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Appeals Court Blocks Biden’s Student Loan Repayment Plan, Causing Uncertainty 2024-07-18 21:45:26.135000+00:00 - A federal appeals court temporarily blocked the Biden administration’s new student loan repayment plan, in a move that could unleash chaos for the eight million borrowers enrolled in the program. The U.S. Court of Appeals for the Eight Circuit, based in St. Louis, granted a request by a group of Republican-led states for an administrative stay, which prevents the Biden administration from “implementing or acting pursuant to the final rule,” according to the court filing, which refers to the rule that created the SAVE program. This ruling is just the latest in a series that have sprung from separate lawsuits brought by two groups of Republican-led states challenging the legality of the SAVE repayment plan, which ties monthly payments to a borrower’s income and household size. The program, which opened in August last year, is more generous than previous iterations of income-driven repayment plans and has generated zero-dollar payments for 4.5 million low-income borrowers. “We are assessing the impacts of this ruling and will be in touch directly with borrowers with any impacts that affect them,” a spokesperson for the Education Department said.
Biden has the worst luck with timing. Covid made it worse. 2024-07-18 21:42:19+00:00 - Timing has not been President Joe Biden’s strong suit lately. Hours after he declared in an interview released Wednesday that he would consider ending his campaign if doctors told him he had “some medical issue,” the White House announced he had tested positive for Covid. The only reason his exit is even being discussed is his performance in the first debate with former President Donald Trump. It was his team’s decision to hold the abnormally early faceoff before the Democratic National Convention, leaving enough time for second thoughts about his candidacy to percolate. Such has been the case for Biden the last several weeks, as forces outside his direct control have overshadowed his attempts to steady his wavering campaign. Among the fears his performance sparked is whether, as my colleague Zeeshan Aleem argued, his campaign has been too focused being anti-Trump rather than presenting a second-term policy agenda. With that in mind, it makes sense that Biden finally has begun to roll out his plans for what he’ll do if he wins. You’d be forgiven if you missed the announcement for his plan for the first 100 days of his second term. It came during a Friday night event in Detroit — the day before the failed assassination attempt on Trump. Such has been the case for Biden the last several weeks, as forces outside his direct control have overshadowed his attempts to steady his wavering campaign. Biden’s pitch for his second term included some familiar agenda items, unfinished business from when the Democrats held both houses of Congress in his first two years. He pledged that the first bill he sends Congress will be to “restore Roe v. Wade to make it the law of the land.” Biden also said that he’d sign the John Lewis Voting Rights Act and the Freedom to Vote Act, both of which ran into a Republican filibuster when last presented to the Senate in 2022. Other portions of his proposed plans would expand or codify actions his administration has already taken. Last month, Vice President Kamala Harris and Lena Khan, head of the Federal Trade Commission, announced a new rule that would ban medical debt from being included in credit reports. Biden said on Friday that he would go after medical debt writ large if he returned to the White House, drawing applause from Sen. Bernie Sanders, I-Vt. Likewise, he vowed to cap insulin costs at $35 per month for all Americans with diabetes, the same way the the Inflation Reduction Act did for Medicare enrollees. But there were some new announcements in his speech that will hopefully get more attention over the coming months. One was a pledge to finally tackle the cost of housing, a crisis that affects Americans across the country. Biden told the crowd that he’d advocate a plan to “build 2 million housing units and cap rent increases at 5% a year so corporate landlords can no longer gouge everyone like they’re doing.” Since then, his administration has already rolled out details on his new housing plan in hopes of getting traction on the issue ahead of November. And while it wasn’t mentioned in his Friday address, we’ve also learned that that he’s developing a proposal to reform the Supreme Court, a major shift for him to address Democrats’ angst over the deeply conservative court and the ethics scandals circling several of the justices. Instead, the question has become whether Biden would necessarily be the one to implement those policies if Trump loses. On the one hand, this is exactly what Zeeshan was calling for in his piece, offering up a substantive, positive agenda to counter Project 2025, the conservative blueprint for the next GOP president’s agenda. It also reportedly comes after progressives like Sanders and Rep. Alexandria Ocasio-Cortez, D-N.Y., threw Biden a political lifeline following the initial calls for him to step aside. Looking down ballot, announcing these policies now also gives Democrats running for Congress items to sell to their voters, as many of them would require retaking the House and retaining the Senate. The immediate question, though, isn’t whether these are good policies — which they are, offering up a clear difference for Americans about what a Democratic president will do compared to Trump. For that matter, it’s not even about whether it will move the needle for undecided voters ahead of this fall. That’s a question that’s more up in the air, as a Gallup poll from last month showed that more independents surveyed said that Biden is too liberal than thought Trump is too conservative. Instead, the question has become whether Biden would necessarily be the one to implement those policies next year. While the intense scrutiny he’s faced since the debate has been a bit much at times, it was still eyebrow raising when he mangled his housing policy when speaking at the NAACP earlier this week. And after a brief respite in the aftermath of this weekend’s shooting, the tide against him remaining in the race has continued to pummel him. On Wednesday, Rep. Adam Schiff, D-Calif., became the most prominent Democrat to publicly call for Biden to drop out in favor of another candidate. Hours later, the White House announced that he has Covid, taking him off the campaign trail. Curiously, Biden’s inability to sell these second-term policies on the stump for the next few days highlights how few of them are uniquely associated with Biden. Much of what’s been announced could easily be the position of any Democrat running for president in 2024. Without a competitive primary season to distinguish between the alternative candidates whose names have been floated, the debate has been over who voters will believe is best equipped to win against Trump. Maybe that wouldn’t have been the case if Biden had started making his case earlier — but, again, timing is everything here.
With corners of the media industry in upheaval, Netflix makes clear it's staying out of the fray 2024-07-18 21:33:00+00:00 - Netflix’s second-quarter earnings report contained no bombshells, and that’s just fine for the company and its investors. In recent weeks, Paramount Global has agreed to merge with Skydance Media. Warner Bros. Discovery is considering all options for its future and may lose broadcast rights to the NBA. While the media and entertainment landscape around Netflix is in a state of change, the world’s largest streamer is fine with the status quo. “If we execute well — better stories, easier discovery and more fandom — while also establishing ourselves in newer areas like live, games and advertising, we believe that we have a lot more room to grow,” Netflix said in its quarterly shareholder letter. “Because when we delight people with our entertainment, Netflix can drive higher engagement, revenue and profit than the competition. This in turn creates a more loved and valued entertainment company — for our members, creators and shareholders — that we can strengthen and grow over time.” Netflix classified the streaming, pay TV, film, gaming and branded advertising market as a $600 billion industry in terms of total annual sales, noting the company accounts for about 6% of that revenue. The streamer added more than 8 million subscribers in the quarter. It now has more than 277 million global customers, making it by far the largest subscription streaming service in the world. Netflix’s market valuation as of Thursday’s market close is $277 billion. Nielsen statistics show Netflix as the second most-watched streaming service in the U.S., trailing only YouTube. But rather than worry about YouTube’s competition, Netflix is content to focus on the other 80% of the TV market, the company reiterated. “Looking to the future, we believe our biggest opportunity is winning a larger share of the 80%+ of TV time (primarily linear and streaming) that neither Netflix nor YouTube has today,” the company said. While Warner and Disney announced a new cross-company bundle in May that will give consumers the ability to buy Max with Disney’s suite of streaming services for a discount, Netflix made a point to say it feels no need to engage with the competition. “We haven’t bundled Netflix solely with other streamers like Disney+ or Max because Netflix already operates as a go-to destination for entertainment thanks to the breadth and variety of our slate and superior product experience,” Netflix said. “This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other.” Netflix’s focus remains building its advertising business and adding streaming subscribers on the back of its strength of content. It’s not the most dramatic of narratives. It may not make for a great Netflix series. But as an investment, shareholders will happily take it.
Nvidia rebounds after TSMC says AI chip demand remains strong 2024-07-18 21:24:00+00:00 - Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Conference at the SAP Center in San Jose, California, on March 18, 2024. Nvidia shares rose about 3% during trading on Thursday, rebounding one day after the stock plunged 7% on geopolitical concerns sparked by comments from U.S. presidential candidate Donald Trump. Nvidia's rise came after TSMC said on Thursday that demand remains high and supply remains constrained for high-end AI chips, which TSMC manufactures for Nvidia. "I also try to reach the supply and demand balance, but I cannot. Today, the demand is so high I had to work very hard to meet customer demand," Wei told analysts. "The supply continues to be pretty tight, all the way through 2025," TSMC Chairman C.C. Wei said on Thursday. The manufacturer reported revenue and net income higher than analyst expectations on Thursday, and the stock fell less than 1%. On Wednesday, the semiconductor sector had its worst day since 2020, with big drops from AMD , Arm , Broadcom and Qualcomm alongside Nvidia. Chip stocks sunk on geopolitics concerns highlighted by comments from U.S. presidential candidate Donald Trump that he was considering a change to U.S. policy to not protect Taiwan from a Chinese invasion without payment. A Chinese invasion would throw Nvidia's chip supply into question. "While there is rising concern over geopolitical tension given the upcoming US presidential election, TSMC mentioned that it would continue its overseas expansion to mitigate the risks," Citi analyst Laura Chen wrote in a note on Thursday. TSMC is currently constructing a large chip factory in Arizona, partially funded by U.S. subsidies. Other chipmakers still struggled. Arm was down 2%, AMD fell 2%, and Qualcomm was flat. Super Micro Computer, a key server assembler for Nvidia, fell 2%. Intel rose over 1%, and Broadcom was up about 3% after a report that said it was in talks to produce AI chips for OpenAI. Bloomberg reported on Wednesday that the Biden administration is considering further trade restrictions on shipping chip manufacturing equipment to China. ASML, a Dutch company which makes the machines that TSMC uses to make chips, was off 1% after it reported light sales guidance for the current quarter on Thursday. UBS analysts wrote in a Thursday note that investors are taking gains from strong semiconductor performers and reallocating them into other shares, although forthcoming commentary later this year on how companies are making a return on investment on AI chips may spur the sector higher again. Nvidia stock is up more than 150% so far in 2024. "Following sharp semiconductor sector outperformance in the first half, some investors have rebalanced AI-linked semiconductor exposure into large-cap platform and profitless tech companies," UBS analysts wrote in the note.
Lou Dobbs, Former Fox Business Host and Trump Booster, Dies at 78 2024-07-18 21:20:17+00:00 - Lou Dobbs, the conservative television and radio host who used his platforms at CNN and Fox Business to promote baseless conspiracy theories and who became an ardent supporter of former President Donald J. Trump, has died. He was 78. His death was confirmed on Thursday on Mr. Dobbs’s website and social media accounts after Mr. Trump announced it on the Truth Social platform. No cause of death was given, and it was not immediately clear where or when he died. Mr. Dobbs had been absent from “The Great America Show,” his podcast on the iHeartRadio network, for several weeks. While at CNN in the mid-2000s, Mr. Dobbs was part of a stable of cable hosts, along with Bill O’Reilly at Fox News and Keith Olbermann at MSNBC, who built national profiles as aggressively opinionated talkers. Although CNN sought to position itself as a home for straight news, Mr. Dobbs’s 6 p.m. news program was accompanied with the disclaimer that it would contain “news, debate and opinion.”
New Instagram Study to Investigate Social Media's Effects On Teen Mental Health - Meta Platforms (NASDAQ:META) 2024-07-18 21:20:00+00:00 - Loading... Loading... Meta Platforms Inc’s META Instagram has initiated a pilot program in collaboration with the Center for Open Science (COS), permitting selected researchers to access its data. This move aims to investigate the potential impact of social media on the mental well-being of teens and young adults. See Also: Instagram CEO Reveals 5 Secrets For Engagement And Success As reported by The Atlantic, the program will span six months and provide researchers with anonymized insights into user behavior, excluding sensitive information such as demographics and specific content details. Meta says that the data shared will encompass details like account usage patterns and settings, but will not include post contents, comments, or messages. COS will independently select up to seven research proposals focusing on various aspects of teen mental health. Researchers are required to recruit participants directly and obtain parental consent. Curtiss Cobb, Meta's vice president of research, stated: "Parents, policymakers, academics, and technology companies are grappling with how best to support young people as they navigate online spaces, but we need more data to understand the full picture." This initiative follows concerns raised by Facebook whistleblower Frances Haugen in 2021, who shared internal documents suggesting a possible link between Instagram usage and increased rates of anxiety and depression among teens. These revelations have prompted calls for more transparent research efforts from Meta. In response, Instagram has introduced safety features aimed at protecting younger users. However, legislative actions across the US continue to underscore the urgency of addressing the potential impacts of online platforms on children. Read Next: Photo by Alexander Shatov on Unsplash
What we can expect from the fifth and final season of 'The Boys' 2024-07-18 21:19:08+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview All good things must come to an end, including Prime Video's popular superhero satire series "The Boys." The show was officially renewed for a fifth season in May. Then on Tuesday, two days before the the season four premiere, creator and showrunner Eric Kripke revealed via X (formerly Twitter) and Instagram that the upcoming fifth season would be the show's last. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "#TheBoys Season 4 Premiere Week is the perfect time to announce: Season 5 will be the Final Season! Which was always my plan, I just had to be cagey about it until I got final permission from @voughtintl,'" Kripke wrote on Instagram. "But I'm thrilled to bring this story to a gory, epic, emotional climax. So check out Season 4, premiering THIS THURSDAY, because the end has begun! Hop in for the ride. Which will be bumpy. And probably a little moist. @theboystv @primevideo." Advertisement Here's everything we know about season five of "The Boys," so far. Season 4 is designed to be a darker, more introspective season ahead of the all-out action of season 5 Erin Moriarty as Annie January on season four, episode three of "The Boys." Prime Video Season four explores the characters' biggest fears and unresolved traumas. Kripke compared the show to a three-act film and said that season four serves as act two. "It's like the darkest point, the most introspective point," he told Deadline. "It's the one where the characters have to emotionally face their existential trauma. So then they're able to jump onto the roller coaster ride that is the climax of the movie." In an interview with LADbible, Kripke said that the season four finale makes the five-season plan even clearer. Advertisement "There's no way a show goes one more season after the events of that finale," the showrunner said. "As far as we're concerned, it's our show's version of the apocalypse," he said of season five. Jeffrey Dean Morgan hopes to return as Joe Kessler Jeffrey Dean Morgan as Joe Kessler and Karl Urban as Billy Butcher in season four of "The Boys." Jasper Savage/Prime Video Morgan joined season four of "The Boys" as one of Butcher's old buddies who reenters his life. It's not until episode six that fans learn that the real Joe is actually dead, and Butcher has been hallucinating the whole time — a side effect of his brain tumor. In season four, the hallucination version of Joe serves as the manifestation of Butcher's bloodthirsty side, the part of him that wants to wipe out all supes. During the last moments of the finale, Butcher is seen driving off with the last dose of the supe-killing virus, with Joe smiling with satisfaction in the rearview mirror. Advertisement "I don't know how you do season five without an appearance, at least," Morgan told Variety when asked if he'll return for the final season. "That's my feeling. I've never had any official talks about it, but I think it'd be really hard to carry on without some sort of resolution — and hopefully that'll be a whole season!" Kripke already has ideas for the series finale ending Nathan Mitchell as Black Noir and Chace Crawford as The Deep in season four, episode two of "The Boys." Jasper Savage/Prime Video Kripke told Deadline that the writers' room spent weeks discussing the show's mythology and broad ideas for season five, and he has a good idea of how the series will conclude. Related stories "I know that moment where the title card comes up and it says six months later, and you see where everybody is," he said. "I know that. I can really write the last 10 pages of this story right now." He explained to The Hollywood Reporter that everything hasn't been mapped out in detail yet because he wants to create room for the writers to suggest ideas and twists. Advertisement "I don't totally know how we're going to get there, but I know the destination," he said. Season 5 of 'The Boys' will definitively wrap up the show's story Karl Urban as Butcher and Antony Starr as Homelander in the season three finale of "The Boys." Courtesy of Amazon Studios "The Boys" juggles many characters and storylines, but the heart of the show is the dynamic between sworn enemies Butcher (Karl Urban) and Homelander (Antony Starr). Homelander already teased a "scorched" earth" destiny for him and Butcher in the season three premiere. It looks like fans will likely see that play out in season five. "The show is a serialized story that is about Butcher and Homelander slowly crashing into each other, and the show doesn't work without either of those," Kripke told The Hollywood Reporter. "So, you just can't keep that going on forever, you have to let them smash into each other." Advertisement "What I would say is, this particular story is ending, the Butcher-Homelander is ending," he told Variety. "But there can be other stories and other corners of the universe." There are already various "Boys" offshoots in different stages; the college-set "Gen V" was renewed for a second season in October and a Mexico spin-off is in the works. But the upcoming fifth season of "The Boys" will be the end of the road for the show. "This story of 'The Boys' will not continue on," Kripke told Entertainment Weekly, adding that there are some other potential spin-offs in development that have yet to be announced. There's no release date yet for season 5 Jack Quaid as Hughie Campbell and Erin Moriarty as Annie January in season four of "The Boys." Jasper Savage/Prime Video "It's not totally locked in yet, but we are going to start shooting around mid-November," Kripke told Variety. "And I don't know when it'll premiere yet, but we'll be shooting well into middle of '25." Advertisement The showrunner added that, like past seasons, the final installment will be comprised of eight episodes. Since season five is anticipated to film through 2025, that means it likely won't premiere until 2026.
Hunter Biden cites Trump ruling in seeking dismissal of gun and tax cases 2024-07-18 21:17:00+00:00 - Hunter Biden, son of US President Joe Biden, walks upon arrival at Fort Lesley J. McNair in Washington, DC, on July 1, 2024. Lawyers for Hunter Biden on Thursday asked federal judges in California and Delaware to dismiss the criminal tax and gun cases against him in their courts, citing a recent opinion by Supreme Court Justice Clarence Thomas and the related dismissal this week of the criminal classified documents case against former President Donald Trump. Biden's lawyers in motions filed in both courts pointed to those two opinions — which questioned the legality of the appointment of special counsel Jack Smith to prosecute Trump — in arguing that the appointment of U.S. Attorney David Weiss as special counsel for prosecutions of the son of President Joe Biden was unconstitutional. The motions follow the ruling Monday by Florida federal court Judge Aileen Cannon tossing out Smith's prosecution of Trump over his retention of classified documents after leaving the White House. Cannon, who herself cited Thomas' recent concurring opinion in another Trump case, ruled that Smith's appointment as special counsel violated the Appointments Clause of the U.S. Constitution. Smith on Wednesday filed an appeal of Cannon's decision. "The Attorney General relied upon the exact same authority to appoint the Special Counsel in both the Trump and Biden matters, and both appointments are invalid for the same reason," Hunter Biden's lawyers wrote in their filings Thursday. However, a key difference between Smith and Weiss is that Smith was a private citizen when he was tapped as special counsel by Attorney General Merrick Garland, while Weiss was already a Senate-confirmed U.S. Attorney for Delaware when Garland named him special counsel. But Biden's lawyers in their motion suggested that the difference is not relevant. "The constitutional flaw at the center of the Special Counsel's appointment is that Congress has not established the office of a Special Counsel," those lawyers wrote. "Given that Congress requires a U.S. Attorney to be nominated by the President and confirmed by the Senate, it makes no sense to assume that Congress would allow the Attorney General to unilaterally appoint someone as Special Counsel with equal or greater power than a U.S. Attorney," the filing says. "That is what has been attempted here." CNBC has requested comment from Weiss. Biden, 54, was convicted in Delaware federal court in June of three felony counts related to his purchase of a handgun in Delaware in 2018 while being a user and addict of crack cocaine. The motion filed Thursday in that court asks for the conviction to be tossed out and the case dismissed. He is awaiting trial in Los Angeles federal court on federal tax crime charges, which Biden's lawyers likewise are asking a judge there to toss out. Both motions by Biden note that his lawyers previously, and unsuccessfully, argued that Weiss was improperly appointed special counsel in violation of Department of Justice regulation, and because he relied on funding that did not apply to the special counsel. "But the motion Mr. Biden brings now is different and builds on recent legal developments," his lawyers wrote. The motion notes that on July 1 the Supreme Court said that Trump had presumptive immunity from criminal prosecution for so-called official acts as president. That ruling related to Smith's pending prosecution of Trump in Washington, D.C., federal court for crimes associated with Trump's attempt to reverse his loss to President Biden in the 2020 election. In a concurring opinion with the majority ruling in the Supreme Court, Justice Thomas suggested that Smith's appointment as special counsel "may violate our constitutional structure." "In this case, the Attorney General purported to appoint a private citizen as Special Counsel to prosecute a former President on behalf of the United States," Thomas wrote. "But, I am not sure that any office for the Special Counsel has been 'established by Law,' as the Constitution requires." Thomas wrote that "lower courts" should answer whether special counsels are allowed by the Constitution before proceeding in the cases against Trump. Judge Cannon on Monday did just that in her ruling tossing out the classified documents case against the former president, which cited Thomas' concurring opinion in the Supreme Court case several times. Cannon wrote that Smith's appointment violated the Appropriations Clause because as a rule says " 'officers of the United States — whether 'inferior' or 'principal' — must be appointed by the President and confirmed by the Senate." Smith, like Weiss in Biden's cases, was appointed by Attorney General Merrick Garland. Cannon also ruled that the use by Smith's office of a permanent funding appropriation also violated the Appropriations Clause of the Constitution. Biden's lawyers cited Cannon's ruling on that point in arguing that Weiss's use of a permanent funding appropriation likewise renders his indictment of Biden unconstitutional.
Meta eyes a small stake in Ray-Ban maker. Why Jim Cramer says it's a big deal 2024-07-18 20:58:00+00:00 - Meta Platforms is reportedly eying a potential stake in the maker of Ray-Ban glasses — a promising development for the social media giant's ambitions in hardware for years to come. The Facebook and Instagram parent is in discussions to take 5% ownership in France-based EssilorLuxottica , the Financial Times and The Wall Street Journal reported Thursday. That stake would be worth a little under $5 billion, the Journal reported, while cautioning a deal may not come together. Meta declined CNBC's request for comment. The companies have partnered on the Ray-Ban Meta smart glasses for years, with the second-generation frames going on sale in October 2023 and by all accounts exceeding expectations. The potential ownership stake in EssilorLuxottica would deepen that relationship and help Meta develop future hardware products. "Taking that stake in EssilorLuxottica [would be] a very big deal," Jim Cramer said Thursday on CNBC, noting how strong demand for the Ray-Ban Meta glasses have been. "You can't make them fast enough," he said. On Meta's first-quarter earnings call in April, CEO Mark Zuckerberg said the glasses were sold out in "many styles and colors," adding: "We're working to make more and release additional styles as quickly as we can." The second-gen Ray-Ban Meta smart glasses incorporate the tech firm's artificial intelligence assistant, MetaAI, which enables wearers to ask questions about their surroundings and get answers. The glasses, which retail for $299, also can take pictures and video, play music and place calls through a phone. Meta in April announced an expanded lineup of frame styles and features, including the ability to share your view on a video call through WhatsApp and Messenger. The second-generation Ray-Ban Meta glasses are thought to be far more successful than their predecessor, which launched in 2021 and reportedly struggled sustain engagement among users due in part to performance issues. "Engagement and retention are also significantly higher than the first version of the glasses," Zuckerberg said in February. Incorporating MetaAI into the product improved the user experience, the CEO said, along with a higher-resolution camera and sharper audio. The third generation of the Ray-Ban Meta frames, which is expected to include a small screen display, is anticipated to be out in time for the 2025 holiday season, the Journal reported Thursday. Meta has not disclosed specific sales figures for the Ray-Ban frames. But, in general, the smart glasses represent a notable win for Meta's Reality Labs division, which develops virtual and augmented reality hardware and software to help advance the company's metaverse ambitions. While Reality Labs has lost tens of billions of dollars in recent years, Meta continues to invest heavily in the segment. "This is the beginning of some of the stuff that Meta is doing. Remember the division that just loses money hand over fist? This is a hand-over-fist production" for Ray-Ban Meta glasses, Jim said Thursday. Shares of Meta Platforms rose more than 2% Thursday, following a five-session slide in which the stock lost over 13%. Those declines coincided with a huge market rotation out of high-flying tech winners and into cyclical stocks that began a week ago. Still, Meta shares are up more than 30% year-to-date. We participated in some Meta profit-taking earlier this month, trimming our position July 8 after the stock had battled its way back from its earnings sell-off in April and set a fresh high. Meta is set to report its second-quarter earnings July 31 when we'll be expecting to hear an update on its long-term AI and metaverse projects. (Jim Cramer's Charitable Trust is long META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Ray-Ban Meta Smart Glasses 2nd generation at a Meta Platforms event in San Francisco, California, US, on Sept. 18, 2023. David Paul Morris | Bloomberg | Getty Images
With Roe gone, abortion foes tee up another precedent for the Supreme Court to overturn 2024-07-18 20:55:30+00:00 - When the Supreme Court overturned Roe v. Wade in 2022, the majority complained that prior abortion rulings had “distorted First Amendment doctrines.” The case the court cited for that proposition was Hill v. Colorado, a 2000 decision that upheld a law that barred approaching people without consent outside of a health care facility for the purpose of leafletting, displaying signs, protesting, educating or counseling. A new petition to the justices this week asks the court to overrule Hill — and there’s reason to think the court will do it. Hill was decided 6-3 in 2000, when the court’s composition was much different than it is today (as one may have guessed from the Dobbs majority’s disapproving citation). Justice Clarence Thomas, who dissented in Hill, is the only justice from that original ruling who is still on the court. The new petition comes from the anti-abortion group Coalition Life. It challenges a Carbondale, Illinois, ordinance that it says is virtually identical to the one that the court upheld in Hill, which set the zone within 100 feet outside a facility and within 8 feet of a person. “The lower courts had no choice but to uphold that carbon-copy measure,” the group said in the petition filed by the group's legal representatives, the Thomas More Society and Paul Clement, a top conservative Supreme Court lawyer. “This Court has a better option,” it said: overrule Hill. The city has an opportunity to respond before the court considers whether to grant review, which takes four justices. Based on the majority’s negative reference to Hill in the Dobbs decision — on top of the court’s First Amendment rulings since Hill — it appears there are at least that many justices who would consider overturning Hill. And Coalition Life's is not the only petition seeking to ditch the 2000 precedent. There's another one pending before the justices, filed by the American Center for Law and Justice, whose chief counsel is Trump impeachment lawyer Jay Sekulow, who argued Hill for the challengers. Whether in these pending appeals or any another, the issue is one to watch as the court fills out its docket for the next term, which starts in October.
COVID Activity Is Elevated Across 26 States In Summer Surge, Biden Remains In Isolation: 3 Vaccine Stocks To Watch - Harbor ETF Trust Harbor Health Care ETF (ARCA:MEDI), First Trust Morningstar ETF (A 2024-07-18 20:55:00+00:00 - Loading... Loading... More than half of the states in the U.S. are experiencing significant Covid-19 activity in wastewater, and President Joe Biden remains in isolation after announcing Wednesday he caught the virus for the third time. Twenty-six states are reporting either “high” or “very high” levels of the virus at various sites, according to the latest data from the Centers for Disease Control and Prevention. States with the highest levels include Arkansas, California, Florida, Maryland, Nevada, Oregon and Texas. The Biden administration no longer considers Covid-19 a public health emergency and instead treats it as a routine respiratory virus to be prevented through an annual vaccination campaign, the Washington Post reported. Also Read: European Commission Faces Court Criticism Over COVID Vaccine Contract Transparency Ahead Of Vote on Ursula Von Der Leyen’s Reappointment Biden is staying at his Rehoboth Beach home in Delaware while continuing to perform presidential duties. Vaccine Stocks To Watch: Novovax, Inc. NVAX, Moderna, Inc. MRNA and Pfizer Inc. PFE are all making new Covid vaccines that should be available before the end of September, the New York Times reported. The Novavax vaccine will target JN.1, the variant that was prominent in the winter and spring. Pfizer and Moderna are developing shots aimed at KP.2, which accounts for about one in four new cases. Two related variants, KP.3 and LB.1, are the culprint behind more than half of new cases, the Times said. All three variants are descendants of JN.1, so each of the vaccines is expected to be effective against them. NVAX, MRNA, PFE Price Action: Novovax shares were down 5.7% to $14.94 late in Thursday’s session. Moderna was down 2.16% to $121.37. Pfizer is down 1.07% at $29.70. Exchange-traded funds that hold shares of Pfizer, which has the largest market capitalization of the group of vaccine developers at $169 billion, declined in Thursday afternoon trading. First Trust Nasdaq Pharmaceuticals ETF FTHX fell 0.35%. fell 0.35%. First Trust Morningstar Dividend Leaders Index Fund FDL slipped 0.69%. slipped 0.69%. Invesco Pharmceuticals ETF PJP slid 0.55%. slid 0.55%. Harbor Health Care ETF MEDI lost 0.33%. lost 0.33%. Invesco S&P Ultra dividend Revenue ETF RDIV declined 0.66%. Read Now: Photo via Shutterstock.
Business owner goes viral for mass 'Trump 2024' email—why he missed the mark, from a 'productive discourse' expert 2024-07-18 20:48:00+00:00 - Anthony Constantino got a lot of responses after he sent a mass email to his custom printing company's customers with the subject line "Trump 2024." Some recipients applauded the Sticker Mule co-founder's message, which called for a stop to "insane political hate" toward former president Donald Trump and his supporters, after an attempted assassination of Trump on July 13. Others responded with intense distaste, especially once the memo went viral on social media. Prior to Constantino's email, which Sticker Mule also published on social media, the Amsterdam, New York-based company wasn't particularly known for its political stances. Now, its post on X alone has at least 10.3 million views. The virality raises a question among leadership experts: During politically fraught moments, do bosses have a responsibility to issue public statements? If you want to maximize your impact, keep your messaging within your company, says Steven Collis, a productive discourse expert and author of the upcoming book, "Habits of a Peacemaker: 10 Habits to Change Our Potentially Toxic Conversations into Healthy Dialogues." "You really need to assess how much good do statements like this really do. Do they actually persuade the public on something?" Collis, who teaches at The University of Texas at Austin School of Law, tells CNBC Make It. "The more important question is, could you do something else more valuable that gets less public recognition, but addresses this issue that you're worried about?" 'We are happy to take some heat' Emotions ran high on July 13. For Constantino, who co-founded the custom printing services company in 2010, supporting the 45th U.S. president was imperative. "I don't care what your political views are but the hate for Trump and his supporters has gone too far," Constantino wrote. "I support Trump. Many at Sticker Mule do. Many at Sticker Mule also support Biden. The political hate needs to stop." "Btw, this week, get 1 shirt for $4 (normally $19). I suggest buying one that shows you support Trump," he added in his email, which a recipient screenshotted and posted to Reddit. Those two sentences appear to have been removed from the version Sticker Mule posted to social media. The memo prompted more than 30,000 comments across social media platforms, and hundreds of reaction videos on TikTok. "You have my business for life," one Instagram user wrote. "Bye Sticker Mule! Seeking a new sticker supplier as we speak. SMH," commented another. Some people sent death threats to the company's customer support team, Constantino tells CNBC Make It. The company "took swift action by issuing a $2500 bonus to all 79 people on our support team to thank them for dealing with the bulls---," he says. Constantino stands by his original email, he notes. "Sticker Mule has an incredible reputation as a generous, caring brand and we are happy to take some heat to educate the world that the extreme hatred directed at Trump and his supporters is wrong," he says, adding: "We are doing the right thing to make the world happier ... Sticker Mule wants max happiness for everyone." Do's and don'ts for public statements
Is Adverum Biotechnologies Stock Outpacing Its Medical Peers This Year? - Medpace Hldgs (NASDAQ:MEDP), Adverum Biotechnologies (NASDAQ:ADVM) 2024-07-18 20:37:00+00:00 - Loading... Loading... The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Adverum Biotechnologies ADVM been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. Adverum Biotechnologies is one of 1025 individual stocks in the Medical sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Adverum Biotechnologies is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for ADVM's full-year earnings has moved 2.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that ADVM has returned about 16.6% since the start of the calendar year. Meanwhile, stocks in the Medical group have gained about 8.1% on average. This shows that Adverum Biotechnologies is outperforming its peers so far this year. Another Medical stock, which has outperformed the sector so far this year, is Medpace MEDP. The stock has returned 42.6% year-to-date. For Medpace, the consensus EPS estimate for the current year has increased 7.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Adverum Biotechnologies is a member of the Medical - Biomedical and Genetics industry, which includes 500 individual companies and currently sits at #70 in the Zacks Industry Rank. On average, stocks in this group have gained 0.5% this year, meaning that ADVM is performing better in terms of year-to-date returns. On the other hand, Medpace belongs to the Medical Services industry. This 57-stock industry is currently ranked #67. The industry has moved +6% year to date. Adverum Biotechnologies and Medpace could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks. To read this article on Zacks.com click here.
The sibling trio turning Bali's river trash into sandals and furniture 2024-07-18 20:36:35+00:00 - Indonesia ranks as one of the world's biggest contributors to ocean plastics, and a lot of it comes from rivers. The local nonprofit Sungai Watch saves about 3 metric tons of trash from entering the ocean every day with simple barriers and manual labor. We visited the island of Bali to meet the three young siblings behind the nonprofit and learn why a tropical paradise has a huge trash problem.
MGM Resorts' BetMGM Expands Reach in Washington DC - PlayAGS (NYSE:AGS), American Public Education (NASDAQ:APEI) 2024-07-18 20:35:00+00:00 - Loading... Loading... MGM Resorts International's MGM leading sports betting and the iGaming brand, BetMGM, expanded its mobile sports betting service throughout Washington, D.C. This move allows sports fans across the district to use the BetMGM app and earn rewards from MGM Resorts and Marriott Bonvoy. The strategic expansion follows the D.C. Council's approval of its fiscal 2025 budget, which includes opening the digital sports betting market. MGM retains exclusivity around Nationals Park, operating the BetMGM Sportsbook through a partnership with the Washington Nationals. This allows fans to bet on their favorite teams across the District using BetMGM's award-winning mobile app. BetMGM continues to prioritize responsible gambling education as it expands into new markets. The company offers resources like GameSense, developed and licensed by the British Columbia Lottery Corporation and integrated into BetMGM's mobile and desktop platforms. This program provides customers with familiar tools for responsible gaming, complementing BetMGM's existing safety measures to ensure an enjoyable and secure digital gaming experience. Focus on Sports Betting MGM Resorts continues to focus on sports betting expansion. Sports betting and iGaming continue to be a major growth driver following the legalization of sports betting outside Nevada. The company emphasizes the approval and subsequent migration of the Entain platform in Nevada, setting the stage for the integration of a single account and wallet in Nevada during late spring 2024. The company is confident about the improved design and functionality of the BetMGM app launch (of a single wallet) and omnichannel growth prospects. BetMGM announced that it has partnered with Gila River Hotels & Casinos and the Arizona Cardinals in an effort to expand its retail and online sports betting. The company started a collaboration with Orix to build a world-class integrated resort in Japan. BetMGM has a long-term growth target of 20% to 25% in U.S. sports betting and iGaming. Currently, the company is on track to achieve its target. Price Performance Image Source: Zacks Investment Research Shares of this owner and operator of casino resorts through wholly-owned subsidiaries have gained 7.4% in the past six months compared with the Zacks Gaming industry's 15.9% growth. Although the company's shares have underperformed its industry, its ongoing focus on sports betting and iGaming along with international expansion, asset-light strategy, and non-gaming activities are likely to foster its growth in the upcoming period. The Zacks Consensus Estimate for 2025 earnings per share has increased to $3.19 from $3.13 in the past 30 days. Zacks Rank & Key Picks MGM Resorts currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows: PlayAGS, Inc. AGS sports a Zacks Rank #1 (Strong Buy). AGS has a trailing four-quarter earnings surprise of 33.3%, on average. The stock has appreciated 70.1% in the past year. The consensus estimate for AGS's 2024 sales and EPS suggests growth of 7.7% and 5,200%, respectively, from the year-ago levels. American Public Education, Inc. APEI currently flaunts a Zacks Rank #1. APEI has a trailing four-quarter earnings surprise of 138.2%, on average. The stock has surged 283.6% in the past year. The Zacks Consensus Estimate for APEI's 2024 sales and EPS indicates an increase of 3.9% and 124.6%, respectively, from year-ago levels. Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2 (Buy). RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has rallied 65.4% in the past year. The Zacks Consensus Estimate for RCL's 2024 sales and EPS calls for growth of 16.9% and 64%, respectively, from the year-ago levels. To read this article on Zacks.com click here.
Federal appeals court blocks Biden's new student loan relief plan 2024-07-18 20:34:00+00:00 - President Joe Biden delivers remarks on new Administration efforts to cancel student debt and support borrowers at the White House on October 04, 2023 in Washington, DC. Kevin Dietsch | Getty Images SAVE plan mired in legal troubles The Biden administration rolled out the SAVE plan in the summer of 2023, describing it as "the most affordable student loan plan ever." Indeed, the terms of the new income-driven repayment plan are the most generous to date, making it controversial among critics of debt forgiveness. So far, around 8 million borrowers have signed up for SAVE, according to the White House. SAVE comes with two key provisions that legal challenges have targeted: It has lower monthly payments than any other IDR plan, and it leads to quicker debt erasure for those with small balances.
Alterity Up on Interim Data From Advance MSA Study - Compugen (NASDAQ:CGEN), Alterity Therapeutics (NASDAQ:ATHE) 2024-07-18 20:33:00+00:00 - Loading... Loading... Shares of Alterity Therapeutics ATHE were up 7.8% on Jul 17 after the company announced positive interim data from the phase II ATH434-202 study evaluating its lead pipeline candidate ATH434 for treating patients with multiple system atrophy, a rare neurodegenerative disease. The study enrolled 10 participants with advanced MSA. Per the press company, interim analysis results from the open-label ATH434-202 study included clinical and biomarker data from seven participants who were treated with ATH434 for six months and neuroimaging data from three participants who were treated with ATH434 for 12 months. Data from the same showed that 43% of the participants displayed improvement on the Unified MSA Rating Scale Part I (UMSARS1), indicating reduced disability in activities of daily living following six months of treatment. Also, 29% of the participants had stable or improved neurological symptoms at the same time. Patients who were treated with ATH434 had favorable clinical and biomarker outcomes, which underlined the potential of ATH434 to modify the course of MSA treatment. Shares of Alterity have plunged 14.2% so far this year compared with the industry's decline of 1%. Phase I studies conducted on ATH434 showed that the candidate is well tolerated and achieved brain levels that are comparable to efficacious levels seen in animal models of MSA. Final 12-month data from the open-label ATH434-202 study is expected in the first half of 2025. Alterity is currently evaluating ATH434 across two separate mid-stage studies. Apart from the ATH434-202 study, which evaluates ATH434 in more advanced MSA, the phase II ATH434-201 study is evaluating ATH434 in early-stage MSA. An oral candidate, ATH434, is designed to inhibit the aggregation of pathological proteins implicated in neurodegeneration. ATH434 has been granted orphan drug designation in treating MSA indications by the FDA and the European Medicines Agency. Zacks Rank & Stocks to Consider Alterity currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks in the biotech sector are Entrada Therapeutics, Inc. TRDA, Compugen Ltd. CGEN and Beyond Air, Inc. XAIR, each sporting a Zacks Rank #1 (Strong Buy) at present. In the past 60 days, estimates for Entrada Therapeutics' 2024 loss per share have narrowed from 14 cents to 13 cents. Loss per share estimates for 2025 have narrowed from $3.44 to $3.21. Year to date, shares of TRDA have jumped 13.4%. TRDA's earnings beat estimates in two of the trailing four quarters and missed the same on the remaining two occasions, the average surprise being 42.18%. In the past 60 days, estimates for Compugen's 2024 earnings per share have improved from 2 cents to 5 cents, while loss per share estimates for 2025 have narrowed from 27 cents to 11 cents. Year to date, shares of CGEN have lost 6%. CGEN's earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 5.79%. In the past 60 days, estimates for Beyond Air's 2024 loss per share have narrowed from 44 cents to 35 cents. Loss per share estimates for 2025 have narrowed from $1.45 to $1.01. Year to date, shares of XAIR have plunged 71.4%. XAIR's earnings beat estimates in three of the trailing four quarters while missing the same on the other occasion, the average surprise being 8.77%. To read this article on Zacks.com click here.
Reasons to Add Masimo Stock to Your Portfolio Now - Masimo (NASDAQ:MASI) 2024-07-18 20:32:00+00:00 - Loading... Loading... Masimo Corporation MASI is well-poised for growth in the coming quarters, courtesy of its research and development (R&D) efforts. The optimism, led by a solid first-quarter 2024 performance and its solid product portfolio, is expected to contribute further. However, concerns regarding overdependence on its Signal Extraction Technology ("SET") unit and macroeconomic issues persist. Over the past year, this Zacks Rank #2 (Buy) company's shares have lost 7.1% against the industry's 6% growth. The S&P 500 has witnessed 17.6% growth in the said time frame. The renowned global provider of non-invasive monitoring systems has a market capitalization of $5.84 billion. The company projects 9.3% growth for 2025 and expects to maintain its strong performance going forward. Masimo's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 4.7%. Image Source: Zacks Investment Research Let's delve deeper. Product Portfolio: We are optimistic about Masimo's healthcare business, which develops, manufactures and markets a variety of non-invasive patient monitoring technologies, hospital automation and connectivity solutions, remote monitoring devices and consumer health products. Last month, Masimo introduced Sleep Halo, a powerful new feature, for its Masimo W1 Sport advanced health tracking wearable, intended for scientifically based sleep analysis. Sleep Halo is likely to offer overnight sleep data tracking with an unmatched 70,000+ daily measurements of second-by-second continuous health data. The company introduced White PerL, which is the latest from the Denon PerL product lines, in May. In February, Masimo received the FDA's clearance for MightySat Medical, making it the first and only FDA-cleared medical fingertip pulse oximeter available over-the-counter to consumers without a prescription. Research and Product Development: We are upbeat about Masimo's ongoing R&D efforts, which it believes are essential to its success. Its R&D efforts focus on continuing to enhance its technical expertise toward its existing product portfolios and expanding its technological leadership with innovations, among others. Additionally, the company continues to collaborate with Willow on R&D activities related to advancing rainbow technology and other technologies. Strong Q1 Results: Masimo's first-quarter 2024 results buoy optimism. Per management, shipments of non-invasive technology boards and instruments, excluding handheld and fingertip pulse oximeters, totaled 50,400 during the quarter. The company continues to gain market share, along with higher contracts with hospitals. Moreover, it expects shipments to cross 55,000 from the second quarter and reach more than 60,000 in the second half of 2024. Management plans three product launches in 2024, namely Freedom, H1 and the next-generation version of its Root Connectivity platform. Downsides Consumer Business Spin-off: Masimo is currently in discussion to spin off its Consumer business with an undisclosed third party. The company entered into a non-binding term sheet agreement in May to sell the majority stake in its consumer audio and consumer health businesses. The third party offered to acquire a stake in MASI's consumer business for a purchase price of $850-$950 million, on a cash and debt-free basis, following the completion of six weeks of due diligence. MASI added the majority of its Consumer business with the acquisition of Sound United in 2022 for more than $1 billion. The current offer price for the business seems to be lower than the acquisition price, implying a potential loss for its shareholders. Rift With Politan: Masimo has been facing challenges from activist investor, Politan, since last year. Politan acquired a stake in Masimo last year and added two members to the latter's board. Politan has been trying to gain control of the board since then. Currently, the activist investor has nominated members against MASI's CEO and founder, Joe Kiani, in a proxy vote for electing new board members. A potential loss of control over the board for Kiani may lead to uncertain times. Although Politan is claiming that it will help boost shareholders' value after gaining the board's control, it may take some time to get reflected in the company's share price. Estimate Trend MASI has been witnessing a positive estimate revision trend for 2024. In the past 60 days, the Zacks Consensus Estimate for its earnings per share has moved north 0.8% to $3.63. The Zacks Consensus Estimate for the company's second-quarter revenues is pegged at $495.1 million, implying an 8.7% improvement from the year-ago quarter's reported number. Inari Medical, Inc. Price Inari Medical, Inc. price | Inari Medical, Inc. Quote Other Key Picks Some other top-ranked stocks in the broader medical space that have announced quarterly results are Haemonetics, Intuitive Surgical and Boston Scientific Corporation. Haemonetics, currently carrying a Zacks Rank #2, reported fourth-quarter fiscal 2024 adjusted EPS of 90 cents, which beat the Zacks Consensus Estimate by 2.3%. Haemonetics' shares have risen 7.1% year to date compared with the industry's 3.2% growth. It has a long-term growth rate of 12%. HAE's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.24%. Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2024 adjusted EPS of $1.50, which beat the Zacks Consensus Estimate by 7.1%. The stock has risen 29.8% year to date compared with the industry's 6.1% growth. ISRG has a long-term growth rate of 16.1%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.78%. Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. The company currently carries a Zacks Rank #2. Boston Scientific's shares have risen 35.2% year to date compared with the industry's 3.2% growth. BSX has a long-term growth rate of 12.5%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.49%. To read this article on Zacks.com click here.
Intuitive Surgical Gains 26% Year to Date: Here's Why - Globus Medical (NYSE:GMED), Boston Scientific (NYSE:BSX) 2024-07-18 20:30:00+00:00 - Loading... Loading... Intuitive Surgical ISRG is witnessing strong momentum, with its shares having rallied 26.4% year to date compared with 6.1% growth of the industry. The S&P 500 composite has risen 17.6% during the said time frame. With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment. Intuitive Surgical Inc., a Sunnyvale, CA-based company, designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system, and related instruments and accessories. The company's key product portfolio, da Vinci surgical system, is an advanced robot-assisted surgical system. It comprises a surgeon's console, patient-side cart, 3-D vision system, da Vinci Skills Simulator and Firefly Fluorescence Imaging. Image Source: Zacks Investment Research The robot-based da Vinci surgical system enables minimally invasive surgeries that reduce the trauma associated with open surgery. ISRG also manufactures EndoWrist instruments, such as forceps, scissors, electrocautery tools, scalpels, and other surgical tools, including wrist joints for natural dexterity for various surgical procedures. The company operates through three segments — Instruments and Accessories, Systems and Services. Catalysts Driving Growth Investors are upbeat about Intuitive Surgical's robot-based da Vinci surgical system that has been a key driver for the company's performance since its launch in 1999. The demand for medical procedures started to improve in 2023 after being disrupted by the COVID-19 pandemic in 2020, leading to robust growth. The procedure growth expectation for fiscal 2024 is slightly below the pre-pandemic growth rate of 18% for full-year 2019. Per ISRG's first-quarter 2024 earnings call in April, the installed base of da Vinci systems grew approximately 14% year over year to 8,887 units. The utilization of clinical systems in the field increased 2% from the prior-year quarter's level. The metric was up 10% year over year for da Vinci SP. In the first quarter, procedures improved 14% in the U.S. market and 20% in the ex-U.S. market compared with the year-earlier quarter's figure. Meanwhile, ISRG expects its gross margin in 2024 to be 67-68%, on par or lower than 68% in 2023. However, the rise in the cost of sales is likely to be driven by activities to support the launch of the company's new products and capital investments to aid its business growth. Investors are also optimistic about the recent FDA approvals received by Intuitive Surgical. Last month, the FDA cleared a labeling revision for da Vinci X and Xi specific to radical prostatectomy. In March, Intuitive Surgical received the FDA's 510(k) clearance for da Vinci 5, the company's next-generation multiport robotic system. Although ISRG has strong fundamental factors that should drive its growth going forward, it faces several challenges that hurt business performance. A constrained supply chain amid continuing geopolitical tensions may lead to choppy da Vinci 5 system placements in 2024. A challenging catheter supply may adversely impact Ion modulation system sales. Moreover, weakness in bariatric procedures, along with challenges in China from increasing provincial robotic competition and delayed tenders affecting capital placements, is likely to have a nearly three percentage point headwind for revenues in 2024. Intuitive Surgical, Inc. Price Intuitive Surgical, Inc. price | Intuitive Surgical, Inc. Quote Zacks Rank & Key Picks Some better-ranked stocks in the broader medical space that have announced quarterly results are Globus Medical GMED, Haemonetics HAE and Boston Scientific Corporation BSX. Globus Medical, sporting a Zacks Rank #1 (Strong Buy) at present, reported first-quarter 2024 adjusted EPS of 72 cents, which beat the Zacks Consensus Estimate by 30.9%. Globus Medical's shares have risen 36.6% year to date compared with the industry's 6.1% growth. GMED has a long-term growth rate of 12.7%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.79%. Haemonetics, currently carrying a Zacks Rank #2 (Buy), reported fourth-quarter fiscal 2024 adjusted earnings per share of 90 cents, which beat the Zacks Consensus Estimate by 2.3%. Haemonetics' shares have risen 5.7% year to date compared with the industry's 3.2% growth. It has a long-term growth rate of 12%. HAE's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.24%. Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. The company currently carries a Zacks Rank #2. Boston Scientific's shares have risen 33.9% year to date compared with the industry's 3.2% growth. BSX has a long-term growth rate of 12.5%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.49%. To read this article on Zacks.com click here.
Netflix’s subscriber and earnings growth gather more momentum as password-sharing crackdown pays off 2024-07-18 20:27:53+00:00 - Netflix’s subscriber and earnings growth accelerated in its latest quarter as the video streaming service benefits from a crackdown on freeloading viewers, an expansion into advertising and an acclaimed programming lineup. The results announced Thursday painted a portrait of a company still gathering momentum after a jarring decrease in subscribers during the first half of 2022 prompted a change in direction. Netflix added 8 million subscribers during the April-June period, marking a 37% increase over the same time last year. It was the sixth-consecutive quarter of that Netflix’s subscriber gains have increased from the previous year, a trend triggered by the 2022 downturn that served as a wake-up call for the Los Gatos, California, company. And Netflix is still financially thriving. The company’s profit in its latest quarter rose 44% from last year to $2.15 billion, or $4.88 per share — a figure that exceeded the estimates of analysts polled by FactSet Research. Revenue climbed 17% from last year to $9.56 billion, also eclipsing analysts’ projections. But management predicted its revenue for the July-September period would rise at a slightly slower pace of 14% from the same time last year, lagging the 18% growth that analysts had been anticipating. The forecast contributed to a muted reaction from investors who have driven up Netflix’s stock price by 32% so far this year. After initially falling by 3% in extended trading after the second-quarter report came out, Netflix shares recovered and were up about 1%. Given that the competition in video streaming seems to be ramping up again, Investing.com analyst Thomas Monteiro called “the lowering of guidance an intelligent strategy for keeping excitement put amid sky-high expectations.” As part of a shakeup that began in mid-2022, Netflix has been blocking the previously widespread practice of sharing subscriber passwords with friends and family living in other households. It also introduced commercials for the first time as part of a low-priced version of its service. Since those moves began rolling out two years ago, Netflix has picked up nearly 55 million more paying customers, pushing its worldwide subscriber count nearly 278 million through June. But Netflix is bracing for the gains from the password-sharing crackdown to taper off, prodding the company to sharpen its focus on selling more ads for its low-priced option, which the company said ended June with a 34% increase in total subscribers from March. It didn’t detail precisely how many of its worldwide subscribers have chosen to watch ads for the cheaper price. Despite the widening audience for commercials, Netflix said it doesn’t expect advertising to be a major source of revenue growth until 2026 at the earliest. “Ads are going to be a bigger piece of the puzzle, but it won’t be in 2024 or 2025,” Spencer Neumann, Netflix’s chief financial officer, told analysts during a conference call Thursday. As part of its effort to train investors to pay more attention to its financial growth and foray into advertising, Netflix in April disclosed it will stop providing quarterly subscriber updates beginning next year. The profit push also has made Netflix more judicious in its spending, resulting in fewer movies and TV series than the service has been making during most of the past decade. But the programming coming out of its pipeline is pleasing viewers and winning high praise — as demonstrated by the industry-leading 107 Emmy nominations Netflix received Wednesday. “Our goal and our mission is we have to spend the next billion dollars of programming better than anyone else in the world,” Netflix co-CEO Ted Sarandos said during the conference call. Netflix’s strategic shift also has resulted in more marquee events streamed live, such as a recent roast of retired football star Tom Brady, a hot-dog eating showdown featuring renowned glutton Joey Chestnut and two National Football League games on Christmas Day. Live shows that pull in huge audiences make it easier for Netflix to sell advertising and, ironically, “take us back to television’s roots,” Forrester Research analyst Mike Proulx said.