As Lyft kicks off IPO roadshow, investors still uncertain about profitability
- Lyft executives told hundreds of investors on the 20th floor of the St. Regis that the company will eventually reach 20 percent EBITDA margins, but gave no clear timeline for that watermark, according to three investors who asked not to be named because the meeting was private.
- When probed by an attendee, Lyft executives also declined to say whether there was a model city that shows how they can achieve profitability, one investor said.
- One potential investor from a hedge fund, who asked not to be named, called the strategy and timeline "loosey goosey." The deal was "not for him," but said there was strong interest from those willing to look 10 years to 15 years down the road and trust that Lyft can go the way of high-growth success stories like Amazon.
Cramer: Investors need a new playbook now that the Fed ended rate hikes this year
- Investors need not worry that the Federal Reserve induced a market "sea change" by calling off interest rate increases this year and adjust their game plan to make money, CNBC's Jim Cramer said Thursday.
- As a guideline, Cramer suggests picking stocks whose sales won't get knocked down by an easing economy, focusing on high-yielding dividend stocks, buying the fastest-growing names while inflation is near flat, and loading up on companies that do a lot of business overseas, including those impacted by the trade war with China, because the dollar is getting weaker.
- Cloud stocks: Cramer name dropped Salesforce.com, ServiceNow,and Twilio, the company that powers soon-to-be-public Lyft.
- Semiconductors: Cramer said he likes Nvidia, Advanced Micro Devices, Micron Technology, and Lam Research.
- Disclosure: Cramer's charity trust owns shares of Apple, Amazon, Nvidia, Salesforce.com, and Lam Research.
EU agrees to push back Brexit, but length of delay depends on British parliament
- The European Union agreed on Thursday to postpone the UK's exit from the bloc, but the length of the delay will depend on whether or not the British parliament accepts the previously negotiated withdrawal agreement.European Council President Donald Tusk said the bloc would grant an extension to May 22 if Prime Minister Theresa May is able to get the existing Brexit divorce deal approved by the British parliament.
- If she is unable to do so, Britain would only be granted a Brexit delay until April 12.
- At this point, the country would face a disorderly Brexit.
Stocks making the biggest moves after hours: Nike, Cintas, GameStop and more
- Shares of Nike dropped more than 3 percent in extending trading Thursday following the release of the retailers better-than-expected third-quarter earnings results.
- Nike posted earnings per share of 68 cents, beating estimates of 65 cents, according to Refinitiv.
- Cintas shares dipped as much as 3 percent after hours Thursday on mixed third-quarter earnings.
- Shares of Caleres fell more than 6 percent after market close Thursday following weak fourth-quarter earnings.
- Caleres posted earnings per share of 38 cents on revenues of $720 million.
- Analysts forecast earnings per share of 45 cents on revenues of $738 million, according to Refinitiv.
- GameStop shares popped slightly in extended trading on news that the gaming company named George Sherman as its CEO, effective April 2019.
- Shares of Zuora fell more than 11 percent after hours after reporting fourth-quarter earnings.
Apple's stock is on a tear as it builds suspense for its upcoming event with a product launch spree
- Teasing the event with the slogan, "It's show time," Apple is expected to introduce a new streaming TV service that will give iPhone and iPad users access to free original content and subscription channels such as Starz and CBS All Access, CNBC previously reported.
- In a note to investors, Needham analysts wrote that if users adopt Apple's streaming service, it "should lower churn and drive higher lifetime value." It could even attract new customers to its products and services, they wrote.
- Citigroup also raised its price target on the stock from $170 to $220 on Thursday, even though analysts said in a note they don't anticipate the launch of Apple's streaming service "to be a big catalyst for the stock." They noted, rather, that the streaming is meant to drive recurring revenue for the company, in continuation of its services strategy.
Here comes Nike...
- As Nike was set to report quarterly earnings after the closing bell on Thursday, its shares were poised to close at a record high.
- Here's what Wall Street is expecting from the sneaker giant's third-quarter results, according to analysts surveyed by Bloomberg.
- Nike shares took a hit last month after Zion Williamson, the star college-basketball player, was injured when his sneakers malfunctioned.
- But the episode did little to dent the stock's longer-term performance, with shares still up 19% this year.
- Sam Poser, an analyst at Susquehanna who is generally quite bullish in his footwear coverage, recommended buying Nike ahead of its report.
- He said solid results from Foot Locker earlier this month indicated Nike sales have gained momentum.
- The third-quarter results comes after a particularly strong showing last quarter, which showed efforts around Nike's digital strategy had paid off.
Jeffrey Gundlach says Fed this week was 'not reassuring' and S&P 500 still in bear market
- Wapner: Were you surprised by Fed's dovish double-down on Wednesday?
- I predicted they would go from two hikes this year to 0.5, and everyone told me there was no way they would downgrade it that far.
- And what the heck is that "1 hike in 2020" thing about?
- Wapner: Do you still think we're in a bear market or has the Fed's pivot (and double-down) changed the game?
- Gundlach – Yes to bear market.
- In 2007 the Fed went from "biased to tighten" to an "emergency ease" in just a few weeks.
- The S&P celebrated with a push to essentially a double top over the ensuing several weeks.
- This pivot from December's hawkishness seems metaphorical to that period.
- Fed says oil down is part of their motivation.
- Oil is up substantially from the December meeting.
Boeing's 737 Max could single-handedly hit US GDP if production is halted, JP Morgan says
- A production halt of Boeing's 737 Max jets could be felt well beyond the aerospace giant's quarterly profits, according to J.P. Morgan.
- Michael Feroli, the bank's chief U.S. economist, said in a note to clients that annualized U.S. GDP could fall by 0.6 percentage points if production of the beleaguered airplane is halted temporarily.
- Boeing is still building the 737 Max, but deliveries of the jet have been halted while U.S. officials conduct an investigation into the aircraft's approval.
- Earlier this month, a 737 Max jet operated by Ethiopian Airlines crashed, marking the second disaster involving the plane in less than six months.
- The plane was certified to fly by the Federal Aviation Administration.
- After the second crash, several airlines and countries grounded all flights that involve the plane.
- Boeing shares are down sharply since then, falling more than 11 percent.
Here are the Final Four picks of 17 Wall Street titans
- The road to the Final Four began on Thursday, and each year Bloomberg holds a bracket challenge where celebrity contestants each donate $10,000 for charity and play for a cause of their choice.
- This year's challenge has 52 contestants playing for a total of $520,000 that will be divvied up between the three most accurate brackets.
- Of the 17 brackets from Wall Streeters highlighted by Business Insider, Duke was picked by nine to win the national championship.
- Atlantic Coast Conference rival Virginia was the second-most popular pick at five.
- Three of the contestants, Ken Moelis, Glenn Youngkin, and Cliff Asness choose all four number-one seeds to make it to the Final Four in Minneapolis, Minnesota.
- Firm: Moelis & Co.
Facebook employees had unfettered access to hundreds of millions of users' unencrypted passwords for years
- Facebook stored hundreds of millions of users' passwords in a format easily readable by its employees for years, in the latest security scandal to hit the beleaguered Silicon Valley tech giant.
- Digital security best practices call for passwords to be stored in an encrypted format — making them unreadable even by the companies that hold them.
- But in Facebook's case, they were stored in plain text, meaning that anyone with access to the file could read users' passwords with no additional steps required.
- Facebook says it has "found no evidence anyone internally abused or improperly accessed" the password data, and that the issue was discovered during a "routine security review" in January 2019.
- That includes the Cambridge Analytica scandal, as well as a hack of tens of millions of users' personal data.