1 day ago
During the September 8 episode of Mad Money, Jim Cramer turned his attention to Enbridge Inc. (NYSE:ENB), examining escalating geopolitical tensions. He commented:
As long as the war with Iran drags on, it's easy to recommend the refiners like a Valero or a Marathon. I don't see it ending any time soon, not with the US and Iran trading volleys this evening at islands and ships in the Strait. But how about a pipeline that moves about 30% of all crude produced in North America? Now, I'm talking about Enbridge which has a 5.5% yield. Also has a natural gas, you know, it transports 20% of the natural gas that's consumed in America. Okay, it's Canadian, but it's not caught up in the tariff fight because slapping tariffs on Canadian energy would be economic suicide for our country.
Cramer's focus on Enbridge Inc. (NYSE:ENB) highlights the structural dominance of its midstream network. The company operates as a significant transport network for North American energy, moving approximately 30% of all crude produced on the continent. Moreover, its vast utility and transmission network handles 20% of the natural gas consumed in the United States. The company's toll-road business model generates highly predictable cash flows, supporting an attractive dividend yield of roughly 5.6%. For income-focused investors, the combination of essential operational volume and reliable capital return creates a defensive cushion during volatile market cycles.
The company's defensive moat goes into cross-border trade and regional security. As Cramer pointed out, imposing punitive tariffs on Canadian energy imports would amount to severe economic self-harm for the United States, given the deep interdependence of North American energy grids.
Even with steady toll revenues, Enbridge Inc. (NYSE:ENB) carries a heavy debt load that comes with the territory of running massive pipeline networks, with long-term debt sitting at approximately C$104 billion. Because building and maintaining energy infrastructure requires heavy borrowing, higher interest rates hit financing costs, which can occasionally weigh on income-seeking investors.
#enbridge #natural #Iran #America
As long as the war with Iran drags on, it's easy to recommend the refiners like a Valero or a Marathon. I don't see it ending any time soon, not with the US and Iran trading volleys this evening at islands and ships in the Strait. But how about a pipeline that moves about 30% of all crude produced in North America? Now, I'm talking about Enbridge which has a 5.5% yield. Also has a natural gas, you know, it transports 20% of the natural gas that's consumed in America. Okay, it's Canadian, but it's not caught up in the tariff fight because slapping tariffs on Canadian energy would be economic suicide for our country.
Cramer's focus on Enbridge Inc. (NYSE:ENB) highlights the structural dominance of its midstream network. The company operates as a significant transport network for North American energy, moving approximately 30% of all crude produced on the continent. Moreover, its vast utility and transmission network handles 20% of the natural gas consumed in the United States. The company's toll-road business model generates highly predictable cash flows, supporting an attractive dividend yield of roughly 5.6%. For income-focused investors, the combination of essential operational volume and reliable capital return creates a defensive cushion during volatile market cycles.
The company's defensive moat goes into cross-border trade and regional security. As Cramer pointed out, imposing punitive tariffs on Canadian energy imports would amount to severe economic self-harm for the United States, given the deep interdependence of North American energy grids.
Even with steady toll revenues, Enbridge Inc. (NYSE:ENB) carries a heavy debt load that comes with the territory of running massive pipeline networks, with long-term debt sitting at approximately C$104 billion. Because building and maintaining energy infrastructure requires heavy borrowing, higher interest rates hit financing costs, which can occasionally weigh on income-seeking investors.
#enbridge #natural #Iran #America
1 day ago
Americans ages 65–74 have a median net worth of $410,000, the highest of any age group.
About 76% own a home and 51% have a retirement account, making home equity and savings the biggest drivers of wealth at this stage.
Debt is less common but still present, with roughly 65% carrying some debt and about a third holding a credit card balance.
Americans ages 65–74 are typically in retirement or just a few years removed from full-time work, making this a key moment to ******* s how wealth looks once paychecks have largely stopped. For many households, this stage represents the high-water mark for net worth before savings begin to be drawn down.
According to the Federal Reserve's latest Survey of Consumer Finances, the median net worth for households in this age range is $410,000, the highest of any age group in the U.S.
#americans #highest
About 76% own a home and 51% have a retirement account, making home equity and savings the biggest drivers of wealth at this stage.
Debt is less common but still present, with roughly 65% carrying some debt and about a third holding a credit card balance.
Americans ages 65–74 are typically in retirement or just a few years removed from full-time work, making this a key moment to ******* s how wealth looks once paychecks have largely stopped. For many households, this stage represents the high-water mark for net worth before savings begin to be drawn down.
According to the Federal Reserve's latest Survey of Consumer Finances, the median net worth for households in this age range is $410,000, the highest of any age group in the U.S.
#americans #highest
1 day ago
Lululemon Athletica Inc. (NASDAQ:LULU) recently issued its second guidance cut of the year, and investors responded immediately by sending shares down roughly 18%. That selloff came despite an EPS beat, but the headline result was heavily supported by a tariff refund rather than underlying business strength. Brand sentiment, traffic, and leggings sales are all weakening across the company's two largest markets. The key issue for investors is no longer whether the quarter was weak, but whether the stock's low valuation and new CEO can provide the catalyst for a meaningful recovery.
Lululemon shares dropped 18% after the company lowered its full-year guidance for the second time this year. Revenue is now projected to range from $10.35 billion to $10.5 billion, while EPS guidance was reduced to $9.48 to $9.73. Both represent sharp reductions from its earlier guidance ranges. Second-quarter revenue was particularly weak, falling 4% to $2.4 billion and coming in below consensus estimates, while comparable sales dropped 9%, or 10% on a constant-dollar basis. According to the company, negative commentary had affected traffic in both the U.S. and China, while leggings sales slowed more than expected. Although reported EPS beat estimates, nearly all of that upside came from an $0.86 per share tariff refund. For the third quarter, management expects revenue to decline another 10% to 11%.
Lululemon still has several financial advantages that could support the business through its current slowdown. The company has no outstanding borrowings and maintains $1.4 billion in cash. First-half operating cash flow climbed to $589 million, more than double the prior year. Inventory per unit also declined roughly 7% year over year, reducing the risk of a margin-damaging clearance event. Meanwhile, shares have fallen over 50% year-to-date and now trade at a historically depressed valuation, potentially creating an out-of-favor-setup for investors. At the same time, management continued its buyback program, repurchasing $330 million worth of shares during the quarter.
The weakness in traffic and leggings sales cannot be ignored, and both remain serious concerns. However, the company has a debt-free balance sheet, stronger cash generation, and a valuation that already reflects much of the recent bad news. That gives Lululemon room to prove that its current struggles are mainly execution-related rather than signs of a structural decline.
#year #shares #company
Lululemon shares dropped 18% after the company lowered its full-year guidance for the second time this year. Revenue is now projected to range from $10.35 billion to $10.5 billion, while EPS guidance was reduced to $9.48 to $9.73. Both represent sharp reductions from its earlier guidance ranges. Second-quarter revenue was particularly weak, falling 4% to $2.4 billion and coming in below consensus estimates, while comparable sales dropped 9%, or 10% on a constant-dollar basis. According to the company, negative commentary had affected traffic in both the U.S. and China, while leggings sales slowed more than expected. Although reported EPS beat estimates, nearly all of that upside came from an $0.86 per share tariff refund. For the third quarter, management expects revenue to decline another 10% to 11%.
Lululemon still has several financial advantages that could support the business through its current slowdown. The company has no outstanding borrowings and maintains $1.4 billion in cash. First-half operating cash flow climbed to $589 million, more than double the prior year. Inventory per unit also declined roughly 7% year over year, reducing the risk of a margin-damaging clearance event. Meanwhile, shares have fallen over 50% year-to-date and now trade at a historically depressed valuation, potentially creating an out-of-favor-setup for investors. At the same time, management continued its buyback program, repurchasing $330 million worth of shares during the quarter.
The weakness in traffic and leggings sales cannot be ignored, and both remain serious concerns. However, the company has a debt-free balance sheet, stronger cash generation, and a valuation that already reflects much of the recent bad news. That gives Lululemon room to prove that its current struggles are mainly execution-related rather than signs of a structural decline.
#year #shares #company
1 day ago
Investors seeking exposure to artificial intelligence infrastructure must weigh the explosive growth of Astera Labs Inc (NASDAQ:ALAB) against the established scale and diverse portfolio of Marvell Technology Inc(NASDAQ:MRVL) to determine the better buy.
Both companies focus on the plumbing of the digital world, ensuring data moves quickly between processors and memory. While Astera Labs focuses on specialized connectivity for AI racks, Marvell offers a broader range of networking, storage, and custom compute solutions. This comparison explores which strategy offers more potential for long-term investors.
Astera Labs designs connectivity solutions that integrate various protocols to support rack-scale AI infrastructure, a high-growth niche among semiconductor stocks. The company serves major hyperscalers and equipment manufacturers who need to overcome data bottlenecks in massive data centers, though its revenue is highly concentrated. In 2025, one end customer -- Amazon.com Inc (NASDAQ:AMZN) -- accounted for over 70% of revenue, which adds a significant layer of risk to the business model.
According to its latest annual report, filed for the fiscal year ended Dec. 31, 2025, revenue reached close to $853 million, representing a significant jump of 115% compared with the prior fiscal year. This growth trajectory helped the company transition to a net income of just over $219 million after recording losses in the previous two years. The net margin for the latest year was close to 26%.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, meaning the company carries no debt relative to its shareholder equity, while the so-called current ratio was 10.2x. Free cash flow for the period reached nearly $282 million. Note that stock-based compensation (SBC) represented roughly 50.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
#company #million
Both companies focus on the plumbing of the digital world, ensuring data moves quickly between processors and memory. While Astera Labs focuses on specialized connectivity for AI racks, Marvell offers a broader range of networking, storage, and custom compute solutions. This comparison explores which strategy offers more potential for long-term investors.
Astera Labs designs connectivity solutions that integrate various protocols to support rack-scale AI infrastructure, a high-growth niche among semiconductor stocks. The company serves major hyperscalers and equipment manufacturers who need to overcome data bottlenecks in massive data centers, though its revenue is highly concentrated. In 2025, one end customer -- Amazon.com Inc (NASDAQ:AMZN) -- accounted for over 70% of revenue, which adds a significant layer of risk to the business model.
According to its latest annual report, filed for the fiscal year ended Dec. 31, 2025, revenue reached close to $853 million, representing a significant jump of 115% compared with the prior fiscal year. This growth trajectory helped the company transition to a net income of just over $219 million after recording losses in the previous two years. The net margin for the latest year was close to 26%.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, meaning the company carries no debt relative to its shareholder equity, while the so-called current ratio was 10.2x. Free cash flow for the period reached nearly $282 million. Note that stock-based compensation (SBC) represented roughly 50.1% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
#company #million
1 day ago
High-performance computing is currently undergoing a massive generational shift. Deciding between Astera Labs Inc (NASDAQ:ALAB) and Applied Materials Inc (NASDAQ:AMAT) means choosing between a fast-growing connectivity specialist and an established ******* an of manufacturing equipment.
Astera Labs focuses on the internal plumbing of data centers, providing chips that move data between processors. Applied Materials builds the actual machines that make those chips possible. While both benefit from artificial intelligence, they occupy very different rungs on the technology ladder.
Astera Labs sells high-speed connectivity hardware and software designed for AI-heavy data centers. Its primary products include PCIe and Ethernet solutions that help hyperscale cloud providers manage massive data workloads. In its latest annual report, filed for the period ending December 31, 2025, the company noted that one end customer represented more than 70% of its revenue. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $853 million, which is an increase of approximately 115% over the prior year. This growth resulted in a net income of roughly $219 million, compared to a net loss in the previous fiscal year. The company recorded a net margin of close to 26% during this period. Such expansion is notable among semiconductor stocks catering to the cloud market.
The company carries no debt, resulting in a debt-to-equity ratio of 0.0x. This metric compares total debt to shareholder equity to show how a firm finances its ******* ets. As of its December 2025 balance sheet, the so-called current ratio was nearly 10.2x, indicating a strong ability to cover short-term debts. Free cash flow was roughly $282 million. Note that stock-based compensation represented just about 50% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
#million #flow #NASDAQ
Astera Labs focuses on the internal plumbing of data centers, providing chips that move data between processors. Applied Materials builds the actual machines that make those chips possible. While both benefit from artificial intelligence, they occupy very different rungs on the technology ladder.
Astera Labs sells high-speed connectivity hardware and software designed for AI-heavy data centers. Its primary products include PCIe and Ethernet solutions that help hyperscale cloud providers manage massive data workloads. In its latest annual report, filed for the period ending December 31, 2025, the company noted that one end customer represented more than 70% of its revenue. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $853 million, which is an increase of approximately 115% over the prior year. This growth resulted in a net income of roughly $219 million, compared to a net loss in the previous fiscal year. The company recorded a net margin of close to 26% during this period. Such expansion is notable among semiconductor stocks catering to the cloud market.
The company carries no debt, resulting in a debt-to-equity ratio of 0.0x. This metric compares total debt to shareholder equity to show how a firm finances its ******* ets. As of its December 2025 balance sheet, the so-called current ratio was nearly 10.2x, indicating a strong ability to cover short-term debts. Free cash flow was roughly $282 million. Note that stock-based compensation represented just about 50% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
#million #flow #NASDAQ
1 day ago
SCHD returned 28.99% through Sept. 1 versus 12.31% for SPY, despite owning none of the Magnificent Seven stocks that dominated market performance in previous years.
SCHD's dividend methodology doubles as a quality and value screen, ranking companies using free cash flow relative to debt, return on equity, dividend yield, and five-year dividend growth.
With only 8% overlap by weight with SPY, a 0.06% expense ratio, and a 3.15% 30-day SEC yield, SCHD provides a relatively inexpensive way to diversify away from the S&P 500's growth and technology concentration.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut.
Investors have spent much of 2026 talking about a potential style rotation. Large-cap growth stocks are still positive year to date, but their leadership has weakened as small-cap and, increasingly, value stocks have taken over more of the market's momentum.
#Dividend #market
SCHD's dividend methodology doubles as a quality and value screen, ranking companies using free cash flow relative to debt, return on equity, dividend yield, and five-year dividend growth.
With only 8% overlap by weight with SPY, a 0.06% expense ratio, and a 3.15% 30-day SEC yield, SCHD provides a relatively inexpensive way to diversify away from the S&P 500's growth and technology concentration.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut.
Investors have spent much of 2026 talking about a potential style rotation. Large-cap growth stocks are still positive year to date, but their leadership has weakened as small-cap and, increasingly, value stocks have taken over more of the market's momentum.
#Dividend #market
1 day ago
As artificial intelligence matures, investors must decide between the high-growth niche players and the foundational giants. Choosing between Astera Labs Inc (NASDAQ:ALAB) and Taiwan Semiconductor Manufacturing Co (NYSE:TSM) involves weighing explosive potential against established dominance.
Astera Labs provides the critical connectivity infrastructure that allows AI chips to communicate within data centers. Meanwhile, Taiwan Semiconductor Manufacturing operates as the world's largest dedicated chip foundry, producing the actual processors for almost every major tech firm. Both companies are central to the future of semiconductor stocks.
Astera Labs specializes in connectivity solutions designed to remove bottlenecks in high-performance data centers. The company sells hardware and software that helps AI accelerators, such as those made by major chip designers, communicate efficiently across servers. Its customer base is highly concentrated, primarily consisting of the largest cloud providers and system manufacturers. In 2025, one end customer accounted for over 70% of total revenue. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached more than $852.5 million, representing an impressive increase of roughly 115% compared to the prior year. This rapid growth helped the company pivot from a loss in previous years to a net income of approximately $219 million. The net margin, which measures how much of each dollar of sales remains as profit, stood at nearly 26%. This trajectory highlights the surging demand for the specialized connectivity chips required for large-scale AI deployments.
As of its December 2025 balance sheet, the company reported a debt-to-equity ratio of 0.0x, indicating it holds no debt relative to its shareholder equity. Its so-called current ratio, which compares short-term ******* ets to short-term liabilities, was a robust 10.2x. Free cash flow, or the cash left over after paying for operations and equipment, was approximately $282 million. Note that stock-based compensation represented roughly 50% of operating cash flow, which inflates reported cash generation since this is a non-cash expense added back in the cash flow statement.
#company
Astera Labs provides the critical connectivity infrastructure that allows AI chips to communicate within data centers. Meanwhile, Taiwan Semiconductor Manufacturing operates as the world's largest dedicated chip foundry, producing the actual processors for almost every major tech firm. Both companies are central to the future of semiconductor stocks.
Astera Labs specializes in connectivity solutions designed to remove bottlenecks in high-performance data centers. The company sells hardware and software that helps AI accelerators, such as those made by major chip designers, communicate efficiently across servers. Its customer base is highly concentrated, primarily consisting of the largest cloud providers and system manufacturers. In 2025, one end customer accounted for over 70% of total revenue. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached more than $852.5 million, representing an impressive increase of roughly 115% compared to the prior year. This rapid growth helped the company pivot from a loss in previous years to a net income of approximately $219 million. The net margin, which measures how much of each dollar of sales remains as profit, stood at nearly 26%. This trajectory highlights the surging demand for the specialized connectivity chips required for large-scale AI deployments.
As of its December 2025 balance sheet, the company reported a debt-to-equity ratio of 0.0x, indicating it holds no debt relative to its shareholder equity. Its so-called current ratio, which compares short-term ******* ets to short-term liabilities, was a robust 10.2x. Free cash flow, or the cash left over after paying for operations and equipment, was approximately $282 million. Note that stock-based compensation represented roughly 50% of operating cash flow, which inflates reported cash generation since this is a non-cash expense added back in the cash flow statement.
#company
1 day ago
The Cooper Companies Inc. (NASDAQ:COO), a leading medical device company, announced its third quarter fiscal 2026 results on September 9. Topline went up 1% to $1.066 billion in comparison with the same quarter last year, which also included 1% organic growth. The company posted quarterly adjusted diluted EPS of $1.15, which represented a 4% jump from Q3 FY25. During the quarter, $339.1 million was spent on repurchasing around 4.9 million of the company's common shares. This leaves management with $1.5 billion of repurchase capacity, which remains available after the Board had raised its buyback authorization from $2 billion to $3 billion.
The quarter featured several encouraging highlights. These include earnings that exceeded projections, notable growth across the fertility segment within CooperSurgical, record free cash flow generation, and a major tax resolution in the company's favor.
GAAP gross margin went up from 65% in Q3 FY25 to 67% during the recent quarter, largely reflecting the comparison against fiscal 2025 inventory write-downs tied to a CooperSurgical product line exit. Adjusted operating margin improved by 30 basis points to 26%, supported by cost discipline and productivity gains, though partly offset by currency headwinds.
Interest expense fell to $21.5 million from $25.4 million a year prior, reflecting lower rates and reduced average debt. Free cash flow surged 66% to $273.0 million, driven by $341.7 million in operating cash flow less $68.7 million in capital spending.
Due to unfavorable currency movements and rising manufacturing costs, the Q3 gross margin settled at 67% on adjusted basis. This was a 60 basis point drop from Q3 FY25. Certain areas of the business grant caution, such as the CooperVision segment. It generated flat organic growth amid notable weakness across the Asia Pacific and Americas regions.
#billion #cash
The quarter featured several encouraging highlights. These include earnings that exceeded projections, notable growth across the fertility segment within CooperSurgical, record free cash flow generation, and a major tax resolution in the company's favor.
GAAP gross margin went up from 65% in Q3 FY25 to 67% during the recent quarter, largely reflecting the comparison against fiscal 2025 inventory write-downs tied to a CooperSurgical product line exit. Adjusted operating margin improved by 30 basis points to 26%, supported by cost discipline and productivity gains, though partly offset by currency headwinds.
Interest expense fell to $21.5 million from $25.4 million a year prior, reflecting lower rates and reduced average debt. Free cash flow surged 66% to $273.0 million, driven by $341.7 million in operating cash flow less $68.7 million in capital spending.
Due to unfavorable currency movements and rising manufacturing costs, the Q3 gross margin settled at 67% on adjusted basis. This was a 60 basis point drop from Q3 FY25. Certain areas of the business grant caution, such as the CooperVision segment. It generated flat organic growth amid notable weakness across the Asia Pacific and Americas regions.
#billion #cash
1 day ago
Consumers just can't catch a break. According to Friday's Consumer Price Index report from the Bureau of Labor Statistics (BLS), inflation is holding steady as surging gas prices empty shoppers' wallets.
But that's not all. Year-over-year data about household debt paints a dim picture of the state of consumer finances. However, this week's home sales report offers a silver lining, showing it might be a good time to buy a house.
More from WWD
Back-to-School Resale Meets Its Toughest Customer: Children
Cautious Consumers Seen Spending More this Holiday Shopping Season
#consumers #report #price
But that's not all. Year-over-year data about household debt paints a dim picture of the state of consumer finances. However, this week's home sales report offers a silver lining, showing it might be a good time to buy a house.
More from WWD
Back-to-School Resale Meets Its Toughest Customer: Children
Cautious Consumers Seen Spending More this Holiday Shopping Season
#consumers #report #price
1 day ago
Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.
Debt consolidation combines multiple debts into one loan, usually at a lower interest rate, and you repay the full balance. Debt settlement involves negotiating with creditors to pay less than you owe, but it damages your credit and isn't guaranteed to work.
Understanding how both options work can help you determine which would better fit your financial situation.
Debt consolidation involves replacing your current debts with a new loan or line of credit, ideally with a better interest rate. If you consolidate multiple debts, you can also simplify repayment into a single monthly payment.
There are multiple ways to consolidate debt, including:
#interest
Debt consolidation combines multiple debts into one loan, usually at a lower interest rate, and you repay the full balance. Debt settlement involves negotiating with creditors to pay less than you owe, but it damages your credit and isn't guaranteed to work.
Understanding how both options work can help you determine which would better fit your financial situation.
Debt consolidation involves replacing your current debts with a new loan or line of credit, ideally with a better interest rate. If you consolidate multiple debts, you can also simplify repayment into a single monthly payment.
There are multiple ways to consolidate debt, including:
#interest
1 day ago
Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.
The Treasury Department's $6 billion bond buyback, an effort to stem rising yields, fell far short of expectations Thursday. The repurchase of government debt led to Treasury yields continuing to climb, with the 10-year note topping a three-year high. Potential home buyers and refinancers hoping for some mortgage rate relief instead saw rates creep toward, and in some reports, top 7%.
Yields were mixed Friday, with the 10-year Treasury remaining just below 5%.
In an interview Thursday evening with conservative strategist Steve Bannon on "War Room," Treasury Secretary Scott Bessent disputed the talk that the buyback program failed.
"This whole nonsense today that our operation didn't work — well, our operation didn't work, because we only had $10 billion of offers for our buyback program," Bessent said. "Normally, we get $20 billion, and we only buy the bonds back cheap. People seem to want to keep their long-term bonds, because we only had half as many offers. So, it's a bunch of noise, and in my career, I made money ignoring the noise."
#yields #offers #year
The Treasury Department's $6 billion bond buyback, an effort to stem rising yields, fell far short of expectations Thursday. The repurchase of government debt led to Treasury yields continuing to climb, with the 10-year note topping a three-year high. Potential home buyers and refinancers hoping for some mortgage rate relief instead saw rates creep toward, and in some reports, top 7%.
Yields were mixed Friday, with the 10-year Treasury remaining just below 5%.
In an interview Thursday evening with conservative strategist Steve Bannon on "War Room," Treasury Secretary Scott Bessent disputed the talk that the buyback program failed.
"This whole nonsense today that our operation didn't work — well, our operation didn't work, because we only had $10 billion of offers for our buyback program," Bessent said. "Normally, we get $20 billion, and we only buy the bonds back cheap. People seem to want to keep their long-term bonds, because we only had half as many offers. So, it's a bunch of noise, and in my career, I made money ignoring the noise."
#yields #offers #year
1 day ago
On September 10, Piper Sandler **** yst Bill Carcache initiated coverage of Q2 Holdings, Inc. (NYSE:QTWO), giving the stock an Overweight rating and setting the price target at $82.
The research firm started coverage on companies in the payments and consumer finance group and named Q2 Holdings, Inc. (NYSE:QTWO) as its preferred name in the sector.
According to Piper Sandler, the company offers the "clearest combination" of subscription revenue growth, visibility into annual recurring revenue, and improving free cash flow conversion. The firm also highlighted the company's growing margins and debt-free balance sheet. Piper Sandler said these factors support what it sees as the clearest path toward durable growth among the payments and consumer finance group.
Q2 Holdings, Inc. (NYSE:QTWO) delivered strong financial performance in Q2 2026. The company reported revenue of $219.8 million, an increase of 13% year-over-year and 2% sequentially. GAAP gross margin improved to 59.2% from 53.6% in the prior-year quarter, while GAAP net income rose to $29.9 million from $11.8 million.
Adjusted EBITDA reached a record $62.8 million, up 37% year-over-year. The company said it delivered another quarter of consistent execution, with strong bookings across its solutions.
#year #NYSE #revenue
The research firm started coverage on companies in the payments and consumer finance group and named Q2 Holdings, Inc. (NYSE:QTWO) as its preferred name in the sector.
According to Piper Sandler, the company offers the "clearest combination" of subscription revenue growth, visibility into annual recurring revenue, and improving free cash flow conversion. The firm also highlighted the company's growing margins and debt-free balance sheet. Piper Sandler said these factors support what it sees as the clearest path toward durable growth among the payments and consumer finance group.
Q2 Holdings, Inc. (NYSE:QTWO) delivered strong financial performance in Q2 2026. The company reported revenue of $219.8 million, an increase of 13% year-over-year and 2% sequentially. GAAP gross margin improved to 59.2% from 53.6% in the prior-year quarter, while GAAP net income rose to $29.9 million from $11.8 million.
Adjusted EBITDA reached a record $62.8 million, up 37% year-over-year. The company said it delivered another quarter of consistent execution, with strong bookings across its solutions.
#year #NYSE #revenue
2 days ago
On September 3, Genesco (NYSE:GCO) reported a second quarter that should not have worked on paper. Revenue fell 3% to $530 million, yet the company nearly halved its adjusted operating loss and raised full-year earnings guidance to the top end of its range. That combination, shrinking sales alongside expanding profit, is the footwear-first strategy showing up in real numbers. Every one of the company's three brands beat internal expectations, and management says the toughest sales pressure ahead is coming from a deliberate choice rather than a weakening business.
Journeys, the company's teen-focused chain, delivered its eighth consecutive quarter of positive comparable sales, up 2%, even while lapping strong growth from a year earlier. The more interesting story sits underneath that number. The Journeys 4.0 store format, a redesigned concept built around a more elevated ***** ortment, is generating a sales lift of 25% or more wherever it opens, and the company expects roughly 180 locations, about a fifth of its fleet, running that format by year-end. That rollout, combined with fleet optimization and more efficient use of selling staff, handed Journeys 180 basis points of expense leverage in the quarter. Comparable sales kept accelerating into August, marking Journeys' ninth straight month of positive comps and a mid-single-digit gain during the back-to-school peak.
Johnston & Murphy is running its own streak, with comparable sales up 4% in its third consecutive positive quarter, helped by a newly extended, multiyear partnership with Peyton Manning and a broader shift in menswear toward more refined, put-together dressing. Companywide, adjusted gross margin expanded 140 basis points to 47.2%, and the adjusted operating loss narrowed to $8 million from $14 million a year ago. Genesco also collected $22.5 million in tariff refunds during the quarter and cut total debt to $15.8 million from $71 million a year earlier, giving a new CFO and a new Schuh president a far healthier balance sheet to work with as they settle into their roles.
The drag comes almost entirely from Schuh, Genesco's UK chain, where comparable sales fell 9% as management deliberately pulled back on discounting to protect margin. Executives were blunt about the cost of that choice. CEO Mimi Vaughn said "the UK consumer market remains challenged and price sensitive," and the Schuh turnaround is expected to take longer than the one already underway at Journeys. That pressure is now baked into guidance. Full-year total sales are expected to fall about 2%, worse than the prior forecast of down 1% to flat, with management incorporating more back-half sales pressure than it originally planned for given how promotional the UK footwear market has become.
#comparable #schuh #management #pressure
Journeys, the company's teen-focused chain, delivered its eighth consecutive quarter of positive comparable sales, up 2%, even while lapping strong growth from a year earlier. The more interesting story sits underneath that number. The Journeys 4.0 store format, a redesigned concept built around a more elevated ***** ortment, is generating a sales lift of 25% or more wherever it opens, and the company expects roughly 180 locations, about a fifth of its fleet, running that format by year-end. That rollout, combined with fleet optimization and more efficient use of selling staff, handed Journeys 180 basis points of expense leverage in the quarter. Comparable sales kept accelerating into August, marking Journeys' ninth straight month of positive comps and a mid-single-digit gain during the back-to-school peak.
Johnston & Murphy is running its own streak, with comparable sales up 4% in its third consecutive positive quarter, helped by a newly extended, multiyear partnership with Peyton Manning and a broader shift in menswear toward more refined, put-together dressing. Companywide, adjusted gross margin expanded 140 basis points to 47.2%, and the adjusted operating loss narrowed to $8 million from $14 million a year ago. Genesco also collected $22.5 million in tariff refunds during the quarter and cut total debt to $15.8 million from $71 million a year earlier, giving a new CFO and a new Schuh president a far healthier balance sheet to work with as they settle into their roles.
The drag comes almost entirely from Schuh, Genesco's UK chain, where comparable sales fell 9% as management deliberately pulled back on discounting to protect margin. Executives were blunt about the cost of that choice. CEO Mimi Vaughn said "the UK consumer market remains challenged and price sensitive," and the Schuh turnaround is expected to take longer than the one already underway at Journeys. That pressure is now baked into guidance. Full-year total sales are expected to fall about 2%, worse than the prior forecast of down 1% to flat, with management incorporating more back-half sales pressure than it originally planned for given how promotional the UK footwear market has become.
#comparable #schuh #management #pressure
2 days ago
Mexico's government is slashing financial ******* istance for the state energy major by as much as 70% despite Pemex's continued struggle to pay down debt and boost production. The decision rests on expectations that the company will benefit from the oil and gas price rally spurred by the U.S. and Israeli war against Iran.
Per a Bloomberg report from this week, the government of Mexico sees Pemex posting a rare cash surplus of some 95 billion pesos, or around $5.63 billion, as a result of the oil price rally. Based on those expectations, the Scheinbaum government stipulated financial help of just 81 billion pesos for the company in next year's budget, equivalent to some $4.8 billion. This was down by 70% from this year.
"We said that by 2027, support for Pemex would be very limited, and that's indeed the case," President Sheinbaum told media this week. "Pemex now receives very little support from the Mexican government, and its own finances will sustain its development."
Mexico's energy major is the most indebted company in the world, with a load of some $105 billion as of mid-2025, of which some $20 billion is in unpaid bills to suppliers. Since then, the company has managed to reduce the debt pile to some $79 billion as of the end of the first quarter of this year. The company said in a news release at the time that this was the lowest its debt has been since 2014.
Meanwhile, however, boosting refining output has turned out to be a challenge, and issues with crude quality—including high water content—have alienated key buyers over the past couple of years. The previous administration of Mexico focused on supporting the company by turning it back into a monopoly on the Mexican energy market. The Scheinbaum government, on the other hand, moved to open up the Mexican oil industry to other players as well, launching a new contract framework for joint ventures, the so-called mixed contracts. In mixed development allocations, Pemex can enter into an agreement with one or more private firms.
#PEMEX #government #scheinbaum #since
Per a Bloomberg report from this week, the government of Mexico sees Pemex posting a rare cash surplus of some 95 billion pesos, or around $5.63 billion, as a result of the oil price rally. Based on those expectations, the Scheinbaum government stipulated financial help of just 81 billion pesos for the company in next year's budget, equivalent to some $4.8 billion. This was down by 70% from this year.
"We said that by 2027, support for Pemex would be very limited, and that's indeed the case," President Sheinbaum told media this week. "Pemex now receives very little support from the Mexican government, and its own finances will sustain its development."
Mexico's energy major is the most indebted company in the world, with a load of some $105 billion as of mid-2025, of which some $20 billion is in unpaid bills to suppliers. Since then, the company has managed to reduce the debt pile to some $79 billion as of the end of the first quarter of this year. The company said in a news release at the time that this was the lowest its debt has been since 2014.
Meanwhile, however, boosting refining output has turned out to be a challenge, and issues with crude quality—including high water content—have alienated key buyers over the past couple of years. The previous administration of Mexico focused on supporting the company by turning it back into a monopoly on the Mexican energy market. The Scheinbaum government, on the other hand, moved to open up the Mexican oil industry to other players as well, launching a new contract framework for joint ventures, the so-called mixed contracts. In mixed development allocations, Pemex can enter into an agreement with one or more private firms.
#PEMEX #government #scheinbaum #since
2 days ago
Horizon Technology Finance Corp., an affiliate of Monroe Capital, on September 10 said that the RoHo Capital Opportunity Fund LLC, a joint venture formed by Horizon and CR Financial Holdings, Inc., the holding company for Roth Capital Partners, LLC, has provided a $20-million senior credit facility to NeoVolta, Inc., with the ability to increase the facility to $30 million upon mutual agreement. An initial $20 million was funded at closing to support NeoVolta's continued growth.NeoVolta is an energy technology company focused on developing and manufacturing domestic battery energy storage systems (BESS). Together with its joint venture partner LONGi, NeoVolta is developing a 210,600-square-foot manufacturing facility in Pendergrass, Georgia, to produce BESS systems designed to meet U.S. domestic content and supply-chain requirements. The facility is expected to have an initial annual production capacity of up to 2 GWh, with the potential to scale to 8 GWh over time."Providing growth capital to innovative companies operating in attractive, high-growth markets is a core focus of RoHo's investment strategy," said Paul Seitz, chief investment officer of Horizon. "Formed by Horizon and Roth Capital, RoHo pairs Horizon's venture lending and structuring expertise with Roth's deep public markets relationships to deliver flexible growth capital to small- and micro-cap public companies. We are pleased to support NeoVolta's growth plans with a tailored financing solution and look forward to continuing to deploy capital through RoHo in support of innovative public companies pursuing significant market opportunities.""Horizon and Roth Capital bring valuable experience and a collaborative approach as we advance NeoVolta's domestic battery energy storage systems manufacturing platform," said Ardes Johnson, CEO of NeoVolta. "As we ramp our Georgia facility and pursue larger commercial and utility-scale opportunities, this relationship supports our ability to execute on our long-term growth strategy."Horizon Technology Finance Corp. is a specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio's return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S.Monroe Capital is a premier ****** et management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity.CR Financial Holdings, Inc., is a private hol
2 days ago
Consolidated Edison Company of New York, Inc., the regulated utility subsidiary of Consolidated Edison, Inc. (NYSE:ED), joined New York regulatory staff and other parties in filing a proposed three-year steam-rate plan covering November 2026 through October 2029. Approval from the New York State Public Service Commission remains required.
The proposal includes headline base-rate changes of $13 million, $42 million and $39 million over the three rate years. A bill-shaping mechanism would instead implement corresponding base-rate increases of $26.6 million, $27.5 million and $28.5 million, producing an approximately 3.5% total customer-bill effect each year. Any revenue shortfall caused by delayed billing after the proposed November 1 effective date would be collected through a surcharge.
For Consolidated Edison, Inc. (NYSE:ED), the attraction is a visible investment and recovery framework. The trade-off is a 9.5% authorized return on common equity and limited room before earnings sharing begins.
The settlement supports $396 million of steam capital spending over three years, comprising $143 million, $127 million, and $126 million annually. The average rate base is projected to increase from $2.118 billion in the first rate year to $2.234 billion in the second and $2.311 billion in the third. That represents approximately 9.1% ***** ulative growth from the first year to the third, providing a larger base on which Consolidated Edison, Inc. (NYSE:ED) can earn its authorized return.
The multiyear structure also improves planning. Consolidated Edison, Inc. (NYSE:ED) would know the principal revenue, capital, and financing ***** umptions through October 2029 rather than returning immediately to a full rate proceeding. The proposed after-tax weighted average cost of capital rises from 7.07% to 7.19% across the plan, reflecting higher ***** umed long-term debt costs.
#million #consolidated #year #three
The proposal includes headline base-rate changes of $13 million, $42 million and $39 million over the three rate years. A bill-shaping mechanism would instead implement corresponding base-rate increases of $26.6 million, $27.5 million and $28.5 million, producing an approximately 3.5% total customer-bill effect each year. Any revenue shortfall caused by delayed billing after the proposed November 1 effective date would be collected through a surcharge.
For Consolidated Edison, Inc. (NYSE:ED), the attraction is a visible investment and recovery framework. The trade-off is a 9.5% authorized return on common equity and limited room before earnings sharing begins.
The settlement supports $396 million of steam capital spending over three years, comprising $143 million, $127 million, and $126 million annually. The average rate base is projected to increase from $2.118 billion in the first rate year to $2.234 billion in the second and $2.311 billion in the third. That represents approximately 9.1% ***** ulative growth from the first year to the third, providing a larger base on which Consolidated Edison, Inc. (NYSE:ED) can earn its authorized return.
The multiyear structure also improves planning. Consolidated Edison, Inc. (NYSE:ED) would know the principal revenue, capital, and financing ***** umptions through October 2029 rather than returning immediately to a full rate proceeding. The proposed after-tax weighted average cost of capital rises from 7.07% to 7.19% across the plan, reflecting higher ***** umed long-term debt costs.
#million #consolidated #year #three
2 days ago
Intellia Therapeutics, Inc. (NASDAQ:NTLA) entered a five-year senior secured credit facility with OrbiMed for up to $400 million and drew $75 million at closing. The remaining $325 million depends on milestones or further lender agreement.
The facility bears interest at an annual rate equal to the greater of 3% or the one-month Secured Overnight Financing Rate, plus 6.15%, payable monthly. The formula sets a 9.15% minimum. Applying that floor to the initial borrowing produces approximately $6.9 million of article-calculated annual interest before commitment, administrative, undrawn-amount, and facility fees.
The financing arrives as Intellia Therapeutics, Inc. (NASDAQ:NTLA) prepares for a potential U.S. launch of lonvoguran ziclumeran, or lonvo-z, for hereditary angioedema. Intellia Therapeutics, Inc. (NASDAQ:NTLA) held $628.4 million of cash, cash equivalents, and marketable securities as of June 30, but reported a $106.6 million second-quarter net loss.
The staged structure gives Intellia Therapeutics, Inc. (NASDAQ:NTLA) capital without issuing equity at closing and avoids drawing the full amount before milestones that could support additional debt.
A second $75 million tranche becomes available at the option of Intellia Therapeutics, Inc. (NASDAQ:NTLA) if the FDA approves the biologics license application for lonvo-z before a specified date. Three further $40 million tranches depend on lonvo-z revenue targets, while another $30 million requires an equity-fundraising milestone. This links most committed borrowing capacity to regulatory and commercial progress.
#million #therapeutics #ntla #lonvo
The facility bears interest at an annual rate equal to the greater of 3% or the one-month Secured Overnight Financing Rate, plus 6.15%, payable monthly. The formula sets a 9.15% minimum. Applying that floor to the initial borrowing produces approximately $6.9 million of article-calculated annual interest before commitment, administrative, undrawn-amount, and facility fees.
The financing arrives as Intellia Therapeutics, Inc. (NASDAQ:NTLA) prepares for a potential U.S. launch of lonvoguran ziclumeran, or lonvo-z, for hereditary angioedema. Intellia Therapeutics, Inc. (NASDAQ:NTLA) held $628.4 million of cash, cash equivalents, and marketable securities as of June 30, but reported a $106.6 million second-quarter net loss.
The staged structure gives Intellia Therapeutics, Inc. (NASDAQ:NTLA) capital without issuing equity at closing and avoids drawing the full amount before milestones that could support additional debt.
A second $75 million tranche becomes available at the option of Intellia Therapeutics, Inc. (NASDAQ:NTLA) if the FDA approves the biologics license application for lonvo-z before a specified date. Three further $40 million tranches depend on lonvo-z revenue targets, while another $30 million requires an equity-fundraising milestone. This links most committed borrowing capacity to regulatory and commercial progress.
#million #therapeutics #ntla #lonvo
2 days ago
USA Rare Earth, Inc. (NASDAQ:USAR) announced on September 4 that it completed the Serra Verde acquisition one day earlier, paying $300 million in cash and issuing approximately 126.8 million common shares. The transaction adds Brazil's Pela Ema mine to Less Common Metals in the United Kingdom, the Stillwater, Oklahoma, magnet facility, and the Round Top project in Texas.
Serra Verde began production in January 2024 but is still completing optimization and commissioning. Stage 1 is expected to reach an annual run rate of approximately 4,000 metric tons of total rare-earth oxide, or TREO, by year-end 2026. Stage 2 construction targets average annual production of 6,400 metric tons, with commissioning expected to begin within 12 months.
Serra Verde had $425 million of principal outstanding under its U.S. International Development Finance Corporation loan at June 30. At closing, a $100 million tranche was extinguished after related warrants were exercised, leaving approximately $325 million of principal. The unaudited pro forma combined balance sheet reported a $304.1 million debt carrying value after discounts and issuance costs.
Serra Verde gives USA Rare Earth, Inc. (NASDAQ:USAR) a producing source of dysprosium, terbium, and other rare earths used in permanent magnets. Combining mining, metals, alloys, and magnet manufacturing could capture more of the value chain outside Asia.
The Phase 1 offtake agreement supports revenue visibility. It covers 100% of Pela Ema's Phase 1 products, subject to limited carve-outs, and includes escalating price floors annually. The counterparty is a special-purpose vehicle capitalized by the U.S. government and private investors. The arrangement provides contractual price protection, subject to the counterparty's performance.
#earth #approximately #NASDAQ #usar
Serra Verde began production in January 2024 but is still completing optimization and commissioning. Stage 1 is expected to reach an annual run rate of approximately 4,000 metric tons of total rare-earth oxide, or TREO, by year-end 2026. Stage 2 construction targets average annual production of 6,400 metric tons, with commissioning expected to begin within 12 months.
Serra Verde had $425 million of principal outstanding under its U.S. International Development Finance Corporation loan at June 30. At closing, a $100 million tranche was extinguished after related warrants were exercised, leaving approximately $325 million of principal. The unaudited pro forma combined balance sheet reported a $304.1 million debt carrying value after discounts and issuance costs.
Serra Verde gives USA Rare Earth, Inc. (NASDAQ:USAR) a producing source of dysprosium, terbium, and other rare earths used in permanent magnets. Combining mining, metals, alloys, and magnet manufacturing could capture more of the value chain outside Asia.
The Phase 1 offtake agreement supports revenue visibility. It covers 100% of Pela Ema's Phase 1 products, subject to limited carve-outs, and includes escalating price floors annually. The counterparty is a special-purpose vehicle capitalized by the U.S. government and private investors. The arrangement provides contractual price protection, subject to the counterparty's performance.
#earth #approximately #NASDAQ #usar
3 days ago
September S&P 500 E-Mini futures (ESU26) are down -0.15%, and September Nasdaq 100 E-Mini futures (NQU26) are down -0.66% this morning as rising oil prices and bond yields weigh on investor sentiment ahead of crucial U.S. producer inflation data and earnings from debt-loaded AI hyperscaler Oracle.
Oil prices extended their advance on Thursday as escalating attacks between the U.S. and Iran risked prolonging disruptions to energy flows in the Middle East. Brent crude rose above $103 a barrel, while WTI crude climbed above $99 a barrel. A senior Iranian official said on Wednesday that Tehran has no plans to back down in the face of an American naval blockade and will intensify its strikes if the U.S. continues attacking its territory. Also, Iran's Islamic Revolutionary Guard warned on Wednesday of additional restrictions on shipping around the Strait of Hormuz. Meanwhile, U.S. President Donald Trump said the war with Iran would not end until after the November midterm elections.
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#Iran
Oil prices extended their advance on Thursday as escalating attacks between the U.S. and Iran risked prolonging disruptions to energy flows in the Middle East. Brent crude rose above $103 a barrel, while WTI crude climbed above $99 a barrel. A senior Iranian official said on Wednesday that Tehran has no plans to back down in the face of an American naval blockade and will intensify its strikes if the U.S. continues attacking its territory. Also, Iran's Islamic Revolutionary Guard warned on Wednesday of additional restrictions on shipping around the Strait of Hormuz. Meanwhile, U.S. President Donald Trump said the war with Iran would not end until after the November midterm elections.
'Not Tens Of Billions, But Tens Of Trillions': Nvidia CEO Jensen Huang Says AI Is Like the New Electricity and the Scale Is Unlike Any Tech in History
What It Means for MSFT Stock Investors as Microsoft Switches to 2 Business Segments
RKLB Stock Jumps as Rocket Lab Debuts New Solar Cell for ****** e
#Iran
3 days ago
The U.S. Treasury Department said Wednesday that it plans to buy $6 billion of government debt this week as part of an effort to reduce long-term borrowing costs and maintain liquidity in the bond market. The buyback operation, which triples the normal level of $2 billion per week, will continue at a higher level moving forward, Treasury said, with at least $4 billion in debt purchased each week for the next few months, and perhaps longer.
This week's buyback, which is scheduled for Thursday, will focus on 10- and 20-year Treasury bonds. Yields have been rising on those bonds, along with other durations, as investors confront the reality of persistent inflation, massive investment in artificial intelligence and rising government debt levels around the world.
Treasury Secretary Bessent said Tuesday that the buyback operation is intended to reduce the "fever that was building" in the bond markets.
The markets did not respond as hoped. Treasury yields rose after the announcement Wednesday, with the yield on long-duration bonds rising as much as 5 basis points in volatile trading, though yields fell back in later trading.
"It doesn't seem like the patient's feeling much better," Adam Josephson of Sakonnet Research wrote in a note, per Investopedia.
#week #rising #government
This week's buyback, which is scheduled for Thursday, will focus on 10- and 20-year Treasury bonds. Yields have been rising on those bonds, along with other durations, as investors confront the reality of persistent inflation, massive investment in artificial intelligence and rising government debt levels around the world.
Treasury Secretary Bessent said Tuesday that the buyback operation is intended to reduce the "fever that was building" in the bond markets.
The markets did not respond as hoped. Treasury yields rose after the announcement Wednesday, with the yield on long-duration bonds rising as much as 5 basis points in volatile trading, though yields fell back in later trading.
"It doesn't seem like the patient's feeling much better," Adam Josephson of Sakonnet Research wrote in a note, per Investopedia.
#week #rising #government
3 days ago
On September 8, 2026, GE Aerospace (NYSE:GE) agreed to buy Consolidated Precision Products (CPP) for $11.75 billion. The acquisition marks the company's largest bet yet on precision engine castings, a constraint that has been capping GE's growth. Trading already at roughly 40x earnings, the company has now attacked one of its genuine bottlenecks through the deal. But has it paid too much to do it?
Castings, including the superalloy and ******* anium hot-section parts inside the jet engines, have constrained GE's engine production, including programs such as LEAP and GEnx, as well as its high-margin aftermarket. Without these castings, the company can neither build nor service its engines. If the acquisition closes, the company will gain access to CPP's 20-plus plants and about 6,600 workers, which are essential for making those components. The deal would therefore enable GE to control the constraint as well as defend its margins. CEO Larry Culp characterized the move as securing manufacturing capacity to meet simultaneous demand across commercial engines, aftermarket services, and defense contracts.
The valuation is where bulls should slow down. GE is paying roughly 18x 2027 EBITDA including synergies (26x without synergies). The sellers are private equity firms Warburg Pincus and Berkshire Partners. They have basically offloaded a cyclical business near the peak of the aerospace cycle. This is smart money selling to GE instead of the other way around. The real tell is that GE felt compelled to buy its way past this capacity bottleneck instead of scaling organically, which reveals how tight its prized aftermarket really was. Also, CPP also supplies other major aerospace and defense companies such as Pratt & Whitney, Honeywell, and Lockheed Martin, and through the vertical tie-up, the company invites antitrust scrutiny before it closes in late 2027.
GE's 40x multiple rests on its high-margin razor-and-blade business model that services a huge installed base. And the casting supply shortages quietly constrain this aftermarket. Hence, more than merely fixing a supply chain issue, the CPP acquisition defends the company's high margin and multiple. Financially, the transaction is accretive to adjusted EPS and free cash flow in the first year, funded through $7 billion in cash alongside newly issued debt. Insider Monkey data shows 113 hedge funds held GE in Q2 2026, down modestly from 119 in Q1, reflecting firm institutional positioning. Short interest is just 1.3% of float, below peers like Honeywell International (1.6%). Almost no one bets against it.
#aftermarket #acquisition #including
Castings, including the superalloy and ******* anium hot-section parts inside the jet engines, have constrained GE's engine production, including programs such as LEAP and GEnx, as well as its high-margin aftermarket. Without these castings, the company can neither build nor service its engines. If the acquisition closes, the company will gain access to CPP's 20-plus plants and about 6,600 workers, which are essential for making those components. The deal would therefore enable GE to control the constraint as well as defend its margins. CEO Larry Culp characterized the move as securing manufacturing capacity to meet simultaneous demand across commercial engines, aftermarket services, and defense contracts.
The valuation is where bulls should slow down. GE is paying roughly 18x 2027 EBITDA including synergies (26x without synergies). The sellers are private equity firms Warburg Pincus and Berkshire Partners. They have basically offloaded a cyclical business near the peak of the aerospace cycle. This is smart money selling to GE instead of the other way around. The real tell is that GE felt compelled to buy its way past this capacity bottleneck instead of scaling organically, which reveals how tight its prized aftermarket really was. Also, CPP also supplies other major aerospace and defense companies such as Pratt & Whitney, Honeywell, and Lockheed Martin, and through the vertical tie-up, the company invites antitrust scrutiny before it closes in late 2027.
GE's 40x multiple rests on its high-margin razor-and-blade business model that services a huge installed base. And the casting supply shortages quietly constrain this aftermarket. Hence, more than merely fixing a supply chain issue, the CPP acquisition defends the company's high margin and multiple. Financially, the transaction is accretive to adjusted EPS and free cash flow in the first year, funded through $7 billion in cash alongside newly issued debt. Insider Monkey data shows 113 hedge funds held GE in Q2 2026, down modestly from 119 in Q1, reflecting firm institutional positioning. Short interest is just 1.3% of float, below peers like Honeywell International (1.6%). Almost no one bets against it.
#aftermarket #acquisition #including
3 days ago
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As a general guideline, if you want multiple credit cards, it's a good idea to wait at least six months between credit card applications. That period gives your credit time to recover from credit inquiries, keeps your average account age healthy, and shows creditors you can manage your debt responsibly.
On average, American adults have 3.7 active cards, according to 2025 data from Experian.
Experts typically recommend waiting at least six months between credit card applications to protect your credit.
Each new credit card application can affect your credit because of hard credit checks and a lower average account age.
#affect #cards
As a general guideline, if you want multiple credit cards, it's a good idea to wait at least six months between credit card applications. That period gives your credit time to recover from credit inquiries, keeps your average account age healthy, and shows creditors you can manage your debt responsibly.
On average, American adults have 3.7 active cards, according to 2025 data from Experian.
Experts typically recommend waiting at least six months between credit card applications to protect your credit.
Each new credit card application can affect your credit because of hard credit checks and a lower average account age.
#affect #cards
3 days ago
On September 2, Shell Offshore, a subsidiary of Shell plc (NYSE:SHEL), announced the acquisition of a 30% working interest in Conifer, an exploration prospect operated by BP p.l.c. (NYSE:BP) in the U.S. Gulf of Mexico. Located offshore within Keathley Canyon near BP's Kaskida host development, Conifer represents a significant deep-water play. BP retains operatorship, with the initial exploration well expected to spud in 2027. While the deal reflects shared risk and capital efficiency in high-cost offshore basins, comparing the two giants' Q2 2026 earnings shows that Shell is currently executing from a position of superior financial strength.
Shell plc (NYSE:SHEL) delivered an exceptionally clean Q2 2026 report. Adjusted earnings reached $9.8 billion, driven by record upstream production in Brazil and record refinery utilization, which offset Middle East operational outages. Cash flow from operations (CFFO) came in at $21.4 billion, supported by higher realized prices and a $3.4 billion working capital inflow. Shell maintained strict capital discipline, reiterating its full-year capex outlook of $24 billion–$26 billion while completing $5.8 billion in structural cost reductions since 2022. Balance sheet health remains robust, with gearing at 19% and net debt at $42 billion ($12 billion excluding leases).
BP p.l.c. (NYSE:BP) also turned in a solid Q2 recovery, but its headline metrics lag behind Shell's scale. BP reported underlying replacement cost profit (its proxy for net income) of $5.7 billion, a 78% quarter-over-quarter rebound fueled by strong refining margins and oil trading. Operating cash flow reached $10.9 billion after absorbing a $1.0 billion working capital build. BP used strong cash generation to trim net debt down to $22.25 billion, while guiding full-year capex to $13.5 billion–$14.0 billion.
Although BP raised its quarterly dividend by 4% to 8.66 cents, Shell's cash engine allowed it to announce its 19th consecutive quarter of at least $3 billion in share buybacks, distributing 44% of CFFO over the trailing 12 months.
Shell's bull case centers on superior capital allocation, aggressive portfolio high-grading, including the ARC Resources acquisition targeting a 4% production CAGR through 2030, and consistent share buybacks. The bear case focuses on execution risks in integrated gas and LNG amid volatile market conditions, as well as the challenges of integrating large-scale acquisitions.
#cost
Shell plc (NYSE:SHEL) delivered an exceptionally clean Q2 2026 report. Adjusted earnings reached $9.8 billion, driven by record upstream production in Brazil and record refinery utilization, which offset Middle East operational outages. Cash flow from operations (CFFO) came in at $21.4 billion, supported by higher realized prices and a $3.4 billion working capital inflow. Shell maintained strict capital discipline, reiterating its full-year capex outlook of $24 billion–$26 billion while completing $5.8 billion in structural cost reductions since 2022. Balance sheet health remains robust, with gearing at 19% and net debt at $42 billion ($12 billion excluding leases).
BP p.l.c. (NYSE:BP) also turned in a solid Q2 recovery, but its headline metrics lag behind Shell's scale. BP reported underlying replacement cost profit (its proxy for net income) of $5.7 billion, a 78% quarter-over-quarter rebound fueled by strong refining margins and oil trading. Operating cash flow reached $10.9 billion after absorbing a $1.0 billion working capital build. BP used strong cash generation to trim net debt down to $22.25 billion, while guiding full-year capex to $13.5 billion–$14.0 billion.
Although BP raised its quarterly dividend by 4% to 8.66 cents, Shell's cash engine allowed it to announce its 19th consecutive quarter of at least $3 billion in share buybacks, distributing 44% of CFFO over the trailing 12 months.
Shell's bull case centers on superior capital allocation, aggressive portfolio high-grading, including the ARC Resources acquisition targeting a 4% production CAGR through 2030, and consistent share buybacks. The bear case focuses on execution risks in integrated gas and LNG amid volatile market conditions, as well as the challenges of integrating large-scale acquisitions.
#cost
3 days ago
On August 11, Humana Inc. (NYSE:HUM) announced that its Medicaid plan, Humana Healthy Horizons in Indiana, is collaborating with HealthStream, Inc. (NASDAQ:HSTM). The partnership expands access to workforce training for caregivers, aiming to recruit and retain talent in rural and underserved communities. While one provides healthcare coverage and the other builds the software to train healthcare workers, both companies are capitalizing on the industry's critical focus: solving caregiving shortages and optimizing healthcare delivery.
HealthStream emerges as the operationally cleaner, higher-growth performer, while Humana continues to navigate a more complex transition marked by regulatory and profitability pressures. Humana Inc. (NYSE:HUM) reported Q2 2026 GAAP EPS of $5.73 and adjusted EPS of $7.61, with an Insurance segment GAAP benefit ratio of 91.2%. The company reaffirmed its full-year adjusted EPS guidance of at least $9.00 but lowered its FY 2026 GAAP EPS forecast to at least $6.52 from $8.36, reflecting non-cash adjustments and value creation charges. Although individual Medicare Advantage membership is expected to grow approximately 25% in 2026, lower Star Ratings remain a significant drag on profitability.
HealthStream, Inc. (NASDAQ:HSTM), meanwhile, delivered record Q2 2026 results, with revenue rising 12.5% year over year to $83.7 million. Operating income increased 41.4% to $8.3 million, while net income climbed 23.8% to $6.7 million, or $0.23 per diluted share. Adjusted EBITDA also increased 16.9% to $20.6 million. The company's debt-free balance sheet, supported by $66.7 million in cash and cash equivalents, further strengthens its financial flexibility. While Humana operates at substantially greater scale, HealthStream is demonstrating stronger operational leverage, margin expansion, and balance sheet flexibility.
Humana's bull case is supported by strong Medicare Advantage membership growth, with the company targeting a 25% increase in 2026, alongside strategic expansion of its CenterWell primary care business and state Medicaid footprint, including its recent Illinois win. These initiatives could strengthen its long-term recovery and expand its addressable market. However, the bear case centers on elevated medical benefit ratios, which reached 91.2% in Q2, as well as regulatory pressures in Medicaid and continued Medicare Star Ratings headwinds. These factors could further squeeze margins and weigh on net earnings.
#healthcare #year
HealthStream emerges as the operationally cleaner, higher-growth performer, while Humana continues to navigate a more complex transition marked by regulatory and profitability pressures. Humana Inc. (NYSE:HUM) reported Q2 2026 GAAP EPS of $5.73 and adjusted EPS of $7.61, with an Insurance segment GAAP benefit ratio of 91.2%. The company reaffirmed its full-year adjusted EPS guidance of at least $9.00 but lowered its FY 2026 GAAP EPS forecast to at least $6.52 from $8.36, reflecting non-cash adjustments and value creation charges. Although individual Medicare Advantage membership is expected to grow approximately 25% in 2026, lower Star Ratings remain a significant drag on profitability.
HealthStream, Inc. (NASDAQ:HSTM), meanwhile, delivered record Q2 2026 results, with revenue rising 12.5% year over year to $83.7 million. Operating income increased 41.4% to $8.3 million, while net income climbed 23.8% to $6.7 million, or $0.23 per diluted share. Adjusted EBITDA also increased 16.9% to $20.6 million. The company's debt-free balance sheet, supported by $66.7 million in cash and cash equivalents, further strengthens its financial flexibility. While Humana operates at substantially greater scale, HealthStream is demonstrating stronger operational leverage, margin expansion, and balance sheet flexibility.
Humana's bull case is supported by strong Medicare Advantage membership growth, with the company targeting a 25% increase in 2026, alongside strategic expansion of its CenterWell primary care business and state Medicaid footprint, including its recent Illinois win. These initiatives could strengthen its long-term recovery and expand its addressable market. However, the bear case centers on elevated medical benefit ratios, which reached 91.2% in Q2, as well as regulatory pressures in Medicaid and continued Medicare Star Ratings headwinds. These factors could further squeeze margins and weigh on net earnings.
#healthcare #year
3 days ago
The dollar index (DXY00) recovered from a 2.5-week low on Wednesday and finished up by +0.06%. The dollar found support on Wednesday after WTI crude oil surged +3 % to a 3.25-month high, boosting inflation expectations and potentially persuading the Fed to tighten monetary policy. Also, short covering emerged in the dollar on Wednesday after the US Treasury announced it would purchase $6 billion of long-term US government debt securities on Thursday, below expectations of $10 billion. In addition, Wednesday's increase in the 10-year T-note yield to a 2.75-year high of 4.85% has strengthened the dollar's interest rate differentials.
The dollar initially moved lower on Wednesday amid strength in the yen after US Treasury Secretary Bessent challenged traders to test his resolve on strengthening the yen.
Dollar Slips on **** anese Yen Strength
AT&T Offers $10K Reward for Tips as Cable Theft Soars Alongside Copper Prices
Dollar Slips Before the Treasury's Buyback Operation
#wednesday #treasury #billion #dxy00
The dollar initially moved lower on Wednesday amid strength in the yen after US Treasury Secretary Bessent challenged traders to test his resolve on strengthening the yen.
Dollar Slips on **** anese Yen Strength
AT&T Offers $10K Reward for Tips as Cable Theft Soars Alongside Copper Prices
Dollar Slips Before the Treasury's Buyback Operation
#wednesday #treasury #billion #dxy00
3 days ago
The Treasury Department on Wednesday revealed that it will buy back up as much as $6 billion in longer-dated U.S. debt in an operation this week.
The agency's Bureau of the Fiscal Service announced that it will purchase up to $6 billion in 10-year notes and 20-year bonds in an operation. The securities that will be bought in the operation, which is scheduled to occur from 1:40 p.m. to 2 p.m. ET on Thursday, have maturity dates ranging from February 2037 and August 2046.
The buybacks follow Treasury Secretary Scott Bessent's announcement that Treasury's buyback operations would be at least $4 billion until early November, an increase from the $2 billion that the agency would typically buy back in an operation.
Yields on Treasurys have been elevated in recent years due to stubborn inflation, which has been exacerbated by the Iran war and has caused interest rates to rise further.
Bessent Says Treasury Auctions Will Continue As Usual Despite Expanded Buyback Program
#buyback #back #year #fiscal
The agency's Bureau of the Fiscal Service announced that it will purchase up to $6 billion in 10-year notes and 20-year bonds in an operation. The securities that will be bought in the operation, which is scheduled to occur from 1:40 p.m. to 2 p.m. ET on Thursday, have maturity dates ranging from February 2037 and August 2046.
The buybacks follow Treasury Secretary Scott Bessent's announcement that Treasury's buyback operations would be at least $4 billion until early November, an increase from the $2 billion that the agency would typically buy back in an operation.
Yields on Treasurys have been elevated in recent years due to stubborn inflation, which has been exacerbated by the Iran war and has caused interest rates to rise further.
Bessent Says Treasury Auctions Will Continue As Usual Despite Expanded Buyback Program
#buyback #back #year #fiscal
3 days ago
While the average personal loan interest rate is 12.21%, borrowers with excellent credit may have access to rates as low as 6.20%.
Credit unions tend to offer the lowest overall borrowing costs, with a national average of 10.72% and a legal rate cap of 18% at federal institutions.
Online fintech lenders advertise competitive rates starting at 6.20%, though maximum rates can climb up to 36% or higher.
Commercial banks remain competitive, with an average rate of 12.06%, but they demand a high credit score and solid work history for approval.
Tracking average personal loan rates can help you benchmark your borrowing costs for major goals like consolidating credit cards, financing home renovations or covering emergencies. Because personal loans offer fixed monthly payments, they are a solid tool for eliminating credit card debt, provided your credit profile qualifies you for the lowest market pricing.
#loan
Credit unions tend to offer the lowest overall borrowing costs, with a national average of 10.72% and a legal rate cap of 18% at federal institutions.
Online fintech lenders advertise competitive rates starting at 6.20%, though maximum rates can climb up to 36% or higher.
Commercial banks remain competitive, with an average rate of 12.06%, but they demand a high credit score and solid work history for approval.
Tracking average personal loan rates can help you benchmark your borrowing costs for major goals like consolidating credit cards, financing home renovations or covering emergencies. Because personal loans offer fixed monthly payments, they are a solid tool for eliminating credit card debt, provided your credit profile qualifies you for the lowest market pricing.
#loan
3 days ago
Listen
(3 min)
1444 ET – Gold futures make small gains despite a rise in Treasury yields after the Treasury Department said it would buy back $6 billion in bonds this week, less than some in the market expected. The dollar weakened, however, which tends to support gold. An easing in ******* anese yields and continued central bank buying—with China’s central bank adding 20 tons in August—also helped support prices, while the market remains focused on U.S. inflation data later this week, Konstantinos Chrysikos of Kudo.com says in a note. Front month gold settles up 0.5% in New York at $4,416 a troy ounce. Silver gains 2.5% to $67.942 a troy ounce. (anthony.harrupwsj.com)
1150 ET – Gold futures are steady as bond yields rise after the Treasury says it will buy up to $6 billion of longer-term debt at its Thursday buyback operation. The precious metals market is also focusing on this week’s inflation data—producer prices due Thursday and consumer prices on Friday. Gold’s recent slippage came as high Treasury yields, firmer Fed rate-hike expectations and rising oil prices “collectively outweighed dollar softness,” Kaynat Chainwala of Kotak Neo says in a note. Softer inflation readings would reduce the probability of a rate increase “and open the path toward the $4,500 resistance zone,” while an above-estimate result along with high energy prices “would likely reinstate selling pressure and bring the $4,300 support zone into focus.” Front month gold is up 0.2% at $4,401.20 a troy ounce. (anthony.harrupwsj.com)
#treasury #week #support #ounce
(3 min)
1444 ET – Gold futures make small gains despite a rise in Treasury yields after the Treasury Department said it would buy back $6 billion in bonds this week, less than some in the market expected. The dollar weakened, however, which tends to support gold. An easing in ******* anese yields and continued central bank buying—with China’s central bank adding 20 tons in August—also helped support prices, while the market remains focused on U.S. inflation data later this week, Konstantinos Chrysikos of Kudo.com says in a note. Front month gold settles up 0.5% in New York at $4,416 a troy ounce. Silver gains 2.5% to $67.942 a troy ounce. (anthony.harrupwsj.com)
1150 ET – Gold futures are steady as bond yields rise after the Treasury says it will buy up to $6 billion of longer-term debt at its Thursday buyback operation. The precious metals market is also focusing on this week’s inflation data—producer prices due Thursday and consumer prices on Friday. Gold’s recent slippage came as high Treasury yields, firmer Fed rate-hike expectations and rising oil prices “collectively outweighed dollar softness,” Kaynat Chainwala of Kotak Neo says in a note. Softer inflation readings would reduce the probability of a rate increase “and open the path toward the $4,500 resistance zone,” while an above-estimate result along with high energy prices “would likely reinstate selling pressure and bring the $4,300 support zone into focus.” Front month gold is up 0.2% at $4,401.20 a troy ounce. (anthony.harrupwsj.com)
#treasury #week #support #ounce
3 days ago
When a caller inquired about IREN Limited (NASDAQ:IREN) during the lightning round on September 3, Mad Money host Jim Cramer said:
If you're going to do neocloud, you got to do, the only one I like is CoreWeave with Michael Intrator. The others I think are too speculative for me.
The two companies are at different stages of building their AI businesses. CoreWeave, Inc. (NASDAQ:CRWV) reported $2.575 billion of second-quarter revenue, up approximately 112% from a year earlier. Its revenue backlog stood at approximately $104 billion as of June 30, excluding more than $25 billion of additional customer commitments secured in early July. Furthermore, active power reached 1.5 gigawatts, while contracted power rose to approximately 3.7 gigawatts. CEO Michael Intrator said on the company's second-quarter earnings call that "our near-term capacity remains effectively sold out." He also described broadening customer demand and rapidly expanding enterprise adoption.
Meanwhile, IREN Limited's (NASDAQ:IREN) AI Cloud Services revenue reached $128.8 million in fiscal 2026, compared with $16.4 million a year earlier. Total fiscal 2026 revenue was $707 million, including $578.2 million from Bitcoin mining. The company reported $4 billion of contracted AI annualized run rate revenue for 2026 capacity, with $1 billion of operating ARR as of August 26. CEO Daniel Roberts said on August 27 that its 2026 capacity was "largely sold out." Roberts said recent three-year contracts represented more than $20 million of revenue per megawatt and that customer prepayments represented 45%-55% of ****** ociated GPU capital expenditures.
CoreWeave, Inc.'s (NASDAQ:CRWV) capital requirements remain substantial. The company spent $9.4 billion on capital expenditures in the second quarter and raised its 2026 CapEx forecast to $35 billion-$39 billion. It also reported $640 million of net interest expense and a $626 million net loss for the quarter. Total debt stood at $35.6 billion as of June 30.
#billion #revenue
If you're going to do neocloud, you got to do, the only one I like is CoreWeave with Michael Intrator. The others I think are too speculative for me.
The two companies are at different stages of building their AI businesses. CoreWeave, Inc. (NASDAQ:CRWV) reported $2.575 billion of second-quarter revenue, up approximately 112% from a year earlier. Its revenue backlog stood at approximately $104 billion as of June 30, excluding more than $25 billion of additional customer commitments secured in early July. Furthermore, active power reached 1.5 gigawatts, while contracted power rose to approximately 3.7 gigawatts. CEO Michael Intrator said on the company's second-quarter earnings call that "our near-term capacity remains effectively sold out." He also described broadening customer demand and rapidly expanding enterprise adoption.
Meanwhile, IREN Limited's (NASDAQ:IREN) AI Cloud Services revenue reached $128.8 million in fiscal 2026, compared with $16.4 million a year earlier. Total fiscal 2026 revenue was $707 million, including $578.2 million from Bitcoin mining. The company reported $4 billion of contracted AI annualized run rate revenue for 2026 capacity, with $1 billion of operating ARR as of August 26. CEO Daniel Roberts said on August 27 that its 2026 capacity was "largely sold out." Roberts said recent three-year contracts represented more than $20 million of revenue per megawatt and that customer prepayments represented 45%-55% of ****** ociated GPU capital expenditures.
CoreWeave, Inc.'s (NASDAQ:CRWV) capital requirements remain substantial. The company spent $9.4 billion on capital expenditures in the second quarter and raised its 2026 CapEx forecast to $35 billion-$39 billion. It also reported $640 million of net interest expense and a $626 million net loss for the quarter. Total debt stood at $35.6 billion as of June 30.
#billion #revenue
3 days ago
During a segment on the September 3 episode, Mad Money host Jim Cramer shared a detailed bullish thesis on Amazon.com, Inc. (NASDAQ:AMZN). He stated:
Let's start with Amazon. Ever since we went out to see Amazon earlier this year, I've been stuck on something that CEO Andy Jassy told me. He said they're going to make an immense amount of money in artificial intelligence. They were going to profit from their gigantic commitment to data centers and next year will be huge for the compute sales. Well, I think it's being pulled forward. I think it may already be huge right now. I also remember Andy talking about the $50 billion semiconductor business that's buried in the company. I like the healthcare initiatives... Amazon Web Services is doing incredibly well. Their grocery delivery business, wow...
Alright, what can I say? All this for a stock that's up just 12% for the year; that's wrong. Amazon's balance sheet isn't as good as it was a year ago; enough already. What if Amazon Web Services is able to make four times what it just paid for 2 million GPUs from NVIDIA? That ratio, by the way, is what NVIDIA CEO Jensen Huang told me companies can expect to get when they buy NVIDIA chips. That makes me think that Amazon is cheap. We've all kind of forgotten that there's a reason why a smart executive like Andy Jassy is willing to wreck Amazon's balance sheet like the old days. It's because they're going to make fortunes with the money they spend. And we are getting closer and closer to seeing huge profits for investments that the Street has hated. You can't wait until next year to buy the stock of Amazon. And that's why it is a screaming buy with the stock trading at about 20 times this year's earnings. That's wrong.
Amazon Web Services remains the primary profit engine for the company. In the second quarter, AWS revenue surged 37% year over year to reach $42.2 billion, putting its annual run rate at roughly $169 billion. Operating income for the cloud unit jumped to $16.6 billion. Companies shifting their operations to handle AI and heavy workloads are turning those massive data center investments into high-margin profits. Aside from basic cloud hosting, Amazon.com, Inc. (NASDAQ:AMZN) is leaning into its own custom chips, like Trainium and Graviton, and growing adoption of the Bedrock platform to keep its revenue streams strong and diversified.
Not everyone on Wall Street shares Cramer's enthusiasm, as it could be pointed out that Amazon.com, Inc.'s (NASDAQ:AMZN) balance sheet is noticeably weaker than it was a year ago as its long-term debt increased from nearly $66 billion at the end of 2025 to nearly $129 billion by mid-2026. Heavy capital commitments and soaring data center expenses, with full-year capital expenditure guidance climbing around $220 billion, have strained cash flow flexibility. Investors could be worried that the company is spending too aggressively. If enterprise demand for artificial intelligence tools slows down or if the massi
Let's start with Amazon. Ever since we went out to see Amazon earlier this year, I've been stuck on something that CEO Andy Jassy told me. He said they're going to make an immense amount of money in artificial intelligence. They were going to profit from their gigantic commitment to data centers and next year will be huge for the compute sales. Well, I think it's being pulled forward. I think it may already be huge right now. I also remember Andy talking about the $50 billion semiconductor business that's buried in the company. I like the healthcare initiatives... Amazon Web Services is doing incredibly well. Their grocery delivery business, wow...
Alright, what can I say? All this for a stock that's up just 12% for the year; that's wrong. Amazon's balance sheet isn't as good as it was a year ago; enough already. What if Amazon Web Services is able to make four times what it just paid for 2 million GPUs from NVIDIA? That ratio, by the way, is what NVIDIA CEO Jensen Huang told me companies can expect to get when they buy NVIDIA chips. That makes me think that Amazon is cheap. We've all kind of forgotten that there's a reason why a smart executive like Andy Jassy is willing to wreck Amazon's balance sheet like the old days. It's because they're going to make fortunes with the money they spend. And we are getting closer and closer to seeing huge profits for investments that the Street has hated. You can't wait until next year to buy the stock of Amazon. And that's why it is a screaming buy with the stock trading at about 20 times this year's earnings. That's wrong.
Amazon Web Services remains the primary profit engine for the company. In the second quarter, AWS revenue surged 37% year over year to reach $42.2 billion, putting its annual run rate at roughly $169 billion. Operating income for the cloud unit jumped to $16.6 billion. Companies shifting their operations to handle AI and heavy workloads are turning those massive data center investments into high-margin profits. Aside from basic cloud hosting, Amazon.com, Inc. (NASDAQ:AMZN) is leaning into its own custom chips, like Trainium and Graviton, and growing adoption of the Bedrock platform to keep its revenue streams strong and diversified.
Not everyone on Wall Street shares Cramer's enthusiasm, as it could be pointed out that Amazon.com, Inc.'s (NASDAQ:AMZN) balance sheet is noticeably weaker than it was a year ago as its long-term debt increased from nearly $66 billion at the end of 2025 to nearly $129 billion by mid-2026. Heavy capital commitments and soaring data center expenses, with full-year capital expenditure guidance climbing around $220 billion, have strained cash flow flexibility. Investors could be worried that the company is spending too aggressively. If enterprise demand for artificial intelligence tools slows down or if the massi
