Castlelake to Buy Up to $2.5 Billion of Pagaya Consumer Loans
The firm will buy the loans over a 16-month period through a so-called forward flow agreement, by which investors agree to snap up the loans before they are originated, according to a statement. The deal will help fund the expansion of Pagaya's personal loan program.
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Should You Buy Opendoor Technologies (OPEN) Stock Before Aug. 5? Here's What History Says.
Key Points Opendoor Technologies has recently benefited from meme-stock momentum, and the company is gearing up for its Q2 report on Aug. 5. Opendoor has historically seen high levels of valuation volatility following its earnings reports. Factors outside of sales and earnings performance could continue to play big roles in Opendoor's near-term stock performance. 10 stocks we like better than Opendoor Technologies › Opendoor Technologies (NASDAQ: OPEN) stock has taken investors on a wild ride recently, and it has a big test coming up on the near horizon. The company will report its second-quarter report after the market closes on Aug. 5, and results in the period could spur a huge valuation swing for the real estate services specialist. Opendoor's share price has recently surged thanks to the company becoming a new favorite among meme-stock traders, and it's still up more than 280% over the last month despite pulling back a bit from its recent high. With the company's Q2 report on deck, investors may be wondering whether buying into the stock ahead of earnings is a good move. Take a look at the chart below for a snapshot of the stock's historical performance following its quarterly reports. Opendoor stock has been highly volatile after earnings Opendoor has historically seen a high level of valuation volatility following its earnings reports. While the company has seen some instances in which its quarterly reports helped power huge gains for its stock, its reports have more frequently corresponded with substantial sell-offs. Despite its recent meme-stock surge, the company's share price is still down 12.5% over the last year. Shares are also down roughly 81% over the last five years of trading. Opendoor's recent valuation gains have largely been driven by its newfound meme-stock status and appear to be mostly divorced from any fundamental improvements for the business or its outlook. The gains caused the company to delay the vote on a reverse stock split that could have been needed to keep the stock above the $1 per share level needed to remain listed on the Nasdaq stock exchange, but it remains to be seen if its recent surge will hold. Historically, Opendoor stock has not been a great performer following the company's earnings reports. On the other hand, that doesn't provide a clear indication about how the stock will perform after its next report -- and unpredictability has only been heightened by the company's status as a meme stock. Is Opendoor poised for another big post-earnings valuation move? With a forward price-to-sales (P/S) ratio of roughly 0.3, Opendoor is valued at just 30% of this year's expected sales. The company's still relatively modest forward P/S ratio does potentially open the door for explosive gains and has helped to make its shares attractive to meme-stock traders. With its last quarterly update, Opendoor guided for sales between $1.45 billion and $1.525 billion in the second quarter. The company also guided for a contribution profit between $65 million and $75 million, and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) between $10 million and $20 million. Given recent meme momentum surrounding the stock, it's possible that even relatively small performance beats could power big valuation gains for the company after its Q2 results are published. On the other hand, there are some key factors outside of sales and earnings performance for the quarter that could shape trading in the near term. With Opendoor stock having gotten a big boost from meme-related trading, management may want to seize the opportunity to sell new stock at its current elevated levels in order to raise funds and strengthen the company's balance sheet. Selling new shares could create a substantial source of new capital for the company and be a smart long-term move, but share dilution could burst Opendoor's meme momentum and lead to big sell-offs for the stock. So while there's no way of knowing exactly which way the stock will head after earnings, there are good reasons to expect more big volatility in the near future. Should you invest $1,000 in Opendoor Technologies right now? Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Opendoor 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 $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% 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 29, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Opendoor Technologies (OPEN) Stock Before Aug. 5? 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Should You Buy Sirius XM Stock After Earnings?
Key Points Sirius XM's self-pay subscriber base shrank, leading to a revenue decline in Q2. This business generates lots of free cash flow, which should get a boost as capital expenditures come down. The stock is cheap, leading to a high dividend yield that income investors might find appealing. 10 stocks we like better than Sirius XM › Sirius XM (NASDAQ: SIRI) has received a lot of attention among the investment community. That's because Warren Buffett-led Berkshire Hathaway is a large shareholder, owning 35.4% of the satellite radio operator. Nonetheless, this stock has tanked 64% just in the past five years (as of July 31). Sirius XM just gave investors a fresh financial update. Given that the share price fell 8% the day the news was reported, the market clearly isn't happy with the numbers. Maybe there's an opportunity here for contrarian investors. Should you buy Sirius XM stock after earnings? Growth is hard to come by During the second quarter (ended June 30), Sirius XM's revenue dipped 2% from Q2 2024 to $2.1 billion. That was driven by a declining user base. As of June 30, there were 32.8 million paid Sirius XM subscribers, down by 460,000 over the past year. For what it's worth, Sirius XM doesn't face direct competition from any other satellite radio providers, as this is the only one that's legally allowed in the U.S. And to its benefit, the company generated 76.2% of its revenue from subscriptions in Q2, compared to a 20.2% share from advertising. This is advantageous because the sales coming from subscriptions are recurring in nature and likely more durable, whereas ad revenue can exhibit cyclicality that's influenced by macro forces. There is no denying that Sirius XM will have a hard time registering growth going forward. Consensus analyst estimates call for revenue to decline at a 0.7% annualized rate between 2024 and 2027. The key factor that has had a huge negative impact on the company is the rise of internet-enabled streaming services. Apple, Spotify, and Alphabet's YouTube all give consumers compelling options for audio entertainment. Free cash flow remains robust Even though the company will undoubtedly struggle to grow its subscriber base and revenue going forward, Sirius XM doesn't have any issue when it comes to profitability. Although diluted earnings per share did drop 23% in Q2, the business had a net profit margin of 9.6% for the quarter. Management is focused on cost-cutting efforts. The goal is to get to $200 million in annual run-rate expense reductions. That could help with the bottom line. Sirius XM generated $402 million in free cash flow (FCF) during the second quarter, up 27%. Capital expenditures will continue decreasing in the years ahead. So, management's outlook has FCF totaling $1.5 billion in 2027. That would represent a 30.4% gain from the forecast $1.15 billion for this year. The leadership team has allocated this excess cash to the benefit of investors. Sirius XM repurchased $45 million worth of shares in Q2. Compared to the same period last year, the diluted outstanding share count has shrunk by a notable 5.6%. Appealing to dividend investors Another key part of Sirius XM's capital allocation plan is to pay a dividend, which totaled $92 million in Q2. Because the stock's valuation is dirt cheap, at a price-to-earnings (P/E) ratio of 8.1, the dividend yield sits at a hefty 5.11%. Investors can find comfort knowing that legendary investor Warren Buffett is a big shareholder in this company. He knows how to pick winning investments, so maybe the Oracle of Omaha sees something in Sirius XM. However, I think individual investors are better off avoiding this stock. Yes, the business is consistently profitable. The low P/E ratio is compelling, and the dividend yield can provide a nice income stream. 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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 29, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Spotify Technology. The Motley Fool has a disclosure policy. Should You Buy Sirius XM Stock After Earnings? was originally published by The Motley Fool Sign in to access your portfolio
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Is Schwab U.S. Dividend Equity ETF the Smartest Investment You Can Make Today?
Key Points The Schwab U.S. Dividend Equity ETF tracks an index of dividend stocks. The index it tracks uses a fairly complex screening process. The Schwab U.S. Dividend Equity ETF basically owns a portfolio of high-quality stocks with growing dividends. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Some investors enjoy the investment process, which is why they pick individual stocks. Other investors hate picking stocks and prefer to go with a pooled investment product, like a mutual fund or exchange-traded fund (ETF). If you are in the latter camp and focused on generating income from your investments, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) could be one of the smartest investments you can make today. Keeping it simple, but not too simple For most people, just living a normal life is enough to keep them occupied. Adding in trying to manage a portfolio of individual stocks is just too much to bother with. It's stressful, too! That's why pooled investment products like the Vanguard 500 ETF (NYSEMKT: VOO), which tracks the S&P 500 index, exist. With one purchase, you get a diversified portfolio, and you don't have to worry about keeping tabs on all the stocks in the ETF. If you like to keep things simple, the question really boils down to which ETF or mutual fund fits best with your investment needs. If that need is income, an S&P 500 tracker isn't a great pick right now. A better choice is the Schwab U.S. Dividend Equity ETF. For starters, the Schwab U.S. Dividend Equity ETF offers an attractive 3.8% dividend yield at a time when the S&P 500 index is only offering a yield of roughly 1.2%. Second, the Schwab U.S. Dividend Equity ETF is very cost-effective, with an expense ratio of only 0.06%. That said, the really big reason a dividend-focused investor would want to buy this particular ETF is all about how it picks the 100 stocks that it owns. What does the Schwab U.S. Dividend Equity ETF do? Technically speaking, the Schwab U.S. Dividend Equity ETF doesn't actually pick any stocks. It tracks an index and just buys whatever the index includes. So the real question is: What does the Dow Jones U.S. Dividend 100 Index do? That's the index the ETF mimics. The index, and thus the ETF, only look at companies that have increased their dividends for a decade or more. Real estate investment trusts are removed from consideration. Each company with more than 10 years of dividend increases gets a composite score that includes cash flow to total debt, return on equity, dividend yield, and a company's five-year dividend growth rate. The 100 companies with the highest scores are included in the index, and thus the ETF, using a market cap weighting. The Schwab U.S. Dividend Equity ETF owns high-quality companies with attractive yields that also have a history of increasing their dividends. That is pretty much what every long-term dividend investor is looking for, too. Thus, you get an instant and attractive dividend-focused stock portfolio with one investment, all for the low price of a 0.06% expense ratio. Notice in the chart above that the price of the Schwab U.S. Dividend Equity ETF and the dividend it pays have trended generally higher over time. There will be zigs and zags along the way, of course, but buying good companies with growing dividends has worked very well so far. Should you buy the ETF today? There are nuanced answers to the question of whether or not to buy today, given that the market is trading near all-time highs right now. But history suggests that sticking to a long-term investment plan is going to be more beneficial for most investors than trying to time the market. So if you are an income-focused investor looking for a simple investment, even today, buying the Schwab U.S. Dividend Equity ETF is likely to be a good long-term investment choice. Should you buy stock in Schwab U.S. Dividend Equity ETF right now? Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF 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 $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% 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 29, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Is Schwab U.S. Dividend Equity ETF the Smartest Investment You Can Make Today? was originally published by The Motley Fool Connectez-vous pour accéder à votre portefeuille
