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

Bitcoin’s (BTC) price took a significant hit on July 4, 2024, dropping below $60,000 for the first time in months. The world’s leading cryptocurrency fell to $57,895.76, down 3.82% in 24 hours, with a market cap of $1.14 trillion. This decline comes amid various factors, including concerns over an impending Mt. Gox payout, U.S. economic uncertainty, and ongoing spot-selling pressure. However, some analysts still believe in the asset’s potential to be priced near $100,000 as early as this November.

Bitcoin Buckles Under Market Pressures and Economic Uncertainty

The cryptocurrency market is bracing for a substantial influx of Bitcoin, with Mt. Gox creditors expected to receive around 142,000 BTC, worth approximately $9 billion, starting in July. This imminent repayment is creating short-term volatility and uncertainty, as investors worry about the market’s ability to absorb this additional supply.

Adding to the market’s woes, Federal Reserve Chair Jerome Powell recently stated that more work is needed to tame inflation. The Fed is now considering only one interest rate cut for the rest of the year, instead of the previously expected two or more. This shift has contributed to a risk-averse sentiment among investors, further weighing on crypto prices.

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Bitcoin’s Bullish Forecasts and Political Considerations

Standard Chartered Bank remains bullish on Bitcoin’s future despite the current downturn. Geoffrey Kendrick, the bank’s head of forex and digital assets research, predicts a new all-time high for Bitcoin in August 2024, with a forecasted price of $100,000 by U.S. election day in November. This prediction, however, hinges on Joe Biden remaining in the presidential race.

Kendrick views former President Donald Trump as “bitcoin-positive,” noting a positive correlation between Trump’s electoral odds and Bitcoin’s price. The analyst reasons that a Trump administration would likely favor regulation and mining. Standard Chartered maintains its year-end 2024 price prediction of $150,000 for Bitcoin, putting the cryptocurrency’s market cap in the $3 trillion club.

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.

Koss Corporation (NASDAQ: KOSS) stock surged over 250% today, reigniting interest in the meme stock that first gained attention during the January 2021 trading frenzy. Despite the company’s weak fundamentals and lack of recent announcements, the dramatic price movement comes amid speculation on social media platforms (particularly a post on /r/superstonk titled “The GME – KOSS Connection: The spark to ignite the basket, and perhaps DFV’s next move?”) and renewed activity from influential retail investors.

Koss and Meme Stock Renaissance

Koss, a small consumer electronics company known for its headphones, saw its stock price skyrocket to $15.42 by midday, representing a gain of $11.06 or 253.67%. This surge follows a 31% increase in after-hours trading on Tuesday, sparked by discussions on the popular Reddit forum r/Superstonk. The stock’s low float of approximately 5.26 million shares and high short interest of 7.7% as of June 15 have contributed to its volatility.

The renewed interest in Koss coincides with the recent return of Keith Gill, known as “Roaring Kitty” on social media, who played a significant role in the original GameStop short squeeze. Gill’s reemergence has reignited enthusiasm among retail investors for potential short squeezes in various meme stocks.

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KOSS is Up 360.30% Year-to-date

The r/Superstonk post that preceded the price surge highlighted the strong correlation between Koss and GameStop stock movements and Koss’s unique characteristics that make it susceptible to a short squeeze. These include its lack of options chain, which limits manipulation tactics, and its small float, which could theoretically be locked up with a relatively modest investment of $20-40 million.

Koss’s market metrics reflect the stock’s dramatic movement, with its market capitalization rising to $142.709 million. The company’s year-to-date return has now reached an astounding 360.30%, far outpacing the S&P 500’s 15.94% gain. However, it’s worth noting that Koss’s fundamentals remain weak, with declining revenue and continued losses. The company reported a trailing twelve-month revenue of $12.45 million and a net loss of $1.12 million.

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

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After lingering deep in the negative gains zone throughout the year, Tesla (NASDAQ: TSLA) is on the brink of a positive year-to-date performance. Presently priced at $241.82, TSLA stock is at the early January level, 12% above its 52-week average of $215.85 per share.

The culprit for the positive reversal comes from Tesla’s Q2 deliveries speculation this week, having exceeded expectations. 

While some forecasts placed the figure between 415,000 – 425,000 range, settling on the consensus of 439,000 per FactSet, Tesla took the market by surprise with 443,956 EVs delivered and 410,831 vehicles manufactured. 

Although this beat Wall Street estimates, the effective sales figure still represents a 4.8% year-over-year decline. The quarterly 14.8% deliveries rise from Q1, however, boosted investor confidence. With year-to-date performance of TSLA shares now at -1.72%, is this a turning point for the company?

Tesla’s Revised Price Targets

Wedbush Securities investment firm was among the first to up the ante. The company’s Senior Equity Research Analyst Daniel Ives boosted TSLA stock prospect by 9%, from $275 to $300 as the new price target 12 months ahead.

This would constitute a 24% performance gain from the price level of $241.82 at press time. Tesla is expected to report its Q2 2024 earnings on July 23rd.

Across 32 analyst inputs pulled by Nasdaq, the average TSLA price target is $180.92, with the high ceiling of $310 per share. For Ives, the most bullish price target is $400 in 2025. The question is, which factors could thwart or even exceed such expectations?

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The Fed’s Rate Cuts: Boon or Negative Indicator?

On Tuesday, Federal Reserve Chair Jerome Powell was once again the star of the macroeconomic show. Powell noted that inflation is likely on a downward, disinflationary path, but this is yet a certainty. He summed up the quandary the central bank faces as one of timing.

“We’re well aware that if we go too soon, that we can undo the good work we’ve done. If we do it too late, we could unnecessarily undermine the recovery and the expansion.”

Powell refrained from setting any specific dates to avoid stirring the market’s animal spirits but fed fund futures priced in three interest rate cuts by the end of the year. According to CME FedWatch, the first one in September has a probability of 80.78% at press time.

The hiking cycle since March 2022 had a great deflating effect on both stocks and digital assets, leaving many to likely never reach their all-time highs. In October 2023, Elon Musk noted that the hiking cycle exacerbated the consumer credit situation, endangering Tesla’s bottom line due to its cyclical nature.

“I think there’s still quite a few shoes to drop on the bad credit situation. Commercial real estate, obviously, is in terrible shape. You know, credit card interest rates are usurious with over 20% interest rates, which, over time becomes extremely punishing.”

However, those shoes may yet drop despite the high probability for rate cuts. According to recent Redfin analysis of the U.S. Census Bureau data, newly built apartments are filling up at the lowest pace since 2020, with less than 47% getting rented. 

Combined with $2.1 trillion worth of excess savings turning into negative $170 billion, and the rise in debt delinquencies of all types, including auto loans, it may well turn out that rate cuts needed to stimulate the economy will be insufficient to bolster Tesla’s growth.

China Competition and Robotaxi Evolution

Tesla’s decline in Q1, the first one since 2020, was mostly attributed to Chinese automakers forcing aggressive price cuts, resulting in lower average selling price of Tesla EVs—moreover, Red Sea disruptions compounded on multiple shutdowns of Gigafactories in Berlin and Fremont.

The mass recall of Cybertrucks further eroded the public’s perception of Tesla. Yet, this had a surprisingly muted impact on Tesla stock, suggesting that its branding is still strong. Ahead of Q2 earnings on July 23rd, TSLA shareholders are counting on the August 8th robotaxi announcement. 

Elon Musk overestimated Full Self-Driving (FSD) deployment by roughly eight years. Since the autopilot feature was introduced in 2014, it has lingered in the marketing gray zone. Effectively at SAE Level 2, it must reach SAE Level 4 to be accurately described as FSD. At the end of May, first major inkling in that direction was revealed.

China’s Ministry of Industry and Information Technology approved Tesla’s software FSD registration, recently approving the FSD testing itself. This is likely because Tesla could license FSD tech to Chinese automakers. Not only would that open a new source of revenue but Tesla would gain valuable data from a more tech-friendly regulatory environment in China.

If FSD finally lives up to its name, Cathie Wood’s forecast for TSLA shares to reach $2,600 by 2029 may materialize. Tesla could evolve into an autonomous ride-hailing company, potentially generating 63% of the company’s revenue, according to Wood’s reasoning. For the time being, Wood shares optimism with Wedbush analyst Ives by positioning the TSLA price target at $350 per share. 

Do you think Tesla should tone down the bells and whistles of its EVs to bridge the affordability gap? 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.

Paramount Global (NASDAQ: PARA), Constellation Energy Corporation (NASDAQ: CEG), and Walgreens Boots Alliance (NASDAQ: WBA) are the three stocks making headlines today for various reasons, from potential mergers to industry shifts and financial challenges.

Paramount Global Shares Gain on Renewed Merger Talks

Paramount Global (PARA) shares surged 6.34% to $11.40 on news of a potential merger with Skydance Media. Shari Redstone’s National Amusements has reportedly reached a preliminary deal to sell its controlling interest in Paramount to David Ellison’s Skydance Media for $1.75 billion.

The agreement, which includes a 45-day “go-shop” period, sent Paramount shares up 9% in after-hours trading. The deal is structured as a two-phase transaction, with Skydance eventually merging with Paramount. Other interested parties include film producer Steven Paul, Seagram heir Edgar Bronfman Jr., and IAC’s Barry Diller.

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Constellation Energy Corporation to Benefit from AI-Driven Energy Demand

Constellation Energy Corporation (CEG) saw its stock rise 2.60% to $211.50, benefiting from the increasing energy demand driven by AI and data centers. A third of U.S. nuclear power plants are in talks with tech companies to supply electricity for AI-powered data centers, with Amazon Web Services reportedly close to a deal with Constellation Energy.

The AI boom has led to a massive surge in electricity demand, with data centers projected to consume up to 9% of U.S. electricity by 2030. CEG’s stock has experienced significant growth, up 81.43% year-to-date, with analysts maintaining a strong buy recommendation and a consensus price target of $235.28.

Walgreens Boot Alliance Continues to Face Headwinds

Walgreens Boots Alliance (WBA) continues to face headwinds, with its stock price falling 3.24% to $11.19. The company recently saw its shares hit a 27-year low after cutting its profit outlook and announcing more store closures. WBA reported a net profit of $545 million in Q3, down 36.5% year-over-year, and slashed its annual earnings outlook by about 12%.

CEO Tim Wentworth stated that “the current pharmacy model is not sustainable,” as the company grapples with difficulties in the pharmacy business and strained American consumers. WBA plans to close a significant portion of underperforming stores over the next three years, while its international division, including Boots UK, showed growth in retail sales, particularly in beauty brands.

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

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onsemi (NASDAQ: ON) announced on July 2, 2024, the completion of its acquisition of SWIR Vision Systems, a leading provider of colloidal quantum-dot-based (CQD) short wavelength infrared (SWIR) technology. The acquisition marks a significant step in onsemi’s strategy to enhance its intelligent sensing product portfolio and expand its presence in key markets such as industrial, automotive, and defense.

SWIR Vision Systems’ Patented Tech Can Supercharge onsemi CMOS Sensors

The integration of SWIR Vision Systems’ patented CQD technology with onsemi’s industry-leading CMOS sensors is expected to revolutionize imaging capabilities. CQD technology extends the detectable light spectrum, enabling imaging through objects previously not possible. This breakthrough has wide-ranging applications, including surveillance systems, silicon inspection, machine vision imaging, food inspection, and autonomous vehicle imaging in extreme conditions.

onsemi aims to leverage its silicon-based CMOS sensors and manufacturing expertise alongside CQD technology to produce highly integrated SWIR sensors at lower costs and higher volumes. This combination is anticipated to result in more compact and cost-effective imaging systems, potentially opening up new market opportunities and applications.

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onsemi’s Stock Gains on SWIR Vision System Acquisition News

While the acquisition is not expected to significantly impact onsemi’s near-to-midterm financial outlook, it has already had a positive effect on the company’s stock performance. On the day of the announcement, onsemi’s stock (ON) closed at $72.92, up 5.41% or $3.74. The company’s market capitalization stood at $31.37 billion, with a trailing twelve-months P/E ratio of 14.88 and earnings per share of $4.90.

SWIR Vision Systems will now operate as a wholly owned subsidiary of onsemi, with its team integrated into onsemi’s Intelligent Sensing Group. The acquired team will continue to operate from their existing location in North Carolina, ensuring continuity and leveraging their expertise in the field.

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.

If there is any sector that could benefit from machine learning, it’s the biotechnology sector. Life sciences are inherently multidisciplinary, generating vast amounts of complex data. AI tools can hone in on emergent patterns in that data, filtering it for insights that open avenues for new advances.

This could range from sequencing genomes to identify mutations to processing the entirety of a patient’s clinical data to paint a clearer picture. Breaking down this data, too, reveals new patterns in the aggregate of thousands of patients. 

Ultimately, the breakdown of such large biochemical datasets could lead to both disease predictions and new drug discoveries. Moreover, such AI tools don’t have to carry the imposed burden of “AI safety” due to particular ideological constraints as demonstrated during Google’s Gemini launch debacle.

But which AI-powered biotech firms have shown the most progress in leveraging AI?

Skye Bioscience (NASDAQ: SKYE)

When pushing the medical envelope, this Californian biotech firm picked the unexplored endocannabinoid system (ECS) field. Naturally produced by the body, endocannabinoids act as neurotransmitters, relaying regulating signals across the body’s cells.

Skye Bioscience uses CB1-targeting molecules to modulate ECS to improve health. So far, the company has focused on the CB1 inhibitor nimacimab to treat obesity, fibrotic liver, pulmonary, and kidney disease, to name a few. 

Just for obesity alone, the addressable market is huge, up to $100 billion by 2030, as forecasted by Goldman Sachs. Moreover, there are indications that CB1 inhibition approach is of lower-risk profile than with current GLP-1 drugs like Ozempic or Trulicity. Based on this promise, Skye Bioscience is pushing nimacimab into Phase 2 trials by mid-summer 2024. 

Accordingly, SKYE stock has skyrocketed by 202% year-to-date. At the present price of $8, SKYE shares are nearly half their 52-week high of $15.60 while near the 52-week bottom of $7 per share, suggesting a favorable entry point. Nasdaq’s forecasting places the average SKYE price target at $21 per share.

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AbCellera Biologics (NASDAQ: ABCL)

Canadian AbCellera developed a unique platform that combines big data automation to filter development candidates for investigational new drugs (INDs). Specifically, it aims to identify new antibodies via its proprietary monoclonal antibody (mAb) screening platform powered by machine vision and sequencing. 

However, the company is yet to establish clinical manufacturing capability, set for 2025. In other words, AbCellera is a pre-early-clinical stage company riding on speculation. Nonetheless, other biotech firms have shown confidence in AbCellera’s pipeline model, such as Incyte (Nasdaq: INCY), Regeneron Pharmaceuticals (Nasdaq: REGN), Prelude Therapeutics (Nasdaq: PRLD) and Biogen (Nasdaq: BIIB).

In 2017, AbCellera partnered with Pfizer for a multi-target research collaboration. These show AbCellera as a well-networked biotech company but for long-term investing exposure.

Year-to-date, ABCL stock is down 54%. From the 52-week average price of $4.88, ABCL shares are down to $2.78, significantly under the 52-week high of $8 per share. Yet, Nasdaq’s forecasting data points to an average price target of $12.6, making ABCL stock a potential massive wealth-maker.

Janux Therapeutics (NASDAQ: JANX)

Tackling cancer, a manifestation of cell entropy, remains the holy grail of medicine. Janux’s approach departs from the traditionally toxic T-cell engagers (TCEs) and favors the TRACTrs and TRACIrs pipeline. 

These proprietary platforms promise increased blood serum stability and targeting accuracy to avoid toxic effects on non-tumor areas. AI can boost the development of bispecific molecules to bind to tumor antigens and T cells.

Janux JANX007 and JANX008 are both in Phase 1 trials, targeting prostate cancer cells and solid tumors, such as non-small cell lung cancer (NSCLC). Of the big pharma players, Janux established cooperation with Merck in 2020, ending March 2024 with a debt-free $652 million pile of cash.

This potent combo of financials and biotech potential propelled JANX stock 264% year-to-date. At $41, JANX stock is still below the 52-week high of $65.60. The latter price level is aligned with Nasdaq’s average JANX price target of $63.33 per share. 

Do you prefer steady gains over long time frames or high-risk stock gambits? 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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Three tech giants are making headlines in a volatile market for different reasons. Tesla’s (NASDAQ: TSLA) stock surged on better-than-expected delivery numbers, while Nvidia (NASDAQ: NVDA) faces potential antitrust charges in France. Meanwhile, First Solar (NASDAQ: FSLR) sees a price target adjustment from analysts. Here’s a closer look at the latest developments for these closely watched stocks.

Tesla (TSLA) Reports Better than Expected Q2 Delivery Numbers

Tesla’s stock is on a tear, surging 8.93% to $228.59 as of 12:21 PM EDT on Tuesday. The electric vehicle maker delivered a positive surprise with its second-quarter delivery numbers, reporting 443,956 vehicles delivered, beating Wall Street estimates of 438,000. This marks Tesla’s first delivery beat in four quarters, despite a 4.7% year-over-year decline.The Model 3 and Model Y accounted for the bulk of deliveries at 422,405 units. Despite the recent rally, Tesla’s stock remains down 8% year-to-date, with a market capitalization of $729.051 billion. Analysts are hailing this as a “huge comeback” for the EV giant, with the stock rising for the sixth consecutive trading day.

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Nvidia (NVDA) Reportedly to Face Antitrust Charges

Nvidia’s stock is facing headwinds, down 1.69% to $122.20 as of 12:22 PM EDT. The chip maker is reportedly set to face antitrust charges from French regulators for allegedly anti-competitive practices.This would mark the first enforcer to act against Nvidia, following dawn raids in the graphics cards sector last September. The investigation is part of a broader inquiry into cloud computing, with concerns raised about the sector’s dependence on Nvidia’s CUDA chip programming software.Despite these challenges, Nvidia’s stock has shown remarkable performance year-to-date, up 146.85% with a staggering market cap of $3.007 trillion. Analysts even discuss the potential for a $10 trillion valuation, highlighting the company’s dominant position in the AI chip market.

First Solar (FSLR) Stock Dips After Analyst Lower Price Target

First Solar’s stock is experiencing a pullback, down 3.53% to $214.85 as of 12:21 PM EDT. This comes as Robert W. Baird lowered its price target for the company from $344.00 to $307.00 while maintaining an “outperform” rating.Despite the reduction, the new target still suggests a 37.85% upside from the previous close. First Solar reported strong first-quarter earnings of $2.20 per share, beating estimates, with revenue up 44.8% year-over-year to $794.10 million. The company’s consensus rating remains a “Moderate Buy” with an average price target of $266.04.With a market cap of $22.971 billion and a PE ratio of 23.34, First Solar continues to be a significant player in the solar energy sector. Despite today’s dip, its year-to-date return is 24.56%.

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.

Tesla Inc. (NASDAQ: TSLA) delivered a positive surprise to investors on Tuesday, reporting second-quarter vehicle deliveries that exceeded Wall Street expectations. The electric vehicle maker’s stock surged in response, reversing recent downward trends.

Tesla Q2 Vehicle Deliveries Beat Expectations

Tesla announced deliveries of 443,956 vehicles in the second quarter of 2024, surpassing the consensus estimate of 438,000. This marks the company’s first delivery beat in four quarters and represents the widest margin of outperformance since Q4 2021. The bulk of deliveries consisted of 422,405 Model 3 and Model Y vehicles, with the remaining 21,551 comprising other models, primarily the Model S and Model X.

Despite beating expectations, Tesla’s Q2 deliveries were down 4.7% compared to the same period last year when the company delivered 466,000 vehicles. Production also saw a year-over-year decline of 14.3%, with 410,831 vehicles manufactured in Q2 2024. Notably, Tesla delivered more vehicles than it produced this quarter, partly due to vehicles in transit from the previous quarter.

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Tesla Stock Surges on Strong Q2 Deliveries Data

The unexpected delivery beat sent Tesla’s stock soaring, with shares up 8.23% to $227.14 as of 10:09 AM EDT on Tuesday. This surge puts the stock on track for its highest close since January 11, 2024, and marks the sixth consecutive day of gains. The positive momentum has driven Tesla’s stock up by 55.2% since its April 22 low, despite still being down 8.60% year-to-date.

Tesla’s market capitalization now stands at $724.267 billion, reflecting investor optimism about the company’s performance. The stock’s P/E ratio is 53.67, with a forward P/E of 84.75, indicating high growth expectations. Analyst price targets for Tesla range from a low of $22.86 to a high of $320.00, with the current price falling within this range. Cathie Wood’s ARK Invest expects Tesla to trade at $2,600 by 2029.

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

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MSC Industrial Supply Co. (NYSE: MSM) reported its fiscal 2024 third-quarter results, showcasing a notable decline in key financial metrics compared to the same period last year. Net sales for the quarter stood at $979.4 million, representing a 7.1% decrease year-over-year.

This decline was attributed to a non-repeating public sector order from the prior year, which created a 300 basis point headwind. Operating income for the quarter was $106.8 million, or $111.5 million when adjusted for restructuring and other costs, resulting in an operating margin of 10.9%, or 11.4% on an adjusted basis. The diluted EPS was reported at $1.27, down from $1.69 in the previous fiscal year, while the adjusted diluted EPS was $1.33, compared to $1.74 in the prior year.

MSC Industrial Supply Co. Misses EPS and Revenue Expectations in Q3

The company’s performance fell short of expectations, which had anticipated an EPS of $1.34 and revenue of $999.64 million. The actual EPS of $1.27 (adj. $1.33) and revenue of $979.4 million were both below these projections. This shortfall was further highlighted by a 24.7% drop in net income attributable to MSC, which was $71.7 million compared to $95.2 million in the same quarter last year. The adjusted net income also saw a decline, standing at $75.2 million, down 22.9% from $97.5 million in the prior year. The company’s gross profit for the quarter was $400.4 million, reflecting a decrease from $428.9 million in the previous year.

The company’s leadership acknowledged the underperformance, attributing it to unexpected gross margin pressure and a slower-than-expected recovery in average daily sales, particularly within its core customer base. CEO Erik Gershwind noted that these factors led to a revised full-year outlook, necessitating swift corrective actions to improve gross margin trends and accelerate progress on web enhancements. CFO Kristen Actis-Grande added that the average daily sales decline of 7.1% was driven by the absence of last year’s public sector orders and softness in manufacturing verticals.

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MSC Industrial Revises Fiscal 2024 Full-Year Outlook

Looking ahead, MSC Industrial has revised its fiscal 2024 full-year financial outlook. The company now expects average daily sales (ADS) growth to decline between 4.7% and 4.3%, a significant adjustment from the previous forecast of 0% to 5% growth. The adjusted operating margin is projected to be between 10.5% and 10.7%, down from the earlier estimate of 12.0% to 12.8%. Depreciation and amortization expenses are expected to be around $80 million, slightly lower than the previous forecast of $85 million. Interest and other expenses are anticipated to be approximately $45 million, within the prior range of $40 million to $50 million. The company maintains its operating cash flow conversion target at over 125%, and the tax rate is projected to remain between 24.0% and 24.5%.

The company’s revised guidance reflects the challenges faced in the third quarter and the ongoing efforts to address these issues. CEO Erik Gershwind expressed confidence in the company’s strategy and talent, emphasizing the company’s commitment to its long-term goals and value creation for stakeholders. The fiscal 2024 fourth-quarter and full-year results are scheduled to be reported on October 24, 2024, providing further insights into the company’s performance and strategic direction.

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.

Paramount Global’s (NASDAQ: PARA) future remains uncertain as the media giant faces potential ownership changes and ongoing financial challenges. Recent developments have seen billionaire Barry Diller’s IAC explore a bid to take control of the company, while previous merger talks with Skydance Media fell through. These events come when Paramount’s stock performance struggles amid a competitive streaming landscape.

IAC Explores Paramount Bid, Streaming Partnerships Considered

Billionaire Barry Diller’s digital media conglomerate IAC has reportedly entered into non-disclosure agreements with National Amusements, which holds the Redstone family’s controlling interest in Paramount Global. This move comes as IAC explores a potential bid to take control of the media giant. The development follows Shari Redstone’s abrupt termination of talks with Skydance Media last month, which has left Paramount’s future ownership in question.

Amid these ownership discussions, Paramount is reportedly holding talks with other media and tech companies about potential streaming partnerships. Warner Bros. Discovery (NASDAQ: WBD) has expressed interest in a joint venture to merge its Max platform with Paramount+, though the ownership structure of such a merger would likely not be an even split.

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Skydance Deal Collapse and its Aftermath

The collapse of the Skydance deal sent shockwaves through Paramount’s board and frustrated employees and investors. Shari Redstone, the controlling shareholder, had initially brought the deal to Paramount months earlier, but it persisted despite opposition from management and other shareholders. The contentious nature of the proposed merger led to the resignation of four board members and the dismissal of Paramount’s CEO, who had been skeptical of the deal.

Redstone’s last-minute decision to leave the Skydance merger came just as the special committee was prepared to approve it. Factors influencing her decision included a reduced offer from Skydance for National Amusements, a strained relationship with Skydance’s David Ellison, the threat of shareholder litigation, and reluctance to relinquish her family’s media legacy. The news of the deal’s collapse caused Paramount’s shares to drop by approximately 8%.

As these ownership and partnership discussions continue, Paramount Global’s stock has shown mixed performance. In pre-market trading, the stock was up 4.04% to $10.55, following a close of $10.14. However, the company’s year-to-date return of -30.81% significantly underperforms the S&P 500 by 45.60%. With a market capitalization of $7.075 billion and an enterprise value of $20.50 billion, Paramount faces ongoing financial challenges, including a negative EPS of -$1.13 and a net loss of $742 million over the trailing twelve months.

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.

Tesla (NASDAQ: TSLA) is scheduled to release its Q2 earnings report on July 17th. Before that, the leading EV company is set to announce Q2 deliveries this week. The Q2 results are adjacent to the much-anticipated “robotaxi day” announcement on August 8th, which is expected to tweak the Tesla narrative.

In the meantime, Tesla’s stock remains the top weight (12.91%) of Cathie Wood’s flagship ARK Innovation ETF (ARKK). TSLA stock is down 12.6% year-to-date, while ARKK is down 8.5%. From the present price of $208 per share, Wood is confident that TSLA will hit over 10x by 2029 at $2,600 per share. 

Much of that optimistic outlook revolves around Tesla’s robotaxi evolution, which Wood projected to make 63% of Tesla’s revenue and the bulk (86%) of the company’s pre-tax earnings by 2029. Cutting the robotaxi factor out of the Tesla equation, Wood’s TSLA price target is more modest at $350 per share. 

Should investors buy that outlook now before Q2 deliveries come in?

Tesla’s Delivery Expectations: 16% Uptick from Last Quarter Expected

In Q1 ‘24, Tesla delivered 386,810 EVs, most of which were Model 3/Y. From the prior quarter Q4 ‘23, this was a 20% drop from 484,507 units delivered. However, for the full year 2023, Tesla increased vehicle deliveries by 37.6% year-over-year to 1,808,581 units.

For Q2 ‘24, FactSet consensus for Tesla deliveries sits at 448,000 EVs, constituting a nearly 16% uptick in sales from the prior quarter.  Some analysts, like Wedbush’s Dan Ives, noted that a less optimistic range should be expected, within 415,000 – 420,000. 

This is in line with New Street’s projection of 425,000 units for the second quarter, as well as Barclays’ 415,000 estimate. All of the positive forecasts, compared to Q1, are accounting for the uptick of Tesla EV sales in China during May, having sold 72,573 units, which is a 17% increase from the year-ago quarter.

Despite battling aggressive price cuts and tough competition from BYD, Li Auto, XPeng, NIO, and others, Tesla holds the second largest market share in China. The Warren Buffett-endorsed BYD sold 330,488 EVs in May, making it the third consecutive month of increased sales of over 300k units.

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The Evolving Tesla Narrative

Although Tesla is tapping into robotics stock with Optimus humanoid robot, not even Cathie Wood expects to see mass commercialized deployment by the decade’s end. Rather, Tesla’s transition into robotics would come primarily from EVs themselves as autonomous robotaxis.

As with eVTOLs, otherwise known as flying cars, China is ahead of the game. Owing to Baidu (China’s Alphabet) and Pony.ai autonomous mobility startup, the self-driving market in China is expected to make 60% of the country’s ride-hailing market by 2030, creating a $180 billion market per IHS Markit forecasting.

According to ResearchAndMarkets, this puts the China Autonomous Vehicle Market’s CAGR at 21.66% for the period 2024 – 2030. Tesla is the dominant EV provider in both the US and EU, making the company the leading candidate for such growth. 

Tesla’s capacity has steadily ramped up over the years to prepare for the EV future. Image credit: Tesla

Much of that leading position stems from the network effect coming from processed captured driver data. Still at SAE Level 2, that data is needed to deliver Full Self-Driving (FSD) capability (FSD is SAE Level 4). However, even if the technical challenges are resolved, Tesla would have to overcome local and federal regulatory hurdles.

Given that Elon Musk underestimated the time frame needed for FSD by about eight years, further lengthy delays are exceedingly likely. Professor Philip Koopman, at Carnegie Mellon University, had previously noted that a 10 – 20 year range aligns more with reality.

If Tesla’s “robotaxi day” on August 8th convincingly breaks such expectations, Tesla’s pivotal stock rally is likely. The most recent news on granted green light to test FSD in China suggests a more optimistic outlook.

Cheaper Tesla EVs and Tesla Energy

Even if the robotaxi narrative is delayed, Tesla shareholders have the “Model 2” project to look forward to. Previously dubbed “Redwood”, the rumored $25k price tag is finally supposed to tackle affordability as the main EV adoption hurdle, by mid-2025. 

The new Tesla hatchback will compete with Volvo EX30, Renault 4, Fiat 500e, VW ID.2 and others.

In addition to EVs and robotics, Tesla Energy has much growth potential. The clean energy division offers solar panels, inverters, powerwalls and large-scale energy storage systems dubbed Megapack. 

In Q1, Tesla Energy broke the record with cumulative 4,053 MWh energy storage deployed, having increased year-over-year revenue by 7%. Likewise, Tesla ramped up its AI training compute operations by over 130% for the quarter.

Tesla Stock Price Targets

Having reduced its free cash flow by 674% YoY, from $2 billion in Q4 2023 to negative $2.5 billion in Q1 2024, Tesla understandably spooked investors. However, these infrastructure capital expenditures (capex) are signaling that Tesla is preparing for the long haul. 

Twelve months ahead, Nasdaq’s forecasting data shows the average TSLA price target at $182.1, with a ceiling of $310 per share. The bottom is $22.86, showcasing many unknowns in tech challenges, macro environment, logistics lithium supply, and the market’s reception of Tesla’s competitors.

At the present price of $208, Tesla is still half way from its all-time high of $409 in November 2021. The average 52-week price of TSLA stock is $216, while the present price level is well above the 52-week low of $138 per share. 

Are you concerned that a potential economic hard landing will foil Tesla’s plans for the full 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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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our  website policy prior to making financial decisions.

As the stock market continues to show volatility today, three companies are capturing investors’ attention due to significant news and price movements. Tesla (NASDAQ: TSLA), Chewy Inc (NYSE: CHWY), and Walgreens Boots Alliance (NYSE: WBA) are all experiencing notable shifts in their stock prices and facing key developments that could impact their future performance.

Tesla Stock Gains Ahead of Q2 Vehicle Deliveries Report

Tesla’s stock is surging today, up 6.51% to $210.76, as investors eagerly await the company’s Q2 global vehicle deliveries report, set to be released on Tuesday, July 2, 2024. Despite the current rally, Tesla’s year-to-date return remains negative at -15.10%. Analysts are predicting Q2 deliveries of around 436,000 vehicles, representing a 6.5% decrease from Q2 2023 but a 13% increase from Q1 2024. Some analysts are even more conservative, forecasting deliveries in the 410,000-425,000 range.

Beyond vehicle deliveries, investors are also focusing on Tesla’s energy storage business. The company deployed a record 4,053 MWh of energy storage in Q1 2024, with CEO Elon Musk projecting 200-300% year-over-year growth in this segment. Additionally, Tesla plans to unveil its “robotaxi” on August 8, 2024, which is seen as a potential catalyst for future growth.

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Chewy Inc Stock Becomes Volatile After GameStop Short Squeeze Trader Announces Massive Stake

Chewy’s stock experienced significant volatility today following news that Keith Gill, known as “Roaring Kitty” from the 2021 GameStop meme stock rally, has disclosed a 6.6% stake in the company. The stock initially surged 15% in premarket trading but has since reversed those gains, currently trading down 6.15% at $25.57. Gill’s stake, worth about $245 million, makes him the third-largest shareholder in Chewy.

Despite today’s downturn, Chewy’s year-to-date return remains positive at 8.19%. The online pet food and medicine retailer, founded by current GameStop CEO Ryan Cohen, has maintained stable sales despite weaker overall consumer spending. However, the company’s P/E ratio of 143.37 and negative 5-year return of -26.96% highlight the challenges it faces in a competitive e-commerce landscape.

Walgreens Boots Alliance Slides After Boots CEO Quits

Walgreens Boots Alliance stock is down 4.18% today to $11.59, continuing a troubling trend for the company. WBA’s year-to-date return stands at -54.48%, with a staggering 5-year return of -73.13%. The company recently missed Q3 earnings expectations and has been under pressure due to a weak outlook.

Adding to investor concerns, Boots CEO Sebastian James announced he would leave the company in November 2024 after six years in the role. This news comes as WBA has decided against selling or floating Boots for the second time in two years. Despite these challenges, under James’ leadership, Boots’ market share has grown for 13 successive quarters, with recent results showing total UK sales growth of 1.6% and comparable retail sales growth of 6%.

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

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The stock market experienced unexpected turbulence Monday as Keith Gill, better known by his online persona “Roaring Kitty,” disclosed a significant stake in pet retailer Chewy Inc (NYSE: CHWY). This move comes amid a reignited interest in so-called “meme stocks” and their potential for sudden price movements and increased volatility.

Key Player in GameStop Short Squeeze Acquires 6.6% of Chewy, Becomes Third-Largest Shareholder

According to an SEC filing, Gill has acquired over 9 million shares of Chewy, amounting to a 6.6% stake in the company. This makes him the third-largest shareholder, with the stake valued at more than $245 million based on Friday’s closing price. The filing also included a humorous touch, with Gill checking a box stating “I am not a cat,” a reference to his previous congressional testimony.

Chewy’s stock initially rallied 9% on the news but quickly reversed course, falling into negative territory. As of 10:27 AM EDT, Chewy’s stock was trading at $25.85, down 5.10% for the day. The company’s market capitalization stood at $11.25 billion, with a price-to-earnings ratio of 143.37, indicating a potentially overvalued stock.

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Gill Continues to Back Ryan Cohen-Influenced Firms

Gill’s investment in Chewy suggests a continued interest in companies associated with Ryan Cohen, the founder and former CEO of Chewy, who is now leading a turnaround effort at GameStop (NYSE: GME) as its CEO. This connection has not gone unnoticed by the market, with GameStop’s stock also experiencing volatility in the wake of the news.

As of 10:26 AM EDT, GameStop’s stock was trading at $23.17, down 6.16% for the day. Despite the day’s losses, the company has seen a year-to-date return of 32.40%, outperforming the S&P 500‘s 14.53% gain. However, with a price-to-earnings ratio of 308.62, concerns about overvaluation persist.

Gill’s move from GameStop options to Chewy shares might indicate a shift in investment strategy, though it remains unclear if he sold his GameStop position to fund the Chewy purchase.

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

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For almost 18 months, the broad S&P 500 (SPX) index hasn’t seen a daily drop of over 2%. While a longer consolidation stretch was present in the early 2000s up until the Great Recession, there has never been such a strong market concentration.

The top 10 stocks now comprise 38% of the SPX market cap. According to Bloomberg Intelligence, such winnowing led to a precipitous group of companies above the 200-day moving average, suggesting weak market breadth. 

Image credit: Bloomberg Intelligence

In other words, the market consolidation and subsequent concentration will likely lead to a reversal, as seen in previous dislocations. This is further compounded by the low 19% of all US stocks outperforming the lowest index in 20 years. 

At the same time, it is not clear that a sudden halt is ahead, considering that the AAII Sentiment Survey shows a 44.5% bullish outlook, above the historical average of 37.5%. What is clear is that some companies have higher concentrations of human capital, patents, and tech than others.

Which of these $3 trillion companies is the most likely to cross the $4 trillion milestone over the next few years, even after the potential market correction?

Nvidia (NASDAQ: NVDA) – $3.05 Trillion Market Cap

Although Super Micro Computer (NASDAQ: SMCI) outperformed Nvidia at 207% vs 163% year-to-date respectively, Nvidia had the most rapid rise over the last 10 years, even outperforming Bitcoin (BTC). As such, Nvidia is the most likely candidate for a major price correction.

As a fabless semiconductor company, Nvidia heavily relies on Taiwan Semiconductor Manufacturing Company (NYES: TSM) to materialize its chip designs. The geopolitical tensions between the US and China are staving off greater capital inflows into TSMC. At the same time, if a hot scenario is to unfold, Nvidia and the rest of the market would be first to topple.

By the same token, TSMC would divert capital inflows from Nvidia if tensions fizzled into nothing following the US presidential elections. More importantly, it is a speculative thesis if generative AI infrastructure will be needed at such a high level as NVDA’s price-to-earnings (P/E) ratio of 72.52 suggests. 

Namely, some studies suggest that the current approach to large language models (LLMs) has a plateau that will not benefit from a greater amount of deployed GPUs. Lastly, Nvidia’s rapid rise could have a boomerang effect. After locking in their stock profits, Nvidia could see an outflow of their most senior talent that powered the company’s growth in the first place.

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Microsoft (NASDAQ: MSFT) – $3.36 Trillion Market Cap

Under Satya Nadella’s leadership, Microsoft has achieved 1,085% growth since becoming the third CEO in February 2014. By all measures, it is unlikely that Microsoft will end up like IBM (NYSE: IBM). Quite the opposite, through its wide moat across Windows OS, productivity software suites, gaming, and Azure cloud computing, the company has a deep ecosystem of consistent revenue.

Microsoft demonstrated this with a 21% YoY increase in free cash flow to $21 billion, per FY24 Q3 earnings call. Across divisions, Microsoft’s Azure continues to catch up with Amazon Web Services (AWS) with 31% revenue growth, followed by 62% revenue increase for Xbox content following Activision acquisition.

In turn, this excellent network effect across services is only likely to increase with the integration of AI Copilot. This is compounded by Microsoft’s habit of strategic acquisitions, such as GitHub and LinkedIn, further widening the moat.

More importantly, considering the fusion trend between corporate and government power, antitrust concerns will likely take a back seat to utilitarianism. While not a high-grower like Nvidia, this makes Microsoft the most sustainable grower years ahead.

Apple (NASDAQ: AAPL) – $3.28 Trillion Market Cap

After somewhat dampened global demand, Apple’s iPhone sales saw a 52% surge in April in the Chinese market. As of Q2 2024, iPhone sales accounted for 50.46% of total quarterly revenue of $90.75 billion, lower than the $92.84 billion in the year-ago quarter.

Following the Vision Pro flop, the company clearly needs to change course from devices to more exciting services. But it is no secret that Apple has been perceived as dried up in the innovation department for years.

In May’s Q2 2024 earnings, services delivered $23.8 billion in sales compared to $20.9 billion in the year-ago quarter. So far, Apple counted on record-breaking stock buyback programs to boost AAPL stock, but this can only carry shareholder loyalty to a point considering other choices.

Apple’s market share is not only stagnant but decreased from 21% in Q1 2023 to 16% in Q1 2024. Despite share repurchasing and Apple’s brand loyalty, fortified by an intentionally walled-off ecosystem, AAPL stock barely caught up with the broader market S&P 500 index at 15.40% year-to-date performance.

However, Apple’s successful AI integration may change this momentum, inviting new customers to an otherwise unavailable experience. This will be a challenging task considering strong Microsoft competition in the form of the latest Copilot+ initiative powered by Snapdragon X Elite and X Plus chips.

Do you think presidential elections will affect the stock market positively or negatively? 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.

In a volatile trading session on Friday, major stocks in the consumer goods and healthcare sectors showed significant movements, driven by earnings reports, strategic partnerships, and legal settlements. Nike (NYSE: NKE), Humana (NYSE: HUM), and UnitedHealth Group Incorporated (NYSE: UNH) all garnered investor attention for various reasons.

Nike Shares Plummets After Weak Forecast

Nike shares plummeted 19.54% to $75.78, wiping out nearly $28 billion in market value. The sportswear giant reported mixed fourth-quarter results, with earnings beating expectations at $1.01 per share but revenue falling short at $12.61 billion, down 2% year-over-year. Despite a 5% increase in wholesale revenue, direct-to-consumer sales declined 8%.Nike’s gloomy forecast for fiscal 2025, projecting a 10% sales drop in Q1 and mid-single-digit declines for the full year, spooked investors. The company cited slower online sales, planned reductions in classic footwear lines, uncertainty in China, and uneven consumer trends as contributing factors.With a market cap of $114.402 billion and a P/E ratio of 27.70, Nike’s stock has significantly underperformed the S&P 500 this year, down 29.66% year-to-date.

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Humana Stock Gains on PyschAmor Collaboration

Humana shares bucked the trend, rising 3.97% to $376.45. The health insurance provider announced a collaboration between its subsidiaries, Conviva Care Center and CenterWell Senior Primary Care, and PsychArmor, a leading provider of military cultural awareness training. This partnership will give 23 senior primary care centers in Texas access to the Veteran Ready Healthcare Certificate program, which aims to improve care for aging veterans and their families.The initiative covers training in military culture, communication with veterans, suicide prevention, and opioid use disorder. As of March 31, 2024, Humana’s CenterWell and Conviva provided care to about 318,000 seniors across 300 centers in 15 states.With a market cap of $45.363 billion and a P/E ratio of 22.35, Humana’s stock has underperformed the S&P 500 year-to-date but shows a positive 5-year return of 47.15%.

UnitedHealth Group’s OptumRx Settles Opioid Prescriptions Case, Shares Gain

UnitedHealth Group (UNH) shares climbed 2.49% to $498.55 after news of a $20 million settlement by its pharmacy benefit manager unit, OptumRx. The settlement addresses U.S. government claims that OptumRx improperly filled certain opioid prescriptions between 2013 and 2015.This marks the first government agreement with a pharmacy benefit manager over alleged illicit opioid prescriptions. The broader opioid litigation has resulted in nearly $50 billion in settlements across the healthcare industry.UnitedHealth Group, with a market cap of $458.775 billion and a P/E ratio of 29.70, has shown resilience with a positive 1-year return of 4.90% and an impressive 5-year return of 118.03%.

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

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In a landmark agreement, ride-hailing giants Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) have settled with Massachusetts Attorney General Andrea Campbell, ushering in a new era of driver benefits and protections. The deal, announced on Thursday, establishes a minimum pay standard and introduces a suite of benefits for drivers while preserving their status as independent contractors. This development has significant implications for the gig economy and has been reflected in the companies’ stock performances.

Uber and Lyft Settle with Massachusetts, Agree on Minimum Pay

Under the new agreement, Uber and Lyft drivers in Massachusetts will be guaranteed a minimum pay of $32.50 per hour for time spent on trips and en route to pickups. The deal also includes paid sick leave, accruing one hour for every 30 hours worked, up to 40 hours annually. Drivers working more than 15 hours per week will receive a health insurance stipend, and all drivers will be covered by occupational accident insurance up to $1 million for work-related injuries.

Additional benefits include a stipend for the state’s paid family and medical leave program, protection against discrimination and retaliation, and increased transparency on trip details before acceptance. The companies will also provide in-app chat support in multiple languages and implement an appeal process for driver deactivations. To settle allegations of past wage and hour law violations, Uber and Lyft will pay the state a combined $175 million.

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Settlement Resolves Longstanding Lawsuit, Provides Clarity

The settlement resolves a longstanding lawsuit in Massachusetts and avoids the need for a contentious ballot initiative campaign planned for November 2024. Both companies view this as a major victory, preserving drivers’ independent contractor status while providing enhanced benefits. The agreement creates a framework that balances flexibility with worker protections, potentially serving as a model for similar agreements in other states.

Uber and Lyft executives hailed the deal as aligning with their vision of 21st-century work. It allows them to move forward with a new operating model that resolves historical liabilities. Implementing these new benefits will be phased in stages from August 2024 to March 2025, giving the companies time to adjust their operations.

Uber and Lyft Stock Gain

The announcement has had a positive impact on both companies’ stock prices. As of 9:48 AM EDT on the day following the announcement, Lyft’s stock was trading at $13.85, up 3.44% for the day, with a market capitalization of $5.591 billion. Despite this gain, Lyft’s year-to-date return remains negative at -7.55%, though its one-year return shows a significant 40.69% increase.

Uber’s stock performance was also strong, trading at $72.32, up 2.81% for the day, with a much larger market capitalization of $151.072 billion. Uber has outperformed Lyft in both year-to-date and one-year returns, with 17.43% and 64.96% gains respectively.

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.

Nike, Inc. (NYSE: NKE) reported its fourth-quarter earnings for fiscal year 2024, revealing mixed results and a disappointing forecast that sent shares tumbling in after-hours trading. The sportswear giant beat earnings expectations but fell short on revenue, signaling challenges ahead for the world’s largest athletic apparel company.

Nike’s Q4 Earnings and Fiscal Year 2024 Results

Nike reported adjusted earnings per share of $1.01, surpassing analyst expectations of 83 cents. However, revenue for the quarter came in at $12.61 billion, falling short of the anticipated $12.84 billion and representing a 2% decline from the previous year. Net income for the quarter rose to $1.5 billion, or 99 cents per share, compared to $1.03 billion, or 66 cents per share, a year earlier.

For the full fiscal year 2024, Nike’s sales remained flat at $51.36 billion. The company saw mixed results across its global markets, with China sales exceeding expectations at $1.86 billion, while North America, Europe, Middle East and Africa, and Asia Pacific and Latin America regions all fell short of projections. More importantly, Nike’s direct-to-consumer revenues declined 8% to $5.1 billion, while wholesale revenue increased 5% to $7.1 billion. The Converse brand, owned by Nike, experienced a significant 18% drop in revenue to $480 million.

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Nike Shares Plunge on Firm’s Weak Sales Forecast

Nike’s outlook for the coming quarters has alarmed investors and analysts alike. The company expects sales to drop 10% during its current quarter (Q1 fiscal 2025), far exceeding the 3.2% decline analysts had anticipated. For the full fiscal year 2025, Nike forecasts sales to be down in the mid-single digits, a stark contrast to previous growth expectations.

The sportswear giant cited several factors contributing to its gloomy forecast, including slower online sales, planned declines in classic footwear franchises, increased uncertainty in the Chinese market, and uneven consumer trends across its markets. Nike also faces growing competition from upstart rivals like On Running and Hoka and a potential shift in consumer preferences towards denim and dressier styles.

In response to the disappointing forecast, Nike’s shares plunged approximately 11-12% in after-hours trading, potentially leading to a $15 billion loss in market value. As of 6:42 AM EDT in pre-market trading, the stock was down 14.49% to $80.54.

Despite the current challenges, Nike maintains a market capitalization of $142.167 billion and remains a favorite among analysts, with the majority maintaining “Buy” or “Strong Buy” recommendations. However, the company’s year-to-date return of -12.59% significantly underperforms the S&P 500’s 14.95% gain, highlighting Nike’s hurdles in regaining its market momentum.

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.

In a volatile trading session, three major stocks are capturing investors’ attention with significant price movements and key announcements. Walgreens Boots Alliance (NASDAQ: WBA) faced a steep decline following its earnings report, while Micron Technology (NASDAQ: MU) saw a pullback despite beating expectations. Meanwhile, Palo Alto Networks (NASDAQ: PANW) gained on positive analyst sentiment. Here’s a closer look at these stocks making waves in today’s market.

Walgreens Boots Alliance (WBA) Stock Plunges on Third-Quarter Earnings Report

Shares of Walgreens Boots Alliance plummeted 24.77% to $11.78 as of 11:30 AM EDT, following the release of its fiscal third-quarter earnings report. Despite beating revenue expectations with $36.4 billion against an anticipated $35.94 billion, the company’s adjusted earnings per share of $0.63 fell short of the expected $0.68. The pharmaceutical retailer slashed its full-year adjusted profit outlook to $2.80-$2.95 per share from the previous $3.20-$3.35, citing a “challenging” environment for pharmacies and U.S. consumers.

Walgreens announced plans to close underperforming U.S. stores over multiple years as part of a cost-cutting strategy. Despite challenges in its retail segment, which saw a 4% decline in sales, the company’s U.S. healthcare segment grew 7.6% year-over-year to $2.13 billion. The stock’s year-to-date return stands at -53.64%, significantly underperforming the S&P 500‘s 14.69% gain.

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Micron Technology (MU) Dips Despite Better than Expected Results, Fails to Impress AI-Driven Expectations

Micron Technology shares dropped 6.76% to $132.73 by late morning trading, despite reporting better-than-expected quarterly results. The memory chip manufacturer posted earnings per share of $0.62, surpassing the projected $0.51, and revenue of $6.81 billion, exceeding the estimated $6.67 billion. However, forward guidance that merely met analyst expectations appeared to disappoint investors, especially considering the stock’s strong performance leading up to earnings, having rallied over 65% year-to-date.

With a market capitalization of $157.70 billion, Micron remains a key player in the AI-driven semiconductor rally. However, some analysts suggest the stock may be overvalued in the short term, with an estimated fair value of $97.84, significantly below its current trading price. Despite the pullback, the average analyst price target stands at $153.08, indicating potential upside.

Palo Alto Networks (PANW) Stock Gains on Analyst Optimism

Bucking the downward trend, Palo Alto Networks saw its stock rise 5.28% to $342.42 by late morning. The cybersecurity firm continues to benefit from bullish analyst sentiment, with both Robert W. Baird and Cantor Fitzgerald analysts maintaining Buy ratings. Analysts cite steady demand, improved visibility for the year’s second half, and successful platformization strategies, particularly in Secure Access Service Edge (SASE) and Extended Security Information and Event Management (XSIEM).

Palo Alto Networks boasts impressive growth metrics, with a year-to-date return of 16.12% and a one-year return of 40.45%, outpacing the broader market. The company’s focus on high-quality, sustainable customer relationships and positive response to new AI features have contributed to its strong performance in the rapidly growing cybersecurity sector.

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.

Acuity Brands, Inc. (NYSE: AYI), a market-leading industrial technology company, reported its third-quarter fiscal 2024 results, revealing a mixed performance. The company announced net sales of $968.1 million for the quarter ended May 31, 2024. This figure represents a 3% decline compared to the same period last year, indicating a slight contraction in their top-line revenue. Despite the dip in sales, Acuity Brands managed to grow its operating profit to $145 million, marking a 1% increase over the prior year. When adjusted, the operating profit rose to $167 million, up by 3% year-over-year.

Further highlighting the company’s efficiency, Acuity Brands reported a diluted EPS of $3.62, which is a 10% increase from the previous year’s third quarter. On an adjusted basis, the diluted EPS was $4.15, reflecting an 11% growth over the prior year. Acuity Brands also generated $445 million in year-to-date cash flow from operations, showcasing strong operational cash flow management.

Acuity Brands Beats EPS Expectations in Fiscal Q3, Misses on Revenue

When comparing the company’s performance to market expectations, Acuity Brands’ results present a nuanced picture. The consensus among analysts was an expected EPS of $4.13 and revenue of $1.01 billion for the quarter. Acuity Brands surpassed the EPS expectation, delivering an adjusted EPS of $4.15, which is slightly above the anticipated figure. This overachievement in EPS highlights the company’s effective cost management and operational efficiencies.

However, the company fell short on the revenue front, reporting $968.1 million against the expected $1.01 billion. This shortfall in revenue, amounting to approximately $42 million, indicates that while the company managed to control costs and improve profitability, it faced challenges in driving sales growth. The 3% decline in net sales compared to the prior year suggests that market conditions or competitive pressures might have impacted their ability to meet the revenue expectations.

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Acuity Brands Cautiously Optimistic on Guidance

Looking forward, Acuity Brands has provided guidance that reflects cautious optimism. The company has not specified exact figures but has indicated a focus on maintaining profitability and operational efficiency. The strong year-to-date cash flow from operations of $445 million positions the company well to invest in strategic initiatives and navigate potential market uncertainties.

Acuity Brands’ management has emphasized their commitment to delivering shareholder value through disciplined execution and strategic investments. The growth in adjusted operating profit and EPS despite revenue challenges signals a robust underlying business model. Investors and stakeholders can expect the company to continue prioritizing profitable growth and cash flow generation as key pillars of their strategy moving forward.

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

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The Simply Good Foods Company (NASDAQ: SMPL) recently announced its financial results for the third quarter of fiscal year 2024, showcasing a period of solid performance and strategic growth. Despite the exclusion of the newly acquired Only What You Need, Inc. (OWYN) from these results, the company demonstrated robust financial health. Net sales for the quarter reached $334.8 million, reflecting an increase from $324.8 million in the same period last year.

Net income for Simply Good Foods also saw a notable rise, climbing to $41.3 million from $35.4 million in the previous year’s third quarter. This increase in net income highlights the company’s operational efficiency and successful cost management strategies.

SMPL Slightly Misses Revenue Expectations in Fiscal Q3, Beats EPS

When comparing the company’s actual performance against market expectations, Simply Good Foods delivered mixed results. Analysts had anticipated an earnings per share (EPS) of $0.47, while the company’s actual EPS ($0.5) came in slightly above this forecast. The company’s revenue performance was nearly on target with expectations. The anticipated revenue was $336.75 million, and the actual revenue reported was $334.8 million, which is a marginal difference, indicating that the company is closely aligned with market predictions.

The close alignment of actual revenue with expectations suggests that the company’s sales strategies and market penetration efforts are effective. Investors and stakeholders might view this as a temporary variance, with the potential for future quarters to align more closely with or exceed expectations.

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Simply Good Foods Updates Guidance for Full Year 2024

Looking ahead, Simply Good Foods has updated its guidance for the full fiscal year 2024, reflecting confidence in its strategic direction and market positioning. The company anticipates continued growth in net sales and profitability, driven by its core business operations and the recent acquisition of OWYN. The integration of OWYN is expected to enhance the company’s product portfolio and open new market opportunities, contributing positively to future financial results.

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

The post Simply Good Foods Company (SMPL) Reports $334.8 M in Q3 Sales, Slightly Below Forecast appeared first on Tokenist.