96.70 +0.21 (0.22%)
Pre-Market: 6:52AM EDT
|Bid||96.45 x 1200|
|Ask||96.97 x 1400|
|Day's Range||95.70 - 96.85|
|52 Week Range||52.42 - 99.72|
|Beta (3Y Monthly)||0.52|
|PE Ratio (TTM)||34.50|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||1.44 (1.51%)|
|1y Target Est||95.52|
Shares of the Chinese coffee chain dipping following its first earnings report since its IPO. Luckin posted wider-than-expected losses as it tries to expand rapidly and serve up discounts to challenge Starbucks. Yahoo Finance's Brian Cheung joins Akiko Fujita.
An analysis of S&P; 500 companies that have hired a new CEO suggests that on average, stock price outperformance vs. the index is minimal. But some do shine.
Morgan Stanley thinks several companies that should benefit from a rise in the population of single women, as women are generally working and earning more.
Starbucks Corporation today announced that Patrick Grismer, chief financial officer, will present at Goldman Sachs 26th Annual Global Retailing Conference in New York on Wednesday, September 4, 2019 at 8:05 a.m.
Starbucks is releasing its pumpkin spice lattes earlier than ever next week. Dunkin’ already dropped theirs.
Bill Ackman’s Pershing Square Holdings is having a stellar 2019. It's seen a year-to-date gain of 48.9% as per its letter to shareholders.
The ratings on the P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 4.3% of the current pooled balance, compared to 5.1% at Moody's last review. Moody's base expected loss plus realized losses is now 4.2% of the original pooled balance, compared to 5.0% at the last review.
(Bloomberg) -- Apple Inc.’s 13 billion-euro ($14.4 billion) battle with the European Union reaches the bloc’s courts next month in a hearing set to throw the spotlight on antitrust commissioner Margrethe Vestager’s crackdown on tax deals doled out to big companies.The EU’s General Court, its second-highest tribunal, will hear arguments in the challenges by the iPhone maker and Ireland over two days set for Sept. 17-18. The U.S. last year lost a bid to intervene in the case in support of Apple.The European Commission in August 2016 ordered Ireland to recoup the record sum plus interest, saying the world’s richest company was handed an unfair advantage. The EU decision reverberated across the Atlantic, triggering criticism from the U.S. Treasury that the EU was making itself a "supra-national tax authority" that could threaten global tax reform efforts.The Irish government said in an email it “profoundly disagrees” with the EU’s decision and “is engaging fully with the process and ensuring the best presentation of the state’s position.” The commission in Brussels declined to comment.Apple didn’t immediately respond to requests for comment.Appeals over tax cases have been piling up at the EU’s courts since 2015, when the commission issued its first orders against Luxembourg and the Netherlands to recoup unpaid taxes from a Fiat Chrysler Automobiles NV unit and Starbucks Corp. respectively.The court heard arguments in both cases last year with rulings yet to come. A first ruling in the series of decisions by EU antitrust chief Vestager ended in a setback in February for the EU when Belgium won a bid to overturn an order to recoup about 800 million euros from 35 companies, including Anheuser-Busch InBev NV.(Updates with EU response in fourth paragraph.)\--With assistance from Peter Flanagan.To contact the reporter on this story: Stephanie Bodoni in Luxembourg at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Peter Chapman, Christopher ElserFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dunkin' Brands is IBD Stock Of The Day. It's testing a buy point, with a tasty chart offset by so-so earnings. Starbucks and other restaurants are stock market leaders.
Luckin Coffee reported second-quarter results and the company is "very happy" with its performance, Shakel said on CNBC. The company looks to separate itself from rival Starbucks Corporation (NASDAQ: SBUX) by not only selling beverages at around half the cost but prioritizing takeaway and delivery, he said. Luckin is guiding investors to hit store-level break-even profit as soon as the third quarter 2019, he said.
According to the regulatory filing from Bill Ackman’s Pershing Square Capital, the fund has taken a new stake in Berkshire Hathaway (BRK.B).
(Bloomberg) -- Luckin Coffee Inc., the chain trying to take on Starbucks Corp. in China, plunged the most since its U.S. trading debut in May after it issued earnings for the first time as a public company.Luckin, which is based in China and listed in the U.S, said it was taking a hit from trade tensions and the slowing Chinese economy as it races to open stores and burns cash to build market share in China’s nascent coffee market.The shares sank 17% to $20.44 in New York on Wednesday. The shares were up 44% from the $17-a-share initial public offering price through Tuesday’s close.Despite the share plunge, which came on a day when global recession fears were weighing down markets, Luckin is on track to start breaking even at its individual locations this year, according to Chief Financial Officer Reinout Schakel. He added that the company could benefit from its lower prices if trade tensions and the weakening Chinese economy continue to hit consumers.“With the proposition we have around affordability, we’re well-positioned to weather that storm,” Schakel said in an interview.Luckin posted a net loss of 681.3 million yuan ($97 million). Revenue was 909.1 million yuan, compared with analysts’ estimates of 909 million.It is seeking to overtake Starbucks in China by opening more stores in two years than the industry giant has in 20 years. Investors have questioned the Xiamen, China-based company’s strategy of sacrificing profits to lure new customers with discounts when the Chinese economy is growing at its slowest pace in three decades, while a prolonged U.S.-China trade war damps consumer confidence.Starbucks’s IPO-Bound China Rival Wants to Re-Invent Coffee GameChina is becoming an increasingly important market for coffee retailers as the country’s middle-class tea drinkers develop a taste for java. Luckin has an uphill battle, as it claimed only 2.1% of the market last year, while Starbucks has more than a 50% share and also plans to continue its rapid expansion by opening one store every 15 hours.Luckin’s store count may be on track to overtake Starbucks this year, but the vast majority of its outlets are kiosks for delivery and takeaway, unlike the plush hang-out spaces at Starbucks.(Updates with closing share price. Previous version corrected to show figures in sixth paragraph are net loss rather than operating loss)To contact the reporters on this story: Jeff Sutherland in Tokyo at email@example.com;Craig Giammona in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rachel Chang at email@example.com, Anne Riley MoffatFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Luckin Coffee earnings were mixed for Q2, the first quarterly report for the Starbucks rival in China since its May IPO. Luckin Coffee stock fell.
Luckin Coffee (LK) is a fast-growing Chinese coffee chain. It was founded two years ago, and since then, it's opened thousands of stores in China.
Thanks to the trade war, numerous S&P 500 stocks could arguably deserve a place on a "stocks to avoid" list. Over the last few years, much of the growth in the most-established United States equities has come from China. With almost four times the population as the U.S., many saw the country's potential when it began to turn away from communist doctrine.Now, many of these have become stocks to avoid in today's market. With a trade war that has lasted more than 18 months, many equities have sold off due to dimming earnings prospects. * 15 Growth Stocks to Buy for the Long Haul However, investors should also remember that China has built its emergence in large part on the American consumer. Their need for access to U.S. markets should lead to an eventual trade deal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut until the U.S. and China sign such an agreement, the following companies should remain stocks to avoid. Stock to Avoid: 3M (MMM)Source: Shutterstock As an applied science and manufacturing powerhouse, 3M's (NYSE:MMM) dependence on China should not surprise anyone. In 2018, 31.3% of the company's revenues came from the Asia-Pacific region, of which China is a dominate influence. It comes as somewhat of a shock that in what many consider the "century of Asia," revenues from that region have fallen over the last year, helping to make MMM stock one of these five stocks to avoid.Moreover, the firm once known as Minnesota Mining and Manufacturing Company faces issues of its own. It remains a conglomerate in an era when such business groupings make less sense. Also, although it continues to innovate, e-commerce has made it easier for small companies to invent competing products and bring them to market.MMM stock has lost 37% of its value since the trade war began. Despite this loss, investors will likely not rush in at a forward price-to-earnings ratio of almost 16. Nor will they want to buy 3M stock with a predicted long-term growth average of 3.4%. They might react to the dividend yield that has moved near 3.5%. However, with a payout ratio above 56%, even the dividend faces some dangers.While investors should not write this company off, MMM's profit growth will struggle to gain traction without help from Chinese consumers and businesses. General Motors (GM)Source: Shutterstock Arguably, all U.S. car companies could make the stocks to avoid list due to the trade war alone. However, General Motors (NYSE:GM) likely faces the most pain. GM stock has seen little price growth since it resumed trading in 2010. In 2018, GM sold almost 700,000 more vehicles in China than in the U.S.GM has long faced struggles with sales growth in other regions. This includes North America, where it would struggle to earn a profit it not for strong truck and SUV sales. Hence, General Motors' overall sales growth depends on China. Due to tariffs, investors do not seem optimistic that this growth will materialize.On the surface, GM stock looks like a bargain. It trades at around six times forward earnings and its dividend yields almost 4%. Still, with no average profit growth expected over the next five years, investors should see little reason to buy. * 7 Safe Dividend Stocks for Investors to Buy Right Now Even without tariffs, GM and its peers would struggle in China amid intense competition. However, GM's P/E ratio likely prices in these troubles. If it can escape the tariffs, GM stock may finally sustain a move higher. Still, with the specter of these import duties, GM will remain cheap for a reason. Las Vegas Sands (LVS)Source: Shutterstock Despite the company name, the growth of Las Vegas Sands (NYSE:LVS) depends on mainland China. Five of the company's nine casinos operate in Macao, a special administrative region of China.Because China has banned gambling outside of Macao, the company's significant presence in this region would seemingly guarantee LVS stock billions in revenue. However, as the Chinese spend less amid the tariffs, they have also gambled less in Macao's casinos.This has devastated LVS stock. Las Vegas Sands peaked at over $81 per share in June 2018. Thanks to reduced revenue related to the tariffs, the stock has fallen by more than 35% to the $52 per share range. Over the last year, it has tested the high-$40's per share range more than once only to bounce back.That said, LVS maintains a forward P/E of about 15.6, and analysts expect meager long-term growth. This does not make Las Vegas Sands cheap. Still, a trade deal, or even the hint of one, could take it off of the stocks to avoid list. As late as July, LVS stock traded in the mid-$60's per share range simply due to the earlier optimism of a trade agreement. Unless such confidence leads to an actual deal, investors should stay away. Qualcomm (QCOM)Source: Shutterstock By most measures, Qualcomm (NASDAQ:QCOM) stock should not find itself on a stocks to avoid list. The world's smartphones depend on its chipsets to operate. The U.S. Department of Justice recently filed an amicus brief asking that Qualcomm be granted reprieve in a ruling that labeled the company a monopoly. These chipsets will help lead the 5G revolution, and even Chinese smartphone users cannot afford for tariffs to block Qualcomm's technology.Moreover, QCOM stock trades at a low valuation given its growth prospects. The forward P/E ratio is close to 16.7 as of the time of this writing. However, this buys average annual growth of an estimated 27.03% per year over the next five years.Still, the company depends on China for about two-thirds of Qualcomm's revenue. Despite its headquarters in San Diego, this makes the company a de facto Chinese equity. If tariffs further hurt QCOM stock, it will struggle to meet analyst growth targets. Even a resolution with the government or a better-than-expected 5G rollout may not save Qualcomm stock in that instance. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Qualcomm will wield tremendous power as 5G rolls out. For this reason alone, I would recommend buying QCOM stock in most cases. However, without a resolution to the trade dispute, stockholders will struggle to benefit from the 5G technological revolution. Starbucks (SBUX)Source: Shutterstock Strangely, Starbucks (NASDAQ:SBUX) stock has become one of the stocks to avoid due to the company's success. SBUX stock has risen by more than 80% over the last year. It also increased following its latest earnings report as comparable-store sales across the world rose by 6%.Still, saturation in both the U.S. and Canada has forced the company to look abroad for growth. Over the last few years, it has made expansion across China a primary growth goal. As of January, the company had established 3,684 stores in China, its second-highest store count behind the U.S.Moreover, Starbucks faces an emerging competitor in Luckin Coffee (NASDAQ:LK). Luckin has existed for less than two years. However, the Beijing-based coffee house opens a new store every 15 hours on average. Such a threat would constitute a challenge to Starbucks under the best of circumstances. However, a brutal tariff war could further undermine the Seattle-based coffee chain.China has helped keep earnings increases for Starbucks in the double digits. However, one has to question if investors will continue to pay more than 30 times forward earnings should the trade war end the growth of Starbucks China. This uncertainty, coupled with the multiple, should make SBUX one of the stocks to avoid.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post 5 Stocks to Avoid Amid the Ongoing Trade War appeared first on InvestorPlace.
China’s second-largest coffee chain behind Starbucks reported underwhelming second-quarter earnings. Revenue jumped 648% but it lost 96 cents a share, much deeper than the 43 cents analysts had expected.