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Premier League clubs accused of greed as total with gambling sponsors hits 11 2024-07-23 17:53:00+00:00 - Premier League clubs have been accused of greed for signing “desperate deals for a few extra quid”, after Bournemouth took to 11 the contingent with a gambling company as their front-of-shirt sponsor for at least the coming season. A ban kicks in for the 2026-27 campaign. Bournemouth’s move, announced on Tuesday, means more than half of England’s top-flight teams will have a betting company on the front of their shirt, up from eight last season. Chelsea are the only Premier League club yet to announce a front-of-shirt sponsor. They began last season without one after supporters lobbied against a deal with an online casino. Top-flight clubs agreed to restrict betting sponsorships last April but with that ban two years away clubs continue to strike deals with gambling firms, including cryptocurrency casinos and Asian betting companies. Premier League clubs voluntarily restricting sponsorships from 2026-27 provoked a mixed response, with campaigns such as The Big Step, dedicated to removing the ubiquitous gambling advertising in football, wary about loopholes and brands still being permitted on shirt sleeves and advertising hoardings. Aston Villa, Bournemouth, Brentford, Crystal Palace, Everton, Fulham, Leicester, Nottingham Forest, Southampton, West Ham and Wolves will display a gambling company on the front of their shirts. “Premier League clubs must know that gambling harms are a serious public health issue that destroys many lives in their communities and around the world, yet continue to blindly sign these desperate deals for a few extra quid,” said a spokesperson from The Big Step. Quick Guide Premier League clubs' front-of-shirt sponsors 2024-25 Show Eleven clubs have a gambling company Aston Villa Bournemouth Brentford Crystal Palace Everton Fulham Leicester Nottingham Forest Southampton West Ham Wolves Nine do not Arsenal Brighton Chelsea (no sponsor announced) Ipswich Liverpool Manchester City Manchester United Newcastle Tottenham Was this helpful? Thank you for your feedback. Referencing how Spain, Italy, Belgium and the Netherlands prohibit clubs from shirt-sponsorship deals with betting companies, the charity, founded in 2019, said: “The sport’s greed does not justify exposing millions of young fans to addictive and harmful products. The government must follow the lead of multiple European countries and end gambling advertising and sponsorship in football.” Bournemouth announced a “record-breaking” two-year contract with the Asian company bj88, which replaces Dafabet, the sponsor for the past two seasons. The latest deal is understood to be worth almost double the previous one and almost double the sum offered by non-betting companies. Last week, Southampton, promoted to the Premier League last season, announced a partnership with Rollbit, a “crypto and NFT casino”, though the club made no such reference, describing it as “an innovator in the world of online gaming”. Crystal Palace, whose shirts were sponsored by the vehicle trader cinch last season, and Wolves, previously sponsored by AstroPay, have confirmed betting partners as their shirt sponsor. Wolves and Palace announced “record” deals, the former with the Vietnamese company DeBet and the latter with the Asian operator Net88. The online gambling and crypto firm BC Game has replaced King Power as promoted Leicester’s shirt sponsor. Luton, relegated to the Championship last season, are among 35 clubs who back The Big Step and the club’s chief executive, Gary Sweet, has outlined their hardline stance against partnering with the industry. He estimated Luton’s decision to forgo gambling sponsors in the Premier League cost them about £3m last season. Luton were the only Premier League or English Football League club not to show gambling adverts in their stadium at league games. Tranmere, AFC Wimbledon and Forest Green are other supporters of The Big Step. Swansea City moved away from being associated with betting companies before the 2020-21 season. skip past newsletter promotion Sign up to Football Daily Free daily newsletter Kick off your evenings with the Guardian's take on the world of football 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 Tony Bloom, the Brighton owner, has made a fortune from sports betting but previously endorsed the ban on front-of-shirt sponsors. Brighton’s long-term sponsor is American Express. “I don’t think having gambling sponsorship on shirts is good,” he said. “But I understand the gambling companies pay best so it’s a difficult decision for clubs to turn them down.” On Thursday, the Gambling Commission is expected to release figures pertaining to its most recent survey. Last November, the commission released data suggesting as many as 2.5% of the adult British population may be experiencing “problem gambling”, which would equate to about 1.3 million people. The Premier League said it had become the first sports league in the UK to ban front-of-shirt sponsorship voluntarily and that it was “working with other sports on the development of a new code for responsible gambling sponsorship”.
Walter Shapiro, Political Columnist With a Contrarian Streak, Dies at 77 2024-07-23 17:35:00+00:00 - Walter Shapiro, a canny, penetrating and often contrarian political columnist whose career included stints as a presidential speechwriter, stand-up comic, professor, author and, as a recent college graduate, congressional candidate, died on Sunday in Manhattan. He was 77. The cause of his death, in a hospital, was an infection related to his recent treatment for cancer, his wife, the journalist and author Meryl Gordon, said. Mr. Shapiro’s lifelong passion for politics was piqued in 1962, when he was a high school student in Norwalk, Conn., and his mother gave him a copy of “The Making of the President 1960” by Theodore H. White. The next year, at 16, he took his first airplane flight to attend President John F. Kennedy’s funeral. He began his career in journalism at Congressional Quarterly and went on to write for Washington Monthly, The Washington Post, Newsweek, Time, USA Today, The New Republic and Esquire. He later wrote for Salon, Yahoo News, Politics Daily and Roll Call.
US opens investigation into Delta after airline cancels thousands of flights 2024-07-23 17:24:00+00:00 - The US transportation department said on Tuesday it was opening an investigation into Delta Air Lines after the carrier canceled more than 5,000 flights since Friday as it struggles to recover from a global cyber outage that snarled airlines worldwide. While other carriers have been able to resume normal operations, Delta has continued to cancel hundreds of flights daily because of problems with its crew scheduling system. Darren Hartmann, chairman of the Air Line Pilots Association at Delta, joined the chorus of critics on Tuesday, writing to members lamenting their “inability to contact the company in any capacity and the feeling that we have been abandoned in the system” during the disruptions. Since Friday Delta has been cancelling 30% or more of its flights daily through Monday, axing 444 flights on Tuesday, or 12% of its schedule as of 11.00am and delaying another 590, or 16%, according to FlightAware, after cancelling 1,150 on Monday. The transportation secretary, Pete Buttigieg, said on Tuesday the investigation was to “ensure the airline is following the law and taking care of its passengers during continued widespread disruptions … Our department will leverage the full extent of our investigative and enforcement power to ensure the rights of Delta’s passengers are upheld.” Delta said it was in receipt of the USDOT notice of investigation and was fully cooperating. “Delta teams are working tirelessly to care for and make it right for customers impacted by delays and cancellations as we work to restore the reliable, on-time service they have come to expect from Delta,” the airline said. Delta shares were down 0.5% in early trading. Delta’s CEO, Ed Bastian, said on Monday it would take the US carrier another couple of days before its operations recover. A software update by the global cybersecurity firm CrowdStrike triggered system problems for Microsoft customers, including many airlines, on Friday. Delta is widely respected for running a reliable operation. Analysts say its on-time performance in terms of arrivals and departures has helped the airline cement its position as a premium airline. The issue has left customers fuming. Many complained they waited hours for assistance as the airline’s helplines were overwhelmed. Some were forced to rent cars, driving hundreds of miles to get to destinations, while others said they would have to wait days for new flights. In December, Southwest Airlines agreed to a record-setting $140m civil penalty over the 2022 holiday meltdown that led to 16,900 flight cancellations and stranded 2 million passengers, resolving a USDOT investigation.
Global IT failure has left me fearing the word ‘upgrade’ 2024-07-23 16:58:00+00:00 - The worldwide chaos arising from CrowdStrike’s misbegotten upgrade of IT systems confirms my view that “upgrade” has become one of the most feared words in the English language, possibly even more than “Trump” (Slow recovery from IT outage begins as experts warn of future risks, 20 July). Robert Parkhill London On behalf of the computer illiterates who just heard the word “Windows” and froze, is it safe to turn on our computers yet? My email was hacked last month and I am still not fully recovered. Sent from my phone… Margaret Squires St Andrews, Fife Re how to fight back on water bills (Letters, 22 July), my strategy was to email my water supplier, Affinity, asking for a refund on the sewage disposal bill it charged on behalf of Thames Water, which had failed to dispose of the sewage properly. It told me that it was a Thames Water problem. After a couple of phone calls and emails to Thames Water, I received a cheque for £30 in compensation. Barry A Coomber London Dr Craig Hambling (Letters, 22 July) states that he is “a medieval historian of education and physical training”. Clearly his vocation leads to remarkable longevity. We should all take note. David Horwell Harpenden, Hertfordshire Last week, when out shopping, the sole of my sandal suddenly came unstuck and an elderly lady, seeing my predicament, delved into her bag and produced a rubber band (Letters, 22 July). I managed to secure sole to upper and got home safely, though with a strange gait. Viv Rose Southampton
Alphabet meets earnings expectations but misses on YouTube ad revenue 2024-07-23 16:56:00+00:00 - Alphabet's revenue was up 14% year over year, driven by search as well as cloud, which surpassed $10 billion in quarterly revenues and $1 billion in operating profit for the first time. Here's how the company did, compared with estimates from analysts polled by LSEG: Google parent company Alphabet reported second-quarter results after the bell Tuesday that were in-line with analyst estimates on revenue and earnings, but missed on YouTube advertising revenue. The company reported ad revenue of $64.62 billion — up from $58.14 billion last year, showing that Google's advertising business continues to grow, though at a slower pace than in the first quarter, after rising inflation and interest rates tightened marketing budgets in 2022 and 2023. While YouTube ad revenue missed estimates, it still grew to $8.66 billion compared to $7.66 billion in the year-ago quarter. Though it's the largest video platform in the world, it faces increased competition from social video sites like TikTok. Net income increased to $23.6 billion, or $1.89 per share, compared to $18.4 billion, or $1.44 per share, in the year-ago quarter. The company's "Other Bets" unit, which includes its self-driving car company Waymo, brought in $365 million, up from $285 million a year ago. Finance chief Ruth Porat announced on the company's earnings call that Alphabet is committing a new $5 billion multiyear investment in Waymo. During the second quarter, Alphabet saw a number of expansion updates, including for Waymo, which opened its service to all San Francisco users. The move was its second citywide rollout, following a 2020 debut in the Phoenix metropolitan area. CEO Sundar Pichai said on the earnings call that Waymo is now making 50,000 weekly paid public rides, primarily in San Francisco and Phoenix. "Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud," Pichai said in the earnings release. "We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead."
Adidas apologizes to Bella Hadid following backlash over shoe ad linked to 1972 Munich Olympics 2024-07-23 15:14:00+00:00 - Adidas has apologized to Bella Hadid after the company pulled an ad that was linked to the 1972 Munich Olympics that featured the model. In the ad, Hadid wears shoes modeled after Adidas' SL72 sneakers, a design used at the 1972 Summer Games that were overshadowed by tragedy when members of the Palestinian group Black September killed two athletes from Israel's national team. Adidas, a German company, and Hadid received backlash for the ad. Adidas pulled the ad on Saturday and apologized, saying they were "revising the remainder of the campaign." On Sept. 5, 1972, members of the Palestinian group Black September broke into the Olympic Village, taking more than nine hostages and killing two Israeli athletes, to try to force the release of Palestinian prisoners and two left-wing extremists being held in Israel and West Germany. During a rescue attempt by German forces, the nine hostages and a West German police officer were killed. In a new statement posted on social media Monday, Adidas said while connections continued to be made to the Munich Olympics, their SL72 campaign was not meant to reference the tragic event. "[A]nd we apologize for any upset or distress caused to communities around the world. We made an unintentional mistake," the company wrote. Bella Hadid poses backstage before the Vivienne Westwood Womenswear Fall/Winter 2020/2021 show as part of Paris Fashion Week on February 29, 2020 in Paris, France. Francois Durand/Getty Images "We also apologize to our partners, Bella Hadid, A$AP Nast, Jules Koundé, and others, for any negative impact on them and we are revising the campaign," the statement continued. The campaign also featured rapper A$AP Nast and French soccer player Jules Koundé, among other models. The shoes are still available for purchase online. Hadid, whose father is Palestinian, has urged people to support and protect civilians in Gaza during the war between Israel and Hamas. Hadid has posted frequently about the war since it broke out Oct. 7, when Hamas terrorists attacked Israel. She has often posted about her Palestinian pride and has publicly criticized the Israeli government. After the ad was released, several people criticized Adidas and Hadid. "For Adidas to pick a vocal anti-Israel model to recall this dark Olympics is either a massive oversight or intentionally inflammatory. Neither is acceptable. We call on Adidas to address this egregious error," the American Jewish Committee said in a statement on social media. In the wake of the criticism, Hadid was rumored to have hired a legal team to sue Adidas, TMZ first reported. She has not publicly posted about the controversial campaign, but she did delete images of herself wearing the SL72 from social media. While Hadid and Adidas received backlash online, her Instagram was flooded with comments of support, with many saying she is "too good for Adidas" and others saying they would boycott the company. Adidas has a history of Nazi ties. The company's founders, brothers Adolf "Adi" and Rudolf Dassler, were members of the Nazi party. According to Adi Dassler's biography on the Adi & Käthe Dassler Memorial Foundation website, the brothers were pressured to join the party to maintain their company. Adi Dassler also supervised the Hitler Youth Sports league in the town where the company was headquartered, according to the foundation.
Transportation Department to Investigate Delta After Flight Delays 2024-07-23 14:02:32+00:00 - Transportation Secretary Pete Buttigieg said on Tuesday that his department had opened an investigation into Delta Air Lines after the tech outage last week disrupted flights worldwide, and the agency wanted to hear from travelers who said that the airline had not complied with passenger protection requirements. The aim of the investigation is to “ensure the airline is following the law and taking care of its passengers during continued widespread disruptions,” Mr. Buttigieg said in a statement. “All airline passengers have the right to be treated fairly,” he added. The Transportation Department has consumer protection requirements that cover lost baggage, lengthy tarmac delays, compensation for being bumped from an overbooked flight and other protections.
ScottsMiracle-Gro Stock Blooms After Investor Day Optimism 2024-07-23 14:00:00+00:00 - Scotts Miracle-Gro Today SMG Scotts Miracle-Gro $68.79 -0.39 (-0.56%) 52-Week Range $43.67 ▼ $77.95 Dividend Yield 3.84% Price Target $71.67 Add to Watchlist Lawn and garden products manufacturer ScottsMiracle-Gro Co. NYSE: SMG stock surged on its Investor Day update ahead of fiscal Q3 2024 earnings release. The company reaffirmed its full-year 2024 outlook and further added that it expects 3% YoY growth in its U.S. consumer segment from 2025 to 2027. Its products are widely used for agriculture by consumers of plants and lawn care. There is also a growing population of cannabis growers using their products. They are a benefactor from cannabis legalization and decriminalization, which includes 46 states to date. Scotts Miracle-Gro operates in the basic materials sector, competing with fertilizer and agricultural chemicals companies like Intrepid Potash Inc. NYSE: IPI, The Mosaic Co. NYSE: MOS, and CF Industries Holdings Inc. (CF). Get Scotts Miracle-Gro alerts: Sign Up ScottsMiracle-Gro Portfolio of Brands While ScottsMiracle-Gro may sound like a single product line, it actually owns a portfolio of brands and products. Here are some of its core lawn and garden brands. Scotts is the flagship brand of lawn care products, including seeds, weed control, and fertilizers. Miracle-Gro is designed to help gardeners achieve vibrant and lush blooms through its plant foods and soil improvement products. Ortho and Tomcat brands specialize in lawn and garden disease and pest control products that help eliminate diseases, weeds, and insects. Its hydroponic and indoor gardening brands include General Hydroponics, which sells indoor gardening and greenhouse equipment and nutrients, which is also popular with cannabis growers. AeroGarden offers indoor gardening systems, enabling users to grow plants without soil. Roundup Health Concerns and Cancer Lawsuits Roundup sells herbicides that have been under much scrutiny from lawsuits alleging that they cause health issues and cancer. Monsanto is the actual owner of Roundup, but ScottsMiracle-Gro has been the exclusive marketer and distributor. Monsanto was acquired by Bayer Aktiengesellschaft OTCMKTS: BAYRY. SMG Attempts to Breakout of a Descending Channel Ahead of Earnings Release The daily candlestick chart on SMG depicts a descending price channel comprised of lower highs and lower lows. The Investor Day guidance helped to bounce SMG through the upper trendline resistance, causing it to peak at $70.00 before retesting. The reversion will need to stay above the upper trendline to successfully breakout of the channel. The daily relative strength index (RSI) stalled around the 55-band, which could indicate a potential divergence. Pullback support levels are at $64.57, $61.51, $58.43, and $56.05. Looking Back at Q2 2024 In its fiscal Q2 2025 earnings report, ScottsMiracle-Gro reported EPS of $3.69, beating consensus estimates by 25 cents. Revenues fell 0.4% YoY to $1.53 billion, beating $1.5 billion consensus estimates. The company reaffirmed its previously forecast non-GAAP fiscal 2024 guidance. The company's primary goal is to restore a strong balance sheet with significant improvements in leverage and working capital. The company plans to generate an adjusted EBITDA of $575 million and a free cash flow of $560 million. Recapping Its 2024 Investor Day Outlook Fast forward to July 16, 2024, the company provided updates at its Investor Day. ScottsMiracle-Gro will pursue growth opportunities at emerging touchpoints, including omnichannel retail and Hispanic consumers. Further investments will be made in technology and infrastructure for predictive analytics and optimized service models to fuel margin growth. The cumulative effect will be a $150 million cost savings in the U.S. Consumer business supply chain cost savings over the following three years and a projected return to adjusted gross margin rates above 30%. The company will continue to transform its Hawthorne subsidiary from a distributor to a branded solution provider focusing on proprietary signature brands. These brands are expected to contribute to adjusted earnings beginning in fiscal 2025 with single-digit sales growth weighted towards higher-margin consumable versus durable products. ScottsMiracle-Gro Provides Midterm Targets The company expects to average 3% net sales growth in the U.S. Consumer business through fiscal 2025 to 2027. Non-GAAP adjusted gross margin is expected to return above 30%. Delivering these mid-range targets will achieve a total non-GAAP adjusted operating margin above 15% and adjusted EBITDA above $600 million. ScottsMiracle-Gro Reaffirms Fiscal 2024 Outlook Scotts Miracle-Gro MarketRank™ Stock Analysis Overall MarketRank™ 2.87 out of 5 Analyst Rating Hold Upside/Downside 4.1% Upside Short Interest Bearish Dividend Strength Weak Sustainability -3.67 News Sentiment 0.06 Insider Trading Selling Shares Projected Earnings Growth 37.25% See Full Details ScottsMiracle-Gro reaffirmed that it is on track to achieve its updated full-year guidance provided in June, which was $1 billion in free cash flow over 2 years, delivering the remainder of $560 million in fiscal full year 2024. It expects to pay down an additional $350 million in debt and drive full-year gross margin improvement of at least 250 bps. The company is encouraged by consumer engagement with unit point-of-sale (POS) through June up 10% YoY in the wake of challenging weather and macroeconomic conditions. ScottsMiracle-Gro analyst ratings and price targets are at MarketBeat. The consensus analyst price target of $71.67 implies a 6.66% upside. Out of six analyst ratings, two have a Buy, and two have a Hold rating. Before you consider Scotts Miracle-Gro, 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 Scotts Miracle-Gro wasn't on the list. While Scotts Miracle-Gro currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Leading Beverage Company's Stock Bubbles Higher: Rally Ahead 2024-07-23 13:43:00+00:00 - Coca-Cola Today KO Coca-Cola $64.96 +0.19 (+0.29%) 52-Week Range $51.55 ▼ $66.04 Dividend Yield 2.99% P/E Ratio 25.98 Price Target $70.00 Add to Watchlist Coca-Cola Company NYSE: KO struggled with FX conversion in Q2 but navigated difficult times with aplomb, setting its stock up to move higher and set a new all-time high. The critical details are that price, mix, and timing of sales offset the weaknesses, paving the way for a guidance increase. The guidance expects another 100 basis points of top-line growth and a widening margin, which should be enough to keep the analysts happy. As it is, MarketBeat tracks 11 analysts with current ratings, and they are leading this market to a new high. Analysts' activity in the two months before the Q2 release includes numerous price target increases and an initiated coverage, leading this market to the high end of the expected range or a gain of at least 5%. Because the 5% gain puts the stock at a new all-time high, it is the likely beginning of a rally that could last well into next year. Get Coca-Cola alerts: Sign Up Coca-Cola Has Industry-Leading Quarter: Raises Guidance Coca-Cola issued some mixed results, but the underlying details are strong. The company’s $12.4 billion net revenue is up 3.3%, leading its largest competitor, PepsiCo NASDAQ: PEP, by hundreds of basis points despite the impact of FX conversion. The top-line outpaced the consensus by 550 basis points on a 2% increase in global unit case volume. Organically, the company grew by 15%, with the reported top and bottom-line results impacted by FX translation. Organic growth drivers are a 9% increase in price/mix compounded by a 6% increase in concentrate sales. Regionally, all segments produced organic growth, but currency headwinds sapped strength from APAC, Global Ventures, and Bottling Investments, which produced the weakest results, down 25% YoY. Latin America, the strongest segment, grew by 20%. The margin news is good. The company’s pricing efforts in inflation-hit economies are helping to sustain a solid margin. While GAAP results are down YoY, the adjusted operating margin is up 80 bps, producing leverage growth on the bottom line. The adjusted EPS of $0.84 is up 7% compared to last year and outpaced consensus by 370 bps, leading the company to raise guidance. Coca-Cola improved its guidance for revenue and earnings, now calling for 9% to 10% organic revenue growth and 5% to 6% EPS growth or about $2.84 compared to the $2.82 consensus forecast. The Coca-Cola Company Can Sustain Its Capital Return Growth Coca-Cola Dividend Payments Dividend Yield 2.98% Annual Dividend $1.94 Dividend Increase Track Record 63 Years Annualized 3-Year Dividend Growth 3.91% Dividend Payout Ratio 77.60% Recent Dividend Payment Jul. 1 See Full Details Among the salient details from the Coca-Cola report are that free cash flow remains solid, the balance sheet is healthy, and capital returns are safe. Capital returns include the dividend and share repurchases, which reduced the count by 1% average for the quarter. The dividend is losing some appeal with share prices rising, but the yield is still more than 100% better than the average S&P 500 company, with shares equally valued near 22x, and the distribution is growing. Investors may not expect robust double-digit increases, but the outlook for earnings growth and share repurchases suggests that a mid-to-high single-digit CAGR is possible and sustainable. The last increase was worth 6.5% to investors, and the subsequent increase is due March 2025. Coca-Cola Bubbles to Fresh Highs The Q2 report catalyzed the KO market to move higher. Early premarket activity has the stock up nearly 2% and trading at what would be a fresh, two-year closing high if held until the end of the session. Assuming the market follows through with this indication, shares of KO could retest or exceed the all-time high within a matter of weeks. In this scenario, a move to a new high would break the market out of an almost three-year trading range and open the door to a sustained rally. Before you consider Coca-Cola, 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 Coca-Cola wasn't on the list. While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Can This Meme Stock Stage One Last Rally? 2024-07-23 13:23:00+00:00 - Investors should now be familiar with the story behind so-called “meme stocks.” These are companies considered not that great by hedge funds and savvy investors who bought into the technology sector, so they naturally carry large short interest due to the number of short sellers who take on their bearish views. What ends up happening is a management stunt to send the stock rallying and cause what’s known as a short squeeze, otherwise known as an astronomic rally. AMC Entertainment Today AMC AMC Entertainment $5.08 -0.20 (-3.79%) 52-Week Range $2.38 ▼ $62.30 Price Target $5.37 Add to Watchlist The latest example of this sequence is the GameStop Corp. NYSE: GME saga, where the stock more than tripled in price due to a Twitter (now X) user posting his bullish thesis on the stock, and that was enough to trigger a wave of retail investor buying to spark a short squeeze. Following suit, today, investors face another halt in trading due to a sudden upside move in shares of AMC Entertainment Holdings Inc. NYSE: AMC, as a new announcement from management sent the stock rallying by more than 10.9%. Get AMC Entertainment alerts: Sign Up As the stock was halted until investors may want to check in to see what is happening behind the scenes to make a better-educated guess about the stock’s direction. It all starts with what the announcement implies: a debt restructuring that might help the company buy some time and get its house in order. The Deal Terms Boosting AMC Stock's Rally Some investors may recall a similar strategy used by Carvana Co. NYSE: CVNA management when it swapped some of its long-term bond obligations for convertible bonds. This allowed creditors to unburden the company, let its operations thrive, and enjoy better upside through equity ownership. AMC management took a page out of the Carvana playbook recently, as SEC filings show the transaction deal specifies that up to $2.45 billion in debt maturities will be extended from their current maturity of 2026 to 2029, allowing for more breathing room for the stock to maneuver past the nearing maturities calling for available cash on hand to repay. In addition, the company has invested up to $464 million in convertible bonds. These bonds not only reduce the company's debt burden but also allow creditors to convert their debt into shares and enjoy the upside (if any) of the company's future. Once Carvana issued the same strategy behind convertible bonds, markets were accepting enough to stampede into the stock and bring it to a nearly six-fold rally in the 12 months that followed. Far from assuming that history will repeat itself, investors can look deeper into the company's financials to either justify or dismantle the prospects of a continued rally. AMC Stock: Financial Drivers Investors Can't Ignore When investors examine the company's latest quarterly earnings, slightly flat annual revenues are the most minor threat to this potentially short-lived rally. AMC reported yet another quarter of net losses, with $163.5 million lost this quarter, compared to a net loss of $235.5 million a year prior. But it doesn't stop there. Savvy investors will ask about cash flows since net income is easily manipulated through "creative accounting." Operating cash flows were nonexistent, as AMC reported a net outflow of $188.3 million this quarter, compared to $189.9 million a year prior. Investors can land on free cash flow measures by taking out the needed capital expenditures to keep the business running and movies showing. This quarter's negative free cash flow of $238.8 million, compared to $237.3 million a year prior, shows worsening conditions in the underlying business operations.https://www.marketbeat.com/originals/amc-entertainment-time-to-take-step-back-into-this-meme-stock/ The question is, how does AMC keep running if it doesn't make any money? The answer is dilution since nobody is readily looking to buy its debt. Last time there was a meme stock run, AMC management took advantage of the high stock price to issue expensive stock into the market and fund its ongoing operations. While buying up to three more years in the timeline that AMC faces before it needs to pay up for its bonds can be a good thing, investors who now have the option to convert their bonds into stock need to have a very good reason for doing so. Without any earnings or free cash flow to show, converting might not even be a consideration for most. Even with the new restructuring, Wall Street analysts know better than to expect a short squeeze or a similar run to Carvana stock when it applied the same strategy, as that company at least had a plan – and path – to achieve free cash flow. Citigroup analysts still see a price target of $3.2 for AMC stock, calling for an up to 40% downside from where the stock has rallied today. Even more recent analyst ratings: As of July 2024, Macquarie analysts see only a $4 valuation on AMC stock, still expecting a 24.5% downside from today's prices. AMC Entertainment Holdings, Inc. (AMC) Price Chart for Tuesday, July, 23, 2024 Before you consider AMC Entertainment, 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 AMC Entertainment wasn't on the list. While AMC Entertainment currently has a "Strong Sell" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Mutual vs. Index Funds: What's the Difference? 2024-07-23 13:00:00+00:00 - Picking stocks can be exhausting, especially when you don’t have the same access as market pros. So why not let the professionals do it for you? That’s the idea behind mutual funds, which allow investors to buy a package of assets through a single wrapper. At the opposite end of the spectrum are index funds, which also function as stock baskets but don’t employ the services of a manager. What are the differences between the two types of funds, and which is better for you? Read on for our complete breakdown between mutual funds and index funds. Get stock market alerts: Sign Up Mutual vs. Index Funds Comparison Chart Take a look at the chart below for a side-by-side comparison between the two types of funds. Mutual Funds Index Funds Fees High expense rates, plus potential load and redemption fees Lower expense rates, fewer fees Risk / Return Riskier / Seek to outperform the market Less risky / Seek to match market return but may underperform top mutual funds Management Style Active Passive Minimum Investment Amount Between $1 to $3,000 Between $1 to $3,000 Differences Between Mutual and Index Funds When choosing between mutual funds and index funds, it's important to know the differences. Before you make an investment, here are five features to consider. 1. Management Style Names like Peter Lynch, Jim Simons and George Soros come to mind when discussing the best fund managers ever. When you invest in a mutual fund, you’re not so much picking stocks or a strategy but selecting a manager who you think can beat market averages. With an index fund, you aren’t trying to beat the market. That’s not to say you aren’t interested in making money, but index funds aren’t concerned with outperforming the competition. Index funds track benchmarks like the S&P 500, so no manager selects stocks. The fund aims to match the benchmark as closely as possible while driving down costs that come with active trading, whether by using a broad index or a targeted one like a specific stock sector. 2. Fees and Expenses Investment companies manage mutual and index funds, and their overhead costs are baked into the price of an investment. For most investors, this comes in the form of an expense rate, the percentage of invested assets that goes to the fund company for the costs of running the fund. A study from the Investment Company Institute showed that mutual fund costs have been falling for nearly 30 years, which is excellent news for investors. However, the difference in cost between mutual and index funds remains vast. In 2023, the median expense rate for equity mutual funds was 1.01, and the average was 1.11. Those expenses dropped to 0.25 and 0.55 for equity index funds, respectively. 3. Performance The reason to invest in mutual funds is to outperform the market benchmarks — otherwise, why pay the higher rates for a fund manager? Some managers, like Peter Lynch and the Magellan Fund, have been able to beat market averages for long periods. However, beating the benchmark each year is difficult and most active managers fail to beat the S&P 500 consistently. Index funds are designed to match the performance of the underlying benchmark, so if the S&P 500 gains 5% in a year, an index fund tracking it will produce the same gain. The index fund will buy and sell stocks in proportion to their weight in the underlying index, so the fund will never "beat the market" since it is the market. Missing out on significant gains is a primary reason some investors stick with active managers, even if the odds are stacked against consistent outperformance. 4. Tax Efficiency Both mutual and index funds produce dividends and capital gains distributions that count as taxable income. Depending on how long you hold the fund, these payouts can be taxed at the ordinary income level (less than one year) or the long-term capital gains rate (more than one year). While these sound similar, mutual and index funds produce these taxable events at different rates. Since mutual funds are actively managed in an attempt to beat the market, the portfolio has a higher turnover rate as stocks are bought and sold. Index funds have much less turnover since they only attempt to track a benchmark index, so there are fewer transactions resulting in taxable events. Your holding period matters, but so does the fund’s underlying trading activity. 5. Investment Goals Index funds have simple investment goals. For example, if an index fund tracks the NASDAQ-100, its goal is to match the return of that benchmark by holding equal amounts of the underlying stocks. Since the NASDAQ-100 is weighted by market cap, the index fund portfolio will also weigh its holdings by market cap. A mutual fund will have more complex investment goals, and every manager has a different objective and strategy. For example, some funds seek to beat the market by concentrating holdings, using derivatives, or utilizing other sophisticated strategies. If you’re unsure about a fund’s investment goals, read the prospectus, which lays out its plan to achieve its goals; you’ll find a copy on the fund company’s website. Which is Better: Index Funds or Mutual Funds? As with most investment questions, the answer depends on personal preferences. Index and mutual funds are similar in that they are baskets of stocks within a single asset, but the divergences are crucial in determining which type an investor should go with. For example, if you’re a young investor with a long timeline, perhaps you’re willing to pay for a top fund manager who has shown market-beating potential. But if you’re an older investor with a shorter timeframe, a low-cost index fund that keeps fees and taxes to a minimum might be the preferred option. Our Best Investing Tips Both mutual and index funds have their place in a financial plan, and so much depends on your preferences and personal goals. Before putting any money into the markets, spend some time thinking about the following investment factors. Diversification Diversification is one of the oldest and most practiced risk tolerance techniques, so owning a basket of stocks through a single security like a mutual or index fund makes sense for long-term investors. Diversification wisdom has been handed down from generation to generation in one form or another, i.e., “Don’t put all your eggs in one basket!” However, generational wisdom often has a critical purpose, and diversifying assets is a great way to reduce portfolio volatility. Time Horizon Timing the market is challenging and mainly out of our control. However, the time we spend in the market is within our control. The investment time horizon plays a prominent role in determining asset allocation, the types of investment accounts used, tax and estate planning, and more. Risk Tolerance Risk can’t be avoided, but it can be managed to fit with investment goals and personal mindsets. How does market volatility make you feel? Can you stomach large drawdowns without getting the urge to sell? Can you stick to long-term goals when short-term uncertainty occurs? Time horizon and risk tolerance are inextricably linked, but even someone with a long timeline may struggle to temper emotions during volatile markets. Investors Must Select a Fund Based on Personal Preferences Mutual and index funds make diversification easy, but choosing between them requires a little research and personal evaluation. While some mutual fund managers can beat the market, others struggle to justify their fees. And while index funds make investing simple and affordable, some investors may not be satisfied by matching a broad index. Every investor is different - you must pick the funds that best suit your financial needs. Start Your Research With MarketBeat Want to compare mutual and index funds across different asset classes and market sectors? We’ve got the tools and products to assist in your search. Click here to see our latest offerings.
Families Left Scrambling After Delta Bars Minors From Flying Alone in Wake of Outage 2024-07-23 12:34:28+00:00 - Scott Darling and his wife drove their 17-year-old son, Asher, to the San Jose airport on Sunday morning and saw him off at the check-in counter. They were back in their car and pulling out of the airport when they got a frantic call: Delta Air Lines wouldn’t let Asher check in because he didn’t have a parent accompanying him on the flight. “I was perplexed,” Mr. Darling said. Asher had flown by himself on several occasions, he said, and “we were never notified about this.” Delta has been the slowest U.S. airline to restore its operations, canceling over 1,000 flights each day from Friday to Monday. Another more than 450 had been canceled as of midday on Tuesday, according to the flight tracking website FlightAware. On Tuesday, the secretary of transportation, Pete Buttigieg, said his agency was opening an investigation into Delta’s ongoing response “to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.”
Why Some Donors Are Holding Back on Endorsing Harris (for Now) 2024-07-23 12:15:20.577000+00:00 - Why some big money is holding out for now After just one full day of campaigning, Vice President Kamala Harris has a glide path to the Democratic presidential nomination. She has won endorsements from potential rivals and from powerful party figures like Representative Nancy Pelosi, the former speaker. The Harris campaign also said it had raised more than $100 million between Sunday afternoon and Monday evening. But some major Democratic donors, including Mike Bloomberg and the venture capitalist Vinod Khosla, have yet to endorse her. DealBook hit the phones to find out why. Big-ticket backers don’t want it to look like a coronation. The concern is that if they support Harris too soon, they would appear to be anointing their party’s presidential candidate, rather than her earning it through a full democratic process. That would be reminiscent of the old days of smoke-filled rooms — and, in their minds, risked backfiring politically. In a post on X on Monday, Bloomberg stressed that the nominating process should play out: While some elected leaders and party officials make their endorsements, there are still four weeks before the party’s more than 4,000 delegates convene in Chicago. That is more than enough time for the party to take the pulse of voters, especially in battleground states, to determine who is best positioned to win in November and lead the country over the next four years. And Khosla posted on X, “An open process will allow everyone a chance to make their case and express their views. Coronations are bad for democracy.”
Harris rips Trump before fired-up crowd at first rally since launching her presidential campaign 2024-07-23 11:49:00+00:00 - Vice President Kamala Harris held the first rally of her presidential campaign Tuesday in Wisconsin, telling a raucous crowd that Republican rival "Donald Trump wants to take the country backward" and contrasting her record with his. Referring to her background as a prosecutor, Harris told the crowd of over 3,000 that “I took on perpetrators of all kinds. Predators who abused women, fraudsters who ripped off consumers. Cheaters who broke the rules for their own gain.” "So hear me when I say I know Donald Trump's type," she said to cheers and chants of "Kamala! Kamala!" She said her campaign is "focused on the future," while Trump's is "focused on the past." Harris’ trip to a suburb outside Milwaukee — the site of last week's Republican National Convention — was her first stop in a battleground state under her presidential campaign. It is her ninth visit to Wisconsin in her vice presidential term and her fifth visit to the state this year, her campaign said in a news release. Vice President Kamala Harris at her first campaign rally Tuesday. Kamil Krzaczynski / AFP - Getty Images Harris said, "The path to the White House goes through Wisconsin," she said, adding, "You helped us win in 2020, and in 2024 we will win again." She also paid tribute to President Joe Biden and "his continuing service to our nation." Biden announced he was withdrawing from the race Sunday and endorsed Harris. Democratic lawmakers and other political figures across the country swiftly rallied around her, as well. By Monday, a majority of pledged Democratic convention delegates had endorsed Harris on her first full day as a presidential candidate. Harris said Tuesday that "we have some work to do" and told the generationally diverse crowd she was eager to get to it. "I pledge to you I will spend the coming weeks to unite our party so we will win in November," she said. Wisconsin Democratic officials who joined Harris at the rally at West Allis Central High School included Gov. Tony Evers, Sen. Tammy Baldwin and Attorney General Josh Kaul. Follow for live updates Harris also spoke Monday at an event at the White House, where she discussed not her campaign, but Biden’s leadership. The newly dubbed Harris campaign said that since Biden announced his exit from the presidential race, it raised $100 million on Sunday and Monday, with 62% of them being first-time donations. The Harris campaign said it has 48 coordinated offices across 43 counties throughout the state with roughly 160 full-time staffers on the ground who are organizing to build support for Harris and state Democrats ahead of the November election.
Will This Pet Retailer's Stock Break Out of the Doghouse? 2024-07-23 11:14:00+00:00 - Chewy Today CHWY Chewy $24.87 -0.20 (-0.80%) 52-Week Range $14.69 ▼ $39.10 P/E Ratio 138.17 Price Target $27.07 Add to Watchlist Online pet supplies retailer Chewy Inc. NYSE: CHWY shares are up nearly 8% year-to-date (YTD). The stock made headlines as the latest meme stock position taken by infamous investor Keith Gill, best known under his alias “Roaring Kitty." Stock and call volumes spiked due to his involvement and ceded as shares continued to form a higher base. Investors wonder if Chewy’s stock is finally out of the doghouse as it has maintained its prices well above the $20 ceiling ahead of its Q1 2024 earnings beat. Chewy operates in the retail/wholesale sector, competing with pet supply companies like Petco Health & Wellness Co. NASDAQ: WOOF and retailers that stock supplies like Walmart Inc. NYSE: WMT and Target Co. NYSE: TGT. Get Chewy alerts: Sign Up Roaring Kitty Enters Chewy Stock On June 27, 2024, Gill cryptically posted a picture of a cartoon dog on his X account. This immediately spurred speculation of his latest pick being a pet stock. Shares of Chewy blasted 34% to a high of $39.10 before settling back down to close at $29.05. Gill later disclosed a 6.6% stake in Chewy in an SEC filing, which is around 9 million shares. The average price of his stake isn't known and won't be known until his next streaming event, where he tends to post a real-time view of his Morgan Stanley NYSE: MS owned E-trade account. His last Alphabet Inc. NASDAQ: GOOGL YouTube stream touting his GameStop Co. NYSE: GME position had over 640,000 attendees. Gill has been a big believer in Ryan Cohen, founder of Chewy and CEO of GameStop, which is the major factor linking the two companies. Chewy Thrives on Its Autoship Program Pet owners are aware of how tedious it can be to make regular trips to the pet store to stock up on pet supplies on a consistent basis. Chewy makes the routine frictionless by providing a convenient way to deliver supplies straight to pet owners. It thrives on a “set it and forget it” mechanism program called Autoship. This enables customers to schedule recurring deliveries that fit their budget and time schedules. The more items you Autoship, the more savings you can receive. Chewy is also expanding with services like its pet insurance and wellness product called Chewy CarePlus. Its pet insurance actually pays directly to the veterinarian rather than to the customer, like Lemonade Inc. NYSE: LMND. However, pet owners can opt to submit a claim themselves for reimbursement. They also provide 100% drug coverage with no payout limits and provide live veterinarian telehealth services. Chewy just opened three Chewy Vet Care Clinics and is planning on launching more. CHWY Forms a Potential Head and Shoulders Pattern The daily candlestick chart on CHWY depicts a potential head and shoulders pattern. This pattern is comprised of 3 peaks connected by a neckline. The first peak formed the left shoulder at $24.17. The second and highest peak formed the head at $39.10. The third peak formed the right shoulder at $28.16. The neckline support is testing around $25.24. The daily relative strength index (RSI) is falling at the 52-band. Pullback support levels are at $23.73. $20.71, $18.33 and $17.03. Stellar Q1 2024 Earnings Broke Chewy Out of the Range Chewy reported a record-breaking Q1 2024 adjusted diluted EPS of 31 cents, beating analyst estimates by 27 cents. Net income was $66.9 million, which included stock compensation expenses and taxes of $69.5 million. The net rose by 2.3%, rising by 150 bps YoY. Adjusted EBITDA was $162.9 million, up $52.1 million YoY. Adjusted net income was $137.1 million, up 49.1% YoY. Revenues climbed 3.1% YoY to $2.88 billion, beating $2.85 billion consensus estimates. Gross margin rose 139 bps YoY to 29.7%. Net sales per average customer (NSPAC) rose 9.5% YoY to $562. The company authorized a $500 million stock buyback program. Chewy Issues Mixed Guidance Chewy provided downside revenue guidance of $2.84 billion to $2.86 billion versus $2.87 billion consensus estimates for Q2 2024. For the full-year 2024, Chewy reaffirmed revenues of $11.6 billion to $11.8 billion versus $11.7 billion consensus estimates. Normally, the lowered Q2 guidance would have sunk the shares, but the buyback authorization likely helped to gap up shares the following morning. Shares were further elevated by the 5% short float, followed later by the Roaring Kitty position speculation. Chewy is Testing a Beta Monthly Membership Program Currently under beta testing, Chewy Plus is a monthly membership plan that will offer a range of benefits to subscribers, including cash accrual rewards, free shipping, and exclusive membership perks. Chewy CEO Sumit Singh commented, “The program is currently in its beta state, and throughout the year, we will explore different test and learn approaches to understand how it impacts discovery of our growing products and services, wallet consolidation and NSPAC acceleration, all while maintaining economic sensibility. We are excited about the program and look forward to sharing more over the coming quarters.” Chewy analyst ratings and price targets are at MarketBeat. The consensus analyst price target of $27.07 presents a 6.12% upside. Before you consider Chewy, 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 Chewy wasn't on the list. While Chewy currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Is This Financial Stock a Bargain Buy After Recent Pullback? 2024-07-23 11:11:00+00:00 - Charles Schwab Today SCHW Charles Schwab $65.14 +0.39 (+0.60%) 52-Week Range $48.66 ▼ $79.49 Dividend Yield 1.54% P/E Ratio 27.26 Price Target $75.07 Add to Watchlist Retail financial services firm Charles Schwab Co. NYSE: SCHW shares fell 17% in the days following its Q2 2024 earnings report. The company still beat EPS estimates and just barely eked out a YoY revenue gain. While underwhelming, the report wasn't a complete disaster, as one might assume based on the extent of the selling. The disappointment came from some of the steps the company is taking to fortify its balance sheet ahead of internet rate cuts and economic changes, including halting its stock buyback program. Schwab states that 2024 is a transition year, but value investors may find this an opportunity to jump into some shares at oversold levels. Charles Schwab operates in the financial services sector, competing with fintechs like Robinhood Markets Inc. NASDAQ: HOOD, Sofi Technologies Inc. NASDAQ: SOFI, and online broker E-trade owned by Morgan Stanley NYSE: MS. Get Charles Schwab alerts: Sign Up Charles Schwab: From Discount Broker to Zero-Commission Charles Schwab was the original discount broker, offering cheaper stock trading commissions than its full-service counterparts. However, it no longer calls itself a discount broker since zero-commission trading, spearheaded by Robinhood, has taken over the industry. Schwab had no choice but to adopt zero-commission stock trades as the industry shifted. Robinhood has been a thorn in Schwab's side as more retail investors and trades migrate to the frictionless mobile platform. To offset the migration, Schwab has bolstered other services, including more sophisticated stock and options trading platforms, banking, research, wealth management and retirement services, and customer support services. Schwab offers a more comprehensive overall platform for investors and traders, complete with around-the-clock 24/7 and 365 days a year human customer service. SCHW Forms a Symmetrical Triangle Breakdown The daily candlestick chart on SCHW illustrates a symmetrical triangle breakdown pattern. This pattern is comprised of a descending upper trendline and an ascending lower trendline meeting at an apex point. The stock will break out through the upper trendline or break down through the lower trendline. In this case, SCHW broke down through the lower trendline on a price gap following its Q2 2024 earnings. Shares sold off 17% as it attempts to find a floor. The daily relative strength index (RSI) sank into deep oversold territory at the 20-band. Pullback support levels are at $59.67, $56.97, $53.60, and $51.27. Charles Schwab Modestly Beats Analyst Estimates for Q2 2024 Charles Schwab MarketRank™ Stock Analysis Overall MarketRank™ 4.94 out of 5 Analyst Rating Hold Upside/Downside 13.9% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -1.44 News Sentiment 0.36 Insider Trading Selling Shares Projected Earnings Growth 34.30% See Full Details Schwab reported a Q2 2024 EPS of 73 cents, beating consensus analyst estimates by a penny. Revenues grew 0.7% YoY to $4.69 billion, beating $4.68 billion analyst estimates. Net interest margin expanded one basis point to 2.03% sequentially. Client transactional sweep cash balances ended June at $374.8 billion, reflecting customers' April tax disbursements, slowing client cash realignments, and continued net securities purchases by customers. Total client assets in the quarter hit a record $9.41 trillion. Active brokerage accounts rose 4% YoY to 35.6 million. Core net new assets grew 17% YoY to $61.2 billion. Clients receiving ongoing advisory services rose 16% YoY. Net flow increases into Schwab Wealth Advisory and Wasmer Schroeder Strategies were 40% and 60%, respectively. Trading activity remained robust versus 2023 levels. YTD net buying of mutual and exchange-traded funds grew to the second-highest first half at $77 billion. Schwab was voted the #1 mobile app for customer experience by Corporate Insight for the second year in a row. SCHW CEO Reminds Investors that 2024 is a Transition Year Charles Schwab CEO Walt Bettinger reminded analysts that 2024 is a transition year. The company transitioned the last groups from the Ameritrade acquisition, which included $2 trillion in assets, 17 million clients, and over 3.5 million daily average trades. Former Ameritrade customers will move from negative to position asset flows net of new assets. Ameritrade customers will begin to utilize Schwab's capabilities in areas of financial planning, investment advisory and banking. Investment advisors that that formerly used Ameritrade for custodial services will bring net new assets to Schwab. It also expects Schwab Street Smart platform users to take advantage of the Thinkorswim platform. Bettinger commented, “Halfway through the year, this definition of a transition year is being realized, again, as we anticipated. And all of these issues position us for a strong period of growth in client metrics and financial results in the coming years.” Charles Schwab analyst ratings and price targets are at MarketBeat. The consensus price target among 15 analysts implies a 20.92% upside to $75.07. Before you consider Charles Schwab, 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 Charles Schwab wasn't on the list. While Charles Schwab currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Air Products Stock Slides After COO Quits, Company Forms New Management Board 2024-07-23 04:53:00+00:00 - Bradley C. Bower / Bloomberg via Getty Images Key Takeaways The chief operating officer of Air Products & Chemicals stepped down as the company formed a new management board. The company said COO Samir Serhan has resigned, effective immediately. Air Products' chief executive officer will lead the new 12-person management board to help implement the company's strategy. Air Products stock was down about 5% in afternoon trading Monday. Shares of Air Products & Chemicals (APD) dropped Monday after the supplier of industrial gases announced that its chief operating officer will leave the company as it makes management and board adjustments. Air Products wrote in a regulatory filing released Monday that COO Samir Serhan resigned from his position, effective immediately, but is expected to remain with the firm through the end of September. No replacement was named. Along with that, the company said that it has set up a 12-member management board of senior leaders from around the world, led by chief executive officer Seifi Ghasemi. It said the group would help implement Air Products’ “two-pillar growth strategy” of boosting its core industrial gases business “while advancing the energy transition through clean hydrogen.” New Board Aimed at Streamlining the Company Ghasemi said the move “further streamlines and optimizes our global organization” to ensure that Air Products maintains its position as “the safest and most profitable industrial gas company in the world.” He added that it also enhances the company’s ability to execute its full portfolio of projects. Shares of Air Products were down 5.1% at $249.46 in late-afternoon trading. TradingView Read the original article on Investopedia.
Why Tesla Stock Popped Ahead of Earnings Day Tomorrow 2024-07-23 04:35:00+00:00 - Tesla (NASDAQ: TSLA) shares have been a bit of a roller-coaster ride this year. After dropping more than 40% and bottoming as low as nearly $140 per share in April, Tesla stock has recovered to hold a year-to-date gain heading into its second-quarter earnings report. Tesla reports its full second-quarter update tomorrow after the market closes, and investors will be listening closely. The anticipation has Tesla shares jumping to start this week's trading. As of 3:15 p.m. ET, the stock had surged by 5%. Some of that also has to do with election year politics, and what that could mean for the electric vehicle (EV) leader. Elon Musk is hedging Tesla's bets Tesla's gain of nearly 80% since April 22 came as investors anticipate an update on its full self-driving software, and after surprisingly strong second-quarter vehicle deliveries. The company delivered almost 444,000 EVs in the quarter while also drawing down vehicle inventories. The result could be a more profitable quarterly period than many analysts initially expected. And CEO Elon Musk is also making news with his public comments on U.S. politics. After recently endorsing former President Donald Trump, Musk doubled down on his support this weekend. Trump has responded with a much warmer opinion on EVs in general. At a rally over the weekend, the formerly anti-EV president said, "I love Elon Musk, I'm constantly talking about electric cars. ... I'm totally for them." While the election is far from decided, it seems Musk is working to position the EV sector, and his company in particular, for any potential outcome. While a future Trump presidency might mean less government support and subsidies, Tesla is the one profitable EV maker that could tolerate reduced tax credits and other assistance for EV buyers. But more imminent is what Tesla will say about EV profits, energy storage deployments, and self-driving technology tomorrow. Some investors are anticipating good news and jumping into the stock ahead of that report. Should you invest $1,000 in Tesla right now? Before you buy stock in Tesla, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tesla wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $722,626!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of July 22, 2024 Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Why Tesla Stock Popped Ahead of Earnings Day Tomorrow was originally published by The Motley Fool
How Long Does It Take to Double Your Money With An 8% High-Yield Investment? 2024-07-23 04:00:00+00:00 - How Long Does It Take to Double Your Money With An 8% High-Yield Investment? Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investing can sometimes require a significant amount of patience, but there are milestones along the way that can give an investor signs that they are moving in the right direction. One of these is doubling your money. This shows you are on your way to reaching your goals and that your investing efforts are paying off. The time it takes to achieve this goal depends on the rate of return your investments generate. Some of this comes from the capital appreciation of your investment over time; for example, if you invest in a high-flying tech stock, you may see your money double in a short period of time, but that money is only realized when you cash out. Because what goes up quickly can also come down quickly, diversification is crucial. Don’t Miss: The CEOs of Uber and Salesforce are so impressed with this platform they put their own money behind it. Join them, invest in private credit, and earn 7-9% APY . Whole Foods' landlord has delivered a 15% net IRR for its investors since 2015. Check out the latest investment opportunities added to its platform. One tool in an investor's arsenal is anything that generates a high yield, particularly an 8% annual return. This can be a powerful tool for growing your wealth over time. Let’s explore how long it would take to double your money with an 8% yield, both with and without compounding returns, and examine some investment options offering yields of 8% or higher. The Power Of Compounding – When Your Money Makes You Money An 8% yield refers to the annual return on your investment paid back to you in cash, expressed as a percentage of your initial investment. For example, if you invest $10,000 in a security that yields 8%, you can expect to earn $800 in returns over the course of a year. Compounding returns involve reinvesting your earnings back into the investment, allowing your money to grow exponentially over time. On the other hand, non-compounding returns involve taking your earnings out of the investment each year, resulting in a linear growth of your money. Compound interest is a powerful concept that allows your money to grow at an accelerating rate. The formula for compound interest is: A=P(1+r)nA = P(1+r)^nA=P(1+r)n Where: A is the final amount, P is the initial principal, r is the annual interest rate, n is the number of years. A simple way to estimate the time it takes to double your money with compound interest is the Rule of 72. By dividing 72 by your annual interest rate, you get the approximate number of years needed to double your investment. With an 8% yield, it would take approximately nine years to double your money (72 / 8 = 9). Story continues Here's how a $10,000 investment would grow at an 8% annual yield, compounded yearly: Year Balance 1 $10,800 2 $11,664 3 $12,597 4 $13,605 5 $14,693 6 $15,869 7 $17,138 8 $18,509 9 $19,990 By the end of the ninth year, your initial $10,000 investment would have nearly doubled to $19,990, thanks to the power of compound interest. The Slower Path, Using Simple Interest To Grow Your Investment Simple interest involves earning a fixed rate of return on your initial investment each year without reinvesting your earnings. The formula for simple interest is: A=P(1+rt)A = P(1+rt)A=P(1+rt) Where: A is the final amount, P is the initial principal, r is the annual interest rate, t is the number of years. If you invest $10,000 at an 8% simple interest rate, your money would grow by $800 annually. Double your initial investment would take 12.5 years ($10,000 / $800 per year = 12.5 years). Compared to the compounding scenario, the simple interest scenario requires an additional 3.5 years to achieve the same goal. The difference between compounding and non-compounding returns becomes even more pronounced over more extended periods. For example, investing $10,000 at an 8% yield for 30 years would grow your money to: $100,627 with compound interest $34,000 with simple interest This stark contrast highlights the importance of reinvesting your returns. By putting your earnings back into your investment, you allow your money to work harder for you over time, resulting in significantly greater wealth accumulation. Private credit offers up to 20% APY. Potential accredited investors are looking to capitalize on this growing asset class. Places To Find An 8% Yield An 8% yield isn't usually something you will find offered by banks or even CD rates. Some high-yield bond funds may promise an 8% or higher return. Many investors find these returns through investments in real estate offerings, including fractional real estate, private credit funds, and other offerings. There are some stocks that currently provide an over 8% yield. OneMain Holdings, Inc. (NYSE:OMF), a leading consumer finance company, offers a robust dividend yield and a consistent payout history. With a forward dividend yield of approximately 8.08%, OneMain Holdings stands out as an attractive option for income-focused investors. The company provides personal loans and other credit-related products, benefiting from its extensive branch network and strong customer base. Despite the competitive landscape in consumer finance, OneMain Holdings’ solid financial performance and prudent risk management practices have enabled it to maintain its high dividend yield. Investors seeking diversification beyond traditional dividend stocks may find Ares Capital Corporation (NASDAQ:ARCC) an intriguing opportunity. As a leading business development company (BDC), Ares Capital focuses on providing debt and equity financing to middle-market companies. Historically, Ares Capital has delivered a strong dividend yield, currently around 9.50%. This high yield is backed by the company’s diversified investment portfolio and its focus on senior secured loans, which provide a stable income stream. Ares Capital’s commitment to maintaining its high distribution rate makes it an appealing choice for investors seeking higher yields and potentially faster wealth accumulation. Both of these stocks are heavily tied to the lending environment, which means they carry elevated risk if the economy experiences a sudden downturn. Investors are advised to make sure they fully understand the impact of changing interest rates or higher default rates on these companies before investing. The Bottom Line The time it takes to double your money with an 8% yield depends on whether your returns are compounding or not. With compound interest, you could expect to double your money in approximately nine years, while it would take 12.5 years with simple interest. You can accelerate your wealth-building journey by choosing investments that offer solid yields and the potential for compounding, such as high-quality dividend stocks like OneMain Holdings or alternative investments like Ares Capital Corporation. Check Out One Of Benzinga's Top Picks for Private Market Opportunities Available Now: Integris Secured Credit Fund IV The fund provides a fixed annual return of 12%, payable quarterly, over a 2-year period starting April 2024 and ending April 2026. The note is secured by collateral with an estimated value of $71M, with an anticipated loan-to-value ratio of 14%. Minimum investment: $100,000 Available to: Accredited investors View fund information View more private market offerings on Benzinga's Alternative Investment screener. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. This article How Long Does It Take to Double Your Money With An 8% High-Yield Investment? originally appeared on Benzinga.com
Biden dropping out presents 'another curveball' for stocks 2024-07-23 03:27:00+00:00 - On Sunday, President Biden announced he will not seek reelection in November, adding to uncertainty about who will be in the White House in 2025. Stocks appeared to shrug off worries related to the election, with the S&P 500 rising over 1% on Monday. Investors also gained clarity over the state of the Democratic ticket, as Biden was joined by several prominent Democrats, most notably Speaker Emerita Nancy Pelosi, in endorsing Vice President Kamala Harris as the nominee. In a note to clients on Monday, RBC Capital Markets head of global equity strategy research Lori Calvasina wrote the news added "yet another curveball" for investors trying to digest how political news will impact the stock market in 2024. A key driver for stocks lately has been investor confidence in who the next president will be. As odds rose in betting markets that former President Donald Trump would win November's election, stocks also rose. When Trump's odds peaked around July 16, the S&P 500 hit its most recent high. "If the change at the top of the ticket swings momentum in the race for the White House back to the Democrats, the historical relationship suggests that it could be fuel for a short-term pullback that may already be underway," Calvasina wrote. "If Trump expands his lead, the historical data suggests that stocks may avoid the pullback we’ve been worried about. But it’s possible this relationship won’t hold up." Roundhill Investments CEO Dave Mazza echoed a similar sentiment in an interview with Yahoo Finance on Monday, noting that if a new Democratic nominee pushes markets to expect a closer presidential race, investors should expect "more volatility." Mazza added that the upcoming week in markets could be "messy" overall, with the start of Big Tech earnings as well as readings on economic growth and inflation all coming alongside the ongoing political upheaval. "The biggest headlines for the near term are going to be what happens with the presidential election," Mazza said. "And then investors will try to absorb the corporate earnings and then start looking at the Fed again. "I do think it's going to be a bit choppy," Mazza said, "but...where earnings come in, ultimately, will be that longer-term driver, even if there's a lot of macro headlines in the near term." President Joe Biden speaks at a news conference in Washington on July 11. (AP Photo/Jacquelyn Martin, File) (ASSOCIATED PRESS) As for how investors should start thinking about the possibility of a Trump-Harris face-off, the initial reaction from Wall Street showed investors should remain in wait-and-see mode. Story continues "We don’t think there’s a lot of mileage to be had in trawling through [Harris's] policy positions during the 2020 primary, particularly as she focused more on social issues rather than economic initiatives," wrote Paul Ashworth, chief North America economist at Capital Economics. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance