Latest news with #Mr.Market
Yahoo
21 hours ago
- Business
- Yahoo
Bank of America makes its boldest AMD call yet
Bank of America makes its boldest AMD call yet originally appeared on TheStreet. Sometimes, Mr. Market whispers, but other times, it straight-up roars. This week, AI stock Advanced Micro Devices () found itself in the middle of the loudest buzz. That's the kind that comes with a billion-dollar tailwind: a major shift in global trade policy. 💵💰💰💵 Its data-center business has already been booming, but now it's onto bigger runways, courtesy of reopened doors in China. Moreover, as the outlook shifts, a major Wall Street voice put its name on a call that's its boldest yet on AMD stock. AMD goes from underdog to AI infrastructure powerhouse AMD kicked things off this year as an underdog in AI chips. However, its latest results show it's far from playing catch-up anymore. In the first quarter, AMD's data-center sales surged 57% from last year, hitting $3.7 billion. That's nearly 50% of the company's total revenues, and a clear sign that its AI chips are getting real traction. AMD's EPYC CPUs and Instinct GPUs, especially the MI300 series, are owning the chips are effectively shaping major data centers and getting strong reviews in the process. Some buyers even say AMD's chips beat Nvidia's when it comes to price and performance. And AMD's next move is arguably even bigger. In June, it showed off the MI350 Series and a new rack system called Helios. It's essentially a comprehensive full AI setup that includes CPUs, GPUs, networking, and cooling, all efficiently designed to work together out of the box. AMD claims the MI350 delivers 40% more AI performance for every dollar spent in comparison to the previous version. Major tech players are lining up. Meta is already making use of MI300 chips for its AI models and plans to test the MI350 next. Meanwhile, startup TensorWave recently built the largest AMD GPU system in North America, 8,192 chips pushing 21 exaFLOPS of power. More AI Stock News: TikTok's next move has Google and Meta sweating bullets Elon Musk moves xAI, Grok onto Palantir turf Rigetti shakes up quantum computing with bold advance What's also helping AMD compared to, say, Nvidia, is that it's betting on an open-source system called ROCm. That's winning over cloud providers and companies looking for greater flexibility. AMD stock gets green light to chase China's AI boom Bank of America analyst Vivek Arya is going big on AMD. In a bold July 16 note, Arya hiked his price target on AMD stock from $130 to $175, a superb 35% jump. Arya's bullishness has everything to do with the massive policy reversal from Washington that's likely to reshape the AI chip race. The U.S. government is now allowing AMD and Nvidia (NVDA) to resume shipments of advanced AI accelerators to Chinese data center customers. For AMD, that's a massive shift in the right effectively reopens enterprise sales channels that were frozen by export controls. Also, this could unlock $500 million to $1 billion in revenues for AMD in just the next two quarters. But it's not just a short-term revenue bump. The MI300 series and AMD's next-gen MI400 chip are now back in business in arguably the most lucrative AI market. China's top cloud providers reportedly spend roughly 20% of global AI training dollars. That's not a pool AMD wants to sit out of. On top of that, the U.S. chipmaker gets to sharpen its competitive edge against both Nvidia and Chinese rivals like Huawei, on the back of favorable policy tailwinds. Still, AMD must navigate supply chain hiccups, geopolitical uncertainty, and a testing competitive landscape. However, if all goes well, the company is set for a multi-quarter AI growth run that could make its current validation a lot cheaper. The $45-per-share hike in his target is easily the loudest Wall Street endorsement of AMD this year, underscoring a robust belief in the chipmaker's long-term growth of America makes its boldest AMD call yet first appeared on TheStreet on Jul 18, 2025 This story was originally reported by TheStreet on Jul 18, 2025, where it first appeared. 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
Miami Herald
4 days ago
- Business
- Miami Herald
UnitedHealth's shocking move to please Wall Street
UnitedHealth (UNH) has stumbled through what has been a testing year. Sliding sales, a gloomy cost forecast, and a surprise profit cut rattled its investors early on. Don't miss the move: Subscribe to TheStreet's free daily newsletter Legal scrutiny added to the fire, along with a CEO scrambling to restore confidence. However, just as we thought we had seen the stock's worst, it has reportedly pulled off a quiet financial move that could prove to be the most shocking of them all. Image source: Alcorn/Bloomberg via Getty Images UnitedHealth kicked off the year with a stark warning. In early January, management told investors to brace for rising medical costs, forecasting a medical care ratio north of 86%, compared to the 85% Wall Street had priced in. Then came the major gut punch in April. UnitedHealth cut its full-year profit forecast from roughly $30 per share to a range of $26 to $26.50. The medical insurance giant blamed unexpected service and care costs, in what was the sharpest guidance cut it had posted since early pandemic turbulence. Related: One Washington move could shake Big Pharma to its core The timing and size of the drop posed serious questions over the sustainability of UnitedHealth's numbers and whether cost pressures were bleeding from the books. Things only got worse. In May, news broke that the Justice Department launched a criminal investigation into Medicare Advantage billing practices. UnitedHealth, which has been no stranger to regulatory scrutiny, was suddenly in the DOJ's crosshairs for potential fraud related to its coding systems. By June, the newly reinstalled CEO, Stephen Hemsley, was doing a lot of the cleanup. He addressed shareholders directly, vowing to "earn back your trust." Consequently, as of mid-July, UnitedHealth stock has tanked over 40% year-to-date. Over the past six months alone, the stock has nosedived 46%. Mr. Market almost missed UnitedHealth's quiet financial moves. According to Bloomberg, in protecting its impressive 60-quarter earnings beat streak, the company resorted to an accounting twist that's now raising eyebrows. UnitedHealth quietly sold stakes in multiple of its business units, generating $3.3 billion in profit, mostly in the back end of last year. These weren't traditional divestitures. The deals, struck with firms like Warburg Pincus and KKR, reportedly included buyback clauses. UnitedHealth therefore has the right (or obligation) to repurchase the same assets at higher prices down the line. Related: JPMorgan reveals 9 stocks with major problems That kind of structure isn't new to private equity circles, but the timing, terms, and secrecy are what's turning heads. People familiar with the transactions say UnitedHealth looked to push those deals to close by December 31, explicitly asking for them not to be publicized. That's prompted speculation over sales engineering, in part, to ensure the businesses didn't break their decades-long earnings streak. In January, UnitedHealth barely beat Q4 expectations. The company topped forecasts by seven cents, even as its medical care ratio rose, signaling higher health care expenses. On its Q4 call and in its annual report, UnitedHealth talked about improving operating costs while noting a $3.3 billion gain. However, it didn't say what was sold or how the profits were booked. More Stock News: Elon Musk's xAI is already shockingly massiveBank of America drops shocking call on Super Micro stockCathie Wood drops bold message on Apple, Tesla stock That detail flew under Wall Street's radar at the time. However, the latest scoop suggests that UnitedHealth may have posted its first earnings miss in more than 15 years, if it wasn't for the last-minute financial engineering. To be fair, UnitedHealth isn't new to profit‑padding allegations. As mentioned earlier, it's already in hot water with the Justice Department's fraud unit for allegedly inflating Medicare Advantage reimbursements through aggressive diagnosis coding, Going further back, it weathered an SEC probe in 2006 over backdated stock options, which eventually led to a massive $350 million settlement and the resignation of then‑CEO William McGuire. Related: Google Brain founder has an unexpected one-word message on AI The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
11-07-2025
- Business
- Yahoo
3 Reasons to Sell SXI and 1 Stock to Buy Instead
Over the past six months, Standex's stock price fell to $166.64. Shareholders have lost 6.9% of their capital, which is disappointing considering the S&P 500 has climbed by 7.6%. This may have investors wondering how to approach the situation. Is now the time to buy Standex, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. Despite the more favorable entry price, we don't have much confidence in Standex. Here are three reasons why SXI doesn't excite us and a stock we'd rather own. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Standex's 3.4% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Standex's EPS grew at an unimpressive 5.9% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its flat revenue and tells us management responded to softer demand by adapting its cost structure. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Standex's margin dropped by 3.2 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Standex's free cash flow margin for the trailing 12 months was 5.1%. Standex isn't a terrible business, but it isn't one of our picks. After the recent drawdown, the stock trades at 18.9× forward P/E (or $166.64 per share). Beauty is in the eye of the beholder, but our analysis shows the upside isn't great compared to the potential downside. We're fairly confident there are better investments elsewhere. We'd recommend looking at one of our all-time favorite software stocks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
11-07-2025
- Business
- Yahoo
3 Reasons to Sell RVTY and 1 Stock to Buy Instead
Over the past six months, Revvity's stock price fell to $102.40. Shareholders have lost 16.5% of their capital, which is disappointing considering the S&P 500 has climbed by 7.6%. This may have investors wondering how to approach the situation. Is now the time to buy Revvity, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team's opinion, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why you should be careful with RVTY and a stock we'd rather own. In addition to reported revenue, constant currency revenue is a useful data point for analyzing Research Tools & Consumables companies. This metric excludes currency movements, which are outside of Revvity's control and are not indicative of underlying demand. Over the last two years, Revvity's constant currency revenue averaged 2% year-on-year growth. This performance slightly lagged the sector and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals. Looking at the trend in its profitability, Revvity's adjusted operating margin decreased by 8.8 percentage points over the last five years. Even though its historical margin was healthy, shareholders will want to see Revvity become more profitable in the future. Its adjusted operating margin for the trailing 12 months was 28.3%. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, Revvity's ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. We see the value of companies making people healthier, but in the case of Revvity, we're out. After the recent drawdown, the stock trades at 19.8× forward P/E (or $102.40 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. Let us point you toward one of our top software and edge computing picks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Miami Herald
26-06-2025
- Business
- Miami Herald
Job market could get rocked by surprising unemployment report
It's been one "strong job market report" after another. Investors continue dancing to that beat, as we stare down a record high for the S&P 500. Don't miss the move: Subscribe to TheStreet's free daily newsletter Mr. Market is brushing off any wobble in weekly unemployment claims as mostly seasonal noise. Peel back the curtain, however, and the continuing claims paint a more mixed story about a fragile economic state. The latest jobless claims update drives that point home and could shake the economy. Over the past few months, weekly jobless claims in the U.S. have fallen in a pattern that gives off mixed signals. In early April, initial claims nudged up to 223,000 in the week ending April 5. This represents a modest rise of 4,000, but economists expected the number to remain flat. Businesses were already feeling the heat due to the threat of new tariffs, and March hiring numbers were underwhelming. Just 228,000 jobs were added, with unemployment ticking up to 4.2%. Related: Legendary fund manager issues stock market prediction as S&P 500 tests all-time highs A few weeks later, in late April, things got shakier. Claims rose by 18,000 to 241,000, the highest they'd been in a couple of months. Sure, spring breaks played a part, but beneath the surface, you had corporate America feeling the squeeze from tariffs. May brought its mix of highs and lows as well. Things picked up strongly, with claims dropping by 13,000 to 228,000. By mid-month, filings hovered around 229,000, but by May 24, claims shot up to 240,000, the biggest weekly spike in over a year. It wasn't just about the seasonal hires this time, though. More on Markets: Housing market update spells more troubleWhy Thursday's market bell might echo in historyWall Street veteran analyst who predicted stock market rally resets forecast Layoffs were starting to impact areas like transportation and hospitality, once considered safe from recession talk. And June's data felt more like walking a tightrope. The month kicked off with claims climbing to 248,000, and up until last week, the four-week average crept up to 245,500, the highest it's been in nearly two years. That was all before today's update, adding a new twist to the story. For the week ending June 21, initial jobless claims dropped to 236,000, 10,000 lower than the week before and below the 244,000 forecast. That comes with a catch, though, as last week's numbers were quietly revised to 246,000 - a soft win, at best. Meanwhile, continuing claims surged by 37,000 to 1.974 million, the highest since late 2021. Related: Tesla's robotaxi finally launches, but there's a twist This clearly indicates that more folks are stuck on benefits significantly longer than expected, clipping away at their disposable incomes. Unadjusted state filings dropped 4% to 227,080, again mostly in line with last year once you factor out seasonal noise. Moreover, with the insured unemployment rate at 1.2%, things continue to look bleak for those already out of work. Nevertheless, it seems the markets are shrugging off those darker themes. S&P 500 futures briefly popped to 6,171 earlier today, topping the prior intraday record of 6,166. Hence, Mr. Market's still buying the corporate resilience story, even as the jobless rolls tell a more cautionary tale. Related: Gemini, ChatGPT may lose the AI war to deep-pocketed rival The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
