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Yahoo
10 hours ago
- Business
- Yahoo
Is it Wise to Retain Prologis Stock in Your Portfolio Now?
Prologis PLD is poised to gain from its strategically located modern distribution facilities in key markets globally and scale. Prudent buyouts and development and a healthy balance sheet will drive growth. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. Elevated interest expenses add to PLD's concerns. Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities has driven healthy operating performance over the past several quarters. The company's new and renewal leases are expected to translate into considerable rises in future rental income. Our estimate points to a year-over-year increase of 6.3% in rental revenues in 2025. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. For 2025, the company anticipates acquisitions at Prologis share between $750 million and $1.25 billion. Development starts are expected in the range of $1.5-$2.0 billion. Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. In addition, as of March 31, 2025, the company's credit ratings were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirements for third-party IT infrastructure. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments, which will aid future revenue growth. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Check Prologis' dividend history here. Analysts seem bullish on this Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share indicates a favorable outlook as it has moved marginally northward over the past month to $5.70. In a volatile and still elevated interest rate environment and geopolitical concerns, customers remain focused on cost controls and delaying their decisions with respect to decision-making for leasing. As such, demand remains subdued, and this trend is expected to continue in the near term. Despite the Federal Reserve announcing rate cuts in the second half of 2024, the interest rate is still high and is a concern for Prologis. The company's consolidated debt as of March 31, 2025 was $32.26 billion. For 2025, our estimate indicates an 11.7% year-over-year increase in the company's interest expenses. Shares of Prologis have declined 6.2% over the past three months, underperforming the industry's fall of 1.2%. Image Source: Zacks Investment Research Some better-ranked stocks from the REIT sector are VICI Properties VICI and W.P. Carey WPC,each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.34, up 3.54% year over year. The Zacks Consensus Estimate for W.P. Carey's2025 FFO per share is pegged at $4.88, up 3.83% year over year. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prologis, Inc. (PLD) : Free Stock Analysis Report W.P. Carey Inc. (WPC) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Globe and Mail
11 hours ago
- Business
- Globe and Mail
The Week in AI: "All incumbents are gonna get nuked."
Welcome back to The Week in AI. I'm Kevin Cook, your field guide and storyteller for the fascinating arena of artificial intelligence. On Friday, my colleague Ethan Feller and I ran through a dozen developments that are transforming the economy right before our eyes. Here were 7 of the highlights... 1) Jensen at NVIDIA GTC Paris: "We are going to sell hundreds of billions worth of GB200/300." CEO Jensen Huang has forecast spending on AI-enabled data centers will double to $2 trillion over the next four to five years. As Grace Blackwell systems deploy, with 208 billion transistors per GPU -- or nearly 15 trillion per GB200 NVL72 rack system -- NVIDIA NVDA engineers are building the roadmap for Rubin and Feynman systems with likely orders of magnitude greater power. This is something I've talked about repeatedly for the past year: Wall Street analysts and investors are vastly underestimating the potential of the AI economy and the upgrades in infrastructure that need to occur to support self-driving cars, humanoid robots, and other autonomous machines. And this doesn't include sovereign nation-states that need to build their own AI infrastructure for security and growth. If you ever need clarity about the AI Revolution, or just to recalibrate your expectations and convictions, there is one place you need to visit: the NVIDIA Newsroom -- especially around a GPU Tech Conference (GTC). (I show you where in the video.) For last week's Paris GTC, they rolled out 6 press releases and 19 blogs covering as many new innovations and partnerships across industry, enterprise, science and healthcare. Nobody Wanted AI GPUs in 2016 Jensen also retells the story of the first DGX-1 in 2016. It was the mini supercomputer about the size of a college dorm fridge and it held 8 Volta GPUs with 21 billion transistors each. And nobody wanted it. Except a little startup called OpenAI. I like to use this story as an example of how NVIDIA has been in a very unique position ever since. They don't have to find "product-market fit" like most companies. Instead, they have been inventing a stack that developers didn't know they needed. Get the whole story in the replay of last Friday's The Week in AI: The Reasoning Wars, Sam's Love Letter, Zuck's Land Grab. Even if you don't have time for the 60-minute replay, at least do a quick scroll of the comments where I post all the relevant links to the topics we discussed. With over 25 links, you are guaranteed to find something that answers your top questions about the AI revolution! 2) The New Civil War In AI: Not Safety, But Efficacy There are many exciting debates going on in "the revolution" right now. A recent hot conflict is over whether or not the LLMs (large language models) are doing real reasoning, and even thinking. This one heated up after Apple AAPL researchers released their paper "The Illusion of Thinking: Understanding the Strengths and Limitations of Reasoning Models." We are amazed by the research, writing, pattern-finding and puzzle-solving of these models. But Apple researchers found some limitations where the models "give up" on large problems without enough context. And it's worth pondering if they are simply "token prediction" machines that eventually get wrapped around their own axles. I've experienced this with some of the "vibe-coding" app developer tools like Replit and Bolt. But then other analysts and papers quickly responded and surfaced with the "limitations" of the Apple research, suggesting that the imposed cost expenditure limits imposed were the defining factor in the models giving up. One of the rebuttal papers was titled "The Illusion of the Illusion of Thinking." Again, all these links are in the comments section of The Week in AI. 3) Google Offers Buyouts: AI Headcount Crunch Beginning? My third topic was once again about the employment impact from generative AI and agentic AI being adopted in corporations. I ran a query on ChatGPT for the "top 100 jobs most likely to be disrupted" in the next 3 years. You can find the link in the comments of the X Space. Another tangible angle on job displacement was the revolutionary ad during the NBA finals by the prediction market platform Kalshi. It was created using the new Veo 3 graphics creator from Google by a filmmaker named PJ Ace. Ethan and I discussed how this innovation is certain to disrupt advertising, marketing, and film as the machines can do in minutes what it used to take a team of people weeks. And wait until you see the new Veo 3 ad from a Los Angeles dentist that is taking social media by storm. We'll talk about that in this Friday's Space. Welcome to the Machine But the most eye-opening news flash for me was the story on a company called Mechanize. While lots of job displacement will happen organically, this outfit is like a mercenary going after headcount. The New York Times titled their article "This A.I. Company Wants to Take Your Job." And here's how an X post described the piece about the startup that wants to automate white-collar work "as fast as possible"... "Mechanize wants to abolish all jobs. They make no secret of this. They are developing an AI program that is extremely promising and is being financed by everyone from Google to Stripe." Then there is Anthropic co-founder Ben Mann saying we'll know AI is transformative when it passes the "Economic Turing Test: Give an AI agent a job for a month. Let the hiring manager choose: human or machine? When they pick the machine more often than not, we've crossed the threshold." I have several posts in the comments of the "The Week in AI" X Space on the employment wars. Plus, just about every post is from a particular source of AI insight or expertise whose account you should be following on X. 4) Marc Andreessen: "All incumbents are gonna get nuked. Everything gets rebuilt." Translation: AI isn't an economic upgrade. It's a total reset. Which brings me to my favorite part of our Friday X Space... Cooker's RANT of the WEEK: "The Magical AI Transformation Won't Be So Gentle." Here I take the other side of Sam Altman's blog post from last week titled "The Gentle Singularity." I call it his "love letter" not to make fun of him, but to highlight his optimism in the face of brewing storms. A few weeks ago it was Anthropic CEO Dario Amodei warning us about the rapid disruption of work and its impacts on citizens and families, not just the economy. Then the old wise-man of AI, Geoffrey Hinton, shared these sentiments in a recent interview... The best-case future is a "symbiosis between people and AI" -- where machines handle the mundane, and humans live more interesting lives. But in the kind of society we have now, he warns, AI won't free most people. It will concentrate power, and as massive productivity increases create joblessness, it will mostly benefit the rich. This sober view instantly made me think of the 2016 book by Yuval Noah Harari Homo Deus in which the historian described how technology usually gets concentrated in the hands of the rich and powerful. It's just how economics works, no matter the political flavor. In this way, AI can move quickly beyond issues of personal safety, to those of economic security. In the X Space replay and the comments below it, I discuss the implications of "post-labor economics" as well as share more expert resources on these topics. Be sure to catch the replay of The Week in AI to hear my sense of the "not-so-gentle" transition we are headed into. 5) Apple WWDC: The Non-Event of the Week in AI For what to expect (or not) from Apple in AI innovation, I always turn to Robert Scoble on X @Scobleizer. Here were some of his summary posts... Cynical take on Apple's WWDC: just doing things Microsoft did back in 2003. Liquid glass. Menus on tablets. Dark take on it: it's way behind in AI, and didn't demonstrate any attempt to catch up. Light take: Lots of new AI features, like your phone will wait on hold for you now. Hopeful take: the new design joins Apple Vision Pro into its ecosystem, showing that the Apple Vision Pro is the future of Apple. Scoble adds: I really hate the recorded product demos and the old people showing new features and attempting to be "hip." On a more Apple-positive note, Scoble is looking forward to the next devices which should be coming in the AR space... Later this year both Apple and Google are introducing heavyweight category wearables. Lighter than the first Vision Pro. We will judge them by who has the best AI inside. That is more important than resolution. Google, today, looks like it is way ahead and pulling further away because this is a game of exponents. I will buy both anyway. :-) (end of @Scobleizer rants) Many experts are sensing that Alphabet GOOGL is "firing on all cylinders across AI" as we've discussed previously. From Gemini 2.5 Pro and the astonishing new Veo 3 to building AI capabilities with their own with TPUs (instead of relying on NVIDIA GPUs), they're the only vertically-integrated player across all realms of tech. Google will probably also figure out the shift from classic search to generative search, as Daniel Newman of the Futurum technology research group says. Reports of Google's demise have been greatly exaggerated according to @DanielNewmanUV and I wish I was listening before I sold my shares on the last "search is dead" scare. 6) Zuck Splashes the Pot with $14.3 Billion Meta Platforms META plunked down that amount for only 49% of a private company called Scale AI. But the price tag made it the biggest pure-AI acquisition, following OpenAI's $6 billion purchase of Jony Ive's company. Just like Sam wasn't waiting around to find out what AI-native device Apple will build, so too Zuck isn't waiting around for permission to have access to the premier company in the data supply chain -- what some are calling the oil refinery of the AI economy. What does that mean? Well if you think about data as various grades of crude oil, it needs to be cleaned and prepped in a number of ways before it can be "mined and modeled" for quality results. That's where Scale AI comes in with data prep and labeling because major AI models need structured and labeled training data to generate knowledge tokens, insights, and deep learning. Scale AI is a San Francisco-based artificial intelligence company founded in 2016 by Alexandr Wang and Lucy Guo. The company specializes in providing high-quality data labeling, annotation, and model evaluation services that are essential for training advanced AI models, including large language models (LLMs) and generative AI systems. Scale AI is known for its robust data engine, which powers AI development for leading tech firms, government agencies, and startups worldwide. Its research division, the Safety, Evaluation and Alignment Lab (SEAL), focuses on evaluating and aligning AI models for safety and reliability 7) AMD Unveils AI Server Rack, Sam on Stage with Lisa I am still shaking my head at all the stuff that happened last week! As if all of the above wasn't enough, Advanced Micro Devices AMD held its annual Advancing AI conference last Thursday with a product roadmap for hyperscale inferencing that caught investor attention. In addition to leaps forward in performance for the existing Instinct MI350 Series GPU systems, AMD CEO Lisa Su unveiled the Helios AI Rack-scale architecture supporting up to 72 MI400 GPUs, with 432GB of HBM4 memory per GPU and 19.6 TB/sec bandwidth. Available in 2026, this is clearly an answer to NVIDIA's GB200/300 series rack systems. AI Market Growth: CEO Lisa Su projected an 80% increase in AI inference demand by 2026, driven by the rapid adoption and expansion of AI applications in enterprise and cloud environments. Roadmap: AMD reaffirmed its commitment to an annual cadence of AI chip releases, with the MI400 and MI450 series already in development and expected to challenge Nvidia's flagship offerings in 2026 and beyond. And then Sam Altman showed up during Lisa's keynote. Since he clearly can't get enough compute or GPUs, he's as tight with Lisa as he is with Jensen. Lisa welcomed the founder and CEO of OpenAI as a key design partner for AMD's upcoming MI450 GPU who will help shape the next generation of AMD's AI hardware. OpenAI will use AMD GPUs and Helios servers for advanced AI workloads, including ChatGPT. And AMD's other happy customers continue to come back for more with Meta deploying AMD Instinct MI300X GPUs for Llama 3/4 inference and collaborating on future MI350/MI400 platforms. Meanwhile Microsoft Azure runs proprietary and open-source models on AMD Instinct MI300X GPUs in production and Oracle Cloud Infrastructure will deploy zettascale AI clusters with up to 131,072 MI355X GPUs, offering massive AI compute capacity to customers. This event made AMD shares a clear buy last week -- and this week if you can still grab some under $130! OLD RANT: The Fundamental Difference Finally, did you hear what another OpenAI co-founder said at the University of Toronto commencement address? Ilya Sutskever, the OpenAI architect and deep learning pioneer who in 2024 started his own model firm, Safe Superintelligence, spoke these words to the new grads... "The day will come when AI will do all the things we can do. The reason is the brain is a biological computer, so why can't the digital computer do the same things? "It's funny that we are debating if AI can truly think or give the illusion of thinking, as if our biological brain is superior or fundamentally different from a digital brain." I had to dig out my old rant about the fundamental difference(s) between human brains and computer "thinking." If you haven't heard me on this, you owe it to yourself so you can easily explain the differences to other "intelligence experts" telling you how consciousness works. Bottom line: To stay informed in AI, listen to The Week in AI replay, or just go to that post to see all the links and sources. And be sure to follow me on X @KevinBCook so you see the announcement for the new live Space every Friday. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
Fast Company
14 hours ago
- Business
- Fast Company
How Cisco has been quietly retooling for the AI revolution
Welcome to AI Decoded, Fast Company 's weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week here. Exclusive Interview With Cisco's Jeetu Patel Data centers are popping up all over the world to support the quickly growing demand for all kinds of AI apps and services. Cisco, of course, is no stranger to the data center, and it's been working hard over the past few years to make itself a vital part of the AI technology stack. I asked Cisco EVP and chief product officer Jeetu Patel how he sees the current situation in generative AI, and about how his company fits into the picture. The interview has been edited for length and clarity. Can you give me your 30,000-foot view of the transition to generative AI? We're now moving from this mode of chatbots intelligently answering questions for us to us now moving into a mode where agents are conducting tasks and jobs almost fully autonomously on behalf of humans. As that happens, there's going to be an augmentation of the capacity of billions and billions of agents that'll actually get added on over the course of the next few years. But the requirements that you have around low-latency, high-performance, high-energy-efficiency infrastructure, as well as around safety and security so that the user can establish trust with these AI systems, is going to have to be fully reimagined. Can you describe in simple terms how Cisco plays in the AI tech stack? At the very baseline, we build our own silicon and ASICs [application-specific integrated circuits] for the network itself. I think we're the only non-Nvidia silicon provider that is part of Nvidia's reference architecture where our networking is tied with their GPUs and we actually make sure that those work together in a reference architecture that an enterprise can deploy. We then have our own systems, which are the physical boxes for the networks and the servers on the compute side, and the optics and the optical systems that actually can do ultra-long haul data center interconnect, as well as interconnect between clusters. We then provide the safety and security platform that's needed to secure AI as well—we're one of the largest security players in the market. We provide a data platform in Splunk. We're actually building our own bespoke custom models for security and networking. You mentioned latency as a key challenge. How critical is response time for AI applications? If it takes three seconds for an AI voice agent to respond to you, you know it's a robot and you don't want to talk to it. But if you do it within 500 milliseconds, you have a very different kind of behavior from the human. In our user testing, outside of efficacy, latency is one of the most important things. It has to be interruptible and it has to have enough training on EQ [emotional intelligence] and sentiment analysis, so that if you're sounding annoyed, it doesn't say, 'How's the weather today?' How do you handle the security challenges with multiple AI models? Most of these models are putting their own safety and security guardrails in the models. But models can get tricked through jailbreaking techniques. We've built a product that not only does the visibility of what data is flowing through the model and when the model is getting fine-tuned, so you can do a continuous validation. . . . We validate the model within a matter of minutes through an algorithmic red-teaming exercise rather than it taking weeks or months for companies to validate the model. We jailbroke DeepSeek within 48 hours. We can take that model and then create runtime enforcement guardrails for every application developer. The end outcome is that no developer has to rebuild the security stack every time they build an application, and no model provider needs to be responsible for every single way that a model can be jailbroken. So every app developer building on top of DeepSeek will benefit from this pool of knowledge that Cisco knows about how to jailbreak the model and how to protect against that? That's exactly right. We believe that you need a neutral party that provides a common substrate of security for every app developer, every model builder, every agent developer, so that the developer can innovate fearlessly. Are AI companies putting big data centers in the Middle East because they have plenty of power and room to grow, or is it to better service customers in that region? It's literally both. You don't have enough power to fuel all the demand for AI right now. The amount of usage that OpenAI is getting right now is literally like breaking the internet. They came up with $20 a user—they're losing money on $20 a user, from what the industry says. So they added a plan for $200 a user. My guess is they're going to lose money at $200 a user. They have a plan for $2,000 a user. They will lose money for $2,000 a user. Tha''s not a bad thing. It tells you that there is intrinsic demand. The demand for data centers is going to be insatiable for a very long time. As models get more efficient over time, you'll have small models with very large context windows—you might have a million-token context window, very small model, very small data set with a very small footprint to be able to get the inference done. But we're not quite there yet. Is it because of inference costs that they can't make money? What's the big cost driver? Right now it's the usage and the cost of GPUs. It's expensive. But the beauty about this is it's the wrong thing to focus on to get a company to profitability at this stage. What they should focus on is the acquisition of as many users as possible so that they can have the daily workflow fusion of ChatGPT for both consumers and enterprises. Once that happens, they can figure out a way to optimize later. But right now, starting to optimize would be putting cycles in the wrong thing.
Globe and Mail
15 hours ago
- Business
- Globe and Mail
Is it Wise to Retain Prologis Stock in Your Portfolio Now?
Prologis PLD is poised to gain from its strategically located modern distribution facilities in key markets globally and scale. Prudent buyouts and development and a healthy balance sheet will drive growth. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. Elevated interest expenses add to PLD's concerns. What's Aiding Prologis Stock? Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities has driven healthy operating performance over the past several quarters. The company's new and renewal leases are expected to translate into considerable rises in future rental income. Our estimate points to a year-over-year increase of 6.3% in rental revenues in 2025. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. For 2025, the company anticipates acquisitions at Prologis share between $750 million and $1.25 billion. Development starts are expected in the range of $1.5-$2.0 billion. Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. In addition, as of March 31, 2025, the company's credit ratings were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirements for third-party IT infrastructure. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments, which will aid future revenue growth. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Check Prologis' dividend history here. Analysts seem bullish on this Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share indicates a favorable outlook as it has moved marginally northward over the past month to $5.70. What's Hurting Prologis Stock? In a volatile and still elevated interest rate environment and geopolitical concerns, customers remain focused on cost controls and delaying their decisions with respect to decision-making for leasing. As such, demand remains subdued, and this trend is expected to continue in the near term. Despite the Federal Reserve announcing rate cuts in the second half of 2024, the interest rate is still high and is a concern for Prologis. The company's consolidated debt as of March 31, 2025 was $32.26 billion. For 2025, our estimate indicates an 11.7% year-over-year increase in the company's interest expenses. Shares of Prologis have declined 6.2% over the past three months, underperforming the industry 's fall of 1.2%. Stocks to Consider Some better-ranked stocks from the REIT sector are VICI Properties VICI and W.P. Carey WPC,each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.34, up 3.54% year over year. The Zacks Consensus Estimate for W.P. Carey's2025 FFO per share is pegged at $4.88, up 3.83% year over year. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Prologis, Inc. (PLD): Free Stock Analysis Report W.P. Carey Inc. (WPC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis Report
Yahoo
21 hours ago
- Business
- Yahoo
Why AI Stock Jabil Crushed the Market on Tuesday
The contract electronics manufacturer delivered solid third-quarter results. Its business is benefiting handsomely from the proliferation of artificial intelligence (AI), and it's also doing well supplying cloud computing customers. 10 stocks we like better than Jabil › The intense take-up of artificial intelligence (AI) has been a powerful motor driving contract electronics manufacturer Jabil (NYSE: JBL) lately. It also helped power the company's latest quarterly results, which were published Tuesday morning. Investors very much liked what they saw in the numbers, and rewarded the company by boosting its share price nearly 9% higher on the day. Jabil's fiscal third quarter of 2025 results were posted before market open, and they set the tone for the stock that day. Revenue rose by a sturdy 16% year over year to just over $7.8 billion, handily beating the average analyst estimate of $7 billion. The story was similar on the bottom line, with "core" -- i.e. non-GAAP (generally accepted accounting principles) adjusted -- net income rising 21% to $279 million, or $2.55 per share. The latter number was well above the consensus $2.29 projected by analysts tracking Jabil stock. Management attributed the double-digit gains to growth in expanding end markets, such as data centers infrastructure, and cloud computing. Its intelligent infrastructure segment did particularly well, thanks greatly to intensifying demand for artificial intelligence (AI) solutions. Meanwhile, Jabil announced it is to invest roughly $500 million to expand its manufacturing footprint in the Southwest U.S., specifically targeting the AI and cloud businesses. The company wrote that this will "enable new large-scale manufacturing capabilities, capital investments, and workforce development." Such facilities should come onstream in mid-2026, it added. Jabil also proffered guidance for both its current quarter and the entirety of fiscal 2025. For the latter period, it's anticipating revenue of $29 billion, filtering down into adjusted net income of $9.33 per share. Those figures in fiscal 2024 were a respective $28.9 billion, and $8.49. Even with that post-earnings pop, Jabil remains a somewhat under-the-radar play on the explosion of AI. As such, I'd flag it as a sleeper stock in that pack, and one well worth consideration as a buy. Before you buy stock in Jabil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Jabil 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — 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 Eric Volkman 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 AI Stock Jabil Crushed the Market on Tuesday was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
