Today's News
Google (GOOG, GOOGL) faced a downgrade from Rosenblatt Securities, citing concerns over transition risks, including the impact of artificial intelligence on search. Analyst Barton Crockett highlighted the potential negative impact on search ad revenue and noted evidence of share loss to Microsoft's (MSFT) Bing. Additionally, Google faces intense competition from retail media networks such as Walmart (WMT) and Amazon (AMZN). Crockett lowered his rating on Google to Neutral from Buy, with a price target of $181.
Nike (NKE, Financial) reported disappointing earnings, leading to a sharp decline in its stock. The company warned of a 10% sales drop in the current quarter and a mid-single-digit decline for the full year due to uneven consumer trends. Analyst Jay Sole pointed out that Nike's fundamental trends are worse than expected, indicating no quick rebound in earnings. Foot Locker (FL, Financial), Dick's Sporting Goods (DKS), Under Armour (UA, Financial), Crocs (CROX, Financial), On Holding AG (ONON), Deckers Outdoor Corporation (DECK), and Skechers U.S.A. (SKX) also experienced declines following Nike's report.
Tractor Supply (TSCO, Financial) announced it would eliminate diversity, equity, and inclusion (DEI) roles and retire its existing DEI goals after customer backlash. The farm supply retailer will focus on rural America priorities like animal welfare and veteran causes, and will discontinue sponsoring pride festivals and voting campaigns. The company aims to refocus on land and water conservation efforts, moving away from its previous carbon emission goals.
This week's dividend activity saw increases from Kroger (KR, Financial) and Levi Strauss (LEVI, Financial), with upcoming ex-dividend dates for JPMorgan (JPM) and Progressive (PGR). Notable increases include Jefferies Financial Group (JEF) raising its dividend by 16.7%, Kroger by 10.3%, and Levi Strauss by 8.3%. AT&T (T) and Pfizer (PFE) also declared dividends this week.
Apple (AAPL, Financial) saw a significant 40% surge in iPhone shipments in China for May, driven by attractive discounts ahead of the June shopping festival. The China Academy of Information and Communications Technology reported a 13% increase in overall smartphone shipments, with foreign brands, primarily Apple, growing nearly four times faster. This follows a 52% increase in iPhone shipments in April after a slump earlier in the year.
Plug Power (PLUG, Financial) announced plans to recognize benefits from the Inflation Reduction Act's Section 45V federal tax credit for clean hydrogen production at its new Georgia facility. The company expects the credit to significantly reduce fuel costs and drive a breakeven fuel margin by year-end, with positive margins anticipated in 2025 and beyond. The Georgia facility is the largest electrolytic liquid hydrogen production plant and PEM electrolyzer in the U.S.
Rocket Pharmaceuticals (RCKT, Financial) dropped 14% premarket after the FDA declined to approve its gene therapy candidate Kresladi for leukocyte adhesion deficiency-I (LAD-I). The FDA requested additional Chemistry Manufacturing and Controls (CMC) information to complete its review, delaying the approval process. The company previously received priority review for Kresladi, with a revised target action date of June 30, 2024.
GuruFocus Stock Analysis
- Palantir Technologies Is Navigating Growth and Valuation Challenges by Sheraden Frances
- Deckers Outdoor Is Overvalued, but Offers Exceptional Growth, High ROIC by Hung Tran
- A Closer Look at Berkshire Hathaway's Chubb Investment by Horse Poor Investor
- Taking a Closer Look at Brown-Forman by Hoang Quoc Anh
