Latest news with #Block
Yahoo
19 minutes ago
- Business
- Yahoo
Block's S&P Debut May Spark Massive Upside
Block (NYSE:XYZ) popped nearly 3% in early trading after JPMorgan's Tien?tsin Huang bumped his price target from $60 to $90, eyeing a 24% gain when the stock joins the S&P 500 on July 23. It's hard to ignore the upside when index funds are set to grab over 54 million sharesin other words, more than seven times its usual daily trading volume. Warning! GuruFocus has detected 6 Warning Sign with XYZ. Huang points out that this influx should juice liquidity and give the share price a lift just ahead of the rebalance. On top of that, faster product rollouts and sharper marketing have kicked new momentum into Block's merchant tools and Cash App offerings. His $90 target rests on a five times forward gross profit multiple, still below the seven to nine times range that many fintech peers command. That gap suggests there's room for investors to rerate Block alongside its inclusion boost. Wall Street expects second?quarter earnings per share of 67 cents per share, down about 28% YOY, and revenues of $6.27 billion when results land on August 7. Despite the fundamental headwind, inclusion?driven demand often outpaces those drags in the weeks around rebalance. For anyone watching fintech, the S&P debut and the Q2 print will be must?see events. They should set the stage for Block's next move higher. This article first appeared on GuruFocus.
CNBC
22 minutes ago
- Business
- CNBC
Stocks making the biggest moves midday: Block, SolarEdge, Cleveland-Cliffs, Verizon & more
Check out the companies making the biggest moves midday: Bruker — The lab instrument and tools maker shed 12% after the company issued weaker-than-expected guidance for the second quarter. The company expects to earn between 32 and 34 cents per share on revenue ranging from $795 million to $798 million. Analysts polled by FactSet expected a profit of 42 cents per share on revenue of $813.3 million. Block — The fintech stock surged 8% as it prepares to officially join the S & P 500 before the opening of trading on July 23. Block will replace Hess, which has been acquired by Chevron. Arrowhead Pharmaceuticals — The biotech company fell nearly 12%, adding to its steep decline from the previous session. Shares slid 11.1%, following those of Sarepta Therapeutics. Sarepta Therapeutics — The biotech stock tumbled 7% after the U.S. Food and Drug Administration announced following Friday's close that it was pulling its support for Elevidys, a gene therapy developed by Sarepta used to treat Duchenne muscular dystrophy, after another patient death. Shops such as Leerink Partners, Mizuho and Needham soon downgraded the stock. Alkermes — The biopharma company lost 9% after it announced Phase 2 trial results for its alixorexton drug, which aims to treat patients with narcolepsy type 1. EQT Corp. – Shares of the largest natural gas producer in the U.S. fell 8%, after CEO Toby Rice told The Financial Times that China will win the AI race unless Congress streamlines permitting for projects. Pinterest — Shares of the social media company jumped more than 2% after Morgan Stanley analyst Brian Nowak upgraded the stock to overweight from equal weight. Nowak highlighted Pinterest's attractive valuation along with "GPU enabled investments and budding engagement and monetization improvements" as the key reasons for his new rating. SolarEdge – The solar technology manufacturer's stock jumped 8% after analysts at Susquehanna increased their price target for the company to $26. But solar stocks face big headwinds as President Donald Trump's moves to end federal support for the sector. Dollar Tree — Shares added 2.2% upon an upgrade to overweight from equal weight at Barclays. Analyst Seth Sigman said he expects a "cleaner growth story" ahead. Cleveland-Cliffs — The steel manufacturer gained 13% after the company said it expected to spend less money than anticipated on capital expenditures and administrative expenses for the full year. That overshadowed a larger-than-expected loss for the second quarter. Verizon — The telecommunications stock rose 5% after posting second-quarter earnings of $1.22 per share on revenue of $34.5 billion. Analysts were expecting earnings of $1.18 billion on $33.74 billion in revenue, according to LSEG. Invesco — Shares added 1% after TD Cowen upgraded the investment management firm to a buy rating from hold. Analyst Bill Katz called Invesco's Friday announcement that it was requesting to migrate its QQQ exchange-traded fund to an open-end fund structure from a unit investment trust a "game changing event." — CNBC'S Spencer Kimball contributed reporting.
Yahoo
an hour ago
- Business
- Yahoo
S&P 500 and Nasdaq 100 Jump to Record Highs as Bond Yields Fall
The S&P 500 Index ($SPX) (SPY) today is up +0.54%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.41%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.72%. September E-mini S&P futures (ESU25) are up +0.53%, and September E-mini Nasdaq futures (NQU25) are up +0.73%. Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs. Lower bond yields are supportive of stocks, with the 10-year T-note yield down -6 bp to a 1-week low of 4.36%. Also, the strength in chip stocks today is boosting technology stocks and leading the broader market higher. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Option Volatility And Earnings Report For July 21 - 25 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! Some favorable corporate news is also supporting gains in stocks today. Block is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday. Also, Domino's Pizza is up more than +2% after reporting better-than-expected Q2 revenue, and Verizon Communications is up more than +2% after raising the lower end of its full-year earnings forecast. Recent trade news has put some downward pressure on stocks. Last Wednesday, President 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. Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Mr. Trump also imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don't relocate production to the US within the next year. The markets this week will focus on any tariff news along with the announcement of any new trade deals. On Wednesday, June existing home sales are expected to fall -0.7% m/m to 4.00 million. On Thursday, weekly initial unemployment claims are expected to climb by +6,000 to 227,000. Also, the July S&P US manufacturing PMI is expected to slip -0.4 to 52.5. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. 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 5% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17. The markets are awaiting a heavy slate of quarterly corporate earnings results this week, including Alphabet and Tesla on Wednesday. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. 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 today are mixed. The Euro Stoxx 50 is down -0.42%. China's Shanghai Composite rallied to a 9.5-month high and closed up +0.72%. Japan's Nikkei Stock 225 was closed today for the Marine Day holiday. Interest Rates September 10-year T-notes (ZNU25) today are up +14 ticks. The 10-year T-note yield is down -5.8 bp to 4.358%. Sep T-notes today rose to a 1-week high, and the 10-year T-note yield fell to a 1-week low of 4.354%. T-notes are climbing today on carryover support from last Friday when Fed Governor Christopher Waller said he backs a Fed rate cut at the July 29-30 FOMC meeting. T-notes also have carryover support from today's rally in 10-year German bunds to a 2-week high. European government bond yields today are moving lower. The 10-year German bund yield fell to a 2-week low of 2.611% and is down -7.7 bp to 2.618%. The 10-year UK gilt yield is down -6.1 bp to 4.613%. Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at Thursday's policy meeting. US Stock Movers Strength in chip stocks is supporting gains in the broader market. ARM Holdings Plc (ARM) is up more than +3% to lead gainers in the Nasdaq 100. Also, GlobalFoundries (GFS), ON Semiconductor Corp (ON), NXP Semiconductors NV (NXPI), Qualcomm (QCOM), and Broadcom (AVGO) are up more than +2%. In addition, Lam Research (LRCX), Intel (INTC), Advanced Micro Devices (AMD), and Applied Materials (AMAT) are up more than +1%. Block (XYZ) is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday. Verizon Communications (VZ) is up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials after raising the lower end of its full-year earnings forecast to +1% to 3% from a previous estimate of 0% to +3%. Equinix Inc. (EQIX) is up more than +2% after Elliot Investment Management said it has built up a stake in the company in an effort to get it to take steps to boost its share price. Pinterest (PINS) is up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $45. Dollar Tree (DLTR) is up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $120. Invesco Ltd (IVZ) is up more than +1% after TD Cowen upgraded the stock to buy from hold with a price target of $25. Natural gas producers are under pressure today, with nat-gas futures (NQQ25) plunging more than -6% to a 1-week low on forecasts for cooler US temperatures later this month. As a result, EQT Corp (EQT) is down more than -6% to lead losers in the S&P 500. Also, Antero Resources (AR) is down more than -6%, and Cheniere Energy (LNG) and Expand Energy (EXE) are down more than -5%. Sarepta Therapeutics (SRPT) is down more than -4% after it refused to pause all shipments of its Elevidys treatment after three deaths were linked to the company's gene therapies. Biogen (BIIB) is down more than -2% to lead losers in the Nasdaq 100 after Truist Securities downgraded the stock to hold from buy. Molina Healthcare (MOH) is down more than -2% after TD Cowen cut its price target on the stock to $283 from $369. Centene (CNC) is down more than -1% after TD Cowen downgraded the stock to hold from buy. Earnings Reports (7/21/2025) AGNC Investment Corp (AGNC), Alexandria Real Estate Equities (ARE), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Domino's Pizza Inc (DPZ), Equity LifeStyle Properties In (ELS), Medpace Holdings Inc (MEDP), NXP Semiconductors NV (NXPI), RLI Corp (RLI), Roper Technologies Inc (ROP), Steel Dynamics Inc (STLD), Verizon Communications Inc (VZ), W R Berkley Corp (WRB), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
an hour ago
- Business
- Yahoo
Robinhood Stock Stumbles S&P 500 Inclusion Is Once Again Off the Table for HOOD
Robinhood (HOOD) shares have rallied significantly in recent sessions as investors again anticipated the fintech's addition to the S&P 500 Index ($SPX). Chevron's (CVX) recent closure of its Hess acquisition has created a vacancy in the benchmark index, which many hoped would be filled HOOD. Instead, Block (XYZ) will fill the open spot. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Option Volatility And Earnings Report For July 21 - 25 Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! At the time of writing, Robinhood stock is trading well above 200% higher versus its April low and the company's market cap is fast approaching the $100 billion level. Why Index Inclusion Is a Big Deal for Robinhood Robinhood shareholders have been hoping for inclusion in the S&P 500 Index as it would likely serve as a major boost to the company's visibility and credibility among institutional players. The benchmark status triggers automatic buying from a long list of index-tracking funds and ETFs, which would likely increase demand and liquidity for HOOD shares. Index inclusion also goes a long way in improving perception of financial stability and long-term relevance, attracting broader investor interest. Additionally, it would put Robinhood stock in the same league as established blue-chip companies, potentially driving valuation multiples higher as well. All in all, the fact that Robinhood has been passed over again for inclusion has left its supporters feeling deflated that it will continue to miss out on these benefits. What Other Catalysts Could Drive HOOD Shares Up in 2025? Other than the potential addition of the financial technology firm to the S&P 500 Index, Citizens JMP analysts recommend owning Robinhood shares to play the crypto industry upside as well. The online trading platform stands to benefit as digital assets experience accelerated adoption into mainstream finance after President Donald Trump signed the 'GENIUS Act' into law on July 18, it told clients in a recent report. According to the Citizens JMP analysts, HOOD stock is worth buying at current levels since the company's growth prospects remain underestimated given the ongoing recovery in mergers and acquisition (M&A) and initial public offering (IPO) market. How the Rest of Wall Street Recommends Playing Robinhood Markets Investors should note, however, that other Wall Street analysts find Robinhood stock as likely overvalued at its current price. While the consensus rating on HOOD shares remains at 'Moderate Buy,' the mean target of about $90 indicates potential downside of more than 17% 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
Time of India
an hour ago
- Business
- Time of India
Block stock soars 8% after S&P 500 debut — analysts say the rally might be far from over
Block Inc. stock jumped 8% after it was added to the S&P 500 index. Shares also rose 9% in pre-market trading right after the news. Companies added to the S&P 500 usually go up because index funds are forced to buy their stock, creating extra demand, as per the reports. This index change will be official on July 23, before the market opens. Block is replacing Hess Corp., which is merging with Chevron in a $55B deal. After the news, Block's market value was around $44.8 billion, according to the report by Reuters. Explore courses from Top Institutes in Select a Course Category Leadership Technology Artificial Intelligence MBA Data Analytics PGDM Management Healthcare Others Data Science Degree Design Thinking Digital Marketing others Operations Management Public Policy CXO healthcare Project Management Product Management Cybersecurity Data Science MCA Skills you'll gain: Duration: 22 Weeks Indian School of Business SEPO - ISB Venture Capital & Private Equity India Starts on undefined Get Details Skills you'll gain: Duration: 18 Weeks 109820388 Strategic Marketing for Leaders: Leveraging AI for Growth Starts on undefined Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Senior Management Programme Starts on undefined Get Details Skills you'll gain: Strategic Thinking & Planning Competitive Advantage & Market Positioning Strategic Leadership & Decision-Making Change Management & Organizational Transformation Duration: 1 Year IIM Kozhikode IIMK Advanced Strategic Management Programme Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 12 Weeks IIM Kozhikode CERT-IIMK EPIS Async India Starts on undefined Get Details Skills you'll gain: Critical Thinking & Decision-Making Skills Power of Emerging Technologies Innovation and Drive Organizational Change Fostering a Culture of Innovation Duration: 9 Months MIT xPRO MIT Technology Leadership and Innovation Starts on May 14, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Advanced Strategic Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML SLP India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML SLP India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK-Women Leadership Programme INDIA Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Indore Executive Programme in Business Management Starts on undefined Get Details Skills you'll gain: Financial Accounting & Analysis Financial Instruments & Markets Corporate Finance & Valuation Investment Management & Banking Duration: 12 Months IIM Kozhikode IIMK Professional Certificate in Financial Analysis and Financial Management Starts on Mar 30, 2024 Get Details Skills you'll gain: Opportunities & Outlining Plans to use AI & ML Applying Data-Driven Business Innovation Best Practices Changing Culture to Integrate AI-Enabled Technologies Ethics, Privacy and Regulations in AI & ML Duration: 20 Weeks Indian School of Business ISB Leadership in AI Starts on May 14, 2024 Get Details Analyst reaction: Bullish signs JP Morgan's Tien-tsin Huang raised Block's price target from $60 to $90, keeping an Overweight rating. He said over 54 million shares may be bought due to index demand — 7x Block's average daily volume, as per theTipRanks report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 90s Icon: A Look at Her Today I Am Famous Undo ALSO READ: Opendoor Stock Skyrockets 30% to 52-Week High on optimism around business model and growth outlook Huang also believes Block deserves a higher valuation multiple thanks to faster product rollouts and strong marketing. He used a 5x forward gross profit for the $90 target — still below the 7x–9x range of other fintech companies, as per the reports. Live Events What happens next? Block's Q2 earnings will be out on August 7. Wall Street expects earnings per share (EPS) of $0.67 — down 28% year-over-year. Revenue of $6.27 billion, a small rise of 1.8%. TipRanks shows Block has a Moderate Buy rating from analysts, 28 Buys, 6 Holds, 2 Sells in the last 3 months. Average stock price target: $71.29, which shows 2.1% downside risk from current levels, as per the Reuters report. Block's Background & Innovation Block was founded in 2009 by Jack Dorsey and was first known as Square. In 2021, it was renamed Block to reflect its wider work in blockchain and crypto, according to the reports. Block builds tools for: Point-of-sale (POS) payments Peer-to-peer money transfers Bitcoin services It operates in both traditional finance and digital assets space. Analyst Stephen Biggar from Argus Research said Block earned the S&P spot due to its innovation, profits, and improving margins, as per the report by Reuters. Crypto growth boosts outlook Crypto payments are rising in 2024 and could grow more after President Trump signed a stablecoin regulation bill. This law helps dollar-pegged stablecoins go mainstream, which supports companies like Block. Financial performance: Mixed picture Block's revenue growth has slowed a lot. Three-year average growth was 13.3%, better than the S&P 500's 5.5%, but now it's just 4.6% year-over-year. In the last quarter, revenue fell 3.1%, from $6B to $5.8B, as per the Forbes report. ALSO READ: No taxes on overtime or tips? What the new proposal could mean for your paycheck Profitability Concerns Operating income was $1.8B, with an operating margin of 7.4% — that's low compared to others. Operating cash flow was $1.4B, with a 5.6% margin, way below the S&P 500 average of 14.9%.Net income was $2.6B, with a net margin of 10.9%, just under the S&P average of 11.6%. This shows Block may have non-operating gains, not strong core performance. Debt-to-equity ratio is 13.4%, better than the S&P 500's 19.4% average. Block has $13B in cash, which is 35.1% of its assets, giving it room to invest, acquire, or survive downturns, as per the Forbes reports. FAQs Q1. Why did Block stock go up after joining the S&P 500? Block stock rose because index funds had to buy it after its S&P 500 inclusion, increasing demand and price. Q2. Is Block a good stock to buy after the S&P 500 news? Analysts see growth potential after the S&P 500 boost, but warn of slowing revenue and profit challenges.
