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Business Insider
4 days ago
- Business
- Business Insider
Too Much ‘Boom and Splat' but McDonald's Can Serve Up Sales Lift in Q2
Shares in fast food giant McDonald's (MCD) were less tasty today despite analysts suggesting it was on track to meet Q2 sales expectations with a little help from Minecraft. Confident Investing Starts Here: Promotional Success Five-star TipRanks-rated analyst Andrew Charles of TD Cowen said the group was on track to hit same-store sales of 2.8%, boosted by its collaboration with the film A Minecraft Movie in April. This included a Minecraft Movie meal with collectibles. However, despite the success of the promotion, Charles, who talked to a number of industry experts about the iconic fast-food brand, said it showed how McDonald's was the victim of a boom/splat mentality. This means that the business continues to see 'short-term spurts in reaction to promotions before trends quickly return to softer, pre-promotion levels.' Indeed, in its Q1 earnings in early May it saw revenue decline 3% year-over-year to $5.96 billion. More importantly, global comparable sales were down 1%, with U.S. sales dropping 3.6% due to fewer customers Nice Pie Instead, the experts Charles spoke to said the company had to return to a more durable sales growth pattern. This includes innovating at lower prices rather than discounting core items; implementing a more frequent cadence of menu innovation; and relaunching successful past menu items such as Fried Apple Pies. The experts were more bullish on a second-half sales improvement this year, fueled by the addition of McCrispy Strips to its menu. Despite this, Charles expects its shares to remain range-bound between $305-$320 until more durable sales growth is evident. He has a price target of $305 on the stock and a Hold rating. Is MCD a Good Stock to Buy Now? On TipRanks, MCD has a Moderate Buy consensus based on 14 Buy and 10 Hold ratings. Its highest price target is $364.
Business Insider
23-04-2025
- Business
- Business Insider
‘Wild, Lumpy and Volatile,' But CoreWeave Stock (CRWV) is Still a Buy, says Analyst
Shares in AI group CoreWeave (CRWV) raced 8% higher today after Wall Street analysts began coverage of the stock. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. CoreWeave Likes its Chips AI cloud computing group CoreWeave, which is backed by semiconductor giant Nvidia (NVDA) went public last month on the Nasdaq exchange at $39 per share. It did zoom to a high of over $60 but now sits at just over $38 per share after it and other AI-related stocks were blasted by concerns over President Trump's tariffs policy. There have also been worries that it just doesn't have enough customers with 62% of its 2024 revenues coming from Microsoft (MSFT). CoreWeave provides computing power to Big Tech, using its mass supply of Nvidia GPUs. According to a report in Yahoo Finance, CoreWeave is one of the largest holders of AI chips. JPMorgan estimates it has the fifth- to sixth-largest pool of GPUs in existence. A number of investment firms gave the group a Buy rating as their optimistic views on the development of the AI market outweighed any concerns over the volatility of the stock. Unrelenting AI Appetite One of those Buys came from four-and-a-half-star TipRanks-rated Jefferies analyst Brent Thill who believes the company's shares will rise more than 40% to $51 over the next 12 months. 'While there are concerns over the durability of CRWV's business model, we believe that the unrelenting appetite for AI compute minimizes the downside risks,' said Thill. He added that the AI buildout is still in the very 'early innings' and CRWV is in a prime position to scale and capture the opportunity. JPMorgan, four-and-a-half-star TipRanks-rated analyst Mark Murphy, who holds a Buy rating and $43 price target was more on the fence about CoreWeave. 'There could be a wide range of outcomes for CoreWeave. For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors,' he said. Indeed, not everyone was getting carried away with Citi giving the stock a Neutral rating. 'We remain cautious due to significant reliance on MSFT. This dependency poses risks as MSFT has signaled AI CapEx slowdowns,' it said.
