In this article APO ARES UBSG-CH ORCC OWL Follow your favorite stocks CREATE FREE ACCOUNT Apollo Global Management signage in New York on Dec. 5, 2023. Jeenah Moon | Bloomberg | Getty Images Private credit markets are facing fresh uncertainty as AI-driven tools start to pressure software companies, a major borrower group for private lenders. The software industry came under renewed pressure last w...
In this article APO ARES UBSG-CH ORCC OWL Follow your favorite stocks CREATE FREE ACCOUNT Apollo Global Management signage in New York on Dec. 5, 2023. Jeenah Moon | Bloomberg | Getty Images Private credit markets are facing fresh uncertainty as AI-driven tools start to pressure software companies, a major borrower group for private lenders. The software industry came under renewed pressure last week after artificial intelligence firm Anthropic unveiled new AI tools, sparking a sell-off in software data provider shares. The AI tools, developed by Anthropic, are designed to perform complex professional tasks that many software companies currently charge for, raising fresh concerns that AI could weaken traditional software business models. Shares of asset managers with large private credit franchises tumbled this week as investors fretted about how AI could upend borrowers' business models, pressure cash flows and ultimately lift default risks. Ares Management fell over 12% last week, while Blue Owl Capital lost over 8%. KKR declined almost 10%. TPG lost about 7%. Apollo Global and BlackRock fell over 1% and 5%, respectively. For comparison the S&P 500 declined by about 0.1%, while the tech-heavy Nasdaq fell 1.8%. The moves bring to fore a growing unease around private credit market which now has to brace for the impact from AI-driven disruption to the software sector that is heavily exposed to buyouts financed with opaque, illiquid loans, according to market watchers. "Enterprise software companies have been a favored sector for private credit lenders since 2020," PitchBook wrote in a report last week following the fallout, adding that many of the largest-ever unitranche //what's that?// loans, the favorite structure of the private credit market, have been software and tech companies. Software makes up a significant share of loans held by U.S. business development companies, accounting for about 17% of BDC investments by deal count, second only to commercial services...
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here are three unprofitable companiesto steer clear of and a few better alternat...
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here are three unprofitable companiesto steer clear of and a few better alternatives. Bandwidth (BAND) Trailing 12-Month GAAP Operating Margin: -1.7% Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ:BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms. Why Are We Wary of BAND? Revenue increased by 12.9% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Sky-high servicing costs result in an inferior gross margin of 38.8% that must be offset through increased usage Operating margin expanded by 2.2 percentage points over the last year as it scaled and became more efficient At $13.45 per share, Bandwidth trades at 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BAND. PubMatic (PUBM) Trailing 12-Month GAAP Operating Margin: -3.8% Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency. Why Should You Dump PUBM? Below-average net revenue retention rate of 107% suggests it has some trouble expanding within existing accounts Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment Free cash flow margin is forecasted to shrink by 8.4 percentage points in the coming year, suggesting the...
Like how a canon event must happen, we now have a new Linux release that brings better hardware support, improved peripheral handling, and some news on how development would continue in case the main torvalds/linux.git repository was to go away. Needless to say, even if some key people weren't around anymore, or were preoccupied with more urgent matters, the development of Linux wouldn't come to a...
Like how a canon event must happen, we now have a new Linux release that brings better hardware support, improved peripheral handling, and some news on how development would continue in case the main torvalds/linux.git repository was to go away. Needless to say, even if some key people weren't around anymore, or were preoccupied with more urgent matters, the development of Linux wouldn't come to a standstill. Anyhow, no new Linux release goes without Linus Torvalds having something to add: No big surprises anywhere last week, so 6.19 is out as expected - just as the US prepares to come to a complete standstill later today watching the latest batch of televised commercials. The betting man would expect them all to be AI-generated, but maybe some enterprising company decides to buck the trend? Doubtful, but there's always a slight chance. This coverage is based on the detailed reporting from Phoronix Linux Kernel 6.19: What's New? This release ushers in a formal continuity document for the kernel project. Basically, it's a plan for what happens if Linus Torvalds' Git repository becomes unavailable for whatever reason. Linux kernel engineer Dan Williams put this together after discussions at the 2025 Maintainer Summit and says the idea is quite straightforward. If the person (usually Linus) or people handling the mainline repository can't continue, the project needs a way to move forward quickly. Unlike last time, Linux 6.19 is not an LTS release. Linux kernel 6.18 remains the 2025 long-term support release with maintenance upgrades until December 2027. Intel Changes Intel's Trust Domain Extensions code received a major rework for KVM. These changes address issues that were causing the confidential computing feature to behave unpredictably in virtual machines. Then there's the audio support for Intel's upcoming Nova Lake processors. The kernel's sound drivers can now handle Nova Lake and Nova Lake S processors without needing much additional config work. Linear Address...
Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping ...
Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts. Luckily for you, we at StockStory have no conflicts of interest - our sole job is to help you find genuinely promising companies. Keeping that in mind, here is one stock likely to meet or exceed Wall Street’s lofty expectations and two where consensus estimates seem disconnected from reality. Two Stocks to Sell: Wolverine Worldwide (WWW) Consensus Price Target: $21.33 (15.5% implied return) Founded in 1883, Wolverine Worldwide (NYSE:WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony. Why Are We Out on WWW? Flat sales over the last five years suggest it must innovate and find new ways to grow Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 7.2% for the last two years Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Wolverine Worldwide is trading at $18.47 per share, or 14.4x forward P/E. To fully understand why you should be careful with WWW, check out our full research report (it’s free). Janus (JBI) Consensus Price Target: $9.30 (27.8% implied return) Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE:JBI) is a provider of easily accessible self-storage solutions. Why Are We Wary of JBI? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment Falling earnings per share over the last three years has some investors worried as s...
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could j...
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors. Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. Keeping that in mind, here is one volatile stock that could deliver huge gains and two that could just as easily collapse. More from Yahoo Scout What challenges face Truist Financial's growth prospects? Why should investors consider Apple despite its volatility? How does market concentration affect current investment strategies? What concerns make Textron a risky investment? Two Stocks to Sell: Textron (TXT) Rolling One-Year Beta: 1.14 Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors. Why Does TXT Give Us Pause? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.5% annually 3.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position Textron is trading at $94.07 per share, or 14.4x forward P/E. Check out our free in-depth research report to learn more about why TXT doesn’t pass our bar. Truist Financial (TFC) Rolling One-Year Beta: 1.24 Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE:TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions. Why Is TFC Risky? Net interest income stagnated over the last five years and signal the need for new growth strategies Flat earnings per share over the last five years ...
(RTTNews) - Indian shares opened higher on Monday as investors parsed the details of the interim trade agreement disclosed by the U.S. and India through a joint statement. The benchmark BSE Sensex was up 378 points, or half a percent, at 83,958 in early trade, while the broader NSE Nifty index rose by 120 points, or half a percent, to 25,814. State Bank of India jumped 5.7 percent on reporting a 2...
(RTTNews) - Indian shares opened higher on Monday as investors parsed the details of the interim trade agreement disclosed by the U.S. and India through a joint statement. The benchmark BSE Sensex was up 378 points, or half a percent, at 83,958 in early trade, while the broader NSE Nifty index rose by 120 points, or half a percent, to 25,814. State Bank of India jumped 5.7 percent on reporting a 24 percent year-on-year increase in its standalone net profit for the third quarter ended December. BEML rallied 3.5 percent after its board approved an investment of around Rs. 1,500 crore for a greenfield rail manufacturing plant in Umariya, Madhya Pradesh. Tata Steel advanced 1 percent after Q3 net profit surged 723 percent. Force Motors climbed 2.3 percent after signing a pact to acquire a 100 percent stake in Veera Tanneries for Rs. 175 crore. Kalyan Jewellers soared almost 10 percent on reporting a 90 percent jump in quarterly profit. Zydus Lifesciences edged up slightly, Bajaj Electricals gained 1.7 percent and Bata India added 1.6 percent ahead of their Q3 earnings results due today. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
錦綉花園失水｜業主重申冀水務署制定維修方案 非要求支付維修費 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】錦綉花園失水事件，業主重申希望水務署制定維修方案。 錦綉花園小業主權益聯會指居民一向願意承擔屋苑水管的維...
錦綉花園失水｜業主重申冀水務署制定維修方案 非要求支付維修費 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】錦綉花園失水事件，業主重申希望水務署制定維修方案。 錦綉花園小業主權益聯會指居民一向願意承擔屋苑水管的維修費用，只希望水務署協助制定合理有效的維修方案及監督工程，並非要求水務署支付維修費。水務署日前批評聯會錯誤將水務署定性為責任方，要求停止發放不實資訊。
黎智英案｜大律師公會：法庭貫徹運用普通法原則詮釋國安法 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】大律師公會表示不論是裁決或量刑，法庭均已並將貫徹運用普通法原則詮釋國安法，法官審理案件時純粹考慮法例及證據，不...
黎智英案｜大律師公會：法庭貫徹運用普通法原則詮釋國安法 To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video 【有線新聞】大律師公會表示不論是裁決或量刑，法庭均已並將貫徹運用普通法原則詮釋國安法，法官審理案件時純粹考慮法例及證據，不會作出任何政治考慮；又認為黎智英案對香港在一國兩制下獨特法理發展非常重要，在普通法制度下，先例會隨著時間逐漸積累，為將來案件提供指導，希望公眾及關心香港司法制度人士詳細地閱讀裁決理由及尊重香港司法程序；又說有信心香港司法界會繼續獨立、保持政治中立運作，不受外來影響或干預。
tadamichi/iStock via Getty Images Japan’s Nikkei 225 ( NKY:IND ) hit a record on Monday, rising to 5% after Prime Minister Sanae Takaichi’s party won a two-thirds parliamentary supermajority, while the Topix advanced over 3%. Technology and machinery stocks led the advance, with some chip-equipment makers jumping more than 10%. With Takaichi widely expected to adopt market-friendly policies, promi...
tadamichi/iStock via Getty Images Japan’s Nikkei 225 ( NKY:IND ) hit a record on Monday, rising to 5% after Prime Minister Sanae Takaichi’s party won a two-thirds parliamentary supermajority, while the Topix advanced over 3%. Technology and machinery stocks led the advance, with some chip-equipment makers jumping more than 10%. With Takaichi widely expected to adopt market-friendly policies, promising to reinvigorate Japan’s underperforming economy, equities across Asia climbed, with South Korea’s Kospi rallying 4% and other major indexes posting gains of more than 1%. U.S. President Donald Trump congratulated Takaichi on her victory in a TruthSocial post. ″ She is a highly respected and very popular Leader. Sanae’s bold and wise decision to call for an Election paid off big time,” he wrote. More on NIKKEI 225 Index, US Dollar / Japanese Yen, etc. Technical Levels For Major FX Pairs Ahead Of The FOMC Rate Decision Nikkei 225 Forecast: Bullish Acceleration Above 53,370 Key Support Nikkei 225 Surges As Political Speculation Fuels Risk Appetite Japan stocks seen rising after LDP win as yen and bonds face pressure Asian market mixed as tech rout continues; Australia leads declines after Bullock’s policy
Investors are worried about the impact of AI. Workflow automation leader ServiceNow (NOW 1.84%) delivered an outstanding update in its fourth-quarter results last week, but the stock tumbled. It has lost nearly half its value over the past year, but is that a reason for investors to stay away, or is it a buying opportunity? Let's take a look. AI and high growth ServiceNow is reporting strong growt...
Investors are worried about the impact of AI. Workflow automation leader ServiceNow (NOW 1.84%) delivered an outstanding update in its fourth-quarter results last week, but the stock tumbled. It has lost nearly half its value over the past year, but is that a reason for investors to stay away, or is it a buying opportunity? Let's take a look. AI and high growth ServiceNow is reporting strong growth and high profitability. Here are some of the fourth-quarter highlights: Sales increased 20% year over year. The renewal rate was 98%. It had $12.85 billion in current remaining performance obligations. It had $0.92 in earnings per share, a 26% year-over-year increase. The main reason the stock tanked is that software-as-a-service (SaaS) stocks are out of favor with the market right now, which is concerned about how artificial intelligence (AI) could take over many of the tasks companies pay for today. For example, hyperscalers are investing in cloud-based services, where clients can use generative AI for coding and to create applications instead of forking over monthly payments for many different subscription services. Expand NYSE : NOW ServiceNow Today's Change ( -1.84 %) $ -1.89 Current Price $ 100.74 Key Data Points Market Cap $105B Day's Range $ 98.94 - $ 104.00 52wk Range $ 98.94 - $ 211.48 Volume 35M Avg Vol 13M Gross Margin 77.53 % Fears, risks, and valuation While it remains to be seen whether AI will wipe out SaaS companies' businesses, the market is already taking this into account. Does that create an opportunity? ServiceNow calls itself the "control tower" of a company, and more than 8,000 clients rely on its software to run their businesses more efficiently. This business is not going to disappear so fast. On top of that, the company is pivoting to use AI to its advantage and offer a better product. It's not unlike the fears about Alphabet losing ground to ChatGPT and other large-language models (LLMs), while the company has also used AI to its advantage. Ser...
Seahawks win Super Bowl title, pounding the Patriots 29-13 toggle caption Mark J. Terrill/AP SANTA CLARA, Calif. — Defense won this championship. Devon Witherspoon, Derick Hall, Byron Murphy and the rest of Mike Macdonald's ferocious unit pummeled Drake Maye, and the Seattle Seahawks beat the New England Patriots 29-13 on Sunday to win the franchise's second Super Bowl. Sam Darnold threw a touchdo...
Seahawks win Super Bowl title, pounding the Patriots 29-13 toggle caption Mark J. Terrill/AP SANTA CLARA, Calif. — Defense won this championship. Devon Witherspoon, Derick Hall, Byron Murphy and the rest of Mike Macdonald's ferocious unit pummeled Drake Maye, and the Seattle Seahawks beat the New England Patriots 29-13 on Sunday to win the franchise's second Super Bowl. Sam Darnold threw a touchdown pass to AJ Barner, Kenneth Walker III ran for 135 yards and Jason Myers set a Super Bowl record by making all five of his field-goal tries. Walker became the first running back to win the Super Bowl MVP award since Terrell Davis 28 years ago. Uchenna Nwosu punctuated a punishing defensive performance by snagging Maye's pass in the air after Witherspoon hit his arm and ran it back 45 yards for a pick-6. Sponsor Message "It's a one-of-a-kind feeling, bro," Witherspoon said. "You talk about a group of guys who battle every day, who believe in each other and believe in their coach, you can't describe this group no better. It's just a one-of-a-kind feeling. I was just so happy to battle with these guys. We went through a lot, but we believed. All of you all doubters out there who said all that other stuff, you all don't know what's going on in this building. We're one of one over here." Seattle's "Dark Side" defense helped Darnold become the first quarterback in the 2018 draft class to win a Super Bowl, ahead of Josh Allen, Baker Mayfield and Lamar Jackson. "To do this with this team, I wouldn't want it any other way," Darnold said. "So proud of our guys, our defense. I mean, I can't say enough great things about our defense, our special teams." Labeled a bust, dumped by two teams and considered expendable by two others, Darnold proved his doubters wrong while helping the Seahawks go 17-3. After leading the NFL with 20 turnovers in the regular season, Darnold didn't have any in three playoff games. He wasn't particularly sharp against a solid Patriots defense but protected th...