Latest news with #JaqueSilva
Yahoo
2 days ago
- Business
- Yahoo
Meta's $15 Billion Scale Deal Could Leave Gig Workers Behind
The Scale AI logo appears on the screen of a smartphone Credit - NurPhoto via Getty Images—Jaque Silva/NurPhoto Meta is reportedly set to invest $15 billion to acquire a 49% stake in Scale AI, in a deal that would make Scale CEO Alexandr Wang head of the tech giant's new AI unit dedicated to pursuing 'superintelligence.' Scale AI, founded in 2016, is a leading data annotation firm that hires workers around the world to label or create the data that is used to train AI systems. The deal is expected to greatly enrich Wang and many of his colleagues with equity in Scale AI; Wang, already a billionaire, would see his wealth grow even further. For Meta, it would breathe new life into the company's flagging attempts to compete at the 'frontier' of AI against OpenAI, Google, and Anthropic. However, Scale's contract workers, many of whom earn just dollars per day via a subsidiary called RemoTasks, are unlikely to benefit at all from the deal, according to sociologists who study the sector. Typically data workers are not formally employed, and are instead paid for the tasks they complete. Those tasks can include labeling the contents of images, answering questions, or rating which of two chatbots' answers are better, in order to teach AI systems to better comply with human preferences. (TIME has a content partnership with Scale AI.) 'I expect few if any Scale annotators will see any upside at all,' says Callum Cant, a senior lecturer at the University of Essex, U.K., who studies gig work platforms. 'It would be very surprising to see some kind of feed-through. Most of these people don't have a stake in ownership of the company.' Many of those workers already suffer from low pay and poor working conditions. In a recent report by Oxford University's Internet Institute, the Scale subsidiary RemoTasks failed to meet basic standards for fair pay, fair contracts, fair management, and fair worker representation. Read More: Gig Workers Behind AI Face 'Unfair Working Conditions,' Oxford Report Finds 'A key part of Scale's value lies in its data work services performed by hundreds of thousands of underpaid and poorly protected workers,' says Jonas Valente, an Oxford researcher who worked on the report. 'The company remains far from safeguarding basic standards of fair work, despite limited efforts to improve its practices.' The Meta deal is unlikely to change that. 'Unfortunately, the increasing profits of many digital labor platforms and their primary companies, such as the case of Scale, do not translate into better conditions for [workers],' Valente says. A Scale AI spokesperson declined to comment for this story. 'We're proud of the flexible earning opportunities offered through our platforms,' the company said in a statement to TechCrunch in May. Meta's investment also calls into question whether Scale AI will continue supplying data to OpenAI and Google, two of its major clients. In the increasingly competitive AI landscape, observers say Meta may see value in cutting off its rivals from annotated data — an essential means of making AI systems smarter. 'By buying up access to Scale AI, could Meta deny access to that platform and that avenue for data annotation by other competitors?' says Cant. 'It depends entirely on Meta's strategy.' If that were to happen, Cant says, it could put downward pressure on the wages and tasks available to workers, many of whom already struggle to make ends meet with data work. A Meta spokesperson declined to comment on this story. Write to Billy Perrigo at
Forbes
21-05-2025
- Business
- Forbes
Buy Or Sell Analog Devices Ahead Of Earnings?
The Analog Devices, Inc. (ADI) logo appears on a smartphone screen in this illustration photo in ... More Reno, United States, on December 17, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images) Analog Devices (NASDAQ:ADI) is scheduled to announce its Q2 FY'25 (April 2025) earnings on Thursday, May 22. The consensus estimates revenues of $2.51 billion for the quarter, reflecting a 16% increase year-over-year, while earnings are anticipated to be approximately $1.70 per share, up from $1.40 in the same period last year. The semiconductor cycle seems to be recovering, and Analog may experience increased demand from the industrial and automotive sectors, alongside a higher demand from data centers. Gross margins could also see improvement due to better volumes and alleviated inventory concerns. The company currently has a market capitalization of $113 billion. Revenue for the past twelve months stood at $9.3 billion, and it was operationally profitable with $2.0 billion in operating profits and net income of $1.6 billion. However, if you're looking for upside potential with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and generated returns over 91% since its inception. See earnings reaction history of all stocks Here are some insights on one-day (1D) post-earnings returns: Additional statistics for observed 5-Day (5D) and 21-Day (21D) returns following earnings are summarized in the table below. This indicates that the stock has a slightly higher likelihood of a positive move after earnings. Nonetheless, stocks can decline significantly – 20%, 30%, even 50% –as demonstrated during previous market shocks. No stock is exempt. How low can ADI stock drop in a market crash? It's important to stay updated. ADI 1D, 5D, 21D Post Earnings Forward Returns A relatively less risky approach (though it may not be beneficial if the correlation is weak) is to analyze the correlation between short-term and medium-term returns following earnings, identify a pair that demonstrates the highest correlation, and carry out the corresponding trade. For instance, if 1D and 5D exhibit the highest correlation, a trader could take a 'long' position for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data drawn from both a 5-year and a 3-year (more recent) timeframe. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and the subsequent 5D returns. ADI Correlation Post Earnings Forward Returns At times, the performance of peers can impact the stock's reaction after earnings. Indeed, the pricing may commence ahead of the earnings announcement. Below is some historical data on the past post-earnings performance of Analog Devices stock compared to the performance of peers that reported earnings just prior to Analog Devices. For a fair comparison, peer stock returns also represent post-earnings one-day (1D) returns. ADI Correlation with Peer Returns Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (which includes all three: the S&P 500, S&P mid-cap, and Russell 2000), generating strong returns for investors. Additionally, if you're seeking upside with a more stable experience than an individual stock like Analog Devices, consider the High Quality portfolio, which has surpassed the S&P and achieved returns greater than 91% since inception.
Forbes
03-05-2025
- Business
- Forbes
How Will Upstart Stock React To Its Upcoming Earnings?
The Upstart Holdings, Inc. logo appears on a smartphone screen in this illustration photo in Reno, ... More United States, on December 20, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images) Upstart (NASDAQ:UPST) is scheduled to announce its earnings on Tuesday, May 6, 2025. Historically, UPST stock has shown considerable volatility surrounding its earnings announcements. Since 2021, the stock has reported a positive one-day return in 53% of cases. When these returns are positive, they have been substantial, with a median of 34.6% and a maximum of 89.3% recorded in March 2021. For event-driven traders, grasping these historical trends could provide a potential advantage, though a lot will hinge on how the actual results stack up against consensus estimates and market anticipations. There are two main strategies to exploit this: Ahead of the forthcoming earnings, consensus estimates forecast earnings per share (EPS) of $0.17 on revenue of $201 million. This indicates significant year-over-year growth compared to the prior period, where Upstart reported a loss of $0.31 per share on revenue of $128 million. From a fundamental standpoint, Upstart currently holds a market capitalization of $4.4 billion. Over the trailing twelve months, the company has generated $629 million in revenue but reported a net loss of $129 million. That said, if you're looking for upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having surpassed the S&P 500 and produced returns exceeding 91% since its launch. See earnings reaction history of all stocks Here are some insights on one-day (1D) post-earnings returns: Additional information regarding observed 5-Day (5D) and 21-Day (21D) returns post earnings are summarized alongside the statistics in the table below. UPST 1D,5D, and 21D Post-Earnings Return A relatively less risky approach (though not effective if the correlation is weak) is to comprehend the correlation between short-term and medium-term returns after earnings, identify a pair with the highest correlation, and carry out the suitable trade. For instance, if 1D and 5D display the strongest correlation, a trader might take a "long" position for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data based on a 5-year and a 3-year (more recent) timeframe. Remember that the correlation 1D_5D indicates the correlation between 1D post-earnings returns and following 5D returns. UPST Correlation Between 1D, 5D and 21D Historical Returns Occasionally, the performance of peers can impact the stock's reaction after earnings. Indeed, the pricing-in might commence before the earnings are disclosed. Below is some historical data regarding the post-earnings performance of Upstart stock in comparison to the performance of peers that reported earnings right before Upstart. For an accurate comparison, peer stock returns also reflect post-earnings one-day (1D) returns. UPST Correlation With Peer Earnings 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), delivering strong returns for investors. Additionally, if you seek upside with a smoother journey than an individual stock such as Upstart, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception.
Forbes
15-04-2025
- Business
- Forbes
First Solar Stock: What's The Catch?
The First Solar logo appears on a smartphone screen in this illustration photo in Reno, United ... More States, on December 28, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images) An earnings miss and fundamental changes in U.S. government policies have driven down First Solar stock to a level where it now appears to be a value opportunity! This is a company that posted over 26% growth in the past year, maintains operating and net margins above 30%, has minimal leverage with a debt-to-equity ratio of roughly 0.05, and boasts an operational cash flow margin nearing 30%—yet its stock trades at a PE ratio slightly above 10. That seems inconsistent, doesn't it? Even fundamentally strong stocks can decline when market sentiment turns negative. To mitigate company-specific risks while still capitalizing on growth, consider exploring the High-Quality portfolio, which has significantly outperformed the S&P 500, delivering returns of over 91% since its inception. First Solar has projected FY 2025 operating income between $1.95 billion and $2.30 billion, factoring in expected benefits from the Inflation Reduction Act (IRA). Notably, production credits are anticipated to contribute $1.65 billion to $1.7 billion, emphasizing how critical government subsidies are to the company's profitability. However, the new administration's intention to ease climate regulations and back the fossil fuel sector raises concerns. Furthermore, the company faces increasing competition from Chinese firms. While First Solar generates strong operational cash flow (exceeding $1.2 billion in the past year), its high capital expenditure (above $1.5 billion) renders its free cash flow negative. The combination of high fixed investment and policy uncertainty presents a challenging scenario. Here are some reasons why First Solar could be a solid long-term value investment: Regulatory risk is just one component of the comprehensive risk assessment framework we apply in building the TrefisHigh Quality Portfolio. With 30 handpicked stocks, this portfolio has consistently outperformed the S&P 500 over the past four years. Why is that? Because the HQ Portfolio is constructed for better returns with lower volatility, avoiding wild market swings—backed by strong performance indicators found in our HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
07-04-2025
- Business
- Forbes
Does SOFI Stock's 25% Fall Make It A Buy At $9?
The SoFi Technologies, Inc. logo appears on a smartphone screen in this illustration photo in Reno, ... More United States, on December 20, 2024. (Photo by Jaque Silva/NurPhoto via Getty Images) SoFi Technologies (NASDAQ:SOFI),a digital financial company that offers a range of products and services, including banking, lending, investing, and insurance, has seen its stock plunge nearly 25% in the past thirty days. This downturn can be largely attributed to growing anxieties surrounding the broader economic outlook. President Donald Trump's recent announcement of sweeping tariffs on goods from over 100 countries has heightened concerns about its potential negative impact on the U.S. economy and consumer spending. This situation is further aggravated by China's retaliatory tariffs, which are higher than anticipated and are fueling an escalating global trade war, resulting in a significant downturn in global markets. For SOFI specifically, these macroeconomic headwinds present several challenges. Persistent inflation could prevent the U.S. Federal Reserve from implementing further interest rate cuts, which would negatively impact SOFI's lending business. Furthermore, a potential economic recession would likely dampen demand for SOFI's financial services. We believe that SOFI stock looks unattractive - making it a bad pick to buy at its current price of around $9. We believe there are a couple of concerns with SOFI stock, which makes it unattractive given that its current valuation looks very high. We arrive at our conclusion by comparing the current valuation of SOFI stock with its operating performance over the recent years as well as its current and historical financial condition. Our analysis of SoFi Technologies along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a moderate operating performance and financial condition, as detailed below. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Going by what you pay per dollar of sales or profit, SOFI stock looks expensive compared to the broader market. SoFi Technologies' Revenues have grown considerably over recent years. SoFi Technologies' profit margins are around the median level for companies in the Trefis coverage universe. SoFi Technologies' balance sheet looks fine. SOFI stock has fared much worse than the benchmark S&P 500 index in the last economic downturn. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes. In summary, SoFi Technologies' performance across the parameters detailed above are as follows: Despite SOFI's seemingly neutral performance when considering the above factors, its very high valuation makes us believe the stock is not a compelling buy at its current price. While you would do well to avoid SOFI stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics. SOFI Return Compared With Trefis Reinforced Portfolio Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
