Author: Benzinga Neuro

Elon Musk’s ongoing dispute with Brazil over the ban of social media platform X could potentially affect his other businesses, warns Wall Street Journal business columnist, Tim Higgins.

What Happened: Brazil’s ban on X has started to impact other parts of Musk’s business empire. Higgins highlighted during CNBC “Squawk Box” on Tuesday that Musk’s other ventures, such as SpaceX, Tesla (NASDAQ:TSLA) and the Starlink satellite system, have been finding success in rural parts of Brazil, indicating potential future business growth in the market.

However, Musk’s principled stand against Brazil’s government, which he accuses of breaking its own laws by asking X to silence political speech, could jeopardize these opportunities. Specifically, operations of Starlink have been frozen in Brazil, leading to a halt in revenue generation.

“What we have seen over the last few years as he has increasingly become more in X,

See Also: T-Mobile Customers Will Get Starlink Satellite Internet Directly On Their Mobiles First And Others Only Later, Says SpaceX CEO Elon Musk

Despite these challenges, investors seem to remain patient, giving Musk “a lot of rope” to manage his affairs with X, as they see great potential and returns in Tesla and SpaceX.

Why It Matters: Earlier, Musk had threatened to seize Brazilian government assets unless property belonging to his companies X and SpaceX was returned. This was in response to the confiscation of SpaceX and X’s properties by the Brazilian government.

Subsequently, Musk’s satellite broadband company, Starlink, decided to comply with a Brazilian court order to block access to social media platform X in Brazil, reversing its previous stance. This move, while in compliance with the court order, has led to a halt in Starlink’s operations in the country, impacting revenue generation.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

In a recent episode of CNBC’s “Mad Money,” host Jim Cramer announced that Target Corporation (NYSE:TGT) is back on track after a period of struggle. This follows an earnings report that surpassed market expectations.

What Happened: On Monday, Cramer stated on “Mad Money” that Target is on an upward trajectory, potentially stronger than it has been in years. The retail behemoth had experienced a significant collapse, losing 62% from its peak, and appeared to be floundering. However, Cramer said he has always maintained confidence in the company’s capacity to rebound.

Target’s stock began its recovery last November, rallying nearly 77% from its October low. Despite this, the company did not report strong quarters until last month, when a significant shift caused the stock to surge 10% in a single session. This led Cramer to proclaim, “Target is back.”

Cramer noted that the company achieved a 2% sales growth when analysts were expecting 1.1%. This was the first positive comp since the end of 2022, driven entirely by a 3% increase in traffic. Concurrently, Target’s online business is thriving, with digital sales up 8.7%.

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Target’s recent earnings report showed a 43% year-over-year growth, which Cramer labeled as “spectacular.” Despite some concerns about same-store sales forecasts, Cramer believes that Target’s new forecast is better than anticipated for 2024.

Despite the challenging operating environment, Cramer believes that Target is in a better strategic position now and has more room to run. The stock is currently selling at a significant discount to Walmart or Costco, but if Target continues to report numbers like these, the stock will start closing the valuation gap.

Why It Matters: Target’s second-quarter results exceeded expectations, fueling analyst optimism. The company raised its full-year 2024 adjusted EPS outlook to a range of $9.00 to $9.70, up from the previous range of $8.60 to $9.60. This new outlook compares to an estimate of $9.36.

Price Action: At the time of writing, Target was trading 0.13% higher at $159.11 during Tuesday’s pre-market after closing at $158.90 on Monday, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Malcolm Ethridge, Executive Vice President of CIC Wealth, expressed his bullish stance on CrowdStrike Holdings Inc. (NASDAQ:CRWD) on CNBC’s Worldwide Exchange on Friday.

What Happened: Ethridge suggested that the current situation presents a buying opportunity for investors.

“When we get to a place where we believe that the worst of the news is out there, it’s time to buy Crowdstrike. If you loved it at $350, then you should absolutely love it at $250.”

“When we get to a place where we believe that the worst of the news is out there, it’s time to buy $CRWD. If you loved it at $350, then you should absolutely love it at $250,” says @MalcolmOnMoney to @FrankCNBC pic.twitter.com/8ioIDO0l2S

— Worldwide Exchange (@CNBCWEX) August 9, 2024

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This comes in the wake of CrowdStrike facing legal action over a global outage that impacted air travel last month. The cybersecurity firm is accused of negligence in testing and deploying its software, leading to the outage.

Why It Matters: The outage has resulted in significant operational disruptions, including about 7,000 flight cancellations over five days, leading to a direct revenue impact of $380 million for the September quarter for Delta Air Lines, Inc. (NYSE:DAL).

The outage caused by CrowdStrike has had significant global implications. The CEO, George Kurtz, has been summoned by a U.S. congressional panel to testify on the global tech outage. The faulty update affected less than 1% of Windows users globally, which equates to approximately 8.5 million machines, as revealed by Microsoft.

Despite the lawsuit and the operational disruptions, some analysts remain optimistic about CrowdStrike’s long-term growth potential. Piper Sandler analyst Rob D. Owens recently upgraded CrowdStrike’s rating to Overweight from Neutral, citing the company’s resilience and dominance in the endpoint space as key growth catalysts.

Price Action: Crowdstrike was trading 1.65% higher during pre-market on Friday, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Keith Gill, popularly known as Roaring Kitty, has amassed a substantial position in GameStop Corp. (NYSE:GME), through call options. However, cashing in on these options could prove challenging, according to experts.

What Happened: Trade Alert data revealed that the number of open contracts in GameStop rose to 145,000 by the end of May, a significant increase from the 15,000 recorded on May 19. With an average trading price of $5.52 during this period, a buyer of 120,000 options contracts could have made around $54 million by Monday, based on the contracts’ closing price of $10 each, Reuters reported

However, exiting this options trade could pose a challenge. The size of the position and the attention on GameStop could make selling the options or taking delivery of the underlying shares problematic. This could potentially reduce the price of the options and the underlying stock, industry experts noted.

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Steve Sosnick, Chief Strategist at Interactive Brokers and a former options market maker, pointed out the difficulty in selling a large chunk of the options position without attracting attention.

“It’s much easier to sell 10 to 12 million shares than if you sold 120,000 call options,” he said.

Garrett DeSimone, Head of Quantitative Research at OptionMetrics, suggested that taking delivery of the 12 million shares that the disclosed options contracts command may require hundreds of millions in capital.

“Unless he is super committed to being a long term investor and taking delivery of (the shares), it’s going to be challenging to monetize this without moving the market just because everybody’s hyper aware of this now,” DeSimone added

Why It Matters: The Roaring Kitty saga has been a major focus in the market. Gill, a significant figure in the GameStop “meme stock” frenzy, revealed on Reddit that he owns over $115.7 million worth of GameStop shares and has $65.7 million in call options expiring on June 21 with a strike price of $20 each. This disclosure came at a time when Morgan Stanley’s E*Trade was considering banning Gill from its platform due to allegations of his involvement in manipulating meme stock prices through his social media activities.

Meanwhile, Citron Research founder Andrew Left raised doubts about Gill’s intentions, accusing him of trying to take advantage of retail traders after revealing his huge GameStop position.

Price Action: GameStop was trading 1.6% lower at $27.55 at the time of publication Tuesday, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

Jack Dorsey, the co-founder and former CEO of Twitter, now believes that the platform is no longer the “closest form of global consciousness.” He believes that AI has now taken over that role.

What Happened: Dorsey, who co-founded Twitter in 2006, had previously been a vocal advocate of the platform’s global influence. However, in a recent post on X, the platform’s new name, he stated that AI models now hold a more significant influence over public and private thoughts and questions.

“i once thought twitter was the closest form of global consciousness. now it seems the corporate ai models have become that. they have far more access to public and private thoughts and questions,” he wrote.

i once thought twitter was the closest form of global consciousness.

now it seems the corporate ai models have become that. they have far more access to public and private thoughts and questions. https://t.co/HGUbJZfzF9

— jack (@jack) May 22, 2024

Dan, claiming to work at X, commented on Dorsey’s post, stating, “AI feels more like the average of historical information rather than an alive global consciousness that is felt on 𝕏.”

In response, Dorsey acknowledged, “It’s just not as public, but likely has much more information, and timely.”

it’s just not as public, but likely has much more information, and timely.

— jack (@jack) May 22, 2024

Slashdot, a news media platform, also joined the conversation, commenting on Dorsey’s post, “Grok has both.” Dorsey responded simply with “yes.”

yes.

— jack (@jack) May 22, 2024

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Despite his previous support for Twitter, Dorsey has now shifted his perspective. This change comes after the platform was sold to Elon Musk in 2022, a move that Dorsey had initially endorsed.

Why It Matters: Dorsey’s recent comments come in the wake of his public support for Musk’s approach to X’s policies. In a recent interview, Dorsey commended Musk for maintaining user rights despite potential impacts on the platform’s business model.

He has since praised Musk’s changes to the platform, referring to X as a form of “freedom technology.” This latest statement from Dorsey indicates a significant shift in his view of Twitter’s role in the global landscape.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Semiconductor giant Nvidia (NASDAQ:NVDA) is set to release its first-quarter earnings report, a key event that could significantly impact the ongoing U.S. stock market rally.

What Happened: Earnings from semiconductor giant Nvidia are set to test the ongoing U.S. stock market rally, Reuters reported on Wednesday.

Nvidia has seen a 90% surge in its stock this year, making it the third-largest U.S. company by market value, trailing only Microsoft and Apple. The company’s influence on broader markets has grown due to its leading position in artificial intelligence.

The company’s chips are considered the gold standard in AI, making its results a key indicator for the AI industry. Nvidia now holds a significant weighting in major indexes and ETFs, with over 5% in the S&P 500 and 6.5% in the Nasdaq 100.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have all reached record highs this month, buoyed by strong earnings and hopes for a soft landing for the U.S. economy. Robust earnings from Nvidia could further justify high stock market valuations.

“If they do well … there are going to be a lot of stocks that ride its coattails,” said Jay Woods, chief global strategist at Freedom Capital Markets.

“It’s very rare you have one stock that can have such a dramatic impact on the overall market. But Nvidia has earned that.”

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Nvidia’s fiscal first-quarter results are expected to significantly impact AI-related stocks. The company’s quarterly revenue is projected to triple to $24.6 billion. Investors are keenly watching to see if Nvidia can meet high expectations set by its previous blockbuster results.

Why It Matters: The anticipation surrounding Nvidia’s earnings is immense, with some analysts comparing it to the excitement of a major concert. The market is keenly focused on whether the company can live up to the high expectations set by its previous performances.

Additionally, Nvidia CEO Jensen Huang has emphasized the importance of the company’s partnership with Dell Technologies Inc. in expanding AI adoption. In an interview with Bloomberg Television, Huang stated that the collaboration aims to bring generative AI capabilities to a broader range of customers, enabling them to create their own “AI factories.” He noted that the goal is not just to deliver hardware but to provide a comprehensive infrastructure.

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In a significant development for the electric vehicle (EV) industry, Chinese-made EVs are poised to challenge the U.S. auto market but face a major hurdle in the form of import tariffs.

What Happened: Despite their global popularity, Chinese EVs have yet to make a significant impact in the U.S. market due to a substantial 27.5% import tariff, NPR reported on Monday. This barrier is a point of contention for the Biden administration, which is balancing the promotion of affordable EVs against the need to protect American jobs in the auto sector.

The high cost of EVs, with an average price tag of around $54,000, has been a barrier to wider adoption. In response, companies like Ford Motor Co. (NYSE:F) and General Motors (NYSE:GM) are developing more affordable models, and Tesla Inc. (NASDAQ:TSLA) is expected to launch a lower-priced EV next year.

However, the upcoming release of a Chinese-made EV by Volvo at a sub-$35,000 price point and the proliferation of extremely low-cost Chinese EVs, such as the $10,000 BYD Seagull, are putting pressure on the U.S. market.

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Amid concerns over national security and protectionism, the Biden administration has maintained, and may potentially increase, the tariffs introduced by the Trump administration. The U.S. Commerce Department is also investigating the potential espionage threat posed by Chinese vehicles’ navigation and communication systems.

Environmental advocates are divided on the issue, with some supporting the push for U.S. automakers to produce greener, cheaper EVs, while others propose alternative sustainable measures.

Why It Matters: The potential entry of Chinese EVs into the U.S. market comes at a time when Chinese automakers are experiencing rapid growth in overseas markets, despite a domestic sales slowdown. In the first quarter of 2024, these manufacturers, including BYD (OTC:BYDDF) (OTC:BYDDY), saw a 40% increase in overseas sales, indicating their expanding global footprint.

This trend aligns with projections that global gasoline demand growth will halve by 2024, largely due to the rising demand for EVs in China and the U.S. The shift towards EVs is expected to impact refinery margins in the second half of the year.

Furthermore, Tesla’s recent progress with its full self-driving (FSD) technology in China has sparked discussions about the competitive landscape of the EV market and the implications for Chinese EVs’ entry into the U.S.

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In the lead-up to the release of Taylor Swift’s latest album, “The Tortured Poets Department,” fans are reportedly creating a bustling market for unauthorized merchandise. This surge in bootleg products highlights the intense loyalty and engagement of Swift’s fanbase, as they eagerly await the official album drop.

What Happened: The official Taylor Swift store is currently limited to preorders, prompting fans to seek out third-party sellers for their Swift-themed merchandise fix, Bloomberg reported on Wednesday. Platforms like Etsy, Amazon.com and Redbubble have become hotspots for items such as T-shirts, bodysuits, and friendship bracelets, all inspired by Swift’s recent Eras Tour.

Etsy vendors have seen a whopping $3 million in sales from Swift-inspired friendship bracelets alone, during the tour’s six-month tenure. Swift’s concerts have not only been a cultural phenomenon but also an economic powerhouse, contributing an estimated $4.3 billion to the U.S. GDP over the past year.

An overwhelming 95% of Swift’s fans have reportedly bought Taylor-related merchandise in the past year, with over half of those purchases being unofficial items. Despite the legal gray area of profiting from Swift’s image, fans are spending an average of $142 per transaction on these bootleg products.

Maddie Bryan, a fan and fashion marketer, has tapped into this trend, selling her Swift-inspired bodysuits on Etsy for $1,150 each. Etsy’s data shows a spike in searches for items Swift has worn, such as choker-style necklaces, showcasing her significant influence on fashion trends.

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The official merchandise market is grappling with challenges posed by resellers inflating prices, but the unofficial market is flourishing, offering fans more varied and accessible ways to show their support for the pop icon.

Why It Matters: Taylor Swift’s influence extends far beyond her music, shaping economic trends and even potentially impacting political outcomes. Swift’s Eras Tour grossed over $1 billion, contributing to her $1.82 billion revenue in 2023, a testament to her monumental impact on the music industry.

Swift’s strategic reintroduction of her music to TikTok, bypassing her label’s ban, has further fueled fan excitement and engagement, setting the stage for her album’s release. This move underscores her savvy in leveraging social media to connect with her audience.

Moreover, Swift’s reach could extend into the political arena with the potential influence Swifties could have on voter participation in the upcoming presidential election, following Swift’s endorsement of President Joe Biden in 2020.

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As the digital currency landscape evolves, Bitcoin (CRYPTO: BTC) is showing potential signs of a significant price movement, with market intelligence suggesting a possible break from its correlation with traditional stock markets.

What Happened: Market intelligence firm Santiment has indicated that Bitcoin might be on the verge of a significant price surge, potentially reaching the $100,000 mark, as its correlation with traditional stock markets appears to diminish. This insight was shared in a recent video update by Santiment’s marketing director, Brian Quinlivan, The Daily Hodl reported on Friday.

“After the bad news about inflation, this could be a sign that crypto is diverging away from equities again and carving their own path. And in most extended bull runs throughout the history of crypto for 15-plus years we have seen that they most often occur when there is little to no correlation with the S&P,” Quinlivan said.

The divergence between Bitcoin and the S&P 500 was particularly noticeable following the release of new inflation data. While equities were negatively impacted by the inflation concerns, Bitcoin demonstrated resilience, bouncing back above $70,000 after an initial drop.

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The observed divergence is a rare occurrence, as the crypto market has shown a strong correlation with equities for the past two years. The fresh inflation data that rattled the stock market did not seem to have a lasting negative effect on Bitcoin, hinting at a possible decoupling and an optimistic future for the cryptocurrency’s value.

Why It Matters: Bitcoin’s resilience in the face of inflation concerns aligns with its recent surge above the $70,000 threshold. This upward trend could be indicative of the cryptocurrency’s strengthening position independent of traditional financial markets.

In January, a crypto analyst predicted that Bitcoin could hit an all-time high in under six months, drawing parallels with the S&P 500’s performance. This forecast now seems more plausible with Bitcoin’s recent decoupling from the stock market.

Furthermore, the potential inclusion of MicroStrategy Inc., the largest corporate holder of Bitcoin, into the S&P 500 could have significant implications for Bitcoin’s integration into mainstream investment portfolios.

At the time of writing this article, Bitcoin was trading at $70,665.76, according to Benzinga Pro.

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In a recent study by the American Automobile Association (AAA), it was revealed that a significant number of drivers are apprehensive about the idea of self-driving cars.

What Happened: The AAA study found that 66% of drivers are “afraid” of self-driving cars, with an additional 24% expressing uncertainty about the technology. The findings also show a notable shift in attitudes in 2023 and 2024 compared to the preceding years, reported Teslarati on Monday.

The study also highlighted a concerning trend in the public’s perception of self-driving cars. Despite the absence of fully autonomous vehicles on the market, many consumers believe that such cars are readily available. This misconception has been fueled by high-profile crashes resulting from over-reliance on current vehicle technologies.

Greg Brannon, AAA’s director of automotive research, noted that the decline in trust is not entirely surprising, given the recent crashes linked to over-reliance on existing vehicle technologies.

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Adrienne Woodland, a spokesperson for AAA, attributed the fears to widely publicized incidents where drivers lost their lives in car crashes due to the mistaken belief that their vehicle could drive itself. 

Woodland emphasized the need for more reliable and advanced self-driving technology, as well as increased public trust and awareness of emerging vehicle technology.

Brannon also highlighted the confusion surrounding the terminology used by automakers to describe their driver assistance programs, which has further contributed to the public’s misunderstanding of a vehicle’s capabilities. He stressed the importance of creating greater consistency across the industry and educating consumers about the type of technology their vehicle has and how to use it.

Why It Matters: The findings of the AAA study reflect a growing concern about the safety and reliability of self-driving technology. This apprehension is in line with Tesla CEO Elon Musk‘s recent comments about the challenges of achieving widespread autonomous driving. Musk suggested that it could take up to a decade before most cars are capable of fully autonomous driving.

These concerns are also reflected in the regulatory scrutiny faced by companies in the autonomous vehicle industry. Following a high-profile incident involving a pedestrian, the AV industry, including major players like General Motors Company (NYSE:GM), has come under intense scrutiny, raising questions about the safety and reliability of self-driving technology.

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