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>>> Badger Meter, Inc. (BMI) manufactures and markets flow measurement, quality, control, and communication solutions worldwide. It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities market. The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives.
In addition, the company offers ORION Cellular endpoints to power network as a service; ORION mobile read endpoints support for deploying AMR solution; radio products; hardware, instruments, and sensors, and related software, to enhance connected data to a water utility's operation; water quality monitoring solutions, including optical sensing and electrochemical instruments; and high frequency pressure and leak detection sensors to aid in burst pipe and leak events; as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity. Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets.
The company serves water utilities, commercial, and industrial industries; and provides training, project management, technical support, and other collaborative services for customers. It sells its products and software directly, as well as through resellers and representatives. The company was incorporated in 1905 and is based in Milwaukee, Wisconsin.
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https://finance.yahoo.com/quote/BMI/profile/
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>>> The Descartes Systems Group Inc. (DSGX) provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company provides consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as manufacturers, retailers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.
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https://finance.yahoo.com/quote/DSGX/profile/
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>>> Nvidia dominated 2024 big-time. Next year? Plenty of challenges.
Yahoo Finance
by Daniel Howley
December 26, 2024
https://finance.yahoo.com/news/nvidia-dominated-2024-big-time-next-year-plenty-of-challenges-110047391.html
Nvidia (NVDA) has had the kind of year most companies can only dream of.
Its revenue and stock price soared thanks to prescient investments in artificial intelligence technologies that are paying off handsomely on the back of the generative AI wave.
That’s not all. It’s repeatedly swapped places with Apple (AAPL) as the largest publicly traded company in the world by market cap, topping the $3 trillion mark. CEO Jensen Huang has become one of the most in-demand executives in Silicon Valley, meeting with everyone from fellow tech luminaries to world leaders and then some.
And there’s more to come. The company is ramping up production of its high-powered Blackwell chip for AI applications and expects to ship several billion dollars worth of the hardware in the fourth quarter alone, with far more expected throughout the year ahead.
“Nvidia really has the [hardware and software] for the AI computing era,” Futurum Group CEO Daniel Newman told Yahoo Finance. “It's all connected inside the [server] rack, outside the [server] rack, and then the software is very well … liked within the developer communities.”
But the competition isn’t sitting idly by.
Companies like AMD (AMD) are angling to poach Nvidia’s customers and slice into its estimated 80% to 90% market share. Even Nvidia’s own customers are working on chips meant to cut down on their reliance on the graphics giant’s semiconductors.
And Wall Street is getting on board.
Shares of Broadcom (AVGO), which works with companies like Google (GOOG, GOOGL) to design AI chips, are up 113% year to date and rocketed 44% in just the last month after CEO Hock Tan said AI could represent a $60 billion to $90 billion opportunity for the company in 2027 alone.
Still, taking on Nvidia will be a tough task for any company. And dethroning it as the AI king, at least in 2025, will be all but impossible.
The dominator
Nvidia grabbed a first-mover advantage in the AI market on the back of early investments in AI software that unlocked its graphics chips to be used as high-powered processors. And it’s managed to hold onto that lead in the space thanks to continued advances in its hardware, as well as its Cuda software that allows developers to build apps for its chips.
Because of that, so-called hyperscalers, massive cloud computing providers including Microsoft (MSFT), Alphabet’s Google, Amazon (AMZN), Meta (META), and others continue to plow cash into buying up as many Nvidia chips as possible. In its most recent quarter, Nvidia reported total revenue of $35.1 billion. Of that, $30.8 billion, or 87% came from its data center business.
“Everybody wants to build and train these huge models, and the most efficient way to do it is with CUDA software and Nvidia hardware,” TECHnalysis Research president and chief analyst Bob O’Donnell told Yahoo Finance.
Nvidia is expected to continue to power the bulk of the AI industry in 2025 as well. The company’s Blackwell chip, the successor to its popular Hopper line of processors needed to power AI applications, is in production — and its customers, like Amazon, are already adding new cooling capabilities to their data centers to handle the immense heat the processors generate.
“I don't know what the current backlog [for Nvidia’s chips is], but if it's not a year, it's close to a year,” O’Donnell said. “So, they're pretty much sold out for most of everything they're probably going to make next year already.”
With hyperscalers calling for increased or at least the same level of capital expenditures in 2025 as in 2024, you can expect a chunk of that will end up going to the purchase of Blackwell chips.
Nvidia still faces risks
While Nvidia will retain control of the AI crown, there’s no shortage of challengers looking to take its throne. AMD and Intel (INTC) are the top contenders among chipmakers, and both have products on the market. AMD’s MI300X line of chips is designed to tackle Nvidia’s H100 Hopper chips, while Intel has its Gaudi 3 processor.
AMD is better positioned to steal market share from Nvidia, though, as Intel continues to struggle amid its turnaround efforts and hunt for a new CEO. But even AMD is having a difficult time cracking Nvidia’s lead.
“What AMD needs to do is make software really usable, build the systems where there's more demand …with developers, and ultimately, that could create more sell through,” Newman said. “Because these cloud providers are going to sell what their customers ask for.”
It’s not just AMD and Intel, though. Nvidia’s customers are increasingly developing and pushing their own AI chips. Google has its Broadcom-based tensor processing unit chips (TPUs), while Amazon (AMZN) has its Trainium 2 processor and Microsoft (MSFT) has its Maia 100 accelerator.
There’s also concern that the shift to "inferencing AI models" will reduce the need for high-powered Nvidia chips.
Tech companies develop AI models by training them on huge amounts of data, otherwise referred to as the training process. Training requires incredibly powerful chips and lots of energy. Inferencing, or actually putting those AI models to work, is less resource- and power-intensive. As inferencing becomes a larger part of AI workloads, the thinking goes, companies will back away from needing to purchase so many Nvidia chips.
Huang has said he is prepared for this, explaining at various events that Nvidia’s chips are just as good at inferencing as they are at training.
Even if Nvidia’s market share slides, it doesn’t necessarily mean its business will be doing any worse than before.
“This is definitely a case of raising all boats,” Newman said. “So even with much stronger competition, which I think they certainly will have, that doesn't mean they're going to fail. This is people building a bigger pie.”
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Interesting. The stock has fallen back to support, but still has a fairly high P/E. However, growth projections look good.
Maybe I'll wait to see which direction it runs. Remind me.
>>> Cintas Stock Sinks on Drop in Uniform Direct Sales
Investopedia
by Bill McColl
December 19, 2024
https://finance.yahoo.com/news/cintas-stock-sinks-drop-uniform-185010198.html
Key Takeaways
Cintas shares tumbled Thursday as the provider of uniforms and other business supplies reported a decline in direct sales of its uniforms and warned about pricing.
Second-quarter revenue and profit topped analysts' estimates.
Shares of Cintas sank to their lowest level since August.
Cintas (CTAS) shares tumbled nearly 10% intraday Thursday as the provider of uniforms and other business supplies reported a decline in direct sales of its uniforms and warned about pricing.
In a transcript of the company's earnings call provided by AlphaSense, Chief Executive Officer (CEO) Todd Schneider noted that uniform direct sales are a "strategic business for us that sells into Fortune 1000-type customers, airlines, hotels, casinos, those types. So that business can be quite lumpy."
Schneider also said that raising prices has been more challenging, and with inflation coming down "it's very reasonable to think that price increases will come down as well."
Cintas Q2 Revenue, EPS Topped Estimates
The comments offset strong results from Cintas. The company reported fiscal 2025 second-quarter earnings per share (EPS) of $1.09, topping the Visible Alpha consensus, with revenue increasing 7.8% year-over-year to $2.56 billion, matching expectations.
Cintas also raised its full-year EPS outlook to $4.28 to $4.34 from $4.17 to $4.25. It sees revenue between $10.255 billion to $10.320 billion versus the previous outlook of $10.220 billion to $10.320 billion.
Shares of Cintas sank 9.4% to $185.28, their lowest level since August.
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How does everyone like the new layout for IHUB ?
It seems like it's just about useless now
Not sure, but I think whoever did the redesign is not a user on a smart phone
WTF
AstraZeneca -- >>> AstraZeneca is an international drugmaker that doesn't get much attention from U.S.-based investors. That's because its dividend payouts are a little unusual.
https://www.fool.com/investing/2024/09/19/2-unstoppable-sp-500-stocks-that-keep-beating-the/
Instead of four equal quarterly distributions, AstraZeneca insists on two payments per year, with a greater portion announced alongside fourth-quarter results and payable in March. In July, the company raised its first interim distribution by 7.5% to $0.50 per American depository receipt (ADR).
At recent prices, the stock offers a 1.9% dividend yield. That isn't particularly tempting now, but the distribution could grow at the same pace as the company's bottom line. AstraZeneca generated $7 billion in free cash flow over the past year and only needed 64% of this sum to meet its dividend commitment.
AstraZeneca has multiple growth drivers that could push up profits and its dividend payout in the years ahead. In the first half of 2024, sales of Farxiga -- a treatment for diabetes, heart failure, and chronic kidney disease -- surged 35% year over year to $3.8 billion. Sales of Calquence, a blood cancer drug, surged 27% to $1.5 billion, and Ultomiris, a rare disease drug, shot 32% higher to $1.8 billion.
Free cash flow has surged since 2020 and could continue rising, thanks to an extremely successful product line. In the first half of 2024, AstraZeneca reported sales that grew more than 10% year over year for 21 different drugs.
With heaps of growth drivers to push earnings higher and a lack of significant patent cliffs to offset, AstraZeneca expects earnings to grow by a percentage in the middle teens this year. Adding some shares to a diversified portfolio now looks like a smart move.
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>>> CBIZ, Inc. (CBZ) provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments.
The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services.
The Benefits and Insurance Services segment provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services.
The National Practices segment offers information technology managed networking and hardware, and health care consulting services.
The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.
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https://finance.yahoo.com/quote/CBZ/profile/
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>>> M-tron Industries, Inc. (MPTI) engages in the design, manufacture, and marketing of frequency and spectrum control products in the United States and internationally. The company's products include radio frequency, microwave, and millimeter wave filters; cavity, crystal, ceramic, lumped element, and switched filters; high frequency and performance OCXOs, integrated PLL OCXOs, TCXOs, VCXOs, and low jitter and harsh environment oscillators; crystal resonators, integrated microwave assemblies; and solid-state power amplifier products. Its products are used in applications in the commercial and military aerospace, defense, space, avionics, and other markets. The company was founded in 1965 and is headquartered in Orlando, Florida.
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https://finance.yahoo.com/quote/MPTI/profile/
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Carbon capture - >>> Warren Buffett's Quiet Power Move: Why He's Betting $35 Billion On A 'Yet To Be Proven' Renewable Energy Solution
Benzinga
by Claire Shefchik
Aug 28, 2024
https://finance.yahoo.com/news/warren-buffetts-quiet-power-move-154518849.html
Warren Buffett is at it again, and the financial world is buzzing. He's investing $35 billion into a renewable energy initiative that's still “yet to be proven.” What's surprising is that the famously cautious investor is doubling down on fossil fuels at the same time.
We're not talking pennies here. Chevron is one of the biggest holdings in Berkshire Hathaway's portfolio – almost $19.1 billion. Buffett made his move during the 2020 energy downturn. Although he trimmed his position slightly this year, he remains heavily invested. Chevron's not buying the "fossil fuels are fading" narrative. They've cranked up oil and gas production by 12% and are diving into major projects in the Gulf of Mexico and Israel.
But hold on, there's more. Buffett's got his eye on Occidental Petroleum too. His stake? Close to $15.7 billion. He's been gobbling up shares like they're going out of style. He's even stated that Occidental is one of the few stocks Berkshire would consider holding indefinitely. Under CEO Vicki Hollub, Occidental's making moves, like a $12 billion deal to acquire Crownrock, another oil and gas player.
So, why's Buffett all in on fossil fuels when everyone else is running the other way? It's all about Carbon capture technology. Both Chevron and Occidental are investing heavily in this area. Hollub has even suggested that if carbon capture proves successful, “there’s no reason not to produce oil and gas forever.”
Buffett acknowledges the risk, stating that the “economic feasibility of this technique has yet to be proven." However, Buffett has made risky bets before, and they've often paid off. He's betting that Chevron and Occidental's investments in carbon capture will sustain the oil and gas industry, even as the world shifts toward renewables.
Buffett isn't just focused on short-term gains; he's looking at the long-term potential, particularly with carbon capture technology. If successful, this could transform the industry, making fossil fuels cleaner and more sustainable. That's why he's willing to put so much on the line. Buffett has seen industries change before, and he's positioning himself to be ahead of the curve once again.
In a world where many are following the crowd, Buffett is doing what he does best: going against the grain. Will this gamble pay off? Only time will tell. But if history is any guide, the “Oracle of Omaha” might just be onto something big again.
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>>> Walmart Inc. (NYSE:WMT), the world’s largest retailer, is renowned for its extensive footprint and ability to generate steady cash flows, making it a prime candidate for dividend investors.
https://finance.yahoo.com/news/3-must-dividend-stocks-according-180056727.html
“Dividends continue to be a part of our diversified capital returns approach. We're proud to be increasing our annual dividend for the 51st consecutive year. This year’s nine percent increase is the largest in over a decade, and a sign of our confidence in our growth potential and cash flow,” said Walmart’s CFO and executive vice president, John David Rainey, in a news release.
The company joined the elite ranks of Dividend Kings in 2024, having increased its dividends for the 51st consecutive year in February 2024. Walmart currently pays an annual dividend of $0.83 per share, resulting in a yield of 1.23% on its current stock price. Earlier in February, the company made headlines with a 9% hike in its annual payout – the largest increase over a decade.
Tigress Financial has a "Buy" rating on Walmart with a price target of $86, indicating a potential upside of over 26%. KeyBanc also has a "Buy" rating on the company with a price target of $82, indicating a potential upside of nearly 21%.
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>>> PepsiCo (NASDAQ: PEP), Deere (NYSE: DE), and Chevron (NYSE: CVX) stand out as three dividend stocks that have been underperforming the S&P 500 but look like excellent buys now. Here's why.
https://finance.yahoo.com/news/high-hopes-3-dirt-cheap-121500958.html
Put some pep in the step of your passive-income stream
In her 12-year stint as PepsiCo CEO, Indra Nooyi helped improve its brand and grow profits. Since taking over as CEO in October 2018, Ramon Laguarta has done a good job navigating many unexpected challenges, including the U.S.-China trade war, the worst of the pandemic, inflation, and supply chain bottlenecks. Effective management is extremely important, since every percentage point in margin can mean hundreds of millions of dollars.
For Pepsi, growth usually comes from new product developments, strategic acquisitions, or efficiency improvements. Nooyi was instrumental in helping Pepsi acquire Quaker Oats and Gatorade. But arguably the biggest deal under Laguarta's tenure has been with the energy drink company Celsius (NASDAQ: CELH).
The company entered a partnership with the upstart beverage company in August 2022. It included a $550 million cash investment in exchange for convertible stock, an estimated 8.5% ownership in Celsius on a converted basis, and a 5% annual dividend. As with other consumer goods companies, Celsius shares have pulled back recently, but there's plenty of reason to think the deal will pay off over the long term.
Celsius also benefits from using PepsiCo's strategic distribution network. It is a complicated business -- arguably far more complicated than its peer, Coca-Cola -- because PepsiCo operates its own production facilities compared to Coke's royalty/franchise model. PepsiCo is also involved in far more product categories besides beverages, like snacks and breakfast items, whereas Coke focuses on what it does best: beverages.
Pepsi has a lower market capitalization than Coke but generates roughly double the revenue and half the operating margin. Due to its size and business model, it is a bit more vulnerable than Coke. However, the company's past management and current leadership have a track record of effective capital allocation.
Hovering around a 52-week low with a 3.3% yield, over 50 years of consecutive dividend raises, and a 24.5 price-to-earnings (P/E) ratio, PepsiCo stands out as an excellent stock to buy and hold for years to come.
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>>> Winmark: Powering the circular economy megatrend
https://finance.yahoo.com/news/2-dividend-stocks-double-now-143800565.html
Home to over 1,300 resale franchises across its Plato's Closet, Play It Again Sports, Once Upon A Child, Music Go Round, and Style Encore brands, Winmark is a shining example of the effect that circular economies can have on the world. Thanks to its operations, the company estimates that since 2010, it has put over 1.7 billion items back to good use, helping them avoid landfills, storage units, garages, or the top shelves of closets.
While this feel-good purpose alone makes Winmark an exciting stock, the company's long-term partnerships with its franchisees could prove to be the true magic.
Since it's thinking decades ahead (sometimes even multiple generations ahead), Winmark isn't overly concerned with what happens quarter to quarter. What it wants to do is build a lasting legacy alongside its franchisees. Speaking to Jim Gilles with The Motley Fool, Chief Executive Officer Brett Heffes expounded upon this notion:
Because what happens, is our most successful franchisees, they understand that their business is a legacy asset in the community. They manage the business for themselves, the community, but more importantly, the next generation. This legacy mindset leads to continued investment on our part, whether it's technology, whether it's marketing, whether it's operations, and it just allows us to fulfill our mission.
In operating over this generational time frame, Winmark takes a slow and steady approach to its growth, inching sales higher by 4% annually over the last decade. By taking its time to vet new franchisees and scout new potential store locations, the company has generated a ridiculous 188% ROIC and a free cash flow margin of 51%.
Armed with this cash generation, Winmark always looks to reward shareholders, as it typically pays out almost all excess cash to shareholders in the form of special dividends in many years. However, if Heffes deems the company's shares to be trading below intrinsic value, he'll also swoop in to repurchase shares, which led to a 4% annualized decline in share count since 2014.
With Statista projecting the circular economy to nearly double its sales between 2022 and 2026, Winmark is well-positioned to continue rewarding investors for decades -- if not generations -- to come.
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Derf, WING also looks like a decent long term holding. Overbought after the big recent move, but the chart has a nice long term trajectory. Chipotle Mexican Grill (CMG) is another one on my watch list as a potential buy / hold. In the restaurant sector, I currently only own MCD and YUM, but Texas Roadhouse (TXRH) is another nice long term stock.
So many stocks, it's like being in a candy store :o) But a lot of dogs out there too, probably 10 or 20 dogs for each decent LT stock.
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This seems like a smack your head moment as now this seems obvious, but almost every year, $WING hits a low in January, but goes on a run leading into March Madness. I need to add a calendar entry for next Jan. 1
Apple - >>> Justice Department files antitrust suit against Apple
Yahoo Finance
by Daniel Howley and Alexis Keenan
March 21, 2024
https://finance.yahoo.com/news/justice-department-files-antitrust-suit-against-apple-145514025.html
The US Justice Department filed an antitrust lawsuit against Apple (AAPL), alleging that the maker of the iPhone illegally maintains its dominance over the smartphone market by boxing out competing apps and devices.
Apple "has maintained its power not because of its superiority, but because of its unlawful exclusionary behavior," Attorney General Merrick Garland said at a press conference Thursday.
Apple said it would fight the lawsuit, which it said "threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple."
A victory for the US in this case "would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology," Apple added in its statement.
Apple's stock fell more than 4% following news of the lawsuit, which the Justice Department filed with 16 state attorneys general.
The filing sets up yet another confrontation between the US government and a Silicon Valley icon as the Biden administration tries to rein in Big Tech's power.
The Department of Justice is suing Google (GOOG, GOOGL) over antitrust allegations, while the Federal Trade Commission is suing Amazon (AMZN) and Facebook (META) alleging they also violate antitrust laws.
The new DOJ lawsuit filed Thursday poses a major new threat to Apple's various revenue streams.
Apple generates the bulk of its cash through the sale of its wildly popular iPhone, which accounted for $200.6 billion of the company's $383.3 billion in total revenue in 2023. But Apple's services and hardware that tie into the iPhone are also incredibly lucrative.
The company's wearables, home, and accessories business, which includes its Apple Watch and AirPods sales, generated $39.8 billion last year, while its growing services business, which includes subscriptions for things like Apple Music+ and App Store sales, brought in $85.2 billion.
The DOJ's suit comes just weeks after the European Commission (EC) fined Apple $2 billion for allegedly breaking competition laws in the bloc. The EC alleged the company illegally wielded its dominance to the detriment of its rivals in the market for the distribution of music streaming apps.
The Justice Department suit is just the latest headache for Apple, which is off to a rough start in 2024.
Shares of Apple are down 7% year to date as the company struggles with slowing iPhone sales in China, its third-largest market. Apple also lost its title as the world's most valuable company to rival Microsoft (MSFT).
How Apple allegedly wields power
At the center of the DOJ’s lawsuit is the iPhone, Apple’s most recognizable product.
The company harms consumers by making it more difficult for iPhone users to switch to a competing product and to access competing services, according to the government. The complaint also says Apple harms app developers by imposing restrictions on app creation and distribution.
That includes everything from text messaging to digital wallets to apps that reduce user dependence on the iPhone.
Garland, for example, characterized Apple’s iMessage as anti-competitive, saying that when it is used to text with a Google Android device, the iPhone user’s response is in green rather than blue. (whoopee)
That, he said, "limits functionality." The videos sent via text, Garland added, can also be pixelated and grainy.
He then quoted Apple’s CEO responding to a complaint from a user who said he couldn’t send his mom certain videos: "'Buy your mom an iPhone.'"
Apple, the suit alleges, also makes it more difficult for smartphone users to access competing digital wallets by blocking developers from using tap-to-pay functionality in their apps. And it prevents the Apple iWatch from working with Android smartphones while making it more difficult for someone with an iPhone to use a rival’s smartwatch. (too bad)
"Apple repeatedly responded to competitive threats," said Assistant Attorney General Jonathan Kanter, "by making it harder to leave, then making it more attractive to stay. The antitrust laws have something to say about that."
Apple, according to the suit, also suppresses cloud streaming gaming apps and denies consumers access to so-called super apps, which allow users access to a broad range of functionalities from a single interface.
The wide-ranging suit is "about the core unfair practices of Apple," Case Western Reserve University antitrust expert and law professor Anat Alon-Beck said.
"Apple systematically excludes rivals from the Apple ecosystem. By doing that, Apple is hurting so many startup businesses, stakeholders, customers, and, in my opinion, its shareholders."
As a result, she predicts that Apple's stock will "see more downward movement."
Apple's Epic battle
This is just the latest antitrust battle Apple has had to contend with in the US.
The last was in 2020, when "Fortnite" maker Epic Games sued the company and accused it of violating antitrust law by prohibiting third-party app developers from offering their own payment methods within their apps —as opposed to using Apple's payment service.
Justice Department lawyers were permitted to present arguments in that high-stakes dispute. It focused attention on Apple’s App Store — the only place consumers can download apps for iPhones and iPads, which generally charges app developers a 30% commission on paid app purchases made through the platform.
Apple scored a victory in that case when the appeals court upheld a California trial court's ruling that said Apple did not hold a monopoly in the market for mobile app stores.
However, in a minor win for Epic, the appeals court also upheld the trial court's ruling that said Apple must allow app developers to offer more ways for users to pay for purchases.
Both companies tried to take their fight to the Supreme Court, though the high court declined to take up either appeal.
Following that decision, Apple said it will allow developers to offer third-party payment options through their apps. However, the company said developers would still have to pay fees of either 12% or 27%, a move Epic CEO Tim Sweeney called "anticompetitive."
Apple is in the midst of reconfiguring its App Store payment system in the European Union. Under the EU's new Digital Markets Act (DMA), the company must allow EU customers the option to download third-party app stores and get access to third-party payment options.
Apple said it would address the measure and allow third-party downloads and payments, but will still charge developers a fee of 50 euro cents for each download if they cross the 1 million download threshold in a year.
Both Epic and Spotify objected to the measure, with Spotify CEO Daniel Ek calling the new rule "hostile."
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>>> Will Novo Nordisk Overtake Eli Lilly as the Most Valuable Healthcare Stock?
David Jagielski
Motley Fool
March 20, 2024
https://finance.yahoo.com/news/novo-nordisk-overtake-eli-lilly-123000972.html
Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY) are the top two healthcare stocks in the world based on market cap. Their diabetes and weight loss medications are a big reason these have been among the best healthcare investments to own over the past few years. Today, Eli Lilly is the larger of the two companies, with a market cap of more than $700 billion. Novo Nordisk, however, isn't too far behind, sporting a valuation about $600 billion. And there are some recent catalysts that suggest that gap could shrink in the future.
Why Novo Nordisk could soar higher this year
Novo Nordisk stock is up 28% so far in 2024, and there are a couple of reasons it may become an even hotter in the weeks and months ahead.
On March 8, the Food and Drug Administration approved Novo Nordisk's weight loss treatment, Wegovy, for a new indication: reducing cardiovascular risk in obese or overweight adults. Up until then, the drug was only approved as a treatment for weight loss. The label expansion gives patients another reason to use the drug, which could result in more prescriptions and insurance coverage -- and thus, more revenue.
Novo Nordisk has also been working on a weight loss pill (Wegovy is an injectable) that has been demonstrating encouraging results in clinical trials, showing that it can achieve faster weight loss than Wegovy: 13% after 12 weeks versus just 6% with the injectable treatment. It was an early-stage trial but the data is promising nonetheless.
In 2023, Novo Nordisk's sales increased by 36% (when excluding the impact of foreign exchange) to 232.3 billion Danish kroner ($34.8 billion). Wegovy's sales of 31.3 billion Danish kroner soared by a staggering 420%. And with much more potential on the horizon with a new indication for Wegovy and it entering new markets, Novo Nordisk is nowhere near done growing. Having a weight loss pill in development that could be even better than Wegovy gives investors even more reason to stay bullish on the stock for the long haul.
Could Eli Lilly's stock struggle?
Novo Nordisk is more of a pure-play weight loss and diabetes investment, whereas Eli Lilly's business is much more diversified. And that diversification is one of the reasons the healthcare stock may stumble a bit this year. Recently, regulators delayed making a decision on Eli Lilly's Alzheimer's treatment, donanemab. While it's likely to still obtain approval, the stock fell on the news.
In addition to diabetes treatments, Eli Lilly's top five treatments for the last three months of 2023 featured a breast cancer drug (Verzenio) and psoriasis medication (Taltz). While weight loss is a big growth opportunity for Eli Lilly, with recently approved Zepbound just starting to generate revenue for the business, its operations are certainly broader than Novo Nordisk's.
Another reason the healthcare stock could face pressure this year is that it trades at a lofty 60 times forward earnings, which is based on analyst expectations of where its profits will be in the next year. By comparison, Novo Nordisk trades at a multiple of 39. With a much higher premium, there's more pressure for Eli Lilly to deliver on not just its weight loss and diabetes treatments but on its other drugs as well.
Will Novo Nordisk become the more valuable healthcare stock?
Over the past month, shares of Eli Lilly have fallen by about 3% while Novo Nordisk stock has risen by close to 7%. The gap is shrinking between these two companies and there's a possibility it narrows even more narrow later this year, depending on how these businesses perform.
I don't, however, expect Novo Nordisk to become the more valuable company. Eli Lilly is simply too strong, and with Zepbound in its very early innings of generating revenue and the approval of donanemab still a strong possibility, the recent pullback in price may only prove to be temporary.
Overall, these are two solid healthcare stocks and whichever you decide to invest in may ultimately depend on whether you prefer to focus on the broader and pricier business (Eli Lilly) or a slightly cheaper company whose priorities center around diabetes and weight loss (Novo Nordisk). But with stellar results and exciting futures ahead, both of these stocks can be great buys.
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Derf, >> NVO <<
Yes, a solid long term stock for sure. They are cleaning up on that weight loss drug (re-purposed diabetes med). I have a lot of the big pharma stocks because of their great long term charts, but big pharma is one sleazy sector imo. Of course the same can be said for many other sectors, like consumer (junk food), aerospace / defense (war industry), mining, energy, tech, finance, just about everything. I guess there's no way around it.
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Surprised you aren't talking about $NVO more
Looks like SMCI has found its current fair market price....
Supermicro Announces Pricing of Public Offering of Common Stock
March 19, 2024 11:44 PM Eastern Daylight Time
SAN JOSE, Calif.--(BUSINESS WIRE)--Super Micro Computer, Inc. (“Supermicro” or the “Company”) (Nasdaq: SMCI) , today announced the pricing of its previously announced underwritten public offering of 2,000,000 shares of its common stock at a public offering price of $875.00 per share. Additionally, the Company has granted the underwriter a 30-day option to purchase up to an additional 300,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds to Supermicro are expected to be $1.75 billion before deducting underwriting discounts, commissions and estimated offering expenses, and assuming no exercise of the underwriter’s option to purchase additional shares. The offering is expected to close on or about March 22, 2024, subject to customary closing conditions.
The Company currently intends to use the proceeds from the offering to support its operations, including for purchase of inventory and other working capital needs, manufacturing capacity expansion and increased R&D investments.
Goldman Sachs & Co. LLC is acting as sole underwriter and sole book-running manager for the offering.
The offering is being made pursuant to an effective registration statement on Form S-3 that was filed with the Securities and Exchange Commission (the “SEC”) on March 19, 2024. A final prospectus relating to the offering will be filed with the SEC and may be obtained, when available, by contacting Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.