Latest news with #Needham
Yahoo
3 hours ago
- Business
- Yahoo
Credo Stock Surges Over 17% on 800G Win, Hyperscaler Push
Credo Technology (NASDAQ:CRDO) jumped more than 17% after Needham hiked its price target to $85, citing huge hyperscaler wins and a diversifying customer roster that propelled Q4 results. Warning! GuruFocus has detected 3 Warning Signs with CRDO. The optical?component maker saw revenue jump 126% in fiscal 2025 and now targets an 85% leap to over $800 million in fiscal 2026. Needham's N. Quinn Bolton notes Amazon (NASDAQ:AMZN) still accounts for 61% of sales (down from 86% last quarter), while Microsoft (NASDAQ:MSFT) and xAI contributions surged to 12% and 11%, respectivelyup from negligible levels in Q3. Management expects to keep three-to-four customers above 10% of revenue through FY26, with Meta (NASDAQ:META) and Oracle (NYSE:ORCL) slated to join the hyperscaler list. Credo also announced an 800G optical DSP design win for a major hyperscalerpotentially its biggest everthat should ramp this year. The company showcased its new 3nm, 200G-per-lane DSP capable of 1.6Tb/s speeds with leading signal integrity and power efficiency, signaling continued investment in next-gen data-center connectivity. Investors should care because Credo's shift from a single?customer cadence toward a balanced hyperscaler base reduces concentration risk and underpins a steep growth trajectory as demand for 800G links explodes. This article first appeared on GuruFocus. 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
10 hours ago
- Business
- Yahoo
Wall Street Analysts Are Bullish on This Artificial Intelligence (AI) Stock -- Here's What You Need to Know
Some Wall Street analysts see Upstart rising by 50% or more. The company's results have improved since it released an updated AI model. Upstart is making progress in the large auto and home loan makrets. 10 stocks we like better than Upstart › When investors think of AI stocks, Upstart (NASDAQ: UPST) may not be the first that comes to mind. However, the company has a strong claim to the title. It's harnessed the power of machine learning and data science for a new credit platform that has been more accurate at assessing creditworthiness than conventional FICO scores, according to Upstart. As a stock, Upstart has been one of the more volatile names in the market as the business has considerable potential, but it has also struggled to turn a profit in recent years. Plus, any credit business is inherently risky, since loans could go bad if the economy sours, or Upstart's credit partners could stop buying its loans, eliminating the funding it needs to operate. Upstart's latest earnings report offered more reasons to be optimistic. Its transaction volume jumped 102% in the first quarter to 240,706 with originations up 89% to $2.1 billion. Meanwhile, its conversion rate improved from 14% to 19.1% because of an update in its AI model that makes as many as 1 million predictions per applicant to determine whether to lend to the applicant and what interest rate to charge. Overall, revenue jumped 67% to $213 million, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from a loss of $20.3 million to a profit of $42.6 million. Now, several Wall Street analysts have turned bullish on Wall Street, and some see considerable upside to the stock. According to Tipranks, of the 11 analysts that have rated Upstart in the last three months, four analysts rate it a buy and seven call it a hold. However, the average price target for the stock is $65.33, or a 39% upside on average. Among the analysts that are most bullish on Upstart are Peter Christiansen of Citi, who rates the stock a buy and gives it a price target of $83; Dan Dolev of Mizuho, who gives it a buy rating and a price target of $83; and Kyle Peterson of Needham, who gives it a buy rating and a price target of $70. Christiansen has noted Upstart's increasing interest from private credit managers and improving partner network. Dan Dolev recently reiterated a buy rating after double upgrading the stock last year in response to the company's improved profitability, and it's capturing the benefits from AI in its updated model. Kyle Peterson of Needham also sees an improving funding backdrop and balance sheet at Upstart driving the stock higher. Wall Street forecasts on their own aren't a good reason to buy the stock, but they can alert you to good buys. Upstart has its share of naysayers as well. Nearly 25% of the stock is sold short, and Goldman Sachs gave it a sell rating in February with a price target of $15. However, Upstart's business is improving in multiple ways. In addition to the preceding numbers, the company is increasingly tapping into the auto and home loan markets, which represent the biggest addressable markets in front of it. In the first quarter, auto originations grew five times over the last year to $61 million, while home loans grew six times to $41 million. That still represents a small fraction of the company's business, but there is potential for it to get much larger. Upstart's business model is also scalable. The tech platform fully automates more than 90% of loan applications and can therefore scale up to make more loans at a relatively low marginal cost. Operating expenses grew by just 11% in the first quarter even as fee-based revenue was up 34%. Overall, Upstart's technology appears to give it a competitive advantage, and it's seeing momentum in customer demand and funding partnerships. If its momentum continues, its profit should rapidly improve. With a long runway of growth, Upstart looks like a good buy. Before you buy stock in Upstart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Upstart 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 2, 2025 Jeremy Bowman has positions in Upstart. The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy. Wall Street Analysts Are Bullish on This Artificial Intelligence (AI) Stock -- Here's What You Need to Know was originally published by The Motley Fool
CBS News
3 days ago
- Business
- CBS News
Reusable metal lunch trays help Massachusetts school district cut down on food waste
Schools in Needham, Massachusetts have cut down on their food waste by replacing their old cafeteria lunch trays with reusable metal ones and they're already seeing results. "Food service departments contribute a lot to waste. I'm always looking for new, different ways to reduce," said Director of Nutrition Services Emily Murphy. Reducing food waste at schools They found the answer with reusable stainless steel trays. In just a matter of months, they have diverted more than 245,000 single-use trays from landfills. "Single-use trays was our biggest contributor to waste and also our biggest expense," said Murphy. It's part of a recent partnership with Brooklyn-based Re:Dish, a company on a mission to replace single-use products in big eating environments like schools. "In the first week, they went from 18 barrels of trash to six," said Re:Dish founder and CEO Caroline Vanderlip. Bulk dishware washed and reused Needham owns the trays but Re:Dish picks up, washes, and returns bulk dishware. Which means there's no need for the school to install industrial dishwashers, or pay people to load them. "So it's a huge waste reduction measure," said Vanderlip. Previously, the district used compostable trays that school officials said inevitably ended up in the trash. Murphy said the metal trays also work better. "It's a larger tray, so students can fit more food on their tray and it's more durable. So a lot of times the compostable ones bend and they're flimsy," said Murphy. Once students are finished with their lunch, they follow a simple process to discard their waste. They self-sort their trash, from their recycling, from their compostable scraps, before the tray hedas back to the Re:Dish facility, and the cycle begins again. "What schools allow us to do as a society is teach kids at an early age that throwing everything away after one use doesn't make sense. And even since we started Re:Dish five years ago, I have seen literally a sea change in people's recognition that disposability is not the answer," said Vanderlip.
Yahoo
5 days ago
- Business
- Yahoo
Needham Reiterates Buy Rating on Extreme Networks (EXTR) After Extreme Connect Event
On May 27, Needham reiterated its Buy rating on Extreme Networks, Inc. (NASDAQ:EXTR) and kept the price target the same at $20. The update comes after the company's Extreme Connect Event in Paris. A customer service person helping a client with a complex network issue, illustrating the customer support of the communication equipment company. The firm highlighted the company is moving closer to its full rollout of Platform ONE which combines artificial intelligence, networking, and security in a single system. Extreme Networks, Inc. (NASDAQ:EXTR) held its Extreme Connect Event in Paris from May 19 to May 21. During the event, the company introduced several new features which will be available in limited availability. Needham mentioned that the platform uses conversational, multimodal, and agentic artificial intelligence thereby enabling it to provide automation and more visibility into network performance. The platform is expected to be rolled out completely by the fiscal third quarter of 2025 and is expected to boost company's margins for fiscal 2026. Extreme Networks, Inc. (NASDAQ:EXTR) is a technology company that provides cloud-based networking solutions, including wired and wireless infrastructure SD-WAN, and network management software. While we acknowledge the potential of EXTR 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 EXTR and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None.
Yahoo
5 days ago
- Business
- Yahoo
Needham Maintains Buy Rating on Sprout (SPRT) After Positive Customer Review
On May 28, Needham's analyst Scott Berg maintained a Buy rating on Sprout Social, Inc. (NASDAQ:SPT) while keeping the price target unchanged at $32. The analyst noted Caesars Entertainment Inc (NASDAQ:CZR), whose uses Sprout's platform highlighted its effectiveness thereby building a value proposition for the company. In addition, Sprout Social, Inc. (NASDAQ:SPT) also introduced a series of new features and upcoming enhancements designed to transform how brands provide customer care on social media. A marketing manager in a boardroom making decisions about the company's social media management platform. Earlier in May, the company delivered its Q1 2025 results highlighting 13% year-over-year revenue growth and improved total remaining performance obligations (RPO) of $360.2 million. Analyst Scott Berg believes the company's strategic edge lies in the simplicity, ease of implication, and solid management abilities of its platform. Sprout Social, Inc. (NASDAQ:SPT) is a cloud-based social media management platform that allows businesses to manage, measure, and optimize their online presence across multiple social media networks and commerce platforms. While we acknowledge the potential of SPT 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 SPT and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
