Sven Piper Jed Dorsheimer, group head of the energy and power technologies sector at William Blair, sees a logical path for Tesla ( TSLA ) to eventually merge with SpaceX ( SPACE ) and xAI ( X.AI ), citing the strategic alignment of power, energy, and autonomy across Elon Musk’s portfolio of companies. The analyst noted that Tesla’s ( TSLA ) transition toward humanoid robots and autonomous vehicle...
Sven Piper Jed Dorsheimer, group head of the energy and power technologies sector at William Blair, sees a logical path for Tesla ( TSLA ) to eventually merge with SpaceX ( SPACE ) and xAI ( X.AI ), citing the strategic alignment of power, energy, and autonomy across Elon Musk’s portfolio of companies. The analyst noted that Tesla’s ( TSLA ) transition toward humanoid robots and autonomous vehicles creates natural synergies that could benefit from a unified corporate structure. Speaking in an interview with CNBC, Dorsheimer weighed in on the growing speculation about a potential combination of Musk’s enterprises. His comments followed Wedbush analyst Dan Ives’ assessment that “there’s a growing chance now that Tesla ( TSLA ) will eventually be merged into SpaceX x AI over time, grow the AI ecosystem in space and on Earth.” Dorsheimer pointed to Tesla’s ( TSLA ) decision to scale back Model S and X production in favor of manufacturing its Optimus humanoid robots as evidence of the company’s shifting priorities. “The merger of power, energy, and autonomy is all really coming together,” he said, adding that such a combination “makes sense” from a strategic perspective. However, the analyst acknowledged significant challenges with space-based AI infrastructure, particularly around reliability. “Redundancy is going to be the big issue,” Dorsheimer explained, noting that if “you have a solar panel, or you have something go down in space, obviously, that’s going to be a real challenge.” The shift toward autonomous robotaxis could fundamentally reshape Tesla’s ( TSLA ) automotive business, Dorsheimer suggested. He noted that the average car utilization in the U.S. is only about 5%, and as autonomy takes hold, “the need for the number of cars actually goes down, dramatically.” Dorsheimer also highlighted Tesla’s ( TSLA ) energy division as a “silent winner” during this transition period, arguing that the return on invested capital for the energy business exceeds that of the ...
Decaying town centres are fuelling a sense of disillusionment with mainstream parties. Labour’s regeneration strategy must be bolder “In the 60s it was a fabulous place to live,” sighed one resident of the north-east English town of Newton Aycliffe, in an interview published last week as part of our investigation into the state of Britain’s high streets. “The town centre was absolutely beautiful …...
Decaying town centres are fuelling a sense of disillusionment with mainstream parties. Labour’s regeneration strategy must be bolder “In the 60s it was a fabulous place to live,” sighed one resident of the north-east English town of Newton Aycliffe, in an interview published last week as part of our investigation into the state of Britain’s high streets. “The town centre was absolutely beautiful … You would be ashamed to bring someone here now. It’s unrecognisable.” Similar perceptions of decline are now the norm across the nation. In postwar Britain, high streets became the thriving hubs of a more affluent society and a source of local identity and pride. But almost 13,000 shops closed in 2024 – an attrition rate of around 37 a day, which particularly affected the north of England, the Midlands and deprived coastal areas. The emergence of superstores and retail parks, and the post‑pandemic boom in internet shopping, has hollowed out the centres of towns and left a gaping sense of loss. Continue reading...
Skyryse, an El Segundo, California-based aviation automation startup, has raised more than $300 million in a Series C investment, pushing its valuation to $1.15 billion and into unicorn territory. The round, which was announced Tuesday and led by Autopilot Ventures, provided a multi-million-dollar accelerant for the startup as it nears the end of a lengthy Federal Aviation Administration certifica...
Skyryse, an El Segundo, California-based aviation automation startup, has raised more than $300 million in a Series C investment, pushing its valuation to $1.15 billion and into unicorn territory. The round, which was announced Tuesday and led by Autopilot Ventures, provided a multi-million-dollar accelerant for the startup as it nears the end of a lengthy Federal Aviation Administration certification process for its flight control system. The capital will also be used to integrate its operating system, known as SkyOS, across numerous aircraft, including U.S. military Black Hawk helicopters. Other investors in this round include Fidelity Management & Research Company, ArrowMark Partners, Atreides Management LP, BAM Elevate, Baron Capital Group, Durable Capital Partners, Positive Sum, Qatar Investment Authority, RCM Private Markets Fund managed by Rokos Capital Management, and Woodline Partners. The startup, which was founded in 2016, has raised more than $605 million in equity capital. Skyryse has made inroads with investors as well as the U.S. military, emergency medical service operators, law enforcement, and private operators for its simplified flight system. The startup has stripped out dozens of mechanical flight controls like gauges and switches and replaced them with a system containing several flight computers that automate the more complicated and dangerous aspects of flying. This is not a fully autonomous system; a pilot must still handle the operations. But it’s designed to automate the trickiest aspects of flying, enhance the skills of pilots, and improve safety. That simplicity and ease of operation — a literal swipe of the finger on a touchscreen — has won over companies like United Rotorcraft, Air Methods, and Mitsubishi Corporation, which have contracts with Skyryse to integrate SkyOS on a variety of helicopters and airplanes. Skyryse started building and testing its system on helicopters, one of the most unstable aircraft to operate. But the idea is...
Earnings Call Insights: PayPal Holdings, Inc. (PYPL) Q4 2025 Management View Jamie Miller, Executive VP and Chief Financial & Operating Officer, announced a leadership change: "The Board has appointed Enrique Lores, who was most recently our Board Chair, as the next President and CEO of PayPal effective March 1 to accelerate execution and bring greater discipline to how we implement our strategic ...
Earnings Call Insights: PayPal Holdings, Inc. (PYPL) Q4 2025 Management View Jamie Miller, Executive VP and Chief Financial & Operating Officer, announced a leadership change: "The Board has appointed Enrique Lores, who was most recently our Board Chair, as the next President and CEO of PayPal effective March 1 to accelerate execution and bring greater discipline to how we implement our strategic priorities as we enter our next phase of growth." Miller acknowledged, "We recognize as a company that our execution has not been what it needs to be... we are taking immediate steps to address that reality." Miller stated PayPal delivered "solid 2025 performance across multiple dimensions," highlighting Venmo revenue growth of approximately 20% to $1.7 billion excluding interest income, total active accounts surpassing 100 million, and 14% ARPA growth for monthly actives. She also pointed to turnaround in Enterprise Payments, which drove "nearly half of our 6% transaction margin dollar growth." Miller noted that Buy Now, Pay Later (BNPL) delivered over $40 billion in total payment volume (TPV) in 2025, growing more than 20% year-over-year. Miller called out underperformance in online branded checkout: "In the fourth quarter, online branded checkout TPV grew 1% on a currency-neutral basis, down from 5% in the third quarter." She attributed the deceleration to U.S. retail weakness, international headwinds—particularly in Germany—and slowdown in several high-growth verticals. Miller described new strategic priorities for 2026: "This work in branded checkout has brought three priorities into clear focus: experience, presentment and selection." She highlighted a renewed focus on frictionless consumer experiences, biometric and passkey adoption, competitive placement, and loyalty programs. Miller shared, "About 36% of our consumers are now what we would consider checkout-ready, which means they have biometric authentication in our app or with a device passkey. This is a 15 perce...
Earnings Call Insights: Spire Inc. (SR) Q1 2026 Management View Scott Doyle, President and CEO, opened the call by highlighting the company’s response during Winter Storm Fern, which resulted in record natural gas demand and showcased the reliability of the company’s utility operations. Doyle stated, “Despite extreme conditions, natural gas once again distinguished itself, underscoring that direct...
Earnings Call Insights: Spire Inc. (SR) Q1 2026 Management View Scott Doyle, President and CEO, opened the call by highlighting the company’s response during Winter Storm Fern, which resulted in record natural gas demand and showcased the reliability of the company’s utility operations. Doyle stated, “Despite extreme conditions, natural gas once again distinguished itself, underscoring that direct use of natural gas remains the most reliable and affordable way to heat your home.” Doyle announced adjusted earnings of $1.77 per share, an increase from $1.34 per share a year ago, attributing the improvement to “solid execution in our Gas Utility business, supported by new rates across all of the utilities.” He emphasized that cost management and customer affordability remain central to Spire’s strategy, with ongoing investments in system improvements and safety. Regulatory updates included new Missouri rates effective in October and a $30.3 million revenue increase request under the Infrastructure System Replacement Surcharge, with rates expected by May. Rate updates in Alabama and Gulf were completed in December. Doyle reaffirmed the company’s 2026 adjusted EPS guidance of $5.25 to $5.45 and its 2027 guidance of $5.65 to $5.85, alongside a long-term 5% to 7% adjusted EPS growth target. He confirmed the 10-year capital plan of $11.2 billion and noted that Spire remains on track to close the acquisition of the Piedmont Tennessee business in calendar Q1 2026. Adam Woodard, Executive VP & CFO, stated, “For the first quarter, we reported adjusted earnings of $108 million or $1.77 per share compared to $81 million or $1.34 per share a year ago.” Woodard explained that Gas Utilities earned $104 million, up $26 million year-over-year, while Gas Marketing and Midstream also contributed positively, partially offset by increased corporate costs and interest expense. Outlook The company reaffirmed its 2026 adjusted EPS guidance of $5.25 to $5.45 per share, excluding the pending T...
Back seats aren't as safe as they should be. A crash test is trying to help toggle caption Carlos Bernate for NPR For three decades, the Insurance Institute for Highway Safety (IIHS) has been smashing vehicles with an adult-sized dummy sitting in the front seat, simulating a type of head-on collision where two vehicles are slightly offset. It's always been a challenging test, above and beyond the ...
Back seats aren't as safe as they should be. A crash test is trying to help toggle caption Carlos Bernate for NPR For three decades, the Insurance Institute for Highway Safety (IIHS) has been smashing vehicles with an adult-sized dummy sitting in the front seat, simulating a type of head-on collision where two vehicles are slightly offset. It's always been a challenging test, above and beyond the minimum standards that car companies are legally required to meet. The IIHS conducts tests and independently awards safety ratings that are meant to reward companies for superior safety, well exceeding minimum standards. But a few years ago, IIHS realized they needed to make this test even harder. The original test focused on that front seat. It's a frontal collision, after all; when the test was first designed, the rear was obviously the safer place to be. Sponsor Message Then automakers made enormous progress in making head-on collisions more survivable for front seat occupants. Crumple zones got better at absorbing force. Seat belts got more sophisticated. After a few decades of these improvements, real-world injury data showed that fatalities had, counterintuitively, become more common in the back seat. And not just a little more common; the risk was 46% higher. "What we saw when we went back and looked at the field data is that while we've made lots of improvements for the front seat, the rear seat hadn't kept pace," says Jessica Jermakian, the senior vice president of vehicle research for IIHS. IIHS continues to recommend that younger children ride in the back seat, thanks in large part to the unique risks posed to those children by frontal airbags. But for teenagers wearing seatbelts, the back seat is now riskier than the front. Same for adult back-seat passengers — whose numbers have increased as ridesharing has caught on. So IIHS added a small dummy in the back seat in 2022, and refined the test in 2024 to make it even more stringent. The test can be surprisingly h...
Less crowded classrooms would make interacting with teachers easier, benefiting pupils including those with Send There is no single, ideal class size – just as there is no one model of the perfect teacher. But as school‑age audiences of Matilda the Musical or the Harry Potter films can testify, UK classrooms usually have more children in them than fictional ones. What these young people probably d...
Less crowded classrooms would make interacting with teachers easier, benefiting pupils including those with Send There is no single, ideal class size – just as there is no one model of the perfect teacher. But as school‑age audiences of Matilda the Musical or the Harry Potter films can testify, UK classrooms usually have more children in them than fictional ones. What these young people probably do not know is that their classrooms are also fuller than many real ones abroad. A report from the Organisation for Economic Co-operation and Development found that the UK has some of the largest primary groups in the industrialised world. Does this matter, and how much? For many parents and teachers, it is common sense that smaller classes are preferable – as long as they are small by design and not because the school is an unpopular, unsuccessful one. The far lower pupil-teacher ratio of independent schools is widely viewed as giving their pupils an advantage over state-educated peers. Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here . Continue reading...
The OfS is scheduled to begin its defence on Tuesday, and is expected to say its role in safeguarding the "fundamental values" of freedom of speech and academic freedom is at the heart of the case.
The OfS is scheduled to begin its defence on Tuesday, and is expected to say its role in safeguarding the "fundamental values" of freedom of speech and academic freedom is at the heart of the case.
In trading on Tuesday, shares of Kingsoft Cloud Holdings Ltd (Symbol: KC) crossed below their 200 day moving average of $13.14, changing hands as low as $13.03 per share. Kingsoft Cloud Holdings Ltd shares are currently trading down about 4.4% on the day. The chart below shows the one year performance of KC shares, versus its 200 day moving average: Looking at the chart above, KC's low point in it...
In trading on Tuesday, shares of Kingsoft Cloud Holdings Ltd (Symbol: KC) crossed below their 200 day moving average of $13.14, changing hands as low as $13.03 per share. Kingsoft Cloud Holdings Ltd shares are currently trading down about 4.4% on the day. The chart below shows the one year performance of KC shares, versus its 200 day moving average: Looking at the chart above, KC's low point in its 52 week range is $10.29 per share, with $22.26 as the 52 week high point — that compares with a last trade of $13.09. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of Flywire Corp (Symbol: FLYW) crossed below their 200 day moving average of $13.11, changing hands as low as $13.04 per share. Flywire Corp shares are currently trading down about 3% on the day. The chart below shows the one year performance of FLYW shares, versus its 200 day moving average: Looking at the chart above, FLYW's low point in its 52 week range is $8.20 p...
In trading on Tuesday, shares of Flywire Corp (Symbol: FLYW) crossed below their 200 day moving average of $13.11, changing hands as low as $13.04 per share. Flywire Corp shares are currently trading down about 3% on the day. The chart below shows the one year performance of FLYW shares, versus its 200 day moving average: Looking at the chart above, FLYW's low point in its 52 week range is $8.20 per share, with $23.40 as the 52 week high point — that compares with a last trade of $13.02. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of Karooooo Ltd (Symbol: KARO) crossed below their 200 day moving average of $48.64, changing hands as low as $48.00 per share. Karooooo Ltd shares are currently trading down about 3.6% on the day. The chart below shows the one year performance of KARO shares, versus its 200 day moving average: Looking at the chart above, KARO's low point in its 52 week range is $35.8...
In trading on Tuesday, shares of Karooooo Ltd (Symbol: KARO) crossed below their 200 day moving average of $48.64, changing hands as low as $48.00 per share. Karooooo Ltd shares are currently trading down about 3.6% on the day. The chart below shows the one year performance of KARO shares, versus its 200 day moving average: Looking at the chart above, KARO's low point in its 52 week range is $35.88 per share, with $63.36 as the 52 week high point — that compares with a last trade of $47.82. Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Thursday, shares of Airbnb Inc (Symbol: ABNB) crossed below their 200 day moving average of $135.44, changing hands as low as $134.61 per share. Airbnb Inc shares are currently trading down about 5.5% on the day. The chart below shows the one year performance of ABNB shares, versus its 200 day moving average: Looking at the chart above, ABNB's low point in its 52 week range is $110.3...
In trading on Thursday, shares of Airbnb Inc (Symbol: ABNB) crossed below their 200 day moving average of $135.44, changing hands as low as $134.61 per share. Airbnb Inc shares are currently trading down about 5.5% on the day. The chart below shows the one year performance of ABNB shares, versus its 200 day moving average: Looking at the chart above, ABNB's low point in its 52 week range is $110.38 per share, with $170.10 as the 52 week high point — that compares with a last trade of $134.77. The ABNB DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Booking Holdings Inc (Symbol: BKNG), where a total volume of 4,205 contracts has been traded thus far today, a contract volume which is representative of approximately 420,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 192....
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Booking Holdings Inc (Symbol: BKNG), where a total volume of 4,205 contracts has been traded thus far today, a contract volume which is representative of approximately 420,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 192.1% of BKNG's average daily trading volume over the past month, of 218,855 shares. Especially high volume was seen for the $4850 strike call option expiring February 06, 2026 , with 137 contracts trading so far today, representing approximately 13,700 underlying shares of BKNG. Below is a chart showing BKNG's trailing twelve month trading history, with the $4850 strike highlighted in orange: W.W. Grainger Inc. (Symbol: GWW) options are showing a volume of 3,574 contracts thus far today. That number of contracts represents approximately 357,400 underlying shares, working out to a sizeable 143.6% of GWW's average daily trading volume over the past month, of 248,905 shares. Especially high volume was seen for the $1100 strike call option expiring December 18, 2026, with 1,074 contracts trading so far today, representing approximately 107,400 underlying shares of GWW. Below is a chart showing GWW's trailing twelve month trading history, with the $1100 strike highlighted in orange: And Ares Management Corp (Symbol: ARES) options are showing a volume of 14,036 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 63% of ARES's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $105 strike put option expiring January 15, 2027, with 4,100 contracts trading so far today, representing approximately 410,000 underlying shares of ARES. Below is a chart showing ARES's trailing twelve month trading history, with the $105 strike highlighted in orange...
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in The Trade Desk Inc (Symbol: TTD), where a total volume of 74,494 contracts has been traded thus far today, a contract volume which is representative of approximately 7.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60...
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in The Trade Desk Inc (Symbol: TTD), where a total volume of 74,494 contracts has been traded thus far today, a contract volume which is representative of approximately 7.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.2% of TTD's average daily trading volume over the past month, of 12.4 million shares. Especially high volume was seen for the $20 strike put option expiring January 15, 2027 , with 6,404 contracts trading so far today, representing approximately 640,400 underlying shares of TTD. Below is a chart showing TTD's trailing twelve month trading history, with the $20 strike highlighted in orange: Intuit Inc (Symbol: INTU) saw options trading volume of 16,388 contracts, representing approximately 1.6 million underlying shares or approximately 55.9% of INTU's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $430 strike put option expiring February 20, 2026, with 800 contracts trading so far today, representing approximately 80,000 underlying shares of INTU. Below is a chart showing INTU's trailing twelve month trading history, with the $430 strike highlighted in orange: And FedEx Corp (Symbol: FDX) saw options trading volume of 9,756 contracts, representing approximately 975,600 underlying shares or approximately 49.3% of FDX's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $332.50 strike call option expiring February 20, 2026, with 1,015 contracts trading so far today, representing approximately 101,500 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $332.50 strike highlighted in orange: For the various different available expirations for TTD options, INTU options, or FDX options, visit StockOpt...
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in DaVita Inc (Symbol: DVA), where a total of 4,912 contracts have traded so far, representing approximately 491,200 underlying shares. That amounts to about 48.8% of DVA's average daily trading volume over the past month of 1.0 million shares. Particularly high volume was seen for the $145 strike ...
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in DaVita Inc (Symbol: DVA), where a total of 4,912 contracts have traded so far, representing approximately 491,200 underlying shares. That amounts to about 48.8% of DVA's average daily trading volume over the past month of 1.0 million shares. Particularly high volume was seen for the $145 strike call option expiring February 20, 2026 , with 466 contracts trading so far today, representing approximately 46,600 underlying shares of DVA. Below is a chart showing DVA's trailing twelve month trading history, with the $145 strike highlighted in orange: Cadence Design Systems Inc (Symbol: CDNS) options are showing a volume of 9,660 contracts thus far today. That number of contracts represents approximately 966,000 underlying shares, working out to a sizeable 47.9% of CDNS's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $270 strike put option expiring February 20, 2026, with 1,343 contracts trading so far today, representing approximately 134,300 underlying shares of CDNS. Below is a chart showing CDNS's trailing twelve month trading history, with the $270 strike highlighted in orange: And Genuine Parts Co. (Symbol: GPC) options are showing a volume of 5,136 contracts thus far today. That number of contracts represents approximately 513,600 underlying shares, working out to a sizeable 45.7% of GPC's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $150 strike call option expiring May 15, 2026, with 5,103 contracts trading so far today, representing approximately 510,300 underlying shares of GPC. Below is a chart showing GPC's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for DVA options, CDNS options, or GPC options, visit StockOptionsChannel.com. Today's Mos...
In trading on Tuesday, shares of Global-E Online Ltd (Symbol: GLBE) crossed below their 200 day moving average of $35.46, changing hands as low as $33.78 per share. Global-E Online Ltd shares are currently trading off about 7.5% on the day. The chart below shows the one year performance of GLBE shares, versus its 200 day moving average: Looking at the chart above, GLBE's low point in its 52 week r...
In trading on Tuesday, shares of Global-E Online Ltd (Symbol: GLBE) crossed below their 200 day moving average of $35.46, changing hands as low as $33.78 per share. Global-E Online Ltd shares are currently trading off about 7.5% on the day. The chart below shows the one year performance of GLBE shares, versus its 200 day moving average: Looking at the chart above, GLBE's low point in its 52 week range is $26.64 per share, with $63.69 as the 52 week high point — that compares with a last trade of $34.05. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of EverCommerce Inc (Symbol: EVCM) crossed below their 200 day moving average of $10.11, changing hands as low as $10.06 per share. EverCommerce Inc shares are currently trading down about 2.5% on the day. The chart below shows the one year performance of EVCM shares, versus its 200 day moving average: Looking at the chart above, EVCM's low point in its 52 week range ...
In trading on Tuesday, shares of EverCommerce Inc (Symbol: EVCM) crossed below their 200 day moving average of $10.11, changing hands as low as $10.06 per share. EverCommerce Inc shares are currently trading down about 2.5% on the day. The chart below shows the one year performance of EVCM shares, versus its 200 day moving average: Looking at the chart above, EVCM's low point in its 52 week range is $6.22 per share, with $12.3505 as the 52 week high point — that compares with a last trade of $10.10. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
A herd of PayPal (PYPL) investors is sprinting for the exit, but the math suggests they might be running away from a fortune. "People will be puking in the hole this morning, and guess who will be buying it in the next few days?" Great Hill Capital chair Thomas Hayes said on Yahoo Finance's Opening Bid. "After the blackout period ends, the weak sisters will be selling, PayPal will be buying, and t...
A herd of PayPal (PYPL) investors is sprinting for the exit, but the math suggests they might be running away from a fortune. "People will be puking in the hole this morning, and guess who will be buying it in the next few days?" Great Hill Capital chair Thomas Hayes said on Yahoo Finance's Opening Bid. "After the blackout period ends, the weak sisters will be selling, PayPal will be buying, and the story will go on." While the market blinked twice at PayPal's latest guidance, Hayes argued that the visceral reaction from spooked retail investors is actually a massive buy signal. For those willing to ignore the noise, the numbers show a cash-generating machine that is effectively buying itself back at a discount. The biggest catalyst for this shift is a change in the corner office. PayPal announced Tuesday the appointment of Enrique Lores, the veteran chief executive from HP (HPQ), to lead the turnaround. In an interview, Lores noted his immediate focus would be to "improve momentum" while making "progress on initiatives" already in place. Hayes noted that the firm was a "little surprised" at the appointment of Lores, but the long-term prospects are promising. While skepticism looms around PayPal's perceived lack of cool new products, Hayes points to a boring but highly profitable playbook that Lores mastered at HP. Under Lores, HP used aggressive stock buybacks to make remaining shares more valuable rather than inventing a new flashy gadget. By cutting the share count in half, HP made every remaining share twice as valuable. Hayes believes PayPal's new leadership is about to run that same play. While panicked investors sell, the company can use its extra cash to swallow its stock while it's cheap. "Enrique Lores is going to spike the football," Hayes said. PayPal is churning out $6 billion of free cash flow annually and plans to spend nearly all of it buying back shares. At today's prices, PayPal could retire 15% of the entire company in just the next 12 months. Pay...