Canada Economy Set for Contraction in Second Quarter
The Canadian economy is on track for a modest decline this quarter, yet isn't deteriorating as fast as some economists feared.
Advance data showed industry-based gross domestic product shrank 0.1% in May, matching April's 0.1% decline, Statistics Canada said Friday.
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26 minutes ago
- Yahoo
Can PayPal Stock Hit $125 in 2025?
Digital payment giant PayPal's (PYPL) story has been anything but smooth. After soaring in 2020 and carrying the momentum into early 2021, PYPL stock stumbled, ending three consecutive years in the red. While 2024 brought a much-needed rebound, 2025 has seen shares slip once again. Much of PayPal's decline can be traced to rising competition. Newer, faster fintech rivals have outpaced the company with sleeker, more intuitive payment solutions. Still, PayPal isn't going down without a fight. In response, PayPal brought in CEO Alex Chriss in 2023 to reset its strategy. Under his leadership, the company has launched features like one-click and express checkout while sharpening its focus on profitable growth and operational efficiency. Dear Nvidia Stock Fans, Watch This Event Today Closely A $2 Billion Reason to Sell Super Micro Computer Stock Now 3 ETFs Offering Juicy Dividend Yields of 15% or Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! PayPal's ever-expanding partner network — featuring giants such as Amazon (AMZN), Shopify (SHOP), Apple (AAPL), Alphabet (GOOGL), and Meta Platforms (META) — also remains a powerful asset. With Wall Street's highest target pegged at $125 for the stock, can PayPal rally hard enough to hit that mark before the year wraps? PayPal runs a global technology platform that connects merchants and consumers through a dynamic two-sided network. Whether shopping online or in-person, users can pay, get paid, transfer, or withdraw funds using a wide range of options, including bank accounts and cards, PayPal and Venmo balances, cryptocurrency, and more — making digital payments seamless and accessible worldwide. With its market capitalization currently hovering around $71 billion, PayPal remains a major player in the fintech space. However, its stock performance tells a different story. Delivering a 25% return over the past one year, the stock has taken a 14% hit so far in 2025, underperforming the broader S&P 500 Index ($SPX) by a wide margin, with the benchmark up 4.4% year-to-date (YTD). PYPL stock touched a YTD high of $93.25 in January but has since fallen more than 21% from that peak. Considering its sluggish price action, PayPal now appears to be a potential value play. The stock is trading at just 14 times forward earnings and 2.25 times sales, which is significantly below its five-year averages. For investors hunting for discounted fintech names, PayPal's current valuation could offer an attractive entry point. PayPal delivered its fiscal 2025 first-quarter earnings on April 29. The results were a mixed bag, showing a slight revenue miss but a strong profit beat. Sales rose just 1% year-over-year (YOY) to $7.8 billion, falling short of expectations. However, the company made it clear this was by design. PayPal emphasized its strategic pivot toward profitability, deliberately phasing out lower-margin revenue streams. That shift paid off on the bottom line. Adjusted EPS came in at $1.33, up 23% from a year ago and beating Wall Street estimates by an impressive 15.7% margin. PayPal continued to strengthen its financial footing in Q1, with transaction margin dollars — the company's core profitability metric — rising 7% to $3.7 billion. Active accounts grew 2% YOY to reach 436 million, reflecting steady user engagement. Backed by a strong balance sheet with $15.8 billion in cash, cash equivalents, and investments, PayPal also returned $1.5 billion to shareholders through share repurchases, underscoring its commitment to capital returns. Reflecting on the Q1 performance, Chriss noted, 'PayPal had a great start to the year and our strategy is working. This is our fifth consecutive quarter of profitable growth with progress across branded checkout, PSP, omnichannel, and Venmo.' Looking ahead, PayPal offered a dose of optimism with strong Q2 guidance, projecting adjusted EPS between $1.29 and $1.31, signaling continued momentum on the profitability front. For the full year, the company took a more cautious stance. Citing ongoing global macroeconomic uncertainty, PayPal reaffirmed its earlier guidance, expecting full-year EPS to land between $4.95 and $5.10. By comparison, analysts tracking PayPal project the company's profit to grow 9.3% annually to $5.08 per share in fiscal 2025, followed by an even stronger 11% rise to $5.64 in fiscal 2026. Overall, Wall Street sentiment toward PYPL stock remains cautiously upbeat, with analysts giving it a consensus 'Moderate Buy' rating. Of the 44 analysts offering recommendations, 16 give it a solid 'Strong Buy" rating, two suggest a 'Moderate Buy,' 22 give a 'Hold,' and the remaining four advocate for a 'Strong Sell" rating. PYPL stock's average analyst price target of $79.81 indicates 9% potential upside. But the Street-high target of $125 tells a more bullish story, implying a potential rally of 70% if the company's turnaround strategy hits its stride. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
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26 minutes ago
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Can Nvidia Stock Hit $250 in 2025?
Artificial intelligence (AI) darling Nvidia (NVDA) is once again making waves, this time by reclaiming its title as the world's most valuable company. The chipmaker, which has been at the heart of the AI boom and a go-to name for Big Tech's most advanced computing needs, saw NVDA stock hit a fresh record high on June 25. The surge came after Loop Capital analyst Ananda Baruah described Nvidia as poised to ride a 'Golden Wave' of AI. NVDA stock closed up by more than 4% in a single day, pushing its market capitalization just ahead of Microsoft (MSFT). Apart from bullish analyst commentary, what really caught investors' attention was Loop's aggressive price target hike from $175 to $250. With enthusiasm running high, can Nvidia continue to soar and actually hit that lofty target in 2025? Dear Nvidia Stock Fans, Watch This Event Today Closely A $2 Billion Reason to Sell Super Micro Computer Stock Now 3 ETFs Offering Juicy Dividend Yields of 15% or Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Nvidia needs no introduction. It's the name behind the AI boom and the muscle behind everything from gaming and data centers to self-driving cars. With its cutting-edge chips powering the next wave of tech innovation, the company has firmly cemented its place at the center of the digital revolution. While it has faced some turbulence in 2025 — ranging from U.S.-China trade tensions to concerns over slowing AI spend and rising competition — Nvidia still remains a key player in the AI race. Although Loop Capital's Street-high price target has certainly fueled excitement, there's a broader wave of optimism driving the rally. Investors appear increasingly confident that China's export restrictions won't derail Nvidia's leadership in the AI space, especially as global demand for advanced computing continues to soar. Adding to the bullish tone, CEO Jensen Huang struck an ambitious note at Nvidia's annual shareholder meeting on Wednesday, describing AI and robotics as a 'multitrillion-dollar growth opportunity.' The comments come at a time when governments around the world are ramping up investments in sovereign AI capabilities to tackle critical national priorities. With momentum building across both private and public sectors, Nvidia's long-term growth story remains as compelling as ever. Now commanding a staggering $3.76 trillion market cap, Nvidia has stormed back into the spotlight, fueled by bullish analyst calls, a bold growth outlook from leadership, and global demand for AI solutions. Nvidia surged to a new 52-week high of $156.72 on June 26. With a 15% gain in 2025 so far, the stock is easily outpacing the broader S&P 500 Index's ($SPX) 4.4% return year-to-date (YTD). The chipmaker's fiscal 2026 first-quarter earnings, posted on May 28, didn't disappoint, crushing expectations on both revenue and profit. Nvidia reported a massive 69% year-over-year (YOY) increase in revenue, reaching $44.1 billion and surpassing the $43.3 billion estimate. As usual, it was the data center segment that stole the show, continuing to drive Nvidia's role at the heart of the AI revolution. Nvidia's data center business demonstrated a stunning 73% YOY jump to $39.1 billion, making up a commanding 88% of total revenue. The gaming segment also impressed, climbing 42% to $3.8 billion on strong demand for high-performance chips. Even the automotive and robotics unit got in on the action, racing ahead by 72% YOY to $567 million. Nvidia ran into a regulatory hurdle in the quarter when the U.S. slapped fresh restrictions on its previously approved H20 chip for China. The fallout wasn't small. The company took a $4.5 billion hit for excess inventory and missed out on an estimated $2.5 billion in sales. That dragged its adjusted gross margin down to 61%, although without the impact that would have come in at a much stronger 71.3%. On the bottom line, Nvidia delivered adjusted earnings of $0.81 per share, up 33% from last year and beating expectations by 8%. Without the H20 chip charge, earnings would have jumped to $0.96 per share. Still, investors seemed pleased, sending NVDA stock up 3.3% on May 29. Looking ahead, Nvidia is guiding for $45 billion in revenue for Q2 of fiscal 2026, give or take 2%. That figure already bakes in an estimated $8 billion hit from the latest export restrictions on its H20 chips. On the profitability side, Nvidia expects GAAP and non-GAAP gross margins to be 71.8% and 72%, with a 50-basis-point cushion in either direction. Despite recent headwinds, the company isn't backing down. It's still setting its sights on gross margins climbing into the mid-70% range by year-end. Fueling Nvidia's latest surge, Loop Capital cranked up its price target from $175 to a Street-high $250, reaffirming its 'Buy' rating. Analyst Ananda Baruah didn't hold back in his bullish outlook, remarking that we're entering the next 'Golden Wave' of generative AI adoption, with Nvidia positioned right at the forefront. According to Baruah, demand for Nvidia's high-end AI chips is ramping up even faster than expected, setting the stage for another powerful leg of growth. Overall, Nvidia continues to enjoy unwavering support on Wall Street, where the consensus remains a resounding 'Strong Buy.' Of the 44 analysts offering recommendations, 37 give NVDA stock a 'Strong Buy" rating, three suggest a 'Moderate Buy,' three offer a 'Hold,' and one analyst advocates for a 'Strong Sell" rating. The average analyst price target of $174.84 indicates 13% potential upside from current price levels. However, Loop Capital's street-high price target of $250 suggests the stock can rally as much as 61%. With solid fundamentals, soaring AI demand, and strong backing from Wall Street, Nvidia's climb to $250 in 2025 may be bold, but it is looking increasingly achievable. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published 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
28 minutes ago
- Yahoo
Cloud Slowdown and Regulatory Challenges Impacted Alphabet's (GOOG) Performance in Q1
Fidelity Investments, an investment management company, recently released its 'Fidelity Dividend Growth Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Fidelity Dividend Growth Fund is a diversified domestic equity strategy with a focus on large-cap core. The portfolio invests in large and mid-cap firms with potential for sustainable dividend growth. The fund's Retail Class shares returned -5.29% in the first quarter, underperforming the -4.27% return of the benchmark S&P 500 index. In the first quarter, the post-election anticipation was replaced by investor concerns regarding the impacts of several actions from the new administration, disruptions to government programs, and rising uncertainty caused by changing policy priorities, particularly in trade tariffs. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Fidelity Dividend Growth Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 0.91%, and its shares lost 4.90% of their value over the last 52 weeks. On June 26, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $174.43 per share, with a market capitalization of $2.111 trillion. Fidelity Dividend Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter: "An outsized stake in Alphabet Inc. (NASDAQ:GOOG) detracted as well. The shares returned-18% for the quarter, falling beginning in early February, as the advertising giant and parent of the Google search engine announced quarterly revenue that reflected a slowdown in sales at its cloud-computing and device businesses. Investors were hoping strength in cloud computing would ease the impact of recent weakness in the company's core advertising business. Meanwhile, management said it is meaningfully accelerating investments in data centers that power artificial intelligence. Alphabet also faces regulatory pressure, including a recently opened antitrust probe from the Chinese government." A laptop and phone open to Google's services in an everyday setting. Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 164 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 174 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $90.2 billion, representing an increase of 12% from Q1 2024. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of best long term growth stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
