Latest news with #Americanmarket
Zawya
a day ago
- Business
- Zawya
Block jumps after S&P 500 inclusion in new milestone for fintech
Tech billionaire Jack Dorsey-led Block's shares rose nearly 10% before the bell on Monday after the payments firm was added to the benchmark S&P 500 , marking a milestone for the fintech sector. The inclusion cements Block's status as one of the most valuable and influential players in the fintech space, and shows how digital payments and financial apps have moved into the mainstream and disrupted traditional banking models in the U.S. Block -- with a market value of about $44.8 billion -- will replace Hess Corp, following its $55 billion merger with oil major Chevron. The change takes effect before trading begins on Wednesday, S&P Dow Jones Indices said. Shares of a company often rise after being added to the S&P 500 as index-tracking funds are required to add them to their portfolio, boosting demand for the stock. J.P. Morgan estimates that Block's inclusion should drive net indexer demand of 54.2 million shares of the company. "We believe XYZ (Block) deserves a higher multiple given recent momentum around product velocity and marketing efforts, and joining S&P 500 helps." The inclusion boosts Block's profile among institutional investors and signals its growing influence in the U.S. financial sector. Co-founded by Jack Dorsey in 2009 as Square, the company rebranded to Block in 2021 to reflect its broader focus on blockchain technology. Block sits at the intersection of traditional payments and digital assets, with products spanning from point-of-sale systems, peer-to-peer transfers and bitcoin services. Crypto payments have also gained momentum this year and are expected to grow further after U.S. President Donald Trump signed a law on Friday establishing a regulatory framework for dollar-pegged stablecoins, a milestone that could help make digital assets a routine way to pay and transfer money. Block's shares have fallen about 14% so far this year through the previous close, underperforming the S&P 500's roughly 7% gain. (Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
Times
4 days ago
- Business
- Times
BP offloads US wind farms in continued retreat from green energy
BP has offloaded its American onshore wind farm business as it continued its retreat from green energy. The sale to LS Power should help the FTSE 100 oil and gas group towards its target of $20 billion of divestments by 2027. It is seeking to shore up its heavily indebted balance sheet, including through asset sales of $3 billion to $4 billion this year. The sale of the US wind farms began in September last year, with BP saying at the time that the assets were 'not aligned' with its plans for growth in its solar venture Lightsource BP. Murray Auchincloss, chief executive, then pledged in February to 'fundamentally reset' BP's strategy, has abandoned most of the green energy goals set under his predecessor Bernard Looney and refocused the company on focus on oil and gas. BP declined to disclose the value of the wind farms deal but promised to give further details as part of its second-quarter results in early August. Irene Himona, analyst at Bernstein, said: 'Using 2024 average global renewables transaction multiples as a reference point, we estimate the deal consideration could reach circa $2.2 billion or above.' However, sources indicated the value was likely to be significantly lower than this, as the global averages did not reflect prices for ageing assets in the American market. BP is also looking to sell its Castrol lubricants business and a stake in Lightsource BP. It has already announced a deal this month to offload its petrol stations in the Netherlands for an undisclosed sum, thought to be in the hundreds of millions of dollars. BP has global operations including drilling for new oil and gas discoveries and retailing fuel and Marks & Spencer convenience food. It reported underlying profits of $8.9 billion last year. Its US wind farm business comprises ten operational wind farms that were mostly built or acquired in the mid to late 2000s as part of BP's first push into green energy. Lord Browne of Madingley, when chief executive, established 'BP Alternative Energy' in 2005 as the oil giant promised to go 'Beyond Petroleum'. BP wholly owns five of the wind farms, in Indiana, Kansas and South Dakota, and has 50 per cent stakes in five others in Colorado, Indiana, Pennsylvania, Idaho and Hawaii. They have a total generating capacity of 1.7 gigawatts and BP's share is 1.3 gigawatts. William Lin, BP's executive vice-president for gas and low-carbon energy, said: 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value. The onshore US wind business has great assets and fantastic people but we have concluded we are no longer the best owners to take it forward.'
Yahoo
6 days ago
- Business
- Yahoo
Progressive (PGR) Reports Half-Year Revenue of US$42 Billion and Net Income of US$6 Billion
The Progressive Corporation (PGR) recently announced robust financial performance for the first half of 2025, including a significant rise in revenue to USD 42,413 million and an increase in net income to USD 5,742 million. Despite these positive earnings results, Progressive's stock price declined by 4% over the last week. While this drop might seem at odds with the company's strong financials, it aligned with a generally volatile market environment, influenced by uncertainties surrounding the Federal Reserve's direction amid President Trump's ongoing criticisms of its leadership. These market conditions likely contributed to Progressive's share price movement. We've identified 1 possible red flag with Progressive and understanding the impact should be part of your investment process. Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. The recent decline of Progressive Corporation's stock price by 4% over the last week, despite strong financial performance, underscores the volatile market environment driven by uncertainties about the Federal Reserve's direction. This backdrop aligns with investor concerns, possibly impacting sentiment even with Progressive's strategic initiatives to acquire cost-effective policies and focus on technology. Over the past five years, Progressive's total shareholder return, including both share price and dividends, reached an impressive 201.01%. This strong return reflects the company's ability to grow through both strategic expansion and capital management. In the last year alone, Progressive outperformed both the broader US market and the US Insurance industry, which returned 10% and 7.4% respectively. Looking forward, the current news impacts revenue and earnings forecasts as Progressive still targets a revenue increase to $102.6 billion by 2028 and earnings growth to $9.9 billion. However, potential challenges related to tariffs and competitive pressures could influence the ability to maintain these forecasts. While analysts have set a consensus price target of US$286.80, Progressive's current share price of US$242.20 indicates an 18.41% discount, suggesting room for future growth in line with earnings and revenue projections. Get an in-depth perspective on Progressive's performance by reading our balance sheet health report here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PGR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
