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Affirm secures largest-ever funding: what it means for investors

Affirm Inc (NASDAQ: AFRM) opened in the green this morning after private-credit firm Sixth Street agreed to buy up to $4 billion worth of its consumer installment loans.

The transaction marks largest-ever capital commitment for the buy now, pay later company.

Sixth Street has signed a “forward-flow agreement” with Affirm, meaning it has committed the capital even before the loans have originated.

Affirm stock is now up some 200% versus its year-to-date low in early August.

What Sixth Street deal means for Affirm stock

The deal Affirm announced with Sixth Street today allows it to support loan originations worth more than $20 billion over the next three years.

Non-bank lenders have been aggressively buying consumer loans from BNPL names like Affirm in recent months to expand in the asset-based finance market that’s estimated to be worth $5.2 trillion.

The Sixth Street news arrives only days after Prudential Financial bought about $500 million of loans from AFRM.

Others that have loaded up on debt portfolios recently include Blue Owl Capital and Fortress Investment Group.

Note that Affirm stock is still down significantly from its high of $164 in late 2021.

Affirm’s financials speak for themselves

Michael Dryden – the head of asset-based finance at Sixth Street sees “tremendous opportunity in this partnership” as Affirm is unparalleled in offering flexible and scalable financing solutions.

“We look forward to being a key funding partner and continuing to build on this relations to support the company’s [AFRM] growth in the years to come,” he added in a press release on Friday.

Affirm’s gross merchandise volume (GMV) surpassed $28 billion in the 12 months through September.

Last month, the buy now, pay later company reported better-than-expected financial results for Q1.

AFRM narrowed its per-share loss on a year-over-year basis to 31 cents as revenue increase 41% to $698 million.

Affirm now expects to hit GAAP profitability in the final quarter of 2025.

Affirm stock to extend rally in 2025

Affirm’s current-quarter guidance for revenue and GMV also surpassed analysts’ forecasts at the time.

That’s part of the reason why BTIG analyst Vincent Caintic sees upside in AFRM to $81.

His price target indicates potential for another 14% upside from current levels.

Caintic expects financial technology companies “to occupy much of the debate in 2025”.

He’s convinced that a sharp increase in volume and solid operating income margins will drive Affirm stock furth up in 2025.

Other notable recent developments at Affirm include UK expansion, team up with Apple Inc, and the roll out of Affirm card.

These initiatives will likely help the company unlock future growth as well.

Our market analyst Crispus Nyaga also expects Affirm shares to enter beast mode in 2025.  

The post Affirm secures largest-ever funding: what it means for investors appeared first on Invezz

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Rally’s $13.75 mn Stegosaurus IPO is bringing fossils to the market. Should you invest?

Forget traditional investments like stocks or cryptocurrency—Rally, a platform specializing in fractional ownership, has launched a groundbreaking $13.75 million IPO for a Stegosaurus fossil.

Known as “Steg,” the fossil is being unearthed on a private plot of land in northern Wyoming.

Rally co-founder Rob Petrozzo told MarketWatch the offering is being valued at $13.75 million, with 200,000 shares available, priced at $68.75 apiece.

Investors can purchase shares starting today, and “Steg” is expected to officially begin trading on Dec 20.

Unlike most assets on Rally, which are typically traded like traditional equities with the option to buy and sell at any time, “Steg” comes with a unique proposition.

According to Petrozzo, once shares are purchased, they cannot be traded on the platform.

Instead, the plan is to sell “Steg” within 18 to 24 months, likely at a profit, through an auction or private sale, with the proceeds distributed among shareholders.

“This is a premium specimen,” said Rob Petrozzo, Rally’s co-founder.

He emphasized that “Steg” is already 67% complete, and more pieces are being discovered during the ongoing excavation process.

Demand for dinosaur skeletons skyrockets

Dinosaur fossils have become increasingly popular in the collector market, often fetching multi-million-dollar sums.

Hedge fund billionaire Ken Griffin’s acquisition of a Stegosaurus skeleton, nicknamed “Apex,” for $44.6 million at a Sotheby’s auction in July is a prime example of this growing trend.

Christie’s recent auction saw three dinosaur skeletons sell for $15.7 million combined, further underscoring the rising interest in prehistoric artifacts.

“It’s a brand-new market,” Petrozzo said, highlighting the surging demand for high-quality fossils.

Can fossils be considered reliable investments?

Despite the buzz, some experts remain cautious about dinosaur skeletons as an investment category.

Stephen Fishler, CEO of ComicConnect, points to the variability in quality and completeness as a potential hurdle.

“We’re far from a marketplace where fossils can be considered reliable investments,” Fishler said.

Fossils vary significantly, with some being only half-complete while others reach 80% or more.

Missing bones are typically filled in with replicas for display, complicating valuations.

Still, Rally is confident in the quality of “Steg,” describing it as a rare and highly desirable specimen.

Other accessible options for fossil enthusiasts

Not all dinosaur enthusiasts need to invest millions.

Individual bones and teeth can be purchased for hundreds or thousands of dollars through collector shows and online marketplaces.

Quincy Hansen, a Fort Collins-based fossil collector, regularly searches for smaller fossils, spending as much as $750 on individual items.

Hansen also prospects for fossils in the field, occasionally uncovering rare finds.

“You never know what you’ll discover,” Hansen said, holding onto the hope of a major find someday.

Rally’s Stegosaurus IPO highlights the potential of fossils as an alternative investment class.

Whether it’s the start of a thriving market or a speculative experiment, “Steg” offers investors a unique chance to own a piece of ancient history.

The post Rally’s $13.75 mn Stegosaurus IPO is bringing fossils to the market. Should you invest? appeared first on Invezz

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Politics

Brazil’s IBC-Br index reports weakest growth in three months at just 0.1% in October, exceeding forecasts

The IBC-Br Index of Economic Activity in Brazil, a key indicator of economic performance, rose 0.1% month on month in October 2024.

This increase comes after a significant revision to September’s numbers, which showed a healthy expansion of 0.9%.

While October’s slight increase was disappointing, it exceeded market forecasts, which predicted a 0.2% fall.

However, this new data represents the worst month of growth since a 0.3% decline in July, indicating possible hurdles for the Brazilian economy.

The slow performance seen in October can be attributable mostly to reductions in important sectors such as industrial production and retail sales.

Industrial output fell 0.2%, in sharp contrast to the 1% increase achieved in September.

Similarly, retail activity slowed, rising only 0.4%, compared to 0.6% the previous month.

These numbers show that domestic consumption and industrial demand may weaken, raising analysts’ concerns about Brazil’s economic resiliency in the face of global uncertainty.

Services sector displays unexpected strength

Despite the sluggish industrial and retail performance, the services sector outperformed expectations.

The services industry, which accounts for around 70% of Brazilian economic activity, expanded by an outstanding 1.1% in October, following a significant 1% growth in September.

This unexpected increase in services came as a relief, implying that, at least for the time being, consumer spending remains strong in this sector.

It may be boosted by ongoing recovery efforts following the epidemic and rising demand for services such as hospitality and healthcare.

The performance gap between the services and manufacturing sectors reveals an important facet of Brazil’s economic landscape: while the country continues to face industrial issues, consumer services may be more resilient.

This trend could substantially impact future economic policies and tactics targeted at promoting growth in the overall economy.

Year-on-year growth indicates recovery

On a non-seasonally adjusted basis, the IBC-Br Index increased by an impressive 7.3% from October 2023.

This significant gain represents a strong year-on-year recovery, demonstrating the Brazilian economy’s resilience as it continues to recover from the effects of prior economic downturns.

Furthermore, when looking at growth over the previous 12 months, the IBC-Br showed a healthier 3.4% growth rate, indicating a progressive recovery trajectory.

These year-over-year figures provide a more optimistic outlook, contrasting with the more subdued month-on-month changes.

They suggest underlying improvements in various sectors as the economy adjusts and stabilizes, despite the short-term fluctuations witnessed in recent months.

Outlook: upcoming challenges and opportunities

Looking ahead, Brazil’s economy faces various hurdles as it navigates local and foreign pressures.

The reductions in industrial output and retail activity raise concerns that the recovery may not be uniform across all sectors.

Economic analysts emphasize the significance of continued government assistance and targeted investments to boost growth in manufacturing and retail, which are critical components of the broader economy.

Furthermore, as the global economic environment becomes more unstable, relying just on the service sector may be insufficient to maintain growth.

Policymakers and business leaders must identify ways to boost industrial productivity, promote investment, and strengthen resilience to external shocks while also supporting the rising services sector.

In conclusion, while October’s performance indicates a critical fall in Brazil’s economic activity, considerable year-on-year improvements and excellent performance in services point to underlying strengths.

A strategic focus on rejuvenating the industrial and retail sectors should pave the way for more balanced growth in the coming months as Brazil navigates its way to a more sustainable economic future.

The post Brazil’s IBC-Br index reports weakest growth in three months at just 0.1% in October, exceeding forecasts appeared first on Invezz

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Politics

Argentina’s economy contracts 2.6% in Q3 2024, but shows signs of recovery

Argentina’s economy has just suffered a significant setback, contracting by 2.6% in the third quarter of 2024 as compared to the same period the previous year.

This is a noteworthy milestone since it represents the sixth consecutive quarter of year-on-year contraction in Gross Domestic Product (GDP), depicting a bleak picture of economic stagnation.

However, despite this dismal result, there has been a remarkable development: the country’s GDP increased by 3% over the previous quarter.

This positive change suggests a departure from the technical recession that has plagued the economy since the latter part of last year.

While the current scenario provides a complicated, mixed picture; it also represents an ongoing battle against deep-rooted economic issues while also pointing at a weak but potential route to recovery.

In assessing current economic conditions, new figures issued by the INDEC statistics agency show a consistent pattern of decline.

Specifically, economic activity fell by 3.3% year on year in September, 3.7% in August, and 1% in July 2024.

At this steady pace, it is clear that Argentina’s economy is still struggling with significant inertia toward recession, despite efforts by the government to stabilize and reorient the country’s economic trajectory in the face of these obstacles.

Javier Milei’s administration and its impact

The administration of Libertarian President Javier Milei has taken many severe and radical measures to reduce public spending and pursue a contentious plan for mass layoffs in the public sector.

While these measures are meant to reduce inflation and strengthen public finances, they have resulted in a significant decline in economic activity across a variety of sectors.

As a result, despite these rigorous measures, Argentina now has one of the world’s highest inflation rates, reaching an amazing 166%.

The consequences of these austerity policies have been severe, resulting in a rise in poverty rates that currently exceed an alarming 50%.

This complicated situation calls into doubt the social consequences of Milei’s economic reforms, raising worries about the policies’ long-term viability in light of their widespread detrimental effects on the populace.

Nonetheless, Milei’s administration has received some credit for its efforts to restructure state finances, which have long been hampered by widespread and unsustainable public expenditure.

However, the ultimate success of these changes will be determined by the government’s ability to successfully and positively revive and revitalize Argentina’s struggling economy.

Future expectations: is there a light at the end of the tunnel?

Eugenio Mari, head economist at Fundación Libertad y Progreso, believes that an expected 3% increase in GDP over the preceding quarter indicates that a recovery trend could strengthen in 2025.

“Let’s hope this trend solidifies in 2025,” Mari said to Reuters, offering a ray of light in an otherwise dark and volatile economic scene.

These estimates highlight the durability and potential for growth that may arise if conditions are favourable.

The government’s plans, as evidenced by the draft budget for the coming year, are for an aggressive 5% GDP growth objective in 2025.

However, achieving these goals will be a daunting task, especially in an atmosphere marked by increased market scepticism and social pressures.

The route forward will include not only prudent economic management but also a solid strategy for regaining the trust of both citizens and investors.

Importance of investment and confidence

Investors’ and residents’ faith in the government’s policies and governance is critical to any economic revival.

While Milei’s administration has taken strong moves to address the current crisis, the successful implementation of effective, long-term reforms will be vital to preventing the country from falling back into recession.

The urgent need to create jobs and effectively address rising poverty rates cannot be stressed; any delays in encouraging economic recovery are likely to have severe consequences for the people as a whole and could exacerbate social dissatisfaction.

Even while considerable progress has been achieved in restoring public finances, Argentina’s economic prospects are nevertheless hampered by the weight of history.

Authorities face the difficult task of striking a delicate balance between enforcing required austerity measures and encouraging incentives that support growth and investment.

Creating an economic environment that encourages thriving firms while also improving the living standards of ordinary residents will be critical for long-term success and stability.

Argentinian economy: a mosaic of contradictions and challenges

Overall, Argentina’s current economic condition is a complicated mosaic of contrasts and obstacles.

While the year-on-year decrease in GDP is troubling and symptomatic of long-term concerns, indicators of economic expansion recorded in the previous quarter provide a preliminary indication of a potential rebound on the horizon.

President Javier Milei’s government faces enormous obstacles, not only in managing the complexities of the economy but also in addressing and alleviating the socioeconomic situations that impact the people.

The road to recovery may be difficult and plagued with challenges, but it is not impossible if it is traversed with caution, unshakable devotion, and a clear long-term vision for economic and social revitalization.

The post Argentina’s economy contracts 2.6% in Q3 2024, but shows signs of recovery appeared first on Invezz

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Business

Uber stock forms a risky pattern as fresh concerns rise

Uber stock price has suffered a harsh reversal in the past few weeks, erasing billions of dollars in value. It has retreated by about 30% from the year-to-date high of $86.85, moving to its lowest level since August 6. This retreat has brought its market cap to over $129 billion, down from over $160 billion a few months ago.

Growing market leader

Uber Technologies has become one of the fastest-growing companies in corporate America. It is a disruptor that has gained substantial market share in the ride hailing and the food delivery industry.

Uber’s total annual revenue has risen from over $13 billion in 2019 to over $41 billion in the trailing twelve months (TTM). This growth has accelerated as more people are opting to not having vehicles, and are instead opting for ride hailing solutions.

Most importantly, Uber has broken even and started to make profits. It moved from an annual loss of over $9.1 billion in 2022 to a profit of $1.88 billion in the last financial year. Its trailing twelve-month (TTM) profit stood at over $4.4 billion. 

The most recent financial results showed that the number of monthly active platform consumers rose by 13% to 161 million. Trips rose by 17% to 2.86 million, a sign that demand is rising. 

Consequently, Uber’s total revenue jumped by 20% to $11.1 billion, while its net income was over $2.6 billion. Its adjusted EBITDA rose to over $1.6 billion, meaning that the company is now getting highly profitable.

Uber’s growth is happening across all its businesses. Its mobility division had gross bookings of $21 billion, a big increase from the $17.9 billion it had last year. Analysts believe that products like Tesla’s robotaxi will hurt this business, which I don’t believe.

Similarly, its delivery business had gross bookings of $18.6 billion and an adjusted EBITDA of $628 million. This is a big improvement since this is one of its toughest businesses. 

Uber’s key challenge is in its freight business, which offers transport and freight solutions. Uber Freight had over $1.3 billion in revenue and a negative EBITDA of $19 million.

Uber’s growth and valuation

A key challenge for Uber is that analysts expect that its business will start slowing going forward. The average revenue estimate for the current quarter is a 18.4% growth to $11.7 billion. 

Uber’s revenue for the first quarter is expected to be $11.8 billion, a 16% annualized growth. The annual revenue this year will be $43.7 billion, followed by $50.5 billion in the next financial year. 

Still, one hope for Uber is that its goal for creating a super app will help to reinvigorate growth. One way is for the company to expand to the fintech industry, as some other ride-hailing companies have done. It can become a viable competitor to Cash App and Venmo. 

Uber is also fairly valued since it has a forward P/E ratio of 21, which is lower than the S&P 500 average’s 20. It is also cheaper than other companies despite the fact that it is still seeing strong growth.

Uber stock price forecast

UBER chart by TradingView

The daily chart shows that the Uber share price has pulled back in the past few days. This retreat happened after it formed a double-top pattern at $82, and whose neckline was at $55. 

The stock has dropped below the 50-day and 200-day moving averages, signaling that bears are in control. There is also a risk that it will form a death cross pattern, which happens when the two averages cross each other. 

Oscillators like the Relative Strength Index (RSI) and the MACD indicators have all pointed downwards. 

Therefore, the stock will likely continue falling as sellers target the neckline at $55. A drop below that level will point to it falling to the support at $40.3, its lowest swing on October 26. 

The post Uber stock forms a risky pattern as fresh concerns rise appeared first on Invezz

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Micron stock price forecast ahead of earnings: buy or sell?

Micron stock price will be in the spotlight as it publishes its final quarterly results next week. These numbers will come at a time when the MU share price has crashed by about 35% from the year-to-date high, moving it into a deep bear market. 

Micron stock braces for earnings

Micron is one of the biggest companies in the semiconductor industry. Its main focus is on industries like Dynamic Random Acces Memory (DRAM), NAND, and NOR memory solutions that are used across the technology industry. 

DRAM memory solutions are mostly used in industries like data centers, PCs, automotive, and industrial markets. NAND, on the other hand, are non-volatile and re-writeable semiconductor storage devices used in industries like automotive, printer, and home networking solutions.

Similarly, NOR are memory solutions that are mostly used in the automotive, industrial, and consumer electronics. Micron competes with other top companies like Samsung, SK Hynix, and Western Digital.

Its business has gone through a mixed period in the past few years. Its revenue peaked at over $30.7 billion in 2021 and then plunged to $15.5 billion in the following year. The last financial year results showed that its revenue rose to over $25.1 billion, and analysts predict a swift recovery in the coming years.

Micron’s key challenge has been the relatively soft demand across its business and the rising competition, especially from South Korean companies. Also, its business has been caught up in the ongoing geopolitical tensions between the US and China.

Earnings expectations

The most recent results showed that the company did relatively well, with its annual revenue rising by 60%, while its gross margins expanded by about 30%. Most of this growth was driven by the data center business as investments in artificial intelligence grew.

Micron’s business grew also because of the ongoing recovery in the PC market. Data by Canalys estimated that PC sales grew by 3% in the second quarter as the post-pandemic refresh cycle continued. 

On the other hand, Gartner estimated that worldwide PC shipments grew by 5.6% in Q3, with over 17 million PCs shipped. This growth is notable since most computers have a Micron product inside them. 

Micron is also benefiting from the robust automobile sector. While the growth is muted, Micron recorded a record year automotive revenue as companies invested in infotainment and ADAS solutions. 

These revenues came in at $7.8 billion, a 93% YoY increase. DRAM revenue rose to $5.3 billion, while NAND jumped to $2.4 billion.

Analysts expect that Micron’s business did well in the last quarter. Revenue is expected to come in at $8.7 billion, a 84% annualized growth. The highest estimate by analysts is that its revenue will be $8.92 billion. 

For the new financial year, analysts expect that its revenue will be $38 billion, a 51% annual increase. It will then hit $46 billion in the next financial year.

Micron is also expected to boost its profits, with its earnings per share coming in at $1.77, a big increase from the 95 cents loss in 2022. Its EPS in the next two financial years will be $8.78 and $12.98. 

Analysts are optimistic that the Micron stock price will bounce back. The average stock forecast is $145, higher than the current $102.50.

Read more: Micron vs. Nvidia: why Micron might be the smarter AI investment

Micron stock price forecast

The daily chart shows that the MU stock price has remained in a tight range in the past few weeks. As a result, it is stuck at the 50-day and 100-day Exponential Moving Averages (EMA), while the MACD indicator is slightly below the zero line. 

It has also moved slightly above the key support at $96.5, its highest point in November 2022, and the upper side of the cup and handle pattern. 

Therefore, the stock will likely have some volatility in the coming days. The key support and resistance levels to watch will be at $90 and $114.35.

The post Micron stock price forecast ahead of earnings: buy or sell? appeared first on Invezz

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SoundHound stock price is soaring: more upside?

SoundHound stock price has gone parabolic this month and is nearing its all-time high as demand for its solutions rise. SOUN was trading at $17, its highest point since May 2022, and 1,040% above its lowest level this year. This rebound has pushed its market cap to over $6 billion.

SoundHound AI business is doing well

Many companies are now embracing the concept of artificial intelligence in their businesses as a way to boost their efficiency and lower costs. According to Gartner, worldwide spending on AI is expected to double by 2028 to over $632 billion, representing a 29% CAGR.

Companies across all industries are expected to grow this spending in that period. For example, automotive firms are adding AI in their infotainment systems, while most firms have added AI in their customer service operations. 

This growth will benefit companies that offer AI solutions to other enterprises. That explains why firms like C3.ai and Palantir have soared recently, becoming some of the biggest companies in the US. Palantir’s market cap has jumped to over $140 billion.

SoundHound is also set to benefit because of the services it offers. It is a major software provider in the Voice AI industry, which is expected to get to $160 billion by 2026. Some of its top industries are Internet of Things (IoT), automotive, restaurants, retail, and contact center. 

A good example of its business is in the restaurant industry, which has seen labor costs jump in the past few years. Restaurants with a drive-through service can use its AI voice assistant in the ordering process. Customer service agents can be replaced with AI.

Read more: SoundHound stock price analysis: Is SOUN a good AI investment?

SOUN reported strong results

The most recent results showed that the SoundHound business did well in the last quarter. Its revenue rose by 89% to over $25.1 million as the number of customers increased. 

As a result, about 12% of its revenue came from a single customer compared to 72% in the previous period. It hopes to reduce this concentration in the next few years as customers from other industries come in.

Its business is also doing well because of the rising demand for A agents, which have been embraced by companies like BNP Paribas, Sterling National Bank, and Aero Mexico.

Analysts expect that the AI agents business will continue doing well over time. The market was estimated to be worth $5.1 billion in 2024, a figure that will get to $47.1 billion in 2030.

SoundHound AI has also grown its market share in the automotive industry, where its technology has been embraced by multiple brands like Lancia, Peugeot, and Alfa Romeo. 

Valuation concerns remain

The biggest concern about SoundHound stock is that its business has become highly overvalued as its market cap has jumped to over $6 billion. 

Analysts are optimistic that SOUN’s business will continue having double-digit growth metrics. Its revenue is expected to come in at $33.73 million in the next quarter, a 96% YoY increase. It will be followed by $32 million in the next quarter, representing a 177% increase. 

For the year, SoundHound AI’ revenue is expected to be $83 million, an 82% annual increase followed by $164 million. While this growth is strong, the reality is that it is hard to justify a $6 billion valuation for the company. 

All this means that the company will need to continue delivering strong results in the next few years to justify this valuation.

SoundHound stock price analysis

The daily chart shows that the SOUN share price has done well in the past few months. Most recently, it has crossed the important resistance level at $10.25, its highest swing in March this year. The original surge happened after the company received an investment from NVIDIA.

SoundHound has moved above the ascending trendline that connects the lowest swings since February this year. It has remained above all moving averages, while the MACD and the Relative Strength Index (RSI) have pointed upwards.

Therefore, while the uptrend will continue, there is a risk that it will drop and retest the important support at $10.25. Such a drop will be good since it will be a sign of a break and retest, a popular continuation sign.

The post SoundHound stock price is soaring: more upside? appeared first on Invezz

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Who are Broadcom’s secret hyperscale AI chip clients?

Broadcom Inc (NASDAQ: AVGO) chief executive Hock Tan says the company has secured two new hyperscale customers for its custom AI chips.

The announcement follows a report that AVGO is working with Apple Inc on a custom chip.

So, it’s conceivable that one of the new customers CEO Tan talked about on the earnings call is AAPL.

Note that Broadcom already serves three other “unnamed” hyperscalers as well.

Broadcom stock is up 15% this morning after reporting strong earnings for its fourth financial quarter and making a string of upbeat comments on its AI business.

Broadcom has a history of working with Apple

Broadcom expects the two new AI customers to contribute to its topline before the start of 2027.

The multinational is not really new to working with Apple as it already makes chips and wireless connectivity components for iPhone.

But there have been reports that the tech titan wants to build capacity to produce at least some of those products in-house that could hurt AVGO revenues.

Responding to such concerns, chief executive Hock Tan said “we continue to be very engaged with this customer in multi-year roadmaps across various technologies.”

Broadcom stock is now up some 90% versus the start of 2024.

Earlier this week, Invezz correctly predicted that it will surpass $200 following the earnings release.

Cramer names AVGO’s mystery hyperscale customers

CEO Hock Tan was all praise on the call as he discussed the AI business with the three mystery hyperscalers.

He expects the company’s serviceable addressable market for artificial intelligence to be worth between $60 billion to $90 billion by fiscal 2027 – an estimate he said may prove to be conservative.

While Broadcom itself doesn’t name its three hyperscale customers, Jim Cramer predicts they are Alphabet Inc, Meta Platforms, and TikTok owner ByteDance.

The Mad Money host recommends buying Broadcom stock on any future dip and sees upside in it to $230 that indicates potential for another 13% upside from here.

Why is Cramer bullish on Broadcom stock?

Broadcom did not announce a share repurchase programme last night that many were hoping for.

But the company said it’s using the capital to lower its debt load that Cramer dubbed an “acceptable trade-off” in his note to members of his Investing Club.

Jim Cramer is bullish on Broadcom stock as it’s a premium quality semiconductor giant.

He also has confidence in the leadership of Hock Tan who’s known to drive value with a splendid M&A strategy.

The famed investor expects AVGO’s networking components and custom chips to emerge as one of the biggest beneficiaries of artificial intelligence.

He dubs Broadcom stock attractive compared to other chips stocks in terms of the price-to-earnings ratio as well.

Shares of the AI company currently pay a dividend yield of 1.17% that makes them all the more exciting to own at writing.

The post Who are Broadcom’s secret hyperscale AI chip clients? appeared first on Invezz

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What made Evgo stock pop 10% on Friday?

Evgo Inc (NASDAQ: EVGO) is up 10% in premarket on Friday after securing a $1.25 billion guaranteed loan facility from the US Department of Energy (DOE).

Evgo will use this loan to set up another 7,500 fast-charging stalls across the United States.

Following the buildout, the company will have a network of about 10,000 electric vehicles charging stations.  

Despite today’s rally, Evgo stock is down close to 25% versus its year-to-date high.

Why does the DOE loan matter for Evgo stock?

Evgo wants to own and operate the aforementioned total of 10,000 fast-charging stalls by 2029.

The company is essentially targeting a more than three-fold increase in its network footprint over the next five years to further strengthen its name as a leader in EV infrastructure.

“We are well-positioned to deploy the infrastructure needed to support both current and future domestic investments in transportation electrification,” Evgo chief executive Badar Khan said in a press release today.

The news arrives only days after Evgo and automotive giant General Motors were reported to have surpassed 2,000 co-branded fast-charging EV stations in the US.

Versus its year-to-date low, Evgo stock is currently up a whopping 250% at writing.

JPM remains bullish on Evgo Inc

Evgo expects to create more than 1,000 new jobs in the US as it uses the government loans to build new fast-charging stalls for electric vehicles.

The DOE announcement, as per JPMorgan analysts, was nothing short of an “early holiday gift” for Evgo shareholders.

The loan facility will serve as a material positive catalyst for the company’s share price, they added.

JPM expects Evgo to focus on execution to achieve operational milestones that will in turn boost financials and unlock further upside in the EV stock.

“Unlike hardware-software peers, Evgo’s fast charging owner-operator model has been scaling well with higher utilization and charge rates in the current muted EV environment,” according to the investment firm.

Evgo stock does not, however, pay a dividend at writing.

Are Evgo shares out of any further upside now?

JPMorgan expects Evgo to benefit from “higher utilization on every charger on its network”.

Last month, the company reported a 92% annualised growth in revenue to $67.5 million for its third financial quarter, indicating solid demand for its fast-charging stalls.

The record-breaking quarter showed improvement in adjusted EBITDA as well. Evgo has a customer base of more than 1.2 million at writing.

More importantly, Evgo also raised its guidance for revenue in November. CEO Badar Khan told investors at the time:

Evgo is poised to lead the industry as the charging provider of choice. We’re working diligently to drive our next phase of growth and deliver continued and sustainable value creation to our shareholders.

Our market expert Crispus Nyaga expects Evgo stock to surpass $12 in 2025.  

The post What made Evgo stock pop 10% on Friday? appeared first on Invezz

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Affirm secures largest-ever funding: what it means for investors

Affirm Inc (NASDAQ: AFRM) opened in the green this morning after private-credit firm Sixth Street agreed to buy up to $4 billion worth of its consumer installment loans.

The transaction marks largest-ever capital commitment for the buy now, pay later company.

Sixth Street has signed a “forward-flow agreement” with Affirm, meaning it has committed the capital even before the loans have originated.

Affirm stock is now up some 200% versus its year-to-date low in early August.

What Sixth Street deal means for Affirm stock

The deal Affirm announced with Sixth Street today allows it to support loan originations worth more than $20 billion over the next three years.

Non-bank lenders have been aggressively buying consumer loans from BNPL names like Affirm in recent months to expand in the asset-based finance market that’s estimated to be worth $5.2 trillion.

The Sixth Street news arrives only days after Prudential Financial bought about $500 million of loans from AFRM.

Others that have loaded up on debt portfolios recently include Blue Owl Capital and Fortress Investment Group.

Note that Affirm stock is still down significantly from its high of $164 in late 2021.

Affirm’s financials speak for themselves

Michael Dryden – the head of asset-based finance at Sixth Street sees “tremendous opportunity in this partnership” as Affirm is unparalleled in offering flexible and scalable financing solutions.

“We look forward to being a key funding partner and continuing to build on this relations to support the company’s [AFRM] growth in the years to come,” he added in a press release on Friday.

Affirm’s gross merchandise volume (GMV) surpassed $28 billion in the 12 months through September.

Last month, the buy now, pay later company reported better-than-expected financial results for Q1.

AFRM narrowed its per-share loss on a year-over-year basis to 31 cents as revenue increase 41% to $698 million.

Affirm now expects to hit GAAP profitability in the final quarter of 2025.

Affirm stock to extend rally in 2025

Affirm’s current-quarter guidance for revenue and GMV also surpassed analysts’ forecasts at the time.

That’s part of the reason why BTIG analyst Vincent Caintic sees upside in AFRM to $81.

His price target indicates potential for another 14% upside from current levels.

Caintic expects financial technology companies “to occupy much of the debate in 2025”.

He’s convinced that a sharp increase in volume and solid operating income margins will drive Affirm stock furth up in 2025.

Other notable recent developments at Affirm include UK expansion, team up with Apple Inc, and the roll out of Affirm card.

These initiatives will likely help the company unlock future growth as well.

Our market analyst Crispus Nyaga also expects Affirm shares to enter beast mode in 2025.  

The post Affirm secures largest-ever funding: what it means for investors appeared first on Invezz

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