Stock Pick

  • Kamala Harris’ camp is mad that Newsom and Whitmer are being floated as Biden replacements over the VP

    Kamala Harris
    Since the US Supreme Court overturned Roe v. Wade, Vice President Kamala Harris has become the administration's most visible advocate of abortion rights.

    SAUL LOEB/AFP via Getty Images

    • Kamala Harris' allies are frustrated with chatter about potential Biden replacements, Politico reported.
    • The allies feel that Gavin Newsom and Gretchen Whitmer are being mentioned more than the VP.
    • Harris has stood firmly behind Biden and defended the administration's record following his debate.

    After President Joe Biden's widely panned debate performance against former President Donald Trump, Vice President Kamala Harris emerged as perhaps the president's most forceful advocate.

    Harris, who has enjoyed a strong governing relationship with Biden, is seen by many as a top successor to the president should he exit the presidential race.

    But some of Harris' allies are frustrated that Democratic figures like California Gov. Gavin Newsom and Michigan Gov. Gretchen Whitmer are being touted more frequently than the vice president as potential Biden replacements in many circles, according to Politico.

    "The fact that people keep coming back to this is so offensive to so many of us," an unnamed Harris ally told the publication. "They still don't get that the message you're saying to people, to this Democratic Party, is, we prefer a white person."

    Another ally told Politico: "If they think they are going to get through South Carolina bashing an effective and qualified Black woman vice president — their instincts are as bad as I thought they were."

    Harris ran for the 2020 Democratic presidential nomination, and there were high hopes for her campaign among many lawmakers and voters. But even after gaining traction following a primary debate where she skewered Biden over comments he made regarding his work with pro-segregationist lawmakers, her campaign faltered.

    Her eventual selection as Biden's running mate was praised by many Democrats — especially among Black voters in the party — which only strengthened after she was elected as vice president.

    Harris is also popular among young voters and she has become by far the administration's most prominent defender of reproductive rights following the Supreme Court's decision to overturn Roe v. Wade.

    But throughout much of her tenure, Harris has been dogged by low approval ratings alongside Biden. During her first two years in office, the coronavirus and a 50-50 Senate largely kept her in Washington, as she was needed to break ties on important votes.

    And given her low numbers, some Democrats have expressed concerns that she might not be the party's best option should Biden decide not to continue with his campaign.

    Read the original article on Business Insider

  • Here’s how the ASX 200 market sectors stacked up last week

    Technology written in orange in tech sector financial diagram.

    Tech shares led the ASX 200 market sectors last week with a 2.67% gain over the five trading days.

    Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.18% to finish the final trading week of the 2024 financial year at 7,767.5 points.

    Only three of the 11 market sectors finished the week in the green.

    Let’s recap.

    Technology shares led the ASX sectors last week

    Among the major ASX 200 tech stocks, Wisetech Global Ltd (ASX: WTC) shares had a great week, with a 5.82% gain despite the company not releasing any price-sensitive news.

    The Wisetech share price closed FY24 at $100.30 on Friday, up 25.67% over FY24.

    Life360 Inc (ASX: 360) shares rose 2.5% over the week to finish at $16.37. The ASX 200 social networking app developer was the sector’s top growth stock for FY24, with a phenomenal 122.72% uplift.

    The second-biggest ASX 200 tech share, Xero Limited (ASX: XRO), rose 2.06% last week. Xero shares closed at $136.40 on Friday, up 14.69% over FY24.

    TechnologyOne Ltd (ASX: TNE) shares lifted 0.54% to $18.60 by Friday. That’s an 18.85% gain in FY24.

    The Nextdc Ltd (ASX: NXT) share price lost ground in the final trading week of FY24. NextDC shares fell 1.67% to close at $17.63.

    The ASX 200 data centre-as-a-service operator made an impressive 41.72% share price gain over FY24.

    Altium Ltd (ASX: ALU) shares closed at $68.03, up 0.21% over the week and 84.26% over FY24.

    Altium advised the market this week that most regulatory approvals for its takeover by Renesas Electronics Corp have now been obtained.

    What about ASX technology ETFs?

    Among the ASX tech ETFs this week, Betashares Global Cybersecurity ETF (ASX: HACK) had a ripper week with a 3.08% gain to $11.70 per share over the five trading days.

    The ASX HACK is benefitting from rising new demand as enterprises around the world seek to protect themselves from cyber attacks like those experienced by Optus and Medibank Private Ltd (ASX: MPL).

    The HACK ETF ascended 27.31% over FY24.

    Betashares Nasdaq 100 ETF (ASX: NDQ) rose 0.82% to finish the week at $45.51 per share. This is just short of its all-time high set on 18 June at $45.73 per ETF unit.

    The ASX NDQ had a rocking FY24, soaring 31%, largely due to the success of the Magnificent Seven stocks within the NASDAQ 100. These include superstar stocks Nvidia Corp and Microsoft Corp.

    Here are some things you may not know about the ASX NDQ.

    ASX 200 market sector snapshot

    Here’s how the 11 market sectors stacked up last week, according to CommSec data.

    Over the five trading days:

    S&P/ASX 200 market sector Change last week
    Information Technology (ASX: XIJ) 2.67%
    Energy (ASX: XEJ) 0.93%
    Financials (ASX: XFJ) 0.16%
    Industrials (ASX: XNJ) (0.07%)
    Consumer Staples (ASX: XSJ) (0.08%)
    Healthcare (ASX: XHJ) (0.20%)
    Communication (ASX: XTJ) (0.35%)
    Utilities (ASX: XUJ) (0.52%)
    Materials (ASX: XMJ) (0.84%)
    Consumer Discretionary (ASX: XDJ) (1.29%)
    A-REIT (ASX: XPJ) (3.34%)

    The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Life360 right now?

    Before you buy Life360 shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Life360, Microsoft, Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Microsoft, Nvidia, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Top brokers name 3 ASX shares to buy next week

    It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

    Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

    Bellevue Gold Ltd (ASX: BGL)

    According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner’s shares with a buy rating and $2.20 price target. Goldman is feeling very positive about the gold miner’s outlook. It highlights that Bellevue Gold is now largely through its initial ramp up stage. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given the higher average grades it is achieving, its stronger margin generation, and estimated near-term free cash flow yields of ~10%. In addition, Goldman notes that it sees low-cost mill expansion and underground optionality. It feels this potentially supports further upside for the company in the medium term. The Bellevue Gold share price ended the week at $1.78.

    South32 Ltd (ASX: S32)

    A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating on this mining giant’s shares with an improved price target of $4.50. According to the note, the broker has been reviewing its commodity price forecasts. Following the review, Macquarie remains very positive on a number of commodities that South32 produces. This includes aluminium, met coal, and nickel. In light of this, the broker has boosted its earnings estimates for South32 for the coming years and has named the diversified miner as its top pick among the large cap miners right now. The South32 share price was fetching $3.66 at Friday’s close.

    Woolworths Group Ltd (ASX: WOW)

    Finally, analysts at Goldman Sachs have reiterated their buy rating on this retail giant’s shares with an improved price target of $40.20. According to the note, the broker believes that concerns over margin weakness and regulatory reviews are overdone and have created a buying opportunity for investors. In respect to supermarket margins, Goldman’s analysis and channel checks are pointing to resilient ~3% industry topline supermarket growth from improving volume. In addition, it sees plenty of levers for gross profit margin expansion through business model mix and margin optimisation opportunities. In fact, Goldman believes this will allow Woolworths to grow its earnings per share by a compound annual growth rate of 8.2% between FY 2024 and FY 2027. The Woolworths share price ended Friday’s session at $33.79.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bellevue Gold Limited right now?

    Before you buy Bellevue Gold Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bellevue Gold Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Should Coles shares be in your shopping basket with its FY25 outlook?

    A photo of a young couple who are purchasing fruits and vegetables at a market shop.

    Coles Group Ltd (ASX: COL) shares have risen 5.71% in 2024 to date, while the S&P/ASX 200 Index (ASX: XJO) has risen by 2.33%. The recent strength of its sales performance may mean the business is one to watch in FY25.

    The company’s update for the third quarter showed supermarket sales rose 5.1% year over year to $9.06 billion, which was faster growth than Woolworths Group Ltd‘s (ASX: WOW) recent FY24 third-quarter sales growth.

    Coles’ CEO Leah Weckert said the sales performance reflected “strong execution” of its trade plans and “continued focus on delivering great value and great quality alongside improved availability.” Coles has also seen a “meaningful” increase in customers interacting with its digital platforms and loyalty programs.

    Outlook

    When Coles gave its third-quarter update on 30 April 2024, it provided some outlook commentary that I think could be useful and applicable to Coles shares for at least the first few months of FY25 unless conditions dramatically change.

    The company said in the early part of the fourth quarter, supermarket volumes remained “positive”, underpinned by value campaigns and strong execution.

    It has continued to see deflation in fresh produce and meat, and a moderation in inflation across its broader packaged categories which is “pleasing” for customers under the current economic conditions, according to Coles.

    Coles also said it had made good progress in addressing loss (such as theft), which is expected to continue in the fourth quarter.

    In liquor, discretionary spending is “expected to remain subdued”.

    Coles CEO Weckert said:

    We remain committed to providing our customers the best possible value on their grocery bills. We are well positioned in the current economic environment as we continue to invest in value, including through our Autumn value campaign with the prices lowered on 300 products in store and online.

    Our recently launched KitchenAid Ovenware campaign provides additional value to customers who will be cooking more at home through the cooler months. Looking forward, I believe that the opening of our Kemps Creek Automated Distribution Centre and our two CFCs will be yet another step on our road to improving operating efficiency and differentiating our offer.

    Analyst forecasts for Coles shares

    The broker UBS has forecast that Coles could generate $43.8 billion in sales, $1.97 billion of earnings before interest and tax (EBIT) and $1.07 billion of net profit after tax (NPAT) in FY24. UBS also suggests Coles could pay an annual dividend per share of 72 cents for FY24.

    The broker expects growth for Coles’ financials in FY25, with a prediction of $44.3 billion in sales, $2.1 billion in EBIT and $1.15 billion in NPAT.

    UBS also predicts the company could pay an annual dividend per share of 75 cents in FY25. UBS has a price target of $18.25 on Coles shares, which implies the Coles share price could rise around 7.16% in the next 12 months.

    The post Should Coles shares be in your shopping basket with its FY25 outlook? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Coles Group Limited right now?

    Before you buy Coles Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Democrats have struggled to transfer power to younger generations. After Biden’s debate, that’s likely to change.

    Harris
    Vice President Kamala Harris and President Joe Biden at the White House.

    Chip Somodevilla/Getty Images

    • Biden's less-than-stellar debate performance against Trump set off alarms among many Democrats.
    • It also shined a light on the party's past struggles in building a farm team of future leaders.
    • The debate will likely push Democrats to rethink how power is transferred to younger generations.

    After President Joe Biden's middling debate performance Thursday night, many Democrats began to panic.

    With voters already on the fence about Biden's readiness for a second term due to concerns over his advanced age, party leaders wanted the president to use the debate to not only reassure the electorate but also make an impression that could turn the race in his favor.

    But that didn't happen. And now many Democrats are wondering if Biden should exit the race.

    Being faced with that decision just five months before the election is in part due to one of the Democratic Party's more enduring problems: its tortoise-like pace in transferring power to younger generations.

    Generational change

    For 20 years, Nancy Pelosi led House Democrats as part of a leadership team that included veteran lawmakers Steny Hoyer and Jim Clyburn. It wasn't until 2023 that Rep. Hakeem Jeffries of New York, a Gen Xer, finally assumed the mantle of leading the caucus.

    In House primaries across the country, young Democratic candidates are routinely overlooked by party leaders and organizations who often go on to endorse more established candidates.

    In 2020, Biden pledged to be a "bridge" to a new cohort of Democrats. But four years later, he decided to run for reelection.

    His debate performance against former President Donald Trump exposed this resistance to generational change. If Biden remains in the race but is unable to convince wavering voters that he's up for the job, it could imperil Democrats in other critical races.

    What do Democrats need?

    The recent ascent of Jeffries, along with the elevation of Katherine Clark to House Democratic whip and Pete Aguilar to House Democratic Caucus chair, was a welcome generational shift — the kind that the party had generally previously eschewed in favor of experience.

    Biden's choice of Kamala Harris as his vice president, too, represented a sort of passing of the torch. Shortly after the pair won the 2020 election, Harris said they would be "full partners." The president concurred, remarking that he had made no significant personnel decisions without her.

    Many Democrats celebrated the arrival of this younger guard, especially since the party had often lagged behind Republicans in building a farm team of future leaders.

    The worry now is, were these recent efforts too little too late?

    So far, Biden has given no indication that he's leaving the race. If he remains the nominee, Democrats need him to do well. His political fate will have broad ramifications for key down-ballot races.

    No matter what Biden decides, his debate performance will likely accelerate Democratic efforts to cultivate younger leaders who could one day run for the White House, especially as Gen Xers, millennials, and Gen Z will make up the lion's share of the electorate over the next decade.

    Read the original article on Business Insider

  • The best three ASX 200 shares to buy and hold in FY 2024 revealed

    Three women cruise along enjoying ice-creams in the sunshine.

    The S&P/ASX 200 Index (ASX: XJO) gained a solid 8% in FY 2024, but these three top-performing ASX 200 shares left those gains wanting.

    Here’s what got investors excited in the financial year just past.

    Three top-performing ASX 200 shares

    Financial technology company Hub24 Ltd (ASX: HUB) is the third best-performing ASX 200 share in FY 2024.

    Hub24 shares closed out FY 2023 trading at $25.86. At Friday’s close, the stock was trading for $46.55 a share, up 80% over 12 months.

    Hub24 reported on its most recent financial performance on 21 April, when the company released its Q3 FY 2024 results.

    As you’d expect from the strong share performance, the fintech company’s results showed strong ongoing growth.

    Highlights included a 90% year-on-year increase in platform net inflows, which reached $3.5 billion, a new third-quarter record. The company’s total funds under administration (FUA) reached $100.0 billion as of 31 March.

    At its half-year results, Hub24 reported a 14% year-on-year increase in total revenue of $156.7 million for the six months.

    Moving on to the second-best ASX 200 share to have been bought and held in FY 2024, electronic design software platform provider Altium Ltd (ASX: ALU).

    The Altium share price ended FY 2023 at $36.38. Shares closed on Friday trading for $68.03 apiece, up 87% in a year.

    Shares have been in an uptrend for most of the past 12 months, but the Altium share price really took off on 15 February.

    That’s when investors learned that management of the ASX 200 share had unanimously accepted a takeover offer from Japan’s Renesas Electronics Corporation and urged shareholders to do the same. The takeover offer valued Altium at $68.50 per share. The Altium share price closed up 28.8% on the day.

    Which brings us to the best ASX 200 share to have held in your portfolio in FY 2024, health imaging company Pro Medicus Ltd (ASX: PME).

    12 months ago, you could have bought Pro Medicus for $65.76 a share. On Friday, those same shares closed out the financial year, swapping hands for $143.26 apiece, up an eye-watering 117.8%.

    The Pro Medicus share price has been trending strongly upward for most of the past year, supported by a record number of new contracts.

    Most recently, on 28 May, the ASX 200 share announced it had inked five new contracts valued at $45 million. And management indicated investors could expect more good news in the months ahead.

    Commenting on the new contract at the time, Pro Medicus CEO Sam Hupert said: “Despite record new contract signings this year, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments.”

    Investors are also enthusiastic about the company’s potential to harness AI to streamline costs and enhance its products. Towards the end of FY 2023, Pro Medicus recruited two people dedicated to its AI ambitions.

    With the ASX 200 share racing higher, Pro Medicus joined the S&P/ASX 100 Index on 18 March as part of the S&P Dow Jones Indices quarterly rebalance.

    The post The best three ASX 200 shares to buy and hold in FY 2024 revealed appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Altium Limited right now?

    Before you buy Altium Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Altium Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Hub24, and Pro Medicus. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Israel has never been impressed with its version of the $1 billion Patriot air defense system. Now it could offload up to 8 to Ukraine.

    Ukrainian President Volodymyr Zelenskyy looks on during a visit to a military training area to find out about the training of Ukrainian soldiers on the "Patriot" anti-aircraft missile system, at an undisclosed location, in Germany, June 11, 2024.
    Ukrainian President Volodymyr Zelenskyy and a Patriot system.

    Jens Buttner/ Reuters

    • Israel could transfer up to eight Patriot missile batteries to Ukraine.
    • Israel is upgrading its air defense and looking to retire older Patriot batteries.
    • Ukraine has long coveted more of the $1 billion US-manufactured Patriot systems.

    The US is involved in discussions about the possibility of transferring up to eight Patriot air defense batteries from Israel to Ukraine, in what would be a major boost for the latter in its fight against Russian President Vladimir Putin's invading forces.

    While no agreement has been reached yet, a deal would likely involve transferring the batteries from Israel to the US and then on to Ukraine, the Financial Times reported.

    It would be a welcome moment for Ukraine, which has long coveted more of the $1 billion US-manufactured Patriot systems.

    "Israel's Patriots would greatly expand Ukraine's air defense capacity at a time when it is sorely needed," John Hardie, the Deputy Director of the Foundation for Defense of Democracies Russia Program, said.

    "While they are on the older side, these systems — and Israel's considerable stocks of interceptors — would help Ukraine defend its critical infrastructure and counter Russian jets that are pounding Ukrainian positions and towns with glide bombs," he added.

    It comes after the Israeli Air Force announced earlier this year that it would be shutting down its aging Patriot batteries and replacing them with more advanced systems.

    Israel has never been impressed with its versions of the Patriot system, having seen them struggle in combat against Iraqi Scud missiles fired at its cities in 1991, as Business Insider previously reported.

    Officials estimated that it shot down only one or possibly even none of the missiles.

    "Israel has long been looking for a more advanced and more indigenous system to supplement or replace the Patriot, not only given its service history but also the supply chain that it requires," Ryan Bohl, a senior Middle East and North Africa analyst at the risk intelligence company RANE, told BI.

    "I think Israel views the Patriot as out of date and too expensive to keep up with given the breakthroughs that were demonstrated during that barrage by newer systems," Bohl added.

    However, Israel has yet to fully retire its Patriot systems, as it is still using them in the ongoing conflict with Hamas and would likely want them should an all-out war with the Lebanese militant group Hezbollah break out.

    Zelenskyy's Patriot pleas

    Ukrainian President Volodymyr Zelenskyy has never been shy about his desire to get his hands on more Patriot systems.

    In April, Zelenskyy told NATO members that Ukraine needed at least seven Patriot or other advanced air defense systems to defend against Russian attacks.

    "We are telling this directly – to defend, we need seven more 'Patriots' or similar air defence systems, and it's a minimum number. They can save many lives and really change the situation," Zelenskyy said.

    "Putin must be brought down to earth, and our sky must become safe again.. And it depends fully on your choice… (the) choice whether we are indeed allies," he added.

    And the president has seemingly had some luck in recent months.

    President Joe Biden approved the deployment of another Patriot missile system to Ukraine earlier this month, the second the US has sent to the country, The New York Times previously reported, citing senior administration and military officials.

    National Security Council spokesperson John Kirby also announced last week that the US would prioritize delivering Patriot missiles to Ukraine over other countries, calling it a "difficult but necessary decision."

    The Patriot air defense system

    A 2023 report by the Congressional Research Service describes the Patriot system as an "integral component of U.S. air and missile defense."

    One Patriot battery is made up of six key parts, — a power plant, a radar set, an engagement control station, the antenna mast group, launcher stations, and the interceptor missiles.

    The systems can operate using either PAC-2 or PAC-3 missiles. The PAC-2 works by detonating near a threatening missile, while the PAC-3 attempts to strike the warhead directly.

    The first Patriot systems were used by the US in the 1980s, and they were later used in the Gulf War to defend against Iraqi Scud missiles.

    The system's radar has a range of more than 150 kilometers (around 93 miles), and the missiles can travel at 5,000 kph (over 3,100 mph), per NATO.

    Read the original article on Business Insider

  • Goldman Sachs says the return on investment for AI might be disappointing

    Human-AI Collaboration
    It may be a while before companies see a return on their AI investments.

    Getty Images

    • Tech companies plan on spending over $1 trillion on artificial intelligence.
    • But the return on investment may take a long time and be disappointing, Goldman Sachs says.
    • Some experts said AI might not perform well enough to justify its exorbitant cost.

    Tech companies are spending big on the AI craze, but it will be a while before they have much — if anything — to show for it.

    As companies prepare to spend over $1 trillion on artificial intelligence, a Goldman Sachs report examined the big question at hand: "Will this large spend ever pay off?"

    That sizable investment will go toward the data centers needed to run AI, the power grid, and AI chips. But shortages of those AI ingredients could lead to disappointing returns for companies.

    "AI technology is exceptionally expensive, and to justify those costs, the technology must be able to solve complex problems, which it isn't designed to do," Jim Covello, the head of Global Equity Research at Goldman Sachs, said in the report.

    "The starting point for costs is also so high that even if costs decline, they would have to do so dramatically to make automating tasks with AI affordable," he added. "In our experience, even basic summarization tasks often yield illegible and nonsensical results."

    He's not wrong. Google scaled back its AI use in search after its bot began making some odd suggestions, including telling a Business Insider correspondent to put glue on their pizza to keep the cheese in place.

    The tech industry is also "too complacent in its assumption that AI costs will decline substantially over time," especially when that assumption seems to rely on competition dethroning Nvidia, which dominates the market with its AI chips, Covello said.

    Other experts quoted by Goldman Sachs were more enthusiastic.

    "AI technology is undoubtedly expensive today. And the human brain is 10,000x more effective per unit of power in performing cognitive tasks vs. generative AI," said Kash Rangan, a senior equity research analyst at Goldman Sachs. "But the technology's cost equation will change, just as it always has in the past."

    Eric Sheridan, another senior equity research analyst at the company, compared it to the tepid initial reactions to technological developments like the iPhone and Uber.

    "People didn't think they needed smartphones, Uber, or Airbnb before they existed. But today it seems unthinkable that people ever resisted such technological progress. And that will almost certainly prove true for generative AI technology as well," Sheridan said.

    Read the original article on Business Insider

  • Huge US military ‘Manta Ray’ sea drone spotted on Google Earth at California naval base

    The "Manta Ray" drone

    Google Earth

    • A US military uncrewed underwater vehicle can be seen on Google Earth at a naval base in California.
    • The giant "Manta Ray" sea drone completed water testing in early 2024.
    • Footage of the drone in action was recently shared by maker Northrop Grumman.

    The US military's giant "Manta Ray" sea drone has been spotted on Google Earth at a naval base in California.

    Satellite images show the drone at Naval Base Ventura County in Oxnard, close to Los Angeles.

    Footage of the drone taken during water testing earlier this year was also recently shared by manufacturer Northrop Grumman on YouTube.

    The uncrewed underwater vehicle (UUV) completed the "full-scale" testing off the coast of southern California in February and March, the Defense Department's Defense Advanced Research Projects Agency (DARPA) announced in May.

    The new footage takes viewers on a "360-degree dive" with the vehicle, offering glimpses of its rounded shape and maneuverability.

    A second video posted by the company also shows the drone's propulsion system.

    "By incorporating numerous buoyancy engines, all working together efficiently, Manta Ray can operate for extended periods at a time and travel long distances at a variety of depths," the company says in the second video.

    "It can even anchor to the sea floor and hibernate until needed," it adds.

    While the Manta Ray's dimensions are not publicly available, Northrop Grumman classifies the drone as an "extra-large glider UUV."

    The Manta Ray being towed in preparation for testing.
    The Manta Ray.

    Courtesy of Northrop Grumman

    The Manta Ray program, launched in 2020, aims to develop payload-capable, autonomous UUVs that can operate in "long-duration, long-range missions in ocean environments."

    The drone's unique shape helps it save power and energy and carry "critical payloads or sensors" on lengthy missions, according to its manufacturer.

    "Our successful, full-scale Manta Ray testing validates the vehicle's readiness to advance toward real-world operations after being rapidly assembled in the field from modular subsections," Kyle Woerner, DARPA program manager for Manta Ray, said following testing.

    "The combination of cross-country modular transportation, in-field assembly, and subsequent deployment demonstrates a first-of-kind capability for an extra-large UUV," he added.

    DARPA says it is now working on the next steps for testing the drone.

    The Manta Ray off the coast of California this year.
    The Manta Ray.

    Courtesy of the Defense Advanced Research Projects Agency

    Sea drones have redefined traditional naval warfare in recent years. Their use in the Russia-Ukraine war has gained them widespread media attention.

    The relatively cheap technology has scored major hits for Ukraine on Russian battleships, including the Sergei Kotov patrol ship and the Ivanovets corvette.

    Ukraine has also used sea drones to attack key infrastructure like the Kerch Bridge, Russian President Vladimir Putin's prized link between the Russian mainland and the Crimean Peninsula, which Russia annexed from Ukraine in 2014.

    The threat to the Kerch Bridge appears to be significant enough for Russia to have started placing barges and other defenses in the area to reduce "the angles of approach for Ukrainian Unmanned Service Vehicles," the UK Ministry of Defence said.

    Read the original article on Business Insider

  • 3 of the best ASX 200 stocks to buy in FY25

    Four people gather around laptop and cheer

    A new financial year is on the horizon, so what better time to make some new additions to your investment portfolio.

    But which ASX 200 stocks could be buys?

    Let’s take a look at three best buys for FY 2025 according to analysts at Bell Potter. They are as follows:

    Bega Cheese Ltd (ASX: BGA)

    Bell Potter sees a lot of value in this diversified food company’s shares. Particularly given that its outlook is becoming more positive and its shares are trading on historically low forward earnings multiples. It explains:

    Our Buy rating remains on BGA is based on: (1) a historically low forward multiple; (2) consolidating milk processing infrastructure; and (3) the material valuation upside should BGA execute on its 5 year targets. In addition, we note that the key drivers of FY25e appear to have improved in recent months, with: (1) Australian milk production continuing to demonstrate YOY growth through 4Q24; (2) YOY gains in SMP pricing in FY25e futures markets; and (3) a material YOY downdraft in farmgate milk prices in FY25e based on minimum opens by major processors.

    Bell Potter has a buy rating and $5.35 price target on its shares. This implies potential upside of 26% for investors over the next 12 months.

    Neuren Pharmaceuticals Ltd (ASX: NEU)

    Another ASX 200 stock that Bell Potter is bullish on for FY 2025 is biotechnology company Neuren Pharmaceuticals.

    The broker believes it could be a great long term pick for patient investors. It explains:

    In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia’s commercialisation of NEU’s first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.

    Bell Potter has a buy rating and $28.00 price target on its shares. This suggests that potential upside of 32% is possible from current levels.

    Boss Energy Ltd (ASX: BOE)

    If you’re not averse to investing in the mining sector, then this uranium miner could be an ASX 200 stock to buy according to Bell Potter.

    The broker sees “significant value” in its shares right now. Especially given its geographically diversified multi-asset portfolio and the uranium bull market. It said:

    BOE’s Honeymoon project recommenced production in April-24, with first sales expected in July-24. The business over the last six months has changed somewhat, with the acquisition of a 30% interest in the Alta Mesa project with JV partner enCore energy in South Texas. We continue to see significant value in BOE, with optionality around expansion at Honeymoon via low-risk and cost regional resources at Jasons and Goulds Dam. With the inclusion of Alta Mesa, BOE boasts a geographically diversified multi-asset portfolio with several growth levers yet to be pulled, heading into a uranium bull market.

    Bell Potter has a buy rating and $6.35 price target. This implies potential upside of 54% for investors.

    The post 3 of the best ASX 200 stocks to buy in FY25 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bega Cheese Limited right now?

    Before you buy Bega Cheese Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bega Cheese Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 24 June 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.