Bloomberg Daybreak: Europe 07/04/2025
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TechCrunch
32 minutes ago
- TechCrunch
EU says it will continue rolling out AI legislation on schedule
The European Union on Friday said it will stick to its timeline for implementing its landmark AI legislation, in response to a concerted effort by over a hundred tech companies to delay the bloc's AI rules, Reuters reported. Tech companies from across the world, including giants like Alphabet, Meta, Mistral AI and ASML have been urging the European Commission to delay rolling out the AI Act, saying it will hurt Europe's chances to compete in the fast-evolving AI arena. 'I've seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI Act. Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause,' the report cited European Commission spokesperson Thomas Regnier as saying. A risk-based regulation for applications of artificial intelligence, the AI Act bans a handful of 'unacceptable risk' use cases outright, such as cognitive behavioral manipulation or social scoring. It also defines a set of 'high-risk' uses, such as biometrics and facial recognition, or AI used in domains like education and employment. App developers will need to register their systems and meet risk and quality management obligations to gain access to the EU market. Another category of AI apps, such as chatbots, are considered 'limited risk' and subject to lighter transparency obligations. The EU started rolling out the AI Act last year in a staggered fashion, with the full rules coming into force by mid-2026.
Yahoo
34 minutes ago
- Yahoo
3 Reasons to Avoid APPN and 1 Stock to Buy Instead
Over the past six months, Appian's shares (currently trading at $30.11) have posted a disappointing 13.6% loss, well below the S&P 500's 5% gain. This might have investors contemplating their next move. Is there a buying opportunity in Appian, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even with the cheaper entry price, we're swiping left on Appian for now. Here are three reasons why you should be careful with APPN and a stock we'd rather own. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Appian grew its sales at a 17.1% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Appian's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a competitive market and must continue investing to grow. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Appian has shown weak cash profitability over the last year, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 4.8%, subpar for a software business. Appian isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 3.2× forward price-to-sales (or $30.11 per share). This valuation multiple is fair, but we don't have much faith in the company. We're fairly confident there are better investments elsewhere. We'd suggest looking at one of our all-time favorite software stocks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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
Yahoo
34 minutes ago
- Yahoo
Marex Group plc (MRX) is in the Counter Cyclical Basket of Night Watch Investment Management
Night Watch Investment Management, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund LP appreciated by 23.31% net of fees, and YTD, its performance stood at 20.71%. The portfolio demonstrated resilience in the quarter, despite volatility in March and April. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, Night Watch Investment Management highlighted stocks such as Marex Group plc (NASDAQ:MRX). Marex Group plc (NASDAQ:MRX) provides a financial services platform to clients in the energy, commodities, and financial markets. The one-month return of Marex Group plc (NASDAQ:MRX) was -8.29%, and its shares gained 102.50% of their value over the last 52 weeks. On July 3, 2025, Marex Group plc (NASDAQ:MRX) stock closed at $38.92 per share, with a market capitalization of $2.832 billion. Night Watch Investment Management stated the following regarding Marex Group plc (NASDAQ:MRX) in its Q2 2025 investor letter: "Since inception of the fund in January 2024, we have always sought to allocate to several counter-cyclical companies. The idea is that even in the event of a recession, part of our portfolio would still perform well. Currently, our countercyclical basket is predominantly made up of Marex Group plc (NASDAQ:MRX), a company we first acquired in May of 2024 at $19, versus $39 today. A close up of a laptop screen with a user engaging in the platform's features. Marex Group plc (NASDAQ:MRX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Marex Group plc (NASDAQ:MRX) at the end of the first quarter, which was 26 in the previous quarter. While we acknowledge the potential of Marex Group plc (NASDAQ:MRX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
