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Business Recorder
40 minutes ago
- Business
- Business Recorder
Trump's tariff tally: $34 billion and counting, global companies say
SAN FRANCISCO/NEW YORK/BENGALURU: President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyzes decision making at some of the world's largest companies. Across the United States, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. US court blocks Trump's tariffs, says president exceeded his authority Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses. The $33 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed. 'You can double or triple your tally and we'd still say … the magnitude is bound to be far greater than most people realize,' said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritize new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Trump's tariffs to remain in effect after appeals court grants stay Volvo Cars, one of the European automakers most exposed to U.S. tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this year. Trump has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the United States, Trump has said. 'The Administration has consistently maintained that the United States … has the leverage to make our trading partners ultimately bear the cost of tariffs,' said White House spokesperson Kush Desai. Tariff talk On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. 'I don't think corporations have an awful lot of visibility about anything in the future,' said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said, 'If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide.' Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter through April through December, versus a growth rate of 11.7% a year earlier, according to data compiled by LSEG. Automakers, airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the United States will also raise labor costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300 million in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the U.S., a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the United States. Johnnie Walker whiskey and Don Julio tequila maker Diageo said earlier this month it would cut $500 million in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150 million hit to its operating profit every year. 'Tariffs could significantly drive up the cost of a nice night out - or even a cozy night in,' said Zak Stambor, analyst with eMarketer.
Yahoo
an hour ago
- Business
- Yahoo
If You Invested $10K In Equinix Stock 10 Years Ago, How Much Would You Have Now?
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Equinix Inc. (NASDAQ:EQIX) is the world's digital infrastructure company, which provides colocation data centers and interconnection services, allowing businesses to connect and collaborate in a digital environment. The company's stock traded at approximately $270.01 per share 10 years ago. If you had invested $10,000, you could have bought roughly 37 shares. Currently, shares trade at $876.84, meaning your investment's value could have grown to $32,474 from stock price appreciation alone. However, Equinix also paid dividends during these 10 years. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Equinix's dividend yield is currently 2.17%. Over the last 10 years, it has paid about $127.10 in dividends per share, which means you could have made $4,707 from dividends alone. Summing up $32,474 and $4,707, we end up with the final value of your investment, which is $37,181. This is how much you could have made if you had invested $10,000 in Equinix stock 10 years ago. This means a total return of 271.81%. In comparison, S&P 500 total return for the same period is 231.70%. Equinix has a consensus rating of "Buy" and a price target of $936.33 based on the ratings of 30 analysts. The price target implies a nearly 7% potential upside from the current stock price. On April 30, the company announced its Q1 2025 earnings, posting FFO of $9.67, compared to the consensus estimate of $9.09, and revenues of $2.23 billion, compared to the consensus of $2.22 billion, as reported by Benzinga. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. 'We delivered a strong start to the year, exceeding our expectations for both bookings and financial performance,' said CEO Adaire Fox-Martin. 'Demand for our digital infrastructure and services remains robust. This, together with a healthy balance sheet and customer momentum across a full breadth of geographies, industries, segments, and products, reaffirms our confidence in our strategy and ability to create even greater value. As a result, we raised our guidance across our key financial metrics." For its full-year 2025, the company expects revenues in the range of $9.18 to $9.28 billion. AFFO per share is expected to be $37.36 and $38.17. Given the historical stock price appreciation and expected upside potential, growth-focused investors may find Equinix stock attractive. Furthermore, they can benefit from the company's solid dividend yield of 2.17% and consistent hikes. Equinix has raised its dividend consecutively for the last 10 years. Read Next: Invest Where It Hurts — And Help Millions Heal: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Image: Shutterstock Send To MSN: 0 This article If You Invested $10K In Equinix Stock 10 Years Ago, How Much Would You Have Now? originally appeared on
Yahoo
an hour ago
- Business
- Yahoo
Wall Street's 'Doctor Doom' tells BI about his move into money management, where he's off to a market-beating start
Nouriel Roubini's America Atlas Fund has outperformed amid market volatility and inflation risks. Roubini's fund launched in November 2024 and is up 4%. The fund has heavy allocations to short-term Treasurys and gold. On a cold night in December, Nouriel Roubini stood in a dark room at Bloomberg's Manhattan headquarters and prophesied a menacing future for financial markets. Yields on 10-year Treasurys would soar to 8% thanks to persistent inflation, he said at Bloomberg's ETFs in Depth conference. That would send the S&P 500 and Nasdaq plummeting. The scene was perfectly on brand for the famously bearish economist widely known as Dr. Doom. That's why it might have been easy to dismiss his gloomy proclamations. Perhaps even more of a reason to discount Roubini's warnings was that he had just launched an ETF, the America Atlas Fund (USAF), meant to act as an alternative to the fixed-income segment of the traditional 60/40 portfolio. A cynical listener could have interpreted his speech as a pitch to buy his product because stocks and bonds would perform poorly. But six months later, the evidence is irrefutable: Roubini has nailed his opening act as a fund manager. Since USAF's launch in November, the S&P 500 is flat, suffering a violent 20% drawdown in the interim. Long-end Treasurys have also been volatile, and have sold off in tandem with stocks. Many of the driving forces behind those moves have been those inflation risks that Roubini warned of, including tariffs and restoring, and government spending. Meanwhile, USAF is up 4% and fell only 2% during the market's "Liberation Day" tantrum when stocks tanked and bond yields spiked. The fund has been volatility-resistant thanks to its heavy allocations to short-end Treasurys (about 50% of the portfolio) and gold (19%). The remaining holdings are a mix of commodities, REITs, and TIPS, and alternative investments. In other words, Roubini's timing couldn't have been better, and his warnings — at least directionally speaking — have been spot on. It's been a dream start for the New York University professor, who often gets flak for his regular pessimism. "Sometimes people say, 'You talk about stuff, but talk is cheap,'" Roubini told BI. "'Put your money where your mouth is. Have some skin in the game.'" The 67-year-old Roubini, who is most known for predicting the 2008 financial crisis, could have simply kept on with his work at NYU and continued pontificating about where the economy was headed. But the economist wanted to take on a fresh challenge. "In different stages in life, you do different things," he said. In the final chapter of Roubini's 2022 book, "MegaThreats: Ten Dangerous Trends That Imperil Our Future, And How to Survive Them," he lays out how investors might protect themselves from downside risks. In recent years, he decided it was time to put those ideas to the test. It has always been a logical next step for him to wade into the world of asset management, he said. Plus, it's a chance to respond to his many detractors who have questioned the weight behind his predictions since he didn't have any money under his purview. "After a career in academia, of policy, of providing economic advice, more and more people say, 'If you are that smart, why don't you try to also manage money rather than just talking about it," he continued. "So it was a natural thing that would have eventually happened." It remains to be seen if Roubini can keep his string of success going in the years ahead. The outlook informing his positioning is that persistent inflation in the 5-6% range will continue to put upward pressure on 10-year Treasury yields. That's why he's sitting heavily in short-term Treasurys at the moment, collecting a similar yield to longer-term assets while not having to endure the same volatility. If 10-year rates were to get up toward 8%, that would be the right time to buy in, he said. His views on inflation are well above the consensus in markets and among Wall Street banks, though it's still unclear what impact tariffs and potential tax cuts will have on consumer prices. If inflation fears dissipate, Roubini's exceptionally well-timed introduction to the asset management space may very well prove to be beginner's luck. Either way, investors now have a way to grade Roubini's forecasts in real time. "One thing is to talk about money, and another is managing it," Roubini said. "You see right away the feedback between your ideas and what happens in the real markets." Read the original article on Business Insider
Yahoo
an hour ago
- Business
- Yahoo
Goldman Sachs (GS) Stock Dips While Market Gains: Key Facts
The most recent trading session ended with Goldman Sachs (GS) standing at $604.86, reflecting a -0.59% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq increased by 0.39%. Prior to today's trading, shares of the investment bank had gained 11.12% over the past month. This has outpaced the Finance sector's gain of 4.15% and the S&P 500's gain of 6.69% in that time. Market participants will be closely following the financial results of Goldman Sachs in its upcoming release. The company plans to announce its earnings on July 16, 2025. On that day, Goldman Sachs is projected to report earnings of $9.82 per share, which would represent year-over-year growth of 13.92%. At the same time, our most recent consensus estimate is projecting a revenue of $13.71 billion, reflecting a 7.69% rise from the equivalent quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $44.41 per share and revenue of $55.52 billion, indicating changes of +9.55% and +3.76%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Goldman Sachs. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.77% lower within the past month. Goldman Sachs currently has a Zacks Rank of #3 (Hold). Looking at its valuation, Goldman Sachs is holding a Forward P/E ratio of 13.7. This signifies a discount in comparison to the average Forward P/E of 14.86 for its industry. Meanwhile, GS's PEG ratio is currently 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.21 at yesterday's closing price. The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 21% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Mint
an hour ago
- Business
- Mint
Nvidia's most impressive feat yet? How the chip maker overcame a China ban.
The artificial intelligence boom is roaring once again—and Nvidia is reaping the benefits. On Thursday, a post-earnings rally briefly made Nvidia the most valuable company in the world. By the close it was No. 2, just barely behind Microsoft, with a market value of $3.4 trillion. This came a day after the company reported solid fiscal first-quarter results and gave a better-than-feared revenue outlook for the current quarter. But the numbers don't do the quarter justice. Nvidia handled the loss of a massive business line and still generated impressive growth. Revenue for the April quarter was up 69% year-over-year to $44.1 billion, ahead of expectations. Nvidia's data-center business, primarily driven by AI chip demand, grew even faster, up 73% from last year to $39.1 billion. To be sure, Nvidia's guidance was more mixed. For the current quarter ending in July, Nvidia provided a revenue forecast range with a midpoint of $45 billion, which was below analysts' consensus of $45.9 billion. It's the first time since Nvidia started its AI supercycle two years ago that the chip maker disappointed with its outlook. But in recent weeks, some on Wall Street had come to expect much worse. The cause of the miss is largely outside of Nvidia's control. It stems from President Donald Trump's decision in mid-April to effectively ban sales of the company's H20 chips to China. Nvidia wisely quantified the revenue impact at $10.5 billion in total across the April and July quarters. That helped investors quickly realize that Nvidia would have significantly raised guidance versus consensus if not for the H20 effect. It suggests there's better than expected strength in the non-China business. Sure enough, after an initial earnings bump, Nvidia's gains accelerated in after-hours trading. On Thursday, the stock finished up 3.3%, making it one of the S&P 500's best performing stocks on the day. The good news for Nvidia investors is the market is forward-looking. The China headwinds have been largely de-risked, with an outlook that's reset for potential upside going forward. Even with all the growth to date, Nvidia CEO Jensen Huang said demand for the company's AI infrastructure products is still improving. 'AI is this incredible technology that's going to transform every industry," he said on the earnings call with investors. 'We're really at the very beginning of it, because the adoption of this technology is in its early, early stages." Demand from the largest technology companies continues to rise. Heading into the latest earnings season, some on Wall Street were concerned that the industry would lower its full-year capex budgets to spend hundreds of billions on AI infrastructure amid macro uncertainty. Instead, the opposite has happened. Meta Platforms revealed it planned to spend more on AI and Microsoft said it was more supply-constrained for AI capacity than they anticipated. Of course, robust demand doesn't mean much if you can't serve it. Nvidia's management put to rest several supply side concerns this week too. Chief Financial Officer Colette Kress said the company's Blackwell GPU production is ramping up, with major cloud computing companies now deploying nearly 1,000 top-of-the-line GB200 NVL72 server racks on a weekly basis. Each rack costs several million dollars. Kress said Microsoft alone is expected to purchase hundreds of thousands of GB200s to serve its customers. More important, Nvidia's next AI server, the Blackwell Ultra, is on track. The company sent test shipments of the Blackwell Ultra GB300 NVL72 AI server to some customers in May, Kress said, and expects to start production shipments later this quarter. As a result, Wall Street is getting more optimistic about the prospects for Nvidia's second half. The report showed an 'acceleration of the business other than the China headwinds," Morgan Stanley analyst Joe Moore wrote. 'Everything should get better from here." Huang pointed to several growth drivers behind the rising demand for AI; so-called reasoning, agents, and sovereign AI. The latest AI models have a reasoning feature that allows them to reflect more thoroughly on a query by performing numerous thought computations to arrive at a higher-quality response. Huang says reasoning consumes more than 100 times more compute resources compared with prior AI models. 'Reasoning models are driving a step-function surge in inference demand," he said. Inference is the process of generating answers from AI models. Then there are the AI agents, which according to Huang, are starting to become a reality. Agents can take simple directions and complete multistep computer actions often used to automate tedious business and personal tasks. 'Agentic AI is game changing," he said, adding the technology is finally working and being successfully implemented by enterprises. Lastly, there's sovereign AI. Nvidia recently announced large deals with Saudi Arabia and the United Arab Emirates. The first phase of Saudi Arabia's AI factory buildout features an order for 18,000 Nvidia AI servers with potential for 'several hundred thousand" GPUs over the next five years. The U.A.E. agreement expects its first AI cluster to go live next year. Huang said on the conference call that there are 'a whole bunch" of other deals that haven't been announced, noting that he would be traveling to Europe next week to announce some of them. Nvidia stock is now up nearly 40% from the trade war lows in April. It's up 4% on the year. Even after the latest rally, the stock isn't expensive, trading at 29 times forward earnings estimates, while analysts expect 45% sales growth over the next 12 months. Compare those numbers to Apple, which trades at 28 times with 4% sales growth. Nvidia is far more attractive on a valuation-to-growth basis. With every earnings report, Nvidia looks more like a once-in-a-generation growth story akin to the early years of the PC revolution and the iPhone; those are trends that both lasted more than a decade. For Nvidia, we're only two years in. Write to Tae Kim at
