Today's News
Investment firm Piper Sandler highlighted potential volatility for shares of Okta (OKTA, Financial) and ServiceNow (NOW, Financial) following an FBI raid on the headquarters of IT giant Carahsoft. Okta saw a 1% drop in premarket trading, while ServiceNow declined by 3.3%. Carahsoft is a significant IT solutions provider to the U.S. government, and the raid could disrupt deals in the pipeline. Piper Sandler noted that both Okta and ServiceNow have a substantial portion of their federal contract dollars routed through Carahsoft.
KLA Corp. (KLAC, Financial) was in focus as Oppenheimer initiated coverage with a perform rating and a $750 price target. The company, a dominant provider of semiconductor process control tools, has consistently exceeded revenue estimates over the past three years. KLA has also benefited significantly from the AI boom, addressing key bottlenecks for Nvidia (NVDA, Financial) and the broader AI ecosystem. Despite this, shares were down 0.5% in premarket trading.
Intel (INTC, Financial) received a buy rating, with analysts suggesting that the stock is too cheap for long-term investors. The company has been facing challenges, but its valuation makes it an attractive option for those willing to hold for the long term. On the other hand, Nvidia received a downgrade due to concerns over specific risks, causing some shareholders to reconsider their positions.
Rithm Capital (RITM, Financial) announced an underwritten public offering of 30 million shares, aiming to raise approximately $342.9 million. The company has granted underwriters a 30-day option to purchase an additional 4.5 million shares. The offering is expected to close on September 26, 2024. Rithm was down 3.47% in premarket trading as investors reacted to the news.
APA Corporation (APA, Financial) extended its enterprise deal with Palantir Technologies (PLTR, Financial) to incorporate new AI capabilities across its oil and gas operations. This multi-year, multi-million-dollar agreement builds on their existing partnership, aiming to improve operational efficiency and cost management. The deal signifies a deeper integration of Palantir's AI tech into APA's global portfolio.
Uber Technologies (UBER, Financial) and WeRide announced a strategic partnership to introduce autonomous vehicles on the Uber platform in the United Arab Emirates. The initiative will launch in Abu Dhabi later this year, offering a dedicated number of WeRide vehicles to Uber users. However, there are no plans to expand this partnership to the U.S. or China at this time.
HP Inc. (HPQ, Financial) acquired Vyopta, a provider of collaboration management solutions, to enhance its workplace solutions. The acquisition aims to improve employee experiences by offering advanced analytics and monitoring for unified communications networks. This move is expected to accelerate HP's platform strategy and enhance its capabilities in space and application management.
Heron Therapeutics (HRTX, Financial) saw a spike in shares after the FDA approved its new Vial Access Needle (VAN) for preparing its postoperative pain therapy, Zynrelef. The new mechanism will reduce preparation time and improve safety, addressing a significant adoption hurdle for the therapy. The company plans to launch VAN in Q4 2024.
Freeport-McMoRan (FCX, Financial) declared a $0.15/share quarterly dividend, consistent with previous payouts. This includes a base dividend of $0.075 per share and a variable dividend of $0.075 per share. The dividend is payable on November 1, with a record date of October 15.
Meta Platforms (META, Financial) announced it would not immediately join the EU's AI agreement, focusing instead on compliance work for the new law. The AI Act will start to apply in phases, with most rules becoming effective in August 2026. Meta stated that it welcomes harmonized EU rules and is concentrating on meeting these requirements.
Apple (AAPL, Financial) saw a 12.7% decline in iPhone sales in China for August year-over-year, according to data from the China Academy of Information and Communications Technology. Despite this, overall phone sales in China surged by 26.7% during the same period. Apple's market share is facing stiff competition from local brands like Huawei, which has been aggressively discounting its products.
Tyson Foods (TSN, Financial) was downgraded to Underweight by Piper Sandler, citing risks in cattle costs and chicken prices. The firm highlighted that higher retention levels of heifers and increased chicken supply could pressure pricing and profitability across Tyson's segments. The stock saw a decline in early trading following the downgrade.
GuruFocus Stock Analysis
- There Is Light at the End of the Tunnel for Alibaba by Wright's Research
- Humana: A Beaten-Down Health Care Stock to Re-Emerge as Inflation Fades by Akim Guerreiro
- What Is the Dow Jones Industrial Average, Really? by John Dorfman
- Alphabet: Uncovering Hidden Value Amid Market Declines by Wright's Research
- Pfizer Is Rising Past Covid-19 by Nabeel Bukhari
