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Disneyland workers vote to authorize strike, citing unfair labor practice during bargaining period 2024-07-20 13:39:00+00:00 - Thousands of workers at Disney's theme parks and resorts in Southern California announced late Friday night that they have authorized a strike, citing alleged unfair labor practices during recent contract negotiations. Four unions representing more than 14,000 workers at Disneyland, Disney California Adventure, Downtown Disney and Disney-owned hotels announced the walkout, saying its members overwhelmingly voted in favor after hundreds of alleged labor violations by Disney "interfered with the unions getting the fair contract cast members deserve." They said of the members who participated in the vote, 99% voted in favor of authorizing the strike; however, an exact number was not released. "Today's overwhelming unfair labor practice strike authorization vote sends a clear message to the company: we are stronger together and will not be divided by scare tactics," the Disney Workers Rising Bargaining Committee said in a statement on Friday, adding: "We make the theme parks' profits and the magic you find across the resort. But instead of rewarding our hard work and dedication, Disney is intimidating, surveilling, and unlawfully disciplining members, harming our negotiations and our ability to get the contract we deserve." Over 400 Disney cast members rally outside the Disneyland Main Entrance Ahead of ULP Strike Authorization Vote Disneyland in Anaheim on Wednesday, July 17, 2024. Allen J. Schaben / Los Angeles Times via Getty Images The authorization does not mean a strike will happen immediately and both sides could reach a deal. If a strike does happen, it would be the first at Disneyland in 40 years. "We are fed up with being pushed around by Disney and are ready to fight back against its unfair labor practices," David Hernandez, who is a member of the bargaining committee and monorail operator, said in a statement. The unions said they have been negotiating a new contract with Disney since April 24. Nearly two months later, on June 10, Disney workers announced that they had filed unfair labor practice charges against the company. The charges, concerning more than 675 workers, are now being investigated by the National Labor Relations Board. Ahead of the vote, hundreds of Disneyland employees protested outside the world-famous theme park on July 17, calling for better wages and denouncing anti-union practices. Disney employees hold up signs as they rally outside the main entrance of Disneyland Resort in Anaheim, California, on July 17, 2024, ahead of a planned strike authorization vote. FREDERIC J. BROWN/AFP via Getty Images A Disneyland representative told CBS News in a statement that the strike authorization is not unusual as part of a negotiation process and that the company looks forward to continuing discussions in upcoming meetings on Monday and Tuesday. "We greatly appreciate the important roles our cast members play in creating memorable experiences for our guests, and we remain committed to reaching an agreement that focuses on what matters most to them while positioning Disneyland Resort for growth and job creation," the representative said, adding that the parks continue to welcome guests. The four unions that represent the workers are the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) Local 83; the Service Employees International Union-United Service Workers West (SEIU-USWW); the Teamsters Local 495; and the United Food and Commercial Workers (UFCW) Local 324. They said they are seeking fair wages, a fair attendance policy, seniority increases and safe parks for cast members. The unions cited economic hardship for their members, including food and housing insecurity. "Instead of rewarding our hard work and dedication, Disney is intimidating, surveilling, and unlawfully disciplining members, harming our negotiations and our ability to get the contract we deserve," the bargaining committee said. The contract for cast members at Disneyland expired on June 16 while the contract for Disney California Adventure and Downtown Disney workers expires on September 30. The bargaining committee said it is committed to negotiations on Monday and Tuesday, but said the strike authorization allows it to call a strike at any time.
Why millions are trying alternatives to Big Pharma's weight loss drugs 2024-07-20 11:56:00+00:00 - Pharmacist Mark Mikhael has lost 50 pounds over the past 12 months. He no longer has diabetes and finds himself "at my ideal body weight," with his cholesterol below 200 for the first time in 20 years. "I feel fantastic," he said. Like millions of others, Mikhael credits the new class of weight loss drugs. But he isn't using brand-name Wegovy or Zepbound. Mikhael, CEO of Orlando, Florida-based Olympia Pharmaceuticals, has been getting by with his own supply: injecting himself with copies of the drugs formulated by his company. He's far from alone. Mikhael and other industry officials estimate that several large compounding pharmacies like his are provisioning up to 2 million American patients with regular doses of semaglutide, the scientific name for Novo Nordisk's Wegovy, Ozempic and Rybelsus formulations, or tirzepatide, the active ingredient in Eli Lilly's Zepbound and Mounjaro. The drug-making behemoths fiercely oppose that compounding business. Novo Nordisk and Lilly lump the compounders together with internet cowboys and unregulated medical spas peddling bogus semaglutide, and have high-powered legal teams trying to stop them. Novo Nordisk has filed at least 21 lawsuits nationwide against companies making purported copies of its drugs, said Brianna Kelley, a spokesperson for the company, and urges doctors to avoid them. The FDA, too, has cautioned about the potential danger of the compounds, and leading obesity medicine groups starkly warn patients against their use. But this isn't an illegal black market, though it has shades of gray. Oona Tempest/KFF Health News The FDA allows and even encourages compounding pharmacies to produce and sell copycats when a drug is in short supply, and the wildly popular GLP-1 drugs have enduring shortages — first reported in March 2022 for semaglutide and in December 2022 for tirzepatide. The drugs have registered unprecedented success in weight loss. They are also showing promise against heart, kidney and liver diseases and are being tested against conditions as diverse as Alzheimer's disease and drug addiction. In recent years, the U.S. health care system has come to depend on compounding pharmacies, many of which are run as nonprofits, to plug supply holes of crucial drugs like cancer medicines cisplatin, methotrexate and 5-fluorouracil. Most compounded drugs are old, cheap generics. Semaglutide and tirzepatide, on the other hand, are under patent and earn Novo Nordisk and Lilly billions of dollars a year. Sales of the diabetes and weight loss drugs this year made Novo Nordisk Europe's most valuable company and Lilly the world's biggest pharmaceutical company. While the companies can't keep up with demand, they heatedly dispute the right of compounders to make and sell copies. Lilly spokesperson Kristiane Silva Bello said her company was "deeply concerned" about "serious health risks" from compounded drugs that "should not be on the market." Yet marketed they are. Even Hims & Hers Health — the telemedicine prescriber that got its start with erectile dysfunction drugs — is now peddling compounded semaglutide. It ran ads for the drugs during NBA playoff games. (According to a Hunterbrook Media report, Hims & Hers' semaglutide supplier has faced legal scrutiny.) The compounded forms are significantly cheaper than the branded drugs. Patients pay about $100 to $450 a month, compared with list prices of roughly $1,000 to $1,400 for Lilly and Novo Nordisk products. Five compounders and distributors interviewed for this article said they conduct due diligence on every lot of semaglutide or tirzepatide they buy or produce, upholding standards of purity, sterility and consistency similar to those practiced in the commercial drug industry. Compounders operate under strict federal and state standards, they noted. However, the raw materials used in the compounded forms may differ from those produced for Novo Nordisk and Lilly, said GLP-1 co-inventor Jens Juul Holst, of the University of Copenhagen, adding that care must be taken in drug production lest it cause potentially harmful immune reactions. To date, according to FDA spokespeople, reports of side effects from taking compounded versions haven't raised major alarms. But everyone with knowledge of the industry, including the compounders themselves, worry that a single batch of a poorly made drug could kill or maim people and destroy confidence in their business. "I liken the compounding industry to the airline industry," Mikhael said. "When you have an airline crash, it hurts everybody." Warnings from the past The industry endured just such a catastrophe in 2012, when the New England Compounding Center released a contaminated injectable steroid that killed at least 64 people and harmed hundreds more. In response, Congress and the FDA had strengthened oversight. Mikhael's company is an outsourcing facility, or 503B compounding pharmacy — so-named for a section of the 2013 law that set new requirements for drug compounders. The companies are licensed to make slightly different versions of FDA-approved drugs in response to shortages or a patient's special needs. The law created two classes of compounding pharmacies: The FDA regulates the larger 503B compounders with standards like commercial drug companies, while 503A pharmacies make smaller lots of drugs and are largely overseen by state boards of pharmacy. The 503A facilities also are producing compounded semaglutide and tirzepatide for hundreds of thousands of patients. Like the 503Bs, these operations take the active ingredient, produced as a powder in FDA-registered factories, mostly in China, then reconstitute it with sterile water and an antimicrobial in small glass vials. Together, the compounding pharmacies may account for up to 30% of the semaglutide sold in the U.S., Mikhael said, although he cautions that is a "wild ballpark figure" since no one, including the FDA, is tracking sales in the industry. The compounders say the companies should increase production if they're worried about competition. Like the dozens of other drugs they produce for hospitals and medical practices, the compounders say, the two diet drugs are essential products. "If you don't want a 503B facility to make a copy, it's pretty simple: Don't go short," said Lee Rosebush, chair of a trade association for 503B pharmacies. "FDA created this system because these are necessary drugs." Novo Nordisk hasn't specified why it can't keep up with demand, but the bottleneck apparently lies in the company's inability to fill and sterilize enough of its special drug auto-injectors, said Evan Seigerman, a managing director at BMO Capital Markets. The company announced June 24 that it was investing $4.1 billion in new production lines at its Clayton, North Carolina, site. The FDA last year issued a warning over procedural violations at the site and separate cautions at an Indiana facility that Novo Nordisk took over recently. Compounding for Dummies At least 28 companies mostly in China, are registered with the FDA to produce or distribute semaglutide. At least half the companies have entered the market in the past 12 months, driving the raw material's price down by 35%, according to Scott Welch, who runs a 503A pharmacy in Arlington, Virginia. Compounders can buy powdered semaglutide from some U.S. distributors for less than $4,000 a gram, said Matthew Johnson, president and CEO of distributor Pharma Source Direct. That comes out to as little as $10 per weekly 2.5-microgram dose. While Ozempic or Wegovy patients use a Novo Nordisk device to inject the drug, patients using compounded products draw them from a vial with a small needle, like the device diabetics use for insulin. Some medical practices provide the compounded drug to patients as part of a weight loss package, with markups. Last July, Tabitha Ries, a single mother of six who works as a home health care aide in Garfield, Washington, found an online clinic that charged her $1,000 for three months of semaglutide along with counseling. She has lost 35 pounds. She gets the drug from Mindful Weight Loss, a mostly telehealth-based operation led by physician Vivek Gupta of Manhattan Beach, California. Gupta said he's prescribed the weight loss drugs to 1,500 patients, with about 60% using compounded versions from a 503A pharmacy. He hasn't seen any essential difference in patients using the branded and compounded forms, although "some people say the compounding is a little less effective," Gupta said. There's some risk in using the non-FDA-approved product, he acknowledged, and he requires patients to sign an informed consent waiver. "Nothing in life is without risk, but I would also argue that the status quo is not safe for people who need the medicine and can't get it," he said. "They're constantly triggered by all this food that's causing their weight to go up and their sugar to go high, increasing their insulin resistance and affecting their limbs and eyes." Compounding semaglutide is a helpful sideline for pharmacists like him, Welch said, especially given the pinch on drug sale revenue that has led many independents to close in recent years. He figures he earns 95% of his revenue from compounding drugs, rather than traditional prescriptions. It's important to distinguish compounded semaglutide from unregulated powders sold as "generic Ozempic" and the like, which may be contaminated or counterfeit, said FDA spokesperson Amanda Hils. But since compounded forms of the drug are not FDA-approved, those who make, prescribe or use them also should have "an increased level of responsibility or awareness," she said. Corporate battles Novo Nordisk and Lilly, in lawsuits each company has filed against competitors, say their own testing has found bacteria and other impurities in products made by compounding pharmacies. The companies also report patent infringement, but compounders, pointing to the FDA loophole for drugs in shortage, appear to have defeated that argument for now. When the FDA removes the drugs from the shortage list, 503B compounders must immediately stop selling them. Smaller compounders may be able to produce their products for a reduced number of patients, said Scott Brunner, CEO of the Alliance for Pharmacy Compounding, which represents 503A compounders. The evaporation of the compounded drug supply could come as a shock to patients. "I dread it," said David Wertheimer, an internist in Franklin Lakes, New Jersey, who prescribes compounded semaglutide to some patients. "People are not going to be able to plunk down a grand every month. A lot of people will go off the drug, and that's a shame." KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling and journalism.
Why This AI Stock is Rising Despite Tech Sell-Off 2024-07-20 11:07:00+00:00 - There’s a rotation away from technology stocks, but that message hasn’t dampened the optimism for retail investors in Palantir Technologies Inc. NYSE: PLTR. Shares of the AI and big data company are up 67% in 2024 and 11% in the 30 days ending July 19, 2024. Palantir Technologies Today PLTR Palantir Technologies $28.58 -0.06 (-0.21%) 52-Week Range $13.68 ▼ $29.83 P/E Ratio 238.19 Price Target $21.32 Add to Watchlist But the question is why? The answer could simply be a case of FOMO by institutions (more on that later). It could also be the realization that if interest rates come down, it will reduce concerns about corporate spending on AI going down. Get Palantir Technologies alerts: Sign Up That would be bullish for PLTR stock, not because Palantir has a debt problem but because it greases the wheels of the global economy. Here are three other reasons to consider PLTR stock. Institutions May Be Playing Catch-Up The price movement in PLTR stock over the past few years is still primarily coming from a committed (some would say fanatical) base of retail investors. Only 45% of the stock’s float is owned by institutions. However, institutions mostly ignored the stock when it was trading under $10 per share just two years ago. I say mostly because, in the second quarter of 2023, institutions were heavy buyers of PLTR. That also corresponded with the stock moving sharply above $10 per share. Palantir Technologies MarketRank™ Stock Analysis Overall MarketRank™ 1.94 out of 5 Analyst Rating Reduce Upside/Downside 25.4% Downside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.59 Insider Trading Selling Shares Projected Earnings Growth 37.50% See Full Details However, institutions were mostly on the sidelines for this recent run-up, preferring other SaaS companies such as Snowflake Inc. NYSE: SNOW. Now that PLTR has soared to over $28 per share, many of those same institutions say that PLTR stock is overvalued. It may be by many fundamental metrics. Future earnings reports will show if the company can grow into that valuation. But in many cases, institutions just hope to shake out some loose hands to grab shares at a better price. While they wait, they may find out that, much like NVIDIA Corporation NASDAQ: NVDA, they have to fish where the fish are at a certain point. And with PLTR stock being relatively unaffected by the shift from tech, Palantir is a big fish in that pond. This Analyst Just Raised His Price Target for PLTR Stock Dan Ives of Wedbush is one of the biggest Palantir bulls. Earlier this year, he referred to the company as the Lionel Messi of AI. That’s a big claim, but Ives recently doubled down on his bullish outlook for PLTR stock. On July 18, Ives raised his bull case target price for Palantir to $50 from $35. Posting on X, Ives remarked, “With AI spending taking up more spending in IT budgets as more organizations learn how to properly implement this tech, we believe the Messi of AI Palantir is in a prime spot to continue expanding its pipeline as AIP is front and center...” Inclusion in the S&P 500 Would Cement PLTR Stock’s Bonafides In June, the S&P 500 Index opted not to include Palantir in its quarterly rotation. But the feeling then and now is that including Palantir is a matter of when not if. When that happens, many institutions that are still on the sidelines will jump in. When they do, if Ives is correct, and if institutions buy in, it’s go time. Investors may want to start a position before the company reports earnings on August 5. Palantir Technologies Inc. (PLTR) Price Chart for Sunday, July, 21, 2024 Before you consider Palantir Technologies, 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 Palantir Technologies wasn't on the list. While Palantir Technologies currently has a "Reduce" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
MarketBeat Week in Review – 7/15 - 7/19 2024-07-20 11:00:00+00:00 - Stocks took a breather after rallying sharply to start the week. For now, this feels like a normal pullback that will leave room for stocks to move higher. But that could change as earnings season starts to ramp up. Investors will pay close attention to see if corporate guidance aligns with an expected rate cut in September. That guidance will also help investors decide if the long-awaited sector rotation is underway. And, if so, what sectors are likely to post the largest gains? Next week, investors will get the latest read on the Personal Consumption Expenditures (PCE) Index. This is the Federal Reserve’s preferred data point for inflation. If the number confirms that inflation is cooling, it will add further momentum for a rate cut in September. Get Alibaba Group alerts: Sign Up The takeaway for investors is to expect more volatility in the weeks and months ahead. And know that you can count on the MarketBeat team of analysts to point you to the opportunities that volatility can create. Here are some of our most popular articles from this week. Articles by Jea Yu Chinese stocks have been among the worst performers, including Alibaba Group Holding Ltd. NYSE: BABA. The stock is down 75% from its all-time high but has shown signs of a turnaround in recent months. Jea Yu gives investors five reasons why it may be time to invest in BABA stock. Yu also wrote about the recent manufacturing agreement sending QuantumScape Co. NYSE: QS stock higher. The maker of solid-state batteries continues to move closer to initial production, and this landmark deal ensures there will be a market ready for its products. The rising cost of insurance is one of the latest impacts of inflation. That’s one reason Lemonade Inc. NYSE: LMND is worth a close look. It’s never easy to disrupt an industry with a business model as firmly entrenched as insurance. Still, Yu explains why Lemonade’s focus on artificial intelligence (AI) may cause investors to take notice, particularly if the company becomes profitable. Articles by Thomas Hughes Several MarketBeat analysts are monitoring sector rotation. In an article this week, Thomas Hughes explains sector rotation, why it’s happening now, and what stocks and sectors you should consider for your portfolio. Blue chip stocks are expected to rally as investors look for safety and growth outside technology stocks. That’s likely to make Johnson & Johnson NYSE: JNJ look attractive. After a strong quarter, analysts and investors are forecasting a significant upside for JNJ stock. And while some investors are looking for growth, many will seek out the value in dividend stocks. Hughes writes about three dividend aristocrats that offer investors a 5% yield to go along with a healthy outlook for growth. Articles by Sam Quirke While there is some noticeable rotation out of tech stocks, Sam Quirke wrote two articles this week reminding investors they can still find opportunities in the sector. For example, Apple Inc. NASDAQ: AAPL was written off by many investors at the beginning of the year. But the stock is rallying hard in the second quarter, and recent upgrades suggest more upside for AAPL stock. By contrast, Quirke notes that investors in Microsoft Corporation NASDAQ: MSFT have watched the stock drop in recent weeks. However, the stock was one of the best-performing stocks in the first half of the year, and all the catalysts that moved the stock high remain in place. This is why investors will watch the company’s upcoming earnings report for news that could make this an attractive dip. Articles by Chris Markoch NVIDIA Corporation NASDAQ: NVDA remains one of the most popular stocks in 2024. This week, Chris Markoch explains what’s causing the recent pullback in NVDA stock, why generative AI is a long-term bullish catalyst for the stock, and why lower interest rates could also negatively impact NVDA stock. Markoch also wrote about IDEAYA Biosciences Inc. NASDAQ: IDYA, a mid-cap biotechnology stock that is a leader in the emerging field of precision medicine. The company’s stock was recently up 16% after reporting positive news in a recent Phase 2 clinical trial and what it could mean for IDYA stock moving forward. Articles by Ryan Hasson It's essential to watch for stocks that are likely to outperform in the coming sector rotation. But it’s also important to look for stocks that may underperform. This week, Ryan Hasson was eyeing four overbought stocks ready for a pullback and how investors should approach them. Hasson also wrote about the recent price action with Oracle Corp. NYSE: ORCL after its discussions with Elon Musk’s xAI startup fell through. This is a good reminder that investors will look for any reason to sell and why, when you zoom out, ORCL stock still has many bullish catalysts that should limit the sell-off. And the recent surge in equities was preceded by a surge in Bitcoin. That could make this a good time to look at crypto stocks, like the four crypto-related stocks that Hasson analyzed, as they have surged higher this week. Articles by Gabriel Osorio-Mazilli Gabriel Osorio-Mazilli also wrote about the possibility that exists in cryptocurrency stocks and analyzes four cryptocurrency stocks that could be ready to make a sharp move higher in the coming months as investors play the underlying strength in cryptocurrency. Investors may also notice that gold has been hitting record highs lately. That makes this a good time to consider gold stocks, particularly gold mining stocks, which require higher metal prices to make their drilling operations profitable. Osorio-Mazilli gives you three gold stocks to consider. Osorio-Mazilli also wrote about the opportunity in the cybersecurity stock Datadog Inc. NASDAQ: DDOG. In a week ending with a reminder of cybersecurity's necessity and potential drawbacks, Osorio-Mazilli explains why analysts are bullish about DDOG stock. Articles by Leo Miller Airline stocks are among the first to report earnings. This week, investors heard from United Airlines Holdings Inc. NASDAQ: UAL, and as Leo Miller writes, analysts liked most of what they heard, including that the airline reaffirmed its full-year guidance despite expectations for a 3% capacity decline in the coming quarter. In coming weeks, there’s been a sell-off in the chip sector. That, and remarks made by former President Trump, may help explain why shares of Taiwan Semiconductor Manufacturing Co. NYSE: TSM are flat despite the company delivering a double beat on revenue and earnings. You may wonder if you’ve missed the infrastructure-fueled run in industrial stocks such as Fastenal Co. NASDAQ: FAST. Miller explains why analysts have mixed opinions on the company and how investors may want to trade FAST stock. Before you consider Alibaba 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 Alibaba Group wasn't on the list. While Alibaba Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Investors Are Moving into Bonds and Small Cap Stocks: Here's Why 2024-07-20 11:00:00+00:00 - Recently, the market's attention has been overly concentrated on the technology sector, focusing on stocks that deal with artificial intelligence and its growth and global adoption. While today's economy does show a growing trend in artificial intelligence demand, too much concentration on one area could be better, which is why some in the stock market have already started to take profits and look for the next opportunity. However, the cycle's best opportunities don't just land on investors' laps; they must be dissected and considered thoroughly. One great start is to look into momentum, such as which sectors or asset classes have outperformed lately. Another angle investors can – and will – take today is to consider what the bigger players on Wall Street are starting to buy into and out of. Get Hudson Technologies alerts: Sign Up Today, investors can dig into Stanley Druckenmiller's newest decisions. Druckenmiller traded shoulder to shoulder with George Soros, arguably one of the best macro traders of his time. Suppose anyone can illuminate the new macro rotation. In that case, it is Druckenmiller who not only sold out of NVIDIA Co. NASDAQ: NVDA but also bought into the following two exchange-traded funds (ETFs). Profit Now, Invest Smarter: Cheaper Upside with Reduced Risk iShares Russell 2000 ETF Today IWM iShares Russell 2000 ETF $216.84 -1.11 (-0.51%) 52-Week Range $161.67 ▼ $226.64 Dividend Yield 1.22% Assets Under Management $68.85 billion Add to Watchlist While NVIDIA might be the first stock investors think about when it comes to profit-taking, as the company had a run of over 158% in the past 12 months, there are association effects when this giant starts to go down. Earlier this week, other names like Amazon.com Inc. NASDAQ: AMZN also sold off by 3.3% in a single day. Investors are expanding their concerns beyond semiconductor stocks, causing notable drops in shares of typically robust companies like Apple Inc. NASDAQ: AAPL and Alphabet Inc. NASDAQ: GOOGL, each facing mid-single-digit selloffs in just one day. The answer everyone is looking for is where these new liquid funds are headed. Starting from the Druckenmiller view, it looks like the macro rotation now favors bonds and small-cap stocks, as this macro investor bought into the iShares Russell 2000 ETF NYSEARCA: IWM and the iShares 20+ Year Treasury Bond ETF NASDAQ: TLT. iShares 20+ Year Treasury Bond ETF Today TLT iShares 20+ Year Treasury Bond ETF $92.92 -0.55 (-0.59%) 52-Week Range $82.42 ▼ $102.35 Dividend Yield 3.82% Assets Under Management $55.35 billion Add to Watchlist Far from blindly following Druckenmiller’s lead, here’s how investors can lock in their understanding of the reasons behind this decision. But first, here’s why they are more attractive today than the popular names in the technology sector. Momentum in focus, the small-cap ETF has outperformed the broader S&P 500 by nearly 5% over the past three months. On the other hand, the Technology Select Sector SPDR Fund NYSEARCA: XLK barely matched the three-month performance in the S&P 500. However, bonds aren’t known for momentum, so here’s how investors can think about this trade. Bond prices move opposite to interest rates, and with an over 90% probability of rate cuts coming by September 2024, according to the CME’s FedWatch tool, buying a bond ETF looks like an unmissable trade today. Top Stock to Watch: Beat the Market with This Pick Retail investors have an advantage over people like Druckenmiller because of their size. While buying into an individual small-cap stock will barely move the needle for institutional investors with billions of dollars at their disposal, a near triple-digit percentage move in a small-cap can be a career-maker for a retail investor. If you are looking for a cheap upside, here’s one small-cap stock investors can focus on to beat the market in this new rotation. Hudson Technologies: The Regulatory Play Investors Can't Miss Hudson Technologies Today HDSN Hudson Technologies $8.80 -0.13 (-1.46%) 52-Week Range $7.90 ▼ $15.24 P/E Ratio 8.98 Price Target $12.40 Add to Watchlist Even though the upside is almost guaranteed in Hudson Technologies Inc. NASDAQ: HDSN, it has a $411 million market capitalization, so unless Druckenmiller buys the whole company, it won’t do much for him. However, investors can lean on new refrigerant regulations to ride a wave in this stock. The American Innovation & Manufacturing (AIM) Act seeks to reduce greenhouse gasses caused by coolants in refrigerators and air conditioning systems. In a process known as reclamation, Hudson Technologies helps make these used coolants as pure as possible to reduce emissions and comply with the act. According to the company’s latest investor presentation, Hudson Technologies owns 35% of the market, which will only grow from here. Otherwise, customers risk getting fined on the premise of the AIM Act. Here’s how Wall Street feels about this small-cap stock. Analysts forecast up to 29.7% earnings per share (EPS) growth for the next 12 months. This view drove consensus price targets up to $12.4 a share, or a perceived upside of 37.2% from where the stock trades today. Hudson Technologies, Inc. (HDSN) Price Chart for Sunday, July, 21, 2024 Before you consider Hudson Technologies, 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 Hudson Technologies wasn't on the list. While Hudson Technologies currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Investors are putting their money on the "Trump trade." Here's what that means. 2024-07-19 20:40:00+00:00 - As former President Donald Trump stretches his lead at the polls over President Joe Biden, investors are already laying bets on what Trump's return to power could mean for the U.S. economy, stock prices, and individual industries and companies. Wall Street has dubbed such market moves the "Trump trade." A Trump presidency would bring "important macro and market implications, with the key impacts likely revolving around trade policy and tariffs," Goldman Sachs analysts said in a report. For example, Trump's plan to impose universal tariffs on U.S. imports would likely benefit companies that mostly do business here at home, as opposed to global players, according to the investment bank. The so-called Trump trade "has to do with those companies viewed as being the primary beneficiaries of a Trump presidency and the agenda he has laid out so far," JJ Kinahan, CEO of IG North America, told CBS MoneyWatch. "This is speculation — as we both know, what's said and what ends up happening can be two different things." What's driving up stocks? Art Hogan, chief market strategist at B Riley Wealth, also sounded a cautionary note. "The things that get said and proposed on the campaign trail are often difficult to put into place once you get to 1600 Pennsylvania Avenue," he said. Hogan also advises against making stock predictions based on an election more than 100 days away. "Even if I could tell the results right now, I still couldn't tell you what is going to do well," he said. "The economy drives earnings, and earnings drive stocks," said Hogan, who attributes the market's upward drift this year to S&P 500 earnings and expectations that the Federal Reserve could cut its benchmark interest rate in September. "The assumption that we would continue with tax cuts and lower interest rates — which we were going to have anyway — is behind the recent run higher in small-cap stocks," he added. Investors also think Trump's return to the White House would mean less regulation, a potential tailwind for heavily regulated sectors such as banking and energy. At the same time, economists warn that Trump's plan to erect stiff new tariffs and deport immigrants would likely cause a flare-up in inflation. Which industries could benefit? In his acceptance speech Thursday night, Trump underlined his intention to crank up production of fossil fuels, with Kinahan noting the Republican nominee's repeated refrain of "drill, baby, drill." That would make energy giants such as Exxon among the biggest gainers under a Trump administration eager to pump oil despite the growing fallout from climate change. Another area that investors think has upside in a second Trump presidency is cryptocurrencies. Trump, once a critic of digital currencies, has more recently sounded bullish on cryptos, while his running mate, Ohio Senator J.D. Vance, has long been a proponent. On Friday, shares of crypto-related stocks rose even as the overall market fell, with digital currency platforms Coinbase up nearly 8%, Marathon Digital advancing 5% and Riot Platforms ahead 6.5%. Private prison stocks including Geo Group also have risen on Trump's talk of "rounding up immigrants and putting them into detention," Hogan said. Trump moving markets As investors size up the shifting electoral odds, Trump's public pronouncements are already moving financial markets. Trump's recent comments about jacking up tariffs on China and requiring Taiwan to pay for U.S. military protection this week triggered a sell-off in semiconductor, AI and other large tech companies, with even star performers like Nvidia taking a tumble. "People forget that the 2018 tariffs put the U.S. manufacturing sector into a recession, and we've been in another one for the past two years," Peter Boockvar, chief investment officer of Bleakley Financial Group said this week in an email. "Another tariff battle is a bad thing. Another economic fight with the second largest economy is a bad thing." Still, the market's knee-jerk reaction is likely to be short-lived, according to Wedbush analysts, who expect the tech sector to continue climbing in 2025. "Our longstanding view navigating Trump politics and the tech sector is the political rhetoric during this political climate and Beltway races will be loud but, ultimately just like our view since 2016, the bark will be way worse than the bite on the U.S./China Cold Tech War fears," they wrote.
Microsoft outage shuts down Starbucks' mobile ordering app 2024-07-19 20:08:00+00:00 - What we know about the worldwide outages for industries using Microsoft Worldwide tech outages: What we know Worldwide tech outages: What we know The online ordering system at Starbucks went down on Friday as the coffee chain joined the ranks of companies affected by a global Microsoft outage that caused turmoil across multiple industries, from airlines to healthcare. The Microsoft outage was sparked by a software update that global cybersecurity firm CrowdStrike sent to the tech giant. While the two companies worked to fix the issue, businesses and services grappled throughout Friday with the fallout, which disabled many computers running Windows apps. Starbucks online app wasn't able to take mobile orders on Friday due to the Microsoft outage, which impacted businesses across the globe. Aimee Picchi The tech failure took down Starbucks' popular mobile app, which customers use to place orders and pick them up in stores, which can minimize wait times. The glitch also prevented some stores from opening, interrupting regular customers' daily routines across the U.S., according both Starbucks and social media reports. Still, Starbucks said the "vast majority" of its stores and drive-thru windows are still operating. "Starbucks is among those companies experiencing impacts due to a widespread third-party systems outage, resulting in a temporary outage of our mobile order ahead and pay features," the company said in a statement to CBS MoneyWatch. Starbucks said it is working to "bring all systems online as quickly as possible." Consumers posted about their experiences trying to get coffee on social media platforms, including X. One customer said they were able to use their Starbucks rewards points to pay for an espresso, but that their store's point-of-sale system was inoperable. Others complained about the disruption. "I can deal with no banks, no work, no social media. What I can't deal with is no Starbucks mobile ordering," wrote one user. The widespread outage snarled travel plans for thousands of fliers whose flights were cancelled, delaying parcel deliveries and preventing some workers from logging into their company accounts. Some hospitals also canceled elective surgeries because they weren't able to access their booking systems.
What is Microsoft's "blue screen of death?" Here's what it means and how to fix it. 2024-07-19 18:21:00+00:00 - What we know about the worldwide outages for industries using Microsoft The Microsoft outage caused by a faulty CrowdStrike software update has caused the return of a familiar — and dreaded — screen for many Windows users: what has come to be known informally as the "blue screen of death," indicating that their computer systems are down. The outage has affected consumers and businesses across the globe, including airlines, banks, health care providers, telecoms, retailers and even billboards in New York City's Times Square. The blue screens were visible on computer screens at multiple airports Friday, according to images shared on social media. The screens, which have been around for decades, were designed for early Windows systems to display when users' operating systems glitched. Microsoft, which describes them as "blue screen errors" or STOP code errors, says the screen continues to be displayed "if a serious problem causes Windows to shut down or restart unexpectedly." Microsoft's "blue screen of death" has been used for decades to tell Windows users that their computers' operating systems are down. Microsoft Friday's worldwide outage was caused by a technical problem that global cybersecurity firm CrowdStrike said it had identified in its software and was working to resolve. CrowdStrike provides antivirus software to Microsoft for its Windows devices. In a post on X early Friday, Microsoft said its "previously impacted Microsoft 365 apps and services have recovered." However, some customers responded that their computers were still displaying the blue screen. How can I fix the blue screen of death? In an earlier social media post, Microsoft said users can fix the blue screen of death by restoring their Windows 365 Cloud PC "to a known good state prior to the release of the update, or replacing the buggy version of Windows 365 with the system in use just before CloudStrike issued its faulty update. Microsoft included a link to a page with instructions on how to restore Windows. Users are given choices of various restart points for their computers that range from four hours to 24 hours before the CloudStrike update. A digital billboard in New York City's Times Square displaying the "blue screen of death" on July 19, 2024, after a communications outage caused by a faulty software update crippled computers worldwide. Selcuk Acar/Anadolu via Getty Images In a separate update on its website, Microsoft also said users may encounter a bug check called BSOD, or blue screen of death, "and get stuck in a restarting state." In other words, the BSOD indicates that a computer has been knocked offline and that its operating system is not functional, sometimes forcing users into what can seem like a never-ending recovery loop before the PCs start properly again. Experts also advise users to run "Windows Update" to make sure they're using the latest software fixes. If the blue screen error persists, Microsoft recommends the following steps: In Windows, open Get Help. In the Get Help app, type "Troubleshoot BSOD error." Follow the guided walkthrough in the Get Help app People who aren't using a Windows device can run the Blue Screen Troubleshooter on their browser by going to Contact Microsoft Support and typing "Troubleshoot BSOD error." That will lead to a guided walkthrough under "Recommended Help," according to Microsoft. How long does it take to get rid of the blue screen? Microsoft warned that its customers may have to reboot as many as 15 times before they're successful in restoring their computing systems. Microsoft said some users have reported that they have been able to successfully reboot their machines. "We have received reports of successful recovery from some customers attempting multiple Virtual Machine restart operations on affected Virtual Machines," the company said. It advises Windows users to log in to the Azure Portal, its cloud computing product, and to initiate a restart.
How the surging demand for energy and rise of AI is straining the power grid in the U.S. 2024-07-19 17:03:00+00:00 - The surging demand for energy in the U.S. is growing significantly for the first time in decades. Experts say it is forecast to hit record highs both this year and next year — creating more planet-warming emissions. Part of the demand is due to an increasing number of data centers across the country, along with the rise of artificial intelligence. The nation's roughly 2,700 data centers are mostly run by big tech firms like Google, Amazon, Microsoft, Meta and Apple, and consumed more than 4% of all electricity in the U.S. in 2022. It's projected to more than double to 9% by 2030, according to the Electric Power Research Institute, a research organization and nonprofit focused on energy. It is not affiliated with any companies or type of technology. But it's already taxing the U.S.' aging power grid, and the demands of AI are just beginning to grow. A ChatGPT query, for example, uses nearly 10 times the electricity of a typical internet search. "It's gonna take innovation to really think about how we are going to scale this faster to keep up with the pace of growth," said Amanda Peterson Corio. As the global head of Google's data center energy, Peterson Corio's job is to find more juice to keep the company's power-hungry machines humming. According to McKinsey & Co., a single data center can use as much power as 80,000 U.S. homes. Peterson Corio said it will be a challenge to make that kind of electricity use sustainable. "As we look to the next decade, those demands continue to grow and the real challenge is trying to figure out how we can do this in a way that meets our climate goals," she said. Google's planet warming emissions rose by 13% last year and have jumped nearly 50% since 2019, the company said. Google has invested heavily in wind and solar and says 64% of the time its operations run on clean energy. When the sun isn't shining and the wind isn't blowing, data centers still rely on fossil fuels that contribute to climate change, leaving big tech scrambling to bring more clean power to the grid. "We can develop large projects that will really move the needle on climate change," said Tim Latimer, the CEO of Fervo Energy, which is partnering with Google to boost geothermal power. Geothermal energy accounts for less than 1% of electricity in the U.S., according to the Department of Energy. Fervo wants to change that. Latimer said the company think geothermal energy can be as much as 20% of the U.S. electricity grid. Google plans to use Fervo's geothermal power to help run its Nevada data centers and eventually others around the world, aiming to eliminate its use of coal and gas by 2030. "We need something that has that reliability that works 24/7 to get us all the way there," Latimer said.
Safeguard Against Credit Card Risks with This Top Financial Stock 2024-07-19 15:23:00+00:00 - Now that the new earnings season has kicked off, the financial sector comes out swinging first, giving investors insights into what is happening underneath the hood of the economy, both the corporate and the commercial economy. This week, commercial banks like Bank of America Co. NYSE: BAC and J.P. Morgan Chase & Co. NYSE: JPM reported a not-so-shiny future in the consumer sector. American Express Today AXP American Express $242.38 -6.82 (-2.74%) 52-Week Range $140.91 ▼ $253.73 Dividend Yield 1.16% P/E Ratio 19.97 Price Target $227.65 Add to Watchlist Rising credit card delinquencies, coupled with net charge-offs (accounts that are considered lost), encouraged management at these banks to put more capital away in case of further losses in the quarters to come. Investors can see that the banks are preparing themselves for another round of deterioration in consumer credit conditions. Still, there’s one way to hedge these risks away and also be exposed to what could be considered a consumer staple stock. Get NVIDIA alerts: Sign Up That stock is American Express NYSE: AXP, which has just reported its second quarter 2024 earnings results to hold up the stock’s price in the middle of what could be this cycle’s biggest rotation out of the technology sector, mainly out of NVIDIA Co. NASDAQ: NVDA and into other areas like bonds and small-cap stocks. Here’s why American Express stock should be on more investor watchlists. American Express Stock Flips the Script for Credit Sector That’s a bold assessment, but it couldn’t be more true today. While the bigger commercial banks see their net interest income (NII) fall to burden earnings per share (EPS) on a stock, American Express will show investors a different story and allow them to tap into the better earning power in this household name. According to the company’s earnings presentation for the second quarter of 2024, NII in American Express jumped by 20% over the year, beating the single-digit declines in the big banks. American Express (AXP) Price Chart for Sunday, July, 21, 2024 This is important because, while most consumers are being choked by inflation and forced to miss their card payments, American Express’s customer profile shows that quality rather than quantity matters. NII and other revenue growth at American Express drove the bottom-line earnings higher, pushing EPS growth of 44% in the past year. Watching Wall Street forecasts for only 14.8% EPS growth in the next 12 months makes it seem like analysts are falling on the conservative end of the spectrum. Management leaned on this recent financial performance to provide even better guidance. Insiders feel that American Express can deliver EPS growth of 19% to 23% for the rest of the year, putting pressure on analysts to revise and boost their views. Why Warren Buffett Owns American Express Stock and Plans to Keep It Now, let's discuss why many investors, including Warren Buffett, continue to hold American Express stock. While the big banks see their charge-off and delinquency levels rise above pre-COVID levels today, American Express notes that both of these metrics are still below pre-COVID levels, meaning the business is better now than before the pandemic. With this stability comes predictability, and that’s good for the company’s management, especially when the subject of reinvesting capital comes up. Management achieved this with up to $22.8 billion of free cash flow (operating cash flows minus capital expenditures) for the past 12 months. First, it gave back up to $7 million in capital to investors through share buybacks, which delivered a message to the rest of the market. Part of this message is that insiders themselves may believe the stock to be on the cheap end today and that the near future could be filled with upside potential. American Express MarketRank™ Stock Analysis Overall MarketRank™ 4.63 out of 5 Analyst Rating Hold Upside/Downside 6.1% Downside Short Interest Healthy Dividend Strength Moderate Sustainability -0.42 News Sentiment 0.64 Insider Trading Selling Shares Projected Earnings Growth 13.73% See Full Details Over the past five years, American Express stock has repurchased an average of $3.5 billion worth of stock, which is one of the main strategies cash-flowing companies use to reward their shareholders once they reach these levels of stability and predictability in their cash flows. This is also why Wall Street keeps being bullish on American Express stock. Analysts at Wells Fargo saw it fit to boost their price targets on American Express stock to $285 a share, daring it to rally by 19.2% from where it trades today. Proposing these sorts of upsides and the stock delivering such a solid financial stance in the middle of one of the worst consumer credit markets had another impact on the market. American Express stock’s short interest collapsed by 10.4% in the past month, showing capitulation on the side of the bearish traders eyeing American Express. That would explain why up to $9.8 billion of institutional capital was invested in American Express stock over the past 12 months, as the company is an easy target for these investors. Before you consider NVIDIA, 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 NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Streaming Titan's Stock Ready to Hit All-Time Highs This Year 2024-07-19 14:46:00+00:00 - Netflix's NASDAQ: NFLX stock price corrected about 5% ahead of its Q2 earnings release, and the correction may not be over now that the results are out, but it will soon result in a buying opportunity. Though mixed relative to analysts' consensus forecasts, the Q2 results were robust, featuring growth, margin expansion, and a forecast for increased capital returns, expected to drive higher stock prices over time. Netflix Today NFLX Netflix $633.34 -9.70 (-1.51%) 52-Week Range $344.73 ▼ $697.49 P/E Ratio 43.95 Price Target $680.76 Add to Watchlist The analysts' response has been favorable, and they are leading the market to new highs with their revisions. MarketBeat tracked a half-dozen revisions within the first 12 hours of the release, extending a trend that began last year, including an upward price target revision. The consensus assumes fair value at the current levels, but it is rising and may provide a floor for the market. However, the chance for a new all-time high is the critical detail for Netflix investors today. The analysts are leading the market to a range above consensus, which is good for a new all-time high. Get Netflix alerts: Sign Up Unlike other mega-tech leaders such as Meta Platforms NASDAQ: META, this stock has yet to surpass its 2022 all-time highs, a significant technical milestone that can lead to accelerating price action. Meta Platforms, Microsoft NASDAQ: MSFT, Alphabet NASDAQ: GOOGL, and Oracle NYSE: ORCL crossed those levels last year and gained 25% or more after they did. Netflix Hurdle Becomes A Tailwind As problematic as the shift to ad-supported tiers was for Netflix's outlook, it has become a tailwind supporting the company’s growth. Netflix reported $9.56 billion in net revenue for a gain of 16.7%, outpacing the analyst consensus by 30 bps, on a 16% increase in paid memberships led by a 34% increase in ad-tier membership. Global paid customers grew by 8 million or 3%, with increased usage, ad-tiers, and pricing leading to margin strength. Netflix MarketRank™ Stock Analysis Overall MarketRank™ 4.18 out of 5 Analyst Rating Moderate Buy Upside/Downside 7.5% Upside Short Interest Healthy Dividend Strength N/A Sustainability -0.30 News Sentiment 0.65 Insider Trading Selling Shares Projected Earnings Growth 17.90% See Full Details Regionally, strength is centered in the US, with revenue per user up 7%. EEAC and LATAM produced FX-neutral growth offset by FX translation, while APAC revenue per user contracted on an FX-neutral and reported basis. The margin news is best. The company widened its operating margin by 500 basis points and expects strength to continue. The increased margin led to accelerated income and earnings growth, with net income up 42% and GAAP earnings 48%. GAAP earnings outpaced consensus by 300 basis points and resulted in improved guidance. Guidance is why the stock will move higher, given time. The company issued tepid guidance for Q2, falling below consensus, but still expecting 14% YoY growth and an acceleration from last year. The long-term outlook is more robust. The full-year revenue guidance was increased by 100 basis points at the low end, raising the mid-point to align with the analysts' consensus. Netflix Builds Leverage for Investors Netflix's cash flow and FCF are down marginally year over year due to FX translation but are still robust and sufficient to sustain the healthy balance sheet. The company continues to lean into programming and product development, which is the bulk of its spending, but it has ample cash flow left for share repurchases. The repurchases in Q2 topped $1.6 billion, reducing the count by 2.6% on average for the quarter, and there is still $5 billion left. Highlights from the balance sheet include a cash reduction offset by increased assets, reduced liabilities, and improved shareholder equity. Equity is up 10% compared to last year. Because leverage remains low at 2x cash and 0.55x equity, the company can continue investing in growth, margin improvement, and capital returns. Sector Rotation Saps Appetite for Netflix, Buy it on The Dip Given the market environment, as good as Netflix's news is, it was insufficient to catalyze a strong rally. The June CPI report sparked a massive sector rotation from tech into small caps and blue chips that has yet to run its course. The takeaway is that Netflix share prices may move lower before they move higher, but higher prices and new all-time highs are forecasted. The critical target for support is near $635; provided that level holds, the rebound could begin soon. If not, NFLX shares could fall to the $600 level before finding solid support. Before you consider Netflix, 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 Netflix wasn't on the list. While Netflix currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Netflix adds 8 million subscribers, disappoints on revenue outlook 2024-07-19 05:37:00+00:00 - Netflix (NFLX) reported second quarter earnings on Thursday that initially sent the stock 6% lower in after hours trading after the streaming giant's revenue outlook missed Wall Street's expectations for the current quarter. But shares recovered during the earnings call as investors digested another 8 million-plus subscriber gain and a beat on both the top and bottom lines. Revenue hit $9.56 billion in Q2, an increase of 16.8% compared to the same period last year, as the streamer continued to lean into top-line initiatives like its crackdown on password sharing and ad-supported tier, in addition to last year's price hikes on certain subscription plans. Analysts were expecting $9.53 billion, according to Bloomberg. Netflix guided to third quarter revenue of $9.73 billion, a miss compared to consensus estimates of $9.83 billion. The company did increase its full-year 2024 revenue growth projection to 14% to 15%, up from the prior 13% to 15%. It also expects full-year operating margins to hit 26%, an increase from the previous 25%. "Our updated revenue forecast reflects solid membership growth trends and business momentum, partially offset by the strengthening of the US dollar vs. most other currencies," management said in the earnings release. Diluted earnings per share (EPS) beat estimates in the quarter with the company reporting EPS of $4.88, above consensus expectations of $4.74 and well ahead of the $3.29 EPS figure it reported in the year-ago period. Netflix guided to third quarter EPS of $5.10, ahead of consensus calls for $4.74. Subscribers once again came in strong with another 8 million-plus users added on the heels of key programming, such as the latest season of "Bridgerton." Subscriber additions of 8.05 million beat expectations of 4.7 million and follows the 9.3 million net additions the streamer added in the first quarter. The company had added 5.9 million paying users in Q2 2023. Leading up to Thursday's release, Netflix's stock had been on a tear. Shares are currently up more than 30% since the start of the year. In May, Netflix announced it won the streaming rights to two NFL games set to air on Christmas Day as part of a three-season deal. The company also told advertisers at its May Upfront presentation that its ad tier has reached 40 million global monthly active users — a significant jump from the 15 million users the company revealed back in November and a 35 million-user increase compared to the year-ago period. In the earnings release Thursday, the company said it's making "steady progress scaling [its] ad business" with ad tier memberships growing 34% quarter on quarter. Story continues In another bid to boost the ad tier, the company said it will phase out its basic plan membership in the US and France after removing that sign-up option in the UK and Canada last year. The basic tier had previously been its cheapest ad free plan at a price point of $9.99 in the US. "Given this sustained progress, we believe that we’re on track to achieve critical ad subscriber scale for advertisers in our ad countries in 2025, creating a strong base from which we can further increase our ad membership in 2026 and beyond," the company said. The growth comes as the streamer has raised the prices of its ad-free subscriptions in an attempt to lure more users to its ad-supported offering. Netflix's password-sharing crackdown has also lifted top-line growth and increased the platform's overall subscriber base. But it hasn't been an entirely smooth trajectory upward. In April, Netflix said it would stop reporting subscriber figures, along with a key profitability metric, average revenue per member, or ARM, beginning next year. That's raised concerns about the company's long-term subscriber growth and whether or not recent growth momentum can be sustained over the long term. Netflix reported second quarter earnings after the bell on Thursday amid heightened expectations. (Jaque Silva/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images) Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance
Retirement Isn't Always Planned, Woman In Her Late 50s Forced Into Early Retirement With Only $650,000 In Savings 2024-07-19 05:00:00+00:00 - Retirement Isn't Always Planned, Woman In Her Late 50s Forced Into Early Retirement With Only $650,000 In Savings In a recent discussion about retirement, two common perspectives often arise among Americans: "I'm going to have to work forever" or "I have a good retirement plan in place that will allow me to retire comfortably." However, for many, there's a middle ground that can be difficult to plan for. Deb Hallisey, a 66-year-old New Jersey resident, faced this challenge. After losing her father in 2015, she had to pause her career to take care of her blind mother. When her billable hours continued to drop, she was let go from her job. Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? Hallisey saved diligently during her career as a consultant. As a single woman, she knew she had to provide for herself. After losing her job, she continued to take care of her mother until she died in 2022. While caring for her mother, she started writing about her caregiving experience and even launched a website sharing her stories. She also wrote two books about caregiving and turned her experience into a business, speaking about caregiving and consulting for families. Hallisey’s financial stability was tested despite her $600,000 in retirement savings and a $50,000 emergency fund. She draws $2,500 a month from her retirement savings and earns $500 from her business. The stock market has kept her balance at $525,000, and her home, valued at about $500,000, is mortgage-free. This year, Hallisey plans to claim Social Security. She'll use her $3,400 monthly benefits to help with living expenses. With that, she plans to leave her retirement savings for emergencies, including future caregiving expenses that may arise for herself. Trending: How much money will a $200,000 annuity pay out each month? The numbers may shock you. "I'm not making enough to support myself," Hallisey told the Wall Street Journal. "But I love it." Hallisey's story underscores a harsh reality: many Americans expect to work until they die, but health issues or caregiving responsibilities can force early retirement. Personal finance influencer Kara from TikTok points out that Hallisey's situation, though seemingly well-prepared with $650,000, is insufficient to retire comfortably in the U.S. "This is what I think is so common," Kara says, "And it’s going to happen to a lot of us. A lot of people in the United States think, ‘Oh, I’ll just work until I die' ... Which is really bleak in its own way, but it’s also, unfortunately, not true. You are much more likely to run into a health issue, or someone else’s health issue that prevents you from working, but continue to be alive, and that’s how you will retire." Story continues See Also: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want. Kara emphasizes the importance of planning for the possibility of early retirement due to unforeseen circumstances. It's impossible to know every little or major thing that will happen in our lives, and many retirees continue to live for decades after they retire — whether that retirement was planned or not. As people age, living expenses tend to rise with the cost of medical care and other unexpected needs. Experiences like Hallisey's demonstrate the importance of proactive financial planning and preparing for the unexpected. Retirement isn't always a choice, and it's critical to have a robust plan in place. Consulting a financial advisor can help tailor strategies to individual circumstances, ensuring better preparedness for uncertainties. Read Next: "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Retirement Isn't Always Planned, Woman In Her Late 50s Forced Into Early Retirement With Only $650,000 In Savings originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Dow loses more than 500 points Thursday as stocks take a tumble 2024-07-19 04:42:00+00:00 - U.S. stocks tumbled on Thursday, reversing early gains as investors continued to rotate away from high-priced mega-cap growth stocks and second-quarter earnings season gathered steam. All three major U.S. stock indexes suffered steep losses, and the blue-chip Dow fell the most, halting a series of consecutive record closing highs. The sell-off resumed a day after the Nasdaq posted its biggest one-day drop since December 2022, and the chip sector suffered its largest daily percentage plunge since the pandemic-related shutdown panic of March 2020. Anxiety remained elevated. The CBOE Market Volatility index, often called the "fear index," touched its highest level since early May. "What's different from yesterday is you did see money going into other sectors ... but today it’s a pretty broad selloff," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. The Russell 2000 fell for the second day in a row after an apparent rotation into smallcaps sent the index soaring 11.5% in its most robust five-day gain since April 2020. A Wall Street sign is pictured outside the New York Stock Exchange amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., April 16, 2021. Stock market swoons: 'It's been a great run' "Over the last two weeks we've seen a rotation into other sectors including mid-caps and small-caps, which have been huge laggards," Ghriskey added. "But today it’s reversing. The market is flailing around trying to find a direction." "Investors (are) just pulling back and saying, 'We're going to cash out now, it's been a great run.' They’re unsure what’s going to happen in terms of politics," Ghriskey said. In economic news, initial jobless claims data landed above analysts' estimates, providing further evidence that the labor market is softening. This is a necessary step toward putting inflation on a sustainable downward path, according to the Federal Reserve. The Dow Jones Industrial Average fell 533.06 points, or 1.29%, to 40,665.02, the S&P 500 lost 43.68 points, or 0.78%, to 5,544.59 and the Nasdaq Composite dropped 125.70 points, or 0.7%, to 17,871.22. Of the 11 major sectors in the S&P 500, healthcare stocks suffered the largest percentage decline, while energy stocks were the sole gainers. Second-quarter earnings season gained momentum, with 60 of the companies in the S&P 500 having reported. Of those, 85% have delivered consensus-beating results, LSEG data showed. Analysts now see aggregate year-on-year S&P 500 earnings growth of 11.1%. Among individual stocks, Domino's Pizza tumbled after falling short of estimates for quarterly same-store sales. Story continues Shares of Homebuilder D.R. Horton rose after the company beat profit estimates and delivered more new homes than expected, but tightened its annual forecast. Its shares jumped 10.1%. The move also lifted the Philadelphia SE Housing index to a record high. Warner Bros Discovery jumped following a report that the company had discussed a plan to split its digital streaming and studio businesses from its legacy TV networks. Streaming pioneer Netflix lost ground in extended trading after posting quarterly results. This article originally appeared on USA TODAY: Dow down more than 500 points: Stock market takes a tumble
Texas’ Biggest Pension Fund to Pull Almost $10 Billion From Private Equity 2024-07-19 03:27:00+00:00 - (Bloomberg) -- Texas’ largest public pension fund has decided to shift almost $10 billion out of private equity investments, a blow to an asset class that has faced heightened scrutiny amid dwindling returns and a slowdown in exits for portfolio companies. Most Read from Bloomberg The move by the Teacher Retirement System of Texas — which manages $202 billion of assets — is another setback for an industry that has struggled with dealmaking and fundraising after a prolonged era of easy profits. Texas Teachers is the second of the largest public pensions to officially reduce its target allocation to private equity. It’s paring that to 12% from 14% — below the average 13% for all US public pensions, pension officials said at its board meeting Thursday. The pension estimates it will report a 9.3% gain for its latest fiscal year, Chief Investment Officer Jase Auby said at the meeting. That’s compared to a 3.85% return for the previous fiscal year and will outpace a 7% annual return target. At the end of March, the fund held $33.7 billion of private equity investments, or 16.7% of its portfolio, meaning it was already over-allocated to the asset class. Reducing that exposure to 12% amounts to pulling roughly $9.7 billion of private equity investments from the portfolio. The pension doesn’t have plans to sell private equity investments to the secondary market to achieve the reduced target, Neil Randall, managing director of private equity at Texas Teachers, said at the board meeting. The pension isn’t writing checks to large buyout funds anymore, instead focusing on smaller middle-market funds. Alaska Permanent Fund, which manages that state’s $80 billion sovereign wealth fund, began reducing commitments to private equity in 2022 and decreased its target allocation to 15% from 19% the following year. CIO Marcus Frampton said at the time that private equity needed a reset and that he wanted to be cautious. Earlier this year, the Alaska fund opted to lean back into the asset class and re-upped its target to 18%. Texas Teachers’ decision to pull from private equity and shift that money into public equities was based on the expectation of continued pressure on returns from investing in the asset class. The pension said it will start implementing the reduction in October and that it will take several years to achieve. Story continues Not Alone Many US public pensions have actually increased private equity allocations recently, partly because their existing exposures are already above previous targets. Three of the largest have boosted their targets this year, including California Public Employees’ Retirement System, California State Teachers’ Retirement System and New York City’s pension funds. Pension funds, which have been chronically underfunded, seek to balance their investment decisions with the need to meet future payment promises to thousands of public-sector employees. The Texas fund only has 77.5% of the assets it needs to pay future obligations. That means private equity firms might continue to struggle to find interested investors for future flagship funds. Texas Teachers isn’t alone in grappling with how to stretch fewer dollars further. Others are doing so by slowing their pacing, or how much money they invest in a year. Still others like Colorado’s Public Employees’ Retirement Association, or Pera, have looked to secondary funds as a way to actively manage their private equity portfolios. Pensions are allocating more than in the past to those funds, opting out of some new fundraisings and also looking at strategically selling their existing stakes in private equity funds to free up liquidity. “It didn’t used to be that LPs would actively manage their private assets,” Pera Chief Investment Officer Amy McGarrity said in an interview. “With delayed exits and an overhang in capital that hasn’t been called, wanting to gain exposure to future vintage years, there is a sense that there may need to be some more active management.” Investors like getting into secondary funds because it can help them buy vintage years they might have missed out on, and they can get their money back sooner than they would with a new fund. (Updates with timing of implementation in eighth paragraph, Calpers in ninth, Colorado’s Pera starting in 12th.) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Netflix beats subscriber targets but cautions on next quarter 2024-07-19 01:32:00+00:00 - By Dawn Chmielewski and Lisa Richwine (Reuters) -Netflix said on Thursday it added more than 8 million subscribers in its second quarter as the streaming service benefited from a password-sharing crackdown and such titles as "Bridgerton," "Baby Reindeer" and "The Roast of Tom Brady." While the subscriber gains topped analyst predictions of 5 million, Netflix also cautioned that third-quarter subscriber gains would be lower than the comparable period in 2023 when the password-sharing crackdown had just started. Netflix also said its vice president of ad sales, Peter Naylor, was leaving the company. In a letter to investors, the company said it did not expect advertising to be a primary driver of revenue growth until at least 2026. Netflix shares fell 2% in after-hours trading to $630.06. The company reported diluted per-share earnings of $4.88, compared with consensus forecasts of $4.74 a share, according to LSEG. Revenue for the quarter reached $9.56 billion, in line with estimates. At the end of June, the new sign-ups brought the total number of global Netflix subscribers to more than 277 million. The streaming video pioneer is facing saturation in the United States and told Wall Street last quarter that it plans to stop regularly reporting new subscriber additions next year. Investors have been monitoring the growth of Netflix's ad-supported tier, which has been fueled by the company's crackdown on password-sharing, pricing increases for ad-free tiers and new consumer bundles, such as Comcast's "StreamSaver" bundle, which combines Netflix with Peacock and Apple TV+. Netflix said its ad tier membership grew 34% from the prior quarter, but it did not say how many subscribers chose that option. "Our ad business is growing nicely and is becoming a more meaningful contributor to our business," Netflix said in its letter to investors. "But building a business from scratch takes time - and coupled with the large size of our subscription revenue - we don't expect advertising to be a primary driver of our revenue growth in 2024 or 2025." The company said it expects third-quarter revenue growth of 14%, compared with a year ago. Three years into its videogame initiative, Netflix said it planned to release a multiplayer game based on "Squid Game" later this year when it debuts Season Two of the dystopian Korean series. It also plans games tied to "Emily in Paris" and "Selling Sunset." (Reporting by Dawn Chmielewski and Lisa Richwine in Los AngelesEditing by Matthew Lewis)
Democratic megadonors increase pressure on Biden to drop out, as Kamala Harris events fill up 2024-07-18 22:45:00+00:00 - U.S. President Joe Biden and Vice President Kamala Harris stand on stage together after delivering remarks at the DNC 2023 Winter Meeting in Philadelphia, Pennsylvania, U.S., February 3, 2023. On a Tuesday in early July, 75 wealthy Democratic political donors gathered on a Zoom call to discuss the path forward for President Joe Biden after his calamitous debate performance against Donald Trump, according to a person on the call. Only one of the donors said they thought Biden should stay in the race, this person said. All the others made it very clear that they believed Biden needed to drop out of the race, if the party wanted to defeat Trump in November. People who spoke to CNBC for this story were granted anonymity to speak freely about a sensitive matter. Since then, big money donors who fund either the Biden campaign, his allied political action committees or the party at large have launched a lobbying campaign aimed at senior Democrats in both the House and Senate. Their goal is to convince lawmakers to publicly call on Biden to end his reelection campaign, according to over half a dozen people familiar with the matter. Many of these donors laid their positions out in stark terms: If Biden refused to drop out, they would not be giving money to help his reelection until polls showed that he was a clear favorite to beat Trump.
Biden administration forgives another $1.2 billion in student loans. Here's who qualifies. 2024-07-18 22:22:00+00:00 - Navigating student loan relief Navigating student loan relief 04:16 The Biden administration on Thursday said it is forgiving $1.2 billion in student debt for 35,000 borrowers who work in public service, ranging from teachers to firefighters. The announcement marks the latest round in government loan relief after the Supreme Court last year blocked President Joe Biden's plan for broad-based college loan forgiveness. With the latest student loan forgiveness, the Biden administration said it has waived $168.5 billion in debt for roughly 4.8 million Americans, according to a statement from the Department of Education. That represents about 1 in 10 student loan borrowers, it added. The people who qualify for forgiveness in the latest round of debt cancellation are part of the Public Service Loan Forgiveness (PSLF) program, which is designed to help public servants such as teachers, nurses and law enforcement officers get their debt canceled after 10 years of repayments. While PSLF has been around since 2007, until recently very few borrowers were able to get debt relief due to its notoriously complex regulations and often misleading guidance from loan companies. But the Biden administration has overhauled the program's rules, enabling more public servants to qualify for forgiveness. "The additional Americans approved for PSLF today are hardworking public servants who will finally receive the financial breathing room they were promised — and all PSLF recipients can easily track and manage the process through StudentAid.gov," U.S. Secretary of Education Miguel Cardona said in the statement. Who qualifies for loan forgiveness? The Biden administration said borrowers receiving student loan relief in this latest round are people enrolled in the PSLF program through a limited waiver, as well as regulatory changes made by the administration. The "limited Public Service Loan Forgiveness waiver" was designed by the Biden administration to allow public-sector workers to apply to receive credit for past repayments that hadn't previously qualified for loan relief. The deadline for signing up for the waiver was October 2022. "These 35,000 borrowers approved for forgiveness today are public service workers — teachers, nurses, law enforcement officials and first responders who have dedicated their lives to strengthening their communities," President Joe Biden said in a statement. [B]ecause of the fixes we made to Public Service Loan Forgiveness, they will now have more breathing room to support themselves and their families." Is the Biden administration planning more debt forgiveness? Yes, the Biden administration said it continues to work on a plan for broad-based student loan relief through the Higher Education Act. Some parts of the Biden administration's plans to provide more relief were thrown into turmoil last month when two courts issued temporary injunctions against the Biden administration's flagship student loan repayment plan, called the Saving on a Valuable Education, or SAVE, plan, which currently has about 8 million enrollees. Despite the injunctions, student borrowers had been able to still continue to enroll in the program, according to the Education Department. However, the SAVE plan is now in question after a federal appeals court on Thursday blocked its implementation, which would have lowered monthly payments for millions of borrowers. The 8th Circuit Court of Appeals granted a motion for an administrative stay filed by a group of Republican-led states seeking to invalidate the administration's entire student loan forgiveness program. The court order prohibits the Biden administration from implementing the parts of the SAVE plan that were not already blocked by lower court rulings. —With reporting by the Associated Press.
Executives Depart Cassava, Maker of Disputed Alzheimer’s Drug 2024-07-18 21:51:09.074000+00:00 - In collaboration with Dr. Burns, Dr. Wang published research studies in support of Cassava’s drug candidate for Alzheimer’s, called simufilam. It is currently in advanced trials, although more than five of Dr. Wang’s studies have been retracted or questioned by scientific journals. Mr. Barbier, Dr. Burns and Dr. Wang could not immediately be reached for comment. In a leaked report last fall, a City University of New York committee investigating the research faulted Dr. Burns for some of the errors discovered in the papers. Its members accused Dr. Wang of “longstanding and egregious misconduct in data management and record keeping.” In a regulatory filing earlier this month, Cassava reported that the Securities and Exchange Commission was investigating the company and two senior employees, who were not identified. Scientists have long criticized the methodological “oddities” in Cassava’s experiments with simufilam, citing suspicious figures in its published papers and questioning the underlying hypotheses about the drug’s mode of action. Dr. William Hu, an Alzheimer’s disease expert at Rutgers University and early critic of Cassava’s studies, said he hoped this was the first of many steps the company would take to make its research rigorous and transparent.
Don't be like JD Vance. Make your Venmo contacts private. 2024-07-18 21:48:32+00:00 - WIRED found JD Vance's Venmo account and was able to view some of his public transactions and friends. Until very recently, Venmo didn't allow you to hide your friend list. A privacy nightmare! Here's how to turn off the public friend list in your privacy settings. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement JD Vance, the Ohio senator who has been tapped as Donald Trump's running mate, is 39 years old — a true millennial. As a millennial, he uses Venmo, the social payments app. He also, apparently, isn't very up-to-date on the latest privacy features in the app. Wired discovered Vance's Venmo account and saw a few of his transactions and a list of his Venmo contacts. (Being friends on Venmo doesn't necessarily mean you've transacted with the people — it just means you or they synced phone contacts at some point.) This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .