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Trump Accuser Stormy Daniels Says Ex-President's Supporters Have Flooded Her With Threats Since His Conviction: 'I've Lost ... Mostly My Peace' 2024-07-06 17:30:00+00:00 - Loading... Loading... Supporters of Stormy Daniels have reportedly raised over $900,000 to assist her in relocating to a safe location and covering legal expenses following her testimony in the criminal trial that resulted in Donald Trump’s conviction on 34 charges. Funds from an online GoFundMe campaign initiated by a friend and former manager of Stormy Daniels have poured in, reported The Guardian. Daniels, an adult film actor, recently appeared on MSNBC where she described enduring relentless social media harassment from Trump supporters amid his bid for a second presidency. She recounted receiving threats aimed at raping and murdering her daughter and other family members. “It’s become unsafe for her family and her pets,” the fundraiser’s organizer, Dwayne Crawford, wrote on the page for the campaign, which set a goal of $1 million. “Stormy needs help to relocate her family to somewhere they can feel safe and live on their terms. She needs assistance to be able to continue to pay the mounting fees so that Trump doesn’t just win because his pocketbook seems endless,” Crawford wrote. Also Read: Biden Accuses Trump Of Having Sex With A Porn Star When Melania Was Pregnant During The Debate: ‘You Have The Morals Of An Alley Cat’ The “I Stand with Stormy Daniels” campaign, which had garnered over $940,000 from approximately 17,600 donors as of last Friday, originates from her involvement in Trump’s late May conviction for falsifying business records. Daniels, whose real name is Stephanie Clifford, received $130,000 to maintain confidentiality about an alleged extramarital sexual encounter with Trump a decade before his 2016 presidential win. Prosecutors stated that the payment to Daniels was inaccurately classified as legal fees. Daniels’ testimony contributed to the successful prosecution of Trump in a New York court. On Tuesday, Daniels revealed to MSNBC’s Rachel Maddow that she had been flooded with Facebook messages filled with threats “to rape everybody in my family, including my young daughter, before they killed them.” “I’ve lost … mostly my peace, mostly my daughter’s privacy, and time – time I’ll never get back with her,” Daniels said, referring to her involvement in the prosecution against Trump. She also explained that she faces $500,000 in attorneys’ fees, which she can’t afford to pay, stemming from a civil defamation lawsuit she filed against Trump in 2018. Among those who expressed support for Daniels after her interview with Maddow was writer E. Jean Carroll, who sued Trump over allegations of rape and defamation, winning nearly $90 million in civil penalties from him. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next:
Trump Seeks Further Delay In Classified Documents Case, Citing Supreme Court's Immunity Ruling 2024-07-06 17:21:00+00:00 - Loading... Loading... Yesterday, Donald Trump sought to leverage the U.S. Supreme Court’s decision granting extensive immunity to the former president. He urged the federal judge overseeing his criminal case for retaining classified documents to carefully scrutinize charges involving “official” acts that may be exempt from prosecution, reported The Guardian. This week, the Supreme Court ruled that former presidents have limited immunity from criminal prosecution for certain actions taken while in office. This also means evidence related to immune acts cannot be used in trials, even if they are not part of the charges. Also Read: Trump’s Unfounded Claims About Kamala Harris Stir Controversy: ‘She’s So Bad, She’s So Pathetic’ According to the ruling, the framework of criminal accountability for former presidents includes three categories: core presidential functions with absolute immunity, official acts of the presidency with presumptive immunity and unofficial acts with no immunity. Trump’s lawyers did not specify which parts of the indictment they viewed as immune official conduct. If Judge Aileen Cannon agrees to review the charges in the classified documents case, it could significantly prolong the case, according to The Guardian. The filing underscores the broad impact of the immunity ruling, which is affecting Trump’s documents case in Florida, even though the ruling stemmed from an appeal in the former president’s 2020 election subversion case in Washington, D.C. It also highlights Trump’s strategy to undermine the substance of the classified documents case. In a 10-page filing, Trump’s lawyers requested Cannon’s permission to submit new briefs, asserting that the immunity ruling undermines the prosecution’s argument and highlights its politically motivated stance, labeling the motion as “frivolous.” Additionally, Trump’s filing seeks to halt all other proceedings until Cannon determines the authority of special counsel Jack Smith and his team to initiate the case. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next: Photo: Shutterstock
U.S. Jobs Surge In June, Can Cannabis Keep Up? Salaries Might Tempt You To Switch Careers 2024-07-06 16:21:00+00:00 - Loading... Loading... The U.S. economy showcased robust job growth in June with 266,000 new jobs added, exceeding forecasts. Despite this positive indicator, the unemployment rate edged up slightly to 3.7%. Wage growth was relatively tame at 0.2% month-over-month and 4.3% year-over-year, suggesting a potential slowdown in the previously overheated job market. In contrast to the broader economic trends, the cannabis industry experienced a year-over-year revenue increase of 10.3%, reaching $28.8 billion in 2023. This represents a rebound from a decline seen in 2022, hinting at stabilization within the sector. However, the performance across states varied significantly due to differing market maturities and regulatory environments. Read Also: Cannabis Job Market Will Rebound In 2024: Nearly 90% Of Weed Businesses Plan On Hiring New Workforce. Regional Market Variations Data from the Vangst Jobs Report 2024 indicates vibrant growth in newer markets such as Michigan, Missouri and Illinois, where cannabis-related employment surged by 5.4% year-over-year, adding 22,952 new jobs. Mature markets like California and Colorado faced challenges such as price compression and intense competition, leading to a downturn in sales and job losses. For instance, California saw a reduction of nearly 5,000 jobs despite being a longstanding hub for cannabis activity. Salaries and Employment Trends The Vangst 2024 Salary Guide highlights an optimistic outlook for cannabis salaries, spurred by anticipated federal regulatory changes. Top-tier cannabis salaries increased by 4.7% over the past year, outpacing the average increase across non-cannabis industries. Directors of Cultivation now earn between $90k and $140k, while retail positions such as Budtenders earn between $14 and $22 per hour, reflecting the sector's growing professionalization and competitive compensation structures. These issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link. Read Next: Cannabis Jobs In 2024: Career Opportunities, Key Players And Industry Trends For Job Seekers. Photo: AI-Generated Image.
A green flag for clean power: NASCAR unveils its first electric racecar 2024-07-06 15:45:38+00:00 - CHICAGO (AP) — Part of the experience of a NASCAR race is hearing the engine roar, the rumble of each car’s approach and the zip when it whizzes past at more than 150 mph. NASCAR unveiled its first electric racecar Saturday in downtown Chicago, but it doesn’t thunder when the grand marshal says “drivers, start your engines.” It hums. The top motorsports series in North America partnered with Chevrolet, Ford, Toyota and electrification company ABB to demonstrate a high-performance electric vehicle and gauge fan interest in electric racing. They want to represent electric vehicles, and more broadly electrification, in racing as cool, fun and accessible, said Riley Nelson, NASCAR’s head of sustainability. The Associated Press got a first look at the $1.5 million prototype. The only person who has driven it so far is semi-retired NASCAR driver David Ragan. The plan is to put the car on the Chicago street course for some fast laps on Sunday morning. Ragan said the sound and smell were unlike anything he has experienced since first hitting the racetrack at age 11. He could hear squealing tires. He could smell the brakes. In gasoline-powered cars, the engine’s sound and smell and heat from the exhaust overpower everything else. But after hundreds of laps, this time Ragan’s ears weren’t ringing. It was really wild, he said. Unlike typical sports coupes, the new car is actually a crossover utility vehicle. A huge wing on the back makes it aerodynamic enough to be a racecar. It accelerates almost twice as fast as top gas-powered racecars and can stop almost immediately. But its lap time at Martinsville Speedway in Virginia was two-tenths of a second slower because it takes the corners slower due to being heavier. Ragan said it may go even faster; he wasn’t pushing the one-of-a-kind vehicle to its limits. Risk-taking is for racing, not testing, he said. Eric Warren, who heads global motorsports competition for General Motors, said market research showed more than half of avid NASCAR fans surveyed would be more interested in purchasing an electric vehicle if they were exposed to it through racing. A main message is taking care with energy and optimizing it, he said. “We’re committed to electric vehicles,” Warren said. “Racing gives a great platform to discuss a lot of those concepts and educate fans. It’s a laboratory for us to try some new technologies and learn as we educate.” Burning gas pollutes the air and produces carbon dioxide, which warms the atmosphere and leads to more extreme weather. Burning one gallon produces about 19 pounds of carbon dioxide, according to the U.S. Energy Information Administration. Racing events consume thousands of gallons in a weekend. The event would certainly be quieter with more electric cars, though many fans love the roar of engines when the green flag drops. A group of kids, including the children of ABB employees, pulled the cover off the car as part of the unveiling before Saturday’s NASCAR Xfinity Series stop. Dean Radejewski, 16, of Chicago, stopped to check out the car as he made his way through the area near Buckingham Fountain. “I think it’s pretty cool that they’re stepping into the newer age, where all the stuff’s going electric,” Radejewski said. “I feel like it’s going to be maybe a bit more reliable, maybe a bit safer, too, since less fuel to light on fire.” Radejewski also was intrigued by the possibility of a NASCAR EV series. “It would be more racing to watch,” he said. “So even better.” If NASCAR pursues electric racing, John Probst, NASCAR senior vice president and chief racing development officer said he thinks they could reinvent the fan experience. One option could be a DJ. “It’s our goal to entertain our fans,” he said. “If our fans tell us this is what they want to see, we know how to create a racing series around pretty much anything.” NASCAR is not the first motorsports organization to get into electric car racing. Formula E is an all-electric racing series that started a decade ago. But its fan base is far smaller than NASCAR’s. The new car is part of a broader sustainability plan by NASCAR. ABB is now NASCAR’s official electrification partner. It will help NASCAR bring in more electricity from renewable sources. NASCAR also owns 15 tracks around the U.S., many along major thoroughfares. ABB plans to install its electric-vehicle charging stations at those tracks and connect them to the grid. They will be compatible with regular electric cars and available for anyone to use, not just racegoers. By 2028, NASCAR says it will introduce sustainable racing fuel, recycle at all events and use 100% renewable electricity at facilities and tracks it owns. By 2035, it aims to cut operating emissions to “net zero.” That’s why the number 35 appears on the black, white and red car, along with ABB. The auto body is made from plant-based materials, a flax-based composite by the Swiss company Bcomp, rather than the typical carbon fiber composite. NASCAR is also exploring racing with cars that run on hydrogen. IMSA, the sports car series owned by NASCAR, switched to hybrid engines in 2023. A competing race series, IndyCar, will debut its hybrid engines this weekend in Ohio. Formula 1 plans to use sustainable fuel in all cars starting in 2026 as part of new engine regulations. Ford Performance, on its own, built eight cutting-edge electric demonstration vehicles in four years. “Fans want to have some connection or relationship to the racecar,” said Mark Rushbrook, global director of Ford Performance Motorsports. “As more and more customers are buying all-electric vehicles, there will be, we believe, a growing number of people that want to watch full electric racing.” U.S. electric vehicle sales overall rose 7% during the first half of the year, according to preliminary tallies Tuesday by Motorintelligence.com. EVs accounted for 7.6% of the U.S. new vehicle market, about the same as it was for all of last year. ABB Executive Vice President Michael Plaster hopes kids who see the new car at NASCAR events will ask questions about moving toward a future that runs on clean electricity, and may one day want to work on electrical products and solutions. ABB is investing billions to grow its U.S. business. “As far as getting interest and attention, and having the forum to talk about this whole energy transition, I can’t think of a better way to do it,” Plaster said. ___ McDermott reported from Providence, R.I. AP Auto Racing Writer Jenna Fryer contributed to this report. ___ The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
MarketBeat Week in Review – 7/1 - 7/5 2024-07-06 11:00:00+00:00 - The June jobs report came in slightly higher than expected, but the number wasn't significant enough to move markets in the holiday-shortened week. For now, investors continue to climb the wall of worry, particularly regarding the leading technology stocks. Next week may put that bullish sentiment to the test. The latest readings on inflation will come out when the Consumer Price Index and Producer Price Index are released on Thursday and Friday, respectively. Plus, earnings season kicks off. The big banks report on Friday, but before that, investors will hear from companies like PepsiCo Inc. NASDAQ: PEP and Delta Air Lines Inc. NYSE: DAL, which may provide a glimpse into how the consumer is holding up. We hope you had a relaxing time with friends and family this week. As you get back into a routine next week, you can count on the MarketBeat team to keep you updated on the stocks and stories moving the market. Here are some of our most popular articles from this week. Get PepsiCo alerts: Sign Up Articles by Jea Yu Stocks related to weight loss drugs have been a way for investors to fatten their portfolios this year. The list used to be limited to Novo Nordisk A/S NYSE: NVO and Eli Lilly NYSE: LLY. However, this week, Jea Yu analyzed two companies that may be ready to challenge these sector leaders. Pfizer Inc. NYSE: PFE has two GLP-1 candidates and one non-GLP-1 candidate in its pipeline. Altimmune Inc. NASDAQ: ALT is developing a product with a dual agonist that may be more effective than Wegovy or Ozempic and may be commercially approved before Pfizer. Yu also wrote about the rebound in Snowflake Inc. NYSE: SNOW stock. The stock has been under pressure since it missed earnings, citing higher AI spending. However, analysts from The Goldman Sachs Group NYSE: GS are expressing their belief that the investment in AI will pay off and the sell-off in SNOW stock is overdone. Articles by Thomas Hughes Stock downgrades are usually a sell signal, but not always. This week, Thomas Hughes analyzed two stocks that were downgraded by analysts. However, Hughes explains why one of these two stocks offers opportunistic investors a buying opportunity. Hughes also analyzed two stocks that are beginning to turn around their recently poor fortunes. In the case of GitLab Inc. NASDAQ: GTLB, the stock is already beginning to rebound after a sharp sell-off in May. As is frequently the case, the company is proving that fundamentals outweigh concerns about security concerns that the company has already patched. Onsemi NASDAQ: ON appears to be forming a bottom as analysts believe the chip sector's macro story is improving. The company may come in light on revenue in 2024, but analysts believe revenue weakness is already priced into the stock. Articles by Sam Quirke One of the top-performing stocks in the last couple of weeks has been Rivian Automotive Inc. NASDAQ: RIVN. The electric vehicle (EV) sector has been under pressure, with several startups announcing that it may be hard for them to continue operations. Sam Quirke writes it's too early to tell how the infusion of capital from Volkswagen AG OTCMKTS: VWAGY will impact the company's operations. However, for now, analysts are bullish about Rivian's future. Articles by Chris Markoch Would you take NVIDIA Corp. NASDAQ: NVDA or the field in the second half of 2024? The answer for many investors seems to be to rotate slightly away from NVIDIA and into some of the other Magnificent 7 stocks. This week, Chris Markoch explained why analysts were starting to move money into four of these technology stocks. Markoch also examined the recent small drop in AbbVie Inc. NYSE: ABBV. It may not be anything more than some profit-taking for a higher leg-up, but Markoch explains the current state of play for AbbVie and why more growth could be in its future. Retail stocks continue to be under pressure as overall sales are negative when adjusted for inflation. But if you want to invest in the sector, Markoch gives you three retail stocks that are beating earnings expectations. Articles by Ryan Hasson Investors continue to pile money into AI stocks, but as Ryan Hasson explains, cybersecurity is another sector worth your investment capital. As threats from AI expand, the need for cybersecurity will become even greater. This week, Hasson analyzes three cybersecurity stocks and why they're presenting opportunistic setups for the second half of the year. Buying stocks when they're down and out is one of the hardest things for some investors. However, Hasson makes a case for three struggling stocks with positive analyst sentiment, which could make them attractive at their current prices. And there's been a lot of talk about short interest lately, particularly for investors trying to find stocks on the verge of a short squeeze. Shorting stocks isn't for every investor, but even if it doesn't fit your investing style, Hasson's article on the significance of short interest will help you understand how much weight to place on this commonly used metric. Articles by Gabriel Osorio-Mazilli It's only natural for many investors to start looking for the next NVIDIA. If you're one of them, Gabriel Osorio-Mazilli explains why you don't have to leave the chip sector to find a contender. Analysts are forecasting that Super Micro Computer Inc. NASDAQ: SMCI is likely to outperform NVIDIA significantly in the coming quarters. If you follow the financial news, you've likely heard about the VIX index. This is also known as the "fear index," and recently, it's been at levels that indicate low volatility. That can make it difficult to profit from blue-chip stocks. Instead, Osorio-Mazilli explains why you'll want to look for high-beta stocks and gives you three names to consider. And while many eyes have been on the price of gold, Osorio-Mazilli suggests you may want to pay more attention to silver prices, particularly the price of three mining stocks that stand to benefit as the price of silver hits a 12-year high. Articles by Leo Miller Leo Miller was also looking at cybersecurity stocks. One of the leading names is Palo Alto Networks Inc. NASDAQ: PANW. However, Miller explains why red-hot CrowdStrike Holdings Inc. NASDAQ: CRWD is not done growing, and that's why it may continue to be a better choice than PANW stock. Consumer staples stocks have been struggling to gain traction. This week, Miller looked at two such stocks creating a similar dilemma for investors. McCormick & Company Inc. NYSE: MKC beat earnings per share (EPS) expectations even while sales came in light. Analysts are encouraged that higher margins for the spice king may contribute to better performance if grocery prices fall. The same story is playing out with General Mills Inc. NYSE: GIS. The company is beating on earnings, but sales are down. However, Miller explains why the company's earnings forecast may not be enough to generate stock price growth. The company does, however, have a dividend that could be attractive. Before you consider PepsiCo, 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 PepsiCo wasn't on the list. While PepsiCo currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
France’s president called a surprise election. The result could diminish his power in world affairs 2024-07-06 08:03:23+00:00 - PARIS (AP) — French President Emmanuel Macron could awake — if he has slept at all — with clipped wings on Monday morning. The high-stakes second round of the legislative election on Sunday will almost certainly impact the French leader’s sway in the areas of defense and foreign affairs. It could diminish his role as an energetic and influential figure in European and world affairs and as one of Ukraine’s primary backers in the war against Russia, say retired French military officers and analysts of France’s defense and foreign policies. After the centrist president’s bloc finished a distant third, behind the surging far right, in last weekend’s first round of voting for a new parliament, one of the only certainties before Sunday’s decisive round two is that Macron himself can’t emerge strengthened. With many of its candidates already out of the race, Macron’s camp can’t secure the absolute majority that gave him ample maneuvering room in his first term as president from 2017. It also is likely to fall well short of the 245 seats it won after his reelection in 2022. That made it the largest single group — albeit without a clear majority — in the outgoing National Assembly that Macron dissolved on June 9, triggering the surprise election after the far right handed his alliance a painful beating in French voting for the European Parliament. That leaves two outcomes most likely to emerge on Sunday night to Monday as official results come in. In one scenario, France could end up with a fragmented parliament and a prime minister too weak to seriously undermine Macron’s constitutionally guaranteed role as head of the armed forces and, more broadly, unable or unwilling to majorly challenge his defense and foreign-policy powers. Still, even in this best-case scenario for Macron, France risks becoming inward-looking, more focused on its polarized and unstable domestic politics than its place and military activities in the world. In a second scenario, a worst case for Macron, the far right could secure an historic victory on Sunday that saddles the president with Jordan Bardella as prime minister, in an awkward and possibly conflictual power-sharing arrangement. The 28-year-old Bardella is a protege of Marine Le Pen, who leads the far-right National Rally party, with Bardella as its president. Both Le Pen and Bardella have made clear that, in power, they would seek to rein in Macron and exert themselves in defense, European and foreign affairs decision-making. The French Constitution only gives limited answers to how the various scenarios might play out. In large part, it could depend on the personalities of those involved and their ability to compromise, French analysts say. Bardella’s ‘red lines’ Although the constitution says the president is commander in chief, it also says the prime minister “is responsible for national defense.” During the campaign, Bardella laid out what he said would be “my red lines” with regards to Ukraine, if he ends up sharing power with Macron: No more French deliveries of long-range weaponry that Ukraine could use to strike targets in Russia and no sending of troops, a scenario that Macron floated this year. Bardella said he doesn’t want nuclear-armed France to be drawn into direct confrontation with nuclear-armed Russia. His party has historically been close to Russia and Le Pen cultivated ties to Russian President Vladimir Putin for many years and supported Russia’s illegal annexation of the Crimean Peninsula from Ukraine in 2014. Who would have the final word in potential arguments over long-range weapons for Kyiv is “actually quite a tricky one,” says François Heisbourg, a French analyst on defense and security questions at the International Institute for Strategic Studies. “The president can probably do it if he wanted to, but the prime minister could also state that he can prevent the president from doing so,” he says. “It can become a deadlock.” “If they don’t agree, they can actually prevent each other from doing anything.” Power-sharing isn’t new to France. But in previous cases, the president and prime minister weren’t as sharply opposed politically as Macron and Bardella. “Nobody until now has tried to test these respective powers to their ultimate conclusion. This is completely uncharted territory,” Heisbourg says. Le Pen and Macron trade shots On military affairs, Le Pen has already delivered a warning shot, calling Macron’s role as commander in chief “an honorary title for the president since it’s the prime minister who holds the purse strings.” Macron retorted: “What arrogance!” French retired Vice Adm. Michel Olhagaray, a former head of France’s center for higher military studies, is concerned that what he describes as the constitutional “blur” about shared military responsibilities could ripple through the ranks of the country’s armed forces. Conflictual power-sharing could be “something extremely painful for the armies, to know who the armies will obey. Very painful, very difficult,” he says. “In any case, the president of the republic can no longer take personal initiatives, like launching a (military) operation, etc., because that requires an understanding with the prime minister.” Because the French military operates across the globe, with forces deployed on the eastern flank of the NATO alliance, in Africa, the Middle East and elsewhere, changes to its posture by a power-sharing government are sure to be scrutinized by France’s international network of allies and partners. “They will all ask, ‘But what is happening? How will this evolve? What will become of France? Will France keep its commitments?’” Olhagaray says. But analysts say France’s nuclear forces shouldn’t be impacted. The president holds the nuclear codes, not least to ensure that the arsenal remains credible as a deterrent by making sure that potential enemies understand that any decision to strike isn’t taken by committee. France looks inward If no clear majority emerges for any single bloc from Sunday’s voting, lawmakers may have to do something that’s not a tradition in France: build a coalition government. Because the prime minister at its head will need broad consensus in parliament to keep the government from falling, that person is more likely to be a weakened junior partner in sharing power with Macron. “The president will have much more control,” says retired Gen. Dominique Trinquand, a former head of France’s military mission at the United Nations. In a coalition government, consensus-building on tough foreign policy questions — such as whether to greatly boost aid to Ukraine — could take time, and issues that divide might be put on the back burner. “The room to maneuver would be narrowed,” says Frédéric Charillon, a professor of political science at Paris Cité University. “In France, we are much more used to this kind of, you know, presidential system of monarchic foreign policy, when the president says, ‘I will do this, I will do that.’” But in the power-sharing arrangement with a new prime minister that now awaits Macron, “It cannot work like that.”
Pongamia trees grow where citrus once flourished, offering renewable energy and plant-based protein 2024-07-06 04:14:20+00:00 - An ancient tree from India is now thriving in groves where citrus trees once flourished in Florida, and could help provide the nation with renewable energy. As large parts of the Sunshine State’s once-famous citrus industry have all but dried up over the past two decades because of two fatal diseases, greening and citrus canker, some farmers are turning to the pongamia tree, a climate-resilient tree with the potential to produce plant-based proteins and a sustainable biofuel. For years, pongamia has been used for shade trees, producing legumes — little brown beans — that are so bitter wild hogs won’t even eat them. But unlike the orange and grapefruit trees that long occupied these rural Florida groves northwest of West Palm Beach, pongamia trees don’t need much attention. Pongamia trees also don’t need fertilizer or pesticides. They flourish in drought or rainy conditions. And they don’t require teams of workers to pick the beans. A machine simply shakes the tiny beans from the branches when they are ready to harvest. Terviva, a San Francisco-based company founded in 2010 by Naveen Sikka, then uses its patented process to remove the biopesticides that cause the bitter taste, making the beans suitable for food production. “Florida offers a rare opportunity for both Terviva and former citrus farmers. The historical decline of the citrus industry has left farmers without a crop that can grow profitably on hundreds of thousands of acres, and there needs to be a very scalable replacement, very soon,” Sikka told The Associated Press. “Pongamia is the perfect fit.” What is the pongamia tree? The pongamia is a wild tree native to India, Southeast Asia and Australia. The legume is now being used to produce several products, including Panova culinary oil and protein, which are featured ingredient in Aloha’s Kona protein bars. The company also makes protein flour. The legumes also produce oil that can be used as a biofuel, largely for aviation, which leaves a very low carbon footprint, said Ron Edwards, chairman of Terviva’s board of directors and a long-time Florida citrus grower. Turning a wild tree into a domestic one hasn’t been easy, Edwards said. “There are no books to read on it, either, because no one else has ever done it,” he said. Bees and other pollinators feast on the pongamia’s flowers, supporting local biodiversity, Edwards said. An acre of the trees can potentially provide the same amount of oil as four acres of soy beans, he added. What’s left after the oil is removed from the pongamia bean is “a very high-grade protein that can be used as a substitute in baking and smoothies and all kinds of other plant-based protein products,” Edwards said. “There’s a lot of potential for the food industry and the oil and petroleum industry.” Why Florida? “We know pongamia grows well in Florida, and the end markets for the oil and protein that come from the pongamia beans — biofuel, feed, and food ingredients — are enormous,” Sikka said. “So farmers can now reduce their costs and more closely align to the leading edge of sustainable farming practices.” At a nursery near Fort Pierce, workers skilled in pongamia grafting techniques affix a portion of the mother tree to a pongamia rootstock, which ensures the genetics and desired characteristics of the mother tree are perpetuated in all of Terviva’s trees. Pongamia vs. citrus Citrus had been Florida’s premier crop for years until disease caught up with it starting in the 1990s with citrus canker and later greening. Citrus canker, a bacterial disease, is not harmful to humans, but it causes lesions on the fruit, stems and leaves. Eventually, it makes the trees unproductive. Citrus greening, also known as Huanglongbing, slowly kills trees and degrades the fruit, according to the U.S. Department of Agriculture. Greening has spread throughout Florida since 2005, devastating countless groves and reducing citrus production by 75%. The disease has spread to Louisiana, Texas and California. Hurricane Ian caused about $1.8 billion in damages to Florida’s agriculture in September 2023, hitting the citrus industry at the beginning of its growing season. Disease and climate issues have also affected most of the world’s top citrus-producing countries. For example, this year’s harvest in Brazil — the world’s largest exporter of orange juice — is forecast to be the worst in 36 years because of flooding and drought, according to a forecast by Fundecitrus, a citrus growers’ organization in Sao Paulo state. But climate and disease have little effect on pongamia trees, the company’s officials said. “It’s just tough, a jungle-tested tree” Edwards said. “It stands up to a lot of abuse with very little caretaking.” Pongamia also grows well in Hawaii, where it now thrives on land previously used for sugarcane. What are citrus farmers saying? John Olson, who owns Circle O Ranch, west of Fort Pierce, has replaced his grapefruit groves with 215 acres (87.01 hectares) of pongamia trees. “We went through all the ups and downs of citrus and eventually because of greening, abandoned citrus production,” Olson said. “For the most part, the citrus industry has died in Florida.” While the grapefruit grove was modest, it was common for a grove that size to be profitable in the 1980s and 1990s, Olson said. Edwards said farmers used various sprays to kill the insect that was spreading the disease. Eventually, the cost of taking care of citrus trees became too risky. That’s when he decided to go a different route. “What attracted me to pongamia was the fact that one it can repurpose fallow land that was citrus and is now lying dormant,” he said. “From an ecological point of view, it’s very attractive because it can replace some of the oils and vegetable proteins that are now being generated by things like palm oil, which is environmentally a much more damaging crop.” What about biofuel? In December 2023, Terviva signed an agreement with Mitsubishi Corporation to provide biofuel feedstock that can be converted into biodiesel, renewable diesel and sustainable aviation fuel. “Our partnership with Mitsubishi is off to a great start,” Sikka said, noting that the company coordinates closely with Mitsubishi on tree plantings and product development and sales. “Terviva’s progress has accelerated thanks to Mitsubishi’s expertise and leadership around the globe on all facets of Terviva’s business.” What food products does pongamia produce? The research is ongoing, but Edwards said they have made really good graham crackers in addition to the table oil and other plant-based protein products, including flour and protein bars. Pongamia offers an alternative to soybean and yellow pea protein “if you don’t want your protein to come from meat,” he said.
Even the kitchen sink: Snakes and other strange items intercepted at TSA checkpoints 2024-07-06 00:51:00+00:00 - The Transportation Security Administration said it expects a record number of travelers at U.S. airports on Sunday as the agency braces for what is projected to be a crush at security checkpoints. More than 32 million people are forecast to pass through TSA screening between June 27 and July 8, according to the agency, a 5.4% increase from the same period last year. With that tidal wave of travelers, TSA officials also expect to see a higher volume of banned items on conveyor belts. "We've seen anything from chainsaws on carry-on baggage [and] we've seen larger power tools and saws," Michael Duretto, deputy federal security director for Los Angeles International Airport, told CBS News senior transportation correspondent Kris Van Cleave. "Recently, we saw a hobby rocket — but it was a large rocket — that came to our checked baggage." "You can say that people will try to pack the kitchen sink if they could," he added. And try they have, said Martin Garcia, a TSA officer in Los Angeles, who told Van Cleave that he has seen someone try to carry on a kitchen sink, while another passenger attempted to bring deer antlers on board. Other strange things TSA agents have intercepted so far this year include: Throwing knives, such as those used by ninjas Samurai sword Machetes Bag of snakes Tasers Replica hand grenade Electric sander Fireworks Bottles of water and firearms are the most frequently stopped items by TSA officials. TSA agents discovered a record 6,737 firearms at airport security checkpoints last year — most of them loaded. In the first quarter of 2024, the agency intercepted more than 1,500 firearms at airport checkpoints. TSA also routinely intercepts more conventional items. In one recent incident, for example, Rep. Victoria Spartz, an Indiana Republican, received a citation for an unloaded handgun found in her luggage at Dulles International Airport in Virginia. Although it is legal for airline passengers to travel with unloaded guns, the weapons must be locked in a hard-sided case and declared to the airline and placed in the passengers' checked baggage, according to the TSA. TSA doesn't confiscate firearms. When a gun is detected at a checkpoint, the agent must summon local law enforcement to take possession of the weapon. It is up to the law enforcement officer to arrest or cite the passenger in accordance with local law, but the TSA can impose a civil penalty of up to almost $15,000, according to the agency.
Passenger complaints about airline travel surged in 2023 2024-07-05 22:55:00+00:00 - A look into the rights for airlines consumers A look into the rights for airlines consumers 02:20 U.S. Transportation Department officials last year were up to their necks in complaints submitted by air travelers over everything from delays and cancellations to accommodations for disabled passengers. The agency reported on Friday that it received nearly 97,000 submissions in 2023, 91% of which were complaints. That's up from about 86,000 total submissions, including complaints, inquiries and opinions in 2022. The department said there was such a high volume of consumer grievances filed against airlines and ticket agents last year that it took until this month to sort through the filing and compile final figures. The figure marks the largest number of air travel complaints by consumers since 2020, when airlines were slow to give customers refunds after the coronavirus pandemic shut down air travel. That year, the department received roughly 103,000 complaints, according to PIRG. The increase in complaints came even as airlines canceled far fewer U.S. flights — 116,700, or 1.2% of the total, last year, compared with about 210,500, or 2.3%, in 2022, according to FlightAware data. However, delays remained stubbornly high last year, at around 21% of all flights. So far this year, cancellations remain relatively low — about 1.3% of all flights — but delays are still running around 21%. More than two-thirds, or 67,661, of submissions last year dealt with U.S. airlines, but a quarter, or 24,991, covered foreign airlines. Travel agents and tour operators were the reason for 3,162 complaints. Disability-related grievances rose by more than a quarter compared with 2022, with some incidents making headlines, including a paraplegic Delta Air Lines passenger in December 2023 who claimed he was forced to crawl to his Delta Air Lines seat after no one was available to help him board. Earlier that year in November, a video went viral of American Airlines crew members mishandling a passenger's wheelchair, sparking some people with disabilities to speak out about their negative travel experiences. Though they would like to travel by plane, many disabled Americans forego air travel out of fear of not being sufficiently accommodated by airlines, according to an April study from the Century Foundation. Complaints of discrimination, while small in number, also rose sharply. Most were about race or national origin.Airlines receive many more complaints from travelers who don't know how or don't bother to complain to the government, but carriers don't release those numbers. The Transportation Department said it is modernizing its complaint-taking system, which the agency says will help it do a better job overseeing the airline industry. However, the department now releases complaint numbers many months late. It did not issue figures for the second half of 2023 until Friday. — The Associated Press contributed to this report.
Arsenic, lead and other toxic metals detected in tampons, study finds 2024-07-05 21:52:00+00:00 - What can women do to stay in good health for the long run? What can women do to stay in good health for the long run? 04:13 More than a dozen metals — including lead and arsenic — showed up in a broad array of tampons sold across the U.S. and Europe, raising concerns about menstruation products used by millions, a recent study found. Tests found lead in all 30 tampons from 14 brands that were purchased from major online retailers and stores in the U.S., U.K. and Greece, according to the findings published this week in the journal Environmental International. "Our findings point towards the need for regulations requiring the testing of metals in tampons by manufacturers," the researchers wrote. The analysis looked for concentrations of arsenic, barium, calcium, cadmium, cobalt, chromium, copper, iron, manganese, mercury, nickel, lead, selenium, strontium, vanadium and zinc. All 16 metals were detected in one product. Further studies are necessary to determine whether the metals leach out of tampons, which would be particularly worrisome since the skin of the vagina is more permeable than other parts of the body, noted the researchers, led by Jenni Shearston, a postdoctoral scholar at the University of California Berkeley School of Public Health. Any substance entering the bloodstream from the vagina also would not be filtered by the liver, the researchers said. The findings did not cite the brands tested. Shearston did not immediately respond to a request to identify them or elaborate on the findings. The Food and Drug Administration, which regulates tampons in the U.S., did not immediately respond to a request for comment. Organic tampons had less lead and more arsenic than non-organic ones and those sold in the U.S. held higher concentrations of lead than those in the Europe, the study stated. Well-known tampon brands include Procter & Gamble's Tampax, Kimberly-Clark's Kotex and Playtex from Edgewell Personal Care. The three companies did not immediately respond to requests for comment. Tampons are made with cotton, rayon or both, and the study noted that that the metals could have came from the soil by the plants used to make the materials. The presence of metals could also be the result of chemicals used as antimicrobials or to control odor.
Greece allows a 6-day work week for some industries 2024-07-05 19:56:00+00:00 - As countries around the world experiment with shorter work weeks, Greece has taken a step in the opposite direction — introducing a six-day work week for some businesses that operate on a 24-hour basis. The six-day work week is allowed according to new legislation that went into effect on July 1, according to CBS News' partner network BBC News. It is optional for workers, who can work 48 hours instead of the typical 40 hours. Those who opt in can choose between working an additional two hours a day or an extra eight-hour shift, The Guardian reported. Workers will be paid 40% extra for the additional time. "It is important to note that this measure does not affect in any way the established five-day working week mandated by law. Instead, it serves to address urgent operational demands that cannot be met through the available supply of specialised workers," a spokesperson for Greece's Ministry of Labour and Social Security told the BBC. Greece's government sees it as a way to boost economic growth and protect workers against "under-declared or undeclared work and ensure fair compensation," the BBC reported. Before the Greek parliament endorsed the law, Greek Prime Minister Kyriakos Mitsotakis said "the nucleus of this legislation is worker-friendly, it is deeply growth-oriented. And it brings Greece in line with the rest of Europe," according to The Guardian. While workers in Greece may choose to increase their workload, working hours are capped at 48 hours, according to guidelines laid out by the European Union's Working Time Directive. And as the BBC reports, tourist and food industry businesses are excluded. The new law comes as other countries are forgoing a five-day work model in favor of shorter work weeks — a movement that gained traction in the wake of the COVID pandemic as workers across the world grew accustomed to more flexible working arrangements. Trials of a four-day workweek in Iceland were called an "overwhelming success" by researchers in 2021, and many workers there moved to shorter hours, the BBC reported. In France, the standard work week is 35 hours – per a law adopted in 2000 under the administration of Prime Minister Lionel Jospin – and there's been a push to whittle it down even further, to 32 hours. In the U.S., workers have also been clamoring for less time "in office." More companies across the country are experimenting with a truncated workweek as employees demand flexibility and studies show that working less can make people more productive while boosting a company's profits. In March, Sen. Bernie Sanders of Vermont introduced a bill to reduce the work week from 40 hours to 32 without affecting workers' overall compensation.
AI company lets dead celebrities read to you. Hear what it sounds like. 2024-07-05 19:22:00+00:00 - Hearing the voice of Sir Laurence Olivier catch you up on work memos may not offer the same thrill as watching the acclaimed English actor on stage or screen, but it could make your morning commute more interesting. That's the vision of artificial intelligence startup ElevenLabs, which this week announced that fans of Hollywood icons such as Judy Garland and James Dean can now listen to the voices of the deceased film stars narrate books, articles and other digital text. The company said it had reached agreements with the estates of Olivier, Garland, Dean and Burt Reynolds to add their voices to a library of AI-generated voices on ElevenLab's new Reader App. The product lets users listen to text on your phone, with the actors' voices available for individual streaming. ElevenLabs did not provide details about any financial compensation it is offering to the actors' estates. "We deeply respect their legacy and are honored to have their voices as part of our platform," Dustin Blank, head of partnerships at ElevenLabs said in a blog post. "Adding them to our growing list of narrators marks a major step forward in our mission of making content accessible in any language and voice." Liza Minnelli, Judy Garland's daughter and the representative of her estate, said in the post that her family is excited to "see our mother's voice available to the countless millions of people who love her." Using AI to recreate a version of someone's voice has drawn negative attention after being used in nefarious ways, including the creation earlier this year of a phony robocall from President Joe Biden urging people not to vote in New Hampshire's presidential primary. In another incident, actress Scarlett Johansson is May said she was "shocked, angered and in disbelief" after discovering that a voice option on OpenAI's ChatGPT app sounded like her. Johansson had declined OpenAI founder Sam Altman's offer to voice ChatGPT's text-to-speech product. Altman said the voice is not Johansson's. AI was a key issue in the SAG-AFTRA strike last year. A new actor contract includes limits on artificial intelligence. Producers for TV and film must get consent from actors to use a digital replica, and performers are also entitled to compensation for using AI to create their virtual likeness.
Constellation Brands Stock Q1 2025: Crushing Anheuser-Busch? 2024-07-05 14:56:00+00:00 - Constellation Brands Today STZ Constellation Brands $259.14 +8.77 (+3.50%) 52-Week Range $227.50 ▼ $274.87 Dividend Yield 1.56% P/E Ratio 27.63 Price Target $300.11 Add to Watchlist Constellation Brands NYSE: STZ is in the consumer staples sector and is the fourth-largest beverage company in the United States by market capitalization. The firm has underperformed the market and its sector over the past 12 months. It has provided a total return of 3%, while the consumer staples sector is up 6% over the same period. The firm released fiscal Q1 2025 earnings on the morning of June 3, 2024. It beat on earnings-per-share (EPS) and slightly missed on revenue. Shares traded down 3.3% on the day of the release. Let's get some context around Constellation’s business, explore its earnings, and compare it to its leading competitor. Get Boston Beer alerts: Sign Up Constellation Brands: Beer Business Leading the Way Constellation is an international producer and marketer of alcoholic beverages, including beer, wine, and spirits. It operates well-known Mexican beers like Corona Extra, Modelo, and Pacifico. It is the second-largest beer company in the U.S., and Modelo is its number-one beer brand in America in terms of sales. Pacifico and Corona Familiar are tied for the fastest-growing imported beer brands. The company operates two revenue-generating segments: Beer, Wine, and Spirits. Beer accounts for 82% of sales, wine 16%, and spirits 2%. The company is investing heavily in its beer segment, spending $900 million in fiscal year 2024. It used this money on brewery optimization, which increased production capacity by 14%, as well as constructing a new brewery in Veracruz, Mexico. It plans to spend an average of $750 million over each of the next four years on similar investments. It intends to increase production capacity by another 35% by the end of fiscal year 2028. The beer segment boasts higher gross margins of 52%, compared to 46% for wine and spirits. The firm's main production costs come from packaging materials. Glass bottles make up most of these costs. Glass bottle usage makes up 58% of products sold, and aluminum 39%. Yeast and wheat are other key inputs. The firm's competitors include Anheuser-Busch InBev NYSE: BUD, Heineken OTCMKTS: HEINY, and Boston Beer NYSE: SAM. Earnings Show Strength in Constellation's Beer Segment, Weakness in Wine and Spirits The firm reported adjusted EPS of $3.57, 12 cents above consensus estimates of $3.45. Revenue was essentially in line with estimates, at $2.66 billion, growing 6% from the previous year. Revenue from beer grew by 8%, while income from beer grew by 16% because of an expansion in operating margin of 260 basis points to 40.6%. Constellation Brands, Inc. (STZ) Price Chart for Sunday, July, 7, 2024 One key metric the firm highlights is the depletion rate, which was 6.4% in the beer division. This measures the growth in product sales from distributors to retailers. This helps measure how much product reaches the end customer, rather than just being shipped to a distributor and sitting in a warehouse. It is a more accurate measurement of demand growth. Demand for Modelo Especial and Pacifico drove growth, increasing by 11% and 21%, respectively. Wine and spirits sales dropped 7%, and the depletion rate was -12.7%. The operating margin in this division decreased by 370 basis points to 15.3%. These factors resulted in segment operating income declining by 25%. The company reaffirmed its full fiscal year guidance. It expects adjusted EPS to range between $13.50 and $13.80, which aligns with expectations. Constellation Brands vs. Anheuser-Busch InBev: Who's on Top? Constellation Brands MarketRank™ Stock Analysis Overall MarketRank™ 4.77 out of 5 Analyst Rating Moderate Buy Upside/Downside 15.8% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -1.79 News Sentiment 0.57 Insider Trading Selling Shares Projected Earnings Growth 10.31% See Full Details Constellation has some notable strengths compared to its rival, Anheuser-Busch InBev (InBev). One can see strengths and weaknesses in credit strength depending on the metric used. Constellation reported a much higher debt-to-equity ratio of 112% compared to 85% for InBev, a comparative weakness for Constellation. The EBIT (earnings before interest and taxes) to interest expense ratio measures how many dollars of earnings a firm has for each dollar of interest expense on its debt. Constellation is more capable of making its interest payments with this metric coming in at 8.0x versus 3.8x for InBev. Other notable advantages include Constellation's net income margin of 24%, which is three times higher than InBev’s 8%. Constellation’s net income margin sits in the 91st percentile of the consumer staples sector. Constellation also shows an advantage in capital expenditure (CAPEX) growth at 23%. InBev's declined 10%. But, InBev's overall CAPEX is still over 2.6x higher than Constellation's. This makes sense, given that InBev is still a much larger firm, with a market capitalization that is 3.4x higher than Constellation. Constellation has a forward price-to-earnings ratio of 17.9x compared to 17.4x for InBev. In line with this multiple, analyst price targets for both firms imply a 20% upside from current levels. Before you consider Boston Beer, 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 Boston Beer wasn't on the list. While Boston Beer currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Qualcomm Stock Continues to Rise in the Face of Negative News 2024-07-05 14:36:00+00:00 - Qualcomm NASDAQ: QCOM is one of the leading players in the semiconductor industry. The firm has outperformed the market and industry over the past 12 months, with a total return of 75%. Over the same period, the SPDR S&P Semiconductor ETF NYSEARCA: XSD is up just 15%. Let’s look at Qualcomm’s business segments, recent earnings, and news, and close with some metrics from analysts covering the firm. Get Samsung Electronics alerts: Sign Up Qualcomm: Chip Design and IP Licensing Segments QUALCOMM Today QCOM QUALCOMM $205.75 +1.94 (+0.95%) 52-Week Range $104.33 ▼ $230.63 Dividend Yield 1.65% P/E Ratio 27.65 Price Target $192.13 Add to Watchlist Qualcomm operates primarily in two reportable segments: Qualcomm CDMA Technologies (QTC) and Qualcomm Technology Licensing (QTL). QTC manufactures chips for use in mobile devices, vehicles, the Internet of Things, and other consumer and commercial technologies. The company’s core chip platform is Snapdragon. Snapdragon processors are commonly used in phones using the Android operating system. Qualcomm is a fabless chip designer, meaning it only creates the blueprints for its chips; it does not manufacture them itself. The firm's primary chip suppliers are Global Foundries NASDAQ: GFS, Samsung Electronics OTCMKTS: SSNLF, and Taiwan Semiconductor Manufacturing Company NYSE: TSM. QTL licenses parts of Qualcomm's intellectual property and patents that other firms use to make and sell wireless products. Qualcomm has approximately 164,000 active patents worldwide, and it continually invests in research and development (R&D) to earn more patents. In 2023, the company received 3,854 new patents. This came in second for the most number of patents in the United States, only behind Samsung. The QTC segment accounts for the vast majority of total revenue, coming in at 84% compared to 14% for QLT. 67% of QTC revenue comes from handheld devices. QLT is the much higher margin segment. The earnings before taxes (EBT) margin was 26% for QTC, compared to 68% for QLT. Qualcomm has another reportable segment, Qualcomm Strategic Investments. It makes private and public investments in early-stage companies. Lastly, QGOV is a nonreportable segment. It provides services and sells products to U.S. government agencies and their contractors. Qualcomm’s Solid Fiscal Q2 2024 Earnings and Negative News Reports Qualcomm reported solid earnings compared to analyst estimates for fiscal Q2 2024. Adjusted earnings-per-share (EPS) came in at $2.44, 12 cents above analyst expectations of $2.32. It also beat moderately on revenue at $9.39 billion, compared to the $9.35 billion estimate. Gross and net income margins grew substantially from the previous year, up 114 and 330 basis points, respectively. The firm also released higher-than-expected guidance for fiscal Q3 2024, at a midpoint adjusted EPS of $2.25, compared to expectations of $2.16. Automotive revenue in the QTC segment grew impressively. Sales rose 35% from the previous year. QUALCOMM Incorporated (QCOM) Price Chart for Sunday, July, 7, 2024 Qualcomm’s shares have continued to rise in the face of multiple negative news stories since its last earnings release. Shares are up 13% since May 2, 2024. First, the US government revoked the licenses of Qualcomm and Intel NASDAQ: INTC to sell their chips to Huawei Technologies, a Chinese mobile phone and laptop maker. This is a policy to protect the nation's defense and economy. It aims to limit China's access to high-end semiconductors and its use of artificial intelligence. This didn't hurt Qualcomm's shares much on the day of the news. Huawei isn't among the firm's top ten customers, and its business with the company is already shrinking. That's not all. Reports have revealed that some software doesn't work with the firm's latest Snapdragon chips. These chips are for new AI-powered Windows laptops. Software from Adobe and popular computer games like "League of Legends" and "Fortnite" were impacted. A particularly troubling aspect of this is that Windows PCs have traditionally used chips made by Intel. Hiccups in the rollout of their new technologies may cause PC makers to go back to suppliers they know better, like Intel. This could hinder the firm from achieving its goal of having its chips used in 50% of the PC market by 2029. Qualcomm's shares fell 5.7% on the day of the news. QUALCOMM MarketRank™ Stock Analysis Overall MarketRank™ 4.79 out of 5 Analyst Rating Moderate Buy Upside/Downside 6.6% Downside Short Interest Healthy Dividend Strength Strong Sustainability -0.89 News Sentiment 0.58 Insider Trading Selling Shares Projected Earnings Growth 13.12% See Full Details Rising Analyst Price Targets Despite Negative News Nine analysts have upgraded their price targets on Qualcomm since May 21st. The average of these price targets is $242, implying an upside of 26%. This doesn’t seem all that crazy, despite the negative news, considering that Qualcomm’s forward price-to-earnings ratio is at 19.6x. This is below average for the technology sector, ranking only in the 35th percentile. Before you consider Samsung Electronics, 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 Samsung Electronics wasn't on the list. While Samsung Electronics currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Top 3 Summer Stocks with Solid Growth Opportunities 2024-07-05 14:14:00+00:00 - The summer season often brings heightened economic activity, making it a favorable period for investors to focus on building a growth-oriented portfolio. Growth investing typically centers on companies with the potential for rapid earnings growth. Often characterized by innovation and expansion, these companies can offer significant returns for investors willing to take on some risk. As summer approaches, investors can utilize seasonal investing strategies to identify companies expected to perform well during this period of increased demand. Get Airbnb alerts: Sign Up Seasonal Investing Strategies for Summer Growth One such strategy is sector rotation, which involves strategically shifting investment focus toward sectors expected to perform well during specific seasons. The summer months typically witness increased demand in particular sectors, creating investor opportunities. These sectors include travel and leisure, energy, and consumer discretionary. The concept of seasonal demand also significantly influences stock prices. Companies that benefit from increased consumer activity during the summer months often see their stock prices rise as investors anticipate higher earnings. For example, this seasonal demand often affects retailers selling outdoor gear, beverage companies, and travel companies. Airbnb: Disrupting the Traditional Hospitality Industry Airbnb Today ABNB Airbnb $152.50 -0.23 (-0.15%) 52-Week Range $113.24 ▼ $170.10 P/E Ratio 20.41 Price Target $152.38 Add to Watchlist The travel and leisure sectors typically experience a surge in demand during summer. Families take vacations, individuals embark on leisure trips, and businesses hold conferences and retreats. This increased travel activity directly impacts companies operating in this space, making it a potential growth area for investors during the summer. One company that has experienced significant growth in the travel and leisure sector is Airbnb NASDAQ: ABNB. Airbnb offers a unique platform that connects travelers with hosts, offering rooms, apartments, and other accommodations in various locations worldwide. This platform, which operates as a peer-to-peer marketplace, has disrupted the traditional hotel industry by providing more affordable and diverse lodging options. Airbnb’s financial performance has been strong, particularly in its post-pandemic recovery. In the first quarter of 2024, Airbnb reported revenue of $2.14 billion, representing an 18% year-over-year increase. The company also reported a net income of $264 million, a significant improvement compared to the previous year. The company's strong financial performance is driven by increasing Nights and Experiences Booked, a modest increase in Average Daily Rate (ADR), and the timing of Easter, which occurred earlier in the year. Airbnb, Inc. (ABNB) Price Chart for Sunday, July, 7, 2024 Beyond Airbnb’s earnings report, the company is expanding its offerings and investing in new initiatives. The company recently launched Icons, a new category of extraordinary experiences hosted by notable individuals in various fields, including music, film, television, art, sports, and more. This move expands Airbnb's reach beyond traditional accommodations, targeting a broader audience and strengthening its brand. Airbnb also continues to invest in features that cater to group travel. With over 80% of bookings on Airbnb being for groups, the company is introducing tools to simplify group trip planning, including shared wishlists, a redesigned Messages tab, and trip invitations. Airbnb's active listings, excluding experiences, increased by 15% year-over-year in Q1 2024, highlighting the company's continued growth in supply. This supply growth, coupled with the company's innovation and strong demand, positions Airbnb as a compelling growth stock for investors looking to capitalize on the summer travel season. NextEra Energy: Leading the Clean Energy Transition NextEra Energy Today NEE NextEra Energy $72.09 +0.26 (+0.36%) 52-Week Range $47.15 ▼ $80.47 Dividend Yield 2.86% P/E Ratio 19.64 Price Target $77.57 Add to Watchlist Summer often brings increased demand in the energy sector. As temperatures rise, the need for air conditioning and other energy-intensive activities increases, boosting energy consumption. This rise in demand can benefit energy companies that can meet it efficiently and cost-effectively. NextEra Energy NYSE: NEE is a leading player in the clean energy sector. It is the world's largest wind and solar energy producer, playing a pivotal role in the global shift towards renewable energy sources. NextEra Energy has a track record of successful project development and stable earnings, making it an attractive investment for investors seeking growth and stability. The company has ambitious plans for further expansion, including investing in renewable energy projects across the United States. This growth strategy is underpinned by increasing demand for clean energy solutions as governments and businesses seek to reduce carbon emissions. In the first quarter of 2024, NextEra Energy reported an adjusted earnings per share (EPS) growth of approximately 8.3% year-over-year. This growth is attributed to FPL (Florida Power & Light Company), a subsidiary of NextEra Energy, and NextEra Energy Resources, NextEra Energy's competitive clean energy business. FPL placed 1,640 megawatts of new, cost-effective solar into service during the quarter, while NextEra Energy Resources added approximately 2,765 megawatts of new renewables and storage to its backlog, demonstrating the company's continued growth in this sector. NextEra Energy, Inc. (NEE) Price Chart for Sunday, July, 7, 2024 NextEra Energy's financial performance has been solid in recent quarters. Coupled with the company’s status as a dividend aristocrat with over 30 years of dividend growth, NextEra Energy becomes a compelling choice for investors seeking a balance between growth and income during the summer months. Tesla: Dominating the Electric Vehicle Market Tesla Today TSLA Tesla $251.52 +5.13 (+2.08%) 52-Week Range $138.80 ▼ $299.29 P/E Ratio 64.16 Price Target $192.71 Add to Watchlist The consumer discretionary sector encompasses companies selling non-essential goods and services that consumers may purchase based on their discretionary income and preferences. This sector typically sees increased spending during the summer months as consumers have more disposable income for leisure activities and vacations. Tesla NASDAQ: TSLA is a dominant player in the electric vehicle (EV) market. The company is known for its innovative technology, high-performance vehicles, and ambitious growth plans. Tesla has been a highly volatile stock, but its long-term potential remains high due to its leading position in the rapidly growing EV market. Tesla's growth is driven by increasing demand for its vehicles and its expansion of production capacity. The company is also venturing into energy storage and solar products, creating additional avenues for growth. Tesla's financial performance has been a mix of strong growth and challenges. Tesla’s earnings for the first quarter of 2020 revealed a GAAP net income of $1.1 billion, down significantly year-over-year. This decline was due to lower vehicle average selling prices (ASPs) and reduced vehicle deliveries, partially impacted by production challenges at its Fremont factory and Gigafactory Berlin. Despite these challenges, Tesla continues to invest heavily in its future growth, including AI infrastructure, production capacity, and new product development. Tesla, Inc. (TSLA) Price Chart for Sunday, July, 7, 2024 Summer often brings increased economic activity, creating a prime environment for growth investing. Investors can benefit from strategically rotating their portfolios toward sectors that thrive during the summer, such as travel and leisure, energy, and consumer discretionary. By identifying companies with strong growth prospects within these sectors, investors can capitalize on the seasonal increase in demand. Before you consider Airbnb, 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 Airbnb wasn't on the list. While Airbnb currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Stock Giants Analysts Are Bullish On Despite Struggles 2024-07-05 13:47:00+00:00 - Despite their recent struggles, these three industry giants hold the promise of significant upside. With favorable consensus price targets and ratings, attractive P/E valuations, solid earnings growth projections, and some highly attractive dividend yields, they present a hopeful picture for income and value-oriented investors. Let's delve into these stocks that, despite their recent setbacks, might be the exciting investing opportunity you've been looking for. Get PayPal alerts: Sign Up Analyst Price Targets: Potential Upside for PayPal Stock PayPal Today PYPL PayPal $59.76 +0.12 (+0.20%) 52-Week Range $50.25 ▼ $76.54 P/E Ratio 15.05 Price Target $73.82 Add to Watchlist PayPal NASDAQ: PYPL is a leading digital payment platform that enables digital and mobile payments on behalf of consumers and merchants. Year-to-date, the stock has underperformed in the financial sector, with its stock down almost 3%, and over a year, it is down over 12%. However, from a valuation perspective, PayPal is now trading with a P/E ratio of 15 and a forward P/E ratio of 13.04, making it an attractive option for value investors. The stock also has projected earnings growth of 9.9% for the entire year. In its most recent report on April 30, the credit services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.22 by $0.14. The company had revenue of $7.70 billion for the quarter, compared to analyst estimates of $7.52 billion. Its revenue for the quarter was up 9.4% compared to the same quarter last year. Analysts see considerable upside for the stock, with a consensus price target of $73.82, forecasting an almost 24% upside. Most recently, the stock has received several positive analyst actions: on July 2, Susquehanna analysts upgraded the stock from neutral to positive, and on June 25, analysts at Evercore ISI boosted its target from $65 to $70. PayPal Holdings, Inc. (PYPL) Price Chart for Sunday, July, 7, 2024 Analyst Sentiment on Pfizer: Forecasting Future Performance Pfizer Today PFE Pfizer $28.05 +0.35 (+1.26%) 52-Week Range $25.20 ▼ $37.80 Dividend Yield 5.99% Price Target $35.54 Add to Watchlist Pfizer Inc. NYSE: PFE is a US-based multinational biotech company that is a research-based pharmaceutical company focused on discovering, producing, and marketing medicines and vaccines. Like many other vaccine names that benefited greatly during the pandemic, Pfizer still suffers from its post-pandemic gains hangover, with the stock down 3.6% YTD and a whopping 24% over the previous year. However, this slump provides a potentially excellent risk-reward opportunity for value investors, especially those interested in dividend income. The stock offers a 5.95% dividend yield and a forward P/E ratio of 10.12. From a technical perspective, Pfizer has bottomed out in May, and if the stock can reclaim its 50-day SMA around $30, a trend break is confirmed. Like PayPal, analysts forecast a significant upside for this high-dividend-yielding name, with a consensus price target of $25.54, forecasting over 28% upside. Pfizer Inc. (PFE) Price Chart for Sunday, July, 7, 2024 Analyst Ratings for Alibaba: Forecasting Significant Upside Alibaba Group Today BABA Alibaba Group $74.52 -1.05 (-1.39%) 52-Week Range $66.63 ▼ $102.50 Dividend Yield 1.32% P/E Ratio 17.37 Price Target $108.79 Add to Watchlist Alibaba NYSE: BABA is a Chinese multinational conglomerate specializing in e-commerce, retail, and technology. In recent years, Alibaba has been plagued by the economic and property crisis, along with regulatory risks in China. As a result, the stock has fallen almost 10% over the previous year and close to 2% YTD. However, with a multi-year consolidation and trading near support, a forward P/E ratio of 8.56, and a current P/E ratio of 17.3, it might present an opportune time to buy. The stock also has a dividend yield of 1.3% and positive projected earnings growth for the full year of 12.07%. Analysts are bullish on Alibaba, with a moderate buy rating and a price target forecasting a whopping 44% upside. Most recently, on June 6, analysts at Loop Capital boosted their price target from $111 to $115, predicting over 45% upside at the time of the report. Alibaba Group Holding Limited (BABA) Price Chart for Sunday, July, 7, 2024 Before you consider PayPal, 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 PayPal wasn't on the list. While PayPal currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Simulations Plus Stock Drops 15% Despite EPS Beat 2024-07-05 13:12:00+00:00 - Simulations Plus Today SLP Simulations Plus $38.89 -1.00 (-2.51%) 52-Week Range $32.69 ▼ $52.69 Dividend Yield 0.62% P/E Ratio 73.38 Price Target $60.50 Add to Watchlist Simulations Plus NASDAQ: SLP is a small-cap healthcare technology company with a value of about $800 million. The firm has vastly underperformed the market and its sector over the last 12 months, with a total return of -7%. The S&P 500 is up 26% in the same period, and XLV, which represents the healthcare sector, is up 11%. The firm released earnings after market close on July 2, 2024. Despite beating estimates on both earnings per share (EPS) and revenue, the share price fell nearly 15% on July 3. Let's take a look at some context around what Simulations Plus’s business does, dive deeper into the earnings report to understand the price drop, and close with some outlook on the firm. Get Certara alerts: Sign Up Simulations Plus: Drug Development Software and Services Simulations Plus develops modeling and simulation software used in drug discovery and development. This software is largely based on predicting the molecular properties of a potential drug, such as how a drug's molecular structure will interact with biological molecules. This helps determine how a drug can achieve the desired effect on the body and helps identify and stop undesired effects. The software uses AI and machine learning. The business operates as two reportable segments: software and services. The company offers 12 different software products for pharmaceutical research and development. Its flagship product and largest single source of revenue is GastroPlus. GastroPlus simulates drug absorption and interaction on compounds given to both humans and animals. It is one of the most widely used commercial software products of its kind. The software segment represented 61% of the firm's total revenue during the 2023 fiscal year. The services segment performs studies for a fee, helping solve drug development problems in which it has expertise. This segment makes up 39% of total revenue. Total revenue grew by 14%, with 12% growth from software and 18% from services from the previous year. Competitors to Simulations Plus include Certara NASDAQ: CERT and Schrödinger NASDAQ: SDGR. Financial Results: Lower Margins and Other Factors Send Shares Tumbling In its fiscal Q3 2024 earnings release, the firm’s EPS came in at $0.19, 3 cents above the expected figure of $0.16. So why did the firm lose nearly 15% of its value the next day? One culprit is an alarming contraction in margins. Gross margin fell 400 basis points from the previous quarter and is down 11% from the previous year. This was predominantly due to a massive drop in gross margin for the services segment, which is down to 41% from 63% in Q3 2023. The gross margin for software also declined slightly. This contraction was not limited to gross margin. In total, research & development, selling, general, and administrative expenses were up by $2.2 million. This contributed to the operating margin falling to 10% compared to 25% last year. Simulations Plus, Inc. (SLP) Price Chart for Sunday, July, 7, 2024 The next source of this drop in share price? A hefty reduction in EPS guidance despite an increase in revenue guidance. The firm currently expects midpoint adjusted diluted EPS of $0.55 on revenue of $70.5 million for fiscal 2024. Before, it expected EPS of $0.67 on $67.5 million in revenue. So, the firm is raising its revenue estimate while lowering its EPS estimate by 18%. This can mean only one thing: it expects margins to contract further. Dramatically contracting margins is one of the worst obstacles a business can face. Margins are important indicators of sustainable profitability. Lowering margins often indicates increased competition in an industry, causing prices across the board to come down. Another troubling sign for Simulations Plus is that the firm is suspending its dividend. Suspending dividends is a sign that a firm is under financial pressure. It can indicate it needs to preserve cash to reinvest in the business or meet its obligations. The company’s balance sheet looks good. It has current assets of $136 million compared to only $11.3 million in current liabilities. This gives it a current ratio of 12x. The firm is likely using the extra cash to reinvest in the business, a much better sign than needing it to fund its liabilities. Outlook: Relative Valuation and Analyst Price Target Simulations Plus MarketRank™ Stock Analysis Overall MarketRank™ 3.98 out of 5 Analyst Rating Buy Upside/Downside 55.6% Upside Short Interest Bearish Dividend Strength Weak Sustainability N/A News Sentiment 0.43 Insider Trading Selling Shares Projected Earnings Growth 29.09% See Full Details All these factors led to the significant decline in share price. This happened despite Simulations Plus beating earnings estimates. One could argue that the firm is overvalued based on its forward price-to-earnings (P/E) ratio. Its 68x forward P/E is in the 94th percentile for global healthcare companies. However, healthcare analyst Matthew Hewitt at Craig Hallum Capital Group reiterated his buy rating on the company after the release. His price target of $56 implies a 40% upside. Before you consider Certara, 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 Certara wasn't on the list. While Certara currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Nasdaq vs. Dow Jones: A Detailed Breakdown of Stock Indexes 2024-07-05 13:00:00+00:00 - The Nasdaq and Dow Jones are two of the most prominent and widely followed indexes, and understanding them is vital for any investor. Each represents different segments of the market and has unique characteristics that can influence investment decisions. Sometimes, these indexes rise and fall in tandem; other times, they act very differently. In this article, we compare the Nasdaq vs. Dow Jones, including their composition, market focus, calculation methods, performance, and risk. By examining these factors, investors can better understand how each index aligns with their investment goals and strategies. What is the Dow Jones? The Dow Jones Industrial Average (DJIA), commonly known as the Dow Jones or simply the Dow, is a well-respected stock market index that reflects the performance of prominent, publicly traded companies listed on U.S. stock exchanges. Established in 1896 by Charles Dow and Edward Jones, the Dow Jones index started as just a dozen industrial companies. Today, it has grown to include 30 U.S. businesses in technology, finance, healthcare, and consumer goods. A committee of editors from The Wall Street Journal selects the companies that make up the Dow Jones typically based on their size, industry representation, and financial performance. Current Dow Jones companies include The Goldman Sachs Group, Inc. (NYSE: GS), Johnson & Johnson (NYSE: JNJ) and The Coca-Cola Company (NYSE: KO). Similar to the Nasdaq, the Dow serves as a barometer for the overall health of the U.S. stock market and economy, given its inclusion of multiple sectors and industries. Key Differences Between Nasdaq and Dow Jones Composition The Nasdaq includes over 3,000 companies, primarily composed of technology firms, but also featuring businesses from other sectors such as consumer services, healthcare, and financials. Dow Jones companies, on the other hand, are an elite group of 30 large, publicly-traded companies from a wide range of industries (excluding transportation and utilities). Market Focus The Nasdaq is known for representing the performance of innovative and fast-growing sectors, focusing on high-growth technology and internet-related companies. A more traditional cross-section of the American economy, the Dow Jones encompasses various sectors such as finance, healthcare, industrials, and consumer goods, providing a broader perspective on established industry leaders. Calculation Methods The Nasdaq is a market capitalization-weighted index. This means that the weight of each stock is proportional to its market cap, so stocks with larger market values have more influence on the index. The Dow is a price-weighted index. This means that the weight of each stock depends on its stock price, so companies with higher stock prices, regardless of their overall size, have a more substantial influence on the index. Performance Comparison The Nasdaq has often outperformed the Dow Jones due to its concentration in high-growth technology and internet-based companies. But while the Nasdaq has outpaced the Dow over long periods, it has also been more volatile. This divergence in performance highlights the Nasdaq's sensitivity to technological trends and innovation compared to the Dow's broader economic representation. Historical Performance Since its inception, the Nasdaq has experienced substantial growth, particularly during periods of technological advancement such as the late 1990s dot-com boom. And in the 2010s, tech titans like Google and Apple started soaring, sending the Nasdaq soaring as well. As of June 30, 2024, the Nasdaq Composite total return over the past five years was 126.35%. Because The Dow represents a broader variety of industries, it has shown steadier and more consistent growth over the long term, reflecting the overall performance of the American economy. Major economic events, like the Great Depression, post-World War II booms and a series of bull markets have left marks on the Dow. As of June 30, 2024, the Dow Jones Industrial Average total return over the past five years was 45.30%. Recent Performance The Nasdaq has continued to outperform the Dow Jones, driven by the significant gains of major tech companies like Apple, Amazon, Microsoft, and Tesla (NASDAQ: TSLA). The COVID-19 pandemic accelerated this trend as technology companies benefited from increased digital adoption and remote work. In contrast, the Dow’s performance has been more moderate, reflecting the struggles of industries and sectors impacted by the pandemic. As of June 30, 2024, the Nasdaq Composite total return over the past year was 29.33%. During that same time period, the Dow Jones Industrial Average total return was 13.66%. Investment Considerations When deciding between investing in the Nasdaq and the Dow Jones, you should consider various factors such as risk and volatility, return on investment (ROI), and suitability for different types of investors. Risk and Volatility Nasdaq risk is typically higher than Dow Jones risk. The Nasdaq's heavy weighting towards technology and growth stocks makes it more susceptible to market fluctuations and economic cycles. Tech stocks can experience significant price swings due to factors such as innovation cycles, regulatory changes, and market sentiment. On the flip side, the Dow’s diverse mix of established companies across various industries translates to lower volatility and more stable performance, providing a safer investment option during market downturns. Return on Investment Usually expressed as a percentage, ROI is calculated by dividing the net profit from the investment by the initial cost of the investment. Nasdaq ROI has been historically higher than Dow Jones ROI. During periods of technological innovation and economic expansion, Nasdaq returns can significantly outperform the broader market. But this potential for higher returns comes with increased risk. Tech is fiercely competitive and products or services can become obsolete in a flash. The Dow Jones tends to provide more consistent, moderate returns over the long term. This is due to its portfolio of established, blue-chip companies that pay steady dividends and provide capital appreciation. Suitability for Investors You are probably wondering which is the best index for investors. The short answer is: it depends. When deciding on a Nasdaq vs. Dow Jones investment, consider how much risk you are willing to take on and which index best aligns with your overall investment goals. Do you have a higher risk tolerance, a longer investment horizon, and the ability to withstand short-term volatility? Are you looking to capitalize on technological advancements and growth opportunities? If so, the Nasdaq might be for you. Are stability, lower volatility, and steady income important to you? Do you prefer a balanced portfolio that reflects the overall economy and dividend payments from well-established companies? If so, the Dow Jones may be more your speed. Nasdaq vs. Dow Jones: Finding the Balance Between Risk and Return When comparing the Nasdaq vs. Dow Jones, it’s important to remember that each index has pros and cons. The Nasdaq is known for its focus on technology and growth, offering significant potential for high returns but with higher volatility. The Dow Jones represents a broader array of sectors and industries, providing steady performance and lower risk. Understanding the characteristics, risks, and benefits of each index will help you make a well-informed decision. Ultimately, the index you choose should align with your risk tolerance, investment goals, and time horizon.
28% Off All-Time Highs, Is AMD Stock a Buy? 2024-07-05 03:44:00+00:00 - While AI leader Nvidia (NASDAQ:NVDA) reported stellar Q1 earnings, computer processor and graphics card maker Advanced Micro Devices (NASDAQ:AMD) relatively underperformed, only meeting expectations. This led to a decline in the stock price, post-earnings. However, investors must note that NVDA is a few quarters ahead of AMD. AMD is showcasing impressive growth in its AI-driven Data Center revenues, which will ultimately flow into margins and profits. Therefore, I am bullish on AMD stock. AMD’s Muted Q1 Earnings Failed to Impress Investors On April 30, AMD reported Q1 EPS of $0.62, in line with analysts’ estimates. The figure came in a mere 3.33% higher than the Q1FY23 figure of $0.60 per share. Q1 revenues grew 2.2% year-over-year to $5.47 billion, also roughly in line with consensus estimates. Robust Data Center segment revenues somewhat offset the weakness in the Embedded and Gaming segments, but the overall Q1 results were lackluster. Crucially, Data Center revenue growth continued to impress, growing an impressive 80% year-over-year during the quarter, driven by the launch of its latest MI300 AI accelerators, Ryzen, and EPYC processors. Disappointingly, however, Gaming revenue fell 48% year-over-year due to a decline in gaming chip sales. Further, adjusted gross and operating margins were uninspiring, standing at 52% (78.4% for Nvidia) and 21%, respectively. Next, AMD’s revenue guidance met street expectations. For Q2, total revenue is expected to be around $5.7 billion (+/- $300 million). Positively, however, management raised the outlook for data center GPU sales, which are now expected to come in at $4 billion versus $3.5 billion guided earlier. The firm’s adjusted gross margin is forecast to be approximately 53%. AMD’s AI Product Roadmap Presents Strong Growth Potential A relatively underwhelming Q1 print and fears of AI demand waning have led to a 28% decline in AMD’s stock from its all-time high of $227 in March 2024 to around $164 currently. However, investors should note that AMD is the closest competitor to NVDA. It is well known that AMD’s GPUs are a cheaper alternative to NVDA’s GPUs. Given the clear gap between demand and supply due to limited manufacturing capacity, the surge in the popularity of AI creates an opportunity for AMD chips to fill in the gap. For instance, Microsoft (NASDAQ:MSFT) recently announced that its cloud computing customers using Azure can opt for AMD’s MI300 chips along with NVDA’s H100 GPUs. This will give customers an alternative in case of overall supply constraints or clients’ individual budgetary constraints. Notably, AMD’s MI300 accelerator, which competes with NVDA’s H100 chips, costs 33% less. Story continues While Nvidia is currently leading in the AI and GPU markets with over 80% market share, AMD’s competitive pricing and performance improvements could help it gain market share over time. It is worth noting that MI300 is reckoned as the fastest-ramping product in the history of AMD. Launched just two quarters ago, it has already crossed the $1 billion sales milestone. It’s no wonder, then, that AMD’s management has been consistently increasing the outlook for MI300 sales for the past three quarters. There is a strong likelihood that the sales increase trend will continue for the upcoming quarters as well. It’s important to note that AMD has a wider variety of offerings compared to NVDA. While NVDA is well-known for its powerful GPUs for data centers, AMD caters to a wider range that includes CPUs for PCs and GPUs for the gaming industry. During COVID-19, the PC market saw roaring demand. Now, it’s time again for users to move to new PCs with upgraded technology. AMD is a key supplier to the high-end PC market and is bound to benefit from the uptick in demand for PCs. Further, both NVDA and AMD continue to unveil their newest products, including accelerators and processors. While AMD launched its MI300 accelerators in December 2023, NVDA launched its Blackwell GPUs in March 2024. In response to NVDA’s pace of innovation, AMD’s CEO Lisa Su also announced an annual cadence of new product launches at the Computex show held on June 2. The product roadmap looked impressive with newer launches year-on-year expected to incrementally add to revenues and profits. Notably, AMD has consistently undertaken acquisitions to enhance its data center offerings. For instance, it acquired Xilinx in February 2022 and Pensando Systems in May 2022. Moreover, the acquisitions have not yet been integrated to their full potential and are expected to yield a $10 billion cross-selling opportunity, as cited by management. With its acquisitions, its total addressable market continues to grow, having increased to $300 billion currently from just under $80 billion in FY2020. AMD’s Valuation Is Not Cheap but Still Appears Reasonable Surprisingly, AMD is trading at a high forward P/E multiple (47x), slightly higher than the AI prodigy Nvidia, which is trading at a forward P/E of 45x. What could be the reason for AMD’s high valuation despite lagging behind NVDA’s inspiring results? The answer is clear: AMD will likely follow in NVDA’s footsteps in the next few years, as its AI growth story is just beginning. Now, let’s consider whether it’s worth buying AMD at current levels. Wall Street analysts expect AMD’s EPS to be approximately $5.59 in FY2025 (with expectations of around $6.50 in FY2026). If AMD keeps the same forward P/E multiple of 47x by then, its share price will be about $275, or 68% higher than the current price. Putting it differently, AMD shares are trading at a P/E of 28x its FY2025 EPS estimate, implying a 35% discount to its five-year historical average of 43x. Therefore, it makes sense to consider buying AMD stock at current levels, given the strong growth fundamentals in the AI space. Is Advanced Micro Devices Stock a Buy, According to Analysts? The sentiment among Wall Street analysts is decidedly positive regarding Advanced Micro Devices stock. The stock boasts a Strong Buy consensus rating, with 28 Buy recommendations and seven Holds. AMD stock’s average price target of $191.03 implies 16.6% upside potential from current levels. Conclusion: Consider AMD for the Long-Term AI Potential There is a clear-cut demand for AI across a broad range of industries as companies look to build their own data center infrastructure. This implies that strong growth in sales for AI chips, GPUs, and CPUs will continue for at least some years. AMD’s advancements in AI and data center solutions position the company well for future growth, and its competitive pricing will help it gain market share over time. Furthermore, AMD has a strong foothold in the AI market for PCs and will likely continue to win market share. The impending PC upgrade cycle with AI-enabled PCs will add to sales and margin growth for AMD in the coming quarters. Given my bullish stance, I view the current share price weakness as a buying opportunity. Disclosure
Is It Time to Buy June's Worst-Performing Dow Jones Stocks? 2024-07-05 01:29:00+00:00 - The Dow Jones Industrial Average (DJINDICES: ^DJI) market index gained 1.1% in June 2024, but some of the business titans in that portfolio posted negative returns. Are these stumbling titans down for the count, or should you consider picking up a few shares of high-quality companies on the cheap? Come along as I take a look at two of the Dow's worst performers in June, aiming to separate low-priced wheat from barren chaff. Nike: Down 20.7% in June Let's start with the biggest plunge. Athletic footwear and apparel giant Nike (NYSE: NKE) was doing alright for most of last month. The stock traded roughly sideways until June 27, followed by a 19% price drop on the month's final market day. Nike's crash started with a mixed earnings report for the fourth quarter of fiscal year 2024 (ended May 31). The company exceeded Wall Street's consensus earnings target by 16% but missed its average revenue target by 2.3%. More to the point, Nike's management signaled uncertainty about foreign exchange rates, the Chinese economy, and lifestyle product sales on the Nike Digital e-commerce platform. Many analyst firms immediately lowered their price targets for Nike's stock, some gave the shares a lower recommendation status, and the market took notice. As a result, Nike's stock is trading at prices not seen since the brief COVID-19 crash in March 2020. The company faces many challenges right now. Issues like the wobbly Chinese economy and unfavorable exchange rates also apply to Nike's rivals, but soft e-commerce sales and overstuffed inventories across the supply chain should be more directly under the company's control. On the upside, Nike is taking action. The company is rebalancing its product portfolio, introducing modern ideas like 3D-printed sneakers with artificial intelligence (AI) designs, and started cutting costs. It may be tempting to grab a few Nike shares at a multiyear low price. However, slow going in the presumably high-growth e-commerce channel makes me concerned. Is the brand losing value in the eyes of younger consumers? Moreover, Nike's stock isn't on fire sale. Shares are valued at the modest ratios of 20 times earnings and 18 times free cash flows, indicating a fair value for a very mature stock. So, I'll take a rain check on Nike's stock at this point. There are so many deeper value ideas to pursue before taking a chance on this shoe giant's potential turnaround. Walt Disney: Down 4.5% in June Entertainment powerhouse Walt Disney (NYSE: DIS) took a different path to a milder price drop in June. Together with a sharper plunge in April, Disney's stock has burned the market goodwill it earned from a fantastic earnings report in February. Story continues Why are investors casting a dim eye on Disney and its stock these days? Well, activist investor Nelson Peltz liquidated his Disney position after losing a proxy battle over the company's future. Peltz could have injected new ideas into Disney's business plan. In particular, he wanted Disney's board of directors to show some backbone when assessing legendary CEO Bob Iger's plans and ideas. Then again, Peltz's campaign may have achieved some of its goals differently. His capital management firm, Trian Partners, sold its Disney stake at a $1 billion profit. The challenge may also have given the management team and board of directors a fresh sense of fiscal responsibility. The company's streaming video adventures continue but only after selling off unprofitable operations, such as the Hotstar streaming service in India. Disney's valuation is comparable to Nike's in many ways and slightly loftier overall. In all fairness, I should probably keep my hands off this stock, too. However, I'm more impressed by Disney's streaming future and sector-spanning entertainment empire than Nike's struggles in a much narrower market. There is a very small handful of stocks I watch like a hawk, scanning for poorly motivated price drops. Disney is on that list, and the current stock swoon strikes me as a solid buy-in opportunity. So, there you have it. Nike and Disney both took a tumble in June, but their paths forward look quite different. Nike's got some serious hurdles to jump before hitting its stride again, making it a difficult pick for now. On the flip side, Disney's broad entertainment empire and strategic moves in streaming make it a more intriguing buy during this stock dip. Should you invest $1,000 in Walt Disney right now? Before you buy stock in Walt Disney, 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 Walt Disney 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 $786,046!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of July 2, 2024 Anders Bylund has positions in Walt Disney. The Motley Fool has positions in and recommends Nike and Walt Disney. The Motley Fool recommends the following options: long January 2025 $47.50 calls on Nike. The Motley Fool has a disclosure policy. Is It Time to Buy June's Worst-Performing Dow Jones Stocks? was originally published by The Motley Fool