Why Victoria's Secret (VSCO) Shares Are Falling Today
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Victoria's Secret? Access our full analysis report here, it's free.
Victoria's Secret's shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Victoria's Secret is down 53% since the beginning of the year, and at $19 per share, it is trading 61% below its 52-week high of $48.71 from December 2024. Investors who bought $1,000 worth of Victoria's Secret's shares at the IPO in July 2021 would now be looking at an investment worth $447.06.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
The Smartest Artificial Intelligence (AI) Stocks to Buy With $1,000 Right Now
Key Points AI hardware investments are top picks due to the massive capital expenditures focused on AI. Cloud computing providers are benefiting from increased workloads. 10 stocks we like better than Nvidia › Artificial intelligence (AI) investing remains at the forefront of the market as companies continue to invest billions of dollars in this emerging technology. We've barely scratched the surface of what an AI-first economy looks like, and to achieve this, we'll need to build out significantly more computing capacity. This is a bullish sign for many companies in this space, and I believe four companies are particularly smart investments to make right now. So, if you have $1,000 (or any other dollar amount) available to deploy, starting with these four is a great idea. AI hardware: Nvidia and Taiwan Semiconductor Manufacturing On the hardware side of things, Nvidia (NASDAQ: NVDA) has been king of the AI world since the AI race began. Its graphics processing units (GPUs) are widely deployed in AI applications and have established themselves as the go-to option, with a market share of 90%. Nvidia has several bullish factors brewing, including the company reapplying for an export license to resume shipping GPUs to China, while being given assurances by the U.S. government that this license will be approved. This will help reaccelerate Nvidia's growth rate, as it projects second quarter revenue to grow 50% year over year; however, it would have been projected to grown 77% if Nvidia were allowed to sell into China during Q2. That's a massive boost and would allow Nvidia to sustain its jaw-dropping growth rate further into the future. This is a bullish sign for Nvidia's stock, underscoring that Nvidia isn't going anywhere in the AI world. Taiwan Semiconductor Manufacturing (NYSE: TSM) is a key supplier to Nvidia, as the company can't produce chips for its GPUs in-house. Instead, it purchases them from TSMC, the leading chip foundry. Taiwan Semiconductor has risen to the top by offering cutting-edge technology alongside best-in-class chip yields, which reduces scrap costs, leading to increased profit for TSMC and better prices for its customers. TSMC expects massive growth from AI to continue for some time. At the start of 2025, management projected that AI-related revenue would grow at a 45% compounded annual growth rate (CAGR) for five years. Chip orders are often placed years in advance, so when management tells investors that significant growth is coming, they should take notice. Both Nvidia and TSMC are poised for significant growth in the years to come, making them excellent stocks to buy now and hold for the long term. Cloud computing: Amazon and Alphabet Another industry that's benefiting from AI deployment is cloud computing. Many companies can't afford to build an expensive data center that may not be used to its full capacity, so it makes more sense to rent that computing power from a provider like Amazon (NASDAQ: AMZN) via Amazon Web Services (AWS) or Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud. Grand View Research found that the global cloud computing market size was around $750 billion in 2024, but that's expected to expand to $2.4 trillion by 2030. That growth is powered by both AI and non-AI workloads migrating to the cloud, and companies like Amazon and Alphabet are well positioned to profit from this trend. Each is also a critical part of its parent company's profit picture. In the first quarter, AWS accounted for 63% of Amazon's operating profits, despite comprising only 19% of total revenue. AWS is the profit driver for Amazon, and with its market-beating growth, it's slated to continue driving Amazon's stock higher. Google Cloud is still working toward AWS' impressive 39% operating margin, as it posted an 18% margin in Q1. However, it's growing faster than AWS (28% growth versus 17% growth) and could become a substantial part of Alphabet's profit picture in the coming years. Cloud computing providers, such as Amazon and Alphabet, are also benefiting from the rise of AI. With the overall cloud computing market expected to expand rapidly over the next few years, these stocks make for smart buys now. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% 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 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. The Smartest Artificial Intelligence (AI) Stocks to Buy With $1,000 Right Now was originally published by The Motley Fool
Yahoo
an hour ago
- Yahoo
ICICI Bank Ltd (IBN) Q1 2026 Earnings Call Highlights: Strong Profit Growth Amid Asset Quality ...
Release Date: July 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points ICICI Bank Ltd (NYSE:IBN) reported a 15.5% year-on-year increase in profit after tax, reaching ?127.68 billion for the quarter. The bank's core operating profit increased by 13.6% year-on-year to ?175.05 billion. Total deposits grew by 12.8% year-on-year, with average deposits increasing by 11.2% year-on-year and 3.1% sequentially. The business banking portfolio showed strong growth, increasing by 29.7% year-on-year and 3.7% sequentially. ICICI Bank Ltd (NYSE:IBN) maintained a strong capital position with a CET1 ratio of 16.31% and a total capital adequacy ratio of 16.97%. Negative Points The rural loan portfolio declined by 0.4% year-on-year and 1.5% sequentially. The retail loan portfolio growth was modest, increasing by only 6.9% year-on-year and 0.5% sequentially. The net interest margin decreased to 4.34% from 4.41% in the previous quarter. There were net additions of ?30.34 billion to gross NPAs, indicating ongoing challenges in asset quality. The overseas loan portfolio remained small, constituting only 2.4% of the overall loan book. Q & A Highlights Warning! GuruFocus has detected 6 Warning Signs with IBN. Q: Can you provide a like-to-like comparison of margins for the fourth quarter, considering the change in method and the impact of the tax refund? A: The reported margin for Q4 would have been a few basis points lower, and the range you mentioned is probably correct. However, the same spike will not occur in the current year, and we expect a more even spread of the reported margin throughout the year. (Unidentified_3) Q: With the current credit cost, do you expect further normalization, or is this the clean credit cost we should expect going forward? A: The underlying level is currently around 50 basis points, and we don't foresee any major movement. The current credit cost is reflective of the underlying conditions. (Unidentified_3) Q: Regarding the business banking segment, what factors contributed to the strong performance, and how do you see the mix of credit growth evolving over the next few years? A: The success in business banking is due to a combination of distribution, process, technology, and digital capabilities. We expect business banking fees to grow faster than the overall loan book, gradually increasing its proportion. (Unidentified_3) Q: How do you see the behavior of CASA deposits changing with rate cuts, and do you expect market share to stabilize or grow? A: We don't see a significant change in the competitive scenario. We will continue to focus on increasing customer acquisition and becoming the primary banker, which should help us maintain or grow our market share. (Unidentified_3) Q: How are you approaching unsecured retail growth, given the systemic softness in credit demand? A: We are comfortable with the quality of origination in personal loans and credit cards over the last 12-15 months. We expect to see better growth and customer acquisition in these segments going forward. (Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
an hour ago
- Yahoo
HDFC Bank Ltd (HDB) Q1 2026 Earnings Call Highlights: Strong Deposit Growth and Strategic Moves ...
Average Deposits Growth: 16% year on year. Average Advances Growth: Slowed to 7% last year, improved to 8% in the recent quarter. Credit Deposit Ratio: Reduced from 110% to 95% post-merger. Interim Dividend: INR5 per share announced. Bonus Share Issue: First ever, in the ratio of one is to one. Warning! GuruFocus has detected 3 Warning Signs with HDB. Release Date: July 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HDFC Bank Ltd (NYSE:HDB) reported a healthy growth in average deposits at a pace of 16% year on year, continuing to gain market share. The bank successfully reduced its credit deposit ratio from 110% to about 95%, aligning with strategic objectives. Asset quality remains strong, positioning the bank well for growth in both assets and deposits. The bank announced an interim dividend of INR5 per share and recommended a bonus share issue in the ratio of one is to one. HDFC Bank Ltd (NYSE:HDB) is optimistic about growth prospects, with expectations of improved loan growth driven by domestic demand and policy support. Negative Points The bank experienced a slowdown in average advances growth to about 7% last year, reflecting a cautious approach. Margins are under pressure due to the lead-lag impact of policy rate changes, with deposits taking longer to reprice compared to loans. The bank's CASA ratio saw a decline post-merger with HDFC Limited, impacting the low-cost deposit franchise. Credit costs have increased slightly from 29 to 41 basis points, with expectations of normalization over time. Fee income was subdued in the quarter, particularly in third-party distribution fees, impacting overall revenue growth. Q & A Highlights Q: Can you explain the impact of rate cuts on your EBLR book and what will trigger growth from current levels? A: The repricing of the EBLR book takes 1 to 3 months, with some loans resetting monthly and others quarterly. Growth is expected to be driven by monetary and fiscal policy support, low inflation, and the upcoming festive season, which should boost consumption demand in both urban and rural areas. (Srinivasan Vaidyanathan, CFO) Q: How are the portfolios allocated to different business heads after the CRB loan classification regrouping? A: The respective product heads remain the same, reporting into a different hierarchy. The reclassification involves moving some portfolios like the small and mid-market to corporate, and some agribook and SLA to retail. (Srinivasan Vaidyanathan, CFO) Q: What is the outlook on CASA deposits and potential conflicts with HDB's customer base? A: CASA deposits were impacted by the merger with HDFC Limited and the focus on reducing the credit deposit ratio. Going forward, the bank aims to enhance customer engagement and experience to regain CASA growth. HDB caters to a different customer segment, minimizing overlap with HDFC Bank's customer base. (Sashidhar Jagdishan, CEO) Q: Can you provide insights on the increase in employee numbers and the focus on specific growth segments? A: The increase in employees is due to branch openings and strengthening the sales force. Growth is expected in rural segments, MSME, corporate, and urban consumption, especially with the festive season approaching. (Sashidhar Jagdishan, CEO) Q: What is the strategy for managing credit costs and asset quality? A: Credit costs remain benign, with no immediate stress visible. The bank maintains a strong asset quality, with retail segment NPAs stable at 82 basis points. The focus is on building resilience for the future through contingent provisions. (Srinivasan Vaidyanathan, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
