Why consumers are 'still spending' despite economic uncertainty
Bank of America Institute senior economist David Tinsley joins Asking for a Trend to break down the data, highlighting how shoppers may be pulling forward purchases amid tariff uncertainty.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
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Yahoo
39 minutes ago
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Snowflake's AI-Powered Growth Trajectory Remains Strong, Says Analyst
Snowflake (NYSE:SNOW) stock surged on Wednesday, backed by continued AI frenzy, as the company capitalizes on growing demand for its data warehousing and AI-driven products. With a notable 26% year-to-date gain, the firm remains a key player in the AI data cloud market, driven by strong momentum in its core offerings like Cortex AI and Snowpark. This comes as major tech giants, including Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Google parent Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), ramp up investments in AI, setting the stage for further growth in Snowflake's revenue and market of America Securities analyst Brad Sills upgraded the stock from Neutral to Buy and raised the price forecast from $220 to $240. He expressed higher conviction in Snowflake's ability to sustain its growth, citing the durability of its AI-driven momentum. Sills cited strong momentum in its core data warehouse, Cortex AI, and Snowpark developer businesses. He based the upgrade on three proprietary data sources pointing to accelerating demand, noting that despite a 47% year-over-year stock gain, shares still trade at a reasonable 1.5 times calendar 2026E FCF multiple adjusted for growth, compared with large-cap peers at 1.6 times. Sills now projects second-quarter product revenue of $1.064 billion, about 2.5% above Snowflake's $1.038 billion guidance, driven by more substantial web traffic and channel feedback indicating rising demand for AI-related workloads. He also raised earnings estimates, forecasting 2026 EPS of $0.95 (up from $0.93), 2027 EPS of $1.17 (up from $1.14), and 2028 EPS of $1.52 (up from $1.48). A recent survey of Snowflake customers reinforced his bullish stance, with respondents planning to increase spend by 12% over the next 12 months, a sharp acceleration versus the prior year, as adoption of AI workloads and new products expands. Price Action: SNOW stock is trading lower by 0.30% to $192.05 at last check Wednesday. Photo by Tada Images via Shutterstock Latest Ratings for SNOW Date Firm Action From To Mar 2022 Cowen & Co. Maintains Outperform Mar 2022 Rosenblatt Maintains Neutral Mar 2022 Jefferies Maintains Hold View More Analyst Ratings for SNOW View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? SNOWFLAKE (SNOW): Free Stock Analysis Report This article Snowflake's AI-Powered Growth Trajectory Remains Strong, Says Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
CNBC
42 minutes ago
- CNBC
Here's what's keeping home buyers on the sidelines even as mortgage rates hit a 10-month low
Lorene Cowan, 44, thought she would own a home by now. However, in New York City, where Cowan lives and works, home prices have soared beyond reach. "I would love to buy a home, that's the next step," said Cowan, a business and life coach. But "in New York, the entry in became so much more difficult," she said. In fact, New York notched the highest annual gain of all the metropolises in the latest Case-Shiller 20-city composite, up 7.4% in May compared to the prior year. The median listing price of a home in New York City is now more than $829,000, up 3.8% year over year, according to More from Personal Finance:Mortgage rates have made a 'substantial improvement'Fewer young adults reach key life, money milestones'Job hugging' has replaced job-hopping, consultants say In recent years, rising prices have made it harder for first-time home buyers to enter the market nearly nationwide, causing many millennials like Cowan to delay that traditional milestone. With record-high home prices and limited inventory, even a recent drop in mortgage rates has done little to change that affordability equation. "This is holding back first-time home buyers from entering the market," Lawrence Yun, chief economist of the National Association of Realtors, said in a recent statement. Across the country, the median age of first-time homeowners is now 38 years old, an all-time high, according to a 2024 report by the National Association of Realtors. In the 1980s, the typical first-time buyer was in their late 20s. And first-time buyers currently make up just 24% of the market, the lowest share on record, according to NAR. Millennials and Gen Z still believe in the dream of homeownership as a wealth-building opportunity and an achievement, said Matt Vernon, head of consumer lending at Bank of America. "It's just taking longer for them." Higher mortgage rates have also helped keep first-time homebuyers on the sidelines. Although mortgage rates fell to their lowest level since October, the average rate for a 30-year, fixed-rate mortgage is still just above 6.5%, according to Freddie Mac — a big leap from the below-3% levels near the start of the pandemic. "The American consumer has gotten very used to the low-rate environment that has spanned over a decade," said Bank of America's Vernon. According to Bank of America's latest homebuyer insights study, 60% of current homeowners and prospective buyers — a three-year high — said they're unsure whether now is the right time to buy. "Not knowing if rates are going to come down or go up is adding to the uncertainty in the marketplace," Vernon said. Where rates could be headed is key. Fed Chair Jerome Powell said at a news conference in July that the Federal Reserve hadn't yet determined whether it would cut its benchmark rate at its September meeting. However, even if the central bank does cut rates, "it's not a guarantee that mortgage rates are going to fall and make housing more affordable," said Ashley Weeks, a wealth strategist at TD Wealth. "Mortgage rates are more directly tied to the 10-year Treasury, so it's entirely possible mortgage rates remain flat or even increase regardless of where the Fed moves in September," Weeks said. Still, many believe lower rates will come and that will help ease the housing affordability problem. Roughly 75% of prospective homebuyers expect home prices and interest rates to fall and are waiting until then to buy a new home, Bank of America also found in its survey of 2,000 adults in March and April. About one-third, or 32%, of Americans said they would need mortgage rates to fall below 6% to feel comfortable buying this year, according to another recent report by Bankrate. However, more than half — 51% — of those polled said they wouldn't buy this year at any mortgage rate, a whopping 13-percentage point jump from Bankrate's 2024 survey.
Yahoo
an hour ago
- Yahoo
5 years ago, Apple became the first to reach a $2T market cap
It's been five years since Apple's (AAPL) market capitalization hit $2 trillion, when the iPhone maker was the first company to achieve the milestone. Yahoo Finance Tech Editor Dan Howley sits down with Josh Lipton on Asking for a Trend to take a closer look at Apple's ascent and the company's performance in the past five years. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. We're taking a deeper dive into historic milestone anniversary for Apple. Joining me now is Yahoo Finance tech editor, Dan How. Dan. It's been five years since Apple's market cap hit the two trillion dollar mark, making it the first to do so and the most valuable publicly traded company in the world at the time. Since then, others have surpassed the milestone, including Amazon, Google, Microsoft, and, of course, Nvidia. Apple's market cap now sits at roughly $3.4 trillion. Though it's no longer the most valuable company, Microsoft and Nvidia broke through the $4 trillion dollar mark back in July. Apple initially crossed the $2 trillion dollar point in 2020 on the strength of its iPhone sales. The handset, which launched in 2007 under then CEO Steve Jobs was transformational for the company, putting it at the forefront of the still nascent smartphone industry, and it never looked back. Apple's biggest strength continues to be its massive install base. In January 2025, the company said it had more than 2.3 billion active Apple devices. Still, the company has had its share of difficulty. The Justice Department filed an antitrust lawsuit against Apple's business practices. Its much hyped Vision Pro headset has also struggled to gain traction, and the company's AI efforts have also left Wall Street wanting for more. But Apple has a history of slow rolling new technologies before putting its own spin on it and making it a hit. Time will tell what that next hit will be.
