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

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.

Join our Telegram group and never miss a breaking story.

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.

The post Stocks to Watch Today: Tesla, Nvidia, and First Solar 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Tesla Surprises with Strong Q2 Deliveries, Stock Soars 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post MSC Industrial Supply Co. Reports Decline in Q3 Net Sales, Revised Outlook 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Paramount Sees Premarket Gains Amid IAC Takeover Bid Talks 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Should You Buy Tesla Stock Before Firm’s Q2 Deliveries Report? 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Stocks to Watch Today: Tesla, Chewy, and Walgreens Boots Alliance 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post GameStop Trader Keith Gill Announces 6.6% Stake in Chewy, Shares Dip 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post The $3 Trillion Club Only Has 3 Stocks: Which One is Likely to Break $4 Trillion First? 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Stocks to Watch Today: Nike, Humana, and UnitedHealth Incorporated 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Uber and Lyft Stocks Gain as Massachusetts Settlement Provides Clarity 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Nike Stumbles as Gloomy Forecast Sends Shares Sprinting Downward 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Stocks to Watch: WBA, Micron Technology, Palo Alto Networks 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.

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.

Join our Telegram group and never miss a breaking story.

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.

The post Acuity Brands’ Mixed Fiscal Q3: $4.15 EPS, $968 M in Revenue 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.

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.

Join our Telegram group and never miss a breaking story.

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.

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

McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, reported its financial results for the second quarter ended May 31, 2024. The company experienced a slight decline in sales, down 1% from the same period last year. This decline was consistent in both reported and constant currency terms. The decrease in sales was primarily driven by a 1% volume decline in the Flavor Solutions segment, which more than offset the volume growth in the Consumer segment.

Operating income for the quarter was $234 million, up from $222 million in the previous year. Operating income was $236 million when adjusted for special charges, compared to $235 million last year. Earnings per share (EPS) notably increased, reaching $0.68 compared to $0.56 in the year-ago period. Adjusted EPS was $0.69, up from $0.60, reflecting a positive impact from discrete tax benefits and improved performance from joint ventures, particularly McCormick de Mexico.

McCormick & Company Surpasses EPS, Revenue Expectations in Fiscal Q2

Compared to market expectations, McCormick’s second quarter of 2024 performance exceeded analyst predictions. The expected EPS for the quarter was $0.59, but the company outperformed with an actual EPS of $0.68. This significant beat can be attributed to higher operating income and favorable tax benefits. The adjusted EPS of $0.69 surpassed the anticipated figure, underscoring the strength of McCormick’s operational efficiency and strategic investments.

Revenue expectations for the quarter were set at $1.63 billion, and McCormick reported actual revenue of $1.643 billion. Although the sales declined by 1% year-over-year, the company met the revenue expectations, indicating a resilient performance amidst challenging market conditions. The slight decline in sales was attributed to strategic divestitures and lower demand in certain segments, which were anticipated by the market.

Join our Telegram group and never miss a breaking story.

McCormick & Company Reaffirms Fiscal 2024 Outlook, Expects EPS in the Range of $2.76 to $2.81

McCormick reaffirmed its fiscal 2024 outlook, projecting a continued focus on strengthening volume trends and prioritizing investments to drive profitable growth. The company expects sales to range between a 2% decline and flat growth compared to 2023 or between a 1% decline and a 1% increase on a constant currency basis. This guidance reflects the anticipated impact of prior pricing actions and strategic decisions made in 2023, including discontinuing low-margin businesses and divestitures.

Operating income for 2024 is expected to grow by 8% to 10%, driven by gross margin expansion and significant investments in brand marketing. The company anticipates adjusted operating income to increase by 3% to 5%, or 4% to 6% on a constant currency basis. McCormick projects its 2024 EPS to be in the range of $2.76 to $2.81, with adjusted EPS expected to be between $2.80 and $2.85, representing an increase of 4% to 6%, or 5% to 7% on a constant currency basis.

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

The post McCormick & Company Reports Better than Expected Q2 Earnings 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.

After Rivian Automotive (NASDAQ: RIVN) announced a strategic partnership with Volkswagen Group worth up to $5 billion, RIVN stock rapidly rose to its February levels. Now at $15.67, RIVN shares nearly doubled its value from the 52-week bottom of $8.26 per share. 

Legacy German carmaker Volkswagen Group will join forces in developing new-gen software for its cars and lowering the cost of Rivian’s vehicles. Volkswagen has a proven track record in scaling global manufacturing, and the company will leverage Rivian’s innovative zonal architecture design.

Departing from the common domain architecture, which disperses electronic control units (ECU) according to function regardless of location, Rivian’s zonal architecture distributes ECUs by location. By relying on data bridges, this type of design significantly cuts costs on the vehicle’s weight and expensive wiring and processing.

In Rivian’s case, this means offsetting the costly battery package. And as all surveys show, EV affordability remains the primary hurdle for EV adoption. Does that mean that Rivian’s bottom line is now more attractive?

What to Expect From Rivian in the Coming Years

From the Volkswagen Group investment announcement, it is clear that the fruits of the equally controlled joint venture will materialize in the latter half of the decade, beyond 2025. Volkswagen will specifically transition to pure zonal architecture with its next-gen software-defined vehicles (SDVs), now boosted by Rivian’s expertise.

“Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost.”

Oliver Blume, Volkswagen Group CEO

In 2025, Rivian plans to roll out the improved versions of its flagship electric SUVs, Rivian R1S and R1T. Now competing with cheaper Kia EV9, R1S will remain a premium offering with dual, tri or quad motor all-wheel drive with up to 850 horsepower and numerous luxury features. The base R1S Dual Standard model is set with a $75,900 price tag up to $108,650 for Tri-Max.

R1T is the affordable option, also with improved performance and range, starting from $69,900 up to $103,400 for Tri-Max. However, Rivian’s five-seater R2, with a $45,000 price tag, will really push mass adoption.

Initially planned to launch from the $5 billion Georgia plant, the plan shifted to the existing facility in Normal, Illinois, for the first half of 2026. Purportedly, this will save over $2.25 billion in costs. 

Join our Telegram group and never miss a breaking story.

Rivian’s Market Segment Demand and Profitability

Like Elon Musk started Tesla with proof-of-concept luxury EVs to break the tradition of awkward-looking cars, Rivian rides the SUV train. Due to their inherent larger size and higher seating position for greater visibility, SUVs have become popular as they make crashes significantly more survivable. 

However, due to their size, SUVs are also fuel-guzzlers. Federal policies on fuel economy standards have inadvertently incentivized SUV manufacturing via the ‘light truck loophole.’ Rivian’s EV version cuts short that concern. 

SUVs’ market share in the passenger vehicle market has consistently grown. Together with pick-up trucks, they made 72.9% of total sales in Q1 2022, according to JATO Dynamics, making them a uniquely American phenomenon. Toyota RAV4 has been the dominant seller, with a starting price point of $33,770 at the time.

Between January and May, Toyota sold 206,559 units in the US. For comparison, Rivian plans to deliver 57,000 units for 2024, having delivered 13,588 SUVs in Q1. Interestingly, the fuel price spike hasn’t toned down the demand for SUVs, indicating a higher income bracket of customers.

According to a YouGov Survey, nearly half of Americans drive an SUV/truck, mainly among consumers “who are older, white, wealthy and who have children.” This bodes well for Rivian’s cheaper R2 lineup as a higher-tier equivalent to regular SUVs like Toyota RAV4. 

Up to this point, Rivian R1S has been the best-selling EV, above $70k in Q1, and has become especially popular in California. With a 5.1% market share in US EVs, the company plans to achieve the first positive gross profit in Q4 2024, per the Q1 shareholder letter. 

Is Tesla Rivian’s Competitor?

Having recalled all 3,878 Cybertrucks due to accelerator pedal issues, followed by recalls related to detachable bed trim while driving and defective windshield wipers, Tesla has fantastically sullied its reputation in the SUV segment.

At the same time, Rivian also had numerous recalls, including for the accelerator pedals. However, as Tesla holds the dominant EV position in the US, the company receives greater public scrutiny. In the branding department, Rivian caters to off-road, adventurous customers, while Tesla is oriented toward the urban tech-savvy crowd.

Rivian is likely to gain from the flops of Cybertruck, but it is also compatible with Tesla’s Supercharger network. Rivian will likely hold and expand its early mover advantage in the electric SUV segment. In the meantime, RIVN stock is heading for a price correction after the buy-in from the Volkswagen news event. 

The average RIVN price target is $14.25, according to Nasdaq’s forecasting data, with the ceiling at $21 and the bottom at $8 per share. For both Tesla and Rivian, the next two years in scaling operations will fortify or break their fundamentals.

Do you think EV resale value serves as another mass adoption hurdle? 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 What Volkswagen Group’s $5 Billion Lifeline Means for RIVN Stock 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.

In a volatile day of trading, three major players in the automotive and biotech sectors are making headlines. Tesla (NASDAQ: TSLA), Rivian (NASDAQ: RIVN), and Moderna (NYSE: MRNA) are each experiencing significant stock movements driven by analyst updates, strategic partnerships, and vaccine efficacy data. Here’s a closer look at the latest developments for these closely watched stocks.

Tesla (TSLA) Stock Gains as Stifel Nicolaus Initiates Coverage with “Buy” Rating, Price Target of $265

Tesla’s stock is rising, gaining 4.26% to reach $195.34 per share as of 11:58 AM EDT. The surge comes as Stifel Nicolaus initiated coverage on the electric vehicle maker with a “buy” rating and a price target of $265.00, well above the current trading price. This positive outlook contrasts with the overall analyst consensus, which maintains a “Hold” rating and a more conservative price target of $187.30.

Despite the day’s gains, Tesla’s year-to-date performance remains negative, down 21.46% and underperforming the S&P 500. The company recently reported quarterly earnings of $0.35 per share, meeting estimates, though revenue of $21.30 billion fell short of expectations. With a market capitalization of $622.404 billion and a P/E ratio of 47.94, Tesla remains dominant in the EV market despite increasing competition.

Join our Telegram group and never miss a breaking story.

Rivian (RIVN) Gets a $5 Billion Lifeline from Volkswagen, Stock Surges

Rivian’s stock is experiencing a dramatic surge, up 26.80% to $15.16 per share, following news of a potential $5 billion investment from Volkswagen. The proposed deal would involve forming an equally controlled joint venture to share EV architecture and software, potentially transforming Rivian’s market position and financial outlook.

Analysts are hailing the partnership as a “core game changer” for Rivian. The funding is expected to bolster the company’s cash reserves and support the development of new models, including the R2 SUVs and R3 crossovers. However, some analysts caution that the funding could dilute Rivian’s share price. The news has propelled Rivian’s market capitalization to $15.094 billion, though the company still reports negative earnings, with an EPS of -$5.77.

Moderna (MRNA) Stock Faces Downward Pressure After Release of Efficacy Data for Newly Approved RSV Vaccine

Moderna’s stock is facing downward pressure, declining 5.40% to $130.17 per share, following the release of efficacy data for its newly approved RSV vaccine, mRESVIA. The latest data shows 50% vaccine efficacy against two or more lower respiratory tract disease symptoms, which some analysts consider to be on the lower end of expectations.

The FDA approved the vaccine last month for adults 60 and older and is now under review by the CDC’s Advisory Committee on Immunization Practices (ACIP). The committee’s opinion will determine the vaccine’s market rollout. Moderna faces stiff competition from GSK and Pfizer, who already have approved RSV vaccines. Despite the day’s losses, Moderna’s year-to-date return remains positive at 30.89%, outperforming the S&P 500.

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

The post Stocks to Watch Today: TSLA, RIVN, and Moderna 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.

UniFirst Corporation (NYSE: UNF) has reported robust financial results for the third quarter of fiscal 2024, showcasing significant growth compared to the same period in the previous fiscal year. The company experienced a notable increase in consolidated revenues, which rose by 4.6% to reach $603.3 million. This growth underscores UniFirst’s ability to enhance its market presence and operational efficiency amidst a competitive landscape. The revenue boost is a testament to the company’s strategic initiatives and customer-centric approach. Operating income for the quarter also saw a substantial rise, climbing by 45.1% to $48.5 million. This increase highlights the company’s effective cost management and operational improvements.

Furthermore, UniFirst’s quarterly tax rate decreased to 22.9%, down from 27.2% in the prior year, contributing to the overall positive financial performance. The reduction in the tax rate reflects the company’s strategic financial planning and tax optimization efforts. Income for the third quarter surged by 56.8% to $38.1 million, compared to $24.3 million in the previous year.

This impressive net income growth indicates UniFirst’s strong operational execution and ability to capitalize on market opportunities. Additionally, diluted earnings per share (EPS) increased significantly to $2.03 from $1.29 in the prior year, marking a 57.4% rise. The EPS growth underscores the company’s commitment to delivering value to its shareholders through consistent financial performance.

UniFirst Surpasses EPS and Revenue Expectations in Fiscal Q3

When comparing UniFirst’s current quarter performance against market expectations, the company has exceeded analyst predictions. The expectations for the quarter were set at an EPS of $1.86 and revenue of $601.17 million. UniFirst not only met but surpassed these expectations, reporting an EPS of $2.03 and revenue of $603.3 million. This outperformance reflects the company’s strong operational capabilities and effective execution of its strategic initiatives. The revenue for the quarter exceeded the anticipated $601.17 million by approximately $2.13 million. This marginal yet significant increase demonstrates UniFirst’s ability to drive top-line growth through its diversified service offerings and customer base.

The company’s focus on expanding its market reach and enhancing service quality has paid off, contributing to the better-than-expected revenue figures. Similarly, the EPS of $2.03 surpassed the expected $1.86 by $0.17, highlighting UniFirst’s efficient cost management and improved profitability.

The higher-than-expected EPS indicates that the company has successfully navigated operational challenges and optimized its financial performance. This achievement boosts investor confidence and positions UniFirst favorably for sustained growth in the coming quarters.

Join our Telegram group and never miss a breaking story.

Guidance for Future Performance

Looking ahead, UniFirst has provided optimistic guidance for the future, building on the strong performance of the third quarter. The company aims to continue its growth trajectory by focusing on strategic investments in technology, customer service, and operational efficiency. UniFirst’s leadership has emphasized the importance of innovation and adaptability in maintaining competitive advantage and driving long-term value creation. The company plans to leverage its strong financial position to explore new market opportunities and expand its service offerings.

This includes potential acquisitions and partnerships that align with UniFirst’s core business objectives. By diversifying its portfolio and enhancing its service capabilities, UniFirst aims to capture a larger market share and drive sustainable revenue growth. Moreover, UniFirst is committed to focusing on cost management and operational excellence. The company plans to implement advanced technologies and process improvements to enhance productivity and reduce operational costs. This strategic approach is expected to support UniFirst’s goal of delivering consistent financial performance and maximizing shareholder value.

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

The post UniFirst Corporation’s Fiscal Q3 Revenue, EPS Beats Expectations 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.

Paychex Inc. (PAYX), a leading provider of human capital management (HCM) solutions, reported robust financial results for the fourth quarter of fiscal year 2024. Total revenue for the quarter reached $1.295 billion, marking a 5% increase from the same period last year. This growth was driven by a combination of higher client numbers, enhanced product penetration, and increased PEO insurance revenues. Adjusted operating income also saw significant improvement, rising by 15% to $521 million in Q4 FY24 compared to $453 million in Q4 FY23.

The company’s adjusted diluted earnings per share (EPS) came in at $1.12, a 15% increase from the $0.97 reported in the previous year’s fourth quarter. This strong performance reflects the company’s successful cost optimization initiatives and solid execution across key operational metrics. Additionally, Paychex maintained a strong liquidity position with net cash and equivalents amounting to $737 million.Significant strides were also made in the PEO segment, which saw a 9% revenue growth, supported by an increase in the number of average PEO worksite employees and higher PEO insurance revenues. The company’s efforts in cost optimization, including reductions in geographic footprint and reprioritization of technology investments, resulted in $39 million in one-time costs but are expected to yield long-term benefits.

Paychex Beats Revenue and EPS Expectations in Fiscal Q4

When compared to market expectations, Paychex’s performance in the fourth quarter of fiscal 2024 exceeded both EPS and revenue forecasts. Analysts had anticipated an EPS of $1.10 and revenue of $1.29 billion. The actual EPS of $1.12 surpassed the forecast by $0.02, while the reported revenue of $1.295 billion slightly exceeded the expected $1.29 billion.

This outperformance was attributed to several key factors. The company’s revenue growth was bolstered by a higher number of clients and increased product penetration, particularly in HR Solutions and Retirement Services. Additionally, the PEO and Insurance Solutions segment showed robust growth, contributing significantly to the overall revenue increase.

Furthermore, Paychex’s effective cost management strategies played a crucial role in enhancing profitability. The company implemented various cost optimization initiatives, which included reducing its geographic footprint and optimizing headcount. These measures not only improved operating margins but also positioned the company for sustainable growth in the future.

Join our Telegram group and never miss a breaking story.

Paychex Expects Fiscal Year 2025 Revenue to Grow Between 4.0% to 5.5%

Looking ahead to fiscal year 2025, Paychex has provided optimistic guidance, forecasting total revenue growth between 4.0% and 5.5%. The company also expects adjusted diluted EPS to grow by 5% to 7%. Management Solutions revenue is projected to increase by 3% to 4%, while PEO and Insurance Solutions revenue is anticipated to grow by 7% to 9%.

The company is also forecasting interest on funds held for clients to be between $150 million and $160 million, with an operating income margin expected to range from 42% to 43%. Other income, net, is projected to be between $35 million and $40 million, and the effective income tax rate is anticipated to be between 24% and 25%.

Paychex is committed to investing in its business to drive sustainable, profitable growth. The company plans to make targeted investments in AI, digital, product, and technology to enhance efficiency and customer experience. These investments are expected to leverage the company’s vast data assets and accelerate AI initiatives, providing clients with valuable insights to help them succeed.

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

The post Paychex Inc. Surpasses Expectations with $1.29 Billion Q4 Revenue 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.

General Mills, Inc. (NYSE: GIS) revealed its financial results for the fourth quarter of fiscal 2024, showcasing a mixed performance amidst a challenging market environment. Net sales for the quarter stood at $4.7 billion, marking a 6% decrease from the previous year. This decline was attributed to unfavorable net price realization and mix and lower pound volume. The company’s operating profit also saw a downturn, falling by 5% to $779 million. Adjusted operating profit, which excludes certain items, was down 10% in constant currency, amounting to $800 million.

Despite these setbacks, General Mills achieved a gross margin of 35.8%, an increase of 140 basis points from the previous year. This improvement was driven by cost savings from its Holistic Margin Management (HMM) initiative, favorable mark-to-market effects, and reduced supply chain costs.However, input cost inflation and unfavorable net price realization partially offset these gains. The company’s diluted earnings per share (EPS) for the quarter were $0.98, a decline of 5%, while adjusted diluted EPS fell by 10% in constant currency to $1.01.

General Mills Falls Short of Expectations in Q4

When comparing the actual results to market expectations, General Mills fell short in both earnings and revenue for the quarter. Analysts had anticipated an EPS of $1.00, but the actual EPS came in slightly lower at $0.98. Similarly, the revenue expectation was set at $4.86 billion, yet the company reported $4.7 billion, missing the mark by approximately $160 million. This shortfall can be attributed to several factors, including a reduction in retailer inventory and a headwind in the International segment’s results.

The company’s performance in the North America Retail segment was particularly concerning, with net sales down 7% to $2.85 billion and segment operating profit dropping by 14%. The Pet segment also faced challenges, with net sales declining by 8% to $602 million. However, there were some bright spots, such as the North America Foodservice segment, which saw a 4% increase in net sales to $589 million, driven by strong growth in breads, cereal, and frozen biscuits.

Despite these mixed results, General Mills’ management remains optimistic. CEO Jeff Harmening emphasized the company’s ability to pivot its plans and enhance efficiency in response to the challenging environment. He highlighted the improved volume performance in the second half of the year and industry-leading levels of HMM cost savings as key achievements.

Join our Telegram group and never miss a breaking story.

GIS Expects Net Sales Growth to Range Between Flat and Up 1%

Looking ahead to fiscal 2025, General Mills provided a cautious yet optimistic outlook. The company expects organic net sales growth to range between flat and up 1%, reflecting a gradual improvement in volume trends across its categories. Adjusted operating profit is projected to be between down 2% and flat in constant currency from the base of $3.6 billion reported in fiscal 2024. This forecast includes a 2-point headwind from resetting incentive compensation after a below-average payout in the prior year.

Adjusted diluted EPS for fiscal 2025 is expected to range from down 1% to up 1% in constant currency from the base of $4.52 earned in fiscal 2024. General Mills also aims for free cash flow conversion to be at least 95% of adjusted after-tax earnings. The company plans to generate HMM cost savings of roughly 4 to 5% of the cost of goods sold, which is anticipated to exceed the expected input cost inflation of 3 to 4%.

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

The post General Mills Misses Expectations in Fiscal Q4, Net Sales Down 6% appeared first on Tokenist.