U.S. court decisions on Trump's tariffs shows volatility of situation: Champagne
Finance Minister François-Philippe Champagne tells Power & Politics two U.S. court decisions that blocked, then reinstated, President Donald Trump's broadest tariffs show Canadians how 'volatile' the trade situation is.
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CTV News
33 minutes ago
- CTV News
Eglinton LRT on track to open by September, Doug Ford says
"Out of Service" signs are shown on the Eglinton Crosstown LRT in Toronto on Friday, May 5, 2023. THE CANADIAN PRESS/Frank Gunn Premier Doug Ford says that he expects that the long-delayed Eglinton Crosstown LRT could be open as soon as September, with plans to hand the line over to the TTC for final testing 'in the next couple of weeks.' Ford made the comment to reporters at Queen's Park on Tuesday after he was asked about the rumored September timeline. City Coun. Josh Matlow told CP24 back in April that he believed the LRT would open by September, though Metrolinx has never confirmed the timeline. 'Yes, that is what I am hearing,' Ford said of the September target date on Tuesday. 'I am hearing some positive things about Eglinton track and hopefully we will be handing it over in the next couple weeks to the TTC and they will be doing their trial runs. Thank God, that is all I can say about that and that project.' Construction on the Eglinton Crosstown began in 2011 and was initially slated to be completed in 2020 but it has been plagued by numerous delays and is now at least $1 billion overbudget. Metrolinx has previously said that the public would be given a three-month notice before the line opens and that the company was pushing towards a 2025 opening date. The LRT spans a 19-kilometre route from Mount Dennis in the west to Kennedy Road in the east. Driver training has been ongoing on the route since last September. 'I will have to get back to you on the exact date but I understand it will be handed over to the TTC in the next couple weeks,' Ford said Tuesday.
Globe and Mail
34 minutes ago
- Globe and Mail
Robinhood Markets Hits 52-Week High: Should You Buy the Stock Now?
Robinhood Markets, Inc. HOOD touched a 52-week high of $68.20 during yesterday's trading session. Over the past three months, the stock has gained 47.1%, outperforming the industry, the Zacks Finance Sector, the S&P 500 index and its close peers — The Charles Schwab Corporation SCHW and LPL Financial Holdings Inc. LPLA. Does the HOOD stock have more upside left despite hitting a 52-week high? Let us find out. Factors Likely to Drive Robinhood Stock Volatility Amid Tariff Policy Concerns to Drive Revenues: On Feb. 13, President Donald Trump announced a plan for 'reciprocal' tariffs to reduce the fiscal trade deficit. This move brought concerns regarding potential tariff wars, leading to higher market volatility. Though the situation has pacified to some extent in light of a pause on tariffs as countries negotiate, the uncertainty concerns continue to linger surrounding the impact of tariff policies. This is expected to contribute to the increase in Robinhood's transaction-based revenues, due to heightened volatility and increased market participation. Robinhood's total net revenues have witnessed a compound annual growth rate (CAGR) of 60.4% over the past five years (2019-2024), with transaction-based revenues recording a CAGR of 57.3%. The momentum continued for both metrics in the first quarter of 2025. Given the company's focus on transaction-based revenues combined with the commission-free model and ongoing volatility in the markets, its revenues are likely to move higher. Further, the Trump administration has been favorable to cryptocurrency as regulators have been easing norms and regulations for firms to venture into digital assets. Moreover, in March 2025, Trump signed an executive order to establish a strategic crypto reserve. This will likely support Robinhood's cryptocurrency revenues as new investors will be attracted to cryptocurrencies to boost their returns and leverage the benefit of diversification as an asset class as well. In the first three months of 2025, the company's cryptocurrency revenues were $252 million, constituting 27.2% of total net revenues. Over five years (2019-2024), the metric witnessed a CAGR of 140.3%. Robinhood acquired Bitstamp yesterday. Bitstamp's core spot exchange, which features more than 85 tradable assets, coupled with its popularity in Europe and Asia, will significantly enhance Robinhood's crypto offerings. Also, in May 2025, Robinhood agreed to acquire WonderFi, a leader in digital asset products and services in Canada. This move aims to capitalize on rising crypto demand among Canada's investors. Currently, Robinhood offers trading in more than 30 cryptocurrencies on its app. Business Diversification Efforts: Robinhood became extremely popular among younger generations, riding on the meme stock wave in early 2021. Nonetheless, since its IPO in July 2021, the company has taken several steps to evolve from merely being a brokerage firm to a more mature and diversified entity, striving to become a one-stop shop for building generational wealth. Last week, the company rolled out Robinhood Legend, a browser-based desktop trading platform, in the United Kingdom, after launching the same in the United States in October 2024. In March 2025, Robinhood launched a prediction markets hub. Further, in the same month, the company launched Robinhood Strategies, Robinhood Banking and Robinhood Cortex, a suite of new features, to boost the wealth management offerings for its Robinhood Gold members. In January 2025, the company launched Futures, while in December 2024, it introduced the Tax Lots feature for investors. In February 2025, Robinhood acquired TradePMR to expand into the registered investment advisers custody market. In July 2024, Robinhood acquired Pluto Capital Inc. With the integration of the latter's advanced capabilities, the former is set to revolutionize the investment experience for its users. Additionally, the company launched its first-ever credit card in March 2024. Thus, rapid product innovations through vertical integration will likely expand HOOD's client base, enabling greater operating leverage and paving the way for sustained profitability. Similarly, in April 2025, Schwab introduced Alternative Investments Select, a new alternative investments platform, available to eligible retail clients having more than $5 million in household assets with the platform. HOOD Rewards Shareholders: In April, Robinhood announced an additional share buyback plan worth $500 million. This plan supplemented the previous authorization of $1 billion announced in May 2024, extending the total authorization to $1.5 billion. While the plan does not have an expiration date, the company expects to buy back shares within roughly two years. As of April 30, 2025, roughly $921 million worth of authorization remained available for repurchase. Robinhood is on solid ground, with significant cash reserves. As of March 31, 2025, it reported cash and cash equivalents of $4.4 billion. Bullish Analyst Sentiments Over the past month, the Zacks Consensus Estimate for earnings of $1.22 and $1.47 per share for 2025 and 2026, respectively, moved 1.7% and 3.5% upward. The projected figures imply growth of 11.9% for 2025 and 20.5% for 2026. Estimate Revision Trend Robinhood's Regulatory Headwinds Robinhood operates in a highly regulated industry and falls under the scrutiny of numerous authorities. This exposes the company to regulatory risks, resulting in hefty fines and restrictions that may affect its profitability. In March 2025, Robinhood's units agreed to pay $26 million to settle Financial Industry Regulatory Authority allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers. In January 2025, the company agreed to pay a $45 million fine for violating more than 10 securities law provisions. Previously, in September 2024, the company faced a $3.9 million penalty to settle crypto withdrawal failures. In 2023, the company faced defeat in proceedings at the Massachusetts Supreme Judicial Court regarding the supervision of product features and marketing strategies and paid a fine of $7.5 million. These hefty fines have made investors cautious about Robinhood's operations and the sufficient internal control procedures. Likewise, in January 2025, LPL Financial agreed to pay a civil penalty of $18 million and implement improvements to its anti-money laundering ('AML') policies and procedures. The Securities and Exchange Commission accused LPL Financial of numerous failures regarding its AML program. Parting Thoughts on HOOD Stock Solid revenue growth, organic and inorganic expansion initiatives to diversify the business and a strong balance sheet will aid Robinhood's financials. Moreover, tariff policy concerns and easier regulations for digital asset businesses complement the company's efforts to improve its top line through product diversification. However, HOOD's regulatory headwinds and rising operating expenses are major concerns. Further, foraying into the banking business amid intense competition keeps investors cautious about the company's success. Hence, investors should keep an eye on how Robinhood confronts the challenging backdrop. HOOD stock is a cautious bet for investors now. Those who already own it can hold for now for a robust long-term return. HOOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up The Charles Schwab Corporation (SCHW): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Globe and Mail
34 minutes ago
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Wall Street Says Applied Digital Stock Could Gain Over 82% in a Year
Applied Digital (APLD) has been on a solid run, with its stock soaring 88.9% in just the past month. This impressive growth reflects the company's strategic positioning in rapidly growing industries such as high-performance computing (HPC) and artificial intelligence (AI). Specializing in next-generation data centers and infrastructure, Applied Digital is poised to capitalize on the rising demand for AI, machine learning (ML), blockchain, and HPC capabilities. Its infrastructure is designed to support the heavy workloads demanded by AI and ML. This alignment with high-growth industries has played a key role in driving the recent momentum behind the stock. Furthermore, much of the latest excitement surrounding Applied Digital is due to its recently announced 15-year lease agreement with CoreWeave (CRWV), an AI infrastructure company. The deal significantly strengthens Applied Digital's revenue visibility and long-term growth prospects. Following the announcement, shares of APLD jumped 48.46% on June 2. Given this positive development and long-term secular trends, analysts remain optimistic about Applied Digital's future. Applied Digital's strong financials and continued growth in its high-potential segments will support further upside in its share price. The highest price target for APLD stock is $18, reflecting 82% upside from current price levels. Applied Digital Unlocks $7 Billion Revenue Potential Applied Digital has landed a solid deal with CoreWeave that could generate approximately $7 billion in lease revenue over the next 15 years. The agreement centers around Applied Digital's Ellendale, North Dakota, data center campus, where the company will deliver 250 megawatts (MW) of IT load to support CoreWeave's HPC and AI infrastructure. This long-term lease arrangement adds a reliable revenue stream, strengthening Applied Digital's position as the key infrastructure provider for next-generation digital workloads. Notably, the Ellendale campus is designed specifically for next-generation workloads with large-scale power capacity, efficient deployment capabilities, and access to low-cost power. The first phase of the project, a 100 MW facility, is on track to go live in the fourth quarter of 2025. A second building, capable of delivering another 150 MW, is under construction and expected to be operational by mid-2026. Plans for a third facility, which could bring an additional 150 MW online by 2027, are already underway, with CoreWeave holding an option to secure that capacity as demand grows. As AI continues to grow at an unprecedented pace, such long-term leases put Applied Digital in a solid position to capitalize on the surging demand for digital infrastructure. What's Next for Applied Digital (APLD) Stock? Applied Digital's prospects remain solid as the company remains well-positioned in an industry that's experiencing explosive growth. With the ongoing push for digital transformation, demand for data center infrastructure is rapidly expanding. Companies across every sector are accelerating their digital adoption, and this trend is pushing the need for high-performance computing and hosting capabilities to new heights. This trend positions companies like Applied Digital favorably to benefit from sustained industry tailwinds. Furthermore, Applied Digital's partnership with Macquarie Asset Management is a strategic move that will help fund and support the company's next-generation high-performance data centers. Additionally, financing from Sumitomo Mitsui Bank Corporation provides Applied Digital with further firepower to expand its capacity, enabling it to capitalize on the growing demand for digital infrastructure solutions. A notable part of APLD's business supports cryptocurrency mining, a sector that continues to show resilience and solid growth potential. With increasing institutional interest in cryptocurrencies and an improving regulatory climate in the U.S., the adoption of these assets will rise, which will fuel demand for Applied Digital's services in this area. Thanks to these growth drivers, Wall Street analysts are bullish about Applied Digital's prospects. Moreover, the Street high price target, issued by Northland Securities analyst Michael Grondahl, suggests significant upside potential from current levels. However, investors should take caution. The stock is not cheap. Its price-sales ratio sits at 10.2x, which is on the higher side. Moreover, the company is carrying a significant debt load. As of Feb. 28, 2025, Applied Digital held $261.2 million in cash, but its total debt stood at $689.1 million. Conclusion Applied Digital is well-positioned to benefit from significant growth trends in digital infrastructure and crypto. However, investors should consider the company's high valuation and sizable debt before investing in APLD stock.
