Why Herbalife (HLF) Stock Is Down Today
The shares closed the day at $6.63, down 7.7% from previous close.
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 Herbalife? Access our full analysis report here, it's free.
Herbalife's shares are extremely volatile and have had 33 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.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 44.6% on the news that the company reported impressive fourth-quarter results, which blew past analysts' EPS and EBITDA estimates.
On the other hand, revenue guidance for the next quarter missed expectations, with sales projected to decline between 5.5% and 1.5% y/y. Full-year EBITDA guidance also fell short of Wall Street's estimates, raising concerns about the company's ability to sustain its margins and profits.
Overall, this was a solid quarter. Separately, the company announced that Stephan Gratziani is stepping into the CEO's chair, replacing Michael Johnson, who will transition to the role of Executive Chairman.
Herbalife is down 0.7% since the beginning of the year, and at $6.63 per share, it is trading 46.9% below its 52-week high of $12.49 from July 2024. Investors who bought $1,000 worth of Herbalife's shares 5 years ago would now be looking at an investment worth $190.08.
Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
8 minutes ago
- CNBC
CNBC Daily Open: Tech sell-off? Investors could just be taking profit and enjoying the summer
If you have any U.S. technology stocks in your portfolio (and let's face it, who doesn't?), you might want to look away. For the second day in a row, tech stocks dragged markets lower, with the Nasdaq Composite slipping 0.67%. Juggernauts such as Apple, Amazon and Alphabet were more meh-nificent than magnificent, falling more than 1%. Palantir — the standout S&P 500 stock, having more than doubled so far this year — had its sixth consecutive day in the red and lost its place among a ranking of the 20 most valuable U.S. companies. While Palantir's slide was partly triggered by a report from short seller Andrew Left's Citron Research, which called the company "detached from fundamentals and analysis," there was no single trigger for the broader pullback. Investors could have been spooked by OpenAI CEO Sam Altman's caution about an AI bubble forming, although some analysts dispute that assertion. "In our view the tech bull cycle will be well intact at least for another 2-3 years," said Wall Street tech bull Dan Ives. Or it could be something benign, like traders locking in profits. "Tech stocks," said Carol Schleif, chief market strategist at BMO Private Wealth, "have had an incredibly strong run – with some up over 80% since the early April lows." Summer, after all, is far from over. Some investors might have just wanted to cash out for another round of margaritas. Fed officials divided over inflation and employment worries. Central bank governors generally agreed there were risks on both sides. But a couple — breaking from the majority — saw the labor market woes as more pressing, according to minutes of the Fed's July meeting. No new solar or wind power projects, Trump says. Renewable energy projects will no longer receive approval, Trump posted Wednesday on Truth Social. His comment comes after the administration already tightened federal permitting last month. Meta Platforms freezes hiring artificial intelligence talent. The tech giant had in recent months been splashing out eye-watering amounts of money — up to $100 million on signing bonuses — to poach AI employees at other firms. But it appears that cash pool's left to dry for now. Fourth day of losses for the S&P 500. Technology stocks declined on Wednesday, with Palantir having its sixth straight losing day. Asia-Pacific markets were mostly lower Thursday — but Australia's S&P/ASX 200 rose to break the 9,000 level for the first time. [PRO] The Fed is expected to cut just as markets trade at highs. This is what tends to happen when both factors coincide, according to Goldman Sachs research. Red carpet for Putin, trade relief for China, penalties on India: Inside Trump's peculiar policy playbook U.S. President Donald Trump is pursuing an unusual strategy — courting Russian President Vladimir Putin, holding fire on Beijing, all the while turning the screws on India. Despite India being one of the earliest nations to engage in negotiations with the Trump administration, there is still no sign of it sealing a deal with America. New Delhi is now also staring at a secondary tariff of 25% or a "penalty" for its purchases of Russian oil that is set to come into effect later this month.
Yahoo
23 minutes ago
- Yahoo
Warren Buffett's Berkshire Hathaway Just Exited Its Stake in T-Mobile and Loaded Up on an Artificial Intelligence (AI) Infrastructure Stock That's Risen 7,850% Since Its IPO
Key Points Berkshire exited the large mobile carrier T-Mobile, despite the fact the company has been executing well. Berkshire also disclosed a few mystery stocks that it purchased in the first quarter but chose to keep confidential until recently. One stock Berkshire bought is a traditional commodity company positioned as an artificial intelligence infrastructure play. 10 stocks we like better than Nucor › Warren Buffett's company Berkshire Hathaway recently filed its 13F form with the Securities and Exchange Commission (SEC), disclosing what stocks the large conglomerate held at the end of the second quarter. Using these filings, investors can see what stocks Berkshire bought and sold in a three-month window and get a rare glimpse into the minds of some of the smartest investors in the world. Berkshire has been a bit muted in recent quarters, choosing to pile into cash. But the company did make some notable moves in the second quarter, selling one decent-sized position and loading up on an artificial intelligence (AI) infrastructure stock. After a strong year, Berkshire calls it quits on T-Mobile The one position that Berkshire completely exited in the quarter was in the large mobile carrier T-Mobile (NASDAQ: TMUS). The company sold its entire position that had been valued at over $1 billion. Based on filings, Berkshire initiated its position in T-Mobile toward the end of 2020, and appears to have done well on the stock, which is up over 120% in the past five years. T-Mobile has also had a strong 2025, with the stock up about 16.5% (as of Aug. 15), and it recently reported strong second-quarter earnings. Diluted earnings per share of $2.84 rose about 14% year over year, while revenue jumped nearly 7%. Meanwhile, the company achieved some of its best-ever customer growth in the quarter, including 12% growth in its 5G broadband customer base, which is among the best in the industry. In 2023, T-Mobile initiated a dividend, which it has already grown significantly, and management's goal is to grow the quarterly dividend 10% annually. The team at Berkshire may simply be choosing to sell T-Mobile high. The stock is not far off from all-time highs and is now trading at a fairly high forward price-to-earnings ratio above 23. That's toward the higher end of where it has historically traded in recent years, and well above peers. The company has earned the valuation but Berkshire may see it as fairly priced right now. Berkshire has been secretly buying this AI infrastructure stock Many investors came into this 13F season excited about Berkshire once they realized that it would unveil some mystery stocks. Funds can request permission from the SEC to keep certain positions confidential for a certain amount of time. So Berkshire actually purchased Nucor (NYSE: NUE) in the first quarter, but the market only just found out about it in the company's second-quarter 13F. Berkshire's position in Nucor amounted to over $850 million at the end of the second quarter. Nucor is a steel company at its core. However, AI investors have gotten very interested because Nucor makes steel parts for data centers, which are in high demand to power and store all of the necessary data for large language models and AI applications. As a result of this and the way Nucor is positioned to support other burgeoning sectors, the stock has ripped close to 215% over the past five years and is up about 27% this year. Nucor's earnings through the first six months of the year are down significantly compared to last year, as the costs to make its steel products have risen. Investors were also disappointed by management's third-quarter guidance calling for "nominally lower" earnings, mainly due to margin compression in some of its segments. But the market expects President Donald Trump's 50% steel tariffs to benefit U.S. steel companies like Nucor, which will have an easier time raising prices because steel manufactured in other countries will be less competitive and more expensive. However, it could take time for higher prices to roll through. Nucor trades at about 17.5 times forward earnings, which I wouldn't necessarily call cheap in the steel sector. However, we have seen Buffett and his team get interested in U.S.-based commodity companies like oil and gas, perhaps due to a belief in increasing demand over time and a finite supply. Nucor could fit into this theme. Do the experts think Nucor 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 Nucor 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 18, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy. Warren Buffett's Berkshire Hathaway Just Exited Its Stake in T-Mobile and Loaded Up on an Artificial Intelligence (AI) Infrastructure Stock That's Risen 7,850% Since Its IPO 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
Yahoo
an hour ago
- Yahoo
GE Vernova (GEV) Gets Price Target Boost Amid Stronger Outlook
GE Vernova Inc. (NYSE:) is one of the best alternative energy stocks to buy right now. On August 15, Jefferies reaffirmed its Hold rating on GE Vernova and raised its price target from $620 to $658, citing improved EBITDA projections. The firm updated its financial model, lifting its FY2028 EBITDA estimate by 5%, driven by a shift toward higher-margin service revenue. High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers. Jefferies expects GE Vernova's Power segment to reach EBITDA margins in the high 20% range by the 2030s, supporting a more positive long-term outlook for the company. While pricing trends remain favorable, the firm flagged potential softening after a competitor reported slower, but still positive, price momentum. GE Vernova beat Q2 2025 expectations with EPS of $1.86 and revenue of $9.11 billion, up 11% year-over-year and 12% organically. Driven by strong equipment and services performance, the company raised its full-year guidance, projecting revenue near the top of its $36–$37 billion range, boosting its EBITDA margin forecast to 8–9%, and increasing free cash flow guidance to $3.0–$3.5 billion. GE Vernova Inc. (NYSE:GEV) is a global energy firm specializing in electricity generation, transmission, and storage. It operates through three segments: Power (gas, hydro, nuclear, steam), Wind (onshore and offshore turbines), and Electrification (grid solutions, solar, storage, and software). While we acknowledge the potential of GEV 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: and 13 Best NYSE Penny Stocks to Invest in Now. Disclosure: None. This article is originally published at Insider Monkey.
