Passport to Wall Street

Services Sector Shows Robust Growth — But Prices Are Still Way Too Hot

Benzinga News — Wed, 03 Dec 2025 13:48:46 -0500

The crucial U.S. services sector maintained its expansion in November, according to two key survey reports, reinforcing the economy's surprising resilience in the fourth quarter.

However, the data also highlighted lingering inflationary pressures and a softening labor market, setting a complex backdrop for Federal Reserve policy.

Services Sector Still Expands, But Prices Remain Hot

The ISM Services PMI rose to 52.6 in November, up from 52.4 in October and beating expectations for 52.1. It marked the index's ninth expansion reading of 2025 and its highest level in nine months.

Business activity firmed to 54.5, new orders remained in expansion at 52.9, and supplier deliveries slowed meaningfully, suggesting rising demand and persistent logistical friction.

"The continued expansion in both the Business Activity and New Orders indexes in November, and the highest Backlog of Orders index reading since February 2025 are positive signs of an emerging recovery for the services sector," said Steve Miller, chair of the ISM Services Business Survey Committee.

But challenges remain. "Tariffs and the government shutdown continue to impact both demand and costs," he added, highlighting slower deliveries tied to air traffic disruptions and tariff-related customs delays.

A separate reading from S&P Global signaled a solid but cooling services expansion. The S&P Global Services PMI slipped to 54.1, down from 54.8 in October and below the flash estimate of 55.0. Although still signaling expansion, it marked a five-month low.

On the inflation front, prices continued to rise. The ISM Prices Index edged down to 65.4%-its lowest since April 2025-but remains firmly in expansion territory, indicating significant price increases.

S&P Global noted input cost inflation accelerated to a six-month high, driven by higher labor costs and tariffs. Service providers are largely passing these costs to clients.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said the combined PMI readings point to roughly 2.5% annualized GDP growth in Q4. He cautioned that an acceleration in service-sector prices "could deter further rate cuts," even as business sentiment improved versus October.

Hiring Still Contracting - Even As Activity Expands

The ISM employment index rose slightly to 48.9, marking its sixth straight month in contraction.

While this is the highest reading since May, it underscores a critical divergence: demand is improving, but firms are still hesitant to add workers.

That picture is consistent with Wednesday's ADP National Employment Report, which showed private employers unexpectedly cut 32,000 jobs in November, reversing the 42,000 added in October and falling short of expectations for soft growth.

A Mixed Picture For The Fed

The latest Services PMI surveys offer a mixed picture for the Fed: activity is firming, demand is improving, and backlogs are rising - but hiring remains subdued, supply chains are slowing, and tariffs continue to lift prices.

Combined with the weak ADP report, the November data reinforce expectations for the Federal Reserve to stay focused on supporting growth. Markets are currently pricing a 90% probability of a December rate cut, with more easing expected in 2026.

The services sector, which accounts for roughly 70% of U.S. economic activity, continues to expand. But the mix of cooling labor demand, persistent price pressures, and policy uncertainty suggests the path forward may remain uneven as 2026 begins.

Netflix Stock Slides As Alarm Bells Ring Related To Potential HBO Max Bundle

Benzinga News — Wed, 03 Dec 2025 13:48:30 -0500

Netflix Inc (NFLX ) shares slipped on Wednesday following reports that the company has submitted a mostly cash bid for Warner Bros. Discovery Inc's (WBD ) studios and streaming division.

What Happened: According to Reuters, Netflix's proposal to acquire Warner Bros. Discovery's studios and streaming operations is aimed at cutting costs for consumers through bundled access. In recent talks, Netflix suggested that pairing its platform with HBO Max would deliver better value, people familiar with the negotiations said.

The strategy also seems to be aimed at putting regulators at ease with the situation. Netflix is portraying the merger as a means of price-cutting to deny the claim that the joining together of two large subscription services would result in a less diverse market for consumers or an increase in costs.

A successful deal would give Netflix access to Warner Bros' massive content library, including the full HBO catalog, the Warner Bros film archive and DC Comics titles. Nevertheless, people who are knowledgeable about the talks suggested that the merger would not lead to a noticeable increase in the number of Netflix users, as a great number of the current HBO Max subscribers are already users of Netflix.

Apart from the business implications, Netflix encounters obstacles of political nature. The Pentagon has condemned certain parts of its production while GOP politicians have indicated that the merger with Warner Bros. Discovery would result in excessive Netflix power and decreased diversity of choice for the customer.

NFLX Analysis

Currently, Netflix is trading 9.6% below its 50-day moving average and 8.9% below its 200-day moving average, suggesting a bearish trend in the short to medium term. The stock's position relative to these moving averages highlights a lack of upward momentum, which could deter potential buyers and signal caution among investors.

The 52-week range for Netflix shares has been between $82.11 and $134.11, indicating that the current price is closer to the lower end of this spectrum. This proximity to the lower range may attract bargain hunters, but it also raises concerns about the stock's ability to maintain upward momentum in the face of recent declines.

Volume on Wednesday was reported at 31.1 million shares, which is higher than the average trading volume for the stock at this point in the session. Elevated volume during a downtrend can indicate strong selling pressure, which may lead to further declines if bearish sentiment persists.

Support levels for Netflix can be identified around the recent low of $102.03, with additional support potentially found at the $100 psychological level. Resistance is likely to be encountered near the $106 mark, where the stock has struggled to maintain upward momentum.

NFLX Price Action: Netflix shares are trading down 5.20% at $103.66 at the time of publication on Wednesday, according to Benzinga Pro. Netflix is currently trading about 23% below 52-week highs.

Retail Shake-Up: Dollar Tree's Forecast Boost Shines Spotlight On Key ETFs

Benzinga News — Wed, 03 Dec 2025 13:48:16 -0500

Dollar Tree Inc's (DLTR ) latest quarterly earnings are not only a win for the discounter but also a timely reminder that not all retailers are equally vulnerable to tariff shocks.

The company outpaced quarterly estimates on both sales and profit, posting $4.75 billion in revenue and adjusted earnings of $1.21 per share, handily ahead of analyst forecasts. More importantly for those looking at its prospects, the retailer increased its full-year adjusted profit outlook to a range of $5.60-$5.80 per share, a show of margin confidence that seems almost contrarian in a tariff-clouded retail landscape.

Which begs the question for ETF investors: Which funds are poised to capture the gains from retailers that enjoy pricing flexibility, scale advantages and rapid merchandising agility? Dollar Tree's ability to expand its product assortment across varied price points would seem to be cushioning cost pressures-a strategy not every retailer can replicate as import costs fluctuate.

One way to capture this divergence is through State Street SPDR S&P Retail ETF (XRT ), the SPDR S&P Retail ETF, which offers equal-weight exposure to a broad basket of retailers, including mid-tier chains that have historically managed procurement uncertainty better than niche sellers. Its structure prevents the megacaps from overshadowing companies like Dollar Tree that may outperform in volatile cost cycles.

The VanEck Retail ETF (RTH ) gives off a different flavour, with a heavy weighting towards the large-format operators such as Amazon.com, Inc (AMZN ), Walmart Inc (WMT ) and Costco Wholesale Corp (COST ). These giants are characterised by sophisticated supply chains and negotiating leverage-the sort of traits that typically soften the blow from changing tariff regimes.

Investors looking for a more factor-driven approach might want to consider the First Trust Consumer Discretionary AlphaDEX Fund (FDX ), which screens for profitability and value metrics, characteristics that often correlate with better margin resilience. Those who prefer a defensive stance altogether may find shelter in the Vanguard Consumer Staples Index Fund ETF (VDC ) if tariff pressure stokes broader inflation.

Dollar Tree's raised forecast does not eliminate tariff uncertainty, but it puts into the spotlight a simple reality: more than ever, what truly matters is pricing power and assortment agility. ETFs tilted toward retailers that boast those strengths just may be the ones best positioned for 2025's next curveball.

Job Market Suddenly Slips In November, Locking In Expectations For Another Fed Cut

Benzinga News — Wed, 03 Dec 2025 13:46:31 -0500

U.S. private employers unexpectedly cut jobs in November, signaling fresh weakness in the labor market and reinforcing expectations for another Federal Reserve rate cut next week.

Private payrolls fell by 32,000, according to ADP's National Employment Report released Wednesday. It's a sharp reversal from the 42,000 jobs added in October and well below economists' expectations for a modest 5,000 gain.

ADP said job creation has been flat through the second half of 2025, while pay growth continues to cool. Hiring weakened across several major sectors, including manufacturing, professional and business services, information, and construction.

"Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment. And while November's slowdown was broad-based, it was led by a pullback among small businesses," said Dr. Nela Richardson, ADP's chief economist.

Where the Job Losses Hit

The goods-producing sector lost 19,000 jobs in November, including a 9,000 decline in construction and an 18,000 drop in manufacturing. Service providers shed 13,000 positions, with the sharpest cuts in professional and business services (down 26,000), information (down 20,000), and financial activities (down 9,000).

The regional breakdown showed wide disparities. The Northeast posted a steep 100,000-job decline, while the South lost 43,000. In contrast, the Midwest added 45,000 jobs and the West gained 67,000.

Employment trends also varied by business size. Small businesses saw the largest pullback with a loss of 120,000 jobs. Medium-sized firms added 51,000, and large employers increased their payrolls by 39,000.

Pay growth continued to slow in November. Job stayers saw year-over-year wage gains of 4.4%, down from 4.5% in October. Pay for job changers rose 6.3%, easing from 6.7% the previous month.

Markets Raise Bets On A December Rate Cut

The data strengthened expectations that the Federal Reserve will deliver a third straight rate cut at the Dec. 10 meeting.

The CME FedWatch tool now assigns an 89% probability of a 25-basis-point reduction. Futures also price a 25% chance of an additional cut at the late-January meeting.

U.S. equity futures traded slightly higher in the early hours.

The U.S. dollar index extended its losing streak to an eighth session, sliding to its weakest level since late October.

Treasury yields moved lower, with the 10-year dropping to 4.05%, a three-basis-point decline, while the iShares 20+ Year Treasury Bond ETF (TLT ) rose about 0.5% in premarket trading. Gold - tracked by the SPDR Gold Shares (GLD ) - remained steady, with prices hovering around $4,200 per ounce.

Nvidia CFO Says No 'Definitive Agreement' With OpenAI Yet, Dismisses Google TPU Threat

Benzinga News — Wed, 03 Dec 2025 13:46:16 -0500

Despite the initial announcement, the $100 billion potential deal between Nvidia Corp. (NVDA ) and OpenAI is yet to be finalized, the company's CFO revealed on Tuesday.

Deal With OpenAI Still In Early Stage

At the UBS Global Technology and AI Conference in Scottsdale on Tuesday, Nvidia's EVP and CFO, Colette Kress informed investors that the much-publicized partnership with OpenAI is still at the letter-of-intent stage, reported Fortune. Kress said that they still had not completed a "definitive agreement."

Still, Kress stressed that Nvidia's relationship with OpenAI remains solid and added that the company's current sales forecast isn't tied to the new megadeal.

For now, OpenAI continues to buy compute through cloud partners like Microsoft (MSFT ) and Oracle (ORCL ) instead of using the new direct arrangement outlined in the letter of intent. Kress stated that OpenAI "does want to go direct," but a definitive agreement is still being worked on.

OpenAI's Competitive And Financial Struggle

The $100 billion potential deal between Nvidia and OpenAI has been a topic of interest and concern in the tech industry. The Jensen-Huang-led company had highlighted the uncertainty surrounding this deal in its latest financial earnings report. However, in the earnings call, Huang showed optimism and called OpenAI a "once in a generation company."

Meanwhile, commentator Jim Cramer has predicted that OpenAI's future could be in jeopardy due to the recent advancements in AI technology, particularly Alphabet Inc.'s (GOOGL ) (GOOG )Google Gemini 3 AI model.

Later, Cramer elaborated on CNBC that, besides Google, OpenAI's main vulnerability is financial: unlike tech giants that can borrow cheaply, OpenAI is already deeply indebted. He said the fastest solution would be to settle the New York Times lawsuit to cut legal costs or have Microsoft boost its stake to strengthen the company's balance sheet.

Nvidia Unfazed By Competition

At the same time, Nvidia's dominance in the AI chip market has been under scrutiny. Alphabet has emerged as a strong competitor amid its focus on Tensor Processing Units (TPUs), with its shares outperforming Nvidia's. Over the past month, Alphabet stock surged 11.23%, while Nvidia stock plunged 12.29%, as per data from Benzinga Pro.

Nvidia's stock was up 0.86% on Tuesday, closing at $181.46.

However, when asked about the competitive dynamics, Kress says they were "Absolutely not" bothered by other chips. She stated that the focus is on supporting various model builders and enterprises with a full stack. According to Kress, Nvidia's strength lies not in any one chip but in its entire ecosystem, from hardware and CUDA to its expanding catalog of specialized software.

UK Watchdog Slams Nike For Misleading 'Sustainable' Claim In Online Ad

Benzinga News — Wed, 03 Dec 2025 13:46:10 -0500

Nike, Inc. (NKE ) is facing regulatory pressure after U.K. authorities ruled that one of its online ads included a misleading sustainability claim.

The decision puts the sportswear giant at the center of a growing crackdown on green marketing across the fashion industry.

The ruling, issued by the U.K.'s Advertising Standards Authority (ASA), is part of a broader investigation into environmental claims made by retailers.

The case stems from a paid Google (GOOG ) (GOOGL ) advertisement that ran in June 2025. The ad promoted "Nike Tennis Polo Shirts - ... Sustainable Materials," a phrase the regulator said could mislead consumers about the environmental attributes of the products.

ASA questioned whether the description implied a more comprehensive sustainability profile than Nike could substantiate.

Nike's defense

Nike Retail BV said the ad referred broadly to many of its offerings. It argued the phrase "sustainable materials" signaled that some, not all, products used recycled components.

The brand pointed out that Summer 2025 tennis polo shirts contained at least 75% recycled polyester.

Details about material composition were included in individual product listings for informed customers.

Regulator's verdict

ASA concluded the ad broke advertising rules. The body found the term "sustainable materials" lacked a clear definition.

It also determined that Nike had not provided evidence showing that the advertised products had no negative environmental impact over their full life cycle.

As a result, ASA ruled the ad misleading.

Implication for advertisers

The decision underscores stricter scrutiny of environmental claims in fashion advertising.

According to ASA's updated guidelines, any broad claim of sustainability must come with a clear explanation and robust evidence, especially when made across a brand's entire product line.

NKE Price Action: Nike shares were up 1.93% at $65.00 at the time of publication on Wednesday, according to Benzinga Pro data.

Black Friday Shopping To Decline 4%, First Drop In Four Years: Consumers Rein In 2025 Shopping

Benzinga News — Wed, 26 Nov 2025 14:21:46 -0500

The 2025 holiday shopping season is here with many retailers already having early sales ahead of Black Friday on Nov. 28. Retailers may need to continue discounting products throughout the holidays with consumers saying they plan to spend less during the Black Friday shopping weekend.

Black Friday Shopping Declines

Black Friday remains one of the key shopping days every year, with retailers offering discounted products, and many people off of work.

A new survey from Deloitte shows that consumers may spend less during the shopping weekend, which runs from Nov. 28 through Monday, Dec. 1 (aka Cyber Monday).

The survey found that consumers plan to spend an average of $622 over the weekend. That's down 4% year-over-year. This marks the first expected decline in the average spending in the Deloitte annual survey in four years.

One positive for retailers in the survey was the number of people who plan to shop this weekend, with 82% saying they plan to shop in 2025, up from 79% last year.

Among Gen Z consumers, the participation rate is even higher at 92%.

Gen Z and Millennial consumers plan to keep their spending the same as last year. Gen X shoppers report they will spend 9% less this weekend. Boomers are the group cutting spending the most, reporting 12% less expected to be spent this Black Friday weekend.

Broken down by salary ranges, consumers making less than $50,000 annually say they will spend 12% less this Black Friday weekend. Perhaps surprising to some, the group that makes $200,000 or more said they will spend 18% less than last year during this Black Friday weekend.

Consumers earning $100,000 to $199,000 per year are the only group observers expect to spend more. Black Friday shopping for this demographic will rise 5% year over year, the survey projects.

With many deals underway and consumers already beginning their shopping, the survey found that 47% of consumers said they have already seen higher prices during the 2025 holidays compared to last year. The poll found that 34% of consumers said retailers have offered lower discounts this year compared to 2024.

The poll also indicated two significant contributors to spending less during Black Friday this year:

A higher cost of living (69%) and
Financial constraints (43%).

Top categories for weekend shoppers in the survey:

Clothing (76%)
Electronics (56%)
Toys (52%) and
Gift cards (51%).

Consumers Look For Deals, Financing Help

With consumers seeing higher prices in stores and in some cases fewer discounts, they are on the lookout for the best deals available and are also turning to financing help.

The survey found that 38% of consumers said they would only buy items discounted by 50% or more during the Black Friday weekend.

Other shoppers are looking to cut costs elsewhere to afford more shopping on Black Friday. Fifty-six percent of Gen Z shoppers said they would cut back on their other expenses to be able to buy more during the shopping holiday.

Financing during Black Friday is expected to be in line with last year. Up to 64% of consumers say they would finance with credit cards or buy now, pay later this year.

"Value continues to be the centerpiece of the holiday season, and Black Friday-Cyber Monday promotions are an easy way for shoppers to capture those deals," Deloitte Consulting Retail Strategy Leader Brian McCarthy said.

Apple To Lead Smartphone Market For First Time In 14 Years: Thanks, iPhone 17

Benzinga News — Wed, 26 Nov 2025 14:21:29 -0500

Strong demand for the iPhone 17 has helped boost the price of Apple Inc. (AAPL ) stock in 2025. The new smartphone is also putting Apple back on top of a list it hasn't led since 2011.

Apple Top Smartphone Maker

Strong sales of the new iPhone 17 helped Apple beat analysts' fourth-quarter revenue and earnings per share estimates.

The strong sales have also set Apple on a path to retake the title of the world's largest smartphone maker.

New data from Counterpoint Research, shared by Bloomberg, shows Apple expected to post 10% year-over-year smartphone unit growth, compared with 4.6% from current market leader Samsung Electronics (SSNLF )(SSNGY ).

Counterpoint Research expects the smartphone market to grow 3.3% year over year in 2025. Apple is expected to have market share of 19.4%, topping Samsung.

Apple on top would be the first time the tech giant has led the smartphone market since 2011.

"Beyond the highly positive market reception for the iPhone 17 series, the key driver behind the upgraded shipment outlook lies in the replacement cycle reaching its inflection point," Counterpoint analyst Yang Wang said.

More iPhone Growth Ahead?

Since launching in September, the iPhone 17 has seen strong consumer demand worldwide, including in China, one of Apple's key markets.

Wang said the 358 million secondhand iPhones sold between 2023 and the second quarter of 2025 are likely to be upgraded to a new iPhone by users in the coming years.

Reports of a foldable iPhone from Apple in 2026 or later could also boost the tech giant's smartphone sales, according to Wang, along with the introduction of a budget-friendly iPhone 17e.

Counterpoint estimates that Apple will remain on top of the smartphone charts through 2029.

Apple CEO Tim Cook highlighted the strength of the iPhone 17 during the company's fourth-quarter earnings and conference call, while also providing a bullish note on the future.

"We are incredibly excited about the strength we're seeing across our products and services, and we expect the December quarter's revenue to be the best ever for the company and the best ever for iPhone," Cook said.

Apple Chief Financial Officer Kevin Parekh helped quantify what Cook meant when he said the first quarter could set records.

"From today we expect our December quarter total company revenue to grow by 10% to 12% year-over-year, which would be our best quarter ever," Parekh said.

Apple reported revenue of $124.30 billion in last year's first quarter, a new company record at the time. The estimated 10% to 12% growth would make this year's first quarter revenue total $136.73 billion to $139.22 billion.

Parekh said the first quarter would also be "our best iPhone quarter ever," with iPhone revenue expected to grow "double digits" year over year.

iPhone revenue was $69.14 billion in the first quarter of last year. Based on a 10% growth rate, the total would hit $76.06 billion or more in this year's first quarter.

For comparison, Apple just reported fourth-quarter iPhone revenue of $49.02 billion.

Apple Stock Hits New Highs

Apple stock is up 0.6% to $278.52 on Wednesday. Shares hit new all-time highs of $280.38 during the intraday trading session. Apple shares are now up 14.2% year-to-date in 2025.

Netflix Bets On Taiwan For Next Global Hit, Funding New 'Chinese-Language' Content

Benzinga News — Wed, 26 Nov 2025 14:21:13 -0500

Netflix Inc (NFLX ) sharpened its international content strategy this year, reinforcing Taiwan as a key driver of its next wave of global growth.

This year, Netflix expanded its partnership with Taipei's Golden Horse Film Festival - Taiwan's premier cinema event - to unlock more value from Chinese-language content and deepen its investment in local storytelling.

Netflix launched new talent-building and content-promotion initiatives, including an exclusive masterclass with award-winning K-drama director Kim Won-suk and a 500,000 New Taiwanese dollars inclusive storytelling award through the Golden Horse Film Project Promotion (FPP).

The company also leveraged the festival platform to premiere its upcoming Taiwanese series "Had I Not Seen The Sun: Part 1" and to spotlight top-tier titles like Noah Baumbach's "Jay Kelly."

Netflix further boosted regional visibility by supporting rising talent. Ma Shih-Yuan earned the Golden Horse Award for Best New Performer for "Left-Handed Girl," which Netflix will distribute internationally on November 28.

Maya Huang, Netflix's Director of Chinese-Language Content, said the company sees global momentum in Chinese-language entertainment and remains committed to long-term investment in Taiwan's creative industry to drive global audience growth.

To cultivate new IP and diverse creative voices, Netflix introduced the Netflix Diverse & Inclusive Storytelling Award at FPP.

The inaugural winner - Unseen Film Studio's "Human Era Animal Affairs Bureau" - received development funding and international recognition for a concept steeped in both culture and originality.

The $442 billion streaming giant gained over 17% in stock value year-to-date.

Netflix posted third-quarter revenue of $11.51 billion, up 17.2% year over year, driven by subscriber growth, higher prices, and rising ad sales-though revenue slightly missed Wall Street expectations. Earnings came in at $5.87 per share, below the Street's $6.97 consensus.

The company also reported its biggest quarter ever for advertising revenue and record U.S. and U.K. viewing share since late 2022. Breakout hits included "Happy Gilmore 2," "KPOP Demon Hunters," and the Canelo vs. Crawford live bout.

Looking ahead, Netflix expects fourth-quarter revenue of $11.96 billion, up 16.7% year over year, and guides EPS of $5.45, slightly above consensus. Full-year revenue is forecast to rise 16% to $45.1 billion.

Netflix said it will scale its ad business, test new AI-driven ad formats, and continue expanding franchises like "KPop Demon Hunters." It will also present a blockbuster fourth-quarter slate featuring "Stranger Things" and two NFL Christmas games.

NFLX Price Action: Netflix shares were up 0.57% at $105.00 premarket at the time of publication on Wednesday, according to Benzinga Pro data.

More Americans Are Turning To Thrift Shops To Buy Clothing, With Gen Z Leading The Way

Benzinga News — Wed, 26 Nov 2025 14:20:52 -0500

Gen Z is leading the thrift shop boom, and older generations are joining them, thanks to inflation and tariffs. The shift to thrift shopping can create new business opportunities that add more flexibility to people's budgets.

Buyers And Sellers Are Flocking To Thrift Clothing

The strong demand from buyers has attracted thrift clothing sellers who act as middlemen. These people look for deep discounts and resell the clothing on sites like eBay (EBAY ). The popularity of thrift clothing is poised to continue since younger generations are leading the charge.

Buyers like the idea of getting quality clothing at a discount, and many of them do not treat thrift clothing as a downgrade. It's a way to save money while getting clothing that might be more durable than new clothing.

"The stigma around secondhand clothes really died with the baby boomer generation," William Blair & Company Research Analyst Dylan Carden told CNBC.

The Industry Is Growing

ThredUp's (TDUP ) 13th Resale Report gave investors a glimpse into a growing industry as more people turn to used clothing. The report anticipates the global secondhand apparel market reaching $367 million by 2030. The U.S. secondhand apparel market is expected to reach $74 billion by 2029.

ThredUp has been a major beneficiary of the growing thrift shopping trend. Its revenue increased by 34% year-over-year in Q3, contributing to the stock rallying by more than 400% year-to-date. The stock had been sluggish for a few years leading up to the big surge, indicating that many investors and shoppers are just starting to pick up on the opportunity.

Inflation and tariffs can help secondhand clothing gain more market share, especially as people look for ways to shop in a sustainable manner. Buying secondhand clothing is less wasteful than buying new apparel. ThredUp currently has 1.57 million active buyers, after experiencing a record 54% year-over-year growth in new buyers. Its most recent quarter was the best quarter for new buyer acquisition in the company's history.

AI Makes Thrifting Even Easier

Artificial intelligence has disrupted many industries, so it's no surprise to see that this technology is making thrift shopping more accessible. AI makes it easier for sellers to list items, and it also helps buyers find clothing that matches their style.

"AI has the potential to really transform the way that people are shopping online right now," Scalable co-founder and Co-CEO Jasmine Enberg told CNBC.

Shoppers can find personalized thrift options with a single prompt. They will have to spend less time shopping before finding what they need, and less friction can support higher growth rates for the industry.

ThredUp CEO James Reinhart told CNBC that his company receives secondhand clothing in the U.S. and keeps all of its logistics within the country, leaving it unaffected by tariffs.

"We receive more than 100,000 pieces of clothing every day, so it's a business operating at some significant scale," he said.

Dell's AI Server Boom Shocked Goldman—And The Stock Could Rocket From Here

Benzinga News — Wed, 26 Nov 2025 14:20:38 -0500

Shares of Dell Technologies Inc. (DELL ) soared in premarket trading on Wednesday, up about 6%, after the company posted third-quarter earnings that beat expectations and raised its full-year forecast on the back of surging demand for AI servers and improved profitability in its infrastructure division.

Dell's strong results prompted Goldman Sachs to raise its 12-month price target from $175 to $185, implying a 47% surge from Tuesday's close.

Dell Beats Estimates And Hikes Forecasts On Explosive AI Server Growth

Dell's third-quarter earnings for fiscal 2026 delivered a beat-and-raise, driven by one clear catalyst: explosive demand for AI servers, particularly from second-tier cloud service providers and high-margin enterprise customers.

AI server orders soared to $12.3 billion, more than doubling from the $5.6 billion recorded in the previous quarter.

The headline figure was an earnings per share of $2.59, ahead of consensus estimates at $2.47. Revenue came in at $27 billion, roughly in line with expectations.

Dell also saw a clear jump in profitability. Dell's Infrastructure Solutions Group (ISG) EBIT margins improved to 12.4%, up from 8.8%.

Goldman Sachs analyst Michael Ng attributed the gains to "improved mix of higher margin customers," reduced one-time costs related to earlier rack deployments, and a shift toward more engineering-intensive GB300 rack designs.

For the full year, Dell upgraded its AI server shipment outlook to $25 billion, from a previous estimate of $20 billion. The ISG revenue outlook was also lifted to mid-to-high 30% year-over-year growth, up from mid-to-high 20%.

Consumer PCs Still A Drag, But Commercial Holds Up

While ISG delivered a strong beat, the Client Solutions Group (CSG) lagged. "CSG revenue and margins missed as consumer revenue weakness (-7% YoY) weighed on accelerating commercial revenue growth (+5% yoy)," Ng said.

Despite the weakness, Dell reaffirmed its full-year CSG margin framework of 5%-7% and maintained expectations for a flat PC market in 2026, helped by "continued refresh of aging devices and Windows-11 driven upgrades."

CSG revenue for the quarter was $12.5 billion, slightly below expectations. Margins came in at 6%, missing Goldman's estimate of 7.0%. Ng noted the drag came from "competitive pricing in consumer and education markets."

Storage and Traditional Servers Quietly Outperform

Dell also saw strength outside of AI, particularly in traditional servers and its proprietary storage solutions. "Traditional server demand grew double-digits year-over-year driven by continued data center modernization," Ng said.

Storage revenue of $4.0 billion exceeded expectations, and profitability improved sequentially due to a favorable product mix. Ng highlighted "double-digit demand growth across PowerStore, PowerMax, ObjectScale, and PowerFlex offerings."

Outlook Raised Across the Board

Looking ahead, Dell now expects fourth-quarter revenue of $31 billion to $32 billion, well above consensus estimates.

For the full fiscal year 2026, it raised revenue guidance to $111.2 billion to $112.2 billion and lifted its non-GAAP EPS range to $9.82-$10.02, from $9.30-$9.80.

Goldman Sachs expects Dell's AI-driven momentum to continue in 2026, supported by a "continued traditional server refresh" and a growing mix of Dell-IP storage offerings - all contributing to sustained margin expansion.

JPMorgan Warns Brent Crude Could Plunge To $30s By 2027 On Global Oversupply

Benzinga News — Wed, 26 Nov 2025 14:19:22 -0500

JPMorgan Chase & Co. (JPM ) has warned that a surge in global oil supply could trigger a dramatic crash in prices, potentially cutting Brent crude to the $30-per-barrel range by 2027.

Oil Prices May Collapse Amid Oversupply

JPMorgan analysts cited a growing imbalance between supply and demand as the main driver behind the expected price collapse, reported Business Insider.

"Demand, defying widespread bearish sentiment, has consistently exceeded expectations. Yet supply has outpaced these gains by more than twofold, with the bulk of growth coming from the Americas," said JPMorgan analyst Natasha Kaneva.

Most of the additional supply is expected from non-OPEC+ producers, particularly in the U.S., making oversupply a key concern.

The bank forecasts that Brent prices could slip below $60 in 2026, drop into the low $50s by the year's end, and average $42 in 2027, potentially sliding into the $30s if surpluses continue.

The projected surplus is roughly 2.8 million barrels per day in 2026 and 2.7 million in 2027, unless governments intervene to curb production.

At last check on Wednesday, Brent Crude Futures were unchanged at $62.15 per barrel, according to Benzinga Pro data.

Newsom Opposes Offshore Drilling As Chevron Projects Oil Growth

California Governor Gavin Newsom opposed the Trump administration's reported plans to expand offshore drilling in California, calling the proposals "dead on arrival" and highlighting bipartisan resistance.

Reports suggested six drilling rights auctions could take place off the California coast between 2027 and 2030.

Meanwhile, Chevron (CVX ) projected 2-3% annual output growth through 2030, highlighted higher-cost synergies from its Hess integration, and announced plans for an AI-driven data centre in West Texas by early 2026.

The company cut long-term capital spending to $18-$21 billion, planned $1-2 billion in annual asset sales, and targeted $3-4 billion in cost reductions by 2027, while forecasting over 10% annual earnings growth at $70 Brent and a cash-flow breakeven below $50 per barrel.

Apple Stock Breaks To All-Time Highs — Succession Clarity Unlocks New Chapter

Benzinga News — Wed, 26 Nov 2025 14:19:16 -0500

Apple Inc (AAPL ) didn't just brush off succession jitters - it set a new all-time high while doing it. At $280.38, the stock just punched into record territory, lifting Apple to a $4.12 trillion valuation and reminding Wall Street that it doesn't need a viral headset demo or ChatGPT clone to keep flexing.

And with JPMorgan's Samik Chatterjee flagging succession clarity and renewed product aggression under potential CEO-in-waiting John Ternus, investors are suddenly staring at a narrative shift: Apple's next era might be hardware-first and AI-supercharged.

Cook's Final Act? A Seamless Handoff And A Stock That Won't Quit

Chatterjee notes that succession has been a top investor fixation - and when you've posted ~15% EPS growth for over 15 years and taken a company from under $400B to $4T, expectations don't reset easily. But today's tape doesn't show fear - it shows confidence. AAPL is up 19% in the past year, 42% in six months, and 18% in 52 weeks - momentum traders aren't waiting for a transition blueprint.

Chatterjee expects Tim Cook to step into the Chairman role, smoothing optics and avoiding any "Apple identity crisis" moment. That continuity is exactly why the market is shrugging at succession chatter.

The Ternus Signal: Innovation Mode Re-Enabled

The press consensus - and Chatterjee's read - points to Ternus, Apple's hardware chief, as the likely successor. A product-first leader running iPhone, iPad, Mac, and AirPods - and the architect behind the Apple Silicon shift - signals something critical: Apple wants to win in AI through devices, not cloud religion.

In a world racing to invent the next form factor beyond smartphones, elevating a hardware engineer is not subtle.

China, AI, And The Trillion-Dollar Tailwinds

Cook doubled down on China investment this week, pushing back against geopolitical fatigue and keeping the world's most complex supply chain intact. Meanwhile, Apple's AI-linked initiatives sit within $2.9 trillion in private-sector AI commitments, positioning the company as a disciplined yet powerful player - doing AI its way rather than panic-copying rivals.

Add a breakout chart, succession stability, and a product renaissance setup, and suddenly the bull case doesn't feel stretched - it feels under-owned.

Investor Takeaway

This isn't a victory lap - it's a runway. At a fresh all-time high of $280.38, Apple just sent the message loud and clear: innovation, not nostalgia, defines the next chapter.

With a product-obsessed CEO candidate waiting in the wings and AI-era hardware battles about to heat up, Chatterjee says the street shouldn't fear the handoff - it should be positioning for it.

Apple isn't passing the torch. It's lighting a bigger one.

Nvidia Is A 'Generation Ahead,' But 'Delighted' For Google

Benzinga News — Tue, 25 Nov 2025 16:54:41 -0500

Nvidia Corp. (NVDA ), the leader in AI hardware, issued a masterclass in competitive positioning on Tuesday by simultaneously praising rival Google while boldly reaffirming its own technological supremacy.

In a social media post, Nvidia's Newsroom said that it is "delighted by Google's success" and acknowledges the "great advances in AI" made by Alphabet, Inc. (GOOG ) (GOOGL ), while at the same time noting that it remains a key supplier to Google.

"We're delighted by Google's success - they've made great advances in AI and we continue to supply to Google," Nvidia said.

However, the tone quickly shifts from partner to pioneer. Nvidia unequivocally asserts that it is "a generation ahead of the industry."

"NVIDIA is a generation ahead of the industry - it's the only platform that runs every AI model and does it everywhere computing is done.

NVIDIA offers greater performance, versatility, and fungibility than ASICs, which are designed for specific AI frameworks or functions," the company said.

The comparison, which pits Nvidia's flexible GPUs against Google's specialized tensor processing units (TPUs)-classified by Nvidia as application-specific integrated circuits (ASICs)-takes on new relevance in light of recent reports.

Social media giant Meta Platforms, Inc. (META ), currently one of Nvidia's largest GPU customers, is reportedly in talks to spend billions on Google's TPUs for its data centers.

The potential pivot by a major hyperscaler signals a genuine appetite for alternatives.

"We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs," a Google spokesperson said in a statement, according to CNBC. "We are committed to supporting both, as we have for years."

Nvidia's rebuttal is clear: TPUs may be cheaper for certain, narrow tasks, but Nvidia's platform remains the universal standard and the most flexible tool for the entire spectrum of global AI development and deployment.

Novo Nordisk Alzheimer's Miss Disappointing But Not Material, Analyst Says

Benzinga News — Tue, 25 Nov 2025 16:54:35 -0500

Novo Nordisk A/S (NVO ) stock fell on Monday after the company released topline results from the 2-year primary analysis of evoke and evoke+ phase 3 trials in early-stage symptomatic Alzheimer's disease.

The trials did not confirm the superiority of semaglutide versus placebo in the reduction of progression of Alzheimer's disease, as measured by the change in Clinical Dementia Rating - Sum of Boxes (CDR-SB) score compared to baseline.

The decision to pursue an Alzheimer's disease indication with semaglutide was based on real-world evidence studies, preclinical models, as well as post-hoc analyses from diabetes and obesity trials.

Analyst Reaction

Goldman Sachs noted that expectations heading into the readout were muted and that the Alzheimer's trial miss is disappointing but not significantly impactful.

"Our expectations into the trial were low, as we forecast 5% probability of c.$4bn in peak sales for semaglutide in Alzheimer's disease," the bank wrote on Monday.

Analyst James Quigley added that some investors feared broader downside risk tied to Novo Nordisk's medium-term growth trajectory. "Investor feedback following our original note suggested that there could be additional downside risk, beyond just removing Alzheimer's, particularly given concerns over the 2026 growth outlook; however, we would argue that consensus has already started to move down, particularly following recent announcements/discussion of headwinds," he wrote.

Ratings Updates

BMO Capital Markets kept a Market Perform rating on the stock but trimmed its price forecast from $50 to $46, reflecting a more conservative view post-data. HSBC also moved to the sidelines, downgrading Novo Nordisk from Buy to Hold on Monday.

Price Action: NVO stock was trading higher by 4.14% to $46.83 at last check Tuesday.

Tesla Sets A New Sales Record, But Not In America

Benzinga News — Tue, 25 Nov 2025 16:54:30 -0500

Electric vehicle leader Tesla Inc (TSLA ) has another record to add to its mantle after breaking records in the third quarter. The company has now beaten a 10-year-old record in a key country.

Norway has been one of the most electric vehicle-friendly countries for years, reaching 98% market share for EVs in some months.

In the country, Tesla has been one of the dominant players and regularly tops the list of top-selling EVs.

While Tesla has struggled with sales demand in parts of Europe throughout 2025, the automaker recently set a new record in Norway, as reported by Teslarati.

With 26,666 vehicles sold in Norway year-to-date, Tesla is now the record holder for the most vehicles sold by a brand in the country in a single year.

The sales break down as follows, with data shared by CarUp:

Model Y: 21,517
Model 3: 5,087
Model S: 30
Model X: 19
Cybertruck: 13

The record breaks a previous total of 26,572 vehicles sold by Volkswagen (VWAGY ) in the country back in 2016. Tesla still has more than a month to add to its record-breaking total as well.

Norway Demand Picks Up

As one of the most friendly electric vehicle countries in the world, it likely won't be a surprise to many of Tesla's new records.

Tesla dominates the country regularly and is one of the most popular brands in some parts of Europe, such as Norway.

After previously offering a tax exemption on the purchase of electric vehicles, Norway could be changing its ways. This could be leading to increased demand for electric cars in Norway ahead of the VAT (value-added tax) changes.

The change could add a reported 50,000 Norwegian Krone to the cost of a Tesla Model Y, or around $4,878.

The changes to tax exemptions will be closely monitored in the country to see whether EVs continue to lead the market in terms of market share.

AstraZeneca Doubles Down On US Biologics Buildout As Drug Discovery Partnership Grows

Benzinga News — Mon, 24 Nov 2025 14:30:45 -0500

Hong Kong-based Harbour BioMed announced on Sunday an update and advancement of its global strategic collaboration with AstraZeneca Plc (AZN ), initially established in March 2025.

Harbour BioMed is a biopharmaceutical company focused on the discovery and development of antibody therapeutics in immunology and oncology.

The collaboration aims to discover and develop next-generation biotherapeutics, including antibody-drug conjugates and T cell engagers.

Under the terms of the agreement, AstraZeneca will continue to nominate discovery programs to Harbour BioMed each year over the next four years, reflecting the continued progress of the partnership, and will retain the option to license these programs for further development.

Harbour BioMed will be eligible to receive option and option exercise fees, development and commercial milestone payments, plus tiered royalties on future net sales on such licensed programs.

The economic terms are consistent with the financial framework established in March 2025.

The collaboration included an option to license multiple programs utilizing Harbour BioMed's proprietary Harbour Mice fully human antibody technology platform in multiple therapeutic areas and a $105 million equity investment by AstraZeneca in Harbour BioMed.

The initial phase of the strategic collaboration will focus on ongoing research programs, with the potential for additional programs. In return, Harbour BioMed will receive an upfront payment, near-term milestone payments, and option exercise fees for additional programs, totaling $175 million, as well as up to $4.4 billion in additional development and commercial milestone payments, along with tiered royalties on future net sales.

The parties also have the option to include additional programs in the collaboration over the next five years, with the option to extend the terms of the agreement for an additional five years upon mutual agreement.

Furthermore, AstraZeneca will acquire 9.15% of the newly issued shares of Harbour BioMed.

AstraZeneca Announces Expansion in Maryland

On Friday, AstraZeneca shared its plans to invest $2 billion to expand its long-standing manufacturing footprint in Maryland.

The update includes a significant expansion of its flagship biologics manufacturing facility in Frederick and the construction of a new state-of-the-art facility in Gaithersburg for the development and clinical supply of innovative molecules to be used in clinical trials.

The investment will support 2,600 jobs across the two sites in the state, including the retention of local roles, construction activity, and the creation of 300 highly skilled jobs.

The Frederick facility currently produces biologics. The planned expansion will nearly double commercial manufacturing capacity, enabling increased supply of existing medicines and, for the first time, production across the company's rare disease portfolio.

It will create 200 highly skilled jobs and 900 construction roles and is expected to be operational in 2029.

In parallel, AstraZeneca will build a new clinical manufacturing facility to expand its footprint in Gaithersburg.

The facility, which will be fully operational by 2029, will create an additional 100 jobs, retain 400 roles, and support a further 1,000 construction-related jobs.

AZN Price Action: AstraZeneca stock is up 0.26% at $91.24 at publication on Monday.

Dell Q3 Preview: Stock Fell After 5 Of Last 6 Earnings Reports — Will Trend Continue?

Benzinga News — Mon, 24 Nov 2025 14:30:31 -0500

Growth in artificial intelligence PCs could be a key topic when Dell Technologies Inc (DELL ) reports third-quarter financial results Tuesday after market close.

Here are the earnings estimates, what experts are saying and key items to watch:

Earnings Estimates: Analysts expect Dell to report third-quarter revenue of $27.13 billion, up from $24.13 billion in last year's third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in seven of the past 10 quarters, including two straight quarters.

Analysts expect Dell to report third-quarter earnings per share of $2.47, up from $2.15 in the past year's third quarter.

The company has beaten analyst estimates for earnings per share in seven of the past 10 quarters, including in the most recently reported second quarter.

Guidance from the company calls for third-quarter revenue to be in a range of $26.5 billion and $27.5 billion and earnings per share to be in a range of $2.45 to $2.55.

What Experts Are Saying: Bank of America analyst Wamsi Mohan expects a mostly in-line quarter from Dell with concerns about margins and memory costs.

The analyst reiterated a Buy rating and lowered the price target from $170 to $160.

"The key focus for investors will be margin resilience heading into C26 given immense increase in memory costs," Mohan said.

The analyst said Del will likely reduce its operating expenses to help offset memory increases, a move that could keep guidance in check.

"We are in early stages of AI adoption and tailwinds from PC refresh and AI PCs."

Morgan Stanley analyst Erik Woodring recently double downgraded Dell shares from Overweight to Underweight while also lowering the price target from $144 to $110.

The analyst expressed concern over Dell's margins, which could impact the valuation of the company. Rising costs of DRAM and NAND memory could significantly impact the company, according to the analyst.

Freedom Capital Markets Chief Market Strategist Jay Woods said the double downgrade could be weighing on the stock ahead of earnings. The market expert also highlighted the recent moves from Dell stock after earnings reports.

"Shares have traded lower after five of the last six reports, including four consecutively," Woods said in a weekly newsletter. "The average move has been a decline of -9.1%."

Woods said Dell stock is at a "very interesting pivot point" technically.

Key Items to Watch: A recent report said Dell has postponed the launch of "Project Maverick," an AI infrastructure project. The company will likely comment on this or be asked about it during the earnings call.

The first phase set for February 2026 has been postponed to May 2026, according to the report.

With the company betting on the future success of AI PCs, investors and analysts will want to hear more about how growth in the area is progressing.

Second-quarter financial results for the company saw the company's Servers and Networking segment post revenue growth of 69% year-over-year, while Commercial Client revenue was up only 2% year-over-year. These are the two biggest segments for the company based on overall revenue.

"We've now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25," Dell Vice Chairman Jeff Clarke said after the second quarter results.

Clarke said demand for AI solutions was "exceptional" and helped boost the Servers and Networking segment.

The company raised its AI server shipment guidance for the fiscal year. Overall revenue and earnings per share guidance were also raised after second quarter results.

Investors and analysts will be closely watching to see if guidance is raised once again.

DELL Price Action: Dell stock is up 11.06% to $127.99 on Monday versus a 52-week trading range of $66.25 to $168.08. Dell shares are up 11.06% year-to-date in 2025.

Top Economist Warns Of 'Serious Affordability Crisis' Amid Trump Tariffs And Immigration Restrictions — 'Juicing' Inflation

Benzinga News — Mon, 24 Nov 2025 14:29:55 -0500

Mark Zandi, Chief Economist at Moody's Analytics, has issued a sharp warning regarding the trajectory of the U.S. economy, declaring that it is currently mired in a "serious affordability crisis."

Fiscal Policies Are Keeping Inflation Above Fed Targets

In an analysis on X, Zandi attributed stubbornly high consumer prices directly to specific policy choices, stating that higher tariffs and restrictive immigration measures are effectively "juicing" inflation.

According to Zandi, consumer price inflation is currently holding near 3%, well above the Federal Reserve's long-standing 2% target. He argues that this persistence is not an inevitable economic cycle but rather the result of recent interventions.

"It didn't have to be this way," Zandi wrote, noting that inflation was slowing earlier in the year and was originally on track to return to the Fed's target.

However, he asserts that a combination of aggressive tariffs, highly restrictive immigration policies, and broader de-globalization trends have "upended that outlook."

A Higher Inflation 'Dead-Ahead'

Data released by Moody's Analytics alongside the statement visualizes the cost of these policies.

The forecast compares the current economic baseline against a scenario featuring "no tariffs and typical immigration."

The divergence is stark: while the scenario without tariffs shows inflation dipping comfortably toward the Fed's target by 2026, the current baseline shows inflation spiking upward again in 2025 and remaining elevated through the following year.

Zandi warns that everything points to "even higher inflation dead-ahead."

Tariffs Effectively Impose Tax Rate On Low-Income Households

The economist painted a grim picture for the immediate future of the American consumer, particularly for those in lower income brackets.

Mirroring economist Justin Wolfers' views, Zandi noted that the burden of these macroeconomic shifts falls disproportionately on low- and middle-income households who are already facing high prices for necessities ranging from groceries to automobiles.

This "affordability crisis" is compounded by what Zandi describes as a job market struggling to create positions and slowing wage growth.

With the economic outlook shifting due to these protectionist measures, Zandi predicts that the "tough financial times" Americans are grappling with will continue for the "foreseeable future."

The futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Monday, after a positive close on Friday.

The SPDR S&P 500 ETF Trust (SPY ) and Invesco QQQ Trust ETF (QQQ ), which track the S&P 500 index and the Nasdaq 100 index, respectively, closed higher on Friday. The SPY was up 1.00% at $659.03, while the QQQ advanced 0.75% to $590.07, according to Benzinga Pro data.

A December Rate Cut Coming? Goldman Tells Investors To Buy The Dip

Benzinga News — Mon, 24 Nov 2025 14:29:40 -0500

Goldman Sachs is doubling down on its call for a December rate cut as labor market cracks widen, urging investors to stay overweight equities and buy market dips ahead of further policy easing in 2026.

On Monday, Goldman Sachs chief economist Jan Hatzius said the delayed September jobs report "may have sealed a 25bp cut at the December 9-10 FOMC meeting," especially after New York Fed President John Williams called for "a further adjustment in the near term."

After recent dovish signals from the Fed, traders are pricing in a 73% chance of a 25-basis-point cut in December, according to the CME FedWatch tool.

Goldman's Hatzius: December Cut Is Likely, More Easing in 2026

Hatzius said the labor market's underlying job growth trend has dropped to just 39,000 jobs per month, while college graduate unemployment is sharply up-especially among young workers, where the jobless rate has hit 8.5%.

Since college graduates account for over 40% of the labor force and most labor income, their job market deterioration could weigh significantly on consumer demand and increase the odds of further easing.

The firm expects the Fed to pause in January 2026, but to resume cuts in March and June, lowering the federal funds rate to a terminal range of 3-3.25%.

The outlook hinges on Goldman's baseline forecast for U.S. GDP growth to rebound to 2-2.5% in 2026, helped by "reduced tariff drag, tax cuts, and easier financial conditions."

On inflation, Hatzius said that "underlying inflation has fallen to near 2%," noting that the 2.8% core PCE rate in September includes distortions like "50-60bp from tariff pass-through and another 20bp from higher imputed financial services prices."

Goldman indicates that inflation will fall once tariff effects fade by mid-2026.

'Buy the Dip' Despite Volatility

Goldman Sachs' equity strategist Christian Mueller-Glissmann, said investors should brace for market setbacks through year-end, but emphasized this weakness is a buying opportunity.

The Invesco QQQ Trust (QQQ ) has fallen by more than 5% this month, on track for its worst month since March.

While noting that "equity drawdown risk has picked up recently," the analyst maintained a modestly pro-risk stance, saying, "With our friendly macro baseline into 2026, supported by policy easing, we would 'buy the dip.'"

Goldman is overweight equities for both 3-month and 12-month horizons and underweight credit.

Looking ahead, he expects equities to be supported by earnings growth, Fed easing without a recession, and global fiscal stimulus.

Goldman forecasts global real GDP growth of 2.8% in 2026 and global core inflation falling to 2.2%, helped by easing tariffs, shelter and wage pressures.

Goldman's strategists also addressed the AI boom, concluding that while valuations are high, they're not in bubble territory. "Our global equity strategy team does not think AI stocks are in a bubble," Mueller-Glissmann said, pointing out that "most are profitable and have strong balance sheets."

Novo Nordisk's Stock Slump Shows The GLP‑1 Trade's Side Effect: ETF Concentration Risk

Benzinga News — Mon, 24 Nov 2025 14:29:23 -0500

Novo Nordisk's (NVO ) nearly 11% pre-market drop on Monday and subsequent 9% dip at market open, in the aftermath of disappointing topline results from its evoke/evoke+ Alzheimer's trials, is more than a pipeline setback. It's a stress test for healthcare ETFs that have quietly become GLP-1 momentum vehicles. With two years of outperformance powered by Novo's Ozempic and Wegovy, and Eli Lilly's (LLY ) Mounjaro and Zepbound, many ETFs now live and die by the swings of just two companies: Novo and Eli Lilly.

Where ETF Exposure Is Heaviest

The Roundhill GLP-1 & Weight Loss ETF (OZEM ) sits squarely at the center of Monday's shock. The fund's top weights - Eli Lilly at 18.72% and Novo Nordisk at 13.23% - mean that more than one-third of the ETF is tied directly to the GLP-1 duopoly. OZEM has benefited enormously from the sector's runaway rally, but Novo's sudden decline shows the flip side: thematic funds concentrated in just a few dominant players can amplify volatility when one of them hits a speed bump. Still, given Lilly's broader revenue engines, OZEM may remain more resilient than its high concentration suggests.

The VanEck Pharmaceutical ETF (PPH ) is sensitive to Elli Lilly and Novo Nordisk, making the fund an accidental bet on the GLP-1 duopoly. GLP-1 names have been key return drivers in this ETF, and Monday's selloff underlines how inextricably linked the ETF's fate is to both Novo and Lilly.

iShares U.S. Pharmaceuticals ETF (IHE ): Lilly accounts for meaningful weight (27%) in the ETF, making the fund heavily concentrated in one stock. When Lilly stumbles, the impact ripples quickly. Not necessarily a bet on Novo, but this ETF highlights the problem of concentration risk.

Even broad sector funds, such as Health Care Select Sector SPDR Fund (XLV ), which are market-cap weighted, are not immune. Lilly's rocketing to a trillion-dollar market cap has given the stock oversized influence.

Why Lilly-Dominant ETFs May Be Safer Than They Look

Yet here's the kicker: ETFs heavy on Eli Lilly could end up in a position of strength.

Thanks to the extraordinary success of Mounjaro and Zepbound, which have generated $25 billion in the first nine months of 2025, Lilly became the first healthcare company in history to reach a $1 trillion valuation. But unlike Novo, Lilly is not a one-pillar company.

Its broader portfolio is firing on all cylinders:

Verzenio (oncology) and Taltz (immunology) continue robust growth.
Newer launches - Omvoh, Ebglyss, Jaypirca, Kisunla - meaningfully adding to revenues.
A spate of M&A activity focusing on ophthalmology, oncology, gene therapy, and cardiovascular disease is diversifying the future pipeline.
Also, late-stage pipeline candidates like orforglipron -ahead of oral GLP-1 and the tri-agonist retatrutide would indicate that Lilly is extending their lead in next-generation obesity treatments.

For OZEM, PPH, IHE, and XLV - among other ETFs - this multi-engine growth story means Lilly-heavy exposure remains relatively secure, even if the GLP-1 trade experiences short-term hiccups.

Meanwhile, Novo has to grapple with a more complex storyline:

Narrowed GLP-1 growth expectations.
Trial failures outside of its core obesity franchise.
Trump's push to lower "fat-loss drug" prices.
an FDA rejection of its multi-dose Wegovy device
Intensifying competition from Lilly, Viking Therapeutics, and Pfizer's $10 billion Metsera acquisition.
Even as it works on oral Wegovy and next-generation combinations like CagriSema and amycretin, Novo's expectations for revenue growth have moderated.

The Takeaway For ETF Holders

The GLP-1 boom has reshaped healthcare ETFs, supercharging returns but also amplifying risk. The stumble by Novo Nordisk does not in any way derail the obesity blockbuster trend, but it is a sharp reminder that concentration cuts both ways. For investors in pharma and healthcare ETFs, understanding who carries more Novo risk versus Lilly resilience may matter now more than ever.

FAA Warns Airlines Of Threats 'At All Altitudes' When Flying Over Venezuela, Urges Details Shared With The Agency 72 Hours Before Planned Flights

Benzinga News — Mon, 24 Nov 2025 14:28:44 -0500

The Federal Aviation Administration (FAA) has warned U.S. flight operators of potential risks when flying over the country of Venezuela as tensions rise between Washington and Caracas.

A Worsening Security Situation

In a note issued by the regulatory agency on Friday, the FAA warned airlines to exercise caution when flying through the country's airspace due to "the worsening security situation and heightened military activity" around Venezuela.

The FAA also urged airlines to provide an advance notice at least 72 hours before a planned flight with details. "Threats could pose a potential risk to aircraft at all altitudes," including the "arrival and departure phases" or "on the ground," the FAA said in the notice.

According to Reuters on Friday, American Airlines Group Inc. (AAL ) said that it had stopped overflying Venezuela in October, while Delta Airlines Inc. (DAL ) also said that it doesn't fly over the country anymore.

Trump's Venezuela Strategy, Chuck Schumer Demands Senate Briefing

The news comes as former national security advisor to President Donald Trump, John Bolton, said that Trump has "put the gun on the table" in talks with Venezuelan leader Nicolás Maduro, upping military pressure. The administration has targeted alleged Venezuelan drug boats carrying illegal drugs in international waters.

Meanwhile, Senate Minority Leader Chuck Schumer (D-NY) has urged Secretary of State Marco Rubio to brief the Senate on the situation with Venezuela by providing a classified briefing to lawmakers. "The last thing Americans want right now is another endless war," Schumer said.

Tesla Robotaxi Clears Major Certification In Nevada Paving Path To Commercial Operations: Report

Benzinga News — Mon, 24 Nov 2025 14:28:30 -0500

Tesla Inc. (TSLA ) has reportedly cleared a key Robotaxi hurdle, which could help the EV giant expand into Nevada.

Tesla Completes Nevada Self-Certification

The automaker has cleared the self-certification process for its Robotaxis, which indicates that it can deploy autonomous vehicles on the roads in the state, Business Insider reported on Friday.

Tesla and the Nevada DMV didn't immediately respond to Benzinga's request for comment.

Commercial operations for its Robotaxi would still require Tesla to receive regulatory approval from the Nevada Transportation Authority. The report suggests that Tesla has yet to submit its application to obtain a permit to operate Robotaxis commercially within the state.

Tesla's Robotaxi Push, Elon Musk Touts Nvidia Moment

The news comes as Tesla CEO Elon Musk, during the automaker's third-quarter earnings call last month, claimed that Tesla would expand the Robotaxi into Nevada, Arizona and Florida by the end of 2025.

However, the CEO scaled back on a major Robotaxi ambition of serving over half the U.S. population with Tesla autonomous cabs by the end of the year, with the automaker now targeting expanding into 8-10 major cities across the U.S.

Musk also recently said that Tesla would also have its Nvidia Corp (NVDA ) moment once it can reach Unsupervised Full Self-Driving operations at scale. Meanwhile, FSD has been under the radar of safety regulators, with NHTSA launching a probe into the technology following reports of traffic violations and accidents.

FSD Receives Praise, Elon Musk's 'Last' Puzzle Piece

Tesla's FSD V14 has garnered praise from experts like Ross Gerber, who termed the updates as a "big step up" from the technology's earlier version. Investor Gary Black, who is the managing director of the Future Fund LLC, also praised Tesla's FSD v14 for its improvements.

Musk, on the other hand, said that the FSD v14.3, the upcoming update to the self-driving technology, would be the "last big piece of the puzzle," hinting at the possibility that Tesla could finally achieve unsupervised autonomy.

Price Action: TSLA, despite sliding 1.05 to $391.01 at market close on Friday, surged 0.70% to $393.83 during after-hours trading, according to Benzinga Pro data.

Amazon Runs 900+ Data Centers To Fuel AI Demand: Report

Benzinga News — Mon, 24 Nov 2025 14:28:16 -0500

Amazon.com Inc.'s (AMZN ) Amazon Web Services quietly operates one of the world's biggest data-center empires - more than 900 facilities across 50+ countries - far larger and more dispersed than most investors realize.

By renting hundreds of confidential colocation sites and rapidly expanding to power soaring AI demand, AWS has built the global infrastructure backbone now fueling Amazon's record-breaking momentum.

Documents reviewed by Bloomberg and SourceMaterial show that Amazon controls more than 900 data center facilities in over 50 countries-far beyond its well-known campus hubs in Virginia and Oregon.

AWS doesn't rely solely on massive complexes it owns or leases long-term.

The cloud division also houses server racks in hundreds of colocation-or "colo"-sites, rented facilities that contributed around 20% of AWS's computing power in 2024.

Benzinga reached out to Amazon's investor relations for comment on the story and is awaiting a response.

These third-party sites vary from a few server racks to buildings where AWS dominates capacity in key markets such as Frankfurt and Tokyo. Amazon keeps the locations confidential to protect sensitive operations from competitors and security threats.

The documents indicate AWS ranks among the world's largest renters of colo space, giving it the flexibility to rapidly expand services worldwide.

AWS has accelerated its data center build-out as demand for cloud and AI services surges.

By early 2024, the company relied on 440+ colocation facilities and 220+ rented "edge" sites near major cities, improving data routing speed for customers.

Strategic Partnership With OpenAI

On November 3, Amazon shares jumped to a new all-time high after AWS announced a multi-year strategic partnership with OpenAI. The $38 billion deal positions AWS to run OpenAI's most advanced generative-AI workloads using its EC2 UltraServers powered by Nvidia Corp's (NVDA ) latest chips, a foundation AWS CEO Matt Garman said will support OpenAI's long-term ambitions.

The announcement builds on Amazon's strong third-quarter results. AWS posted 20% year-over-year revenue growth to $33 billion, its fastest pace since 2022.

Price Action: Amazon shares were trading higher by 1.24% to $223.43 premarket at last check Monday.

The Fed Is Split – And A December Rate Cut Moves Further Away

Benzinga News — Mon, 24 Nov 2025 14:04:00 -0500

Federal Reserve officials are sharply divided on the future path of interest rates, casting significant doubt on the likelihood of a December rate cut and prompting a notable shift in market expectations.

The minutes from the Federal Open Market Committee (FOMC) meeting on Oct. 28-29, 2025, released Wednesday, showed a clear split among participants after they decided to lower the target range for the federal funds rate to 3.75%-4.00%.

While many participants favored the October rate cut, some of them said they could have supported no change. The more crucial division emerged in discussions of future policy moves.

Fed Minutes Reveal Deep Divide, December Rate Cut Hopes Fade

Several participants assessed that a further lowering of the target range for the federal funds rate could well be appropriate in December if the economy evolved as they expected. This optimism, however, was countered as "many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year."

Furthermore, all participants agreed that monetary policy was not on a preset course and would be informed by a wide range of incoming data.

The probability of a December rate cut has significantly diminished following the release of the FOMC minutes.

Participants said core inflation remained elevated as disinflation in housing services had been more than offset by higher goods inflation, reflecting the effects of tariff increases earlier this year.

Market participants quickly adjusted their expectations.

The CME FedWatch tool now shows a 66% chance of interest rates holding steady at 3.75%-4.00% next month, with only a 34% chance of a $25$-basis-point cut.

This represents a major shift from the 50-50 chance priced in just before the minutes' release, and a complete reversal from last week, when investors were pricing in a 65% chance of a cut.

Financial Stability And AI Bubble Concerns

Officials voiced concerns about potential financial market instability, particularly surrounding the AI boom.

Several participants highlighted the possibility of a disorderly fall in stock prices, especially in the event of an abrupt reassessment of AI-related prospects.

The minutes noted that broad equity indexes continued to rise, boosted by large technology companies on market participants' optimism about AI.

This surge in valuations raised alarm bells.

"The staff judged that asset valuation pressures were elevated. For public equities, price-to-earnings ratios stood at the upper end of their historical distribution," the minutes said.

Market Reactions

Wall Street reacted by trimming the modest gains seen earlier in the session, reflecting investor disappointment over the reduced chance of a rate cut.

The Nasdaq 100 was only 0.1% higher to 24,520 points by 2:45 p.m. ET. In contrast, the broader S&P 500 was virtually flat.

The Dow Jones dropped 130 points, translating to a 0.3% decline to 45,960.

Nvidia Corp. (NVDA ) was 1.7% higher ahead of its earnings release after the close.

Coinbase Hires Former Goldman Sachs Partner To Manage Key Pillars Of 'Everything Exchange' Strategy

Benzinga News — Wed, 19 Nov 2025 15:35:57 -0500

Coinbase (COIN ) has hired former Goldman Sachs (GS ) Partner Liz Martin as it looks to expand beyond cryptocurrency trading.

Martin is joining Coinbase as vice president of product, overseeing its markets and derivatives divisions, the exchange said in a statement to Benzinga on Thursday.

"She will lead Coinbase's exchanges, drive the next phase of growth for the company's derivatives business, and manage its global markets team - all key pillars of Coinbase's 'Everything Exchange' strategy," the exchange said.

Martin left Goldman Sachs in March after 25 years at the company, where she led several initiatives across the company's markets business, including "product launches in credit cards, savings, and buy-now-pay-later offerings."

Coinbase said Martin's role would also include developing tokenized asset markets and bridging traditional finance and on-chain markets.

"I'm honored to join such a talented team that is setting the standard for how digital markets can operate: regulated, transparent, and accessible around the clock," Martin said on Nov. 12 on LinkedIn. "I'm inspired by the opportunity to help scale this business globally, deepen institutional participation, and continue building trust and innovation at the heart of the financial system."

Coinbase has been talking up its "everything exchange" vision since at least July.

"We're building an exchange for everything," Coinbase Head of Consumer & Business Product Max Branzburg told CNBC in July. "Everything you want to trade, in a one-stop shop, on-chain. ... We're bringing all assets on-chain - stocks, prediction markets, and more. We're building the foundations for a faster, more accessible, more global economy."

Coinbase has taken several steps towards this goal beyond hiring Martin. In August, the company acquired leading cryptocurrency options exchange Deribit. In September, it acqui-hired the founders of cryptocurrency yield-bearing platform Sensible. Last month, it fully launched its Coinbase One card, offering users up to 4% Bitcoin back. It also acquired community-based cryptocurrency fundraising platform Echo that same month.

"In five to 10 years, our goal is to be the number one financial services app in the world ... because we believe that crypto is eating financial services, and we are the number one crypto company," Coinbase CEO Brian Armstrong said during the company's Q1 earnings call in May.

Regular Walmart Shopper Shocked By 'Suddenly Outrageous' Prices Wonders If They're Price Gouging Because Of Tariffs Or A Looming Recession

Benzinga News — Wed, 19 Nov 2025 15:35:42 -0500

A longtime Walmart (WMT ) shopper took to Reddit recently to express disbelief over a wave of steep price increases on groceries and basic goods. In a viral post on r/Frugal, the person wrote, "Last week I went and noticed nearly all my cheap thrills are 25 to 50% higher," saying that ground beef had doubled to $8 a pound.

Prices Up, Patience Down

The person said she typically shops at Walmart for Great Value eggs, dairy, bread and other essentials. But this time, sticker shock hit hard. "Brand name shampoo/conditioner I purchased that were around $6 are now over $10," she wrote. A basic orbital sander she had bought for $15 a year ago was now priced at $63. Even cheap clothing was harder to come by, with basic sweatshirts now starting at $25.

In the post, the shopper openly wondered if Walmart was price gouging, writing that the "suddenly outrageous" prices made her question whether tariffs or a looming recession were to blame.

Many commenters shared her frustration, saying Walmart is no longer the affordable fallback it once was. "I used to buy a set of pajamas for about $10.98. Now they are $16.98 to $19.98," another person said. Others reported seeing price tags removed or replaced with digital tags, which some fear will allow for real-time price hikes.

The discussion quickly turned political and economic, with hundreds of people blaming tariffs imposed by President Donald Trump's administration for the rising costs. "Remember when everyone said 'Tariffs are a tax you'll pay on the products you buy'... well, here you go," one commenter wrote.

A Complex Chain Of Costs

In August, Walmart confirmed that tariff pressures are real and rising. "We've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters," CEO Doug McMillon said in the Q2 earnings call. Although the company tried to offset some of the impact, McMillon acknowledged they've had to raise prices on certain items while keeping others steady.

He added that higher-income shoppers are increasingly turning to Walmart for deals, but lower- and middle-income customers are switching or skipping items due to the price increases.

Multiple Reddit users pointed out that even U.S.-made products are tied to global supply chains. "We make products here where I work, from ingredients made here. The machines we use are manufactured in China... and now their parts are much more expensive," one Redditor said. Another added, "Tariffs also let domestic producers raise prices to match the new cost of imported products."

Others emphasized that labor shortages, inflation and shipping costs are also playing a role. "Food takes labor. Agriculture workers tend to be non-American. Elections have consequences," one person wrote. Another claimed their local Walmart had lost staff due to visa revocations: "We lost a bunch of people due to their visas being revoked."

Some insisted Walmart is simply seizing the moment. "Walmart knows what's coming and they're starting to squeeze as hard as they can right now," one person wrote. Another accused the company of greed: "Corporate profits over people every damned time."

Still, not everyone agreed the prices were unreasonable. "I still find them cheaper than our local Kroger affiliate," one person noted. Others pointed to Aldi, Costco and local ethnic markets as better alternatives for savings and quality.

Workarounds and Warnings

Many frugal shoppers are adjusting by switching to ground turkey, buying in bulk, or cooking in batches. Some recommended apps to track local sales or suggested freezing leftovers to avoid food waste. A few said they've cut down to two meals a day or now rely on neighbors for fresh eggs.

As one Redditor summed it up, "Even if the tariffs go away, prices won't go back down."

Nvidia Sell Signal? 3 Market Legends Dump The Stock

Benzinga News — Wed, 19 Nov 2025 15:35:26 -0500

A recent wave of exits by Wall Street heavyweights has sparked fears that NVIDIA Corp. (NVDA ) stock may have peaked. Three legendary investors-Michael Burry, SoftBank's Masayoshi Son and Peter Thiel-have made decisive moves against holding Nvidia.

Should retail investors proceed with caution? Here's a look at the moves:

Smart Money Flashing Warning Lights

Michael Burry: The "Big Short" fame investor's firm, Scion Asset Management, disclosed substantial put options against Nvidia in its Q3 filings. It was a direct bearish bet, profiting only if the stock price declined, suggesting Burry saw a large disconnect between Nvidia's valuation and reality.

SoftBank: Masayoshi Son's conglomerate completely exited its $5.8 billion Nvidia position in October 2025. While SoftBank was an early believer, the total liquidation allows them to pivot capital into "application layer" AI (like its massive OpenAI investment), hinting that the infrastructure boom in chips may be saturated.

Peter Thiel: Thiel's hedge fund, Thiel Macro, followed suit, closing out its entire Nvidia stake during Q3 2025. Thiel has publicly compared the current tech environment to the Dot-com bubble, viewing the AI hype cycle as overextended.

The Signal: Profit Taking or Crash?

While alarming, these exits aren't a guaranteed crash signal. "Smart money" often sells early to lock in gains after parabolic runs.

SoftBank, for instance, isn't leaving AI. It's just rotating from Nvidia's AI hardware to OpenAI's AI software.

However, when three distinct market titans - a value contrarian, a visionary speculator and a tech insider - all hit the "sell" button simultaneously, it could suggest the "easy money" phase of the Nvidia trade is over.

The Verdict:

The consensus among SoftBank, Thiel and Burry is that Nvidia was priced for perfection in a market that may be forming a bubble.

For investors, this doesn't necessarily mean "panic sell," but it is a loud signal to temper expectations and tighten risk management.

Home Depot Faces Slower Demand — But Analysts Still Call It A Long-Term Winner

Benzinga News — Wed, 19 Nov 2025 15:35:12 -0500

Shares of Home Depot Inc (HD ) were under pressure in early trading on Wednesday, after the company reported downbeat fiscal third-quarter sales.

Here are some key analyst takeaways:

BofA Securities analyst Robert Ohmes maintained a Buy rating, while reducing the price target from $450 to $430.
DA Davidson analyst Michael Baker reaffirmed a Buy rating, while cutting the price target from $475 to $430.
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating, while slashing the price target from $455 to $430.
Goldman Sachs analyst Kate McShane maintained a Buy rating, while lowering the price target from $444 to $406.

BofA Securities: HD reported adjusted earnings of $3.74 per share, missing Street expectations of $3.84 per share, Ohmes said in a note. Comp sales missed the consensus estimate, with total comps growth of 0.2% and U.S. comps growth of 0.1%, he added.

Comps were impacted primarily by "the lack of storm demand," the analyst stated. The price target has been lowered to reflect "weak housing turnover and incremental consumer uncertainty," he further wrote.

DA Davidson: Home Depot indicated that its quarterly sales miss and lowered full-year guidance were "primarily due to tougher comparisons against last year's storm season," Baker said. There is a downside to the consensus estimates due to the company's mix shifting toward its lower-margin wholesale businesses, he added.

While Home Depot continues to gain market share amid the soft macro environment, "a bottom in the housing recovery cycle has been pushed out from 2025," the analyst wrote.

Telsey Advisory Group: The uptick in demand witnessed during spring and summer was "short-lived," with demand decelerating as the third quarter progressed, Feldman said. He added, however, that underlying demand remained stable in both quarters, excluding storm sales.

Although most consumers are upgrading their purchases, large projects like kitchen, flooring, and bathroom remodels, remain under pressure, the analyst stated. "Overall, while the near-term is a bit weaker than previously anticipated, Home Depot should remain a long-term winner in retail, given its best-in-class execution, digital prowess, and pent-up maintenance and repair activity," he further wrote.

Goldman Sachs: Home Depot's comps growth decelerated as the quarter progressed, "with August at +2.2%, September at +0.3%, and October at -1.7%," McShane said. The company indicated that its expectation of a sequential improvement in demand in the back half of 2025 has not materialized, she added.

Management's updated full-year guidance reflects the company's third quarter performance and "continued pressure in the fourth quarter from the lack of storm activity, ongoing consumer uncertainty and housing pressure," the analyst further wrote.

HD Price Action: Home Depot shares were down 1.05% at $332.94 at the time of publication on Wednesday, according to Benzinga Pro data.

How Trump Saved TikTok—And Accidentally Saved Zuckerberg Too

Benzinga News — Wed, 19 Nov 2025 15:34:44 -0500

For once, Meta Platform Inc's (META ) CEO Mark Zuckerberg didn't need a moonshot AI reveal or a fresh metaverse pitch to win the biggest fight of the year. All he needed was TikTok - and a five-year-old political U-turn from President Donald Trump.

On Tuesday, Judge James Boasberg blew up the FTC's monopoly case against Meta, ruling that the company isn't the social-media supervillain regulators painted it to be. Not because Meta suddenly became humble, but because the FTC must prove Meta is a monopoly today - and today's biggest counterexample is the app Trump nearly banned.

The TikTok Twist Only Washington Could Script

Back in 2020, Trump pushed a "ban-or-sell" order that would have kicked TikTok out of the U.S. market. Then he reversed course, later saying banning TikTok would "help Facebook too much." That call kept TikTok alive - and this week, it became the backbone of Meta's courtroom victory.

Judge Boasberg leaned heavily on TikTok's survival, ruling that TikTok and YouTube offer "nearly identical" features to Facebook and Instagram. His blunt conclusion: "TikTok alone" is enough to defeat the FTC's monopoly argument.

If TikTok thrives, Meta cannot be a monopoly - a legal logic chain made possible entirely because Trump kept the app in the country.

What Meta Investors Should Really Take Away

For investors, this is the kind of regulatory twist that reshapes a stock narrative quietly. Meta just dodged the breakup threat that's shadowed it since 2020, removing the biggest structural risk to the business.

Yet the stock barely moved. Wall Street seems more focused on AI spending, global regulators and the sustained pressure from TikTok - the same competitor that saved Meta in court.

Tuesday's decision makes one thing crystal clear: Meta's biggest legal victory arrived courtesy of a political move Trump made to avoid helping Meta in the first place. In Washington's tech wars, even the unintended consequences can turn into billion-dollar lifelines.

Target Hit By Traffic, Profit Decline Heading Into Holiday Season

Benzinga News — Wed, 19 Nov 2025 15:34:37 -0500

Target Corporation (TGT ) stock slipped in early trading on Thursday as the retailer reported a third-quarter profit beat but posted underwhelming sales and trimmed its full-year earnings outlook heading into the crucial holiday stretch.

At the same time, the big-box chain is leaning into an attention-grabbing artificial intelligence push, wiring its aisles into ChatGPT through an expanded OpenAI partnership.

The company reported third-quarter adjusted earnings per share of $1.78, beating the analyst consensus estimate of $1.72.

Quarterly sales of $25.27 billion (down 1.5% year over year) missed the Street view of $25.337 billion. This reflected a merchandise sales decrease of 1.9%.

Expands AI Partnership With OpenAI

In a separate release, Target highlighted a deepening partnership with OpenAI, unveiling a new Target app inside ChatGPT that will offer curated recommendations, multi-item cart building, and checkout via Drive Up, Order Pickup, or shipping.

The retailer is already using ChatGPT Enterprise across its headquarters, with 18,000 employees leveraging the platform to speed up workflows and enhance support tools.

Target said OpenAI's models power internal solutions like Agent Assist, Store Companion and Gift Finder, enabling faster issue resolution and more personalized shopping. The company noted that AI is increasingly shaping supply-chain forecasting, store operations and digital experiences.

Metrics

Non-merchandise sales, however, rose nearly 18%, with strong double-digit gains in Roundel, memberships and marketplace.

Digital sales grew 2.4%, driven by over 35% growth in same-day delivery through Target Circle 360. Food & Beverage and Hardlines ("Fun 101") saw growth, while discretionary categories remained soft.

Comparable sales decreased 2.7% in the third quarter, reflecting a comparable store sales decline of 3.8%, partially offset by comparable digital sales growth of 2.4%.

Third quarter operating income, which includes the impact of non-recurring items, was $900 million, 18.9% lower than last year. The operating margin rate was 3.8% (including non-recurring items), compared with 4.6% in the year-ago period.

Third-quarter gross margin was 28.2%, slightly below last year's 28.3%, as higher markdowns more than offset benefits from advertising growth, lower shrink, and supply chain efficiencies.

The company's long-term debt and other borrowings expanded to $15.366 billion at the end of the third quarter, compared with $14.346 billion in the year-ago period.

Target exited the quarter with cash and equivalents worth $3.822 billion, higher than $3.433 billion in the year-ago period.

Inventory totaled $14.896 billion as of November 1, 2025.

Outlook

Target tightened its 2025 adjusted EPS outlook to $7.00-$8.00, down from $7.00-$9.00 and below the $7.36 consensus estimate.

The firm cut its 2025 GAAP EPS forecast to $7.70-$8.70 from $8.00-$10.00, compared with the $8.12 consensus estimate.

For the fourth quarter of 2025, the company said it is maintaining its expectation of a low-single-digit decline in sales.

"As we head into the all-important holiday season, our team is well-prepared and ready to serve our guests with the great products, value, and inspiration they expect from Target," said Michael Fiddelke, incoming Chief Executive Officer of Target.

The company said it remains focused on strengthening merchandising authority, enhancing the shopping experience, and expanding its use of technology to operate with greater speed and consistency, all aimed at supporting a return to sustainable growth.

Price Action: TGT shares were trading lower by 2.91% to $85.89 premarket at last check Thursday.

Dollar Tree's Upside Squeezed As Shoppers Seek Better Deals

Benzinga News — Thu, 13 Nov 2025 16:52:41 -0500

Dollar Tree, Inc. (DLTR ) is trading lower on Thursday.

Doubts are piling up about the retailer's ability to sustain momentum against rivals that appear to be sharpening their pricing and merchandising.

Goldman Sachs analyst Kate McShane downgraded Dollar Tree from Buy to Sell, trimming the price target from $133 to $103.

Analyst's Take

McShane cut the rating on Dollar Tree after a strong run by the company. She noted that management improved the chain's positioning through multiprice changes and better stores, boosting comps and margins.

However, McShane said that long-term margin gains remain possible, but the stock now reflects stronger fundamentals.

She added that upside looked tougher because of pressure on lower-income shoppers and weakening price perception.

McShane also cited her preference for discounters such as Ollie's Bargain Outlet Holdings, Inc. (OLLI ) and Five Below, Inc. (FIVE ), which show stronger value and merchandising trends.

The analyst highlighted that ahead of Investor Day, the team saw slipping price perception but kept a Buy due to relative strength. McShane believed the event could have been a catalyst for clearer margin plans after exiting Family Dollar. She also viewed the stock as attractively valued at the time.

Since then, she said price perception has worsened while the stock's valuation has rebounded.

McShane said their work shows the six retailers serve households averaging about $69,000 in annual income.

Roughly 53% of Dollar Tree shoppers fall below that level, she noted.

She said Family Dollar, Dollar General Corp (DG ) and Ollie's have the greatest tilt toward lower-income customers and the lowest average household incomes.

By contrast, Walmart Inc. (WMT ), Dollar Tree and Five Below drew relatively higher-income shoppers and had less exposure to the lowest-income group, she added.

Recent Trends

McShane noted Dollar Tree posted strong second-quarter same-store sales growth of 6.5%, topping Goldman and consensus expectations.

She added that quarter-to-date comps slowed to about 3.8% into October, when management preannounced at Investor Day.

McShane attributed the deceleration mainly to fewer meaningful seasonal events and consumer fatigue after higher back-to-school apparel costs.

She pointed out that items such as backpacks still sold well despite tighter spending elsewhere.

By comparison, she said Five Below guided third-quarter comparable sales growth of 5% to 7%, signaling confidence through Halloween and the holidays.

DLTR Price Action: Dollar Tree shares are trading lower by 3.22% to $102.77 at publication on Thursday.

Tech Stocks Wipe Out Over $700 Billion As Traders Flee AI Hype

Benzinga News — Thu, 13 Nov 2025 16:52:07 -0500

Tech stocks erased more than $700 billion in market value Thursday as rising skepticism over Fed rate cuts and looming energy bottlenecks in the AI sector triggered a sharp flight from risk.

The Nasdaq 100 - as tracked by the Invesco QQQ Trust (QQQ ) - fell 2.2% by late afternoon Thursday in its steepest drop since Oct. 10.

Nvidia Corp. (NVDA ) led the selloff, plunging 4.3% and losing a staggering $200 billion in market value. Other members of the so-called Magnificent Seven also took heavy hits: Tesla Inc. (TSLA ) tumbled 6.7%, Alphabet Inc. (GOOGL ) lost 2.5%, with both shaving off $100 billion in combined market cap.

Broadcom Inc. (AVGO ) dropped 7%, erasing $90 billion, while Amazon.com Inc. (AMZN ) and Microsoft Corp. (MSFT ) each shed around $70 billion.

Sentiment turned sharply risk-off, dragging CNN's Fear & Greed Index back into "extreme fear" territory, echoing the tariff-induced selloff earlier in April.

Fed Raises Inflation Risks: Rate Cut Odds Tumble

A chorus of Federal Reserve officials voiced fresh concerns over persistent inflation, dampening hopes for rate cuts at the December meeting.

Boston Fed President Susan Collins said there's a "high bar" for additional easing. Minneapolis Fed's Neel Kashkari noted inflation remains "too high at 3%," while San Francisco Fed's Mary Daly added that "we still have work to do" to bring inflation back to target.

Cleveland Fed's Beth Hammack said she hears from contacts that inflation is "moving in the wrong direction," while St. Louis Fed's Alberto Musalem said policy is near neutral and cautioned against over-accommodation.

Market odds of a 25 basis point cut at the June meeting fell to 51%, down from 65% just a day earlier, according to the CME FedWatch Tool.

AI Boom Faces Power Bottleneck

While tech stocks broadly declined, the AI sector was hit by growing fears of infrastructure bottlenecks-particularly around electricity supply and data center readiness.

AI cloud firm CoreWeave Inc. (CRWV ) spooked the market earlier this week when it warned of a fourth-quarter miss due to delays in data center deployment.

Goldman Sachs analyst Hongcen Wei flagged that looming U.S. power shortages could slow AI development, giving strategic advantages to overseas rivals such as China.

"Power infrastructure bottlenecks can be slow to solve," Wei said in a note on Thursday.

Jordi Visser of 22V Research described the moment as a "regime change" in AI investing:

"The constraint has moved from capital to concrete," he said, predicting 2026 would favor those who can convert contracts into working infrastructure while maintaining margins.

Veteran market watcher Ed Yardeni echoed these fears. "A lack of electricity and permitting - two very low-tech problems - might be the Achilles' heel of this otherwise high-tech industry," he said.

Yardeni highlighted that the AI revolution's insatiable energy needs are already pushing grid capacity and electricity prices higher.

Nationwide, electricity bills have jumped: the average U.S. household paid $142 per month in 2024, up 25% from $114 in 2014.

In Virginia, where a third of U.S. data centers are located, AI facilities now consume 26% of the state's electric supply, according to Pew Research.

Home Depot Could Hammer Out Gains With Pro Expansion, Analyst Says

Benzinga News — Thu, 13 Nov 2025 16:52:01 -0500

Home Depot Inc. (HD ) reports its third-quarter earnings on November 18 and is expected to follow with an update on its strategic priorities and long-term base-case outlook at its December Analyst Conference.

Bank of America analyst Robert F. Ohmes maintains his Buy rating on Home Depot, with a price forecast of $450.

Bank of America expects Home Depot to post a 1.3% comparable sales increase in the third quarter of 2026, slightly above the 1.0% reported in the previous quarter. Noting that the Bloomberg card data show a 1.6% rise in observed sales supports their view.

Quarter-to-date trends were strong in August but softened in October as the company lapped last year's hurricane-related sales benefit, analysts noted.

The analyst stated that Home Depot's full-year forecast implies a slight sequential comp improvement in the second half, compared with the first half's 0.9% gain, helped by fading FX headwinds and selective price increases to offset tariff pressure.

The bank also highlighted Home Depot's expanding Pro capabilities following SRS Distribution's September 4 completion of its acquisition of Gypsum Management & Supply (GMS) for an implied enterprise value of $5.5 billion.

The transaction adds drywall, steel framing, and ceilings as a fourth vertical serving complex Pro customers. GMS will not enter the comp base until next year, though total company comp in the third quarter will include SRS.

The bank views trade credit expansion, improved order management and increased in-store credit availability as meaningful levers to deepen penetration with the roughly 9 million Pros Home Depot serves.

The bank also said Home Depot remains well-positioned in a choppy macro backdrop, with structural housing-related tailwinds intact. While deferrals in large-ticket projects persist amid high mortgage rates and weak existing-home sales turnover, the bank sees continued share gains as the retailer expands delivery, fulfillment, and Pro-focused services.

The firm maintains its Buy rating and $450 price forecast, valuing the stock at 27-28 times its fiscal 2027 / calendar 2026 EPS estimate.

For full-year 2026, the firm estimates revenue of $163.91 billion and EPS of $14.95, both essentially matching consensus. Looking ahead to fiscal 2027, the analyst projects revenue to rise to $170.68 billion and EPS to $16.25.

Price Action: HD shares were trading lower by 0.22% to $370.33 at last check Thursday.

Disney Shows Q4 Streaming Strength: Kimmel Suspension Impact, Growth Will Be Less Obvious Going Forward

Benzinga News — Thu, 13 Nov 2025 16:50:43 -0500

The Walt Disney Company (DIS ) reported growth of its streaming subscriber base in the fourth quarter, along with substantial operating income for the segment.

Here's why the quarterly figures were important for investors, who will get fewer data points moving forward.

The media giant reported 131.6 million Disney+ Core paid subscribers at the end of the fourth quarter, up 12.4 million from the previous quarter. The company highlighted the streaming success during its earnings call.

"Our streaming business had another quarter of profit growth, with operating income up 39% in Q4 for the full year, we hit $1.3 billion in operating income, up $1.2 billion from last year and $300 million ahead of our original guidance," Disney CEO Bob Iger said.

Iger stressed the importance of the operating income growth, reminding investors that the company's DTC business had a $4 billion loss three years ago.

Revenue for the DTC segment was $6.25 billion in the quarter, flat year over year.

Metrics like revenue and operating income will become increasingly crucial for Disney and its investors moving forward. The company is taking a page out of the Netflix Inc's (NFLX ) playbook and will no longer report subscriber figures.

Netflix reported its first quarter results in April and highlighted that subscriber figures were higher. Advertising revenue also increased, contributing to overall revenue growth. The company broke out revenue by regional segment and provided quarterly revenue guidance.

What's Next

It will be interesting to see what kind of commentary Disney provides on its DTC streaming segment without giving specific subscriber figures.

Investors and analysts may have to read between the lines on commentary and determine what it means for subscribers.

One area that likely won't be as straightforward anymore is how many subscribers Disney lost due to the suspension of Jimmy Kimmel. The event triggered searches for "cancel Disney plus" and "cancel Hulu" to hit new highs with many believing subscriber losses would increase.

A report said Disney lost 1.7 million Disney+ subscribers between Sept. 17 and Sept. 23, which is 436% above their baseline churn.

Since the fourth quarter ended in September, anyone who cancelled their subscription but had already paid through the end of September was likely counted as a subscriber. They only became an ex-subscriber when their monthly renewal came up in October.

This means the impact of the Kimmel suspension could be fully reflected in Disney's first quarter. With the company not reporting subscriber numbers, the impact could be less obvious.

Disney also raised prices for Disney+ in October. The company is increasing the ad-supported plan to $11.99 and the ad-free plan to $17.99.

With subscribers paying more in the first quarter, streaming revenue is likely to rise. This could lighten the subscriber impact than in a typical quarter.

The DTC segment having higher revenue in the first quarter compared to the fourth quarter could be due to a number of factors and left for investors and analysts to interpret what the numbers and comments mean.

Disney Shares Fall

Disney stock is down 7.9% to $107.43 on Thursday versus a 52-week trading range of $80.10 to $124.69. Disney shares are now down 3% year-to-date in 2025.

Flutter, DraftKings Prediction Markets Could Have Different Rules: How The Sports Betting Giants Approach With Caution

Benzinga News — Thu, 13 Nov 2025 16:50:09 -0500

Both Flutter Entertainment (FLUT ) and DraftKings Inc (DKNG ) are ready to take on the competition of prediction markets.

Or is it already too late?

Flutter Announces Prediction Market

Flutter reported mixed third-quarter financial results on Wednesday. Its revenue missed analyst estimates, while earnings per share came in ahead of estimates.

Along with financial results, Flutter also announced the upcoming launch of a new app: FanDuel Predicts. The app offers event contracts on "global benchmarks and economic indicators" and sports outcomes in some states.

The launch is being done in partnership with CME Group (CME ), the world's largest derivatives marketplace.

A launch is expected in December with a new standalone mobile app for the prediction markets unit.

Bank of America Securities analyst Shaun C. Kelley is concerned about the large amount of spending Flutter plans to make going forward.

"We think the confluence of OSB competition, hold volatility and step function investment in PMs (prediction markets) validate our recent downgrade," Kelley said.

The analyst recently downgraded both DraftKings and Flutter for several reasons, including the competition from prediction markets. Kelley maintained a Neutral rating with a $250 price target on Flutter after earnings.

Kelley said the market for online sports betting companies could be tough to grow profitability. As a result, the large spending on its prediction market launch is a potential headwind.

Flutter expects to spend $45 million in the fourth quarter and between $200 million to $300 million in 2026. That's higher than the analyst's original expectations.

"We think this step-up investment could be warranted given the TAM, but also confirms we are entering an investment phase."

Kelley said there is still the major risk of more prediction markets coming, including Polymarket re-entering the U.S. market.

Cautious Approach

Unlike other prediction markets that offer event contracts on politics, financials, entertainment and sports in every state, Flutter and DraftKings are looking to roll things out cautiously.

The caution comes with several states warning sports betting companies about prediction markets and states that have legal sports betting already fighting against prediction market companies.

Flutter said its FanDuel Predicts app will offer sports outcome contracts only in "non-online sports betting states."

By doing this, Flutter is trying not to provoke things in states where it already has a license and is operating online sports betting. In states where online betting isn't legal, customers "not on tribal lands" will be able to trade sports contracts.

Among the potential event contracts being offered by FanDuel are prices of oil and gas, gold and cryptocurrencies along with economic indicators like GDP and CPI.

DraftKings also plans on launching a prediction market unit called DraftKings Prediction in the coming months. The company is also following a cautious approach.

DraftKings CEO Jason Robins said the company won't have their prediction market available to everyone.

"We aren't going to be in every state with sports, we won't even be in every state with non-sports, and I think we have a good sense of where the sensitivity areas are," Robins said during the company's earnings call.

Robins said prediction markets might not make a large impact in the states that already have online sports betting.

The current approach from both Flutter and DraftKings targets prediction markets mainly in the states that don't have online sports betting, hoping to not upset existing state regulation relationships.

This comes as the state of New York has a bill on the table, known as the ORACLE Act (Oversight and Regulation of Activity for Contracts Linked to Events Act) that could regulate prediction markets in the state and also limit what types of markets can be offered.

Under the act, event contracts on "catastrophic" events like wars, disasters and deaths would not be allowed, while athletic events would also not be allowed, giving a potential edge to the online sports betting companies that operate in the state.

For DraftKings and Flutter, the companies faced the decision of waiting too long to enter prediction markets and get left behind or make a move and potentially upset current relationships. The company's are leaning into number one, while walking a tightrope to not enter too far into number two.

Market Update: Dow Closes Above 48,000 First Time on U.S. Government Reopening Optimism

Rachel Hemple — Wed, 12 Nov 2025 16:22:46 -0500

The Dow Jones Industrial Average (DIA ) extended its record-setting rally on Wednesday as market participants grew more optimistic that the U.S. government shutdown could end this week.

The blue-chip index climbed nearly 330 points to close at a new high of 48,255.00 -- its first ever above 48,000 -- driven higher by record gains from Goldman Sachs (GS ), JPMorgan (JPM ) and American Express (AXP ). The Dow rallied over 550 points in the previous session as investors rotated out of artificial intelligence names due to rising volatility.

The broader market S&P 500 Index (SPY ) had muted gains on Wednesday, ticking above the flatline to settle at 6,850.92, while the Nasdaq Composite (QQQ ) lost nearly 0.3% to end the day at 23,406.45.

The House of Representatives is set to vote Wednesday on the deal passed by the Senate on Monday that could end the longest government shutdown in U.S. history. However, it may take some time for federal operations to return to previous levels, with the White House stating on Wednesday that October's economic reports on the labor market and inflation would "likely never" be released as agencies halted collecting data.

"All of the economic data released will be permanently impaired, leaving our policymakers at the Fed, flying blind at a critical period," White House press secretary Karoline Leavitt told reporters on Wednesday.

Elsewhere, New York Federal Reserve President John Williams said in a speech on Wednesday that policymakers could restart the central bank's bond purchases as pandemic-era liquidity wanes. Williams said the Fed will end its quantitative tightening strategy and will determine the next phase of its balance sheet management once it reached an "ample" level of U.S. Treasuries and mortgage-back securities.

"It will then be time to begin the process of gradual purchases of assets that will maintain an ample level of reserves as the Fed's other liabilities grow and underlying demand for reserves increases over time," Williams said, adding that this is "the next natural stage" for the Fed's strategy and will not be a change in monetary policy.

On Thursday, investors will turn their attention towards a series of Fedspeak throughout the session. Key earnings reports for the day also include Disney (DIS ), Cisco Systems (CSCO ), Flutter Entertainment (FLUT ), and JD.Com (JD ).

AMD Sets Ambitious AI, Earnings Goals Through 2030

Benzinga News — Wed, 12 Nov 2025 15:39:56 -0500

Advanced Micro Devices, Inc's (AMD ) 2025 Financial Analyst Day in New York outlined aggressive growth targets powered by soaring demand for artificial intelligence graphics processing units (GPUs) and Datacenter central processing units (CPUs).

The chip designer impressed Wall Street with ambitious projections of over 35% long-term revenue growth and a $1 trillion AI market opportunity.

Goldman Sachs analyst James Schneider maintained a Neutral rating on AMD with a price forecast of $210.
JPMorgan analyst Harlan Sur reiterated a Neutral rating on AMD with a price forecast of $270.
Bank of America Securities analyst Vivek Arya maintained a Buy rating on AMD with a price forecast of $300.

Goldman Sachs: Schneider rerated following the company's 2025 analyst day. AMD's upbeat message and long-term financial targets are above Wall Street expectations, driven by Datacenter GPUs and CPUs.

Targets appear achievable, Schneider says. They rely heavily on gross margin and operating leverage and on scaling through key customers. OpenAI, for example, is a major expected revenue driver. While AMD makes strong progress on its Datacenter GPU roadmap and continues to build momentum in CPUs, the stock's upside is limited until there's clearer visibility on the OpenAI-related revenue stream.

Key highlights from the event included AMD's "AI Everywhere" strategy, with plans to expand across Datacenter, Client, and Edge markets and grow its semi-custom solutions for diverse end markets. AMD projected long-term revenue growth above 35%, led by over 60% Datacenter growth and more than 80% CAGR in AI revenue, while targeting gross margins of 55-58%, operating margins above 35%, and EPS around $20-all topping consensus estimates.

Schneider projected fiscal 2025 revenue of $34.04 billion and EPS of $2.80.

AMD also updated its 2030 Datacenter total addressable market (TAM) to ~$1 trillion and reported strong enterprise momentum, including 2 times year-over-year growth in EPYC server consumption and PC platform wins with Dell, HP, Lenovo, and Asus. Schneider highlighted AMD's progress in software, noting a 10 times rise in ROCm downloads and expanded AI developer programs.

Finally, AMD previewed its MI450 AI accelerator, expected in the second half of 2026, which it claims will match Nvidia's Vera Rubin with 50% higher memory capacity and bandwidth.

JMorgan: Sur reiterated confidence in AMD's strong competitive positioning and AI-driven growth potential following the event.

The analyst's model sees AMD achieving 55-58% gross margins and over 35% operating margins, up from the firm's 2025 estimates of roughly 52% and 22%, respectively-showing clear operating leverage.

Sur expects AMD's Data Center revenue to grow sharply as AI GPUs (MI450/Helios) ramp up and CPU share rises from 40% to over 50% within five years. The analyst sees potential earnings power of $11-$12 by 2027.

Bank of America Securities: Arya said double-digit market share target, AMD could generate over $100 billion in annual data center revenue, up from about $16 billion currently.

The analyst noted that AMD has visibility into new multi-gigawatt AI customer deployments starting with the MI450 generation in the second half of 2026, and flagged the AWS re:Invent event in December as a potential catalyst for announcements. He said AMD expects its core businesses-Client, Gaming, and Embedded-to grow at over 10% CAGR over the next three to five years, driving $25-$30+ in EPS power by 2030.

Arya noted AMD's robust AI roadmap and annual product cadence position it to achieve a 10%+ AI market share in one of the fastest-growing semiconductor segments.

Price Action: AMD stock was trading higher by 10.35% to $262.09 at last check on Wednesday.

Space Beats Silicon: Rocket Lab, Planet Labs, And Archer Aviation Outshine Nvidia In 2025

Benzinga News — Wed, 12 Nov 2025 15:39:42 -0500

Aerospace just outperformed semiconductors - and almost nobody saw it coming.

The Aerospace Index surged 45% over the past year, topping the Semiconductors Index's 41% gain, with Rocket Lab Corp (RKLB ) (+250%), Planet Labs PBC (PL ) (+374%), and Archer Aviation Inc (ACHR ) (+92%) leading the charge. While Nvidia Corp (NVDA ) added just 30%, investors are rotating from chip fabs to launch pads, betting that the next AI frontier isn't in data centers - it's in orbit.

Rocket Lab, Planet Labs, Archer: The New Growth Trio

Rocket Lab's steady launch cadence and defense work have transformed it from "mini SpaceX" into one of 2025's most-watched stocks.
Planet Labs, whose satellite imaging now powers everything from climate analytics to national security, has quietly tripled this year.
Meanwhile, Archer Aviation is capitalizing on eVTOL hype and FAA approvals to bring electric air taxis closer to reality.

Together, they're turning aerospace into the market's next tech trade - and outperforming AI chipmakers that dominated just a year ago.

Nvidia Looks To The Sky, Too

Even Nvidia seems to sense where momentum is shifting. Its new partnership with Palantir Technologies Inc (PLTR ) to co-develop AI infrastructure software underscores a subtle pivot - from selling the picks and shovels of AI to building the ecosystem that runs on top. After a historic run in 2023, Nvidia's growth curve is flattening, while aerospace firms are in liftoff mode - literally.

For investors chasing the next big innovation theme, the signal is hard to miss. The space economy is scaling faster than the chip cycle, and aerospace stocks are behaving like early-stage AI winners once did.

The lesson? In 2025's market, the real upside may belong not to those who build the chips - but to those building the skies.

Goldman Sees S&P 500 At 9,000 By 2030—But The Real Boom Lies Elsewhere

Benzinga News — Wed, 12 Nov 2025 15:39:26 -0500

Goldman Sachs painted a bullish picture for long-term equity investors, forecasting solid returns for U.S. stocks over the next decade but pointing to far stronger gains brewing overseas.

In a note sent to clients on Wednesday, the investment bank projected the S&P 500 to reach 9,000 by 2030 and 11,100 by 2035-yet sees the biggest gains unfolding in faster-growing emerging markets.

S&P 500: Decent Returns, But Not Exceptional

Goldman's 10-year base case for the S&P 500 - as tracked by the Vanguard S&P 500 ETF (VOO ) - is an annualized return of 6.5%, built primarily on 6% annual earnings-per-share (EPS) growth, modest dividends of 1.4%, and a 1% annual valuation drag due to high starting price-to-earnings multiples.

That's a solid but historically below-average outlook. The 6.5% annualized return ranks in the 27th percentile of the index's 10-year return distribution since 1900.

When adjusted for inflation, the real return estimate drops to 4% per year, landing in the 33rd percentile of past real outcomes.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs, said earnings growth remains the dominant engine of returns and that U.S. corporations are unlikely to benefit again from the same level of tailwinds that propelled margins higher in past decades.

"We forecast an average annual S&P 500 total return of 6.5% during the next 10 years, with upside and downside scenarios indicating a range of 3% to 10%," the expert said.

"Extreme current US equity market concentration increases the uncertainty around the long-term equity market forecast," he added.

YearGoldman Sachs' S&P 500 Target

2026: 7,600
2027: 7,900
2028:8,300
2029:8,600
2030: 9,000
2031: 9,400
2032:9,800
2033: 10,200
2034:10,700
2035:11,100

Emerging Markets And Asia: The Real Boom May Be Here

The most striking part of the report is Goldman's optimism around emerging markets, where equities are forecasted to return 10.9% annually in local currency and 12.8% in USD over the next decade-nearly double the S&P 500's expected gains.

The building blocks for this bullish view include 8.7% annual EPS growth, a 2.9% dividend yield, and improving corporate governance and capital efficiency, particularly in markets like India, China, and South Korea.

India is forecast to deliver the strongest earnings growth, with a 12.6% average annual growth over the next decade, driven by structural GDP strength and favorable demographics.

Goldman expects policy-driven shareholder reforms to push dividend payouts and buybacks higher across the region.

The dividend yield in MSCI EM - as tracked by the iShares MSCI Emerging Markets ETF (EEM ) - is projected to rise from 2.5% today to 3.2% by 2035.

Asia excluding Japan is forecast to deliver 10.3% annual returns, supported by 9% EPS growth and a 2.7% dividend yield, even with moderate valuation compression. Japan, long considered a laggard, is expected to produce 8.2% annual returns, underpinned by 6% EPS growth and improving shareholder returns due to policy shifts.

"We forecast 10.9% annualised local currency total returns over the next 10 years for the MSCI EM index (MXEF), which is highest among the key regions," Oppenheimer wrote.

Time To Look Beyond US Tech

A key element of Goldman's forecast is a declining U.S. dollar, which the firm expects to depreciate steadily over the next decade.

Historically, dollar weakness has coincided with outperformance in non-U.S. equities, adding an extra layer of opportunity for globally diversified investors.

Moreover, the investment bank sees the long-term impact of AI as a global force, with benefits extending well beyond U.S. tech giants.

"Diversify beyond the U.S., with a tilt towards Emerging Markets," Oppenheimer said.

"We expect higher nominal GDP growth and structural reforms to favour EM, while AI's long-term benefits should be broad-based rather than confined to U.S. Technology," he added.

Bottom line, Goldman's message is clear: While the S&P 500 remains a cornerstone of global portfolios, investors seeking higher long-term returns should consider increasing exposure to emerging and Asian markets, where growth, reform and shareholder value creation are expected to accelerate in the years ahead.

Microsoft Builds Massive AI 'Super Factory' In Atlanta To Power OpenAI And Elon Musk's xAI

Benzinga News — Wed, 12 Nov 2025 15:39:05 -0500

Microsoft Corp (MSFT ) is accelerating its data center expansion with the launch of an artificial intelligence "super factory" in Atlanta-a massive two-story complex designed to link seamlessly with similar hubs across its Fairwater network to deliver enormous computing power.

The company plans to double its global data center footprint within two years, with the Atlanta site emerging as one of its most important new facilities. Built specifically for AI training, the Fairwater hub will house hundreds of thousands of Nvidia Corp (NVDA ) GPUs and feature high-speed interconnections with other Microsoft data centers, the Wall Street Journal reported on Wednesday.

OpenAI, Mistral AI, and Elon Musk's xAI will use the facility alongside Microsoft's own AI model training operations.

Microsoft, with a market cap of nearly $3.78 trillion, gained 19% year-to-date.

Microsoft spent over $34 billion in capital expenditures during its fiscal first quarter and plans to boost infrastructure investments further next year as part of a broader industry surge-one that's expected to reach $400 billion in AI spending this year.

The company says Fairwater's two-story design improves network efficiency and reduces latency, while a liquid-cooling system enables GPUs to be densely packed. The one-million-square-foot Atlanta complex spans 85 acres and consumes about as much water annually as 20 U.S. households.

Microsoft is also laying 120,000 miles of fiber-optic cables to link Fairwater locations, enabling data to travel "nearly at the speed of light."

Bank of America Securities analyst Brad Sills highlighted renewed momentum in Microsoft's cloud business, driven by strong enterprise demand for Azure security services and ongoing AI adoption. He cited consistent deal activity from channel partners and rising investment in AI and data infrastructure as evidence of the company's growing role in corporate technology roadmaps.

Sills identified Azure growth, enterprise Office adoption, and strategic AI infrastructure expansion-including Microsoft's work with Aligned Data Centers, BlackRock Inc (BLK ) and Nvidia -as key growth catalysts.

The analyst projected fiscal 2026 revenue of $322.1 billion and EPS of $15.24.

MSFT Price Action: MSFT stock traded 1.25% lower to $502.24 at last check on Wednesday.

Toyota Fuels US Workforce With $14 Billion Battery Plant

Benzinga News — Wed, 12 Nov 2025 15:33:45 -0500

Toyota Motor Corporation (TM ) marked a major milestone on Wednesday as it began producing batteries at its new Liberty, North Carolina facility.

The operation represents Toyota's first battery plant outside Japan and its eleventh production site in the United States.

New Investment Push

The automaker plans to spend up to $10 billion more over the next five years to advance U.S. manufacturing and future mobility initiatives.

The combined spending brings Toyota's total U.S. investment to nearly $60 billion since it entered the market almost seven decades ago.

Economic Impact

The nearly $14 billion Liberty plant will create up to 5,100 jobs once it's fully staffed. Officials said the project offers a turning point for the Piedmont Triad, a region with long ties to manufacturing and transportation.

"Today's launch of Toyota's first U.S. battery plant and additional U.S. investment up to $10 billion marks a pivotal moment in our company's history," said Ted Ogawa, chief executive of Toyota Motor North America. He noted the company's goal to expand electrification options for American drivers.

U.S. Secretary of Transportation Sean Duffy praised the move and tied the investment to the administration's efforts to reshore critical industries. "Under President Donald Trump's leadership, America is open for business," Duffy said at the event.

Facility Details

The 1,850-acre site will produce lithium-ion packs for hybrid, plug-in hybrid, and battery-electric vehicles. The plant will eventually operate 14 production lines and could reach an annual output of 30 GWh.

Toyota says it already ships hybrid modules to factories in Kentucky and Alabama, and additional lines will come online by 2030.

Models Powered

Batteries built in North Carolina will support the Camry HEV, Corolla Cross HEV, RAV4 HEV and a new three-row electric SUV planned for U.S. production. Company leaders said the facility will also include childcare, a clinic, and wellness resources for employees.

State and local leaders credited Toyota for investing in STEM education and workforce development.

The Toyota USA Foundation pledged another $2.7 million to expand its Driving Possibilities program in two North Carolina school districts.

North Carolina officials welcomed the investment, including U.S. Rep. Richard Hudson (R-NC), who called the project "great news" for workers and the state's growing automotive supply chain.

State legislative leaders said the partnership reflects confidence in North Carolina's workforce and business climate.

Price Action: TM shares are trading higher by 0.82% to $207.68 at last check on Wednesday.

A Government Hint Just Sent Starbucks Stock Soaring

Benzinga News — Wed, 12 Nov 2025 15:33:23 -0500

Starbucks Corporation (SBUX ) traded higher on Wednesday as investors reacted to expectations of tariff relief on imported goods, such as coffee.

Treasury Secretary Scott Bessent told Fox News that the administration will soon announce cuts in duties for everyday consumer goods. He stated that the effort would reduce prices on items the U.S. does not typically produce, NBC News reports.

Coffee, Bananas Targeted For Relief

Bessent told "Fox and Friends" that the plan focuses on products such as coffee, bananas, and other fruits.

He did not outline the exact structure of the program but emphasized that lower tariffs would deliver faster price relief at the register, NBC News highlights.

Discovery Bid: Report

His comments followed a segment on Fox News' "The Ingraham Angle," where President Donald Trump remarked, "We're going to have some coffee come in." The market saw his remark as a signal of easing trade costs.

Starbucks Rides Merch Frenzy

Starbucks was recently in the media headlines for benefitting from enthusiasm around a limited holiday cup that turned into a fast-moving collectible.

The company released a Glass Bearista Cold Cup priced under $30, and it quickly disappeared from stores.

Resellers posted the cup online at sky-high markups, with some listings asking tens of thousands of dollars.

Starbucks told Insider that the response exceeded internal projections and frustrated fans who could not secure a cup. No confirmed sales have matched the highest sticker prices.

China Joint Venture Expands Footprint

Starbucks also signed a deal with Boyu Capital to form a retail partnership in China.

The firm will purchase as much as 60% of Starbucks' China store business based on an estimated $4 billion valuation. Starbucks will keep a 40% interest while continuing to own its intellectual property.

SBUX Price Action: Starbucks shares were up 1.74% at $87.92 at the time of publication on Wednesday, according to Benzinga Pro data.

Political Tailwind? Congress Trading Ban Could Boost SPY, IVV

Benzinga News — Wed, 12 Nov 2025 15:32:56 -0500

Rep. Anna Paulina Luna of Florida recently announced on X that, as soon as the government reopens, the bill to ban insider trading among members of Congress will be marked up in committee.

The bipartisan "Restore Trust in Congress Act" would ban members of Congress, their spouses, and their dependent children from owning or trading individual stocks, securities, commodities, or futures, as explained in a Yahoo Finance report.

If implemented, it could dramatically change the way the Washington establishment invests - and ETFs, which hold a basket of assets and trade like a single stock - could become the default option.

As lawmakers move closer to a potential ban on trading individual stocks, ETFs are emerging as the likely go-to investment vehicle-not just for public officials, but for any investors seeking broad, hands-off exposure.

The following broad-market ETFs offer exposure to hundreds of companies in a single fund, eliminating the need for active stock picking:

The SPDR S&P 500 ETF Trust (SPY ): The oldest and one of the largest ETFs in the U.S., tracks the S&P 500 index and covers major sectors like technology, health care, and finance.
iShares Core S&P 500 ETF (IVV ): Offers a similar structure but with a lower expense ratio (0.03% against SPY's 0.095%), appealing to cost-conscious investors.
Vanguard Total Stock Market ETF (VTI ): VTI goes further and encompasses the whole U.S. stock market, including the small- and mid-cap stocks, to provide the widest diversification.

Sector-specific ETFs can also serve as a compliance-friendly option:

The Technology Select Sector SPDR Fund (XLK ) holds large-cap tech stocks like Apple Inc (AAPL ), Microsoft Corp (MSFT ), and Nvidia Corp (NVDA ).
The Industrial Select Sector SPDR Fund (XLI ) grants investors access to major manufacturers and defense companies.
The Energy Select Sector SPDR Fund (XLE ) covers energy producers and utilities.

All of these ETFs let investors seek thematic exposure without having to pick individual stocks-a key benefit for lawmakers who must avoid conflicts of interest.

Investor Takeaway

Even as legislative processes are slow, political and public sentiment towards ethical investing should be a boost for ETFs.

Large-cap, broad-market, and sector ETFs already provide that transparency, diversification, and automation that can make them politically and practically appealing.

In a possible post-ban era, these funds could attract not just lawmakers but the wider audience of investors who want to align market participation with ethics.

Netflix House Opens In Philadelphia—And Puts The City In The Frame

Benzinga News — Wed, 12 Nov 2025 15:32:09 -0500

Netflix Inc. (NFLX ) on Wednesday opened its first Netflix House in suburban Philadelphia, inviting fans inside immersive, photo-ready sets.

The attraction spans a massive indoor space at King of Prussia, a Simon mall destination.

"The Philadelphia region is the perfect place to open our very first Netflix House; a city known for its creativity, heart, and deep sense of community," said Marian Lee, Netflix's chief marketing officer.

What's New

Visitors move through large-scale installations inspired by "Stranger Things," "Wednesday," "ONE PIECE," and other hits. The Red Envelope entrance nods to Netflix's DVD era and features artwork by Philadelphia artist Emily White.

Netflix recently told shareholders its biggest franchises continue to fuel global engagement, helping drive real-world experiences like Netflix House.

Why It Matters

Netflix is extending its brands beyond streaming to deepen fan engagement and broaden revenue sources. The company will open a Dallas location on Dec. 11 and a Las Vegas site in 2027.

In its latest quarter, Netflix said TV view share hit record levels in the U.S. and UK, showing strong demand for in-person tie-ins to popular titles.

Executives also highlighted a long-term plan to turn hit shows into wider franchises across merchandise, live events, and interactive spaces.

According to Benzinga Pro, NFLX stock has gained over 39% in the past year.

Local Impact

The buildout created hundreds of regional jobs and supports nearly 300 permanent positions. Netflix worked with local vendors and artists to reimagine characters and worlds through a Philadelphia lens.

Guests can explore the Byers' living room, climb "Squid Game" stairs, and snap photos linked to "Bridgerton" and "Queer Eye." The atrium features oversized props and interactive scenes.

Netflix BITES serves comfort food and playful cocktails based on popular shows. The TUDUM Theater screens Netflix movies, hosts trivia nights and streams live sports, including WWE Raw and select NFL games.

That focus on live programming mirrors Netflix's fourth-quarter slate, which includes NFL Christmas games and a Jake Paul vs. Gervonta "Tank" Davis boxing match.

The Netflix Shop offers NetPHLix merchandise and exclusive collectibles.

Netflix's shareholder letter on Oct. 21 said "KPop Demon Hunters" became its most-watched film ever, fueling toy licensing deals with Mattel (MAT ) and Hasbro (HAS ) - a push reflected in new merch and retail strategy.

Opening Night

DJ Jazzy Jeff headlined the Housewarming Party. Netflix co-CEOs Ted Sarandos and Greg Peters presented a symbolic key to Gov. Josh Shapiro, Sen. Amanda Cappalletti (D-PA), and Rep. Tim Briggs (D-PA).

NFLX Price Action: Netflix shares were up 1.70% at $1155.73 at the time of publication on Wednesday, according to Benzinga Pro data.

Market Update: Dow Rallies 560 Points to Record Close

Rachel Hemple — Tue, 11 Nov 2025 18:22:43 -0500

The Dow Jones Industrial Average soared to a new record closing high on Tuesday as market participants rotated out of technology names into stocks with lower valuations.

The 30-stock index rallied about 560 points to close at a record 47,927.96 as investors bought blue chip healthcare names such as Merck (MRK ) and Johnson & Johnson (JNJ ). The broader market S&P 500 Index (SPY ) also added over 0.2% to settle at 6,846.61, while the tech-heavy Nasdaq Composite (QQQ ) slipped nearly 0.3% to end the day at 23,468.30.

Impacting big tech on Tuesday, investor Michael Burry, known for his famous bet on the financial market in "The Big Short," accused some of Wall Street's largest tech names of understating depreciation in their accounting to boost their profits from the year's artificial intelligence rally. Burry singled out Meta Platforms (META ) and Oracle (ORCL ), adding to his recent string of shorts against other AI darlings including Nvidia (NVDA ) and Palantir Technologies (PLTR ).

"Understating depreciation by extending useful life of assets artificially boosts earnings -- one of the more common frauds of the modern era," the Scion Asset Management founder said in a post on X late Monday. "Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 [year] product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done."

Fresh labor market data also harmed investor outlooks on Tuesday, as payrolls processing firm ADP estimated that U.S. private employers cut an average of 11,250 jobs over the past four weeks. ADP Chief Economist Nela Richardson said the preliminary total suggests "that the labor market struggled to produce jobs consistently during the second half of the month. ADP has offered market participants only a snapshot of recent job market activity as the ongoing federal government shutdown continues to halt economic releases from the Bureau of Labor Statistics.

The U.S. Senate passed a bill on Monday to reopen the government by a vote of 60-40, effectively sending the bill to the House of Representatives for a vote this week. The deal in its current state would fund the government through the end of January. The shutdown is currently the longest in U.S. history at 42 days.

Transportation Secretary Sean Duffy warned on Tuesday that the shutdown's impact on air travel could continue even after the government reopens, telling reports at Chicago O'Hare International Airport that "we're going to wait to see the data on our end before we take out the restrictions in travel." Major airlines including Delta Air Lines (DAL ), United Airlines (UAL ), American Airlines (AAL ) and Southwest Airlines (LUV ) are currently operating at reduced schedules ahead of the busy holiday travel season.

Elsewhere, Advanced Micro Devices (AMD ) CEO Lisa Su told investors on Tuesday that the company expects revenue growth to increase at a rate of about 35% per year over the next three to five years, benefiting from the market's "insatiable" demand for AI chips. Su added that the company expects its AI data center business to expand at about 80% per year over the same period.

"That is what we see as our potential given the customer traction, both with the announced customers, as well as customers that are currently working very closely with us," Su said at AMD's first investor day since 2022.

Goldman Flags Big A Problem For Cruises—And It Starts In The Caribbean

Benzinga News — Tue, 11 Nov 2025 12:52:00 -0500

Cruise lines have enjoyed smooth sailing in recent years, but a rising tide of ships could soon stir rough waters for investors.

In a note shared Monday, Goldman Sachs analyst Lizzie Dove said cruise sentiment "hasn't been this negative in a while" as plans of aggressive expansions risk backfiring.

Caribbean cruise capacity is set to surge sharply in 2026, and Goldman is sounding the alarm about what this means for pricing, demand, and ultimately, investor returns.

Cruise Lines Are Flooding The Caribbean-Will They Regret the Move?

The problem starts with one key stat: Caribbean market capacity is growing 9% year over year, to nearly 15.9 million passengers in 2026.

That might sound like good news at first. More ships, more passengers, right? Not quite.

This kind of rapid capacity expansion has a history-and not a good one.

In 2014, when the Caribbean saw a similar surge in capacity, pricing crumbled and didn't recover for a full year. Dove and her team point to that moment as a precedent-and say we could be in for a repeat.

"While we think it is far too soon to call for any big slowdown yet, we look to 2014 for precedent," Dove said, referring to what happened the last time cruise lines flooded the region.

Norwegian Cruise Is Going All-In On the Caribbean: Is That A Mistake?

Norwegian Cruise Line Holdings Ltd. (NCLH ) is taking the most aggressive leap into the Caribbean.

According to Goldman, the company is increasing its regional deployment from 30% to 40%, pushing its Caribbean berth count up 37% year over year-more than any other major cruise operator.

That may help them gain market share, but it's also squeezing profitability.

Goldman estimates that net per diem will drop 1% in the first quarter, and net yield growth will slow to 2.9% in 2026. That's a far cry from the high-growth outlook the company previously projected.

Dove now believes Norwegian investors will have to wait until the second half of 2026 to see any real payoff from this strategy. Until then, margins may stay under pressure.

"The mix shift impact is unique to NCLH," Dove said, and that uniqueness could prove costly-at least in the short term.

As a result, Goldman cut its price target for NCLH shares from $27 to $23 and lowered its valuation multiple to reflect the uncertain outlook.

Royal Caribbean And Carnival Are in Better Shape-For Now

Royal Caribbean (RCL ) isn't immune, but it's better positioned. Its Caribbean exposure remains flat at 57% of total deployment, and capacity is only rising 5.5%.

With strong demand for its megaships and private island CocoCay, Goldman sees some tailwinds that could cushion the impact.

Still, it wasn't enough to keep its stock untouched-Goldman lowered RCL's price target from $355 to $334.

Carnival Corp. (CCL ), on the other hand, could be the most insulated. It has no new ships coming online for 20 months, and its Caribbean exposure has only grown 22% since 2019, compared to 70% for the rest of the industry.

Its broader international footprint-48% non-U.S. passengers and 30% in Europe-also gives it greater flexibility to pivot if demand weakens in the Caribbean.

Goldman lowered CCL's target from $37 to $34, but Dove emphasized the company's resilience: "We believe CCL should be most resilient against a choppier Caribbean environment."

Bottom Line

Cruise lines are entering 2026 with a full throttle into the Caribbean, but demand might not keep up.

With over 2 million additional passenger cruise days (APCDs) flooding the region in the first quarter alone, the pricing picture could get messy-fast.

For investors, the message from Goldman is clear: watch the Caribbean market closely. This isn't just about tourism-it's about margins, market share, and whether aggressive expansion pays off or backfires.

Google Looks To Germany For AI, Data Center Expansion As Alphabet Commits $6.4 Billion

Benzinga News — Tue, 11 Nov 2025 12:51:44 -0500

Google parent Alphabet (GOOGL ) (GOOG ) earmarked 5.5 billion euros ($6.41 billion) for infrastructure and data center capacity in Germany.

The plans include a new data center in Dietzenbach, close to Frankfurt, Reuters reported ahead of Google's prepared statement.

Germany isn't the only AI or data destination for Alphabet. The company is investing across multiple regions to boost energy capacity, cloud infrastructure, and workforce development.

In the U.S., it committed $25 billion to data center and AI infrastructure across the PJM Interconnection grid in the U.S. The investment included $3 billion to modernize hydropower plants in Pennsylvania.

In Virginia, the company plans to invest $9 billion through 2026 to expand AI and cloud facilities, while also launching a $1 billion AI education initiative offering free access to AI tools and career training for local students and workers.

In India, Google is investing $6 billion to build a 1-gigawatt data center in Visakhapatnam, allocating $2 billion for renewable power generation.

In the U.K., Google launched a new data center in Waltham Cross as part of a 5 billion pounds (~$6.8 billion) investment to support AI and cloud services, create 8,000 jobs annually, and achieve 95% carbon-free operations by 2026 through a partnership with Shell PLC (SHEL ).

Alphabet stock gained over 52% year-to-date.

Alphabet reported a 16% growth in third-quarter revenue to a record $102.3 billion. Gains in digital advertising and cloud computing drove the growth. Net income surged 33% to about $35 billion.

Google's cloud division posted $15.2 billion in revenue, up 34% from last year, as AI demand accelerated data center expansion. Alphabet raised its 2025 capital expenditure forecast to between $91 billion and $93 billion to support AI development. That's up from $52.5 billion in 2024.

Price Action: GOOGL stock was trading lower by 0.45% to $288.72 at last check on Tuesday.

SoFi Becomes First US Bank To Let You Buy Bitcoin Right From Your Checking Account

Benzinga News — Tue, 11 Nov 2025 12:51:07 -0500

SoFi Technologies, Inc. (SOFI ) launched SoFi Crypto on Tuesday, becoming the first nationally chartered, FDIC-insured bank to offer cryptocurrency trading directly within its financial services platform.

The new feature enables users to buy, sell, and hold digital assets, such as Bitcoin, Ethereum, and Solana, through the same app used for banking and investing - combining convenience with regulatory oversight and bank-grade security.

Anthony Noto, SoFi's CEO, said, "I believe blockchain technology will fundamentally change EVERY way finance is done throughout the world by making money movement faster, cheaper and safer, while opening new ways for people to borrow better, invest better, spend and save better."

Noto emphasized that SoFi's regulated status gives customers the confidence to explore crypto through a trusted banking institution.

Unified Digital and Fiat Management

Members can now manage both fiat and digital assets in a single app. Funds from SoFi Money Checking or Savings accounts can be used instantly to buy crypto, eliminating the need to transfer money to other exchanges and providing a smoother and faster experience for users.

SoFi says its crypto service meets strict compliance and security standards while promoting financial literacy. The platform includes in-app resources to help users understand the risks and volatility of crypto. The company cautions that digital assets are not FDIC or SIPC-insured and can fluctuate in value.

Broader Blockchain Strategy

The launch is part of SoFi's broader blockchain strategy. The company plans to introduce a USD stablecoin, use blockchain for international remittances, and integrate crypto into lending and payments to lower costs and improve transaction speed.

Stock Performance

SoFi Technologies stock has a 52-week high of $32.56 and a low of $8.60. The stock trades about 5% above its 50-day simple moving average, and remains modestly higher year-to-date.

Price Action: SOFI shares were trading lower by 1.67% to $30.03 at last check Tuesday.

Burry's Big Short 2.0: From Palantir Hype To Big Tech's 'Frauds Of The Modern Era'

Benzinga News — Tue, 11 Nov 2025 12:49:18 -0500

Michael Burry's next big short may not be against a company - it's against the illusion propping them up. Fresh off reports of shorting Palantir Technologies Inc (PLTR ), the "Big Short" investor has turned his sights on Big Tech's accounting games, accusing giants like Meta Platforms Inc (META ) and Oracle Corp (ORCL ) of what he calls "frauds of the modern era."

In a post that's already rippling through financial circles, Burry claims tech firms are understating depreciation by stretching the "useful life" of their compute assets - even as they binge on new Nvidia Corp-powered (NVDA ) hardware with much shorter cycles.

The result, he says: inflated earnings, masked costs, and as much as $176 billion in understated depreciation between 2026 and 2028.

From AI Story Stocks To Spreadsheet Sorcery

It's a thematic evolution for Burry. His earlier Palantir short bet on the AI narrative overheating - a wave of retail enthusiasm outpacing fundamentals. Now, his focus has moved from overvaluation to overstatement: how the accounting behind the AI boom is smoothing volatility and amplifying profits on paper.

By extending server lifespans from three to six years, hyperscalers like Meta, Alphabet Inc (GOOG ) (GOOGL ) Google, Microsoft Corp (MSFT ), and Oracle are reducing reported expenses - a move that flatters margins and earnings per share.

But Burry warns it's all temporary. Once replacement cycles hit, the illusion ends - deferred depreciation can only mask costs for so long.

The Bubble Within The Boom

To Burry, this isn't just aggressive accounting - it's the structural weakness beneath the AI CapEx frenzy. If Palantir symbolized the hype behind the AI boom, Meta and Oracle now represent the accounting stretch sustaining it. His warning hints at something larger: the next "Big Short" may not be about debt or valuation, but about the credibility of AI-driven profits themselves.

In the age of artificial intelligence, Burry suggests, even earnings might be artificially intelligent.