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Farewell, Patrick Drahi from BT – who won’t be missed | Nils Pratley 2024-08-12 17:31:00+00:00 - Get ready, then, for a newcomer in the great international sport of owning chunks of BT. Indian conglomerate Bharti Enterprises, led by the billionaire Sunil Bharti Mittal, is buying the 24.5% stake held by the French billionaire Patrick Drahi’s Altice Group. Bharti will be rubbing shoulders with Germany’s Deutsche Telekom (12%) and the Mexican tycoon Carlos Slim (3%). Bharti looks to be a vast improvement on Drahi. The Frenchman distracted the market for a couple of years by being mysterious about his long-term intentions at BT, but it’s been obvious for a while that he had become a natural seller rather than buyer. He is now retreating, at a presumed heavy loss, to attend to the tower of debt within his wider Altice empire. With the overhang cleared via a clean-ish exit plan, BT’s shares perked up 8%. It may still take Bharti a couple of years to unwind the derivative contracts used by Altice for a portion of its BT stake, but the preferred eventual structure, we’re assured, is a plain vanilla one. If so, good: BT, still only two-thirds of the way through building a fibre broadband network in the UK, doesn’t need short-term distractions created by a major shareholder’s financial contortions in the background. An open question, though, is still Bharti’s long-term intentions at BT. The day-one purring about BT’s “market-leading brands, high-quality assets” and long-term stability was encouraging as far as it went. But the bottom line is that its commitment not to make a full takeover bid is binding only for six months, as is normal. That being so, the government could use the review of the transaction under the UK National Security and Investment Act (NSIA) to make a wider point about ownership of BT. In short: no overseas buyer should be allowed to own BT outright; a 25% stake ought to be the maximum allowed. With a market value of only £14bn these days, BT may be only the 34th largest company in the FTSE 100 index, but it would be near the top of a ranking of companies whose infrastructure is crucial to the smooth functioning of the UK economy. A reliable, fast broadband network is non-negotiable in the digital age and BT will probably remain the biggest provider for decades given the lifespan of the kit. TheNSIA could almost have been drafted with the company in mind. The best ownership model is the current one of a stock market listing. It offers more transparency and boardroom accountability than private ownership ever will. And, from a regulatory point of view, a publicly traded share price can serve as a signal of trouble ahead or as an indication of excess returns at the expense of customers. The example of the water industry in the past 20 years ought to be a neon-lit reminder of the perils of allowing critical UK assets to slip out of view and into faraway conglomerates or worse. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Bharti and Mittal, then, should be thanked for their “vote of confidence in the UK”, the semi-mandatory utterance on these occasions. Their technical expertise in telecoms may even be useful. But Mittal should be told not to entertain any thoughts about ever going to 100%.
Boris Johnson ‘courted for Telegraph role’ as Nadhim Zahawi plots bid 2024-08-12 17:29:00+00:00 - Boris Johnson has reportedly been courted for an executive role with the Daily Telegraph by a potential bidder for the newspaper group. The former Conservative prime minister is said to have been sounded out by his former chancellor Nadhim Zahawi, who has approached a number of wealthy backers about assembling a potential bid for the Telegraph newspapers and Spectator magazine. Zahawi has held preliminary, informal talks and raised the idea with investors of Johnson becoming the Telegraph’s global editor-in-chief if a bid is successful – although there is no firm agreement in place and there are no formal talks, according to Sky News. Johnson currently writes a column for the Daily Mail although he has longstanding links with the Telegraph, where he began his career as its star Brussels correspondent writing exaggerated stories about EU regulations, before returning to the UK to be a political columnist and entering politics. Zahawi stepped down as an MP in July after he decided not to stand again in his Stratford-on-Avon constituency. He was originally involved in discussions over the future of the Telegraph as a “middleman”, introducing RedBird IMI, a United Arab Emirates-backed consortium, to the Barclay family. RedBird IMI – a partnership backed by Sheikh Mansour bin Zayed al-Nahyan, the UAE’s vice-president, and the US investment firm RedBird Capital Partners – took control of the Telegraph newspapers and the Spectator magazine in December when it repaid the Barclay family’s debts, including a £600m loan against the titles. However, RedBird IMI was effectively blocked from completing its planned deal for the Telegraph after the UK government drew up legislation earlier this year designed to stop foreign states or associated individuals from owning newspaper assets in the UK. The planned Abu Dhabi-led takeover of a newspaper widely seen as the in-house journal of the Conservative party had been fiercely opposed by many Tory MPs and peers. Their concerns about past breaches of press freedom in the UAE, which provided the financial backing for 75% of RedBird IMI, led ministers to draw up the new law. After it became clear the bid would not be approved under the new rules, RedBird IMI put the newspaper group back up for sale in April; the deadline for first-round bids closed in mid-July. The sale is expected to be completed later this year. A number of interested parties have already walked away, including Lord Rothermere, the owner of the Daily Mail, who pulled out of the auction owing to fears that his newspaper group would be drawn into a long and complex battle to allow any takeover to overcome competition and political hurdles. A bid from Lord Saatchi, the former Tory co-chair responsible for the party’s best-known advertising campaigns, and Lady de Rothschild has also not made it to the second round. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion A consortium led by the hedge fund tycoon Paul Marshall and backed by the billionaire Ken Griffin is among the interested bidders. Zahawi, who in May was named chair of the Barclay family-owned retailer Very Group, is said to have approached potential backers including the Reuben family, who own a stake in Newcastle United and a large property portfolio. Zahawi and Johnson declined to comment. It emerged in June that Telegraph Media Group fell into the red last year after it set aside nearly £280m to cover loans made to the Barclay family that may not be repaid. In its accounts, the group said that despite a resilient financial performance, it had made losses of £244.6m in 2023 – against profits of £33.3m in the previous year – due to the provision. The group also reported it had surpassed 1m subscriptions in August 2023, with subscriptions increasing from 734,000 in December 2022 to 1.03m in December 2023.
Google, Gmail outage affected users in the U.K., Google says 2024-08-12 17:11:00+00:00 - Some Google users on Monday said they were unable to conduct searches using the company's Chrome browser and experienced trouble sending emails through the Gmail app. The problem only affected users in the U.K. and has since been resolved, Google said. The number of users reporting issues with Google services jumped Monday morning, according to DownDetector, a website that tracks websites' statuses. DownDetector said it only reports an incident when the number of reports is significantly higher than usual for a given time period. A Google Cloud spokesperson said it provided a dashboard update with information about the status of Google Cloud services. Google acknowledged an incident affecting a variety of Google services, including its cloud systems, and reported connectivity issues. The incident began at 6:38 a.m. Pacific time Monday, and was resolved by 8:34 a.m. PT, according to the company. "During the issue, users connecting to GCP services from the UK region may have experienced elevated latency, intermittent 500 error rates," the company update stated. Some Google users posted comment on the Downdetector site to say that "Google won't even load," or that they were "unable to use the Google Chrome browser app."
Bulgaria seizes heroin at a Black Sea port worth $38 million en route from Kyrgizstan 2024-08-12 17:01:13+00:00 - SOFIA, Bulgaria (AP) — Bulgarian authorities have seized some 436 kilograms (960 pounds) of heroin at the Black Sea port of Burgas, the district prosecutor’s office said on Monday. The heroin was stashed in 434 packages hidden inside officially declared cargo in a trailer. The drug haul’s value is estimated at 35 million euros (nearly $38 million). The trailer had arrived at the end of July on a land route from Kyrgyzstan to the Georgian Black Sea port of Batumi, from where it crossed to Burgas. From Bulgaria, it was supposed to continue to Alexandroupolis in Greece. The trailer, supposedly transporting cable-laying machines, raised suspicion due to its unusually long stay at the port, anti-drug unit chief Ivan Sokolov told reporters, adding that an X-ray inspection led to the discovery of the concealed heroin. “So far, there have been no arrests, and no persons found involved in this cross-border crime,” district prosecutor Georgi Chinev said. A conviction on drug trafficking carries up to 20 years in prison in Bulgaria. Bulgaria, which lies on a drug route from the Middle East to Western Europe, has taken massive steps in recent years to prevent drug trafficking.
It Was a Hot Real Estate Trade. Now Investors Are Worried. 2024-08-12 16:19:10.054000+00:00 - Given the opportunity to park money with the world’s largest private equity firms, ordinary investors rushed in. Getting out might not be so easy. The private equity firms began to seek out smaller investors almost a decade ago. It was a major shift for firms like Blackstone, Starwood Capital Group and KKR that had previously been funded by enormous pensions, endowments and sovereign wealth funds. But it was also a way for the big fund managers to grow their assets and rake in ever larger fees. For the individual investors, who were directed to the new private funds by their wealth managers, the chance to invest with Wall Street’s elite was too good to pass up — even if it came with rules, like limits on withdrawals that would mean that getting money back in tough times might be a challenge. The private equity firms had an allure, created by stellar track records, including during the 2008 financial crisis, and the fact that they had been off limits to ordinary (although wealthy) investors. One offering in particular captured peoples’ attention: private real-estate investment trusts, known as REITs, which own commercial or industrial properties and pay big dividends off the rental income they generate.
How to Invest in Silver: A Beginner's Guide 2024-08-12 16:15:00+00:00 - Precious metals like silver have long been used by investors as stores of value, offering a hedge against inflation and diversification against the general market. However, investing in physical commodities like silver and gold can be more complicated than buying and selling shares of stock due to authenticity and storage concerns. Read on to learn more about silver as an asset class, the multiple ways that you can invest in silver, and a few of the benefits and drawbacks of this ancient investment asset. Ways to Invest in Silver There are multiple investment assets that you can use to add silver exposure to your portfolio, including both physical silver investments and stock-based options like silver ETFs. You can also gain exposure to precious metals by investing in adjacent industries like mining and silver refinement to profit from potential price differences. Let's take a look at a few ways you can invest in silver. Get BHP Group alerts: Sign Up Physical Silver The most straightforward way to invest in silver is to purchase and hold physical silver, which is sold as an investment in two primary types: Bars: Investment-grade silver bars usually have a purity of at least 99.9%, which is marked as .999 fine silver. Fine silver bars are sold in a variety of sizes ranging from one ounce to 1,000 ounces, with the most common denominations being one, 10 and 100-ounce bars. Investment-grade silver bars usually have a purity of at least 99.9%, which is marked as .999 fine silver. Fine silver bars are sold in a variety of sizes ranging from one ounce to 1,000 ounces, with the most common denominations being one, 10 and 100-ounce bars. Coins: Like bars, most silver coins are sold with a purity of 99.9% pure silver. Most silver coins are issued by financial government bodies like the U.S. Mint and the Royal Canadian Mint. When investing in silver bars and coins, be sure that you’re purchasing through a reputable manufacturer like Johnson Matthey, Engelhard, or the Royal Mint. Some self-directed IRA providers even allow you to invest in silver with retirement benefits, with the custodian handling both purchase and storage. Most investors who hold their own physical investments choose to do so in a bank safety deposit vault or private vault company. Silver Stocks A more convenient way to invest in silver is to buy and hold stock of companies associated with the mining, refining, and sale of silver. When adding silver exposure to your portfolio, you can choose from multiple classifications of companies, including: Silver Producers: Primary silver producers provide the most direct way to profit from price changes in silver, as these companies are engaged in the direct mining and production of these products. An example of a major silver production stock is First Majestic Silver NYSE: AG , a gold and silver mining company with operations in Canada and Mexico. Primary silver producers provide the most direct way to profit from price changes in silver, as these companies are engaged in the direct mining and production of these products. An example of a major silver production stock is , a gold and silver mining company with operations in Canada and Mexico. Diversified Mining Stocks: General mining stocks do not focus specifically on precious metals but may combine silver mining activities with zinc, copper, or other types of ore extractions. BHP Group NYSE: BHP is a classic example of a highly diversified mining operation, with copper, uranium, molybdenum, gold, iron ore and coal mining segments in addition to silver investments. General mining stocks do not focus specifically on precious metals but may combine silver mining activities with zinc, copper, or other types of ore extractions. is a classic example of a highly diversified mining operation, with copper, uranium, molybdenum, gold, iron ore and coal mining segments in addition to silver investments. Streaming and Royalty Stock Companies: Streaming and royalty companies provide upfront financing to miners in exchange for a percentage of future production or revenue. For example, Franco-Nevada NYSE: FNV is a Canada-based company that provides financing for operations in South and Central America. Investing in silver stocks is easier than investing in physical silver because you don’t need to worry about storage, finding a reputable provider or locating an IRA provider that offers silver investment options. It also solves the problem of liquidity, with most brokerage service providers allowing you to queue sales orders around the clock. Silver stocks listed on major exchanges like the New York Stock Exchange must meet financial and oversight criteria before being listed, but they may still be especially volatile assets. Silver has traditionally displayed more drastic daily price changes than comparable precious metals like gold, which means that silver stocks may also see sudden changes in value. Silver ETFs An exchange-traded fund (ETF) is a type of fund that pools money together from multiple investors to invest in a particular type of stock or asset. Silver ETFs can be popular choices for beginners, allowing you to invest in a “basket” of stocks with a single purchase. These ETFs also provide a higher level of diversification, spreading your risk across multiple stocks. Like stock investments, the individual companies that make up the ETF may be engaged in both direct silver mining or a supplemental industry like refining or ore mining finance. A quintessential example of a silver ETF is the iShares Silver Trust NYSE: SLV. One of the largest and most popular silver ETFs, SLV holds physical silver bullion, providing investors with exposure to the direct price changes silver experiences. In August of 2024, it had more than $13 billion in assets under management as well as an accessible share price of less than $27. Pros of Investing in Silver Investing in silver as an asset class provides a unique level of diversification to your portfolio, including the following potential benefits. Hedge Against Inflation Precious metals like silver have traditionally been incorporated into portfolios as a hedge against inflation because they tend to retain value better during periods of inflation. When the value of currency falls, the price of silver may rise, preserving purchasing power. Increased Demand During Growth Periods The industrial uses of silver also contribute to increased demand during periods of high growth. For example, silver is an essential component of most solar panels because of its high thermal capacity. This means that during periods when there is an increased demand for solar panels, silver may see a corresponding increase in price. When you consider its uses across industries like medicine, mining and electronics, investors may see multiple opportunities to profit from changing prices as demand ebbs and flows. More Affordable than Gold As you compare precious metals to incorporate into your portfolio, you’ll find that silver is significantly more accessible than other popular choices like gold. In August of 2024, gold had an average spot price of $2,454 per ounce, while silver had an average price of $28.77 per ounce. If you’d like to add the benefits of physical metal commodities to your portfolio but cannot afford the high price of gold, silver can be a strong alternative. Portfolio Diversification Silver provides diversification benefits. As a physical asset, it can reduce the overall risk of a portfolio that may be heavily weighted in stocks and bonds. Cons of Investing in Silver While silver is a popular commodity investment, it does come with the risk of potentially sharp losses — especially when taking into account silver’s higher volatility rate. Price Volatility Silver is a more volatile asset than gold, meaning that it may see more drastic changes in its spot price throughout the day. If you’re closer to retirement and unable to handle a higher level of volatility, another investment could be a better choice. Storage and Insurance Costs Physical silver requires secure storage, which can incur additional costs. When investing in physical silver, you’ll need to do your research before choosing a manufacturer and decide the most practical way to store your investment. If you choose to store silver at home, you'll need a secure location, such as a safe, and you may want to purchase insurance to protect against theft or damage. Alternatively, storing silver in a bank safety deposit box or a professional vault incurs ongoing rental or storage fees, which can add up over time. If you invest in Silver ETFs, Mutual Funds, Closed-End Funds, or IRAS, the custodian is responsible for securely storing the silver in professional vaults, often insured. Lower Liquidity Compared to Gold Silver markets can be less liquid than gold, especially in large volumes, potentially making it harder to sell at favorable prices. Economic Sensitivity Since silver is heavily used in industrial applications, its price can be more sensitive to economic downturns. A recession or slowdown in industrial demand can negatively impact prices. Investing in Silver for Beginners Investing in silver can provide many of the same inflation safeguard benefits of gold at a lower price point. However, new investors may want to consider adding silver stocks or ETFs to their portfolio rather than physical silver. These assets are easier to buy and sell while also allowing you to benefit from the potential positive price movement silver will see in the future while making up only a portion of your overall investments. Start Your Research with MarketBeat Investments like physical silver may show different price movement trends than the overall market. Staying up-to-date with the latest market movements can enhance your trading without spending hours scouring the web for breaking stock news. Click here to sign up for a trial of MarketBeat’s premium market research reports and get stock market info delivered straight to your inbox daily. Before you consider BHP Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and BHP Group wasn't on the list. While BHP Group currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Monday.com's Stock Results Will Brighten Any Investor's Week 2024-08-12 15:25:00+00:00 - Monday.com NASDAQ: MNDY had another beat-and-raise quarter because the combination of its offering and operational quality delivered results. The company delivers results for its clients and investors and has its stock on track to hit a multi-year high soon. The question is whether this market will dip again before crossing the critical threshold and if there is a chance it might. The takeaway is that, dip or no dip, this market is simmering and could come to a boil at any time. Get monday.com alerts: Sign Up Monday.com Advances After Another Beat-and-Raise Report Monday.com technology resonates with users because of its plug-and-play platform. The platform is easy to use, systems are easy to assemble, and results are quick to follow. The business's revenue grew by 34.4% in Q2 to $236.1 million, accelerating its growth sequentially from Q1 and sustaining a high double-digit pace for another year. The revenue is also 300 basis points above the analysts' consensus figure, compounded by increased guidance, so investors may expect to see them revise their estimates and price targets higher. The dual forces of increased client counts and service penetration drive revenue growth. Client growth approached 50% for businesses contributing more than $50K and $100K in annual recurring revenue, with net retention up 110% systemwide and 114% for large clients. Net retention is a measure of revenue generated by existing clients. A figure above 100% shows increased penetration: Monday.com’s figures show business momentum is present and driven by more lucrative, larger businesses. monday.com Stock Forecast Today 12-Month Stock Price Forecast: $259.74 3.02% Upside Moderate Buy Based on 21 Analyst Ratings High Forecast $300.00 Average Forecast $259.74 Low Forecast $200.00 monday.com Stock Forecast Details As good as the top-line data is, the margin and bottom-line news is better. The company’s increasing revenue leverage and push toward more efficient operations significantly improved all margin comparisons and the first quarter of GAAP profits. The adjusted operating margin widened by 700 basis points to 16%, driving a 130% increase in adjusted operating income and robust cash flows. Cash flow is up 17% compared to last year, with the only bad news being a contraction in the FCF margin. However, FCF is up 10% compared to last year on a solid 21% FCF margin, providing nearly $51 million in useable cash. Guidance is the brightest spot of this report. The company raised guidance for Q3 and the year, putting the new targets' low ends above the consensus estimates. The guidance may also be cautious, given the trends, which include numerous guidance increases followed by company outperformance. Regarding the balance sheet and the company’s financial health, Monday.com is net-cash with cash rising and total liability leverage less than 0.5x the cash position. Liability also rose but was insufficient to offset cash and asset builds, leaving shareholder equity up 12% YOY. Analysts Are Lifting Sentiment and Price Targets for Monday.com No analysts issued a revision in the first few hours following Monday.com’s Q2 release, but they will likely be positive when they come. Until then, the sentiment trend is bullish, leading the market to a fresh multi-year high. Critical details include a 25% increase in analysts covering the stock over the past twelve months and a rising price target. The involvement of 16 analysts indicates a strong belief that this stock will surpass the $255 consensus price target, potentially reaching closer to $300. The $255 target is a critical detail because it would be the highest traded price for this stock since early January 2022. The market for MNDY is struggling with resistance at the current high, but the action is suggestive that a higher move is coming. The trading volume is rising, and the MACD and stochastic indicators are forming a solid buy signal that will likely extend the rally. The technical targets suggest a move above $300 is possible before the year’s end. Before you consider monday.com, 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 monday.com wasn't on the list. While monday.com currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Elections Officials Battle a Deluge of Disinformation 2024-08-12 15:20:10+00:00 - Tate Fall is overwhelmed. When she signed on to be director of elections in Cobb County, Ga., last year, she knew she’d be registering voters and recruiting poll workers, maybe fixing up voting machines. She didn’t expect the unending flood of disinformation — or at least, she wasn’t prepared for how much it would overtake her job. She has had election deniers shout at her at public meetings, fielded weekend calls from politicians panicked about a newly circulating falsehood, and even reviewed conspiracy theories circulating on Nextdoor forums that might worsen skepticism among distrustful constituents already doubtful that the democratic system is reliable and secure.
3 Must-Watch Stocks After a Bullish Goldman Sachs Recommendation 2024-08-12 14:33:00+00:00 - Investors are shaken up after last week's volatility in the stock market, which rocked indexes from Tokyo to New York. This left all participants with the concern that more could be coming in the following weeks. Knowing that there is a confidence gap to be filled for those who rely on professional advice and information, some banks have stepped forward to help out. Today, Goldman Sachs Group Inc. NYSE: GS analysts shed some light on the potential selection criteria that could help investors navigate today's and tomorrow's marketplace. Analyst Peter Oppenheimer wrote that the bank is still in defensive mode as markets face election and geopolitical volatility, so the call is for quality growth companies with stable cash flows. It looks like value stocks with a strong dividend and buyback program could fit the description. Get Coca-Cola alerts: Sign Up There weren't any specific stocks in this recommendation list. Still, the descriptions were enough for some investors to justify adding Realty Income Co. NYSE: O through steady real estate investment trust (REIT) dividends and predictable cash flows. Additionally, PepsiCo Inc. NASDAQ: PEP operates in the consumer staples sector and also fits the profile. Last but not least, investors could consider the insurer American International Group Inc. NYSE: AIG. Realty Income Stock's Stability Delivers the Complete Goldman Package Realty Income Today O Realty Income $60.31 -0.26 (-0.43%) 52-Week Range $45.03 ▼ $61.60 Dividend Yield 5.22% P/E Ratio 55.84 Price Target $61.57 Add to Watchlist Investing in REITs offers investors several benefits, the main one being dividend payouts. In the case of Realty Income, there is a $3.15 share payout per year, which translates to a 5.2% dividend yield that beats not only inflation but also the ‘risk-free’ yield offered by U.S. 10-year bonds. Not to mention, this dividend is paid out on a monthly—not a quarterly—basis. According to the company’s investor presentation, dividend payouts have been running for up to 29 consecutive years, growing at 4.3% per year on average. It’s like getting a raise without doing any extra work. So, with a focus on predictable cash flows, real estate doesn’t get much better than that. Realty Income’s tenants include businesses like CVS Health Co. NYSE: CVS and Walmart Inc. NYSE: WMT, creating confidence for the company that rent will be paid and probably on time. This is why analysts at Tigress Financial have placed an $86 price target on Realty Income stock, daring it to rally by as much as 25.5% from where it trades today. That sets the pace for Goldman’s filtering process, income with upside so far. Realty Income Co. (O) Price Chart for Monday, August, 12, 2024 PepsiCo Stock: Steady Demand Drives Both Income and Upside Potential PepsiCo Today PEP PepsiCo $171.42 -0.97 (-0.56%) 52-Week Range $155.83 ▼ $184.86 Dividend Yield 3.16% P/E Ratio 24.88 Price Target $185.53 Add to Watchlist People think PepsiCo is essentially about soda products, but that’s not even half the story. This company has a snack segment that offers anything from chips to popcorn. They are also exposed to water products. The trend is definitely focused on consumer staples products that have strong and predictable demand. Fitting the profile, Wall Street analysts forecast up to 7.5% earnings per share (EPS) growth in PepsiCo stock for the next 12 months, above its main competitor, Coca-Cola Co. NYSE: KO 's forecast of only 5.9% for the year. Noticing the greater growth potential and stability in PepsiCo, price targets were also raised along with this view. Those at Barclays decided that PepsiCo stock is worth closer to $187 a share, which directly calls for up to 8.4% upside from where it trades today. More than that, the company offers a $5.42 payout per share, which translates into an annual dividend yield of 3.14%. While this income is lower than Realty Income's, investors make the trade-off through upside. Even bearish traders have realized the upside that could be coming to PepsiCo stock, which is why the company’s short interest has declined by 10.6% in the past month, a sign of bearish capitulation. PepsiCo, Inc. (PEP) Price Chart for Monday, August, 12, 2024 American International Group Stock: Unlocking Ultimate Upside in Its Resilient Business Model American International Group Today AIG American International Group $71.61 -0.45 (-0.62%) 52-Week Range $57.02 ▼ $80.83 Dividend Yield 2.23% P/E Ratio 10.69 Price Target $83.33 Add to Watchlist The nice thing about an insurance company is that it is the closest thing to being a real estate landlord. The income typically comes not through rent but through monthly premiums. Having a team of mathematicians calculate payout risk also allows the company to reinvest and create a return on the capital held within the company. Warren Buffett realized the potential compounding effects of this business model, which is why he sought to invest in insurance companies for their 'float' in his early days. That is also why American International Group stock carries the highest upside in this list. Analysts at J.P. Morgan Chase & Co. believe this insurer is worth $93 a share, which offers a net upside of 29.1% compared to today's prices. To top off the characteristics of this stock within Goldman's recommendation, Wall Street predicts up to 15.2% EPS growth for the next 12 months. Speaking of further upside in the stock, management reiterated that prices could be higher. After an upbeat second quarter 2024 earnings result, management approved a $10 billion buyback program, up to 21.5% of the company's market capitalization. American International Group, Inc. (AIG) Price Chart for Monday, August, 12, 2024 Before you consider Coca-Cola, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Coca-Cola wasn't on the list. While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Thinking of a hair transplant? Here's where many Americans are heading. 2024-08-12 14:31:00+00:00 - Here's what to know about medical tourism Here's what to know about medical tourism 05:39 Gaze around Istanbul Airport and you are almost certain to spot a male traveler with a shaved head and a bandaged, bloody scalp. Some travel in groups or pairs, while others are alone. But they've all trekked to Turkey in pursuit of one thing: hair. Many Americans and medical tourists from other countries are today flocking to Istanbul, which has gained a reputation as a premier destination for hair transplantation and restoration. Generally, the process involves implanting healthy hair follicles into a patient's scalp in bald areas and along a desired hairline, resulting in natural-looking results over time. Turkey offers procedures that are also widely available in the U.S., but for a fraction of the price, according to patients who elected to undergo the surgery abroad. Many patients also attest to the high quality of care available in Turkey, including the deep bench of doctors experienced in this type of cosmetic operation. The doctors, not surprisingly, agree. "In this world, when someone does something better, people go there," Dr. Serkan Aygin, an Istanbul-based hair transplant doctor, told CBS MoneyWatch. "We have a number of very good, very serious clinics in Turkey with deep backgrounds in hair transplantation." Dr. Serkan Aygin, pictured at his clinic, performs 20 hair transplants a day. As many as eight patients are American. Megan Cerullo / CBS News "Here for the price" Aaron Collins, 30, traveled from Chicago to Turkey in August for an appointment at Smile Hair Clinic, an Istanbul-based clinic led by two hair transplant surgeons — both members of the International Society of Hair Restoration Surgery (ISHRS) — which is certified to treat international patients. Turkey isn't the only country to welcome medical tourists on a budget seeking a variety of cosmetic procedures. And sometimes the results can be disastrous. More than 90 U.S. citizens died after traveling to the Dominican Republic for cosmetic surgery between 2009 and 2022, according to the Centers for Disease Control and Prevention. Aaron Collins, 30, said he paid $6,000 for a hair transplant in Istanbul, Turkey. Megan Cerullo / CBS News Collins chose Smile after researching hair restoration surgery online. His procedure, which cost $6,000, involved implanting 4,100 follicular unit grafts pulled from the back of his head to his scalp. Although he found lower-priced treatment, Collins said he wanted the entire procedure to be performed by, or under the supervision of, a licensed doctor. "I really came here for the price. In Turkey, it's probably one-third of what it costs in the U.S. — it can maybe get down to one-fifth. And I have heard that depending on where you go, the quality of the procedure itself is pretty equivalent," he told CBS MoneyWatch. Collins said he spent months researching clinics before booking an appointment and traveling thousands of miles for the procedure. Megan Cerullo / CBS News Collins said technicians working under a surgeon's supervision extracted follicles from the back of his head, called the donor area, and inserted them along his desired hairline. The surgeon performed all the incision work and determined the hairline — something he paid extra for but that he believes was worth the added cost. "It's crazy enough to travel to another country," he said. Medical tourism boom Collins is one of many Americans who have traveled thousands of miles for a cosmetic procedure for a fraction of what a top-notch version of the same procedure would cost in the U.S. In 2023, more than 1.5 million tourists visited Turkey for medical procedures, spending roughly $3 billion, according to a state-owned health care company established by the country's Ministry of Health to promote medical tourism. In the U.S., a hair transplant costs an average of $7,500, according to the Foundation for Hair Restoration, a Miami-based hair transplant center. In Turkey, a typical hair transplant costs between $1,800 and $4,500, according to Istanbeautiful, an online guide to medical tourism. To be sure, wherever a hair transplant is done, the cost will vary based on the number of grafts required in a procedure as well as a given doctor's experience and reputation. By another measure, in 2021 the average cost of the procedure in the U.S. was $13,610, compared to $2,676 in Turkey, according to Statista. In markets like New York and Los Angeles, the price tag tends to be even higher, and can rise to $25,000. Aygin said that of the roughly 20 hair transplants he performs on patients daily, as many as eight are from the U.S. But he treats patients from around the globe. Recent hair transplant recipient Iyad Alieh, 28, said he recently traveled from Luxembourg to Aygin's clinic at the recommendation of a friend. His procedure involved taking 5,000 grafts from his chest to restore his hairline. It cost him roughly $3,300, Alieh said. Aygin's clinic confirmed that it charges patients a flat fee of 3,000 euros (roughly $3,300) no matter how many grafts are required. Aygin said the equivalent procedure in the U.S., performed by a doctor with comparable experience, would cost $25,000. "It's cheaper and better," Alieh said, comparing his experience to that of a friend who had had similar work done in the United Kingdom at a cost of £12,000 ($15,300). Beware the black market Turkey, as well as other countries, also have black-market clinics offering hair transplants. But physicians and organizations all warn patients to be leery of services offered at bargain-basement prices. "It's like letting a medical assistant do a breast implant or face lift versus a doctors," Ricardo Mejia, vice president of ISHRS told CBS MoneyWatch. "It's the same principal — the doctor is not to delegate surgical responsibilities to unlicensed medical assistants." He's aware of a growing number of doctors who have taught technicians the follicular united extraction (FUE) hair transplantation technique. "They think if they have the technicians do it, it makes the doctor extra income. That has exploded into what we call the black market of non-doctors doing the surgery," Mejia said. Dr. Ozlem Bicer, an ISHRS member who operates a hair transplant clinic in Istanbul, advises patients to avoid unlicensed clinics not only because they can produce bad results, but because it is dangerous for patients to be given anesthesia without the supervision of a doctor. "If the doctors preform the surgery, the price has no chance to be low. Patients should know that low cost means black market," she said. Bicer said she regularly treats patients who underwent surgeries at black market clinics, and whose donor areas, like the backs of their heads, became completely depleted or whose hairlines weren't properly aligned. Corrections can end up costing twice or three times as much as the initial procedure, she said. Bicer said the first questions medical tourists should ask about a hair transplant doctor or clinic are: "Who performs the surgery? Do they have a license?" Not, "How much does the procedure cost?"
Elon Musk should face arrest if he incited UK rioters, says ex-Twitter chief 2024-08-12 14:02:00+00:00 - Elon Musk should face “personal sanctions” and even the threat of an “arrest warrant” if found to be stirring up public disorder on his social media platform, a former Twitter executive has said. It cannot be right that the billionaire owner of X, and other tech executives, be allowed to sow discord without personal risks, Bruce Daisley, formerly Twitter’s vice-president for Europe, Middle East and Africa, writes in the Guardian. He said the prime minister, Keir Starmer, should “beef up” online safety laws and reflect on whether the media regulator, Ofcom, “is fit to deal with the blurringly fast actions of the likes of Musk”. “In my experience, that threat of personal sanction is much more effective on executives than the risk of corporate fines,” Daisley writes, arguing such sanctions could impact the jet-setting lifestyles of tech billionaires. The UK government has called on social media platforms to act responsibly after violent unrest swept through the UK following the fatal stabbing of three young girls at a Taylor Swift-themed holiday dance class in Southport last month. The prime minister has blamed social media companies for allowing the spread of false claims that the attacker was an asylum seeker and police are increasingly going after those suspected of using online posts to incite violence. In one post, Musk wrote: “civil war is inevitable” in the UK, language that the justice minister, Heidi Alexander, described as “unacceptable”. Musk has called Starmer “two-tier Keir” and a “hypocrite” over his approach to policing. Musk also shared a false post suggesting Starmer was planning to set up “detainment camps” in the Falkland Islands, a post he later deleted. Daisley, who worked at Twitter, now X, from 2012-2020, describes Musk as someone who “has taken on the aura of a teenager on the bus with no headphones, creating lots of noise”. He adds: “Were Musk to continue stirring up unrest, an arrest warrant for him might produce fireworks from his fingertips, but as an international jet-setter it would have the effect of focusing his mind.” “Musk’s actions should be a wake-up call for Starmer’s government to quietly legislate to take back control of what we collectively agree is permissible on social media,” he argues. Daisley says: “The question we are presented with is whether we’re willing to allow a billionaire oligarch to camp off the UK coastline and take potshots at our society. The idea that a boycott – whether by high-profile users or advertisers – should be our only sanction is clearly not meaningful.” He continues: “In the short term, Musk and fellow executives should be reminded of their criminal liability for their actions under existing laws. Britain’s Online Safety Act 2023 should be beefed up with immediate effect.” Referring to X’s algorithm, which he said prioritised Musk’s own tweets, he writes: “Musk might force his angry tweets to the top of your timeline, but the will of a democratically elected government should mean more than the fury of a tech oligarch – even him.” Ofcom should have the right to demand certain voices, “like Tommy Robinson’s, are deplatformed”, he argues. He continues: “Despite the attempts to position ‘free speech’ as a philosophical conviction, the reason for its popularity among tech firms is pure and simple – it is cheap. “The approach taken by tech firms is less about deeply held principles and more about money – as evidenced by the growing support for Trump in the San Francisco venture capital community. “We’ve hesitated from labelling tech billionaires as oligarchs because the likes of Bill Gates, Mark Zuckerberg and Jack Dorsey wielded their political power gently. Asking oligarchs to be accountable for what their platforms permit is straightforward and entirely possible.”
It’s Time to Take a Second Look at Take-Two Interactive Stock 2024-08-12 13:51:00+00:00 - Take-Two Interactive Software NASDAQ: TTWO is not out of the weeds, but its outlook has grabbed the attention of analysts, who are now driving the consensus estimate to new highs. Takeaways from the FQ1 2025 include mixed results with widening losses offset by a slate of recent releases and the company's most ambitious pipeline in history. The pipeline includes eight major releases and updates, including new versions of flagship games and expanded access to existing ones. At least five games are on track for release by the end of this fiscal year, and the others will likely be released late in the year or early 2026. Take-Two Interactive Software Today TTWO Take-Two Interactive Software $147.29 +2.47 (+1.71%) 52-Week Range $130.34 ▼ $171.59 Price Target $180.62 Add to Watchlist The analysts' response is overwhelmingly bullish and focused on the pipeline. MarketBeat.com is tracking over a half-dozen updates, including an upgrade to Buy from Hold and numerous price target revisions, but none were lowered. The takeaway is that sentiment for this Moderate Buy-rated stock is firming and on the verge of a Strong Buy with a price target that implies a deep value for investors. Get TTWO alerts: Sign Up The lowest analyst price target on record is $151, about 4% higher than the latest closing price, with a chance for a 25% upside at the consensus. Most fresh targets are above consensus, and the $200 high target aligns with the all-time highs. Assuming the company continues to gain traction with the pipeline, the trend in analysts' sentiment should lead to a fresh all-time high by the end of the fiscal year. Take-Two Interactive Rises on Mixed Results: Losses Widen Take-Two Interactive Software Stock Forecast Today 12-Month Stock Price Forecast: $181.81 22.85% Upside Moderate Buy Based on 21 Analyst Ratings High Forecast $200.00 Average Forecast $181.81 Low Forecast $151.00 Take-Two Interactive Software Stock Forecast Details Take-Two Interactive did not have a great quarter in Q1 but did turn a corner, and the outlook is brightening. The $1.34 billion in revenue is up 4% compared to last year, outperforming the consensus estimate by more than 700 basis points as it returns to growth sooner than expected. The strength was driven by an 11% increase in gaming revenue, offset by a 35% decline in ad revenue. Gaming revenue is attributed to strength in the NBA2K franchise, Grand Theft Auto, Toonblast, and the hyper-casual portfolio, including Words with Friends and other non-aggressive games. Bookings, an indication of future revenue, are up 1% across the network but flat on a comp-player basis. The bad news is that the company’s losses widened. The primary culprits are increased selling and marketing costs, general and administrative, depreciation, and taxes. The critical detail is that GAAP losses increased by 27%, leaving the EPS at—$1.52 or $0.15 worse than expected and 25% worse than last year. Guidance is an offsetting factor, but it is not robust. The company reaffirmed its guidance for the year, including low-single-digit net bookings growth this year and next and for losses to persist. Evidence of Take-Two Interactive’s Turn-Around Is in the Balance Sheet Take-Two Interactive is making headway on its turnaround, and the balance sheet and cash flow details evidence this. The company produced a cash-flow positive quarter despite the GAAP losses, allowing it to maintain its low-leverage position at 3x cash and 0.5x equity while building shareholder value. Equity is up 4% and is expected to grow as the year progresses. The price action in TTWO surged more than 4% following the release, confirming support at a critical level. That level coincides with the 2024 lows and may lead to a Strong Buy signal on the weekly chart. As it is, the market is moving higher and on track to reach the $150 level soon. That level is coincident with a cluster of moving averages (and the low end of the analysts' target range) that may provide resistance to higher share prices. If this market can’t get above that level, it may remain range-bound below $150 until later in the year. However, a move above $150 would be bullish and open the door to the $200 region for this technology stock. Before you consider Take-Two Interactive Software, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Take-Two Interactive Software wasn't on the list. While Take-Two Interactive Software currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Three Studies of MDMA Treatment Retracted by Scientific Journal 2024-08-12 13:49:19+00:00 - The journal Psychopharmacology has retracted three papers about MDMA-assisted therapy based on what the publication said was unethical conduct at one of the study sites where the research took place. Several of the papers’ authors are affiliated with Lykos Therapeutics, the drug company whose application for MDMA-assisted therapy to treat post-traumatic stress disorder was rejected last week by the Food and Drug Administration. The company said the research in the retracted papers was not part of its application to the F.D.A. In declining to approve Lykos’s application, the agency cited concerns about missing data and problems with the way the company’s study was designed, according to a statement released by Lykos on Friday. The F.D.A. has asked Lykos to conduct an additional clinical trial of its MDMA-assisted therapy, which would have been the first psychedelic medicine to win approval by federal regulators. Lykos has said it would appeal the decision.
Cirrus Logic Stock Surges on Strong Apple iPhone Upgrade Cycle 2024-08-12 13:40:00+00:00 - Cirrus Logic Today CRUS Cirrus Logic $132.06 -0.79 (-0.59%) 52-Week Range $65.02 ▼ $142.83 P/E Ratio 26.79 Price Target $143.33 Add to Watchlist Cirrus Logic Inc. NASDAQ: CRUS is a semiconductor developer focused on audio and haptic technology. Haptics refer to the touch response feedback you receive, such as the subtle vibrations when tapping on a smartphone screen or the rattle of a video game controller during a firefight. Cirrus Logic’s chips are used in various consumer electronics ranging from audio headphones to augmented and virtual reality headsets, automotive entertainment systems, power supplies, wearables, smartphones, and laptops. The company reported a strong fiscal Q1 2025 earnings report, raising its forward guidance. Since Apple Inc. NASDAQ: AAPL accounts for nearly 87% of its revenues, investors are taking it as a sign of strength for Apple’s upcoming iPhone 16 launch. Get Cirrus Logic alerts: Sign Up Cirrus Logic operates in the computer and technology sector, competing with semiconductor companies like Texas Instruments Inc. NASDAQ: TXN, Synaptics Inc. NASDAQ: SYNA, and Skyworks Solutions Inc. NASDAQ: SWKS. Practical Uses of Cirrus Logic Chips Everywhere Cirrus Logic chips can be found in Sony Inc. NYSE: SNE PlayStation 5 and Microsoft Co NASDAQ: MSFT Xbox game controllers. Haptic feedback has become a game changer when playing video games as they help set the tone during action sequences and combat creating an immersive experience for the gamer. Cirrus Logic chips are found in literally every smartphone and tablet with touchscreens. Cirrus Logic continues to evolve haptic and sensing technology to adapt to slimmer devices with fewer mechanical controls. Cirrus Logic is focused on growing its audio codec, haptics driver, power converter, and boosted amplifier products. Cirrus is also exploring opportunities with laptops and its third-generation camera controller due out later in the year. Is Cirrus Logic Overly Reliant on Apple’s Business? All Apple Inc. iPhones, tablets, and smartwatches carry Cirrus Logic chips. Apple has become even more embedded into Cirrus Logic's business. They've become a larger contributor to total revenues yearly, from 79% in fiscal 2022 to 82% in fiscal 2023 to 87% of total revenues in fiscal 2024. While Apple has been a major contributor to growth, it also puts Cirrus in a vulnerable spot if it loses Apple as a customer. The recent earnings report bodes well for the Apple iPhone 16 launch coming in September 2024. CRUS Stock Forms a V Bottom The daily candlestick chart for CRUS formed a V bottom. The lip line commenced at $132.78 on July 31, 2024, as shares sank to $107.62 in 3 days. CRUS staged a sharp rally off the low, accelerating on the Aug. 7, 2024 earnings gap to retest the lip line. CRUS will either break out above the lip line and form new support there on pullbacks or reject back below it under $132.78. The daily relative strength index (RSI) is stalling around the 56-band. Pullback support levels are at $125.75, $121.00, $112.55, and $107.62. A Home Run Quarter as Cirrus Logic Knocks the Ball Clear Out of the Park Cirrus Logic reported fiscal Q1 2025 EPS of $1.12, crushing consensus analyst estimates for 61 cents by 51 cents. GAAP earnings were 76 cents. Revenues surged 18% YoY to $374.03 million, handily beating $318.41 million consensus estimates. Cirrus Logic has started to ramp up production of its next-generation boosted amplifier and its first-ever 22-nanometer smart codec ahead of new smartphone launches later in the year. These will continue to ship across multiple generations. The legacy codec and amplifier have already shipped over 1 billion and 3.5 billion units, respectively, over the past six years. Raising the Bar with Upside Guidance Cirrus Logic Stock Forecast Today 12-Month Stock Price Forecast: $143.33 7.58% Upside Moderate Buy Based on 7 Analyst Ratings High Forecast $175.00 Average Forecast $143.33 Low Forecast $100.00 Cirrus Logic Stock Forecast Details Cirrus Logic has increased its revenue forecast for fiscal Q2 2025 to between $490 million and $555 million. This updated guidance surpasses the consensus estimate of $485.33 million. Cirrus Logic CEO John Forsyth commented, “We see significant customer demand and engagement around our audio codec, boosted amplifier, haptic driver, and power converter products, supporting our belief that this is a market where Cirrus Logic can enhance the end-user experience, improve the performance of our customers' products, and increase both content per device and market share over time.” Cirrus Logic analyst ratings and price targets are at MarketBeat. There are seven analyst ratings on CRUS stock, comprised of six Buys and one Hold. Consensus analyst price targets point to a 7.9% upside at $143.33. Before you consider Cirrus Logic, 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 Cirrus Logic wasn't on the list. While Cirrus Logic currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Sunil Bharti Mittal: who is the Indian tycoon now BT’s largest shareholder? 2024-08-12 13:33:00+00:00 - As India’s economy has risen in recent decades, so have a clutch of billionaires who control key industries. For Sunil Bharti Mittal, the rise might appear almost foreordained: Bharti is derived from Bharat, the Hindi name for India. Mittal used his middle name for Bharti Enterprises, the conglomerate he started in 1976 as a small manufacturer. But it is in telecoms where he made his fortune as India’s demand for data has boomed. Bharti Airtel counted 400 million Indian customers last year, 150 million in Africa, plus another 60 million in Bangladesh and Sri Lanka. Bharti will become the largest shareholder in BT Group, after agreeing to buy out Patrick Drahi, the art-loving Moroccan-born billionaire whose debt-laden Altice empire is under pressure. Bharti insisted it was not planning a full takeover, but the 24.5% stake will give Mittal significant influence over one of the UK’s most important companies. Mittal already spends much of his time in the UK, according to Fortune India magazine, and he has British financial interests, particularly in hospitality. Bharti owns the famous Gleneagles hotel in Scotland and The Hoxton chain of “budget-luxe” hotels, after purchases led by Mittal’s son-in-law, Sharan Pasricha. Mittal was born in 1957 in India’s Punjab region to Sat Pal Mittal, a politician known as a fundraiser for the Congress party, which dominated Indian politics for a century until the victory of the Bharatiya Janata party under Narendra Modi in 2014. After graduating from Panjab University, Mittal did not follow his father into politics, but instead in 1976 – aged 19 – he started a business making bicycle components. He then launched a series of ventures selling wool blankets, stainless steel surgical equipment and generators. However, in 1985, he moved into telecoms after being convinced of the potential for growth during a visit to Taiwan, according to a profile by Harvard Business School, where he later studied. Mittal (no relation to the steel billionaire Lakshmi Mittal) grew the business by partnering with international companies to grow a mobile network that claims to cover 96% of India’s population. The company expanded into Africa in 2010 through a $10bn (£7.8bn) takeover. Modi’s patronage is often cited as an important factor in the rise of India’s two richest men, Mukesh Ambani, the owner of the rival Reliance Jio mobile network and extensive commodities interests, and Gautam Adani, whose main business is coal. While Mittal’s association is not quite as close, he too has spoken publicly of the influence of India’s prime minister. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Bharti will voluntarily put the BT deal forward for assessment under the UK’s National Security and Investment Act, but the government has previously proved happy to work with the Indian conglomerate. Under Boris Johnson, the UK government controversially joined Bharti in a joint venture to acquire OneWeb, a low-earth orbit satellite company that had gone bankrupt. The then business secretary, Alok Sharma, said Bharti was a “large and trusted investor” in 2020. Mittal has described his investments in “last-mile connectivity” as an attempt to close the world’s digital divide – an honourable aim, but one that could also reap even bigger dividends for those who own the ever-increasing number of connections.
No more fiscal favours? Calls to tax super-rich gain traction around world 2024-08-12 13:16:00+00:00 - Calls for higher taxes on the super-rich are gaining traction and even conservative governments are joining in. In Rome, ministers in Giorgia Meloni’s rightwing administration have doubled a “flat tax” on foreign income from €100,000 to €200,000 (about £85,500-£171,000) that a previous government brought in to attract wealthy investors. Italy’s low tax on foreigners and their income gained abroad did its job after 1,186 rich individuals adopted the country as their tax residency, but protests this year showed it was out of line with the prevailing mood. The country’s economy minister, Giancarlo Giorgetti, said Italy was now against the idea of countries competing with each other to offer “fiscal favours” to the wealthy. The decision came only weeks after 19 former heads of state – including the former prime minister of Australia Julia Gillard, and Dominique de Villepin, who had the same role during Jacques Chirac’s presidency – signed a joint letter calling for heavier taxes on wealth, and a meeting of G20 finance ministers that agreed more needed to be done to tax the global elite. While Giorgetti didn’t mention the UK, another prompt for the U-turn was Rishi Sunak’s partial abolition of tax breaks for wealthy foreign residents, known as non-domiciled status. Italy’s favourable treatment became an embarrassment for Meloni, and even more so when Keir Starmer promised an incoming Labour government would take an even tougher stance on non-doms should it be elected. The rhetoric from Joe Biden has also helped the cause of a global wealth tax. The US president made an attack on the super-wealthy a central theme of his re-election campaign before stepping aside for Kamala Harris as the Democratic party candidate. “I don’t think I have seen such big a transformation in the narrative around the tax on wealth as I have in the last three years,” said Rebecca Gowland, executive director of Patriotic Millionaires UK, a pressure group campaigning for an end to extreme wealth. “And what happened at the G20 is incredibly exciting. There is no concrete policy, but there is agreement from a wide range of countries that the issue needs to be taken seriously and that is a massive step forward,” she added. The G20, which was formed after the 2008 crash to coordinate efforts to rebuild a battered global economy, has members from all parts of the globe, ranging from Saudi Arabia, Mexico, Turkey and Indonesia to the US, China, France and the UK. Brazil is the current host and the country’s president, Luiz Inácio Lula da Silva, is credited with putting a tax on wealth at the top of the group’s agenda. Da Silva invited the French economist Gabriel Zucman to advise the G20 on how to tax the super-wealthy in a way that all countries could coalesce around. Zucman’s report – Minimum effective taxation standard for ultra-high net worth individuals – said billionaires were currently paying an average of 0.3% tax on their wealth. An effective tax rate is the amount calculated after all the loopholes and legitimate avoidance measures used by the rich are included. Zucman said the average wealth of the top 0.0001% of individuals had grown by 7.1% a year on average between 1987 and 2024, increasing the share of global wealth of billionaires from 3% to 14%. Describing his plan as a top-up to income tax, so that billionaires paid an annual tax bill worth at least 2% of their wealth, Zucman said progressive taxation was a pillar of democracy. A minimum tax equal to 2% of wealth on global billionaires would raise $200bn-$250bn (£150bn-£200bn) a year in tax revenue from about 3,000 taxpayers globally. Extending the tax to centimillionaires, who have $100m or more in assets, would generate an additional $100bn-$140bn, Zucman’s report said. Norway has applied a tax on wealth for many years. As one of the world’s richest nations in terms of its wealth a person, this tax has often been a subject of debate. In 2023, a year after Oslo’s left-leaning government increased the rate from 0.85% to 1.1%, local newspapers reported an exodus of the super rich, some of them to Switzerland. Spain re-introduced a wealth tax at the same time as Norway upped its own, sparking the same headlines about a caravan of millionaires leaving for more hospitable countries. Spain’s wealth tax applies to fortunes greater than €3m and can reach 3.5% depending on individuals’ wealth. Many Swiss citizens have argued that its wealthy residents have enjoyed a free ride for too long. Green campaigners argue the country is already suffering some of the worst effects of the climate crisis and the government, renowned for its low taxes, should spend more to reduce carbon emissions. After the influx of Norwegian billionaires and a heated debate about who should be paying more tax to fund climate-friendly initiatives, the youth section of the Swiss Social Democrats (Juso) proposed an inheritance tax of 50% on estates worth more than50m Swiss francs (£45m) with the money designated for the ecological restructuring of the economy. Juso collected 130,000 signatures in support of its “Initiative for a Future” petition, crossing the 100,000 threshold set by the Swiss parliament for a nationwide referendum. In response the Swiss government said it would campaign against the tax when a referendum is held within the next two years, but with the ice melting on the Swiss Alps, politicians are under pressure to say where they will get the money from to tackle the climate crisis, if not from the super rich. Oxfam, which produces an annual global tax report, said it supports the G20 initiative, but wants it to go further than just tackling billionaires such as the former Microsoft boss Bill Gates, Bernard Arnault, the head of the LVMH luxury brand, Amazon’s Jeff Bezos and the German billionaires behind the Lidl and Aldi supermarket chains, the Schwarz and Albrecht families. Many governments fear chasing away wealthy investors to jurisdictions outside the G20. Singapore and the United Arab Emirates have financial centres and low tax regimes that have encouraged many wealthy people to relocate in recent years. Christian Hallum, a senior tax policy adviser at Oxfam, said the G20 needed to resist the threat of an exodus. “Everyone in the top 1% has been doing extremely well for decades and paying lower effective tax rates than most households,” he said. Oxfam wants centimillionaires to be included and the extra tax money to be targeted at anti-poverty measures. “We are all incredibly excited about what happened at the G20 finance ministers meeting and the intention to tax the super rich. But while 2% is better than nothing, it is at the low end of our ambitions. There needs to be a huge effort to tackle global poverty and we need to cast the net wider,” he said.
The Trade Desk : Premium Digital Ad Demand Fuels Record Growth 2024-08-12 13:05:00+00:00 - The Trade Desk Inc. NASDAQ: TTD is the largest independent demand-side platform (DSP) for advertising buyers. Its self-service, cloud-based advertising technology (AdTech) platform, Kokai, enables advertisers and agencies to programmatically manage digital advertising campaigns across various channels, including video, display, audio, and connected TV (CTV). The Trade Desk is thriving from the recovery in demand-side digital advertising, which accommodates ad buyers. The supply side continues to struggle, as evidenced by the weak performance of Pubmatic Inc. NASDAQ: PUBM. Get Trade Desk alerts: Sign Up The Trade Desk runs an asset-light business because it doesn't actually own any ad inventory but plays the objective middleman data-driven platform that facilitates the transactions. Artificial intelligence (AI) features help optimize ad bidding, targeting and performance. The Trade Desk operates in the computer and technology sector, competing with adtech platforms like Alphabet Inc. NASDAQ: GOOGL, Google Ads, Magnite Inc. NASDAQ: MGNI and Pubmatic Inc. NASDAQ: PUBM. Connected TV is Growing Like Gangbusters Trade Desk Today TTD Trade Desk $97.04 -2.26 (-2.28%) 52-Week Range $60.23 ▼ $102.67 P/E Ratio 242.61 Price Target $107.26 Add to Watchlist If you watch streaming videos and movies on a smart TV or a Roku Inc. NASDAQ: ROKU streaming device or Amazon Inc. NASDAQ: AMZN Firestick, then you’re using a connected TV (CTV). CTV refers to devices that receive streaming video through an internet connection to be watched on your TV. CTV enables viewers to watch ad-supported video content, movies and videos. CTV devices include smart TVs, streaming sticks, set-top boxes and gaming consoles like the Sony Inc. NYSE: SNE PlayStation or Microsoft Co. NASDAQ: MSFT Xbox. The advent of streaming services and notable ad-supported video-on-demand (AVOD) channels has helped CTV growth accelerate, driving the boom in digital advertising dollars. The Trade Desk is the King of CTV and Gains More UID2 Penetration The Trade Desk offers the largest CTV inventory marketplace in the world. Since it is independent and doesn’t compete in content or supply, premium publishers favor it. The Trade Desk developed a new open-source identity framework called UID2 to replace third-party cookies to identify viewers and measure ad performance. Due to privacy concerns, Apple Inc. NASDAQ: AAPL and Google have phased out third-party cookies. In Q2 2024, Netflix Inc. NASDAQ: NFLX announced it would expand ad buying capabilities to include The Trade Desk as one of its main programmatic partners for advertisers. FOX Co. NASDAQ: FOX expanded its partnership through the integration of UID2 and OpenPath across FOX brands and the AdRise technology platform. E.W. Scripps will be the first CTV publisher to adopt The Trade Desk’s single sign-on solution, OpenPass. Roku will adopt UID2 to enable advertisers to implement more precise targeting. LG Ad Solutions is integrating UID2 so advertisers can leverage first-party data across LG's audience network. TTD Stock Forms a V Bottom The daily candlestick chart for TTD illustrates a V-bottom pattern. TTD fell sharply from $102.39 to $77.11 but surged back up to $99.30 in 4 days, driven by its Q2 2024 earnings report. TTD will either reject or pierce through as it bounces back to the $102.39 lip line. If it pierces through, then it will peak and pull back for a retest. That retest will determine if a new support level at the prior resistance will have formed. The daily relative strength index (RSI) is rising to the 61-band. Pullback support levels are at $94.63, $90.00, $84.33 and $80.54. Q2 2024 Top and Bottom Line Beats and Q3 Forecasts Raised The Trade Desk reported Q2 2024 EPS of 39 cents, beating consensus estimates for 36 cents by 3 cents. Revenues jumped 26% YoY to $584.55 million, beating $578.03 million consensus analyst estimates. Adjusted EBITDA rose 34.4% YoY to $242 million, exceeding $223 million prior guidance. Customer retention remained over 95% in the quarter. The Trade Desk raised its Q3 2024 revenue guidance to be at least $618 million, beating $604.70 million consensus analyst expectations. Adjusted EBITDA will be around $248 million. Trade Desk Stock Forecast Today 12-Month Stock Price Forecast: $107.26 8.55% Upside Moderate Buy Based on 28 Analyst Ratings High Forecast $135.00 Average Forecast $107.26 Low Forecast $57.00 Trade Desk Stock Forecast Details The Trade Desk Co-Founder and CEO Jeff Green commented, “As Kokai ramps, we're intuitively surfacing value for advertisers, integrating data into every decision, advancing the full power of AI as a co-pilot, and enabling advertisers to maximize the potential of their first-party data.” Green concluded, “With ongoing innovations in Kokai, the widespread adoption of UID2, and the expanding use of retail data, we will continue to deliver exceptional value to advertisers and grow our leadership in key high-growth markets such as CTV." The Trade Desk analyst ratings and price targets are at MarketBeat. There are 28 analyst ratings on TTD stock, comprised of 1 Strong Buy, 24 Buys, 2 Holds and 1 Sell. Before you consider Trade Desk, you'll want to hear this. 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Novavax Plunges on Earnings Miss: Falling Knife or Buying Opp? 2024-08-12 12:55:00+00:00 - Novavax Inc. NASDAQ: NVAX is a biotechnology company that focuses on developing and commercializing vaccines for serious infectious diseases. Its most significant vaccine, Nuvaxovid, is for COVID-19. The hype surrounding the potential for Nuvaxovid drove Novavax shares as high as $331.68 in February 2021. However, the reality of missteps resulting in being “late to the party” caused shares to crater to $3.53 by February 2024. Shares have since surged as high as $23.86 in June 2024 on a $1.2 billion licensing deal with Sanofi NASDAQ: SNY before sinking under $10.00 on its Q2 2024 earnings report. Novavax operates in the medical sector, competing with COVID-19 vaccine makers Pfizer Inc. NYSE: PFE, Moderna Inc. NASDAQ: MRNA and BioNTech SE NASDAQ: BNTX. Get Novavax alerts: Sign Up The Sanofi Deal That Raised Novavax Stock From the Dead While COVID-19 has been mostly in the rearview mirror in the United States, Novavax is still trying to capitalize on its vaccines. On March 10, 2024, Novavax surprised investors and mostly the short sellers with a surprise deal with French Pharmaceutical giant Sanofi. The deal has the potential to reap up to $1.2 billion in revenues. This announcement sent shares surging from $4.20 up to $13.50 in a day. The Deal Has Potential For Up to $1.27 Billion in Revenues Novavax Today NVAX Novavax $11.85 +0.25 (+2.16%) 52-Week Range $3.53 ▼ $23.86 Price Target $16.00 Add to Watchlist The deal comprised of an upfront payment of $500 million with the potential for $770 million contingent on achieving various development, regulatory and launch milestones. Sanofi took a 5% equity stake for $70 million in Novavax. Sanofi will license Novavax’s adjuvanted COVID-19 vaccine starting in 2025. Adjuvanted refers to the added substance Matrix-M, which is intended to boost the immune response. Sanofi will pay tiered double-digit royalties on Sanofi sales of Novavax's COVID-19 vaccine. Sanofi will also pay up to $200 million in milestone payments and mid-single-digit royalties for additional Sanofi vaccine products developed with Novavax's Matrix-M technology. Novavax is Still Trying To Capitalize on COVID-19 The deal still enables Novavax to develop its combination COVID-Influenza (CIC) vaccine, which will start Phase 3 clinical studies. Novavax hopes to get it approved for the 2026 flu season. It also has a preclinical respiratory syncytial virus (RSV) vaccine in development. Novavax has an updated COVID-19 vaccine specifically targeting the KP.2 and KP.3 variants awaiting FDA approval. Novavax filed with Health Canada for authorization of its 2024-2025 Formula COVID-19 vaccine (NVX-CoV2705) to be used for individuals 12 and older. It's worth noting that Novavax has been operating for 35 years and only has FDA approval for its COVID-19 vaccine. NVAX Stock Forms a Head and Shoulders Pattern The daily candlestick chart for NVAX indicated a bearish head and shoulders pattern. This pattern is formed of 3 peaks. The left shoulder peaked at $17.40. The head is the highest peak at $23.86. The right shoulder peaked at $17.81. The neckline at $10.15 was breached on the Q2 2024 earnings gap down to $8.87, but shares surged back above the neckline to recover back to $11.60. The high 22.36% short interest likely triggered short covering. The daily relative strength index (RSI) is flat at the 42-band. Pullback support levels are at $10.15, $8.61, $7.49 and $6.00. Novavax Underwhelms with Its Q2 2024 Earnings Report Novavax Stock Forecast Today 12-Month Stock Price Forecast: $15.80 36.09% Upside Hold Based on 5 Analyst Ratings High Forecast $23.00 Average Forecast $15.80 Low Forecast $9.00 Novavax Stock Forecast Details Novavax reported Q2 2024 EPS of 9 cents, missing consensus estimates by 68 cents. Revenues dropped 2.1% YoY to $415.5 million missing consensus estimates for $415.5 million. Product sales were $19.9 million, compared to $285.2 million in the year-ago period. The FDA notified Novavax that its BLA for prototype vaccine NVX-CoV2601 was accepted for review with an action date in April 2025. Its CIC vaccine is on track to initiate a Phase 3 trial in Q4 2024. As of January 1, 2025, Sanofi assumed primary commercial responsibility for their updated 2024-2025 formula COVID-19 vaccine (NVX-CoV2705) in the United States, Europe and selected major markets. Novavax Cuts Guidance Novavax anticipates lower vaccine deliveries in 2024, resulting in lowering its full 2024 revenue guidance to $700 million to $800 million, down from previous guidance of $970 million to $1.17 billion versus consensus estimates of $937.2 million. Novavax CEO John Jacobs commented, “Rather than focus our efforts on seasonal commercial execution of a single vaccine asset, we will instead invest our time, energy and capital on the development of an expanded pipeline that uses our recombinant nanoparticle technology platform to develop new assets, focused on infectious disease and respiratory as well as potentially vaccines in other disease or areas and categories.” Novavax analyst ratings and price targets are at MarketBeat. There are 5 analyst ratings on NVAX stock, comprised of 2 Buys, 2 Holds and 1 Sell. Consensus analyst price targets are 38% higher at $16.00. Before you consider Novavax, 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 Novavax wasn't on the list. While Novavax currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Investors Brace for Another Big Week 2024-08-12 12:27:06+00:00 - Why markets are still worried A sense of calm has returned to global markets on Monday, but the economic conditions that triggered last week’s roller coaster swings are still on many minds ahead of a pivotal week. Here’s the latest: S&P 500 futures were up slightly after fears of a slowdown in growth and hiring rocked the benchmark index last week. Investors endured both a stomach-churning rout on Monday and a bounce-back rally on Thursday. Despite that, the S&P 500 ended the week down just 0.04 percent. Investors rushed back into tech stocks even as a “bubble” warning loomed about Nvidia, the chipmaker at the heart of the artificial intelligence boom. Stocks in Europe and Asia gained on Monday, as did the price of oil and crypto. The big event this week is Wednesday’s inflation data. Economists forecast that the Consumer Price Index will show a slight uptick. Yet Wall Street doesn’t think that will dissuade the Fed from cutting interest rates at its next meeting in September. That said, Michelle Bowman, a Fed governor, still sees inflation as “uncomfortably above the committee’s 2 percent goal.” With markets on edge, traders see a big potential swing in the S&P 500 after the report comes out. Interest rates are a concern for consumers, too. If the central bank doesn’t “start taking them down relatively soon, you could dispirit the American consumer,” Brian Moynihan, the C.E.O. of Bank of America, warned in a CBS News interview on Sunday. Markets are still on edge. Early last week, the VIX, Wall Street’s so-called fear gauge, spiked near to levels last reached during the early days of the Covid pandemic and the 2008 global financial crisis. Investors are anxious after tepid jobs and manufacturing data suggested a slowdown was on the horizon.
U.S. Officials to Visit China for Economic Talks as Trade Tensions Rise 2024-08-12 09:03:29+00:00 - A group of senior Biden administration officials is traveling to Shanghai this week for a round of high-level meetings intended to keep the economic relationship between the United States and China on stable footing amid mounting trade tensions between the two countries. The talks will take place on Thursday and Friday and are being convened through the U.S.-China Financial Working Group, which was created last year. Officials are expected to discuss ways to maintain economic and financial stability, capital markets and efforts to curb the flow of fentanyl into the United States. Although communication between the United States and China has improved over the past year, the economic relationship remains fraught because of disagreements over industrial policy and China’s dominance over green energy technology. The Biden administration imposed new tariffs in May on an array of Chinese imports, including electric vehicles, solar cells, semiconductors and advanced batteries. The United States is also restricting American investments in Chinese sectors that policymakers believe could threaten national security. The U.S. delegation, which departed on Monday, is being led by Brent Neiman, the Treasury Department’s assistant secretary for international finance. He will be joined by officials from the Federal Reserve and the Securities and Exchange Commission. They are expected to meet with the People’s Bank of China’s deputy governor, Xuan Changneng, and other senior Chinese officials.