Oil companies may be facing uncertainty as the coronavirus pandemic triggers a collapse in demand for their products, but auto makers are betting the crisis will help accelerate an electric future. With economies reeling from lockdowns to curb the virus, the sharpest plunge in oil prices in two decades has slashed the cost of filling up a tank of gas, eroding some of the incentive to make the switch to cleaner fuels. Looking ahead, cuts in capital spending forced upon energy companies as their revenues crumble could tighten supply enough to cause a spike in oil prices, making electric vehicles more attractive just as automakers ramp up production, analysts say.

from Yahoo Finance https://ift.tt/3bLv9jq

Shares of Home Depot, which have gained 12.4% this year, dropped nearly 3% to $238.50 in premarket trading, as the company also scrapped its full-year outlook, citing uncertainties stemming from the pandemic. Home Depot said it incurred about $850 million of pre-tax expenses in the first quarter, as it provided additional bonuses, doubled pay for overtime and added more hours of paid time-off for employees working during a surge of panic buying of cleaning supplies and masks. The company’s net earnings fell to $2.25 billion, or $2.08 per share, in the first quarter ended May 3, from $2.51 billion, or $2.27 per share, a year earlier, as it spent heavily to compensate its store employees working during the health crisis.

from Yahoo Finance https://ift.tt/2X7N9PS

Carvana (CVNA), the e-commerce platform for buying and selling used cars, has announced a public offering of 5,000,000 shares of its Class A common stock.The stock closed Monday’s trading at $98.59, and is currently falling 7% in Tuesday’s pre-market trading. According to Bloomberg the offering will be within the price range of $93-$96 per share.“The underwriters will offer the shares from time to time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices” the company stated.Citigroup and Wells Fargo Securities will act as book-running managers for the proposed offering.Carvana intends to use the proceeds for general corporate purposes and to partially repay borrowings under its floor plan facility.“While COVID-19 headwinds are apt to persist nearer term, we increasingly believe that on the other side of the crisis, a sustained, even more-favorable backdrop for preowned vehicles and well-positioned, digitally-driven players, such as CVNA will take hold” comments Oppenheimer analyst Brian Nagel.He recently reiterated his buy rating and ramped up his Carvana price target from $95 to $127, arguing that CVNA should prove capital self-sufficient and generate meaningfully positive adjusted EBITDA in 2022.Nagel admits that Carvana shares are not inexpensive, but believes investors will “continue to seek long-term growth and safety in equities of firms situated to thrive amid now-rapidly shifting consumer dynamics.”Overall the stock has a cautiously optimistic Moderate Buy consensus. With the stock up 7% year-to-date, the average analyst price target suggests 11% downside potential lies ahead. (See CVNA stock analysis on TipRanks).Related News: Tesla’s China Car Registrations Plummet In April- LMC Auto Amazon Is Said To Be In Talks To Buy Bankrupt J.C. Penney Saudi Arabia’s Sovereign Fund Snaps Up $7.7B Of US Stocks, Including Boeing and Facebook More recent articles from Smarter Analyst: * Boeing Embarks on Industry-Wide Safety Initiative For New Covid-19 Era * GameStop Pops 5% Amid ‘Significant Progress’ On Turnaround Plan * Tesla’s China Car Registrations Plummet In April- LMC Auto * Novavax Seeks To Raise $250 Million From Share Sale; Top Analyst Bumps Up PT

from Yahoo Finance https://ift.tt/3g1ZKwL