Alibaba Movie Unit's Pivot, Rebrand Bring $2 Billion Value Gain
Since its May 19 earnings report, which highlighted a pivot toward IP licensing and live events, the company's shares have roughly doubled, making it the top performer on Hong Kong's Hang Seng Composite Index and adding $2 billion in market valuation. Several analysts have since upgraded their outlooks.
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3 top REITs to consider for long-term passive income
Recently, owning real estate investment trusts (REITs) has largely been a challenging experience for investors. The sector has kept delivering for those individuals chasing a second income, broadly speaking. This reflects partly REIT rules requiring the lion's share (90%) of annual rental profits to be distributed to shareholders. However, the share prices of these property stocks have weakened following recent central bank actions. Higher interest rates in 2023 and 2024 hammered these companies' net asset values (NAVs) and raised their borrowing costs. Time to invest? Yet, with interest rates falling, now could be a good time to consider buying shares in these dividend-focused investment trusts. Here are three to consider for a long-term passive income. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Top marks Unite Group (LSE:UTG) is a leading player in the purpose-built student accommodation (PBSA) segment. Not only is this a defensive part of the property market. It's one where rents are booming as tenant numbers rapidly rise. Like-for-like income here jumped 7% in the six months to June, latest financials showed. This reflected both robust occupancy and rental growth. Earnings are naturally sensitive to university enrolment levels in the towns where Unite operates. However, its wide geographic footprint helps reduce this threat (it currently operates in 23 UK cities). Furthermore, the FTSE 100 stock's planned £723m takeover of Empiric Student Property will (if successful) further diversify its portfolio and boost its earnings prospects, too. Safety first Self-storage trusts like Safestore (LSE:SAFE) have enormous growth potential, driven by trends like: A growing urban population, resulting in smaller living spaces Individuals moving home more frequently A rising culture of 'hoarding,' where people accumulate possessions People decluttering and relocate items from the home The growth of online shopping, raising storage demand from e-retailers Safestore is one of two REITs operating in this area. I like this particular one because its 200 stores span the UK, Spain, France, The Netherlands, and Belgium, meaning it carries less geographic risk than companies operating in one country. While the long-term picture is bright, be mindful that rental growth and occupancy rates can disappoint during economic slowdowns. Home comforts Rents on residential properties have slowed considerably of late. But a steady exodus of buy-to-let investors means the outlook for companies like the PRS REIT (LSE:PRSR) remains encouraging. This trust holds a portfolio of roughly 5,500 homes. It's also focused on the family homes segment where shortages are especially acute. Consequently, like-for-like rents on stabilised sites rose 9.6% over the 12 months to June, greater than the broader rentals market. According to the Royal Institution of Chartered Surveyors (RICS), the number of new properties entering the market last month fell at its sharpest pace since the Covid-19 pandemic. This is a positive omen for PRS REIT over the short term and beyond. A potential change in rental regulations might dampen the trust's future returns. But so far, conditions in this highly stable sector remain favourable. The post 3 top REITs to consider for long-term passive income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Safestore Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
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The Most Important Thing for Advance Auto Parts Investors to Watch in 2025
Key Points Advanced Auto Part's restructuring has returned the company to profitability, and it should start generating cash in the second half. The stock was recently sold off due to higher interest rate payments impacting profitability. Investors should look for progress in the company's efforts to improve its inventory in stores and how quickly it sells it compared to paying its suppliers. 10 stocks we like better than Advance Auto Parts › It's fair to say the latest earnings report from Advance Auto Parts (NYSE: AAP) was not well received by the market -- the stock was initially sold off by a mid-teens percentage. However, I think there was more good than bad in the actual numbers. That's not to say anyone should get overly excited, because this is still an underperforming company. Still, there are some positives here, and there are some things for the stock's bulls to build on. The investment case for Advance Auto Parts The case for buying the stock is well known, and if not, it should be, because the company has been around for over a decade. Simply put, the auto parts retailer's operational metrics are so woefully short of its peers, principally AutoZone and O'Reilly Automotive, that all it will take is some restructuring to get the company somewhere close to its peers' margins, cash flow, and earnings, and a substantial amount of value will be generated for investors. That was the gist of the case when activist investor Starboard Value got involved a decade ago (only to exit in 2021), having failed mainly in helping engineer any kind of significant closing of the gap with AutoZone and O'Reilly. In case you are wondering what I'm referring to, here are a few charts to demonstrate. 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Simply put, the company has lagged its peers in converting inventory into cash. It outflows cash by paying its suppliers quicker than it generates cash from the parts it sells to retail customers. What happened in the recent results The recent results were in line with what management had pre-announced on July 24, except for one crucial detail. Management lowered its guidance for full-year adjusted diluted EPS from continuing operations from $1.50-$2.50 to a new range of $1.20-$2.20 "to account for higher net interest expense related to its recent senior notes offering," according to the earnings release. The company recently took on $1.95 billion in debt to redeem existing debt maturing in 2026 and provide it with cash to support its ongoing restructuring. The good news from the results On a more positive note, management's restructuring resulted in a return to profitability in the quarter. Furthermore, its full-year guidance for an outflow of $85 million to $25 million implies FCF generation of $116 million to $176 million in the second half, given there was a $201 million outflow in the first six months. These are positive steps, but as management noted on the earnings call, "we recognize that we are still in the early phases of our three-year turnaround plan." Moreover, turning back to the fundamental issue of selling inventory down quicker than paying suppliers, Advance Auto Parts continues to lag its peers. These charts show how many days it takes the company to sell its inventory compared to the days it takes to pay suppliers -- a low number is better. Investors should monitor this metric closely, as Advance Auto Parts will not be able to demonstrate improvement in its efforts to improve operational performance until it lowers this metric. Do the experts think Advance Auto Parts 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 Advance Auto Parts 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 1,070% vs. just 184% for the S&P — that is beating the market by 885.55%!* 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* 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 August 13, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Most Important Thing for Advance Auto Parts Investors to Watch in 2025 was originally published by The Motley Fool Sign in to access your portfolio
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Thinking of Buying Tesla Stock? Here Are 2 Red Flags to Watch
Key Points Tesla's heavy reliance on Elon Musk adds significant leadership risk. Increasing competition from established automakers and Chinese EV makers is pressuring Tesla's dominance. Investors need to be comfortable with Tesla's high valuation. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) has long been the front runner in the electric vehicle (EV) revolution in the U.S. Its innovation, brand strength, and rapid growth have made it a favorite among investors. Yet, despite its impressive track record, there are two big risks that investors should carefully consider before buying Tesla stock today. 1. The Elon Musk factor Elon Musk's leadership is often cited as Tesla's greatest strength -- and, paradoxically, one of its most significant vulnerabilities. Musk's vision and hands-on approach have driven Tesla's technological breakthroughs and ambitious expansion. However, this heavy reliance on a single individual introduces what investors refer to as "key man risk." If Musk were to step back from daily operations or shift his focus to other projects, Tesla might face challenges in maintaining its momentum. Though Tesla's management team has grown stronger, few executives command the same vision, drive, and public attention as Musk. Recently, Musk's increasing involvement in political activities has raised concerns about potential distractions or reputational risks for Tesla. While the company has remained operationally strong, these developments underscore the uncertainty around its future leadership continuity. While Tesla's success lies not only with Musk but also with his team, which has executed well on his vision -- no one can build a trillion-dollar company alone -- there is still no clear successor (or a viable management team) . The silver lining here is that the Tesla board has become more serious about finding one in recent months, largely due to the CEO's active involvement in politics. For investors, this means that Tesla's fortunes remain closely tied to Musk's presence and decisions -- a factor that adds a layer of risk to the investment. 2. Intensifying competition Tesla might have been an early mover in the EV industry, but its dominance is no longer guaranteed. The industry landscape is rapidly evolving, with legacy automakers and new entrants accelerating their electric ambitions. Companies like Ford and General Motors are aggressively expanding their EV lineups. For instance, Ford plans to introduce a $30,000 midsize truck by 2027. That price is significantly lower than the average for an EV, and Ford is investing $5 billion in its EV production to make it happen. GM, on the other hand, is working hard on next-generation battery technologies to improve range, charging performance, and cost. Meanwhile, Chinese manufacturers such as BYD are growing their international footprints, particularly in Europe, where Tesla experienced a nearly 27% sales declinein July 2025. BYD's battery technology, government support, and competitive pricing make it a formidable challenger. In addition, a host of EV start-ups are innovating in battery tech, autonomous driving, and new business models, further intensifying competition. While Tesla is not sitting still -- it is working on becoming the lowest-cost producer by cutting prices to grow sales volume and achieve economies of scale -- there is no guarantee that it can maintain its market share over time. In short, it's no longer the only player in town. What does this mean for investors? Tesla's story remains compelling: It's a pioneer with a powerful brand, innovative products, and potential optionality with some of its long shot bets (robotaxi, humanoid robots, etc). But the key man risk surrounding Musk and the escalating competitive landscape are real concerns that investors can't ignore. If Tesla continues to innovate more rapidly than its rivals, the company could sustain its growth trajectory. However, any leadership changes or slips in market position could hurt the business and its share price. While these two risks don't necessarily call for the sale of the stock, they do mean that investors should think carefully before buying the stock today. Tesla stock trades at a significant premium valuation to other carmakers. For perspective, Tesla has a price-to-sales (P/S) ratio of 12.9, compared to GM's 0.3. Unless you're comfortable with the risks and the high valuation, buying the stock today may not be a prudent decision. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $467,985!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $44,015!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $668,155!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 13, 2025 Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy. Thinking of Buying Tesla Stock? 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