Latest news with #NASDAQ-100
Yahoo
24-06-2025
- Business
- Yahoo
C3.ai, Inc. (AI): A Bear Case Theory
We came across a bearish thesis on Inc., High Growth Investing's Substack by Stefan Waldhauser. In this article, we will summarize the Bears' thesis on AI. Inc.'s share was trading at $23.41 as of June 23rd. A scientist at a computer station, surrounded by a neural network of artificial intelligence code. has struggled to gain solid financial footing despite being in business for over 15 years and forming high-profile partnerships with Microsoft Azure and McKinsey. While its revenue growth has reached 24% on a trailing twelve-month basis, the company continues to operate inefficiently, posting net losses that hover around 80% of revenue and maintaining negative cash flow. With a Rule of 40 score of just 14%, the business model remains fundamentally flawed. A major concern is reliance on a limited customer base, most notably Baker Hughes, which contributes around 20% of total revenue. This key contract is set for renewal and may expire as early as June 2025, posing a significant risk to the company's financial stability and stock performance. For fiscal year 2025, is projected to generate nearly $400 million in sales while incurring a $300 million loss, a mismatch that renders its $2.5 billion valuation difficult to justify. The market appears to share this skepticism, as evidenced by a 30% drop in the stock year-to-date. Furthermore, substantial insider selling by CEO Tom Siebel and his management team reinforces concerns about internal confidence. Short sellers have also targeted the stock aggressively, as reflected in its elevated short interest levels. Tools like the stocks. Guide screener reveals that is among the most shorted stocks in the NASDAQ-100, underscoring bearish sentiment. Overall, the company remains an unprofitable and risky bet, with mounting pressure from both operational inefficiencies and investor skepticism. Previously, we covered a on CrowdStrike Holdings, Inc. (CRWD) by Magnus Ofstad in May 2025, which highlighted concerns over slowing growth and stretched valuation. The company's stock price has appreciated by approximately 8% since our coverage. This is because the thesis didn't play out as expected. Stefan Waldhauser shares a similar view but emphasizes structurally weaker fundamentals. Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held AI at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of AI 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
Shopify (NasdaqGS:SHOP) Added To NASDAQ-100 Index Following Positive Developments
Shopify recently gained attention with its addition to the NASDAQ-100 Index on May 19, a move that likely bolstered its standing among investors. Over the past month, the company's shares rose by about 30%, a significant contrast to the broader market's smaller growth. This jump was potentially influenced further by a strategic three-year partnership with Global-e Online, announced in mid-May, which aims to enhance international e-commerce operations. Despite a reported net loss in financial performance, these strategic moves seemed to reinforce investor confidence, contributing to the company's robust share price growth. You should learn about the 2 warning signs we've spotted with Shopify. AI is about to change healthcare. These 21 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The addition of Shopify to the NASDAQ-100, alongside its new alliance with Global-e Online, might serve as a crucial catalyst for its broader growth strategy. Despite recent gains, Shopify's share value stands at a discount of 5.08% to the consensus price target of US$114.64. This relationship implies potential upside, should the strategic developments bolster their revenue and earnings forecasts effectively. Investors appear to be supportive of the initiatives aiming to enhance international e-commerce operations and expand Shopify's influence in the global market. Over the past three years, Shopify's total return was very large, indicating a robust long-term performance despite recent volatility. For context, this impressive growth contrasts with a more recent one-year performance where Shopify outperformed the US IT industry, which grew by 28.9%. This trend highlights Shopify's capacity to sustain momentum amidst competitive market pressures. The revenue and earnings forecasts reflect expansion ambitions, projecting annual growth rates exceeding US market averages. However, these optimistic forecasts depend on successful execution of initiatives like AI investments and broader strategic partnerships. Aligning these outcomes with the current price target suggests that despite the company's aggressive growth objectives, investor expectations remain tempered by potential execution risks. Gain insights into Shopify's outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SHOP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
24-03-2025
- Business
- Yahoo
Sirius XM Holdings (NasdaqGS:SIRI) Flat After Dropping From FTSE All-World Index
Sirius XM Holdings experienced a price movement of 1.8% over the last week. During this period, the company was removed from the FTSE All-World Index, which can influence investor perceptions and trading activity. Meanwhile, broader market trends showed modest gains due to optimism about potential tariff reductions, although the overall market was relatively flat. The tech sector, where Sirius XM Holdings is partly categorized, benefited from a rally led by major technology companies. Despite these broader positive market dynamics, the index exclusion likely had a more direct effect on the company's stock price movement this week. We've identified 2 warning signs for Sirius XM Holdings (1 can't be ignored) that you should be aware of. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Over the past year, Sirius XM Holdings saw its total shareholder return, factoring in share price and dividends, decrease by 37.32%. This is a significant underperformance compared to the broader US market, which gained 8.1%, and the US Media industry's decline of 5.6% over the same period. A series of revenue declines contributed to this performance. For instance, Q3 2024 revenue dropped to US$2.17 billion, down from US$2.27 billion the previous year, while the full-year revenue totaled US$8.70 billion, resulting in a net loss of US$2.08 billion, a substantial downturn from the previous year's net income of US$988 million. Additionally, Sirius XM faced index exclusions, impacting its visibility among index-tracked funds. The company was removed from the NASDAQ-100 in June 2024, followed by departures from the NASDAQ Composite and FTSE All-World Index. In contrast, Sirius XM is attempting to balance its financial strategy, continuing with share buybacks amounting to 801,609 shares, which may support share price stability over time but have not offset the impact of broader market conditions entirely. Our comprehensive valuation report raises the possibility that Sirius XM Holdings is priced lower than what may be justified by its financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SIRI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
13-03-2025
- Business
- Yahoo
MicroStrategy (NasdaqGS:MSTR) Announces US$1.24 Dividend Despite 15% Price Drop
MicroStrategy recently announced a preferred dividend of $1.24 per share on its 8.00% Series A Perpetual Strike Preferred Stock, with a payment set for March 31, 2025. Over the past week, the company's share price fell by 14.91%, a movement that can be analyzed amid broader market conditions and industry trends. The Nasdaq Composite declined 1.7% during this period, influenced by uncertainties about economic policies and technological sector vulnerabilities. A broader market downturn of 4.4% also points to investor concerns about economic health, which may have influenced sentiment toward technology stocks. Meanwhile, the absence of recent earnings announcements from MicroStrategy leaves its stock performance primarily driven by market forces. The company's significant involvement in cryptocurrency, amid a slight Bitcoin decrease, may have further played a role. Overall, the interplay of these elements underscores the external pressures weighing on MicroStrategy's recent stock performance. Click here and access our complete financial health analysis report to understand the dynamics of MicroStrategy. Interested In Other Possibilities? Uncover the next big thing with financially sound penny stocks that balance risk and reward. The last five years have witnessed a remarkable rise for MicroStrategy shares, achieving a total return of very large magnitude, including dividends. This impressive performance contrasts with its recent stumble, and several factors have shaped this trajectory. Key among them is the company's aggressive focus on integrating Bitcoin into its corporate strategy, which has coincided with heightened investor interest in cryptocurrency markets. Moreover, the company's inclusion in major stock indices, such as the NASDAQ-100 and FTSE All-World, has increased its visibility and investment appeal. While MicroStrategy has been unprofitable with escalating net losses, its foresight in product development, like enhancements in MicroStrategy ONE, continues to engage investors. Recent expansion efforts, such as the increased shares and convertible note offerings, suggest a focus on growth and adaptability, even amid financial constraints. By focusing on cutting-edge AI capabilities and forging strategic partnerships, MicroStrategy remains poised to capitalize on emerging tech trends, despite the recent market challenges. Together, these elements offer insights into the long-term value perceived by shareholders and their sustained confidence in the company's direction. Already own MicroStrategy? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:MSTR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
10-03-2025
- Business
- Yahoo
AppLovin (NasdaqGS:APP) Faces Class-Action Lawsuit Amid 17% Price Drop
AppLovin saw a 16.96% decline in its share price over the last week, primarily impacted by significant legal challenges. The company faces a class-action lawsuit from Bronstein, Gewirtz & Grossman, LLC, alleging misleading statements about its financial growth and business practices concerning its AXON 2.0 platform and AI technologies. Compounding this, a report from Fuzzy Panda Research accused AppLovin of engaging in ad fraud and unethical practices, further stressing investor confidence. These developments starkly contrasted with the broader market trend, which saw the S&P 500 and Nasdaq posting third consecutive weekly declines, with the tech-heavy Nasdaq dropping 3.5%. Despite positive economic remarks from Fed Chair Jerome Powell, concerns over tariffs and a lackluster jobs report weighed heavily on market sentiments, potentially exacerbating AppLovin's stock decline in the context of overall unfavorable market conditions. Take a closer look at AppLovin's potential here. Over a three-year period, AppLovin's total shareholder return was very large at 507.14%. This notable long-term performance starkly contrasts the recent legal challenges and market volatility. Over the past year, AppLovin surpassed the US Software industry average return of 3.7%. Key contributors to this longer-term success include a substantial increase in net income, evident in Q4 2024's US$599.2 million report, up from US$172.23 million the previous year, and the completion of a comprehensive share buyback plan valued at US$4.74 billion, enhancing investor confidence by reducing share count and increasing earnings per share. Continued earnings growth has been supported by strategic partnerships, such as MiMedia Holdings Ltd.'s commitment to optimizing monetization across AppLovin's platform. The company's inclusion in the NASDAQ-100 and FTSE All-World Index further highlights its market performance. Despite its high debt levels, including a refinancing deal of US$1.46 billion, AppLovin's ability to consistently enhance earnings has been a significant factor contributing to its impressive long-term shareholder returns. Get the full picture of AppLovin's valuation metrics and investment prospects—click to explore. Discover the key vulnerabilities in AppLovin's business with our detailed risk assessment. Is AppLovin part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:APP. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
