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Yahoo
a day ago
- Business
- Yahoo
Meta, Robinhood & AppLovin, Circle: Trending Tickers
Catalysts host Madison Mills and Citizens JMP Securities CEO Mark Lehmann discuss some of the day's top trending stories. Meta (META) is reportedly planning a multibillion-dollar investment in artificial intelligence (AI) startup Scale AI to expand its tech edge, according to Bloomberg. Robinhood (HOOD) and AppLovin (APP) are falling after not being added to the S&P 500 (^GSPC) during the index's quarterly rebalance. Circle Internet Group's (CRCL) continues to climb since its initial public offering (IPO). 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 tickers. We are watching meta, Robin Hood and App Lovin and Circle. First up meta and talks to make a multi-billion dollar investment into artificial intelligence startup scale AI. This according to a report from Bloomberg. Now the financing could exceed $10 billion, which would make it one of the largest private company funding events of all time. Mark is still here with me to discuss. Mark, what do you make of this deal from meta? Why does it make sense for them? Well, it's AI all the time. Uh, and I think like meta has certainly become one of the beneficiaries of that, of the publicly traded companies who have taken advantage of what they have in their core base and their uniqueness of their data. And I think we've my analyst Andrew Boon has been saying that for a very long time. We've had to stick with the winners theme at citizen for a while, and I think meta is certainly a winner there, and they want to promote, um, and accelerate what they're already doing. I think it's a great idea for them and frankly, it's a modest investment for them. It's really modest when you think about that at a big scale potential. Yeah, I think that context is really important too because it might be a big deal when it comes to the private company side, but for meta, it's not necessarily a ton of cash. All right, well, next up, let's talk about Robin Hood and App Lovin failing to gain inclusion into the S&P 500. S&P Dow Jones Indices is making no changes to the S&P 500 and it's quarterly rebalancing. Before the rebalancing, a number of analysts had named Robin Hood and App Lovin as contenders to join the index, both stocks getting hit off the back of that news, Robin Hood down nearly 7%, App Lovin down almost 6%. Were you surprised by this at all, Mark? You know, playing the add subtract game is a hard one. It's been going on for my 30 years on Wall Street. Uh, I was a little surprised. I think it's an eventuality, frankly, with Robin Hood. Uh, and Devin Ryan, who you know well, our analyst thinks the same. Uh, we also think Robin Hood, um, is really one of the prime beneficiaries of the next decade about what they're creating, something scalable, something not really replicable and unique and a great brand. So we are very bullish on Robin Hood. Playing the add game is tough. Uh, sometimes it works really wonderfully and today it's not so much, but I think it's an eventuality. It's just a reminder too to folks about the importance of these rebalancing decisions and the degree to which they weigh on the S&P. It really is, and it's a big testament to the right companies that they want to add. They take this very seriously as they should. And I think it's really important. Um, you look at the adds and subtracts over time and not only the indexes, look at what they do with the Dow over time. Think about what was in the Dow 10, 15, 20 years ago, um, and, you know, adding Salesforce when they did, a 25 year old, they added it. I think it's five, six years ago. But when they added that, think about what that was a testament to what Mark Benioff has built, and it's a 25-year-old company. So I think those kind of statements are quite important. S&P is obviously a much bigger index, and they they take this real seriously as they should. As they should, absolutely. Well, finally, here, let's talk about circle continuing to climb after its strong Nasdaq debut. The stable coin issuer soaring 168% on Thursday, raising more than $1 billion in its IPO. And you can see those climbing shares continuing here up nearly another 16%. Is this just going to keep happening every day with Circle? Probably not. Um, I've seen this movie before in 2000. Uh, I by no means I'm saying this is analogous to 2000 with some of the internet stocks that took this kind of move higher. Um, there's a scarcity value. There are very few IPOs. We just talked about that. There'll be more. Um, we launched on eToro today with when public about a month ago, that's similarly doing well, not quite as well as that, but, um, there's scarcity value and people want to play this market, and there's very few ways to play that. And I think they're benefiting from that. There's not a lot of float. Right. That's what happens. Right. Exactly. Yeah, great overview, Mark. Thank you. Inicia sesión para acceder a tu cartera de valores
Yahoo
a day ago
- Business
- Yahoo
IBKR Left Out of the S&P 500: Time to Buy the Dip or Wait it Out?
Shares of Interactive Brokers Group IBKR, a potential candidate for the S&P 500, sank 3.4% yesterday on non-inclusion in the benchmark index. On Friday, S&P Dow Jones Indices announced no changes to the S&P 500 during its quarterly such, investors turned bearish on IBKR and other potential candidates, including Robinhood Markets HOOD. Robinhood closed the session yesterday down 2%.Online brokers like IBKR, Robinhood and Charles Schwab SCHW have been benefiting from heightened market volatility and a rise in client activity on tariff concerns and rising geopolitical risks. The trend is expected to continue as markets and investors try to decipher the impact of tariffs on various sectors. Hence, over the past three months, shares of these brokerage firms – Interactive Brokers, Robinhood and Schwab – have been rallying. Further, these stocks have outperformed the industry in the same time frame. Three-month Price Performance Image Source: Zacks Investment Research As IBKR stock dipped yesterday, let's find out whether this is a buying opportunity. Global Exposure Through Product Diversification: IBKR has been taking several steps to enhance its presence globally. In May, the company extended trading hours for its Forecast Contracts to about 24 hours a day, which will boost its trading income. This move comes nearly a month after it launched Forecast Contracts in Canada, allowing investors to trade on the outcomes of several events impacting markets. In February, the company announced the expansion of its offering of Stocks and Shares Investment Savings Accounts with the addition of mutual funds in the U.K. This would allow investors to access a wide range of investment products in a tax-efficient savings vehicle, along with advanced trading platforms, low fees and global diversification. Last November, IBKR launched Plan d'Epargne en Actions accounts to boost its offerings to its French clients. Also, the launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile company was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week. IBKR Lite has enabled investors to trade commission-free. Further, it launched cryptocurrency trading via Paxos Trust Company, charging lower commissions compared to other crypto exchanges. The introduction of IBKR Desktop, the next-generation desktop trading application for Windows and Mac, marks a new chapter for company's technological superiority, combined with easier regulations to improve product velocity, will support its net revenues through higher client Excellence: Interactive Brokers' technological superiority remains one of its strongest aspects. The company processes trades in stocks, futures, options and forex on more than 150 exchanges across several countries and currencies. IBKR's compensation expense relative to net revenues (10.8% in the first quarter of 2025) remains below its industry peers due to its superior technology. Further, the company has been emphasizing developing proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. Total net revenues witnessed a compound annual growth rate (CAGR) of 21.8% over the last five years (2019-2024). The momentum continued in the first three months of 2025. Net revenues are expected to improve further in the quarters ahead, given the solid DART numbers and robust trading backdrop driven by higher market participation. IBKR's Sales Estimates Image Source: Zacks Investment Research IBKR shares appear inexpensive relative to the industry. The company is currently trading at a 12-month trailing price-to-tangible book (P/TB) of 1.29X, well below the industry's 2.88X. Price-to-Tangible Book Ratio (TTM) Image Source: Zacks Investment Research Also, the stock is trading below its peers, Robinhood and Schwab. At present, Robinhood and Schwab's 12-month trailing P/TB TTM are 8.84X and 7.74X, a valuation perspective, Interactive Brokers shares present a compelling buying opportunity. The stock is still trading at a discount as the market has not yet fully recognized or priced the company's growth prospects. Over the past two months, the Zacks Consensus Estimate for 2025 and 2026 earnings has been revised 3.6% and 3.4% downward to $7.06 and $7.56, respectively. Estimate Revision Trend Image Source: Zacks Investment Research The projected figures imply a rise of 0.4% and 7.1% for 2025 and 2026, respectively. Interactive Brokers remains well-positioned for growth in the current volatile operating environment. Also, rapidly evolving trends will benefit the company's revenues and expand its market share. The company's strong technological capabilities and diversified product offerings enhance its global reach, supporting long-term growth. Also, undervalued shares are another Interactive Brokers has witnessed a persistent rise in non-interest expenses over the past few years. Expenses witnessed a CAGR of 13.8% over the five years ended 2024, with the trend persisting in the first quarter of 2025. Expenses are likely to remain elevated due to continued investment in franchises, product launches and technology upgrades. Further, rising geopolitical risks, foreign exchange fluctuations and tariff concerns are likely to affect global growth prospects, as reflected in the bearish analyst investors must watch for these headwinds and, for now, refrain from buying Interactive Brokers shares. Those who own the stock may consider selling it. At present, IBKR carries a Zacks Rank #4 (Sell). 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 The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Robinhood Traders Playing S&P Index-Guessing Game Get Schooled
(Bloomberg) -- In the end, Robinhood Markets Inc. found itself caught in the same kind of trade its users favor: One driven more by speculation than certainty. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. NYC Mayoral Candidates All Agree on Building More Housing. But Where? US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Last week, traders were speculating Robinhood would be added to the S&P 500 as part of the index's quarterly rebalancing. Shares of the online brokerage climbed every day in anticipation, setting four consecutive all-time highs and gaining 13% across five sessions. But, instead of cementing Robinhood's place as a contender with Wall Street's traditional finance firms, late-afternoon Friday proved to be a disappointment to a cohort of traders watching for the announcement at the usual 5:15 p.m. time in New York. S&P Dow Jones Indices had made no changes to the iconic stocks benchmark, in turn schooling traders on the risk of front-running index decisions made behind closed doors. Robinhood shares duly slumped as much as 8.4% intraday before closing 2% lower on Monday, giving back some of their recent rally. 'There's some air popping out of the balloon,' said Dan Dolev, an analyst at Mizuho Securities, who rates Robinhood outperform. 'I don't like it because I'm very bullish, but it makes sense to see the pullback.' While Robinhood's market capitalization has climbed above the S&P 500's $20.5 billion eligibility threshold, the committee overseeing the index weighs additional factors, including governance, liquidity and market representation. Other candidates, such as mobile advertising company AppLovin Corp., also fell on Monday after being left out. In an April note, Stephens Managing Director Melissa Roberts flagged that the index 'may not need to make changes as aggressively' in the June rebalance because several index members are acquisition targets. 'There is the possibility that the index committee feels less compelled to be as aggressive as they have been in recent quarters regarding discretionary index changes,' Roberts said on Monday. Robinhood didn't respond to a request for comment. An S&P Dow Jones Indices spokesperson pointed back to their methodology, which said that announcements of additions and deletions for the S&P 500 Index are made at 5:15 p.m. Zero-change rebalances are rare but not unprecedented. The last time the committee skipped making any adjustments was in 2022. Still, the stock's potential inclusion was subject to speculative debate on Reddit investing boards leading up to the announcement. 'The problem with the Robinhood example is that it shows how much individual investors are putting momentum ahead of fundamentals,' said Matt Maley, chief market strategist at Miller Tabak. 'This shows us that some froth has crept back into the marketplace.' Robinhood went public at the height of the pandemic-era meme stock frenzy in July 2021. The user-friendly, app-based brokerage became a go-to place for retail investors to trade speculative tickers including GameStop Corp. and AMC Entertainment Holdings Inc., as well as cryptocurrencies, options and ETFs. It would have been the second crypto-linked company to get added to the equity benchmark this year, after exchange Coinbase Global Inc. replaced Discover Financial Services in the S&P 500 in May, following Discover's acquisition by Capital One. --With assistance from Matthew Griffin and Carmen Reinicke. (Updates with closing price in fourth paragraph.) New Grads Join Worst Entry-Level Job Market in Years The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again What America's Pizza Economy Is Telling Us About the Real One America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P.
Yahoo
3 days ago
- Business
- Yahoo
Robinhood shares fall as S&P 500 inclusion hopes dashed
(Reuters) -Shares of Robinhood (HOOD) Markets dipped 4% in premarket trading on Monday, after S&P Dow Jones Indices made no changes to the S&P 500 membership following recent speculation that the online brokerage would be added to the index. S&P Dow Jones Indices announced late on Friday that it will not be making any changes to the components of the benchmark S&P 500 as part of quarterly rebalancing. Robinhood stock rallied in recent weeks, touching its highest level since 2021 market debut on Friday, as investors priced in a possible inclusion in the index. Bank of America analysts earlier this month touted the company as the "prime candidate" to join the S&P 500. Robinhood's shares were down 5% at $71.2 before the bell, while marketing platform AppLovin, which also rallied last week on bets of inclusion, dropped 5% to $397. To be included on the index, a company has to be U.S. domiciled, listed on a prominent U.S. exchange and have a market capitalization of $20.5 billion or higher. Robinhood had a market valuation of $66.1 billion as of Friday's close, with shares more than doubling in value this year and trading well above its IPO price of $38 apiece. Crypto-exchange operator Coinbase Global was the latest addition to the S&P 500 last month, making it the first digital asset player to be included in the index. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Robinhood shares fall as S&P 500 inclusion hopes dashed
(Reuters) -Shares of Robinhood Markets dipped 5% in premarket trading on Monday, after S&P Dow Jones Indices made no changes to the S&P 500 membership following recent speculation that the online brokerage would be added to the index. S&P Dow Jones Indices announced late on Friday that it will not be making any changes to the components of the benchmark S&P 500 as part of quarterly rebalancing. Robinhood stock rallied in recent weeks, touching its highest level since 2021 market debut on Friday, as investors priced in a possible inclusion in the index. Bank of America analysts earlier this month touted the company as the "prime candidate" to join the S&P 500. Robinhood's shares were down 5% at $71.2 before the bell, while marketing platform AppLovin, which also rallied last week on bets of inclusion, dropped 5% to $397. To be included on the index, a company has to be U.S. domiciled, listed on a prominent U.S. exchange and have a market capitalization of $20.5 billion or higher. Robinhood had a market valuation of $66.1 billion as of Friday's close, with shares more than doubling in value this year and trading well above its IPO price of $38 apiece. Crypto-exchange operator Coinbase Global was the latest addition to the S&P 500 last month, making it the first digital asset player to be included in the index. 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
