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Yahoo
3 hours ago
- Business
- Yahoo
Why Shares of AeroVironment Are Flying Higher This Week
AeroVironment's report of strong fourth-quarter 2025 financial results this week provided just one cause for the stock's rise. One analyst sees increased upside for AeroVironment stock. Shares of AeroVironment have soared higher in 2025, and investors may want to wait for shares to drop before considering a position. 10 stocks we like better than AeroVironment › After dipping almost 3% lower last week, shares of AeroVironment (NASDAQ: AVAV) have steadily gained more altitude this week for a variety of reasons. For one, the market is responding kindly to the drone company's fourth-quarter 2025 financial results, which it released on Tuesday. An analyst's positive take on the stock, as well as news from the NATO summit, are also contributing to the buying activity. According to data provided by S&P Global Market Intelligence, shares of AeroVironment are up 40.2% from the end of trading last Friday through 3:10 p.m. ET on Thursday. While analysts expected AeroVironment to post fourth-quarter 2024 revenue of $242.6 million -- a company record for quarterly sales -- and earnings per share (EPS) of $1.38, the company performed markedly better, reporting sales and EPS of $275.1 million and $1.61, respectively. The future seems bright as well. Management noted that AeroVironment ended Q4 2025 with a backlog that was almost twice what it was at the end of fiscal 2024. An improved outlook on AeroVironment stock provided another catalyst for its rise this week. Raising its price target to $225 from $200, Raymond James maintain its strong buy rating on the stock due to the presumed positive effect that the acquisition of Blue Halo, a designer of drones with advanced artificial intelligence (AI) capabilities, will have on the company. Investors are also surmising that news from NATO that leaders are in agreement to increase defense spending to 5% of their countries' GDP by 2035 will benefit AeroVironment. In addition to the United States, AeroVironment generates sales from business with international allies. With shares of AeroVironment now up 76% for the year, it seems that investors may want to watch the stock from a distance until there's a pullback. Fortunately for them, there are plenty of other leading drone stocks to investigate as potential buys. 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 $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% 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 23, 2025 Scott Levine 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 Shares of AeroVironment Are Flying Higher This Week was originally published by The Motley Fool 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
3 hours ago
- Business
- Yahoo
AT&T (NYSE:T) Declares Dividends on Preferred and Common Stocks for August 2025
AT&T recently declared quarterly dividends for both its preferred and common stocks, underscoring its commitment to shareholder returns. Over the past month, AT&T's stock moved up by 2%, closely aligning with the broader market's 2% increase. While the dividend announcements may have reinforced investor confidence in the company's stability, the performance was generally in step with market trends. The ongoing antitrust lawsuit mentioning AT&T has not drastically deterred its market performance. Additionally, the company's collaborations in enhancing public safety with technology partnerships have bolstered its innovative image, likely supporting its consistent stock movement. AT&T has 3 weaknesses we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. AT&T's recent dividend announcements alongside technological collaborations may strengthen investor confidence, contributing to a robust narrative around 5G and fiber investments. Over the past five years, AT&T's total shareholder return, including both share price appreciation and dividends, was 70.36%, reflecting a steady commitment to enhancing shareholder value. In contrast, its recent yearly performance outpaced the US Telecom industry, which saw a 25.5% increase, showcasing that AT&T is keeping pace with, if not exceeding, broader industry trends. The ongoing antitrust lawsuit's minimal impact on share price suggests an underlying resilience that aligns with AT&T's growth strategies. However, the regulatory and competitive pressures remain significant hurdles. These factors could potentially influence revenue and earnings forecasts, especially as AT&T navigates its transition to fiber infrastructure, which aims to bolster net margins through cost reductions. The maintenance of a US$40 billion shareholder return plan, combined with a US$10 billion stock repurchase program, further underscores the firm's focus on earnings-per-share growth. With AT&T's current share price of US$27.5, the market attention shifts to the consensus analyst price target of US$29.30. This price target suggests a moderate upside potential, while the most bullish analyst forecasts envision a 12.6% increase in share value to US$31.46. As AT&T continues to execute its strategic initiatives, the alignment of its long-term investments with analyst expectations remains crucial in navigating market dynamics and investor sentiment. Gain insights into AT&T's future direction by reviewing our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:T. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
4 hours ago
- Business
- Yahoo
Do you know your monthly cash flow? Here's how to calculate it.
If money seems to disappear from your bank account nearly as soon as it arrives, you may have a cash flow problem. Cash flow is the movement of money into and out of your accounts. While cash flow is a common term within the business world, it applies to your personal finances too. If you don't yet know how to calculate your cash flow, learning can help you better manage your money. For instance, knowing your cash flow can help you make smart budgeting decisions and ensure you make progress toward your savings goals. And don't worry — you don't need a calculus degree to figure this out. Continue reading to learn the simple equation for calculating your cash flow and why it's so important. This embedded content is not available in your region. Cash flow is the movement of money into and out of your bank account. A positive cash flow means more money enters your bank account than leaves it, allowing your balance to grow over time. A negative cash flow is the opposite — you're spending more money than you bring in. Positive cash flow is the goal because it allows you to save money for the future. Several types of transactions can contribute to your cash flow, broken up by 'inflows' and 'outflows.' Inflows might include income from a W2 job, self-employment, rental income, or other investments. Outflows include all of your expenses, such as housing, utilities, groceries, debt payments, clothing, entertainment, and more. Your cash flow is equal to your inflows minus your outflows. Understanding and tracking your cash flow isn't just crucial for businesses — it's important for any individual who wants to keep tabs on their financial health. For example, say you have a negative cash flow every month, but you don't realize it. Eventually, you'll empty your savings account and need to take on debt to cover your expenses. However, if you keep a closer eye on your cash flow, you'd notice that you're spending more than you earn every month. Knowing this, you can take action to improve your cash flow, such as cutting discretionary spending, getting a roommate to help with rent, or negotiating a raise at work. Unlike some financial calculations, finding your cash flow is simple. To calculate your cash flow: Add up all your sources of monthly income. Then, add up all of your monthly expenses. Last, subtract your total monthly expenses from your total monthly income. Say your income or expenses vary each month. In that case, you can calculate an average monthly cash flow by adding up several months of income and several months of expenses, finding the difference, and dividing by the number of months. To illustrate what a cash flow calculation looks like, here's an example: Say you earn $4,500 per month after taxes. You also have a side hustle that generates $1,200 in monthly income. Total monthly income: $5,700 Your typical monthly expenses are as follows: Rent: $1,500 Utilities: $200 Groceries: $400 Transportation: $500 Insurance: $300 Student loan payment: $200 Household and clothing: $200 Dining out: $300 Fun money: $200 TOTAL: $3,800 Next, subtract your total expenses from your total income: $5,700 - $3,800 = $1,900 Cash flow = $1,900 With a positive cash flow of $1,900, you have money left over each month to save or invest. For example, you might decide to invest $800 for retirement, put $800 toward a down payment savings account, and put the remaining $300 into a travel fund. If you calculate your cash flow only to find a negative number, it can be discouraging. However, there are some things you can do to improve your personal cash flow over time. If your spending in certain categories consistently exceeds what you plan for, budgeting may help. A budget can help you proactively plan for and track your spending. So if you're halfway through the month with only 10% of your fun money left, you know it's time to cut back. When creating a budget, you may find you're spending a lot more than you realize. If that's the case, cut down on spending where you can. Though discretionary spending is usually the easiest place to cut back, you can also see if there are ways to reduce your essential expenses. For example, you could get a roommate to save on rent and replace your new car with a fully paid-off older model. There's only so much you can cut from your expenses without living in a state of constant deprivation. That's why it's also helpful to focus on growing your income. This could look like negotiating a raise, applying for a higher-paying role, or even starting a side hustle outside of your day job. If you've heard the phrase, 'pay yourself first,' but never took it to heart, it may be time to follow this advice. Paying yourself first means prioritizing your future by immediately contributing to your savings and investment accounts — ideally using automatic contributions — before paying other bills. This ensures you aren't short-changing yourself at the end of the month. Paying yourself first may force you to cut back on discretionary expenses, which can be helpful for those who struggle to do so on their own. You can calculate your monthly cash flow by totaling your monthly inflows, totaling your monthly outflows, and subtracting the total outflows from the total inflows. Inflows include any form of income, and outflows include bills and other monthly spending. There's no specific healthy cash flow number, but generally, a positive cash flow is best. Having a positive personal cash flow means your income exceeds your bills, and there's money left over for saving and investing. The bigger your savings and investment goals (or the shorter your timeline), the more advantageous it is to have a bigger cash flow. Cash flow tells you the net movement of money into your accounts every month. For example, a positive cash flow tells you that you earn more than you spend. This means you have money left over to stash in a savings account or invest for the future. If your cash flow is negative, that means you spend more than you earn, and unless you change your habits, you'll eventually deplete your savings.
Yahoo
4 hours ago
- Business
- Yahoo
Market Risk Overshadows IonQ's 466% Stock Surge
IonQ (IONQ) has established itself as a leading player in the quantum computing space, with its shares surging an impressive 466% since this time last year. The company's differentiated trapped-ion architecture and strong integration across major cloud platforms have garnered significant investor interest. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter However, despite its technological strengths, IonQ's current valuation reflects elevated multiples and persistent profitability challenges. As a result, the risk-reward profile has become more nuanced. While the company's long-term potential remains compelling, I believe the stock is fairly priced at present, and I therefore maintain a Hold rating. Founded in 2015 and headquartered in College Park, Maryland, IonQ has established itself as a quantum computing leader through its distinctive trapped-ion architecture. The firm offers quantum computing as a service (QCaaS) through cloud platforms like Amazon Braket, Microsoft Azure Quantum, and Google Cloud. Users can also run quantum programs remotely on IonQ's hardware, without having to own the machines. The business model revolves around becoming a platform provider for next-generation computing, similar to how NVIDIA (NVDA) enables AI with GPUs, IonQ wants to enable quantum breakthroughs with trapped-ion systems. These systems can operate at room temperature while maintaining fidelity rates of 99.9% for two-qubit gates, providing significant advantages over competitors that require extremely cold operating conditions. Not intent on standing still, the company recently announced its largest acquisition, with the $1 billion purchase of Oxford Ionics, combining the stack with a proprietary ion-trap-on-chip architecture. Additional acquisitions include Lightsynq Technologies and a controlling stake in ID Quantique, representing a further $1 billion. These massive strategic moves demonstrate a commitment to building a comprehensive quantum ecosystem, though a significant dilution of between 7-11% of shares raises substantial concerns about shareholder value. Technological expansion through acquisitions is promising to a degree, but numerous execution risks remain, given the complexity of integrating multiple quantum technologies. IonQ's revenue trajectory highlights exceptional growth, rising from $1.6 million in 2021 to $43.1 million in 2024. Management forecasts revenue between $75 million and $95 million for 2025, implying a compound annual growth rate of approximately 200% since the company went public. This rapid acceleration reflects meaningful commercial traction and reinforces the growing demand for quantum computing solutions. IonQ holds a differentiated position as the only quantum hardware provider integrated across all major cloud platforms—Amazon Web Services, Microsoft Azure, and Google Cloud. The company is targeting high-impact markets, particularly in cryptography, cybersecurity, and encryption, which offer substantial long-term potential. However, the path to profitability remains uncertain. In 2024, IonQ reported a net loss of $331.7 million, while operating expenses rose 38% year-over-year to $83.2 million in Q1 2025. Moreover, free cash flow remained significantly negative at -$123.7 million in 2024, underscoring the capital-intensive nature of quantum technology development. These financial challenges raise important questions about the timeline for achieving sustainable profitability. IonQ's competitive advantage stems from the distinctive strengths of its trapped-ion quantum architecture, which offers several benefits over superconducting approaches used by peers such as IBM (IBM) and Alphabet (GOOGL). Key differentiators include all-to-all qubit connectivity, longer coherence times, and significantly lower error correction overhead, estimated at a 13:1 ratio compared to approximately 100:1 for some competing platforms. While often complex for investors to understand, these details provide IonQ with a meaningful competitive advantage. The roadmap outlines a clear path to scaling, with plans to reach 100-qubit systems in the coming years and eventually millions of qubits through the integration of multi-core technology and photonic interconnects. An extensive patent portfolio of over 950 patents, spanning both quantum computing and networking, also provides additional competitive protection. Recent commercial deployments, including a $22 million Forte Enterprise quantum system to EPB in Chattanooga, demonstrate that practical applications are taking shape. While these developments are encouraging, the quantum computing market remains in its early stages, with uncertain commercial timelines and a heavy lean towards revenues generated in the U.S. for now, as reported by Main Street Data. While IonQ has established itself as a leader in trapped-ion quantum computing, several key risks warrant investor caution. The company remains significantly unprofitable, with ongoing cash burn primarily driven by substantial investments in research and development. Furthermore, the recent decision to discontinue disclosing forward bookings may raise concerns within the investment community regarding revenue visibility, complicating efforts to assess near-term growth momentum. Although the company's balance sheet is currently stable—with low leverage and a strong cash position—the persistently negative cash flow, as previously noted, presents a risk. Without meaningful progress toward improved financial efficiency, there is concern that the current capital position may not be sustainable over the long term. IonQ's reliance on government contracts and research partnerships presents another massive vulnerability, especially if public-sector funding priorities shift. And while its trapped-ion architecture has technical advantages for now, the broader field of quantum computing remains fairly experimental, with competitors pursuing alternatives that could scale more quickly or efficiently. Investors are ultimately betting not just on the company's execution, but on its very specific technological thesis proving correct. The quantum computing market presents enormous potential, with McKinsey research projecting that the market could reach $87 billion by 2035. However, this potential comes with significant valuation challenges that warrant caution. IonQ currently trades at approximately 135x projected 2025 sales, with an EV/Sales ratio of 232, dramatically above the sector median of 6.46, according to TipRanks data. While IonQ is operationally solid, these extreme valuation multiples create substantial downside risk if the company fails to meet lofty expectations. For now, a ~$10 billion market capitalization appears to reflect overly optimistic assumptions. Turning to Wall Street, IonQ carries a Strong Buy consensus rating based on four Buys, one Hold, and zero recent Sell ratings. At $43, IonQ's average stock price target implies about 13% upside potential. Moreover, according to TipRanks data, the mixed trend in insider transactions reflects the complex variables at play. A spike in recent activity shows both heavy buying and selling. While these transactions are often unrelated to future performance, large transaction volumes of this nature are unlikely to send encouraging signals to the market about leadership confidence. In my view, IonQ presents a nuanced investment case within the emerging quantum computing sector. The company benefits from a strong technical foundation, an expanding patent portfolio, a healthy balance sheet, and a growing network of commercial and research partnerships—all of which support its long-term potential. However, the current valuation appears to be ahead of near-term fundamentals. Continued operating losses and execution risks—especially in such an early-stage and capital-intensive industry—highlight the disconnect between market performance and business maturity. Currently, it appears that the stock's exceptional run may have outpaced the company's underlying progress. My Hold rating reflects a balanced view of the risk-reward profile. While IonQ's leadership in technology and strategic positioning is compelling, the premium valuation constrains upside potential and introduces meaningful downside risk. Investors may be best served by exercising patience, allowing the company time to demonstrate continued execution and for the market to recalibrate its expectations accordingly. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Wall Street Journal
4 hours ago
- Business
- Wall Street Journal
The Power of Positive Thinking about Deregulation
Economic growth was negative in the first quarter, government-imposed costs on trade have risen this year, federal debt continues to soar, stocks are richly priced relative to their earnings, and Congress is laboring just to prevent massive tax hikes scheduled for the end of the year. Yet equity investors keep expressing confidence in U.S. business. The Journal's Karen Langley and Krystal Hur report:
