China's $167 Billion Dam Project Fuels Optimism in Metal Stocks in India
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Indian stocks might open firm this morning, following the overnight bounce on Wall Street. Meanwhile, Bajaj Finance will be in focus after its managing director suddenly resigned last evening — that's definitely got investors talking. On the regulatory front, SEBI's given Jane Street the green light to resume trading in Indian equities, which could give BSE a further boost after its 3% jump on Monday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Lockheed Martin Under Intense Wall Street Pressure On Mounting Program Risks, Q2 Woes
Lockheed Martin Corp. (NYSE:) faces growing pressure from Wall Street after delivering mixed second-quarter results and absorbing nearly $1.6 billion in charges across key segments. Goldman Sachs analyst Noah Poponak reiterated a Sell rating on Lockheed Martin and lowered his 12-month price forecast to $398 from $406. He pointed to ongoing problems that could hurt profits, reduce cash flow, and make future earnings less predictable. Poponak noted that the latest charges in classified Aeronautics and helicopter programs within Rotary and Mission Systems (RMS) reduce segment margin expectations and may drag free cash flow lower beyond also highlighted risks tied to NGAD program losses and uncertainty around future F-35 funding, both of which threaten a substantial share of Lockheed's earnings base. Despite continued demand in missile defense and other high-profile programs, Poponak believes Lockheed is entering a more challenging phase. He cut his 2025-2028 EPS estimates and lowered his 12-month price target to $398 from $406, while maintaining a target P/E multiple of 0.81x relative to the S&P 500. Other Analysts Also Turned Cautious Following The Results: Susquehanna's Charles Minervino maintained a Positive rating and lowered his price forecast from $550 to $490. RBC Capital's Ken Herbert kept a Sector Perform rating and cut his forecast from $480 to $440. Truist's Michael Ciarmoli downgraded the stock from Buy to Hold and reduced his forecast from $554 to $440. Baird's Peter Arment maintained an Outperform rating while trimming his forecast from $540 to $500. JP Morgan's Seth Seifman maintained an Overweight rating while lowering the price forecast from $520 to $465. Earnings Recap: Margins Hit by Legacy Program Charges Lockheed reported net sales of $18.16 billion, slightly missing estimates, while adjusted EPS of $7.29 beat the $6.63 consensus. However, GAAP earnings fell to $1.46 per share, down sharply from $6.63 a year ago due to charges related to cost overruns and schedule slippage in legacy programs. Operating margin collapsed to 4.1% from 11.9%, and free cash flow turned negative at $150 million. The company reaffirmed its 2025 sales guidance of $73.75 billion to $74.75 billion and free cash flow outlook of $6.6 billion to $6.8 billion, but lowered its GAAP EPS forecast to $21.70-$22.00, from $27+ previously. IRS Dispute and 'Golden Dome' Talks Adding to the pressure, Lockheed's CFO reportedly confirmed that the IRS is seeking $4.6 billion in additional income taxes. According to Reuters, the company is challenging the claim through the IRS Independent Office of Appeals and is prepared to pursue judicial action if necessary. Meanwhile, CEO James Taiclet confirmed discussions with U.S. officials over former President Trump's proposed $175 billion 'Golden Dome' missile shield. While no contracts have been awarded, Taiclet said Lockheed is 'all in' on the concept. Lockheed Martin reached a 52-week high of $618.95 on Oct. 21, 2024, and a 52-week low of $410.11 on July 22, 2025, the day after it reported second-quarter results, marking an approximate 34% decline from its peak. Price Action: At last check Wednesday, LMT shares were trading higher by 2.70% to $421.82. Read Next:Photo by JHVEPhoto via Shutterstock Latest Ratings for LMT Date Firm Action From To Mar 2022 Wells Fargo Maintains Equal-Weight Mar 2022 Morgan Stanley Maintains Overweight Feb 2022 Wolfe Research Upgrades Peer Perform Outperform View More Analyst Ratings for LMT View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? LOCKHEED MARTIN (LMT): Free Stock Analysis Report This article Lockheed Martin Under Intense Wall Street Pressure On Mounting Program Risks, Q2 Woes originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
20 minutes ago
- Yahoo
Takeaways of US-Japan deal include potential gains for Trump, Ishiba and EU
(Reuters) -An emerging U.S.-Japanese trade deal could unlock major investment, avert a potential shock to the global economy and may deliver political wins for both U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba, though many specifics of the agreement remain unclear. Here's a closer look at the early takeaways: * The deal stabilizes the global trade outlook by imposing a 15% tariff on Japanese goods — down from a threatened 25% — while Japan commits to investing $550 billion in the U.S. economy, a boost to U.S. jobs. It almost certainly averts a worst-case scenario for the Japanese economy. Moreover, if it signals that the balance of U.S. tariff rates are likely to settle in that range, Jefferies Chief Economist and Strategist for Europe Mohit Kumar said: "the world can live with 15% or so tariffs." * Trump gains some political capital ahead of November 2026 midterm elections by reinforcing his 'America First' trade stance and potentially bolstering his influence with industrial and agricultural constituencies while avoiding the market instability that loomed under earlier tariff threats. Still, not every U.S. constituency was happy with the announcement. The decision has angered the Detroit Three automakers, who still face a 25% levy on significant segments of their non-U.S. produced vehicles. * For Ishiba, the deal is a diplomatic and economic win amid domestic political turbulence. Just days earlier, Japan's ruling coalition lost its majority in upper house elections. * Analysts say the deal could serve as a benchmark for other economies negotiating with Washington, including the EU and China, both facing August tariff deadlines. * American exporters could gain broader access to Japan's markets, especially in autos and agriculture — sectors vital to U.S. economic growth. * Global financial markets are rallying led by automakers. Stocks of major Japanese firms surged following the announcement, and capital inflows are expected to continue as investors seek exposure to Japan's innovation-led growth. * Despite the investment commitments, the deal may not significantly reduce the U.S. trade deficit with Japan in the short term. Critics argue that without stronger enforcement mechanisms or structural reforms, the imbalance could persist. * A 15% tariff, though lower than the threatened 25%, still represents a significantly higher import tax for consumer goods, especially for cars and electronics, which are heavily imported to the U.S. from Japan. Yale Budget Lab last week estimated the overall average U.S. tariff rate under Trump's policy shifts has climbed to around 20% from between 2% and 3% prior to his return to the White House in January. Sign in to access your portfolio
Forbes
22 minutes ago
- Forbes
Is It Too Late To Buy MicroStrategy (MSTR) Stock Now After Soaring Over 100% In A Year?
Rather than timing the market, focus on whether MicroStrategy's leveraged bitcoin strategy aligns ... More with your investment goals and risk capacity. MicroStrategy (MSTR) has become one of the most polarizing stocks on Wall Street, delivering explosive returns that have left investors wondering whether they've missed the boat. With gains ranging from 58% to 176% over the past year, depending on the measurement period, and year-to-date performance soaring between 140-143%, the company's transformation from a traditional business intelligence firm into what Executive Chairman Michael Saylor calls a "Bitcoin Treasury Company" has created unprecedented volatility and opportunity. The question facing investors today isn't whether MicroStrategy has been successful – the numbers speak for themselves. Instead, the question is whether the stock's meteoric rise has created an unsustainable bubble or if there's still room for growth. With shares trading at $435.60 and a market capitalization approaching $122 billion, MicroStrategy now commands a valuation that dwarfs many established tech giants, making this decision all the more critical for potential investors. Why Did MicroStrategy's Stock Price Jump Up? MicroStrategy's extraordinary performance is directly attributed to its bold bet on bitcoin, which has fundamentally altered the company's risk-return profile. The company now holds approximately 592,000 bitcoin worth roughly $70 billion, making it a leveraged play on cryptocurrency rather than a traditional software business. This massive bitcoin treasury has created a correlation coefficient of approximately 0.93 with bitcoin returns, meaning the stock moves almost in lockstep with the world's largest cryptocurrency. The stock's recent surge has been amplified by MicroStrategy's aggressive acquisition strategy, including a July 2025 purchase of 4,225 additional bitcoin that brought total holdings above 600,000 coins. Each bitcoin purchase serves as a catalyst, often triggering immediate stock price reactions from investors who view these moves as validation of the company's strategy and a sign of confidence in bitcoin's long-term prospects. The Current State Of MicroStrategy Today's MicroStrategy operates as a hybrid entity that straddles two vastly different business models. While the company still maintains its original business intelligence and analytics software operations, these traditional revenue streams have been overshadowed by the massive bitcoin holdings that now define the company's value proposition. The original software business continues generating revenue, but investors largely ignore these fundamentals in favor of bitcoin exposure. The company's financial structure reflects this transformation, with a beta of approximately 3.7 indicating extreme volatility compared to the broader market. MicroStrategy has funded its bitcoin acquisitions through a combination of debt financing and equity issuance, with outstanding shares increasing 42% year-over-year to roughly 279 million. This aggressive capital-raising approach has enabled continued bitcoin accumulation but has also introduced significant dilution risk for existing shareholders. Is MicroStrategy Now Overvalued? Determining MicroStrategy's fair value has become increasingly complex as traditional valuation metrics have become less reliable. The company trades at a significant premium to the net asset value of its bitcoin holdings, with a $122 billion market cap exceeding the $70 billion value of its cryptocurrency treasury by a substantial margin. Critics argue that this premium creates a dangerous bubble, particularly considering the company's lack of profitability, with earnings per share ranging from a negative $22.22 to negative $25. The valuation challenge is compounded by MicroStrategy's transformation into what's essentially a bitcoin investment vehicle with software revenue on the side. Investors are paying not just for bitcoin exposure but for Michael Saylor's ability to continue acquiring cryptocurrency through creative financing structures. Whether this premium is justified depends primarily on one's view of bitcoin's future trajectory and MicroStrategy's ability to execute effectively in leveraging traditional capital markets for cryptocurrency accumulation. Analyst Consensus And Outlook Wall Street analysts remain divided on MicroStrategy's prospects, reflecting the broader uncertainty surrounding both the company's unique business model and the future of bitcoin. The stock's extreme volatility and unconventional structure make it challenging for traditional equity analysts to apply standard valuation frameworks. Many analysts focus more on bitcoin price targets and MicroStrategy's ability to continue its accumulation strategy rather than conventional metrics, such as revenue growth or profit margins. The upcoming July 31, 2025, earnings announcement, after the market close, represents a key catalyst that could provide clarity on the company's financial health and future bitcoin acquisition plans. Recent moves, including the issuance of $1 billion in preferred shares with 10% annual non-cumulative dividends, have been viewed as accretive by some analysts, who see it as a creative way to fund further bitcoin purchases while providing yield to income-focused investors. The Bull Case For Why MSTR May Still Be A Buy Supporters argue that MicroStrategy remains undervalued relative to its long-term potential, particularly if bitcoin continues its adoption trajectory among institutional investors and potentially governments. The company's first-mover advantage in corporate bitcoin adoption has created a unique position that would be difficult for competitors to replicate, especially given the regulatory uncertainties and board-level resistance typically found at most traditional corporations. The bull case also emphasizes MicroStrategy's innovative financing strategies, which have allowed the company to accumulate bitcoin without selling existing holdings. The recent preferred shares offering demonstrates management's creativity in accessing capital markets, potentially providing a sustainable model for continued accumulation. Technical indicators support this optimism, with the stock trading above all major moving averages and an RSI of approximately 58 suggesting room for further gains. Furthermore, MicroStrategy's massive bitcoin treasury creates inherent optionality value. As bitcoin gains wider acceptance or regulatory clarity improves, the company's holdings could benefit from multiple expansion beyond just cryptocurrency price appreciation. The leverage inherent in the stock structure means that modest gains in bitcoin translate into amplified returns for equity holders. The Bear Case For Why It May Be Too Late The bear case centers on valuation concerns and the inherent risks associated with MicroStrategy's leverage-heavy strategy. Trading at a significant premium to its net bitcoin value while generating losses from operations suggests that the market has already priced in optimistic bitcoin scenarios. The company's 3.7 beta indicates that any bitcoin downturn will be magnified, potentially resulting in devastating losses for shareholders who purchase at current elevated levels. The bear case isn't just about valuation or leverage—it's about bubble risk. MicroStrategy trades at a substantial premium to its bitcoin holdings, reflecting aggressive bullish expectations that assume the crypto market continues to surge. However, the core argument against Bitcoin—that it's a speculative bubble—has been raised by many, including Nobel laureates such as Robert Shiller, Joseph Stiglitz, Paul Krugman, and others. Even a moderate 20% drop in bitcoin could wipe out billions and trigger margin calls, magnified by MSTR's 3.7 beta, making losses far steeper. And as the bitcoin bubble bursts, MSTR's share count may continue rising—its 42% YoY dilution could erode any remaining equity value. Structural concerns about dilution present another significant risk factor. The company's reliance on equity and debt issuance to fund bitcoin purchases means existing shareholders face continuous dilution risk. The 42% year-over-year increase in share count demonstrates how quickly this dilution can occur, potentially erasing gains even if bitcoin appreciates modestly. The concentration risk cannot be ignored either. Unlike diversified bitcoin ETFs, MicroStrategy offers no protection against company-specific risks, management missteps, or regulatory challenges that could specifically target corporate bitcoin holders. The stock's correlation with bitcoin means that investors gain cryptocurrency exposure, but with additional corporate and operational risks layered on top. How To Decide If MSTR Is A Buy Now Your decision should start with an honest assessment of your bitcoin outlook and risk tolerance. If you believe bitcoin will significantly outperform over your investment horizon, MicroStrategy's leverage structure could amplify those gains. However, this same leverage works in reverse during downturns, making the stock unsuitable for risk-averse investors or those with short-term investment horizons. Consider your existing cryptocurrency exposure as well. MicroStrategy functions as a leveraged bitcoin play, so investors already holding bitcoin or crypto-related assets may inadvertently be concentrating their portfolio risk. The stock's extreme volatility requires firm conviction and the ability to withstand potentially significant short-term losses. Time horizon plays a crucial role in this decision. Short-term traders face the challenge of timing both bitcoin moves and MicroStrategy's premium expansion or contraction. Long-term investors should focus on whether they believe the company's bitcoin accumulation strategy will create sustainable value over multiple market cycles, while also considering the ongoing dilution risk from future equity issuances. Bottom Line MicroStrategy represents one of the most unique investment opportunities in today's market – a leveraged play on bitcoin wrapped in a traditional corporate structure. While the stock's 100%+ annual gains suggest significant upside has been realized, the investment thesis remains intact for those bullish on bitcoin's long-term prospects. However, the premium valuation, dilution risks and extreme volatility make this investment suitable only for investors with a high risk tolerance and firm conviction in the future of cryptocurrency. Rather than timing the market, focus on whether MicroStrategy's leveraged bitcoin strategy aligns with your investment goals and risk capacity.
