Nov.10 -- U.S. Attorney General William Barr has authorized the opening of inquiries by Justice Department officials into potential voting irregularities in the presidential election. Bloomberg’s Stephanie Baker reports on “Bloomberg Surveillance.”
Nov.10 -- U.S. Attorney General William Barr has authorized the opening of inquiries by Justice Department officials into potential voting irregularities in the presidential election. Bloomberg’s Stephanie Baker reports on “Bloomberg Surveillance.”
Jim Cramer shared his thoughts on what the potential COVID-19 vaccine from Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) means for technology stocks that traded higher as stay at home plays.Stay-At-Home Stocks: Cramer said the S&P 500 and Dow are up the correct amount, but the Nasdaq futures are up too much. He said many of the companies in the Nasdaq don't benefit from the vaccine.Cramer said the vaccine coming is not good news for cloud stocks and not good for the big run-up in stay-at-home stocks.Some of the companies have risen this year as stay-at-home plays: "How many Nasdaq stocks can rally on this?"Cramer said some stocks are rallying on Joe Biden being elected and the potential positives from improved relations with China and that's okay.Related Link: Biden And Trump React To Pfizer's Vaccine Update, Stock Market Rally: Great News! Buy Airlines: Cramer said the stocks that are rallying like airlines and theme parks are making the right moves. Cramer said he would be "much more comfortable buying an airline stock up 10% than a cloud stock down 5%." Andrew Ross Sorkin asked Cramer if the stocks that are moving higher are worth buying since the timeline on approving a COVID-19 vaccine hasn't changed. Cramer said if you wait to buy, you'll miss the whole move" "Stocks trade in anticipation." Cramer said there are "many, many companies that benefit."Price Action: The SPDR S&P 500 Trust ETF (ARCA:SPY) is up 4% to $365.75 in pre-market trading. The Invesco QQQ ETF (NASDAQ: QQQ) is up 1% to $296.55.Airline stocks are rallying higher, with Southwest Airlines Co (NYSE: LUV) shares are up 15%, American Airlines Group (NASDAQ: AAL) shares are up 25% and JetBlue Airways Corporation (NASDAQ: JBLU) shares are up 18%.The U.S. Global JETS ETF (NYSE: JETS) is up 20% to $21.35 on Monday.See more from Benzinga * Click here for options trades from Benzinga * Biden And Trump React To Pfizer's Vaccine Update, Stock Market Rally: 'Great News!' * Kids Pushing Parents To Buy Electric Vehicles: Study(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Eric Yuan is, in many ways, the poster child for the coronavirus economy.His Zoom Video Communications Inc. has hosted school lessons, family gatherings and business meetings for more than 300 million participants a day during the pandemic. The stock of the video conferencing site has soared more than 500% this year and Yuan, a Chinese-born immigrant to the U.S., was at one point worth $28.6 billion -- the 40th wealthiest person on the planet.That remarkable surge took a hit Monday after Pfizer Inc. said the Covid-19 vaccine it’s developing with BioNTech SE prevented more than 90% of infections in a study, the most encouraging scientific advance so far in the battle against the virus. Airlines, oil giants and hotel operators surged, but stocks that benefited from lockdowns and work-from-home arrangements -- such as Peloton Interactive Inc., Netflix Inc. and Sea Ltd., Southeast Asia’s largest internet company -- all slumped. On Tuesday, the rout continued in Asia for glovemakers that saw demand surge this year. The key question now is whether those extraordinary gains can hold, or whether people will stop using the services of companies like Zoom after the pandemic ends and they return to the workplace.‘Normal Volatility’“I don’t think the trend around e-commerce, video collaboration or shift-to-cloud will change as a result of the vaccine,” said Bloomberg Intelligence analyst Mandeep Singh. “The valuations look rich for some of these names, but some of these are multi-year growth stories. This is just normal volatility as investors look to rotate into sectors that have been depressed due to the pandemic such as travel, casinos and hospitality.”Zoom shares fell 17% in New York on Monday, erasing $5.1 billion from Yuan’s net worth. He’s sold more than $275 million of Zoom stock in 2020 and is still worth $20 billion, according to the Bloomberg Billionaires Index. Peloton founder John Foley became a billionaire on the stunning rise in the home-fitness company’s shares. He’s down $300 million after the stock tumbled 20%. Reed Hastings, chief executive officer of movie and television streaming service Netflix, saw his wealth decline by $416 million. Forrest Li, the billionaire behind Singapore-based Sea, lost almost $1 billion as his company’s American depositary receipts fell 9.5% in the U.S. Monday. Glovemakers, which produced at least five billionaires as their shares surged during the pandemic, sank on Tuesday. Top Glove Corp., the world’s biggest rubber glove maker, lost as much as 11% in early trading in Malaysia. Riverstone Holdings Ltd. plunged 13%, while Hartalega Holdings Bhd., Kossan Rubber Industries Bhd. and Supermax Corp. all fell more than 8%, sinking the fortunes of their owners. FedEx Corp. Chairman Fred Smith’s net worth dropped by about $250 million as shares of the express shipping company fell 5.7%. His wealth had surged this year by more than 70% through Friday as remote working and booming e-commerce boosted demand for package-delivery services. Jay Chaudhry, CEO of cybersecurity firm Zscaler Inc. and Tim Steiner, the co-founder of U.K. online supermarket Ocado Group Plc, also slumped in the fallout of Pfizer’s vaccine study.‘Ortega, Rowling’Some firms and their billionaire owners are holding onto their gains. The fortunes of Zara founder Amancio Ortega and his daughter Sandra surged through their stakes in fast-fashion retailer Inditex SA as the vaccine study boosted hopes of consumers returning to brick-and-mortar shops. Hotelier Robert Rowling, as well as industrialist Georg Schaeffler and the Deichmann family who control one of Europe’s largest shoe retailers also saw their wealth increase Monday.Some companies are optimistic that even after the pandemic is brought under control, people will continue to use their services.“How can anybody be tired of Zoom?” CEO Kelly Steckelberg said in a June interview with Bloomberg TV. “Video communication has been integrated into all aspects of our lives.”(Updates to include Asian companies from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Former Vice President Biden has a detailed proposal that involves raising taxes on people with taxable income of more than $400,000—essentially targeting the top 1%. President Trump wants to keep the tax cuts that went into effect in 2018, which largely benefited top earners.
The 2010s were dominated by growth stocks, and when 2020 rolled around, many investors felt that it was time for value stocks to take the lead. Theoretically, a bear market would be the perfect time for value stocks to outperform growth, but year to date, many value names have continued to underperform their growth-minded peers; cheaply priced energy companies, in particular, kept getting cheaper as oil prices fell alongside plummeting demand amid the pandemic. The only financial stock on this list, the $5.2 billion OneMain Holdings is a consumer credit and insurance business that happens to be priced fairly conservatively.
Top news and what to watch in the markets on Tuesday, November 10, 2020.
Ah, "Carnival." The name conjures smiles. And some cruise lines are about to resume trips. So is this a good time or bad time to invest in Carnival?
Today we find out that not only have they hit paydirt, but many of their choices are twice blessed. Here's why.
Beyond Meat's partnership with McDonald's to develop the McPlant burger wasn't enough to keep shares from collapsing after the company posted third-quarter earnings that fell far below analysts' expectations. "Our financial results reflect a quarter where for the first time since the pandemic began, we experienced the full brunt and unpredictability of COVID-19 on our net revenues and accordingly, throughout our P&L," Beyond Meat's president and chief executive, Ethan Brown, said in a statement.
Cowen analyst Jeffrey Osborne issued a Buy Rating on Monday. He sees shares hitting $22, up from Friday’s close of $10.86. The shares were up more than 30% in midday trading.
Berkshire Hathaway, overseen by CEO Warren Buffett, also was a seller of financial stocks and a buyer of industrial stocks in the third quarter, according to filings.
Tesla trailed local Chinese players in a hot Chinese market for electric cars. But Tesla stock rose early Monday as it works on abuy point.
(Bloomberg) -- Xi Jinping’s Communist Party is stepping up efforts to rein in some of China’s most powerful companies, jolting investors and dealing a blow to the country’s richest entrepreneurs.Beijing on Tuesday unveiled regulations to root out monopolistic practices in the internet industry, seeking to curtail the growing influence of corporations like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. The rules, which sent both stocks tumbling and sparked a wider selloff in Chinese equities, landed about a week after new restrictions on the finance sector that triggered the shock suspension of Ant Group Co.’s $35 billion initial public offering.While Xi’s government has been steadily tightening its grip on the world’s second-largest economy, it has until recently taken a relatively hands off approach toward businesses that dominate China’s burgeoning internet, e-commerce and digital finance industries. Authorities are concerned the companies have become too powerful, according to Ma Chen, a Beijing-based partner at Han Kun Law Offices.“This is a watershed moment,” said Ma, who specializes in antitrust.Alibaba, Ant and Tencent alone commanded a combined market capitalization of nearly $2 trillion before last week, easily surpassing state-owned behemoths like Bank of China Ltd. as the country’s most valuable companies. Tuesday’s selloff sent Alibaba shares down 5.1% to the lowest since Sept. 29 in Hong Kong, while analysts have estimated that Ant’s $280 billion valuation could be cut in half due to stricter regulations. Both companies were co-founded by billionaire Jack Ma, China’s most celebrated businessman.Tencent, the gaming to payments giant whose rise turned co-founder Pony Ma into China’s richest man, sank 4.4% on Tuesday. It was the second-largest contributor to the 0.4% drop in the Hang Seng China Enterprises Index. Meituan, the food-delivery startup that has since expanded into hotel bookings and movie tickets, was the biggest drag, tumbling 10.5%. The company declined to comment while representatives from Alibaba and Tencent didn’t immediately respond to queries.China’s antitrust watchdog is seeking feedback on a raft of regulations that establish a framework for curbing anti-competitive behavior such as colluding on sharing sensitive consumer data, alliances that squeeze out smaller rivals and subsidizing services at below cost to eliminate competitors. They may also require companies that operate a so-called Variable Interest Entity -- a vehicle through which virtually every major Chinese internet company attracts foreign investment and lists overseas -- to apply for specific operating approval.The latest proposal follows heightened scrutiny of technology companies worldwide, as regulators investigate the extent to which internet giants from Facebook Inc. to Alphabet Inc.’s Google can leverage their dominance. Consumers in China -- home to some of the world’s largest corporations from e-commerce giant Alibaba to WeChat-operator Tencent -- have in recent years protested against the gradual erosion of their privacy via technology from facial recognition to big data analysis.Read more: China Targets Internet Giants in Antitrust Law OverhaulBeijing is increasingly seeking to diminish the influence that a handful of its tech corporations wield over vast swathes of the economy. It investigated Tencent’s music arm’s exclusive agreements with publishers last year and, most recently, modified regulations to rein in risk at fast-growing micro-lending entities such as Ant Group. The latter step derailed Ant’s planned IPO last week, before it was to complete what would have been the world’s largest such offering on record.“There seems to be a broader China government sentiment that internet platforms are becoming too powerful,” said Hoi Tak Leung, a Hong Kong-based lawyer specializing in Chinese internet companies at Ashurst LLP. “This would be consistent with worldwide developments as well.”The new rules were proposed in accordance with and build on China’s Anti-Monopoly Law, which in January included broad language governing internet companies for the first time. They restrict targeting specific customers through their online behavior, a common practice adopted by players both at home and abroad. Under the regulations unveiled by the State Administration of Market Regulation, violators may be forced to divest assets, intellectual property or technologies, open up their infrastructure and adjust their algorithms. The watchdog will seek public feedback on the regulations till Nov. 30.Representatives from Alibaba, Tencent, TikTok-owner ByteDance Ltd. and 24 other tech giants attended a meeting with regulators from the antitrust and cyberspace authorities earlier this month to discuss issues ranging from unfair competition to counterfeiting. “Internet platforms are not outside the reach of antitrust laws, nor are they the breeding ground for unfair competition,” the regulators said in a subsequent statement.Further measures to tighten oversight of the tech companies may be in the offing. Regulators plan to release new rules governing internet transactions by June 2021, according to a State Council statement released Tuesday.The government is now trying to update its laws for the internet era, to adapt to an industry where market dominance isn’t always easily quantifiable. In the past, China used revenue or market share to determine whether a company held a monopoly. But those precepts may not apply to internet firms, which sometimes control valuable information that haven’t yet been monetized.JD.com, for instance, has accused bigger rival Alibaba of unfairly locking in exclusive agreements with merchants, which Alibaba has denied. Regulators have investigated the legality of Cheng Wei’s Didi Chuxing acquiring Uber Technologies Inc.’s Chinese business. And Tencent’s WeChat dominates many aspects of daily Chinese life from payments to gaming, though ByteDance, co-founded by Zhang Yiming, has in recent years begun to eat into its advertising business through video service Douyin and news platform Toutiao.Alibaba and Tencent now dominate e-commerce and gaming, but are also key backers of leaders in adjacent businesses such as Wang Xing’s Meituan and car-hailing leader Didi. They’ve together invested billions of dollars in hundreds of up-and-coming mobile and internet companies, gaining kingmaker status in the world’s largest smartphone and internet arena by users. Companies like ByteDance and Tencent-rival NetEase Corp., controlled by William Ding, that have risen to prominence without backing from either of the pair are viewed as rare exceptions. In other areas, Robin Li’s Baidu Inc. dominates online search.“The Party is faced with the conflicting desires to empower domestic tech companies to be internationally competitive, while keeping their market activities firmly under control at home,” said Kendra Schaefer, head of digital research at the Trivium China consultancy in Beijing. “The horizontal spread of Chinese big tech makes anti-monopoly regulation that much more urgent for Chinese regulators.”Han Kun Law’s Ma said the specific regulation pertaining to VIEs requiring approval should be of concern to much of the industry as well. The model has never been formally endorsed by Beijing but has been used by tech titans such as Alibaba to list their shares overseas. Under the structure, Chinese corporations transfer profits to an offshore entity with shares that foreign investors can then own. Pioneered by Sina Corp. and its investment bankers during a 2000 initial public offering, the VIE framework rests on shaky legal ground and foreign investors have been nervous about their bets unwinding overnight.“It will not only have a huge impact on Alibaba but also all the companies that use a platform business model and a VIE structure,” Ma said.China’s Foreign IPOs Use Legal Twist to Tap Investors: QuickTake(Updates with analyst comment in 17th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. stocks look set to continue their rally after former Vice President Joe Biden declared victory in the election, and as Pfizer said its vaccine candidate was more than 90% effective in preventing COVID-19.
As pension plans fade, today’s investors may want to look to annuities to bridge the retirement gap, one expert said.
The Pfizer vaccine news roiled coronavirus plays Monday. Look for leaders that thrive amid a vaccine stock market or coronavirus pandemic.
The pharmaceutical giant’s good news could be good news for other vaccine makers who are far along in the testing process.
Does high risk mean high reward? Not necessarily, so say the pros on Wall Street. Specifically citing penny stocks, or stocks that trade for less than $5 per share, analysts advise caution as these names might still be in the early innings, or it could be that they face an uphill battle that is just too steep.Luring investors with their bargain price tags, these stocks might be up against overpowering headwinds or have weak fundamentals.However, analysts argue there are early-stage companies that reflect promising opportunities, with the low share prices meaning you get significantly more bang for your buck. What’s more, even what seems like minor share price appreciation can result in massive percentage gains.The bottom line? Not all risk is created equal. To this end, the pros recommend doing some due diligence before making an investment decision.With this in mind, we turned to investment firm Roth Capital for some inspiration. The firm’s analysts have pinpointed three compelling penny stocks, noting that each could climb over 100% higher in the year ahead. Using TipRanks’ database, we found out what makes all three such exciting plays even with the risk involved. CohBar (CWBR)Focused on developing mitochondria-based therapeutics (MBTs), CohBar wants to find new treatments for diseases associated with aging and metabolic dysfunction. Based on the strength of its technology and its $0.96 share price, Roth Capital thinks that now is the time to pull the trigger.Writing for the firm, analyst Elemer Piros points out that CWBR was able to turn over 100 mitochondrial peptides into 1,000 mitochondrial-based therapeutics (MBT). Company scientists and researchers from around the world have found that mitochondrial peptides regulate multiple physiological systems, including risk factors which lead to cardiovascular and neurodegenerative diseases, obesity, diabetes, fatty liver disease fibrotic and inflammatory conditions and cancer.It should be noted that peptides are either continually or intermittently released to modulate biological functions, but it’s difficult to deliver them as therapies. Additionally, they also tend to have shorter half-lives. “CohBar developed methods to modify peptides and plan to use modified analogues for clinical development,” Piros commented.Up first for CWBR is CB4211, its optimized analog of the MOTS-c mitochondrial-derived peptide. The company’s first clinical candidate is wrapping up a Phase 1b trial in patients with fatty liver disease. According to management, there are 10 patients who will be randomized for treatment with CB4211 and 10 for placebo, with the results expected in Q1 2021.Nonalcoholic Fatty Liver Disease (NAFLD) is a condition defined by excessive fat accumulation in the form of triglycerides (steatosis) in the liver in individuals who consume little or no alcohol. What’s more, the company will also target non-alcoholic steatohepatitis (NASH), which is the most severe form of NAFLD.Piros acknowledges that competition in the space is fierce, but says “no winners can be identified, yet.” Expounding on this, the analyst stated, “CB4211 offers a yet unexplored mechanism of action, which is foundational, based on the natural control of homeostasis, which is lost due to environmental or genetic insults. The compound was derived from naturally occurring mitochondrial peptides, with the purpose of restoring, rebalancing homeostasis with the goal of reversing disease processes.”Based on the above, Piros sees an attractive risk/reward in CWBR shares. “[We] value CohBar based on a comparable universe of early- to mid-stage companies with platforms that could yield multiple drug candidates. The average enterprise value of this group of companies is $268MM vs. CohBar at $38MM. We project that CohBar shares could trade in line with the average,” the analyst concluded.To this end, Piros rates CWBR a Buy along with an $8 price target. Should his thesis play out, a potential twelve-month gain of 741% could be in the cards. (To watch Piros’ track record, click here)Overall, CWBR has a small, but vocal camp of bullish analysts with positive expectations for its stock. Out of the 2 analysts polled by TipRanks, both rate the stock a Buy. With a return potential of 557%, the stock's consensus price target stands at $6.25. (See CWBR stock analysis on TipRanks)Eyenovia (EYEN)By utilizing its patent piezo-print delivery technology, Eyenovia is developing a pipeline of micro-dose therapeutics. With shares changing hands for $3.41 apiece, Roth Capital sees an attractive entry point for investors.In October, Eyenovia announced that an affiliate of Bausch Health Companies had acquired an exclusive license in the U.S. and Canada for the investigational microdose formulation of atropine ophthalmic solution (MicroPine), designed for the reduction of myopia progression in children aged 3-12. MicroPine, which is delivered via EYEN's proprietary Optejet dispenser, is progressing through Phase 3, with the launch potentially coming in 2025.As per the terms of the agreement, Bausch will assume the oversight and expenses related to the ongoing Phase 3 CHAPERONE trial. In turn, Eyenovia will receive a $10 million upfront payment and up to $35 million in approval and launch-based milestones, along with royalties ranging from mid-single digit to mid-teen percentages of gross profit on sales in the U.S. and Canada.Roth Capital’s Jonathan Aschoff tells clients that “the deal validates the technology and the market.” He adds that this agreement and the recent Asian MicroPine deal with Arctic Vision, “combined with the roughly $25 million in R&D savings for EYEN that these two deals provide, should improve EYEN's cash flow by about $100 million over the next several years.” To this end, he argues that the company’s cash position should support its operations into 1H22.On top of this, assuming there aren’t any COVID-related delays, Aschoff believes EYEN should be able to initiate both Phase 3 VISION trials for MicroLine, its piezo-formulation of pilocarpine designed to replace reading glasses for three to four hours while addressing instillation and tolerability issues associated with traditional eye drops, by YE20. This means that trials will be able to enroll in a few weeks, and the results could be published in 2021.If that wasn’t enough, the company is planning to file the MicroStat (its mydriasis candidate) NDA by YE20, with the U.S. launch potentially coming in late 2021. “MicroStat commercialization should be aided by the current pandemic, given that physicians are more reluctant that ever before to reuse the same eyedropper for multiple patients, and with reuse generally encompassing about 20-30 patients, the eyedropper just became about 20-30 times more expensive for the physician,” Aschoff explained.It should come as no surprise, then, that Aschoff left a Buy rating and $11 price target on the stock. Given this target, shares could soar 223% in the next year. (To watch Aschoff’s track record, click here)Looking at the consensus breakdown, 2 Buys and no Holds or Sells have been issued in the last three months. Therefore, EYEN gets a Moderate Buy consensus rating. Based on the $8.50 average price target, shares could gain 150% in the coming months. (See EYEN stock analysis on TipRanks)Boqii Holding (BQ)Last but not least we have Boqii Holding, which operates the largest online platform for pet products in China, with its primary focus on online retail through third-party Chinese online platforms and its own e-commerce site (Boqii Mall). Currently going for $4.45 apiece, Roth Capital believes its share price presents a chance to get in on the action.Representing the firm, analyst Darren Aftahi told clients, “BQ represents an early-stage opportunity for investors to gain exposure to China’s leading ecosystem for all things pets, which uniquely blends ‘community’ and ‘commerce’ into an omni-channel, verticalized online and offline platform.”Part of what makes BQ so compelling is that although it primarily operates as an e-commerce company, it boasts an omni-channel, verticalized platform for pet products, in Aftahi’s opinion. Additionally, the company has integrated into offline channels like pet stores and hospitals. The analyst argues this not only expands the consumer access points, but the online community also keeps users engaged with various forms of content and marketing, “enhancing overall platform value to end customers.”According to Frost & Sullivan, China’s pet population growth is projected to be among the fastest over the next several years, with it expected to match U.S. ownership (400 million pets) by 2024 from approximately one-third that rate currently. “We believe BQ can see accelerated growth when we layer on the continued adoption of e-commerce spend, with online pet retail spend expected to reach 52% of total pet retail by 2024,” Aftahi commented.It should be noted that over 60% of sales come from BQ stores on third-party sites like Tmall, JD.com and Pinduoduo, which Aftahi thinks “broadens BQ’s brand reach.”Offering further explanation, the analyst stated, “These sites are often the initial touchpoint, and users can then be funneled into BQ’s online community for re-targeting, giving BQ an upper hand in customer ownership. In our view, BQ is set to capture growth from the shift to e-commerce, diversified across access points, but under the BQ brand regardless.”Everything that BQ has going for it prompted Aftahi to keep his Buy rating as is. Along with the call, he leaves the price target at $10, suggesting 123% upside potential. (To watch Aftahi’s track record, click here)When it comes to other analyst activity, it has been quiet. As Aftahi is the only analyst that has published a review recently. (See BQ stock analysis on TipRanks)To find good ideas for penny 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 analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
When looking for the best artificial intelligence stocks to buy, identify companies using AI technology to improve products or gain a strategic edge, such as Microsoft, Netflix and Nvidia.
Nio Inc. got a bullish endorsement from J.P. Morgan analyst Rebecca Wen, as she raised her stock price target on the belief the Shanghai-based company will be a "winner" in the electric vehicle market.
NextEra Energy Inc, the world's largest producer of wind and solar energy, has made a roughly $15 billion all-stock acquisition offer for U.S. power utility Evergy Inc, people familiar with the matter said on Monday. Evergy turned down the offer in recent days and it is unclear whether NextEra will make a new approach, said the sources, who requested anonymity because the matter is confidential. One of the sources added that NextEra had no immediate plans for a new bid.