All Posts in "George"

D-Wave Quantum (NYSE:QBTS) Surges 64% As Jülich Supercomputing Centre Acquires Advantage Quantum Computer

D-Wave Quantum surged 64% over the last quarter, coinciding with key developments that likely influenced investor sentiment. A pivotal collaboration with the Jülich Supercomputing Centre saw the latter acquiring D-Wave’s Advantage quantum computer, enhancing D-Wave’s standing in high-performance computing. This marked a significant technological advancement, especially with the expected integration into JUPITER exascale computing. Additionally, D-Wave’s strategic move to provide on-premises Advantage systems bolstered its appeal amidst rising demand for on-site quantum computing solutions. Concurrently, the launch of the “Quantum Uplift” program aimed to capture a larger market share by incentivizing transitions from competitor systems. Meanwhile, as broader markets saw a decline due to new U.S. tariffs and economic uncertainty, D-Wave’s positive announcements were indicative of growth potential, appealing to investors despite the broader downward market trend. Overall, such strategic initiatives and technological advancements likely supported the positive price trajectory of D-Wave Quantum.

Over the past year, D-Wave Quantum’s total shareholder returns surged 242.66%. This impressive performance stood out against the broader market, which saw a 15.3% increase, and the software industry, which grew 4.4%. Key milestones during this period include D-Wave’s inclusion in the Russell 2500 and S&P Software & Services Select Industry Index in July 2024, which may have enhanced investor visibility. The company also launched a hybrid quantum solver capable of managing up to 2 million variables in June 2024, significantly advancing its technological capabilities. Additionally, D-Wave maintained its NYSE listing standards as of November 2024, addressing previous compliance concerns.

D-Wave conducted a follow-on equity offering totaling US$150 million in early 2025, further securing capital for growth. Investor confidence might have been reinforced by executive changes, including the appointment of Sharon Holt to the Board in November 2024, bringing added expertise in technology and business. These cumulative efforts likely played a role in sustaining the company’s robust returns over the year.

George by — March 05, 2025 By George in Equities
Nasdaq nears correction territory dragged down by trade tensions

NEW YORK, March 4 (Reuters) – U.S. stocks ended lower on Tuesday, with the tech-heavy Nasdaq veering near correction territory, as trade tensions escalated following U.S. President Donald Trump’s new tariffs on Canada, Mexico and China.
The 25% tariffs on imports from Mexico and Canada, along with doubled duties on Chinese goods, took effect on Tuesday. China and Canada retaliated while Mexican President Claudia Sheinbaum vowed to respond likewise, without giving details.
The Nasdaq Composite ended lower after veering into correction territory during the session but pared losses in choppy trading. The index closed down 9.3% from its record closing high on December 16.
“Equity valuations have been very elevated and there’s been yellow flags all over the horizon given moves to cut government spending,” said Ben McMillan, chief investment officer at IDX Insights in Tampa, Florida. “Now on top of that, we have all this rhetoric around tariffs.”
Shares in financials (.SPSY), opens new tab and industrials (.SPLRCI), opens new tab were the biggest losers among the benchmark S&P 500’s 11 main sectors.
Citigroup (C.N), opens new tab and JPMorgan Chase & Co (JPM.N), opens new tab fell 6.2% and nearly 4%, respectively, sending the bigger banks index (.SPXBK), opens new tab down 4.7%.
The CBOE market volatility index (.VIX), opens new tab rose 3.20% to its highest since December 20.
“The fear here is that it’s going to slow (economic) growth,” said Adam Sarhan, CEO of 50 Park Investments in New York. “And when you have a slowdown in economic conditions, it’s a situation where banks specifically make less money because fewer goods and services are traveling through the economy.”
The Dow Jones Industrial Average (.DJI), opens new tab fell 670.25 points, or 1.55%, to 42,520.99, the S&P 500 (.SPX), opens new tab lost 71.57 points, or 1.22%, to 5,778.15 and the Nasdaq Composite (.IXIC), opens new tab lost 65.03 points, or 0.35%, to 18,285.16.
U.S. trade deficit in goods with China fell during Trump's first presidency. Trade deficits increased for both Canada and Mexico during Biden's presidency from 2020.
U.S. trade deficit in goods with China fell during Trump’s first presidency. Trade deficits increased for both Canada and Mexico during Biden’s presidency from 2020.
Car makers Ford (F.N), opens new tab and General Motors (GM.N), opens new tab, which have vast supply chains across North America, fell 2.9% and 4.6%, respectively. The domestically focused Russell 2000 index (.RUT), opens new tab dropped 1%.
Wall Street is really concerned, McMillan said. “The likelihood of tariffs will lead to higher prices and therefore lower spending.”
Target (TGT.N), opens new tab shares fell 3% after the retailer forecast full-year comparable sales below estimates.
Best Buy (BBY.N), opens new tab slumped 13.3% after the electronics retailer issued a downbeat forecast, while Walgreens (WBA.O), opens new tab jumped as a report hinted that the pharmacy chain is closing in on a take-private deal by Sycamore Partners.
Declining issues outnumbered advancers by a 2.97-to-1 ratio on the NYSE. There were 86 new highs and 450 new lows on the NYSE.
The S&P 500 posted 41 new 52-week highs and 43 new lows while the Nasdaq Composite recorded 35 new highs and 595 new lows.
Total volume across U.S. exchanges was 18.42 billion shares, compared with the 20-day moving average of 15.87 billion shares.

George by — March 05, 2025 By George in Equities
Europe stocks higher; Germany’s DAX up 3.5%, borrowing costs spike on debt brake deal

The Stoxx 600 index was 1.64% higher at 9:58 a.m. U.K. time, following the broad downturn in global equities on Tuesday on tariff concerns. The Stoxx autos index, which tumbled nearly 6% in the previous session, rebounded by 3.4%. Utilities and food and beverage were among the sectors in the red. German stocks were the top performers regionally, with Frankfurt’s DAX index up nearly 3%. Top gainers included construction firm Hochtief, up 17%, manufacturer Kion Group, up 15.4%, the country’s biggest lender Deutsche Bank, up 9.7%, and Siemens Energy, up 9.6%. Regional defense names also continued their recent rally, with the Stoxx Aerospace and Defense index rising 3%. On Tuesday, Germany’s conservative alliance and the Social Democratic Party — the two groups expected to form the next coalition government following last month’s election — agreed to try to reform the constitutional debt brake system in order to enable defense spending in excess of 1% of GDP. Friedrich Merz, widely billed as likely to become the next chancellor of Europe’s largest economy, said they would also seek to create a 500 billion euro ($529 billion) credit-financed special infrastructure fund over ten years. Alterations or exemptions to the debt brake system have been seen as crucial as a way to allow fiscal loosening to boost Germany’s struggling economy and increase military spending in-step with other European countries. The step remains politically contentious. The yield on German 10-year bonds, seen as the euro zone benchmark, was more than 20 basis points higher at 2.681% following the news. The 2-year yield jumped more than 15%. The euro extended its late Tuesday gains by another 0.84% against the U.S. dollar, reaching its highest level for four months. “At this stage, it looks as if Germany will run budget deficits comfortably over 3% of GDP over the next couple of years rather than keeping the deficit at around 2.5% as we had previously assumed,” Andrew Kenningham, chief Europe economist at Capital Economics, said in a Tuesday note. He said the German announcement showed Merz was “prepared to act decisively” on the economy, but that the additional borrowing that will be needed to finance the extra spending would put upward pressure on Bund yields. Elsewhere, the introduction of fresh U.S. tariffs has been rattling global market sentiment amid concerns they will reignite inflation and escalate a global trade war. Wall Street has seen two days of declines as 25% duties on Canada and Mexico went into effect on Tuesday, as well as an additional 10% tariff on Chinese goods. All three countries have announced retaliatory measures. U.S. stock futures rose overnight, however, after U.S. Commerce Secretary Howard Lutnick said Trump “probably” will announce tariff compromise deals with Canada and Mexico on Wednesday.
George by — March 05, 2025 By George in Market Watch
Stagflation fears bubble up as Trump tariffs take effect and the economy slows

A growth scare in the economy has accompanied worries over a resurgence in inflation, in turn potentially rekindling an ugly condition that the U.S. has not seen in 50 years. Fears over “stagflation” have come as President Donald Trump seems determined to slap tariffs on virtually anything that comes into the country at the same time that multiple indicators are pointing to a pullback in activity. That dual threat of higher prices and slower growth is causing angst among consumers, business leaders and policymakers, not to mention investors who have been dumping stocks and scooping up bonds lately. “Directionally, it is stagflation,” said Mark Zandi, chief economist at Moody’s Analytics. “It’s higher inflation and weaker economic growth that is the result of policy — tariff policy and immigration policy.” The phenomenon, not seen since the dark days of hyperinflation and sagging growth in the 1970s and early ’80s, has primarily manifested itself lately in “soft” data such as sentiment surveys and supply manager indexes. At least among consumers, long-run inflation expectations are at their highest level in almost 30 years while general sentiment is seeing multi-year lows. Consumer spending fell in January by its most in nearly four years, even though income rose sharply, according to a Commerce Department report Friday. On Monday, the Institute for Supply Manufacturing’s survey of purchase managers showed that factory activity barely expanded in February while new orders fell by the most in nearly five years and prices jumped by the highest monthly margin in more than a year. Following the ISM report, the Atlanta Federal Reserve’s GDPNow gauge of rolling economic data downgraded its projection for first quarter economic growth to an annualized decrease of 2.8%. If that holds up, it would be the first negative growth number since the first quarter of 2022 and the worst plunge since the Covid shutdown in early 2020. “Inflation expectations are up. People are nervous and uncertain about growth,” Zandi said. “Directionally, we’re moving toward stagflation, but we’re not going to get anywhere close to the stagflation we had in the ’70s and the ’80s because the Fed won’t allow it.” Indeed, markets are pricing in a greater chance the Fed will start cutting interest rates in June and could lop three-quarters of a percentage point off its key borrowing rate this year as a way to head off any economic slowdown. But Zandi thinks the Fed reaction might do just the opposite — raise rates to shut down inflation, in the vein of former Chair Paul Volcker, who aggressively hiked in the early ’80s and dragged the economy into recession. “If it looks like true stagflation with slow growth, they will sacrifice the economy,” he said.

Sell-off in stocks

The converging factors are causing waves on Wall Street, where stocks have been been in sell-off mode this month, erasing the gains that were made after Trump won election in November. Though the Dow Jones Industrial Average fell again Tuesday and is off about 4.5% through the early days of March, the selling hasn’t felt especially rushed and the CBOE Volatility Index, a gauge of market fear, was only around 23 Tuesday afternoon, not much above its long-term average. Markets were well off their session lows in afternoon trading. “This certainly isn’t the time to hit the panic button,” said Mark Hackett, chief market strategist at Nationwide. “At this point, I’m still in the camp that this is a healthy resetting of expectations.” However, it’s not just stocks that are showing signs of fear. Treasury yields have been tumbling in recent days after surging since September. The benchmark 10-year note yield has fallen to about 4.2%, off about half a percentage point from its January peak and below the 3-month note, a reliable recession indicator going back to World War II called an inverted yield curve. Yields move opposite to price, so falling yields indicate greater investor appetite for fixed income securities. Hackett said he fears a “vicious circle” of activity created by the swooning sentiment indicators that could turn into a full-blown crisis. Economists and business executives see the tariffs hitting prices for food, vehicles, electricity and an assortment of other items. Stagflation “certainly is something to pay attention to now, more than it’s been in a while,” he said. “We have to watch. This is such a collapse in sentiment and such a change in the way people are viewing things and the level of emotion is so elevated right now that it will start impacting behavior.”

White House sees ‘the greatest America’

For their part, White House officials are maintaining that short-term pain will be dwarfed by the long-term benefits tariffs will bring. Trump has touted the duties as way to create a stronger manufacturing base in the U.S., which is primarily a service-based economy. Commerce Secretary Howard Lutnick acknowledged in a CNBC interview Tuesday that there “may well be short-term price movements. But in the long term, it’s going to be completely different.” Market-based inflation expectations are in line with that sentiment. One metric, which measures the spread between nominal 5-year Treasury yields against inflation, is at its lowest level in nearly two years. “This is going to be the greatest America. We’ll have a balanced budget. Interest rates will come smashing down, and I mean 100 basis points, 150 basis points lower,” Lutnick added. “This president is going to deliver all of those things and drive manufacturing here.” Likewise, Treasury Secretary Scott Bessent told Fox News that “there’s going to be a transition period” and said the administration’s focus is on Main Street more than Wall Street. “Wall Street’s done great. Wall Street can continue to do fine, but we have a focus on small business and the consumer,” he said. ” We are going to rebalance the economy, we are going to bring manufacturing jobs home.” Important clues on where the economy is headed should come from Friday’s nonfarm payrolls report. If the jobs count is good, it could reinforce the notion that the hard data has remained solid even as sentiment has shifted. But if the report shows that the labor market is softening while wages are holding higher, that could add to the stagflation chatter. “We have to be observant. There’s the potential that the stagflation term just by itself, by talking about it, can manifest some of it,” said Hackett, the Nationwide strategist. “I’m not in the we-are-in-a-period-of-stagnation camp, but that is the disaster scenario.”
George by — March 05, 2025 By George in Market Watch
Investors say it’s time to take Trump seriously as markets recoil

SINGAPORE, March 4 (Reuters) – Markets no longer think Donald Trump is full of bluster and are moving quickly to anticipate a slowdown in U.S. and global growth as he raises a wall of tariffs around the world’s biggest economy and trading partners start to respond in kind. Six weeks into his second term, the U.S. president has hit imports from Mexico and Canada with 25% levies, put an additional 20% tariff on goods from China, threatened reciprocal tariffs globally and cut off military aid to Ukraine. But instead of the rising yields and higher dollar that investors had wagered on in November, the so-called “Trump trade” is in full retreat. Trade conflict has begun in earnest and the dollar is falling while bond yields dive. U.S. allies are rattled. As Goldman Sachs analysts note, the average tariff rate on imports from China is now 34% and the increase is already roughly twice as large as that in the first Trump administration. Nobody wants to bet anymore that there will be swift compromises or deals. “It is difficult for markets to get on with aggressive positioning given the risk of U.S. tariff policies turning on a dime,” said Chang Wei Liang, currency and credit strategist at DBS. “In credit markets, spreads certainly look too low given the change in risk environment and a more adverse and uncertain trade backdrop.” Volatility gauges for Treasuries (.MOVE), opens new tab and for U.S. (.VIX), opens new tab and Japanese stocks (.JNIV), opens new tab hit their highest levels of the year this week and implied volatility in currencies ticked higher. Stocks and bond yields slid on Tuesday as investors globally ducked for cover. Defence stocks ran higher, while shares in technology companies slumped. As China announced retaliatory tariffs and Mexico and Canada prepared their responses, investors reckoned on a global growth slowdown and upped expectations for U.S. rate cuts. Futures pricing still implies about 75 basis points of U.S. cuts this year, up from about 50 bps two weeks ago, while 10-year yields hit a 4-1/2 month low of 4.115%. Investors see an uncertain outlook where shelter lies in defensive sectors such as real estate or healthcare. And, while protected companies such as U.S. steelmakers may prosper, higher prices will flow along supply chains with unpredictable effect. “I’m spending a lot of time talking to CEOs who are really trying to understand the consequence of some of this,” said Goldman Sachs CEO David Solomon at conference in Australia. “Until there’s more certainty, we have a little bit more runway time. I think we’re going to live with a slightly higher level of volatility. But I think he (Trump) has a purposeful direction that he’s pursuing, and we should take him at his word that he’s going to pursue that direction.”

DIFFICULT TO TRADE

The fall in the dollar has been one of the most eye-catching reversals as conviction turns to confusion in currency trade. What had, in January, been speculators’ largest long-dollar bet in nearly a decade has rapidly unwound – so much so that, as of last week, speculators were short dollars against emerging market currencies and held a record long yen position . Against the euro , the dollar is down nearly 1% in two trading sessions as the fall in U.S. yields has coincided with rises for European yields since the continent prepares to ramp up defence spending while Trump backs away from Ukraine. At the White House, Trump took aim at China and Japan for holding their currencies too cheap. In fact, the yuan , against a basket of trading partners’ currencies, is historically firm and Japan has been intervening in recent years to buy the yen . But on Tuesday, as the dollar fell, Nomura’s global head of foreign exchange flow, Hoe Lon Leng, said it seemed like the “final blow” for those hoping for a higher dollar. “That argument is waning and we keep seeing the price action move the other way,” he said, noting that if both China and the U.S. did not want to see the dollar go higher against the yuan “then it is going to go lower”. To be sure, market gyrations have not been enormous and plenty of analysts do still see room for trade negotiations and an exit ramp from escalation. But the policy whiplash has gnawed away at hopes investors had in a breakthrough deal. And nobody can say they are sure Trump is bluffing. “The threat of tariffs has run its course for now, so the next phase is to endure them,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virigina. “Markets have to price in that reality, and those numbers are painted red.”
George by — March 05, 2025 By George in Business News
Trump hails ‘reclaiming’ of Panama Canal after BlackRock-led group’s deal to buy stake

March 5 (Reuters) – U.S. President Donald Trump has hailed a deal led by U.S. firm BlackRock (BLK.N), opens new tab to buy most of the $22.8 billion ports business of Hong Kong conglomerate CK Hutchison (0001.HK), opens new tab which includes assets along the Panama Canal. The deal will give the U.S. consortium control of key Panama Canal ports amid White House calls to remove them from what it says is Chinese ownership. The high purchase price sent CK Hutchison’s stock up more than 20%. “My administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump told the U.S. Congress. “Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.” The deal with the BlackRock-led consortium includes 90% of Panama Ports Company, which has operated the Balboa and Cristobal ports at each end of the canal for over two decades, said CK Hutchison. In total, the consortium, which includes Terminal Investment and Global Infrastructure Partners, will control 43 ports comprising 199 berths in 23 countries, the conglomerate said. CK Hutchison’s stock closed up 21.9% on Wednesday, outpacing a 2.8% rise in Hong Kong’s broader Hang Seng Index (.HSI), opens new tab. Its price is now the highest since August 1, 2023. The sale involves CK Hutchison’s 80% stake in Hutchison Ports with an equity value of $14.21 billion. However, the conglomerate will receive more than $19 billion following repayment of some shareholder loans. Goldman Sachs is advising CK Hutchison on the deal, two sources with knowledge of the deal said. Goldman Sachs declined to comment. The size of the proceeds would be similar to CK Hutchison’s entire Hong Kong market value prior to Wednesday’s share rally. The remainder of Hutchison Ports is owned by Singapore’s PSA International. About 12,000 ships used the Panama Canal last year that connects 1,920 ports across 170 countries. Its position is strategic for the U.S. as more than three-quarters of vessels passing through originate in or are bound for the United States. “I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” CK Hutchison co-managing director Frank Sixt in a statement. The conglomerate had been waiting for Panama Supreme Court to make a final ruling about the legal status of its government contract to operate the ports after the local attorney general determined the contract “unconstitutional”.

RAPID, COMPETITIVE PROCESS

CK Hutchison, controlled by billionaire tycoon Li Ka-shing, has interests ranging from infrastructure, retail to telecoms, aside from being the world’s largest privately owned port operator. Li has been diversifying his business outside of Hong Kong and mainland China since the 1980s and now only about 12% of CK Hutchison’s revenue is from Hong Kong and China, with the remainder from Europe, the rest of Asia Pacific and Canada. Sixt said the ports deal was the result of “a rapid, discrete but competitive process” during which CK Hutchison received numerous bids and expressions of interest. JPMorgan said in a report that while selling the Panama business is “understandable”, the deal is nevertheless a “surprise” given most of CK Hutchison’s other ports are not in regions directly exposed to Sino-U.S. geopolitical tension. It could be “an opportunistic deal”, JPMorgan said. “Based on our understanding of the management philosophy of CKH, any deal is possible as long as ‘the price is right’.” The brokerage said the deal would represent a significant strategy shift because it would leave ports contributing about 1% of the conglomerate’s earnings before interest, tax, depreciation and amortisation, down from 15%. The contribution of infrastructure, currently the largest segment, will rise to 33% from 28%. The $19 billion that CK Hutchison is set to receive from the sale is well above a $13 billion valuation on the ports assets estimated by analysts. “The disposal would be significantly value enhancing,” Citigroup analysts said. CK Hutchison’s net debt level was HK$138 billion ($17.76 billion) in June and the sales proceeds could put the conglomerate into a net cash position, UBS analysts said. ($1 = 7.7722 Hong Kong dollars)
George by — March 05, 2025 By George in Business News
US manufacturing hit by ‘operational shock’ of Trump tariffs pushing costs up

Data out Monday showed activity in the manufacturing sector slowed in February while costs increased and employment contracted, as President Donald Trump’s tariff policies weighed on the sector.

The Institute for Supply Management’s manufacturing PMI registered a reading of 50.3 in February, down from January’s 50.9 reading and below the 50.7 economists had expected. Readings above 50 for this index indicate an expansion in activity, while readings below 50 indicate a contraction.

Meanwhile, the prices paid index surged to a reading of 62.4, up from 54.9 the month prior and its highest level since July 2022, reflecting company costs continuing to increase. The employment index fell into contraction with a reading of 47.6 in February, down from 50.3 in January.

All three major stock indexes hit their lows of the day following the release, with the Nasdaq Composite (^IXIC) sliding the furthest, down about 1% before paring back losses.

“Demand eased, production stabilized, and destaffing continued as panelists’ companies experience the first operational shock of the new administration’s tariff policy,” Institute for Supply Management Chair Timothy Fiore wrote in the release. “Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts.”

Fiore explained in an interview with Yahoo Finance that the surge in the prices paid index was largely due to Trump’s 25% tariffs on steel and aluminum imports.

“The whole story here is really around the tariff issue,” Fiore said, further explaining that the increases in prices lead to lower new orders from businesses and also could impact hiring plans. If Trump’s proposed 25% tariffs on Mexico and Canada are enacted, Fiore said he expects the situation to worsen, with prices continuing to increase and manufacturing activity further weakening.

“If you stay on the path that we’re headed on, I think it’s going to be tough, a tough route [for the US economy],” Fiore said.

ISM’s prices paid index has closely tracked the monthly prints of the Consumer Price Index (CPI) and the Producer Price Index (PPI), per Fiore. This month’s large increase in the prices paid index likely points to an increase in prices for the two inflation measures — CPI and PPI — in February, Fiore said.

Capital Economics North America economist Thomas Ryan wrote in a note to clients on Monday that the ISM data “supports our view that there will be a goods-driven resurgence in core inflation in the second half of the year.”

“The drop back in the ISM manufacturing index and the negative tone of the report will add to fears that the economy has taken a sudden turn for the worse amid the barrage of weaker activity data in recent weeks,” Ryan wrote.

George by — March 04, 2025 By George in World News
China, Mexico and Canada hit back against Trump tariffs

Canada, Mexico and China have vowed to retaliate after tariffs on goods entering the US from their countries came into effect on Tuesday.

US President Donald Trump has imposed 25% tariffs against Canada and Mexico, and 20% tariffs against China.

Stock markets in the US, UK and Asia dipped following the introduction of the taxes amid fears of trade war widening.

Analysts have warned tariffs could push up prices for US households and could also have a knock on effect on consumers across the world, including the UK.

Trump threatened to impose the tariffs, which are a tax added to a product when it enters a country – on Canada, Mexico and China in response to what claims is the unacceptable flow of illegal drugs and illegal immigrants into the US.

But Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US and would retaliate with 25% tariffs on $150bn worth of US goods.

China swiftly announced its own counter measures, which include 10-15% tariffs on some US agricultural goods, including wheat, corn, beef and soybeans. Mexico is expected to announce its response later.

The three major stock market indexes in the US sank following the news, while the FTSE 100 index of the UK’s biggest publicly-listed companies opened sharply lower on Tuesday and stock markets in Asia were also down.

Andrew Wilson, from the International Chamber of Commerce, said: “What we’re seeing is the biggest effective increase in US tariffs since the 1940s – with severe economic risks attached to that.”

“The initial market moves are entirely reflective that we’re now entering into a very risky scenario for global trade and for the global economy,” he told BBC Radio 4’s Today programme

He said Yale University had predicted these measures could cost US households in the region of $2,000 in this year alone.

Ella Hoxha, head of fixed income at Newton Investment Management, told the BBC: “In terms of consumers, you’re more likely looking at, certainly over the short term, increases in prices as companies pass some of those prices onto the consumer.”

Chris Torrens, vice president of the British Chamber of Commerce in China, added: “It’s a huge challenge for British business because of the historical links that the UK and the US have. [We are] Seeing what looks like the dismantling of a transatlantic alliance between the US and Europe.

“But, there is a real sense of hope for a stronger UK-China relationship.”

George by — March 04, 2025 By George in World News
Here’s Why We Think On Holding (NYSE:ONON) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like On Holding (NYSE:ONON). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

How Fast Is On Holding Growing Its Earnings Per Share?

Over the last three years, On Holding has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn’t particularly indicative of expected future performance. As a result, we’ll zoom in on growth over the last year, instead. On Holding’s EPS skyrocketed from CHF0.25 to CHF0.39, in just one year; a result that’s bound to bring a smile to shareholders. That’s a commendable gain of 57%.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. While we note On Holding achieved similar EBIT margins to last year, revenue grew by a solid 26% to CHF2.2b. That’s a real positive.

In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.

earnings-and-revenue-history
NYSE:ONON Earnings and Revenue History March 1st 2025

You don’t drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for On Holding’s future profits.

Are On Holding Insiders Aligned With All Shareholders?

Since On Holding has a market capitalisation of US$15b, we wouldn’t expect insiders to hold a large percentage of shares. But thanks to their investment in the company, it’s pleasing to see that there are still incentives to align their actions with the shareholders. We note that their impressive stake in the company is worth CHF2.9b. That equates to 19% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.

Is On Holding Worth Keeping An Eye On?

If you believe that share price follows earnings per share you should definitely be delving further into On Holding’s strong EPS growth. This EPS growth rate is something the company should be proud of, and so it’s no surprise that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it’s a good stock to follow. Of course, profit growth is one thing but it’s even better if On Holding is receiving high returns on equity, since that should imply it can keep growing without much need for capital. Click on this link to see how it is faring against the average in its industry.

Although On Holding certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.

George by — March 04, 2025 By George in Equities
IonQ, Inc. (NYSE:IONQ) Just Reported, And Analysts Assigned A US$44.60 Price Target

One of the biggest stories of last week was how IonQ, Inc. (NYSE:IONQ) shares plunged 23% in the week since its latest yearly results, closing yesterday at US$24.57. Revenues of US$43m beat expectations by a respectable 4.0%, although statutory losses per share increased. IonQ lost US$1.56, which was 80% more than what the analysts had included in their models. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, IonQ’s five analysts are now forecasting revenues of US$85.4m in 2025. This would be a substantial 98% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 25% to US$1.15. Before this latest report, the consensus had been expecting revenues of US$83.2m and US$0.95 per share in losses. While this year’s revenue estimates increased, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Spiting the revenue upgrading, the average price target fell 5.5% to US$44.60, clearly signalling that higher forecast losses are a valuation concern. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on IonQ, with the most bullish analyst valuing it at US$54.00 and the most bearish at US$29.00 per share. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It’s clear from the latest estimates that IonQ’s rate of growth is expected to accelerate meaningfully, with the forecast 98% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 67% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that IonQ is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at IonQ. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

 

George by — March 04, 2025 By George in Equities
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