstage among images of refugee mothers and babies, sleeping in a huddle for warmth. President Joe Biden might not watch Eurovision, but someone on his staff does. Ukraine’s delegation knows this show streams on Peacock. Since winning a competition slot, Alyona and Heil have made appearances raising funds for Ukraine’s military and have vowed to sell their Eurovision trophy to help rebuild a school destroyed by a Russian missile. Ukraine isn’t the only country with the opportunity to use this year’s contest as an effective propaganda tool; Israel’s act, Eden Golan, somewhat surprisingly made it out of the semifinals as well. However Golan’s original song “October Rain,” an overt piece on the attacks, was deemed too obvious by Eurovision’s producers, and was reworked to become “Hurricane.” It now no longer includes any staging or lyrics that could be construed as pertaining to the ongoing conflict. We shall see if global goodwill toward Ukraine will be enough to send its act back to the winner’s circle so soon after the nation’s 2022 win. Chances are many voters would prefer to vote for a different underdog this year, and the adorable (and talented) Baby Lasagna act from Croatia has been a huge hit. Eurovision’s ability to tap into these political currents, even as the organizers continue to deny this reality, is a key reason why audiences tune in year after year to an extremely strange global soap opera. This time, it just so happens to include dancing cows and cats, a boy band made of identical twins, a paean to the E.U. overlords, a man in a mullet and Daisy Dukes spraying pyrotechnics, and a coded but fairly overt plea for war funding. No wonder we can’t quit this competition.
MarketBeat Week in Review – 5/6 - 5/10 2024-05-11 11:00:00+00:00 - Key Points The April sell-off is bringing buyers into the market, at least for some stocks. It’s still a stock picker’s market; investors have less tolerance for companies that miss their earnings numbers or guidance. Take a look at some of our most popular articles from this week. 5 stocks we like better than Walmart Sell in May, then go away got pushed to the side during the first full week of trading for the month. Investors were mostly in a buying mood, pushing the S&P 500 to within 60 points of its all-time high. If you're looking for even better news, there's some evidence that the winners are beginning to move beyond the tech sector. But finding those winners comes down to earnings. Companies delivering strong earnings reports and backing them up with solid guidance are being rewarded. The good market vibes could change next week when new reads on inflation are released. Investors will also get a read on consumer sentiment when retail stocks such as Walmart Inc. NYSE: WMT and The Home Depot Inc. NYSE: HD report earnings. The MarketBeat team will be covering those earnings reports as well as other stocks and stories moving the markets. Here are some of our most popular articles from this week. Get Walmart alerts: Sign Up Articles by Jea Yu In this week's options trading focus, Jea Yu explained the long strangle strategy, which is popular during earnings season as stocks tend to see significant price moves. Long strangles allow investors to bet on the magnitude, not the direction, of the underlying stock price. Yu also helped investors understand how the mega-trend towards electrification 2.0 can benefit Generac Holdings Inc. NYSE: GNRC. The stock has been struggling as demand normalizes for its signature home generators. However, the company has a significant role to play as the United States updates an aging electrical grid, including the demand that will come from data centers. Weight loss drugs continue to be a popular investment even as the cost of GLP-1 drugs is shrinking. This week, Yu explained why investors should view any pullback in Eli Lilly and Co. NYSE: LLY as a buying opportunity. Articles by Thomas Hughes With all the things to consider when researching a stock, it can be easy to overlook the person in charge. This week, Thomas Hughes focused on three companies that are good buying opportunities because of the Chief Executive Officer's leadership. While shares of The Walt Disney Company NYSE: DIS are down following earnings, Hughes broke down the numbers and explained why the magic is returning to the company -- and why investors should use this post-earnings dip as a buying opportunity. On the other hand, Hughes explained why Roblox Corporation NYSE: RBLX is losing its magic touch. The company, which designs games targeted at kids ages 9 to 12, saw its stock drop sharply despite a solid earnings report. The problem is that the growth isn't nearly fast enough to meet the elevated expectations that come from the metaverse. Articles by Sam Quirke One of the week's most closely watched earnings reports came from Arm Holdings plc NASDAQ: ARM. As you'll recall, ARM stock rocketed over 100% after its February earnings report. But despite a beat on the top and bottom lines, weaker-than-expected guidance caused ARM stock to drop. Sam Quirke explained why investors can use this as a buying opportunity. Guidance was also an issue with Uber Technologies Inc. NYSE: UBER. Quirke pointed out that the ride-sharing company's earnings report was solid, but shares are being repriced after the company issued weaker forward guidance. However, once that price discovery shakes out, UBER stock may be a buying opportunity for risk-tolerant investors. Articles by Chris Markoch As expected, Palantir Technologies Inc. NYSE: PLTR was a market mover, but not in the way that bulls had hoped for. Chris Markoch analyzed the company's earnings report, which had great headline numbers. But when Palantir guided for slightly lower revenue, traders seized the opportunity to take profit and Markoch explained that Palantir is a magnet for traders and long-term investors. The traders won the day this week, but the long-term outlook for Palantir remains strong. Articles by Ryan Hasson Micron Technology Inc. NASDAQ: MU was a top-performing stock heading into earnings, which had the company set up for potential disaster if it didn't deliver on earnings. But not to worry, Micron Technology beat estimates and raised its guidance. In his article, Ryan Hasson analyzed what investors should do next. Hasson also looked at the recent resurgence in Chinese stocks after the Chinese economy displayed significant growth in its most recent quarter. Hasson explained the opportunity that exists with three heavyweight Chinese stocks listed in the United States. Through the first quarter of 2024, many biotech stocks have lagged the market -- but not all. Hasson analyzed three of the best-performing biotech stocks and why there could be more upside ahead. Articles by Gabriel Osorio-Mazilli There are signs that the market is shifting from growth to value. Gabriel Osorio-Mazilli highlighted three value stocks that are currently undervalued but give investors reason to believe they can provide substantial growth. As inflation continues to affect the price of new cars, auto parts stocks remain attractive for cyclical investors. Osorio-Mazilli analyzed the stock of three auto parts makers that will benefit not only from consumer demand but also from rising commodity prices on steel and aluminum. And while you're considering how rising commodity prices can benefit the auto parts makers, you may also want to look at these three metals stocks that Osorio-Mazilli believes could be poised for double-digit growth when, or if, the Federal Reserve cuts interest rates sometime this year. 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
Why Trump's alleged Mar-a-Lago meeting with oil CEOs raises flags 2024-05-11 10:00:40+00:00 - Former President Donald Trump reportedly held a meeting with some of the country’s biggest oil executives at Mar-a-Lago where, according to a remarkable report in The Washington Post, it seems he was trying to sell the future of the planet in exchange for filthy lucre. According to the Post, after an oil executive there complained that the hundreds of millions they had spent lobbying President Joe Biden hadn’t influenced his position on environmental regulations, Trump offered to make a deal with the executives that left many of them stunned: You all are wealthy enough, he said, that you should raise $1 billion to return me to the White House. At the dinner, he vowed to immediately reverse dozens of President Biden’s environmental rules and policies and stop new ones from being enacted, according to people with knowledge of the meeting, who spoke on the condition of anonymity to describe a private conversation. Sources told the Post that Trump also said this apparent quid pro quo was a “deal” for the executives because of the savings they’d get when, assuming he wins, he guts taxes and regulations. On a policy level, this is horrifying. Trump appears eager to accelerate worldwide climate disaster if it helps fill his campaign war chest. One does not have to think Biden’s climate policy is anywhere close to perfect to see how much more dangerous Trump’s worldview is in this policy area. Even if Trump’s behavior doesn’t meet the threshold for corruption according to the letter of the law, the appearance of corruption is still damaging to civic norms. But the way Trump allegedly presented the deal is also poisonous. When powerful politicians meet behind closed doors with corporate executives and lobbyists looking to advance their interests, it’s always slimy business. But there are still norms and laws regulating how those behind-closed-door conversations should be conducted. And the Post’s reporting suggests that Trump transgressed those norms — potentially so severely that it breaks the law, according to some government watchdogs. “What’s OK is the way donations are supposed to work, which is people give money to elect politicians who agree with them on policy positions,” said Jordan Libowitz, vice president for communications at Citizens for Responsibility and Ethics in Washington. “What’s much less OK is a candidate essentially saying, ‘My policy positions are for sale. My acts in office are for sale. And here’s what it would cost you to buy my actions.’” Libowitz said CREW’s lawyers are looking into whether Trump’s reported actions violate any federal bribery statutes. Trump already has a track record of gutting environmental regulations, championing fossil fuels and pulling the U.S. out of climate agreements. If he’d said he believes regulations are bad and renewable energy is overhyped and that he hoped those who agreed would donate to his campaign, then he’d be operating within the normal parameters of courting donors. But the Post’s report suggests Trump flipped around the ask, proposing instead that a specific amount of money could ensure that he would take specific action. Even though Trump already leans toward disastrous environmental policies, the “policy for sale” ethos could still influence how much he prioritizes the interests of Big Oil if he’s elected again. And even if Trump’s behavior doesn’t meet the threshold for corruption according to the letter of the law, the appearance of corruption is still damaging to civic norms and only serves to normalize impropriety. Regardless of how oil executives respond to Trump’s reported shakedown attempt, reports of his ask at that meeting are sure to be heard by all kinds of wealthy donors across different sectors. Trump has a well-documented appetite for transactional politics, and now he’s desperate for cash as he gets pummeled by his lawyers’ fees and legal penalties. Some surmise that Trump’s courting of a megadonor may have influenced his astonishing flip-flop from wanting to ban TikTok to saying it should be left alone. We’ve known for a long time that Trump will do anything it takes to advance his personal interests. But these acts that potentially cross the line into vulgar bribery are noteworthy not because they’ll necessarily make us think less of him, but because of the catastrophic consequences this kind of corrosion of democratic norms could have for everybody else on the planet.
Anti-abortion rights groups say they can reverse the abortion pill. That's fraud, some states say. 2024-05-10 23:46:00+00:00 - Some anti-abortion rights groups are selling a procedure called "abortion pill reversal," which they claim can help women halt medical abortions. That claim is now being challenged by state officials who allege the groups are veering into false advertising and fraud. Heartbeat International, an anti-abortion rights group, and 11 other anti-abortion organizations were sued Monday by New York Attorney General Letitia James, who alleged the organizations are making "false and misleading statements to advertise an unproven treatment." The complaint follows a similar lawsuit filed by California Attorney General Rob Bonta in September. Heartbeat has countersued, asking the courts to throw out California's lawsuit on the grounds that it infringes its First Amendment rights. It also asserts that abortion pill reversal is safe and effective. The litigation comes at a time when the so-called abortion pill — actually a combination of two drugs — accounts for almost two-thirds of abortions in the U.S., according to the Guttmacher Institute, which researches reproductive rights. More women are turning to medication abortion, rather than surgery, partly because it allows them to seek care privately and manage the process at home. Meanwhile, abortion access has faced growing restrictions across much of the U.S. following the Supreme Court's 2022 decision overturning Roe v. Wade. The high court is also currently considering a case that could ultimately curtail use of the abortion pill across the U.S. In taking aim at the anti-abortion groups, New York and California are turning to state laws that prohibit deceptive business practices as well as false advertising — in effect, both are asking courts to rule on whether the clinics' advertisements for abortion pill reversal treatment amount to fraud. New York and California also want the courts to block Heartbeat and affiliated anti-abortion clinics from continuing to promote abortion pill reversal because they are allegedly misleading consumers. For its part, Heartbeat International told CBS MoneyWatch that James' lawsuit is a "clear attempt to censor speech." "By singling out these organizations solely because they offer an alternative to abortion, she is not only violating their rights but also denying women access to care and support as they seek to try and continue their pregnancies," Heartbeat said in an email. What is "abortion pill reversal"? Medication abortion involves taking two pills: mifepristone, which was approved by the Food and Drug Administration in 2000, and misoprostol. To begin the process, a woman first takes mifepristone, which stops the pregnancy from growing. (The Supreme Court's case involving the abortion pill is focused on mifepristone.) About 24 to 48 hours after that, the woman takes misoprostol, which causes the uterus to contract and abort the fetus. As this process has become the most common abortion treatment, anti-abortion clinics have turned to promoting a technique they claim can "reverse" the effect of the abortion pill. But that claim is misleading because it implies the treatment can undo an abortion, James alleges. The anti-abortion clinics "imply the impossible — that fetal tissue that has been expelled from the uterus due to a completed abortion can be returned to the uterus. It cannot," the New York lawsuit alleges. In reality, the treatment is aimed at halting the medication abortion process midway by giving a woman a high dose of the hormone progesterone after she's taken the first pill but before she's ingested the second — at that point, an abortion hasn't yet occurred. Heartbeat International told CBS MoneyWatch the treatment has "saved" 5,000 babies of women who have sought to halt a medication abortion. It added that the cost of the treatment varies on the dose of progesterone used in the process. The group also vowed to "continue to offer support to those who seek it." Is abortion pill reversal safe? Heartbeat's website about abortion pill reversal claims the process is effective and says it "increases the chances" of a pregnancy continuing. The site also contends that the treatment can save 64% to 68% of pregnancies, although it only cites "initial studies" for the statistic, without identifying the specific research. According to James' suit, however, "no competent and reliable scientific evidence exists to substantiate these claimed success rates." As a result, the complaint alleges such claims may mislead consumers about the treatment's efficacy. The lawsuit also claims that Heartbeat and other anti-abortion clinics describe the process as "proven safe and essentially risk-free," while in fact the treatment hasn't been tested in any reputable medical study. In a response to CBS MoneyWatch, Heartbeat said the treatment "stands as a safe and effective option for women who change their minds immediately after taking the abortion pill, mifepristone." The group noted that progesterone, the hormone used in the treatment, is an FDA-approved medication that has been used "for decades to prevent miscarriage and preterm birth." Heartbeat added that its assertions are supported by "both scientific evidence and the lived experience of women who are holding their babies in their arms today after starting a chemical abortion and experiencing a successful reversal." However, medical experts agree that abortion pill reversal hasn't been proven safe, as the only double-blind, placebo-controlled, randomized clinical trial for the treatment had to be stopped after some women experienced "life-threatening complications like hemorrhage," said Dr. Stacy Sun, an obstetrician and gynecologist and a fellow with Physicians for Reproductive Health, a group of doctors that advocates for reproductive health. "This dangerous, non-evidence based regimen is used to prey on people making thoughtful decisions about their bodies, families and futures," Dr. Sun told CBS MoneyWatch. "It is infantilizing and manipulative." In its countersuit, Heartbeat said that its claims the treatment has been effective in 64% to 68% of pregnancies are based on a 2018 study by Dr. George Delgado, a family physician who created the abortion pill reversal treatment. But James' lawsuit notes that the study was based on tracking women who called the abortion pill reversal hotline and wasn't a randomized, placebo-controlled trial. Delgado told CBS MoneyWatch there are ethical issues with creating a clinical trial using placebos given that it would deal with pregnancy and potential abortion. He compared such challenges to that of studying CPR, which he said has also never had a placebo-controlled trial. "If someone is going down with a heart attack, we're not going to not do CPR," he said. "We have enough evidence that CPR is effective on everyone." But Delgado asserted that the treatment is safe, citing his 2018 study as well as some animal trials. Meanwhile, some states — primarily those that have restricted abortion access after Roe v. Wade was overturned — "actually require misinformation about medication abortion" to be provided to women who are seeking abortions, the Guttmacher Institute said in an email. For instance, Nebraska requires that such patients be told: "If you change your mind and want to continue your pregnancy after taking mifepristone, it may not be too late." They are then directed to Heartbeat's abortion pill reversal hotline. "Note that this is misinformation about medication abortion generally, and some of these states put it out in their materials" even if it isn't required by statutes or regulations, the Guttmacher Institute said. Heartbeat in February filed a suit seeking to throw out the California case, arguing that the organization is protected by the First Amendment in providing information about abortion pill reversal. The group's complaint also argues that it is "not appropriate to litigate the merits of scientific studies in the judicial system." Heartbeat, which doesn't itself operate any clinics but provides support to about 3,000 anti-abortion rights centers, said it "receives no kickback or other payment for referring a woman to a physician" in the network of clinics offering abortion pill reversal, according to its suit. "With this lawsuit, [Attorney General] James is protecting Big Abortion in New York while denying women in her state the right to continue their own pregnancies," said Jor-El Godsey, president of Heartbeat International, said in the statement sent to CBS MoneyWatch.
Store closures are surging this year. Here are the retailers shuttering the most locations. 2024-05-10 22:53:00+00:00 - The retail industry is going through a tough time as it copes with inflation-weary consumers and a rash of bankruptcies, prompting chains to announce the closures of almost 3,200 brick-and-mortar stores so far in 2024, according to a new analysis. That's a 24% increase from a year ago, according to a report from retail data provider CoreSight, which tracks store closures and openings across the U.S. Although some retailers are planning to expand this year, major chains have announced 4% fewer openings compared with a year earlier, the analysis found. Blame changing consumer habits, as well as retailers' management struggles and bankruptcies, with the latter impacting companies including Rite Aid and Rue21. The largest number of store closures stems from Dollar Tree's announcement earlier this year that it plans to close more than 600 Family Dollar locations this year, with the discount store citing the impact of inflation on its customers as well as an increase in shoplifting. "A lot of this year's closures are related to bankruptcies of chains that have been in trouble for a while, like Rite Aid and Rue21," Neil Saunders, managing director of GlobalData, told CBS Moneywatch. "We're also seeing several retailers, like Family Dollar, take action to weed out unperforming locations." Although consumer spending has remained solid this year, there are "pockets of softness creeping in, and retailers want to ensure they are in good financial shape to weather any challenges" Saunders added. "That means optimizing store portfolios." Brick-and-mortar retailers are also struggling with ongoing competition from online rivals such as Amazon.com. By contrast, some companies blundered strategically, such as Express, which filed for bankruptcy last month and announced plans to close 100 of its 500 locations. The clothing chain, known for its workplace fashion, failed to connect with consumers after the pandemic ushered in working from home, Saunders said. That put the company "firmly on the wrong side of trends and, in our view, the chain made too little effort to adapt," he said in a recent research note. Are consumers cutting back? Recent data shows that Americans are still opening their wallets. Consumer spending in March rose 0.8% (the most recent data available), which economists say represents solid growth. But some signs consumers are starting to fade amid a modest economic slowdown. On Friday, the University of Michigan's Surveys of Consumer sentiment index for May dropped to 67.4, the largest monthly decline since mid-2021. Confidence is dipping because of expectations for higher inflation and softer growth, said Jeffrey Roach, chief economist for LPL Financial, in an email. "Uncertainty about the inflation path could suppress consumer spending in the coming months," he noted. Consumers have also spent down any remaining extra money they socked away during the pandemic, when federal stimulus checks and other benefits bolstered their bank accounts, Roach said in an earlier report. "[T]here are potential risks to consumer spending," he said. "When households exhaust these accumulated savings, it could lead to a decline in discretionary spending." Even so, some retailers are planning to open hundreds of new stores, CoreSight found. Dollar General, a rival of Dollar Tree, said it will add more than 800 locations this year, putting it at the top of the list of retailers opening new stores this year, according to the research firm. In second place is 7-Eleven, which plans to open more than 270 U.S. locations this year, followed by discount store Five Below, with plans to open 227 outlets, the analysis found.
With extreme weather comes extreme insurance premiums for homeowners in disaster-prone states 2024-05-10 22:24:00+00:00 - Keeping homeowners insurance has become an increasingly tough task for millions of Americans, particularly those who live in the growing number of areas around the country prone to natural disasters. Major insurance companies, including Allstate and State Farm, have stopped renewing policies in extreme-weather states like California and Florida, forcing residents there to find another insurer at a higher premium. AAA last year also decided not to renew some policies in Florida, a state that has seen an increase in powerful storms and coastal flooding. Homeowners depend on their insurance policies to help with the steep price of paying for damages to their property in the event of accidents and bad weather. But insurers say they're backing out of certain states because the chance of extreme damage from flood, hurricane or fires makes it too expensive to insure residents. The remaining insurers, meanwhile, have opted to increase their rates. Travelers Insurance, for example, got the OK from California state regulators this week to raise homeowners' rates an average 15.3%. The rate change will impact more than 320,000 Californians who have Travelers coverage now, according to documents the company filed with state regulators. Travelers said in the state filing that it sought to raise rates in part because of "changing climate conditions." "The approved adjustments to our California homeowners insurance rates are a necessary step toward aligning pricing to the risks that our customers are facing," the company told CBS MoneyWatch in an emailed statement. Americans pay an average $2,153 a year, or $209 a month, for homeowners insurance, according to insurance industry data provider Quadrant Information Services. Florida's average annual price leads the nation at $6,366 while Californians on average pay $1,452, according to Quadrant. But a homeowner's premium often increases after switching providers, Matthew Eby, the founder and CEO of First Street Foundation told CBS News. After a homeowner gets dropped from their previous insurer, they typically discover their previous policy did not cover wildfire or flood damage, Eby added. "They go to find a new policy and find out that they've not been paying the right price," he said. "The new price that is commensurate with risk can be 2, 3 or even 4 times higher than what they've been paying previously." To be sure, Californians and Floridians aren't the only ones facing homeowners insurance woes. A January survey from Deloitte found that homeowners in 19 other states — including Louisiana, South Carolina and Texas — are seeing "shrinking coverage options and skyrocketing costs of their residential insurance policies." Not all insurers are upping rates or leaving states, the Deloitte survey found. Some providers offer homeowners cheaper prices if they take steps to protect their home from disasters. "Some private insurance carriers in Florida, for example, are offering discounts to policyholders that fortify their homes against hurricane-force winds by strengthening and securing roofs and shutters and reinforcing garage doors," the company said.
Popular maker of sriracha sauce is temporarily halting production. Here's why. 2024-05-10 22:19:00+00:00 - Your food could be decidedly blander this summer, with a major sriracha producer warning that it is suspending production because of a shortage of the Thai chili sauce's main ingredient — hot peppers. Huy Fung Foods, which makes a popular sriracha hot sauce, said it will stop producing the condiment until September because the red jalapeño chili peppers used to make it are "too green," according to a company memo obtained by CBS MoneyWatch. USA Today first reported the news. "After reevaluating our supply of chili, we have determined that it is too green to proceed with production as it is affecting the color of the product," Huy Fung Foods said in an April 30 letter to wholesale buyers. "We regret to inform you that we have decided to halt production until after Labor Day, when our next chili season starts," the company added, noting that all customer orders as of May 6 are canceled. Huy Fung Foods sells its products to retailers, restaurants and other businesses, rather than to consumers. The company declined to comment on its production pause or its memo to buyers. A red jalapeño chili pepper that's too green usually indicates it's not fully mature or ripe, according to Stephanie Walker, a chili pepper expert at New Mexico State University. "If too many peppers are green jalapeños, that means they are the immature color of the reds," she told CBS MoneyWatch. "They haven't reached proper maturity, so it could be a timing issue, like maybe they were planted too late or adverse environmental conditions slowed down the ripeness." It's not the first time sriracha supplies have been threatened, with Huy Fong Foods last year facing production challenges related to crop failures. Bottles of Huy Fong Foods Sriracha line a grocery store shelf on May 10, 2024 in Miami, Florida. Joe Raedle/Getty Images The warning comes as more frequent and severe weather events increasingly shape food supply. Although environmental conditions can hurt jalapeño pepper production, Walker said temperatures haven't been hot enough in Mexico to have affected chili pepper production. Still, some experts blame a changing climate for the subpar chili pepper growing conditions that have constrained the supply of sriracha in recent years. Mexico is suffering from a drought, with the most severe impact being felt in northern Mexico, where most of the peppers are grown, according to a map from Mexico's National Water Commission. California farmer Craig Underwood, who formerly supplied Huy Fung Foods with peppers for its sriracha sauce, said he used to produce 100 million pounds of red jalapeño chili peppers for the company on 2,000 acres. The sauce's distinctive taste is because 90% of its contents consists of fresh red jalapeños, he said. "That's why it's such a good product," Underwood told CBS MoneyWatch. Underwood, who makes his own sriracha, also said he has a sufficient supply of jalapeño peppers, while noting that he produces the sauce at a much smaller scale. He said using green peppers would give sriracha a brownish color instead of its typical bright red hue.
Bounce Alert: 3 Large Caps With RSIs Too Good To Ignore 2024-05-10 15:45:00+00:00 - Key Points A dismal report from CVS has sent shares plunging, but they already look to have put in a low. Bristol-Myers is experiencing something similar, with a big day of gains yesterday boding well for next week. TripAdvisor shares are still recovering from Wednesday's shock and hold the most risk but also the most reward. 5 stocks we like better than CVS Health Savvy stock investors often look for bargains using the Relative Strength Index (RSI). This technical tool evaluates a stock's performance over the last 14 days and assigns a value from 0 to 100. Compared to many other technical indicators out there, the RSI is easy to read: anything above 70 suggests a stock may be overbought, while one below 30 indicates oversold conditions. The more extreme the reading, the stronger the underlying conviction. The past week has seen a strong rebound across equities. After a little wobble during the first half, investors were getting nervous. This uptick, reflecting a revived risk-on sentiment in the face of stubborn inflation readings, is drawing investors back. Get CVS Health alerts: Sign Up But not all stocks are rallying -- at least not yet. The sudden divergence has made it particularly clear that some laggards, those with ultra-low RSI readings, might just be too good to ignore. Let's take a look at three such companies. 1. CVS Health Corporation CVS Health Today CVS CVS Health $55.82 +0.14 (+0.25%) 52-Week Range $53.70 ▼ $83.25 Dividend Yield 4.77% P/E Ratio 9.81 Price Target $76.75 Add to Watchlist As a big and bulky defensive stock, shares of healthcare titan will never have the agility or speed that their peers in the tech space do. Because shares had been trending down through much of April, their earnings-inspired 20% plunge last week was unexpected. The stock's biggest one-day drop for more than a decade came about after the company reported dismal earnings that missed analyst expectations across the board. It didn't help that management's forward guidance for the year ahead was cut in the face of rising medical costs. However, with an RSI that dropped as low as 13 at one point in the past week, there's a case to be made that this initial drop is way overextended. With CVS shares continuing to consolidate above last week's low and the RSI starting to rise, it's starting to feel like the bears might be running out of steam. This might not be a stock to be backing for the long term, at least not yet, but we could be looking at a near-term bounce back from the depths. 2. Bristol-Myers Squibb Company Bristol-Myers Squibb Today BMY Bristol-Myers Squibb $44.94 +0.20 (+0.45%) 52-Week Range $43.33 ▼ $69.10 Dividend Yield 5.34% Price Target $60.00 Add to Watchlist Another stock that will never light investors' imaginations on fire,shares touched off multi-year lows last week. The pharmaceutical manufacturer has been trending down since 2022's all-time high, but the most recent leg down took it into way oversold territory Like with CVS, Bristol-Myers shares continue to consolidate above last week's low, with a solid up day on Thursday boding well for the coming weeks. The stock's RSI has already moved up from 22 to the low 30s, and while it's technically out of oversold territory, that doesn't take away from its bounce potential. Investors should watch for shares to hold onto yesterday's gains going into the weekend, with an open above $45 likely the precursor to a strong bounce in a northerly direction. 3. TripAdvisor, Inc. Tripadvisor Today TRIP Tripadvisor $18.18 -0.13 (-0.71%) 52-Week Range $14.15 ▼ $28.76 P/E Ratio 121.21 Price Target $22.18 Add to Watchlist Travel service companysaw its shares rally all through the end of 2023 and through much of March as well. But a 35% plunge over the past few days turned what was a promising start to the year into a nightmare. Making the drop an even more bitter pill for investors to swallow, TripAdvisor managed to beat expectations for its Q1 earnings on Wednesday. As is often the case, the devil was in the details, and the lack of any progress on a potential sale of the business was enough to send investors running for the exit. But with an RSI that's currently just above 16 and a stock that's well off its low from Wednesday, there's some serious bounce potential at play here. To be sure, TripAdvisor is not without its risks, and it has arguably the most volatile short-term prospects of the three stocks listed here but arguably the greatest reward. Just yesterday, Goldman Sachs reiterated their Buy rating and gave shares a fresh price target of $27. From the $17 they were trading at on Friday morning, that's pointing to more than 50% in potential upside. Before you consider CVS Health, 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 CVS Health wasn't on the list. While CVS Health currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Unity Software’s Mixed Q1, But Long-Term Outlook Remains Positive 2024-05-10 14:17:00+00:00 - Key Points Unity Software's Q1 2024 report highlights its focus on optimizing its portfolio, integrating AI, and fostering growth across various industries. Unity's core Create Solutions segment grew in Q1 2024. Unity is actively investing in AI integration (Unity Muse and Unity Sentis) to empower creators. 5 stocks we like better than Unity Software Unity Software NYSE: U develops and distributes a platform for creating and operating interactive, real-time 3D content. The company released its first quarter 2024 earnings report, which provided valuable insights into Unity Software’s financial performance and strategic direction. As a key player in the gaming industry and increasingly relevant in other sectors, understanding Unity's current position and future trajectory is crucial for investors looking to get involved in the gaming sector. Get Unity Software alerts: Sign Up Revenue, Profitability, and Cash Flow Unity Software Today U Unity Software $21.69 -2.47 (-10.22%) 52-Week Range $21.64 ▼ $50.08 Price Target $35.74 Add to Watchlist Unity's Q1 2024 earnings report revealed an 8% year-over-year decline in total revenue, amounting to $460.4 million. This decline can be attributed to strategic portfolio adjustments , as the company divested several non-strategic businesses. Despite the overall decrease, Unity's strategic portfolio, including its core offerings, demonstrated 2% year-over-year growth, reaching $426 million in revenue. This indicates the resilience and continued demand for Unity's primary products and services. Unity reported a GAAP net loss of $291 million for Q1 2024. This figure includes the impact of restructuring charges totaling $212 million and a $61 million gain related to the repurchase of convertible notes. The adjusted net loss would be $141 million, excluding these one-time items. A crucial metric to consider is Adjusted EBITDA, which excludes the impact of stock-based compensation, amortization, depreciation, and other non-cash expenses. Unity's Adjusted EBITDA for Q1 2024 was $79 million, marking a significant $50 million improvement compared to the same period last year. This demonstrates the positive impact of the company's strategic portfolio and cost optimization efforts. Unity's free cash flow for Q1 2024 was negative $14.56 million, indicating a greater cash outflow than inflow during the period. While this may raise concerns, it's important to consider it within the context of the company's ongoing investments in growth initiatives and strategic adjustments. Create Solutions and Grow Solutions Unity's Create Solutions segment, encompassing its core development tools and services, exhibited strong performance in Q1 2024, with revenue reaching $133 million, a 17% year-over-year increase. This growth can be attributed to increased adoption of Unity's subscription plans and successful strategic partnerships. Notably, core subscriptions, excluding those in China, experienced a 13% year-over-year growth, demonstrating the sustained demand for Unity's development tools among creators worldwide. The Grow Solutions segment, focusing on advertising and monetization solutions, reported $294 million in revenue for Q1 2024, marking a 4% year-over-year decline. Unity is actively working to enhance the performance of its mediation platform and ad networks by leveraging data to improve the efficiency of its models and deliver stronger returns on ad spend for its customers. These efforts are expected to contribute to the segment's growth in the coming quarters. Future Outlook and Strategic Initiatives Unity Software MarketRank™ Stock Analysis Overall MarketRank™ 3.26 out of 5 Analyst Rating Hold Upside/Downside 64.8% Upside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.36 Insider Trading Selling Shares Projected Earnings Growth Growing See Full Details Unity has provided revenue guidance for Q2 2024 and the full year, reflecting its strategic focus on driving growth across its core segments. For Q2 2024, Unity anticipates revenue from its strategic portfolio to range between $420 million and $425 million, representing a 6% to 7% year-over-year decline. This is primarily due to ongoing adjustments within the Grow Solutions segment. For the full year 2024, Unity reaffirms its strategic revenue guidance of $1.76 billion to $1.8 billion, indicating a 2% to 4% year-over-year growth. Unity is actively investing in integrating artificial intelligence (AI) into its offerings to empower creators and streamline the development process. Unity Muse and Unity Sentis are AI-powered tools that assist developers in creating realistic and engaging experiences. Unity Muse leverages AI to generate art, textures, and animations, while Unity Sentis enables the creation of intelligent, responsive characters within games and simulations. Expanding beyond its core gaming market, Unity strategically targets the automotive, manufacturing, and e-commerce industries. Unity aims to become the go-to platform for creating real-time 3D experiences across various sectors through partnerships and industry-specific solutions. These initiatives are expected to drive significant growth for the company in the coming years. Leadership Transition and Investor Considerations Unity appointed Matt Bromberg, former Chief Operating Officer of Zynga NASDAQ: ZNGA, as its new CEO. Jim Whitehurst, the previous interim CEO, transitioned to Executive Chairman. Bromberg brings extensive experience in the gaming industry, having played a key role in Zynga's turnaround and held leadership positions at Electronic Arts NASDAQ: EA. This leadership transition signals Unity's commitment to growth and innovation within the gaming sector. Despite short-term volatility, Unity Software’s analysts maintain a generally positive outlook on its long-term prospects. The consensus analyst rating for Unity is a Hold, with a price target of $37.03, suggesting a potential upside from Unity’s current stock price. Institutional investors hold a significant stake in Unity, demonstrating confidence in the company's future potential. However, a notable short interest exists, indicating some investors anticipate a decline in the stock price. This interplay between bullish and bearish sentiment contributes to the stock's volatility. Unity Software Inc. (U) Price Chart for Sunday, May, 12, 2024 Unity Software's Q1 2024 earnings report provides valuable insights into the company's financial performance, strategic direction, and the evolving landscape of the gaming industry and beyond. While the company navigates challenges related to portfolio adjustments and macroeconomic influences, its core business remains strong, driven by the growing demand for its development tools and the expansion into new industries. Unity's focus on AI integration, strategic partnerships, and leadership expertise positions it well for continued growth and innovation in the years to come. As the lines between the physical and digital worlds continue to blur, Unity's role as a leading platform for creating and operating real-time 3D experiences is poised to become increasingly significant, offering investors a compelling opportunity to participate in the future of interactive content creation. Before you consider Unity Software, 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 Unity Software wasn't on the list. While Unity Software currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
JFrog Stock Gets Punished for Solid Results: Buy the Dip 2024-05-10 12:55:00+00:00 - Key Points JFrog plummeted 12% after solid results and is setting up for the next leap higher. Growth is solid but slowing and aligns with forecasts, providing no catalyst for rallying today. Analysts trim targets but maintain a Moderate Buy rating and see a 20% upside at consensus. 5 stocks we like better than JFrog JFrog NASDAQ: FROG is a small DevOps platform shaking up an industry projected to grow at a 20% CAGR for the next five years. Its Enterprise+ package provides an end-to-end software supply chain that resonates with users, which is important in today's world of accelerating digital usage and AI. The problem with the Q1 results is that growth is slowing for this highly-valued business. It was among the highest-valued tech stocks worth buying, trading at 67X this year’s and 58X next year’s earnings outlook ahead of the release. At those levels and projected growth rates, it will be four to five years before the results align with sentiment, which is reason enough for investors to take profits. The takeaway for today is that JFrog is gaining momentum with its enterprise-level clients and could accelerate growth and profitability over time. The company is among the smallest DevOps platforms, with about $430 in projected revenue for 2024, less than half the projected take for GitLab NASDAQ: GTLB. It will take time for JFrog to grow, but it is on track to double in size over the coming years, putting the high valuation back into perspective. In this light, the pullback in price action is an opportune time to buy this innovative tech stock; the question is, how low can it go before bottoming? Get JFrog alerts: Sign Up JFrog had a Strong Quarter: Guidance is Tepid JFrog Today FROG JFrog $33.01 -7.61 (-18.73%) 52-Week Range $21.38 ▼ $48.81 Price Target $42.69 Add to Watchlist JFrog had a strong quarter in Q1, producing $100.3 million in revenue for a gain of 25.7%. The top line beat the consensus estimate by 170 basis points and is compounded by a wider margin. Cloud services grew by 47% to 37% of the total, up 600 basis points from last year on increasing client usage. The beat is significant because of the high bar set by analysts; all revisions in the last 30 days were upward. Enterprise+ subscriptions, the company’s end-to-end package, grew by 40% to 49% of the take. Net retention rate, a measure of client penetration, came in at 118%. The highlight of the report is the margin. The company widened margins significantly, reporting a 79.5% gross margin, 85.1% adjusted, and a 14% adjusted operating margin, up nearly 1000 bps YOY. The net result is adjusted EPS of $0.16, up a dime compared to last year despite a higher share count. Adjusted EPS beat the Marketbeat.com consensus by $0.02, suggesting the guidance may be cautious. The company's guidance plays into the decline in stock price. The guidance was raised at the top and bottom line but forecasts additional slowing and aligns with the consensus. The opportunity for investors is that this company shows momentum and will likely outperform and raise guidance as the year progresses. In this light, the 12% stock price decline is a knee-jerk reaction to news that has reset the market and positioned it for a solid rebound. Analysts See a Double-Digit Leap for JFrog Stock The first two analyst revisions to pop up following the release include price target reductions, but that is the worst that can be said. The reductions come from Morgan Stanley and Needham to $47 and $45, both above the consensus. The consensus has been trending higher; that trend may be over, but it is up 60% YOY, showing a high level of conviction among analysts and 20% above the current action. Analysts' consensus aligns with the recent highs and may cap gains until later in the year. The technical action is mixed. The post-release plunge is concerning but has not crossed critical support targets and aligns with a larger reversal pattern. JFrog stock hit bottom in 2022, confirmed it in 2023, and began to rally higher later that year. Now, it is pulling back from a higher high to confirm support at a higher low possibly. The support target near $35 is a significant pivot point if confirmed. In that scenario, the market should begin to rebound soon and may retest the recent highs by mid-summer. If not, JFrog could fall to a new low and continue lower to the next target for support near $30. Before you consider JFrog, 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 JFrog wasn't on the list. While JFrog currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Will the Surge in GameStop Stock Spark a New Meme Craze? 2024-05-10 12:40:00+00:00 - Key Points GameStop's shares surge 66% MTD, reflecting a resurgence in retail speculation reminiscent of the 2021 meme stock craze. AMC Entertainment struggles to regain momentum, with shares falling over 50% this year. Carvana experiences a turnaround, with shares up over 120% in 2024 as short interest remains elevated. 5 stocks we like better than Trump Media & Technology Group Could the meme craze of 2021 be making a comeback? This question arises after shares of the popular meme stock GameStop NYSE: GME have surged 66% month-to-date on no fundamentally changing news. Instead, the move appears to be driven by retail speculation, which has returned in droves as the stock surges higher. As the market approaches its 52-week high, could the increase in speculation and appetite for risk result in a secondary meme craze? That question remains to be answered; however, with several meme stocks currently soaring higher and possessing significant short interests, the impressive month's gains might not be short-lived. Get DJT alerts: Sign Up So, let’s look at some popular meme stocks in the current cycle and unpack their performance along with key factors that might result in a higher potential squeeze—starting with the leader, GameStop. GameStop Corp. GameStop Today GME GameStop $17.46 -0.55 (-3.05%) 52-Week Range $9.95 ▼ $27.65 P/E Ratio 873.44 Price Target $5.60 Add to Watchlist GameStop and AMC Entertainment NYSE: AMC, saw retail investors from online forums like Reddit's WallStreetBets challenge institutional short-sellers, causing a significant short squeeze and sparking debates on market manipulation and finance democratization. This collective action demonstrated the power of retail investors and changed how we view and engage in the stock market. A similar theme has been emerging in recent weeks. Shares of GameStop have surged a whopping 66% on the month, leading the current cycle of highly shorted meme stocks that are surging higher. The company possesses an increasingly bearish sentiment, with 19.6% of the float sold short and a consensus sell rating by analysts. As of April 15, while the short interest declined almost 9% over the previous month, close to 59 million shares were sold short, a hefty amount given the stock's average trading volume of just 5.4 million shares. AMC Entertainment Holdings Inc. GameStop Today GME GameStop $17.46 -0.55 (-3.05%) 52-Week Range $9.95 ▼ $27.65 P/E Ratio 873.44 Price Target $5.60 Add to Watchlist AMC, a once leader alongside GME during the meme craze in 2021, have yet to catch a bid and squeeze higher during the current cycle. Instead, shares of the company have fallen over 50% in the year as serial dilution has overwhelmed the price action and fundamentals. That negative performance is reflected in the sentiment, which is overwhelmingly bearish. Based on five analyst ratings, AMC has a strong sell rating and on-the-rise short interest. As of April 15, the short interest rose 20% over the previous month to 19.3%. Carvana Co. Carvana Today CVNA Carvana $117.00 -3.41 (-2.83%) 52-Week Range $10.16 ▼ $129.00 P/E Ratio 51.32 Price Target $77.60 Add to Watchlist Carvana NYSE: CVNA, a favorite among meme stock traders, have staged an impressive turnaround on the year thanks to changing fundamentals and a surging stock price helped by the ever-present unusually high short interest. The stock has rocketed over 120% higher this year. It recently surged to new 52-week highs after reporting revenue and EPS beats for the year's first quarter. Since then, the stock has spent several weeks consolidating near its 52-week high, setting up for a potential squeeze higher. Short interest remains elevated, with 14.15% of the float sold short, a 2% decline over the previous month. Trump Media & Technology Group Corp. Given its nature, Trump Media & Technology Group NASDAQ: DJT is quickly becoming a prime candidate for a meme stock. The $7.4 billion company, which develops a social media platform known as Truth Social, was founded in 2021 and is based in Florida. Volatility is no stranger to the stock, which has an extreme post-merger range of a high of $66.22 and a low of $22.84 set in April. However, since making that low, the stock has caught a bid and rebounded sharply, now up almost 60% over the previous month and fresh from breaking out of a consolidation. According to Nasdaq, the short interest is at 5.3 million shares as of April 30, an increase of almost 1 million from the previous settlement date of April 15. Before you consider Trump Media & Technology Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Trump Media & Technology Group wasn't on the list. While Trump Media & Technology Group currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here