Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Investors witnessed significant gains in three notable stocks today: J.M. Smucker (NYSE: SJM), PayPal (NASDAQ: PYPL), and Lululemon Athletica (NASDAQ: LULU). Each company’s strong performance was driven by impressive earnings reports, strategic moves, and positive market sentiment.

J.M. Smucker (SJM) Surges on Strong Earnings and Portfolio Transformation

J.M. Smucker’s (SJM) shares experienced a 6.1% increase to $117.08 in early trading, marking the company’s best day in nearly four years.

The surge followed J.M. Smucker’s impressive quarterly earnings report, which showed adjusted earnings of $2.66 per share, surpassing Wall Street’s estimate of $2.35. Although net sales of $2.2 billion were slightly below the consensus of $2.24 billion, the acquisition of Hostess Brands was highlighted as a positive impact on the company’s portfolio. CEO Mark Smucker emphasized the strengthened business foundation due to portfolio transformation and key acquisitions.

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PayPal (PYPL) Gains on Undervaluation and Investor Confidence

PayPal’s stock (PYPL) experienced a notable 5% gain in a surprising rally, driven by investor confidence and strong market performance today. The company’s strong competitive position in the market was emphasized, with significant shareholders like Steven Cohen and Jim Simons showing confidence in PayPal’s prospects.

PayPal is being seen by the market as significantly undervalued, presenting a lucrative opportunity for investors in the credit services industry.

Lululemon Athletica (LULU) Jumps on Earnings Beat and Share Buyback

Lululemon Athletica’s stock (LULU) jumped over 5% following a positive earnings report and an increase in its share-buyback program.

The company announced a $1 billion increase in its share-buyback program, the second increase in six months, demonstrating its commitment to returning value to shareholders. Lululemon reported a 10% increase in quarterly revenue to $2.2 billion, surpassing analysts’ expectations. The company’s growth, especially in international markets like China, which saw a 35% rise in net revenue, was a key factor in the stock’s surge.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post Stocks to Watch Today: J.M. Smucker, PayPal, and Lululemon Athletica appeared first on Tokenist.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Robinhood Markets (NASDAQ: HOOD), a prominent player in the retail trading space, has announced its largest acquisition to date with the agreement to purchase cryptocurrency exchange Bitstamp for approximately $200 million in cash. The deal, expected to close in the first half of 2025, marks a significant step in Robinhood’s strategy to expand its presence in the digital assets market.

Bitstamp Acquisition Will Enhance Robinhood Crypto, International Presence

Founded in 2011, Bitstamp has established itself as a leading cryptocurrency exchange, holding 50 active licenses and registrations globally. The platform, popular in Europe and Asia, offers over 85 tradable assets, including staking and lending products. The acquisition is set to enhance Robinhood Crypto and establish Bitstamp as Robinhood’s first institutional business, positioning the company to compete directly with major industry players like Binance and Coinbase.

The acquisition comes amidst rapid growth in Robinhood’s crypto business, significantly contributing to its first-quarter earnings. Despite facing regulatory challenges in the U.S., including a ‘Wells’ notice from the SEC signaling potential enforcement action, Robinhood remains committed to communicating with regulators as it expands its crypto operations. Johann Kerbrat, Vice President and General Manager of Robinhood Crypto, emphasized the company’s early stages in the EU and plans for further global expansion, with the Bitstamp acquisition seen as a key accelerator.

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Robinhood Stock Price Update

As of the previous day’s market close, Robinhood Markets, Inc. (HOOD) stock price stood at $21.57, up by $0.79 (+3.80%), with premarket trading indicating a price of $22.15, up by $0.58 (+2.69%) as of 7:47 AM EDT. The company boasts a market capitalization of $18.96 billion and has experienced significant trading volume, reflecting strong investor interest. Over the past year, the stock has ranged from a low to a high price, showcasing considerable fluctuation.

Robinhood’s stock has delivered impressive returns, with a year-to-date return of +69.31% and a 1-year return of +130.94%. However, the company has faced challenges in earlier years, as evidenced by its 3-year and 5-year returns of -43.24%. Analyst price targets for the stock range from a low of $16.00 to a high of $30.00, with an average target of around $21.14, close to the current trading price.The company’s financial performance is characterized by a high PE ratio (TTM) of 154.07, an EPS (TTM) of 0.14, and revenue (TTM) of $2.04 billion. Robinhood has reported a net income of $127 million, a profit margin of 6.22%, a return on assets of 0.34%, and a return on equity of 1.82%.

Do you think this is positive for cryptocurrency in general? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post Robinhood to Acquire Crypto Exchange Bitstamp in $200 Million Deal appeared first on Tokenist.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

G-III Apparel Group, Ltd. (NASDAQ: GIII) reported a robust performance for the first quarter of fiscal 2025, which ended April 30, 2024. The company’s net sales were $609.7 million, a slight increase from $606.6 million in the same quarter last year. Net income significantly rose to $5.8 million, or $0.12 per diluted share, compared to $3.2 million, or $0.07 per diluted share, in the prior year’s quarter.

The company’s non-GAAP net income per diluted share remained steady at $0.12, as there were no non-GAAP adjustments during this period. Morris Goldfarb, G-III’s Chairman and CEO, attributed the strong start to fiscal 2025 to double-digit increases in DKNY and Karl Lagerfeld and a successful relaunch of Donna Karan. Goldfarb highlighted the company’s strategic investment in All We Wear Group (AWWG) to accelerate its European expansion.

Additionally, the amendment and extension of their ABL credit facility to $700 million, extending the maturity to 2029, further solidifies G-III’s financial position. With approximately $1 billion in cash and availability, the company is well-positioned to continue investing in its brands and infrastructure.

G-III Apparel Group Reports $0.12 EPS Against -$0.03 Expected

When comparing the current performance against expectations, G-III Apparel Group exceeded its earnings per share (EPS) projections. The expectations for the quarter were an EPS of -0.03, but the company delivered an EPS of $0.12 per diluted share. This notable performance was driven by strategic investments and a strong market response to their owned brands. Revenue expectations were set at $614.35 million. While the actual revenue of $609.7 million fell slightly short, the company’s overall financial health and strategic moves overshadowed this minor shortfall.

The increase in net income and EPS indicates effective cost management and successful brand investments. Despite the marginal miss on revenue expectations, the company’s ability to surpass EPS forecasts by a significant margin demonstrates strong operational efficiency.

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G-III Apparel Group Updates Full Year Outlook, Expects Net Sales of Approx. $3.2 Billion, EPS between $3.58 and $3.68

G-III Apparel Group has updated its fiscal 2025 outlook with cautious optimism. The company expects net sales of approximately $3.20 billion and net income between $170.0 million and $175.0 million, or between $3.58 and $3.68 per diluted share. This forecast compares to net sales of $3.10 billion and net income of $176.2 million, or $3.75 per diluted share, for fiscal 2024. The guidance reflects a balanced approach, considering incremental expenses associated with new product launches and marketing initiatives. For the second quarter of fiscal 2025, G-III anticipates net sales of approximately $650.0 million, compared to $659.8 million in the same period last year. Net income is expected to range between $10.0 million and $15.0 million, or $0.22 and $0.32 per share, compared to $16.4 million, or $0.35 per diluted share, in the previous year’s second quarter. The guidance takes into account the ongoing investments in marketing and technology to support brand expansion and operational capabilities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Ciena Corporation (NYSE: CIEN), a networking systems, services, and software company, announced its unaudited financial results for the fiscal second quarter ending April 27, 2024. The company reported revenue of $910.8 million, a decrease from $1.13 billion in the same quarter last year. The GAAP net loss for the quarter was $(16.8) million, or $(0.12) per diluted common share, compared to a net income of $57.7 million, or $0.38 per diluted common share, in the fiscal second quarter of 2023. Adjusted (non-GAAP) net income was $39.4 million, or $0.27 per diluted common share, down from $110.4 million, or $0.74 per diluted common share, in the previous year.

The company saw a decline in various segments, with the Networking Platforms segment experiencing a significant revenue drop from $914.9 million in Q2 FY 2023 to $676.3 million in Q2 FY 2024. Despite the challenging environment, Ciena’s Global Services segment grew, increasing revenue from $127.8 million to $134.7 million year-over-year. CEO Gary Smith emphasized the company’s focus on extending its leadership in optical networking to meet the growing demand for bandwidth.

Ciena’s Adjusted EPS Drops Significantly Y/Y But Outperforms Expectations at $0.27 per Share

When comparing Ciena’s current performance against market expectations, the company slightly exceeded revenue expectations but fell short on earnings per share (EPS). Analysts had projected revenue of $895.5 million and an EPS of $0.14. Ciena reported actual revenue of $910.8 million, surpassing the revenue forecast by approximately $15.3 million. However, the adjusted EPS of $0.27 was significantly higher than the expected $0.14, indicating better-than-expected cost management and operational efficiency.

Despite the revenue beat, the year-over-year revenue and profitability decline highlights Ciena’s ongoing challenges. The gross margin slightly decreased from 43.1% to 42.7% on a GAAP basis, and the operating margin turned negative at (0.4%) compared to 9.1% in the previous year. The adjusted operating margin also declined from 13.8% to 6.8%, reflecting the impact of lower sales and higher operating expenses.

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Ciena Repurchased Approximately 1.1 Million Shares for $57 Million

Ciena provided guidance for the upcoming quarters, emphasizing a cautious yet optimistic outlook. The company expects continued robust growth in bandwidth demand, which it plans to leverage by focusing on its core strengths in optical networking. Management highlighted that service providers are still working through existing inventory, which has impacted short-term sales but is expected to normalize over time.

The company also noted several key metrics expected to influence future performance. Cash and investments totaled $1.42 billion, and cash flow from operations was $58.5 million for the quarter. These strong liquidity positions provide Ciena with the financial flexibility to invest in growth opportunities and navigate market uncertainties. Additionally, the company repurchased approximately 1.1 million shares of common stock for an aggregate price of $57.0 million, reflecting confidence in its long-term prospects.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

ABM Industries Inc. (NYSE: ABM), a prominent provider of facility solutions, has released its financial results for the second quarter of fiscal 2024. The company reported revenue of $2 billion, a 2% increase driven entirely by organic growth. Despite this positive revenue trend, the company faced declines in other key financial metrics. Net income for the quarter stood at $43.8 million, a 16% decrease compared to the same period last year. Similarly, GAAP earnings per share (EPS) dropped by 12% to $0.69.

Regarding adjusted metrics, ABM reported an adjusted EBITDA of $125.3 million, a 9% decline from the previous year. Adjusted EPS came in at $0.87, down 3% year-over-year. On a brighter note, the company saw substantial improvements in cash flow. Operating cash flow surged to $117 million, while free cash flow increased to $101.4 million, indicating a robust cash generation capability.

ABM Beats EPS Expectations in Fiscal Q2, Revenue in Line

There are mixed results when comparing ABM’s current performance against market expectations. Analysts had forecasted an EPS of $0.79 for the quarter, a benchmark that ABM surpassed with its adjusted EPS of $0.87. This outperformance of 10% over expectations is a positive signal to investors. However, the revenue of $2 billion met the expectations exactly, showing no deviation from the anticipated figure.

Despite meeting revenue expectations, the decline in net income and GAAP EPS could be a cause for concern among investors. The 16% drop in net income and the 12% decrease in GAAP EPS might indicate underlying issues that the company needs to address. The decrease in adjusted EBITDA by 9% also suggests operational challenges that could impact future profitability if not managed effectively.

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ABM Raises Outlook for Fiscal Year 2024, Expects Adjusted EPS Between $3.40 to $3.50

Looking forward, ABM has raised its outlook for fiscal year 2024 adjusted EPS. The company now expects adjusted EPS to fall between $3.40 and $3.50, up from the previous guidance range of $3.30 to $3.45. This upward revision reflects the company’s confidence in its ability to navigate current market conditions and capitalize on growth opportunities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post ABM Industries Reports 2% Revenue Increase to $2 Billion in Q2, in Line with Forecasts appeared first on Tokenist.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Hewlett Packard Enterprise (NYSE: HPE), Broadcom Inc. (NASDAQ: AVGO), and Super Micro Computer (NASDAQ: SMCI) have all seen their shares rise in today’s trading session, catching the attention of investors and analysts alike.

HPE’s shares surged to a record high following impressive fiscal second-quarter results, driven by strong AI server sales and a backlog of $3.1 billion; Broadcom is expected to beat earnings estimates, with analysts revising their projections upward due to the company’s history of outperforming consensus estimates; and Super Micro Computer introduced a cutting-edge liquid-cooled AI data center optimized for NVIDIA AI Enterprise software, positioning itself as a leader in the AI hardware market and driving investor enthusiasm.

HPE Shares Reach Record High on AI Server Sales

Hewlett Packard Enterprise shares surged up to 16%, reaching a record high, after the company reported impressive fiscal second-quarter results. Revenue increased by 3.3% to $7.2 billion, surpassing Wall Street’s projection of a 2% decline to $6.82 billion. Excluding some items, profit was 42 cents per share, beating the average estimate of 39 cents.

The server business drove the strong performance, which generated $3.87 billion in revenue against an estimated $3.45 billion. AI-oriented systems sales doubled from the first quarter to over $900 million, largely due to increased demand and better availability of high-powered semiconductors from Nvidia Corp (NASDAQ: NVDA). CEO Antonio Neri highlighted that the market is starting to recognize the potential of HPE’s AI server business, which has a current backlog of $3.1 billion.

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Broadcom Expected to Beat Earnings Estimates

The market expects Broadcom Inc. to report higher earnings and revenues for the quarter ended April 2024. Expected quarterly earnings are $10.79 per share, representing a 4.6% year-over-year increase, while revenues are expected to be $12.04 billion, up 37.9% from the year-ago quarter.The company has a history of outperforming consensus estimates, beating EPS estimates for the last four quarters. The upcoming earnings report and optimistic revisions have contributed to the stock’s gain.

Super Micro Computer Introduces Liquid-Cooled AI Data Center

Super Micro Computer shares rose over 2% in premarket trading after introducing a “ready-to-deploy liquid-cooled AI data center” optimized for NVIDIA AI Enterprise software. The new AI data center is designed to accelerate generative AI adoption for enterprises across industries.

SMCI’s liquid-cooled systems, featuring NVIDIA’s Blackwell GPUs, deliver significantly improved AI performance and cost savings. In premarket trading, the stock price was $790.83 per share, up 2.5%. Super Micro Computer’s continued innovation in AI solutions, especially with enhanced performance metrics and cost efficiency, positions it as a leader in the AI hardware market.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Among thousands of cryptocurrencies, it is clear that Bitcoin (BTC) and Ethereum (ETH) took the public spotlight and are likely to take more capital inflows in the future. So much so that even Ethereum is poised to become an institutional investment vehicle via exchange-traded funds (ETFs), joining Bitcoin.

Out of a total $2.63 trillion market cap, including stablecoins, ETH and BTC make 70% of the crypto pie. Year-to-date, Bitcoin and Ethereum are neck and neck, having gained 60% and 62% value, respectively. 

However, the larger the market cap, the harder it is to move the price upwards, just like in the stock market. This is why many low-cap memecoins performed well during 2024, driven by speculation and memory. 

Yet, engaging in memecoins is exceedingly risky. Most traders can’t tell if they are riding from the top to the bottom, holding the devalued bags, or riding from the bottom to the top, enjoying substantial profits. After all, memecoins’ value is inherently unclear, which makes them so speculative in the first place.

To that end, prospective crypto investors should look into these infrastructure cryptocurrencies, which are backed by developers, funding, and clear goals.

Immutable X (IMX)

Immutable X (IMX) is an investor’s exposure to blockchain gaming. While Ethereum is a blockchain network for issuing tokens and smart contracts to power decentralized finance (DeFi) with dApps, it relies on layer 2 networks to scale. Immutable X is one of those networks. 

Owing to StarkWare’s zk-rollups technology, Immutable X facilitates zero gas fees for end-users. This contrasts Ethereum’s expensive and volatile gas fees for even simple token transfers. In turn, this is a game changer for game developers who wish to deploy their products at scale.

For instance, if a game has tradable in-game assets as non-fungible tokens (NFTs), like cards or collectible creatures, traders don’t have to worry about long confirmation times and heavy transaction fees. This boosts the in-game economy and player experience, paving the way for blockchain gaming. 

Presently, there are over 300 games in Immutable’s funding ecosystem worth $1 billion over 20 marketplaces. Previously known as Fuel Games, Immutable is the parent company in charge of the Immutable X framework for developers to launch their projects with low friction.

The cryptocurrency itself, IMX, is the utility and governance token of the network. Akin to shareholders of companies, IMX tokenholders get a say in the development of the platform with a voting mechanism. Additionally, developers using the platform pay 2% fee in IMX tokens. 

For comparison, game developers deploying their games on Steam suffer a 30% sales cut. The total IMX token supply is limited, just like Bitcoin, but to a greater extent, it has 2 billion IMX tokens, of which 74% are already in a circulating supply.

Year-to-date, the IMX token has gained 12% value after price correction but 393% over the last year. Given that the Immutable X network is Ethereum-adjacent, the token is likely to revisit previous highs with the prospective launch of ETH ETFs. According to Fortune Business Insights, the blockchain gaming market is forecasted for a 21.8% CAGR between 2023 and 2030. 

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Avalanche (AVAX)

Ethereum’s software engineering path relies on layer 2 networks to offload the transaction burden from the main network. Avalanche (AVAX) is a competitive, versatile network that picked another approach.

Instead of users having to jump through network hoops with their Web3 wallets, Avalanche itself has a modular design via subnets. Each subnet has its own rules and consensus mechanisms, but they all operate under the high-throughput Avalanche consensus protocol.

In addition, Avalanche boosts scaling with three interoperable blockchains within the network. X-Chain, C-Chain, and P-Chain tackle different aspects of the network, like staking, smart contracts, and asset creation.

This leads to a greater unified experience for the end-user, who still enjoys fast execution and low fees. Moreover, Avalanche’s C-Chain ensures compatibility with Ethereum, enabling users to transfer digital assets with Avalanche Bridge via the Core wallet.

Attesting to Avalanche’s approach to blockchain design, several banks used it to test their future tokenization efforts, including Bank of America, Citi and JPMorgan.

Powering the network’s economy, the AVAX token is limited to 720 million, of which 55% is in circulation. AVAX token holders get a say in the issuance of the remaining supply. Year-to-date, AVAX is down 14%, making for a solid entry point after a one-year value growth of 160%. 

Fetch.AI (FET)

Just as Nvidia (NASDAQ: NVDA) reaped the AI hype, Fetch.AI did the same in the blockchain world. The FET token gained 794% value over one year, or 194% YTD. Moving forward, this is crypto investor’s main exposure to the tokenization of AI projects. 

That’s because Fetch.AI (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN) will all be under the umbrella of the SuperIntelligence Alliance, with its new universal token ASI, poised to merge the market caps of FET, AGIX, and OCEAN tokens.

After the merger into ASI, FET tokens will be limited to a 2.63 billion supply. Mirroring the decentralization efforts of finance to counter banks and central banking, the new network’s purpose is to monetize AI development openly and transparently.

This includes raising funds for AI projects with ASI tokens, paying transaction fees, using it as a governance token for voting, and using it as a utility for open-source AI development. After the merger announcement in mid-April, the FET price has been moving sideways, having dropped by 3%. 

Which types of tokens do you prefer as your main exposure: sound money, generalist DeFI, gaming, or something else? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Qualcomm’s (NASDAQ: QCOM) stock has increased, fueled by several analyst upgrades and positive ratings. TD Cowen raised the company’s price target from $200.00 to $235.00, reflecting strong confidence in Qualcomm’s market position. Other analysts, such as Argus, UBS Group, Piper Sandler, KeyCorp, and Canaccord Genuity, have recently increased their price targets as well. The consensus rating for Qualcomm stock is a Moderate Buy, with one sell rating, six hold ratings, and seventeen buy ratings. The consensus target price stands at $188.74.

Qualcomm’s recent quarterly earnings exceeded expectations, with earnings per share (EPS) reported at $1.93 against the consensus estimate of $1.82. The company’s revenue for the quarter was $9.39 billion, slightly above the consensus estimate of $9.32 billion. As of 10:00 AM EST, Qualcomm’s stock price has increased by 2.13% to $208.73. The company’s market cap is $232.937 billion, with a beta (5Y Monthly) of 1.29 and a PE Ratio (TTM) of 27.25. Qualcomm’s EPS (TTM) is 7.50, and the stock has seen impressive returns, with a 1-year return of +84.64% and a 5-year return of +245.60%.

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Kneron Unveils KNEO 330 Edge AI Server and AI-Embedded PC

Kneron, a Qualcomm-backed startup, has introduced the KNEO 330 Edge AI server and an AI-embedded PC, powered by the company’s KL830 AI chip. The KNEO 330 supports up to 8 concurrent connections, LLMs, and stable diffusion. By pairing the KNEO 330 with a leading GPU, energy consumption is reduced by 30%, while small enterprises can expect cost reductions of 30% to 40%.

This partnership with Kneron has contributed to the positive sentiment surrounding Qualcomm stock. The AI PC market is expected to grow from 50 million units in 2024 to over 167 million by 2027, with global shipments of AI PCs and AI smartphones projected to reach 295 million units in 2024.

Qualcomm stock’s 52-week range is $104.33 – $217.43, and the company has increased its dividend yield to $3.40 annually. Recent news for the company includes energy efficiency advancements and significant insider trading activities, further contributing to its positive outlook.

Do you see Qualcomm continue to thrive as AI continues to drive the markets? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Campbell Soup Company (NYSE: CPB) reported robust financial results for the third quarter of fiscal 2024, which ended on April 28, 2024. The company completed its acquisition of Sovos Brands, Inc. on March 12, 2024, which significantly contributed to its performance. Net sales for the quarter were $2.4 billion, representing a 6% increase compared to the same period last year. On an organic basis, net sales remained comparable to the prior year. Over a two-year compound annual growth rate (CAGR), reported net sales increased by 5%, and organic net sales grew by 2%.

Earnings Before Interest and Taxes (EBIT) for the quarter were $248 million, while adjusted EBIT saw a notable increase of 13% to $354 million, reflecting the positive impact of the Sovos Brands acquisition.The company’s Earnings Per Share (EPS) was $0.44, with adjusted EPS rising 10% to $0.75. Campbell’s President and CEO, Mark Clouse, highlighted the sequential volume improvement and stable organic net sales, which, combined with the acquisition, drove double-digit growth in adjusted EBIT and EPS.

The integration of Sovos Brands has already begun to bring significant incremental growth to Campbell, as evidenced by the quarter’s results. The acquisition played a crucial role in the company’s ability to navigate the pace of consumer recovery, contributing positively to both the top and bottom lines.

Campbell Soup Company Beats EPS and Revenue Expectations in Fiscal Q3

When comparing Campbell’s third-quarter performance against market expectations, the company exceeded analysts’ projections. The expected EPS for the quarter was $0.705, but Campbell reported an adjusted EPS of $0.75, surpassing expectations by 6.4%.

In terms of revenue, Campbell also exceeded expectations. Analysts had anticipated quarterly revenue of $2.33 billion, but the company reported net sales of $2.4 billion, marking a 3% beat. This increase in net sales was driven by the Sovos Brands acquisition and favorable net price realization despite the challenging market conditions and higher cost inflation.

The company’s gross profit increased from $668 million to $732 million, with an improved gross profit margin of 30.9%, up from 30.0% in the previous year. Adjusted gross profit also increased to $740 million, with an adjusted gross profit margin of 31.2%.

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Campbell Updates Full Year Guidance, Expects EPS in the Range of $3.07 to $3.10

Campbell has updated its full-year fiscal 2024 guidance to reflect the expected performance of its base business and the impact of the Sovos Brands acquisition. The company now expects full-year reported net sales growth to be in the range of 3% to 4%, driven by the incremental impact of the acquisition. Organic net sales growth is tracking to the midpoint of the updated range of approximately 0% to down 1%, reflecting the current pace of consumer recovery.

Campbell’s full-year adjusted EBIT growth for the combined business is expected to be approximately 6.5% to 7%, reflecting the partial year contribution of the acquisition, inclusive of integration savings, as well as base business performance.

The company also expects full-year adjusted earnings per share growth for the combined business to be approximately 2% to 3%, with EPS projected to be in the range of $3.07 to $3.10, compared to $3.00 in the prior year. This guidance includes expected dilution from the Sovos Brands acquisition of between $0.01 and $0.02 per share. Campbell anticipates building momentum into the fourth quarter, with continued stabilization of year-over-year volume growth and double-digit growth in both fourth-quarter adjusted EBIT and adjusted earnings per share.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Dollar Tree, Inc. (NASDAQ: DLTR) has reported its financial results for the first quarter of fiscal 2024, which ended on May 4, 2024. The company achieved a consolidated net sales increase of 4.2% year-over-year, reaching $7.63 billion. However, the company’s diluted earnings per share (EPS) was $1.38, slightly below the adjusted diluted EPS of $1.43. The same-store net sales for Dollar Tree increased by 1.7%, while Family Dollar saw a marginal increase of 0.1%, leading to an enterprise-wide same-store net sales growth of 1.0%.

Rick Dreiling, Chairman and CEO of Dollar Tree, expressed satisfaction with the adjusted EPS results, which were toward the high end of the company’s outlook range. CFO Jeff Davis highlighted that the operating performance remained solid despite a soft Easter season, attributing the results to disciplined operations and careful expense management. The company opened 116 new Dollar Tree stores and 41 new Family Dollar stores while converting 926 Dollar Tree stores to a multi-price format.

The gross profit increased by 5.3% to $2.35 billion, with a gross margin expansion of 30 basis points to 30.8%. This expansion was primarily driven by reduced freight costs, partially offset by a higher mix of lower-margin consumables and increased shrink. Selling, general, and administrative expenses rose to 25.3% of total revenue, up from 24.8% the previous year, driven by temporary labor costs, higher depreciation, and severance costs related to store closures.

Dollar Tree Reports $1.43 Adjusted EPS, $7.63 Billion in Q1 Revenue

The first quarter results showed that Dollar Tree, Inc. fell slightly short of Wall Street’s expectations. Analysts had anticipated an EPS of $1.43 and revenue of $7.65 billion. The company’s reported EPS of $1.38 was below the expected figure, although the adjusted diluted EPS matched the expectations at $1.43. The company’s revenue of $7.63 billion was marginally lower than the anticipated $7.65 billion.

Despite these slight misses, the company demonstrated resilience in several key areas. The increase in gross profit and gross margin indicates effective cost management, especially in reducing freight costs. However, the higher selling, general, and administrative expenses reflect the challenges faced in operational adjustments, including the multi-price rollout and store closures. These factors contributed to the operating income margin decline from 5.7% to 5.5%, and the adjusted operating income margin from 6.1% to 5.7%.

The same-store sales growth, particularly the 1.7% increase in Dollar Tree stores, was a positive indicator, driven by a 2.8% increase in traffic. Conversely, Family Dollar’s same-store sales growth of 0.1% was less impressive, driven by a modest 0.9% increase in traffic. These mixed results underscore the need for ongoing strategic adjustments, particularly in the Family Dollar segment.

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Dollar Tree Reiterates Full Year Outlook, Expects $31B to $32B in Net Sales

Looking ahead, Dollar Tree, Inc. has reiterated its full-year fiscal 2024 consolidated net sales outlook range of $31.0 billion to $32.0 billion. The company expects comparable net sales growth in the low-to-mid-single digits for the enterprise, mid-single digits for the Dollar Tree segment, and low-single digits for the Family Dollar segment. Adjusted diluted EPS for the fiscal year is projected to range from $6.50 to $7.00.

The company’s guidance reflects incremental transportation and other expenses related to the loss of its Marietta distribution center, estimated to impact EPS by $0.20 to $0.30 for the full year. For the second quarter, Dollar Tree anticipates consolidated net sales between $7.3 billion and $7.6 billion, with adjusted diluted EPS ranging from $1.00 to $1.10. This outlook includes an estimated $0.10 impact from the Marietta distribution center loss.

Dollar Tree’s strategic initiatives, including the rapid rollout of multi-price stores and the optimization of its store portfolio, remain on track. The company plans to close additional stores as part of its portfolio optimization, having already closed approximately 550 stores in the first quarter. These closures are expected to enhance long-term operational efficiency and profitability.

Dollar Tree Announces Formal Review of Strategic Alternatives for Family Dollar Business Segment

Dollar Tree announced a formal review of strategic alternatives for its Family Dollar business segment in a significant strategic move. This review could result in a potential sale, spin-off, or other disposition of the business. The company has not set a definitive timetable for the completion of this review, and there is no assurance that it will result in any specific transaction or outcome.

Additionally, the company faced a significant challenge when a tornado destroyed its distribution center in Marietta, Oklahoma, on April 28, 2024. The facility and its inventory were deemed unsalvageable, resulting in losses totaling $117.0 million. However, Dollar Tree expects these losses to be fully offset by insurance recoveries, though the exact amount and timing of these recoveries remain uncertain.

Dollar Tree’s proactive approach to addressing these challenges, including the strategic review of Family Dollar and the rapid response to the tornado damage, reflects its commitment to maintaining operational resilience and pursuing long-term growth opportunities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Following the GameStop (NYSE: GME) short squeeze extravaganza over the last month, traders are looking into similar candidates for stock volatility. Conditions creating these events are now more pressing. At the end of May, the Energy Information Administration (EIA) reported the lowest seasonal demand level for diesel since 1998.

Given diesel’s prolific usage in trucks and trains, this suggests an economic slowdown, aligning with slower GDP growth and slower consumer spending. Conversely, an economic downturn is poised to have a greater effect on companies with weaker fundamentals. Ahead of this, short sellers would bet on their stock prices to fall.

With the potential for market pessimism getting higher, triggering more volatility, which stocks have highest short interest in the short term?

SunPower (NASDAQ: SPWR) – 88.66% float shorted

In March, a hailstorm devastated Fort Bend County farm’s thousands of solar panels. This was just one recent instance showcasing the fragility and unreliability of solar power on a mass scale.

In turn, the narrative is shifting towards nuclear power as the cleanest and densest form of energy. Even Larry Fink of BlackRock, having pushed the ESG framework for years, warned that “the world is going to be short power…you need dispatchable power” in the age of growing data centers for generative AI.

These trends point to de-prioritizing SunPower’s business model, centered around residential solar solutions. The company is scheduled to report its earnings tomorrow, on June 5th. In the last Q4 ‘23 report in February, SunPower exited the year with a net loss of $247 million, depleting its cash reserves to $87.4 million from $123.7 million in a year-ago quarter.

Presently, SPWR stock is holding at $2.97, under its 52-week average of $5.30 per share. This price aligns with the Nasdaq average target of $3.07 per share. Over the last month, SPWR shares are up 27%.

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Arbor Realty Trust (NASDAQ: ABR) – 43.56% float shorted

Normally, a real estate investment trust (REIT) would be a good bet for steady dividend income, owing to the requirement to pay out at least 90% of taxable profits in dividends. Arbor has a dividend yield of 12.22% at $1.72 annual payout per share.

However, if the market downturn is on the horizon, this would translate to a higher unemployment rate, decreased housing demand, increased loan defaults, and ultimately, the fall of housing prices. This would negatively affect Arbor Realty’s bottom line as a multifamily and single-family rental.

Moreover, as of May 28th, 2024, investigative firm Viceroy Research issued another dire report on Arbor’s financial status. This includes extended financing to delinquent customers at the firm’s expense. Owing to impairments and delinquency risks, the report concluded with the following warning.

“There is no rate cut large enough, no rate caps cheap enough, and no investors dumb enough to save Arbor.”

However, given that Viceroy Research is a short seller, it may paint such a picture for its own benefit. Over the last month, ABR stock has been up 6.3%. At the present price of $13.83, ABR shares are not far from their 52-week average of $14.11. Nasdaq’s forecasting data puts the average ABR price target in the present range at $13.45 per share.

ImmunityBio (NASDAQ: IBRX) – 38.02% float shorted

As one of many penny biotech stocks, ImmunityBio received positive news in April following the FDA’s approval of Anktiva for treating non-muscle-invasive bladder cancer (NMIBC). This is in combination with the company’s Bacillus Calmette-Guérin (BCG) vaccine.

In other words, ImmunityBio’s short  interest is more related to its borderline penny stock status, and accompanying volatility, rather than on weak fundamentals. From the last in-depth coverage of ImmunityBio earlier in May, IBRX stock is down 32%, from $8.12 to present $6.15 per share.

Placed into context, IBRX stock is up 62% over the last six months, while down 32% over the last month. Nasdaq’s average IBRX price target is now in sync with the price, at $6 per share. 

Do you view short selling as too stressful but worth the risk? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post These 3 Interesting Stocks are Seeing Heavy Short Interest in June 2024 appeared first on Tokenist.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Core Scientific (NASDAQ: CORZ), one of the largest high-powered digital infrastructure providers for bitcoin mining and hosting services in North America, announced a series of 12-year contracts with AI Hyperscaler CoreWeave. The deal, expected to generate over $3.5 billion in cumulative revenue for Core Scientific during the initial terms, marks a significant milestone in the company’s comeback after emerging from bankruptcy earlier in 2023.

Under the agreement, Core Scientific will deliver approximately 200 megawatts (MW) of infrastructure to host CoreWeave’s high-performance compute (HPC) operations, utilizing NVIDIA (NASDAQ: NVDA) GPUs. The company will modify multiple existing, owned sites to accommodate CoreWeave’s hardware. Site modifications are expected to begin early in the second half of 2024 and achieve operational status in the first half of 2025. CoreWeave will provide about $300 million in capital investments, with options for further capacity expansion.

Transforming Core Scientific’s Hosting Business and Leaning into AI

The estimated average annual revenue from the contracts is expected to be approximately $290 million, with opportunities for two five-year renewal terms each and the option for further expansion. The deal is set to transform Core Scientific’s hosting business and earnings power while maintaining its bitcoin mining capacity and growth potential. The company has nearly 500 MW of HPC power available for alternative compute workloads.

Core Scientific and CoreWeave have a history of collaboration. From 2019 to 2022, Core Scientific hosted thousands of CoreWeave’s GPUs in its data centers. In March 2024, the two companies entered a contract for HPC hosting at Core Scientific’s new Austin data center.

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CORZ Stock Price Surges on Deal Announcement and Buyout Offer

Following the AI deal announcement, CORZ stock surged as much as 40% in pre-market trading on June 4, 2024. CoreWeave reportedly offered to buy Core Scientific for $5.75 per share, a 55% premium to the miners’ three-month average weighted share price as of May 31, valuing the company at just over $1 billion.

Heading into June 4, 2024, CORZ stock had risen 44% over the last month and 34% in the last three months. As of 11:46 AM EDT on June 4, 2024, CORZ stock was trading at $6.67, up 36.86% from the previous close.

Do you think Core Scientific will continue to lean further into its AI hosting business? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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In a surprising move, Elon Musk has reportedly instructed Nvidia (NASDAQ: NVDA) to prioritize the delivery of AI chips to his companies, X and xAI, at the expense of Tesla (NASDAQ: TSLA). This decision has caused significant delays in Tesla’s receipt of over $500 million of processors, pushing the car company’s timeline back by several months.

Nvidia has refrained from commenting on the situation, while Tesla’s stock experienced a nearly 1% dip in premarket trading following the news. Internal emails from Nvidia revealed Musk’s directive and its conflict with previous procurement plans for Tesla.

xAI Will Receive 100,000 Nvidia AI Chips by End of the Year

The redirected AI chips have led to setbacks in Tesla’s efforts to establish supercomputers crucial for developing autonomous vehicles and robots. This situation highlights the ongoing conflicts of interest as Musk manages multiple companies simultaneously, raising concerns among Tesla shareholders about his divided attention and its potential impact on the company’s performance and strategic goals.

Launched by Elon Musk in 2023, xAI is an AI startup closely tied to X (formerly Twitter), sharing data center resources and investors. The company aims to develop generative AI products and position itself as a competitor to OpenAI. xAI will receive 100,000 Nvidia AI chips by the end of 2024, indicating a significant investment in AI infrastructure. The startup has secured $6 billion in financing, supported by investors from Musk’s Twitter acquisition. xAI’s main product is a chatbot named Grok, which is marketed as a politically incorrect alternative to ChatGPT.

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Tesla Stock Dips in Premarket on the News

Tesla’s stock closed at $176.29, down 1.01%, with a market capitalization of $562.224 billion. The stock has decreased by 29.05% year-to-date. The company’s trailing P/E ratio is 45.11, while the forward P/E is 70.92. Tesla’s profit margin stands at 14.37%, with a return on assets (ROA) of 4.72% and a return on equity (ROE) of 23.74%. The total revenue for the trailing twelve months (ttm) is $94.75 billion. Tesla’s stock declined nearly 1% in premarket trading following the announcement about the AI chips, and the stock’s 52-week range indicates volatility over the past year.

Tesla continues to face significant competition and internal challenges, including an aging vehicle lineup and strategic shifts towards AI and robotics.

Do you think the change in focus could affect Tesla in the long-term? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Thanks to Keith Gill, the meme stock segment of the US stock market just got more complicated. Otherwise known as Roaring Kitty on X, or r/DeepFu*kingValue on Reddit, the social media personality/investor was one of the key figures behind the GameStop (NYSE: GME) short squeeze in early 2021. 

Following Gill’s social media resurgence, a repeat of that action played out in mid-May, although subdued. A snapshot percolated across social media from Sunday to Monday, triggering another GME stock price spike, from $23.14 to $39.85 per share. The purported account snapshot from Reddit’s r/Superstonk subreddit showed Gill holding 5 million GME shares, worth around $115.7 million on Friday.

More importantly, the snapshot showed Gill’s 120,000 GME call options at a strike price of $20 with an expiry date of June 21st. The purchase price of these contracts was at ~$5.68 per share, potentially netting $6.8 million at the time.

Image credit: Reddit

The implication of Keith Gill’s significant ownership of GME stock leads to previous buying of call options. Once the GME stock skyrocketed as he emerged on social media, a likely scenario would entail selling call options and buying GME shares again after the initial bubble burst.

Doing so repeatedly would have ballooned his portfolio. As seen by @unusual_whales’s tracking, these GME calls amounted to $65.7 million. In other words, Gill’s whale status introduced so much volatility that GameStop decided to halt GME trading today, having skyrocketed by 72% in aftermarket opening.

Putting aside the legality of Keith Gill pumping his bags at the expense of retail traders, should investors watch other meme stocks to mimic his success? Here are some prospective candidates.

Trump Media & Technology Group Corp. (NASDAQ: DJT)

Former President Trump’s conviction in NY court greatly boosted his campaign. According to @LeadingReport, Trump’s campaign broke all funding records at just over $200 million after the verdict. This is unsurprising because the verdict was primarily perceived as a subversion of the legal system to pursue short-term political gains.

Case in point, one of the most viral tweets addressing the issue received nearly 73 million views.

The first felony conviction of a former US President wasn’t for the Iraq or Afghanistan wars, illegal CIA coups, drone striking weddings, or spying on Americans…It was because Trump misclassified a $130,000 payment for a porn star’s NDA.Tells you everything you need to know.

— Geiger Capital (@Geiger_Capital) May 31, 2024

Simultaneously, Trump’s social media company, under ticker DJT, closed 5% down on Friday after a brief spike to $53.50 per share. At $48.85, DJT stock is still far from the 52-week high of $79.38.

Considering the ramp-up of political tensions ahead of the presidential elections and Trump’s more active social media engagement signaled from his first TikTok post, traders should expect more upswing volatility from the present DJT weakness.

However, traders should be agile because timing is everything in the meme stock market.

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Beyond Meat (NASDAQ: BYND)

Considering its weak fundamentals, Beyond Meat performed surprisingly well, losing only 4.5% of the value YTD. The company continues to struggle against its main obstacle—expensive meat substitutes against the cheaper real thing. This price disparity is compounded by the novelty of substituting meat in the first place.

At a time when plant-based meats in general are down 19% YoY, this is not a positive signal. However, the company is yet to utilize the rollout of more competitive products, the Beyond IV burgers and beef.

Having shifted from maligned canola oil to avocado oil, the gen-4 products neutralize the main critique of relying on seed oils. If claims of having the “meatiest, juiciest” burgers align with the public reception, BYND could hit previous highs.

In May’s earnings report, Beyond Meat’s CTO hinted at debt or equity funding to power through the revenue bleed. The company would need more capital to extend the runway after a net revenue decline of 18% YoY and a net loss of $54.4 million in Q1’24. Beyond Meat’s debt-to-equity ratio is holding at a relatively high -2.

Nonetheless, if Beyond Meat’s most recent rollout turns the fortunes around, investors could reap big gains. The company’s all-time high was $234 in July 2019 and $19.25 at its 52-week high. At $7.8 per share, BYND stock is closer to its 52-week low of $5.58, making a solid entry for gen-4 burger speculation.

Do you prefer exposure in memecoins or meme stocks for risky investment adventures? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Nvidia (NASDAQ: NVDA), the dominant AI chip market player, announced its latest AI chip architecture, Rubin, on June 2, 2024. This announcement comes just months after the company unveiled its Blackwell model in March 2024, which is expected to ship later this year. The rapid turnaround from Blackwell to Rubin underscores the intense competition in the AI chip industry and Nvidia’s dedication to continuing to be at the forefront of the industry. Meanwhile, analyst Beth Kindig recently made an optimistic forecast for the company’s shares, expecting the firm to hit a projected $10 trillion valuation over the next six years.

Nvidia’s Rubin Architecture and Competitive Edge

CEO Jensen Huang has pledged to release new AI chip technology on a yearly basis, accelerating the company’s previous two-year timeline.

The Rubin platform will feature new GPUs and a central processor called “Vera,” showcasing Nvidia’s focus on innovation in AI and accelerated computing. With competitors like AMD, Intel, Microsoft, Google, and Amazon vying for market share, Nvidia aims to maintain its dominant position through its hardware and software integration.

The company’s CUDA platform, often compared to Apple’s iOS for its dominance and influence, gives Nvidia an impenetrable advantage over its rivals.

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Projected $10 Trillion Valuation by 2030

As of June 2, 2024, Nvidia’s market capitalization stands at approximately $2.7 trillion. However, Beth Kindig, lead tech analyst at the I/O Fund, predicts that the company’s market cap will surge another 270% to reach $10 trillion by 2030.

This projection is driven by the high demand for Nvidia’s chips in data centers and the expected growth in the automotive sector. CEO Jensen Huang has described the current industry phase as the start of the next industrial revolution, highlighting the crucial role of Nvidia’s chips in training large language models and AI applications.

Nvidia’s Stock Has Soared Over 200% in the Past Year

Nvidia’s stock has soared more than 200% in the past year, closing in on the valuations of tech giants like Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL).

As of the market close on May 31, 2024, Nvidia’s stock price stood at $1,095.95, with a market cap of $2.70 trillion. The company has demonstrated impressive returns over the past five years, with a 3,069.25% increase in stock price. Nvidia’s strong financial performance is further evidenced by its profit margin of 53.40%, return on assets of 49.10%, and return on equity of 115.66%. The company also boasts a healthy cash position, with $31.44 billion in total cash and a low total debt/equity ratio of 22.37%.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Boeing (NYSE: BA), once a leading force in the aerospace industry, is grappling with an unprecedented safety crisis and production issues that have eroded customer trust and shareholder value. The company’s long-term safety concerns, recent incidents, and regulatory scrutiny have overshadowed its prospects.

Recently, Emirates president Tim Clark discussed the firm and how it could take years for Boeing to get its house in order. The company’s shares have lost over 49% in the last five years, a period of significant turbulence for the aviation giant.

Safety Crisis at Boeing has Been a Decade in the Making

The safety crisis at Boeing has been a decade in the making, with many speculating that the company’s shift from engineering excellence to cost-cutting and profit maximization was at the heart of the problem. Boeing’s push to extract cost cuts from suppliers and outsource work previously done in-house has led to significant quality issues and supply chain disruptions.

The company’s governance model, which became more focused on financial metrics, has negatively impacted its engineering and quality control processes.

Following the Alaska Airlines (NYSE: ALK) incident in January, where a door plug detached mid-flight, the FAA has capped the production rates of the 737 Max planes and increased oversight on Boeing’s production lines. The FAA has emphasized the need for systemic change at Boeing, focusing on meeting quality and safety milestones before any increase in production can be approved.

In response, Boeing has developed an 11-page Product Safety and Quality Plan, which includes investing in workforce training, simplifying plans and processes, eliminating defects, and elevating the safety and quality culture.

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Alaska Airlines Incident and Future Challenges

The ongoing issues at Boeing have taken a toll on the company’s business, with customers expressing frustration and disappointment over the production issues. Boeing revealed it burned through £1 billion a month in the first quarter of the year after slowing production and paying £347 million in compensation. The company’s shares have fallen by nearly a third since the Alaska Airlines incident, reflecting the financial impact of the crisis.

Boeing’s problems are not limited to the company itself. They affect the global aviation industry, with supply chain disruptions also impacting Airbus and other manufacturers. Emirates president Tim Clark predicts a five-year hiatus for Boeing to address and recover from these issues, highlighting the long road ahead for the company.

As Boeing works to address its safety and production issues, it faces increased scrutiny from regulators and legal authorities. The FAA, the National Transportation Safety Board, and the American government are all closely monitoring the company’s actions. Additionally, the US Department of Justice has filed a case accusing Boeing of breaching its obligations in a 2021 agreement that shielded the company from criminal prosecution over past crashes.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Over the last five days, the Dow Jones Industrial Average (DJIA) has continued to show weakness, having slumped by -3.99% to present 38,111. This level was last seen at the end of January but also at the beginning of May, after which DJIA touched a new all-time high of 40k in mid-May.

Considering that DJIA represents 30 companies powering the US economy, investors see these moves as a reaction to a strained economy. The latest report from the Commerce Department on Friday confirmed sticky inflation, with the personal consumption expenditures (PCE) index increasing by 0.3% over the last month.

Although this keeps PCE unchanged at 2.7% annual (core 2.8%), consumer spending is weakening. When accounting for inflation, real consumption declined by 0.1% m/m. Overall, the White House’s Council of Economic Advisers expects an inflation cooldown once the lag from housing inflation kicks in. 

Image credit: Council of Economic Advisers

In that scenario, where housing inflation contribution eases alongside core services, the Federal Reserve would have more space to cut interest rates. On the long-term horizon, this would equate to presently discounted Dow stocks following the weekly dip.

Procter & Gamble (NASDAQ: PG)

More resistant to sticky inflation than established companies, PG owns nearly a hundred household brands across essential goods. In this sector, the company has a 9.29% market share vs its main competitor, Johnson and Johnson (NYSE: JNJ) at 9.04%.

Year-to-date, PG stock is up 9%, or nearly 14% over one year. For fiscal Q3 2024, ending March, Procter & Gamble reported a 3% increase in organic sales from January. The increase in core operating margin led to the company’s net earnings growth by 11% to $3.75 billion from the year-ago quarter.

Through cash dividend payouts, PG returned $2.3 billion to shareholders, in addition to $1 billion worth of stock buybacks. The company demonstrated its wide moat status by increasing dividends, marking the 68th consecutive increase throughout its 134 years of dividend payouts. It now stands at an annual payout of $4.026 per share.

Currently priced at $162.58, PG shares are 13% below the 52-week low of $141.45. According to Nasdaq’s forecasting data, the average PG price target is $171 per share.

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Broadcom (NASDAQ: AVGO)

Since the coverage in January, this semiconductor stock has increased in value by 8%. Just like then, the thesis for Broadcom’s growth remains strong. In addition to providing custom AI chip solutions for heavyweights like Meta (NASDAQ: META) or Alphabet (NASDAQ: GOOG), Broadcom has a history of farsighted acquisitions.

After acquiring Symantec and VMware, these software companies are now leading in cybersecurity products, behind CrowdStrike (NASDAQ: CRWD) by market share. Broadcom’s diversification into enterprise-grade software, which grew by 153% to $4.57 billion, made it more resistant to the ebbs and flows of the semiconductor cycles.

Broadcom’s next earnings call for Q2 is scheduled for June 12th. In the prior quarter, the company missed the estimated earnings per share of $8.95 by a negative 4.47% surprise. This was after beating EPS estimates for three consecutive quarters from Q2 ‘23. Ending February, Broadcom delivered $1.3 billion net income vs $3.7 billion from a year-ago quarter.

Over one year, AVGO stock gained 63% value, largely owing to the 4x ramp-up in AI chip revenue to $2.3 billion in Q1 out of the total $11.96 billion net revenue. As an offsetting cyclical driver, this put Broadcom in the investor spotlight.

Broadcom’s present price of $1,318 per share is 9.6% under its 52-week high of $1,445. Nasdaq’s forecasting places the average AVGO price target significantly higher, at $1571.55 twelve months ahead.

Verizon Communications (NASDAQ: VZ)

In April, the telecom giant reported multiple upsides to its core business. Verizon’s Q1 earnings showed 3.3% YoY wireless service revenue growth alongside free cash flow increased to $2.7 billion vs $2.3 billion in the year-ago quarter. This was despite the 5.9% decrease in net income to $4.7 billion.

Having beaten EPS estimates for the last four consecutive quarters, VZ stock is up 5% YTD. However, this Dow stock is popular among investors because of its relatively high dividend yield, now at 6.6% with a $2.66 annual payout per share.

According to Zacks Investment Research, the company’s next earnings call is scheduled for July 23rd. The consensus EPS forecast is $1.16. The company’s price-to-earnings ratio remains stable, staying within the 8.6 range from the actual 8.56 during 2023.

At the present price of $40.33, VZ stock is nearly 8% away from its 52-week high of $43.42 per share. Nasdaq’s average price target places VZ shares just above that high, at $44.62 per share.

Do you have a favorite type of stocks, regardless of macroeconomic conditions? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

The post DJIA Down Over 2% in the Last 5 Days: 3 Stocks that Offer a Buying Opportunity appeared first on Tokenist.

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

Caesars Entertainment (NASDAQ: CZR) stock soared following reports of billionaire activist investor Carl Icahn taking a sizable stake in the company, while Walgreens Boots Alliance (NASDAQ: WBA) stock rose as the company launched a “Summer of Savings” campaign to boost sales. Meanwhile, Warner Bros. Discovery (NASDAQ: WBD) stock increased based on positive analyst ratings and upgrades, reflecting confidence in the company’s future performance.

Caesars Entertainment (CZR) Stock Soars on Carl Icahn Stake

Caesars Entertainment stock surged up to 15% today, following reports that billionaire activist investor Carl Icahn had taken a significant stake in the company. The news led to speculation about potential strategic changes or improvements Icahn might advocate for, causing the market to react positively. As a result, Caesars’ market capitalization increased to $6.89 billion, with a forward P/E ratio of 925.87 and revenue growth of 0.71% year-over-year.While the exact size of Icahn’s stake and his intentions were not immediately known, traders reacted positively to his involvement. Due to his reputation as an influential investor, his involvement is often seen as a catalyst for stock price movements. Bloomberg, citing traders, reported that Icahn had taken a sizable position in Caesars, leading to the stock’s jump.As of 12:12 PM EDT on May 31, 2024, Caesars Entertainment’s stock price reached $35.60, a significant increase of 11.78%. The company has a market capitalization of $7.7 billion, a trailing P/E ratio of 9.00, and an EPS (TTM) of $3.54. Caesars’ revenue (TTM) stands at $11.44 billion, with a profit margin of 6.68% and a return on equity of 19.99%. The company has total cash of $726 million and a total debt/equity ratio of 564.91%.

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Walgreens Boots Alliance (WBA) Stock Gains on “Summer of Savings” Campaign

Walgreens Boots Alliance stock also gained today. The company has recently introduced a “Summer of Savings” campaign featuring new discounts and promotions to increase customer engagement and sales. The market responded positively to the potential for increased revenue from the campaign, which targets both new and returning customers during the summer period.

The “Summer of Savings” initiative includes discounts on various products, loyalty rewards, and special promotions designed to boost foot traffic and online sales. Analysts highlighted the campaign’s timing, aligning with increased consumer spending during the summer months, as a strategic move to capture higher sales.

As of 12:11 PM EDT on May 31, 2024, Walgreens Boots Alliance’s stock price increased by 4.30% to $16.05. The company has a market capitalization of $13.851 billion, an EPS (TTM) of -$7.00, and revenue (TTM) of $144.6 billion. Walgreens’ profit margin stands at -4.18%, with a return on equity of -57.19%. The company has total cash of $676 million and a total debt/equity ratio of 225.38%.

Warner Bros. Discovery (WBD) Stock Rises on Positive Analyst Ratings

Warner Bros. Discovery, Inc. (NASDAQ: WBD) stock increased following positive analyst ratings and upgrades, which reflected confidence in the company’s future performance despite recent earnings misses. The consensus recommendation of “Moderate Buy” and improved price targets from analysts supported the stock’s upward movement.

Multiple research reports and analyst upgrades contributed to the stock’s rise, including Rosenblatt Securities raising their rating from “sell” to “neutral” and increasing the price target from $7.00 to $10.00. KeyCorp also raised their rating from “sector weight” to “overweight,” setting an $11.00 price target for the company.

As of 12:11 PM EDT on May 31, 2024, Warner Bros. Discovery’s stock price increased by 3.96% to $8.40. The company has a market capitalization of $20.57 billion, an EPS (TTM) of -$1.24, and revenue (TTM) of $40.58 billion. Warner Bros. Discovery’s profit margin stands at -7.45%, with a return on equity of -6.39%. The company has total cash of $3.07 billion and a total debt/equity ratio of 94.02

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

The United States government has delayed granting export licenses to American chipmakers AMD (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) for shipping advanced artificial intelligence (AI) processors to several Middle Eastern countries. The restrictions, imposed by the U.S. Commerce Department in October 2023, aim to address national security concerns surrounding the potential misuse of these high-performance computing (HPC) chips.

Export Restrictions and Targeted Countries

Under the new rules, export licenses are now required for shipments of advanced AI processors to China, Macau, Saudi Arabia, the United Arab Emirates (UAE), Vietnam, and other countries listed in the Commerce Department’s Group D:5. The targeted processors are crucial for AI training and HPC workloads. Concerns have been raised about the possibility of these chips being resold to China or accessed by Chinese entities through cloud services. Such access could potentially enable the development of military equipment or the training of sophisticated AI models.

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Middle East’s AI Ambitions and U.S. Partnerships

Saudi Arabia and the UAE have been investing heavily in AI to diversify their economies and become leaders in the field. These countries view partnerships with U.S.-based companies, such as Cerebras and Nvidia, as crucial to their AI development plans. For example, Microsoft has invested $1.5 billion in the Abu Dhabi-based AI firm G42, highlighting the growing interest in AI collaboration between the U.S. and the Middle East.

However, Saudi Arabia has also partnered with China’s Lenovo to establish an R&D center in Riyadh despite being willing to separate Chinese supply chains. This collaboration has likely contributed to the U.S. government’s concerns about potentially transferring sensitive AI technology to China through Middle Eastern countries.

AMD Stock Down 2.5%

The export restrictions have significantly impacted the businesses of AMD, Nvidia, and other U.S.-based hardware developers by delaying or leaving unanswered their license applications for chip shipments to the Middle East. This has led to uncertainty and potential revenue losses for these companies as they navigate the complex geopolitical landscape surrounding AI technology.

As of 11:19 am EST on the market trading day, AMD’s stock price stood at $162.65, reflecting a decrease of 2.50%. Nvidia also saw a slight decline of 1.2% in the trading session so far.AMD has a market capitalization of $262.893 billion, with a trailing P/E ratio of 241.67 and a forward P/E ratio of 47.62. AMD’s profit margin is 4.90%, and its return on equity is 2.01%. The chipmaker reported total revenue of $22.8 billion and a net income of $1.12 billion. AMD has total cash of $6.03 billion and a total debt-to-equity ratio of 5.34%.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

The U.S. Bureau of Economic Analysis (BEA) released its Personal Income and Outlays report for April 2024, providing insights into the nation’s economic health.

The report showed modest increases in personal income, disposable personal income (DPI), and personal consumption expenditures (PCE). The PCE Price Index stayed unchanged at 2.7% annually in April, increasing 0.3% on a monthly basis.

PCE Price Index Unchanged at 2.7% Annually in April

Personal income rose by $65.3 billion (0.3% at a monthly rate) in April, while DPI increased by $40.2 billion (0.2%). PCE also increased by $39.1 billion (0.2%). The PCE price index, a measure of inflation watched closely by the Federal Reverse, rose by 0.3%, with a 0.2% increase when excluding food and energy. Real DPI and real PCE both decreased by 0.1%. Personal saving stood at $744.5 billion, with a saving rate of 3.6%.

Housing and utilities, health care, and financial services and insurance were the largest contributors to the increase in services spending. In contrast, the most significant decreases in goods spending were in recreational goods and vehicles and other nondurable goods. Food prices decreased by 0.2%, while energy prices increased by 1.2%. The PCE price index increased by 2.7% from a year ago, and the index excluding food and energy rose by 2.8%.

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Market Gains Slightly on April PCE Report

The stock market experienced positive movements on Friday morning, with major indices recording gains as investors reacted to the latest Personal Consumption Expenditures (PCE) inflation data for April. The Dow Jones Industrial Average (DJIA) increased by 130.2 points (+0.34%) to 38,241.68, while the S&P 500 rose by 13.77 points (+0.26%) to 5,249.25. The NASDAQ also saw an uptick, rising by 23.54 points (+0.14%) to 16,760.62. The Russell 2000 showed the most substantial increase among the major indices, rising by 20.41 points (+1%) to 2,056.6.

Commodity prices, including gold, silver, and oil, also saw gains, suggesting a favorable market outlook and increased demand. Treasury yields remained relatively stable, with slight decreases in the 10-year and 30-year yields, indicating a stable outlook for long-term investments. The USD saw mixed performance against major currencies, with notable increases in the Euro and the Australian Dollar, and decreases in the Canadian Dollar and Swedish Krona.

Do you expect the Federal Reserve to continue with two rate cuts this year? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.

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