Latest news with #EdgewaterResearch
Yahoo
7 days ago
- Business
- Yahoo
Why Micron Stock Dropped on Monday
Edgewater Research warned that prices and demand for computer memory chips would fall in the second half of 2025. Micron stock has decent earnings, but its free cash flow already looks weak. And now that free-cash-flow number could get even worse. 10 stocks we like better than Micron Technology › Shares of computer semiconductor memory maker Micron (NASDAQ: MU) tumbled 4.3% through 11:45 a.m. ET Monday. You can probably blame Edgewater Research for that. There's not a lot of detail available yet on what Edgewater said about Micron today. So far, the most I've found is the briefest of mentions, on that the research firm says demand and pricing for computer memory in the first half of 2025 appear to have been "better." (Better than last year? Better than expected? Your guess is as good as mine.) And that both demand and pricing will be "sub seasonal," or worse than the company's historical average for the second half of a year, and with "bias lower." Which would appear to mean that things will be somewhat bad, and potentially worse than investors are expecting. Also, it's worth pointing out that Edgewater says this is true for both Micron and its rival SanDisk (NASDAQ: SNDK). Admittedly, this isn't a whole lot of detail, nor does it give investors a whole lot of explanation for why they might to want to sell Micron -- or SanDisk, whose stock is down 8.6%. So how worried should you be? In the case of Micron, I'd be pretty worried. Although reported earnings of $6.2 billion (according to generally accepted accounting principles) look fine to me, the company generated less than $1.9 billion in real free cash flow over the last 12 reported months. On a $139 billion market cap, that works out to a very expensive price-to-free cash flow ratio of 74 -- which is probably too much to pay. And the greater the "bias lower" in H2 2025, the less inclined I'd be to buy Micron stock. Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Micron Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Micron Stock Dropped on Monday was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
Why SanDisk Stock Slumped on Monday
Edgewater Research just warned of falling prices and falling demand for computer memory in the year's second half. SanDisk isn't in a great place to receive this news, with its stock already unprofitable. If SanDisk can survive 2025, however, profits could return in 2026. 10 stocks we like better than Sandisk › Shares of computer semiconductor memory maker SanDisk (NASDAQ: SNDK) tumbled 8.3% through 12:15 p.m. ET Monday. You can probably blame Edgewater Research for that. We don't yet know everything about Edgewater's report on Micron. All I've been able to learn is that has a very short write-up today advising that Edgewater thinks demand and pricing for computer memory in the first half of 2025 was "better" Maybe better than last year. Maybe better than Edgewater was expecting. Maybe better than what other analysts were forecasting. Now the bad news: Demand and pricing will be "sub seasonal" in the second half of this year, says Edgewater, and with a "bias lower." That implies things may be getting worse, not better. Edgewater says this is true for both SanDisk (NASDAQ: SNDK) and for its rival Micron (NASDAQ: MU), by the way. So how much should this all worry you, if you own SanDisk stock? Quite a lot, at least in the short term. SanDisk was already unprofitable, with losses amounting to $1.5 billion over the last 12 reported months. Investors were already braced for bad news this year, with analysts forecasting losses of $1.4 billion. Now that number might be getting even worse. The good news is that SanDisk is expected to turn profitable again next year, earning perhaps $607 million. That would give the stock a P/E ratio of about 11 on 2026 earnings, versus its current P/E based on earnings that are still negative. If the stock sells off hard on Edgewater's latest report, and if you're patient enough to wait for this to improve next year, now might be a good time to buy this cyclical semiconductor stock. Before you buy stock in Sandisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sandisk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why SanDisk Stock Slumped on Monday was originally published by The Motley Fool 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
28-06-2025
- Business
- Yahoo
Snap (SNAP) Surges 7.13% on Bullish Analyst Rating
Snap Inc. (NYSE:SNAP) is one of the . Snap Inc. rallied for a second straight day on Friday, jumping 7.13 percent to close at $8.72 apiece following an investment firm's more bullish rating for the company. In a market note on Friday, Edgewater Research said that other market analysts' consensus forecast for Snap Inc.'s (NYSE:SNAP) second quarter earnings might be 'overly conservative,' suggesting huge potential for an earnings beat. A young adult family using a Camera to record moments of their daily life. Analyst consensus for Snap Inc.'s (NYSE:SNAP) earnings for the second quarter was pegged at $0.01 per share, markedly down from the $0.08 booked in the first quarter of the year. For its part, Edgewater Research said it sees momentum for the social media app's direct response advertising business. In recent news, Snap Inc. (NYSE:SNAP) acquired calendar app Saturn as part of its plans to heighten its influence among young adults. Saturn is primarily focused on making it easier for students to keep track of school commitments, allowing calendar sharing, chatting, and joining in-app events. While we acknowledge the potential of SNAP 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. 登入存取你的投資組合
Yahoo
28-06-2025
- Business
- Yahoo
Why Snap Stock Soared Today
Edgewater Research isn't yet ready to buy Snap stock, but it's getting close. Edgewater says Snap's direct response advertising is improving, and that other analysts are missing this improvement. Snap might earn more than the $0.01 per share it's "supposed" to earn in Q2. 10 stocks we like better than Snap › Stock of social media star Snap (NYSE: SNAP) ran up 6.1% through 1:11 p.m. ET Friday after analysts at Edgewater Research claimed that other analysts' consensus forecasts for Q2 2025 were "setting a low bar," creating the potential for an earnings beat. Actually, the potential for a second earnings beat. Snap last reported earnings in April (for Q1), doubling consensus forecasts with $0.08 in profit per share. Looking ahead to the July 31 Q2 report, though, forecasts have the company slowing down significantly, earning only $0.01 per share on high-single-digit sales growth ($1.3 billion). Edgewater thinks that's unreasonably pessimistic, however. In a note covered on today, the analyst argues that Snap has "momentum" heading into Q2, especially in direct-response advertising. While the analyst remains leery of the economy in general and its effect on Snap's advertising revenues, and maintains only a neutral rating on the stock, Edgewater is becoming somewhat more optimistic. Should it be, though? Even if other analysts are wrong, and Snap's earnings don't crater in Q2, the company's really not doing well enough to justify its current valuation of more than 46 times trailing free cash flow. Sales growth was only 8% last quarter, and earnings according to generally accepted accounting principles (GAAP) remain negative. But to deserve a 46x FCF valuation, I'd argue Snap has to do better than simply not let its earnings get even worse. It has to grow both sales and earnings massively to deserve such a high multiple. Unless and until Snap proves it can do that, I think this stock's a sell. Before you buy stock in Snap, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Snap wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Snap Stock Soared Today was originally published by The Motley Fool 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
Globe and Mail
27-06-2025
- Business
- Globe and Mail
Why Snap Stock Soared Today
Stock of social media star Snap (NYSE: SNAP) ran up 6.1% through 1:11 p.m. ET Friday after analysts at Edgewater Research claimed that other analysts' consensus forecasts for Q2 2025 were "setting a low bar," creating the potential for an earnings beat. Actually, the potential for a second earnings beat. Snap's earnings history -- and future Snap last reported earnings in April (for Q1), doubling consensus forecasts with $0.08 in profit per share. Looking ahead to the July 31 Q2 report, though, forecasts have the company slowing down significantly, earning only $0.01 per share on high-single-digit sales growth ($1.3 billion). Edgewater thinks that's unreasonably pessimistic, however. In a note covered on today, the analyst argues that Snap has "momentum" heading into Q2, especially in direct-response advertising. While the analyst remains leery of the economy in general and its effect on Snap's advertising revenues, and maintains only a neutral rating on the stock, Edgewater is becoming somewhat more optimistic. Is Snap stock a buy? Should it be, though? Even if other analysts are wrong, and Snap's earnings don't crater in Q2, the company's really not doing well enough to justify its current valuation of more than 46 times trailing free cash flow. Sales growth was only 8% last quarter, and earnings according to generally accepted accounting principles (GAAP) remain negative. But to deserve a 46x FCF valuation, I'd argue Snap has to do better than simply not let its earnings get even worse. It has to grow both sales and earnings massively to deserve such a high multiple. Unless and until Snap proves it can do that, I think this stock's a sell. Should you invest $1,000 in Snap right now? Before you buy stock in Snap, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Snap wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
