Today's News
Intel (INTC) is exploring strategic options for its foundry business, including a potential split or scrapping of factory projects, as it grapples with significant losses. Morgan Stanley (MS) and Goldman Sachs (GS) are advising on these options, which may also involve mergers and acquisitions. The discussions are in early stages, with plans to present them at a board meeting in September. This move would mark a significant shift for CEO Pat Gelsinger, who previously believed the foundry unit could restore Intel's standing among chipmakers.
Second-quarter results from Dell Technologies (DELL, Financial) revealed that artificial intelligence can boost margins for companies beyond Nvidia (NVDA). Dell's Infrastructure Solutions Group reported $11.65B in revenue, up 38% year-over-year, with EBIT margins for the segment rising to 11%. This performance helped alleviate investor concerns about margin issues in Dell's ISG and AI segments.
Dollar General Corporation (DG, Financial) saw a slight uptick in early trading on Friday after a historic 32.2% drop on Thursday. Morgan Stanley downgraded the stock to an Equal-weight rating, citing challenges in achieving market share gains and potential risks to margins from increased promotions. Telsey Advisory Group also lowered its rating to Market Perform, highlighting uncertainties around the retailer's initiatives.
Alnylam Pharmaceuticals (ALNY, Financial) experienced a 14% drop in premarket trading on Friday after releasing complete results from a late-stage trial for its heart disease drug vutrisiran. The drug aims to rival Pfizer’s (PFE, Financial) tafamidis. Despite meeting primary and secondary endpoints in its Phase 3 trial, the market reacted negatively. BridgeBio (BBIO, Financial), whose ATTR-CM therapy acoramidis is under FDA priority review, saw a 16% rise in response.
Reports suggest that Apple (AAPL, Financial) might invest in OpenAI's latest funding round, potentially affecting its search deal with Google (GOOG, Financial) (GOOGL, Financial). Bank of America analysts noted that a significant investment in OpenAI could raise concerns about a long-term AI partnership as an alternative to Google search. This comes as Apple continues to explore AI advancements and partnerships.
Electric vehicle company ZEEKR (ZK, Financial) unveiled a new SUV model, the ZEEKR 7X, at the Chengdu Auto Show. The SUV will be delivered in China by the end of September, with global deliveries expected within a year. The ZEEKR 7X offers two battery options, enabling a driving range between 605 and 780 kilometers on a single charge.
Lululemon Athletica (LULU, Financial) shares rose about 5% following a mixed Q2 performance and outlook. While the company reported better-than-expected Q2 profits and improved margins, it revised its FY2025 revenue guidance downward. The company also adjusted its EPS guidance, aligning closely with consensus estimates.
Disney (DIS, Financial) and DirecTV are in negotiations to renew their distribution agreement, which expires on Sunday. The outcome will affect DirecTV's subscribers' access to Disney channels, including ABC and ESPN. DirecTV is pushing for smaller, lower-priced packages, while Disney has proposed various scenarios, including a sports-centric offering.
Amazon (AMZN, Financial) plans to power its updated Alexa mainly with Anthropic's AI models called Claude, rather than its own AI. The new "Remarkable" version of Alexa, expected to be released in October, will use generative AI to answer complex questions. Amazon intends to charge between $5 and $10 per month for this new version.
GuruFocus Stock Analysis
- From Guyana to the Permian Basin: How Exxon Mobil Is Positioning for the Future by Hammad Sadiq
- PayPal: A Rebound in Progress With Strong Upside Potential by Sheraden Frances
- Why Nu Holdings Still Has Room to Run by Muslim Farooque
- Will Nvidia Continue to Dominate? by Yiannis Zourmpanos
