Latest news with #AllieCanal
Yahoo
6 hours ago
- Business
- Yahoo
Why Spotify stock is sinking double digits on Q2 earnings
Spotify (SPOT) stock tumbles after the company's second quarter earnings missed estimates. Yahoo Finance Senior Reporter Allie Canal breaks down the details of the earnings print and discusses how some artists are pulling their music from the platform in protest against Spotify CEO Daniel Ek's investments in defense companies. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Spotify shares are under pressure after missing estimates in its second quarter, snapping the recent rally that shot shares to all-time highs. Yahoo Finance senior reporter Allie Canal has been tracking the story, so the shares down 10% right now. 10%. Now heading into this print, we have been up around 120% over the past year, and that comes as this company has really shifted focus. They've pulled back on that aggressive podcast spending that we saw. They refocused their energy on margins. We saw layoffs. There was just a lot of tailwinds for this company, especially on the heels of AI as well. So, the fact that we are seeing this dip today, um is not totally surprising to me given the valuation. However, we did see a disappointing report as well. We had earnings swinging to a loss. We had a weaker forecast for the third quarter, and I think when we look throughout this earnings season, it all has to do with guidance. And if you're a company that's pulling back on guidance, why are you doing that at this point? What reasons are you giving? Uh it was interesting on the call that they were asked a lot about price increases and you're at a time when you have a lot of competitors, YouTube, Apple, aggressively raising prices at a pretty quick rate, whereas Spotify has been a little bit more selective. Now, CEO Daniel Ek, he has maintained that Spotify does not want to consistently raise prices to the point that they're losing customers. They said it's better to have retention than to have to reacquire customers later down the line. So, uh those are all levers that the company could pull. It seems like at this point, they don't want to pull them just yet, and obviously a big focus, as always, is on those gross margins. Spotify laid out a plan in 2022. They want margins over the long term to be between 30 and 35%. And we have reached those levels. We saw record in the fourth quarter, but we did see that dip in Q2, 31.5%, and we are expected to dip further in the current quarter to 31.3%. So, as this company has really ramped up, we finally are profitable. Investors don't want to see any reversal in some of those profits. So that's why you're seeing shares under pressure today. Uh but Wall Street overall looks pretty bullish. JP Morgan reiterating their outperform rating uh saying that looking ahead, it's really a top pick when it comes to AI and again, a lot of those tailwinds that we talk about consistently. Yeah, and as we mentioned, the stock has also done well uh going into this. A headline caught my eye uh to do with Spotify, in part because I am a fan of this band, which is called, wait for it, King Gizzard and the Lizard Wizard. It's an Australian rock band. Um and they are say they're in the process of pulling their music from Spotify. In this case, they say it's because of founder Daniel X's investment in an AI drone company. So it has to do with sort of a war position here. But obviously, this is not the first time or the only time that various artists have pulled their stuff from Spotify. Overall, does it have we seen it have an effect? It hasn't seemed to have an impact on shares. However, we do know that these things are in the headlines. You saw Taylor Swift pull her music. That was over compensation. That was probably a little bit of a bigger deal than this one, probably. Probably a bigger deal than you had during the COVID pandemic, Daniel Ek standing firm in the fact that Joe Rogan and his misinformation claims about COVID-19 that he wasn't going to pull those episodes, and then you had Neil Young and other artists really stand up and pull their music. So this is a company that is very exposed to their artists, and they ultimately need to keep the artists happy, also the labels happy as well. So that is certain points in this company's history, you've seen it struggle with those types of conversations and those types of deals. So this, I think, speaks to the larger issue here when you have a company that is so exposed to artists and you have a leader like Daniel Ek that really doesn't back down when pressured, how does that translate into share price reaction and how do investors react? And we have seen investors look at these issues before and, you know, react and pull their money away. Doesn't seem to be the case this time with shares at record highs, but still something to keep an eye on as we continue to track a lot of these developments and how executive leaders really weigh in on some of these conversations that are in, you know, the zeitgeist right now. Related Videos Market's 'fuel' for further P/E expansion is 'nearing empty' AstraZeneca CFO talks tariffs & shifting focus to US market Nvidia's TSMC order, Eli Lilly & Novo Nordisk sink, JPMorgan & Apple card Royal Caribbean, Merck, FuboTV: Trending Tickers 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
3 days ago
- Automotive
- Yahoo
Elon Musk's 'master plan': Is Tesla an EV maker or AI play?
Investors are wrestling with Tesla's (TSLA) uncertain future after the company missed on second quarter earnings and shifts away from being a pure electric vehicle (EV) maker while leaning into artificial intelligence (AI) and robotaxis. Gradient Investments analyst Lisa Schreiber and Yahoo Finance Senior Reporter Allie Canal join Opening Bid host Brian Sozzi to discuss Tesla's delayed tech rollouts, slower EV sales, and challenges ahead without clear profit timelines. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Why consumer stocks are falling out of favor on Wall Street
Consumer-facing stocks are losing favor as investors grow cautious about lower-income spending. Yahoo Finance Senior Reporter Allie Canal joins Market Domination Overtime with Josh Lipton to discuss how earnings are showing a split between lower- and higher-income consumer trends. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Consumer facing stocks are falling out of favor with US investors. Senior reporter Allie Canal joins us now with the Yahoo Finance Investor playbook. Allie. Hi, Josh. Yeah, Wall Street seems to be growing a bit more cautious on the consumer, especially lower income Americans, and that bifurcation, it's showing up in this week's earnings. So earlier this week we saw Chipotle shares fall double digits after the company cut its full year outlook. Hilton dropped on weak US room revenue. Hasbro flagged ongoing pricing sensitivities, and even American Airlines and Southwest, both those airliners warning on soft domestic travel. Now, excluding the airlines, many of these names fall under the consumer discretionary sector. And despite the S&P 500 trading at record highs, up around 10% on the year, consumer discretionary is barely positive. That actually makes this sector one of the worst performers in 2025. And then on the flip side, you have companies catering to wealthier households, like J.P. Morgan and Amex. They're holding up much better in this environment, and to that point, we've seen sectors like financials, industrials, communication services, technology, those sectors continue to outperform. We heard from Bank of America, which said that their survey data showed that industrials and financials, that actually drew the largest inflows last week, underscoring some of that investor appetite when it comes to these cyclical names with strong earnings momentum. And then what was the biggest outflow? That was consumer discretionary. So we're seeing this trade play out in real time. We talked to a few strategists about this bifurcation. Here's a little bit more of what they told us. I still think that we have a bit of a K-shaped economy. Uh maybe that's another similarity, like the meme stocks being all the rage again to what was happening in 2020, 2021, where you had this bifurcation. I think that we're having we have a bifurcated, uh, economy right now. Haves and have nots, both at the consumer level and at the stock level. The divergence between higher income and middle income and higher and lower income consumers is significant. That is what we're seeing in a very, very nuanced consumer market. This is a hyperpromotional environment to get people, especially lower income and lower middle income consumers to spend money, you have to be out promoting, you have to be out with deals. Yeah, so it's really interesting to see how this is playing out this earnings season, and the takeaway here is really that caution is rising around those lower income spenders, and until there's a bit more clarity on household demand, we may continue to see investors rotate into some of these higher income plays, at least for now, Josh.
Yahoo
4 days ago
- Business
- Yahoo
Homeowner tips to save on utility bills as summer heats up
2025 is on track to be the hottest year yet, according to the National Oceanic and Atmospheric Administration (NOAA). Angi co-founder Angie Hicks joins Mind Your Money with Allie Canal to share tips and tricks to save on your utility bill. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Well, according to the National Oceanic and Atmospheric Administration, or NOAA, last month was the third warmest June on record. And that trend is expected to continue. NOAA says there's less than a 1% chance that 2025 will not end up as the warmest year on record. And with the high heat comes high utility prices, as Americans pump up that air conditioning. So, what changes can you make in your home to help lower the bill? Joining me now is Angie Hicks, the co-founder of Angie. So, let's start simple here, Angie. What are some quick, affordable upgrades homeowners can make today that could immediately lower their utility bills? One of the easiest things they can do is to make sure that they're keeping curtains or shutters, blinds, window coverings closed in the heat of the day, especially where the sun's shining in, because we've all walked in that room where it's super hot because you've got that afternoon sun coming in. Keep that sun out. It's going to keep the room cooler. And then also ceiling fans. You might already have some in your house. Make sure they're running counterclockwise. And if you're considering adding them, that could be a nice addition, maybe in a bedroom where you want it to be a little cooler, for example. And Angie, I hate to say it, but this one hits close to home. Most people don't think twice about their HVAC filters. How often should we actually be replacing them, and how big of a difference can that make? It does. What it's going to do is just replacing that filter is going to make the air conditioner just run much more efficiently. So, anywhere from monthly to once a quarter. You should look and see what your, your, uh, your system recommends. And then just put it on the calendar so you remember to do it. Super easy, you know. I, I do mine myself. Everybody, I think you can probably do it yourself, and it's not an expensive item to pick up at the hardware store. And when it comes to overall appliances, when does it make sense to upgrade, and how could switching to maybe Energy Star rated models actually save over time? That's right. So, yeah, so if you're going in the market to be replacing an appliance, be sure you're looking for that Energy Star rating, because that will help. You're going to get a newer model. It's going to be more efficient, and it's going to save you a little bit each month. Uh, you know, keep in mind, your heating and cooling is your largest user of electricity in your house. Uh, you know, so being, being very careful and paying attention to those is really important. That question about when to repair, when to replace, common question. So here's a good rule of thumb. If your appliance is halfway through its useful life, so most of them last, let's say 15 years, so if you're eight years or more, and it's going to cost half as much to repair it as it will to replace, you're better off going ahead and replacing. Okay, and I want to stick on that topic, because what should homeowners know before deciding to maybe replace their windows or upgrade insulation? And are there rebates or maybe tax incentives that consumers should be aware of so that they can take advantage of that? Yeah, those are common things that you can get rebates for. So you do want to be checking, uh, either federal rebates, if your state offers them, be checking on that. Windows, insulation are very common items. And then also, another thing to consider doing is a lot of times we think about weather stripping in the winter. We're like, hey, I don't want my house to be drafty. Same problem in the summer. If it's 95 and humid, and you've got airflowing through around your windows and doors, let's seal those up. And that's something that can be relatively inexpensive. I mean, again, if you're a good DIYer, it's something that you can do yourself, uh, or you can hire a handyman that can come in and help you. Uh, but that is something that will help keep those drafts away and help you, you know, you're not wasting that nice cool air you're paying for. And what about some good hygiene tips? Are there any overlooked habits or home maintenance routines that can make a big seasonal difference without costing a dime? Yeah. One of the things that I would suggest, and it's often overlooked, is the fact that a lot of us like to disguise our air conditioning unit outside. I mean, I know they're not the prettiest thing, but that actually is harmful to the air conditioner. You want good airflow around your air conditioner. So, trim back landscaping. Make sure it's free and clear around that because it's going to pay off in the long run. And then also think about, if you don't have a programmable thermostat, it might be something you want to consider, especially if you like to adjust your thermostat to, you know, go warmer when you're not going to be home, and then go lower when you're going to be there. Uh, it helps you remember because sometimes we forget those things. Uh, so that's another item you could add to the list. Related Videos July Fed meeting and interest rates: What it means for your money Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Social Security checks are going paperless: What you need to know
Starting September 30th, the Social Security Administration will stop sending paper checks. Payments will be electronic instead. Yahoo Finance Senior Personal Finance Columnist Kerry Hannon shares the details with Mind Your Money Host Allie Canal. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Starting this fall, roughly half a million people who've been collecting their social security checks via mail are in for a change. Payments are set to go fully electronic starting September 30th. Joining me now with more senior columnist Carrie Hannon. So Carrie, what's behind this change? I mean, probably a good idea. We're getting a little more technologically advanced here. Yeah, exactly, Ali. This is something that the Social Security Administration has been talking about for decades. I'm not making that up. This is something that they've wanted. The president mandated this in March and said it was all going electronic September 30th. So no more paper checks for many people. And it does impact, um, you know, a segment of the population. Now, most of us are have access to electronic direct deposits or the other option is having a debit card. And and for many people, that's fine. But about 550,000 people, this is not going to impact. It's it's a small percentage, but it can have lasting impact for them and and some hardship. The pros, as you just said, of course, it increases, you know, the security of this transaction and also prevents fraud in many cases. The concern is for people who don't have banks, they're unbanked, or they live in a rural area where there is not great internet access and so forth. So those are some people that it can be concerning. Now, let's get this straight. Even though they're hardcore and we're all going electronic, there is still a process for people who need to have a waiver, who need to still have that paper check. And um, they're not touting it. Social Security is not making a big deal about this, but you can contact Social Security and you have to meet a couple one of these certain criteria. You have to be over 90 or over, you have to have a mental incapacity of some kind or be able to prove that you don't have the infrastructure for an internet, a safe, secure internet access where you live. So that's really what's happening here. And I think, you know, it's noteworthy to say that there are ways around it, but you might have to go to a Social Security office or you might have to just sit on that phone and wait to hear back from somebody. That's interesting. And if you are part of that group that has been receiving paper checks, what are the options out there for getting those payments electronically, if that's possible for you? Yeah, what the Social Security Administration wants you to go is to do is to go to your what is called my Social Security account, which many people have been encouraged to or on social security to set these electronic accounts up in order to track their benefits and so forth. So if you can do that, if you have access to being able to go on electronically and you do have a paper check, now's your time to get to it and you can just change your payment right there. You can give your bank information to make sure it's direct deposit or if you need the debit account. But there is a very easy way online to make that adjustment so that they know where to send your check electronically. Related Videos Broadcom's record, Charter's Q2 miss, Newmont's buyback plan Big Tech earnings on deck: What to expect from Meta & Apple Question of the day: Are we in a market bubble? What Volkswagen's $1.5B tariff hit means for US expansion Sign in to access your portfolio
