U.S. Reorders Arms Deliveries to Free Up More Patriots for Ukraine
The U.S. promise to quickly replace Germany's Patriots is the first instance of the Pentagon facilitating weapons deliveries for Ukraine since President Trump announced earlier this month that he favored sending more arms.
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12 minutes ago
- Yahoo
Is General Dynamics (GD) The Best Defense Stock to Buy in 2025?
General Dynamics Corp (NYSE:GD) is one of the . Citi's Jason Gursky named General Dynamics Corp (NYSE:GD) as one of the top stocks to benefit from the increasing defense spending in the US and Europe. The analyst believes the new contracts these companies are winning 'look more margin-accretive going forward.' Photo by Kevin Schmid on Unsplash Gursky mentioned specifically why he likes General Dynamics Corp (NYSE:GD): 'Shipbuilding is another area of focus. There's concern over the capacity gap between the U.S. and China, with China having far greater production capacity. That's why we're constructive on Huntington Ingalls and General Dynamics—they're positioned to benefit from investment in shipbuilding infrastructure.' While we acknowledge the potential of GD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
12 minutes ago
- Yahoo
Analysis-EU's $250 billion-per-year spending on US energy is unrealistic
By Kate Abnett and Arathy Somasekhar BRUSSELS/HOUSTON (Reuters) -The European Union's pledge to buy $250 billion of U.S. energy supplies per year is unrealistic because it would require the redirection of most U.S. energy exports towards Europe and the EU has little control over the energy its companies import. The U.S. and EU struck a framework trade deal on Sunday, which will impose 15% U.S. tariffs on most EU goods. The deal included a pledge for the EU to spend $250 billion annually on U.S. energy - imports of oil, liquefied natural gas and nuclear technology - for the next three years. Total U.S. energy exports to all buyers worldwide in 2024 amounted to $318 billion, U.S. Energy Information Administration data showed. Of that, the EU imported a combined $76 billion of U.S. petroleum, LNG and solid fuels such as coal in 2024, according to Reuters' calculations based on Eurostat data. More than tripling those imports was unrealistic, analysts said. Arturo Regalado, senior LNG analyst at Kpler, said the scope of the energy trade envisioned in the deal "exceeds market realities." "U.S. oil flows would need to fully redirect towards the EU to reach the target, or the value of LNG imports from the US would need to increase sixfold," Regalado said. There is strong competition for U.S. energy exports as other countries need the supplies - and have themselves pledged to buy more in trade deals. Japan agreed to a "major expansion of U.S. energy exports" in its U.S. trade deal last week, the White House said in a statement. South Korea has also indicated interest in investing and purchasing fuel from an Alaskan LNG project as it seeks a trade deal. Competition for U.S. energy could drive up benchmark U.S. oil and gas prices and encourage U.S. producers to favour exports over domestic supply. That could make fuel and power costs more expensive, which would be a political and economic headache for U.S. and EU leaders. Neither side has detailed what was included in the energy deal - or whether it covered items such as energy services or parts for power grids and plants. The EU estimates its member countries' plans to expand nuclear energy would require hundreds of billions of euros in investments by 2050. Its nuclear reactor-related imports, however, totalled just 53.3 billion euros in 2024, trade data shows. The energy pledge reflected the EU's analysis of how much U.S. energy supply it could accommodate, a senior EU official said, but that would depend on investments in U.S. oil and LNG infrastructure, European import infrastructure, and shipping capacity. "These figures, again, are not taken out of thin air. So yes, they require investments," said the senior official, who declined to be named. "Yes, it will vary according to the energy sources. But these are figures which are reachable." There was no public commitment to the delivery, the official added, because the EU would not buy the energy - its companies would. Private companies import most of Europe's oil, while a mix of private and state-run companies import gas. The European Commission can aggregate demand for LNG to negotiate better terms, but cannot force companies to buy fuel. That is a commercial decision. "It's just unrealistic," ICIS analysts Andreas Schröder and Ajay Parmar said in written comments to Reuters. "Either Europe pays a super high non-market reflective price for U.S. LNG or it takes way too much LNG volumes, more than it can cope with." U.S. PRODUCTION The United States is already the EU's top supplier of LNG and oil, shipping 44% of EU LNG needs and 15.4% of its oil in 2024, according to EU data. Raising imports to the target would require a U.S. LNG expansion way beyond what is planned through 2030, said Jacob Mandel, research lead at Aurora Energy Research. "You can add on capacity," Mandel said. "But if you're talking about the scale that would be necessary to meet these targets, the $250 billion, then it's not really feasible." Europe could buy $50 billion more of U.S. LNG annually as supply increases, he said. REPLACING RUSSIA The EU has said it could import more U.S. energy as its plan advances to end Russian oil and gas imports by 2028. The EU imported around 94 million barrels of Russian oil last year - 3% of the bloc's crude purchases - and 52 billion cubic metres (bcm) of Russian LNG and gas, according to EU data. For comparison, the EU imported 45 bcm of U.S. LNG last year. Higher EU fuel purchases would, however, run counter to forecasts for EU demand to decline as it shifts to clean energy, analysts said. "There is no major need for the EU to import more oil from the U.S., in fact, its oil demand peaked a number of years ago," Schröder and Parmar said. ($1 = 0.8571 euro) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 minutes ago
- Yahoo
Spotify set to report earnings as investor optimism meets cautious guidance
Spotify (SPOT) is set to report second quarter earnings on Tuesday before the bell as investors weigh the music streamer's long-term monetization potential against softer near-term guidance. Shares have climbed roughly 120% over the past 12 months — a sharp rebound from record lows of 2022, driven by price hikes, a leaner cost structure, and growing investor enthusiasm around artificial intelligence and advertising. The stock hit a record high of $738.45 earlier this month, though it has since come off those levels ahead of Tuesday's report. Spotify's massive rally has followed a sweeping business overhaul, including layoffs, leadership changes, and a pullback from costly podcast exclusivity. After spending $1 billion to build out its podcast business, the company has since scaled back and narrowed its focus. Still, it remains committed to the medium, paying over $100 million to creators in Q1 alone, including high-profile names like Joe Rogan and Alex Cooper. Here's what Wall Street expects from the upcoming results, according to Bloomberg consensus estimates: Revenue: €4.27 billion versus €3.81 billion in Q2 2024 Adjusted earnings per share: €1.97 versus €1.33 in Q2 2024 Total monthly active users (MAUs): 689 million versus 626 million in Q2 2024 Premium subscribers: 273 million versus 246 million in Q2 2024 Ad-supported users: 428 million versus 393 million in Q2 2024 Gross margin: 31.5%, in line with Spotify's guidance In April, Spotify reported first quarter MAUs of 678 million, narrowly missing consensus estimates. Premium subscribers rose 12% to 268 million, the strongest Q1 increase since 2020. However, its second quarter guidance for MAUs, operating income, and gross margins fell short of analyst expectations. 'The short term may bring some noise," Spotify CEO Daniel Ek said in the earnings release. "But we remain confident in the long-term story, and the direction we're heading in feels clearer than ever." At the company's 2022 Investor Day, Spotify set seemingly lofty objectives that included long-term gross margin targets between 30% and 35%. At the time, the company had been struggling to turn a profit, with its gross margin stuck at around 25%. Those trends began to reverse in 2024 as the company raised prices for the second time in less than a year and introduced a higher-priced audio "bundle" that includes music, podcasts, and audiobooks. It also rolled out an audiobooks-only plan and a music-only streaming tier in an effort to cater to a variety of consumers. Margins hit a record 32.2% in Q4 but slipped to 31.6% in Q1, with the company guiding to 31.5% for Q2 due to ad seasonality and higher content costs. Analysts have cautioned that margin expansion may slow this year following a 500-plus basis point gain in 2024. Additionally, the company's recently renewed deals with several of the largest music labels are expected to slightly weigh on future results. Citi analyst Jason Bazinet maintained a Neutral rating heading into the print, cautioning that third quarter guidance may disappoint after the stock's massive 30% run since Q1. Bazinet did raise his price target from $690 to $780 "to better align with streaming peers." Others on the Street are more optimistic. Oppenheimer analyst Jason Helfstein upgraded Spotify to Outperform ahead of the report and established an $800 price target, citing "many tailwinds ahead." He pointed to a long runway for user growth, improved free-tier monetization, App Store-driven conversion gains, a potential Superfan tier, and stronger free cash flow. Morgan Stanley analyst Ben Swinburne echoed the bullish tone, naming Spotify among his top AI beneficiaries alongside Netflix (NFLX) and YouTube (GOOGL, GOOG). 'Gen AI's long-term impact on the creation, distribution, and monetization of content is likely profound,' Swinburne wrote in a July 10 client note. 'AI and machine learning have left Spotify a leader in music discovery. Gen AI could help it take discovery to new levels and across new content verticals.' He maintained his Overweight rating and raised his base case price target to $850 and bull case to $1,200. Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
