Author: therawinformant

(Bloomberg) — Oracle Corp. reported sales that fell short of analysts’ estimates, signaling that the coronavirus pandemic and recession have spurred a pullback in corporate spending on information technology.Revenue declined about 6.3% to $10.4 billion in the period ended May 31, the Redwood City, California-based company said Tuesday in a statement. Analysts, on average, projected $10.7 billion, according to data compiled by Bloomberg. Shares declined about 4% in extended trading after the results.Chief Executive Officer Safra Catz and Executive Chairman Larry Ellison have sought to renew growth at Oracle, the world’s second-largest software maker. The shift to cloud computing caught the 43-year-old tech giant off guard and it’s still struggling to switch existing database customers to cloud-based offerings and better compete against Amazon.com Inc. and Microsoft Corp. The company notched a key win when Zoom Video Communications Inc. began using cloud services from Oracle along with Amazon to cope with a strain on its network capacity amid blockbuster demand for its videoconferencing tool.In the fiscal fourth quarter, cloud license and on-premise license sales declined 22% to $1.96 billion, suggesting the company is signing fewer new software deals. Revenue from cloud services and license support increased 1% to $6.85 billion. That metric includes sales from hosting customers’ data on the cloud, but a large portion is generated by maintenance fees for traditional software housed on clients’ corporate servers.“Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases,” Catz said in the statement.Profit, excluding some items, was $1.20 a share, compared with analysts’ average estimate of $1.15.“It was a disappointing quarter,” said Hari Srinivasan, an analyst at Neuberger Berman, which has been a long-term Oracle investor. “We were expecting a decline because although Oracle’s products are important for enterprises, that’s not where the spending is. Most companies are spending on getting employees working from home and the cloud.”The company’s revenue performance may be weak for the next two or three quarters until spending recovers, he added.Oracle said that revenue from cloud-based accounting and financial planning software climbed 32% in the quarter from a year earlier. The company’s software for managing employees increased 27%. Oracle didn’t disclose total sales of the products, which compete against those from Workday Inc.Shares declined to a low of $51.70 in extended trading after closing at $54.59. The stock has climbed 3% since the start of the year.(Updates with comments from analyst in the seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Vaccine maker Moderna (MRNA) is on everyone’s radar, with shares rocketing from the $20 level in January to over $60 today. Moderna stock got another small boost yesterday after the inventor of a leading coronavirus vaccine proposal was reported to be nearing a deal to sell its vaccine to Israel. Citing unnamed sources within the Israeli Health Ministry, news site Ynet.com noted that with Phase 2 clinical trials of the vaccine — mRNA-1273 — nearly complete, Israel is already "in final negotiations" to buy supplies of the vaccine for distribution to its populace. Which is great news, but here's the thing: Moderna stock was in fact already primed to go higher even before the Israeli news was announced.Over the weekend, you see, investment bank J.P. Morgan released an update on a recent discussion it had with Moderna CEO Stephane Bancel and CFO David Meline. In that note, J.P. Morgan analyst Cory Kasimov admitted that he struggles "to appropriately capture COVID-19 in MRNA's valuation given all the unknowns around COVID-19 and the ultimate opportunity." Regardless, Kasimov believes that as progress is made on the mRNA-1273 vaccine, and as the company issues updates on this progress, positive news flow is likely to keep Moderna stock rising at least in the "near term."So what should investors be looking for from Moderna in the weeks and months ahead?First and foremost, Kasimov notes that initial data on the Phase 1 study of mRNA-1273 should be just "weeks" away. With Phase 1 complete, of course, Moderna itself already has all the data available "in house" and should be able to write it up in prose form in a matter of days. The trick is that the National Institute of Allergy and Infectious Diseases (NIAID) has control over the precise date for releasing this information. Dr. Anthony Fauci, however, who heads NIAID, has indicated that a release of the data is imminent.Incidentally, it's unlikely NIAID could sit long on this information even if it wanted to. Providing color to the procedure for issuing its updates, Moderna's management confided that one reason it released initial Phase 1 data in mid-May, rather than waiting for the complete data to be assembled, was out of a desire to adhere to SEC regulation FD, and "out of caution so that the data would not be leaked."Simply put, with 14 billion ears around the globe straining for any news of a coronavirus vaccine, leaks are going to happen. To get ahead of such leaks, therefore, both Moderna and NIAID have an interest in releasing new data almost as soon as it is produced. On the one hand, this should minimize inside trading on such news. On the other hand, it practically ensures that there will be a steady flow of new updates on mRNA-1273's (and other vaccine candidates') progress, which should help keep the stock prices of vaccine makers rising.In Moderna's case, this news flow should continue throughout 2020, including a likely "end of September" date for injecting mRNA-1273 into all patients participating in a Phase 3 clinical trial of the vaccine, and culminating in the filing of a Biologics License Application, or BLA, permitting Moderna to produce the vaccine for use in interstate commerce, "by the end of the year."It remains to be seen, however, precisely how much higher such news can drive Moderna's stock price. Although Kasimov has an "overweight" rating on the stock, he values the stock only at $62 a share. Compare that to Modern's stock price at close of trading Monday — $66.57 — and you'll see why this analyst struggles "to appropriately capture COVID-19 in MRNA's valuation." (To watch Kasimov's track record, click here)Kasimov is somewhat conservative compared to the general Wall Street view here. Moderna has a Strong Buy analyst consensus rating, based on 11 Buy ratings and 2 Holds set in recent weeks. The average price target is significantly higher than Kasimov, at $90.40, and implies an upside potential of 40.5% from the $64.34 share price. (See MRNA's stock-price forecast on TipRanks)To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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First Majestic Silver (AG) has asked Canada’s Mexican ambassador to intervene in an escalating $209 million tax dispute, reports Reuters.“We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. The company owns seven silver mines in Mexico and wants ambassador Graeme Clark to set up a meeting with President Lopez Obrador so the dispute can be resolved.According to Neumeyer, Mexican tax authorities have rejected three settlement offers, leading the Vancouver-based company to commence a trade challenge last month.Meanwhile President Lopez Obrador recently stated that some Canadian miners are behind on their tax payments. He has asked the Canadian government to put pressure on these miners to prevent the matter proceeding to international tribunals.Shares in AG have plunged 25% year-to-date, and analysts have a cautiously optimistic take on the stock’s outlook. Its Moderate Buy Street consensus breaks down into 3 buy ratings vs 5 holds, while the $10 average analyst price target indicates 8% upside potential lies ahead.Speaking for the bulls, HC Wainwright analyst Heiko Ihle reiterated his First Majestic buy rating on June 12 with a $10.50 price target.He made the call after AG announced an agreement to purchase a stream on 50% of payable silver from the Springpole project in Ontario, Canada for $22.5 million in cash and shares from First Mining Gold Corp.Springpole maintains a compelling precious metal resource with long-term production potential and is located in a geopolitically safe jurisdiction, the analyst told investors.“We believe that this acquisition provides First Majestic with a potentially de-risked revenue source, as the company has no ongoing operational obligations, and the transaction may ultimately yield incremental returns in an improving silver market” Ihle wrote.Thanks to this new silver stream he now believes that First Majestic’s exposure to an upward trending silver price will span beyond its currently producing assets in Mexico. (See AG stock analysis on TipRanks).Related News: AT&T Mulls $4 Billion Sale Of Gaming Division- Report American Express Scores China Go-Ahead In Milestone Moment E-Signature Pioneer DocuSign To Join Nasdaq-100 Next Monday More recent articles from Smarter Analyst: * KKR-Led Consortium Buys 6% Stake In Vietnam’s Vinhomes For $650 Million * Eli Lilly Leaps 13% On Positive Results For Its Verzenio Breast Cancer Therapy * iQIYI Pops 35% In Pre-Market On Report Tencent Seeks To Buy Big Stake * First Horizon, IberiaBank Get U.S. Regulatory Nod For Merger

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Dave Portnoy spurred a new generation of retail traders, but the Barstool Sports founder said Monday on CNBC's "Fast Money" he can't be responsible for the actions of others.'Barstooling It': The rise in retail trading activity is in part due to Portnoy branding himself as "Davey Day Trader." His newfound popularity in the trading universe is merely a function of "doing something the financial community hasn't seen before and making it fun," Portnoy said."We are 'Barstooling' it, we are making hype videos, we are getting behind it, we are live-streaming it," he said. "And I think a lot of the old-time guys just don't know what the hell is going on with us so they don't know what to make of us."See Also: Are Robinhood Retail Traders Fueling The Rally? It Depends Who You Ask'Clear What We Are': Portnoy makes it "clear what we are" and admits he has no "great knowledge" of stocks. If retail investors follow his actions and potentially lose money on a rare penny stock mention, he "can't be held responsible for total idiots."Portnoy has made some profitable trades among well-known brands, including personally buying and recommending Spirit Airlines Incorporated (NYSE: SAVE) near $8 per share. Anyone who took his advice is sitting on a hefty profit with the stock trading north of $20. The stock needs to "crash significantly for about a week straight" to erase all of the gains."People have to make decisions for themselves, obviously," he said. "If you want to jump on, you jump on. The facts are I'm not going to feel bad when I have like 400% returns since I started doing this."See Also: Dave Portnoy Trades And Entertains, But Whitney Tilson Says He's Reminiscent Of The 'Proverbial Shoeshine Boy'The Buffett Call: Billionaire investor Warren Buffett has been buying and selling stocks for decades, but Portnoy has no ambition to follow suit. He said once the COVID-19 pandemic is over, he needs to return to his "pretty busy job" at Barstool Sports.In the meantime, Portnoy said it's factually correct to say he 's outperforming Buffett after loading up on airliner stocks near the bottom: "because I am."Buffett is also pushing 90 years old so even claiming he is past his prime shouldn't be seen as an insult, Portnoy said."I have said all along, he is the greatest investor of all time," he said. "But right now, in this market, I'm doing better."Top Stock Pick: Davey Day Trader's top pick in this current environment: Smith & Wesson Brands Inc (NASDAQ: SWBI). Photo screenshot via CNBC.See more from Benzinga * Ex-SEC Chief Pitt Surprised At Investor Gullibility, Says They're Buying 'Garbage' * McDonald's Serves Up April, May Metrics, COVID-19 Update * What Data From Yelp And OpenTable Tells Us About The State Of Restaurants(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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VMware on the list Continue reading…

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Coronavirus vaccine maker Moderna Inc (NASDAQ: MRNA) is closing in on the final stages of its vaccine program and could have the efficacy data by Thanksgiving, paving the way for a potential Emergency Use Authorization approval by the FDA, Bloomberg reported, citing an interview with the company's CEO Stephane Bancel.What Happened: Moderna's coronavirus vaccine, codenamed mRNA-1273, is in Phase 2 testing and could yield efficacy data as early as Thanksgiving if everything goes right, Bancel told Bloomberg. The CEO also discussed about the possibility of the FDA according EUA at high risk."They might decide to give us emergency use approval for people at very high risk, while the agency more carefully reviews the data before granting approval for a broader population, " Bancel said.Moderna is measuring whether the vaccine prevents COVID-19 or potentially prevents infection, she said. Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.Working On Pricing: Moderna's CEO also suggested in the interview the company is working on how best to price a coronavirus vaccine to make it both affordable and viable for the company. "What we need to make sure is that the vaccine is affordable. But vaccines won't be free," Bancel said. Moderna is scheduled to start a Phase 3 trial evaluating about 30,000 volunteers, in Jul while the NIAID-sponsored Phase 1 trial and the company-managed Phase 2 trial are ongoing.Preliminary results from the Phase 1 study released in mid-May demonstrated positive immunogenicity and safety.MRNA Price Action: The stock was down 5.27% at $63.06 at the time of publication. Related Links:Moderna Analyst Says Coronavirus Vaccine Candidate Has 65% Chance Of Success Coronavirus Vaccine Frontrunner Moderna Appoints Former Amgen Executive As CFO See more from Benzinga * Moderna Closing In On Deal To Supply Coronavirus Vaccine To Israel: Report * Sinovac Makes Headway In Coronavirus Vaccine Race With Positive Preliminary Phase 1/2 Results * Moderna On Track To Start Phase 3 Coronavirus Vaccine Trial In July(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Inovio Pharmaceuticals Inc (NASDAQ: INO) shareholders are suing the company in U.S. District Court alleging the vaccine maker misled investors by saying it came up with a coronavirus vaccine candidate in about three hours.When Inovio shared a developmental timeline for its DNA vaccine, codenamed INO-4700, in early March, the company said it designed the vaccine in three hours after the receiving the genetic sequence.That statement amounts to a deliberate misrepresentation to the public to inflate Inovio's stock price, the shareholders said in the lawsuit, which was filed Monday in the Eastern District of Pennsylvania. Inovio Shareholders Allege Stock Pumping: Ever since CEO J. Joseph Kim flaunted the "three-hour achievement" in a televised mid-February interview, the company has continued to release updates on the vaccine program in a bid to keep the stock on an upward trajectory, acccording to the lawsuit. The investors reiterated in the lawsuit that Inovio had not designed a viable coronavirus vaccine in three hours, but rather arrived at a vaccine construct.When short sellers targeted Inovio over the three-hour statement, the company said on Twitter that it had designed only a vaccine construct.The lawsuit shows a lack of understanding of the science behind DNA medicines, an Inovio spokesperson told Benzinga on Tuesday. The company designed a vaccine construct for INO-4800 within three hours after the viral sequence became publicly available; produced the vaccine at a small scale and entered preclinical trials in January; entered human trials in April; and plans to report results later in June, the spokesperson said. "Based on extensive prior work creating DNA vaccines using our proprietary DNA medicines platform, we are confident that we have a viable approach to address the COVID-19 outbreak." Inovio's COVID-19 Journey: Inovio's shares rallied through February and hit a high of $19.36 March 19, only to retreat to $5.13 in the wake of short seller reports.The company is already facing another proposed class action lawsuit filed March 12. Inovio has also accused a manufacturing partner in a lawsuit of refusing to divulge information required to scale up manufacturing, according to Fierce Pharma. According to the latest update provided by Inovio on its INO-4700 vaccine candidate in early June, the company said it plans to start a two-stage Phase 1/2 trial in South Korea.INO Price Action: At last check, Inovio shares were slipping 1.92% to $13.88. Related Links:Inovio Analysts Tackle Coronavirus Vaccine Timeline, Funding, Pipeline After Q1 Report Moderna Analyst Says Coronavirus Vaccine Candidate Has 65% Chance Of Success See more from Benzinga * Revisiting The Coronavirus Vaccine Race: Updates On The 10 Candidates In Clinics * Inovio Analyst Watches Coronavirus Play 'From The Sidelines' * The Daily Biotech Pulse: ASCO Presentations Begin, Altimmune Pops On Insider Buying, Immutep Gets R&D Grant(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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To no one’s surprise, the cruise line industry has been pummeled by the coronavirus pandemic. From the viral outbreak on the liner Diamond Princess, to ongoing headlines along the lines of ’40,000 Cruise Ship Workers Trapped at Sea,’ to the heavy share price declines among the industry stocks, the news has been unrelentingly bad.But nothing lasts forever, not even bad news, and what goes down must eventually come back up. Even cruise line stocks. The industry is down about 60% year-to-date, drastically underperforming the travel segment generally, but in recent weeks cruise line shares have surged 75%. At the macro level, JPMorgan analyst Brandt Montour makes a case for both near-term risk and longer-term recovering among the cruise lines. The risks are obvious: the potential for coronavirus outbreaks on the ships, mitigated by the companies reopening at partial capacity. On the positive side, Montour credits “…the pent-up demand for vacationing seen broadly, the surprisingly high risk-tolerance of the average American, recapitalizations across the cruise space…, the relative resiliency of demand from repeat-cruisers, and of course the broader macro recovery.”Getting into specifics, Montour has picked out two stocks that are worth the risk, and one that investors should avoid for now. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these cruise line players.Royal Caribbean (RCL)We’ll start with Royal Caribbean, whose management Montour describes as “best in class.” The upshot is, that RCL shares are still available at a discount – and the company has several reasons for optimism going forward.As Montour points out, RCL has a reputation for excellent physical infrastructure and operations – the company’s cruise ships and crews are generally considered industry leaders. With China opening up and loosening restrictions, RCL’s ticket prices have been holding up somewhat better than at peer companies. This is an important point; as the cruise lines are looking at reopening with limited capacity, maintaining ticket prices will be essential to maintaining margins. All of this is not to say that the company is not feeling the pressure. Last month, RCL extended its suspension of sailings to the end of July, and the Q2 earnings forecast predicts a net loss of $4.43 per share – nearly triple the net loss reported in Q1. But these are likely balanced by the company’s strong liquidity position – it recently renegotiated more than $2.2 billion in debt – and its prospects for Q3 resumption of business in China.Montour touches on the points in his comments on the stock: “Its relative liquidity position is no longer a concern, while its relative share outperformance and valuation is worth the step up in quality, in our view.”Overall, Montour sees RCL as a stock worth the risks. He rates it a Buy, expecting the shares to outperform peers in the near future. His $72 price target implies an upside potential of 18% for the coming 12 months. (To watch Montour’s track record, click here)The Wall Street view of RCL is still cautious. The stock’s recent rebound, despite underperforming the broader markets, has still pushed the share price well above the average price target – but even so, 9 out of 15 analysts rate the stock a Buy. With 4 Holds and 2 Sells, this makes the analyst consensus view a Moderate Buy. RCL shares are selling for $62.66; if it continues to appreciate, expect the analysts to adjust their targets upward. (See RCL stock analysis on TipRanks)Norwegian Cruise Line Holdings (NCLH)Next up is Norwegian Cruise Line, the third largest player in the cruise line industry, with a market cap exceeding $5 billion. Norwegian’s greatest advantage right now is the size and capacity of its cruise fleet. With a smaller fleet of relatively newer ships, and no new vessels scheduled to launch for the next two years, Montour sees the company as well-positioned to weather the coronavirus storm.Montour also takes care to point out Norwegian’s relative discount – and high potential upside. In fact, even though he rates RCL as his best pick, he still sees NCLH as having the greater return potential. Like RCL, Norwegian has suspended sailings through the end of July. While this will badly impact the bottom line, the company has also improved its liquidity position. Subsidiary company NCL announced last month the closing of two investments tranches, one for $400 million and one for $675 million.Norwegian’s sound cash position and relative share price discount are the main attractors for Montour. He supports his Buy rating for the stock with a $24 price target that implies a healthy 20% one-year upside potential. “We like NCLH's positioning with its relatively small, relatively newer fleet, with no new capacity coming on for the next ~2 years… NCLH’s relative discount and YTD share underperformance yield the most upside to our PT,” Montour concluded.Again, Wall Street is more cautious here than JPM’s industry expert. The Moderate Buy analyst consensus rating is based on 15 reviews, including 8 Buys, 6 Holds, and 1 Sell. The average price target is only $16.67, while shares are selling for $19.99. (See NCLH stock analysis on TipRanks)Carnival Corporation (CCL)Last on the list is Carnival, the stock that Montour recommends avoiding – at least for now. It may strike you as unusual that the world’s largest cruise company (even after the coronavirus hit, Carnival boasts a $15.2 billion market cap.But the company also has a heavy debt load. At the end of March, Carnival announced that it was making available $3 billion in senior secured notes to be due in 2023. In addition, the company also revealed plans to raise $1.75 billion through a sale of senior convertible notes, also due in 2023. In its simultaneous third debt announcement, Carnival also unveiled a public offering of $1.25 billion worth of common stock shares.Along with the debt load, Carnival also suspended its 50-cent per share quarterly dividend, as a move to preserve liquidity. This is a serious blow to the stock, as the dividend, at current prices, would yield over 10%.Montour comments on Carnival, saying, “CCL's growth metrics were sluggish heading into the crisis, as older capacity and regional footprints were more impacted… During COVID-19, CCL likely sustained the most direct brand damage…” The analyst also points out that Carnival lacks any ‘unique growth drivers,’ and that the company’s size makes it less nimble in dealing with the current crisis conditions.With that in mind, Montour hedges on Carnival, giving the stock a Hold rating. His $20 price target suggests a modest 2% downside. (To watch Montour’s track record, click here)JPM’s expert analysis is in line with the Wall Street aggregate view on Carnival. The Hold analyst consensus rating is based 15 reviews, including just 3 Buys, along with 8 Holds and 4 Sells. Shares are selling for $19.44, and the average price of $16.13 implies over 20% downside. (See Carnival stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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Are you missing out on any of Costco’s numerous perks? Find out if you’re making shopping mistakes that are costing you money.

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Fed chief Jerome Powell continues to strike a downbeat tone on the jobs recovery after COVID-19. Investors hate hearing it.

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