The Toy Insider editor-in-chief Marissa DiBartolo provides insight into the best toy deals this holiday season.
The Toy Insider editor-in-chief Marissa DiBartolo provides insight into the best toy deals this holiday season.
China slapped a record 18 billion yuan ($2.75 billion) fine on Alibaba Group Holding Ltd on Saturday, after an anti-monopoly probe found the e-commerce giant had abused its dominant market position for several years. The fine, about 4% of Alibaba's 2019 domestic revenues, comes amid a crackdown on technology conglomerates and indicates China's antitrust enforcement on internet platforms has entered a new era after years of laissez-faire approach. The Alibaba business empire has come under intense scrutiny in China since billionaire founder Jack Ma's stinging public criticism of the country's regulatory system in October.
(Bloomberg) -- U.K. bond investors eager for the government to sell more of its longest-dated debt appear to have gotten their way.A bond auction on Tuesday will include a 1 billion-pound ($1.37 billion) offering of gilts maturing in 2071 with more scheduled for sale in June. Minutes of a conference call with the Debt Management Office last month revealed investors asked for more of the bonds because there isn’t enough to go around. It also cited dealers reporting strong demand for the longest-dated gilts.The success of Britain’s vaccination roll-out and plans to gradually reopen the economy have pressured gilts, lifting 50-year yields to their highest since 2019 last month. That’s now unleashing appetite among money managers to pile back in looking for income-bearing assets to match liabilities .The same dealers have also been reluctant to sell their inventory of long-maturity debt this year back to the Bank of England as part of its quantitative easing program in another sign of anticipated demand. This suggests they don’t want to be caught short of any bonds should investors want to buy from them.Also pushing the strong demand theme, oversubscription rates for bonds maturing in 50 years have been the highest on record since the end of last year.“With the U.K. market having most aggressively priced the re-opening story in Europe, even a mild re-assessment of the re-opening and vaccination story, should see gilts recapture some lost ground,” said Megan Muhic, a strategist at RBC Europe Limited.Next WeekEuro area bond issuance from Germany, Italy and the Netherlands is expected to total 12 billion euros next week according to Commerzbank AG; Danske Bank A/S flags that Ireland could sell a new 20-year bond through banks; Italy, Finland and Portugal pay redemptions of about 29 billion euros and coupons of over 2 billion eurosIn the U.K., the Debt Management Office will sell 1 billion pounds of its longest conventional gilt which matures in 2071 and 600 million pounds of a 30-year inflation-linked bond; the Bank of England will buy back 4.4 billion pounds of debt in three operationsData for the coming week in the euro area and Germany is thin and mostly backward-looking, with the exception of the ZEW survey numbers for April on TuesdayU.K. data is also slim with February GDP due on TuesdayECB policy maker speeches are scheduled from Isabel Schnabel, Fabio Panetta and Luis de Guindos all on Wednesday before a self-imposed quiet period kicks in ahead of the following week’s monetary policy decisionBOE policy maker Silvana Tenreyro speaks on Monday followed by Jonathan Haskel on Wednesday and Jonathan Cunliffe on FridayDBRS Ltd. reviews France on FridayFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
China's competition watchdog is adding staff and other resources as it ramps up efforts to crack down on anti-competitive behaviour, especially among the country's powerful companies, people with knowledge of the matter told Reuters. Beijing's plan to bulk up the State Administration for Market Regulation (SAMR) comes as China revamps its competition law with proposed amendments including a sharp increase in fines and expanded criteria for judging a company's control of a market. On Saturday, the watchdog slapped a record $2.75 billion fine on Alibaba after an antimonopoly probe found the e-commerce giant had abused its dominant market position for several years.
As the president mulls Democrat calls to cancel up to $50,000 in federally-backed student loan debt via executive order, a new analysis shows how $10,000 in forgiveness would affect borrowers in each U.S. state.
Exxon Mobil Corp. (NYSE:XOM) is not going to lower its dividend no matter what it costs the company. That point came out loud and clear from the company’s latest earnings conference call. This means that XOM stock will continue to have a “strong” dividend yield of about 6.15%. It’s worth at least 32% more, or $74.63 per share, based on its historical dividend yield. Source: Harry Green / Shutterstock.com For the past two years (8 quarters) Exxon has paid 87 cents per share in quarterly dividends. That works out to $3.48 per share each year. Exxon clearly intends to maintain that dividend. Therefore, at today’s price (April 9) of $55.87, the dividend yield is very healthy at 6.2%. Target Price Based on Historicals Moreover, based on the company’s historical dividend yield, this is much higher than its average. For example, Morningstar reports that over the past 5 years, its trailing 5-year dividend yield has been 4.96% (almost 5%).InvestorPlace - Stock Market News, Stock Advice & Trading Tips We can use this to estimate the normalized target value for XOM stock. For example, if we divide the dividend per share of $3.48 by the average yield of 4.96%, the result is a target price of $70.16 per share. This represents a potential gain of $14.29 or about 26% more based on today’s price of $55.87. 7 Infrastructure Stocks Excited For The $2 Trillion Biden Plan We can do the same thing with the company’s earnings-per-share (EPS). Applying Morningstar’s 5-year avg. price-to-earnings (P/E) ratio of 25.62 times (over the last 5 years) to Exxon’s EPS for this year ($2.87) produces a target price of $73.53. That is over 30% above today’s price. Similarly using the Morningstar forward P/E average of 21.75 times Exxon’s $3.88 EPS for 2022 produces a target price of $84.39. Now we have three different price targets based on dividend yield and price-to-earnings. To round things out we can also derive a price based on its historical price-to-sales. Morningstar says this is 1.25 times over the last five years. Analysts predict sales of $245.5 billion for 2021, so the price target works out to $306.875 billion. This is 29.7% above Exxon’s existing market cap of $236.5 billion. In other words, XOM stock is worth nearly 30% more or $72.46 per share. That means that, on average, XOM stock is worth about 34% higher, or $75.14 per share. These ratios are based on earnings and sales estimates provided by Seeking Alpha on their Earnings tab for Exxon Mobil stock. The estimates can vary depending on which aggregation service is used. But this gives you an idea that XOM stock is undervalued based on its historical metrics. One thing to note is that although the $3.48 dividend exceeds the forecast earnings of $2.87 this year (2021). But next year analysts predict EPS of $3.88 per share, which will cover the dividend, assuming oil and gas prices stay high. Moreover, management said on the fourth-quarter 2020 conference call that cash flow from operations should cover the dividend payments this year. This coincides with their intention to maintain a “strong” dividend, mentioned 10 times on the conference call. What To Do With XOM Stock Most analysts have higher price targets for Exxon stock, but not by much. For example, TipRanks.com says that 18 analysts have an average price target of just $60.68. Similarly, Yahoo! Finance says that 25 analysts believe on average XOM stock is worth $61.18. However, Marketbeat.com reports that 24 analysts have a lower target of $52.73, whereas Seeking Alpha says that 27 analysts have an average target of $61.36. Click to EnlargeSource: Mark R. Hake, CFA You can see in the table on the right that the median analyst price target is $60.63, or 7.1% above today’s price. So, on the one hand, this is much lower than my price target using historical metrics. But on the other hand, keep in mind that my price target could take several years to achieve, whereas most analysts are just looking out one year. For example, if my 34% higher price target takes two years, the average annual return will be just 16% each year on a compounded basis. Moreover, the dividend yield is 6.15%. Therefore the total return, even if the analysts’ target price pans out will be 13.25% (i.e., 7.1% price gain plus 6.15% dividend yield). My target price produces an expected return of 21.95% (i.e., 14.8% gain plus 6.15% yield). Any way that you look at it, XOM stock looks like a good bargain here, assuming oil stays high and the stock returns to its normal historical value metrics. On the date of publication, Mark R. Hake did not hold a long or short position in any of the securities in this article. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post Exxon Mobil Will Keep Paying Its Dividend, And May Be Worth 30% More appeared first on InvestorPlace.
(Bloomberg) -- China slapped a record $2.8 billion fine on Alibaba Group Holding Ltd. after an anti-monopoly probe found it abused its market dominance, as Beijing clamps down on its internet giants.The 18.2 billion yuan penalty is triple the previous high of almost $1 billion that U.S. chipmaker Qualcomm Inc. had to pay in 2015, and was based on 4% of Alibaba’s 2019 domestic revenue, according to China’s antitrust watchdog. The company will also have to initiate “comprehensive rectifications,” from protecting merchants and customers to strengthening internal controls, the agency said in a statement on Saturday.The fine -- about 12% of Alibaba’s fiscal 2020 net income -- helps remove some of the uncertainty that’s hung over China’s second-largest corporation. But Beijing remains intent on reining in its internet and fintech giants and is said to be scrutinizing other parts of billionaire founder Jack Ma’s empire, including Ant Group Co.’s consumer-lending businesses and Alibaba’s extensive media holdings.Alibaba used its platform rules and technical methods like data and algorithms “to maintain and strengthen its own market power and obtain improper competitive advantage,” the State Administration for Market Regulation concluded in its investigation. The company will likely have to change a raft of practices, like merchant exclusivity, which critics say helped it become China’s largest e-commerce operation.“The high fine puts the regulator in the media spotlight and sends a strong signal to the tech sector that such types of exclusionary conduct will no longer be tolerated,” said Angela Zhang, author of “Chinese Antitrust Exceptionalism” and director of Centre for Chinese Law at the University of Hong Kong. “It’s a stone that kills two birds.”Alibaba’s practice of imposing a “pick one from two” choice on merchants “shuts out and restricts competition“ in the domestic online retail market, according to the statement.The government action sends a clear warning to the tech sector as the government scrutinizes the influence that companies like Alibaba and social media giant Tencent Holdings Ltd. wield over spheres from consumer data to mergers and acquisitions.The investigation into Alibaba was one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders and their billionaire founders. The company has come under mounting pressure from authorities since Ma spoke out against China’s regulatory approach to the finance sector in October. Those comments set in motion an unprecedented regulatory offensive, including scuttling Ant Group Co.’s $35 billion initial public offering.Alibaba said it will hold a conference call Monday morning Hong Kong time to address lingering questions around the antitrust watchdog’s decree.“China’s record fine on Alibaba may lift the regulatory overhang that has weighed on the company since the start of an anti-monopoly probe in late December,” Bloomberg Intelligence analysts Vey-Sern Ling and Tiffany Tam said, describing the fine as a small price to pay to do away with that uncertainty.”Further ActionStill, it remains unclear whether the watchdog or other agencies might demand further action. Regulators are said for instance to be concerned about Alibaba’s ability to sway public discourse and want the company to sell some of its media assets, including the South China Morning Post, Hong Kong’s leading English-language newspaper.The Hangzhou-based firm will be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition, and protecting businesses on its platform and consumers’ rights, the regulator said. It will need to submit reports on self-regulation to the authority for three consecutive years.“Alibaba accepts the penalty with sincerity and will ensure its compliance with determination. To serve its responsibility to society, Alibaba will operate in accordance with the law with utmost diligence, continue to strengthen its compliance systems and build on growth through innovation,” the company said in a statement on Saturday.Faced ChallengesChief Executive Officer Daniel Zhang said in a memo to employees on Saturday that Alibaba always reflected and adapted when it faced challenges. He called for unity among staff, saying the company should “make self-adjustments and start over again.”The Communist Party-run People’s Daily newspaper said in a commentary on Saturday that the punishment involves specific anti-monopoly measures regulatory authorities take to “prevent the disorderly expansion of capital.”“It doesn’t mean denying the significant role of platform economy in overall economic and social development, and doesn’t signal a shift of attitude in terms of the country’s support to the platform economy,” the newspaper said. “Regulations are for better development, and ‘reining in’ is also a kind of love.”(Updates with company’s comment from 14th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Daily Journal Chairman Charlie Munger says a new investment in Chinese internet giant Alibaba is part of a move into stocks because returns on Treasury bills are so low.
(Bloomberg) -- The reflation trade that dominated the start of 2021 in the bond market has taken a breather, leaving investors bracing for a key set of data in the week ahead that has the potential to reaffirm expectations that price pressures will build as the economy rebounds.All eyes will be on Tuesday’s release of the U.S. consumer price index for March, which is expected to show a significant jump. The number will likely be distorted by the huge slump in year-earlier figures at the outbreak of the pandemic. But traders may be reluctant to dismiss an acceleration -- as they did to some extent with Friday’s stronger-than-projected producer price data -- if there’s a growing sense that it marks the beginning of a trend.The statistics come at a crucial time for bond bears betting on reflation. Market measures of inflation expectations, fueled by ultraloose Federal Reserve policy and immense amounts of fiscal stimulus, have stalled near multiyear highs and have yet to be backed consistently by actual data. The same goes with gauges of the yield curve, which have retreated from recent peaks. It’s not just bond positions at stake: Without follow-through from data, bets on Fed tightening as soon as late 2022 may fade, potentially sapping demand for the surprisingly resilient dollar.“We don’t have strong reflation-trade momentum at the moment because people are waiting for more data,” said Daniel Tenengauzer, head of markets strategy at Bank of New York Mellon Corp. “As the data comes in, we are probably going to see the reflation trade play out again more strongly” toward the middle of the year.Tenengauzer says every inflation reading counts from this point because “the longer inflation stays at 2.5%,” an annual CPI reading last seen before the pandemic took hold, “the more underwater you are from holding fixed income.”Ten-year Treasury yields rose Friday, while finishing below the day’s high, after the PPI report showed a 4.2% increase from March 2020. Although it was relative to a period when the pandemic caused price pressures to crash, it was the biggest annual gain since 2011. The benchmark yield has retreated since approaching 1.8% last month, the highest since January 2020.There are strong arguments on both sides of the inflation debate as the market moves from a phase where it was driven by rising expectations for price pressures, to one where investors are seeking backup from the data. There’s also a view that expectations for growth, not inflation, may end up dominating the narrative for Treasuries later this year, through higher real yields.Inflation ‘Psychosis’Fed Chair Jerome Powell, who’s scheduled to appear on “60 Minutes” Sunday and will also speak Wednesday, has said any pickup in inflation will likely be temporary. Hoisington Investment Management Co., meanwhile, said in its latest quarterly report that inflation fears are a “psychosis” that will fade.But that doesn’t mean that a jump in the consumer price index won’t spook bond investors at least briefly. The March figure is forecast to show a year-over-year increase of 2.5%, which would be the highest since January 2020 and above every point on the yield curve. It’s a development that may also undermine stocks.“The market’s been pricing in a reflation theme already since the second half of 2020, but strong, realized prints would almost add fuel to the fire,” said Shahid Ladha, head of Group-of-10 rates strategy for the Americas at BNP Paribas SA.That, in turn, would produce upside risk to yields on intermediate maturities because of the possibility that the Fed might have to tighten sooner than expected, he says.Investors are also tasked with absorbing a combined $120 billion of coupon auctions next week, including 30-year debt, as they ponder the inflation question. While expectations for an elevated CPI reading may be a concern, the past month has shown that there’s sufficient demand for Treasuries, which should help “grease future bond auctions,” Tenengauzer said.What to WatchEconomic calendar:April 12: Monthly budget statementApril 13: NFIB small business optimism; CPI; average earningsApril 14: MBA mortgage applications; import/export prices; Fed’s Beige BookApril 15: Jobless claims; retail sales; Empire manufacturing; Philadelphia Fed business outlook; industrial production; Langer consumer comfort; business inventories; NAHB housing index; TIC flowsApril 16: Building permits; housing starts; University of Michigan sentimentFed calendar:April 12: Boston Fed’s Eric RosengrenApril 13: Philadelphia Fed’s Patrick Harker; San Francisco Fed’s Mary Daly; Richmond Fed’s Thomas Barkin; Atlanta Fed’s Raphael Bostic, Cleveland Fed’s Loretta Mester and Rosengren at event on racism and the economyApril 14: Dallas Fed’s Robert Kaplan; Powell speaks to the Economic Club of Washington; Beige Book; New York Fed’s John Williams; Vice Chair Richard Clarida discusses new policy framework; BosticApril 15: Bostic; Daly; New York Fed Executive Vice President Lorie Logan; Clarida; MesterApril 16: Kaplan in two appearancesAuction schedule:April 12: 13-, 26-week bills; 3-, 10-year notesApril 13: 30-year bondsApril 15: 4-, 8-week billsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The president is being urged to roll more direct aid money into his infrastructure bill.
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Stock picking is ripe for a shift away from passive investing, which could suffer a decade of low or nonexistent returns, says Bill Smead.
Most Special Purpose Acquisition Companies (SPAC) are trading well below their highs. QuantumScape (NYSE:QS) is the exception. If investors ignored the massive December 2020 run-up that sent QS stock to a high of $132.73, the SPAC is trending steadily. Source: Michael Vi / Shutterstock.com Investors are hungry for electric vehicle (EV) component suppliers. Companies that offer innovations in EV batteries will fare the best. Investments in QuantumScape are a vote of confidence for the battery firm. Volkswagen Investment Lifts QS Stock QS announced that it met Volkswagen’s (OTCMKTS:VWAGY) technical milestone on March 31. This triggers a milestone payment from VW. The second and final closing will reward QS with another $100 million by VW. The $100 million investment will give the firm the additional liquidity needed for the growing firm. Chief Executive Officer Jagdeep Singh said, “we look forward to working jointly to bring solid-state lithium-metal battery technology into industrialized mass-production.”InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Great Stocks to Buy Under $10 Investors wary of investing in a novel company having no product will want to avoid QS stock. Yet the VW-QS deal lowers the uncertainties considerably. The automotive firm needs the battery. It is a key component in its EV strategy. VW’s EV shift is ambitious. It wants battery-powered vehicles to account for 70% of European sales and 50% in both the U.S. and China. QuantumScape’s Moat QuantumScape is a leader in developing next-generation solid-state lithium-metal batteries. It has ambitious plans in revolutionizing the EV battery industry. It spent ten secretive years developing the product. In Dec. 2020, QS held a video call to present the battery performance. The company said that its single-layer pouch cells could charge to 80% capacity in only 15 minutes. None of the lithium batteries in current EVs charge that fast. Since there is no dendrite formation, QS does not need to throttle back on charging. In 2019, dendrite formations caused battery shortages in Tesla (NASDAQ:TSLA) EVs. Conversely, an ex-Tesla engineer said that “solid-state batteries are a false hope.” Experts will continue to argue the merits of QuantumScape’s prospects, given QS figured out how to store more energy by weight and volume without giving up its durability. Using ceramic materials that resist the formation of dendrites gives QS a strong moat. For now, the market is not panicking on QuantumScape’s advancements. Nio (NYSE:NIO) has battery sharing as a service workaround. This lowers the price of its EVs and gives its customers a ready-charged battery swapping solution. Tesla’s valuations did not change by much, either. Opportunity President Joe Biden’s massive $2 trillion infrastructure and stimulus plan re-ignited investor interest in EVs. The plan includes investments worth $174 billion in EV initiatives. Besides investing in TSLA or NIO stock, investors may look at Chargepoint Holdings (NYSE:CHPT) or Blink Charging (NASDAQ:BLNK). QuantumScape’s commercially available battery is still a few years away. Impatient investors may consider charging station companies in the short term. But continued coverage on QS’s prospects in the next few years should attract investors. The company will act like a biotechnology stock on the markets. Just as shareholders wait for clinical results, they will need to wait patiently for QS to bring a product to market. Experts said that the EV market is poised for record sales in 2021. Consumers have a wide variety of choices. Add the government’s pledge to electrify automobiles and the demand for EV batteries will climb. By the time QuantumScape has a product on the market, it will have billions of dollars worth of pre-orders. Most SPACs will lose money for investors. QS shares are bucking the trend. Markets have a strong demand for companies offering clean energy solutions. The battery EV is in the early phases of strong growth for the next few years. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post QuantumScapeâs Long-term Battery Prospects Will Hold Charge appeared first on InvestorPlace.
A handful of retailers and apparel makers have encountered a backlash in China in recent weeks, and more could soon be in the same boat.
Two factors knocked the wind out of Churchill Capital IV (NYSE:CCIV) stock. First, when the rumors of this SPAC’s (special purpose acquisition company) merger with Lucid Motors became fact, investors sold on the news. That’s why the stock, which skyrocketed more than six-fold ahead of the announcement, plunged in late February. Source: T. Schneider / Shutterstock.com Second, the EV stock correction, which started around the same time. With investors bidding up the sector many times in 2020 and early 2021, it seemed nothing was going to stop this popular investing trend. But, rising interest rates, and concerns about valuation, convinced many it was time to hit the “sell” button. Yet, now, the dust has settled on both these issues. The sector is far from back to its recent highs. But, major names are starting to mount a rebound. And, that includes CCIV stock. Finding support at around $22 per share, the EV SPAC stock is starting to trend higher once again.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Sure, it may be too early to call this the start of a recovery. Concerns over whether it can beat out incumbents like Tesla (NASDAQ:TSLA), and dominate the luxury EV market, remain on the table. But, recent news is helping to back up the bull case. If more positive developments come out, it may be enough to send it back above $30 per share. Subsequent News Could Sustain Upward Price Moves for CCIV Stock Better-than-expected delivery numbers have helped Tesla stock start to recover. Recent delivery numbers are also helping to support shares in China-based EV maker Nio (NYSE:NIO). But, for an early-stage electric name like this one, what’s going to help sustain a recovery for its stock price? 7 Great Stocks to Buy Under $10 Recently disseminated information, such as details of its manufacturing capabilities, and its reservation numbers, may be starting to renew confidence that it can someday dominate the premium EV space. As I discussed previously, Lucid has more than enough “ingredients of success” on its side. These additional signs of progress are just icing on the cake. Of course, it’s not guaranteed that Lucid is destined to become the king of high-end EVs. Tesla already has established itself in this space. With an existing economic moat, it may still have an edge over this upstart. Yet, it may not be wise to assume Tesla is unsinkable. It may have many advantages when it comes to large-scale manufacturing. But, its moves to expand its user base may Lucid an opening for a large piece of the luxury market. Lucid vs. Tesla Will Lucid Motors start eating Tesla’s lunch? Or, does the established EV maker have the power to prevent this from happening? First, let’s look at the side of this argument that’s bearish on Lucid’s prospects. Recently, a Seeking Alpha contributor made the case why this company isn’t the next Tesla. Believing Lucid’s “destined for failure,” the commentator lists many ways why this company won’t usurp the EV top dog. Chief reasons include a more competitive environment, plus its relative inexperience in large-scale production. Given this company still needs to prove itself, both are valid points. Plus, as the bearish commentator pointed out as well, buying in at today’s implied post-merger valuation ($30 billion) makes little sense, given the stock’s priced on what could happen, rather than what has happened. Okay, how about the more bullish case. That is, Lucid lives up to Wall Street’s current expectations, and turns Tesla into a relative dinosaur? On Apr 6, InvestorPlace’s Josh Enomoto pointed out how Lucid could beat out Tesla when it comes to the higher end of the premium market. Namely, while Tesla is trying to become a mass market vehicle, Lucid is focusing just on making EVs for the rich. This could pay off, as per Enomoto’s thesis, current economic factors do not bode well for the middle-income bracket. There’s Enough in Play to Send This SPAC Higher Ahead of Its Merger Adding to Enomoto’s thesis above, I can see another way Tesla’s mass-market strategy could backfire, in a way that benefits Lucid. I’m talking about the risk Tesla loses some of its brand cache, as it expands its customer base with lower-priced models. If Teslas become more of a mass-market car, its current owner base could ditch it for something that better conveys high social status. This may allow the EV upstart to grab a major share of the premium market, and live up to expectations. Of course, it’s a bit too early to say it’s set in stone Lucid will beat Tesla at its own game. But, with more pointing to this SPAC deal paying off for investors, there’s enough in motion to help send CCIV stock back towards $30 per share and above ahead of the deal close. On the date of publication, Thomas Niel did not (either directly or indirectly) hold any positions in the securities mentioned in this article. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post Churchill Capital IV Stock May Continue to Recover in the Near-Term appeared first on InvestorPlace.
Avelo Airlines, a startup budget carrier, will inaugurate service on April 28 from its base at Hollywood Burbank Airport in California. What’s Happening: The start-up airline will offer nonstop service to smaller airports in 11 West Coast locations, using 189-seat Boeing 737-800 aircraft accommodating 189 seats. To launch its service, Avelo is offering a promotion with one-way fares beginning at $19. “After more than 20 years of steadily shrinking consumer choice, the American flying public wants and deserves more options and lower fares,” said Avelo Founder and CEO Andrew Levy, former chief financial officer at United Airlines Holdings Inc (NYSE: UAL) and former president, chief financial officer and chief operating officer at Allegiant Travel Company (NASDAQ: ALGT). Related Link: French Government Gives .7B Infusion To Ailing Air France: What You Need To Know Why It Matters: Avelo is the second start-up U.S. carrier launching this year, joining Breeze Airways as a newcomer to the skies. Avelo is also entering an industry that is more than eager to move beyond the financial trauma created by the COVID-19 pandemic. Several major carriers have announced new routes and the resumption of pandemic-paused services, and two companies — Frontier Airlines and Sun Country Airlines — have also announced plans for initial public offerings. Related Link: American Airlines Flight Encounters UFO Over New Mexico (Photo courtesy Avelo Airlines) See more from BenzingaClick here for options trades from BenzingaDMX, Rapper With Troubled Life, Dies At 50Wall Street Crime And Punishment: Joseph P. Kennedy, The Crooked Dynasty Patriarch© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
NEW YORK (Reuters) -A federal judge on Friday ruled against Amazon.com Inc as the company defends against New York Attorney General Letitia James' lawsuit claiming it prioritized profit over worker safety during the COVID-19 pandemic at two New York City warehouses. U.S. District Judge Jed Rakoff in Manhattan granted James' request to return her lawsuit to a New York state court, and rejected Amazon's bid to move it to Brooklyn federal court, where the online retailer had sued James to stop her from suing.
Americans have tons of questions about their stimulus checks and 2020 taxes. Here’s what you need to know about 2021 COVID-relief payments and more.
The latest noises coming out from China suggest XPeng (XPEV) is keen to produce its own chips in-house. According to Chinese news outlet 36kr, using a small team of less than 10 engineers, the Chinese EV maker is developing its own autonomous driving chip. The production started a few months ago and is taking place in both the US and China. Xia Heng, XPeng’s Co-President and Chief Technology & Operation Advisor Benny Katibian, whose prior jobs include leading the tech dept at Qualcomm's ADAS team, are at the helm of the new project. “Industry sources indicate XPeng is actively recruiting chip engineers,” said Deutsche Bank’s Edison Yu, who believes this suggests “there are plans to grow this effort moving forward.” “In our view,” Yu further noted, “We do not expect any near-term changes as both XPILOT 3.5 and 4.0 will use Nvidia chips (Xavier and Orin), but believe similar to Tesla/NIO, XPeng wants to ultimately use a custom designed chip purpose built to train its neural net (to use in XPILOT 5.0) rather than a general purpose chip, in order to maximize performance/ efficiency and lower cost.” Yu thinks local rival Nio, is “likely” fast at work on a similar project after poaching Xiaomi's chip division manager. Looking at the wider picture, Yu believes it is all part of an effort by the industry/government to lower the dependence on foreign chips. Earlier this year, backed by BYD and Great Wall Motor, Horizon Robotics raised $900 million in a Series C round. The 5-year-old, local start-up was recently selected by SAIC (GM and VW’s main JV Chinese partner) to supply its ADAS/AD chipset. Horizon is targeting the shipment of 1 million chips this year and Yu believes it is a good example of the local industry’s chip manufacturing ambitions. To this end, Yu rates XPEV shares a Buy along with a $48 price target. The implication for investors? Upside of 39%. (To watch Yu’s track record, click here) XPEV stock has a resounding “yes” on Wall Street. 6 Buys and 1 Hold assigned in the last three months add up to a Strong Buy analyst consensus. At $49.50, the average price target implies upside potential of 43.5%. (See XPEV stock analysis on TipRanks) To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.