Earnings are growing at a rapid pace and companies are becoming more valuable, yet some people are scratching their head on why stocks are going up.Just ridiculous. ...

"The correlation between valuation and scale is at an all-time high"JPMorgan's Anu Aiyengar lays out the M&A environment #BBGWomenMoneyPowerhttps://t.co/D71n0UVSBN https://t.co/toW0mgCkDN ...

Market Overview & Outlook - Equity market experienced a phenomenal recovery, with low stocks up 38% since Liberation Day [1] - A potential 5-10% correction is possible, considering the S&P's forward multiples at approximately 22 times earnings and the 10-year Treasury yields slightly above 4% [2] - The market is expected to see a rolling rotation, with profit-taking from the "Magnificent Seven" benefiting small-cap, value, and international stocks [3] Earnings & Revenue Performance - Second-quarter revenues increased by 6% year-over-year, and earnings increased by 12% year-over-year, both exceeding expectations [4] - Third-quarter revenues are projected to increase by approximately 6-7%, with earnings expected to show solid double-digit growth [4] - Federated Hermes is reevaluating and increasing its earnings estimates for the remainder of the current year and the following year [5] Economic Indicators & GDP - The U S GDP estimate for the next year is 28%, while the blue-chip consensus is 15% [6] International Markets - International stocks are considered attractive due to valuations being 40% cheaper than domestic stocks, compared to a typical discount of 20% [8] - The dividend yield on international stocks is approximately 29%, significantly higher than the S&P's 12% [8] - A weak dollar and accommodative foreign central banks are expected to facilitate stronger economic and earnings growth in international markets [9] - The company maintains an overweight position in international assets, viewing them as a favorable subcategory [10]

Vercel has raised $300 million at a $9.3 billion valuation, alongside a $300 million tender offer. https://t.co/OlR90jcTSB ...

Valuation and Fundraising - Tether is reportedly seeking to raise $15B to $20B from private investors for a 3% stake, potentially valuing the company above $500B [1] - Tether's CEO confirmed the rumors, stating the funds will support expansion in stablecoins, AI, commodity trading, energy, communications, and media [2] - Circle's IPO target was $4B to $5B, with shares reaching a $20B valuation on listing day [2] - An estimated valuation for Tether is $133B, based on Circle's market cap adjusted by Tether's stablecoin supply and revenue share [4] - A $100B valuation for Tether is supported by comparables, but $500B is harder to justify [6] Financial Performance - Circle's Q2 2025 audit reported $12B in gross interest income from stablecoin reserves, suggesting Tether's reserve income was around $27B for the first half of 2025, or $55B annualized [3] - Tether reported $26B in gains on gold and bitcoin and $31B in recurrent profit for the same period, yielding $114B in annualized profits [4] - Tether earns twice as much per dollar of reserves compared to Circle, due to lower compliance costs and regulatory arbitrage [4][5] Market Position and Strategy - Tether is the world's top stablecoin issuer with over $170B in USDT reserves [1] - Tether's $500B valuation aims to surpass leading crypto firms like Coinbase and Circle, trailing only Bitcoin [2] - Tether's CEO claims 99% profit margins and views Tether as a transformative company with vast potential in financial services and digital assets [5]

Private Market Investment Opportunities - Private markets offer meaningful innovation, earnings growth, and diversification opportunities, especially given the concentration in public markets [4] - The value of the "private Mag 7" has grown by $12 trillion since the end of 2022, nearly quadrupling in less than three years [5] - Innovation in AI and other sectors is increasingly happening within private markets due to the need for patient strategic capital and the abundance of capital seeking investment opportunities [3] Valuation and Growth in Private Companies - Rapid revenue growth is being observed in the private AI company ecosystem, with companies reaching $10 million in annual revenue in approximately 12 months, a significant improvement from the previous decade [6][7] - Valuation expansion in certain parts of the private AI ecosystem is justified by the meaningful profitability improvements [7] Software as a Service (SaaS) and AI Investment Strategy - Software as a service is seen as a $3 trillion to $5 trillion opportunity [7] - Approximately 95% of software companies, as of March of this year, are private, suggesting that investing in private companies is crucial for participating in the AI trade [8] - A "barbell approach" is recommended, focusing on both the infrastructure layer (dominated by hyperscalers and semiconductors in public markets) and the application/platform technology layer, which is primarily in private markets [8][9][10][11] Public Market Investment Strategy - Active management is key for investing in the AI revolution in public markets, as the leaders of the future may differ from the leaders of the past [13][15] - Investment should be in a basket of high-quality companies with cash flow positive, durable earnings growth, and visible capex and revenue drivers [14]

All right, your price target on Nike 75 bucks. The consensus is about $80.50%. Why are you less bullish than the rest of the of your peers when you say that you actually believe the turnaround's in full swing and you're seeing signs of real progress.>> Yeah, you know, the the main case for us is that, you know, a lot has been priced in here. You know, we've seen um you know, shares pretty much trading at 40 times for you know, next 12-month earnings um and then 30 times, you know, two years from now earning ...

Core Viewpoint - The company is experiencing a turnaround, but the current valuation may limit upside potential, necessitating quicker improvements to see share price increases [2][4]. Valuation Concerns - Shares are trading at approximately 40 times next 12-month earnings and 30 times earnings for two years out, raising concerns about valuation [2]. - The risk is perceived to be on the downside unless there is a significant earnings beat and positive guidance [5]. Guidance Importance - Guidance is crucial, especially as it pertains to the upcoming holiday season, which is a key period for sales [3]. - Expectations for earnings next year are around $250 million, with potential upside if earnings exceed this significantly [5]. Market Share and Competition - The company is not currently gaining market share from competitors like Hoka or OnQ, but there are expectations for future gains [4]. - The company has a global business model, with only 44% of sales coming from North America, providing some insulation from tariff impacts [4].

RT BSCN (@BSCNews)🤯 IS KRAKEN WORTH $15 BILLION?! @krakenfx' latest funding round saw the CEX raise $500 million at an incredible $15 billion valuation... Get the details now ⬇️ https://t.co/B3Yf8VJF7P ...

Core Viewpoint - Investors are showing concern regarding Costco's financial results for fiscal 2025, as indicated by a modest stock drop of around 3% following the report [1][2]. Financial Performance - Costco reported net sales of $270 billion for fiscal 2025, with a gross profit margin for merchandise at 11%, indicating a low-profit model [3]. - Comparable sales for Q4 increased by 5.7%, which was lower than expected, raising concerns among investors [2][6]. Membership Dynamics - Membership revenue is crucial for Costco, with total paid memberships reaching 81 million, up 6.3% year-over-year [6]. - Membership renewal rates slightly declined to 90%, with newer online members showing lower renewal rates compared to other cohorts [7]. Valuation Concerns - Costco's stock trades at over 50 times its earnings, close to its highest valuation ever and nearly double that of the S&P 500 [9]. - If Costco's valuation remains stable, the share price is expected to grow at the same rate as its earnings per share (EPS), which grew by 10% in fiscal 2025, partly due to a membership fee increase [11][12]. Growth Outlook - The company is experiencing modest membership growth, which may hinder its ability to outperform the market in the future [13]. - Slow growth combined with a high valuation could lead to lower returns for investors, despite Costco being a strong company [14].