Trade war: Is August escalation on - or will Trump chicken out?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Famed market bear Albert Edwards warns of an 'everything bubble' in US stocks and home prices that could soon pop
Albert Edwards warns of a potential US stock and housing market bubble. Rising interest rates and Japan's fiscal concerns could trigger market corrections, he said. Edwards publishes his notes under Société Générale's "alternative view." Société Générale's Albert Edwards, famed for calling the dot-com bubble leading up to the 2000 crash, is again warning investors of a potentially painful plunge ahead. In his latest note to clients this week, Edwards said US stocks and home prices are in an "everything bubble" that he thinks could soon pop. Stock valuations are indeed steep. The Shiller cyclically-adjusted price-to-earnings ratio sits at 38, one of its highest levels ever, and both the trailing and forward 12-month PE ratios of the S&P 500 are historically high. To Edwards, this doesn't sit well with the fact that long-term interest rates have been on the rise. Rising long-end government bond yields tend to weigh on stock-market valuations as investors can find attractive returns without taking on the high level of risk in the stock market. Yet US stocks have seen a robust rally in recent years, gaining 78% since October 2022 lows. The market's high valuations have kept future estimated equity-market yields low. When stocks are more cheaply valued, they can expect higher future returns, and vice versa. "It is notable how the US equity market has been able to sustain nose-bleed high valuations despite longer bond yields grinding higher," Edwards wrote. "I don't expect it'll be able to ignore it much longer." On housing, Edwards said that the home price-to-income ratio in the US has been virtually flat over the last few years following the pandemic bump, while the ratio has dropped in countries like the UK and France. "The US is the only market in which house price/income ratios have NOT de-rated since 2022 as bond yields have risen. Is the US housing market also exceptional relative to Europe? No, it's nonsense and, in time, investors will come to claim they knew that all along," Edwards wrote. As for what could cause the potential bubbles in US stocks and home prices to burst, Edwards said to watch Japan. "In the wake of the ruling party coalition losing its Upper House majority, concerns in the bond market about the risks of further fiscal easing and high inflation are growing," he wrote. Higher inflation in Japan could mean higher interest rates and a further unwinding of the Japanese yen carry trade, in which foreign investors borrowed cheaply in yen and converted to dollars to buy higher-yielding US assets. In 2024, the Bank of Japan unexpectedly hiked rates, roiling global markets as investors liquidated assets they had bought with borrowed yen. In May, Edwards warned rising interest rates in Japan could cause a "global financial Armageddon." Edwards publishes his notes, which regularly express a bearish outlook, under Société Générale's "alternative view," separate from the bank's house view. "A lot of clients who totally disagree with me like to read my stuff," he told Business Insider in May. "It's a reality check." Read the original article on Business Insider Sign in to access your portfolio
Yahoo
23 minutes ago
- Yahoo
Netflix (NFLX) Premieres K-Content Thriller 'Trigger' In Global Release
During the last quarter, "Trigger," a series by K Wave Media and a Netflix worldwide release, highlighted the company's expanding global content strategy. Alongside an increase in Q2 sales and net income, Netflix announced positive earnings and revised its full-year earnings guidance, indicating robust operational growth. The company's strategic alliances, such as its collaboration with Telefilms Ltd. and opening Netflix House locations, likely reinforced investor confidence. While Netflix's 7% price increase outpaced the market's modest 1% rise last week, these developments would have naturally supported the broader positive market trend, contributing to its performance. Buy, Hold or Sell Netflix? View our complete analysis and fair value estimate and you decide. We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent news surrounding Netflix's (NFLX) "Trigger" series and strategic collaborations like those with Telefilms Ltd. may further bolster its aggressive global expansion and content strategy. This aligns well with the broader narrative of enhancing monetization through proprietary ad tech and diversified content investment. While short-term share increases of 7% illustrate positive market response, the potential impact on revenue and earnings forecasts could be significant as these initiatives enhance user engagement and international market penetration. In the context of total shareholder returns, Netflix's shares have delivered a substantial 424.9% return over the past three years. Over the past year, Netflix outperformed the US market, which returned 17.2%, and the US Entertainment industry, which returned 69.7%, demonstrating resilient long-term investor returns. With a current share price of US$1180.49 and a price target of US$1345.32, Netflix is trading at approximately 13.96% below its target, highlighting room for potential appreciation if the company meets or exceeds analyst expectations. Click here and access our complete financial health analysis report to understand the dynamics of Netflix. 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 NFLX. 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@
Yahoo
23 minutes ago
- Yahoo
Cathie Wood Just Loaded Up on This High-Flying Crypto Stock. Should You Follow Her Lead?
Key Points Cathie Wood recently added Bitmine Immersion Technologies to three of her Ark Invest ETFs. Bitmine is following in the footsteps of Strategy and other companies that have added cryptocurrencies to their balance sheets. Bitmine's core business is Bitcoin mining, but Wood considers it a "digital asset treasury" company. 10 stocks we like better than Bitmine Immersion Technologies › Cathie Wood is one of Wall Street's most closely followed investment managers. Wood founded Ark Investment Management in 2014 with a focus on disruptive innovation, and has endeared herself to investors with her transparent, social-media-friendly approach to portfolio management. A longtime crypto bull, Wood recently started a position in Bitmine Immersion Technologies (NYSEMKT: BMNR). Ark's ETFs purchased 4.4 million shares on July 21. Bitmine chugged 2% higher the following day, but that's a drop in the bucket compared to the stock's 435% gain since it debuted on the public markets in June. Is now the time to follow Wood and get in on this stock. All in on Ethereum Bitmine's core business is mining Bitcoin. The company claims that its immersion-cooled mining technology is more cost-effective and environmentally friendly than conventional Bitcoin mining systems. Bitmine also offers mining-as-a-service and Bitcoin treasury consulting. For its fiscal 2024, which ended Aug. 31, 2024, Bitmine reported $3.3 million in revenue, a 413% year-over-year increase. The lion's share of its revenue came from mining. While the company reported a net loss of $3.29 million, its net cash used in operating activities was a loss of $28,753 -- a dramatic improvement over the $809,715 loss in 2023. On June 5, Bitmine stock began trading on the New York Stock Exchange with little fanfare, closing at $7.75 per share. Shortly after, the company began buying Bitcoin, following in the footsteps of MicroStrategy (doing business as Strategy) and other companies that have added the cryptocurrency to their balance sheets. Here's where things take an interesting turn. On June 30, Bitmine said it was pivoting to Ethereum as its primary financial reserve. The company announced a $250 million private placement of common stock to bankroll its first Ethereum purchase, and named market strategist and outspoken crypto bull Tom Lee as chairman of the board. The share price skyrocketed 696% in one trading day. The stock has been on a roller-coaster ride since then, peaking at $161 a share in early July before settling into a tighter trading range. As of the closing bell on July 24, Bitmine stock was trading at around $42 a share. Meanwhile, Ethereum is up nearly 139% over the past three months. How it's using Cathie Wood's money As of July 17, Bitmine Immersion Technologies held 300,657 Ethereum tokens -- 60,000 of which were via in-the-money options -- worth more than $1 billion. The company's publicly stated goal is to acquire and stake 5% of the overall Ethereum supply. Bitmine has said it pivoted to Ethereum because of its utility as a facilitator of smart contracts, stablecoin payments, and decentralized finance transactions. Stablecoins, in particular, are seeing mainstream adoption by consumers, merchants, and financial services providers, and Lee has called them "the ChatGPT of crypto." "Acquiring $1 billion of ETH is a clear signal of our conviction in Ethereum's long-term value," Bitmine CEO Jonathan Bates said in a press release. Bitmine said it plans to use the net proceeds from Wood's investment to purchase more Ethereum. Is Bitmine a buy? Wood isn't the only high-profile investor to start a position in Bitmine. Earlier this month, tech mogul Peter Thiel disclosed a 9.1% stake in Bitmine through his venture capital funds. While Bitmine's core business is Bitcoin mining, stockpiling Ethereum has completely changed its value proposition for investors. You won't find any pure-play Bitcoin miners in Wood's flagship Ark Innovation ETF. That's because Wood considers Bitmine a "digital asset treasury" company. "These companies could be the next-gen asset managers in the on-chain capital markets age," Wood asserted in a post on X. Bitmine reported $1.2 million in revenue for its first quarter of fiscal 2025, which ended on Nov. 30, 2024. That's a 135% year-over-year increase. The company reported a net loss attributable to common shareholders of $3.9 million, compared to $930,000 in the year-ago quarter. The increase was mainly due to an accounting adjustment related to preferred stock, according to the company. The price-to-sales (P/S) ratio can be a useful metric when comparing the valuations of companies that aren't profitable. With a P/S ratio of 16 on a trailing-12-month basis, Bitmine is trading at a premium compared to other crypto miners. While Bitmine's top line is growing at an impressive clip, it's clear to me that investors are piling in because of its massive stockpile of Ethereum, not its underlying fundamentals. Ultimately, this is an unprofitable company that's selling shares of common stock to buy Ethereum. With $1 billion in Ethereum on its balance sheet, I would expect Bitmine's fortunes to be closely tied to the price action in Ethereum -- more so than Bitmine's fundamentals. And that raises the question: As an investor, why not just buy Ethereum directly? Should you invest $1,000 in Bitmine Immersion Technologies right now? Before you buy stock in Bitmine Immersion Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitmine Immersion Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Josh Cable has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. Cathie Wood Just Loaded Up on This High-Flying Crypto Stock. Should You Follow Her Lead? was originally published by The Motley Fool 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
