Latest news with #AllieCanal
Yahoo
2 days ago
- Automotive
- Yahoo
Mag 7 earnings: Why Alphabet is the 'bigger story' — not Tesla
Tesla (TSLA) and Alphabet (GOOG, GOOGL) are set to report earnings this Wednesday. Yahoo Finance Senior Reporter Allie Canal, IG North America Interim CEO Pete Mulmat, and Baird Investment strategist Ross Mayfield join Opening Bid host Brian Sozzi to examine which of the "Magnificent Seven" earnings results will be most important. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. because it's going to be a big, uh, multi-year initiative for Tesla, billions of dollars likely in terms of investment. But I do think they just want to hear if they're going to sell more cars. When does that top line pick up for this company? Because they're not making money off robotaxis, at least for the next few years. Yeah, Brian, you're absolutely right, and when it comes to sales, the US we're slipping, we're slipping abroad. There's a lot of competition on that front, and cheaper EV models too. That was something that analysts were hoping we could see before the expiration of those EV tax credits at the end of September. We haven't seen that. We likely won't. So, what does that mean for the competitive landscape here, and it's coming at a time where consumer purchasing behavior has shifted a bit? There's more of a favor for hybrids than pure EV plays on the infrastructure side. We're still lacking a bit there. So, where's the innovation here? What does Elon Musk plan to do to reinvigorate some of these sales, because it is core to the business. It is the part of the business that's making money, and we've just seen struggle after struggle on that front. So, he's going to have to come out and say something that's encouraging to investors, that that's not just 5, 10 years down the line. What is the short-term plan for Tesla to reinvigorate sales and get some profits? Uh, Pete, we've seen some, uh, pretty strong moves in Tesla the past few earnings reports. Your team at Tastytrade seeing anything in the options market ahead of this, uh, Tesla release? Uh, you know what, um, balls in a little bit on Tesla right now. Uh, we see about an expected, uh, 23% or $23 move, uh, going into the earnings announcement. Uh, customers, for the most part, are, uh, still bullish, but, um, we're seeing that play through most of the mega 7, uh, names right now. Um, so, uh, seeing a relatively with volatility in at these levels, um, Tesla a little bit different story than a lot of the other mega 7s, 20% below its highs. Um, not seeing a lot of, uh, um, skewing the options chains, uh, giving us some indication as to that, but, um, again, we're looking for right now around that $23 move on either side on the earnings. Ross, last word over to you. What's the more important report this week for the market, broadly, is it Alphabet or is it Tesla? I think it's Alphabet. Um, you know, Tesla has always been a kind of the idiosyncratic member of the Mag 7, um, lumped in because of its size and its tech adjacency, but as you mentioned, it really, it sells cars. So it's got these AI links and, um, you know, big tech aspirations, but it kind of sits on its own. Alphabet is an AI story, it's a big tech story, it's a, um, a story that's, you know, has a lot to do with the EU trade and some of the non-tariff barriers over the EU. So there is a lot there, and I think that the extent to which AI tools like Chat GPT are cannibalizing or eating some of the moat around that company or changing the way that we use search, the way that we interact with our software, um, that is the story, and that is the company that's most going to tell the story about how AI is working in our lives. And that's again, we've got the mega 7 at all-time highs. We're back on the AI trend. So that's the thing that the market is thinking about right now. I think that's the bigger story. Related Videos Alphabet earnings, Cleveland-Cliffs surges, CSX upgraded Why so many companies are trying to become banks Markets are 'getting close' to being priced to perfection Navitas skyrockets, Dollar Tree upgraded, Sarepta & FDA Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Alphabet earnings checklist: 3 things to watch for
Baird investment strategist Ross Mayfield, Yahoo Finance Senior Reporter Allie Canal, and IG North America Interim CEO Pete Mulmat join Opening Bid host Brian Sozzi to discuss Alphabet (GOOG, GOOGL) ahead of the company's earnings release on Wednesday. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. our stock of the day alphabet ahead of the tech giants earnings release on Wednesday, alphabets stock is entering earnings day strong gaining about 7% in the past month, but you wouldn't get this bullish vibe looking at alphabets price to earnings ratio. Check out this chart from Evercore ISI tech analyst mark behehani which shows alphabets four p ratio trading at nearly trough levels. Now hop onto the yahoo finance platform and you'll see alphabets four p ratio of about 19.3 times below the s&p 500s 24 times. Ultimately alphabet must deliver on three fronts to appease the bulls. First the ads on the core search platform need to be above estimates as to alleviate competitive concerns, whether that's from AI agents or open AI. YouTube has to be strong again from top to bottom. That is Netflix earnings last week showed streaming domination, and lastly alphabet must show reasonable cost controls even as it spends aggressively to build AI infrastructure. Still with me is my round table Ross Mayfield, bear investment strategist and Yahoo Finance senior reporter, Ally Canal. Ally let me get over to you here, uh the Netflix numbers were strong. And I want to mention Netflix because they have a direct tie into YouTube. Now YouTube arguably has been the the story narrative on alphabet for the better part of the year in my humble view. And sources tell me that when it comes to Netflix's biggest competition, it is YouTube. It's the creator economy. It's where people are plopping on their couch and they're turning on YouTube more than they have in the past. So for Netflix and competing for those eyeballs, YouTube is a top focus, and they were asked about this on the call whether or not they would consider similar deals with content creators that we've seen from YouTube, and they said that they're open to everything but that they have a different model, a different uh content proposition to consumers, but it's still top of mind for executives at Netflix. They are watching YouTube closely, and we have seen that share tick up. So I think you're absolutely right, YouTube needs to be perfect for alphabet too. I'm also looking closely at the search engine business because there has been talk that chatbots like open AI is chat GPT that they could be taking some market share away, and even anecdotally, sometimes I'll go on Chat GPT and ask chat a question and not Google it. So there are some longer term questions about whether we could see that weigh on alphabet in in the future, but in the near term analysts say that some of those concerns have been appropriately priced into the valuation and that their first party access to to some of that data along with YouTube and those other initiatives like its cloud business that that already gives it the edge over some of those AI chatbots and those competitors there, but like we've been saying, first of the hyperscalers to report, it's really going to set the tone for the rest of this earning season and the rest of big tech still yet to come. Ross, we just showed a chart uh showing uh alphabets p ratio, four p ratio trading really at trough levels going back over the past five years, and my question to you is, is that deserved? Now this is discounted to the s&p 500, but you heard Ally, you have Netflix maybe taking share from YouTube. You have that challenge to their search dominance, uh whether it's from agents or uh an open AI or even or even something like perplexity. Does that valuation make sense to you? I I think it does because as you all have mentioned, this is kind of an existential crisis or question facing Google, right? I mean Google is is chapstick Kleenex. It's synonymous synonymous with uh search to the point that it's it's got such a big moat around it, and now there are um you know, chips being put in that armor, and so I I do think that the multiple it's trading at is reflective of that existential question about its core business. Um now I Google has has done very well over the last 20 years. Um I I think there's a lot of reason to think it'll come out of the other side with, you know, a very strong position, but it reflects to me that that core question about what it does best, what is so central to to you know, fueling all of its other bets from Waymo to YouTube many years ago, um is that core search business and and it's under threat both from AI, but also from antitrust and regulatory issues as we've seen over the last couple of years. So there are multiple avenues with which that is being challenged. Pete, let me get over to you. Um if Alphabet comes out here and says we're going to spend just even more billions than than investors thought on AI infrastructure, what tone would that set for the MAG 7 trade? You know I I think the I think we're at a point now where if they double triple down um it's what is the what's what is the ROI we're going to be able to expect from uh these kinds of investments. Um the other questions too is uh you know are are they actually starting to lose this race? And I I think at that point, they're going to have to demonstrate some ability to um uh have this investment uh yield a return for them at some point. So I think it's going to be a struggle right now. Uh ad revenue being one, the other is the the AI piece and how what is their plan to actually bring that into the revenue stream?
Yahoo
2 days ago
- Business
- Yahoo
July Fed meeting & interest rates: What it means for your money
Mind Your Money host Allie Canal discusses the expectations for the Federal Reserve's next meeting on interest rates in July and what that means for your money. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. The Federal Reserve is widely expected to hold interest rates steady at its July meeting, keeping rates in a range between 4.25 and 4.5%. But what does that mean for your money? Well, it depends on your financial situation and your fi- financial goals. The Fed's benchmark rate, known as the federal funds rate, it's set roughly once a month, and it influences something called the prime rate. The prime rate is what commercial banks charge their most credit-worthy customers. Your personal interest rate for things like loans or credit cards is based on that, along with your credit score and history. When the Fed raises rates, the prime rate tends to rise, when the Fed cuts, it usually falls, too. The Wall Street Journal publishes the most commonly used version of the prime rate, surveying the 10 largest US banks to get it. So, what does this mean for savers? Well, when the Fed keeps rates high, banks often raise deposit rates to compete for customer cash, meaning you could earn more interest on your balance. Certificates of deposit or CDs may offer particularly attractive rates, though they're still below the peaks we saw in 2022. If your bank starts lowering rates or if you're opening a new account, it may be worth shopping around. On the flip side for borrowers, higher rates mean you'll pay more if you carry a balance on a credit card or take out a new loan. Mortgage rates are indirectly tied to Fed policy, and while the Fed is expected to hold steady until at least September, that still means home buyers are looking at mortgage rates hovering around 7%. Related Videos Alphabet earnings checklist: 3 things to watch for DJT stock jumps as bitcoin treasury holdings top $2B JPM's Michele Doesn't Expect a Big Bond Market Selloff Why Nextdoor is having a founder-led re-founding moment 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
2 days ago
- Business
- Yahoo
How tariffs impact the prices you pay at check-out
Economic uncertainty looms for investors and consumers alike as US President Trump's tariff policy evolves. Yahoo Finance Senior Reporter Allie Canal breaks down how tariffs impact consumer prices. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. And many economists feared started to emerge in June's consumer price index. Inflation reaccelerated last month, rising to its highest level in four months. That means the prices you pay for everyday goods and services ticked higher, and in some cases, that is due to President Trump's tariff policies. We saw price gains in categories like appliances, toys, clothing, and furniture, all goods that are heavily imported and therefore vulnerable to tariffs. Appliance prices jumped 1.9% in June. That was the biggest monthly spike since 2020, when Americans were locked down at home and investing in their living spaces. Plus, Trump's 25% to now 50% tariff on steel and aluminum affects products like washers, dryers, and refrigerators, pushing those costs higher. Meanwhile, toy prices rose 1.8%, and with about 80% of toys sold in the US made in China, this category is heavily exposed to any tariffs on Beijing. And sporting goods prices climbed 1.4%. The World Trade Organization says nearly two-thirds of sporting goods imported to the US come from China. The US is also a major importer of furniture and apparel. Prices for both rose 4/10 of a percent last month. Now, it is important to note that price gains in these areas can be offset by declines elsewhere, but this data does point to growing pressure in tariff-sensitive parts of the economy. Related Videos Trump's tariff deadline, Tesla, Powell & Fed future: 3 Things July Fed meeting & interest rates: What it means for your money EU to Plan for Possible No-Deal Scenario With US Wine Woes as President Trump's Tariffs Loom 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
2 days ago
- Business
- Yahoo
July Fed meeting & interest rates: What it means for your money
Mind Your Money host Allie Canal discusses the expectations for the Federal Reserve's next meeting on interest rates in July and what that means for your money. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. 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
