United Airlines Holdings (NASDAQ:UAL) reported quarterly losses of $(0.15) per share which beat the analyst consensus estimate of $(0.57) by 73.68 percent. The company reported quarterly sales of $12.539 billion which beat the analyst consensus estimate of $12.450 billion by 0.72 percent. This is a 9.71 percent increase over sales of $11.429 billion the same period last year.
Tesla (TSLA) investors need clarity from Elon Musk on the company’s cost-cutting rationale, strategy, product roadmap and vision amidst weak global demand, Wedbush said in a note Monday. The investment firm added that without clear communication, investors may lose confidence and choose to sell their shares given the demand headwinds in 2024. There were reports earlier on Monday that the company has decided to reduce headcount globally by more than 10%. Musk must outline Tesla’s growth strategy, particularly in China, to reverse this negative demand trend, according to the note. “This is a crucial few months ahead for Musk and Tesla to give the [Wall Street] its blueprint for growth into 2025,” the firm said. Wedbush reiterated its outperform rating on Tesla with a price target of $300.
Tesla Should Address Investor Concerns Amid Weak Demand, Wedbush Says Read Post »
Tesla’s (TSLA) job cuts reported by media outlets represent “another dark day” for the electric vehicle maker following a first-quarter delivery miss and the overall pressure on the business, Wedbush Securities said Monday. Tesla will lower its global headcount by more than 10% in a bid to cut costs, media outlets reported Monday, citing an e-mail sent to employees by Tesla Chief Executive Elon Musk. “Over the years, we have grown rapidly with multiple factories scaling around the globe,” resulting in duplication of certain roles and job functions, Musk reportedly wrote. “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity.” Drew Baglino and Rohan Patel, who was Tesla’s policy chair, are no longer with the company, Electrek reported. Tesla didn’t respond to MT Newswires’ request for comment. The company’s shares
Tesla’s Reported Layoffs Represent ‘Another Dark Day’ For EV Maker, Wedbush Says Read Post »
Netflix (NFLX) is expected to post “strong” Q1 results amid benefits from paid sharing tailwinds and industry rationalization, UBS Securities said Monday in a report. Paid sharing helps the company increase revenue growth despite weaker foreign exchange, the report said. UBS expects accelerating average revenue per member growth in H2 on the back of strong revenue growth, increased market share and favorable pricing dynamics. Netflix’s engagement trends remain consistent across tracked markets with an average 11% decline from a year earlier, UBS said. The firm said Netflix will benefit from rising pay TV competition as programmers intensify efforts to make streaming profitable by employing strategies such as price hikes, platform consolidation, library curation, content spending cuts and higher licensing fees. UBS reiterated its buy rating for Netflix stock and kept the price target at $685. Results from Q1 are scheduled for April 18. Netflix shares fell 0.1% in recent after-hours
Leading airline company United Airlines Holdings Inc (NASDAQ:UAL) will report first-quarter financial results after market close Tuesday, April 16. Earnings Estimates: Analysts expect United Airlines to report first-quarter revenue of $12.45 billion. The company reported revenue of $11.429 billion in last year’s first quarter. United Airlines has beaten Street estimates for revenue in six straight quarters. Analysts expect the airline company to report a loss of 56 cents per share for the first quarter, compared to a loss of 63 cents per share in the year-ago period. The company has beaten earnings per share estimates from analysts in six straight quarters.
United Airlines Q1 Earnings Preview Read Post »
Hilton Grand Vacations provides an opportunity for investors to gain exposure to the timeshare business model at a relatively attractive valuation, JPMorgan analysts say in a research note. Hilton Grand Vacations has transformed significantly since its spin-off from Hilton Worldwide in 2017, and could gain operating momentum in the 2H through 2025, the analysts say. Overall, the company’s owner base has increased above its closest peers. “We believe this is sustainable as it leverages the strength of its branded products,” the analysts add. JPMorgan initiates coverage at overweight with a target price of $59. Shares rise 1.1% to $43.99 in pre-market trading.
Hilton Grand Vacations Seen Gaining Operating Momentum in 2H Read Post »
Netflix (NFLX) is likely to report higher Q1 revenue April 18 as long-tail benefits of paid sharing become increasingly evident, Oppenheimer said in a note Thursday. Analysts, including Jason Helfstein, said that Netflix has captured about 20% of the 100 million disclosed opportunity for paid sharing, and could have a 60% capture rate by 2026, mainly due to “increasing content advantage and content/advertising spend pull-back by competitor streaming platforms.” They expect Netflix’s 2024 ad revenue to be $5.1 billion. The average revenue per member for 2024 is expected to rise 4% year-over-year, reflecting the recent basic and premium price increases in the US, the UK, and France, with potential upside from subscribers paying for extra members or other geographic price increases. “We believe Netflix’s dominance will continue, given its clear advantage in producing high-engagement content and monetizing that content more effectively than peers,” the analysts said. Oppenheimer kept its outperform
Keybanc analyst Justin Patterson maintained Spotify Technology SA (NYSE:SPOT) with an Overweight rating and raised the price target from $300 to $350. Spotify will report its first-quarter fiscal 2024 results before the market opens on April 23. Patterson refined his estimates and framed vital factors to watch. The analyst now expects 2024 revenue of €15.4 billion and 2025 revenue of €18.0 billion, which reflects slightly higher ARPU growth. His 2024 operating profit decreases by 20% due to social charges, while 2025 increases by 2% due to higher revenue. Finally, Patterson introduced 2026 revenue of €20.6 billion and an operating profit of €2.2 billion, which assumes 14% revenue growth, 29.9% gross margin, and 10.5% operating margin. Due to the higher revenue and profitability forecasts, Patterson raised his price target, implying 3.4x 2025E EV/S and 34.7x 2025E EV/FCF. For reference, the analyst noted that Netflix Inc (NASDAQ:NFLX) saw its EV/S multiple expand by ~50% over five years
Spotify’s Q1 Outlook: Analyst Anticipates Surge in Subscriber Base and Revenue Per User Read Post »
Tesla’s (TSLA) future is a “bit murky now” that requires Chief Executive Elon Musk to give a “clear roadmap” to the Street with Model 2 as the main component of that “strategic vision,” a research note from Wedbush Securities said following the electric vehicle manufacturer’s plans to unveil its Robotaxi on Aug. 8. Model 2 is a critical element in Tesla’s growth story as a sub $30,000 price point will help drive mass demand globally, Wedbush analysts, including Daniel Ives, said in the note late Thursday. About 60% of the company’s growth in the next few years will come from Model 2, which was set to hit the roads by late 2025 or early 2026. “If robotaxis is viewed as the ‘magic model’ to replace Model 2 we would view this as a debacle negative for the Tesla story,” Ives said in the note. “It would be a risky gamble
Piper Sandler analyst Thomas Champion maintains Netflix (NASDAQ:NFLX) with a Neutral and raises the price target from $550 to $600.
Piper Sandler analyst Thomas Champion maintains Netflix (NASDAQ:NFLX) with a Neutral Read Post »
Citigroup analyst Jon Tower maintains Starbucks (NASDAQ:SBUX) with a Neutral and lowers the price target from $102 to $95.
Citigroup analyst Jon Tower maintains Starbucks (NASDAQ:SBUX) with a Neutral Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target from $198 to $221, calculated using an EV/EBITDA multiple of 17x (was 16x) against our 2024 adj-EBITDA of $141.8B (up from $137.0B) vs. the 12x-30x historical range. We lift our 2024 adj-EPS estimate to $6.85 from $6.45 and 2025’s to $8.53 from $7.18. Our upwardly revised estimates reflect margin expansion opportunities in 2024, driven by continued retail efficiencies (e.g., supply chain regionalization benefits), AWS growth reacceleration (e.g., GenAI investments), and robust advertising growth (e.g., Prime Video ads introduced in January). We see GAAP operating margins rising from 6.4% in 2023 to 9.4% in 2024, above the current 8.5% consensus, with free cash flow likely exceeding $70B (up from $37B in 2023). Risks include a slower consumer spending environment and lumpy AWS growth,
CFRA Reiterates Buy Opinion On Shares Of Amazon.com, Inc. Read Post »