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🛡️ Google’s Big Cybersecurity Move
Plus, more bad news for Boeing
Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟥 | US Stocks Tumbled on Thursday. Each of the three major indexes fell by roughly 1% as the stock market sell-off appears to be broadening outside of big-tech names.
📈 | One Notable Gainer: Shares of DR Horton surged 10% after the home builder reported quarterly profits that beat Wall Street estimates. DR Horton also announced a new $4 billion buyback authorization.
📉 | One Notable Decliner: Alaska Air Group’s stock fell 7% after reporting that it missed revenue estimates for Q2 and trimmed its full-year earnings guidance.
🛡️ | Tomorrow's Trade: Google’s Big Cybersecurity Move. Scroll down for more.
Plus, today’s partner helps you navigate the regulatory process in the medtech arena.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Bullish 🐂
🟨⬜️⬜️⬜️⬜️⬜️ Bearish 🐻
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
INFY (+8%) US-listed shares of digital services company Infosys popped after it reported better-than-expected fiscal first-quarter figures (Motley Fool)
CTAS (+5%) Cintas reported Q4 earnings results that beat expectations, with an 8.2% revenue increase compared to the same period a year ago (YF)
LLY (-6%) Eli Lilly extended its losses from the previous trading session after Roche announced promising weight drug trial data (CNBC)
CDNS (-4%) Shares of Cadence Design Systems are down 11% this week after insiders sold $4.8 million worth of shares, suggesting hesitancy (YF)
META (+3%) Meta’s stock rose after news broke that it is in talks to buy a 5% stake in Ray-Ban maker EssilorLuxottica (Reuters)
TOGETHER WITH BSEM
The medtech arena is not the easiest to navigate given how many kinds of companies are in it. It’s all about finding emerging players like BSEM who have successfully navigated the regulatory process (a real barrier to entry) and show real growth.
Zack’s Small Cap Research recently increased its price target to $23.25, recognizing the company’s value after it reported Q1 financial results.
The firm believes is an opportunity to invest in a company that is both providing a vital service to the human population and providing economic value to shareholders when doing so.
Learn more about BioStem Technologies, Inc. (OTC: BSEM)
OVERHEARD ON THE STREET
Engadget: Meta has decided to withhold its multimodal AI models from the EU, citing a lack of clarity from European regulators.
WaPo: Boeing’s largest union said it will strike if its latest contract negotiations fail.
WSJ: Agriculture manufacturing company John Deere announced it is slashing its diversity initiatives after it was targeted by a conservative activist.
Fox Business: Ford is investing $3 billion to expand production capacity for one of its most popular and profitable vehicles, its F-Series Super Duty trucks.
Bloomberg: Goldman Sachs tactical strategist Scott Rubner claims the S&P 500 Index has nowhere to go but down.
TOMORROW’S TRADE IDEA, TODAY
A Pricey Deal
Alphabet (GOOG) is in the advanced stages of acquiring cybersecurity startup Wiz. Although the company is less than five years old, Alphabet has priced it at $23 billion. At that price, it would be Alphabet’s largest-ever acquisition, just two years after its $5.4 billion purchase of Mandiant, another cybersecurity company.
These two acquisitions indicate that Alphabet is going all in on cybersecurity.
Convincing the Powers That Be
The cybersecurity space can be turbulent, with companies often falling in and out of favor quickly. Despite strong efforts from companies like Microsoft (MSFT), no one company has risen as the most influential in the sector.
Even as a young company, Wiz boasted a $12 billion valuation following its May funding round, according to PitchBook. Its short existence should bode well for Alphabet in its attempt to convince government regulators to permit the sale.
Long Runway
Completing the acquisition is still likely to be a lengthy process for Alphabet. After all, it took Microsoft almost two years to finalize its purchase of Activision Blizzard last October. But the Google parent seems able to go the distance, currently sitting on around $95 billion in cash.
Wall Street views the deal as an opportunity for Alphabet to put some of its capital to work, which could be a positive catalyst for the company.
Are you bullish or bearish on Alphabet (GOOG) over the next 12 months? |
TOGETHER WITH BSEM
The medtech arena is not the easiest to navigate given how many kinds of companies are in it. It’s all about finding emerging players like BSEM who have successfully navigated the regulatory process (a real barrier to entry) and show real growth.
Zack’s Small Cap Research recently increased its price target to $23.25, recognizing the company’s value after it reported Q1 financial results.
The firm believes is an opportunity to invest in a company that is both providing a vital service to the human population and providing economic value to shareholders when doing so.
Learn more about BioStem Technologies, Inc. (OTC: BSEM)
ON OUR RADAR
Bloomberg: President Joe Biden canceled an additional $1.2 billion in student debt for 35,000 public servants today.
YF: BlackRock CEO Larry Fink says America’s $35 trillion national debt will be a big burden for our children unless the private sector is given room to grow.
Fortune: According to a survey from Alvarez & Marsal, 9.9% of UK companies were distressed last year, up from 8.4% last year.
UN: The United Nations claims the size of the world’s population in 2100 is now expected to be 6% lower, or 700 million fewer, than anticipated a decade ago.
Reuters: According to Moody’s July 3rd report, office vacancies hit a record 20.1% in the second quarter.
What did you think of today's edition? |
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