Private Firms Revisit Skipping Wall Street IPO on Path to Market
Unlike a traditional IPO, direct listings don't raise capital and provide existing share holders unfettered liquidity. Two of this year's hottest stocks, Palantir Technologies Inc. and Coinbase Global Inc., used the unconventional path to market — which skips an extensive roadshow and paying expensive underwriting fees to Wall Street — during the Covid-19 heyday.
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Yahoo
8 minutes ago
- Yahoo
Tesla, Alphabet highlight earnings rush as market hovers near record highs: What to know this week
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are both hovering near record highs as escalating tariffs and a growing debate about monetary policy have done little to shake markets. The Nasdaq Composite led the gains last week, rising more than 1.6%. Meanwhile the S&P 500 popped about 0.7% while the Dow Jones Industrial Average (^DJI) was just above the flat line. In the week ahead, 112 S&P 500 companies are set to report quarterly results. Reports from Alphabet (GOOGL, GOOG), Tesla (TSLA), and Chipotle (CMG) will be in focus. Meanwhile, a quiet week of economic data releases will be highlighted by updates on activity in the services and manufacturing sectors as the Federal Reserve enters its blackout period ahead of its July 29-30 policy meeting. Rate debate heats up On Thursday, Fed governor Christopher Waller made his clearest call yet for an interest rate cut in July. During a speech in New York, Waller said the Fed should cut rates in July, adding that the federal funds rate is more than one full percentage point higher than it should be. "With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate," Waller said. However, recent moves in market pricing have shown investors growing less optimistic about rate cuts. Last week, signs of stickiness in consumer inflation combined with a stronger-than-expected June retail sales report and weekly unemployment filings pushed out interest rate cut bets. As of Friday, markets were pricing in just a 5% chance that the Federal Open Market Committee would cut rates in July, per the CME FedWatch Tool. A month ago, markets had priced in closer to a 13% chance. "We expect the committee to arrive at a consensus to cut rates in September as the hawkish case weakens with the job market loosening further and no signs of tariffs spilling over into a broader inflationary trend," Citi chief US economist Andrew Hollenhorst wrote in a note to clients on Friday. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments Earnings scorecard Big banks kicked off the second quarter earnings reporting period with a string of better-than-expected results. Netflix (NFLX) followed those up on Thursday night with an estimate-beating report. Both the streaming giant and the large financial banks said that the US consumer continues to hold strong. On an aggregate level, the S&P 500 is now pacing to report earnings growth of 5.6% compared to the same quarter a year ago, per FactSet data. This is above the 4.8% analysts were expecting just last week. Despite the strong reports, some stocks that had seen massive rallies heading into their reports saw a muted stock reaction in the trading session following their reports. For example, Netflix stock fell nearly 5% on Friday despite raising its full-year revenue guidance. Netflix stock had been up nearly 100% over the past year heading into the release. "An overall 'good' set of results and guide were not good enough for elevated expectations, in our view," William Blair analyst Ralph Schackart wrote in a note titled "Good Quarter, but Tough to Surpass High Expectations." With the broader market at record highs, weak stock reaction after solid earnings reports had been a concern among some Wall Street strategists heading into second quarter earnings. "The challenge is valuation: after a 30% rally off the April lows, the market is trading at 24.7 [trailing twelve-month] earnings, leaving strong results, as Financials demonstrated to start the season, just enough to maintain market altitude while slight disappointments risk material pullbacks," Julian Emanuel, who leads the equity, derivatives, and quantitative strategy team at Evercore ISI, wrote in a note to clients on Friday. Eyes on the 'broadening' Alphabet and Tesla will kick off quarterly releases for the "Magnificent Seven" tech stocks. Once again, that cohort is expected to lead S&P 500 earnings growth this quarter. The Magnificent Seven is expected to have grown earnings by 14.1% compared to the year prior during the second quarter. The other 493 stocks in the index are expected to have seen just 3.4% year-over-year earnings growth. That means the prospect of S&P earnings surprising to the upside largely hinges on Big Tech results. But as the chart below shows, consensus is expecting the other 493 to begin driving a greater share of earnings growth over the next several quarters — a key call among Wall Street strategists hoping for a broadening of the stock market rally that has only come in spurts over the past several years. "It's time for earnings to deliver," Citi strategist Scott Chronert wrote in a note to clients. "Commentary will be key if we hope to see further upside in revisions, and hopefully, some inflections in cyclical sector growth to finally drive broadening. He added, "The issue is the setup. It feels like the market is moving ahead of positive developments. And as we continue to note, sentiment is elevated, and implicit growth expectations are high." Weekly calendar Monday Economic data: Leading index of economic indicators, June (-0.2% expected, -0.1% previously) Earnings: Cleveland-Cliffs (CLF), Domino's Pizza (DPZ), Steel Dynamics (STLD), Verizon (VZ) Tuesday Economic data: Richmond Fed manufacturing index, July (-4 expected, -7 previously) Earnings: Capital One (COF), Coca-Cola (KO), DR Horton (DHI), Enphase Energy (ENPH), GM (GM), Lockheed Martin (LMT), Philip Morris International (PM), SAP (SAP), Texas Instruments (TXN) Wednesday Economic data: MBA mortgage applications, July 18 (-10% prior); Existing home sales month-over-month, June (-0.7% expected, +0.8% prior) Earnings: Alphabet (GOOGL, GOOG), Tesla (TSLA), Chipotle (CMG), Alaska Airlines (ALK), AT&T (T), Fiserv (FI), Freeport-McMoran (FCX), GE Vernova (GEV), General Dynamics (GD), Hasbro (HAS), IBM (IBM), O'Reilly Automotive (ORLY), QuantumScape (QS) Thursday Economic data: Initial jobless claims, week ending July 19 (230,000 expected, 221,000 previously); Chicago Fed national activity index, June (-0.28 previously); S&P Global US manufacturing PMI, July preliminary (52.7 expected, 52.9 previously); S&P Global US services PMI, July preliminary (53.1 expected, 52.9 previously); S&P global US composite PMI, July preliminary (52.9 previously); New home sales, month over month, June (+4.3% expected, -13.7% previously) Earnings: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP) Friday Economic data: Durable goods orders, June preliminary (-10.8% expected, +16.4% prior) Earnings: Charter Communications (CHTR) Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Inicia sesión para acceder a tu portafolio
Yahoo
13 minutes ago
- Yahoo
3 Penny Stocks With Market Caps Over $70M Worth Watching
Over the last 7 days, the market has remained flat, while in the past 12 months it has risen by 14%, with earnings expected to grow by 15% per annum over the next few years. For investors willing to explore beyond established names, penny stocks—often representing smaller or newer companies—can offer intriguing opportunities. Although "penny stocks" might seem like an outdated term, their potential for growth and affordability remains significant, especially when these companies boast strong financials and balance sheet resilience. Top 10 Penny Stocks In The United States Name Share Price Market Cap Financial Health Rating Waterdrop (WDH) $1.70 $524.41M ★★★★★★ CuriosityStream (CURI) $4.46 $249.3M ★★★★★★ WM Technology (MAPS) $0.9714 $159.1M ★★★★★★ Perfect (PERF) $2.37 $234.25M ★★★★★★ Tuniu (TOUR) $0.9326 $100.29M ★★★★★★ Safe Bulkers (SB) $4.13 $414.36M ★★★★☆☆ Cardno (COLD.F) $0.1701 $6.64M ★★★★★★ BAB (BABB) $0.83 $6.01M ★★★★★★ Lifetime Brands (LCUT) $4.68 $99.74M ★★★★★☆ North European Oil Royalty Trust (NRT) $4.96 $43.75M ★★★★★★ Click here to see the full list of 417 stocks from our US Penny Stocks screener. Let's review some notable picks from our screened stocks. Zura Bio Simply Wall St Financial Health Rating: ★★★★★★ Overview: Zura Bio Limited is a clinical-stage biotechnology company focused on developing medicines for immune and inflammatory disorders in the United States, with a market cap of $79.82 million. Operations: No revenue segments have been reported. Market Cap: $79.82M Zura Bio, a clinical-stage biotechnology company with a market cap of US$79.82 million, is currently pre-revenue, highlighting its early development stage. The recent appointment of Eric Hyllengren as CFO brings extensive financial leadership experience from the biotech sector, potentially strengthening Zura's strategic finance and operational execution. Despite having no debt and sufficient cash runway for over three years, the company's shares are highly volatile and it faces challenges such as being dropped from several growth benchmarks while being added to value indices. Its ongoing Phase 2 trial for tibulizumab reflects active efforts in drug development amidst these transitions. Click here to discover the nuances of Zura Bio with our detailed analytical financial health report. Examine Zura Bio's earnings growth report to understand how analysts expect it to perform. Nextdoor Holdings Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public agencies both in the United States and internationally, with a market cap of approximately $696.31 million. Operations: The company generates revenue of $248.31 million from its Internet Information Providers segment. Market Cap: $696.31M Nextdoor Holdings, Inc., with a market cap of US$696.31 million, trades significantly below its estimated fair value and remains debt-free. Despite being unprofitable with a negative return on equity and no forecasted profitability in the next three years, the company maintains sufficient cash runway for over three years without significant shareholder dilution recently. Recent developments include a major redesign of its platform to enhance user engagement through features like Alerts, News, and Faves. Additionally, Nextdoor has expanded advertising into Canada and completed a substantial share buyback program aimed at enhancing shareholder value. Unlock comprehensive insights into our analysis of Nextdoor Holdings stock in this financial health report. Understand Nextdoor Holdings' earnings outlook by examining our growth report. Elite Pharmaceuticals Simply Wall St Financial Health Rating: ★★★★★★ Overview: Elite Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing, manufacturing, and selling oral controlled-release and generic pharmaceuticals, with a market cap of approximately $567.50 million. Operations: The company's revenue is primarily derived from its Abbreviated New Drug Applications (ANDA) segment, which generated $84.04 million. Market Cap: $567.5M Elite Pharmaceuticals, Inc., with a market cap of US$567.50 million, has shown revenue growth to US$84.04 million for the year ended March 31, 2025, despite reporting a net loss of US$4.31 million compared to the previous year's net income. The company maintains financial stability with short-term assets exceeding both short and long-term liabilities and has reduced its debt-to-equity ratio significantly over five years. Although unprofitable, Elite's operating cash flow covers its debt well and it hasn't seen meaningful shareholder dilution recently. However, significant insider selling in recent months could be a concern for potential investors. Dive into the specifics of Elite Pharmaceuticals here with our thorough balance sheet health report. Review our historical performance report to gain insights into Elite Pharmaceuticals' track record. Where To Now? Explore the 417 names from our US Penny Stocks screener here. Searching for a Fresh Perspective? AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ZURA KIND and ELTP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
CNN
35 minutes ago
- CNN
New tax law increases big beyond-the-grave tax break for the wealthy
The US federal estate tax has come a long way since 2000, when the exemption level was set at $675,000. The amount has increased greatly over the past quarter century. Americans who die in 2025 may leave behind tax free to their heirs up to $13.99 million. That exemption level had been set to expire after this year and snap back to a little more than $7 million per person. But that won't happen. Instead, starting in 2026, the exemption level will increase by roughly 7.2% to $15 million and adjust for inflation every year thereafter. That's courtesy of the One Big Beautiful Act that Republicans pushed through in time for President Donald Trump to sign it into law on his self-appointed deadline of July 4. Keep in mind, while not new, the exemption level is effectively doubled for married couples. That's because any unused exemption from the first spouse who dies can be passed to the surviving spouse, and the decedent's estate can pass to the widow or widower tax free. Then, when they die, they will get up to two times the individual exemption level. So that comes to $27.98 million tax free for couples this year and $30 million next year. (It's also worth noting that the estate tax exemption level is the same as the lifetime gift tax exemption level. That means essentially how much you're allowed to exempt from estate taxes at death is reduced by how much you gave away in gifts while you were alive.) The OBBA did not change the federal tax rates imposed on the taxable portion of estates. They're set on a graduated scale, from 18% to 40% with the initial portion above the exemption level taxed at 18%, the next portion at 20% and so on up to 40%, which is well below the 55% top rate that applied in 2001. Raising the exemption level to $15 million a person is likely to further reduce the already low share of estates subject to the estate tax. In 2001, roughly 2.1% of Americans who died left behind taxable estates — and that number dropped to just 0.07% in 2019, according to the Congressional Research Service. That share was expected to rise to 0.2% in 2026, had the exemption level snapped back to roughly $7 million as was scheduled. Despite those very tiny percentages, the Joint Committee on Taxation estimates that the OBBA change will reduce federal revenue by nearly $212 billion over the next decade relative to what the law had called for before OBBA was enacted. Even if your estate or that of a loved one falls well below the federal exemption level, the estate may still be considered taxable in the state where a decedent was living when they died. As of this year, 12 states and the District of Columbia have an estate tax, according to the Tax Foundation. The states are: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington. The exemption levels and the tax rates imposed vary from state to state. In Massachusetts, for example, the exemption level is $2 million, and depending how much more an estate is worth above that threshold, it may be subject to a tax rate between 0.8% and 16%. In Washington, up to $3 million may be exempt from the state estate tax but rates run as high as 35% on the taxable portion of an estate.
