Latest news with #PaulMarino
Yahoo
6 days ago
- Business
- Yahoo
Palantir Investors Unfazed by Sky-High Valuation as Stock Surges
(Bloomberg) -- Palantir Technologies Inc.'s breakneck rally shows no sign of letting up as investors remain captivated by its artificial intelligence promise despite one of the most expensive valuations among US stocks. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending Shares of the data-analysis software company closed at a record for a third consecutive day Tuesday, pushing their gain for the year to 76%. While that's good enough for second-best on the S&P 500 Index, it has Palantir trading at a staggering 205 times projected earnings over the next 12 months, a hefty premium to the broader market's multiple of 22 times. 'You're starting to see almost like a Tesla effect where valuations don't really matter because there are these true believers in the company,' said Paul Marino, chief revenue officer at Themes ETFs. Those investors see 'opportunities with everything that's going on in the world today, whether that be on the defense side, whether that be on the transaction side, data side or AI side.' Palantir's cult-like momentum rally — which follows a 340% gain in 2024 and a rise of 167% in 2023 — stands in sharp contrast to a lukewarm reception from Wall Street analysts. The stock has only eight buy equivalent ratings and is dominated by 16 holds, with five sells, making it one of the lowest rated S&P 500 stocks, according to data compiled by Bloomberg. But bullish investors say the Street is overlooking a company poised to benefit from the current geopolitical and macroeconomic backdrop. Palantir works with the US military, which has doubled its use of the Maven AI system, and intelligence agencies. It recently added NATO as a customer and is partnering with Fannie Mae to launch an AI-powered crime detection unit. It's also building out its commercial and international clients, both large potential growth areas. Palantir's rebound from April has been underscored by a broader market pivot as investors navigate Trump's on-again, off-again tariff rhetoric and search for companies offering relative safety, including those that can show solid future growth. Palantir forecasts sales will rise to $3.9 billion for the calendar year 2025, a 36% increase from the previous year, and will continue to grow. This year's free cash flow is forecast to top $1.5 billion, a more than 30% increase on the year. 'The market is having capital flow back into areas of the market that they believe could have idiosyncratic growth,' said David Wagner, portfolio manager at Aptus Capital Advisors LLC. 'And Palantir fits that bill if you could stomach the valuation.' The recovery in technology stocks has shifted toward software and away from hardware, also giving Palantir a boost. It has also become a beneficiary of Elon Musk's DOGE effort to cut federal spending; the company has continued to land US government contracts during the Trump administration. In another comparison to Tesla, the stock has likely gotten a lift from the retail crowd. In the last week, it was the third most active behind Tesla and Nvidia Corp., according to data from Interactive Brokers. Palantir has stayed in the third-place spot for much of the year, according to Steve Sosnick, chief strategist at Interactive Brokers. Of course, stocks that have rapid rallies like Palantir can get hit hard on the downside — it shed more than 40% from a February peak through the early April nadir, mirroring some of the selling seen in other big technology shares. In addition to middle-of-the-road ratings, Wall Street analysts think the current rally has gotten ahead of itself. The average price target of about $103 implies more than 20% downside from where shares currently trade. Palantir also has an increasingly high bar to clear to keep the stock grinding higher — anything short of outperformance could weigh on shares, as was seen in the brief selloff following last quarter's earnings report. 'They have to deliver' to keep momentum going forward, said Ted Mortonson, managing director at Robert W Baird & Co. 'They cannot have any hiccups.' Tech Chart of the Day Nvidia Corp. rallied on Tuesday to reclaim the title of the world's largest company after surpassing Microsoft Corp. The semiconductor giant, the Windows software maker and Apple Inc. have been locked in battle in recent months, vying for the title of the most valuable firm by market cap. Top Tech Stories CrowdStrike Holdings Inc. shares fell after the cybersecurity company projected revenue for the current quarter that trailed estimates. Joshua Kushner's Thrive Capital and investment firm Capital Group have in recent months visited China to learn about its AI industry, joining a growing number of US investors rekindling interest in the country after DeepSeek's advances stunned Silicon Valley. Manus unveiled a text-to-video generation feature, entering a competitive segment populated by rivals from OpenAI to China's Alibaba Group Holding Ltd. and Tencent Holdings Ltd. Broadcom Inc. began shipping a new version of its data center switch chips that can boost the efficiency of AI accelerators, aiming to take a bigger role in the booming market for artificial intelligence computing. Earnings Due Wednesday Earnings Premarket: Sprinklr Earnings Postmarket: MongoDB Descartes Systems Verint --With assistance from Subrat Patnaik. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? ©2025 Bloomberg L.P.
Yahoo
06-05-2025
- Business
- Yahoo
AMD, Arm Offer Window Into AI Landscape Ahead of Nvidia Earnings
(Bloomberg) — Two chipmakers reporting earnings in the coming days will give investors insight into how demand for artificial intelligence infrastructure is holding up a few weeks ahead of Nvidia Corp.'s (NVDA) results. Most Read from Bloomberg Advanced Micro Devices Inc. (AMD) is set to report results Tuesday after market close while Arm Holdings Plc (ARM) will give its earnings figures postmarket on Wednesday. Though chipmaking stocks have taken hit this year — the Philadelphia Semiconductor Index (^SOX) is down 13% — underlying results may show a stronger foundation for the AI trade than recent stock performance indicates. Part of that is because the engine for AI infrastructure — spending from the biggest technology companies racing to build to utilize AI — hasn't slowed down. Companies including Meta Platforms Inc. (META), Alphabet Inc. (GOOG, GOOGL) and Microsoft Corp. (MSFT) have pledged that they'll either keep up previously announced spending or plow even more into AI as the look to assuage investor concerns that an uncertain macroeconomic backdrop would see them trimming capital expenditures instead. Meanwhile, Palantir Technologies Inc. (PLTR) boosted its 2025 revenue outlook, saying demand for its AI software was a 'ravenous whirlwind.' Its shares, which had soared more than 67% over the last month alone, slumped about 9% in premarket trading Tuesday as analysts continued to question its lofty valuation. 'Nobody's stopping their CapEx,' Paul Marino, chief revenue officer at Themes ETFs, said of recent earnings reports from big tech companies. 'I sound like a broken record when I say all this stuff, but not only are they not stopping it, they're increasing it.' Wall Street analysts covering AMD and Arm see both growing revenue in the quarter they're reporting — AMD is expected to report $7.1 billion in revenue, a 30% increase, while Arm is expected to report $1.23 billion in revenue, up 33% in the same period. 'You would have to think that Nvidia is gonna do extraordinarily well if those other two have any kind of decent earnings,' Marino said. Nvidia's results, which come at the end of the earnings season, have outsized importance due to the company's place at the helm of AI hardware and its size and weightings in the S&P 500 Index (^GSPC) and Nasdaq 100 Index (^NDX). Even with this year's 15% slump, Nvidia is the third-largest company in both indices, meaning that moves in its stock can influence the entire market.
Associated Press
04-04-2025
- Business
- Associated Press
Leverage Shares by Themes Launches Three New Single Stock Leveraged ETFs, Bringing Investors Exciting Opportunities to Amplify Exposure to Square (XYZ), Salesforce (CRM), and PayPal (PYPL)
GREENWICH, Conn., April 04, 2025 (GLOBE NEWSWIRE) -- Leverage Shares by Themes, an issuer of innovative exchange-traded products, is thrilled to announce the launch of three new single stock leveraged ETFs, available for trading starting April 4, 2025. These products are designed to empower investors with the ability to amplify returns (up and down) and dynamically participate in the performance of leading companies. Each ETF is tailored to target a 200% leveraged exposure to the daily performance of its underlying stock, offering sophisticated traders and the retail investor an efficient tool to capitalize on market movements at an industry low management fee for single stock leveraged ETFs at .75%. The new ETFs are: 'These ETFs mark another milestone in the Leverage Shares by Themes mission to revolutionize the way investors access the financial markets,' said Chief Revenue Officer of Themes ETFs Paul Marino. 'With these ETFs, traders can seize short-term opportunities with precision and flexibility, reinforcing our commitment to empowering the modern investor.' As part of the Leverage Shares by Themes offering, these funds focus on high-profile stocks in sectors that have the potential to shape the future of industries. XYZ (Square), CRM (Salesforce), and PYPL (PayPal) represent leaders in workflow management, technology and payment solutions that embody innovation, resilience, and growth. These ETFs enable investors to align their portfolio with forward-looking trends, while benefiting from the potential for enhanced returns (up and down). This brings the total count of Leveraged Single Stock ETFs at Leverage Shares by Themes to 13. The entire lineup consists of the following: For more information about these ETFs and other products offered by Leverage Shares by Themes, please visit For media inquiries, please contact: Arielle Shternfeld, Director, Communications and Advisor Relations +1 (860) 716-3686 About Themes ETFs: Themes ETFs was established by the Co-Founders as a direct affiliate of Leverage Shares in 2023. Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. Themes ETFs seeks to provide investors with targeted exposure to specific segments of the market via its low-cost ETFs. For more information, visit About Leverage Shares: Leverage Shares is the pioneer and largest issuer of single stock ETPs in Europe.1 The company was launched in 2017 by CEO Jose Gonzalez-Navarro, COO Dobromir Kamburov and General Counsel Tracy Grant (the 'Co-Founders') and has 160+ ETPs offering both leveraged and unleveraged exposure to single stocks, ETFs and commodities across various exchanges in Europe. Named Best ETP Provider in 2021 in the International Financial Awards. For more information, please visit 1Source: Leverage Shares, as of 9 October 2024, by AUM and trading volumes. Investment involves significant risk. AMDG, ARMG, ASMG, COIG, NVDG, TSLG, and TSMG are designed to provide investors with amplified returns (up and down) on innovative companies in the technology sector. The Funds are not suitable for all investors. The Funds are designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. The Funds are not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Funds will lose money if the Underlying Stock's performance is flat, and it is possible that the Funds will lose money even if the Underlying Stock's performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day. PERFORMANCE DISCLOSURE The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor's shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Returns for performance for one year and under are cumulative, not annualized. Short term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. For additional information, see the fund(s) prospectus. INVESTMENT RISKS: Investing in the Funds involves a high degree of risk. As with any investment, there is a risk that you could lose all or a portion of your investment in the Funds. An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about Themes ETFs. To obtain a Fund's prospectus and summary prospectus call 886-584-3637. A Fund's prospectus and summary prospectus should be read carefully before investing. An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus. Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. The funds are distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1000, Denver, Colorado 80203). Themes ETFs are not sponsored, endorsed, issued, sold, or promoted by these entities, nor do these entities make any representations regarding the advisability of investing in the Themes ETFs. Neither ALPS Distributors, Inc, Themes Management Company LLC nor Themes ETFs are affiliated with these entities.
Reuters
13-02-2025
- Business
- Reuters
Robinhood shares surge as crypto market frenzy fuels record results
Feb 13 (Reuters) - Robinhood shares surged nearly 16% in premarket trading on Thursday, after the trading platform reported record fourth-quarter revenue and profit on the back of a resurgence in retail trading due to renewed interest in crypto and equity markets. Retail trading rebounded significantly in 2024 as Bitcoin and U.S. stocks hit all-time highs, driven by optimism over easing regulatory hurdles for digital assets and expectations of a soft landing for the economy. The Menlo Park, California-based company blew past Wall Street expectations for quarterly earnings, with transaction-based revenue more than tripling. "The year of 2024 was a near-perfect environment for retail trading," analysts at J.P. Morgan said, adding that Robinhood's expense discipline and introduction of new products are translating into higher profits. Long dominated by high-profile names such as Vanguard, Charles Schwab (SCHW.N), opens new tab and Fidelity Investments, the U.S. brokerage industry was disrupted when Robinhood pioneered commission-free trading in 2013. A decade on, Robinhood is expanding to cater to more seasoned investors and capture market share from industry incumbents. If premarket gains hold, the company will add roughly $8 billion to its market capitalization. 'TRUMP BUMP' Animal spirits took over the crypto sector in November after Donald Trump secured a second term in the White House. His pledge to make the U.S. the "crypto capital of the universe" and his pro-industry stance propelled Bitcoin past $100,000 for the first time, igniting a broad rally across the market. "Trading volumes in equities, options and crypto surged in the fourth quarter, which is a sign that retail traders have confidence in all risk markets across the board," said Paul Marino, Chief Revenue Officer at Themes ETFs. Robinhood's transaction-based revenue from crypto trading surged over 700% in the fourth quarter to $358 million. "Its hard to predict when the transaction revenue will end, but perhaps the long historical investment norm of buy and hold has retired with the baby boomers," Marino added.
Yahoo
05-02-2025
- Business
- Yahoo
Arm's ‘Monster' Valuation Put to Test as DeepSeek Angst Lingers
(Bloomberg) -- Arm Holdings Plc has fared better than most semiconductor stocks in the days since DeepSeek sparked concerns about the outlook for spending on artificial intelligence gear — but its steep valuation leaves it with plenty to prove. State Farm Seeks Emergency California Rate Hike After Fires Transportation Memos Favor Places With Higher Birth and Marriage Rates Citadel to Leave Namesake Chicago Tower as Employees Relocate NYC's Newest Transit Leader Builds a Worker-Driven Strategy San Francisco Wants Wealthy Donors to Help Fix Fentanyl Crisis With its chip designs used in smartphones, automobiles and data centers, Arm is expected to benefit more from the proliferation of AI-infused devices than many peers. Investors are seeking reassurance when it reports earnings later Wednesday, as uncertainty lingers over companies tied to the build out of AI infrastructure. 'When you look at its market share with autonomous driving, or robotics, or mobile tech, it is really well positioned for any environment,' said Paul Marino, chief revenue officer at Themes ETFs. 'It may have to adapt, and there will be volatility, but even at high valuations I think the model offers the ability for growth.' While DeepSeek has shaken confidence in some areas of the chip industry, it has also stoked optimism in others that the development of new AI services will happen faster. That could help companies such as Arm and Qualcomm Inc., whose products are used in so-called edge devices such as phones, to more rapidly benefit from upgrades and spending. However, there is still a lot of angst about the outlook for some of the biggest beneficiaries of that largess. The Philadelphia Stock Exchange Semiconductor Index has fallen 5% since the start of last week. Much of that has come from Nvidia Corp., whose shares are down 14% over that span. In the latest mixed read on the AI landscape, Alphabet Inc. reported disappointing cloud revenue, underlining concerns about when AI spending will pay off in a more pronounced fashion. At the same time, the Google parent gave a target for capital expenditures that is much higher than expected, a sign that megacaps remain committed to their investments in the technology. Arm remains below a record set in July, but the stock is up almost 40% in 2025, and it rose 4.7% on Wednesday. While net earnings growth is expected to decelerate, it is from a fast pace, going from 176% growth in fiscal 2025 to 64% next year and 43% the subsequent fiscal year. Still, it has far the most expensive valuation in the chip benchmark. At 83 times earnings projected over the next 12 months, the stock is several times as expensive as Nvidia. Arm's sales are projected to expand 23% in its current fiscal year, about a quarter of the growth analysts are anticipating from Nvidia, which trades at almost 27 times forward earnings, according to data compiled by Bloomberg. That leaves a lot to be desired for Dan Morgan, senior portfolio manager at Synovus Trust. While he notes that there are tailwinds benefiting Arm, the valuation is hard to justify with no clear sign that AI is boosting demand for smartphones or personal computers, he said. 'Apple also has a monster multiple, but it delivers rain or shine, and the market is willing to pay up for that,' he said. 'We would be excited to own another AI name, but we already own Nvidia, AMD, Broadcom, Marvell, and there's a lot of competition to get into the portfolio and Arm hasn't proved itself.' There is skepticism on Wall Street. The consensus for Arm's net 2025 earnings has dropped 5.9% over the past three months, while the revenue view is down 0.3%. Fewer than 60% of the analysts tracked by Bloomberg recommend buying the stock, a low ratio among large-cap tech, and shares are 10% above the average price target. Arm's most recent report was mixed. While results topped expectations, helped by its licensing business, its third-quarter forecast disappointed amid weakness in the smartphone market. However, it affirmed its full-year forecast. Rosenblatt Securities is among those keeping the faith, expecting the results to show 'modest upside' and affirming a buy rating, in part due to positive trends with average selling prices. Tech Chart of the Day Meta Platforms Inc. rose for a 12th straight session on Tuesday, the longest winning streak in the Facebook parent's history. The stock gained more than 15% over the streak, adding roughly $240 billion in market value. Much of the advance followed Meta's results in late January. Shares fell 0.2% on Wednesday. Top Tech Stories China's antitrust watchdog is laying the groundwork for a potential probe into Apple Inc.'s policies and the fees it charges app developers, part of a broader push by Beijing that risks becoming another flashpoint in the country's trade war with the US. Google parent Alphabet Inc. posted fourth-quarter revenue that missed analysts' expectations after growth in its cloud business slowed, raising concern from investors about the billions the company is spending on artificial intelligence. Advanced Micro Devices Inc. tumbled after giving a disappointing outlook for its data center business, an area where it's struggling to catch up with AI computing leader Nvidia Corp. Chinese e-commerce firm Inc. has renewed its interest in acquiring German electronics retailer Ceconomy AG, according to people familiar with the matter. OpenAI's Sam Altman called India the startup's most important international market after a tripling in users last year, closing a days-long tour of Asia that's taken him from Tokyo to Delhi. Earnings Due Wednesday Premarket Disney New York Times Co. Uber Criteo News Corp DHI Group CDW Vishay Intertech Postmarket Qualcomm MicroStrategy Cognizant PTC Inc. Skyworks Coherent Corp Tenable SiTime ASGN Impinj FormFactor TTM Tech LiveRamp ePlus PC Connection Silicon Motion Alpha & Omega Semi Digi International Netgear Digital Turbine --With assistance from Ian King and Subrat Patnaik. (Updates to afternoon trading.) Amazon and SpaceX Want In on India's Satellite Internet Market Inside Elon Musk's Attack on the US Government Orange Juice Makers Are Desperate for a Comeback Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P. Sign in to access your portfolio
