DaveAlan/iStock Unreleased via Getty Images Characterized as an airline that is asymmetrically and unfavorably exposed to the fuel shock impacting the airline industry, Alaska Air Group ( ALK ) was downgraded to Sell from Buy by Citi Research amid expectations that the carrier has misjudged the future price of jet fuel and has little leverage to compensate with higher passenger revenue. Alaska Air...
DaveAlan/iStock Unreleased via Getty Images Characterized as an airline that is asymmetrically and unfavorably exposed to the fuel shock impacting the airline industry, Alaska Air Group ( ALK ) was downgraded to Sell from Buy by Citi Research amid expectations that the carrier has misjudged the future price of jet fuel and has little leverage to compensate with higher passenger revenue. Alaska Air’s ( ALK ) $4.50 fuel guidance for the upcoming quarter was set at a near relative low, especially with West Coast spot jet fuel at risk of breaking $5. “Therefore, if ALK is in a situation where it will have to pay asymmetrically higher fuel prices for some time, the company needs a strategy for generating unusually high [revenue per available seat mile] growth vs. peers as well,” says Citi analyst John Godyn. “Unfortunately, recent results clearly demonstrate this isn’t the case,” Godyn adds, given that ALK is both a fuel exposure underperformer and RASM growth underperformer, especially given ALK’s relatively insufficient capacity cuts as it relates to the fuel shocks. By Godyn’s definition, a “supermajor” airline has strong premium product offerings, international exposure, value-added services, and less price-elastic passengers. And as a “supermajor” airline, Alaska Air Group ( ALK ) should be better positioned to drive RASM higher through the fuel shock. But Godyn believes ALK has demonstrated through this earnings season that the carrier is not in the supermajor cohort, “and we expect this theme to continue as long as the fuel shock is pressuring the industry,” he says. While ALK management believes it has a strong chance of reaching $10 EPS in 2027, Godyn suspects this target will be revisited this year. And management’s reluctance to address this overly ambitious target is creating a severe risk of the street maintaining a bullish consensus, as well as creating an overhang for the stock. “To us it appears inevitable that $10 in 2027 isn’t realistic, and we expect m...
Luis Alvarez Equity markets are underpricing geopolitical risks even as bond and commodity markets show signs of distress, according to Joachim Clement, head of strategy at Panmure Liberum. Despite an ongoing war in the Middle East and oil prices recently spiking to $126 a barrel, the S&P 500 ( SP500 ) and Nasdaq ( COMP:IND ) posted their best monthly gains since 2020 in April. “I think equity mar...
Luis Alvarez Equity markets are underpricing geopolitical risks even as bond and commodity markets show signs of distress, according to Joachim Clement, head of strategy at Panmure Liberum. Despite an ongoing war in the Middle East and oil prices recently spiking to $126 a barrel, the S&P 500 ( SP500 ) and Nasdaq ( COMP:IND ) posted their best monthly gains since 2020 in April. “I think equity markets are too complacent,” Clement said in an interview with CNBC. “If you look at bond markets and the movements in treasuries, gilt yields, German bonds, etc., it looks a little bit more like their hair is on fire. And if you ask any commodity trader these days, their hair is definitely on fire.” While acknowledging the disconnect between equity and bond markets, Clement believes bond yields have overshot and are currently too high. This presents opportunities in long-duration equities, particularly in sectors like utilities and real estate that would benefit if long-term yields decline. He noted that investors are largely focused on the AI trade and strong tech earnings rather than geopolitical concerns. The strategist expressed caution about hyperscalers despite the ongoing tech rally. “The moment the CapEx guidance explodes, investors really don’t like it,” he said, warning that higher energy prices and memory chip costs will eventually catch up with these companies. He sees better opportunities in the software space and hardware-focused companies like Apple that are less capital expenditure-dependent. Regarding monetary policy, Clement remains confident the Federal Reserve will cut interest rates in the second half of the year. He pointed to signs that the U.S. economy is struggling outside the tech sector, with households and businesses grappling with high-energy prices and weak job market conditions. The incoming Fed chair, Kevin Walsh, is expected to shift focus toward full employment and supporting the labor market. For European markets, Clement noted that the ECB ...
In this article JPY= Follow your favorite stocks CREATE FREE ACCOUNT Bird's-eye view of central Tokyo including Tokyo Tower at sunrise hours. Vladimir Zakharov | Moment | Getty Images The Japanese yen surged against the dollar on Friday, extending gains that came the previous day after officials in Tokyo said they stood ready to intervene in the foreign exchange market. Friday saw the Japanese cur...
In this article JPY= Follow your favorite stocks CREATE FREE ACCOUNT Bird's-eye view of central Tokyo including Tokyo Tower at sunrise hours. Vladimir Zakharov | Moment | Getty Images The Japanese yen surged against the dollar on Friday, extending gains that came the previous day after officials in Tokyo said they stood ready to intervene in the foreign exchange market. Friday saw the Japanese currency rise as much as 0.7% versus the greenback, extending a Thursday rally that saw it jump by as much as 3% against the dollar. By 5:35 a.m. ET, the yen had pared a lot of Friday's gains, but erased the losses incurred since the U.S.-Iran war began on Feb. 28. Stock Chart Icon Stock chart icon USD/JPY On Thursday, Reuters reported that Japanese officials had stepped in to prop up the faltering yen by buying the currency, citing anonymous sources. "I won't comment on what we'll do ahead. But I will tell you that Japan's Golden Week holidays have just started," Japan's top foreign exchange diplomat Atsushi Mimura later told reporters , according to the news agency, fueling speculation that further intervention was in the cards. It came after Japanese Finance Minister Satsuki Katayama's said on Thursday that officials were nearing "decisive action" in the FX market, as the yen fell to a 1-year low of around 160.72 against the dollar. A weak yen can provide a boost to the domestic economy — for example, by making Japanese goods more attractive to overseas buyers. But it can also have adverse effects, such as making imports more expensive — exacerbating a key problem the country is facing as the conflict in the Middle East drags on. Japan is a net importer of oil, with more than 90% of its crude oil imports sourced from the Middle East. The spike in oil prices prompted by the effective closure of the Strait of Hormuz, a critical shipping route that has been a central point of contention throughout the two-month Iran war, has fueled concerns about the outlook for Japan's econom...
winhorse/iStock Unreleased via Getty Images Apple ( AAPL ) was in the spotlight on Friday after it reported better-than-expected results for the fiscal second-quarter, as the iPhone 17 line continued to impress consumers. But its guidance for the coming quarter, specifically around gross margins, stunned even the most ardent bulls on Wall Street. In a good way. Margin worries ease Morgan Stanley a...
winhorse/iStock Unreleased via Getty Images Apple ( AAPL ) was in the spotlight on Friday after it reported better-than-expected results for the fiscal second-quarter, as the iPhone 17 line continued to impress consumers. But its guidance for the coming quarter, specifically around gross margins, stunned even the most ardent bulls on Wall Street. In a good way. Margin worries ease Morgan Stanley analyst Erik Woodring said the guidance for gross margins of 47.5% to 48.5% in the coming quarter, which includes “significantly” higher memory costs, was a pleasant surprise. “Revs and profit strength are persisting, including a remarkable June qtr margin guide, leaving us more confident in AAPL's ability to mitigate record cost inflation,” Woodring wrote in a note to clients. “All in, we think last night's report was the clearing event Apple needed to see shares outperform into the September iPhone launch,” he added. Woodring has an Overweight rating on Apple and upped his price target to $330 from $315. For the coming quarter, Apple expects total revenue to grow between 14% and 17% year-over-year, well above the 9.3% that analysts were expecting. Services revenue is expected to be “similar” to the March quarter, even after getting rid of favorable moves in the foreign exchange market. Specifically for the rising memory costs, outgoing Apple CEO Tim Cook said on the earnings call that the company would “look at a range of options” on how to deal with it. Product momentum and supply chain expertise While the concerns about margins may have been put to bed — for now— J.P. Morgan analyst Samik Chatterjee also noted that Apple's product momentum is exceptional right now. “Contrary to investor concerns, the bigger hurdle for Apple appears to be on the supply side, specifically the availability of advanced-node processors needed to keep pace with stronger-than-expected demand for iPhones, as well as incrementally for Macs following the recent surge in demand for the Mac mini, Ma...
Datavault AI Inc. ( NASDAQ: DVLT ) on Friday said it has signed a binding letter of intent to acquire CyberCatch Holdings ( CYBE:CA ) in an all-stock transaction valued at about C$136.8 million, as it looks to expand its AI-driven and quantum-resistant cyber risk mitigation capabilities. Under the proposed deal, Datavault AI will issue about 49.9 million shares to acquire all outstanding CyberCatc...
Datavault AI Inc. ( NASDAQ: DVLT ) on Friday said it has signed a binding letter of intent to acquire CyberCatch Holdings ( CYBE:CA ) in an all-stock transaction valued at about C$136.8 million, as it looks to expand its AI-driven and quantum-resistant cyber risk mitigation capabilities. Under the proposed deal, Datavault AI will issue about 49.9 million shares to acquire all outstanding CyberCatch shares at C$5.11 apiece. Following the transaction, Datavault AI shareholders are expected to own roughly 92.48% of the combined company, with CyberCatch shareholders holding about 7.52%. The acquisition, which is subject to regulatory, shareholder and other approvals, will see CyberCatch operate as a subsidiary based in San Diego. CyberCatch CEO Sai Huda is expected to lead the unit as president, reporting to Datavault AI CEO Nathaniel T. Bradley. The companies said the deal aims to integrate CyberCatch’s AI-enabled cyber risk and compliance platform into Datavault AI’s secure GPU ecosystem, targeting growing demand for advanced cybersecurity solutions and positioning the combined firm for the anticipated shift to post-quantum cryptography. They cited rising cyber threats and regulatory requirements, as well as expectations that quantum computing could challenge existing encryption as early as 2029, as key drivers behind the transaction. DVLT +1.96% premarket to $0.74 . Source: Press Release More on Datavault AI Datavault AI Inc. (DVLT) Q4 2025 Earnings Call Transcript Datavault AI Inc. 2025 Q4 - Results - Earnings Call Presentation Datavault AI Raises FY25 Revenue Guidance - What It Means For Investors Datavault AI, King Mining launch $150M gold tokenization deal Datavault AI signs term sheet for $120M funding from Scilex