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Yahoo
6 days ago
- Business
- Yahoo
Nasdaq Futures Climb on Upbeat Alphabet Results and Trade Deal Optimism, U.S. PMI Data in Focus
September Nasdaq 100 E-Mini futures (NQU25) are trending up +0.36% this morning as investors cheer forecast-beating quarterly results from Alphabet and remain optimistic that the U.S. may strike more trade deals soon. Alphabet (GOOGL) rose over +3% in pre-market trading after the Google parent reported stronger-than-expected Q2 results, boosted by demand for AI products. The company also projected a $10 billion increase in its capital spending for the year, with CEO Sundar Pichai attributing the move to the 'strong and growing demand for our cloud products and services.' More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Also aiding sentiment, reports emerged that the European Union and the U.S. are making headway on a deal that would impose a 15% tariff on most EU imports. In addition, Bloomberg reported that the U.S. and South Korea have discussed creating a fund to invest in American projects as part of a trade agreement. Investors now look ahead to U.S. business activity data and the next round of corporate earnings reports. In yesterday's trading session, Wall Street's three main equity benchmarks ended higher. Lamb Weston Holdings (LW) surged over +16% and was the top percentage gainer on the S&P 500 after the producer of frozen potato products posted upbeat FQ4 results and introduced a new cost savings program. Also, Baker Hughes (BKR) climbed more than +11% and was the top percentage gainer on the Nasdaq 100 after the company reported better-than-expected Q2 results. In addition, GE Vernova (GEV) advanced over +14% after the company reported stronger-than-expected Q2 results and said it expects full-year revenue to trend toward the 'higher end' of its $36B-$37B guidance. On the bearish side, Texas Instruments (TXN) plunged more than -13% and was the top percentage loser on the Nasdaq 100 after the semiconductor company issued disappointing Q3 earnings guidance. Economic data released on Wednesday showed that U.S. June existing home sales fell -2.7% m/m to a 9-month low of 3.93M, weaker than expectations of 4.00M. 'With the Aug. 1 deadline looming, investors have been encouraged by the recent trade-deal announcements,' said Ian Lyngen and Vail Hartman at BMO Capital Markets. 'The progress on the trade war will provide clarity and help the market move forward to incorporate the new global trade environment.' Second-quarter corporate earnings season continues in full flow, and investors look forward to fresh reports from notable companies today, including Blackstone (BX), Honeywell (HON), Union Pacific (UNP), Intel (INTC), and L3Harris Technologies (LHX). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +3.2% increase in quarterly earnings for Q2 compared to the previous year, slightly above the pre-season forecast of +2.8%. On the economic data front, all eyes are focused on S&P Global's flash U.S. purchasing managers' surveys, set to be released in a couple of hours. Economists, on average, forecast that the July Manufacturing PMI will come in at 52.7, compared to last month's value of 52.9. Also, economists expect the July Services PMI to be 53.0, compared to 52.9 in June. Investors will also focus on U.S. New Home Sales data. Economists foresee this figure coming in at 649K in June, compared to 623K in May. U.S. Initial Jobless Claims data will be released today as well. Economists estimate this figure will come in at 227K, compared to last week's number of 221K. Meanwhile, U.S. President Donald Trump is set to visit the Federal Reserve's headquarters later today. President Trump has repeatedly criticized Fed Chair Jerome Powell for his reluctance to cut interest rates. U.S. rate futures have priced in a 97.4% probability of no rate change and a 2.6% chance of a 25 basis point rate cut at next week's policy meeting. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.396%, up +0.16%. The Euro Stoxx 50 Index is up +0.52% this morning, buoyed by a slew of upbeat earnings reports and optimism over the EU-U.S. trade agreement, with attention now shifting to the European Central Bank's monetary policy decision. Bank stocks led the gains on Thursday. Telecom, healthcare, and industrial stocks also gained ground. The European Union and the U.S. are making headway on a deal that would impose a 15% tariff on most EU imports, avoiding a steeper 30% duty set to take effect on August 1st, according to diplomats familiar with the talks. Adding to the positive sentiment, a survey released on Thursday showed that Eurozone business activity expanded at the fastest pace in 11 months in July, driven by a notable improvement in the services sector and continued signs of stabilization in manufacturing. At the same time, a separate survey showed that German consumer sentiment is set to weaken heading into August, as rising economic uncertainty prompted households to prioritize saving over spending. Meanwhile, investors are awaiting the ECB's interest rate decision later in the session, with the central bank widely expected to keep the deposit rate unchanged at 2.00% following seven straight cuts. Market participants will be watching for any hints on when it might lower interest rates again, though analysts said the central bank will likely seek to avoid sending signals about the September meeting. 'There is just too much uncertainty clouding policy right now, with the EU and U.S. still not finalizing a trade deal,' said FP Markets' Aaron Hill. In corporate news, Deutsche Bank AG ( climbed over +6%, and BNP Paribas SA ( rose more than +2% after both lenders reported stronger-than-expected Q2 earnings. At the same time, STMicroelectronics ( plunged over -9% after the chipmaker posted its first quarterly loss in more than a decade. Germany's GfK Consumer Climate Index, Eurozone's Composite PMI (preliminary), Eurozone's Manufacturing PMI (preliminary), and Eurozone's Services PMI (preliminary) data were released today. The German August GfK Consumer Climate Index stood at -21.5, weaker than expectations of -19.4. Eurozone's July Composite PMI has been reported at 51.0, stronger than expectations of 50.8. Eurozone's July Manufacturing PMI came in at 49.8, stronger than expectations of 49.7. Eurozone's July Services PMI arrived at 51.2, stronger than expectations of 50.6. Asian stock markets today settled in the green. China's Shanghai Composite Index (SHCOMP) closed up +0.65%, and Japan's Nikkei 225 Stock Index (NIK) closed up +1.59%. China's Shanghai Composite Index ended higher today as signs of improvement in U.S.-China relations boosted sentiment. Rare earth stocks led the gains on Thursday. Tourism stocks also advanced, with China Tourism Group Duty Free climbing +10% after a launch plan was announced for the Hainan Free Trade Port. The benchmark index closed above the 3,600 level for the first time since January 2022. Chinese stocks have been climbing in recent weeks, supported by Beijing's measures to rein in excessive competition and overcapacity, along with signs of improving U.S.-China trade ties. U.S. President Donald Trump said on Wednesday that the U.S. was in the process of finalizing a trade agreement with China and would implement straight tariffs for most countries. Meanwhile, U.S. Treasury Secretary Scott Bessent will meet his Chinese counterparts in Stockholm next week for economic and trade talks. In other news, European Commission President Ursula von der Leyen called for an 'essential' recalibration of trade relations with China during a tense summit on Thursday with President Xi Jinping. Investors are also looking to the country's July Politburo meeting, where policymakers will deliberate on economic policies for the second half of the year. In corporate news, WuXi Biologics rose over +3% in Hong Kong after projecting higher first-half profits. Japan's Nikkei 225 Stock Index closed sharply higher and hit a new one-year high today, extending yesterday's gains after Tokyo struck a long-awaited trade deal with Washington. Bank stocks led the gains on Thursday as investors speculated that the economic clarity provided by the trade agreement would enable the Bank of Japan to resume interest rate hikes later this year. The trade deal unveiled late Tuesday by U.S. President Donald Trump lowered the reciprocal tariff and auto-specific duties to 15%, down from the 25% Trump had previously threatened in a letter to the Japanese government. U.S. Treasury Secretary Scott Bessent cautioned that the U.S. will review the implementation of the trade agreement on a quarterly basis, and if Trump is unhappy, tariffs will return to the 25% rate for both automobiles and other Japanese goods. On the economic front, preliminary business surveys released on Thursday showed that Japan's manufacturing activity unexpectedly fell into contraction territory in July amid uncertainty over U.S. tariffs, while the country's service sector expanded at the quickest rate in five months, driven by strong demand. Meanwhile, concerns persist over Japan's domestic politics. Prime Minister Shigeru Ishiba has rejected local media reports claiming he plans to resign following his party's loss of an upper house majority, while uncertainty surrounding the country's fiscal policy remains. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.63% to 23.10. The Japanese July au Jibun Bank Manufacturing PMI (preliminary) stood at 48.8, weaker than expectations of 50.2. Pre-Market U.S. Stock Movers Alphabet (GOOGL) rose over +3% in pre-market trading after the Google parent reported stronger-than-expected Q2 results, boosted by demand for AI products. The company also projected a $10 billion increase in its capital spending for the year, with CEO Sundar Pichai attributing the move to the 'strong and growing demand for our cloud products and services.' Tesla (TSLA) slid more than -6% in pre-market trading after CEO Elon Musk cautioned about tough times ahead for the company as incentives such as the EV tax credit phase out in the U.S. 'We probably could have a few rough quarters,' Musk said. ServiceNow (NOW) climbed more than +7% in pre-market trading after the enterprise software company posted upbeat Q2 results and raised its full-year subscription revenue guidance. Las Vegas Sands (LVS) gained over +6% in pre-market trading after the casino company reported stronger-than-expected Q2 results. Chipotle Mexican Grill (CMG) plunged over -11% in pre-market trading after the burrito chain reported weaker-than-expected Q2 revenue and cut its full-year comparable restaurant sales growth forecast. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - July 24th Blackstone (BX), Honeywell (HON), Union Pacific (UNP), Intel (INTC), Newmont Goldcorp (NEM), Digital (DLR), Ameriprise Financial (AMP), Nasdaq Inc (NDAQ), L3Harris Technologies (LHX), Valero Energy (VLO), Keurig Dr Pepper (KDP), Edwards Lifesciences (EW), Westinghouse Air Brake (WAB), Tractor Supply (TSCO), STMicroelectronics (STM), VeriSign (VRSN), Dover (DOV), CenterPoint Energy (CNP), Dow (DOW), Labcorp Holdings (LH), Flex (FLEX), Teck Resources (TECK), Comfort Systems (FIX), Weyerhaeuser (WY), TransUnion (TRU), Deckers Outdoor (DECK), West Pharmaceutical Services (WST), Textron (TXT), RPM (RPM), TechnipFMC (FTI), Healthpeak Properties (DOC), Gaming & Leisure Properties (GLPI), Mobileye Global (MBLY), Lincoln Electrics (LECO), Pool (POOL), Kinsale Capital (KNSL), Ovintiv (OVV), AO Smith (AOS), LKQ (LKQ), South State (SSB), Old Republic (ORI), American Airlines (AAL), FirstService (FSV), Mohawk Industries (MHK), Ryder System (R), ADT (ADT), SLM (SLM), Boyd Gaming (BYD), FirstCash (FCFS), Darling Ingredients (DAR), Moelis & Co (MC), FTI Consulting (FCN), Valley National (VLY), Glacier (GBCI), Group 1 Automotive (GPI), Lazard (LAZ), Columbia Banking (COLB), Hexcel (HXL), Phillips Edison Co (PECO), CNX Resources (CNX), AllianceBernstein Holding LP (AB), SkyWest (SKYW), Brunswick (BC), Associated Banc-Corp (ASB), Integer Hld (ITGR), Iridium (IRDM), WSFS (WSFS), The Bancorp (TBBK), Eastern Bankshares (EBC), TRI Pointe Homes (TPH), Visteon (VC), Bread Financial Holdings (BFH), Enova International Inc (ENVA), CVB Financial (CVBF), McGrath (MGRC), Ardagh Metal Packaging (AMBP), Sonic Automotive (SAH), Atlantic Union (AUB), Seacoast Banking Florida (SBCF), HNI (HNI), Garrett Motion (GTX), Provident (PFS), WNS Holdings (WNS), First Financial Bancorp (FFBC), Boston Beer (SAM), Liberty Oilfield (LBRT), Customers Bancorp (CUBI), Minerals Technologies (MTX), Phinia (PHIN), Novocure Ltd (NVCR), Knowles Cor (KN), Imax (IMAX), 1st Source (SRCE), S&T Bancorp (STBA), Coursera (COUR), Ladder Capital (LADR), Alexander&Baldwin (ALEX), Dime Community (DCOM), CTS Corp (CTS), Byline Bancorp (BY), Berkshire Hills Bancorp (BHLB). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
- Yahoo
S&P 500 and Nasdaq 100 Post Record Highs on Tech Stock Strength
The S&P 500 Index ($SPX) (SPY) Thursday closed up +0.07%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.70%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.25%. September E-mini S&P futures (ESU25) rose +0.09%, and September E-mini Nasdaq futures (NQU25) rose +0.33%. Stock indexes on Thursday settled mostly higher, with the S&P 500 and Nasdaq 100 posting new all-time highs. Earnings results from Alphabet showed solid demand for artificial intelligence and bolstered confidence in technology stocks, which rose after the company reported better-than-expected Q2 revenue. Stocks added to their gains on signs of resilience in the US labor market, following the unexpected decline in weekly initial unemployment claims to a 3-month low. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Can Lucid Motors Stock Hit $7 in 2025? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. On the negative side, Tesla closed down more than -7% after reporting its biggest revenue decline in at least ten years and CEO Musk warning of a "rough patch" for the company for the next year or more. Also, IBM fell more than -7% to weigh on the Dow Jones Industrials after reporting weaker-than-expected Q2 software revenue. In addition, signs of weakness in US manufacturing activity are bearish for stocks after the July S&P US manufacturing PMI fell -3.4 to 49.5, weaker than expectations of 52.7 and the weakest level in 7 months. US weekly initial unemployment claims unexpectedly fell -4,000 to a 3-month low of 217,000, showing a stronger labor market than expectations of an increase to 226,000. The US June Chicago Fed national activity index rose +0.06 to -0.10, stronger than expectations of -0.15. US June new home sales rose +0.6% m/m to 627,000, weaker than expectations of +4.3% m/m to 650,000. The markets are awaiting President Trump's August 1 deadline for trade deals to avoid high tariffs. Last Wednesday, Mr. Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. As an update, Mr. Trump late Wednesday said, "We'll have a straight, simple tariff of anywhere between 15% and 50%," an indication that the floor for tariffs is rising and suggesting that he would not go below 15%. The markets this week will focus on any tariff news, along with the announcement of any new trade deals. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 63% at the following meeting on September 16-17. The markets this week absorbed a heavy slate of quarterly corporate earnings, with reports from about one-fifth of the companies in the S&P 500. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research. Overseas stock markets on Thursday settled higher. The Euro Stoxx 50 closed up +0.20%. China's Shanghai Composite closed up +0.65%. Japan's Nikkei Stock 225 climbed to a new 1-year high and closed up sharply for a second session by +1.59%. Interest Rates September 10-year T-notes (ZNU25) Thursday closed down -6 ticks. The 10-year T-note yield rose by +3.2 bp to 4.412%. T-notes were under pressure on Thursday due to reduced safe-haven demand for government securities, as optimism grew that the US would reach more trade deals with its trading partners following the clinching of a deal with Japan on Wednesday. Also, Bloomberg News reported on Wednesday that the US and EU are closing in on a trade deal. T-notes dropped to their lows Thursday after weekly US jobless claims unexpectedly fell to a 3-month low, a sign of labor market strength that is hawkish for Fed policy. However, T-notes recovered from their worst levels Thursday after June new home sales rose less than expected and the US manufacturing PMI unexpectedly fell to a 7-month low, dovish factors for Fed policy. European government bond yields on Thursday finished mixed. The 10-year German bund yield rose to a 1-week high of 2.711% and ended up +6.3 bp to 2.702%. The 10-year UK gilt yield fell -1.3 bp to 4.622%. The Eurozone July S&P manufacturing PMI rose +0.3 to a 3-year high of 49.8, right on expectations. The Eurozone July S&P composite PMI rose +0.4 to 51.0, stronger than expectations of +0.1 to 50.7 and the strongest level in 11 months. Eurozone Jun new car registrations fell -7.3% y/y to 1.010 million units, the largest decline in 10 months. The German Aug GfK consumer confidence index unexpectedly fell -1.2 to a 4-month low of -21.5, weaker than expectations of an increase to -19.3. As expected, the ECB kept the deposit facility rate unchanged at 2.00%. The ECB said, "Inflation is currently at the 2% medium-term target," and the economy has so far proven resilient, but the environment remains uncertain due to trade disputes. ECB President Lagarde said the economic risks to the Eurozone are tilted to the downside, and a stronger euro could dampen inflation more than expected. Swaps are discounting the chances at 21% for a -25 bp rate cut by the ECB at the September 11 policy meeting. US Stock Movers The Magnificent Seven stocks, sans Apple and Tesla, rallied Thursday and supported gains in the broader market. Nvidia (NVDA), (AMZN), and Microsoft (MSFT) closed up more than +1%. Also, Alphabet (GOOGL) closed up +0.88%, and Meta Platforms (META) closed up +0.17%. West Pharmaceutical Services (WST) closed up more than +22% to lead gainers in the S&P 500 after reporting Q2 net sales of $766.5 million, well above the consensus of $726.1 million, and raising its full-year net sales forecast to $3.04 billion-$3.06 billion from a previous forecast of $2.95 billion-$2.98 billion, stronger than the consensus of $2.96 billion. United Rentals (URI) closed up more than +8% after reporting Q2 revenue of $3.94 billion, above the consensus of $3.90 billion, and said it was adding $400 million to its stock buyback program. Labcorp Holdings (LH) closed up more than +6% after reporting Q2 revenue of $3.53 billion, better than the consensus of $3.49 billion, and raising its full-year adjusted EPS estimate to $16.05-$16.50 from a previous estimate of $15.70-$16.40. T-Mobile US (TMUS) closed up more than +5% to lead gainers in the Nasdaq 100 after reporting Q2 total postpaid net customers of 1.77 million, above the consensus of 1.34 million, and raising its full-year postpaid net customers forecast to 6.1 million-6.4 million from a previous estimate of 5.5 million-6.0 million, better than the consensus of 5.94 million. ServiceNow (NOW) closed up more than +4% after reporting Q2 subscription revenue of $3.11 billion, above the consensus of $3.04 billion, and raising its full-year subscription revenue forecast to $12.78 billion-$12.80 billion from a previous forecast of $12.64 billion-$12.68 billion, stronger than the consensus of $12.68 billion. Las Vegas Sands (LVS) closed up more than +4% after reporting Q2 net revenue of $3.18 billion, well above the consensus of $2.83 billion. A O Smith (AOS) closed up more than +3% after boosting its full-year net sales forecast to $3.85 billion-$3.93 billion from a previous forecast of $3.80 billion-$3.90 billion, better than the consensus of $3.86 billion. LKQ Corp (LKQ) closed down more than -17% to lead losers in the S&P 500 after reporting Q2 adjusted EPS continuing operations of 87 cents, weaker than the consensus of 93 cents. Dow Inc. (DOW) closed down more than -17% after reporting a Q2 adjusted operating loss per share of -42 cents, a much wider loss than the consensus of -18 cents. Molina Healthcare (MOH) closed down more than -16% after reporting Q2 adjusted EPS of $5.48, below the consensus of $5.52, and cutting its full-year adjusted EPS forecast to at least $19.00 from a previous estimate of $21.50-$22.50, weaker than the consensus of $22.08. Chipotle Mexican Grill (CMG) closed down more than -13% after reporting Q2 comparable sales fell -4%, weaker than the consensus of -2.91%, and cutting its full-year comparable sales forecast to 0% from a previous forecast of low single-digits growth. Tesla (TSLA) closed down more than -7% to lead losers in the Nasdaq 100 after reporting Q2 revenue of $22.50 billion, below the consensus of $22.64 billion, and CEO Musk warning of a "rough patch" for the company for the next year or more. International Business Machines (IBM) closed down more than -7% to lead losers in the Dow Jones Industrials after reporting Q2 software revenue of $7.39 billion, weaker than the consensus of $7.49 billion. Southwest Airlines (LUV) closed down more than -11% after cutting its full-year EBIT to $600 million-$800 million from a previous estimate of $1.7 billion, saying it expects fallout from tariff turmoil to erase as much as $1 billion of its annual pre-tax profit this year. American Airlines Group (AAL) closed down more than -9% after reinstating annual earnings guidance for 2025 from an adjusted loss of -20 cents a share to a profit of 80 cents, with the midpoint well below the consensus of a 72-cent profit. Earnings Reports (7/25/2025) Aon PLC (AON), AutoNation Inc (AN), Booz Allen Hamilton Holding Co (BAH), Centene Corp (CNC), Charter Communications Inc (CHTR), Erie Indemnity Co (ERIE), First Citizens BancShares Inc/ (FCNCA), First Hawaiian Inc (FHB), Gentex Corp (GNTX), HCA Healthcare Inc (HCA), Lear Corp (LEA), OneMain Holdings Inc (OMF), Phillips 66 (PSX), Saia Inc (SAIA), Skechers USA Inc (SKX). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
24-07-2025
- Business
- Yahoo
6,220 Reasons to Buy MicroStrategy Stock This Week
The first public Bitcoin (BTCUSD) treasury business MicroStrategy (MSTR) is back in the news again after buying 6,220 more BTC for nearly $740 million between July 14 and July 20. The acquisitions have increased its Bitcoin reserves up to a staggering 607,770 BTC and place the company even further ahead as the top corporate Bitcoin holder. The latest comes hot on the heels of President Donald Trump's signing of the Genius Act, which has rekindled the crypto world by offering regulatory and legal clarity on digital assets, with specific focus on stablecoins. Institutional interest has reared up again too with Bitcoin back above the level of $119,000. MSTR's aggressive Bitcoin accumulation and capital raise model once again places the stock as one of the most volatile but compelling bets among crypto-related equities. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Can Lucid Motors Stock Hit $7 in 2025? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! About MicroStrategy Stock MicroStrategy (MSTR) is a Virginia company offering business intelligence software and enterprise analytics that transformed to become the first corporate Bitcoin treasury company. It now has a central strategy encompassing the purchasing and holding of Bitcoin. MicroStrategy's current market capitalization is approximately $112.8 billion. MSTR stock has experienced wild fluctuations in the last 52 weeks from a low at $102.40 to a high at $543. Despite this volatility, shares are up nearly 150% in the past year and nearly 45% in the year to date, dramatically outperforming the S&P 500 Index ($SPX) in each period. It has also performed Bitcoin during these periods, with the cryptocurrency up 80% and 27%, respectively. From a valuation standpoint, MicroStrategy is an unusual one. The stock carries a price-earnings ratio of 58.4x and an eye-popping price-sales ratio of 251.47x. With thin normalized earnings and more than a $1.1 billion net loss in the previous year, MSTR is little more than a leveraged Bitcoin proxy. MicroStrategy Beats on Bitcoin Gains The most recent quarter by MicroStrategy carried the signatures of its characteristic business model. Even though revenue declined moderately year over year to $111.1 million, the Bitcoin metrics of the company ran the show. The business incurred a massive fair value loss of $5.9 billion in response to accounting principles at the end of Q1 when the price of BTC was $82,445. However, with the price of Bitcoin now near $120,000, the company is anticipating a significant fair value gain in Q2. The company plans to report its Q2 results on July 31. Investors anticipate its release will reveal huge unrealized gains and possibly a record quarter given the timing at the end of Bitcoin's rally. What Do Analysts Expect for MicroStrategy Stock? Despite MicroStrategy's radical business model, analyst sentiment remains optimistic. MSTR has a 'Strong Buy' consensus rating. The consensus target price for MSTR is $543.62, translating into a 30% potential return from current prices. Bullish analysts have targets as high as $680, while the most negative target stands at $200, which shows the large range of sentiment created by exposure to Bitcoin. On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
24-07-2025
- Business
- Yahoo
Warren Buffett's Favorite Money-Making Strategy is ‘Purchasing Fractional Interests in Easily-Identifiable Princes at Toad-Like Prices'
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is celebrated for his candid reflections on both his successes and mistakes in the world of investing. In his 1981 shareholder letter, Buffett offered a characteristically honest assessment of his experience with corporate acquisitions, stating, 'We have tried occasionally to buy toads at bargain prices with results that have been chronicled in past reports. Clearly, our kisses fell flat. We have done well with a couple of princes — but they were princes when purchased. At least our kisses didn't turn them into toads. And, finally, we have occasionally been quite successful in purchasing fractional interests in easily-identifiable princes at toad-like prices.' This quote encapsulates a philosophy that has come to define Buffett's investment approach: the preference for acquiring high-quality businesses — 'princes' — at reasonable prices, rather than hoping to transform struggling companies — 'toads' — through managerial intervention or through optimism alone. Buffett's metaphor draws from the classic fairy tale, but its lesson is grounded in decades of real-world investing experience. It boils down to a simple idea: buy high-quality companies and let them continue to grow. Expanding on that core principle, it's better to buy a high-quality company at an 'ok' price than a bad company at a great price, because the quality company will ultimately deliver greater value, while the lower-quality company is likely to continue its decline. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Early in his career, Buffett was known for seeking out so-called 'cigar butt' investments — companies trading at deep discounts to their intrinsic value, often because of operational or industry challenges. While these bargains sometimes yielded quick profits, Buffett found that time was rarely on the side of a mediocre business. As he and his longtime partner, the late Charlie Munger, evolved Berkshire Hathaway's strategy, they shifted focus toward companies with durable competitive advantages, strong management, and the ability to compound earnings over long periods. Buffett's admission that his historical attempts to 'kiss toads' have rarely produced miracles is supported by both his own track record and broader market evidence. Numerous studies and post-mortems on corporate acquisitions have shown that turnarounds are difficult to execute and often fail to deliver the hoped-for returns. By contrast, investments in well-run, fundamentally sound businesses — especially when purchased at attractive prices — have consistently been the cornerstone of Berkshire Hathaway's long-term success. The final part of Buffett's quote — highlighting the success of buying 'fractional interests in easily-identifiable princes at toad-like prices' — speaks to another key element of his philosophy: the willingness to invest in minority stakes in great companies when full ownership is not feasible or prudent. This approach has led Berkshire to build substantial positions in firms like Coca-Cola, American Express, and Moody's, generating significant value for shareholders without the risks associated with full takeovers. Buffett's reflections remain highly relevant in today's markets, where the allure of turnaround stories and high-premium acquisitions continues to tempt corporate leaders and investors alike. His experience serves as a reminder that discipline, patience, and a focus on intrinsic business quality are more reliable paths to enduring success than the hope of miraculous transformations. In a world full of both princes and toads, Buffett's advice is clear: invest where the odds — and the underlying economics—are in your favor. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
24-07-2025
- Automotive
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Auto Revenue Keeps Plunging at Tesla. Should You Buy the TSLA Stock Dip or Run Far Away?
Tesla (TSLA) shares are down nearly 9% on Thursday after the EV manufacturer reported its second straight quarter of revenue decline. The automaker continued to lose share to lower-priced electric vehicles from rivals, resulting in a more-than-expected 16% decline in automotive revenue to $16.7 billion in Q2. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Including today's plunge, Tesla stock is down some 17% versus its high in the final week of May. Tesla Stock Sinks on Downbeat Commentary TSLA shares are slipping this morning mostly because the company's billionaire chief executive, Elon Musk, signaled more turbulence ahead on the earnings call, saying 'we probably could have a few rough quarters.' Additionally, President Donald Trump's administration's recently passed tax-and-spending bill, which essentially suspends federal subsidies for EV buyers, will also hurt Tesla's business moving forward, according to chief financial officer Vaibhav Taneja. In the earnings release, the finance chief also confirmed that Tesla is adjusting its supply chain to address tariff risks, which prevents the automaker from 'guaranteeing delivery orders placed in the later part of August and beyond.' That said, the EV stock is still up more than 40% versus its year-to-date low in early April. Have TSLA Shares Hit the Bottom Yet? Despite disappointing sales and disconcerting commentary, loading up on Tesla shares on the post-earnings dip may not be the worst of ideas, argued George Gianarikas, a senior Canaccord Genuity analyst in his research note today. On Thursday, Gianarikas reiterated his 'Buy' rating on the EV stock and raised his price target to $333, indicating over 10% upside from here, as 'we may have seen the bottom in growth trends with positive acceleration on the way.' According to him, the company's Q3 will benefit from U.S. consumers rushing in to buy an electric vehicle before the tax credits expire in September, and then in Q4 'they have promised new EVs, which should help the comps.' Wall Street Doesn't Agree With Gianarikas on Tesla According to other Wall Street analysts, however, Tesla stock is a 'wait-and-see' story at best. The consensus rating on TSLA shares currently sits at 'Hold' only with the mean target of about $298 still indicating potential downside from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
