Latest news with #Trump-era
Time of India
17 hours ago
- Business
- Time of India
Nike stock jumps 15% on earnings beat and turnaround plan — is this the recovery buy Wall Street was waiting for?
Nike stock skyrockets 15% as Wall Street calls it a 'recovery story in motion' after surprise earnings beat: Nike Inc. (NKE) stock surged nearly 15% on Thursday, marking its largest single-day gain since the pandemic recovery of 2020. The rally comes in response to the company's stronger-than-expected Q4 earnings and a focused plan to revive growth, streamline costs, and reduce exposure to China amid growing trade tensions. What triggered Nike's 15% surge? 1. Q4 earnings beat estimates Nike reported earnings of $0.14 per share on revenue of $11.4 billion, beating analysts' lowered estimates of $0.13 EPS on $11.0 billion in sales. While revenue dropped 2% year-over-year, the company outperformed in North America and managed to hold margins steady despite heavy discounting. 2. Solid forward guidance For fiscal Q1, Nike expects revenue to decline by only mid-single digits, a less severe contraction than many analysts anticipated. Moreover, gross margins are projected to improve between 50–70 basis points, driven by fewer discounts and leaner inventories. Also Read: US stock market hits new record: S&P 500 live updates: All 3 indices hit record highs as Trump–China trade deal lifts Wall Street, AI stocks surge Live Events Key business shifts boosting confidence 3. China exposure being scaled down Nike addressed investor concerns about tariffs and Trump-era trade policies by announcing it will reduce sourcing from China from 16% to below 10% by fiscal 2026. This move is designed to protect margins and diversify the supply chain. 4. Refocus on innovation & core categories Nike is doubling down on performance categories like running, basketball, and women's apparel, with product lines such as Pegasus 41 and Alphafly 3 seeing strong early demand. The company aims to launch 25% more new products in FY2026 to reinvigorate brand momentum. Analyst upgrades and valuation outlook Wall Street responded swiftly. Jefferies upgraded Nike to Buy , calling the stock a 'recovery story in motion.' JPMorgan raised its price target from $80 to $94 , citing better inventory control and China de-risking. BofA and HSBC echoed positive sentiment, with revised targets ranging from $88 to $100 . Nike currently trades at 26x forward earnings, a discount to its five-year average of ~30x, giving it room for re-rating if growth stabilizes in H2 2025. Looking ahead, Nike expects full-year FY2026 to return to low-single-digit revenue growth and margin expansion. The company also plans to repurchase $5 billion in shares over the next 18 months, a strong signal of internal confidence. Nike's explosive 15% rally is more than a bounce—it's a reflection of renewed investor belief in its turnaround story. With aggressive supply chain moves, revitalized product lines, and early signs of stabilization, Nike could be on track to reclaim its leadership stride in the global athletic market. Investors will be watching closely in the next two quarters for proof that this momentum is sustainable. FAQs: Q1: Why did Nike stock jump 15% today? Nike stock surged after an earnings beat and a clear turnaround plan that impressed investors. Q2: Is Nike a good buy right now? Analysts are turning bullish, calling Nike a recovery story and a possible buy opportunity.
The Hill
17 hours ago
- Business
- The Hill
Supreme Court upholds federal internet subsidy program
The Supreme Court in a 6-3 decision upheld a multibillion-dollar subsidy program that funds phone and internet services in rural areas and schools on Friday, rejecting a conservative group's claims that Congress delegated away too much power in setting it up. Established in 1996, the Universal Service Fund (USF) is intended to help the Federal Communications Commission (FCC) accomplish its decades-long aim of affordable 'universal service' nationwide by providing subsidies to rural and low-income consumers as well as schools, libraries and health care facilities. It spends roughly $8 billion annually. Conservative nonprofit Consumers' Research challenged how Congress delegated determining how much telecommunications companies must contribute to the fund to the FCC, which it, in turn, sets based on a private company's financial projections. The group claimed the two layers combined violates the nondelegation doctrine, which prevents Congress from delegating its legislative authority to the executive branch without an intelligible principle. 'Nothing in those arrangements, either separately or together, violates the Constitution,' Justice Elena Kagan wrote for the majority, which comprised the court's three Democratic-appointed justices and three of the six Republican-appointed justices. Justice Neil Gorsuch, joined by Justices Clarence Thomas and Samuel Alito, dissented. 'When it comes to other aspects of the separation of powers, we have found manageable ways to honor the Constitution's design. This one requires no less of us,' Gorsuch wrote. Anti-regulatory interests had hoped the Supreme Court would use the case to revitalize the nondelegation doctrine, which the high court has not used to strike down a statute in 90 years. But the justices instead sided with the federal government, keeping the USF intact. Both the Biden and Trump-era Justice Departments defended the program. Among others, Consumers' Research challenge was backed by Americans for Prosperity Foundation, a libertarian advocacy group affiliated with the Koch brothers; the conservative Christian legal powerhouse Alliance Defending Freedom; Former Vice President Pence's advocacy group, Advancing American Freedom; the Trump-aligned America First Legal Foundation; and the Cato Institute, a prominent libertarian think tank. Meanwhile, a bipartisan group of 22 state attorneys general, consumer advocacy group Public Citizen, broadband groups and the American Library Association and others filed briefs in support of USF.
Yahoo
18 hours ago
- Business
- Yahoo
Alphabet Google's (GOOGL) DeepMind Unveils AlphaGenome to Revolutionize DNA Research
Alphabet Inc. (NASDAQ:GOOGL) is one of the . On June 25, Google's DeepMind announced the launch of AlphaGenome: an AI model that helps scientists better understand DNA, the hereditary material in all organisms. The new artificial intelligence tool by Google is designed to predict how genetic variations in human DNA impact biological processes that regulate genes. This AI model is capable of analyzing up to 1 million DNA base pairs and predicting thousands of molecular properties related to regulatory activity. It can also assess the effects of genetic variants by comparing predictions between mutated and unmutated sequences. The company is making AlphaGenome available in preview via their AlphaGenome API for non-commercial research, and also plans to release the model in the future. The predictive capabilities offered by AlphaGenome will help more accurately predict genetic disruptions, guide the design of synthetic DNA with specific regulatory function, and also accelerate our understanding of the genome. Photo by Kai Wenzel on Unsplash 'AlphaGenome will be a powerful tool for the field. Determining the relevance of different non-coding variants can be extremely challenging, particularly to do at scale. This tool will provide a crucial piece of the puzzle, allowing us to make better connections to understand diseases like cancer.' -Professor Marc Mansour, University College London Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. 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: 10 AI Stocks in the Spotlight and . Disclosure: None. 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
18 hours ago
- Business
- Yahoo
GitLab's (GTLB) Strategic AI Moves Are Fueling a Bullish Outlook
GitLab Inc. (NASDAQ:) is one of the . On June 25, Bank of America Securities analyst Koji Ikeda maintained a 'Buy' rating on the stock and set a price target of $72.00. Ikeda's Buy rating reflects GitLab's strategic positioning and growth potential. The stock has been gaining attention, particularly due to the integration of AI capabilities throughout its DevSecOps workflows. This is especially true with version 18.0, which includes Duo features in Premium and Ultimate tier subscriptions. These changes could help the company monetize by reaching more users. The enhancements are anticipated to boost GitLab's revenue growth trajectory, with GitLab poised to be a long-term leader in the $53 billion DevSecOps market. Moreover, the company's focus on its AI agentic offering, especially the Duo Agent Platform, is expected to enhance developer productivity by automating a substantial portion of development workflows. GitLab also focuses on security and compliance, making it a suitable choice for enterprises that seek comprehensive solutions. Furthermore, more companies are hiring software developers once again, which supports the demand for GitLab's seat-based pricing model. All of these factors reinforce the firm's Buy rating and the price objective of $72. GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific. While we acknowledge the potential of GTLB 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: 10 AI Stocks in the Spotlight and Disclosure: None.
Yahoo
18 hours ago
- Business
- Yahoo
Keurig Dr Pepper's Dividend Reliability Strengthens With Bold Insider Purchase
Keurig Dr Pepper Inc. (NASDAQ:KDP) holds a place among our list of 10 best low-risk dividend-paying stocks for June 2025. The director makes a bold investment in the stock while the market is facing challenges from ICE raids. A conveyor belt filled with assorted K-Cup pods, ready for packaging. Headquartered in Texas, Keurig Dr Pepper Inc. (NASDAQ:KDP) is a leading beverage company that manufactures and distributes different variety of beverages, including soft drinks, coffee, tea, water, juice, and mixers. The company has a portfolio of more than 125 brands such as Dr Pepper, Green Mountain Coffee Roasters, Canada Dry, and Snapple. Keurig Dr Pepper Inc. (NASDAQ:KDP) saw notable movement in its insider transactions on June 6, 2025, when Director Michael Van-Ven purchased 15,000 shares of the company's stock. The transaction was valued at $498,000 and signals a strong vote of confidence in the future growth of the company. Later on June 11, 2025, the WSJ reported a fall in sales of some of the largest companies in the U.S., due to the ICE raids, which prevented many Latino customers in the country to shy away from public life. This includes Coca-Cola, which incurred a 3% decline in sales in the first quarter. The company's titular beverage, however, continues to stay ahead of Keurig Dr Pepper Inc. (NASDAQ:KDP) in terms of market share. With a beta of 0.5, Keurig Dr Pepper Inc. (NASDAQ:KDP) strongly resists fluctuations against the market average and offers a dividend yield of 2.77%. Investors purchasing the stock before June 27, 2025, will be eligible for the dividend payments on July 11, 2025. While we acknowledge the potential of KDP 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: and . Disclosure. None. 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
