[Music] We've got the major indexes sitting near record highs, even the small cap Russell 2000. The S&P 500 alone has added add added $16 trillion in market cap since the April lows. And meanwhile, the Fed is cutting again.And earning season is about to start, but one of the biggest supports for stocks is fading right now, the stock buyback bid. And that's what we're digging into on today's stocks in translation. First, a quick definition.A stock buyback or repurchase is when a company uses cash to buy its ...

AT&T Inc. (NYSE:T) ranks among the hot stocks to invest in right now. On September 8, AT&T Inc. (NYSE:T) reiterated its financial projection for the full year 2025 and reaffirmed its plan to repurchase $20 billion worth of shares between 2025 and 2027. The telecom giant stated that it remains on course to meet its previously declared financial goals, which include raising adjusted EBITDA, adjusted EPS, and consolidated service revenue. Ken Wolter / Shutterstock.com During the third quarter, AT&T Inc. (N ...

Core Viewpoint - Thor Industries, Inc. is a leading player in the recreational vehicle (RV) industry, showing strong financial health and positive market momentum despite some cautious outlooks from analysts [1][5]. Company Overview - Thor Industries is known for its diverse range of RV products, including travel trailers and motorhomes, and operates in the U.S., Canada, and Europe [1]. - The company competes with other RV manufacturers such as Winnebago Industries and Forest River [1]. Market Performance - The consensus price target for Thor Industries' stock has increased from $91.36 to $104 over the past year, indicating analysts' optimism about the company's growth potential [2][6]. - Citigroup has set a lower price target of $86, reflecting a more cautious outlook, particularly as the company is expected to report a decline in fourth-quarter earnings [3][6]. - Despite the cautious outlook, Thor's stock price increased by 3.2% in the last trading session, driven by higher-than-average trading volume [3][6]. Financial Performance - Thor Industries has demonstrated strong momentum with a year-to-date stock increase of 17% and a 37% surge over the past three months [4][6]. - The company's third-quarter performance was robust, with net sales rising by 3.3% and the North America Towable segment boosting the gross margin to 15.3% [4]. - Financial health remains solid, with increased cash reserves and positive free cash flow, alongside stock buybacks to enhance share prices [5][6]. Segment Analysis - Backlogs have decreased across all segments, although the European segment showed quarter-over-quarter improvement [4].

Group 1: Workday (WDAY) - Workday announced a $4 billion increase in its buyback authorization, bringing the total buyback capacity to $5 billion, which is 8% of its market capitalization [1][2] - The company plans to utilize this buyback capacity through fiscal 2027, indicating a commitment to significant buyback spending over the next 16 months [2] - Workday's buyback spending in the last two quarters was approximately $961 million, an 86% increase compared to the previous two quarters [3] Group 2: Chipotle Mexican Grill (CMG) - Chipotle announced an additional $500 million share repurchase authorization, with a total buyback capacity of around $750 million as of September 15 [6] - The company's buyback pace has increased significantly, spending an average of $465 million quarterly over the past four quarters compared to $190 million in the preceding eight quarters [7] - Chipotle's stock price has seen a decline of over 20% from June 30, 2024, to June 30, 2025, suggesting the company sees value in shares around the $50 mark [8] Group 3: TKO Group (TKO) - TKO Group is planning a $1 billion buyback program, with $26 million already executed, representing 4% of its market capitalization [11][12] - The majority of the buyback will be conducted through an accelerated repurchase program, expected to be completed by December [12] - TKO's forward P/E ratio is 36x, which is below its historical average of 41.5x, indicating a potentially attractive valuation [13]

Core Viewpoint - Tesla Inc. should utilize its excess cash of $37 billion for stock buybacks instead of allowing it to accumulate further, as suggested by Future Fund LLC's managing director, Gary Black [2]. Group 1: Investment Strategy - Gary Black advocates for Tesla to buy back shares to enhance shareholder value rather than letting excess cash build up [2]. - Institutional investors are reportedly underinvested in Tesla due to its perceived high valuation compared to their estimates, rather than its volatility [3]. Group 2: Stock Performance Predictions - Black previously predicted a surge in Tesla's stock due to strong Q3 deliveries, but he now anticipates a decline in Q4 as the new affordable model may not meet expectations [4]. - Ross Gerber, co-founder of Gerber Kawasaki, also forecasts a temporary surge in Tesla's stock, suggesting that positive news may not last and could lead to a downturn in the following weeks [5]. Group 3: Market Reactions - Tesla's stock initially rallied after an SEC filing revealed CEO Elon Musk's purchase of over $1 billion in shares, pushing the stock price above $420 [6]. - Musk's financial recovery follows a period of criticism and declining sales after his support for President Trump [6]. Group 4: Company Metrics - Tesla scores well on Momentum and Growth metrics, while its Value metric is rated poorly, indicating a mixed performance in terms of investment attractiveness [7].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The current environment of interest rate cuts may benefit borrowers but negatively impact savers, making money market funds and short-dated bonds less attractive [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4][5]

Core Insights - Stock buybacks are being sidelined as companies shift focus towards AI investments, which are seen as more beneficial for long-term growth [1][6] - The second quarter earnings season highlighted a corporate trend of prioritizing AI spending over stock buybacks [2][6] - Generative AI is projected to deliver significant economic benefits, estimated between $2.6 trillion to $4.4 trillion annually, making it a critical area for investment [5] Group 1 - Companies are reducing stock buybacks to allocate more funds for AI initiatives, which are expected to enhance revenue and profits [1][4] - Stock buybacks artificially inflate stock prices without increasing intrinsic value, while investing in AI could yield more sustainable growth [3][4] - The acceleration of AI-related capital expenditures is likely to limit the growth of stock buybacks in the near future [6][7] Group 2 - Despite a projected 12% increase in stock buybacks to $1.2 trillion next year, actual growth may be lower if AI spending continues to rise [7] - The S&P 500 has seen over a 10% increase year-to-date, indicating that investors may be more accepting of reduced buybacks in favor of AI investments [7]

Stock Buybacks Overview - Companies repurchase shares to potentially benefit investors [1] - The report explores the benefits, risks, and strategies associated with stock buybacks [1] Investment Implications - Understanding stock buybacks is crucial for assessing their potential impact on investment portfolios [1]

Financial Engineering & Stock Buybacks - Apple spent $440 billion on stock buybacks in the last 5 years [1] - Wall Street is 90% financial engineering, and 10% real growth from making stuff [1] Bitcoin & Corporate Finance - Public companies that win will have financial operators using BTC [1] - The statement "Raising cash from new investors to pay old investors is a ponzi!" is challenged in the context of corporate finance [1]

Core Viewpoint - Lululemon has experienced a significant decline in stock performance, down nearly 50% in 2025, primarily due to increased competition and macroeconomic challenges in the athleisure market, with shares falling over 60% from all-time highs [1] Group 1: North American Market Performance - Lululemon's trailing-12-month revenue in North America more than doubled from $3.5 billion to $7.6 billion from Q3 2020 to Q4 2023, but has since stagnated at around $8 billion [2] - Revenue growth in North America has slowed, with a mere 4% year-over-year increase last quarter in constant currency [2] - Competitors like Nike and Athleta have also faced revenue declines, with Nike down 11% and Athleta down 6%, making Lululemon's 4% growth appear more favorable in context [3] Group 2: International Expansion Opportunities - Lululemon's international revenue grew 20% year-over-year in constant currency last quarter, with mainland China revenue up 22% despite a spending recession [5] - The company is beginning to expand in East Asia and Europe, recently opening a flagship store in Milan, indicating significant growth potential in these markets [6] - Even with sluggish North American growth, international markets can support Lululemon's overall performance [7] Group 3: Financial Metrics and Stock Valuation - Lululemon currently has a market cap of $22.7 billion, with a trailing price-to-earnings ratio under 13, the lowest in 10 years, suggesting the stock is undervalued [9] - The company has increased stock buybacks to $1.77 billion over the last 12 months, nearing a 10% repurchase of outstanding stock annually, which could enhance earnings per share growth [10] - The combination of a low earnings ratio and an aggressive buyback program positions Lululemon for potential stock price appreciation [11]