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Yahoo
a day ago
- Business
- Yahoo
Why Applied Optoelectronics Stock Skyrocketed Today
Applied Optoelectronics stock rocketed higher Friday thanks to new financing disclosures from the company. The tech specialist announced that one of its subsidiaries had taken on a new loan that was used to pay a previously existing loan. News of the refinancing move follows an announcement that the company recently made a major product shipment to a hyperscaler customer. 10 stocks we like better than Applied Optoelectronics › Applied Optoelectronics (NASDAQ: AAOI) stock soared higher again in Friday's trading. The tech specialist's share price rose 18.6% in the daily session despite a 0.2% decline for the S&P 500 (SNPINDEX: ^GSPC) and a 0.5% fall for the Nasdaq Composite (NASDAQINDEX: ^IXIC). Applied Optoelectronics' valuation surged today thanks to news that one of the company's subsidiaries had reworked previously existing debt agreements. The stock climbed roughly 39% over the last week of trading. After the market closed on Wednesday, Applied Optoelectronics submitted a filing to the Securities and Exchange Commission (SEC) revealing two significant financing changes for its Global Technology subsidiary. Because the stock market was closed for the Juneteenth federal holiday on Thursday, the investor reaction to the new disclosures was pushed into today's trading. As per the filing with the SEC, Applied Optoelectronics' Global Technology has entered into a one-year credit agreement with China Construction Bank totaling 96.8 million Chinese renminbi -- which works out to roughly US$111.55 million based on the current exchange rate. Applied Optoelectronics said that the funding from the new agreement had been used to pay back other outstanding loans with Shanghai Pudong Development Bank. Despite this week's rally, Applied Optoelectronics stock is still down roughly 36% across the year due to uneven business performance and concerns about the company's financing. On the other hand, the company has recently announced significant shipments for its high-speed data center transceivers for a major data center customer. Along with some indications that the company could see an increase in demand powered by artificial intelligence (AI) initiatives from cloud hyperscaler customers, the recently announced financing moves suggest that the company has a found a near-term solution to some of its financing challenges. Before you buy stock in Applied Optoelectronics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Optoelectronics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Applied Optoelectronics Stock Skyrocketed Today was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Take-Two Stock Is Crushing the Nasdaq in 2025. Is It a Buy?
Investors are bullish on Take-Two's growth prospects, sending the stock up 27% year to date. This leading game maker is preparing to launch several releases over the next few years. At the current valuation, investors are anticipating Take-Two's margins to increase significantly in the coming years. 10 stocks we like better than Take-Two Interactive Software › Take-Two Interactive (NASDAQ: TTWO) stock is up 27% year to date, significantly outperforming the broader market. By comparison, the Nasdaq Composite (NASDAQINDEX: ^IXIC) is up just 0.59% at the time of writing. The maker of the uber-popular series Grand Theft Auto (GTA) reported outstanding financial results to cap off fiscal 2025 (ending in March). The momentum is noteworthy as Take-Two prepares to launch a series of new releases in the coming years, including GTA VI, to grow the business. However, it's always important to have an understanding of what you're actually paying for at the current share price. With the stock trading at higher multiples of sales and earnings, can investors buying shares today expect a good return on their investment? Take-Two is hitting a nice stride as management executes against its long-term strategy to grow the business. The company's non-GAAP (adjusted) revenue, or bookings, grew 6% year over year in fiscal 2025, with bookings up 17% in the most recent quarter. Its strategy of focusing on building player relationships from releasing live updates to existing franchises is paying off. Bookings from players spending money on virtual currency and other content while playing games, or "recurrent consumer spending," accounted for 80% of bookings in fiscal 2025. Take-Two just released Sid Meier's Civilization VII for the Nintendo Switch 2 in early June, with several other titles from existing franchises planned over the next year. For fiscal 2026, management is guiding for bookings to increase 6% over fiscal 2025 to approximately $6 billion. The big one -- GTA VI -- is scheduled for release on May 26, 2026. Given the 215 million copies the current version of the game has sold since 2013, Wall Street anticipates blockbuster sales, with current estimates calling for Take-Two's bookings to hit $9 billion in fiscal 2027. Take-Two has delivered strong growth for shareholders over the last 10 years. Its generally accepted accounting principles (GAAP) revenue grew at an annualized rate of 18%, which includes the acquisition of mobile game maker Zynga in fiscal 2023, although the company's profits and free cash flow have taken a hit since that acquisition. However, Take-Two has a history of growing its earnings and free cash flow, and that is very much on the table going forward. Take-Two is following a long-term strategy to expand its portfolio of games, grow recurrent consumer spending, and scale the business to spread more revenue over costs and expand margins. During the last earnings call, management stated there is no reason the business can't reach a low to mid-20% operating margin like it achieved during the pandemic. This is what Wall Street analysts are expecting, with projected annual earnings growth at 36% for the next several years. Given the expectation for higher margins and earnings growth, the stock is trading at its highest price-to-sales multiple since its previous peak margins during the pandemic. It's also trading at a high forward price-to-earnings multiple of 87. But sales and earnings multiples don't tell the whole story about a company's intrinsic value. To reverse engineer the expectations implied in the current $235 share price, I plugged in some numbers to a discounted cash flow model. I assumed the company's revenue would grow at double-digit annual rates to reach $18 billion by 2035, with the operating margin reaching 25%. Using a 10% discount rate and a 4% terminal growth rate beyond year 10, Take-Two's intrinsic value is $236. Those are the financial targets Take-Two needs to achieve to justify the current share price. For the stock to be considered a screaming buy right now, you have to make more aggressive growth projections. To justify a fair value of $300, Take-Two would have to either achieve an operating margin in the 30% range or grow its revenue to $25 billion. Take-Two stock rocketed over 1,000% following the previous GTA launch in 2013, but that's because investors significantly underestimated the sales and profits from that release. Investors have wised up to the potential of GTA VI and priced the stock accordingly. The stock is still a buy for someone that can be satisfied with a more modest return. But given the current valuation, I wouldn't buy it if you're expecting significant outperformance relative to the broader market. Before you buy stock in Take-Two Interactive Software, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Take-Two Interactive Software wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy. Take-Two Stock Is Crushing the Nasdaq in 2025. Is It a Buy? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Why Quantum Computing Stock Is Skyrocketing This Week
Jensen Huang's comment that quantum technology was reaching an "inflection point" sent the company's stock flying. Just months ago, Huang stated he thought the technology was 15 years or more away from maturation. 10 stocks we like better than Quantum Computing › Shares of Quantum Computing (NASDAQ: QUBT) are surging this week, up 24.2% as of 1:22 p.m. ET. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) both had modest gains. At his company's GTC Paris developer conference on Wednesday, Nvidia CEO Jensen Huang indicated that he thinks quantum computing is reaching an "inflection point," boosting stocks across the industry. Earlier this year, Huang sent quantum stocks sliding after he said he believes useful quantum computers were 15 years or more away. He later qualified his remarks and walked them back somewhat, even hosting executives from around the industry to "tell him why he was wrong." On Wednesday, however, he went much further, making the most directly bullish comments thus far. Huang said that he believes the industry is nearing an "inflection point" and that "we are within reach" of being able to apply the technology "in areas that can solve some interesting problems in the coming years." As much as this seems a significant departure from his original stance, it seems to me that investors may be reading past what Huang actually said. There's a difference between solving "some interesting problems" and the full maturation of quantum technology that delivers on its transformative promise. There is plenty of reason to believe Huang's original timeline for the latter. And given the enormous market capitalizations of these quantum stocks, including Quantum Computing, the technology must be transformative. I think we are still a very long way from a quantum computer that is robust, powerful, and stable enough to generate a return on the current level of investment. I would stay away from Quantum Computing stock for the time being. Before you buy stock in Quantum Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Quantum Computing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why Quantum Computing Stock Is Skyrocketing This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
Why UnitedHealth Stock Imploded Last Month
UnitedHealth Group continued its historic drop in May, losing 26.6% during the month. The health insurer is facing new allegations of fraud and misconduct. The company's CEO suddenly stepped down, citing only "personal reasons." 10 stocks we like better than UnitedHealth Group › Shares of UnitedHealth Group (NYSE: UNH) fell in May, finishing the month down 26.6%. The collapse came as the S&P 500 (SNPINDEX: ^GSPC) gained 5.5% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 7.9%. The troubled health insurance giant faced a series of damning reports and allegations of fraud and misconduct following the sudden departure of its CEO. In May, UnitedHealth's then-CEO, Andrew Witty, announced he was stepping down, citing "personal reasons." The sudden loss of its CEO sent shockwaves through the company and signaled to investors the depth and scale of UnitedHealth's ongoing issues. The resignation came at the same time that the company told investors it was suspending guidance for 2025 due to surging medical costs. UnitedHealth was already facing an investigation from the Department of Justice in a civil case, but in May, it was revealed that the DOJ's Health Care Fraud Unit is conducting a criminal investigation into the company for Medicare fraud. Although it was revealed last month, the company has apparently been under criminal investigation for a year. Just a week after the DOJ revelation, The Guardian reported that UnitedHealth has been making secret bonus payments to nursing homes in order to keep ailing residents out of hospitals and save money. The report also claims the company staffed nursing homes with its own medical teams who, at times, interfered in order to keep residents who needed hospital care from receiving it. One former UnitedHealth executive told The Guardian, "You gain profitability by denying care, and when profitability suffers for the shareholders, that's when people get crazy and do things that are not appropriate." Just a year after the company's CEO was murdered in New York City, the company is still on its heels, with problems mounting. As James Harlow, senior vice president at Novare Capital Management, put it, "It just doesn't seem like they have a plan." All of this has shaken investor confidence, leading in April and May to the most severe drop for an S&P 100 company since Netflix fell 54% in May 2022, according to Dow Jones Market Data. There are just too many issues facing UnitedHealth at the moment, with no clear picture of an imminent turnaround. This once-seemingly stable investment looks far from it at the moment, and I would stay away from the stock. Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. Why UnitedHealth Stock Imploded Last Month was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
12-06-2025
- Automotive
- Yahoo
Why Nvidia-Backed Navitas Semiconductor Soared Today
Navitas announced it has been chosen by Nvidia to help power its next-generation data center systems. The company's advanced gallium nitride (GaN) and silicon carbide (SiC) technologies help with efficient power supply and solve key scaling issues. 10 stocks we like better than Navitas Semiconductor › Shares of Navitas Semiconductor (NASDAQ: NVTS) surged higher on Tuesday, finishing the day up 11%. The gain came as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) were both up 0.6%. Positive news from ongoing trade talks between the U.S. and China is helping boost the company's stock as it continues its massive run-up following the revelation of its partnership with Nvidia. U.S. and Chinese officials are in London attempting to reach a more permanent resolution to the trade war that was put on pause last month. Commerce Secretary Howard Lutnick said on Tuesday that the discussions were "going well" and that the representatives were "spending lots of time together" attempting to reach a deal. A permanent reduction of the massive tariffs both countries imposed on each other in recent months would be great news for the entire economy, but semiconductor companies could benefit specifically, depending on the details. Navitas announced last month that Nvidia had selected the company to help power its next-generation artificial intelligence (AI) data center systems, including the much-anticipated Rubin chips that will eventually succeed the current industry-leading Blackwell chips. Navitas, which specializes in gallium nitride (GaN) and silicon carbide (SiC) technologies, will help Nvidia solve key scaling issues with its power supply for the incredibly powerful AI-fueled chips. I think Navitas stock is worth owning; the seal of approval from Nvidia is huge. The company's balance sheet is solid, with minimal debt. Before you buy stock in Navitas Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Navitas Semiconductor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why Nvidia-Backed Navitas Semiconductor Soared Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
