AI's High Cost Pushes Smaller Cybersecurity Companies to Sell
The emergence of AI in recent years as a critical offering for vendors, regardless of the sector in which they operate, is putting pressure on smaller businesses to consider how they will compete with larger companies.
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Yahoo
14 minutes ago
- Yahoo
Chevron Overcomes ExxonMobil to Acquire Hess. Which High-Yield Energy Stock Is the Better Buy Now?
Key Points It's been nearly two years since Chevron announced it would acquire Hess. Guyana is rich with geographically advantaged reserves. ExxonMobil and Chevron are supporting their high dividend yields with cash flow. 10 stocks we like better than Chevron › October 2023 was a big month for oil and gas shake-ups. ExxonMobil (NYSE: XOM) announced an all-stock merger with exploration and production (E&P) company Pioneer Natural Resources. Chevron (NYSE: CVX) followed suit with a similar-size deal to buy E&P Hess. ExxonMobil completed its acquisition in May 2024, but it wasn't until July 18, 2025, that Chevron finally announced it had acquired Hess. Here's why Chevron's deal was delayed, what it means for the investment thesis, and which dividend-paying energy stock is the better buy now. From adversaries to partners The most valuable aspect of Hess' business is its 30% stake in the Stabroek Block in offshore Guyana. The other holders are ExxonMobil, with a 45% interest, and Chinese state-owned CNOOC with a 25% stake. ExxonMobil has been exploring reserves in offshore Guyana since 2008. In 2015, it achieved its first exploration well. Since then, it and the rest of the consortium have ramped up their production -- reaching 500 million barrels of total oil produced from the Stabroek Block in November 2024. The consortium plans to grow production to 1.3 million barrels per day by the end of 2027. For context, ExxonMobil produced 4.55 million barrels of oil equivalent per day in the first quarter of 2025. Needless to say, Guyana has become one of the company's top producing regions. In fact, it identified Guyana as one of its "advantaged assets," which are high-margin investment opportunities. Other advantaged assets include the company's onshore exposure in the Permian Basin in Texas and its liquefied natural gas (LNG) portfolio. ExxonMobil plans to have 60% of its production come from the Permian, Guyana, and LNG by 2030. Given that it had the largest stake in the Stabroek Block, it was in ExxonMobil's best interest to prevent arguably its largest competitor from joining the consortium. It engaged in a lengthy dispute with Chevron, contending that the deal triggered a change-of-control clause. The ruling went in favor of Chevron, and the deal moved forward. Although ExxonMobil would probably have preferred to partner with a pure-play E&P like Hess rather than a global integrated major like Chevron, the change of ownership won't directly harm ExxonMobil. And Chevron's backing could help the consortium develop the block even faster. As for Chevron, the company gains access to one of the most valuable offshore plays in the world -- rich in reserves with decades of development potential at a low cost of production. The cash cow playbook The oil and gas industry experienced a significant downturn in 2014 and 2015. It took years to recover, and then the industry entered yet another downturn in 2020 due to the pandemic. Investors were not happy, and ExxonMobil's and Chevron's stock prices hit multiyear lows, and the companies reported billions in losses that year. To regain investor confidence, ExxonMobil and Chevron have focused on improving the quality of their production assets. A combination of technological advancements, efficiency improvements, and doubling down on regions with geographic advantages has enabled both companies to reduce their break-even levels, allowing them to generate positive free cash flow even at relatively low oil and gas prices. This advantage aids in forecasting multiyear capital allocation strategies -- including operating expenses, capital expenditures, buybacks, and dividends -- as well as expanding low-carbon investments. ExxonMobil and Chevron have become much stronger and balanced companies over the years. The former's corporate plan through 2030 forecasts a break-even Brent crude price per barrel of just $30 by 2030 and $165 billion in cumulative surplus operating cash flow even if Brent prices average just $65 per barrel. Chevron has an even lower breakeven than ExxonMobil, estimated in the low $30 Brent range by consulting firm Wood Mackenzie. The integration of Hess and development of reserves in offshore Guyana should help Chevron grow its production while maintaining a low cost of production. Two quality dividend stocks at attractive valuations Having a low cost of production allows ExxonMobil to support its growing dividends at lower oil and gas prices, generating substantial excess cash flow even at mid-cycle prices to repurchase stock and invest in new projects. ExxonMobil has increased its dividend for 42 consecutive years and yields 3.6%, while Chevron has a 38-year streak and yields 4.5%. With both companies expecting steady long-term earnings growth, ExxonMobil's 14.6 price-to-earnings ratio (P/E) and Chevron's 17.4 P/E seem like bargains. Add it all up, and ExxonMobil and Chevron are both great buys now for value investors looking to boost their passive income. Do the experts think Chevron is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Chevron make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member 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!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Chevron Overcomes ExxonMobil to Acquire Hess. Which High-Yield Energy Stock Is the Better Buy Now? was originally published by The Motley Fool
Yahoo
14 minutes ago
- Yahoo
Joby Aviation Stock Soars to an All-Time High: My Prediction for What Comes Next
Key Points Joby Aviation stock is soaring on optimism for its electric air taxi network. The company is aiming to ramp up manufacturing and finish its FAA certification. The stock trades at an expensive price versus any reasonable expectations for future revenue. 10 stocks we like better than Joby Aviation › Nobody enjoys sitting in traffic. And yet, the average American will sit in over two weeks of traffic each year. One company believes it has paved a way to help alleviate the traffic pressure in cities around the globe: Joby Aviation (NYSE: JOBY). It is manufacturing and testing electric air taxis, which can go point-to-point over cities more quietly than traditional helicopters, saving people time and frustration. Joby's air taxis are not operational yet, but the stock recently burst through to an all-time high of $17.50 a share on investor enthusiasm for its manufacturing progress and partnerships with large transportation players. It now has a market cap of $14.8 billion even though it generates zero dollars in revenue. Here's my prediction for what comes next with Joby Aviation stock. Betting big on air taxis Utilizing electric motor technology and innovations in aerodynamics, Joby Aviation has created a vertical takeoff vehicle that is quiet enough to leave from residential neighborhoods. It is manned by a pilot, can fit four riders, and has a top speed of 200 miles per hour. The company is planning to set up point-to-point networks in major cities such as New York, where customers will be able to hop from Manhattan directly to the airport, shaving off time that would have been spent sitting in traffic. The company is not officially operating its network yet, but it's working with the Federal Aviation Administration (FAA) in the final stages of testing its aircraft. Multiple pilots have flown the Joby vehicle already, with its manufacturing facilities producing its fifth aircraft for pilots last quarter. Management recently announced an expansion of its factory in California, with plans to eventually produce 24 air taxis annually from this location. Multiple transportation companies have seen the promise in Joby Aviation. Toyota Motors has invested a total of $894 million in the company and is working directly with the company on manufacturing processes. Delta Air Lines is an investor, while Uber Technologies is a partner that will eventually add Joby flights to its ride-sharing application. Joby needs to get a lot of customer demand in order to get a return on its air taxi spending, which will require full operating schedules and high ticket prices. This is possible if its partners such as Uber and Delta drive customers to the upcoming service. The company is not just looking to expand in New York. It is working to add air taxis to Los Angeles, Dubai, and even Japan and the United Kingdom. Most major cities in the world have traffic issues and could see some (especially wealthier) citizens utilize this upcoming air taxi network. Aggressive spending and cash burn There is a lot of promise with Joby's air taxis, but the growth is all theoretical today. Joby does not generate any revenue, is still in the FAA certification process, and has manufactured only a few air taxis to date. Still, it is aggressively burning money on research, manufacturing, and overhead costs as it works to build up its vertically integrated factory network in the United States. In the first quarter of 2025, it spent $134 million on research and development. Over the last 12 months, free cash flow was negative $489 million. The company does have $813 million in cash and a $500 million commitment from Toyota, but this only gives it two to three years of cash burn at its current rate before it will need to raise more funds. My prediction for what comes next with Joby Aviation stock I like the idea of air taxi networks. As long as they can be operated safely, it is a path forward to help alleviate traffic on major highways in metro areas, and it looks like something people will pay up for in order to save time on the way to the airport or other societal hubs. My problem comes from Joby Aviation's market cap of $14.8 billion, making the stock wildly overvalued for a pre-revenue start-up. At its current manufacturing run-rate of 24 air taxis a year that could grow in the years to come, Joby Aviation may have 200 vehicles in operation by 2030. Assuming 20 flights per vehicle per day at $500 each split among the four passengers, that is $730 million in annual revenue for Joby Aviation. It is currently spending close to $500 million a year before generating any sales. There will be variable costs when its taxi network starts operating, along with more money spent to build each vehicle. It is unlikely that Joby Aviation will generate a profit by 2030 even if it can scale up its air taxi routes and charge an average of $500 per flight (which is more than the average round-trip airline ticket for comparable routes). Air taxis are an interesting idea, but that doesn't mean Joby Aviation is a buy with the stock trading at a market cap of $14.8 billion. I predict that pain is ahead for Joby Aviation shareholders for the rest of this decade, even if the company remains on track with its air taxi network buildout. Should you buy stock in Joby Aviation right now? Before you buy stock in Joby Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Joby Aviation 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 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy. Joby Aviation Stock Soars to an All-Time High: My Prediction for What Comes Next 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
Forbes
15 minutes ago
- Forbes
The Hidden Leadership Threat Draining Workplace Productivity
Leadership has an invisible tax many overlook. If speed is a premium currency in modern business, friction is the hidden tax. It doesn't appear on your balance sheet or get highlighted on the org chart. Yet, it compounds daily through missed deadlines, disengaged employees, decision bottlenecks, various leadership issues, and a tech stack that overwhelms more than it empowers. Recent research from Dayforce, based on a survey of 6,178 workers and leaders across six countries, reveals the pervasiveness of workplace friction. Eighty-eight percent of respondents experienced at least one primary source of friction. And 78% said completing tasks takes too long due to overly complex and unnecessary processes. Perhaps the most revealing (and to some surprising) insight: executives reported the highest levels of friction. The very individuals tasked with solving complexity are often the most affected by it. This discovery underscores a deeper truth: friction isn't merely an operational issue. It's also a leadership issue. When friction accumulates at the top, it signals structural misalignments, communication breakdowns, and strategic overload. Left unchecked, friction quietly erodes organizational speed, morale, and growth. And with that said, the following four categories of friction offer a diagnostic window into the health of an organization's leadership infrastructure. The Four Types Of Friction And What They Signal About Leadership Friction rarely stems from a single source of failure. Like most organizational breakdowns (and life in general), it builds gradually through systemic, strategic, and behavioral misalignment. Dayforce categorizes friction into four main types. Each one reveals a leadership pattern beneath the surface. At first glance, staffing friction might suggest a headcount problem. But more often, it's a systems problem. It manifests itself through burnout, absenteeism, coverage gaps, and struggles with talent management. The root cause isn't always a lack of people. It's often a lack of planning. According to the report, nearly two-thirds of employees said there's often no one available to cover when a colleague is out sick or on leave. More than half reported experiencing burnout, 41% stated they were unable to complete all their work, and 37% reported being unable to perform at their best. Just as championship teams need bench depth, so do organizations, as a lack of it signals operational fragility. And while 93% of executives report using contingent workers, many still struggle to manage them effectively. Talent is critical, but so is anticipating volatility and designing a workforce that can absorb it. Many companies preach adaptability while operating with rigid systems, cultures, and talent structures. Friction sets in when employees are boxed into roles they've outgrown or left behind on the skills curve. Dayforce data shows that 85% of executives believe their organization's development efforts add value. However, there's a disconnect as only 54% of workers agree. And just 43% of organizations report having a structured process for upskilling or reskilling their employees. This disconnect signals a missed opportunity. As roles evolve faster than job descriptions, younger generations increasingly prioritize learning, growth, and mentorship. Agility requires not only an organizational mindset shift but also infrastructural support. Organizations that fail to operationalize internal mobility risk stagnation, talent drain, and growth. Change is constant, but experiencing large amounts of friction during change doesn't have to be. The study found that 61% of executives believe their employees resist change. Yet workers are 20% less likely to say the same. That gap is revealing, as leaders often misinterpret friction as resistance when it's frequently a reaction to poor communication or ineffective execution. Only 39% of respondents reported that their organization handles change rollouts effectively. Less than half of those surveyed rated their organization's internal communication as effective, especially during transitions. For leaders, clear direction, thoughtful implementation, and responsive feedback loops will mitigate resistance from taking root. Technology is designed to improve productivity and improve people's quality of life. Increasingly, in the workplace, it has become a source of drag. Outdated platforms, siloed systems, and overwhelming technology stacks are slowing work rather than accelerating it. Sixty-nine percent of respondents said their organization uses too many platforms. And 66% said new technology often decreases efficiency rather than improves it. This reflects a deeper pattern that leaders must be keen on: rapid tech adoption without sufficient integration or training is wasteful. Every tool added without a clear strategy adds complexity. Leaders must audit their digital ecosystem not only for capabilities, but also for clarity, usability, and a tangible return on investment. Friction Is An Invisible Threat To Leadership Like elevated blood pressure, friction can often go unnoticed for a substantial period before causing damage that individuals can't ignore. Dayforce found that low-friction organizations share key traits: fewer workforce planning issues, stronger internal mobility, and more transparent communication. Those low-friction organizations were more efficient and strongly aligned. In today's environment of hyper-speed disruptions, high competition, and constant distraction, leadership isn't just about setting vision. It's about removing drag through reducing friction across all levels. When friction is high, even the best strategies stall. But when it's low, momentum becomes inevitable.
