10 things to watch in the stock market Friday including Salesforce and Buffett stocks
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Yahoo
15 minutes ago
- Yahoo
These 2 FTSE stocks could benefit from the growth of AI and the demand for new data centres
In my opinion, there are two FTSE stocks — Segro (LSE:SGRO) and Tritax Big Box REIT (LSE:BBOX) — that look set to gain from the anticipated explosion in the demand for data centres. According to McKinsey & Company, by 2030, $7trn will need to be spent globally on building the physical infrastructure necessary to house the servers and other hardware required to run artificial intelligence (AI) applications. Closer to home, Barbour ABI has found nearly 100 live UK planning applications for such properties. And reflecting their energy intensity, Mordor Intelligence reckons the capacity of domestic data centres will grow from 2,590 MW in 2025 to 4,750 MW by 2030. That's equivalent to an average annual increase of 12.9%. The country's number one As the UK's largest real estate investment trust (REIT), Segro already has a significant foothold in the market. It owns Slough Trading Estate, Europe's largest business park and home to the continent's biggest cluster of data centres. It also leases other warehouses to companies operating in the sector. Its tenants include Equinix and Digital Realty Trust, two of the industry's largest players. But its share price has disappointed recently — it's down 28% since August 2024. And the commercial property market can be volatile. However, its balance sheet is strong — its loan-to-value was 31% at 30 June. Also, 73% of its lettable area is located in seven countries in continental Europe, which provides it with a certain degree of diversification. Another option Tritax Big Box REIT, the UK's largest owner of logistics facilities, now has two data centres in its portfolio and has announced plans to build a new one near Heathrow airport. It anticipates spending £200m on similar properties in 2025 and £100m-£200m annually thereafter. It estimates the annual rental yield will be 9%-11%. Not surprisingly, the trust views the sector as one of its key growth drivers. As part of its expansion plans, Tritax has made an offer to buy Warehouse REIT. If the deal is successful, it will create a combined £7.4bn property portfolio. The takeover target has 409 tenants at 60 sites in England and Scotland. Immediate cost savings of £5.5m a year are expected. The proposed merger reflects a trend in the investment trust industry where stock market valuations are often lower than the value of the underlying assets. This apparent lack of appreciation from investors has frustrated directors and shareholders alike. Tritax presently trades at a 28% discount. Warehouse is valued at 11% less than its book value. Good for income One of the principal attractions of REITs is that to qualify for certain tax exemptions they must return at least 90% of rental profits to shareholders. This means they usually offer generous yields. For example, based on dividends paid over the past 12 months, Tritax is presently (15 August) offering a return of 5.6%. For comparison, Segro's is 4.6%. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. However, the trust's dividend could come under pressure if interest rates remain at historically high levels. And possible vacancies remain an ever-present threat. But like Segro, I think Tritax has exposure to a sector that's going to see significant growth over the next decade or so. Those that agree with me could consider adding either of them to their portfolios. The post These 2 FTSE stocks could benefit from the growth of AI and the demand for new data centres appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Beard has no position in any of the shares mentioned. The Motley Fool UK has recommended Segro Plc, Tritax Big Box REIT Plc, and Warehouse REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
20 minutes ago
- Yahoo
Why Texas Pacific Land Corporation Zoomed 4% Higher Today
Key Points The company will list its shares on a new stock exchange. This is NYSE Texas, smack dab on its home turf. 10 stocks we like better than Texas Pacific Land › On the second-to-last trading day of the week, investors cheered the latest move made by Texas Pacific Land Corporation (NYSE: TPL). The storied company's stock is going to anchor a new regional equities exchange, and market players cheered the expansion. They bid up Texas Pacific's shares by 4%, a figure well higher than the barely over 0% posted by the S&P 500 index that day. It's bigger in... In what feels like a suitable and symbolic development, Texas Pacific will list some of its equity on the newly formed NYSE Texas exchange. As the name implies, this is a branch of the New York Stock Exchange located in the large state. It offers solely electronic trading, as opposed to the traditional variety. In doing so, Texas Pacific is a founding member of the new bourse. The company said its "primary" stock listing would remain on the main NYSE exchange, and the NYSE Texas-listed shares would bear the same ticker symbol (TPL). In its press release trumpeting the news, the company quoted CEO Tyler Glover as saying that "With the entirety of our employees and virtually all our assets located in Texas, we maintain strong business and community ties here." Glover pointed out that Texas Pacific is the longest-listed and Texas-headquartered company on the NYSE. Positive expansion It's important to note that Texas Pacific's listing on the new exchange, no matter how appropriate, probably won't change the fundamentals of its business much, if at all. It will, however, raise its profile in its home state, and perhaps rope in new investors who might not be familiar with its operations (despite its longevity). This feels like a small but clear win for the company. Should you buy stock in Texas Pacific Land right now? Before you buy stock in Texas Pacific Land, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Texas Pacific Land 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 $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% 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 August 13, 2025 Eric Volkman 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. Why Texas Pacific Land Corporation Zoomed 4% Higher Today was originally published by The Motley Fool Sign in to access your portfolio
Business Insider
25 minutes ago
- Business Insider
CoreWeave (CRWV) Insiders Sell over $1B Worth of Shares as IPO Lock-Up Period Ends
CoreWeave (CRWV) insiders began selling shares today after the AI data center company's IPO lock-up period expired. As a result, this triggered more than $1 billion in block trades that were organized by Morgan Stanley (MS), JPMorgan Chase (JPM), and Goldman Sachs (GS). Among those selling was board director Jack Cogen, who sold nearly $300 million worth of stock. Interestingly, even though CoreWeave's stock had plunged by 35% in the previous two days due to disappointing second-quarter results, shares stabilized around the $100 level to close slightly up on the day. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The spike in trading activity happened because about 84% of CoreWeave's Class A shares became available for the first time since its IPO in March. According to the Financial Times, which cited sources close to the matter, banks scrambled on Thursday evening to arrange block trades as large as six to eight million shares. For context, block trades like these allow large investors to sell shares quietly, often at a discount, without overwhelming the market. Nevertheless, while CoreWeave has benefited from the AI infrastructure boom, concerns about its financial health are growing. Indeed, the company reported rising losses and surging operating expenses, which hit $1.2 billion in Q2 – almost four times higher than a year ago. On top of that, CoreWeave is facing investor pushback over its proposed $9 billion acquisition of Core Scientific (CORZ), as some shareholders of the target company have threatened to vote against it unless better terms are offered. It also doesn't help that, as of Thursday, 46% of CoreWeave's tradable shares were being shorted, thereby indicating that many investors are betting that the stock will continue to fall. Is CRWV a Good Stock to Buy? Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on six Buys, 16 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $115.29 per share implies 15.3% upside potential.
