JPMorgan Warns of Stocks Complacency as Earnings Outlook Dims
Stocks have bounced back from April's slump at an even faster pace than after the Covid pandemic, sending the MSCI World Index and many regional benchmarks to record highs. At the same time, consensus data shows downgrades outpacing upgrades sharply in global earnings revisions, the JPMorgan team led by Khuram Chaudhry said.
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16 minutes ago
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Should You Buy XRP (Ripple) While It's Under $5?
Key Points XRP's value has surged nearly 480% in just 12 months. Deregulation, ETFs, and general crypto enthusiasm are driving the coin's value higher. XRP is priced for perfection, and it's looking increasingly like a speculative gamble. 10 stocks we like better than XRP › Cryptocurrency XRP (CRYPTO: XRP) has gained lots of attention from investors lately, resulting in a 480% increase over the past year. Whenever any type of investment rises that quickly, it's worth evaluating to see if it's worth owning. Unlike some cryptocurrencies, XRP (sometimes called Ripple) has real-world applications through its blockchain, which can act as a bridge currency in foreign transactions, saving both time and money compared to traditional financial transactions. But XRP's rapid value increase calls into question whether the crypto is overvalued right now, and if it's being driven higher simply because of investor sentiment. While XRP isn't necessarily a meme coin, here are three reasons why it may be best not to buy it right now. 1. It's very volatile If you're interested in owning cryptocurrencies, then it's likely that you're OK with some volatility. Any type of investment will have price swings, of course, but cryptocurrencies are more prone to make big movements on little to no news. While XRP isn't unique in its volatility, I think it's significant enough to dissuade some investors from owning it. Consider that back in February, XRP's value fell about 30% in just a five-week period. XRP regained its footing temporarily, but then fell 16% in just one week following the announcement of President Donald Trump's tariffs in early April. Those are just two examples of XRP's tendency toward volatility, both occurring within weeks of each other. Of course, the coin's value has subsequently rallied again, but if you're not used to investment value shifts to this degree and they might cause you undue stress or prompt you to take action without thinking, then it's probably best to stay away. 2. It's fairly speculative It's important to point out that some of the price movements XRP has experienced are tied to concrete reasons. For example, some of XRP's price gains over the past year have come from investors getting excited about crypto exchange-traded funds (ETFs) focused on XRP and the Trump administration taking a more open approach toward cryptocurrencies. But while crypto ETFs can signal more legitimacy for digital coins and open them up to more investors, there's still a lot of speculating involved. Some analysts have estimated that XRP's price could surge to $25 because of the launch of the ETFs -- only to see the value then fall by 90%. While that's just a prediction, it's a good representation of how speculative the price of XRP can be. What's more, XRP's value jumped more than 70% in the past month after the House of Representatives passed the Genius Act and the Digital Markets Clarity Act in the House, both of which clarify regulations for crypto and stablecoins. While it's good news for the industry, a 70% surge in XRP's price is likely unwarranted. Huge value movements over a short period, whether for stocks or crypto, often signal that investors are pushing up an investment solely based on how they feel. 3. It's already richly valued XRP's massive run lately means this crypto is priced for perfection. Its price already includes optimism around crypto deregulation, the launch of XRP ETFs, real-world usage of its blockchain, and a general optimism that's fueling a surge in crypto prices. In short, XRP is already on a huge run based on a handful of tangible reasons, and any more gains from here are likely purely built on the whims of crypto investors. Unlike stocks, cryptocurrencies don't have cash flow or earnings to judge their value by, and based on XRP's 480% jump over the past year, it looks like the coin's price is now detached from the already speculative metrics used to judge crypto values. Could XRP still go higher? Of course. Many cryptocurrencies have shown that they can continue to climb even without being tied to any concrete metrics. But there's no getting around the fact that buying XRP means you're paying a premium. And with optimism for XRP sky-high, any unmet expectations from the crypto could cause a substantial sell-off. Should you invest $1,000 in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP 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 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy. Should You Buy XRP (Ripple) While It's Under $5? was originally published by The Motley Fool
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Analysts turn heads with new Alphabet stock price target after earnings
Analysts turn heads with new Alphabet stock price target after earnings originally appeared on TheStreet. Alphabet's solid earnings have investors feeling more confident in Google again. The company posted earnings of $2.31 per share on revenue of $96.43 billion, both ahead of Wall Street analysts' forecast. Search brought in $54.19 billion, while total ad revenue climbed to $71.34 billion, up 10% from last year. YouTube ads came in at $9.8 billion, slightly above expectations. Cloud was a standout, with revenue jumping 32% to $13.62 billion. Alphabet recently struck a deal with OpenAI to power ChatGPT using Google Cloud. Alphabet also raised its 2025 capital spending forecast to $85 billion, up from $75 billion in February, citing 'strong and growing demand for our Cloud products and services.' CFO Anat Ashkenazi said spending will likely increase again in 2026. The upbeat report helped push Alphabet stock () closer to its all-time high. Shares closed at $194.08 on July 25, up more than 13% over the past month. That mirrors a broader bounce in tech stocks as optimism grows around AI and cloud. So far this year, however, Alphabet shares are still trailing the market, up just 1.91% compared to the S&P 500's 8.62% gain. Analysts raise Alphabet's stock price targets Alphabet's latest earnings beat has prompted a wave of price target hikes from Wall Street analysts, though opinions split on how much upside is left. Bank of America analyst Justin Post raised his price target on Alphabet to $217 from $210 while maintaining a buy rating, following the company's better-than-expected second-quarter analyst highlighted that both Cloud and Search outperformed expectations, calling them 'a bright spot' in what he described as 'another strong' quarter that suggests AI use is growing the market. "Another stable qtr for Search results increases our confidence in the AI transition and should ease concerns on a potential revenue reset," the analyst wrote. "We acknowledge growing users of OpenAI but think Street could be underappreciating potential AI driven upside for Search (more use, better ads) and Cloud," he added. JPMorgan raised its price target on Alphabet to $232 from $200 and reiterated an overweight rating, according to The firm believes Alphabet's AI-driven demand and accelerating backlog make Google Cloud a "bigger driver of the bull case going forward." Other firms also lifted their targets following the earnings beat, though with a more cautious tone. Stifel raised its price target on Alphabet to $222 from $218, citing solid performance across Search, YouTube, and Cloud. However, the firm doesn't expect much follow-through in shares due to lingering concerns about Alphabet's long-term AI position and the DOJ overhang. UBS bumped its target to $202 from $192, calling the quarter Alphabet's 'cleanest' in a while, with strong fundamentals supporting earnings growth. Still, the firm kept a neutral rating, pointing to pressure on the stock's valuation from unresolved regulatory risks and rising competition in Search. Google still faces pressure Despite Alphabet's strong earnings, concerns around regulatory and competitive threats still exist. The company is currently facing a major antitrust lawsuit from the U.S. Department of Justice. In early August 2024, Judge Amit Mehta of the U.S. District Court for the District of Columbia accused Google of illegally maintaining a search engine monopoly by using exclusive agreements with device makers like Apple () .The DOJ is now pursuing remedies that include forced divestitures of Chrome and Android. The case is still pending, but could lead to structural changes or costly settlements if the DOJ prevails. Mehta said he aims to rule by August, Reuters reported. Beyond regulatory headwinds, Alphabet is also under mounting pressure from emerging AI competitors. More Wall Street Analysts: Veteran analyst drops surprise call on Tesla ahead of earnings Best Buy analyst, focused on earnings growth, reworks stock price target Microsoft analysts reboot stock price targets ahead of Q4 earnings As generative AI reshapes how users find information, traditional search is being challenged by AI tools like ChatGPT. These platforms offer more conversational responses, potentially reducing the need for users to 'Google.' There's also a risk that trade tensions could curb advertiser spending on Google's platforms, potentially impacting revenue growth. But when asked about the outlook, Alphabet's Chief Business Officer Philipp Schindler said it was too soon to make any calls. 'I think it's really too early to comment on anything happening in the second half of the year,' Schindler turn heads with new Alphabet stock price target after earnings first appeared on TheStreet on Jul 26, 2025 This story was originally reported by TheStreet on Jul 26, 2025, where it first appeared.
Yahoo
an hour ago
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A More Affordable EV Won't Save Tesla
Key Points Tesla fell 5% after hours on its second-quarter earnings report. Some investors saw production of a new, more affordable vehicle as a positive sign. The company launched its robotaxi network in June. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) issued another disappointing earnings report on Tuesday. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service The leading electric vehicle (EV) maker finished the after-hours session down 5%, but the sell-off could have been worse. The company reported a decline in both sales and profit. Revenue was down 12% to $22.5 billion, and adjusted net income was down 23% to $1.39 billion, or $0.40 per share. Those numbers actually topped a muted revenue estimate at $22.13 billion, while the bottom-line consensus matched the results at $0.40. Tesla's problems have been well-documented at this point. CEO Elon Musk's turn in the political spotlight seemed to backfire after his relationship with President Donald Trump went sour. Due in part to Musk's involvement with politics, the brand has become unappealing in the eyes of some potential buyers, leading to a 16% decline in automotive revenue. Sales have plunged in Europe, and the company is losing ground to more affordable Chinese EVs. One seemingly bright spot Musk has a long history of overcoming weak results by telling investors what they want to hear on the earnings call, including making big promises about its robotaxi network and other initiatives in autonomy like its Optimus robot. He seemed to do that again on the latest earnings call, with some comments about the more affordable model he has long promised, which some have dubbed the Tesla Model 2. Musk said that the company started production of the vehicle in June and is ramping up production now. He added: "The goal with those products was not to negatively impact revenue or gross margin, but just to make a car that everyone loves and wants at a more affordable price." Musk has long argued that price competition was one of the biggest headwinds facing the company, but the brand crisis seems to have overshadowed that. By introducing its own lower-priced model, Tesla may end up cannibalizing its more expensive vehicles. Customers may be choosing between a more expensive Tesla and that lower-priced model, rather than another brand. The new vehicle is just a cheaper Model Y, rather than a brand-new vehicle model. The robotaxi initiative The biggest reason Tesla has maintained its premium valuation even as sales and profits have tumbled is that investors believe that Tesla's robotaxi network could go mainstream, fulfilling Musk's long-term vision. However, the robotaxi has gotten off to only a modest start after launching in June, and it seemed to get less attention on Tuesday's earnings call, though Musk reminded the audience: "As you can tell, autonomy is the story." Management said that robotaxis in Austin, Texas have topped 7,000 miles with no significant safety interventions. The company is aiming to launch the robotaxi in the San Francisco Bay Area next. Tesla needs growth in its core business Investors have bid up Tesla stock on hopes for its initiatives in robotaxis and more affordable vehicles, but the company needs to return to growth in selling EVs for the stock to be successful over the long term. The decline in EV sales is a reflection of a backlash against Tesla's brand. The company is also expected to struggle over the next few quarters due to the elimination of the EV tax credit and a change in other federal policies that supported EV adoption. The company also faces a $300 million effect from tariffs. Tesla could get back on track, especially if the robotaxi network takes off. But the current valuation in the stock leaves little room for upside if it does, especially given the persistent challenges in EV sales. While a more affordable vehicle might be a step in the right direction, it seems more likely to undercut demand for Tesla's more expensive vehicles, rather than competing with alternatives. Should you buy stock in Tesla right now? The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. 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 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. A More Affordable EV Won't Save Tesla 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
