Latest news with #DiscoverFinancialServices
Yahoo
8 hours ago
- Business
- Yahoo
Jim Cramer Calls Capital One Financial (COF) a 'Tremendous' Buy
We recently published a list of . In this article, we are going to take a look at where Capital One Financial Corporation's (NYSE:COF) stands against other stocks that Jim Cramer discusses. Talking about deregulation, Cramer noted that Capital One Financial Corporation's (NYSE:COF) merger with Discover Financial Services was possible under the new administration. 'There are many reasons why Trump won in November, inflation, immigration, cultural backlash, but there's one reason why the business community got behind him in a way they never really did in 2016 or 2020, and that's deregulation…[Referring to the Fed's decision to remove Wells Fargo asset cap restriction] This one comes on the heels of the decision by the administration to let Capital One merge with Discover Financial, okay. A smiling face of a customer as they make a deposit at this company's branch. Capital One Financial (NYSE:COF) provides a range of banking and lending products, including credit cards, loans, deposit accounts, and online banking services, while also offering advisory and treasury management solutions. Overall, COF ranks 14th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of COF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
22-05-2025
- Business
- Yahoo
Coinbase on S&P 500, Novavax vaccine, Tesla: Trending Tickers
Coinbase Global (COIN) will begin trading on the S&P 500 (^GSPC) effective today, replacing Discover Financial Services (DFS) on the exchange. The US Food and Drug Administration (FDA) approves Novavax's (NVAX) COVID-19 vaccine, sending the pharmaceutical stock surging. Tesla (TSLA) is adding former Chipotle Mexican Grill (CMG) CFO Jack Hartung to its board of directors, effective June 1, when Hartung will be stepping down as the restaurant chain's president and chief strategy officer. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. It's now time for some of today's trending takers. This morning we're watching Coinbase, Novavax and Tesla. First up, Coinbase officially replacing Discover Financial Services on the S&P 500. Coinbase is the first crypto firm to join the index. Here's what CEO Brian Armstrong told Yahoo Finance's Jennifer Schonberger about the inclusion. Coinbase joining the S&P 500 means crypto's here to stay. It's going to be in everybody's 401Ks. Um everyone's going to have crypto exposure, you know, at least indirectly through Coinbase, which is great. Stock was up more than 30% last week ahead of the inclusion despite news of a hack that is expected to cost the company over $400 million. Still here with me to discuss we have Amy Woo Silverman. Amy, I know you look at the options market when you're talking about individual stocks. What are you seeing around Coinbase? It's really interesting because I think just what Armstrong had sent there is very symbolic of kind of old guard being transferred to new guard. Um in terms of Coinbase specifically around the options, it's just this idea overall that if crypto becomes normalized, you're going to really see a change in correlations. And what I mean by that is cryptocurrency in general has really been this risk on asset and Coinbase to some degree has traded along with that correlation, but as it becomes thought of more as just a normal part of what people as he said have in their 401Ks, I think it then people start rethinking its relationship. Maybe it acts like digital gold. Maybe it really is an inflation hedge. We're not seeing those yet, but I do think you start to see investors think of both Coinbase and crypto in general as part of that cohort and managing those risks. Yeah, something of a change to what drives the trade on that stock potentially. Really interesting. We're going to move on though to Novavax's COVID vaccine getting full approval from the FDA. This after the clearance was delayed when Health and Human Services Secretary, Robert F. Kennedy Jr. raised doubts about its efficacy. The shot is cleared for adults 65 and older and those ages 12 to 64 who have at least one underlying condition that puts them at high risk. Of course, this comes amid record COVID cases in parts of the globe. We got the shares up 10%, but Amy, they were up as much as 18% earlier today. I'm interested in why the street sees this as such a big catalyst for Novavax. Yeah, I think it's just comes down to what was priced in prior and then the surprise that they got so it perhaps that had something to do with it. I will tell you in general when you think about not only the options for Novavax, but U&H for healthcare, it's been incredibly elevated when we look at our liquid universe of all sectors. Healthcare has across the board had held the most uncertainty related to what Trump has hang, but also related, I would say to just much more idiosyncratic risk related to a lot of these factors like FDA approval or maybe the disapproval of a trial that you don't get in other stocks. Perhaps a signal of how much policy uncertainty there is in that sector. So much. Yeah, absolutely. Really good stuff. We're also going to talk about Tesla leading declines among the magnificent seven today. The electric vehicle maker adding a new board member, retired CFO, Jack Hartung's appointment is effective coming up on June 1st, but Tesla again leading declines in the mag 7 this morning is down a little over 2%. This is always a fun one to talk options on Amy. What are you seeing with Tesla? So I will tell you Tesla is a name I never want to give up on because when I think back to its options history, it has the most severe form of what we call skew inversion, but it's a really simple way of saying, I've never seen such exuberance in the call options as I have on a stock like Tesla, and that's faded a lot, but we always watch for if that ticks back because that creates enormous amount of momentum in the stock that you have to be careful of. It happens in Tesla, maybe Nvidia, but not very many names exhibit this the way you see in Tesla. How can investors monitor that? So take a look at how the call option pricing trades relative to the put option pricing when that starts to go kind of above and beyond what the normal relationship of that spread is, then you're starting to see that momentum build in the stock again. Really, really important context there, Amy. Thank you so much. For our audience, you can scan the QR code below to track the best and worst performing stocks with the Yahoo finances at trending at ticker's page. 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
22-05-2025
- Business
- Yahoo
Discover Financial Services (NYSE:DFS) Is Headed To Disrupt Mastercard & Visa, Says Jim Cramer
We recently published a list of Jim Cramer Shares Thoughts On Big Tech As Part Of These 12 Stocks. In this article, we are going to take a look at where Discover Financial Services (NYSE:DFS) stands against other stocks that Jim Cramer recently discussed. In a recent appearance on CNBC's Squawk on the Street, Jim Cramer discussed the trade deficit, interest rates, and apprehensions about the US budget deficit. He commented on the divide in thinking between older and younger people. While younger people prefer Bitcoin due to ballooning deficits, older people are more relaxed. According to the CNBC host: "I think that older people just kind of laugh at this. And just say, I've been through this. They're not going to make any changes in Congress. So it's gonna be one-off. It'll be down. Then some people say to me, hey listen, this is going to be the Achilles Heel for the President. If they don't get this, if rates keep going, then we're gonna get into a whole new thing about inflation. Look rates should [be] higher, judging on the deficit. But again what you said, is where are they gonna go?" However, Cramer's also disappointed in the Trump administration's efforts to reduce the deficit. While Elon Musk is adamant that his DOGE department has reduced spending, Cramer thinks otherwise as he remarked: "I just thought that we were going to have the budget cut because of DOGE. It's obviously didn't work." Another bit of financial news that rocked markets recently was Moody's decision to cut America's credit rating from a perfect AAA to AA+. Cramer wasn't surprised as he remarked: "I mean, I look at it as someone who just says, how could they not try to cut this deficit? How could they continue to be part of the problem. So I understand the downgrade, but I also understand the notion that if the Republican Party is no longer the party of fiscal responsibility, who is? Who is responsible?" To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on May 19th. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders In Q4 2024: 91 Discover Financial Services (NYSE:DFS) is an American digital bank whose shares have gained 14.8% year-to-date. Over the year, the stock is up by 61% due to the firm being acquired by Capital One. Cramer has commented on the deal multiple times, and he is quite optimistic about it. In his previous remarks, he termed the deal as "totally disruptive." This time around, he explained the potential disruption in detail: "I think, I think that Richard Fairbank, the genius who runs Capital One, could very well use the Discover network to go against Mastercard, Visa, and American Express cause it has a lower [inaudible]. How do you like that? They have a hundred and twenty million cards! They have a hundred and twenty million cards! Why couldn't they have their own network? Why couldn't they just tell the retailers look this is what we're going to use from now on and we're gonna save you a lot of money." Overall, DFS ranks 12th on our list of stocks that Jim Cramer recently discussed. While we acknowledge the potential of DFS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DFS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
Capital One Strengthens Credit Card Business with Discover Acquisition
Capital One Financial Corporation (NYSE:COF) has strengthened its edge as a leading provider of credit card services with the acquisition of Discover Financial Services. On May 18, the company confirmed the completion of the $35 billion acquisition, poised to result in the largest credit card firm by loan volume. Additionally, the merger results in a solid combined company able to change banking for millions of customers. A finance executive with a satisfied smile reviewing a pile of documents in their office. The closing of the $35 billion deal comes against the backdrop of heightened scrutiny from Democratic lawmakers last year amid concerns it would reduce competition in the industry. There have been concerns that Capital One Financial will have an unfair advantage, an edge that could end up harming low-income customers. Amid the concerns, Discover Financial Services will continue to offer Discover credit card products with other consumer cards offered by Capital One in a bid to alleviate the antitrust concerns. Capital One has also reiterated its commitment to supporting local communities and expanding economic and financial opportunities as part of a $265 billion Community Benefits Plan. The completion of the Discover Financial Services acquisition comes on the heels of Capital One Financial delivering impressive Q1 2025 results, whereby profit rose significantly, helped by higher income on interest payments on credit card debt. Net interest on its credit card business grew 7% to $8.01 billion as non-interest income rose 4% to $1.99 billion. While we acknowledge the potential of Capital One Financial Corporation (NYSE:COF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BMRN and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. 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
20-05-2025
- Business
- Yahoo
Capital One Acquires Discover, Reshapes U.S. Credit Card Industry
After almost 15 months of announcing an agreement to acquire Discover Financial Services, Capital One COF has finalized the takeover. The $35-billion transaction reshapes the landscape of the credit card industry, creating a behemoth (in terms of loan volume).With the deal completion, Capital One is well-placed to capture a bigger share of spending on cards and compete with well-known card issuers – Visa V and Mastercard MA. Further, the company now has control of Discover's payments network—one of only four in the United States. This will enable it to generate greater revenues from interchange fees and offer independence from the Visa-Mastercard path to completion was far from smooth. While Capital One and Discover shareholders approved the transaction in February, the deal underwent extensive regulatory scrutiny. Final approval came last month from the Federal Reserve and the Office of the Comptroller of the Currency, after the U.S. Department of Justice opted not to challenge the the green light came with conditions: Capital One must address outstanding enforcement issues tied to Discover. In 2023, Discover revealed that it had overcharged merchants on certain credit card transactions since 2007—a disclosure that drew regulatory attention and required corrective One's acquisition of Discover signals a new era in consumer finance, potentially reshaping competition and innovation across the credit card and payments landscape. Under the terms of the agreement, Discover shareholders received 1.0192 Capital One shares for each Discover share. Also, three members from Discover's board of directors – Thomas G. Maheras, Michael Shepherd and Jennifer L. Wong – have joined Capital the time of the announcement (February 2024), it was noted that the Capital One-Discover merger will likely generate and deliver attractive accretion and returns for shareholders. Expense synergies of $1.5 billion in 2027, coupled with network synergies of $1.2 billion, underscore the value-creation potential of the merger. The transaction will result in a more than 15% accretion to adjusted non-GAAP EPS by transaction will also bolster Capital One's balance sheet. On a pro forma basis, the combined entity would have a CET1 ratio of roughly 14% at closing. At present, there will be no change to the Capital One and Discover customer accounts and banking relationships. All the customers will be provided with comprehensive information in advance of any changes. Additionally, Capital One plans to continue to offer Discover credit card products as Discover-branded cards as well as the other consumer cards currently offered by Capital One. Capital One's "Digital First" banking model, characterized by its iconic customer experience and fee-free offerings, will be bolstered by Discover Financial's national direct savings bank. This synergy will increase the combined company's ability to compete with the nation's largest banks while accelerating national banking the years, COF has pursued a strategic acquisition strategy to diversify its offerings and expand its market presence. Some of the notable ones are ING Direct USA, HSBC's U.S. Credit Card Portfolio and TripleTree. These acquisitions have been instrumental in transforming the company from a monoline credit card issuer into a diversified financial services firm with a significant presence in retail banking, commercial lending and digital banking the past year, shares of Capital One have rallied 40.3%, outperforming the industry's growth of 39%. Image Source: Zacks Investment Research At present, COF carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
