Anthony Pompliano on taking his SPAC public: Focused on buying a cash-flow positive business
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Yahoo
29 minutes ago
- Yahoo
Why AeroVironment Stock Plunged This Week
Dilution fears were raised on news of twin capital-raising moves. The company is floating both fresh stock and convertible senior notes in a public offering. 10 stocks we like better than AeroVironment › Military drone specialist AeroVironment (NASDAQ: AVAV) has generally done well as a stock lately. But that didn't happen this week, as news of a round of capital-raising dampened investor sentiment on the company. According to data compiled by S&P Global Market Intelligence, AeroVironment stock lost more than 11% of its value over the period. On Monday, AeroVironment announced it would float both a secondary share offering and an issue of convertible senior notes. The following day it set the parameters for the pair. With the former, it's selling just over 3.5 million shares of its common stock in an underwritten public offering at $248 per share. The underwriters of the flotation have been granted a 30-day option to collectively purchase an additional 29,234 shares. As for the convertible senior notes, AeroVironment is issuing $650 million aggregate principal amount at an interest rate of 0%. They are to be convertible at the investor's option under certain conditions and at certain periods. The initial conversion rate is slightly over 3.1 shares per $1,000 principal amount of the notes; the company said this equates to $322.40 per share. AeroVironment said it expected both issues to close on Thursday, July 3, and to net proceeds of around $1.47 billion. The company aims to use a bit more than $965 million to retire debt, with the remainder being directed to "general corporate purposes." These include an increase in manufacturing capacity. Currently, AeroVironment has just under 45.6 million shares outstanding, so if conversion rates are high with the notes, the twin issues could be dilutive. Shareholder dilution is the bane of many of an investor, so it's likely this was the root of their discontent during the week. On a fundamental basis, though, AeroVironment still looks like a good stock to own. The company seems to be doing well satisfying the growing demand for combat drones, as witnessed by its impressive fourth-quarter performance and its growing backlog. I wouldn't be down on the stock only because of its latest capital-raising moves. Before you buy stock in AeroVironment, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AeroVironment wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy. Why AeroVironment Stock Plunged This Week was originally published by The Motley Fool
Miami Herald
2 hours ago
- Miami Herald
Analyst resets Datadog stock price target after surprise addition to S&P 500
Shares of Datadog (DDOG) surged nearly 15% to $155.15 on July 3 after S&P Global said the monitoring software provider will be included in the S&P 500 U.S. stock index, effective before the market opens on July 9. The move surprised some investors, who had expected names like Robinhood (HOOD) or AppLovin (APP) to be next in line. Datadog will replace Juniper Networks (JNPR) , which was just acquired by Hewlett-Packard Enterprise Co. (HPE) . The S&P 500 is a stock index that tracks the performance of 500 of the leading publicly traded companies in the U.S., serving as a key benchmark for the overall health of the U.S. economy. Tech firms now make up a major share of the index and have an important impact on its movements. Stocks could likely rally after being added to a major index like the S&P 500 because of increased demand from institutional investors, especially passive index funds. DoorDash (DASH) joined the index in March and has risen 20% since. Palantir (PLTR) , which was added last September, has jumped more than 250% since joining. Datadog has lagged behind the broader tech sector this year, falling 5.5% through July 2, while the Nasdaq has gained 5.6%. The stock also underperformed the Nasdaq Composite Index in 2024. Image source: NurPhoto/Getty Images New York-based Datadog, founded in 2010, went public in 2019. It produces software that monitors and secures an enterprise's entire technology infrastructure - including servers, applications, databases, and security systems. The company has benefited from expanding into AI. It offers tools such as LLM Observability to help businesses monitor machine learning models and AI-driven applications in production. Related: Analyst sends bold message on quantum computing stocks after Nvidia CEO's pivot In Q1 2025, Datadog generated $761.6 million in revenue, a 25% increase from a year earlier and ahead of the $741.5 million analysts were expecting. Adjusted earnings came in at 46 cents per share, beating estimates closer to 43 cents. The company raised its full-year revenue forecast to between $3.22 billion and $3.24 billion, up from its previous range of $3.18 billion to $3.20 billion. Wall Street had been looking for around $3.20 billion, according to LSEG data pulled by Reuters. Datadog also gave a second-quarter revenue outlook that topped expectations. Its next earnings report is expected in early August. Wedbush analyst Daniel Ives raised the firm's price target on Datadog to $170 from $140 and reiterated an outperform rating following the news, citing "incremental confidence in the company to capitalize on its observability initiatives over the coming years." Ives said Datadog's platform "continues to gain momentum within the observability space, especially with AI front and center." He expects the company to gain more market share with elevated usage for its AI cohort across its enterprise customers. Related: Veteran fund manager sets bold new targets on Palantir, Nvidia stocks "Datadog's new products and features look to complement agentic AI trends following the company's recent partnership with OpenAI," he wrote. "On the software front, Datadog remains one of our favorite names to own, and our recent checks have been very strong as the AI Revolution takes hold." More Wall Street Analysts: Analysts reboot Olive Garden parent's stock price targets as earnings loomAnalysts revamp forecast for Nvidia-backed AI stockIntuitive Surgical analyst raises eyebrows with new stock price target According to TipRanks, the average 12-month price target for Datadog is $140.46, based on ratings from 37 Wall Street analysts. That implies a downside of about 9.5% from the July 3 closing price of $155.15. Related: Cathie Wood buys $20.7 million of surging tech stock The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 hours ago
- Yahoo
S&P 500, Nasdaq Stretch Record Closing Runs After Jobs Report
The S&P 500 and the Nasdaq Composite reached fresh record highs in a shortened trading session Thurs 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
