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Yahoo
05-08-2025
- Business
- Yahoo
Snap reports 'better-than-feared' Q2: Why the stock is sinking
Snap Inc. (SNAP) stock plunges after the Snapchat parent company reported second quarter results. Roth Capital Partners managing director and senior research analyst Rohit Kulkarni shares his instant reaction to the social media company's earnings print, explaining that user engagement, advertising revenue, and outlook are some of the factors driving the after-hours stock move. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. Snap shares have plunged right now after reporting second-quarter sales shy of Wall Street's estimates as the owner of photo-sharing app Snapchat dealt with a technical issue that hit revenue. To walk through this, we've got Rohit Kokarney, Roth Capital Partners, managing director and senior research analyst. Rohit, it is good to see you. So looks like they reported Q2 sales kind of just shy of consensus. I'm seeing sales 1.345 billion. It looks like the street was at 1.35 billion. The stock actually, you know, you can see down hard right now in the after hours. Walk us through the results, Rohit. What do you make of the report? Hey, uh, thanks for having me, Josh. I think, uh, in isolation, uh, the the numbers are okay. I would call them as better than feared in, uh, analyst speak, um, given where Snap stock has been over the last couple months. Having said that, if you take that along with the rest of the ad complex, Google, meta, Reddit, uh, even Amazon and how, uh, the numbers of those companies have trended over the last, call it a week or so, uh, Snap results do not look very encouraging, growing ad revenues mid to high single digits while almost every company so far has exceeded expectations materially and raised outlook for 3Q given where we are in the current economic cycle. Um, so that's what is affecting the stock sentiment here that in isolation results seem to be okay, but along with the rest of the ad complex, they are not encouraging at all. To your point, I mean we did see strong numbers from from Alphabet, from Meta, but I mean the stock down here, listen, it was already down nearly 15% this year heading into the print. It's down another quick 15% in the after hours. This after-hour move, is it justified in your opinion, or was this an overreaction? Uh, I would think, uh, stock should be down perhaps at least high single digits, maybe double digits. Perhaps there is a line to recovery, but, uh, but regardless, uh, these results are not as positive for the company as one would have hoped, given, uh, kind of where we thought that for the company's stock to move higher, they probably need to have at least inline results. The EBITDA numbers missed, uh, what we were modeling for 2Q. And even the third quarter guidance is just bracketing our expectations. So all in, I think estimates would probably remain unchanged and stock probably gets hit driven by the sentiment when you combine it with the rest of the ad complex. So that's where we are at on Snap. I think, uh, on top of that, a smaller company growing ad revenues mid-single digits isn't something that we are, we hope to hear consistently. So Rohit, I know you're neutral on Snap, right? You're on the sidelines here. What do you tell your clients would get you more constructive on this name? What would you need to see? Uh, I think this company has been in transition over the last, uh, probably 9, maybe 12 months. The transition is happening where the company was mostly focused on brand advertising, which is top of funnel brand spend. And now they have been investing very heavily on the bottom of funnel direct response advertising. And in my opinion, that part of the business, which is probably 60 to 65% of revenues, that's growing solid double digits. There's a part of the business that's declining double digits. So on a blended basis, the company is still growing high single digits, uh, as such. So I think what we would like to see is how quickly can they recover that part of the business which is brand spend, which has been declining consistently over the last 12 perhaps 15 months. Um, they they have to figure out a plan to stop that bleed. And so the overall numbers start to kind of indicate more positive momentum as we think they have been having in the in probably 60 to 70% of the business right now. You know, on the macro, uh, Rohit, we we do have this economic data coming in. It it suggests some some softening, some weakening. What could that mean for the broader digital ad market, Rohit, and the key players in the market that you cover? Um, typically like when there is elevated volatility, elevated macro uncertainty, um, what the way small and medium-sized businesses tend to react very quickly is by aggregating spend on larger platforms, uh, which is most likely Facebook, that is meta, and Google, and then sellers, e-commerce companies on Amazon. So that tends to hurt in the near term smaller advertising digital media companies that tend to have a greater proportion of experimental budgets. Uh, those experimental budgets expand when we are in expanding macroeconomic situation, and they go to zero as soon as uncertainty rises. So if tariff uncertainty, if overall uncertainty into second half shopping period starts to rise, I think, uh, kind of dollars gravitate towards larger companies and they are probably more safer bets both for advertisers and investors. Final question, Rohit, on Gen AI. And I'm just curious how you think about that trend, that theme impacting the digital ad market. And does that does that trend, Rohit, does that favor certain names more than others in this space that you cover? Uh, so far I would tell you I think kind of stating the obvious, Josh, is that Meta has been kind of the poster child in executing a playbook on Gen AI over the last nine months, uh, much better than its peers. Uh, they have broken down every small step along the way that an advertiser takes on the platform, uh, perhaps creating new, uh, ad pictures, videos, audio, putting them in front of advertisers, consumers, and putting the right ad in front of the right person at the right time, solving that problem at scale. I think Meta has done probably one of the best jobs so far. Everybody's trying to solve that same problem. I think everybody's having a different rate of success. Reddit, Snap, Pinterest have been talking very, very publicly about it. How that evolves into next year's budgets remains to be seen, and that probably moves the needle for who solves that problem using Gen AI tools, offering them to advertisers and making them more successful with the same kind of, making them more efficient with the same dollar spend as such. Rohit, always great to see and to have you on the show. Thank you. Thank you. Thank you, Josh. Related Videos Opendoor, Super Micro, Toast: After-hours trending stocks AMD bull and bear react to Q2 earnings Rivian stock under pressure on mixed Q2 earnings results AMD Q2 results: Sales beat, earnings miss, strong outlook Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Wall Street Is Stubbornly Bullish on Downtrodden Energy Stocks
(Bloomberg) -- Wall Street analysts have high hopes for oil and gas stocks, encouraged by cheap valuations and President Donald Trump's boosterism of the beleaguered energy sector. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Energy boasts the highest percentage of buy-rated equities among the 11 sectors in the S&P 500 Index: roughly three in four members have buy recommendations, compared with roughly half in the broader market, according to data compiled by Bloomberg. Plus, sell-side analysts see energy stocks rising about 16% over the next 12 months, second only to the health-care segment and roughly double the projected gain for the overall index. Energy stocks — one of three index segments in the red this year — appear to have room to run. They're the cheapest S&P 500 sector based on price-to-earnings ratio, and Trump is a cheerleader for the industry, calling for companies to 'drill, baby, drill.' 'The thesis that some people have is that multiples and valuations are very, very low right now,' Leo Mariani, analyst at Roth Capital Partners, said in an interview. Looking further into the future, the sector is expected to post the highest earnings growth in 2026, according to Bloomberg Intelligence. Challenges ahead Of course, it's understandable why investors may be skeptical about Wall Street's bullish take. US crude prices have dropped about 7% this year, hurt by the fallout from Trump's trade war and a drive by OPEC+ to restore curbed supplies. Also, the sector doesn't have much momentum: Energy stocks have underperformed the market for four of the last five quarters. BMO Capital Markets expects US energy producers' second-quarter earnings to fall 30% compared to the first three months of the year, and for cash flows to drop 15% in the same period because of weaker crude prices, according to analyst Phillip Jungwirth. 'Is there a catalyst to dramatically change that and reverse that over the next 12 months? I'm not sure there's anything that's super clear,' Roth Capital's Mariani said, adding that sentiment in the sector is weak among institutional investors. His price targets for the sector are generally lower than many on the Street. Still, there are reasons to consider the stocks. For one thing, energy stocks have a history of protecting investors against accelerating inflation. They were the top-performing sector in 2022, when US consumer prices were surging. That role as a hedge may come into play again amid the risk that Trump's tariffs lift prices in the months ahead. Then there's Trump's spending bill, which removed credits for renewables and gave oil and gas producers some benefits, even if that hasn't led to an immediate rally in energy stocks. Wall Street analysts may be waiting on further moves from the White House, according to Michael Casper, senior equity strategist at Bloomberg Intelligence. 'Trump was touted as someone that would help US energy producers,' he said in an interview. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Inicia sesión para acceder a tu portafolio
Business Wire
15-07-2025
- Business
- Business Wire
Silver Pegasus Acquisition Corp. Announces Pricing of $100 Million Initial Public Offering
SANTA CLARA, Calif.--(BUSINESS WIRE)--Silver Pegasus Acquisition Corp. (the 'Company') announced on July 14 that it priced its initial public offering of 10,000,000 units at $10.00 per unit. The units will be listed on the Nasdaq and will trade under the ticker symbol 'SPEGU' beginning July 15, 2025. Each unit consists of one Class A ordinary share of the Company, $0.001 par value per share, and one right, each right entitling the holder to receive one-tenth (1/10) of one Class A ordinary share upon the consummation of an initial business combination. Once the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to be listed on the Nasdaq under the symbols 'SPEG' and 'SPEGR,' respectively. The offering is expected to close on July 16, 2025, subject to customary closing conditions. The Company, led by Chairman of the Board of Directors, President, and Chief Executive Officer, Cesar Johnston, is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination in any industry, the Company intends to concentrate its search on businesses with a focus on the semiconductor industry. Roth Capital Partners is acting as book-running manager and sole underwriter for the offering. The Company has granted the underwriter a 45-day option to purchase up to an additional 1,500,000 units to cover over-allotments, if any. The offering is being made only by means of a prospectus. When available, copies of the prospectus may be obtained from Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147 or by accessing the SEC's website, A registration statement relating to the securities was declared effective by the Securities and Exchange Commission on July 14, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Forward-Looking Statements This press release contains statements that constitute 'forward-looking statements,' including with respect to the Company's proposed initial public offering and the Company's search for and/or completion of an initial business combination. No assurance can be given that the offering will be completed on the terms described, or at all, or that the Company will complete an initial business combination. Forward-looking statements are subject to numerous risks, conditions and other uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the Company's offering filed with the U.S. Securities and Exchange Commission (the 'SEC'). Copies of these documents are available on the SEC's website, The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
CNBC
01-07-2025
- Automotive
- CNBC
'Musk is not helping himself': Roth's Irwin on Tesla stock falling after Trump feud reignites
Craig Irwin, Roth Capital Partners, joins 'Closing Bell Overtime' to talk Tesla's stock sliding as Elon Musk reignites his feud with President Trump.
Yahoo
21-06-2025
- Business
- Yahoo
Moleculin Biotech prices 16.08M shares at 37c in public offering
Moleculin Biotech (MBRX) announced the pricing of a public offering consisting of 16,080,000 shares of common stock and Series E warrants to purchase up to 48,240,000 shares of its common stock, at a combined public offering price per share of common stock and accompanying Series E warrants of 37c. The Series E warrants will have an exercise price of 37c per share, are exercisable upon stockholder approval, and will expire five years following the initial exercise date. The offering is expected to close on or about June 23, subject to customary closing conditions. Gross proceeds, before deducting placement agent fees and commissions and offering expenses, are expected to be approximately $5.9M. The Company intends to use the net proceeds from the offering to advance Annamycin and its other two drug portfolios through clinical development, advancing the remainder of the existing portfolio through preclinical studies and into INDs or their equivalent, sponsoring research, and for working capital. Roth Capital Partners is acting as exclusive placement agent of the offering. Maxim Group is acting as financial advisor to the Company. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on MBRX: Disclaimer & DisclosureReport an Issue Promising Developments and Regulatory Progress Drive Buy Rating for Moleculin Biotech's Annamycin Moleculin Biotech's Annamycin Pediatric Study Approved by FDA Moleculin Biotech receives FDA feedback on pediatric study plan for Annamycin Moleculin Biotech announces 'What This Means' virtual investor segment Moleculin Biotech assumed with a Buy at H.C. Wainwright 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
