订阅 Stock 源 Stock
All Investopedia news except for Personal Finance News, using this as the destination for redirecting a couple of legacy Investopedia RSS feeds: http://www.investopedia.com/feedbuilder/feed/getFeed?feedName=rss_stock_analysis http://www.investopedia.com/feedbuilder/feed/getFeed?feedName=rss_headline
已更新: 51 分钟 51 秒 之前

RH Stock Pops After Retailer's Product Transformation Overshadows Earnings Miss

星期三, 03/27/2024 - 20:33

Company Expects Demand Trends to Accelerate Throughout Fiscal 2024

Source: TradingView.com

Key Takeaways
  • RH shares jumped more than 8% in extended trading Wednesday as optimism about the company's product transformation overshadowed quarterly results that missed analysts' estimates.
  • CEO Gary Friedman sees business conditions remaining challenging until interest rates fall, but expects the retailer's new and updated RH Sourcebook collections to accelerate demand trends throughout fiscal 2024.
  • The RH share price may find resistance around $320 near the mid December high, before possibly testing higher resistance at the $403 region.


RH (RH) shares popped more than 8% after Wednesday’s closing bell as investors focused on the home furnishing retailer’s RH Sourcebook product range transformation rather than its quarterly top and bottom-line results that came in well below Wall Street’s expectations.

The premium home décor company said in its quarterly shareholder letter that it plans to unveil its RH Modern Sourcebook collections between late April and early May, which it expects to accelerate demand trends in the second quarter and throughout the back half of 2024. In addition, RH anticipates a sales boost from its updated RH Contemporary Sourcebook collections expected to reach homes in late July through early August.

The company also said it had received an exceptional customer response to its recently launched new RH Outdoor Sourcebook collections of luxury furniture.

Turning to the quarterly results for the three-month period ending Feb. 3, the company posted adjusted earnings of 72 cents per shares, significantly missing analysts’ forecast of $1.67 a share.The top line also came up short, with revenue in the period of $738.3 million below the $777.5 million Street expectation.

Looking ahead, the company said it sees a revenue lag of 4 to 8 percentage points throughout 2024 due to its product range transformation, adding that it will project demand growth in each quarter this year to better reflect its top line. For the current quarter, RH sees demand growth of positive mid-single digits and revenues of negative low-single digits. For fiscal 2024, the company guided demand growth of between 12% and 14% and revenue growth of 8% to 10%.

“While we expect business conditions to remain challenging until interest rates ease and the housing market begins to rebound, we expect our demand trends to accelerate throughout fiscal 2024,” said RH Chairman and CEO Gary Friedman.

The RH share price has remained rangebound over the past 15 months, oscillating roughly within a $200-point band. More recently, the stock has crossed back above the 200-day moving average leading into the company’s earnings release. Amid an expected news-driven rally on Thursday, investors should monitor how the price responds to the $320 level—an area on the chart where it may find overhead resistance from the mid December swing high. A close above this level opens the door for a move up to around $403, where the price could encounter selling pressure near the August 2023 peak.

RH shares gained 8.5% to $322.30 in afterhours trading Wednesday.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Read the original article on Investopedia.

分类: financial

S&P 500 Gains and Losses Today: Solar Stocks Shine, Shaking Off Recent Slump

星期三, 03/27/2024 - 14:54
Investopedia

' title='A chart shows the companies in the S&P 500 with the biggest gains and losses on March 27.'>

Investopedia



Key Takeaways
  • The S&P 500 added 0.9% on Wednesday, March 27, 2024, logging its first positive day after three consecutive losing sessions.
  • Solar stocks posted solid daily gains, with shares of Enphase Energy and First Solar pushing higher.
  • Shares of networking equipment provider Arista Networks tumbled amid reports that its founder has agreed to settle insider trading charges.


The S&P 500 moved 0.9% higher, logging its first positive trading day since jumping to an all-time closing high last Thursday.

Other major U.S. equities indexes also advanced on the day, with the Dow and the Nasdaq adding 1.2% and 0.5%, respectively. The daily gains came despite underperformance from the technology and the communication services sectors, which have played a key role in underpinning the market's rally in early 2024.

Shares of solar technology company Enphase Energy (ENPH) led the S&P 500 higher, soaring 9.6%. Heading into Wednesday's session, Enphase shares were down roughly 18% year to date amid sluggish demand for solar equipment. However, the company expects demand to recover in Europe during the later part of the year, and it could see a boost from its energy monitoring and distribution services.

Enphase was not the only bright spot in the solar industry. Shares of photovoltaic (PV) solar solutions provider First Solar (FSLR) jumped 9.3%. First Solar faces similar headwinds related to high interest rates and slumping demand and the company is positioned to benefit from tax credits.

Cintas (CTAS) shares added 8.3% after the provider of workplace equipment and cleaning supplies reported better-than-expected quarterly results and boosted its full-year guidance. Mandates for remote workers to return to the office have helped lift demand for the company's uniforms and business services.

Shares of Albemarle (ALB), the world's largest lithium producer, advanced 8.2% following news that Chile's government has opened additional lithium-rich salt flats to private investment. The South American country is home to the second-largest lithium industry in the world after Australia.

Arista Networks (ANET) shares posted the steepest losses among S&P 500 stocks, tumbling 3.2% after reports that company founder Andy Bechtolsheim will pay $1 million to settle charges of insider trading brought by the U.S. Securities and Exchange Commission (SEC). As part of the settlement, Bechtolsheim agreed not to serve as a director or officer of a publicly traded company for five years.

After weeks of solid gains that helped push equities indexes to all-time highs, shares of companies engaging with artificial intelligence (AI) stumbled on Wednesday. ServiceNow (NOW) shares fell 2.5%, losing ground after seven straight sessions in positive territory bolstered by the enterprise cloud software provider's generative AI capabilities. Shares of AI chip giant Nvidia (NVDA) also fell 2.5% amid news of company insiders selling positions in the red-hot stock.

Netflix (NFLX) shares slipped 2.5% after Wedbush removed the streaming service's stock from its Best Ideas List, predicting a deceleration in subscriber growth. In addition, a judge ruled against Netflix's bid to dismiss a defamation case related to its "Inventing Anna" miniseries.

Read the original article on Investopedia.

分类: financial

Amazon Completes $4 Billion Investment in AI Startup Anthropic To Advance GenAI Edge

星期三, 03/27/2024 - 14:46
Bloomberg / Contributor / Getty Images

' title='Amazon '>

Bloomberg / Contributor / Getty Images



Key Takeaways
  • Amazon said it would invest $2.75 billion in artificial intelligence (AI) startup Anthropic, adding to the $1.25 billion it invested previously as part of a $4 billion financial commitment to expand its reach with generative AI. 
  • As part of Amazon's collaboration with Anthropic, Amazon Web Services customers have access to some of Anthropic's top products.
  • Earlier this month, Anthropic launched Claude 3, the latest generation of its AI model.
  • Amazon said Anthropic's most advanced model in the Claude 3 family called Claude 3 Opus outperforms OpenAI's GPT-4 in reasoning, math, and coding, among other benchmarks.


Amazon (AMZN) said Wednesday it would invest $2.75 billion in artificial intelligence (AI) startup Anthropic, adding to the $1.25 billion it invested previously as part of a $4 billion financial commitment to growing its reach in generative AI.

Amazon noted that as part of its collaboration with Anthropic, Amazon Web Services (AWS) customers have access to some of Anthropic's top products through Amazon Bedrock, a managed service offering foundation models for building generative AI applications on AWS.

Earlier this month, Anthropic launched Claude 3, the latest generation of its AI model. Amazon said Anthropic's most advanced model in the Claude 3 family called Claude 3 Opus outperforms OpenAI's GPT-4 in reasoning, math, and coding, among other benchmarks.

AWS Vice President of Data and AI Swami Sivasubramanian said generative AI is “poised to be the most transformational technology of our time.” He added that "we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next.”

Amazon shares finished 0.9% higher at $179.83 Wednesday. They’ve gained about 20% so far this year.

TradingView

' title='AMZN'>

TradingView

Read the original article on Investopedia.

分类: financial

What To Expect From the Fed's Preferred Inflation Gauge This Week

星期三, 03/27/2024 - 13:55
PixelsEffect / Getty Images

' title='Family shopping in a grocery store'>

PixelsEffect / Getty Images



Key Takeaways
  • February results for the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures Index, will be released Friday.
  • The Federal Reserve increasingly has said it will rely on data when determining the timing of interest rate cuts this year.
  • Economists expect inflation ticked up in February on a month-over-month and year-over-year basis.


Economists expect that the Federal Reserve's preferred measure of inflation will once again show an increase, which could create a conundrum for central bank officials as they try to chart the path ahead for interest rates.

The Personal Consumption Expenditure (PCE) report released Friday is expected to show a 0.4% increase for February, according to a survey of economists conducted by Dow Jones Newswires and The Wall Street Journal. It would be the second consecutive month that consumer prices increased, making it more difficult for Federal Reserve officials to write it off as a temporary setback in their fight against inflation.

"The takeaway from the March meeting of the Federal Open Market Committee [FOMC] is that policymakers aren't ignoring recent inflation data but aren't panicking," wrote Oxford Economics' Nancy Vanden Houten. "The Fed clearly wants to see more inflation data before cutting."

Friday's reading will also show inflation rising 2.5% over the year ending in February, if economists are correct. That would be above January's annual rate of 2.4%.

The Federal Reserve has been working to tame inflation since it began rising in the economic recovery from the pandemic-induced downturn. Over roughly a year and a half, the Fed raised rates 5 percentage points. Officials have signaled that a cut is on the horizon, and have said they are relying on the data to help them decide on a timeline.

A second consecutive month of data showing growing inflation may not signal a resurgence of inflation, but it could push rate cuts further down the road.

"The risk of easing monetary policy too much or too soon is that it could allow above-target inflation to become entrenched and halt the progress that we have seen," said Fed Governor Lisa Cook in prepared remarks Monday. "... The path of disinflation, as expected, has been bumpy and uneven, but a careful approach to further policy adjustments can ensure that inflation will return sustainably to 2% while striving to maintain the strong labor market."

Read the original article on Investopedia.

分类: financial

Why S&P Cut Outlook for Five US Regional Banks With Heavy Commercial Real Estate Exposure

星期三, 03/27/2024 - 13:10
Bloomberg / Contributor / Getty Images

' title='M&T Bank branch'>

Bloomberg / Contributor / Getty Images



Key Takeaways
  • Five smaller U.S. banks with exposure to commercial real estate have been dealt downgraded credit-rating outlooks by S&P Global Ratings.
  • The ratings outlook on the five regional lenders was lowered to "negative" from "stable" Tuesday.
  • The affected banks are First Commonwealth Financial Corp., M&T Bank Corp., Synovus Financial Corp., Trustmark Corp., and Valley National Bancorp.
  • S&P Global said the five banks were among the most exposed to commercial real estate in its coverage, so the outlook downgrades reflect the chance sectoral stress could hurt them.


Five smaller U.S. banks with exposure to commercial real estate have been hit with credit-rating outlook downgrades, the latest development threatening to make borrowing more difficult for businesses and individuals.

S&P Global Ratings downgraded its ratings outlook on five regional lenders late Tuesday to "negative" from "stable," while affirming their ratings. The five are First Commonwealth Financial Corp. (FCF), M&T Bank Corp. (MTB) , Synovus Financial Corp. (SNV), Trustmark Corp. (TRMK), and Valley National Bancorp (VLY).

The ratings agency said the five were among the most exposed to commercial real estate in its coverage and that the downgrades reflect the possibility that stress in the sector could hurt the asset quality and performance of these regional banks. Loans on investor-owned commercial real estate, multifamily, and construction and development properties made up between roughly 25% and 55% of the these banks' lending as of the end of 2023.

Commercial real estate has been hit by lower prices and higher vacancies as workers continue to shun the commute to the office after the pandemic.

“Most of these banks also have higher-than-peer exposures to loans on office properties, which we generally consider to be the riskiest part of CRE lending because of the secular shift in work-at-home arrangements and often sharply reduced property prices,” S&P Global said, noting however, than none of the five has so far recorded sharp rises in delinquent and non-accrual lending and all have maintained conservative lending standards when doling out funds.

The ratings agency said that while cuts in interest rates by the Federal Reserve could alleviate some of the stress in commercial real estate and reduce the risk of a rush of soured loans, "higher-for-longer" interest rates pose a risk.

In a note out Wednesday, Wedbush Securities analysts said they remain cautious on the overall banking sector as the outlook for interest rates "leans higher for longer."

"Banks with larger consumer and commercial real estate portfolios, especially office and rent-regulated multifamily, may see above-average increases in credit costs," it added.

S&P said it now has negative outlooks due to sizable commercial-real estate exposure on nine of the U.S. banks—or 18% of the lenders—it rates. 

Smaller U.S. banks have a higher portion of their loan portfolios in commercial real estate than do their larger counterparts, a point that came into sharp relief earlier this year when New York Community Bancorp Inc. (NYCB) reported a surprise quarterly loss  and made a series of disclosures about problems with real estate loans and lapses in internal controls that dragged the shares of most of its peers lower.

The SPDR S&P Regional Banking exchange-traded fund (ETF) (KRE), a broad gauge of the sector, is down almost 3% so far this year, as of Wednesday afternoon trading.

Read the original article on Investopedia.

分类: financial

Kleenex Maker Kimberly-Clark Restructures Operations To Become 'More Agile and Focused'

星期三, 03/27/2024 - 13:10
Justin Sullivan / Staff / Getty Images

' title='Kleenex tissue'>

Justin Sullivan / Staff / Getty Images



Key Takeaways
  • Kimberly-Clark on Wednesday announced a restructuring it said will make its operating structure "more agile and focused."
  • The consumer products company will be divided into three new business segments.
  • Kimberly-Clark also is targeting improvements in its cost structures and supply chain.


Consumer products giant Kimberly-Clark (KMB) on Wednesday announced what it called the next phase of its transformation, which includes “a new operating model and key commercial initiatives designed to grow its brands and businesses at a faster pace than its categories.”

Chief Executive Officer (CEO) Mike Hsu said the Kleenex and Huggies maker’s operating structure would be “more agile and focused.”

Kimberly-Clark noted it will now be divided into three new business segments: North America, International Personal Care, and International Family Care and Professional. It also plans to make corporate and regional overhead cost structures more efficient, and modernize its global supply chain.

The company said that the transformation began in the current quarter and will run through the end of 2026. It anticipates the moves will result in a $1.5 billion pre-tax charge.

In addition, Kimberly-Clark set long-term targets of organic net sales growth ahead of market growth, with adjusted operating profit and adjusted earnings-per-share (EPS) growth of a mid-to-high single-digit percentage, and annual free cash flow of at least $2 billion.

Shares of Kimberly-Clark were up 0.5% to $126.69 as of about 3 p.m. ET Wednesday, and have gained around 3.6% year to date.

TradingView

' title='KMB'>

TradingView

Read the original article on Investopedia.

分类: financial

Top Stock Movers Now: Cintas, Merck, GameStop, and More

星期三, 03/27/2024 - 12:13
Smith Collection / Gado / Contributor / Getty Images

' title='Cintas'>

Smith Collection / Gado / Contributor / Getty Images



Key Takeaways
  • The S&P 500 and Dow gained while the Nasdaq was little changed at midday Wednesday, March 27, 2024, as most sectors aside from technology and communication services rose.  
  • Employer return-to-work policies boosted demand for uniforms and business services from Cintas, and shares hit a record high.
  • GameStop shares fell after the video game retailer missed earnings and revenue estimates amid an ongoing shift to digital downloads and softening consumer spending.


The S&P 500 and Dow gained while the Nasdaq was little changed at midday, as most sectors aside from technology and communication services rose.  

Cintas (CTAS) shares hit an all-time high as the provider of uniforms and services for businesses beat profit and sales estimates and raised its outlook as return-to-office mandates boosted demand.

Also trading at record highs were shares of Merck (MRK) following approval by the Food and Drug Administration (FDA) of its treatment for a rare condition that causes high blood pressure in patients because of restrictions in their lung arteries.

Moderna (MRNA) shares gained as the vaccine maker announced an up to $750 million investment from Blackstone Life Sciences (BX) to develop a flu shot, and said several new vaccines would move to Phase 3 trials.

The rally in shares of Donald Trump’s Trump Media & Technology Group (DJT) continued after they soared in their first day of trading yesterday.

Shares of Netflix (NFLX) lost ground as a judge refused to dismiss a defamation lawsuit against the streaming service over its miniseries, “Inventing Anna.”

GameStop (GME) shares sank after the video game retailer missed earnings and revenue estimates amid an ongoing shift to digital downloads and softening consumer spending.

Oil futures slipped and gold prices rose. The yield on the 10-year Treasury note dropped. The U.S. dollar gained on the euro and pound, but lost ground to the yen. Most major cryptocurrencies traded in the red.

TradingView

' title='CTAS'>

TradingView

Read the original article on Investopedia.

分类: financial

Biggest US Sports Betting Companies Form Association To Promote Responsible Online Gaming

星期三, 03/27/2024 - 11:41
Bloomberg / Contributor / Getty Images

' title='DraftKings'>

Bloomberg / Contributor / Getty Images



Key Takeaways
  • Seven of the largest U.S. sports betting companies have formed the Responsible Online Gaming Association to promote responsible online gaming and address problem gambling.
  • The group includes BetMGM, bet365, DraftKings, Fanatics, FanDuel, Hard Rock Digital, and Penn Entertainment, which together account for more than 85% of the legal online sports betting and iGaming industry.
  • Sports betting is either legal or in the process of being legalized in most of the U.S.
  • Sports betting has become a massive industry that has attracted scrutiny of its impact on sports leagues and their fans.


Seven of the largest sports betting companies in the U.S. are joining forces to create a new trade group, the Responsible Online Gaming Association (ROGA), the companies announced Wednesday.

The group includes BetMGM (MGM), bet365, DraftKings (DKNG), Fanatics, FanDuel (FLUT), Hard Rock Digital, and PENN Entertainment (PENN), which together account for more than 85% of the legal online sports betting and iGaming market in the U.S. The companies have pledged at least $20 million in total to fund the group, which will work to promote responsible online gaming and address problem gambling as sports betting becomes more widely legalized and the industry grows.

The group will work to "drive both consumer and industry responsible gaming education and awareness," as well as fund research on the effectiveness of responsible gaming policies, the companies said. The companies will also share data to create a database to support information sharing to protect consumers.

"By coming together with a clear set of objectives, ROGA and our members will work to enhance consumer protections and help provide easier and more efficient access to responsible gaming tools for consumers to enjoy the entertainment of online gaming," ROGA Executive Director and Nevada Council on Problem Gambling President Dr. Jennifer Shatley said in a release.

"Together, our members will work alongside researchers, experts, regulators and stakeholders to promote responsible online gaming and maximize our efforts to support additional responsible gaming education and awareness."

As the sport betting industry grows, it's attracted scrutiny of its impact on sports leagues and their fans, with sports gambling commanding recent headlines from "March Madness" brackets to Los Angeles Dodgers star Shohei Ohtani's interpreter being fired for allegedly stealing millions from the two-time MVP to pay sports gambling debts. Cleveland Cavaliers coach J.B. Bickerstaff recently said he had received threats from gamblers who had gotten his telephone number.

Sports betting is legal or in the process of being legalized in most of the country, and an estimated 2.5 million Americans have a "severe gambling problem," according to the National Council on Problem Gambling, with another 5 million to 8 million people classified as having a "mild" or "moderate" gambling problem.

Read the original article on Investopedia.

分类: financial

Carnival Stock Rises After Posting Smaller-Than-Expected Q1 Loss

星期三, 03/27/2024 - 11:37
AaronP/Bauer-Griffin / Contributor / Getty Images

' title='Carnival cruise ship'>

AaronP/Bauer-Griffin / Contributor / Getty Images



Key Takeaways
  • Carnival Corp. stock turned higher in intraday trading Wednesday after the cruise line posted a smaller adjusted loss than analysts expected.
  • Full-year adjusted income guidance got a slight bump, but Carnival's projection is below analyst estimates.
  • The company also acknowledged that Tuesday's collapse of the Francis Scott Key Bridge in Baltimore and conflict in the Red Sea could affect its full-year earnings.


Carnival Corp. (CCL) shares turned higher in intraday trading Wednesday after the cruise line posted a smaller adjusted first-quarter loss than analysts expected.

Carnival posted record first-quarter revenue of $5.41 billion, narrowly missing analyst estimates compiled by Visible Alpha of $5.43 billion. The cruise line also posted a smaller adjusted net loss than expected of $180 million, or an adjusted loss of 14 cents per share.

The company raised its full-year guidance, while noting that Tuesday's collapse of Baltimore's Francis Scott Key Bridge isn't yet included, due to how recently it took place. The bridge collapse is currently estimated to ding the company's full-year net income by up to $10 million, and continuing to reroute ships to avoid conflict in the Red Sea could affect adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by about $130 million.

Carnival is currently projecting full-year 2024 adjusted income of about $1.28 billion, up from a prior outlook of $1.2 billion but still below analyst estimates of about $1.36 billion.

"This has been a fantastic start to the year. We delivered another strong quarter that outperformed guidance on every measure, while concluding a monumental wave season that achieved all-time high booking volumes at considerably higher prices," Carnival Chief Executive Officer (CEO) Josh Weinstein said.

Carnival has only posted one profitable quarter since 2020, fiscal 2023's third quarter. The cruise line and rivals Royal Caribbean Cruises Ltd. (RCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) have worked in recent quarters to make up for the billions of dollars they lost because of the pandemic.

Carnival shares were up nearly 3% at $17.55 around 1:30 p.m. ET Wednesday after slipping to $16.17 early in the session. They have gained 90% over the last 12 months.

Read the original article on Investopedia.

分类: financial

Moderna Gets $750 Million in Flu Shot Funding, Stock Advances

星期三, 03/27/2024 - 11:21
Erica Denhoff / Icon Sportswire via Getty Images

' title='Moderna sign at Fenway Park stadium in Boston'>

Erica Denhoff / Icon Sportswire via Getty Images



Key Takeaways
  • Moderna announced Wednesday that it had received up to $750 million from Blackstone Life Sciences to advance its flu program.
  • The biotech company also said three other experimental vaccines would be moving to Phase 3 trials.
  • The news about these four vaccine projects follows Tuesday's report of a successful trial of Moderna's new COVID-19 shot.


Moderna Inc. (MRNA) shares advanced Wednesday as the biotech firm used its “Vaccines Day” event to make key announcements about new funding and the results of several vaccine trials.

The drug maker said it recently entered into a development and commercialization funding agreement with Blackstone Life Sciences (BX) in which Blackstone will provide up to $750 million to advance Moderna’s program to create a flu vaccine. It added that Blackstone’s return would be “based on cumulative commercial milestones and low-single digit royalties.”

Nicholas Galakatos, global head of Blackstone Life Sciences, said the collaboration “is another example of our long-standing strategy to partner with the world’s leading life science companies to advance their critical path vaccines, medicines, and medical technologies to patients.”

Moderna also reported positive clinical data from three new vaccines to fight Epstein-Barr virus, Varicella-Zoster virus, and norovirus, and they will be advanced toward Phase 3 trials. Tuesday, the company said a Phase 3 study of its latest COVID-19 shot also met its primary endpoints and posted a better immune response to both the original and Omicron variants than its current Spikevax vaccine.

Chief Executive Officer (CEO) Stephane Bancel said that Moderna now has five vaccines in Phase 3 trials and three more moving toward them, giving the company “a very large and diverse portfolio addressing significant unmet medical needs.”

Moderna shares were up 1.8% to $109.38 as of 1:19 p.m. ET Wednesday but down about 2.8% so far in 2024. 

Read the original article on Investopedia.

分类: financial

Coinbase Loses Bid To Dismiss SEC Lawsuit Against It, Stock Slips

星期三, 03/27/2024 - 10:19
Robert Nickelsberg / Contributor / Getty Images

' title='Coinbase signage during the company's initial public offering (IPO) at the Nasdaq market site April 14, 2021 in New York City. '>

Robert Nickelsberg / Contributor / Getty Images



Key Takeaways
  • Coinbase Global Inc. lost a motion to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) for violating securities law.
  • A U.S. district judge found that the commission "sufficiently pleaded" that Coinbase operates as an exchange, broker, and clearing agency under federal law.
  • The decision comes as the SEC is analyzing applications for spot ether exchange-traded funds (ETFs), months after spot bitcoin ETFs were approved by the agency.
  • The case now moves to discovery ahead of a trial.


Coinbase Global Inc. (COIN) suffered a setback as a judge denied the company’s motion to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) for violating securities laws. The company's stock dropped as much as 4.8% on Wednesday but eventually gained some lost ground.

Round 1 to SEC

U.S. District Judge Katherine Polk Failla’s decision will allow the lawsuit to go forward, finding that the SEC has "sufficiently pleaded" that Coinbase operates as an exchange, broker, and clearing agency under federal securities laws, and through its staking program engages in the unregistered offer and sale of securities. 

“We were prepared for this, and we look forward to uncovering more about the SEC’s internal views and discussions on crypto regulation,” said Coinbase Chief Legal Officer Paul Grewal on X, formerly known as Twitter. “Early motions like ours against a government agency are almost always denied. But clarity is the ultimate goal and today’s decision continues us on that path.”  

The regulator sued Coinbase in June, alleging that the company violated securities laws by operating as an unregistered exchange, broker-dealer, and clearing agency. Coinbase filed a motion to dismiss in August. The case now moves to discovery ahead of a trial.

Order Not All Bad For Coinbase

But it wasn't all bad for Coinbase, either. The court did grant the crypto exchange's motion to dismiss with respect to the SEC’s claims that the company acts as an unregistered broker by making its wallet application available to customers.

“We also appreciate the court’s understanding that technology innovations like Coinbase Wallet do not and cannot implicate U.S. securities laws,” Grewal wrote.

Crypto lawyer Mike Selig said in an X post that it was a "significant setback for SEC w/ Judge Failla granting Coinbase’s motion to dismiss SEC’s claim that Coinbase acted as a broker by offering non-custodial digital wallet software. SEC aimed to discourage builders from developing peer-to-peer software. Didn’t work."

It’s the latest in an ongoing spat between the SEC and the crypto industry that seeks to mainstream access to cryptocurrencies. Earlier this year, the SEC approved the operation of spot bitcoin ETFs, leading to billions of dollars in inflows and driving the price of the biggest cryptocurrency by market capitalization to all-time highs. 

The SEC is analyzing proposals for spot ether ETFs, although there is doubt that it will receive a positive response given that ether is staked—a process in which cryptocurrency holders lock up their funds as collateral to support the operations of a blockchain network in exchange for rewards in the form of additional cryptocurrency.

Read the original article on Investopedia.

分类: financial

Merck Stock Hits Record High as FDA Approves Its Cardiovascular Disease Drug

星期三, 03/27/2024 - 09:54
Christopher Occhicone / Bloomberg via Getty Images

' title='Sign outside Merck & Co. headquarters in Kenilworth, New Jersey'>

Christopher Occhicone / Bloomberg via Getty Images



Key Takeaways
  • Merck & Co. shares soared to a record high Wednesday, a day after the Food and Drug Administration (FDA) approved the drug maker's treatment for a rare cardiovascular disease.
  • The drug, named Winrevair, is for patients suffering from pulmonary arterial hypertension (PAH), a condition in which blood pressure is raised because of restrictions in lung arteries.
  • Merck called Winrevair a first-of-its-kind medicine for PAH.


Merck & Co. (MRK) shares hit an all-time high Wednesday, a day after the drug maker announced that the Food and Drug Administration (FDA) approved its treatment for a rare condition that causes high blood pressure in patients because of restrictions in their lung arteries.

The injectable drug, which goes by the brand name of Winrevair, is for adults suffering from pulmonary arterial hypertension (PAH). The company explained that Winrevair helps those taking it to increase exercise capacity and reduce their risk of worsening health events.

Merck said Winrevair is the first FDA-approved activin signaling inhibitor therapy for PAH, representing a new class of therapy. The company noted the FDA had previously given it Breakthrough Therapy Designation.

Marc Humbert, who was an investigator in the Phase 3 study of Winrevair, called the approval “an important milestone, as it offers healthcare providers a novel therapeutic option that targets a new PAH treatment pathway.”

Winrevair reportedly is priced at $14,000 per dose, and patients take the injection once every three weeks to treat the disease, which affects nearly 40,000 people in the U.S. Merck, which paid $11.5 billion for the company developing the medicine in 2021, generates more than 40% of its revenue from cancer treatment Keytruda, the world’s top-selling drug.

Shares of Merck were up 3.9% to $130.46 as of 11:50 a.m. ET Wednesday after hitting a record-high $133.10 earlier in the session. They are up almost 20% so far this year.

TradingView

' title='MRK'>

TradingView

Read the original article on Investopedia.

分类: financial

Robinhood Stock Rises on Launch of Credit Card With 3% Cash Back

星期三, 03/27/2024 - 08:25
Jose Sarmento Matos / Bloomberg via Getty Images

Vlad Tenev, Robinhood Markets CEO, during a Bloomberg Television interview in London, UK, on Nov. 29, 2023.' title='Vlad Tenev, Robinhood Markets CEO'>

Jose Sarmento Matos / Bloomberg via Getty Images

Vlad Tenev, Robinhood Markets CEO, during a Bloomberg Television interview in London, UK, on Nov. 29, 2023.


KEY TAKEAWAYS
  • Shares of Robinhood Markets rose Wednesday after the online trading app said it was launching a credit card.
  • Robinhood said the card is available exclusively to its premier Robinhood Gold customers and comes after it bought X1, a credit-card startup, last year.
  • The Robinhood Gold Card will have no annual fee, no foreign transaction fees, and offer 3% cash back, part of the trading app’s goal of being a one-stop shop for financial services. 


Shares in Robinhood Markets (HOOD) rose Wednesday morning after the online trading app said it was launching a credit card, as it moves to become a one-stop shop for financial services.

Robinhood said the card is available exclusively to its premier Robinhood Gold customers and comes after it bought X1, a credit-card startup, last year. The Robinhood Gold Card will have no annual fee, no foreign transaction fees, and offer 3% cash back, in the form of reward points, on spending. Bookings made via Robinhood's new travel portal will fetch 5% cash back, the company said.

The new credit card will "bring us one step closer to the goal of giving everyone better access to the financial system,” Robinhood co-founder and Chief Executive Officer (CEO) Vlad Tenev said in a press release. Robinhood Gold members will get broader access by the end of the year to the card, which is currently only available for those on a waitlist.

Robinhood's credit card launch comes two years after the company launched a debit card.

Tenev said the 3% cash back is well above industry norms and would appeal to the online trading app’s typical customers in their 30s, college students, or recent graduates in their first jobs—as well as draw new people to its platform.

“We surveyed the entire landscape, the highest that's commonly available with no limits is around 2% ... so 3% is beyond what anyone else offers,” Tenev said in an interview with CNBC Wednesday morning, adding that the card was a "no-brainer value proposition" likely to draw in customers who aren't interest in trading.

He said Robinhood is aiming to earn fees two ways from the card: interchange revenue—the fees it charges merchants for swiping cards—and fees from people who hold balances.

“There's generally two types of customers that use credit cards. There's folks that pay off their balance in full every month, and those are called more transactors ... but it's also an amazing card for people that are building credit,” he said.

Asked whether the company, which was brought before Congress after it had issues with a capital call in Jan. 2021, could handle its rollout into broader financial services, he said the company has experienced staff who understand credit from buying X1. “Back in 2021, we were still a startup, we were a small company, we obviously learned a lot from everything that happened around COVID, from the huge spike of retail investing to all the events around the meme stocks,” he told CNBC.

The online brokerage firm synonymous with the pandemic-era meme stock frenzy reported $80.9 billion in equity trading volume during February this month, representing a 36% increase from January. It also said that it had 23.6 million funded customers at the end of February.

Robinhood shares were up 2.5% to $19.77 as of 10:20 a.m ET Wednesday. They have gained about 60% year to date.

Read the original article on Investopedia.

分类: financial

Chinese EV Maker Nio ADRs Fall Following Cuts To Q1 Delivery Projections

星期三, 03/27/2024 - 07:35
CFOTO / Future Publishing via Getty Images

' title='NIO electric car'>

CFOTO / Future Publishing via Getty Images



Key Takeaways
  • American Depositary Receipts (ADRs) of Chinese electric vehicle (EV) maker Nio fell in premarket trading Wednesday after the company announced cuts to its Q1 delivery projections.
  • Nio reduced the number of deliveries it was projecting for the current quarter, to 30,000 vehicles from the previous outlook of 31,000 to 33,000 vehicles.
  • Demand for electric vehicles has slowed in China, leading some EV makers like Tesla to offer price cuts or other sales incentives.


American Depositary Receipts (ADRs) of Chinese electric vehicle (EV) maker Nio (NIO) fell in premarket trading Wednesday after the company announced reductions to its first-quarter delivery projections.

Nio revised its projections to an expected 30,000 vehicle deliveries in the current quarter, down from its previous outlook of 31,000 to 33,000 vehicles. The EV maker delivered just over 50,000 vehicles in the previous quarter, and about 160,000 for all of fiscal 2023.

The lowered projection would be a decrease from the first quarter of 2023, when Nio delivered 31,041 vehicles.

The announcement from Nio comes less than a week after reports emerged that Tesla (TSLA) was cutting production at its factory in Shanghai over decreasing demand. Competition has increased in the EV market overall, and especially in China with homegrown companies like XPeng (XPEV) and BYD (BYDDY) along with international competitors like Tesla.

The EV market in China has also seen several companies like Tesla shift prices and offer other sales incentives in attempts to meet demand while maintaining profit margins. Nio and other Chinese companies have looked to potentially expand their reach to other regions like Europe, where they could likely sell vehicles without having to cut prices as much as they would in their home country.

ADRs of Nio, which were down about 3.5% premarket Wednesday, had lost about 43% of their value in the last 12 months through Tuesday, when they closed at $4.78.

Read the original article on Investopedia.

分类: financial

5 Things to Know Before the Stock Market Opens

星期三, 03/27/2024 - 05:36

News of the day for March 27, 2024

Yuki Iwamura / Bloomberg / Getty Images

' title='A GameStop store in New York City.'>

Yuki Iwamura / Bloomberg / Getty Images

Shares of GameStop (GME) are sinking after the meme stock’s quarterly earnings came in short of expectations; Robinhood Markets (HOOD) is surging after the online trading app announced a credit card launch; Trump Media & Technology Group (DJT) is soaring again after a strong trading debut; Merck & Co. (MRK) is gaining after the U.S. approved its new drug to treat pulmonary arterial hypertension; and H&M’s spring look is winning fans. U.S. stock futures are higher, while bitcoin (BTCUSD) is holding levels around $70,000. Here’s what investors need to know today. 

1. Legacy Meme Stock GameStop Slumps on Quarterly Earnings Miss

Shares in GameStop (GME) were down 17% about two hours before the opening bell after the legacy meme stock disclosed quarterly earnings that fell considerably short of Wall Street’s expectations amid an ongoing shift to digital downloads and softening consumer spending. In the three-month period ending Feb. 3, the brick-and-mortar video game retailer posted adjusted earnings of 22 cents per share, compared to analysts’ estimates of 30 cents a share, while its $1.79 billion revenue for the period also missed estimates.

2. Robinhood Soars on Plan to Launch Credit Card

Shares in Robinhood Markets (HOOD) surged about 7% in premarket trading after the online trading app said it was launching a credit card, as it moves to become a one-stop stop for financial services. Robinhood said the card is available exclusively to Robinhood Gold customers and comes after it bought X1 Inc., a credit-card startup, last year. The Robinhood Gold Card will have no annual fee, no foreign transaction fees, and offer 3% cash back, in the form of reward points, on spending. Bookings made via Robinhood's travel portal will fetch 5% cash back, the company said.

3. Truth Social Owner Rises Before Second Day of Trading, Boosting Donald Trump's Wealth

Shares of Trump Media & Technology Group (DJT), newly merged with shell company Digital World Acquisition Corp., jumped about 13% in premarket trading ahead of its second day as a public company, after it ended Tuesday up 16% at $57.99 a share, a level that made former U.S. President Donald Trump’s stake valued at more than $4.6 billion. Trump Media is the owner of the social network Truth Social, and the the ticker "DJT" corresponds to Trump’s initials. Some have viewed Trump Media's intentions to go public as an effort to boost Trump's finances as he faces hundreds of millions of dollars in growing legal fees and penalties, which could continue to grow as the presumptive Republican presidential nominee's other trials continue.

4. Merck Rises as US Approves Drug to Treat Potentially Fatal Pulmonary Arterial Hypertension

Merck shares rose more than 4% in premarket trading after the Food and Drug Administration (FDA) approved its new drug to treat pulmonary arterial hypertension, a potentially fatal disease that affects nearly 40,000 people in the U.S. The drug will be sold under the name Winrevair. Merck paid $11.5 billion for the company developing the medicine in 2021. More than 40% of Merck's revenue reportedly comes from cancer treatment Keytruda, the world’s top-selling drug.

5. H&M Earnings Beat Expectations on Popular Spring Look

Hennes & Mauritz posted a stronger-than-expected operating profit, sending its Stockholm-listed shares surging. New H&M Chief Executive Officer (CEO) Daniel Erver said shoppers liked the brand's spring collections. “The quarter’s sales gradually improved during February with well-received Spring collections, which is a positive sign that we are on the right track,” he said in the earnings statement. The Swedish group has struggled to maintain its position in the fast-fashion sector as it trails bigger rival Zara while low-cost online retailers such as China’s Shein gain market share. The Swedish retailer's shares surged more than 11% in Stockholm trading.

Read the original article on Investopedia.

分类: financial

nCino Stock Surges After Earnings Beat as Subscriptions Jump—Key Levels to Watch

星期三, 03/27/2024 - 04:55

The Cloud-Based Bank's Subscriptions Increased 16% in the Fourth Quarter

Source: TradingView.com

Key Takeaways
  • Shares of nCino jumped in premarket trading Wednesday morning after the cloud-based banking company surpassed analysts' quarterly earnings expectations.
  • The company said it was receiving a positive tone from customers and expects a return of more-normal buying conditions in the year ahead.
  • nCino shares may find resistance around $35.50 near the top trendline of a trading range, before possibly making a move to the next key area of resistance around $47.


Cloud-based banking company nCino (NCNO) posted a quarterly earnings that sailed past analysts’ forecasts, sending its shares sharply higher ahead of the opening bell Wednesday morning.

The company, which primarily makes money by charging customers a subscription fee to access its cloud banking platform, reported fiscal 2024 fourth-quarter earnings of a penny a share, surprising analysts, who expected the financial services provider to disclose a loss of 12 cents per share. Revenue in the period of $123.7 million grew 13% year-over-year (YOY), but fell slightly short of the $124.62 million consensus view. Meanwhile, subscription revenues in the quarter tallied $107.5 million, representing a 16% jump from a year earlier.

For the current quarter ending in April, the company guided revenue of between $126 million and $127 million, a bit under Wall Street expectations. The company projects subscription revenue in the period of between $108.75 million and $109.75 million. For fiscal 2025, the company anticipates revenue of $538.5 million to $544.5 million, up from $476.5 million in fiscal 2024.

"The team's solid execution and continued focus on product innovation and experience improvements, coupled with more normal buying cycles and positive tone from customers, fuels our optimism for the year ahead and beyond.” CEO and Chairman Pierre Naudé said in the company’s earnings statement.

The company also announced that Executive Vice President Paul Clarkson will replace President and Chief Revenue Officer Josh Glover who is leaving the firm to pursue an opportunity outside the financial services industry, adding that Glover will remain as a consultant with nCino through June, helping to ensure a smooth transition.

After bottoming out in March last year, the nCino share price promptly moved back above the 200-day moving average but has remained rangebound since, with neither the bulls nor bears able to gain the ascendency. Amid the stock’s anticipated post-earnings pop, keep a close eye on the $35.50 level, an area where the price may find resistance from the trading range’s top trendline. A breakout above this closely-watched location could see the price make a move up towards the next key resistance level around $47 near the March 2022 countertrend swing high.

Shares of nCino were up 12.7% at $34.01 about three hours before Wednesday's opening bell. Through Tuesday's close, the stock had lost 11.4% of its value so far in 2024.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Read the original article on Investopedia.

分类: financial

GameStop Stock Plunges After Earnings Fall Short of Expectations—Key Level to Watch

星期二, 03/26/2024 - 19:30

The Company's Q4 Software Sales Fell 31%

Source: TradingView.com

Key Takeaways
  • GameStop shares plunged in extended trading on Tuesday after the company disclosed fourth-quarter earnings that came in considerably below analysts' expectations amid an ongoing shift to digital downloads and softening consumer spending. 
  • A 10-K filing revealed that the company has slashed jobs and exited several international markets in order to achieve sustained profitability.
  • Investors should monitor how the GameStop share price responds to its 2023 low at $11.83 for clues about the stock's next move.


Shares in brick-and-mortar video game retailer and legacy meme stock GameStop Corp. (GME) fell more than 15% in extended trading Tuesday evening after the company disclosed quarterly earnings that fell considerably short of Wall Street’s expectations amid an ongoing shift to digital downloads and softening consumer spending.

In the three-month period ending Feb. 3, the Grapevine, Texas-based company posted adjusted earnings of 22 cents per share, compared to analysts’ estimates of 30 cents a share. Revenue of $1.79 billion in the period fell from $2.23 billion a year earlier and missed the $2.05 billion consensus view. Breaking down the video game seller’s top line, hardware and accessories sales were $1.09 billion, representing a 12% year-over-year (YOY) decline, while software sales slumped 31% to $465 million.

"An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately," said Wedbush analyst Michael Pachter, according to Reuters. "Revenues are highly unlikely to rebound unless management figures out a way to drive store traffic," he added.

Gamestop also slashed jobs over the last year amid increasing online competition and softening consumer spending. At the start of February, the company had approximately 8,000 full-time salaried and hourly associates and between 13,000 and 18,000 part-time hourly associates globally, according to its annual 10-K report filed Tuesday evening.

This compares with around 11,000 full-time salaried and hourly employees and between 14,000 and 27,000 part-time hourly staff in 2023, per Reuters. In addition, the company has ceased operations in Ireland, Switzerland, and Austria as part of its goal to achieve sustained profitability.

The GameStop share price has remained entrenched within a multi-year downtrend, pressured by a long-term trendline connecting several prominent countertrend swing highs. Amid the earnings-driven sell-off, investors should monitor how the stock’s price responds to the 2023 low at $11.83. A reversal at this level could mark the beginning of a potential double bottom pattern, while a failure to hold this important chart level could act as catalyst for further falls in the share price.

Gamestop shares fell 15.2% to $13.14 in after-hours trading. Through Tuesday's close, the stock had lost about a third of its value over the past 12 months.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Read the original article on Investopedia.

分类: financial

How the Bridge Collapse in Baltimore Stands to Affect the Economy

星期二, 03/26/2024 - 17:22

The Port of Baltimore Handles Large Volumes of Car and Coal Shipments

Al Drago / Bloomberg / Getty Images

The Dali container vessel after striking the Francis Scott Key Bridge that collapsed into the Patapsco River in Baltimore, Maryland, US, on Tuesday, March 26, 2024.' title='The Dali container vessel after striking the Francis Scott Key Bridge that collapsed into the Patapsco River in Baltimore, Maryland, US, on Tuesday, March 26, 2024.'>

Al Drago / Bloomberg / Getty Images

The Dali container vessel after striking the Francis Scott Key Bridge that collapsed into the Patapsco River in Baltimore, Maryland, US, on Tuesday, March 26, 2024.


Key Takeaways
  • The Port of Baltimore, which leads the nation in automobile imports, could face an extended closure following the Tuesday collapse of the Francis Scott Key Bridge.
  • The port also exports the second-largest volume of coal in the nation.
  • President Joe Biden said the bridge is "vital to our economy," citing concerns about traffic and jobs tied to the port.


The tragic collapse on Tuesday of a major bridge in Baltimore could affect automobile imports, coal shipments and transportation across the Mid-Atlantic region, though analysts said the broader economic effects should be limited.

The Francis Scott Key Bridge collapsed in the early-morning hours after it was struck by a cargo ship, chartered by Danish logistics provider Maersk (AMKBY), that was leaving the Port of Baltimore. Officials closed the port to ship traffic following the incident, which left six people unaccounted for and heavy debris in the water.

Car and Coal Shipments Could be Affected

No other port in the country brings in more vehicles than Baltimore, totaling nearly 850,000 cars and light trucks in 2023, the 13th-straight year that the facility has led the nation in auto imports, according to Maryland Governor Wes Moore.

The port also handles large volumes of coal. S&P Global International statistics show the Port of Baltimore had the second-highest coal exports in the country during the second quarter of 2023, behind only the port in Norfolk, Va.

The incident has already undercut one major coal producer. Pennsylvania-based CONSOL Energy (CEIX) said that vehicle access to its marine terminal at the port had been delayed due to the Coast Guard’s safety zone in the area. The company's shares fell nearly 7% on Tuesday.

Biden Points to Impacts on Jobs and Traffic

President Joe Biden said that the bridge in Baltimore is "vital to our economy, and to our quality of life." He noted that the port supports about 15,000 jobs and that over 30,000 vehicles go over the bridge each day.

"As I told Governor Moore, I’ve directed my team to move heaven and earth to reopen the port and rebuild the bridge as soon as humanly possible," Biden told reporters.

JPMorgan Analysts See Muted Economic Fallout

Despite the disruption, analysts at JPMorgan said the economic consequences should be muted.

"Our initial assessment is that this development will likely only have minimal implications for vehicle inflation," wrote JPMorgan analysts Michael Feroli and Daniel Silver. "While Baltimore is the most important port for vehicle imports, many more vehicles are imported over land from Canada and Mexico."

They pointed to data from the Department of Transportation that showed when measured by total weight of imports, the Port of Baltimore ranks 17th in the nation.

Their note also said that vessels were already being diverted to other ports, including the Port of Virginia, which said it had the capacity to handle the extra loads. It's also noteworthy that some auto company terminals are in areas not choked off by the bridge collapse, the analysts said.

Read the original article on Investopedia.

分类: financial

S&P 500 Gains and Losses Today: UPS Stock Tumbles Amid Near-Term Challenges

星期二, 03/26/2024 - 15:11
Investopedia

' title='S&P 500 Biggest Gains & Losses March 26, 2024'>

Investopedia



Key Takeaways
  • The S&P 500 finished 0.3% lower on Tuesday, March 26, 2024, as a rally earlier in the session lost steam.
  • Although UPS posted projections for fiscal 2026 that beat estimates, shares of the package delivery giant tumbled as it warned of near-term headwinds.
  • McCormick shares soared after the spice producer posted better-than-expected quarterly results, buoyed by higher prices.


The S&P 500 slipped 0.3% Tuesday after trading higher for most of the session as a rally earlier in the day lost steam. The Nasdaq finished 0.4% lower, while the Dow was little changed.

Tuesday's decline came in the wake of one report showed an uptick in durable goods orders in February, boosted by an increase in spending on transportation equipment, while other data revealed consumer confidence ticking lower in March, reflecting concerns about the near-term trajectory of the economy.

Package delivery giant United Parcel Service (UPS) led losses on the index. While the company released projections for 2026 that beat estimates, UPS reportedly cautioned that the current quarter would be a difficult one, pointing to aggressive cost-cutting measures in response to the headwinds. UPS shares plummeted 8.2%.

Shares of International Paper (IP) dropped 6.5% amid reports that the company is in discussions to buy paper and packaging firm DS Smith in an all-stock deal worth around $7.2 billion. International Paper said the potential acquisition would enhance its position in the corrugated packaging business in Europe.

APA Corp. (APA) shares slipped 4.9% after analysts at Goldman Sachs lowered their price target on the stock. The losses marked a reversal from gains on Monday, when the oil and gas exploration and production firm got a boost from rising crude oil prices.

McCormick & Company (MKC) shares notched the S&P 500's top daily performance, soaring 10.5% after the producer of spices and seasonings beat profit and sales estimates for its fiscal first quarter of 2024. The company posted year-over-year growth in sales, net income, and earnings per share (EPS), with price increases and a higher gross profit margin helping offset flat demand.

Shares of data storage provider Seagate Technology (STX) jumped 7.4% as Morgan Stanley upgraded the stock to "overweight" and boosted its price target by 58% to $115. The analysts highlighted Seagate's advantage in heat-assisted magnetic recording along with increased demand related to generative artificial intelligence (AI) technology.

MGM Resorts International (MGM) shares gained 4.3% after Mizuho initiated coverage on the stock with a "buy" rating, pointing to growth opportunities related to a potential casino development in downstate New York as well as its BetMGM online sportsbook.

Read the original article on Investopedia.

分类: financial

Seagate Stock Jumps After Morgan Stanley Upgrades on Improving Margins

星期二, 03/26/2024 - 14:57

Booming AI Demand Could Also Provide a Boost

Aaron P / Bauer-Griffin / GC Images

' title='Seagate Technology Officers in Minneapolis, Minnesota'>

Aaron P / Bauer-Griffin / GC Images

Seagate Technology (STX) shares surged on Tuesday after Morgan Stanley upgraded the stock and raised its price target, citing the company’s leadership in developing higher-margin advanced data storage technologies.

Shares in the data storage solutions provider gained 7.4% to close Tuesday's session at $94.72. The stock has gained more than 50% over the past 12 months.

Morgan Stanley analysts, led by Erik Woodring, upgraded Seagate to overweight from equal-weight and raised their price target by 58% to $115.

“The key pillar of our more bullish outlook is STX's ability to drive margin expansion through technology leadership, areal density gains, recent cost actions, better pricing, and build-to-order dynamics that can help to improve factory utilization,” the analysts wrote in a note Tuesday. 

Morgan Stanley expects a transition to higher-margin heat-assisted magnetic recording disk drives to push Seagate’s gross margin up to a range of 32%-35%, 2 percentage points above management’s targets, within the next few years. 

Plus, Seagate could benefit from booming demand for artificial intelligence and the data storage solutions it requires. “While Gen AI’s impact on [hard disk drive] demand remains a debate amongst investors,” analysts wrote, “…we believe that more data created, retained, and stored will be a ‘rising tides lifts [sic] all boats’ dynamic for the storage industry,” analysts said. 

Read the original article on Investopedia.

分类: financial

页面

Stock