Passport to Wall Street

Market Update: Stocks Settle Flat, Major Averages Set to Post Big Monthly Gains

Rachel Hemple — Wed, 29 Nov 2023 19:38:39 -0500

Stocks settled near a flatline on Wednesday, but all three major averages are still on track to post their biggest monthly gains of the year. The Dow Jones Industrial Average added nearly 15 points, while the S&P 500 Index and Nasdaq Composite lost nearly 0.1% and 0.2%, respectively.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY ): -0.09% or -4.31 points to 4,550.58

Dow Jones Industrial Average (DIA ): +0.04% or +13.44 points to 35,430.42

Nasdaq Composite Index (QQQ ): -0.16% or -23.27 points to 14,258.49

As the month nears its end, the S&P 500 and Dow are up 8.5% and 7.2%, respectively, while the Nasdaq has advanced nearly 11% so far in November.

Making headlines on Wednesday, the Federal Reserve's Beige Book report showed that U.S. economic activity has broadly slowed over the past six week, while labor demand waned and price increases eased. Notably, the report said consumers demonstrated more "price sensitivity."

In economic news, third-quarter U.S. gross domestic product (GDP) grew by 5.2% at an annualized rate, according to the Commerce Department's report Wednesday, coming above the initial estimates of 4.9%. This is the second of three readings for the key economic indicator.

In single-stock news, General Motors (GM ) shares rose on Wednesday after the carmaker announced a $10 billion buyback and raised its quarterly dividend by 33% to $0.12 per share next year. The company also reinstated its 2023 guidance to include an estimated $1.1 billion in earnings before interest and tax.

GM CEO Mary Barra said in a statement that the company is preparing a budget for next year that will "fully offset the incremental costs of our new labor agreements," with the United Auto Workers union. That plan includes "reducing the capital intensity of the business, developing products even more efficiently, and further reducing," the company's fixed and variable costs.

On the earnings front, NetApp (NTAP ) shares popped on Wednesday after the data infrastructure company posted better-than-expected fiscal second-quarter earnings. The company also issued a higher-than-expected forward earnings forecast.

Looking ahead, market participants will react to October's PCE index reading de out Thursday morning, as well as earnings reports from Salesforce (CRM ), Snowflake (NYSE: SNOW, and Okta (OKTA ).

A Tech Takeout Menu? DoorDash Now Delivering Electronics On-Demand From Best Buy

Benzinga News — Wed, 29 Nov 2023 19:16:48 -0500

DoorDash, Inc. (DASH ) announced a new partnership with Best Buy Co., Inc. (BBY ) to offer on-demand delivery of consumer electronics from all Best Buy locations nationwide.

Best Buy is the first national consumer electronics retailer available on the DoorDash marketplace, building on DoorDash's expansion into new categories beyond restaurants to meet consumers' need for convenience.

Consumers can now access Best Buy products, ranging from TVs and computers to gaming controllers, headphones, and chargers, all through the DoorDash marketplace app.

"We're thrilled to welcome Best Buy to DoorDash as our first national consumer electronics retailer on the marketplace," said Fuad Hannon, Vice President of New Verticals at DoorDash.

Best Buy products will also be available on DashPass, DoorDash's membership program that offers a $0 delivery fee on eligible orders from thousands of grocery, convenience, and retail stores nationwide. DashPass members can enjoy these benefits on all eligible orders that

"With the holiday season around the corner, this is a valuable occasion for consumers to shop for tech gifts for everyone on their list and experience the joy of shopping at Best Buy directly on the DoorDash app," Hannon added.

Price Action: DASH shares are trading lower by 0.41% to $94.11 on the last check Wednesday.

Salesforce Q3 Earnings Preview: Focus On Operating Costs, Profit Margins, Slack's Leadership And Einstein GPT Integration

Benzinga News — Wed, 29 Nov 2023 19:16:34 -0500

Salesforce Inc (CRM ), will be reporting its third-quarter earnings on Nov. 29. Analysts expect Salesforce to report $2.06 in EPS and $8.72 billion in revenue, as the company reports after market hours.

Here's what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.

Business & Fundamentals

Salesforce seems poised for another strong quarter based on historical performance and strategic initiatives. Slack, Salesforce's strategic response to Microsoft Corp's (MSFT ) Teams, faces leadership changes. The company's Einstein GPT integration adds an intriguing dimension to the company's future.

Key factors to monitor includes the decrease in operating expenses. In its efforts to manage costs, Salesforce has been reducing its workforce, which resulted in a recorded drop in operating expenses in Q2. The company's goal to be among "the most profitable enterprise software company" globally also commands a closer look into profitability metrics.

The company already sports an above average gross profit margin of 74.52% versus the sector median of 48.67%. Net income margin stands at 4.77% versus the sector at 1.77%.

Ratings & Consensus Estimates

Currently, the consensus rating for Salesforce stock is a Buy, with a consensus price target set at $248.55 per share.

Q3 Analysts' Focus: Oppenheimer analyst Brian Schwartz sees Salesforce as "one of the healthiest long-term profitable growth stories." Schwartz has a 12-month price target of $250 on the stock. He believes Salesforce is still early in the monetization evolution for its generative AI technologies.

Needham analyst Scott Berg also has a price target of $250 on the stock. Needham expects upside to both cRPO and operating margins expectations. They believe S&M leverage is underappreciated.

Morgan Stanley Research analyst Keith Weiss anticipates stable checks and successful implementation of price increases for Salesforce in this quarter. Weiss has set a price target of $278 for the stock.

Price Action: Salesforce shares were up 2.1% to $229.83 at the time of publication Wednesday.

Microsoft Is Challenged By Amazon's Trainium2 Chip While Their Stock Is Up 57% Year-To-Date

Benzinga News — Wed, 29 Nov 2023 19:16:21 -0500

Amazon.com Inc's (AMZN ) new artificial intelligence chip, Trainium2, is set to give Microsoft Corp (MSFT ) some serious competition.

This latest move by Amazon demonstrates their determination to challenge Microsoft in the fast-growing artificial intelligence market.

Designed specifically for training AI systems, Trainium2 is Amazon's latest AI chip. Its performance outpaces its predecessor fourfold and has double the energy efficiency.

The release of Amazon's chip comes just weeks after Microsoft introduced its own AI chip, Maia.

The timing of these releases highlights the fierce competition between these industry leaders. They are both pushing the boundaries of AI technology, aiming to provide cutting-edge solutions in cloud computing services.

Despite Amazon's growing competition, Microsoft's stock price remains strong and continues to reach new heights.

Throughout the year, the stock has consistently increased, currently showing a 57% growth overall and a 13% rise in November alone.

This upward trend is especially notable considering the stock's struggle to surpass the $350 mark in November 2021.

However, in July 2023, it briefly achieved this milestone, and the current bullish trend in November indicates a renewed strength in its market performance.

Microsoft's stock has experienced a remarkable surge of over 900% in the last ten years.

This sustained upward trend, combined with recent positive developments, indicates the potential for further growth.

Microsoft's stock is steadily rising and is now approaching the significant milestone of $400. This level is often seen as a psychological barrier in the stock market.

Despite facing competition from Amazon, Microsoft's impressive performance and increasing momentum suggest that overcoming this hurdle may be relatively effortless as long as the momentum persists.

After the closing bell on Tuesday, November 28, the stock closed at $382.70 trading up by 1.10%.

CrowdStrike Impresses With Solid Q3 Earnings, Analysts Remain Bullish Despite Tough Market

Benzinga News — Wed, 29 Nov 2023 19:16:07 -0500

Shares of CrowdStrike Holdings Inc (CRWD ) were climbing higher on Wednesday, after the company reported strong third quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Oppenheimer On CrowdStrike

Analyst Ittai Kidron maintained an Outperform rating, while raising the price target to $240.

CrowdStrike reported solid quarterly results, driven by NNARR (net new annual recurring revenue) growth and strong profitability gains, Kidron said in a note. "Demand was broad-based, with acceleration in growth for ITDR and Cloud Security and a record quarter for LogScale," he added.

"While bears will point to the muted 4Q NNARR and revenue outlook, we believe management is prudently incorporating a high degree of conservatism with regard to a 4Q budget flush," the analyst wrote. He further expressed optimism around CrowdStrike being able to sustain its momentum in 2024.

Needham On CrowdStrike

Analyst Alex Henderson reiterated a Buy rating, while lifting the price target from $245 to $250.

"Crowd delivered another robust quarter, beating estimates on every key metric," Henderson wrote in a note. The earnings call and commentary were upbeat, although macro conditions continue to be challenging, he added.

"Crowd delivered solid growth in new customers and revenue per customer, greater RPO, and larger general deal sizes," the analyst stated. He further mentioned that the company indicated "no erosion in October or November, and deal metrics are stable to slightly improved."

KeyBanc Capital Markets On CrowdStrike

Analyst Eric Heath reaffirmed an Overweight rating, while raising the price target from $240 to $245.

CrowdStrike reiterated its fiscal 2024 NNARR guidance despite the third-quarter upside due to the challenging macro backdrop and "mgmt. not expecting a typical 4Q budget flush," Heath said. "Mgmt. did, however, comment that the 4Q setup is strong with record pipeline," he added.

"We continue to see CrowdStrike as a leader in endpoint security and a long-term consolidator with meaningful opportunity to expand into SIEM, CNAPP, identity, data security, and IT," the analyst further wrote.

Goldman Sachs On CrowdStrike

Analyst Gabriela Borges maintained a Buy rating, while lifting the price target from $195 to $222.

The company indicated continued macro challenges and that "its incremental focus next year will be go to market scaling," Borges said in a note.

"CrowdStrike noted a 150-person strong practice at E&Y driving business in next-gen SIEM, and LogScale is now north of $100mn in ARR," the analyst wrote. "We view the Security Operations Center (SOC) transformation opportunity as a key driver of medium-term growth," she added.

Mizuho Securities On CrowdStrike

Analyst Gregg Moskowitz reiterated a Buy rating, while raising the price target from $205 to $225.

CrowdStrike's third-quarter results were "generally good," with total ARR growth slightly surpassing estimates and an in-line revenue guidance for the fourth quarter, Moskowitz said.

"Demand trends appear solid for CRWD, as mgmt cited strong net new logo and expansion activity in F3Q, and a record quarter for US Federal," the analyst wrote. CrowdStrike's cloud platform "remains very differentiated," its free cash flow margins remain around 30%, and "we see CRWD as a GenAI beneficiary," he added.

CRWD Price Action: Shares of CrowdStrike were up 7.3% to $228.12 at the time of publication Wednesday.

Amazon's Cloud and AI Innovations Bolstered by Nvidia Partnership, Analyst Predicts Growth

Benzinga News — Wed, 29 Nov 2023 19:15:51 -0500

JMP Securities analyst Nicholas Jones reiterated a Market Outperform rating on Amazon.Com, Inc (AMZN ) with a price target of $175.

At AWS, re: Invent 2023, Adam Selipsky, CEO of Amazon Web Services, showcased several partnerships and new solutions Amazon creates for AWS users.

AMZN's focus on generative AI, increasing performance, reducing customer costs, and data privacy and security were key themes during the event.

While the generative AI-wars between significant cloud providers are likely only heating up, Jones noted AMZN's constant focus on reducing costs and improving efficiency and speed as key competitive advantages likely to manifest in share gains over time.

Jones sees AMZN as a dominant player within the cloud and a formidable competitor within generative AI. From here, he expects investors to remain focused on AWS' growth in 4Q23 and its implied trajectory in 2024.

AWS continues to innovate and develop leading technology down to the silicone level. Jones noted that faster chips will increase the efficiency and help reduce costs of AWS customers, ultimately building on its dominant position in the cloud ecosystem.

Jones noted that Nvidia Corp (NVDA ) software on AWS will boost Generative AI development for custom models, semantic retrieval, and drug discovery for healthcare customers. The partnership should enable the adoption of Generative AI solutions across many industries in a secure and scalable fashion.

Agents for Bedrock's general availability will allow companies to create higher levels of automation while maintaining the privacy and security of their data, which we view as a critical hurdle for broader adoption.

Amazon Q creates a tailored solution for businesses to leverage AI in various ways, including improving efficiency and productivity by helping employees get fast, relevant answers, generate content, and take action. Additionally, Amazon Q with Amazon Connect should help improve companies' customer service experiences. Ultimately, internal efficiencies have been a significant use case for generative AI, which Amazon Q should help drive.

Price Action: AMZN shares are trading lower by 0.36% at $148.50 on the last check Wednesday.

Charlie Munger's 'Buy And Hold' Thesis May Seem Tame, But It Worked For Berkshire Hathaway

Benzinga News — Wed, 29 Nov 2023 19:15:38 -0500

"The whole secret of investment is to find places where it is safe and wise not to diversify," were the words of Charlie Munger, who died on Tuesday at the age of 99. This principle stood as one of the central tenets of his approach to investing.

Working on the belief that good investment ideas are few and far between - "Life is not just bathing you with unlimited opportunities" - Munger held very few stocks in his personal investment portfolio.

But those he did hold, he was rigidly committed to. At his death, Munger owned stock positions in just three companies:

Berkshire Hathaway (BRK.A ): Munger was vice-chairman and helped chairman Warren Buffett turn the company from a textiles manufacturer into a large insurance and investment conglomerate.

Buffett began buying shares in Berkshire Hathaway in 1962, believing it to be undervalued, and by 1967 he had majority control and branched into the insurance business.

"If you're Warren, you want to be the house, not the punter," Munger said.

At his death, Munger owned a little over 4,000 shares in Berkshire Hathaway, worth more than $2 billion.

Costco (COST ): Munger was a director since 1997, and Costco was one of his favorite investments.

When Berkshire Hathaway exited its stake in Costco in 2020, Munger held on to his personal stake of around 187,000 shares, worth around $95 million.

Munger said of the company: "I wish everything else in America was working as well as Costco does."

Daily Journal Corporation (DJCO ): He was chairman of the publishing and technology company since 1977.

Daily Journal was also another investment vehicle for Munger, and it owns shares in Alibaba (BABA ) - worth $37.5bn, as well as Bank of America (BAC ) - worth nearly $89 million, Wells Fargo (WFC ) - $62 million, and US Bancorp (USB ) - $7.7 billion.

Value Investing

At the heart of all of Munger's investment ideas, whether for his own portfolio or for that of Berkshire Hathaway, was value investing. Buying stocks that show long-term growth and pay dividends. He claimed the big money was not in buying and selling but in buying and waiting.

And value investing is not just about buying cheap. Munger said: "Forget what you know about buying fair businesses at wonderful prices. Instead, buy wonderful businesses at fair prices."

Thus, buying quality and being patient were the principal facets of Berkshire Hathaway's success.

And upon finding stocks that matched the above investment criteria, Munger said investors must seize the moment. Quoting his grandfather - perhaps Munger's best-known piece of investment advice was: "When you get a lollapalooza, for God's sake, don't hang by like a timid little rabbit."

GM CEO Mary Barra Says 2023 Challenges Were Just 'Bumps In The Road,' Automaker Confident In All Aspects Of Future Business

Benzinga News — Wed, 29 Nov 2023 19:15:26 -0500

General Motors Co (GM ) is in the spotlight Wednesday after the company reinstated guidance and announced an accelerated buyback. CEO Mary Barra says the challenges GM faced in 2023 are now behind the company.

What Happened: GM reinstated guidance Wednesday morning after previously withdrawing guidance due to labor disruptions caused by the UAW strikes.

GM now expects full-year 2023 adjusted earnings to be between $7.20 and $7.70 per share, which includes an estimated $1.1 billion EBIT-adjusted impact from the strikes. Adjusted automotive free cash flow is now expected to be between $10.5 billion and $11.5 billion, up from a range of $7 billion to $9 billion.

GM also announced intentions to increase its dividend by 33% and laid out plans for a $10 billion accelerated share repurchase program in which the company will immediately receive and retire $6.8 billion worth of its common stock, representing about 17% of shares outstanding.

Why It Matters: Wednesday on CNBC's "Squawk On The Street," Barra acknowledged the company's execution issues with Ultium and Cruise and challenges with labor negotiations this year, but stressed that those issues are in the rearview mirror.

"Those are behind us now and that's what gives us confidence in the business, confidence to do the ASR at a $10 billion level, and we're going to move forward and execute and move past these, I'll say, bumps in the road," Barra said.

Although the company faced some headwinds in its EV and autonomous businesses this year, Barra noted that many parts of the business remained in great shape. GM now sees a clear path forward for all of its businesses and is aligning its capital allocation strategy appropriately, she said.

"We have confidence in the business going forward both in our internal combustion and our EV and software ... and our path that we will work on from an autonomous perspective. That's what gave us the confidence and the board the confidence to make this decision," Barra said.

GM Price Action: GM shares were up 8.8% at $31.44 at the time of publication. Despite Wednesday's gains, the stock is still down about 5% year-to-date, according to Benzinga Pro.

Robot Chefs And Meat-Free Menu For New Dining Chain Kernel Launched By Former Chipotle CEO

Benzinga News — Wed, 29 Nov 2023 19:15:10 -0500

Will fears of robot overlords taking over the world start with acai bowls? A startup called Kernel is the latest venture that will leverage robots to improve efficiency and cut costs. Steve Ells, the founder and former CEO of Chipotle Mexican Grill Inc. (CMG ), announced his return to the industry with a dining experience featuring a meat-free menu and robotic automation.

Scheduled to open its first location in Manhattan, New York, Ells and the Kernel team have ambitious expansion plans, with at least a dozen more restaurants slated to pop up across New York over the next two years, according to a report in The Wall Street Journal.

In March 2020, Ells stepped down from the Chipotle board as CEO Brian Niccol assumed the role of chairman. Ells started Chipotle in 1993.

Kernel's approach includes using robotics and human staff members to optimize operational efficiency and reduce waste. Each restaurant will operate with a skeleton crew of three people, working in harmony with robots. They will offer a menu featuring meat-free burgers, faux chicken sandwiches, salads, acai bowls and sides such as cucumber with wild rice. A typical Kernel meal might include a veggie burger with salsa verde and pickled onions on a toasted brioche bun accompanied by crispy potatoes on the side.

A key element of Kernel's innovation is its investment in robotics to handle various aspects of food preparation that are typically managed by a human. A customer's order triggers a series of automated actions. For example, a robotic arm places food-laden pans into the oven, a programmed toaster flips a bun for warming, and conveyor belts move dishes through the kitchen.

Human workers add the finishing touches to the dishes before packaging the food and placing it in cubbies for customer pickup. Ells emphasized the strategic reduction of human interaction while maintaining just enough for a personalized touch, telling The Wall Street Journal, "We've taken a lot of human interaction out of the process and left just enough."

Ells launched Kernel with $10 million of his own capital and secured an additional $36 million from investors. He appointed Stephen Goldstein, a food delivery industry executive, as president of the company, signaling a strategic move to blend innovation with industry expertise. Goldstein previously served as chief operating officer for food delivery startup Wonder and Deliveroo, a London-based grocery and restaurant delivery firm.

Kernel's introduction of robots aligns with a broader trend in the fast-food industry, where companies seek ways to cut costs amid rising food prices and wages. The challenge of hiring staff and improving efficiency leads firms like White Castle and Chipotle to explore automation technologies.

In response to increasing minimum wages in states like California, Ells affirmed that Kernel would reinvest efficiency savings into higher salaries and improved benefits for its staff, differentiating itself from other fast-food chains.

Beyond economic considerations, Ells sees Kernel as a step toward reducing greenhouse gas emissions, drawing inspiration from Bill Gates's book "How to Avoid a Climate Disaster." The menu emphasizes legumes and vegetables over newer plant-based meat alternatives, contributing to a more sustainable approach to fast food.

The chain's approach reflects confidence in demand for the plant-based meat market, with analyst firm Data Bridge Market Research pegging the market at $5.37 billion in 2022. The market is expected to grow to $16.55 billion by 2030 at a compound annual growth rate (CAGR) of 15.1% during the forecast period.

Uber Expands in London by Integrating Iconic Black Cabs

Benzinga News — Wed, 29 Nov 2023 19:14:56 -0500

Uber Technologies, Inc (UBER ) shared plans to open its platform to London's iconic black cabs in 2024, aiming to bridge a decade-long rift with the traditional taxi service.

Known for their rigorous "The Knowledge" test, black cab drivers have historically conflicted with Uber, claiming it undermines their business.

The new Uber service will allow these drivers to use the app for bookings with no commission charged for the first six months, Reuters reports.

However, the Licensed Taxi Drivers Association (LTDA), representing most black cab drivers, has rejected the proposal. LTDA's general secretary, Steve McNamara, criticized Uber's safety record and stated their members have no interest in associating with the company.

Black cabs, also called Hackney carriages, are the only taxis in London that can pick up passengers from the street or taxi ranks, and they are also available through other apps.

Despite the pushback, Uber remains hopeful, citing success in integrating taxis in cities like Paris, New York, and Rome.

The company argues that drivers and passengers benefit from taxis working with Uber. The first London cab driver to sign up, Hameed Hameedi, believes joining Uber could be advantageous, potentially leading to increased earnings for drivers.

In November, Uber reported third-quarter FY23 revenue growth of 11% year-on-year to $9.29 billion, missing the consensus of $9.52 billion. Uber's GAAP EPS of $0.10 missed the consensus of $0.12.

Trips grew 25% year-over-year to 2.4 billion, or 27 million per day.

Price Action: UBER shares traded higher by 0.85% at $56.69 on the last check Wednesday.

Cyber Five Sales Mixed: Amazon Leads Pack With Top Categories Beauty, Kitchen, Toys

Benzinga News — Wed, 29 Nov 2023 19:14:41 -0500

Cyber Five Online sales in the U.S. showed mixed results, with Adobe Analytics reporting a 7.8% year-over-year increase to $38 billion, exceeding Adobe's $37.2 billion forecast.

Cyber Monday alone generated $12.4 billion, surpassing expectations. However, Salesforce data indicated a lower growth rate, with Cyber Five sales up by only 5% and Cyber Monday sales increasing by 3% overall.

Discount levels varied, with electronics peaking at 31% and apparel at 23%.

Some retailers like Amazon.com Inc (AMZN ) and Walmart Inc (WMT ) offered discounts up to 60% on specific items.

The average discount rate remained similar to last year, slightly increasing from 27% to 28%.

Over 200 million consumers shopped during the week - a 2% increase from the previous year. Up to 134.2 million shoppers were online, marking a 3% increase.

Mastercard's data suggests a shift towards online shopping, indicating an improving market share from offline retail.

Amazon reported a record sale of 1 billion items between Nov. 17 and Nov. 27, with top-selling categories including beauty, home kitchen, and toys. The company's new Buy with Prime feature, allowing purchases off-site, saw a 300% increase in units sold during promotional activities compared to October's daily average. Amazon plans to continue its sales event until Dec. 24, indicating strong consumer response and hinting at potential margin risks, which logistics efficiencies and cost savings could mitigate.

The data suggests a positive consumer response to online sales events, with a shift back to online purchasing. Wayfair Inc (W ), too, is expected to benefit from this trend, given its inventory availability, competitive pricing, and improved delivery speeds through CastleGate.

Bank of America analyst Justin Post reiterated a Buy rating on Amazon with a price target of $168 and Wayfair with a price target of $72.

Price Actions: AMZN shares traded lower by 0.08% at $146.92 on the last check Wednesday. W shares traded higher by 2.02% at $58.16.

November Rally Sets Treasury Bonds On Track For Best Month In 40 Years

Benzinga News — Wed, 29 Nov 2023 19:14:27 -0500

U.S. government bonds are on track for their best month in nearly 40 years following a summer and early autumn sell off that saw foreign buyers all but desert the Treasury markets.

The dramatic turnaround in November came as Treasury yields dropped from 16-year highs - with the benchmark 10-year yield hitting 5% in late October - thanks to growing optimism that the Federal Reserve's next policy move will be a rate cut, possibly in the first quarter of 2024.

The Bloomberg U.S. Aggregate Bond index (Agg), which tracks total returns on US bonds, is up 4.3% in November, setting it up for its best monthly percentage gain since 1985.

Similarly, the iShares Core U.S. Aggregate Bond ETF (AGG ), an exchange traded fund that tracks the Bloomberg benchmark, is up 4.1% so far this month - its best monthly performance since December 2008.

Spring/Autumn Treasury Sell-Off

Earlier this month data from the Treasury department showed that foreign buyers, including the central banks of Japan and China, were net sellers of U.S. bonds in September to the tune of $1.7 billion.

The Bloomberg Agg index suggests investors were net sellers between May and October. Indeed, Oct. 23 saw the yield on the 10-year Treasury peak at a 16-year high of 5.021% - when yields move higher Treasury prices move lower as investors sell.

So, what's bought buyers back into the market? Even on the day the 10-year yield hit its peak, it ended lower on the day at 4.85%. Some of the bond buying came from hedge fund short sellers, including Bill Ackman's Pershing Square Capital Management, who were covering their positions.

Then the Federal Reserve, at its Nov. 1 policy meeting, held interest rates steady for the second consecutive meeting, spurring hopes among Treasury and equity investors that its rate-hike cycle was over.

Inflation Rate Drops

Hopes of a more dovish policy stance from future Fed meetings were raised by U.S. inflation data that showed headline consumer prices had dropped to 3.2% in October - creeping down towards the Fed's 2% target rate.

"It is clear from the sharpness of the move across asset markets in the past week or two, that the CPI inflation release was a pivotal moment in the market's interpretation of the outlook for Fed interest rate policy," said Jane Foley, senior FX strategist at Rabobank.

The benchmark 10-year yield stood at 4.29% on Wednesday morning, still higher than the 3.7% at which it started the year, but at a level that is now attracting buyers again.

Okta's Crisis Deepens With Hackers Accessing Full Client List And Falling Company Shares

Benzinga News — Wed, 29 Nov 2023 19:14:13 -0500

Okta Inc. (OKTA ) has disclosed that a data breach has affected all users of its customer support system. This revelation has widened the scope of the breach from the initial estimation that only 1% of customers were impacted.

What Happened: Hackers infiltrated Okta's network two months ago and stole a wide range of user information. Initially, the company estimated that approximately 184 clients were affected.

However, in its latest communication with the customers, the company revealed that hackers managed to download a report containing the names and email addresses of all clients using its customer support system, reported Bloomberg.

The company has alerted customers about the increased risk of attacks and recommends using robust multi-factor authentication.

"While we have not seen direct evidence that the threat actor is using this list to launch phishing attacks against support system users," Okta said, "phishing attacks are a constant threat."

Moreover, during a recent audit, Okta discovered that some of its employees' information was also part of the stolen data.

The company's shares also took a hit last month following the disclosure of the breach. Okta is expected to provide more details about the breach in its upcoming earnings report, which is scheduled for Wednesday.

Why It Matters: This breach is not the first instance of Okta being targeted by hackers. Last year, Okta was targeted at least three times. Once by a hacking group that gained unauthorized access to its system.

Earlier this month, it was reported that Boeing Co. (BA ) also acknowledged a "cyber incident" that affected its global service division. Although, the company at the time said the incident did not threaten flight safety.

Binge-Watch And Chill: Instacart Adds Peacock Premium To Its Subscription Perks

Benzinga News — Wed, 29 Nov 2023 14:39:17 -0500

Maplebear Inc. (CART ), popularly known as Instacart, shares are trading higher after the company announced that Peacock Premium is now available to all Instacart+ members in the U.S. at no additional cost.

Peacock is NBCUniversal's premium streaming service that provides audiences with a singular content destination. NBCUniversal is a subsidiary of Comcast Corporation (CMCSA ).

Instacart's same-day delivery subscription uniquely includes Peacock, offering over 80,000 hours of top-tier entertainment, sports, movie, and news content, along with more than 8,000 hours of live sports annually.

Instacart and Peacock are premiering a custom spot, featuring iconic holiday scenes from Peacock properties across film and television, including The Office, Parks & Recreation, and Brooklyn Nine-Nine.

"Instacart+ helps deliver all of the snacks and beverages a Peacock viewer needs for a must-see TV night," said Heather Rivera, Vice President of Strategy, Partnerships, and Corporate Development of Instacart.

Upcoming titles on Peacock include exclusive NFL games on December 23 and January 13, Seth McFarlane's Ted and Apples Never Fall starring Annette Bening and Sam Neill.

To date, Instacart has been a regular advertiser across Peacock and the NBCU portfolio - including Bravo, CNBC, E! and Today - given the media company's extensive audience across passion points that match many Instacart families.

"With TV viewing and grocery delivery at their peak during the holiday season, it's the perfect time to launch this partnership and lean into big moments across NBCUniversal," Rivera added.

Price Action: CART shares are trading higher by 2.36% to $26.06 on the last check Wednesday.

US GDP Growth In Q3 Tops Expectations, Highest Since Q4 2021

Benzinga News — Wed, 29 Nov 2023 14:38:54 -0500

The latest report from the Bureau of Economic Analysis reveals that the U.S. economy displayed robust growth in the third quarter of 2023, surpassing initial estimates and posting the strongest expansion since the fourth quarter of 2021.

The second estimate indicates that the annualized GDP growth rate for Q3 2023 stood at 5.2%, outpacing the preliminary figure of 5%.

Key Revisions To Q3 GDP

One of the notable revisions in this report was in nonresidential investment, which was originally estimated to have fallen by 0.1%. However, it was updated to show a surprising 1.3% increase.

This upward revision can be attributed to a smaller decline in equipment (-3.5% compared to the initial estimate of -3.8%) and a remarkable surge of 6.9% in structures (versus the initial estimate of 1.6%), led by commercial and health care (mainly warehouses).

Furthermore, the residential investment sector exhibited stronger signs of growth. It recorded a growth rate of 6.2%, significantly higher than the initially anticipated 3.9%, marking its first positive growth in nearly two years.

Private inventories also made a significant contribution to the overall growth, adding 1.4 percentage points to the GDP, surpassing the previous estimate of 1.32 percentage points. Government spending experienced faster growth as well, expanding by 5.5% compared to the earlier estimate of 4.6%.

Consumer spending, although slightly lower than the preliminary estimate (3.6% versus 4%), still posted its most substantial gain since Q4 2021. The moderation in consumer spending was primarily attributed to a slowdown in services spending. Exports surged by 6%, albeit slightly below the initial estimate of 6.2%, while imports increased at a slower rate, growing by 5.2% compared to the initial estimate of 5.7%.

The acceleration in GDP for Q3 2023, when compared to the previous quarter, can be attributed to increased consumer spending, private inventory investment, and a notable uptick in exports.

Market Reactions: Dollar Sees Some Respite, Treasury Yields Stay Flat

The U.S. dollar index (DXY), tracked by Invesco DB USD Index Bullish Fund (UUP ), reacted positively to the upward revision in GDP figures.

However, the dollar index remains below the 103 level, which was last seen in mid-August.

Treasury yields were relatively stable, with the yield on a 10-year U.S. Treasury bond, tracked by the US 10 Year Treasury Note ETF (UTEN ), trading at 4.30% on Wednesday.

According to CME Group's FedWatch Tool, market participants currently assign a 77% chance of a Fed rate cut occurring as early as May 2024, and they are currently factoring in five rate cuts by December 2024 at a 52% probability.

Joe Rogan Tops Spotify's 2023 Podcasts List Once Again: Deal Likely To Expire In 2024, A Major Decision Awaits

Benzinga News — Wed, 29 Nov 2023 14:38:40 -0500

Leading podcast host Joe Rogan had some big-name guests on "The Joe Rogan Experience" throughout 2023.

Among including musicians, politicians, controversial figures, and a recent fourth appearance from the world's richest man Elon Musk.

What Happened: Rogan tops the list of most popular podcasts on Spotify, a unit of Spotify Technology (SPOT ), for the fourth year in a row.

"The Joe Rogan Experience" beat out second place "Call Her Daddy," which was second for a second straight year. Both these podcasts are exclusive to Spotify. Eight of the top 25 global podcasts on Spotify's year-end list were Spotify-owned and licensed podcasts.

"This past year, there was no single trend or topic that commanded the cultural conversation for too long - something new was always emerging. But throughout these massive moments, listeners consistently took the time to slow down, learn about these trends, and connect with other fans through the immersive world of podcasts," Spotify said.

Spotify is the most-used audio podcast platform according to data from Edison Research.

Why It's Important: Spotify Head of Podcast Editorial Lizzy Hale highlighted reasons why people listen to podcasts on the platform.

"Podcasts are the perfect format for audiences and fans to engage in cultural moments due to a key few factors," Hale said.

Rogan hosted many figures throughout 2023 including Dr. Jordan Peterson; viral music sensation Oliver Anthony; 2024 presidential candidate Robert F. Kennedy Jr.; musician Post Malone; musician Jelly Roll; controversial podcast host and actor Russell Brand; and former professional wrestler Hulk Hogan.

The podcast host also had Elon Musk on for a fourth time in October, an episode that featured Musk's comments on a number of topics and a demonstration of shooting an arrow at the highly anticipated Cybertruck pickup truck from Tesla Inc (TSLA ). Rogan discussed the Cybertruck during multiple podcasts in 2023, often asking guests if they had heard of it and the podcast host praising his current Tesla vehicles.

Controversial topics and guests often led to strong interest in the podcast, as demonstrated by the number one position for a fourth straight year.

"The Joe Rogan Experience" is exclusive to Spotify as a part of a deal signed in 2020, according to Variety. The deal signed in 2020 was for three and a half years, which could mean it expires in mid-2024.

Spotify is paying more than $200 million over the current contract to Rogan. The company will have a decision to make if it wants to renew the deal. Whether it shells out similar or more money remains to be seen.

The audio company has hinted at reigning in costs, which could make doing a new deal with Rogan difficult. Rogan also brings controversy along with his popularity with several artists boycotting Spotify after a series of anti-vax episodes of "The Joe Rogan Experience" were not removed.

SPOT Price Action: Spotify shares are up 1% to $184.32 on Wednesday versus a 52-week trading range of $71.72 to $184.92. Spotify shares hit new 52-week highs this week and are up over 120% year-to-date in 2023.

Splunk Reports Strong Quarter On Cybersecurity Demand: These 4 Analysts Deep Dive Into Q3 Print

Benzinga News — Wed, 29 Nov 2023 14:38:10 -0500

Splunk Inc (SPLK ) shares were rising in early trading on Wednesday after the company reported upbeat third-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Truist Securities On Splunk

Analyst Joel Fishbein downgraded the rating from Buy to Hold, while keeping the price target unchanged at $157.

Splunk "delivered a solid quarter of execution with revenue and non-GAAP operating profit coming in ahead of our expectations and guidance," Fishbein said in the downgrade note.

He added that Cisco Systems Inc.'s (CSCO ) plans to acquire the company for $157 per share in cash is favorable for Splunk's shareholders and could close by the end of 2024.

Mizuho Securities On Splunk

Analyst Gregg Moskowitz reiterated a Neutral rating and price target of $157.

"SPLK reported partial F3Q results that were modestly above expectations," Moskowitz wrote in a note. Total ARR growth was in-line with estimates, while Cloud ARR growth modestly exceeded expectations and now comprises more than 50% of total ARR, he added.

"Given the rising importance of cybersecurity and observability in today's increasingly digital and complex IT environment, the logic behind CSCO's decision to acquire SPLK is understandable, and we believe CSCO is gaining this asset at a reasonable price," the analyst further wrote.

Needham On Splunk

Analyst Mike Cikos reaffirmed a Hold rating on the stock.

"NG OpEx declined 1% yr-yr despite Total ARR climbing 15% yr-yr," Cikos said. "We note expense discipline and efficiency have been Splunk's hallmark under the tenure of CEO Gary Steele and CFO Brian Roberts," he added.

The company did not provide any guidance due to its pending purchase by Cisco, the analyst further noted.

KeyBanc Capital Markets On Splunk

Analyst Michael Turits maintained a Sector Weight rating on the stock.

Splunk reported strong quarterly results, with ARR slightly higher and EBIT margins nearly 6 points above consensus, Turits said. Cloud ARR drove the upside, while "Cloud bookings mix came in at 60% vs. management's prior expectation for reaching the low end of 55-65%," and Cloud gross margins expanded to 74.6%, from 73.8% in the previous quarter, he added.

"Revenue beat consensus by 4%, driven by license upside, partially offset by slight misses on cloud revenue and maintenance/services revenue," the analyst further wrote.

SPLK Price Action: Shares of Splunk were trading almost flat at $151.15 at the time of publication Wednesday.

What Are Kids Asking Santa For This Year? Digital Currency, Subscriptions — Not Video Games

Benzinga News — Wed, 29 Nov 2023 14:37:27 -0500

This holiday season, the Entertainment Software Association (ESA) unveiled data highlighting a shift in children's gift preferences.

Contrary to the expectation of physical video game requests, kids aged 10 to 17 in the U.S. are clamoring for digital currency and video game subscriptions.

According to the report: 72% of the desired gifts were video game-related with 86% of boys and 59% of girls expressing interest.

Surprisingly, the most sought-after items aren't new physical Microsoft Corp.'s (MSFT ) Xbox or Sony Group Corp.'s (SONY ) PlayStation games but rather digital currencies like Vbucks and in-game subscriptions.

Specifically, 39% of respondents favored game subscriptions, 29% wanted in-game currency, and only 22% desired physical video games.

The term "game subscriptions" includes services like Game Pass and PS Plus, but it likely also involves premium subscriptions for games such as Roblox, Fortnite, and Grand Theft Auto Online.

The rising popularity of "forever games," regularly updated for years, influences this shift. Rather than asking for new games, children prefer additional content and benefits within the games they frequently play with friends.

The trend reflects the broader landscape of the gaming industry's digital evolution, where digital game sales have surged, constituting 90% of UK video game sales in 2022.

Parents and gift-givers are noticing this shift, with many sharing anecdotes about their kids' heightened interest in digital currency like Robux and subscriptions offering expanded content within their favorite games like Fortnite.

Notably, a report from Adobe Among highlights Roblox as being one of the hot products for the 2023 holiday shopping season. Roblox Corporation's (RBLX ) gift cards are expected to be another hot ticket item as a gift, with players of the game spending on in-app purchases frequently.

Charlie Munger, Warren Buffett's Trusted Partner, Dies At 99

Benzinga News — Wed, 29 Nov 2023 14:37:05 -0500

Charles Munger, the billionaire businessman and attorney best-known as Warren Buffett's right-hand man at Berkshire Hathaway, died on Tuesday at the age of 99.

With no thought of retirement, the finance sage had worked with Buffett since 1959, when the two were introduced at a dinner. Together, they ran Berkshire Hathaway Inc. (BRK.A ), with Buffett at the helm and Munger as vice chairman. Together they build Berkshire into a giant holding company with a market capitalization of over $784 billion.

Munger also served as chairman of the Daily Journal Corporation (DJCO ) and as a director at Costco Wholesale Corporation (COST ).

Munger spent some time in real estate law, co-founding Munger, Tolles & Olson in California before shifting permanently to investing. A short-lived partnership proceeded his chairmanship at Wesco Financial Corporation, a subsidiary of Berkshire Hathaway.

While in the U.S. Army he learned a skill that served him well in business: card playing. It was something he was quoted as saying affected his approach to stock trading.

Among the other stock trading approaches Munger was known for was the "Lollapalooza effect," the principle of inversion and steering Buffett away from what he called the "cigar-butt" version of value investing: when an investor buys a dying business worth $1 for $0.75 just "to get the 0.25% of free puff" that's left in the business, ultimately meaning don't buy a troubled business at a discount because the immediate gain will be eroded by low returns.

He recommended buying a good business: "Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices."

Munger was outspoken about the need for maintaining ethical business standards, and credited them to his success.

Munger was vocal in his criticism of cryptocurrencies, referring to Bitcoin as a "noxious poison" and the "go-to payment method for criminals."

Charles Thomas Munger was born Jan. 1, 1924, in Omaha, Nebraska. He was the son of Alfred C. Munger, an attorney, and Florence Russell Munger. He had two sisters, Mary Munger and Coral Munger.

Munger worked bagging groceries at Buffett & Son, a grocery store owned by Buffett's grandfather.

He is among the billionaire college dropouts, having cut short his stint at the University of Michigan, where he studied mathematics, to enter the U.S. Army Air Corps. He was trained as an meteorologist and became a second lieutenant.

Munger continued studies in meteorology at Caltech in Pasadena, California, making the town his permanent home.

Munger applied to Harvard Law School, his father's alma mater, but was rejected because he had not obtained an undergraduate degree. After a phone call from a family friend, Roscoe Pound, who also happened to be the former dean of the school, Munger was accepted and graduated magna cum laude with a J.D.

Munger had been married twice. His first marriage was to Nancy Jean Huggins in 1945 with whom he had three children. It ended in divorce in 1953. His second marriage was to Nancy Berry Borthwick in 1956 and lasted until she died in 2010. He had four children and two step-children with Borthwick.

Munger's philanthropy focused on education, donating to University of Michigan Law School, Stanford University, and University of California, Santa Barbara.

When Munger was in his 50s, he had a failed cataract surgery, which made him blind in his left eye, eventually removing it. He still had sight in his right eye.

Munger was the author of "Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger" and "On Success."

Market Update: Stocks Climb Higher as Confidence Grows for Fed Holding Rates

Rachel Hemple — Tue, 28 Nov 2023 16:58:22 -0500

Stocks continued November's impressive rally on Tuesday as recent Fedspeak signalled that the central bank may not need to further raise interest rates. The Dow Jones Industrial Average rose over 80 points, while the S&P 500 Index and Nasdaq Composite added about 0.1% and 0.3%, respectively.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY ): +0.10% or +4.46 points to 4,554.89

Dow Jones Industrial Average (DIA ): +0.24% or +83.51 points to 35,416.98

Nasdaq Composite Index (QQQ ): +0.29% or +40.73 points to 14,281.76

Federal Reserve Governor Christopher Waller said on Tuesday that he is growing more confident that the Fed's current policy could bring inflation down to the central bank's target of 2%.

"While I am encouraged by the early signs of moderating economic activity in the fourth quarter based on the data in hand, inflation is still too high, and it is too early to say whether the slowing we are seeing will be sustained," Waller said in prepared remarks for a speech in Washington, D.C.. "But I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent."

The Federal Open Market Committee's next and last policy meeting of the year is scheduled for Dec. 12-13, with more than 95% of investors expecting policymakers to hold rates at their current range of 5.25% to 5.50%, according to CME Group's FedWatch tool.

In economic news, consumer confidence rose in November, according to the Conference Board's index reading released Tuesday, increase to 102 for the month from October's downwardly revised print of 99.1. Beneath the headline, however, the expectations index came in at 77.8 -- reading below 80 are consistent with recession.

On the earnings front, Micron Technology (MU ) shares dipped on Tuesday despite the chip maker lifting its fiscal first-quarter guidance. The company now expects revenue of $4.7 billion for the quarter, above its previous estimates for $4.4 billion, with forecasts boosted by "improved supply and demand balance," as well as pricing.

Looking ahead, market participants will react to CrowdStrike's (CRWD ) earnings after the bell, as well as the release of the first revision of U.S. third-quarter GDP estimates and the Fed's Beige Book on Wednesday.

Amazon Shatters Records with Over 1B Items Sold During Holiday Shopping Event

Benzinga News — Tue, 28 Nov 2023 14:36:20 -0500

Amazon.Com Inc (AMZN ) announced that its extended Black Friday and Cyber Monday event, which lasted from November 17 to November 27, was the most successful in its history compared to the same period in previous years.

During this 11-day shopping event, customers worldwide purchased over one billion items, enjoying nearly 70% more savings than last year.

The company also revealed that new deals would be available daily until December 24, offering discounts on various products.

Doug Herrington, CEO of Worldwide Amazon Stores, stated that the company initiated its holiday season with Prime Big Deal Days in October and extended its Black Friday and Cyber Monday events to provide more convenience and savings for customers. He highlighted that many customers are still shopping, and Amazon plans to offer millions more deals on a diverse range of products.

Popular items during this period included COSRX Snail Mucin skincare, Fire TV sticks, Ring doorbells, and Bissell vacuum cleaners.

U.S. consumers set a record by spending $12.4 billion on Cyber Monday, a 9.6% increase from the previous year, surpassing the expected $12 billion, CNBC reports.

The total online sales for Cyber Week reached $38 billion, exceeding the forecast of $37.2 billion.

Price Action: AMZN shares were trading lower by 0.40% at $147.14 on the last check Tuesday.

Reddit Eyes 2024 IPO Amid Volatile Market, Estimates $15B Valuation: Report

Benzinga News — Tue, 28 Nov 2023 14:36:05 -0500

San Francisco-based social media giant, Reddit Inc., is reportedly engaging in discussions with potential investors for an initial public offering (IPO) that could take place as early as 2024.

Insiders privy to the matter disclosed that Reddit, whose user base played a significant role in the meme-stock frenzy of 2021, is contemplating an IPO, possibly in the first quarter of 2024, reported Bloomberg. The company is said to be in collaboration with Morgan Stanley (MS ) and Goldman Sachs Group Inc. (GS ) for the prospective listing. The estimated valuation is projected to reach $15 billion.

The U.S. has experienced a slowdown in first-time share sales for several months, owing to fluctuating markets and the poor performance of multiple IPOs towards the end of 2023. The total U.S. volume for this year is expected to barely surpass that of 2022, marking the worst performance for IPOs in the country in over a decade.

Several other companies including Rubrik Inc., a cloud and data security startup backed by Microsoft Corp. (MSFT ), and Skims, the clothing label owned by Kim Kardashian, which is valued at $4 billion, are also reportedly considering IPOs in the coming future.

Cyber Monday Update: Bargain-Conscious Online Consumers Increase Spend

Benzinga News — Tue, 28 Nov 2023 14:35:51 -0500

Consumers are becoming more price-conscious and took full advantage of discounted offers on Cyber Monday.

Goldman Sachs collected data from Adobe (ADBE ), Salesforce (CRM ), and Mastercard (MA ), among others. Each company reported online sales growth at the start of Cyber Week. Categories such as electronics, footwear, sporting goods and jewelry were especially strong.

According to Raymond James, active footwear saw the biggest year-on-year sales growth. The category spiked 17%, while general footwear was up 14%. Toys and learning saw an increase of 15% over last year and beauty and skincare rose 10%. Home and furniture saw the biggest sales decline, down 10% over last year.

Cyber Monday Consumers Are Price Sensitive

Consumers took full advantage of discounted promotions. But they also showed a degree of caution. Analysts at Goldman Sachs reported a pickup in "buy-now-pay-later" and "no-rush shipping" options.

"Consumers continue to be particularly value-oriented and price-conscious, with promotions playing an important role in purchasing decisions," said analyst Eric Sheridan.

Among the heaviest discounts were to be found in the active footwear category, according to research by Raymond James.

Nike (NKE ) was offering up to 60% plus free shipping and returns, while Foot Locker (FL ) was offering up to 60% - raised from last year's 50%.

Among the digital commerce companies, Etsy (ETSY ) was giving discounts of up to 60%, while Chewy (CHWY ) was offering savings of up to 50%.

"Of the brands we track, 13 brands were more promotional, six were less, and 27 were the same as last year, said Raymond James analyst Rick Patel.

Promotions Likely To Remain Into 2024

Patel added: "We expect the remainder of 2023 to remain promotional for most companies given the weak macro backdrop and certain categories still grappling with high marketplace inventories."

Goldman Sachs also expected eCommerce to remain highly promotional driven by consumers becoming increasingly price sensitive.

"We continue to highlight Amazon (AMZN ) as our preferred way for investors to be exposed to the sector in volatile times," said Sheridan.

He also highlighted Alphabet (GOOGL ) (GOOG ) and Meta (META ) as the best positioned stocks to benefit from digital advertising.

Toyota Prepping For $4.7 Billion Stake Sale In Supplier Denso To Shift To Electric Vehicles

Benzinga News — Tue, 28 Nov 2023 12:56:16 -0500

Japanese automaker Toyota Motor Corp (TM ) and two of its affiliates are reportedly set to unload about 10% of their shares in automotive components manufacturer Denso by the end of the year.

What Happened: The proposed sale, estimated to be worth around $4.7 billion, aligns with Toyota's plan to liquidate stakes in group companies, Reuters reported, citing sources familiar with the matter.

As per the report, Toyota, Toyota Industries, and Aisin intend to sell Denso shares amounting to about 700 billion yen ($4.7 billion) at existing market prices. Toyota Motor's share in the sale will be less than half of the approximately 10%, with the balance coming from Toyota Industries and Aisin.

Meanwhile, Denso, the world's second-largest automotive components manufacturer, reportedly intends to buy back some of its shares from the open market to counter potential impacts on its stock price.

Why It Matters: Domestic investors are likely to buy the shares for a price that is yet to be decided. However, the report noted that even after the sale, Toyota will continue to be the largest shareholder in Denso. As of the end of September, Toyota held 24.2% of Denso.

The cash from the sale will be used to ramp up EV production, it added.

Toyota did not immediately respond to Benzinga's request for comment.

Crocs Upgraded: Analyst Sees Stabilizing HEYDUDE Growth And Overall Revenue Increase In 2024

Benzinga News — Tue, 28 Nov 2023 12:56:01 -0500

Raymond James analyst Rick Patel upgraded the rating on the shares of Crocs Inc (CROX ) from Outperform to Strong Buy and raised the price target from $98 to $115.

The analyst models CROX's FY23 revenue at 10.3% growth, in line with the street view.

The analyst raised FY24 revenue estimation to +4% from +3% to reflect stronger momentum continuing at Crocs versus the street view of +4.5%.

When considering the range of FY24 growth outcomes possible for Crocs and HEYDUDE, the analyst believes the estimates are achievable and likely beatable.

The analyst writes that Crocs has strong momentum through international, product diversification and brand heat.

The analyst says that HEYDUDE demand has been way lower than CROX expected entering 2023, but it's important to note that weak Wholesale sell-in is partly a function of industry headwinds.

According to the analyst, HEYDUDE growth will stabilize midyear, returning to growth in 2H24 on easy comparisons.

The analyst says that the stock being higher since the Q3 earnings show how low the bar was for CROX and sees further upside ahead.

The analyst believes street FY24 estimates reflect the low-end of likely revenue outcomes for Crocs and HEYDUDE, and operating margin estimates also already embed pressure from slower revenue and SG&A deleverage.

The analyst expects 2024 total revenue growth to be around 5.5-6% and achieve an EPS of $12.65+ in FY24.

Price Action: CROX shares are trading higher by 4.51% at $100.50 on the last check Tuesday.

Revolutionizing Access Management: Amazon Launches Palm-Scanning Tech For Business Security

Benzinga News — Tue, 28 Nov 2023 12:55:45 -0500

At the Amazon.Com, Inc (AMZN ) AWS re: Invent event, Amazon Web Services (AWS) introduced Amazon One Enterprise, a new palm-based identity service designed to enhance security in organizations and prevent costly security breaches.

This service offers a quick, contactless authentication method for employees and authorized individuals to access physical locations (like data centers, office buildings, airports, hotels, resorts, and educational institutions) and digital assets (such as financial data and HR records).

Amazon One Enterprise aims to reduce the operational burden of traditional authentication methods like badges and PINs.

It simplifies the management process for IT and security administrators, who can quickly install Amazon One devices and oversee users, devices, and software updates through the AWS Management Console.

Boon Edam, IHG Hotels and Resorts, Paznic, and KONE, among customers and partners, are using Amazon One Enterprise.

Amazon is broadening the application of its palm-scanning technology, initially used in grocery stores, to cater to the business sector with Amazon One Enterprise. Amazon One is a biometric technology that lets users enter and pay for store items by placing a palm over a scanning device.

Price Action: AMZN shares closed higher by 0.67% at $147.73 on Monday.

Google Introduces AI Core Update On Pixel 8 Pro For Advanced Functionality

Benzinga News — Tue, 28 Nov 2023 12:54:52 -0500

In its latest advancement, Google (GOOG ) (GOOGL ) has commenced the rollout of its first-ever AI Core update, specifically targeting the Pixel 8 Pro smartphone.

What Happened: Google has launched an update for its AI Core app on Pixel 8 Pro devices, reported 9to5Google. The AI Core, which is detailed on the Google Play Store, powers features throughout Android and allows apps to utilize contemporary AI models.

Following the Android 14 update, Pixel phones and tablets, including Tensor devices, have housed a placeholder for AI Core, a background service with which users do not directly engage. This update unlocks the "AICore Persistent" feature, enabling AI Core to reserve memory and run continuously. However, it is recommended that this feature remains disabled for end users.

The update is being deployed to all Pixel 8 Pro devices operating on both stable and beta (QPR1 + QPR2) releases. The app version is upgraded from 0.release.539035001 to 0.release.582652206. As of now, the update is exclusive to the Pixel 8 Pro model, with no word on updates for the Pixel 8 or previous devices.

Why It Matters: This update comes after Google's launch of the Pixel 8 and Pixel 8 Pro smartphones earlier in October, featuring the Tensor G3 chipset and a number of camera enhancements. The rollout of the AI Core update underlines Google's commitment to enhancing the user experience on its devices, particularly with the incorporation of advanced AI capabilities. The specific targeting of the Pixel 8 Pro for this update may signify Google's focus on promoting its latest device offerings.

Micron Warns Of Higher-Than-Expected Operating Expenses And Dell Lands A Deal With AI Startup

Benzinga News — Tue, 28 Nov 2023 12:54:37 -0500

The tech sector is showing signs of recovery after a challenging year. But, there is still trouble on the horizon as the industry continues to evolve, with its next chapter being fueled by AI development.

The largest US maker of computer memory semiconductors, Micron Technology Inc (MU ) raised its revenue and earnings guidance for the undergoing quarter, joining its peers in providing hope that the historic chip slump is coming to an end. Yet, shares fell early Tuesday as Micron also projected higher operating expenses, much higher than compared to what analysts expected.

Micron's Revised Its First Fiscal Quarter Guidance

A boost in Micron's top and bottom-line forecasts was widely expected as demand for memory chips has picked up. For the first fiscal quarter of 2024, Micron expects revenue to approach $4.7 billion with non-GAAP gross margins to come near breakeven. Micron guided for adjusted loss per share of about $1, while it previously forecasted $1.07 per share, plus or minus 7 cents. But, Micron also guided for $990 million in adjusted operating expenses and significantly higher-than-expected expenses forecast dimmed its slightly raised earnings and revenue guidance.

Dell Makes A Deal To Solidify Its AI Footing

Dell Technologies Inc (DELL ) revealed it inked a $150 million deal with an AI startup. Dell will be supplying computing hardware to Imbue as it continues to work on growing its AI footprint. Imbue recently raised $200 million from companies that include Nvidia Corporation (NVDA ).

Back in May, Dell and NVIDIA announced a joint initiative. Through Project Helix, Dell and NVIDIA aim to make it easier for businesses to build and use generative AI models. Project Helix will deliver such solution through the infrastructure and software made by both Dell and NVIDIA. In simple words, NVIDIA and Dell joined forces to support enterprises in deploying generative AI more easily, yet responsibly and accurately. It is one of few AI startups that builds its own AI foundation models from scratch, which bodes well for Dell as this is an ambitious endeavor that requires a large volume of computing power.

Dell is also delivering its professional services to Microsoft Corporation (MSFT ), including Microsoft 365 Copilot. With Dell's technology expertise, companies can adopt Microsoft 365 Copilot quickly and a scale. Therefore, with Dell's support, Microsoft customers are able to adopt a consistent approach to implement and use this new technology.

According to Gartner®, the percentage of enterprises using GenAI applications will rise from this year's 5% to more than 80% by 2026. In simple words, Dell and more than a dozen of its new offerings will help organizations capitalize on features offered by Microsoft 365 Copilot.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

Florida Is Beginning To Lose Homeowners Over High Insurance Premiums

Benzinga News — Tue, 28 Nov 2023 12:37:49 -0500

The allure of sunshine, low taxes and low housing prices have been attracting people to Florida for decades, but high insurance premiums are beginning to reverse the trend. The U.S. Census Bureau shows that nearly 276,000 people left Florida in 2022, and it's believed that skyrocketing insurance premiums motivated many of the departures.

The study showed most of the former Florida residents remained in the sun belt, moving to states like North Carolina, Georgia, Tennessee and Texas. Those states offer similar benefits as Florida in terms of low housing costs and tax rates. What they also have in common is that they are not currently experiencing the insurance rate crisis that has gripped Florida for the last several years.

Premiums Going Up And Insurers Exiting Stage Left

The Sunshine State's insurance industry has suffered for many years from a combination of more frequent, more dangerous hurricanes, causing the cost of claims to rise. Four hurricanes made landfall in Florida since 2017, and three of them have been category 4 or 5. The total damage has been in the tens of billions of dollars.

They have come so fast and so frequently that insurers have barely recovered from the cost of covering claims for one hurricane when the next one comes rolling in. Adding to the misery is that as property values have spiked, the cost of claims has multiplied several times as well. Insurance companies are not set up for this situation.

Insurers cover their potential losses by purchasing something called reinsurance, which is an insurance policy that insurance companies buy to protect themselves in the event of a natural disaster. The cost of recent hurricane claims has caused reinsurance rates to spike, and that has led to an unprecedented rise in home insurance premiums for Florida home and business owners. Worse yet, it's causing many insurance carriers to leave the state entirely.

A Different Kind Of Sticker Shock

According to the Insurance Information Institute, Florida insurance premiums have gone up by 300% in the last five years. The average cost of home insurance in the United States is $1,700, whereas Floridians pay over $4,200 annually if they can get insurance at all.

Instead of renewal notices with higher premiums, many Floridians are getting notices advising them that their insurance carrier is leaving the state, and their policy will not be renewed. Retirees are getting hit even harder as premiums take up huge chunks of their fixed income, which contributes to the exodus.

Having Insurance Is Only Half the Battle

Even the Florida residents who are fortunate enough to be able to afford their insurance premiums are struggling. In addition to the property damage, every hurricane leaves thousands of lawsuits between angry homeowners and insurance companies in its wake. The cost of fighting these lawsuits is another factor in motivating insurers to leave Florida.

A Problem Without A Solution?

The exodus of insurers from Florida has left Citizen's Property Insurance Corporation as one of the state's largest insurance providers. The problem with that equation is that Citizen's is a state-run insurance provider that was not meant to be anything more than a last resort for people on the insurance market. For many Floridians, it's becoming the first option.

The idea of a state that doesn't charge income taxes being on the hook for millions of home insurance policies is problematic. If another storm that matches the power of Hurricane Andrew slams into Miami or Tampa, paying out the claims could potentially bankrupt the state. That is why so many Floridians are choosing to become ex-Floridians.

Consumer Confidence Rises More Than Predicted In November, But An Early Recession Signal Flashes

Benzinga News — Tue, 28 Nov 2023 12:37:35 -0500

U.S. consumer confidence managed to rebound more robustly than anticipated in November, hinting at an underlying resilience on the demand side. Beneath the surface, there are lingering concerns that cast a shadow over the nation's economic outlook.

The widely watched consumer confidence index for the United States surged from a downwardly revised 99.1 in October to a reading of 102 in November, according to the latest data released Tuesday. This surpassed market expectations of a 101.6 reading.

"Consumer confidence increased in November, following three consecutive months of decline," said Dana Peterson, chief economist at The Conference Board.

This uptick in consumer sentiment provides a positive sign for the economic landscape, especially amid the uncertainty stemming from inflationary pressures and interest rate hikes.

The Present Situation Index, which assesses consumer views of current business and labor market conditions, fell from 138.6 to 138.2. The Expectations Index, which gauges the short-term consumer outlook for income, business and labor market conditions, posted a notable increase. It rose from its downwardly revised reading of 72.7 in October to 77.8.

Lingering Concerns And Generational Divides

Despite the overall improvement in November's consumer confidence index, a concerning trend is emerging. The Expectations Index remained below 80 for the third consecutive month. Historically, this level has often signaled an impending recession within the next year.

Alarmingly, around two-thirds of consumers surveyed in November still perceive a recession to be "somewhat" or "very likely" to occur over the next 12 months, underscoring the persisting uncertainty in the economic environment.

The surge in consumer confidence in November was primarily concentrated among households aged 55 and older, highlighting generational divides in economic sentiment. In contrast, confidence among householders aged 35-54 saw a slight decline. Average 12-month inflation expectations retreated to 5.7% after a one-month uptick to 5.9%.

This suggests that concerns over rising prices are far from being completely assuaged.

On a somewhat brighter note, consumers' assessment of the short-term labor market outlook was slightly more optimistic in November. 16.1% of consumers said they expect more jobs to be available, up from 15.3% in October. Additionally, 39.3% of consumers reported that jobs were "plentiful," a modest increase from 37.9% in October. Yet 15.4% of consumers said jobs are "hard to get," showing a slight uptick from 14.1%.

Market Reactions

The U.S. dollar index (DXY) saw a marginal 0.1% uptick after the report, offsetting some of its daily losses. Expectations for interest rates remained largely unchanged.

Traders have already factored in the likelihood of interest rates remaining unchanged in December, followed by a series of four anticipated rate cuts in 2024, commencing in May.

Stock markets exhibited limited reactions on Tuesday, as both the SPDR S&P 500 ETF Trust (SPY ) and the Invesco QQQ Trust (QQQ ) edged down by 0.1%.

Are France, Germany And Italy Blocking AI Protections? Amnesty International Weighs In

Benzinga News — Tue, 28 Nov 2023 12:37:21 -0500

The EU faces a significant tech challenge.

Countries like France, Germany, and Italy oppose a proposed artificial intelligence (AI) legislation, aimed at regulating foundational AI models.

Amnesty International's Secretary-General Agnes Callamard urged France, Germany, and Italy to reconsider their stance and support the adoption of the AI Act. Callamard also addressed the importance of this act for safeguarding fundamental rights and addressing the risks posed by AI technologies.

Callamard criticized the notion that innovation and regulation are mutually exclusive, a perspective often promoted by major tech companies to avoid stringent regulations.

She argued that this "false dichotomy" has long been used to escape accountability and that the current situation highlights the disproportionate influence these companies have in shaping global AI regulations.

The AI Act, as proposed by the EU, is not just another piece of legislation; it represents a pioneering effort to create a comprehensive framework for AI governance.

This act aims to protect fundamental human rights and prevent AI technologies from exacerbating discrimination, particularly in sensitive areas like mass surveillance, policing, and welfare distribution.

The potential impact on marginalized groups, including migrants, refugees, and asylum seekers, is a primary concern.

Callamard's statement comes at a crucial juncture, as unregulated AI systems are increasingly employed by states for various purposes, from welfare assessment to crime prediction.

The lack of oversight in these applications can lead to significant human rights violations and discrimination.

The AI Act seeks to address these issues by introducing measures for public transparency and accountability, especially in the use of AI by police, migration, and national security authorities.

She emphasized the urgency of embedding crucial human rights protections into law, stressing the need for EU lawmakers to finalize the act before the end of the current EU mandate in 2024.

Amazon's Latest Healthcare Strategy: Embracing Virtual Doctor Visits

Benzinga News — Tue, 28 Nov 2023 12:37:07 -0500

Amazon.com Inc (AMZN ), initially known for its Prime membership benefits like fast shipping and video streaming, has recently ventured into healthcare, offering discounted virtual doctor visits.

However, this move represents a shift from its ambitious plans to revolutionize American healthcare to a more traditional approach, Bloomberg reports. Amazon currently operates its own doctors' offices and pharmacies, offering Prime members discounts on One Medical membership, a primary-care chain it acquired.

Over the past eight years, Amazon has experimented with various healthcare initiatives but faced setbacks. Projects like Haven, a joint venture to reduce corporate health insurance costs, and Amazon Care, a telehealth service, were discontinued. Similarly, it scrapped its line of wearable health devices due to low consumer interest.

Amazon's healthcare strategy currently relies on One Medical and PillPack, a mail-order pharmacy acquired in 2018. Both services, while popular, essentially replicated existing offerings and were not profitable before Amazon's acquisition.

Despite significant investments, Amazon's healthcare ventures have yet to impact the industry substantially, mirroring the experiences of other tech giants like Apple (AAPL ) and Google (GOOG ) (GOOGL ), who have also struggled to disrupt the healthcare sector.

Amazon had a very active 2023, cutting 27,000 jobs and restructuring its various divisions, including grocery and logistics while integrating artificial intelligence technology in every division.

Price Action: AMZN shares were trading lower by 0.89% at $146.42 at last check Tuesday.

Home Prices Surge Nationally, Detroit Leads Major City Gains

Benzinga News — Tue, 28 Nov 2023 12:36:54 -0500

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.9% annual change in September, up from a 2.5% change in the previous month.

The 10-City Composite showed an increase of 4.8%, up from a 3.0% increase in the previous month.

The 20-City Composite posted a year-over-year increase of 3.9%, up from a 2.1% increase in the previous month.

Detroit surpassed Chicago, reporting the highest year-over-year gain among the 20 cities, with a 6.7% increase in September, followed by a 6.5% increase in San Diego.

Three of the 20 cities reported lower prices in September versus a year ago.

Year-to-date, the National Composite shows a 6.1% increase, surpassing the median full calendar year rise recorded over more than 35 years of data.

Despite this year's hike in mortgage rates, which has dampened home sales, the limited availability of homes for sale has bolstered prices considerably.

Barring higher rates or unforeseen events causing an economic downturn, this month's report's broad scope and robustness align with an optimistic outlook for future outcomes.

The Case-Shiller index measures U.S. residential real estate prices, tracking changes in the value of residential real estate nationally.

Last week, the average rate for a 30-year fixed mortgage was 7.29% for the week ending November 22, as reported by Freddie Mac's Primary Mortgage Market Survey. This rate shows a slight decrease from the previous week's 7.44% and up from 6.58% the same week a year ago.

According to National Association of REALTORS data released last week, existing home sales descended 4.1% in October to a seasonally adjusted annual rate of 3.79 million. Sales slumped 14.6% from one year ago.

The median existing-home sales price climbed 3.4% from one year ago to $391,800 - the fourth consecutive month of year-over-year price increases.

At the end of October, the stock of unsold existing homes increased by 1.8% from the previous month, reaching 1.15 million. This amount represents a supply of 3.6 months at the current rate of monthly sales.

Housing-focused ETFs moved lower, with the SPDR S&P Homebuilders ETF (XHB ) and the iShares U.S. Home Construction ETF (ITB ) down around 0.66%. Vanguard Real Estate ETF (VNQ ) was down 0.41%, and Real Estate Select Sector SPDR Fund (XLRE ) was down 0.33%.

Online Fashion And Lifestyle Retailer Shein Plans US IPO With Up To $90B Valuation: Report

Benzinga News — Tue, 28 Nov 2023 12:36:03 -0500

Singapore-based fast fashion platform Shein has confidentially planned to go public in the U.S.

Shein raised $2 billion at a $66 billion valuation in 2023. The fashion platform will likely go public at a valuation of up to $90 billion, TechCrunch reports.

Shein is known for disrupting an industry dominated by Zara and H&M, which attained an even higher valuation of $100 billion in April 2022.

Shein, established in China more than ten years ago, has revolutionized data analytics to forecast customer needs and manufacture limited clothing batches, reducing inventory expenses.

The report further noted that Shein is now grappling with issues such as copyright infringement lawsuits, environmental concerns, and rising competition from Temu, a burgeoning online marketplace operated by China's PDD Holdings Inc (PDD ).

Shein has considered a U.S. IPO for over three years. Still, challenges such as U.S. examination of Chinese accounting methods, market instability caused by the pandemic, and the impact of Russia's conflict in Ukraine have hindered its plans.

Nvidia Delays Chip Launch And Competitors Are Set To Challenge Its Dominance

Benzinga News — Tue, 28 Nov 2023 12:35:16 -0500

Last week, Nvidia Corporation (NVDA ) reported staggering third-quarter results. Despite its reliance on Taiwan Semiconductor Manufacturing Company Limited (TSM ), Nvidia's Data Center division drove this impressive growth, allowing the company to outshine its competitors, including TSMC, as well as Intel (INTC ), and Advanced Micro Devices, Inc. (AMD ).

But, shares slumped upon news that Nvidia is delaying the launch of its new AI chip for China, touted as the most powerful one and one that complies with the latest U.S. chip export curbs. According to Reuters, launch has been rescheduled for the first quarter of 2024.

Third Quarter Results From Competitors

When comparing third quarter results, TSMC reported substantial revenues of $17.28 billion with profits of $ $6.69 billion. But, back in October, TSMC also reported its biggest profit drop in almost five years. TSMC reported also a revenue drop of 10.83% YoY but also that compared to the second quarter, revenue rose 13.7%.

However, Intel experienced a minor loss of $8 million with revenues amounting to $14.16 billion. Yet, this year was rewarding to Intel that was hit hard by the PC market downturn. Although PC sales were still down during the third quarter, Intel reported they dropped at a much slower pace. With its latest results, Intel showed it is on the road to recovery.

Nvidia's Third Quarter Results

For the quarter ended on October 29th, Nvidia reported revenue rose 206% YoY to $18.12 billion and profits of $9.24 billion. Operating income alone rose more than 1,600% with data center revenue reporting a revenue growth of 279% as revenue amounted to $14.51 billion.

Nvidia is undoubtedly leading the AI pack, enjoying its first mover advantage. According to data from Jon Peddie Research, Nvidia controlled 87% of the GPU market in 2023's second quarter. Until last year, Nvidia's popularity revolved around PC gamers who used its GPUs to power their custom-built machines. But then AI came into the picture and changed the dynamics, sending Nvidia to unprecedented heights.

Although competition is intensifying with rivals challenging its dominance with their own GPUs, Nvidia will also continue developing new and more powerful chips. It will likely continue to grow considering that companies will be needing more powerful chips to bring their existing products to a new level. During the reported quarter, Nvidia announced the GH200 GPU. But, the delayed launch shows that even the all-mighty leader is threatened by U.S. chip export restrictions.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

Analysts Highlight Healthy Traffic And Discounts On Black Friday - How's The Trend?

Benzinga News — Tue, 28 Nov 2023 12:34:55 -0500

BofA analyst Justin Post reiterated a Buy rating on Amazon.Com Inc (AMZN ) and a price target of $168.

The stock seems well-positioned to benefit from improving (post-reopening) online penetration growth.

The analyst views Black Friday Online sales data points as generally constructive (offline more subdued), though there is always a risk that promotions pulled forward December sales.

BofA analyst Robert F. Ohmes noted that Black Friday saw healthy consumer traffic from store visits.

Shoppers primarily sought discounted, lower-priced apparel and value items over high-ticket products.

Academy Sports And Outdoors, Inc (ASO ) experienced the most robust customer traffic among the retailers the analyst visited.

Dick's Sporting Goods Inc's (DKS ) House of Sport concept stood out with an impressive range of products, especially in expanded footwear.

The competition for YETI Holdings, Inc (YETI ) intensified as retailers increased their display of Stanley products.

DKS and ASO are expanding their children's and toddlers' apparel selections.

Hibbett, Inc. (HIBB ) maintained intense stock levels of crucial footwear styles, with discounts mainly aimed at promoting apparel purchases.

DKS showed mixed traffic across locations, with less promotional activity than competitors. Shoppers responded well to apparel discounts, as per the analyst.

ASO's traffic was robust, similar to last year, with solid sales in discounted apparel sections. Private-label apparel discounts increased year-over-year. Footwear selections improved. The hunting and ammunition section saw significant demand.

HIBB's strategy focused on promoting apparel purchases alongside footwear, with intense in-stock levels of key footwear styles but overall muted discounts. Apparel discounts were lower than last year.

Goldman Sachs analyst Kate McShane visited various retailers on Black Friday. Overall traffic still appeared muted relative to 2019 at most "traditional" Black Friday weekend destinations, with no lines waiting to get into stores at their openings.

There were certain retailers where traffic was a little stronger than average (DKS, Best Buy Co, Inc (BBY )) and the mall (Bath & Body Works, Inc (BBWI ), Lululemon Athletica Inc (LULU )). The analyst noticed lighter inventory levels across the board, with some noticeable out-of-stock items (like in the toy section of Target Corp (TGT )).

Consumer electronics, toys, and sporting goods (footwear) were the areas within stores with the most traffic. Promotion signage was heavier in the stores than last year, with customers shopping in these areas more than in nonpromoted areas.

Morgan Stanley analyst Alex Straton's Black Friday store checks pointed to ~flat to down Y/Y traffic across Softlines Retail/Brands.

The analyst noted this sluggish demand outcome is potentially already accounted for in companies' cautious holiday and 4Q outlooks, given unchanged Y/Y Black Friday promotional and discounting levels and low initial holiday and 4Q expectations. Light traffic and limited promotions mean the margin over-sales trade-off across Hardline retail may persist through Q4.

Straton noted Aerie, Gap (GPS ), Hollister, and Old Navy as Black Friday leaders and AE, Nordstrom (JWN ), PINK, and Torrid as potential laggards.

Oppenheimer analyst Brian Nagel remains most upbeat upon athleisure, including Nike, Inc (NKE ), LULU, DKS, and ASO within discretionary.

During recent Black Friday visits and data analysis, Nagel found that despite Black Friday's decreasing significance in an extended, online-focused holiday season, robust spending data indicates a healthy consumer market, likely to maintain positive consumption into year-end.

The success is attributed to aggressive promotions and better inventory availability, driving year-on-year sales growth. The encouraging holiday season start should ease market worries despite investor concerns over a potential economic downturn. The softer spending in late October is a temporary, weather-related dip, not indicative of a broader negative trend.

Telsey Advisory Group analyst Dana Telsey noted that Black Friday weekend 2023 started earlier with promotions in mid-October amid cautious consumer expectations shaped by recent reports. Inventory was well-managed, and average discounts were 30%-40%. There were increases in in-store, online, and mobile sales.

The period between Thanksgiving and Christmas was the longest possible at 32 days, leading to more last-minute shopping. Store openings were later at 8:00-9:00 a.m., with peak traffic in the afternoon. Retailers used holiday decorations to enhance the shopping atmosphere. Early results indicate a successful weekend overall.

Amazon Vs. Alibaba: Which E-commerce Giant Is An Investor Favorite?

Benzinga News — Tue, 28 Nov 2023 12:34:31 -0500

Two e-commerce giants - Amazon.com Inc (AMZN ) and Alibaba Group Holding Ltd (BABA ) - are popular among the investing community. Let's take a look at who could be an investor favorite between the two corporates.

Amazon's latest earnings report and conference call, indicate that its subscription business is growing steadily, with a potential revenue base of $100 billion by 2030. And it officially took over UPS (UPS ) and FedEx (FDX ) to become the biggest e-commerce delivery giant in the U.S.

A few catalysts that could work in Amazon's favor include the company's reduction of cost of One Medical service by $100, and its plans to run ads on Prime Video and to offer a flywheel effect for new services.

Labor strikes do present a potential risk, potentially increasing costs and impacting operating margins. However, recent revenue growth and rising profits may mitigate any impact that side.

Some believe that optimism and growth potential associated with Amazon stock may already be priced into it. Amazon stock is up 72.14% since the beginning of the year. Alibaba's stock is down 15.71%, on the other hand.

Expectedly, Amazon stock's trailing P/E is 77.35 versus Alibaba's more attractive 10.86. On a forward earnings basis as well, Alibaba's P/E of 7.68 appears more attractive than Amazon's 45.6.

While analysts rate both stocks a Buy, the upside in Alibaba is far ahead of that on Amazon stock. Analysts see a 65.42% upside from current prices for Alibaba stock vis-à-vis 6.9% for Amazon stock.

But, do Alibaba's fundamentals support its attractive valuation?

Alibaba has a diverse range of offerings including e-commerce, cloud services, digital media, and logistics. The company has strong growth potential in its strategic segments.

Given its undervaluation, some investors find the stock to be an appealing entry point due to its recent decline. However, risks related to competition, economic downturns, and political influence, continue to cast doubt about it being a viable investment opportunity.

Alibaba's Cloud business, for example, experienced its second outage in a month.

As such, despite its attractive valuation, uncertainties and risks associated with China, continue to make Amazon an investor pick over Alibaba. Google Trends data indicates interest in Amazon stock is at 95% compared to less than 1% for Alibaba.

New Battery Crushes Tesla's Tech, Unveils A Solid-State Marvel With 300% Higher Energy Density, 15-minute Ultra-Fast Charge

Benzinga News — Tue, 28 Nov 2023 12:34:11 -0500

In the rapidly evolving landscape of electric vehicle (EV) technology, a new player is emerging as a formidable challenger to Tesla Inc.'s (TSLA ) dominance. QuantumScape, a Silicon Valley-based startup, is revolutionizing the EV battery market with its cutting-edge solid-state batteries.

The batteries are touted to have triple the energy density of Tesla's lithium-ion cells, significantly faster charging times and a safer, more sustainable design.

QuantumScape's leap into the future is marked by its innovative use of solid-state technology, which replaces the traditional liquid electrolyte in batteries with a solid ceramic material. This transition increases energy density, allowing for longer driving ranges, and reduces the risks of fire hazards associated with conventional lithium-ion batteries. The company's bold claims of recharging to 80% capacity in 15 minutes could transform the EV landscape, addressing one of the major concerns of EV consumers: charging time.

The cost-effectiveness and scalability of QuantumScape's technology are also noteworthy. While Tesla has made significant strides in reducing the cost of its batteries, QuantumScape's solid-state batteries promise a further reduction in production costs. This potential for cheaper, more efficient batteries is crucial as the EV market becomes increasingly competitive, with automakers worldwide striving to meet rising demand and stringent emissions regulations.

QuantumScape's journey has been marked by strategic partnerships and solid financial backing. With Volkswagen as a major investor, the startup is well-positioned to leverage VW's extensive automotive expertise and global reach. The company's impressive performance in various testing scenarios, including extreme temperatures and rapid charging cycles, has bolstered confidence in its technology.

As the world shifts toward cleaner, more sustainable transportation options, QuantumScape's innovative approach to EV battery technology positions it as a key player in the industry. Its solid-state batteries hold the promise of longer ranges, faster charging and improved safety - factors that are critical in accelerating the transition to electric mobility.

While Tesla continues to lead the EV market with its advanced technology and expansive charging network, QuantumScape's breakthrough in battery technology presents a significant challenge. As the EV industry evolves, the competition between these two innovators is set to redefine the standards of electric mobility. The potential impact of QuantumScape's technology extends beyond the automotive industry, with implications for energy storage, renewable energy integration and the broader goal of a carbon-neutral future.

The EV battery market is not just about one company. It's an ecosystem brimming with innovation, with numerous startups and established firms working on various cutting-edge technologies. Each of these companies, like QuantumScape, carries the promise of shaping the future of electric mobility and renewable energy.

Investing in such companies is not just a financial decision - it's a vote of confidence in a sustainable future and a cleaner, more efficient mode of transportation. The potential for significant returns is bolstered by the growing global emphasis on reducing carbon emissions and transitioning to clean energy sources.

Facebook Parent Meta's New Privacy Fee Strategy Faces Backlash As It Could Set Costly Trend In App Privacy

Benzinga News — Tue, 28 Nov 2023 12:33:54 -0500

Meta Platforms, Inc. (META ) is under scrutiny again as advocacy group NOYB filed a complaint against the tech behemoth with the Austrian data protection authority.

European users are now presented with the option to either agree to be tracked for personalized advertising on Instagram and Facebook, or pay up to €251.88 annually to maintain their fundamental right to data protection.

Vienna-based NOYB, which operates under the European data protection regulation (GDPR), thinks that the cost is "unacceptable."

"Not only is the cost unacceptable, but industry numbers suggest that only 3 percent of people want to be tracked - while more than 99 percent decide against a payment when faced with a "privacy fee," NOYB said in a statement.

Should Meta succeed in this approach, its rivals are likely to adopt similar strategies. Considering the average phone has 35 apps, maintaining privacy on your device could soon amount to an annual cost of about €8,815, the statement read.

For a family of four, this cost could skyrocket to €35,263.20 yearly, surpassing the average full-time income in the EU.

However, a Meta spokesperson told Reuters that the pricing was in line with similar subscription offerings in Europe.

Meanwhile, Instagram, a social media platform owned by Meta, has been facing major backlash over practices surrounding its suggested content.

Price Action: META shares are trading lower by 0.42% to $333.30 premarket on the last check Tuesday.

Artificial Intelligence: 18 Countries Sign 'Secure By Design' Agreement

Benzinga News — Tue, 28 Nov 2023 12:33:31 -0500

The U.S. and U.K. were among 18 countries that signed an agreement on recommendations to keep artificial intelligence (AI) safe from hackers and other rogue actors who might wield the technology irresponsibly.

Published primarily by the U.S. Cybersecurity and Infrastructure Security Agency (CISA) and the U.K. National Cyber Security Centre (NCSC), many other international agencies were consulted, including some of the major developers and backers of AI technology, including Amazon (AMZN ), Alphabet (GOOG ) (GOOGL ) and Microsoft (MSFT ), which is a major investor of ChatGPT owner OpenAI.

The 18 countries that signed the document agreed that companies developing AI systems must do so in a secure and responsible way. This would require raising awareness of threats and risk, and modeling these to the systems.

"These guidelines should be considered in conjunction with established cyber security, risk management and incident response best practice. In particular, we urge providers to follow the 'secure by design' principles developed by CISA, NCSC and all our international partners," it recommended.

Cybersecurity: While hackers have, thus far, maintained existing methods to deploy malware or attack organizations' systems, experts believe AI-enabled threats to cybersecurity are already being built by hackers.

"As AI grows in importance, attackers will seek to outpace defenders' efforts with their own research. It is crucial for security teams to stay up to date with attackers' tactics to defend against them," said Dave Shackleford, founder of Voodoo Security, writing in TechTarget.

While the document only issued guidelines on how AI should be developed and deployed securely and responsibly, some countries have taken the threat more seriously and are discussing how the industry should be regulated.

Germany, France and Italy, earlier this month, agreed that AI should be regulated through a binding voluntary commitment for developers to follow a code of conduct that, if breached, would invite a system of sanctions.

Last month, President Joe Biden signed an executive order requiring safety assessments into the AI industry on issues such as consumer privacy and impact on the labor market.

Monday's agreement followed an AI Safety Summit held at Bletchley Park in the U.K. at the start of November at which, a previous document called the "Bletchley Declaration" was signed by 28 countries on the need to manage the safety risks posed by AI.

Other signatories to Monday's agreement included Germany, Italy, Poland, Australia and Singapore.

Secretary of Homeland Security Alejandro Mayorkas said: "The guidelines jointly issued today by CISA, NCSC, and our other international partners, provide a common sense path to designing, developing, deploying, and operating AI with cyber security at its core.

"By integrating 'secure by design' principles, these guidelines represent an historic agreement that developers must invest in, protecting customers at each step of a system's design and development."

Netflix's Remarkable Recovery Journey To Nearly $500 Per Share After Navigating A Steep 28% Drop In The Market

Benzinga News — Mon, 27 Nov 2023 17:47:24 -0500

Netflix Inc's (NFLX ) stock performance has attracted significant attention, mainly due to its recent price fluctuations.

The stock experienced a considerable downturn between July and October 2023, but has shown resilience by bouncing back.

During this period, the stock experienced a decline of 28%, causing concern among investors and market analysts.

However, the stock found support at the weekly 50 simple moving average, specifically around $360.

This support level played a crucial role in preventing further declines and acted as a catalyst for the stock's subsequent upward trend.

Netflix has recovered well, as it is currently up 38%, but has also significantly rebounded from a deep slump experienced between November 2021 and May 2022, where it saw a 76% decline.

From its lowest point during that time, there has been an impressive 191% surge to the upside.

The stock has experienced a 61% gain this year, including a notable 16% increase for November.

This strong upward trend indicates a bullish momentum. Yet, there are challenges on the horizon.

A crucial resistance level lies at $478, which holds significance as it was the lowest point in May 2021 and served as a turning point for the stock in July

The upcoming days and weeks will be pivotal in determining whether the stock can surpass this resistance level.

The stock faces a tough hurdle if it surpasses $478. Further ahead, it will confront psychological resistance at the significant milestone of $500.

This milestone is highly valued by investors and can greatly impact the current momentum. However, if Netflix manages to overcome this hurdle, it could lead to a significant surge. The next important resistance level to watch is the 2022 high of $609.

After the closing bell on Friday, November 24, the stock closed at $479.56, trading up by 0.30%.

Amazon's Partial Victory In Spain: Strike Averted, But Worker Unrest Simmers On

Benzinga News — Mon, 27 Nov 2023 17:47:12 -0500

Amazon.com Inc (AMZN ) has successfully negotiated an agreement with a portion of its workforce in Spain, effectively reducing the potential impact of a strike planned for Cyber Monday, one of the year's peak online shopping days.

Despite the agreement averting a full-scale walkout, around 5,000 Amazon delivery workers have decided to proceed with their protest for improved pay and working conditions, reported Reuters.

"The vast majority of our teams will continue to work as normal and there will be no impact on our operations for our customers," said Amazon.The company expressed pride in the wages, benefits, and safe working conditions it provides to its employees in Spain. CCOO, the largest union at the U.S. retailer in Spain, stated its intention to continue dialogue with Amazon to further improve pay and working conditions at the local unit.

The issue of working conditions at Amazon logistics centers is a topic of concern not just in Spain but across the Atlantic as well. Recently, worker groups and activists in various European countries, including Britain, Germany, France, and Italy, have been vocal in their protests against the U.S. e-commerce leader, particularly around Black Friday, another major sales event.

Amid the protests, Amazon has reassured that the delivery of Black Friday orders would remain reliable and timely.

Price Action: AMZN shares are up 1.4% at $148.83 at the time of publication Monday.

Broadcom-VMware Deal Closure Sends AVGO Stock To New Highs On 'Sizable Synergy Potential'

Benzinga News — Mon, 27 Nov 2023 17:46:58 -0500

China has finally approved Broadcom's (AVGO ) acquisition of VMware (VMW ), enabling the $61 billion acquisition to close.

The stock has been surging for the past year, up about 85%. Over the past month alone, the stock is up 17% and has created a new 52-week high of ~$1000 as it touched $999.87 on Nov. 20.

Broadcom is due to report its fourth-quarter (Q4) earnings on Dec. 7 after market close. Investors and analysts would be keenly looking forward to CEO Hock Tan and CFO Kirsten Spears' commentary on the VMware acquisition. The company's outlook, growth estimates, and future plans would be in focus.

Broadcom is a promising tech investment due to its robust semiconductor product portfolio and solid technical foundation. With consistent earnings beats, stringent expense control, and profitability, Broadcom is a compelling choice for investors.

Strategic investments in high-end processing and networking capabilities are paying off, especially as AI spending accelerates. Broadcom has navigated the worst in its smartphone business and sustained demand in high-end networking, making it a resilient choice for long-term investors.

VMware is 'highly complementary' to Broadcom

According to KeyBanc Capital Markets' analyst John Vinh, the benefits of the acquisition should begin to materialize "immediately."

KeyBanc believes VMware (VMW) is "highly complementary" to Broadcom's (AVGO) infrastructure software and semiconductor franchises and offers "sizable" synergy potentials. So, the acquisition should be accretive towards the company's EPS and gross margins.

It is also likely to contribute towards Broadcom's cash flow generation and diversification and its ability to operate across public, private, and hybrid clouds.

Vinh increased his price target to $1,200 from $1,000 following the transaction and kept his overweight rating on AVGO stock.

Market Update: November Rally Pauses After Holiday Weekend

Rachel Hemple — Mon, 27 Nov 2023 17:28:42 -0500

Stocks fell on Monday as market participants paused the month's strong rally coming off of the holiday weekend. The Dow Jones Industrial Average lost more than 50 points, while the S&P 500 Index and Nasdaq Composite fell about 0.2% and 0.1%, respectively.

Here's how the market settled on Monday:

S&P 500 Index (SPY ): -0.20% or -8.91 points to 4,550.43

Dow Jones Industrial Average (DIA ): -0.16% or -56.68 points to 35,333.47

Nasdaq Composite Index (QQQ ): -0.07% or -9.83 points to 14,241.02

In the news on Monday, Black Friday e-commerce spending rose 7.5% year-over-year to total a record $9.8 billion in the United States, according to Adobe Analytics. Notably, $79 million on the sales came from 'Buy Now, Pay Later' flexible loans, up 47% from last year, as consumers push the limits of their wallets to continue spending this holiday season.

"We've seen a very strategic consumer emerge over the past year where they're really trying to take advantage of these marquee days, so that they can maximize on discounts," said Vivek Pandya, a lead analyst at Adobe Digital Insights, in a statement.

E-commerce stocks like Amazon (AMZN ), Best Buy (BBY ), Shopify (SHOP ), as well as BNPL names like Affirm (AFRM ) rose on Monday as Cyber Monday sales are expected to total between $12 billion and $12.4 billion, according to Adobe Analytics.

Despite the session's weakness, the S&P 500 is up 7.5% for far this month, while the Dow has advanced nearly 7% and the Nasdaq has gained 10.8%.

In economic news, sales of new U.S. single-family homes totaled a seasonally adjusted annual rate of 679,000 in October, according to the Commerce Department's report on Monday, posting a 5.6% decline from September and coming in below analysts' estimates. Still, October's total represented a 17.7% increase year-over-year.

In single-stock news, iRobot (IRBT ) shares came under pressure on Monday after the European Commission said in a statement that it has notified Amazon of its "preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners." The e-commerce giant first announced plans to buy the robot vacuum cleaner in an all-cash deal valued at $1.7 billion.

KBW analyst Christopher McGratty warned in a Nov. 19 note that banks with between $80 billion and $120 billion in assets are at risk for potential acquisitions by a larger rival, CNBC reports on Monday, with his reasoning being due to this group having the lowest structural returns among firms with at least $10 billion in assets. McGratty added that Comerica Incorporated (CMA ), Zions Bancorporation (ZION ) and First Horizon (FHN ) may ultimately be purchased by a more profitable competitor.

Looking ahead, investors will react to Tuesday's consumer confidence report.

Shopify Enjoys Growth On Heels Of Black Friday: Here's What Analysts Have To Say

Benzinga News — Mon, 27 Nov 2023 12:44:24 -0500

Shopify Inc (SHOP ) shares climbed in early trading on Monday, after reporting blockbuster Black Friday results.

RBC Capital Markets analyst Paul Treiber maintained an Outperform rating and price target of $80.
Oppenheimer analyst Ken Wong reiterated an Outperform rating and price target of $80.
Needham analyst Anna Andreeva reaffirmed a Hold rating on the stock.

RBC Capital Markets: Shopify's Black Friday sales grew 22% year-on-year to a record high of $4.1 billion, Treiber said in a note. "Peak sales per minute were $4.2MM, an increase of 20% Y/Y, with an average cart price of $110.71, up 8%, he added.

"We believe Shopify's faster growth than the broader market stems from new merchant wins, the faster growth of e-commerce relative to retail sales, and market share gains at Shopify's merchants," the analyst further stated.

Oppenheimer: Shopify's Black Friday sales grew at a pace faster than the consensus estimates for the fourth quarter of around 17% year-on-year GMV (gross merchandise value) growth, Wong said. The pace was also "well ahead of '22 levels, he added.

"Our proprietary analysis of Shopify's Live Sales suggests that through Sunday, SHOP remains on course to deliver 20%+ growth, with only Monday remaining (~30% of BFCM sales),"

Needham: Shopify recorded 22% GMV growth on Black Friday, which "historically contributes only 5-10% of 4Q sales for a retailer," Andreeva said. The company's results implies "mid-teens GMV guide for 4Q23," she added.

"Clothing, personal care, and jewelry were the best performing categories, while global AOV in constant currency was up 5%; POS accelerated (+33% vs. +26% as of 3Q23) as SHOP continues to be successful in converting offline retailers," the analyst further wrote.

SHOP Price Action: Shares of Shopify had risen by 4.36% to $73.42 at the time of publication Monday.

US Housing Market Sends Mixed Signals: October New Home Sales Fall, Yet Building Permits Rise

Benzinga News — Mon, 27 Nov 2023 12:43:46 -0500

In October 2023, the U.S. housing market displayed mixed signals, with new single-family home sales experiencing a downturn, even as building permits showed signs of resilience.

Sales of new single-family homes take a dip: Sales of new single-family houses reached a seasonally adjusted annual rate of 679,000 in October, a 5.6% decrease from September's revised rate of 719,000. Despite this monthly downturn, the figures showed a significant 17.7% year-over-year increase from the October 2022 estimate of 577,000.

The median sales price for new houses sold in October stood at $409,300, with the average sales price hitting $487,000. The inventory of new houses available for sale was estimated at 439,000, on a seasonally adjusted basis.

Regionally, sales trends were uneven: the West and Midwest saw declines of 23.3% and 16.4%, respectively, while the Northeast and South witnessed increases of 13.2% and 2.1%. These variations highlight the differing economic landscapes across the U.S.

Building permits tick up: Contrasting the drop in home sales, building permits in October rose by 1.8% to a seasonally adjusted annual rate of 1.498 million, slightly above the preliminary estimate of 1.487 million. However, this figure remains below the 10-month peak of 1.541 million seen in August 2023.

The construction market continues to grapple with high interest rates and escalating construction costs. Notably, the volatile multi-segment saw a 4.1% increase in permits to 529,000, rebounding from September's low. Additionally, single-family authorizations rose modestly by 0.6% to 969,000.

Market reaction: In response to these mixed housing data, real estate stocks showed varied performance. The Real Estate Select Sector SPDR Fund (XLRE ) edged 0.4% higher at 11:15 a.m. in New York, whereas the SPDR S&P Homebuilders ETF (XHB ) witnessed a slight fall of 0.3%.

Notable gainers in the sector included Crown Castle Inc. (CCI ), SBA Communications Corporation (SBAC ), and American Tower Corporation (AMT ), with their shares rising 4.4%, 1.6%, and 1.3% respectively.

Macy's Thanksgiving Day Parade Hits All-Time Viewership Record: Here's How Many People Watched

Benzinga News — Mon, 27 Nov 2023 12:43:33 -0500

For many Americans, Thanksgiving Day traditions include family, food and football. The tradition of family sometimes includes watching the Macy's Thanksgiving Day Parade prior to the start of the annual National Football League games.

The 2023 parade set new viewership records.

What Happened: Some 28.5 million viewers tuned into NBC for the 2023 Macy's Thanksgiving Day Parade That's an increase of 6% from last year's parade.

The viewership set a record, according to The Hollywood Reporter.

The 2023 parade, which was the 97th in the event's history, is also the most-watched entertainment program of 2023 on linear television.

Comcast Corporation (CMCSA ) aired the annual Thanksgiving Day Parade on NBC and also streamed the event on its Peacock streaming platform.

According to the report, the parade had a 7.2 rating in the 18-49 age demographic, which was up 6% year-over-year.

The Macy's Thanksgiving Day Parade has been featured on television since 1948 with NBC televising the parade every year since 1953.

Why It's Important: The strong viewership could help Comcast and the companies that were featured in the annual event with floats, balloons and performances. Key sponsor Macy's Inc (M ) could also see a jump in brand awareness and marketing from the increased viewership.

NBC aired "The National Dog Show" after the parade. That telecast had 11.9 million viewers on NBC and Peacock, which was up from last year.

NBC and Peacock were also the home of the Primetime Thanksgiving day broadcast of the NFL matchup of the San Francisco 49ers and Seattle Seahawks.

The game was watched by nearly 27 million people, ranking as the second most watched Primetime Thanksgiving Day game ever. The game was also the most-streamed Thanksgiving Night Game ever.

NBC has now passed the 25 million viewer mark for four of its 2023 NFL games, which is the most at this point in the NFL season since 2015.

Cyber Monday Sales Could Hit $12 Billion: 5 Stocks Plays On E-Commerce Holiday Shopping Growth

Benzinga News — Mon, 27 Nov 2023 12:43:20 -0500

Cyber Monday is in full force, as retailers and e-commerce companies stand to benefit from shifts of consumers spending more time and money on online shopping versus at physical retailers.

Here's the data and the potential winners.

What Happened: A new report from Adobe calls for 2023 Cyber Monday sales to hit $12 billion to $12.4 billion. The report comes as consumers grip with high inflation and macroeconomic concerns as they complete their 2023 holiday shopping.

The report calls for Cyber Monday sales to increase 5.4% over last year.

Holiday spending from Nov. 1 to Nov. 24 was an estimated $86.6 billion, according to the report, which was up 4.8% year-over-year.

Cyber Monday has traditionally attracted online shoppers who wish to avoid holiday crowds.

"We are seeing very strong discounts," Adobe Digital Insights lead analyst Vivek Pandya said, as shared by Reuters. "You have consumers out there who are very price-sensitive and conscientious and who want to make sure they get the very best possible deal."

Cyber Monday follows Black Friday, when the stock market closes early. The day saw record online sales, which were up 7.5% year-over-year to $9.8 billion.

While Black Friday remains an important shopping holiday for retailers, the trends continue to shift to more consumers buying items online during the holiday shopping season.

"I do think the paradigm has changed around the in-store Black Friday experience, the long lines and things like that," Pandya told CNBC.

Pandya said discounts could weaken after Cyber Monday and with retailers working to control inventory, several hot ticket items could sell out before last-minute shoppers are able to grab them.

The Cyber Monday Winners: The 2023 holiday shopping season could see many winners among retail and e-commerce stocks.

E-commerce leader Amazon.com Inc (AMZN ) is expected to be among the winners of the 2023 holiday shopping season. The e-commerce retailer began celebrating Cyber Monday with deals on Saturday, likely capturing additional sales ahead of Monday's shopping event.

Retailer Walmart Inc (WMT ) is one of the largest retailers in the world and often a winner during the holiday shopping season. With consumers more conscious of prices and costs of gifts this holiday season, Walmart could be a standout winner.

Another potential winner from higher Cyber Monday and online shopping could be Affirm Holdings (AFRM ), a leading buy now, pay later company. According to Adobe, Buy Now Pay Later spending is expected to rise in 2023 and was up 7.5% on Black Friday.

Affirm shares are up 13% to $29.78 on Monday, hitting new 52-week highs. The 2023 holiday shopping season could lead to a resurgence in buy now, pay later thanks to higher ticket items and consumers being stretched thin due to inflation.

Among the items mentioned by Adobe as being hot products for the 2023 holiday shopping season include Roblox, a popular video game from Roblox Corporation (RBLX ). Roblox gift cards are expected to be another hot ticket item as a gift, with players of the game spending on in-app purchases frequently.

Shopify Inc (SHOP ) could stand to benefit from the increased e-commerce spending as a leader in the space and the company that powers many online stores. Shares of Shopify are up 5% to $73.73 on Monday, hitting new 52-week highs. Shopify President Harley Finkelstein said Monday that Shopify merchants had $4.1 billion in sales on Black Friday, which was up 22% year-over-year. Peak sales on Black Friday hit $4.2 million per minute for Shopify merchants according to Finkelstein.

Novo Nordisk's Flexible Pricing Approach: Push for Broader Access, Innovative Payments

Benzinga News — Mon, 27 Nov 2023 12:42:56 -0500

Novo Nordisk A/S (NVO ) is reportedly discussing with healthcare systems to introduce innovative pricing arrangements for its popular weight loss drug, Wegovy.

Addressing the ambitious objective, CEO Lars Jørgensen highlighted the willingness of Novo Nordisk to exhibit flexibility in pricing strategies, intending to facilitate the upfront adoption of medications, allowing for subsequent payments over an extended duration, the Financial Times noted.

Despite facing competition from Eli Lilly And Co's (LLY ) Zepbound, which plans to introduce a weight-loss drug priced 20% lower than Wegovy, Novo Nordisk remains firm on retaining Wegovy's current pricing.

However, Jørgensen emphasized their readiness to structure payment plans over time, questioning the rationale behind health systems making significant upfront payments without enjoying substantial future savings.

He advocated for "risk-based contracts," enabling healthcare providers to extend payment periods while witnessing long-term savings, such as a reduction in costly heart attack treatments, supported by recent trial data demonstrating Wegovy's ability to cut the risk of serious cardiac events by approximately 20%.

In the Financial Times report, Jørgensen acknowledged the challenge of persuading healthcare systems to commit to multi-year payment schemes. Novo Nordisk, similar to companies offering advanced therapies, grapples with adapting these payment models to suit varying healthcare systems, particularly in Europe, where funding typically operates on a year-to-year basis.

Recently, Novo Nordisk announced its plans to introduce its highly sought-after anti-obesity medication, Wegovy, in Japan on February 22, marking its inaugural entry into the Asian market despite facing supply/demand challenges.

Price Action: NVO shares are down 1.15% at $104.24 on the last check Monday.

Oil Majors: Are BP And Chevron Attractively Valued After Share Price Tumbles?

Benzinga News — Mon, 27 Nov 2023 12:11:32 -0500

Shares in BP, the U.K. oil giant, have fallen nearly 17% on the London Stock Exchange since their 2023 peak in February, a loss that might now be looking overcooked, according to analysts at RBC Capital Markets.

Compared with its U.S. peers ConocoPhillips (COP ), down 2.1% year-to-date and Exxon Mobil (XOM ), down 5.2% in 2023, BP has had a rough time. BP's NYSE-listed American Depository Receipts (BP ) have fared marginally better, but are still down 13.5% to $35.80, from a 2023 peak of $41.38.

So what's eating BP's share price performance and are the losses likely to end soon? Biraj Borkhataria, associate director of European research at RBC, said the current share price was undervalued, and raised RBC's price target from 550p to 625p ($6.93 to $7.88) and reiterated an Outperform rating.

Looking at BP's price chart over the year, its shares have peaked and troughed several times. Disappointing quarterly results, the loss of CEO Bernard Looney and, of course, falling oil prices, have all contributed to some huge volatility in the shares this year.

"Since announcing a market pleasing strategy update earlier in the year, BP's share price has lagged peers following two disappointing sets of results and the departure of its CEO," Borkhataria said.

More Clarity On Leadership Needed

He added: "The disappointing earnings do little to give investors confidence in BP's punchy 2025 and 2030 earnings targets, and lack of clarity on the management update has also weighed on shares, in our view."

Murray Auchincloss has remained as interim CEO since Looney's departure in September and, although many expect him to be confirmed in the role in the coming months, BP are reportedly also looking at external hires.

"This could add more uncertainty to the overall strategy, while also raising questions on board competence. We see the confirmation as important symbolically to show a steady ship," Borkhataria said.

Key Reasons To Be Positive

RBC listed three reasons why it had reiterated an Outperform rating and raised its target price.

BP intends to return at least 60% of its surplus free cash flow to shareholders via buybacks over time in addition to its dividend, and we expect to see surplus cash generation improve.
One of BP's key differentiators is its trading division, with the company generating significant profits in 2022
BP is undertaking a significant restructuring program and lower costs could help increase its earnings power

Is It Time To Buy Oil Majors

Oil majors' shares have largely underperformed this year given the backdrop of falling oil prices, and slowing demand. One company not mentioned so far is Chevron (CVX ), which has fared even worse than BP. Chevron shares have fallen 19.3% year-to-date.

Chevron announced last month a $53 billion deal to buy oil exploration and production company Hess, which exposes the shares more closely to the price of oil. Since that announcement, the shares have fallen 15.9%.

With their sharp price falls, both BP and Chevron could now be at attractive valuations to take advantage of dividend yields currently standing at 5% and 4.2% respectively.