Latest news with #Q1
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Why Okta Stock Plunged on Wednesday
Cybersecurity specialist Okta (NASDAQ: OKTA) took a tumble Wednesday, falling 14.6% through noon ET. The crazy thing is, Okta's news looked pretty good. Wall Street anticipated Okta would report fiscal Q1 2026 profits of $0.77 per share, adjusted for one-time items, on sales of $680.1 million. In fact, Okta said it earned $0.86 per share on sales of $688 million. Okta's Q1 earnings What's not to like about that? Well, there are a few caveats and quibbles. Revenue grew a respectable 12%, which is good. However, while Okta beat on "adjusted" earnings, its actual earnings, as calculated according to generally accepted accounting principles (GAAP), were a lot less than the adjusted figure -- just $0.35 per share. Still, that number was a lot better than last year's Q1, when Okta lost $0.24 per share. What's more, Okta reported positive free cash flow of $238 million for the quarter, roughly four times its reported "profit," and up 11% year over year, in line with revenue growth. Is Okta stock a sell? Turning to guidance, Okta told investors its sales will grow about 10% in Q2, and 9% to 10% for fiscal 2026 as a whole. The company didn't give GAAP earnings numbers, couching guidance in "adjusted" terms again. Still, the company's predictions of an $0.83 or $0.84 profit in Q2, and anywhere from $3.23 to $3.28 per share for the year, were all comfortably ahead of analyst estimates. So why are investors selling Okta stock today? I can only imagine it's the valuation that's spooking them. Priced at 24.5 times trailing free cash flow, Okta stock looks a bit rich for low-teens sales and FCF growth. And growth is slowing, too. It's not a great look for a supposed growth stock. Should you invest $1,000 in Okta right now? Before you buy stock in Okta, 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 Okta 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%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 May 19, 2025
Entrepreneur
15 hours ago
- Business
- Entrepreneur
Meta's Institutional & Insider Data Fuels Bulls Despite Disparity
Meta is seeing a split in investor behavior: institutions are buying, but insiders are selling. What does this divergence signal about the future of Meta stock? This story originally appeared on MarketBeat [content-module:CompanyOverview|NASDAQ:META] Magnificent Seven stock Meta Platforms (NASDAQ: META) is seeing a huge divergence in trading activity when it comes to two important groups: institutions and insiders. This analysis will dive into what these groups each are indicating about Meta going forward, and provide perspective on what they mean overall. Institutions Favored Buying Meta to A Tune of $12 Billion in Q1 When it comes to institutional buying, MarketBeat data indicates that buyers are extensively outweighing sellers. The data comes from these investment firms' 13F filings that came out in mid-May. However, 13F filings have a 45-day lag. Thus, this data only goes through Mar. 31 and doesn't reflect whether these investors are buying or selling today. Still, the most recent data provides insight into how smart money investors viewed the stock in Q1. In Q1, institutional buyers poured $30 billion into the tech stock. Meanwhile, sellers reduced their stakes by $18 billion, resulting in net purchases of $12 billion. This is a solidly bullish sign for Meta as institutions generally preferred to purchase shares rather than sell. However, the price at which these investors bought or sold is unknown, making it difficult to decipher at what prices they may or may not see value in Meta stock. But, as of the May 27 close, Meta is trading around 11% above its lowest price in Q1. This indicates buyers wouldn't have achieved much upside in the stock so far and still see value. The stock is also trading essentially in line with its average closing price of just under $643 in Q1. This paints an even more bullish picture, considering these buyers likely didn't purchase at the stock's lowest price. Insiders Are Getting Out of Meta, but Context Is Needed The company's insider transaction data does not look flattering at first glance. In Q1, MarketBeat estimates that insider selling came in at $386 million. Meanwhile, MarketBeat recorded no insider purchases. Insiders are looking to offload shares rather than doubling down on the stock to increase its value. This is a seemingly bearish signal. Note that insider transactions typically only have one to two days lag. As such, the company saw an additional $31 million in selling in Q2. Still, famed investor Peter Lynch's quote can help balance out the seemingly negative picture that insider selling paints around Meta. Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise." While the quote largely focuses on why insider buying is bullish, it also refutes the idea that insider selling is assuredly bearish. It describes that just because insiders are selling doesn't mean they think the stock will go down. Insiders tend to have a disproportionate amount of their wealth concentrated in the company they work for. This is because a significant part of the company's overall compensation is stock. To manage this risk, insiders are often advised to sell their shares to diversify their portfolios. Diversification is simply a prudent financial strategy. It doesn't necessarily indicate a lack of confidence in the future success of a stock. Adding to this concentration risk is the fact that these insiders' salaries are also dependent on the company's success. Falling stock prices make layoffs more likely. If this happens, insiders risk a double whammy of bad news. They could lose their income while also seeing their investment portfolio decline significantly. Selling shares helps mitigate this risk. These examples provide strong reasons why insider selling doesn't make a company's shares destined to fall. Still, the huge dispersion in insider buying versus selling is a bit worrisome. Meta's Institutional & Insider Transaction Data Adds to Bullish Views [content-module:Forecast|NASDAQ:META] Meta's institutional and insider transaction data seem to be in conflict. However, the factors discussed above significantly mitigate the negative conclusions that investors could draw from insider data. These insiders often receive so much stock-based compensation that buying more Meta stock doesn't make much sense. The fact that Meta paid out over $4.1 billion in share-based compensation in Q1 supporting this idea. That figure far exceeds the $417 million in insider selling in 2025. This means that despite the sales, Meta's total insider holdings continue to grow. Overall, the large number of net institutional purchases and insider data lend support to a moderately bullish view on Meta. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Reuters
21 hours ago
- Business
- Reuters
French economy growth confirmed at +0.1% in first quarter
May 28 (Reuters) - France's economy grew slightly in the first quarter, final data from statistics office INSEE showed on Wednesday, confirming the preliminary reading of +0.1%. A Reuters poll of 24 economists had on average forecast the same figure.
Globe and Mail
a day ago
- Business
- Globe and Mail
Fountain Asset Corp. Announces Its Financial Results for the Quarter Ended March 31, 2025
TORONTO, May 27, 2025 (GLOBE NEWSWIRE) -- Fountain Asset Corp. (TSXV:FA) ('Fountain' or the 'Company') would like to announce its financial results for the three months ended March 31, 2025 (' Q1/25 '). Highlights from Q1 2025: NAV of $5.57 million ($0.09/share) at March 31, 2025 compared to $5.51 million ($0.09/share) at December 31, 2024, representing a 1.0% increase on a quarter over quarter per share basis; Net comprehensive income of $0.05 million compared to net comprehensive losses of $0.45 million for the quarter ended March 31, 2024 (' Q1/24 '); Total gains from investment activity was $0.39 million compared to losses of $0.28 million for Q1/24; Net realized gains on the sale of portfolio investments of $1.29 million compared to net realized losses of $0.32 million for Q1/24; Net unrealized losses on portfolio investments of $0.96 million compared to net unrealized gains of $0.04 million for Q1/24; Total expenses of $0.34 million compared to $0.17 million for Q1/24; and Operating expenses of $0.16 million compared to $0.17 million for Q1/24. During Q1/25, the Company realized $1.29 million in gains on the sale of certain portfolio investments. The company saw a slight decrease in its portfolio of publicly traded companies as a result of the disposition of its holdings of certain investments. These decreases were offset by increases in the Company's new investment recent investments. The Company continued to find ways to reduce its operating expenses in Q1/25, which contributed to the profitability of the Company in Q1/25. As at March 31, 2025, the Company's net assets were valued at $5.57 million or $0.09 per share compared to $5.51 million or $0.09 per share at December 31, 2024. Andrew Parks, CEO of Fountain stated, 'During Q1/25, Fountain made meaningful progress toward its growth-oriented goals, generating significant realized gains. This strong start to the year strengthens the Company's financial position as it continues to realign its investment portfolio in order to capitalize on market trends and strategic opportunities. Fountian remains committed to reducing its ongoing expenditures while maximizing revenues to unlock the Company's full potential.' A full set of the Q1 2025 unaudited financial statements and the management discussion & analysis are available on SEDAR+. About Fountain Asset Corp. Fountain Asset Corp. is a merchant bank which provides equity financing, bridge loan services (asset back/collateralized financing) and strategic financial consulting services to companies across many industries such as marijuana, oil & gas, mining, real estate, manufacturing, retail, financial services, and biotechnology. Forward-Looking Statements Certain information contained in this press release constitutes forward-looking information, which is information relating to possible events, conditions or results of operations of the Company, which are based on assumptions and courses of action and which are inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information in this press release includes, but is not limited to, growing Fountain's capital base and a strong pipeline going forward. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the level of bridge loans and equity investments completed, the nature and credit quality of the collateral security and the nature and quality of equity investments, and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated August 17, 2022 filed on SEDAR+ at Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information: please contact Andrew Parks at (416) 456-7019 or visit Fountain Asset Corp.'s website at
GSM Arena
a day ago
- Business
- GSM Arena
Smartphone market in Europe slips 2%, premium phones on the rise
Canalys just came out with its report on the European market for Q1 2025, which shows a modest decline in overall sales. The whole market slipped 2%, but there's a bit of nuance here. Analysts reveal that vendors sold 32.4 million units, down from 33.1 million in Q1 2024, but about 32% of those sales were premium phones priced above €800. Of course, Apple and Samsung are the biggest winners here. Apple scored a 10% increase in total sales year-on-year, securing second place with a 22% market share, while Samsung grew less than 1%. Nonetheless, Samsung sits atop the charts with a 37% market share and reached its highest-ever average sales price on the Old Continent. Xiaomi takes the third spot with a 16% market share and a 2% decline in sales due to weak demand for budget devices. This marks the company's twentieth consecutive quarter in the top five in Europe. Motorola and Google round out the top five. Q1 2025 was Google's first quarter in the top five in Europe, recording 0.9 million shipments and an outstanding 43% growth in the region. Looking ahead, analysts believe that the strong demand for Samsung and Apple premium devices will continue and squeeze out the competition, while European regulations such as eco-design and battery directives will continue to create unfavorable market conditions for low-end devices. In fact, the forecast is a 3% decline in sales for 2025 with a modest recovery of 1% in 2026. Vendors will be forced to improve efficiency and profitability in the region to stay afloat. Source
