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A Pattern of Lavish Spending at a Leading L.G.B.T.Q. Nonprofit 2024-08-01 16:14:32+00:00 - A light rain fell at the Zurich airport one Sunday morning in January 2023 as Sarah Kate Ellis made her way from a seat in Delta’s most exclusive cabin to a waiting Mercedes. It was there to chauffeur her to the Swiss Alps, where she and her colleagues would stay at the Tivoli Lodge, a seven-bedroom chalet that cost nearly half a million dollars to rent for the week. Ms. Ellis, who was en route to the World Economic Forum in Davos, doesn’t run a Wall Street bank or a high-flying tech start-up. She is the chief executive of the nonprofit organization GLAAD, one of the country’s leading L.G.B.T.Q. advocacy groups. The group, which has an annual budget of roughly $30 million, paid for Ms. Ellis’s trip, as well as a day of skiing, according to internal documents reviewed by The New York Times and interviews with current and former employees and others with knowledge of GLAAD’s operations. The trip was part of a pattern of lavish spending at GLAAD, much of it by Ms. Ellis, that may have violated the organization’s own policies as well as Internal Revenue Service rules.

First Solar Stock: The Dawn of a New Rally in Share Prices 2024-08-01 15:00:00+00:00 - First Solar Today FSLR First Solar $218.50 +2.51 (+1.16%) 52-Week Range $129.21 ▼ $306.77 P/E Ratio 22.90 Price Target $272.58 Add to Watchlist First Solar's NASDAQ: FSLR stock price was corrected to lower levels in early summer because of mounting concerns centered on political risk, but its operational quality continues to shine. The upcoming election threatens the solar market in several ways but nothing to offset the growing demand for solar power generation and the secular tailwind that has begun to blow. That tailwind is derived from the inflation data and outlook for interest rates expected to fall soon. The takeaway is that easing economic conditions will help boost demand for an in-demand product and drive results for this profitable business. Get First Solar alerts: Sign Up First Solar Has a Robust Quarter, but Bookings Slow First Solar had a solid quarter, with demand driven by the data center segment. Data centers are turning to solar power generation to help offset the enormous cost of powering AI. The company reported $1 billion in net revenue, outpacing the consensus estimate by 60 basis points as growth surged 23% YoY and 25% sequentially. The gains were made on increased volume, compounded by higher realized prices, which leveraged strength on the bottom line. First Solar MarketRank™ Stock Analysis Overall MarketRank™ 4.93 out of 5 Analyst Rating Moderate Buy Upside/Downside 24.9% Upside Short Interest Healthy Dividend Strength N/A Sustainability -0.14 News Sentiment 0.62 Insider Trading Selling Shares Projected Earnings Growth 55.45% See Full Details The margin news is impressive and includes improved gross margin and operating costs. The gross margin improved by 1000 basis points, compounded by reduced costs. The net result is that operating and net income more than doubled, driving a 75% increase in GAAP earnings. The GAAP earnings were impacted by mild dilution, with the diluted share count up about 20 bps compared to last year. Dilution is related to share-based compensation and is not a red flag for investors today. Among the attractions of a First Solar investment are its profitability, cash flow, and financial strength. The company had a cash flow-negative quarter. However, one-offs, including start-up costs at new facilities and the repayment of short-term operating capital loans in India, offset that detail. The salient details include a net cash position of $1.2 billion, low leverage, and an 8.4% increase in shareholder equity. Regarding leverage, the company’s total liabilities are about 0.5x equity and long-term debt about 0.05x equity, leaving it in a robust position to reinvest in the business as needed, and capital return is a growing possibility. Among the hurdles for First Solar’s stock price is bookings. Booking growth slowed in Q2, attributed to political uncertainty and economic conditions, leaving the backlog down 2.4 GW sequentially or 3%. The 3% contraction is not large but sufficient to offset quarterly strength, leading management to reiterate guidance despite those strengths. Analysts Look Past Elections to First Solar’s Bright Future The analysts' response to the Q2 results is positive, including numerous upward price target revisions. The talk on the street is that bookings slowdown and policy risk are a concern but offset by secular growth drivers, including data center demand and pricing power. Potential catalysts for outperformance and higher share prices include technological advances and increased efficiency for First Solar’s industry-leading products. The takeaway is that analysts' revisions are leading to a range above the consensus target, implying at least a 30% upside and the probability new highs will be set. The $273 consensus target aligns with the current all-time high, but the freshest targets range from $300 to $350, well above it. First Solar’s stock price is rising following the Q2 release and showing support at a critical level. That level aligns with the 2023 highs broken earlier this year. The pullback to $220 and show of support at that level confirms the breakout, setting the market up to continue the rally. The next price movement is likely upward and may reach $250 to $275 before the next quarterly release. If the company continues showing strength, new highs are likely before the end of the year. Before you consider First Solar, 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 First Solar wasn't on the list. While First Solar currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

London Stock Exchange denies lowering standards to win Shein IPO 2024-08-01 14:56:00+00:00 - The boss of the London Stock Exchange Group has denied lowering standards in order to lure the fast-fashion retailer Shein’s £50bn IPO to London, as he hailed a stronger pipeline for UK listings. Shein, which operates largely from China but is headquartered in Singapore, has come under fire from workers’ rights campaigners concerned about a lack of transparency regarding its supply chain and allegations its suppliers have used the forced labour of Uyghurs in China’s Xinjiang region. The company’s original plans to list in New York were scuppered after US lawmakers raised concerns over alleged labour malpractices and lawsuits from competitors. However, Shein has yet to face formal opposition in the UK. The retailer reportedly filed papers to float on the London Stock Exchange in June, and secured support for a potential UK IPO from the Labour party weeks before the July election. But London Stock Exchange Group (LSEG) chief executive, David Schwimmer, denied any suggestion that the bourse was lowering standards in order to lure Shein’s £50bn listing to the UK. He said: “To be clear, there is no lowering of standards on the London Stock Exchange. The listing approval process goes through the UK listing authority and to the extent that companies meet the requirements – and these are about disclosure around governance etc – of the UK listing authority, then they are able to list on the London Stock Exchange and take advantage of the governance regime and disclosure regime that we have. “We have found that tends to be very good for companies in terms of having the disclosure and the scrutiny and the investor participating in how they are managed.” In May, an investigation by the Switzerland-based non-profit group Public Eye found that workers producing garments for Shein routinely worked more than 70-hour weeks, while other exposés have alleged that suppliers have used forced labour in the Xinjiang region. Meanwhile, the company’s alleged “cavalier approach to design appropriation”, has led to a string of lawsuits relating to allegedly copied garments. Schwimmer said there was an “encouraging listing pipeline” and that the prospect for further share flotations was “looking up, certainly here in the UK”. He told reporters on Thursday: “As you can see, a number of companies have made some indications that they are coming to this market. So I feel pretty good about the pipeline and the direction of travel. “That’s due to a combination of factors. I think it is resolution of the [UK general] election, I think it is probably the improving macroeconomic environment, I think it is also due to the capital markets reforms.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The UK regulator loosened rules for listed companies earlier this week, as part of capital market changes that officials hope will end the exodus of companies from the London Stock Exchange to rival financial hubs. The shake-up included scrapping rules that forced companies to hold shareholder votes before approving large mergers or takeovers. While many have welcomed the changes, critics fear an erosion of shareholder democracy. The fast-fashion retailer has said: “Shein has a zero-tolerance policy for forced labour and we are committed to respecting human rights. We take visibility across our entire supply chain seriously and we require our contract manufacturers to only source cotton from approved regions.”

World Bank warns 108 countries risk being stuck in ‘middle-income trap’ 2024-08-01 14:31:00+00:00 - More than 100 countries – including China, India, Brazil and South Africa – risk becoming stuck in a “middle-income trap” unless they adopt radical growth strategies for their economies, the World Bank has said. The Washington-based development organisation said emerging market nations would struggle to close the gap on US living standards unless they relied less heavily on investment to increase growth. In its World Development Report, the World Bank said the lesson of the past 50 years was that as countries grew wealthier they hit a “trap” where incomes per head averaged at about 10% of US levels – the equivalent of $8,000 (£6,261). Since 1990, only 34 middle-income economies had managed to shift to high-income status – with more than a third of them either beneficiaries of integration into the European Union, or of previously undiscovered oil. Indermit Gill, the World Bank’s chief economist, said on current trends it would take China 10 years and India 75 years to have incomes per head of 25% of US levels. “The battle for global economic prosperity will largely be won or lost in middle-income countries,” Gill said. “But too many of these countries rely on outmoded strategies to become advanced economies. They depend just on investment for too long – or they switch prematurely to innovation. “A fresh approach is needed: first focus on investment; then add an emphasis on infusion of new technologies from abroad; and, finally, adopt a three-pronged strategy that balances investment, infusion, and innovation. With growing demographic, ecological and geopolitical pressures, there is no room for error.” According to the World Bank, 108 countries were classified as middle-income at the end of 2023, each with annual incomes per head in the range of $1,136 to $13,845. Middle-income countries were home to 6 billion people – 75% of the global population – with two out of every three people living in extreme poverty. They generated more than 40% of global gross domestic product, were the source of more than 60% of carbon emissions and faced far bigger challenges than their predecessors in escaping the middle-income trap: rapidly ageing populations, rising protectionism in advanced economies, and the need to speed up the energy transition. Gill said it would be tough for countries to break out of the middle-income trap. “We are not naive enough to think this will be easy. Middle-income countries will have to work miracles – not only to lift themselves up to high-income status but also to shift away from carbon-intensive growth paths that will lead to environmental ruin.” The Bank proposed a “3i strategy” for countries depending on their stage of development. Low-income countries could focus solely on policies designed to increase investment – the 1i phase. Once they reached lower-middle-income status, they needed to shift gears and expand the policy mix in the 2i phase: investment and infusion, which involved adopting technologies from abroad and spreading them across the economy. At the upper-middle-income level, countries should shift gears again to the final 3i phase: investment, infusion, and innovation.

Mastercard Stock's Q2 Financial Results Outshine Competitors 2024-08-01 14:05:00+00:00 - Mastercard Today MA Mastercard $462.41 -1.30 (-0.28%) 52-Week Range $359.77 ▼ $490.00 Dividend Yield 0.57% P/E Ratio 36.76 Price Target $503.67 Add to Watchlist Mastercard NYSE: MA is the third largest company in the United States financial services industry, with a market capitalization of $431 billion. The firm released Q2 2024 financial results on July 31, 2024. We will review key points from the earnings release and explain the company's diverse revenue streams. We'll conclude by highlighting critical factors to monitor around the firm and share updates on Wall Street analysts' price targets. Mastercard operates as one reportable segment, known as Payment Solutions. In 2023, 30% of the company’s revenue came from the United States, and no one customer contributed more than 10% of the revenue. Get VIE:VISA alerts: Sign Up Mastercard Beats Adjusted EPS and Revenue Estimates, Impressing Over Visa Mastercard beat adjusted earnings-per-share estimates, coming in at $3.59, for an earnings surprise of 2.3%. The figure increased by 24% from the previous year. Revenue also beat estimates by $110 million, coming in at $6.96 billion. This was an increase of 11% and represents a revenue surprise of 1.6%. The company reiterated its full-year revenue guidance of low double-digit growth. Mastercard attributed its rising revenue to growth in its payment network and value-added services and solutions. Payment network revenues were up 7%, driven by a 9% increase in gross dollar volume, a 17% increase in cross-border volume, and an 11% increase in switching transactions. Gross dollar volume is the dollar amount of transactions the company’s payment network facilitates. Cross-border volume refers to the value of transactions made between parties in different countries. These transactions often generate higher fee revenue. When a sale is made, transactions are switched to transfer money from the purchaser's bank to the merchant's bank. Value-added services and solutions include cybersecurity solutions that help detect, prevent, and respond to fraudulent activity or cyberattacks. The company also provides data and insights. They help firms understand market trends, increase value, and reach customers. Revenue in this division was up 18% from last year. On the day of the release, shares were up 3.6%. This was a positive earnings report, especially when comparing results to Visa NYSE: V, which released earnings last week. Mastercard beat Visa’s 7% increase in gross dollar volume and its 14% increase in cross-border transactions. Visa’s shares fell 3% on the day of its release. Mastercard Incorporated (MA) Price Chart for Thursday, August, 1, 2024 What to Watch For: Merchant Lawsuit, Consumer Spending Readings One issue to watch around Mastercard is developments in the lawsuit the company is currently in. Merchants using their payment systems are currently suing Mastercard and Visa. The merchants accuse Visa and Mastercard of being a cartel. A cartel is when two powerful firms collude to fix prices. This helps attract business for themselves and shut out competitors. Merchants believe that Visa and Mastercard use their cartel to charge excessive interchange fees when processing transactions. They argue this has unfairly hurt their businesses. Visa and Mastercard arranged a settlement for the case in March 2024 with several avenues to relieve the merchants. First, the companies offered to pay the merchants a collective $30 billion. They also agreed to lower fees by at least 4 to 7 basis points for the next three to five years. The current fee range is approximately 1.5% to 3.5% of transactions. In June, a judge rejected the settlement deal; the case will now go to trial. When it comes to class action lawsuits, companies typically end up paying less when they can settle out of court. Now that the case is going to trial, Mastercard’s eventual bill and changes in agreements with merchants could be much harsher. Investors should watch for news of a revised settlement that would help keep Mastercard’s liability more reasonable. Updated Analyst Price Targets Mastercard MarketRank™ Stock Analysis Overall MarketRank™ 4.70 out of 5 Analyst Rating Moderate Buy Upside/Downside 9.9% Upside Short Interest Healthy Dividend Strength Strong Sustainability -0.60 News Sentiment 0.55 Insider Trading Selling Shares Projected Earnings Growth 15.02% See Full Details Investors should also watch for the next consumer spending reading, which will be released on August 31st. This number is indirectly tied to the revenue that firms like Mastercard will bring in, as more spending means the company can charge more transaction fees. Since the earnings release, five Wall Street analysts have updated their price targets on Mastercard. All of them increased their estimates. The average price target among those analysts is $532, implying an upside of 13%. Before you consider VIE:VISA, 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 VIE:VISA wasn't on the list. While VIE:VISA currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Tobacco Giant's Shares Fall on EPS Miss, Lackluster Pouch Gains 2024-08-01 13:41:00+00:00 - Altria Group NYSE: MO is one of the world’s “Big Three” tobacco companies and is in the consumer staples sector. Let's examine the firm’s business segments and the state of the cigarette market. We'll then review its Q2 2024 earnings report and examine the company’s growth areas. Get Altria Group alerts: Sign Up Altria's Segments: Smokeable Products Dominate Altria Group Today MO Altria Group $50.02 +1.01 (+2.06%) 52-Week Range $39.06 ▼ $50.85 Dividend Yield 7.84% P/E Ratio 10.46 Price Target $47.10 Add to Watchlist Altria divides its revenue into smokeable products, oral tobacco products, and “all other." Smokable products include cigarettes and cigars. Altria’s main brands are Marlboro, the best-selling cigarette in the US, and Black and Mild. It made up 92% of operating income in 2023. Oral products include chewing tobacco and nicotine pouches. The company’s brands include Copenhagen and Skoal chewing tobacco and On! nicotine pouches. These products made up 8% of operating income. The “all other” segment includes the firm’s NJOY e-vapor product. It accounted for less than half a percent of total revenue and lost money, subtracting from operating revenue by 3% in Q2 2024. To understand Altria's business model and performance, it's essential to focus on cigarette usage trends and how the company has navigated them, as cigarettes are still Altria's biggest product category. The Decline of the Cigarette Industry and How Altria is Fighting Back Demand for cigarettes has fallen considerably over the last 25 years. In 2000, 25% of U.S. adults surveyed said they had smoked cigarettes in the past week. In 2023, the number sat at 12%. Data also shows that those who smoke consume fewer cigarettes a day. As a result, the number of cigarettes sold per year in 2021 was half of what it was in 2000. Altria Group MarketRank™ Stock Analysis Overall MarketRank™ 3.49 out of 5 Analyst Rating Hold Upside/Downside 4.1% Downside Short Interest Healthy Dividend Strength Strong Sustainability -3.02 News Sentiment 0.40 Insider Trading Selling Shares Projected Earnings Growth 3.33% See Full Details However, Altria Group has continued to grow its profits and has only seen modestly decreasing revenues over the past two fiscal years, down 2% and 0.9% in 2022 and 2023, respectively. Over the past three years, operating income has grown by a compound annual rate of 2%. Altria has been able to achieve this by substantially increasing its margins. Operating margin, gross margin, and adjusted net income margin have all expanded by 400 to 500 basis points since 2020. Much of this has been achieved through cigarette price increases; Altria hiked prices four times in 2023 and has already done so once in 2024. Due to nicotine's addictive properties, Altria has the power to increase its prices and not substantially lower volumes. Additionally, brand loyalty for cigarettes is extremely high, estimated at 85% to 90% annually. This makes it even more unlikely that consumers will switch products due to price increases. If smoking rates continue to decline as expected, then those who remain smoking will have to continually pay higher prices so that companies can increase their bottom line. This will be offset by new products that firms hope will attract new generations of nicotine users. Ultimately, growth will have to come from new products. Altria's EPS and Revenue Miss Altria Group’s adjusted earnings per share (EPS) came in at $1.31, which is three cents below estimates and flat from the previous year. Revenue also came in $120 million below estimates at $5.28 billion. Net revenues declined 4.6% from the previous year. The company also narrowed the range of its full-year adjusted EPS guidance slightly but maintained the same midpoint of $5.11. Overall, smokable product volume decreased by 13%, but revenue only fell by 5.6%, showing the disproportionate ability to raise prices. Analyzing Altria's Growth Areas Altria is touting the expansion of its NJOY vapor product. Its share of the vapor device market increased by 14%, up to 25%. “All other” segment revenues grew 144%, but they are so small, at $22 million, that they make no difference to the bottom line. A more encouraging avenue is in Altria’s On! nicotine pouches. It increased volume by 37% from Q2 2023, drastically higher than the volume growth in the oral tobacco industry. On! also increased its market share by 1.2% since Q2 2023. Key competitor ZYN, made by Philip Morris NYSE: PM, is losing market share due to its inability to keep up with demand. In April 2024, ZYN controlled an estimated 26.8% of U.S. smokeless tobacco sales. Considering the massive shortage in its biggest competitor, it feels disappointing that Altria was barely able to increase its market share. Shares were down 3% on the day of the release. The glaring negatives regarding EPS, revenue, and guidance were the 2.2% misses on EPS and revenue. This, combined with On!'s disappointing performance, makes the reaction feel justified. Investors should continue to see if On! and NJOY products can gain further market share. However, these product lines have an extremely long way to go, and results so far are not great. Altria Group, Inc. (MO) Price Chart for Thursday, August, 1, 2024 Before you consider Altria 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 Altria Group wasn't on the list. While Altria Group currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Analysts Expect At Least 60% Upside In This Fintech 2024-08-01 13:30:00+00:00 - After softening over the past couple of weeks, there was a sense in yesterday's session that perhaps the market is ready to turn north once again. The benchmark indices all had some of their best days in recent weeks, with the S&P 500 finishing up 1.5% and the tech-heavy NASDAQ finishing up more than 3%. Block Today SQ Block $59.90 -1.98 (-3.20%) 52-Week Range $38.85 ▼ $87.52 P/E Ratio 77.79 Price Target $87.25 Add to Watchlist The market-wide correction over recent weeks, felt most acutely by tech stocks, has opened up some serious buying opportunities. One more to add to this list now is Block, Inc. NYSE: SQ, the $40 billion fintech company founded by Jack Dorsey. Get Block alerts: Sign Up While most stocks started giving up their gains in late June or early July, Block began to run out of momentum from its run from Q4 through Q1 in late March. It had added about 120% since November of last year, but since the end of Q1 through this week, it had given back more than 30% of that. Bullish Updates for Block However, it's starting to look like the worst-case scenario might already be priced in, and a bottom might soon be approaching. Such was the feeling from the team at Macquarie, who, at the end of last week, reiterated their Outperform rating on Block shares and maintained their $100 price target. From the $62 that Block shares closed at on Wednesday evening, that's pointing to an impressive upside of more than 60%. They're not alone, either. The Deutsche Bank team took a similar stance on Block shares earlier this month, boosting their price target to $98. Susquehanna did the same at the end of June but with a $100 price target like Macquarie. Earlier this month, William Blair upgraded the stock from Market Perform to Outperform for the same reasons as the others. In a note to clients, they said, "CEO Jack Dorsey is injecting new energy into a business that had become complacent, despite technology leadership." They see the fintech company continuing to emerge as an "important neo-bank leader," with several interesting new revenue-generating products set to come online this year and make an impact. Block's Positive Momentum Block MarketRank™ Stock Analysis Overall MarketRank™ 4.72 out of 5 Analyst Rating Moderate Buy Upside/Downside 46.1% Upside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.43 Insider Trading Selling Shares Projected Earnings Growth 79.69% See Full Details A week later, Jack Dorsey himself announced plans to reorganize Block's staff by function to eliminate operational inefficiencies. By disbanding the business unit reporting structure, Block will be run more closely to how it was when Dorsey founded it in 2009. Considering the company managed to log more than 3,000% in gains from its IPO in 2016 through 2021, it's safe to say Dorsey knows what it takes to make a company run. It's worth noting that not all analysts see the upside potential in Block, with Morgan Stanley reiterating their Underweight rating on its shares earlier this week. However, they are the exception rather than the rule, with MarketBeat's Analyst Rating Tool showing theirs to be the single Sell rating against 28 Buys. Key Considerations for Investing in Block For those of us on the sidelines thinking about getting involved, this could be ground zero for a remarkable comeback. The stock has refused to fall below the $60 mark this week after coming close to closing below it on Friday. Yesterday's 3% pop could easily become something bigger, especially with Block's Relative Strength Index (RSI) still only at 40. A stock's RSI is a popular indicator used to assess whether it is overbought or oversold. Anything above 70 suggests the former, while anything below 30 suggests the latter. While it suggests that Block isn't extremely oversold, at just 40, it definitely helps strengthen the argument that there's a bargain to be had at current levels. Before you consider Block, 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 Block wasn't on the list. While Block currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Meta Platforms: Rotation or Not, It’s Rally On For This AI Stock 2024-08-01 12:55:00+00:00 - If the proof is in the results, then Meta Platforms NASDAQ: META Q2 results prove that increased spending on AI pays off. Its numbers are best described as wow-worthy, reminiscent of NVIDIA's NASDAQ: NVDA outperformance over the last year. Among the takeaways are rapidly improving leverage, driving robust cash flows, and setting this company up for increasing capital returns. Investors wondering how high this stock can go can be assured this market is heading for a new all-time high and will hit that level soon. Get Meta Platforms alerts: Sign Up Meta Platforms Leverages the Power of AI Meta Platforms Today META Meta Platforms $497.74 +22.91 (+4.82%) 52-Week Range $274.38 ▼ $542.81 Dividend Yield 0.40% P/E Ratio 28.59 Price Target $542.70 Add to Watchlist Meta Platforms had a robust quarter driven by strengths in its core and growth opportunities. The company reported $39.07 billion in net revenue, up 22.1% compared to last year and 200 basis points better than expected. The gains were driven by a 7% system-wide increase in daily active people compounded by improved ad impressions and revenue per ad. Ad impressions and revenue per ad grew by 10% to provide top and bottom-line leverage. Regarding AI and growth opportunities, the company says Meta AI use is rapidly expanding, putting it on track to be the most used AI assistant by the end of the year. As good as the revenue and user metrics are, the margin news is better. The company widened its gross and operating margins significantly due to the leverage provided by sales and revenue quality. The takeaway is that cost rose only 7% compared to the 22% increase in revenue, driving a 900 basis point improvement in the operating margin that is expected to stick. The result is a 73% increase in net income and GAAP earnings. Among the salient details is the free cash flow, which is about $11 billion, sufficient to cover capital returns, leaving ample room for increased investment in AI and capital return. Meta Platforms MarketRank™ Stock Analysis Overall MarketRank™ 4.44 out of 5 Analyst Rating Moderate Buy Upside/Downside 14.1% Upside Short Interest Healthy Dividend Strength Weak Sustainability N/A News Sentiment 0.48 Insider Trading Selling Shares Projected Earnings Growth 13.62% See Full Details Meta’s capital return is robust, at about 20% of revenue and 70% of free cash flow. Capital return amounted to $7.59 billion in Q2, including $6.32 billion in share repurchases and $1.27 billion in dividend payments. Share repurchases were enough to offset share-based compensation in the quarter, reducing the count by a slim 0.07%. The dividend is still small, about 0.4% in yield, but it is expected to grow over time. Analysts Support for Meta is Strong: New All-Time Highs Are Forecast The analysts' response to Meta’s Q2 results is overwhelmingly positive. Marketbeat.com tracks more than two dozen revisions, all of which increased price targets. The takeaway for investors is that the low-end of the range, consensus estimate, and high-end range are increasing and point to a firming consensus that this stock will move to the $550 to $600 region, a gain of 7% to 17% by year’s end. Outliers exist, but more than 62% of targets are in that range, which puts the market at a new all-time high. The takeaway from the analysts' chatter is that Meta’s bad days are behind it. The company turned a corner when it rebuilt its ad stack around AI technology and is nicely integrating it across the network. The result is increased engagement, seen in the user count and ad leverage, and it is expected to pay off over time. Results in Q2 are only the beginning of Meta’s AI boom. Meta Platforms Rises: Trend-Following Signal is in Play Meta Platform stock price jumped more than 7% in after-hours trading and will likely open with a gap. The move shows strong support at a critical moving average and confirms the uptrend in price action. The question is whether Meta stock will move up to set a new high now or if the market will pull back to close the gap before moving higher. In either case, Meta Platforms will likely set a new high soon and could surpass $600 by the year’s end. The guidance for Q3 is also robust, expecting revenue in a range with its midpoint above the consensus target. Guidance is likely cautious. Before you consider Meta Platforms, 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 Meta Platforms wasn't on the list. While Meta Platforms currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Procter & Gamble Stock Drops Despite Earnings Beat – What to Know 2024-08-01 12:10:00+00:00 - Procter & Gamble NYSE: PG is in the consumer staples sector and is by far the world’s largest company in the household products industry, with a market capitalization of over $350 billion. The next closest is Colgate-Palmolive NYSE: CL at just over $80 billion. The company released Q4 2024 and full-year financial results on July 30, 2024. We'll dive into the annual report to overview operations, review the quarterly results, and highlight key aspects to watch going forward. Get Colgate-Palmolive alerts: Sign Up Breaking Down Procter & Gamble’s Business Segments Procter & Gamble Today PG Procter & Gamble $165.69 +4.93 (+3.07%) 52-Week Range $141.45 ▼ $170.92 Dividend Yield 2.43% P/E Ratio 27.07 Price Target $174.52 Add to Watchlist Procter & Gamble has five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine, and Family Care. Beauty includes hair care, deodorants, and skin care products. Grooming includes shaving products. Health Care includes oral care products, pain relievers, and vitamins. Fabric and Home Care includes laundry detergent, dish soap, and multipurpose cleaners. Baby, Feminine, and Family Care includes diapers, paper towels, and toilet paper. Fabric care products (laundry detergents and additives) make up an outsized percentage of net sales, coming in at 23% in 2023. The next closest product category is home care (surface cleaners, soaps) at 12%, followed by baby care at 10%. The company’s biggest customers are Walmart and its affiliates, which accounted for 15% of sales in 2023. No other customer made up more than 10% of sales, and the top 10 customers accounted for 40% of sales. Brands the company controls include Head & Shoulders, Old Spice, Gillette, Crest, Vicks, Tide, Dawn, Pampers, Bounty, and Charmin. Procter & Gamble Beats Earnings Estimates, Misses on Revenue Adjusted earnings per share were above analysts' expectations at $1.40, while revenue fell short by $210 million at $20.53 billion. Revenue was essentially flat from a year ago, while adjusted EPS grew by 3 cents. The midpoint full-year EPS guidance for fiscal 2025 comes in slightly above analysts' expectations at $6.98. Foreign exchange hurt P&G in the quarter. It reduced net sales by 2%, which offset the benefits of higher volume and prices. Removing this effect, organic sales grew by 2%. However, this number still came in well below analysts' expectations of around 3.5%. This contributed to the stock being down nearly 5% on the day of the release, one of the worst single-day declines for the stock in recent memory. The Procter & Gamble Company (PG) Price Chart for Thursday, August, 1, 2024 Procter & Gamble Stock Analysis: Key Points and Future Prospects It seems like a bit of an overreaction for shares to be down so much on an earnings release that, although it was not good, still resulted in the firm beating on adjusted EPS. The company increased its gross margin by 180 basis points, driven largely by increased productivity. It also showed a decent ability to raise prices; volumes increased in two out of the three segments where prices increased. Right now, the market is rewarding companies that blow expectations out of the water and punishing those that show any weakness. That may be justified. Many companies, including Procter & Gamble, seem overvalued compared to history. The company's forward price-to-earnings ratio of 23.6 sits at the 94th percentile (with 100 being the highest) of its range over the last 20 years. It also sits in the 72nd percentile of the overall U.S. market, which is rather high for a consumer staples company. Procter & Gamble MarketRank™ Stock Analysis Overall MarketRank™ 4.48 out of 5 Analyst Rating Moderate Buy Upside/Downside 5.0% Upside Short Interest Healthy Dividend Strength Strong Sustainability -3.23 News Sentiment 0.34 Insider Trading Selling Shares Projected Earnings Growth 6.60% See Full Details The company has performed relatively well this year, up around 10%, better than 70% of U.S. companies. This makes sense, considering things like low consumer sentiment. In tough times, people are reluctant to cut consumer staples as they are essential products. These types of firms tend to perform well comparatively in bad times as people cut back on discretionary purchases. CEO John Moeller sees further benefits to the company if feelings about the economy become worse. In the earnings call, he talked about this regarding the company’s dish soap and paper product business. When sentiment is down, people eat at home and stay home more often, causing them to wash dishes by hand and use more paper towels and toilet paper. Seeing a further decline in consumer sentiment and increases in the Consumer Price Index for Food Away from Home could indicate increased demand for these P&G products. Before you consider Colgate-Palmolive, 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 Colgate-Palmolive wasn't on the list. While Colgate-Palmolive currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. 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Meta beats Q2 expectations but warns of 'significant' spending expansion in 2025 2024-08-01 04:15:00+00:00 - Facebook and Instagram parent Meta (META) reported its second quarter earnings after the bell on Wednesday, beating Wall Street's expectations on the top and bottom lines. But the company warned it expects to see "significant" capital expenditures growth in 2025. "While we do not intend to provide any quantitative guidance for 2025 until the fourth quarter call, we expect infrastructure costs will be a significant driver of expense growth next year as we recognize depreciation and operating costs associated with our expanded infrastructure footprint," CFO Susan Li said in a statement. AI spending is a key measure for Wall Street as investors anxiously await a return on Big Tech’s investments in the technology. During its prior quarter, Li raised the company’s full-year total expense estimate from between $94 billion and $99 billion to between $96 billion and $99 billion. For the second quarter, Meta saw earnings per share (EPS) of $5.16 on revenue of $39.07 billion. Analysts were expecting EPS of $4.74 on revenue of $38.3 billion, according to estimates compiled by Bloomberg. Meta recorded EPS of $2.98 on revenue of $31.9 billion during the same period last year. The company’s Family of Apps revenue, which includes revenue from Facebook, Instagram, WhatsApp, and Messenger, clocked in at $38.72 billion, higher than estimates of $37.7 billion. Meta saw revenue of $31.7 billion in the segment in Q2 last year. Meta stock climbed more than 4% following the report. Meta CEO Mark Zuckerberg during an appearance at SIGGRAPH 2024 in Denver, Colo. (AP Photo/David Zalubowski) (ASSOCIATED PRESS) Beyond its advertising revenue, Wall Street is still trying to determine how much longer Meta will need to plow money into AI before it sees some kind of revenue payoff. Last week, CEO Mark Zuckerberg announced Meta’s latest open-source large language model (LLM) called Llama 3.1. What’s more, the Facebook founder said the industry should focus on open-source AI rather than closed-source models like OpenAI’s ChatGPT. Meta’s Reality Labs segment, which includes its mixed reality hardware and software, saw revenue of $353 million in the quarter versus expectations of $376 million. That's better than the company reported in the same quarter last year, but the segment continues to hemorrhage cash. In Q2, Meta reported that the segment lost some $4.49 billion, slightly below expectations of $4.53 billion. It lost $3.8 billion in Q1. The division has also been plagued by turnover and a lack of clear vision, adding to Reality Labs’ troubles, Yahoo Finance’s Yasmin Khorram reported. Meta’s announcement also comes after Texas Attorney General Ken Paxton announced on Tuesday that he secured a $1.4 billion settlement between the state and Meta over the company’s alleged use of Texans’ biometric data without their permission for its Tag Suggestions feature. Story continues Subscribe to the Yahoo Finance Tech newsletter. (Yahoo Finance) Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley. For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here Read the latest financial and business news from Yahoo Finance StockStory aims to help individual investors beat the market.

Carvana forecasts 2024 core profit above Wall Street expectations 2024-08-01 04:11:00+00:00 - (Reuters) -Carvana forecast annual core profit above analysts' expectations on Wednesday, driven by strong demand for its used vehicles and improved inventory management, which helped the used-car retailer protect its margins. Shares of the company were up 11% in aftermarket trading. During the pandemic, used car retailers such as Carvana increased their vehicle inventory, often buying at inflated prices due to skewed new vehicle supply. However, as new vehicle productions normalized, Carvana struggled to clear its inventory of used cars forcing it to sell them at prices lower than acquisition costs and impacting margins. Carvana, best known for its vehicle vending machines, has been working to improve margins and return to profitability. Earlier this year, it reported its first-ever annual profit and has since been reducing inventory and cutting advertising and other expenses to strengthen its balance sheet. The company now expects its 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $1 billion to $1.2 billion, compared with analysts' average estimates of $890.97 million, according to LSEG data. "We not only led the industry in retail unit growth, which accelerated from Q1, but also delivered 1.4% net income margin and a new record 10.4% adjusted EBITDA margin, which sets an all-time high water mark for public automotive retailers," CEO Ernie Garcia said. Total retail units sold in the second quarter rose 33% to 101,440 and with the company expecting this number to rise sequentially in the third quarter. Carvana reported a net income of $48 million or 14 cents per share, for the second quarter ended June 30, compared to a net loss of $105 million, or 55 cents per share, a year earlier. (Reporting by Shivansh Tiwary and Nathan Gomes in Bengaluru; Editing by Tasim Zahid)

Facebook parent Meta forecasts upbeat Q3 revenue after strong quarter 2024-08-01 04:07:00+00:00 - By Katie Paul and Yuvraj Malik (Reuters) -Meta Platforms beat market expectations for second-quarter revenue on Wednesday and issued a rosy sales forecast for the third quarter, signaling that robust digital-ad spending on its social media platforms can cover the cost of its artificial-intelligence investments. Shares of the company were up 4% after the bell. The Facebook and Instagram parent said it anticipates third-quarter revenue in the range of $38.5 billion to $41 billion, the midpoint of which is slightly higher than analysts' estimates of $39.1 billion, according to LSEG data. It said revenue rose 22% to $39.1 billion for the April to June period, compared with analysts' expectations of $38.3 billion. "Any apprehensions investors may have had about Meta's spending on AI and the metaverse are likely to be allayed by this quarter's results," said eMarketer analyst Max Willens. "With its margins as healthy as they are, Meta's investors should feel comfortable with the company's vigorous investments in its plans for the future," Willens added. Shares of social media app Snap, which like Meta relies heavily on digital advertising, rose 3% after the Meta report. Although Meta's costs rose 7% in the second quarter, its revenue jump topped expense growth substantially and led to a 9-point rise in operating margin, to 38% from 29%. Family daily active people (DAP), a metric used by the company to track how many unique users per day open any one of its apps, was likewise up 7% year-over-year to an average of 3.27 billion for June. Meta's earnings come after disappointing results posted by fellow tech industry powerhouses which suggested the payoff from hefty investments in AI technology may take longer than Wall Street had hoped. Microsoft said on Tuesday it would spend more money this fiscal year to build out AI infrastructure, while Google parent Alphabet warned last week that its capital spending would stay elevated for the rest of the year. Like both of those companies, Meta has been plowing billions of dollars into its data centers in an effort to capitalize on the generative AI boom. Its shares sank in April after it disclosed a higher-than-expected expense forecast, quickly knocking $200 billion off its stock-market value. That ended a run of strong quarters for Meta, which has climbed back from a share price meltdown in 2022 by slimming its workforce and leaning in to investor excitement about generative AI technologies. Meta has picked up hiring over the last year, particularly of AI engineers, while continuing to quietly dissolve teams elsewhere. It said on Wednesday that its head count was down 1% year-over-year. Story continues The social media giant also signaled it would continue to spend big on AI infrastructure, anticipating 2024 capital expenditure would come in between $37 billion and $40 billion, up $2 billion at the lower end from its previous forecast of $35 billion to $40 billion. It left its total expense forecast for the year unchanged at $96 billion to $99 billion, while cautioning that infrastructure costs would continue to be a "significant driver" of expense growth in 2025. Losses associated with the company's metaverse unit Reality Labs, which produces its virtual-reality headsets, smart glasses and upcoming augmented-reality glasses, would also continue to "increase meaningfully," it said. Meta has been updating its ad-buying products with AI tools and short video formats to boost revenue growth, while also introducing new AI features like chat assistants to drive engagement on its social media properties. In a departure from its peers, Meta has released its AI models mostly for free, wagering that this approach will pay off in the form of innovative products, less dependence on would-be competitors and greater engagement on its core social networks. The company also stands to benefit if developers use its free models over paid ones, which would undercut the business models of rivals. Developers generally see Microsoft-backed OpenAI as the industry leader, but Meta revealed key performance gains with its Llama 3 release last week that could make its models more attractive. (Reporting by Yuvraj Malik in Bengaluru and Katie Paul in New YorkEditing by Sriraj Kalluvila and Matthew Lewis)

Nvidia stock soars 12% after strong AMD results, bullish call from Morgan Stanley 2024-08-01 04:05:00+00:00 - Nvidia (NVDA) stock rallied more than 12% on Wednesday following better-than-expected guidance from peer AMD (AMD) and a bullish call from analysts at Morgan Stanley after a more than 20% drop in the stock. AMD's quarterly results out late Tuesday quelled some concerns that the AI trade may have run its course as investors rotated out of Big Tech over the past month. The company beat expectations on the top and bottom lines and posted a better-than-expected outlook for the third quarter. Additionally, tech giant Microsoft (MSFT) revealed higher spending on data center infrastructure in its latest quarterly results. AI chip suppliers like AMD and Nvidia stand to benefit from Big Tech's increased investments. "The fear of some of this momentum not lasting, or maybe fear that the revenue trajectory wouldn't be there over the next 12 months or so — I think that is starting to ease," CFRA senior equity analyst Angelo Zino told Yahoo Finance on Wednesday. Chip peers including Broadcom (AVGO), Micron (MU), Taiwan Semiconductor (TSM), ASML (ASML), and Super Micro (SMCI) also rallied on Wednesday. Nvidia rallied nearly 13% on Wednesday as Big Tech continues to spend on AI data center infrastructure. Morgan Stanley's bullish call on the AI chip maker also sent shares higher. Nvidia was also boosted on Wednesday by a note out from Morgan Stanley analysts led by Joseph Moore, who moved the stock to a 'Top Pick' after a recent pullback from record highs reached in June. The firm wrote the roughly 25% in Nvidia stock "sell-off presents a good entry point as we continue to hear strong data points short term and long term, with overblown competitive concerns." Morgan Stanley cited five main drivers of the recent decline in Nvidia — spending plans, competition, export controls, supply chain fears, and valuation worries — but said, "Through those concerns, the earnings environment is likely to remain strong, for Nvidia and for the whole AI complex." The firm maintained its Overweight rating and $144 price target on the stock. Nvidia stock is still up more than 135% this year, outpacing the Nasdaq's more modest 17% gain. The company is set to issue its next quarterly report on Wednesday, Aug. 28. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for the latest technology news that will impact the stock market Read the latest financial and business news from Yahoo Finance StockStory aims to help individual investors beat the market.

Get paid to visit luxury hotels and spas around the world—here's how 2024-07-31 22:21:00+00:00 - Have you ever wanted to make taking luxury vacations your full-time job? That's the opportunity available with the newest round of openings at Forbes Travel Guide, which evaluates the best hotels, restaurants, spas and cruises in the world. FTG dispatches evaluators to luxe properties around the globe, tasking them with remaining incognito as they inspect each destination and grade it on more than 900 standards. The guide is looking for a number of evaluators in both full time and independent contractor capacities in the Americas, Asia and Europe. Once selected, the FTG inspectors will go through a comprehensive training to teach them to "behave like a normal guest" while carrying out their duties without any hotel employees or management realizing they're being evaluated. An important part of keeping up the ruse, says FTG President of Ratings Amanda Frasier, is that evaluators are in charge of planning all their travel to the destinations that they are instructed to visit. "They make their own bookings, they check their own availability, they make their own reservations and pay on their own credit cards," Frasier says. "We want our guests to think and behave like an average luxury traveler and carry out this role as if they were actually traveling." Evaluators are expected to travel at least 10 days each month, including on weekends, and must have valid passports for international trips. They should also make sure their drivers licenses are up to date. "Having a clean and current license is helpful because some of the destinations we go to are remote," Frasier says. FTG inspectors are required to try food and drinks at the properties they visit in order to create a comprehensive appraisal. Though they don't need to eat their way through a hotel's entire menu, they need to have at least one sit-down meal, a drink at the bar and an in-room dining experience during each trip. Because of the amount of travel and logistics required, the ideal FTG candidate is expected to be detail-oriented as well as located near a major airport. The annual salary begins between $60,000 and $70,000 and can increase with experiences and responsibilities, an FTG representative told Make It. Being fully comped for each trip isn't the only perk of the job. Because evaluators use their own cards when booking stays and travel, they accumulate a substantial amount of credit card rewards. For trips where a companion is required, FTG will cover their expenses as well One thing that will disqualify you right off the bat? Having a robust social media presence. FTG prefers candidates who don't post on social media, are comfortable maintaining a low profile and are even willing to "possibly reduce their online footprint." "It's really important that every property has earned their way onto that list," Frasier says, referring to FTG's annual hotel ranking. "We train our evaluators to notice if things are unnatural and forced." You can view all of FTG's openings here. Want to stop worrying about money? Sign up for CNBC's new online course Achieve Financial Wellness: Be Happier, Wealthier & More Financially Secure. We'll teach you the psychology of money, how to manage your stress and create healthy habits, and simple ways to boost your savings, get out of debt and invest for the future. Start today and use code EARLYBIRD for an introductory discount of 30% off through September 2, 2024. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.

Lithium giant Albemarle halts Australia plant expansion, reviews costs on weak lithium prices 2024-07-31 21:57:00+00:00 - A worker walks past a pile of lithium ore at a Talison Lithium Ltd. site, a joint venture between Tianqi Lithium Corp. and Albemarle Corp., in Greenbushes, Australia. Lithium mining giant Albemarle will halt the expansion of a manufacturing plant in Australia, as the company reviews costs due to headwinds from weak lithium prices. The impacted facility, the Kemerton plant in Australia, is where the company produces battery-grade lithium hydroxide for electric vehicles and other products. It will also idle a lithium processing line at the plant and focus production on a single line. The workforce at Kemerton will be reduced by 40%, Albemarle CEO Kent Masters told CNBC in an interview Wednesday. The plant's production capacity will fall to 25,000 tons from 50,000 tons currently as the line is idled, Masters said. Albemarle had originally planned to expand Kemerton to four processing lines with a capacity of 100,000 tons. The company is halting construction on the third line, after cancelling plans for the fourth line. The decision comes as the company reported a second-quarter net loss of $188 million, or $1.96 per share, compared with a profit of $650 million, or $5.52 per share, in the year-ago period. Excluding a $215 million after-tax charge due to capital project asset write-offs related primarily to the cancelled fourth processing line at Kemerton, the company earned 4 cents per share. Sales fell 39% to $1.4 billion from $2.37 billion in the same period a year ago. Shares were down about 1% in extended trading after the results.

Michigan Court Clears Way for Higher Wages, Overruling Legislature 2024-07-31 21:49:03.497000+00:00 - The Michigan Supreme Court ruled on Wednesday that legislators had unconstitutionally subverted a voter-sponsored proposal to raise the state’s minimum wage. As a result of the 4-to-3 ruling, labor groups expect Michigan’s hourly minimum wage of $10.33 to increase by at least $2 in February, once the state treasurer calculates inflation adjustments. There will be subsequent cost-of-living increases through 2029. In addition, tipped workers, who currently can be paid as little as $3.84 per hour, will be subject to the same minimum as all other workers by 2029, putting Michigan on a path to be the eighth state to establish a standard wage floor for all workers. Labor activists and union groups celebrated the Michigan court’s decision. “We have finally prevailed over the corporate interests who tried everything they could to prevent all workers, including restaurant workers, from being paid a full, fair wage with tips on top,” Saru Jayaraman, the president of One Fair Wage, a national nonprofit organizing group, said in a statement.

United Airlines suspending daily flights to Israel amid rising tensions 2024-07-31 21:40:00+00:00 - United Airlines said it is suspending daily flights to Israel starting on Wednesday, citing security concerns amid rising tensions in the Middle East. The decision comes after Hamas political leader Ismail Haniyeh was assassinated in Iran's capital after attending the inauguration of the country's new president. Iran blamed Israel for the strike, with its foreign ministry saying the U.S. also bears responsibility as Israel's biggest ally. The Jerusalem Post reported that Delta Air Lines also intends to suspend flights to Israel. The carrier didn't immediately respond to a request for comment from CBS News. United had resumed direct flights between the U.S. and Tel Aviv in June, following a decision last year to suspend flights in the wake of the October 7 Hamas attack in Israel. "Beginning with this evening's flight from Newark Liberty to Tel Aviv, we are suspending for security reasons our daily Tel Aviv service as we evaluate our next steps," United said in a statement on Wednesday. "We continue to closely monitor the situation and will make decisions on resuming service with a focus on the safety of our customers and crews." British Airways told CBS News that it is still operating flights to and from Tel Aviv and that it hasn't canceled any flights "at this time." If a flight is canceled or significantly delayed, airlines must refund passengers "promptly," according to the U.S. Department of Transportation. The agency defines "prompt" as within seven business days if a ticket was purchased using a credit card, and within 20 days if a customer used cash or a check. —With reporting by CBS News' Kathryn Krupnik.

Arm issues light earnings guidance as the company stops disclosing number of chips reported as shipped 2024-07-31 21:36:00+00:00 - Rene Haas, chief executive officer of Arm Holdings plc, during the Computex conference in Taipei, Taiwan, on Tuesday, June 4, 2024. Arm shares fell more than 13% in extended trading on Wednesday after the chip-architecture maker issued light earnings guidance for the current quarter and the full fiscal year. Here's how the company did in the fiscal first quarter compared with LSEG consensus: Earnings per share: 40 cents adjusted vs. 34 cents expected 40 cents adjusted vs. 34 cents expected Revenue: $939 million vs. $902.7 million expected Arm's revenue grew 39% year over year in the quarter, which ended on June 30, according to a shareholder letter. Net income came to $223 million, or 21 cents per share, up from $105 million, or 10 cents per share, in the year-ago quarter. But Arm maintained its full-year view of $1.45 to $1.65 in adjusted earnings per share on $3.8 billion to $4.1 billion in revenue. Analysts surveyed by LSEG had been looking for $1.58 in adjusted earnings per share and revenue of $4.02 billion. The middle of the revenue guidance range factors in a growth rate from royalties in the low twenties, down from a forecast from April in the mid twenties, Jason Child, Arm's finance chief, said on a conference call with analysts. For the fiscal second quarter, Arm sees adjusted earnings of 23 to 27 cents per share on $780 million to $830 million in revenue. That would imply no growth at the middle of the range. Analysts polled by LSEG had expected 27 cents per share and $804.1 million in revenue. Revenue from royalties — a percentage of average selling price or a set amount per chip when they ship — totaled $467 million. That was up 17%, but it was lower than the $486.6 million consensus among analysts polled by StreetAccount. License and other revenue, at $472 million, was up 72% and above the $418.3 million LSEG consensus. The company said that as of this quarter, it is no longer reporting the number of Arms-based chips that were reported as shipped. "We previously considered the number of chips reported as shipped by our customers as a key performance indicator because it represented the acceptance of our products by companies who use chips in their products (e.g., our customers' customers)," Child and Arm CEO Rene Haas wrote in the letter. "As we shift our focus to higher-value, lower-volume markets such as data center servers, AI accelerators and smartphone applications processors, the number of chips reported as shipped is less representative of our performance as the growth in royalty revenue is concentrated in a smaller number of chips." In the fiscal fourth quarter, Arm had 7 billion chips reported as shipped, which were down 10% year over year. Previously management blamed the trend on an inventory correct in industrial internet of things chips, which are high in volume but relatively low in value. The company is now investing in Arm Compute Subsystems that will lower development costs and accelerate time to market, Haas and Child wrote. They said the technology also can boost royalty revenue fees per chip. Arm added two high-value Arm Total Access licenses in the quarter, bringing the total to 33. During the quarter, Microsoft started selling Surface PCs that draw on Qualcomm's Arm-based chips. Before Arm issued the results, its stock had risen 93% so far this year, well ahead of the S&P 500 index, which has gained 16% in the same period. WATCH: Arm CEO Rene Haas talks the impact of AI and smartphone demand

The Fed holds interest rates steady. Here's when a rate cut could happen. 2024-07-31 21:33:00+00:00 - Although the Federal Reserve on Wednesday left its benchmark interest rate unchanged, as widely expected, Chair Jerome Powell said the "time is drawing near" for the central bank to begin trimming borrowing costs. That could occur as soon as the Fed's next policy meeting in September, assuming economic data continues to show cooling inflation, he added. Members of the Federal Open Market Committee, the central bank's rate-setting panel, said in a policy statement on Wednesday they will hold the federal funds rate in a range of 5.25% to 5.5%, leaving it at its highest level in 23 years. The Fed's announcement, which was widely expected by investors, means the federal funds rate has been parked at that level since July 2023, when the central bank last raised rates. The statement included a few important changes in the Fed's outlook. For one, the Fed described inflation as "somewhat elevated," a more moderate description than its June characterization as simply "elevated." And it stressed its mandate to focus on full employment, as well as taming inflation. Those changes were underscored by Powell, who stressed that the Fed has been pleased by recent data showing a slowdown on prices. The time for a rate cut "is approaching, and if we do get the data we hope we get, then reduction of our policy rate could be on the table at our September meeting," Powell told reporters at a press conference following a two-day meeting on monetary policy. Prior to Wednesday's statement, about 9 in 10 economists had penciled in the September meeting for the Fed's first interest rate cut since 2020, pointing to inflation that is easing faster than expected. But Powell stressed that the decision will depend on forthcoming inflation data, and he sidestepped a question on whether there might be additional rate cuts in 2024. "You would think, base case, that policy rates would move down from here, but I don't want to give specific guidance on the pace of when that would happen," he noted. Some Wall Street analysts still forecast multiple rate cuts in 2024, which they predict will kick off with the September meeting. Earlier this year, the Fed had projected just one reduction this year. "As expected, the Fed is setting the table for interest rate cuts starting at their next meeting in September," said Ryan Detrick, chief market strategist at Carson Group, in an email. "The reality is inflation is slowing and the Fed doesn't need rates this high anymore." Labor market concerns A growing concern is the nation's labor market, which is showing signs of fading. Job growth has slowed to an average 177,000 a month for the past three months, compared with a three-month average of 275,000 a year ago. The July jobs report will be released on Friday, with economists forecasting payroll gains of 175,000 this month and the unemployment rate holding steady at 4.1%, according to financial data service FactSet. Fed officials have said they are seeking to balance the need to keep rates high enough to quash inflation with avoiding a recession. The Fed's dual mandate is to keep prices stable to ensure maximum employment. "We look at the two goals, and if one of them is farther away than the other, you concentrate on the one that is farther away," Powell said. "For the last couple of hears the best service we could do for the American people was to focus on inflation." He added, "But now, labor market has softened, the inflation is probably a little farther from its target than employment, but the risks to the employment mandate are real now." Rate cuts before the election? Powell was asked by CBS News' Jo Ling Kent about the timing of rate cuts, given that a September cut would occur two months before the U.S. presidential election. Former President Donald Trump recently told Bloomberg News the Fed should refrain from easing rates shortly before voters head to the polls. But Powell stressed that the Fed is a non-political agency, with a mandate from Congress to focus on maintaining price stability and full employment. The FOMC's discussions focus "strictly" on economic data, he added. "We never use our tools to support any political outcome," Powell said. "If we stick to our part, that will benefit all Americans — if we get it right, we will have price stability, people will find jobs. Everyone will benefit."

US road safety agency will look into fatal crash near Seattle involving Tesla using automated system 2024-07-31 21:29:22+00:00 - DETROIT (AP) — U.S. road safety investigators say they will look into an April crash near Seattle after authorities determined that a Tesla was operating on the company’s “Full Self-Driving” system when it hit and killed a motorcyclist. The National Highway Traffic Safety Administration said Wednesday that it is gathering information on the crash from law enforcement officers and Tesla. Investigators from the Washington State Patrol determined that the system was in use after downloading information from the event-data recorder on the 2022 Tesla Model S involved in the crash, agency spokesman Capt. Deion Glover said Tuesday. No charges have been filed against the driver but the investigation is still under way, Glover said. Tesla CEO Elon Musk said last week that “Full Self Driving” should be able to run without human supervision by the end of this year. He has been promising a fleet of robotaxis for several years. During the company’s earnings conference call, he acknowledged that his predictions on the issue “have been overly optimistic in the past.” Musk is staking much of Tesla’s future on development of self-driving software and a humanoid robot. He has told investors that Tesla should be seen as a robotics and artificial intelligence company, and he has scheduled an event in October to reveal a new robotaxi. Tesla did not return messages seeking comment. Tesla has two partially automated driving systems, “Full Self-Driving,” which can take on many driving tasks even on city streets, and Autopilot, which can keep a car in its lane and away from objects in front of it. Sometimes the names are confused by Tesla owners and the public. Tesla says at present neither system can drive itself and that human drivers must be ready to take control at any time. “Full Self-Driving” is being tested on public roads by selected Tesla owners. Twice NHTSA has made Tesla recall “Full Self-Driving” because it disobeyed traffic laws. It also forced a recall of Autopilot, alleging that Tesla’s system for making sure drivers pay attention was inadequate. In April, the agency began investigating whether the Autopilot recall actually worked.