Kilburg: My word of the day is rebalance
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Business Upturn
2 minutes ago
- Business Upturn
S&P Global says US tariffs will not derail India's long-term growth prospects
By Aditya Bhagchandani Published on August 14, 2025, 14:51 IST S&P Global Ratings has stated that even if the United States imposes a 50% tariff on Indian imports, the impact on the country's long-term growth prospects will be minimal. The agency noted that while the US remains India's largest trading partner, the scale of exposure is relatively small in GDP terms. According to S&P, India's exports to the US account for around 2% of GDP. Once sectoral exemptions—particularly for pharmaceuticals and consumer electronics—are factored in, the share of exports that could be subjected to tariffs drops to 1.2% of GDP. This, the agency said, could lead to a short-term hit to growth but would not have a lasting effect on the country's economic trajectory. S&P further highlighted that despite potential revenue losses and slower gains from trade, India is on track to meet its FY26 fiscal deficit target. The government's commitment to fiscal consolidation, coupled with robust domestic demand and infrastructure spending, is expected to help offset any external shocks. The agency maintained its view that India's economic fundamentals—driven by strong investment momentum, policy stability, and resilient domestic consumption—remain intact, ensuring that the country's growth outlook stays positive in the medium to long term. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Forbes
25 minutes ago
- Forbes
Robinhood Stock To $230?
Is it possible for Robinhood Markets (NASDAQ:HOOD) stock to increase from its current value of $115 to $230 in the years to come? We believe it is a possibility. Take into account that the stock was priced around $55 in mid-May 2025 and has already surged by nearly 2x in less than 3 months. When analyzing the valuations, HOOD stock is trading at approximately 60x adjusted trailing earnings. While this may seem pricey initially, the company has shown remarkable earnings momentum, a rapidly growing customer base, and is making significant strides in the booming cryptocurrency sector. In the scenario that follows, we utilize HOOD's revenues, margins, and valuation multiples to illustrate a potential trajectory towards a stock price exceeding $200 in the near future. Big Revenue Potential HOOD's revenues have significantly increased from $280 million in 2019 to approximately $2.9 billion in 2024, reflecting an annual growth rate of nearly 60%. Growth has averaged around 30% over the past three years. It appears that this momentum can be sustained. Consensus forecasts indicate about 35% revenue growth for 2025, bringing it to around $4 billion. Moreover, there is a real opportunity for HOOD to maintain this average annual growth rate of close to 35% for the next few years, driven by ongoing customer growth, substantial potential in the crypto sector, and wealth management solutions. In light of this, revenues could rise from a projected $4 billion in FY'25 to roughly $7.3 billion by FY'27, representing an increase exceeding 82%. Here's a detailed look at the factors that could drive this growth. Additionally, if you seek potential gains with less volatility compared to individual stocks, the Trefis High Quality portfolio provides an alternative – having outperformed the S&P 500 and yielding returns of over 91% since its inception. Expanding and Monetizing a Larger Customer Base: Robinhood has proven to be nimble and innovative, with a solid grasp of young retail investors, resulting in robust user growth. Funded accounts surged by 2.3 million last quarter to total 26.5 million, while platform assets nearly doubled year-over-year, reaching $279 billion. This expanding asset base serves as a revenue driver, promoting increased trading activities, higher interest income on idle cash, and greater potential for advisory fees. Deepening Push Into Crypto: Crypto revenues skyrocketed 98% last quarter to $160 million, just shy of marking the sixth consecutive quarter of triple-digit growth. The company is also growing its operations through acquisitions. Recently, it finalized its acquisition of global cryptocurrency exchange operator Bitstamp, which grants it access to over 50 active licenses and registrations worldwide, while also bolstering its enterprise initiatives with improved lending and staking infrastructure and offering specialized products tailored for hedge funds, fintechs, and registered investment advisors. A more favorable regulatory environment and increasing political backing, including from the Trump administration, have further bolstered investor enthusiasm for the stock. Catching Them Young: Robinhood's user demographic is predominantly made up of millennials and younger investors. A substantial wealth transfer is anticipated to occur from older generations to millennials and Gen Z over the next two decades, amounting to tens of trillions of dollars. By acquiring these users early, Robinhood positions itself to take advantage as their assets and investment needs grow over time. As millennials progress, their financial requirements will diversify. In response, Robinhood has started to offer products beyond simple trading – such as retirement accounts, high-yield cash balances, and wealth management tools – to retain users as their financial standing improves. While this may be a long-term strategy for the stock, it holds significant importance. Operating Leverage Will Drive Margins This substantial revenue growth combined with the fact that HOOD's adjusted net margins (net income, or profits after all expenses and taxes, expressed as a percentage of revenues) are on an upward path – increasing from negative levels in FY'21 to about 35% in FY'24. This growth has been propelled by notable gains in high-margin revenue channels such as payment for order flow and margin interest. A considerable increase in transaction volumes, especially in crypto, has also contributed positively to the company. Robinhood's business model exhibits significant operational leverage since costs do not necessarily have to increase in proportion to revenues. Margins could potentially climb further to approximately 40% given these trends. Now, by merging 40% adjusted net margins with around $7.3 billion in revenue, we would arrive at earnings of approximately $2.9 billion. This represents nearly a 2.9x increase from figures recorded in 2024. Strong Results Mean A Smaller Contraction In P/E Multiples Now, if earnings grow 2.9x, the price-to-earnings multiple will contract by 2.9x, from approximately 21x, provided the stock price remains constant. However, that's precisely what HOOD investors are banking on not occurring. If earnings do indeed expand 2.9x in the next few years, instead of the P/E ratio decreasing from around 60x to about 21x, a scenario in which the PE metric holds at approximately 40x seems more plausible, as robust growth and enhanced margins instill greater confidence about HOOD's future in investors. This scenario would make the growth of HOOD stock to levels near $230 within the next few years a tangible possibility. So what about the timeline for this high-return scenario? While our example indicates a time frame of around two years, in reality, the distinction between two years and three years won't be significant, as long as HOOD continues on this revenue expansion path with margins sustaining; the stock price could respond in a similar manner. While HOOD stock appears encouraging, investing in a single stock can carry risks. Conversely, the Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has a history of comfortably outperforming the S&P 500 over the last four-year span. Why is that? Collectively, HQ Portfolio stocks have provided superior returns with lower risk compared to the benchmark index; a smoother ride, as demonstrated in HQ Portfolio performance metrics.
New York Times
32 minutes ago
- New York Times
Big Tech's A.I. Boom Is Reordering the U.S. Power Grid
The annual meeting of state utility regulators is typically a humdrum affair of dry speeches and panel discussions. But in November, the scene at the Marriott in Anaheim, Calif., had a bit more flash. The conference's top sponsors included the nation's biggest tech companies — Amazon, Microsoft and Google. Their executives sat on panels, and the companies' branding was plastered on product booths and at networking events. Even the lanyards around attendees' necks were stamped with Google's colorful logo. Just a few years ago, tech companies were minor players in energy, making investments in solar and wind farms to rein in their growing carbon footprints and placate customers concerned about climate change. But now, they are changing the face of the U.S. power industry and blurring the line between energy consumer and energy producer. They have morphed into some of energy's most dominant players. They have set up subsidiaries that invest in power generation and sell electricity. Much of the energy they produce is bought by utilities and then delivered to homes and businesses, including the tech companies themselves. Their operations and investments dwarf those of many traditional utilities. But the tech industry's all-out artificial intelligence push is fueling soaring demand for electricity to run data centers that dot the landscape in Virginia, Ohio and other states. Those large rectangular buildings packed with servers consumed more than 4 percent of the nation's electricity in 2023, and government analysts estimate that will increase to as much as 12 percent in just three years. That's partly because computers training and running A.I. systems consume far more energy than machines that stream Netflix or TikTok. Electricity is essential to their success. Andy Jassy, Amazon's chief executive, recently told investors that the company could have had higher sales if it had more data centers. 'The single biggest constraint,' he said, 'is power.' Tech Companies' Electricity Sales Have Surged Subsidiaries of major tech companies such as Amazon and Google have sold more than $2.7 billion on the wholesale electricity market in the past decade. Source: Federal Energy Regulatory Commission Jeremy Singer-Vine Want all of The Times? Subscribe.
