Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Saturday, 14 November 2020

Can Nio's Q3 Earnings Reignite The Rally Cut Short By Citron's Warning?

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Can Nio's Q3 Earnings Reignite The Rally Cut Short By Citron's Warning?Nio Inc's (NYSE: NIO) scintillating rally came to a screeching halt Friday after short seller Citron Research spoiled the party by suggesting the EV maker's astronomical valuation becomes unjustifiable.Nio's Rally and The Hard Fall: Nio's stock, which ended 2019 at $4.02, began to turn the corner along with the post-COVID recovery in deliveries. The rally picked up steam amid the company's conscientious efforts to innovate, cut the flab and work further on its service-focused approach.Ahead of Friday's session, the stock was up about 1,100% compared to Tesla Inc's (NASDAQ: TSLA) 392% advance.Nio started Friday's session on a strong note, thanks to strong quarterly results reported by domestic peer Li Auto Inc. (NASDAQ: LI), and went on to hit a high of $54.20. It took just six sessions for the stock to move from $40 to $50.However, shares came under heavy selling pressure following Citron's report in which the firm gave Nio's stock a $25 price target. After being down about 16% at one point in the session, the stock has cut its losses to some extent to close down 7.7% at $44.56.Related Link: Nio, Li Auto Make Big Moves Following Xpeng's Q3 ResultsIs There Merit To Citron's Argument? Citron harped on Nio losing out on market share due to Tesla pricing, especially the "Made In China" Model Y, competitively. The U.S. EV giant's price cuts undoubtedly can hurt.However, Nio has carved a niche for itself with its technological prowess and service-focused approach to lure customers.After unveiling a 100-kilowatt-hour battery recently, the company is reportedly working on 150 kWh battery, which can nearly double the range of its EVs. According to reports, the company is also working on developing in-house chips for its ADAS system.The company has managed to up its mindshare among consumers."Compelling evidence exists that consumers are increasingly perceiving Nio as a 'high-quality premium brand' with best-in-class technology and service," Deutsche Bank analyst Edison Yu said in a late September note.The company has made its cars affordable by introducing the Battery-as-a-Service scheme, which trims a significant amount from the list price.Nio is also eyeing global expansion and is reportedly building a separate team to work on the roadmap for exporting vehicles to Europe.Can Earnings Salvage The Stock? Nio is scheduled to report its fiscal-year third-quarter results next Tuesday before the market open. Analysts, on average, estimate a loss of 17 cents per share on revenues of $652.77 million.This represents a marked improvement from the loss of $2.38 per share and revenues of $262.47 million reported for the year-ago quarter.Nio's third-quarter deliveries jumped over 150% year-over-year to 12,206, marking a quarterly record. The strong momentum continued into October, with the company reporting a 100% increase in deliveries to a record of 5,055 units for the month.Valuation Stretched? The run-up seen since the second quarter has rendered Nio's valuation unattractive and unsustainable. For that matter, most EV stocks are showing frothiness and are in bubble territory.That said, Nio has shown discipline and proactiveness in improving its fundamentals and is operating in the sweet spot of a booming Chinese EV market.Fundamental performance in the months ahead will serve as a key to the stock's trajectory.See more from Benzinga * Click here for options trades from Benzinga * Nio, Li Auto Make Big Moves Following Xpeng's Q3 Results * Nio Unveils 100-kWh Battery, Upgrade Plans: What Investors Should Know(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.




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Tesla Model 3 Yellow Taxi Cabs Begin Giving Rides In NYC

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Tesla Model 3 Yellow Taxi Cabs Begin Giving Rides In NYCIt seems Tesla Inc (NASDAQ: TSLA) is infiltrating many aspects of life, including automotive, software, energy production and storage. Now, even hailing a cab in New York City could bring a Tesla right to you.The Tesla Model 3 is the first all-electric yellow taxi cab in New York City, according to Business Insider. The vehicle received approval from the city one year ago to operate as a taxi, and now the cars are finally available. Unlike other cabs that operate 24 hours a day, the Model 3s are brought in overnight to charge.The first Model 3 taxi completed over 100 trips in its first week of service. The car is operated by DriveSally, which has over 1,000 taxis. The biggest complaint by drivers so far is that people had trouble figuring out how to open the door, as the Model 3 has quite unusual door handles.One driver couldn't handle the stress of range anxiety, fear of running out of battery power, and brought the car back after depleting some 50 miles of the car's 220-mile range. Another driver had drained the battery down to just five miles of range left. Most Tesla vehicles come with a smaller buffer of range after the meter says 0 miles remaining, much like gas cars.Photo courtesy of TeslaSee more from Benzinga * Click here for options trades from Benzinga * VW To Spend B On Electrification, Powertrains, Digital Tech * Tesla Gigafactory Texas Progress Revealed In Aerial Photos(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.




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Friday, 13 November 2020

Thursday, 12 November 2020

Plug Power: Next Stop, $30?

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Plug Power: Next Stop, $30?Plug Power (PLUG) is a strange sort of business. In more than 20 years of operation, the hydrogen fuel cell company has sold a lot of fuel cell systems, but never earned a profit, and never generated positive free cash flow. Instead, Plug funds its operations mainly by issuing and selling new shares -- over and over again. In fact, from 2000 to 2020, Plug's share count has grown from 4.4 million to 399.7 million -- i.e. grown 90x in size.But what a difference a pandemic makes, and what a difference (the hope for) a Green New Deal!As COVID-19 unhinged stock markets from ordinary rules for valuation, and the prospect of a Democratic "Blue Wave" showering taxpayer dollars all over the renewable energy industry, Plug Power stock has gone on a tear. Shares of the fuel cell company are up more than 5x from their price at the start of the year, and now trade at nearly 22 times trailing sales, and 34 times book value, despite a total lack of profitability.This doesn't concern H.C Wainwright's Amit Dayal, however. In a note published following Plug's Q3 2020 earnings results, the analyst argues that Plug Power's valuation is really all about the future -- a future as far off as 2024... or even 2030.Plug Power, you see, may not be earning profits right now. But Plug management has repeatedly promised in recent quarters (and repeated the promise on Monday) that in 2024 it will earn $200 million in operating profit and record "gross billings" of $1.2 billion.Now, "gross billings" aren't a financial metric often recited by publicly traded companies. To translate the term into something more familiar to investors, therefore, Dayal calculates that Plug's revenues in 2024 will be about $1.1 billion -- more than four times the company's trailing revenues currently. Dayal further projects that by 2030, Plug will grow this number even further -- to $7.4 billion in annual sales. And if this number is correct, says Dayal, the company will achieve a 10-year compounded revenue growth rate in excess of 38%.That's a staggering sum, but in fact, it's not entirely unrealistic. In fact, over the past five years alone, Plug has grown its revenues at about a 29% compounded rate. While acceleration to 38% certainly won't be easy, Plug's history of revenue growth suggests it does lie within the realm of possibility.And yet, that's not really the point, is it? The point of a profit-seeking venture like Plug should in theory be not just to "sell stuff," but to earn profits from selling stuff -- and it's here that Plug Power has historically fallen short. In Q3 2020 for example, Plug grew its sales 80% (so twice as fast as Dayal's projected sales growth rate). Problem was, the company also doubled its net loss on those sales, from $18.2 million a year ago, to $39.4 million in Q3.Despite this huge Q3 loss, and despite Plug's unbroken history of similar losses, Dayal insists that Plug's rapid sales growth will eventually bring the company to profitability -- indeed, he projects net profits by 2023, which is even sooner than Plug is promising. With this prospect in mind, he has reiterated his "buy" rating on Plug Power stock, and doubled his price target $30. (To watch Dayal's track record, click here)All in all, Plug's strong share appreciation has pushed the stock price above the consensus price target. Shares are selling for $23, and the average target of $20.89 implies a 9% downside. Paradoxically, the stock holds a Strong Buy consensus rating, based on 10 Buys and no Holds or Sells. (See PLUG stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.




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Wednesday, 11 November 2020

Plug Power Is Firing on All Cylinders; Analyst Doubles Price Target

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Plug Power Is Firing on All Cylinders; Analyst Doubles Price TargetWith Joe Biden the President-elect, the commonly held view is that alternative energy stocks are in line for a boost. That said, some in the sector hardly need a helping hand, in particular Plug Power (PLUG). The hydrogen fuel cell maker has made the most from investors’ thirst for new energy stocks in 2020, in the process racking up a massive 533% of share gains throughout the year.Further adding to the bullish case, the company just released another excellent quarterly financial report.In Q3, revenue hit $106.99 million amounting to a 79.9% year-over-year increase and beating the estimates by $1.23 million. PLUG posted a beat on the bottom line, too, with Non-GAAP EPS of -$0.04 coming in $0.03 ahead of the estimates.Furthermore, the outlook remains positive. PLUG raised its FY20 gross billings estimate to between $325 and $330 million from $310 million. Street was calling for $314 million.Oppenheimer analyst Colin Rusch is “encouraged” by the increasing adoption of the company’s forklift solutions and excited by PLUG’s bullish stance on its solutions’ potential to substitute diesel gensets and provide back-up power for data center applications.While Rusch admits PLUG’s massive share gains might raise questions regarding a hot valuation, they are not enough to detract from the bullish case.“As investors look for exposure to hydrogen vehicle growth, we believe PLUG is best positioned to benefit from all key areas in the supply chain with differentiated, commercially proven technologies,” the 5-star analyst said. “We believe valuation is the biggest question for investors as the market negotiates growth multiples in the context of potentially stable tax policy and historically low interest rates. Given the scale of the opportunity and PLUG's IP portfolio, we are raising our PT multiple in line with disruptive technology peers and current market dynamics as we maintain our constructive stance on shares.”The price target raise is a significant one -- doubled from $13 to $26. The new figure implies a 15% upside from current levels. As a result, Rusch keeps his Outperform (i.e. Buy) rating on Plug Power shares intact. (To watch Rusch’s track record, click here)Plug Power’s rise offers analysts an interesting conundrum. On the one hand, based on a decisive 10 Buy ratings with no holds or sells, the analyst consensus is a Strong Buy. However, the constant share gains mean the $20.89 average price target indicates a modest ~4% upside in the year ahead. (See PLUG stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.




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Tuesday, 10 November 2020

Monday, 9 November 2020

Biden, McConnell Can Get Stimulus Deal Done, Valliere Says

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Biden, McConnell Can Get Stimulus Deal Done, Valliere SaysNov.07 -- Greg Valliere, chief U.S. policy strategist at AGF Investments, discusses the prospects for an economic stimulus deal after Joe Biden defeated Donald Trump to become the 46th U.S. president. "Joe Biden and Mitch McConnell have had a long relationship," Valliere said on Bloomberg Television. "They both pride themselves on the ability to get deals done."




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Stock market news live updates: Stock futures open higher after Biden victory

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Stock market news live updates: Stock futures open higher after Biden victoryStock futures opened higher Sunday evening as traders took in President-elect Joe Biden’s victory in the U.S. presidential election, ending a days-long nail-biter over which candidate would prevail in winning the White House.




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Sunday, 8 November 2020

'Lots of people are going to suffer': Nouriel Roubini on the possibility of a double dip recession and its impact on the labor market

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'Lots of people are going to suffer': Nouriel Roubini on the possibility of a double dip recession and its impact on the labor market

Nouriel Roubini, professor of economics at New York University's Stern School of Business and CEO of Roubini Macro Associates, joined Yahoo Finance LIve to discuss how the election results will impact the economy and his outlook for the labor market.




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Cramer Gives His Opinion On Workhorse, Alibaba And More

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Cramer Gives His Opinion On Workhorse, Alibaba And MoreOn CNBC's "Mad Money Lightning Round," Jim Cramer said he would pick First Solar Inc. (NASDAQ: FSLR) over Solaredge Technologies Inc. (NASDAQ: SEDG).Plantronics Inc. (NYSE: PLT) is a good company and a very high quality stock, he said. He prefers lower-end companies, more gaming oriented, but he doesn't want to go against the call and he thinks Plantronics is a good one.Workhorse Group Inc. (NASDAQ: WKHS) is a bit of a showhorse for Cramer. If he wanted an EV stock, he would buy Plug Power Inc. (NASDAQ: PLUG).Instead of Moneygram International Inc. (NASDAQ: MGI), Jim Cramer would buy Paypal Holdings Inc. (NASDAQ: PYPL) because it is going all in with crypto.Fortinet Inc. (NASDAQ: FTNT) is okay, Cramer said. He prefers Palo Alto Networks Inc. (NYSE: PANW) and Crowdstrike Holdings Inc. (NASDAQ: CRWD). Cramer is pounding the table to buy Alibaba Group Holding Ltd. (NYSE: BABA).Trupanion Inc. (NASDAQ: TRUP) also is good, Cramer said -- he thinks we need pet insurance.See more from Benzinga * Click here for options trades from Benzinga * Carter Worth And Mike Khouw See SLV Moving Higher * Tony Zhang Sees Bullish Sign For American Water Works(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.




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Saturday, 7 November 2020

3 Reasons Marijuana Stocks Are Soaring

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3 Reasons Marijuana Stocks Are SoaringCannabis stocks have been red-hot following Tuesday's election. The skyrocketing marijuana group has been led by Aurora Cannabis Inc. (NYSE: ACB), which is up 135% in the past two days alone.Voters in New Jersey, Arizona, South Dakota and Montana legalized recreational marijuana use on Election Day, while South Dakota and Mississippi also legalized medical marijuana.Related Links: Cannabis Stocks Rebound As Dust Settles Following US ElectionThe new state cannabis laws will expand the legal U.S. marijuana market, but the massive moves in weed stocks suggest something may be brewing that is much larger than the handful of states that voted to legalize on Tuesday.Election Takeaways: On Thursday, DataTrek Research co-founder Jessica Rabe said there are three big-picture takeaways for cannabis stock investors from Tuesday's election results: 1. One in three Americans now lives in a state in which recreational marijuana is legal. Not only has the latest vote expanded the number of legal cannabis customers, Rabe said it has also applied significant pressures to neighboring states not to follow suit and not miss out on the business opportunities and tax revenues. 2. Cannabis legalization is no longer a "blue state" phenomenon given marijuana measures passed easily in the conservative states of South Dakota, Montana and Mississippi. While more than three out of four Democrats support cannabis legalization, recent polls have found that slightly more than half of Republican voters now support it as well. 3. Even though it appears likely Republicans will maintain control of the Senate, voters in the red states mentioned above are sending a clear message to Washington that cannabis legalization is an increasingly bipartisan, national issue."The more states that legalize recreational marijuana -- especially populous ones like New Jersey (8.9 million people) and Arizona (7.3 million) this election -- the more pressure it puts on the federal government to address the issue," Rabe said.Stocks On The Move: In addition to Aurora, here are some of the other top cannabis stocks that have made the biggest gains in the past two days: * Tilray Inc. (NASDAQ: TLRY) is up 71.6%. * Cronos Group Inc. (NASDAQ: CRON) is up 35.9%. * Canopy Growth Corp. (NYSE: CGC) is up 25.1%.Benzinga's Take: The ultimate prize for cannabis stock investors isn't adding a handful of new US states to the mix every few years. The catalyst that could completely change the industry is full U.S. federal legalization, and investors seem to see Tuesday's election results as potentially bumping up the timeline for that outcome.Courtesy imageSee more from Benzinga * Click here for options trades from Benzinga * Unusually Large Aurora Cannabis And Tilray Option Trades Following Post-Election Rally * Square Earnings Crush Expectations Yet Again, But What's Next?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.




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Friday, 6 November 2020

Sports Betting Wins Election Night 3-0, Setting the Stage for DraftKings to Shine

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Sports Betting Wins Election Night 3-0, Setting the Stage for DraftKings to ShineIt has been a volatile ride for investors of DraftKings (DKNG). Since closing at an all-time high of $63.78 on October 2, the share price has dropped by 32%. However, the stock is showing signs of upward movement, as good news is once again taking hold of the narrative.The presidential election results might still be at an impasse, but election night handed a 3-0 victory to the sports betting sector. Maryland, Louisiana, and South Dakota all voted to approve legalized sports betting in 2021.Oppenheimer analyst Jed Kelly is in no doubt as to what it means for the fledgling industry.“We view this as a positive for DKNG and the industry as whole in signifying the public’s large appetite for legalized sports betting,” the analyst said.Kelly believes Maryland is most likely to be the first to implement mobile sports betting as early as next year. “Our view is largely based on the state sharing borders with PA, DC, and VA, which all already have or will have live mobile betting in early 2021,” he said.In the first year, Kelly estimates Maryland sports betting could generate revenue of $185 million – amounting to 62% of New Jersey's first full year.Louisiana and South Dakota are less likely to hop on board with mobile betting so soon. Kelly expects sports betting “in a retail capacity” to kick off both in LA and SD sometime next year but mobile sports betting’s “immediate legalization” in Louisiana is less certain.Likewise in SD, where a “large tribal presence and the conservative nature of the state” make estimating when mobile betting will go live a difficult task.Overall, there’s no change to Kelly’s DKNG rating which stays an Outperform (i.e. Buy). Kelly has a $65 price target for the shares, implying 51% upside from current levels. (To watch Kelly’s track record, click here)Most Street analysts back Kelly’s call. Based on 13 Buys and 6 Holds, the stock qualifies with a Moderate Buy consensus rating. Given the $58.06 average price target, the analysts expect shares to change hands for a 35% premium over the next 12 months. (See DraftKings stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.




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Wednesday, 4 November 2020

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