Latest news with #macroecnomics
Globe and Mail
2 days ago
- Business
- Globe and Mail
Should You Buy, Sell, or Hold ServiceNow Stock at 14.92X P/S?
ServiceNow NOW shares are overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales, NOW is trading at 14.92X, higher than the Computer & Technology sector's 6.21X. Price/Sales (F12M) In terms of share price performance, NOW's shares have lost 4.6% year to date compared with the Zacks Computer & Technology sector decline of 0.3%. The company's shares fell due to a worsening macroeconomic environment following U.S. President Donald Trump's decision to levy tariffs on trading partners, including China and Mexico. However, NOW shares have outperformed the Zacks Computers – IT Services industry's decline of 6.4%. ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. The company's expanding portfolio, accretive acquisitions and a rich partner base have been a key catalyst. YTD Performance Can NOW stock overcome macroeconomic challenges driven by its strong digital transformation growth and robust product portfolio? What should investors do with NOW shares at the current valuation? Let's find out. NOW's Expanding Portfolio Aids Prospect NOW's expanding portfolio has been noteworthy. In May 2025, ServiceNow introduced its Core Business Suite, an AI-powered solution designed to streamline and transform core business operations, including HR, finance, procurement, facilities, and legal, by unifying workflows and automating processes across departments to improve efficiency, reduce time to value, and enhance employee experiences. ServiceNow also announced the launch of AI agents in its Security and Risk solutions, transforming enterprise security by enabling self-defending systems, improving response times, and enhancing risk management in collaboration with Microsoft and Cisco. Further expanding its portfolio in May 2025, NOW announced advancements in autonomous IT, introducing agentic AI capabilities on the ServiceNow AI Platform to drive zero outages, zero downtime, and zero service desk incidents. Acquisitions have also played an important role in expanding NOW's portfolio. In April 2025, ServiceNow announced the acquisition of a company specializing in AI-powered and Configure, Price, Quote solutions. This move is set to bolster ServiceNow's CRM offerings, particularly in sales and order management, by integrating advanced AI capabilities. NOW Benefits From an Expanding Partner Base NOW's strong and frequently updated portfolio is helping it win customers on a regular basis. NOW had 72 transactions of more than $1 million in net new annual contract value (ACV) in the first quarter of 2025. The company expanded its customer relationships, reaching 508 customers with more than $5 million in ACV at the end of the reported quarter, which represents 20% year-over-year customer growth. Its rich partner base includes Amazon's AMZN cloud computing platform, Amazon Web Services (AWS), Microsoft, NVIDIA NVDA, Zoom Communications and Vodafone Group VOD, which has been noteworthy. In May 2025, NOW partnered with Amazon Web Services to launch a bi-directional data integration solution, enabling enterprises to unify data and trigger AI-powered workflows by connecting ServiceNow with Amazon Redshift. The company expanded its partnership with NVIDIA to introduce the Apriel Nemotron 15B reasoning model and a new data flywheel architecture, enhancing the efficiency, accuracy, and real-time decision-making capabilities of enterprise AI agents. This is achieved by leveraging NVIDIA's NeMo microservices and GPU infrastructure. In the first quarter of 2025, ServiceNow partnered with Vodafone Business to launch AI-powered service management solutions. This collaboration with Vodafone aims to enhance customer service by enabling faster query resolution, proactive anomaly detection and streamlined tool deployment. NOW's Earnings Estimate Revision Steady The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $3.53 per share, unchanged over the past 30 days, indicating a 12.78% increase over 2024's reported figure. NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.61%. The consensus mark for second-quarter 2025 revenues is pegged at $3.12 billion, suggesting growth of 18.79% over 2024's reported figure. How Should You Approach ServiceNow Stock? ServiceNow's robust AI portfolio and strong partner base are expected to drive its clientele. However, unfavorable forex amid a challenging macroeconomic environment, stiff competition and lingering concerns related to tariffs are a concern. NOW stock's stretched valuation makes the stock unattractive for value investors. ServiceNow currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> 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 Inc. (AMZN): Free Stock Analysis Report Vodafone Group PLC (VOD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report
Yahoo
24-05-2025
- Business
- Yahoo
Bitcoin Breaks $111,000 As Experts Hail 'Regime Shift'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Even as Bitcoin (CRYPTO: BTC) has hit a new all-time high above $111,000, driven by surging institutional demand, tightening supply, and macroeconomic tailwinds, experts caution the rally isn't without structural risks, including the looming threat of quantum computing. What Happened: Bitcoin surged to a new record of $111,544 on Wednesday, extending its post-halving uptrend and highlighting its growing appeal to institutions amid dovish macro signals. The cryptocurrency was last trading at $111,000, up roughly 1% for the day. The broader market also gained, with Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), XRP (CRYPTO: XRP), and BNB (CRYPTO: BNB) up 5%, 6%, 3.4%, and 4.6%, respectively. Trending: — no wallets, just price speculation and free paper trading to practice different strategies. However, market sentiment at 72 nears extreme greed, making growth susceptible to pullbacks, especially amid a U.S. government bond sell-off. What Experts Are Saying: Analysts say the rally is being powered by real spot demand and record ETF inflows, not leverage or hype. Bitget Research's Chief Analyst Ryan Lee said the rally "reflects a regime shift," citing ETF-driven accumulation and a post-halving supply crunch. "Institutional adoption is accelerating, and regulatory clarity, particularly progress on the GENIUS Act is reinforcing market confidence," Lee noted, although he warned that "a stronger U.S. dollar or fresh geopolitical tensions could easily knock momentum off course." The rally has pushed the total crypto market capitalization briefly past $3.5 trillion. Still, FxPro's Alex Kuptsikevich cautioned that the absence of FOMO means growth may remain fragile. "Sentiment at 72 is near the extreme greed zone. That often precedes corrective pullbacks," he said. Bitfinex analysts noted the breakout above $109,500 was driven by "clean spot demand, ETF inflows, and a macro backdrop that favors risk-on assets." They added that funding rates remain stable and open interest is rising in line with price—hallmarks of a structurally sound Next: Yet, not all analysts are focused on short-term price moves. David Carvalho, CEO of Naoris Protocol, warned that quantum computing is a "credible existential threat" to Bitcoin's long-term integrity. "There are over 100 quantum machines operational globally. With Shor's algorithm, they could break Bitcoin's cryptography," he said, referencing the Elliptic Curve Digital Signature Algorithm that secures the majority of BTC. "Roughly 30% of Bitcoin sits in wallets vulnerable to quantum attacks." Carvalho noted that while major institutions like BlackRock (NYSE:BLK) and agencies such as the NSA are preparing for a quantum-secure future, "investors remain overconfident in the current cryptographic defenses." He added, "If even one high-profile wallet is compromised, trust in the system could collapse overnight." Roshan Robert, U.S. CEO of OKX, emphasized the broader context: "Bitcoin's rise isn't just speculative. It reflects how capital preservation is being redefined across institutions and sovereigns." With price targets between $114,000 and $125,000 being flagged by several analysts as the next resistance zones, the immediate focus remains on ETF flows and macro data, including U.S. labor figures and central bank remarks later this week. Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image: Shutterstock Send To MSN: Send to MSN This article Bitcoin Breaks $111,000 As Experts Hail 'Regime Shift' originally appeared on 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
Yahoo
23-05-2025
- Automotive
- Yahoo
Refinancing an auto loan to pay off other debt: Helpful trick or a harmful risk?
Cash-out auto loan refinancing — ideally with a lower rate and without prolonging your repayment — could help you consolidate and pay off other debt or bills. This strategy could be useful if you've improved your credit since you last borrowed and have sufficient equity in your vehicle. However, refinancing a loan for a depreciating asset means you could increase the cost of your repayment and risk owing more than your vehicle is worth. Run the numbers before proceeding to see if refinancing helps you accomplish debt repayment goals without taking on too much risk. If you're an auto loan-holder, you might be accustomed to pre-approved refinancing offers landing in your email inbox, or even your actual mailbox. They're often from a bank or credit union that houses your checking or savings accounts and tracks your credit score. They know you well, and they promise to refinance your auto loan to a lower rate. Given today's macroeconomics — rising levels of consumer debt, the potential reversal of inflation and, thanks to tariffs, whispers of a recession — you listen to their pitch. Perhaps you even wonder whether you could refinance your auto loan to pay off other debt at a decreased cost. After all, auto loan rates generally trend far lower than other consumer loan APRs. Product Term (years) Average interest rate* Auto loan (new car) 5 8.04% Personal loan 2 11.66% Credit card n/a 21.37% *From commercial banks in February 2025, according to the Federal Reserve Like with cash-out mortgage refinancing, cash-back auto loan refinancing means borrowing from the equity you've established in your vehicle to pay off your original auto loan plus other obligations. 'In the data that we're seeing, an average refinance is saving a consumer about $60 a month in their monthly payment — and that can certainly help cover other bills,' says Experian head of automotive insights Melinda Zabritski. 'But I think it's also important… to take more than just the monthly payment savings into consideration.' Let's say you originally borrowed the average auto loan in January 2023, according to Experian figures: $40,484 to be repaid over six years with a 7.16 percent interest rate. Let's also assume you've been plodding along in repayment for 28 months (through April 2025) and have built up about $13,000 in equity. Original loan Current loan Loan amount $40,484 $27,291 Repayment term 72 months 44 months Now, you're considering some refinance offers that would help you consolidate and clear $10,000 in credit card debt (with an average interest rate north of 21 percent). Current auto loan Credit card debt Refinancing Offer 1 Refinancing Offer 2 Amount $27,291 $10,000 $37,291 $37,291 Repayment term 44 months Revolving 48 months 72 months Interest rate 7.16% 21% 5% 7% Monthly payment $693 As much as you can $859 $636 Total interest cost $3,909 Eek $3,931 $8,485 Total repayment cost $31,200 Who knows? $41,222 $45,776 Calculations via our free-to-use loan payment calculator If you're truly struggling to catch up on credit card debt, it might seem like a no-brainer to grab Offer 1 (for the shorter term) or Offer 2 (for the lower monthly payment). After all, you'd probably rather pay off that debt at 5 percent or 7 percent interest as opposed to 21 percent-plus. But keep in mind that it's not so straightforward to determine whether cash-back auto refinancing is the right strategy. You must also account for the interest costs associated with lengthening your loan term. Consider that… Offer 1 would lengthen your loan term by four months. But thanks to the lower interest rate and higher monthly payment ($166 higher, in fact), it would only increase your overall interest costs by $22 (as compared to your current auto loan). Offer 2 would add 28 months to your existing auto loan term. And the lengthier repayment would up your overall interest expense by $4,554. Still, it might be a fit if you prefer the lower monthly payment ($57 lower, in fact, than your current auto loan). If these hypothetical offers still sound appealing, be aware — there are additional layers to unfurl. Cash-out (or cash-back) auto loan refinancing is only really helpful if you own enough of your vehicle. That's because it's your equity that allows you to borrow more and redirect the funds to your other debt. In the example above, we assumed our hypothetical borrower had paid off about 33 percent. The more equity you have, the better off you'll be (in every respect). For the sake of argument, let's say you're intrigued by offer 2 (above). If you went this route, though, you may very likely owe more than your wheels are worth. Progress made on your original auto loan Refinancing Offer 2 Total repayment Amount $13,193 $37,291 $50,484 Repayment term 28 months 72 months 90 months Total interest cost $3,909 $8,485 $12,394 Total repayment cost $17,102 $45,776 $62,878 That might not be a problem if you plan to keep your vehicle and are confident — at least as confident as you can be — that it's in good working condition and won't fall apart tomorrow. But if you're considering selling or trading in your vehicle in the foreseeable future, refinancing to a larger loan amount would make it difficult. Just because you're comfortable with the prospect of being underwater on a refinanced auto loan doesn't mean your lender will be. In fact, they'll typically limit how much you can borrow to the vehicle's market value. For our example, refinancing offer 2 might only be feasible if your vehicle is worth at least (or ideally more than) your desired loan amount. Estimate your vehicle's worth using resources like Edmunds and Kelley Blue Book. If your credit has improved since you last borrowed, you could be in a position to nab a lower auto loan refinance rate than your current APR. Otherwise, a higher rate would eat into your potential savings from consolidating other debt. Related: Three automotive financing experts discuss tariffs, rates, and other trends 'We would anticipate that when and if rates come down, I would certainly expect to see more [refinancing] occur,' says Experian's Zabritski, 'because obviously, going from a 12 percent rate to a 10 percent rate is going to make a difference.' Let's continue to assume you're intrigued by refinancing offer 2. You'd have to ask yourself whether you'd pay less interest by consolidating your credit card debt or keeping it separate. You can consult your budget and a credit card payoff calculator to find out. If you consolidate debt with refinance Offer 2… If you stick with your original auto loan… If you stick with your credit card debt… Total interest cost $12,394 $9,436 More or less than $2,958? Sometimes you have to choose which debt to pay off first. That's because paying off multiple debt accounts simultaneously is easier said than done. Cash-back auto loan refinancing is one way to do it, but it's far from the perfect solution for everyone. Consider other debt repayment strategies to help zero in on the best plan for your situation. Sign in to access your portfolio
