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NEW DELHI: The Nifty Auto index traded negative around 10:08AM(IST)on Friday in a weak market.Bosch Ltd.(up 2.23 per cent), Tata Motors Ltd.(up 1.2 per cent), MRF Ltd.(up 0.62 per cent), Apollo Tyres Ltd.(up 0.38 per cent) and TVS Motor Company Ltd.(up 0.35 per cent) were among the top gainers.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1qu_Atz_f13ab4fa2f.jpg" alt="AA1quAtz.jpg"></figure>Samvardhana Motherson International Ltd.(down 2.29 per cent), Mahindra &amp; Mahindra Ltd.(down 0.65 per cent), Maruti Suzuki India Ltd.(down 0.49 per cent), Eicher Motors Ltd.(down 0.44 per cent) and Hero MotoCorp Ltd.(down 0.18 per cent) were the top losers on the index.The Nifty Auto index was down 0.02 per cent at 25774.8 at the time of writing this report.Benchmark NSE Nifty50 index was down 51.91 points at 25337.0, while the BSE Sensex was down 164.54 points at 82798.17. Among the 50 stocks in the Nifty index, 19 were trading in the green, while 31 were in the red.Shares of Vodafone Idea, YES Bank, IDBI Bank, Tata Steel and Suzlon Energy were among the most traded shares on the NSE.Shares of KDDL Ltd, Edelweiss Financial, Servotech Power Syst, Bharti Hexacom and Campus Activewear hit their fresh 52-week highs in today's trade, while Stampede Cap(DVR), Viji Finance, Alps Industries, Rollatainers Ltd and Nila Spaces hit fresh 52-week lows in trade.

Bosch Ltd.(up 2.23 per cent), Tata Motors Ltd.(up 1.2 per cent), MRF Ltd.(up 0.62 per cent), Apollo Tyres Ltd.(up 0.38 per cent) and TVS Motor Company Ltd.(up 0.35 per cent) were among the top gainers.

Stock market update: Nifty Auto index falls 0.02% in a weak market

The US Department of Justice (DOJ) filed an antitrust lawsuit against Visa, alleging that the payment giant has stifled competition through various anti-competitive practices. The development on Tuesday sent Visa's stock price plummeting, with shares closing down approximately 5.5 per cent for the day, Reuters reported. &nbsp;<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1r9_Nt_U_cd213a71d7.jfif" alt="AA1r9NtU.jfif"></figure>The DOJ's lawsuit claims that Visa, which processes over 60 per cent of debit transactions in the United States, has maintained its market dominance through questionable agreements with card issuers, merchants, and potential competitors. These practices, according to prosecutors, have allowed Visa to collect around $7 billion annually in fees from debit transactions routed through its network, the report added.In response to the allegations, Julie Rottenberg, Visa's general counsel, defended the company's practices, stating, "When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide." She added that the claims are without merit and that Visa intends to contest them vigorously, Reuters reported.The lawsuit is part of a broader initiative by the Biden administration to address rising consumer prices, a key issue in the upcoming presidential election. Attorney General Merrick Garland emphasized the far-reaching impact of Visa's alleged conduct, saying, “Visa's unlawful conduct affects not just the price of one thing, but the price of nearly everything,” per the Reuters report.According to the DOJ, Visa's anti-competitive behaviour began around 2012, following reforms that required card issuers to accommodate unaffiliated networks. The lawsuit alleges that Visa entered into agreements with potential fintech competitors like Apple, PayPal, and Square (now Block Inc.) to prevent them from releasing products that could threaten Visa's market position, the report added.The legal action seeks to prohibit Visa from imposing pricing structures that discourage competition and paying rivals not to compete. The DOJ aims to restore competition in the debit payment processing market for online and in-store transactions.This lawsuit is the latest in a series of legal challenges faced by Visa and its rival Mastercard over their dominance in the payment card market. Both companies have been involved in litigation for nearly two decades and have already set aside substantial funds for potential settlements related to interchange fees.As the legal battle unfolds, the outcome of this antitrust lawsuit could have significant implications for the payment processing industry and potentially lead to changes in how debit transactions are handled in the United States.

The US Department of Justice (DOJ) filed an antitrust lawsuit against Visa, alleging that the payment giant has stifled competition through various anti-competitive practices. The development on Tuesday sent Visa's stock price plummeting, with shares closing down approximately 5.5 per cent for the day, Reuters reported.

Visa stock plunges as US Department of Justice files antitrust lawsuit alleging market dominance

<ul><li>Stock market highs are expected to continue into 2025, according to Oppenheimer's Ari Wald.</li><li>In a note, Wald highlighted strong market breadth and healthy signs across various sectors.</li><li>Key sectors like industrials, financials, and technology look resilient, Wald said.</li></ul><figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/BB_1kbc_UL_25bd0eea6a.jfif" alt="BB1kbcUL.jfif"></figure>Record highs in the stock market are set to continue, as few signals suggest a top in equity prices is near.That's according to Oppenheimer managing director and technical analyst Ari Wald, who said in a note over the weekend that there are bullish "inflection points" in the underlying market."We continue to balance seasonal headwinds against our view that evidence of a major top is not compelling," Wald said.Wald said he is encouraged by the fact that the number of stocks on the New York Stock Exchange above their 200-day moving average is above 60%, which is a healthy sign for a market advance, as it shows that it's not just a handful of mega-cap tech companies driving the gains."We stress that market breadth remains constructive, and defensive leadership may represent a 'catch-up' into previous underperformers," Wald said.Wald said that based on the chart, traders can buy last week's breakout to new cycle highs in the S&amp;P 500, with a stop-loss set at the 5,650 level on a closing basis.A stop-loss is a risk management tool used by traders to automatically sell a security when a certain price is hit.For the S&amp;P 500, the 5,650 level represents potential downside of just 1%, while Wald's upside price target of 6,000 in the first half of 2025 represents potential upside of 5%.Wald's 6,000 price target for the S&amp;P 500 is based on the median bull market cycle."The S&amp;P 500 is up 64% over the 23 months between October 2022 and September 2024. Since 1932, the median bull cycle has gained 73% over a 32-month period," Wald said.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/BB_1m_H2ar_62ad2b62ac.jfif" alt="BB1mH2ar.jfif"></figure>Meanwhile, the average bull market cycle gain is 102% over a 34-month period.And if the current bull market follows the path of the average bull market, stocks could continue to rise through the end of 2025 with the S&amp;P 500 rising to around the 7,000 level.That 7,000 target aligns with a bullish prediction from Evercore ISI, which said in June that the AI craze could push stocks higher in 2025.Beneath the surface of the broad market, Wald said he is encouraged by the "right" leadership making new highs, including the Industrials sector."We view the cycle high for Industrials as confirmation of an intact bull market," Wall said.Record highs in the financials sector is another positive sign for the broader stock market, while the technology sector could be gearing up for its next big move higher, according to Wald.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1r3fur_0b47a01199.jfif" alt="AA1r3fur.jfif"></figure>"Technology is coming off an all-time high on both an absolute and relative basis in July. While the sector's relative trend has moderated, we still believe Technology represents one of the strongest long-term structures in the market," Wald said.Finally, Wald highlighted the healthcare sector as another area of the market that is showing resilience, even as it lags other sectors.While the healthcare sector is breaking out to new all-time highs, on a relative basis it is falling to new multi-year lows compared to the S&amp;P 500."We think the divergence between Health Care's absolute and relative trend speaks to the broadness of market breadth — even lagging sectors are rallying," Wald said.Similar scenarios are playing out in the communication services and materials sectors, according to the note.

Stock market highs are expected to continue into 2025, according to Oppenheimer's Ari Wald.

Why stocks have a lot more room to rally before hitting a peak, according to a technical analyst

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1q_R_Oc_I_a9436ab45e.jfif" alt="AA1qROcI.jfif"></figure>The company closed down nearly 6%, at $14.70, as the six-month lockup period preventing insiders from selling the stock expired after Trump Media merged with blank-check company Digital World Acquisition Corp to take it public.Trump, the majority owner with a 57% stake now valued at around $1.7 billion, said last week that he has no intention of selling his position — a move that would effectively devalue the stock.The Republican presidential nominee and other large investors, who collectively own more than 20 million shares, were free to sell the stock after the closing bell. Trump Media debuted on the Nasdaq to great fanfare in March, with the share price soaring to more than $60.But It has suffered volatile swings during his run for the White House as incumbent Joe Biden dropped out and Kamala Harris got the Democratic nomination.The latest polls show Trump and the Vice President are virtually tied in the major swing states.Trump launched Truth Social in February 2022 after he was banned from major sites such as Facebook and the platform formerly known as Twitter following the Jan. 6 attack on the US Capitol.He’s since been reinstated to both — and endorsed by X owner Elon Musk — but he still mostly posts on his own platform.While Truth Social sought to capitalize on the outrage over Trump’s bans, it has struggled gaining traction.The platform had less than 1 million daily active users as of April, according to data from Similarweb.

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.

Trump Media stock sinks as former president can finally sell his shares

Will Tesla Stock Split in 2024? No, Tesla CEO Elon Musk and his Board of Directors have not announced any plans for a Tesla stock split in 2024.But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/Tesla_Stock_Split_1_jpg_8b2ce62173.webp" alt="Tesla-Stock-Split-1.jpg.webp"></figure>Why Doesn’t Tesla Split Its Stock? TSLA Stock Price Tesla (TSLA) stock is well down from all-time highs; thus, the impetus to make shares more affordable is not quite there.If Tesla’s current stock price isn’t viewed as prohibitively high, there might not be a strong need for a split. In other words, Tesla may believe the price is already within reach for most investors.That’s not to say a Tesla stock split date could never be announced at these prices. Historically, management has tried to bump shares out of a slump by conducting stock splits.Management at Tesla may feel that its current stock price accurately reflects its market value, and therefore doesn’t see the necessity of a split.A higher stock price can convey stability to investors, and Tesla may want to preserve that perception.Earnings Tesla’s 2023 annual earnings paint a mixed picture.While revenues increased by 24% year-over-year from 2022 to 2023, reaching $81.5 billion in 2023, its net profit declined. In 2022, Tesla had a net profit of around $12.6 billion, but in 2023, that figure dropped to approximately $10.5 billion, reflecting a 17% year-over-year decrease in profits. This drop in profitability comes from price cuts on its vehicles to stay competitive, squeezing margins. With profits down and costs rising, Tesla’s current financial position might not justify another stock split, which usually signals strong confidence in future growth.Elon Musk’s Distractions It seems fair to assume that a Tesla stock split couldn’t happen without CEO Elon Musk’s approval. However, Musk appears to be preoccupied with his other ventures, from Starlink to X Corp (formerly Twitter) to SpaceX and Neuralink.To his credit, he appears to be juggling all his ventures with sufficient verve – but a Tesla stock split is probably far down the pecking order of Elon Musk’s priorities.More broadly, if Tesla’s top team doesn’t see any major strategic benefits from a split at this time, it might choose not to proceed with one. Without a clear advantage, they could prefer to maintain the current structure rather than change it unnecessarily.EV Market Outlook While the trend towards electrifying vehicles still looks to be intact, the industry is not without uncertainties. For one, the value of used Teslas has been falling, pointing to potentially falling demand as well as government discount schemes to buy new EVs, which distorts the incentives behind market pricing.Tesla’s previous stranglehold over the EV market has also been waning as the major car manufacturers catch up. There is high demand for hybrids, and new low-cost EV competitors, mostly from China, are bringing down the average price.What Does This Mean for Investors? Long-term Tesla shareholders will have preserved the memory of TSLA shares north of $400 and would likely want to see a return to those levels, something a stock split closer to $200 would delay.Tesla could theoretically do a 2-for-1 stock split at ~$200, bringing the shares back to $100 – a nice round number and affordable to most potential investors. That would mean that the adjusted Tesla record high would not be $409.97 but rather $204.99.The possible downside of such a move would be psychological. Long-term shareholders, while understanding that the all-time high price has adjusted post-split, might still want to see the shares rise over $400—and over the pre-split record high.

But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.

Will Tesla Stock Split in 2024 After TSLA Bounces Back?

Trump Media &amp; Technology Group&nbsp;(DJT&nbsp;-6.60%)&nbsp;has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.What's sometimes forgotten is that there's a real company behind the stock, not just the former president. Trump Media may not be much of a business right now, but its fundamentals are still the ultimate reason why investors should consider investing in the stock or not.However, the company's future is uncertain, and a lot seems to be hinging on whether the former president gets elected this year. Is this stock too risky to own? Could it ultimately be headed to $0?<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/a573cfd2ea868773a9dc3f626cf1480f_a3213d9723.png" alt="a573cfd2ea868773a9dc3f626cf1480f.png"></figure><h2 style="margin-left:0px;">It has the classic signs of a meme stock</h2>Trump Media generates minimal revenue, and the social media platform Trump Social isn't exactly taking off and giving other social media stocks cause for concern. As is the case with other&nbsp;meme stocks, factors outside of the company's core operations impact its share price, not its fundamentals.When President Joe Biden announced he was dropping out of the election in July, shares of Trump Media stock proceeded to fall, as speculators likely saw worsening prospects for Trump winning against Democratic candidate Kamala Harris than they did against Biden. Since that announcement on July 21, Trump Media has lost half its value.Another feature of a risky meme stock is that there are often plenty of&nbsp;short-sellers&nbsp;betting against it. The stock has averaged a fairly high short interest of more than 7% this year, and that percentage has been rising in recent weeks.&nbsp;This opens the door to a possible&nbsp;short squeeze&nbsp;if speculators become more bullish on Trump's chances, which would add to the overall risk and volatility that may come from owning the stock.<h2 style="margin-left:0px;">The fundamentals are what matter, and they aren't great</h2>Trump Media doesn't report user metrics -- likely because they aren't all that impressive. After all, they could help give investors a reason to buy the stock if they were good. At least they could provide investors with the hope that there's potential for the platform to draw interest from advertisers down the road, even though the business isn't profitable today and revenue isn't strong,I always look at the information a company leads with when it reports earnings, as that can help indicate what it thinks is most important for investors to focus on. For an unprofitable company, it might be user growth or some other metric to suggest it's doing well, such as shrinking losses.In Trump Media's August press release announcing earnings, the top bullet point was that it had $344 million in cash and no debt on its books. That's not exactly exciting for&nbsp;growth investors. Simply having a lot of cash doesn't make a business worth investing in, especially if it's not generating much revenue and burning through money -- as is the case with Trump Media.An average investor who's looking for a quality stock would likely pass on Trump Media stock because there isn't much substance behind it. At this point, it's largely a speculative play.<h2 style="margin-left:0px;">Is the stock heading to $0?</h2>Trump Media stock could rally if speculators believe Trump's prospects for winning the upcoming election look good and become more bullish on his chances. That would still be a short-term reason to bet on the stock -- not to&nbsp;invest in it for the long term.A short-term move fueled by election hopes wouldn't change the fundamentals, which are what matter most for investors. If the business isn't demonstrating meaningful growth in its operations, isn't profitable, and isn't generating positive cash flow, there's little reason to expect the stock to go anywhere but down.These are the reasons I think Trump Media stock ultimately will get to $0. It just may be a matter of how long until it gets there and what path it takes.

Trump Media & Technology Group (DJT -6.60%) has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.

Is Trump Media & Technology Stock Heading for $0?

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. All the split does is create more slices; it doesn't make the whole any larger. However, they are still essential, especially for those who aren't billion-dollar hedge funds. Microsoft (MSFT 0.17%) has split its shares nine times, most recently in 2003. A single share would cost $123,800 today without stock splits. That price is out of reach for many, if not most investors to buy a single share. And, as you can see below, the price is towering again.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/3cdfca261af7d8e570b42af33c63039b_873c77163a.png" alt="3cdfca261af7d8e570b42af33c63039b.png"></figure>Splits also indicate that a company is booming, since the share price must have grown significantly. Unlike Microsoft, ServiceNow (NOW 1.54%) has never split; however, with share prices of $879, this could change soon.Here is why these companies are having tremendous success.Microsoft The release of the generative AI chatbot ChatGPT pushed the AI race to the center of society's and investors' consciousness. When Microsoft made a multibillion-dollar investment in its creator, OpenAI, it was full throttle for tech companies to catch up. ChatGPT integrates with Microsoft Bing, which could allow Bing to steal some market share from Alphabet's Google Search, which generated $95 billion in revenue in the first half of 2024. Even small inroads for Bing will generate billions in revenue.Another major AI product is Microsoft Copilot. Copilot integrates into several products, answers questions, summarizes or generates text, creates images, codes, and analyzes data. According to Microsoft, 60% of the Fortune 500 use Copilots, a staggering figure given the technology's newness. These innovations drove sales growth of 16% in fiscal 2024 to $245 billion. Operating income grew 24% to $109 billion, a terrific 45% margin.Microsoft stock trades at 36 times earnings, which is higher than its three-year and five-year averages of 33; however, the price-to-earnings (P/E) ratio drops to 33 on a forward basis. Due to the lofty valuation, investors shouldn't expect the price to skyrocket overnight. Still, Wall Street can justify the current price based on Microsoft's AI opportunities.ServiceNow ServiceNow and Microsoft have partnered for years on many technology initiatives. The latest integrates ServiceNow's AI product, Now Assist, with Microsoft Copilot. Without boring you with too many technical details, the Now Assist product increases productivity in areas like human resources, IT support, customer service, and others. For example, Now Assist saves customer service agents time by summarizing a customer's recent interaction so the agent doesn't have to go through the transcript, allows agents to search vast databases quickly to find answers faster, etc. The increased productivity is invaluable for companies in a highly competitive world.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/download_317e644b63.avif" alt="download.avif"></figure>Around 85% of the Fortune 500 use ServiceNow. The chart below shows just how much ServiceNow's customer base has grown. Each year that a customer adopts ServiceNow is represented by a different color, and the expansion shows the increased revenue from these customers over time.ServiceNow is in a higher growth phase than Microsoft ($2.6 billion in sales on 22% growth last quarter), so sales rather than bottom-line earnings better represent its valuation. Its current price-to-sales ratio is 18, which aligns with its 5-year average. Looking forward, the company expects 2024 subscription sales of $10.5 billion, and $15 billion in 2026. This means the stock price could conceivably return nearly 50% through 2026 by maintaining the same valuation.Microsoft and ServiceNow are making huge moves in AI, and with soaring stock prices, splits may be on the horizon.

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. 

Stock-Split Watch: 2 Artificial Intelligence (AI) Companies That Look Ready to Split

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. There have been a couple of trends driving the sell-off including concerns about gross margins, some supply chain issues, and the company’s delay in filing its Form 10-K with the SEC, after short-seller, Hindenburg Research accused the company of irregularities with its accounting. Despite these setbacks, the stock remains up by about 7x from 2022, driven by surging demand for server systems fueled by the generative artificial intelligence wave. However, with these challenges, the stock could decline further, possibly touching around $200 per share.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/960x0_8_eed079d9cd.webp" alt="960x0 (8).webp"></figure>Super Micro stock trades at just about 18x trailing earnings and 12x forward earnings at the current price level. Although this isn’t a very high multiple, there’s a very real possibility that Super Micro’s earnings could decline after a couple of years of stellar growth. Moreover, the uncertainty relating to compliance-related matters could weigh on the stock. This analysis outlines how the stock could decline by about 50% in the next few years by looking at the company’s potential revenue growth, net margins, and price-to-earnings multiple. While this article spotlights the downside case for the stock, the upside case can be seen here: Can Super Micro stock fare better than AI bellwether Nvidia?SMCI Rallied Big But Witnessed Considerable VolatilitySMCI stock has generated better returns than the broader market in each of the last 3 years. Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023. However, the stock has also declined by roughly 60% since March 2024 making it a relatively volatile bet. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, is considerably less volatile. And it has outperformed the S&amp;P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment around rate cuts and multiple wars, could SMCI see a strong jump?Revenues Could Fall As Server Investment Cycle TurnsSuper Micro Computer is a data center solutions provider, which sells server systems, server boards, storage, networking solutions, management software, and installation and maintenance services. SMCI is projected to grow its revenue by close to 90% in FY’25 (the current fiscal year) to levels of about $28 billion, per consensus estimates, as data center-related spending remains strong, with tech companies continuing to invest in AI and accelerated computing capacity. However, the current euphoria might be masking the fact that the server market can, in fact, be cyclical and things could take a turn for the worse.The underlying economics of the end market for the broader AI ecosystem remain weak, and most of AI customers remain loss-making. Large language models are also very expensive to build and train. We could very well be in a phase where companies are seeing so-called FOMO, compelling them to invest in AI just because their rivals are doing so, without a thought about the return on investments. As shareholders seek better returns, we could see capital spending cool off, impacting the likes of Super Micro. Moreover, most AI companies are going through the compute-intensive training phase at the moment, and there’s a real possibility that demand for computing power and servers could cool off once these companies move to the less compute-intensive deployment phase. The server market is also very commoditized. While Super Micro does have some competitive advantages, given that its products are seen as being more customizable, the company’s lead in these areas is hardly insurmountable and competition could mount considerably. Considering a potential cooling of demand and higher competition, if SMCI’s revenues decline by about 15% each year over FY’26 and FY’27 revenues could stand at $20 billion by FY’27. Looking for more companies that can benefit from increased digitization and AI deployment?Combine this weaker-than-expected revenue growth with the possibility that Super Micro’s adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) can decline a bit. Although margins expanded from 6% in FY’22 to about 9% in FY’24, driven by higher economies of scale, they could decline meaningfully if sales drop and competition mounts reducing the company’s volumes and pricing power. Moreover, SMCI has seen its gross margins face some pressure in recent quarters as it sells a higher mix of liquid-cooling systems, which are proving expensive to produce and this trend could also continue. Considering this, it may be reasonable to assume that Super Micro’s adjusted net margins could decline from an estimated 9% this year to about 6.5% by FY’27, or about 0.72x current levels.Valuation Multiple Could ContractIf revenues decline by about 0.7x between FY’25 and FY’27, with margins contracting by about 0.72x over the same period, this would imply that earnings could fall by about 0.5x. Now if earnings fall by 50%, the P/E multiple is bound to take a hit as investors re-assess SMCI’s overall long-term earnings growth prospects. If SMCI’s P/E multiple gradually shrinks from a multiple of about 12x based on FY’25 earnings presently to about 10x, this could translate into a decline in SMCI stock to levels of under $200 per share by 2027. What about the time horizon for this negative-return scenario? In practice, it won’t make much difference whether it takes 2 years or 5 - if the competitive threat plays out and SMCI sees the demand cycle turn, we could see a correction. And a sizable one at that.&nbsp;

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. 

A Scenario Where Super Micro Stock Could Fall 50%

Market

The Federal Reserve's aggressive start of the easing cycle has rekindled inflation worries in the U.S. bond market, as some investors fear looser financial conditions could re-ignite price pressures.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/1_21468ce18c.webp" alt="1.webp"></figure>Yields on longer-dated Treasuries that are most sensitive to the inflation outlook have risen to the highest since early September, with some investors worried that the Fed's shift in focus from beating back inflation to protecting the job market could allow for a rebound in price pressures."I think there are questions around how quickly inflation will be able to get to the Fed's target if we're in a cutting environment, and if we're in an environment where the Fed is saying we want to support the labor market before the labor market gets weak," said Cayla Seder, macro multi-asset strategist at State Street Global Markets. She expects long-term yields, which rise when prices fall, to climb further as the market bets on stronger growth and inflation.Fed Chair Jerome Powell said last week the 50 basis point interest rate cut that kick-started the U.S. central bank's descent was a "recalibration" of rates aimed at maintaining strength in the labor market while inflation moves sustainably to the Fed's 2% goal.The Fed's emphasis on economic resilience fueled concerns that the path to lower rates could be slow and bumpy. Fed officials' forecasts on interest rates also suggested a more gradual pace in cuts than what the market anticipated.Expectations for inflation over the next decade as measured by Treasury Inflation-Protected Securities (TIPS) increased after the Fed's announcement on Wednesday, with the 10-year breakeven inflation rate rising to 2.16% on Thursday, its highest since early August. It hit a new high of 2.167% on Monday.An auction of 10-year TIPS on Thursday, after the Fed's rate-setting meeting, was lapped up by investors, with non-dealers absorbing 93.4% of the $17 billion Treasury debt sale, the highest share since January. Flows into U.S. dollar inflation-linked bonds, however, were negative in the week ending on Monday, according to LSEG data."Investors are once again concerned with the specter of reflation," BMO Capital Markets rates strategists said in a note last week. Matt Smith, fund manager at Ruffer, said he has been adding inflation protection to his portfolio over the last few days and weeks.Many in the market have fresh memories of the selloff that happened when a dovish pivot by the Fed in December was followed by months of upside surprises on inflation and employment.The Goldman Sachs U.S. financial conditions index, a measure of the availability of credit in the economy, eased over the course of this year despite interest rates remaining at their highest in over two decades. The day after the Fed's decision, it decreased to its lowest since May 2022."We think inflation is going to remain relatively benign ... but the more aggressive the Fed cuts, the more you have to question that," said Brendan Murphy, head of fixed income, North America, at Insight Investment.

The Federal Reserve's aggressive start of the easing cycle has rekindled inflation worries in the U.S. bond market, as some investors fear looser financial conditions could re-ignite price pressures.

Analysis-Fed's bumper rate cut revives 'reflation specter' in US bond market

Warning

In the ever-evolving financial market, choosing a reputable trading platform is more crucial than ever. Recently, InfoFinance received information from the St. Vincent and the Grenadines Financial Services Authority (FSA) about the trading platform Analystque, a name that is raising concerns but is not legally registered.<h2 style="text-align:justify;">Warnings from many financial organizations all around the world</h2><h3 style="text-align:justify;">Not Registered in St. Vincent and the Grenadines</h3>According to the announcement from the FSA, Analystque is not a licensed entity operating in St. Vincent and the Grenadines. Furthermore, the UK’s Financial Conduct Authority (FCA) has indicated that this platform is believed to be providing financial services in the UK without the necessary authorization. This situation poses significant risks for investors considering trading on this platform.<h3 style="text-align:justify;">Warning from IOSCO</h3>The information does not stop there. The International Organization of Securities Commissions (IOSCO) has also issued alerts against Analystque. This indicates that international financial regulatory bodies are closely monitoring the activities of this trading platform, and users need to exercise greater caution when engaging with it.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/infofinance_canh_bao_scam_0c81367fdd.jpg" alt="infofinance cảnh báo scam"><figcaption>Warning on <a href="https://svgfsa.com/warning-notice-analystque/">https://svgfsa.com/warning-notice-analystque/</a>&nbsp;</figcaption></figure><h2 style="text-align:justify;">Why Analystque is raising concern?</h2><h3 style="text-align:justify;">&nbsp;No Forex/Broker Licenses Issued</h3>A crucial point to note is that the FSA does not issue licenses for Forex or brokerage firms in this jurisdiction. The authority only ensures that business companies (BCs) comply with the regulations under the Business Companies (Amendment and Consolidation) Act. Therefore, if a company operates in the Forex or brokerage sector, it must obtain a license from the jurisdiction where its clients are located.<h3 style="text-align:justify;">Potentially Forged Documents</h3>The FSA also warns that any documents presented by Analystque, claiming to be registered or licensed, may be fraudulent. Investors should not trust these documents, as they can lead to unsafe transactions and significant risks.<h2 style="text-align:justify;">Safe Investment with InfoFinance</h2>InfoFinance advises all investors to exercise caution and take necessary steps to protect themselves from fraudulent activities. Before making any investment decisions, always verify the information about the trading platform and conduct thorough research into its legality.We also encourage you to visit the FCA and IOSCO websites to learn more about how to safeguard yourself in the financial sector.Choosing a reputable trading platform is vital to ensuring the safety of your assets. Analystque is not only unlicensed but has also been flagged by multiple financial regulatory authorities. Always remain vigilant and informed when making investment decisions!

Important Warning from InfoFinance Regarding Analystque


Costco Wholesale shares edged lower in early Tuesday trading after a top Wall Street analyst clipped his rating on the bulk discount retailer heading into its fourth quarter earnings report later in the week.Costco &nbsp;(COST) , one of the top-performing stocks in the retail sector this year, has added around $160 billion in market value over the past twelve months as its focus on aggressive pricing in a limited number of items, as well as increased efficiency in its higher-margin online division, has consistently added to bottom line gains.<img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/1_02bb42b1dc.webp" alt="1.webp">The group also unveiled its first membership fee increase in more than seven years over the summer under new finance chief&nbsp;Gary Millerchip, taking the price of its executive card to $125 per year.D.A. Davidson analyst Michael Baker said at the time of the increase that the move will likely add around $377 million in total revenues of the next two years and generate an annual profit boost of around $189 million.However, other changes brought by the group over the summer, including the scanning of membership cards at store entry points, may blunt sales gains over the three months ending in August, while the stock's impressive gains have given it "little room for error" with respect to near-term performance, according to Truist Securities analyst&nbsp;Scot Ciccarelli.'Little room for error'"The business remains strong and is gaining share across nearly all trade classes, with arguably the highest barriers to entry in retail," he said.&nbsp; "However, recent changes like scanning IDs on entry and packaging adjustments to their chickens could create some sales headwinds."Ciccarelli lowered his rating on Costco stock to 'hold' from 'buy', while keeping his $873 price target in place ahead of the group's fourth quarter earnings, which are slated for after the close of trading Thursday."Key catalysts are now in the rearview mirror, and the stock's current valuation leaves little room for error," Ciccarelli said."Costco is up around 60% in the last 12 months (multiple up by roughly 20 turns) versus the S&amp;P's 30%, and it’s now trading at about 54x forward [earnings per share], a multi-decade high," he said. "Therefore, we downgrade Costco and will look for a more attractive re-entry point."

Costco Wholesale shares edged lower in early Tuesday trading after a top Wall Street analyst clipped his rating on the bulk discount retailer heading into its fourth quarter earnings report later in the week.

Analyst revisits Costco stock price target, rating, ahead of earnings

Recently, InfoFinance has received numerous complaints from investors regarding fraudulent activities and scams associated with MHMarkets Vietnam. Despite promises of attractive returns and claims of being a reputable international trading platform, the reality tells a different story. Many accounts have been "wiped out" in a short period without any satisfactory explanation from the broker. In light of this situation, InfoFinance has issued an official warning, advising investors to be cautious and avoid MHMarkets to mitigate the risk of financial loss.<h1 style="text-align:justify;">Nearly 200 Million VND Vanishes from an MHMarkets Vietnam Account</h1>A victim, who wishes to remain anonymous for personal safety, shared their bitter experience with InfoFinance after being defrauded by MHMarkets Vietnam. The victim recounted being persuaded by an old classmate to invest in the Forex market through MHMarkets. The investment offer was enticing, promising extraordinarily high returns – the capital was expected to double in just 1.5 months. Trusting these promises and promotional claims that MHMarkets was a reputable international broker, the victim deposited nearly 200 million VND into a trading account.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/Thiet_ke_chua_co_ten_dcd568f0ba.png" alt="Thiết kế chưa có tên.png"></figure>Initially, MHMarkets executed trades with a profit-sharing model of 30% to the victim and 70% to the broker. However, within less than a month, the entire balance in the victim’s account mysteriously disappeared. Upon realizing this, the victim contacted the broker for an explanation and attempted to recover the lost funds, but all efforts proved futile. Currently, the victim is seeking assistance from authorities and the investment community, hoping to recover the lost money. This case serves as a harsh lesson for the individual and a warning to other investors about the hidden risks of engaging with unclear trading platforms.<h1 style="text-align:justify;">InfoFinance’s Warning: Be Wary of MHMarkets and Other Scam Tactics</h1>InfoFinance advises investors to be particularly cautious when dealing with brokers of dubious origins and credibility, such as MHMarkets. Experience has shown that engaging with unlicensed or non-transparent platforms can lead to significant risks, including total loss of assets. To safeguard their interests, investors should thoroughly verify the legality and reputation of a platform before making any investment decisions.InfoFinance emphasizes that no legal Forex or Broker licenses have ever been issued in St. Vincent and the Grenadines, a common registration location for many fraudulent brokers. This is a clear red flag regarding the transparency and trustworthiness of MHMarkets and similar trading platforms.<h1 style="text-align:justify;">How to File a Complaint Against Brokers on InfoFinance</h1>To help investors protect their rights, InfoFinance offers a transparent and straightforward process for reporting fraudulent brokers. Investors can file complaints through the following steps:<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/Screenshot_2024_09_23_at_23_55_26_bfe52f48dd.png" alt="Screenshot 2024-09-23 at 23.55.26.png"></figure><ol><li>Visit the official InfoFinance website at infofinance.com.</li><li>Select the "Report Broker" section on the homepage.</li><li>Click "Send Report" to initiate the complaint process about any issues encountered.</li></ol>Each complaint is handled by InfoFinance’s senior experts, who closely monitor and assess the situation. The experts will conduct direct inspections of the broker’s business registrations and evaluate their transparency. With a strict and legally grounded process, InfoFinance is committed to delivering justice for investors and ensuring market transparency.

Recently, InfoFinance has received numerous complaints from investors regarding fraudulent activities and scams associated with MHMarkets Vietnam. Despite promises of attractive returns and claims of being a reputable international trading platform, the reality tells a different story. Many accounts have been "wiped out" in a short period without any satisfactory explanation from the broker. In light of this situation, InfoFinance has issued an official warning, advising investors to be cautious and avoid MHMarkets to mitigate the risk of financial loss.

InfoFinance Warns Against MHMarkets: Exposing Fraudulent Practices

PT Barito Renewables Energy shares plunged by the daily limit for a second day after FTSE Russell said it would exclude the company from its indexes.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/86b04e5894d5eda0ecdea375899f5e8e_f4536eed5d.webp" alt="86b04e5894d5eda0ecdea375899f5e8e.webp"></figure>The shares fell 20%, bringing losses since Thursday to nearly 36%. The index compiler said the Indonesian power company will be deleted from its gauges a day after the anticipated entry date, citing “high shareholder concentration.”Barito in a filing late Sunday said there has been no significant changes to its shareholders’ stakes since its October 2023 listing. Indonesia’s second-biggest company by market value had published its shareholding information, including that of its four stakeholders, to the bourse during its initial public offering, it said. The four shareholders held around 96% stake as of Sept. 19, compared with 97% stated in the company’s IPO prospectus.FTSE had planned to add the geothermal power producer to its Global All Cap Index series and associated gauges on Monday. The stock will be deleted starting Tuesday, according to FTSE’s statement last week.Barito surged more than 1,400% since its IPO to a record high reached earlier this month. The shares went on a wild ride earlier this year following its addition to a stock exchange watchlist for volatile and troubled companies.As much as 11.7% of its shares met the free float requirement as of Sept. 19, according to the statement, citing daily data from the Indonesia Central Securities Depository. “The company will continue to monitor compliance with the free float rules determined by the exchange,” Barito said.(Corrects to clarify details of shareholding and free float in third and sixth paragraphs, respectively)

PT Barito Renewables Energy shares plunged by the daily limit for a second day after FTSE Russell said it would exclude the company from its indexes.

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