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Yahoo
4 hours ago
- Business
- Yahoo
Is META Stock a Buy, Sell, or Hold as Meta Platforms Launches New v-JEPA 2 AI Model?
As the artificial intelligence (AI) race accelerates toward advanced machine intelligence (AMI), tech giants are pushing boundaries to create agents that can reason more like humans. A key piece of this puzzle is physical reasoning, essential for AI systems to navigate and act within the real world. Meta Platforms (META) has stepped into this frontier with the launch earlier in June of its Meta Video Joint Embedding Predictive Architecture 2 (V-JEPA 2), a powerful video-based world model that helps machines anticipate how the physical world behaves. Unlike language-only models, V-JEPA 2 learns from video data to predict object dynamics and human interactions using latent-space simulation. It allows robots to 'think before they act,' performing tasks like picking up and placing objects in unfamiliar environments. Ditch Big Tech and Buy These 3 Popular Stocks in 2025 Instead Dear Nvidia Stock Fans, Watch This Event Today Closely Can Broadcom Stock Hit $400 in 2025? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Meta's bold move also includes new benchmarks to accelerate physical reasoning research, plus, a reported $14.3 billion investment in Scale AI, signaling CEO Mark Zuckerberg's intent to anchor AI deeply into Meta's ecosystem. But does this push into physical AI make META stock a buy, or should investors wait on the sidelines? Meta Platforms (META) has grown from a college social network into a global tech powerhouse, redefining how billions of people communicate. The California-based tech titan now oversees a sprawling digital empire, anchored by social media giants such as Instagram, WhatsApp, and Messenger, and is charging ahead into the future with ambitious bets in AI, augmented reality, and the metaverse. What began with a newsfeed has evolved into a full-scale push to shape how humans and machines interact in the next era of connectivity. That future-facing focus seems to be paying off. Meta's shares have surged more than 700% over the past decade. In 2025, META has so far delivered a standout 21% YTD gain, and over the past year, the stock has skyrocketed 38.8%, handily beating not just some of its tech peers, which flinched under pressure, but also the S&P 500 Index's ($SPX) returns. The surge was fueled by rising ad revenues, deeper AI integration, and investor faith in its metaverse roadmap. Meta's Q1 2025 earnings report, released on April 30, came out swinging, crushing expectations and fueling a 4.2% jump in the stock the very next day. Revenue climbed 16% year over year to $42.3 billion, beating Wall Street's estimate of $41.4 billion. But the real knockout punch came from EPS, soaring 37% to $6.43, 23.2% higher than forecasts. Meta's ad engine is still humming, with impressions up 5% and the average price per ad jumping 10%. User growth remains rock solid too, as, in March, daily active users across the company's app family reached 3.4 billion, up 6% year-over-year. Meta tightened the screws on costs and it paid off. Its operating income surged 27% to $17.56 billion, lifting margins to 41%. Plus, with $70.2 billion in cash and marketable securities and just $28.8 billion in long-term debt, Meta heads deeper into 2025 with a strong balance sheet and momentum on its side. CEO Mark Zuckerberg highlighted AI as the driving force behind the company's renewed energy, particularly Meta AI and its growing line of smart glasses. Meta AI has already hit nearly 1 billion monthly users. But the real story may be what's next. Looking ahead, management anticipates Q2 revenue to be between $42.5 billion and $45.5 billion, signaling continued strength. Plus, with capex now projected to be between $64 billion and $72 billion for 2025, Meta is going full throttle into AI infrastructure and next-gen computing. Analysts monitoring the social media company project its revenue for Q2 to be around $44.5 billion, and EPS for the quarter is anticipated to rise by 11.4% year over year to $5.75. Looking further ahead to fiscal 2025, the bottom line is expected to climb to $25.25 per share, up 5.8% annually. AI-driven robotics and autonomous systems are reshaping industries - from logistics to consumer tech - with speed and adaptability becoming the new gold standard. Meta's V-JEPA 2 steps into this evolving space as a potentially disruptive force. What truly elevates V-JEPA 2, however, is Meta's decision to open-source the framework. By releasing code, benchmarks, and training data, Meta is fostering a collaborative ecosystem, one that could fuel innovation far beyond its own walls. Yet this openness is a double-edged sword. It lowers barriers for startups but also gives its competitors access to refine their systems faster. For Meta, the model is a strategic leap, but long-term success depends on how well it is integrated, scaled, and monetized. Meta's ambition to dominate AI just got Wall Street's nod. Recently, Bank of America hiked its price target to $765, citing easing macroeconomic worries and expanding valuations. Buzz around Meta's roughly $14.3 billion Scale AI investment only adds fuel, signaling Zuckerberg's intent is to lead the AI race, not follow. Wall Street has got its foot on the gas for Meta. The stock holds a 'Strong Buy' consensus, signaling full-speed-ahead confidence in its trajectory. Of the 54 analysts offering recommendations, 45 are giving it a solid 'Strong Buy,' three advise a 'Moderate Buy,' four suggest a 'Hold,' and only two advocate a 'Strong Sell.' META's average analyst price target of $711,88 implies modest 2.4% potential upside. However, the Street-high price target of $935 suggests that the stock can still rally as much as 32% from here. On the date of publication, Sristi Suman Jayaswal 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
Business Times
16 hours ago
- Business
- Business Times
Mid-year insights: Opportunities amid globalisation's discontents
IN THESE days of waning US-centric investment, some investors are betting that US President Donald Trump's tariff rhetoric may not translate into action, while others pursue strategies tilted toward industrials-heavy nations that may be benefiting from increased defence spending. Either way, the tide turned decidedly global during the first half of 2025. Diversification vs tariff sensitivity Building upon lessons from the Russia-Ukraine war, the United Kingdom recently unveiled plans to significantly raise defence spending and accelerate the development of next-generation security capabilities. The notable rise tracks the trend we've seen in military expenditure across the globe, which reached US$2.7 trillion last year – an increase of 9.4 per cent in real terms from 2023. We believe this localisation of defence production should continue to spur job growth and revitalise smaller industrial centres. South Korea's market has also been lifted given its recent aerospace and defence company gains resulting from global expansion moves and expectations for increased orders on higher European defence spending. A leading South Korean aerospace company formalised its plan to establish a production base in Germany in addition to pursuing other projects in Poland, Romania and Canada, as it moves to strengthen its leadership in the sector. To date this year, South Korea's market saw exchange-traded fund (ETF) net inflows rise more than 121 per cent – higher than any other major Asian economy for the period. It has also widely outperformed the US market year-to-date, returning 21.3 per cent as measured by the Kospi Index (versus 1.1 per cent for the S&P 500 Index). We are optimistic that the recent landslide victory by South Korea's new president Lee Jae-myung can usher in a long-awaited political normalisation for Seoul, following months of political crisis stemming from the impeachment of the country's former leader in December. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Eurozone/Germany For the second half of the year, we foresee ongoing opportunities in Germany and the eurozone, which offer differentiated sector allocation compared to the tech-heavy S&P 500 Index. By contrast, Germany's information technology (IT) sector is its third largest. Similarly, the Stoxx Europe 600 Index holds top weightings in financials (around 23 per cent) and industrials (about 19 per cent) firms, with IT making up just 7 per cent of the index. Europe's stock market got an early boost in March when German officials proposed spending hundreds of billions of euros on infrastructure and defence, a notable departure from Berlin's reputation for fiscal austerity. In a significant turnaround for the long-sluggish market, the Stoxx 600 Index outpaced the S&P 500 by about 20 percentage points in US dollar (USD) terms at the end of May. Moreover, the US administration is considering taxing foreign owners of US assets from countries with 'unfair' tax practices, a move that could potentially discourage capital inflows and weaken the USD. This is leading investors to reassess their dollar exposure, particularly after April's simultaneous selloff in US stocks, bonds and USD, which revealed reduced diversification benefits. We believe a stronger euro, resilient corporate earnings and attractive valuations are making the region increasingly appealing, drawing investor attention back to the eurozone. Year-to-date, ETFs focused on the Europe region drew net flows of US$33 billion, bringing total net inflows to US$238.97 billion. Net ETF inflows have risen 19 per cent year-to-date. Germany's proposed infrastructure spending alone, by some estimates, may raise economic output by more than two percentage points per year over the next decade. Such comprehensive reforms stand to benefit not only its defence sector but the overall economy by stimulating job growth and key development areas such as manufacturing, green technology, and digital infrastructure. Titans of Latin America: Mexico and Brazil Notwithstanding the current uncertainties over tariffs facing steel industry exports to the United States, we believe Mexico should continue to benefit by capturing a disproportionate share of nearshoring opportunities. Whether Trump can justify his tariff policy in the courts remains to be seen, and steel duties facing Brazil and Mexico pose key risks, in our opinion. Mexico is also coping with a marked decline in remittances – a significant component to its economy – which recently registered their largest annual drop in more than a decade as US lawmakers mull taxing the transfers and continue with crackdowns on immigration. Last year, Mexico received nearly US$65 billion in remittances – roughly 3.5 per cent of its gross domestic product. An extended decline could affect consumption in Latin America's second-largest economy. Mexico's stock market, however, is heavily weighted toward sectors like consumer staples and communication services, known for their stable cash flows and reliable dividends, offering some resilience in uncertain times. In our analysis, valuations also appear attractive compared to historical averages: Over the past five years, the average 12-month adjusted price-to-earnings ratio for Mexican stocks was some 19 times. Currently, the S&P/BMV Total Mexico Index is trading at 12.6 times, based on forward earnings estimates. Brazil As companies continue to pivot to a 'China plus' strategy – maintaining operations in China while expanding production elsewhere – we believe Brazil may also be poised to benefit. China, Brazil's largest trading partner, is already shifting further demand for agricultural goods to Brazil, which was spared more of a direct hit in the tariff war as the country faces the lowest level of reciprocal US tariffs. President Luiz Inácio Lula da Silva's recent visit to Beijing resulted in planned investments and agreements of about US$4.8 billion, underscoring Brazil's growing economic ties with China. Despite the country's current fiscal challenges, we believe Brazil's strategic positioning as a key commodity exporter, particularly in soybeans and meat, should bode well for its economic growth. During the second half of this year, politics should weigh more heavily on Brazil's market with its 2026 presidential election coming into clearer focus. Given Lula's low approval ratings, concerns over his health (emergency brain surgeries and chemotherapy treatments) and age (81), there is speculation that fresh candidates may emerge and increase the potential for markets to react positively to any signs of change. Over the near term, we'll be keeping close tabs on the divergence of each country and region's unique characteristics as they highlight the varying opportunities and risks, especially amid Trump's particular approach to reciprocal policymaking, and underscore the need for more nuanced investment strategies. The writer is head of global index portfolio management at Franklin Templeton
Yahoo
20 hours ago
- Business
- Yahoo
Is Pinnacle West Stock Outperforming the S&P 500?
Phoenix, Arizona-based Pinnacle West Capital Corporation (PNW) provides retail and wholesale electric services primarily in the state of Arizona. With a market cap of $10.8 billion, the company is involved in the generation, transmission, and distribution of electricity from coal, nuclear, gas, oil, and solar sources. Companies worth $10 billion or more are generally described as 'large-cap stocks,' and PNW fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regulated electric utilities industry. The company benefits from being the primary provider of electricity to residential, commercial, and industrial customers in the state of Arizona. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Warren Buffett Warns 'Thumbsucking' is 'the Cardinal Sin' in Business Because It's 'Delaying the Correction of Mistakes' Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. PNW currently trades 8% below its 52-week high of $96.50, met on Apr. 3. The stock has dipped 3% over the three months, underperforming the S&P 500 Index's ($SPX) 5.5% uptick during the same time frame. However, on a YTD basis, PNW has grown 4.7%, outperforming $SPX's 3.6% rise. Over the past year, PNW has surged 18%, outperforming $SPX's 11.4% rise over the same period. To confirm its recent downturn, PNW has been trading below its 200-day moving average since the last trading session and below its 50-day moving average since early May. On May 1, PNW announced its Q1 earnings, and its shares fell 1.9%. The company reported an 8.5% year-over-year increase in its operating revenues, which totaled approximately $1 billion. Moreover, the company reported a $0.04 net loss per share for the quarter, which fell short of the Street's expectations by 180%. Its rival, Xcel Energy Inc. (XEL), has declined marginally in 2025 and has surged 25.3% over the past year, outperforming the stock. PNW has a consensus rating of 'Moderate Buy' from 15 analysts covering it. Its mean price target of $97.71 indicates a modest 10.1% upside potential from the current market price. On the date of publication, Kritika Sarmah 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
20 hours ago
- Business
- Yahoo
Is Dayforce Stock Underperforming the S&P 500?
With a market cap of $9.2 billion, Dayforce Inc. (DAY) is a leading cloud-based Human Capital Management (HCM) platform headquartered in Minneapolis. Founded in 1992, it serves over 7 million users across more than 50 countries and employs approximately 9,600 staff. Its unified suite offers payroll, HR, time and attendance, workforce management, talent, benefits, and analytics, all powered by AI and real-time data Companies valued between $2 billion and $10 billion are generally labeled as 'mid-cap stocks," and Dayforce fits this criterion perfectly. Its architecture enables continuous calculation and AI-powered insights, providing clients with improved accuracy, compliance, and efficiency. The company's global presence, serving customers in over 50 countries, and ability to scale across complex enterprise environments further enhance its market position Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Warren Buffett Warns 'Thumbsucking' is 'the Cardinal Sin' in Business Because It's 'Delaying the Correction of Mistakes' Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. However, DAY stock has fallen 33.5% from its 52-week high of $82.69 met on Nov. 25. Over the past three months, Dayforce slipped 8.6%, underperforming the S&P 500 Index's ($SPX) 5.5% uptick during the same time frame. In 2025, Dayforce declined 24.3%, in contrast to the S&P 500's 3.6% gain. Over the past 52 weeks, the stock has risen 10.7%, though it still trails the S&P 500's 11.4% advance during the same period. DAY has remained below its 200-day moving average since late February and has recently slipped beneath its 50-day moving average, signaling continued weakness in momentum. On May 7, Dayforce posted Q1 2025 results, with adjusted EPS of $0.58 and revenue reaching $481.8 million, both exceeding expectations. However, the stock slid 6.4% after the company issued a softer Q2 revenue forecast of $454 million to $460 million, falling short of Street estimates. The earlier announcement in February of a 5% workforce reduction further pointed to underlying cost pressures, despite the company's ongoing revenue growth. Its key rival, Alkami Technology, Inc. (ALKT), has outperformed DAY, with a smaller year-to-date decline of 20% and a stronger 10.8% gain over the past 12 months. The stock has a consensus rating of 'Moderate Buy' from the 17 analysts covering the stock. Its mean price target of $67.73 implies an upside potential of 23.1% from the current market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
This Growth Stock Is Down 13% in 2025. Should You Buy the Dip?
The S&P 500 Index ($SPX) is hitting new all-time highs, putting tariff uncertainty, recession fears, and geopolitical turmoil on the back burner. Tech stocks have also participated in the rally with a few exceptions. Adobe Systems (ADBE), for instance, is down 13% for the year as of this writing. The stock's underperformance is not unique to 2025. It lost a quarter of its market capitalization last year, missing out on the tech rally. ADBE trades nearly 45% lower than its all-time high and has been out of favor with the market for quite some time now. Dear Nvidia Stock Fans, Watch This Event Today Closely 3 ETFs Offering Juicy Dividend Yields of 15% or Higher A $2 Billion Reason to Sell Super Micro Computer Stock Now Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. To be sure, Adobe is no longer the kind of growth story it once was, and its revenues are expected to grow by less than 10% each in 2025 and 2026. The stock's valuations have also adjusted to the kind of growth Adobe is delivering. However, are the valuations now at a level where Adobe enters the 'buy' zone? Let's discuss. To begin with, let's analyze why Adobe stock has sagged. Firstly, the company is facing intense competition, particularly from Canva, whose paid users are now over half of Adobe Creative Cloud. Adobe tried acquiring Figma, which is its competitor in collaborative design tools and UX/UI design, but had to abandon that deal as it failed to get regulatory clearances. Markets are also apprehensive about the company's ability to monetize its artificial intelligence (AI) investments. Notably, AI is both an opportunity and a threat for Adobe as new competitors could put pressure on its pricing power, putting its juicy margins at risk. In hindsight, it seems Adobe management wasn't prudent with its capital allocation and spent aggressively on buybacks. While it still has a formidable balance sheet, the company repurchased shares at a much higher price than what they currently stand at. But it's not all over for Adobe. The company boasts significant recurring revenues through subscriptions. It reported digital media annualized recurring revenue (ARR) of $18.09 billion at the end of the quarter ending May, with the number rising 12.1% compared to the same time last year. The company expects its ARR book to rise 11% in the current fiscal year, which looks quite decent even as the growth has arguably come down. Among others, Firefly has helped expand the company's ecosystem. During its fiscal Q2 earnings call, Adobe said that the app is attracting new users to its franchise, and its subscribers rose 30% in the quarter. Adobe's gross margins are nearly 90% while adjusted operating margins are in the mid-40s, which is quite healthy. The company's subscription-based business helps it post fat margins, and historically, the stock has traded at a premium to broader markets given its business model. Overall, of the 34 analysts covering Adobe stock, 23 have a 'Strong Buy' rating while two rate it as a 'Moderate Buy.' The remaining nine analysts rate the stock as a 'Hold' or some equivalent. Adobe stock trades slightly above its Street-low target price of $380, while the mean target price of $499.40 implies upside potential of nearly 30%. Analyst action following Adobe's fiscal Q2 2025 earnings release was quite mixed. While some analysts raised their target price after a strong report where the company beat on all key metrics, others cut their target price. Adobe's outlook was perhaps best summed up by CFRA Research analyst Angelo Zino, who lowered his target price from $575 to $500. In his note, Zino said, 'Still, at near historical-low valuations and given its highly recurring business model and attractive margins, we think shares offer an enticing risk/reward opportunity, but investors may need to be patient due to limited catalysts.' Adobe's valuations have corrected amid the slowing growth and concerns over competitive pressure. It currently trades at almost 20x its expected EPS in the fiscal year 2026, which would end in November 2026. I believe the valuations are quite comfortable at these levels, even after pricing in the headwinds. Concerns over the company losing out to new startup rivals might be a bit overblown, and I find the stock's risk-return as reasonably attractive here, even as they are not mouthwatering, and the chances of an immediate re-rating look bleak. Overall, Adobe is one growth stock that I will keep on my radar, and would consider adding positions if the stock sees more downward pressure. On the date of publication, Mohit Oberoi 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 Sign in to access your portfolio
