Author

admin

Browsing

Hedge funds pulled back from Asian markets last week, shedding stocks and reducing leveraged positions as they prepared for US President Donald Trump’s announcement of new reciprocal tariffs on April 2.

South Korea, China’s onshore markets, and Taiwan saw the heaviest selling, while hedge funds also ramped up short bets in Japan, Morgan Stanley noted in a prime brokerage report this week.

The shift in positioning reflects growing uncertainty over Trump’s latest trade measures, which could sharply increase tariff rates and disrupt global commerce.

Export-driven Asian economies remain particularly exposed to US tariff risks.

According to a recent US Treasury report, China, Vietnam, Japan, and Taiwan hold the largest trade surpluses with the US, making them vulnerable to any retaliatory action.

The anticipated tariffs could further escalate tensions between Washington and its key trading partners, with analysts warning of potential spillover effects on global supply chains.

Asian stock markets’ reaction to tariff concerns

Asian stock markets have already felt the pressure of tariff concerns.

Since March 26, when Trump announced a 25% tariff on imported cars, Japan’s Nikkei 225 index has declined by 6%, while South Korea’s KOSPI has dropped by 5%.

China’s CSI 300 index and Hong Kong’s Hang Seng index hit nearly one-month lows on Monday as investors braced for further trade uncertainty.

Morgan Stanley analysts noted that Asian hedge funds suffered losses of around 60 to 70 basis points last week, bringing their average monthly return down by 0.37%.

In response, these funds significantly reduced their net leverage, which fell by six percentage points to 61% compared to the previous week.

By region, hedge funds flipped to net sellers in South Korea, anticipating volatility from the country’s decision to lift a five-year short-selling ban.

They also unwound consumer stock positions in China and exited sizable holdings in Taiwan. The outflows were mainly driven by multi-strategy and macro funds, according to Morgan Stanley.

Broader hedge fund positioning

The retreat from Asian markets is part of a broader trend of hedge funds cutting exposure globally.

A separate report from Goldman Sachs said that hedge funds have significantly reduced their holdings in major emerging markets, maintaining a higher number of short positions than long ones in Latin American and Asian equities so far this year.

In Asia, March saw particularly heavy selling of stocks, according to Goldman Sachs data. Short positions, which bet on declining asset prices, outnumbered long bets, which anticipate gains.

Funds have also scaled back investments in stocks closely tied to economic cycles.

Companies such as auto-parts manufacturers, select jewellery brands, and home furnishing retailers—sectors that typically struggle during periods of weak consumer spending—have seen notable declines in hedge fund interest.

European auto stocks, once a favoured trade for hedge funds earlier this year, are now being offloaded.

Selling pressure has intensified since Trump announced a 25% tariff on imported cars and light trucks set to take effect on April 3, with additional duties on auto parts scheduled for May 3.

Speculators have increased short bets on the sector, driving the ratio of long to short positions to near historic lows, Goldman Sachs noted.

Meanwhile, hedge funds have been net buyers of stocks linked to metals prices in recent weeks, accumulating positions at multi-year highs, according to the bank’s analysis.

The post Hedge funds exit Asian markets ahead of US tariff announcement on April 2 appeared first on Invezz

Barclays share price has stalled in the past two months as concerns about its investment banking division remain. The stock initially peaked at 316p on March 3 and has now pulled back to 293p as the focus shifts to the upcoming financial results and its investment bank division.

Investment bank challenges remain

Barclays is one of the top European banks with a valuation of over $53 billion. It is a giant company that operates in about 40 countries, including in the UK and New York. 

Barclays operates its business in two key segments: Barclays UK and Barclays International. The latter business includes its Corporate and Investment Bank (CIB) and Consumer, Cards, and Payments (CCP).

Its investment bank is involved in areas like mergers and acquisitions, corporate banking, FICC trading, and corporate lending. FICC stands for fixed income, commodities, and currencies. 

This division is going through major challenges this year as corporate activity slow in areas where Barclays operates. The volume of M&A in the US this year stand at $467 billion, a few points below the same period last year. In Europe, M&A volume has jumped by about 4% this year. The key bright spots in global M&A this year is in Canada, Japan, Asia, and Austraasia. 

Analysts are concerned that the Trump administration has not been all that friendly to corporate dealmaking as was widely expected. This performance means that the division could be a drag when the company publishes its financial results.

The most recent numbers showed that Barclays investment bank’s income stood at £2.6 billion in the fourth quarter, an increase from the £2 billion it made a year earlier. Its profit before tax increased slightly to £0.5 billion.

Barclays other businesses are doing well

The numbers showed that Barclays’ business did well in 2024 as its other divisions continued doing better than the management estimated. Its return on tangible equity rose to 10.5% in 2024, higher than the estimated 10.0%.

Like other European companies, Barclays is rewarding its shareholders well. It returned £3 billion to these shareholders last year through a combination of dividends and share buybacks. The dividends stood at £3 billion, giving it a yield of about 2.5%.]

Barclays aims to boost its shareholder returns by gradually reducing its CET-1 ratio, which stood at 13.6%. It will achieve that by distributing at least £10 billion to shareholders until 2026. This big number represents about 4% of the combined valuation.

Barclays is also working to align its costs. Its operating costs dropped by about 1% in 2024, while the company has committed to slash about £700 billion worth of cuts from its corporate and investment bank division through 2026.

Cutting these costs will be crucial as the company braces for more interest rate cuts that may affect its net interest income.

Barclays share price analysis

BARC stock chart by TradingView

The daily chart shows that the BARC share price has stalled in the past few months as concerns about its investment bank business remained. 

Barclays has remained slightly above the ascending trendline that connects the lowest swings since January 13. This trendline is the diagonal of the ascending triangle pattern, a popular bullish sign in technical analysis. 

Barclays share price has remained above the 50-day and 100-day moving averages, a sign that bulls have prevailed. 

Therefore, the stock will likely have a strong bullish breakout, with the initial target being the upper side of the triangle at 311p. A move above that level will point to further gains to 350p. However, a drop below the lower side of this triangle will signal more downside over time.

The post Barclays share price has stalled: will it rise or fall in April? appeared first on Invezz

The US auto industry saw a surge in sales last month as consumers rushed to purchase vehicles ahead of President Donald Trump’s new tariffs on imported cars and parts.

Several major automakers reported sharp increases in sales for March, as buyers sought to avoid the price hikes expected once the tariffs take effect.

“This past weekend was by far the best weekend I’ve seen in a very long time,” Randy Parker, the chief executive of Hyundai Motor North America, told reporters on Tuesday.

The company reported a 13% increase in March sales on Monday compared with a year earlier.

Ford Motor Company saw an even bigger jump, with a 19% rise in March sales at dealerships.

However, the company’s overall first-quarter sales dropped by 1% to about 500,000 vehicles due to weaker fleet sales.

General Motors did not disclose a separate figure for March, but its first-quarter sales rose 17% year-over-year, reaching 693,000 vehicles.

The rush to buy comes ahead of Trump’s planned 25% tariff on imported vehicles, set to take effect on Thursday.

The tariffs will extend to imported auto parts on May 3, posing a challenge even for cars assembled in the US, as many contain foreign components that make up more than half of their total value.

Analysts predict price hikes of over $10,000 for some models as automakers adjust to the new levies.

EVs and hybrids gain momentum

As overall sales climbed, electric vehicles (EVs) and hybrids experienced particularly strong growth, while traditional internal combustion engine (ICE) vehicles saw more modest increases or outright declines.

General Motors reported that its EV sales nearly doubled to 32,000 units in the first quarter, driven by the launch of the electric Equinox SUV, one of the most affordable EVs in the US market at a starting price of around $35,000.

Toyota saw hybrid and EV sales surge 44% in March to 113,000 units, making up nearly half of its total sales.

While Toyota remains dominant in the hybrid segment, its fully electric vehicle presence remains relatively small.

Ford said its hybrid sales rose 33% in the first quarter, while EV sales, including the Mustang Mach-E, climbed 12%.

Meanwhile, sales of ICE-powered cars dropped 5%.

Hyundai reported a 68% jump in hybrid sales, while EV sales edged up 3%.

BMW saw a 26% rise in EV sales, contributing to a 4% overall increase in its US sales for the first quarter.

Uncertainty looms over future pricing

Despite the strong March performance, automakers remain uncertain about how tariffs will impact their pricing strategies.

Hyundai and Kia, which operate factories in Georgia and Alabama, still import a significant number of vehicles from South Korea.

“We haven’t made any firm decisions yet,” Parker said.

However, he advised potential buyers not to wait, adding, “Don’t wait to buy tomorrow what you can buy today.”

The post How auto sales are surging ahead of Trump’s tariffs on imported vehicles appeared first on Invezz

Val Kilmer, the acclaimed actor behind iconic roles in Top Gun, Batman Forever, and The Doors, has died at the age of 65.

He passed away on Tuesday night in Los Angeles from pneumonia, according to his daughter Mercedes Kilmer.

Despite a battle with throat cancer diagnosed in 2014, Kilmer had recovered after multiple tracheotomies and extensive treatment.

Although Kilmer’s on-screen legacy spans decades, his financial story reflects a dramatic shift from one of Hollywood’s highest-paid stars in the 1990s to a more modest net worth in later years.

At the time of his death in 2025, his fortune was reportedly estimated at $10 million.

Kilmer’s peak Hollywood earnings

Val Kilmer’s career reached its financial zenith in the mid-’90s.

In 1995, he earned $7 million for Batman Forever — equivalent to about $12 million today — making him one of the top-paid actors of the era.

This was followed by a $7 million paycheque for The Saint and $6 million for The Island of Dr. Moreau in 1997, totalling $13 million in that year alone.

His highest single payday came in 1999 when he received $9 million for At First Sight.

These multi-million-dollar contracts made him a regular fixture on studio shortlists for blockbuster leads, with his intense method acting style and versatile performances often drawing both praise and friction on set.

Property, books, and royalties

Although Kilmer faced financial challenges later in life, including the cost of health treatments and the impact of a high-profile divorce, his wealth remained supported by a range of creative and business pursuits.

He previously owned a 6,000-acre ranch in New Mexico, which he began selling in parts in 2009.

By 2011, most of the property had been sold for $18.5 million, though he retained 160 acres until his death.

Kilmer also turned to writing, publishing I’m Your Huckleberry: A Memoir, which became a New York Times bestseller.

He had earlier released poetry collections and, in 2012, earned a Grammy nomination for his spoken word album The Mark of Zorro.

These projects, along with residuals from past roles, contributed to his $10 million net worth by 2025.

Health battles and final roles

Val Kilmer’s career slowed in the 2000s after back-to-back commercial failures such as Red Planet.

He transitioned to indie films and stage productions, including a one-man show, Citizen Twain, in 2012.

In 2017, he appeared in Terrence Malick’s Song to Song, and in 2022, he made a brief return as Iceman in Top Gun: Maverick, reportedly earning $400,000 for the cameo, though the figure was never confirmed.

Despite his limited speaking ability following trachea surgeries, his performance in Top Gun: Maverick received attention for its emotional resonance.

The film marked a significant public return and introduced Kilmer to a new generation of viewers.

Method acting and controversy

Known for his commitment to roles, Kilmer trained under the Suzuki Method and often stayed in character off-camera.

While filming Tombstone, he reportedly filled his bed with ice to mimic the symptoms of tuberculosis.

For The Doors, he wore leather pants year-round and insisted on being called Jim Morrison by the cast and crew.

These intense preparations, however, earned him a reputation for being difficult on set.

Filmmakers such as Joel Schumacher and John Frankenheimer publicly criticised his behaviour, though others like Irwin Winkler acknowledged his talent and creative input.

Kilmer acknowledged the friction in his 2021 documentary Val, stating that his dedication to artistic truth sometimes alienated studio heads.

In his memoir, he noted, “I had been deemed difficult and alienated the head of every major studio.”

His political activity included supporting Ralph Nader’s 2008 campaign and advocating for religious exemptions to Obamacare in 2013.

In 2009, he considered running for governor of New Mexico, where he lived.

Val Kilmer is survived by his children, Mercedes and Jack Kilmer.

The post Val Kilmer dies at 65 in Los Angeles, leaving behind $10 million fortune appeared first on Invezz

Groupon stock price has rebounded this year as its financial results showed that its turnaround was working. GRPN shares have risen in the last four consecutive weeks, and are hovering at the highest swing since March 11. It has jumped by 137% from its lowest level in 2024. 

Groupon’s turnaround is showing results

Groupon is an American company offering local e-commerce solutions across the country. At its peak, it was one of the top competitors to other companies in the industry like eBay and Amazon. It was so successful that it rejected a $6 billion buyout from Google. Today, the company has a market cap of $747 million.

Groupon has been affected by changing consumer behavior over time. In particular, the company’s business was affected by the growth of companies like Amazon and Walmart, which have subscription services that guarantee faster deliveries.

These packages have attracted millions of customers in the US, who prefer their solutions to other smaller e-commerce firms. Indeed, other e-commerce companies in the US like Etsy and eBay have also slipped in the past few years.

Groupon’s business has also been affected by the management’s decision to slash marketing costs as a percentage to its revenues.

In the past few years, however, the management has been working to turn the company around by focusing on three pillars: marketplace health, platform modernization, and financial strength.

There are signs that these pillars are progressing well. For example, in its marketplace health, the company has stopped chasing volume, and shifting to focusing on value. This strategy is working as its billings have improved after falling a few years ago.

Further, on platform modernization, the company is now focusing on data-driven marketing to grow its sales, while its finances have moved from negative EBITDA and free cash flow toa positive one.

Improving financials and return to growth 

Groupon’s business has been losing ground in the past few years as its annual revenues have plunged. Data shows that its annual revenue dropped from $1.416 billion in 2020 to $967 million in 2021.

Sales then dropped to $967 million in 2021, $599 million in 2022, $514 million in 2023, and $492 million in 2024.

Analysts believe that the company’s trend could be about to change, helped by the management’s turnaround efforts. As a result, the average estimate among analysts is that its annual revenue will be $496 million this year followed by $533 million in 2026.

The management, on the other hand, estimates that its revenue will be between $493 million and $500 million this year. Most importantly, after recording negative EBITDA for years, the company expects that its EBITDA metric will grow to between $70 million and $75 million. Its free cash flow will be at least $41 million.

Therefore, this progress will likely help to support its stock price in the coming months since the current numbers show that it is a highly overvalued company.

Groupon stock price analysis 

GRPN stock chart | Source: TradingView 

The weekly chart shows that the Groupon stock price has been in a strong recovery in the past few weeks. It jumped and now sits at a crucial resistance level where it has failed to move above two times before.

GRPN stock has formed an ascending triangle pattern, a popular continuation sign in technical analysis. The stock sits above the 50-week moving average, and slightly above the 23.6% Fibonacci Retracement level.

Therefore, the path of the least resistance for the stock is bullish, with the next resistance level to watch being at $26.70, the 38.2% Fibonacci Retracement level, which is about 45% above the current level. A move above that level will bring the 50% retracement at $34, up by 82% from the current point.

The post Groupon stock price analysis: to surge by between 45% and 85% appeared first on Invezz

Bill Gates, the visionary behind Microsoft, has openly stated that his three children will inherit a relatively small fraction of his colossal fortune – less than one percent, to be exact.

While that sliver still translates to billions, the decision places him among a growing cohort of tech titans prioritizing philanthropy over passing down generational wealth.

The billion-dollar inheritance

According to the Bloomberg Billionaires Index, Gates’ current net worth hovers around a staggering $162 billion.

One percent of that equates to $1.62 billion.

While this is a significant amount, it is still a small percentage of Gates’s overall wealth.

That inheritance will likely still catapult them into the top 1% of wealthiest individuals globally, defined by Knight Frank as those possessing $5.8 million or more.

Gates’ philosophy on wealth and opportunity

In a recent conversation on the ‘Figuring Out With Raj Shamani’ podcast, Gates articulated his reasoning behind this decision, emphasizing personal beliefs as the driving force for inheritance plans among wealthy families.

“Everybody gets to decide on that,” Gates stated, adding, “In my case my kids got a great upbringing and education but less than 1% of the total wealth because I decided it wouldn’t be a favor to them.”

He continued, “It’s to a dynasty, I’m not asking them to run Microsoft. I want to give them a chance to have their own earnings and success.”

His comments echo sentiments shared with the Daily Mail in the past, where he mentioned earmarking $10 million for each child, believing larger sums would be detrimental.

While it remains unclear if his plans have shifted to reflect the 1% allocation, his core philosophy remains consistent.

Gates stressed his desire for his children to achieve significance independent of their father’s success. He doesn’t want them “overshadowed by the incredible luck and good fortune [their father] had.”

He further explained, “You don’t want your kids to ever be confused about your support for them and your love for them. So I do think explaining early on your philosophy: that you’re going to treat them all equally and that you’re gonna give them incredible opportunities, but that the highest calling for these resources is to go back to the neediest through the foundation.”

Having witnessed their parents’ dedication to philanthropic endeavors such as eradicating polio, improving water sanitation, and developing life-saving vaccines, Gates hopes his children will carry a sense of pride in these efforts.

He also noted a growing trend, stating, “I’ve seen cases where kids actually tell their parents to be more philanthropic. I think the younger generation sometimes actually is pushing against this idea of the wealth just being passed down.”

Gates joins a growing list of tech giants who are choosing to donate their wealth to charitable causes, rather than passing it down to their offspring.

Laurene Powell Jobs, the widow of Apple co-founder Steve Jobs, has publicly stated that the billions she inherited will not be passed on to their children.

Jobs, who was worth an estimated $7 billion at the time of his death in 2011, “wasn’t interested” in building legacy wealth, his wife told The New York Times in 2020.

“I inherited my wealth from my husband, who didn’t care about the accumulation of wealth,” she said.

I am doing this in honor of his work, and I’ve dedicated my life to doing the very best I can to distribute it effectively, in ways that lift up individuals and communities in a sustainable way. If I live long enough, it ends with me.

Amazon’s founder, Jeff Bezos, has made similar commitments, pledging to donate the majority of his wealth to philanthropic causes.

Gates believes this trend reflects a broader shift within the tech sector. “I think people who’ve made fortunes from technology are less dynastic,” he observed.

So they’ll take their capital and give a lot of that away. You can have the view of giving away your capital or just giving away your earnings. I love all philanthropy but the tech sectors, they’re probably the most aggressive about giving most of it away.

The post Bill Gates’ $162 billion fortune: how much will his children inherit? The answer may surprise you appeared first on Invezz

Rocket Companies (NYSE: RKT) has announced the acquisition of Mr. Cooper in an all-stock transaction valued at $9.4 billion.

The deal comes just weeks after Rocket’s acquisition of real estate listing company Redfin, signaling an aggressive expansion strategy.

Shares of Mr. Cooper surged more than 27% pre-market following the announcement.

On market open, the stock was up by more than 16%.

However, Rocket Companies was down by more than 7%.

Under the terms of the agreement, Mr. Cooper shareholders will receive 11 Rocket shares for each share of Mr. Cooper common stock.

This value Mr. Cooper shares at $143.33 based on Rocket’s closing price as of March 28, 2025, representing a 35% premium over Mr. Cooper’s 30-day volume-weighted average price.

Once finalized, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will hold the remaining 25%.

A combined servicing portfolio of $2.1 trillion

With the acquisition, Rocket will significantly expand its mortgage servicing business.

The combined company will oversee a servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in the US

Rocket aims to leverage its mortgage recapture capabilities to enhance long-term customer relationships and drive higher loan volumes.

“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” said Varun Krishna, Rocket CEO.

“With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.””

Mr. Cooper Chairman and CEO Jay Bray echoed this sentiment, emphasizing the complementary strengths of the two companies.

“By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry,” Bray said.

“We are creating an end-to-end homeownership experience backed by leading technology and customer care.”

Revenue growth and cost synergies

The deal is expected to generate significant financial benefits.

Rocket anticipates an additional $100 million in pre-tax revenue due to improved mortgage recapture rates and the integration of its title, closing, and appraisal services into Mr. Cooper’s operations.

Additionally, the company projects $400 million in pre-tax cost savings from streamlining operations, reducing corporate expenses, and optimizing technology investments.

Following the acquisition, Rocket’s combined servicing portfolio will generate steady earnings growth regardless of interest rate fluctuations.

In 2024, the two companies’ servicing businesses collectively generated $4 billion in revenue.

Rocket has a history of strong client retention, boasting an 83% mortgage recapture rate—triple the industry average.

The acquisition of Mr. Cooper is expected to enhance this figure further, leveraging data from nearly 7 million additional clients and 150 million annual customer interactions.

Outlook and regulatory approvals

The transaction, subject to regulatory approvals and shareholder votes, is expected to close by early 2026.

Mr. Cooper will also pay a $2.00 per share dividend to its shareholders before the deal’s completion.

With this acquisition, Rocket aims to reinforce its position as a dominant force in the U.S. mortgage industry, delivering an integrated and data-driven homeownership experience.

The post Mr. Cooper (COOP) soars on $9.4B Rocket Companies takeover: what investors need to know appeared first on Invezz

Newsmax, the conservative cable news network, made its public debut on the New York Stock Exchange on Monday, defying market trends with an explosive opening.

Trading under the symbol “NMAX,” the stock opened at $14 after being priced at $10 per share.

By midday, it had soared more than 500% in volatile trading, attracting comparisons to past speculative frenzies seen in so-called meme stocks.

The IPO raised $75 million through the sale of 7.5 million Class B shares, marking a rare instance of a standalone television network going public in the US.

Dealogic data indicates that no comparable cable news IPO has occurred in recent decades.

Newsmax’s listing comes at a time when traditional cable television faces increasing pressure from streaming platforms.

Yet, live news and sports continue to draw strong viewership, making them attractive targets for advertisers.

The network’s audience has expanded in recent years, fuelled by the rise of Donald Trump and other right-wing politicians.

Retail investors drive speculation in NMAX

The dramatic surge in Newsmax’s stock price quickly caught the attention of retail traders.

Online forums and social media platforms, including Reddit and Stocktwits, saw a wave of posts likening the stock to GameStop’s 2021 rally.

One Reddit user commented that Newsmax shares were being “sent to the moon,” a reference to the speculative trading craze that drove up struggling stocks like GameStop and AMC Entertainment.

While institutional investors have been cautious about Newsmax’s financial health, retail traders appeared undeterred.

The network reported a loss of more than $55 million in the first half of 2024 on a revenue of $80 million, according to regulatory filings.

It also listed $142 million in total liabilities against $69 million in assets.

The surge in Newsmax’s stock price mirrors past IPO booms that saw early sky-high valuations collapse over time.

Analysts noted that two dozen companies that posted similar 300%-plus gains on debut have since fallen by an average of 85% from their IPO prices.

A challenger to Fox News

Christopher Ruddy, Newsmax’s founder and CEO, described the IPO as a strategic move to position the network as a competitor to Fox News.

“I think there was a demand for more competition against Fox,” Ruddy said on CNBC’s “Squawk Box” on Monday.

He emphasized that while Fox dominates right-wing media, Newsmax had carved out its own audience as the fourth-largest cable news network behind CNN, MSNBC, and Fox News.

Nielsen ratings confirm that Newsmax consistently ranks fourth in cable news viewership, and overall, it is among the top 20 cable networks in both prime-time and daytime ratings.

Newsmax initially started as a digital news outlet in 1998 before evolving into a cable channel in 2014.

The company has grown its revenue model by securing licensing fees from major pay-TV providers.

In 2023, it resolved a dispute with DirecTV, which had briefly dropped Newsmax over fee negotiations.

Analysts question long-term viability

Despite the initial stock frenzy, analysts caution that Newsmax’s business model faces challenges.

Traditional cable news networks have struggled with declining subscriptions as more viewers turn to streaming.

Fox News, CNN, and MSNBC have diversified their offerings, while Newsmax remains heavily reliant on cable distribution.

The company’s pro-Trump reputation has also drawn scrutiny.

Last year, Newsmax reached a $40 million settlement with Smartmatic over false claims that the voting machine company rigged the 2020 election.

However, Ruddy sought to downplay Newsmax’s political leanings during the IPO launch.

“We believe we’re conservative with an independent news mission and ask tough questions of the Trump administration,” he said.

Following Newsmax’s market debut, Trump personally called Ruddy to discuss the company’s future.

In a social media post, Ruddy shared that their conversation touched on the IPO, adding: “I shared with Potus my new saying: ‘A rising Trump lifts all boats!’”

The post Trump effect? Newsmax (NMAX) stock soars 500% on NYSE debut as right-wing media demand surges appeared first on Invezz

US stocks are ending March with a decline they haven’t seen in a single month since September of 2022 as the White House continues to stir uncertainty for global investors.

Fears of Trump’s tariffs leading to trade tensions and even a recession eventually pushed the S&P 500 index into the correction territory this month.

However, the benchmark is positioned for some relief in April, according to Ari Wald. He’s a senior technical strategist at Oppenheimer.

History says the S&P 500 will gain in April

Trump’s trade policies triggered a massive sell-off in the US tech stocks this month that ultimately saw the S&P 500 tank below its 200-day MA.

Historically, the benchmark index ends up recovering in April when it starts the month below that long-term moving average, the Oppenheimer strategist argued in his latest report.  

Ari Wald analyzed data for the past 75 years to conclude that SPX tends to gain about 2.5% on average in April when the aforementioned conditions are met.  

Plus, the implementation of new tariffs on April 2 (Liberation Day) could at least offer some certainty, which may also help US stocks inch up a little in the coming months.

Note that the benchmark S&P 500 index is currently down more than 8% versus its year-to-date high.   

Long-term remains foggy for the S&P 500

While the Oppenheimer strategist signaled potential for a near-term bounce in the S&P 500, he remains cautious on US stocks for the longer term.

Ari Wald agreed that a potential recovery in the benchmark index in April could prove short-lived, adding,“investors buying the current sell-off should be keying on relative strength and thinking in terms of long-term accumulation.”

Among the names that Oppenheimer calls “favourites” heading into April are giants like Costco that stand to benefit from its “unique and improving consumer value proposition” amidst a potential recession.

A 0.49% dividend yield makes COST all the more attractive to own at current levels.

Goldman Sachs lowers S&P 500 target again

Goldman Sachs agrees with Wald’s longer-term view on the S&P 500. The investment firm trimmed its year-end target on the benchmark index again to a Street-low on Monday.

Its chief of US equity strategy, David Kostin, now expects SPX to remain capped at 5,700 in 2025, which indicates potential for a little over 1.0% gain only from current levels.

“These estimates incorporate downward revisions to earnings growth and valuations, reflecting a weaker base case economic growth backdrop, higher uncertainty, and higher recession risk,” he told clients in a recent note.

Note that Goldman Sachs had already lowered its year-end target on the S&P 500 index earlier in March from 6,500 to the 6,200 level. So, today’s cut to 5,700 marked the second time it has trimmed the target on SPX.

The post Will the S&P 500 rebound in April after its worst monthly drop since 2022? appeared first on Invezz

Celsius Holdings Inc (NASDAQ: CELH) rallied as much as 10% on Monday after a Truist analyst said the company’s focus on women as a target market could unlock significant upside in its share price.

In a research note, the investment firm upgraded CELH this morning to “buy”.

Its analyst Bill Chappell upwardly revised his price target on Celsius stock today to $45 that indicates potential upside of another 25% from current levels, which is exciting given it has already more than doubled since mid-February.

Chappell is bullish on CELH’s Alani acquisition

Truist continues to see significant further upside in Celsius shares particularly because the Nasdaq listed firm announced plans of acquiring Alani Nu brand for $1.65 billion last month.

Alani had been cutting into Celsius sales that have declined about 6% in recent months.

But that overhang will effectively be removed from CELH once it completes its cash and stock agreement with Alani, its analyst Bill Chappell told investors in a note today.

Together, Celsius and Alani currently own about 16% of the US energy drinks space.

However, their combined share sits at a much higher, close to 50%, in the women segment of that market.  

Note that Celsius stock does not currently pay a dividend, though.

Celsius to expand its footprint in women segment

Chappell expects the Alani acquisition to help Celsius dominate the women segment of the US energy drinks market.

This could prove lucrative for CELH as women are increasingly accounting for a bigger chunk of that category’s sales.

At writing, they drive less than 30% of the energy drink sales globally.

However, the Truist analyst is convinced that women will generate a well over 100% growth in that market in the future.

Meanwhile, rivals like Red Bull and Monster Beverage “have been built to focus on male consumers”, leaving this whole, fast-growing segment entirely for Celsius to own, Chappell added.

Should you buy Celsius stock today?

Celsius stock is now trading at a year-to-date high but Truist continues to recommend loading up on it for the strength of the company’s financials as well.

In February, the energy drinks giant reported 14 cents a share of earnings on a record revenue of about $332 million for its fiscal Q4.

Analysts, in comparison, were at 11 cents per share and $326 million, respectively.

At the time, Jarrod Langhans, CELH’s chief of finance told investors:

We’re pleased that our strategic initiatives are driving long-term share gains and strong retail sales growth.

We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders.

The rest of the Wall Street also recommends buying Celsius stock with the mean target of $40 indicating about a 10% upside from here.

The post Celsius bets on women consumers—will its stock soar? appeared first on Invezz