Latest news with #Discover
CNBC
9 hours ago
- Business
- CNBC
We're raising our price targets on 5 stocks — and cutting our outlook on another
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 is rallying to a new record high on Friday, though the index came off its best levels of the day after President Donald Trump said on Truth Social that he has ended trade talks with Canada due to concerns about digital services taxes on U.S. tech companies. Still, it has been an exceptional week for the broader market. As tensions in the Middle East eased, oil prices plunged, interest rates declined, and stocks surged. Some of the biggest winners this week were in tech and AI -infrastructure related stocks. But the financials had an impressive week, too. We'll see the results of the Fed's annual stress test later Friday. Some Wall Street analysts expect Club name Wells Fargo to be among the biggest winners . Price target changes: We're making a handful of changes to our price targets on portfolio stocks. Apple : We are lowering our price target to $240 a share from $280 to reflect some of our recent concerns that a demand pull-forward from people buying iPhones ahead of tariffs could moderate sales in the quarters ahead. We've also expressed frustration about how Apple is allocating too much capital to stock buybacks, when those funds could be more effectively used to accelerate its lagging AI initiatives. Capital One Financial : We are increasing our price target to $250 from $210. As we talked about on Friday's Morning Meeting, the stock still trades at a huge discount to peer American Express , and maybe it shouldn't since Capital One now also operates a closed-loop network – meaning it issues its own cards and runs its own payment network, just like American Express. Based on 2026 earnings per share estimates, Capital One is trading at an 11 multiple while AXP trades at 18. We're not arguing for parity, necessarily. But if Capital One re-rates to 13 times earnings, still a five-turn discount to American Express, as it proves the benefits of the Discover deal, then we're talking about stock trading at about $250 based on the consensus earnings per share estimate of $19.32. CrowdStrike : We are nudging up our price target to $520 from $500. This higher price target reflects the higher price-to-earning multiple the best of breed cybersecurity companies continue to deserve in the market. Although we are raising our price target, we remain mindful of the run the stock has had this year. This was the main reason why we trimmed this position earlier in the week. GE Vernova : We are increasing our price target to $550 from $500. GE Vernova's valuation may look stretched, but the stock keeps powering higher due to the heavy investment needed to power AI data centers around the world. The robust demand for the company's gas turbines and electric grid solutions should translate to strong pricing power for many years. The company remains a potential winner from future trade deals and should benefit from the Trump administration's push to boost energy supply to power AI. Goldman Sachs : We are increasing our price to $725 from $615. We continue to see Goldman Sachs as one of the biggest beneficiaries of an improving initial public offering market, as well as an increase in mergers-and-acquisitions activity. The big banks could also get a boost from looser regulations , as we wrote Thursday. Meta Platforms : We are raising our price target to $800 from $700. A pair of separate bullish analysts raised their Meta price target above $800 this week, and we want to be right there with them because the social media giant has been one of the best at using AI to generate more revenue. Next week: There are no companies in the portfolio scheduled to report earnings next week. On the data side, it will be a jobs-week, which means we'll see the ADP employment report Wednesday morning, as well as the all-important nonfarm payroll report. The jobs report will be on Thursday, not the usual Friday, because the market is closed on July 4 in observation of Independence Day. A few other key data reports are the Institute for Supply Management's manufacturing and services activity indexes for the month of June. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Business Standard
16 hours ago
- Business Standard
Now, Google lets users customise Top Stories with their preferred websites
Google is testing a Labs feature that lets users customise their Top Stories feed by selecting favourite websites, starting in the US and India New Delhi Google has announced that it is rolling out a new experiment in Search Labs called Preferred Sources, allowing users to prioritise specific websites in the Top Stories section of Search results. Available in English for users in India and the US, this feature gives individuals more control over the news sources they frequently see, provided those sites are actively publishing new content. Once opted in, users can tap a star icon next to the 'Top Stories' header to pick their preferred websites. When relevant, updates from those sites will start appearing more often in your Top Stories section, alongside regular algorithm-selected content. These chosen sources will also be clearly labelled, and in some cases, users may see a separate 'From your sources' carousel below the main Top Stories section. What else is new in Google Search In addition to Preferred Sources, Google also outlined a handful of other features that aim to make Search more relevant and tailored to your needs, all of which can be managed through personalisation settings. Automatic content refresh: If you have searched a topic before, Google will now automatically show you new content since your last visit in sections like Top Stories or What People Are Saying. Your recent searches may also be flagged with a 'New update' tag to indicate fresh results. Quicker access to frequent sites: When personalisation is turned on, Search will promote websites you visit often higher in your results, if relevant to your query. Smarter sports tracking in Discover: Sports fans can choose their favourite teams, and Discover will show live scores, game highlights, and more. Personalised shopping: Search will let you save your favourite fashion styles during apparel or accessory searches, and Google Shopping will deliver a customised feed of products and deals based on your selected interests. Users can manage or disable all personalisation features at any time through their Google account settings.
Yahoo
2 days ago
- Business
- Yahoo
Capital One Financial Corporation (COF): A Bull Case Theory
We came across a bullish thesis on Capital One Financial Corporation on Pacific Northwest Edge's Substack by David. In this article, we will summarize the bull's thesis on COF. Capital One Financial Corporation's share was trading at $206.36 as of June 24th. COF's trailing and forward P/E ratios were 17.34 and 13.48, respectively, according to Yahoo Finance. A technician inserting a credit card into a point-of-sale machine for identity authentication. Capital One's acquisition of Discover Financial Services marks a transformative moment in the credit card and payments landscape, positioning the company as a direct rival to American Express in a way never seen before. While Capital One was already a dominant issuer in the credit card space—earning 86% of its Q1 2025 profits from credit cards—the acquisition grants it ownership of a full payment network for the first time. This vertically integrated model mirrors that of American Express, which has long benefited from higher interchange fees due to its dual role as both network and issuer. Discover, although more broadly accepted than AmEx, lacked premium appeal. Capital One now controls both models and is positioned to scale aggressively. This move gives Capital One an economic moat that's nearly impossible to replicate due to the complexity of establishing a reliable and widely accepted payments network. CEO Richard Fairbanks emphasized their strategy to grow the Discover network globally, slowly increasing international acceptance before ramping up brand investment. With the infrastructure in place, Capital One can now issue co-branded rewards cards, shift more volume onto its own network, and potentially serve as a network provider for other institutions. Despite issuing new stock to fund the acquisition, Capital One's strong history of buybacks and high free cash flow remains intact. The moat created by owning a network, combined with network effects and switching costs, significantly enhances Capital One's competitive position. In short, this acquisition elevates Capital One from a narrow-moat issuer to a formidable, wide-moat competitor with room to take share and grow earnings. Previously, we covered a on Capital One Financial Corporation by Stock Analysis Compilation in December 2024, which highlighted the long-term earnings upside from cost synergies via Discover's network. The company's stock price has appreciated by approximately 17% since our coverage. This is because the thesis began to play out. The thesis still stands as integration remains underway. David shares a similar view but emphasizes Capital One's emerging network moat and global ambitions. Capital One Financial Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held COF at the end of the first quarter, which was 89 in the previous quarter. While we acknowledge the risk and potential of COF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
HPE CEO talks Nvidia AI partnership, IT spend, Juniper trial
Hewlett Packard Enterprise (HPE) is in the middle of its annual Discover event in Las Vegas to showcase its latest technological innovations. HPE CEO Antonio Neri sits down with Opening Bid host Brian Sozzi to explain how demand for networking and hybrid cloud remains solid, what IT spend looks like right now, and how the company is preparing for its upcoming Juniper acquisition trial with the US Department of Justice (DOJ). To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. All right. For this, today's power player, I am locked in on Hewlett Packard Enterprises. Company is holding its annual Discover event in Vegas to show off its latest technologies to customers, especially on the AI front. HPE CEO Antonio Neri is here with me now from the event. Antonio, always great to see with see you. Don't know how you made time for me, but I appreciate it nonetheless. Out of all the announcements that you have come out with here, uh, from Discover, the announcement with Nvidia and AI factories really caught my attention. Why is that such a big thing for HPE's bottom line? Well, good morning, Brian, and thanks again for having me. What a great week for us here at HP Discover Vegas. I'm standing here on the show floor. It's a seven acres of technology on display. And after a great day yesterday at the sphere, where I gave my keynote. But to your point, yesterday we made a number of very strategic announcements. One of them, obviously, was the expansion of our AI factories with Nvidia. We continue to have a terrific partnership with Nvidia, expanding our solutions for sovereigns, which is an area where we see tremendous interest and growth. Obviously, the continued capex investment in service providers, as well as the continuation of the model builders. And then enterprise. And enterprise here, we have more than 12,000 customers visiting us this week. And they're all interesting to accelerate their journey to AI. And that tells you the interest is super, super high. And that's with Nvidia, we have co-architect, the co-engineered a solution that's easy to deploy it for time to value. Antonio, um, Keybank out with a good report here today. They surveyed a lot of CIOs who are out there buying tech. Um, they are noting the slowest IT spending growth outlook since 2020. How is that starting to take shape in your business? Well, look, we don't see a slowdown in IT spend. Uh, in fact, if you really follow the last few quarters of continuous revenue growth, you see that the momentum is across all line of businesses. Look, to deploy AI, continue your journey to a hybrid cloud experience across your enterprise, you need more networking. And so, networking has clearly recovered in the market. And we see that in our growth in our orders, and now in our revenue. Uh, GreenLake has been positioned extremely successful to be that bridge to provide a hybrid experience. And we continue to grow on an average of 35 to 45%. And this week, we announced the agentive approach to our GreenLake cloud. And what they're very interested is using GreenLake as an intelligence, meaning we can bring to them an army of AI agentive kind of capabilities, so they can remove people that are in the loop and put them on the loop. And so those actions can be taken by AI. So, I haven't seen that, honestly, Brian, but obviously there is a lot of uncertainty in the market. There's always geopolitical tension, but I think we'll continue to be a top of mind for enterprises. And Tony, before we let you go, and I know you're busy guy at this conference, um, July 9th is the Juniper trial. Would you assign any probability to this, I guess this trial not actually happening, that the government drops its case and lets you take battle versus Cisco in this market? Well, look, everything is possible. We continue to work to try to work a remediation sort of settlement, but fact of the matter is that we are so close to the trial. Our view is that we believe this is pro competitive, we believe this is good for enterprises. Remember, we don't support consumers. And ultimately, we believe we will prevail in court if we have to go all the way there. All right, we'll leave it there, Antonio Neri. Good to see you, as always. Good to see that HP stock symbol behind you at the conference. I'm digging it. Put something on black for me in Vegas. We'll talk to you soon. We'll do. Thank you.
Yahoo
3 days ago
- Business
- Yahoo
HPE CEO talks Nvidia AI partnership, IT spend, Juniper trial
Hewlett Packard Enterprise (HPE) is in the middle of its annual Discover event in Las Vegas to showcase its latest technological innovations. HPE CEO Antonio Neri sits down with Opening Bid host Brian Sozzi to explain how demand for networking and hybrid cloud remains solid, what IT spend looks like right now, and how the company is preparing for its upcoming Juniper acquisition trial with the US Department of Justice (DOJ). To watch more expert insights and analysis on the latest market action, check out more Opening Bid here.
