Latest news with #BeataZawrzel
Forbes
23-05-2025
- Business
- Forbes
Why Buy Microsoft Stock?
Microsoft store in Manhattan, New York City, United States of America on July 16th, 2024. (Photo by ... More Beata Zawrzel/NurPhoto via Getty Images) Why would you want to pay 50x cash flow for Microsoft's (NASDAQ:MSFT) stock, when you can buy Nvidia at about the same price? Nvidia's revenues are growing close to 100%, Microsoft's at 15%. Yes, not 50%, but 15%. What's worse - Nvidia's cash flow margins are about 47%, almost 1.7x Microsoft's margins. In other words, more of that top line growth that Nvidia gets - makes its way to free cash flow! Cash that can be reinvested or distributed to investors as return. Good thing, who can argue? But Nvidia comes with large risk. Our High Quality (HQ) portfolio diversifies away stock-specific risks while giving exposure to upside, and has outperformed the S&P 500, the Nasdaq, and Russell 2000 - and has clocked > 91% returns since inception. Well, you could argue - Microsoft is a known, stable game. For more than 40 years, this thing has been running like a machine. Nvidia's phenomenal growth is recent - it might fizzle. AI might fizzle. Large AI models might fizzle - or worse, deemed unnecessary. Deepseek showed small models work just as well, right? They didn't even use Nvidia's latest chips. However, what are the odds that Nvidia's chips will cease to be the hottest date in town? There lies the guesswork. Nvidia revenues grew more than 80% annually, on average, in the last 3 years - and last year grew more than 100%. Could this drop to 60% or 40% growth? It has to - soon! Nvidia's biggest customers are the likes of Microsoft, Google, Meta, and Amazon. These companies, each of them, spent more than tens of billions last year on Nvidia chips. Can Microsoft, Google, and others continue to spend 100% MORE on Nvidia chips next year? And the year after? Can they do it while their own revenue grows only 15% annually? The answer is absolutely not. The Nvidia 80-100% growth music has to stop at some point. When this high pitched growth music stops, Nvidia's valuation will drop. A lot. But then, it might continue at a slower pace, at 20-30%, not bad, but not ridiculously high either. That's why you build a portfolio. A resilient one. Balance risk-reward. We did it in spades with the Trefis High Quality (HQ) portfolio. Balancing risk-reward is how HQ outperformed the S&P 500, the Nasdaq, and Russell 2000. HQ outperformed all of them, and clocked >91% returns since inception. That's why you buy a little bit of Microsoft, or Google, META, and Amazon. Comparison as a tool: The purpose of comparing Microsoft with Nvidia is all about understanding the risk-reward tradeoff of an investment of interest, in this case Microsoft. In practice, investment decisions are about understanding relative attractiveness. Buy Microsoft stock or keep your money as interest earning cash? Or buy an ETF on the S&P 500? Is expected return on Microsoft stock more than that on cash - by how much? What's the downside risk you bear to earn that extra return on Microsoft? Drawing contrast with a specific 'anchor' asset, in this case Nvidia and Microsoft, serves as a powerful tool to assess the risk-reward tradeoff. Note: Always use an appropriate comparison for a ticker. Microsoft example was about 'growth' and reasonably high valuation. A comparison with Nvidia provides interesting perspective as the stock offers much more at a similar valuation (FCF based) - but also carries with it, a huge downside risk. It is exactly this downside risk, versus relative upside tradeoffs we made - at scale, in constructing the Trefis High Quality (HQ) Portfolio. With a selection of 30 stocks, it has demonstrated a history of comfortably outperforming the S&P 500 over the past 4-year span. What accounts for this? As a collective, HQ Portfolio stocks achieved superior returns with reduced risk compared to the standard index, with a smoother performance evident in HQ Portfolio performance metrics.
Yahoo
08-05-2025
- Politics
- Yahoo
What do the robe colors mean at the Vatican conclave?
(NEXSTAR) – At the final Mass at the Vatican Wednesday before the secretive conclave process officially kicked off, a sea of red and purple robes were visible in St. Peter's Basilica. The wardrobe choices weren't a matter of taste – each robe symbolizes something different. The red robes are worn by all 133 cardinals deliberating who will replace Pope Francis. The original reason cardinals started wearing red is disputed, but the hue is often said to represent the blood of martyrs or to show cardinals' willingness to die for their religion. A live stream of the cardinal electors inside the Sistine Chapel in Saint Peter's Basilica on the first day of the conclave during which the cardinals will elect the new pope. On May 7, 2025 in Vatican City, Vatican. (Photo by Beata Zawrzel/NurPhoto via Getty Images) Meanwhile, bishops and archbishops, who don't rank quite as highly as cardinals and don't participate in the conclave to pick the next pope, wear a shade of purple. According to Rev. Msgr. William J. King, the magenta-like shade is seen as a way to honor the suffering of Jesus Christ, imitating the color of his cloak during his trial. Archbishop Diego Giovani Ravelli could be seen in purple vestments closing the doors to the Sistine Chapel (below) on Wednesday. A giant screen in St Peter's Basilica shows Vatican Master of Ceremonies Archbishop Diego Giovanni Ravelli closing the doors to the Sistine Chapel after calling out 'extra omnes', Latin for 'all out,' during the cardinals' conclave to elect a new pope at the Vatican, Wednesday, May 7, 2025. (AP Photo/Bernat Armangue) Red and purple are often worn by Catholic clergy during other times of the year. Red is typically seen during Good Friday and feast days for martyrs, reports The Vicksburg Post, and purple is worn during Lent and Advent. The highest-ranking member of the Catholic Church, the pope, is typically seen in white and gold. These colors symbolize the birth and resurrection of Christ, and the pope wears them as the closest representative of the prophet, according to ABC News. Red and purple aren't the only key colors people are looking out for at the Vatican this week. The color of smoke emitted from the Sistine Chapel's chimney indicates when a new pope has been chosen. Wednesday's conclave session ended with black smoke, meaning no pope was chosen. White smoke would indicate that a new pope has been elected. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to Queen City News.
Yahoo
07-05-2025
- Politics
- Yahoo
Conclave schedule: How the Catholic church picks a new pope
The Brief The papal conclave begins on May 7. The process of choosing a new pope will take place at the Sistine Chapel. Once a new pope is chosen, white smoke will billow from a chimney over the Sistine Chapel. The process of choosing a new pope , or papal conclave, begins today, May 7. The date was chosen by all cardinals who gathered at the Vatican for the fifth General Congregation, according to Vatican News. The centuries-old tradition will take place in the Sistine Chapel, which will remain closed to the public during the conclave. Schedule of events Timeline May 7: Conclave begins All 133 cardinal electors will attend a Eucharistic celebration in the morning, according to Vatican News. In the afternoon, electors will head to the Sistine Chapel where they will take an oath of secrecy. Following the oath, the Master of Pontifical Liturgical Celebrations will deliver a meditation. During this time, electors can reflect on the importance of choosing their new pontiff. Prayers are recited and anyone with last-minute questions are permitted to ask them at this point. Once electors are clear on the procedures and rules, the election process starts. There will be one round of voting on Wednesday. If no one is elected, the cardinals will hold their evening prayer service and retire for the night. Statue of Saint Peter in front of St. Peter's Basilica a day ahead of the conclave. Vatican City, Italy on May 6th, 2025. (Photo by Beata Zawrzel/NurPhoto via Getty Images) By the numbers On Thursday, the first full day, the cardinals will have morning prayers and head into the Sistine Chapel around 9:30 local time. There will be two rounds of voting in the morning and then two more rounds in the afternoon. They will once again retire for prayers and rest if no one is elected by the evening. After each session, smoke from burning ballots will signal the result: Black smoke means no pope was selected; white smoke means "habemus papam" – we have a pope. At that point, the new pontiff will be expected on the balcony overlooking St. Peter's Square within an hour. Because the ballots are only burned once in the morning and once in the evening, the smoke signals will likely be seen around midday local time and then late afternoon. Vatican City is currently six hours ahead of the U.S. East Coast, so that means the expected smoke times are around 5 to 7 a.m. ET and then 10 a.m. to 12 p.m. How many votes are needed to elect a pope? Dig deeper The voting process works similar to how the U.S. federal government: a two-thirds majority is required to choose the next pope. Each cardinal writes his choice on a piece of paper and drops off their twice-folded ballot in a large chalice one by one, according to the United States Conference of Catholic Bishops website. Cardinals must be under 80 years old to cast a vote for a new pope. Four rounds of balloting take place every day until a candidate receives the necessary number of votes. What happens once all votes are in? The result of each ballot is counted aloud and recorded by three cardinals who are designated recorders. If none of the candidates receives the necessary two-thirds of the vote, the ballots are burned in a stove near the chapel. Chemicals that are added to the stove will produce black smoke, signifying a pope has not been chosen yet. What happens when a candidate wins? When a candidate receives two-thirds of the vote, the dean will ask him if he accepts the election. If he accepts, he chooses a papal name and wears the papal vestments before he goes out to the balcony of St. Peter's Basilica and delivers his first public words as pope. The ballots of the final and deciding vote are burned to produce white smoke to signal to the world a new pope has been chosen. The Source Information for this article was taken from previous reporting by FOX Local, Vatican News, and the United States Conference of Catholic Bishops website. This story was reported from Los Angeles.
Yahoo
06-05-2025
- Business
- Yahoo
Philips Stock Falls After Company Cuts Margin Guidance, Citing Tariffs
Beata Zawrzel / NurPhoto via Getty Images Advisor Insight Koninklijke Philips shares are falling Tuesday after the Dutch conglomerate said it had cut its earnings margin target due to tariffs. The medical equipment producer, which announced the new guidance as it posted better-than-expected quarterly sales, said it was reducing its full-year adjusted earnings before interest, taxes, and amortization margin target. 'Philips' outlook for full year 2025 is updated to include the assumed impact of currently announced tariffs,' the company said. Shares of medical equipment company Koninklijke Philips (PHG) shares are dropping Tuesday after the Dutch conglomerate said it had cut its target profit margin due to tariffs. The company, which announced the new guidance as it posted better-than-expected quarterly sales, said it was reducing its full-year adjusted earnings before interest, taxes, and amortization (EBITA) margin target. Its first-quarter adjusted EBITA margin had fallen 80 basis points year-over-year to 8.6%. 'Philips' outlook for full year 2025 is updated to include the assumed impact of currently announced tariffs,' the company said, citing an 'uncertain macro environment.' 'This includes current bilateral US-China and rest of world tariffs, the resumption of the paused US tariffs on July 9 and excludes potential wider economic impact," the company said. It kept its comparable sales growth forecast unchanged at between 1% and 3%. The company said it projects its full-year adjusted EBITA margin range to be 10.8%-11.3%, including an estimated net tariff impact of 250-300 million euros after 'substantial tariff mitigations.' That amounts to a 100 bps reduction versus the previous forecast. The lowered guidance comes as the company posted first-quarter sales that beat analysts' estimates. The company posted revenue of 4.1 billion euros versus a 4 billion euros consensus forecast from analysts polled by Visible Alpha. The company's shares are down a bit more than 2% this year. Read the original article on Investopedia
Forbes
05-05-2025
- Business
- Forbes
Is NY Times' Poised For A Post-Earnings Rally?
New York Times building in Manhattan, New York City, United States of America on July 16th, 2024. ... More (Photo by Beata Zawrzel/NurPhoto via Getty Images) The New York Times' stock (NYSE: NYT) is set to announce its fiscal first-quarter earnings on Wednesday, May 7, 2025, with analysts anticipating earnings of 34 cents per share on $635 million in revenue. This would indicate a 42% year-over-year increase in earnings and a 7% rise in sales compared to the previous year's results of 24 cents per share and $594 million in revenue. Historically, the NY Times' stock has tended to outperform after earnings announcements, increasing 60% of the time with a median one-day gain of 3.9% and a maximum observed gain of 12%. Looking forward to Q1 2025, NYT expects year-over-year growth of 14% to 17% in digital-only subscription revenue, along with a mid-single-digit rise across other revenue streams. Adjusted operating expenses are projected to increase by 5% to 6%, attributed to planned investments in technology and content creation. The company's legal stance regarding intellectual property and its ongoing technological efforts are crucial to its strategy for maintaining competitive advantage and subscriber engagement. The NYT currently holds a market capitalization of $8.5 billion. In the past twelve months, it reported $2.6 billion in revenue, with $351 million in operating profit and $294 million in net income. For event-driven traders, historical trends can provide an advantage, whether by positioning prior to earnings or responding to post-release movements. If you're aiming for upside with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative, outperforming the S&P 500 and achieving returns over 91% since its inception. See earnings reaction history of all stocks. Here are some insights on one-day (1D) post-earnings returns: Further data for observed 5-Day (5D) and 21-Day (21D) returns post-earnings is summarized in the table below along with the statistics. NYT 1D, 5D, and 21D Post Earnings Return A relatively lower-risk approach (though not ideal if the correlation is low) is to analyze the correlation between short-term and medium-term returns following earnings, identify a pair with the highest correlation, and execute the appropriate trade. For instance, if 1D and 5D demonstrate the strongest correlation, a trader can adopt a 'long' position for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns. NYT Correlation Between 1D, 5D, and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), resulting in strong returns for investors.
