Category Archives: Business

Business

Costco exceeded both earnings and revenue forecasts as sales increased by 8%

Leave a comment

On Thursday, Costco reported quarterly earnings and revenue that surpassed expectations due to an 8% rise in sales.

Here’s a comparison of the warehouse club retailer’s performance in its fiscal third quarter with Wall Street’s predictions, derived from a survey of analysts by LSEG:

Earnings per share: $4.28 compared to an expected $4.24

Revenue: $63.21 billion against the anticipated $63.19 billion.

Costco market performance

For the three-month span ending May 11, Costco’s net income grew to $1.90 billion, translating to $4.28 per share, compared to last year’s $1.68 billion, or $3.78 per share. Revenue increased from $58.52 billion in the same quarter last year.

Comparable sales, a key industry measure that excludes one-off factors like store openings and closures, saw an 8% rise, and e-commerce sales climbed nearly 16% relative to the prior year period, excluding gas and the effect of currency fluctuations.

As tariffs heighten economic concerns and may increase consumer prices, Costco could gain from these changes. Unpredictable tariff policies might draw more customers to Costco, known for competitive pricing and bulk discounts, and encourage their membership renewals. The club’s offerings also include discounted gas and groceries, which consistently attract customers even when consumer spending diminishes. Additionally, Costco’s large scale gives it a stronger position for price negotiations with suppliers compared to many other retailers.

In contrast to numerous other retailers, Costco does not provide a yearly forecast. Additional insights regarding the quarterly performance are expected during an earnings call set for 5 p.m. ET.

During the March earnings call, CEO Ron Vachris indicated that members increasingly depend on Costco during tough economic times.

“During uncertain periods, our members have historically valued high-quality products at excellent prices even more, and our teams will continue to meet this challenge by utilizing our global buying power, robust supplier partnerships, and innovative strategies,” Vachris remarked earlier.

Approximately one-third of Costco’s U.S. sales comprise imported goods, with less than half of that total deriving from China, Mexico, and Canada, as Vachris noted in March.

However, tariffs might also raise costs for Costco, potentially leading to higher prices for customers. Earlier on Thursday, Best Buy’s CEO Corie Barry stated that the retailer had already increased prices on certain consumer electronics due to tariffs. Last week, cosmetics brand E.l.f. Beauty declared a price hike on its makeup products. Walmart’s CFO John David Rainey also cautioned earlier this month that elevated prices would be available at the discount retailer’s stores and website in late May or June.

As of Thursday’s market close, shares have risen around 10% year-to-date, outpacing the S&P 500’s gains of less than 1% during that time.

Business

Belrise Industries’ stock price declined by 4% after a solid initial public offering (IPO). Should investors consider buying, selling, or holding their shares?

Leave a comment

Belrise Industries share price: The stock was launched on May 28, starting at ₹100 on the NSE and ₹98.5 on the BSE, indicating good demand with a subscription rate of 41.30 times. Although it experienced initial gains, the stock hovered around ₹96 as analysts recommended holding for the long term amidst market fluctuations.

Belrise Industries made a strong entrance in the stock market on Dalal Street today, May 28, as the shares opened at an 11.11% premium at ₹100 each on the NSE, compared to the offer price of ₹90. On the BSE, the listing was at a 9.44% premium at ₹98.5 per share.

After a robust opening on the exchanges, Belrise Industries’ stock briefly rose to a daily peak of ₹102 but failed to maintain that level, trading close to ₹96 by noon (representing a 4% drop from the listing price). The IPO saw excellent engagement from all investor categories, achieving an overall subscription of 41.30 times during the bidding period from May 21 to May 23.

Following the IPO debut of Belrise Industries, Prashanth Tapse, Senior VP (Research) at Mehta Equities, remarked that the listing fell short of market expectations due to a weak market atmosphere. He highlighted that the IPO had an exceptional response, with a total subscription exceeding 41 times, greatly surpassing anticipations.

Market expert says about Belrise Industries’ stock

He recommended that, considering the current market trends and inherent risks, long-term investors who were allotted shares should hold onto them, even with anticipated short- to medium-term volatility. For more conservative investors, he advised taking profits on the first day of trading.

Gaurav Garg from Lemonn Markets Desk mentioned that Belrise Industries had a strong market debut on May 28, opening at ₹100 on the NSE (an 11.11% premium) and ₹98.5 on the BSE (a 9.44% premium) against the issue price of ₹90. He indicated that there was significant demand for the IPO, with qualified institutional buyers subscribing 108.35 times, non-institutional investors 38.33 times, and retail investors 4.27 times.

He pointed out that Belrise is an important supplier of vital components and engineering solutions for various vehicles, including two-, three-, and four-wheelers, along with commercial and agricultural vehicles. The company collaborates with major original equipment manufacturers (OEMs) like Hero MotoCorp, Bajaj Auto, and Jaguar Land Rover. According to Garg, its strong relationships with OEMs and focus on forward-looking sectors position it as a promising option for medium- to long-term investors.

Business

Okta’s stock fell by 11% as the company maintained its forecast, citing economic uncertainties

Leave a comment

On Tuesday, Okta reported earnings and revenue that surpassed expectations, but kept its guidance unchanged as the identity management software firm navigates a challenging economic environment. The shares dropped 11% in after-hours trading.

Here’s a comparison of the company’s performance against LSEG forecasts:

Adjusted EPS was 86 cents compared to the expected 77 cents.
Revenue reached $688 million versus the anticipated $680 million.
For the fiscal first quarter, revenue grew by 12% from $617 million a year ago, with subscription revenue also rising by the same percentage to $673 million.

Okta recorded a net income of $62 million, or 35 cents per share, bouncing back from a net loss of $40 million, or 24 cents per share, the previous year.

The company stated it is adopting a “prudent approach” to its projections by keeping its previous guidance for the fiscal year. Okta has indicated it expects revenue between $2.85 billion and $2.86 billion for the year.

Okta CEO said in an interview

“In considering our future outlook, we are being somewhat conservative due to potential macroeconomic uncertainties ahead,” said CEO Todd McKinnon in an interview. “Overall, we believe we are well-positioned in our identity security market.”

Many companies in the technology sector and other industries have retracted their forecasts since President Donald Trump announced extensive new tariffs in April. Recently, the market has seen a recovery as the administration has retracted or delayed several of these tariffs.

McKinnon noted that conversations with customers have become “more cautious,” but emphasized that the business was not adversely affected in the first quarter.

Current performance obligations reached $2.23 billion, which is above the $2.19 billion estimate from StreetAccount.

Business

Shares of solar companies decline: Waaree Energies drops 10%, Premier Energies falls 5% – What’s fueling the decline?

Leave a comment

Shares in Indian clean energy firms experienced a setback on Friday morning, as Waaree Energies’ stock plummeted over 10%, while Premier Energies saw a decrease of more than 5% during early trading. This steep decline follows a significant sell-off of solar and clean energy stocks based in the US, prompted by a contentious new tax legislation that may retract essential subsidies for the industry.

The source of the alarm can be traced back to the U.S. capital. A contentious new budget proposal, referred to as the “Big, Beautiful Bill” and supported by Republican legislators and President Donald Trump, narrowly secured approval from the US House of Representatives with a 215-214 vote. If the Senate passes the bill, it could undo crucial clean energy incentives established through President Biden’s Inflation Reduction Act.

The legislation suggests abolishing a 30% federal tax credit for homeowners who install rooftop solar panels. Additionally, it intends to revoke grants aimed at diminishing air pollution, lowering greenhouse gas emissions, and supporting electric heavy-duty vehicles. The bill also proposes stricter compliance measures for foreign entities, which could hinder both utility-scale and rooftop solar installations.

U.S. clean energy firms were the first to bear the brunt of the news. Sunrun, the largest rooftop solar provider in the U.S., and NextEra Energy, a prominent developer in wind and solar, saw their stock prices nosedive during the trading period.

The decline in Waaree Energies’ shares is particularly significant due to the company’s exposure to the U.S. market. At the start of FY26, Waaree disclosed an order book worth Rs 47,000 crore, with 57% tied to international markets.

Similarly, Premier Energies has also been impacted by the prevailing negative sentiment. The company’s shares fell by over 5% today, reflecting the general concerns.

Waaree Energies stock performance

Waaree Energies has had a varied performance lately. Although the company’s stock has dropped 7% in the last five trading days and decreased 11% over the prior month, it maintains a 3% gain over a six-month period. Year-on-year, the solar Solutions provider has achieved a 14% increase. Nonetheless, 2025 has had a poor start, with the stock down 6% so far this year.

Premier Energies’ shares have also encountered challenges. The stock has decreased by 9% in just the past week and has lost 3% in the previous month. Its six-month performance is also negative, falling by 5%. Despite this setback, the company managed a 23% return over the past year. However, similar to Waaree, 2025 has been tough, with Premier’s stock dropping 22% year to date.

Business

Shares of Protean eGov Technologies, under the ownership of Ramesh Damani, have dropped 20% after the weekend’s developments

Leave a comment

The steep decline in the company’s share price followed the Income Tax Department’s decision not to select them for its PAN systems overhaul project. Despite this obstacle, the company asserts that it will have a negligible impact on its current PAN processing services. The stock’s downfall has erased all gains recorded over the past year, even with prominent investors like Ramesh Damani holding shares.

Protean eGov Technologies’ shares fell sharply by 20%, hitting the lower circuit limit of Rs 1,143 on BSE due to its exclusion by the Income Tax Department (ITD) from the technology revamp project. This initiative involves the design, development, execution, operation, and maintenance of the PAN systems.

“We received a communication from the Income Tax Department (ITD) indicating that we were not favorably considered for the next stage of the RFP selection process,” Protean mentioned in a regulatory announcement on Sunday.

The company indicated that the project relates to a technology overhaul of the PAN systems at the Income Tax Department. “It seems that this might have limited or minimal impact on our existing PAN processing and issuance services under the current mandate with the ITD,” it further explained.

Protean had entered the bidding for the role of a Managed Service Provider (MSP) for the PAN 2.0 Project.

Protean eGov Technologies’ performance

In the wake of this drop, the stock has wiped away all gains from the previous year and has seen a decrease of over 4% in the last 12 months. Renowned investor Ramesh Damani possessed a 1.05% stake in the company as of the March quarter.

The firm’s institutional shareholders encompass Canara Bank (1.23%), Bank of Baroda (1.54%), Punjab National Bank (2.25%), Axis Bank (3.18%), and State Bank of India (4.93%).

As per Trendlyne data, the stock has received four ‘buy’ recommendations, with an average target price of Rs 2,104, suggesting a potential upside of 47%.

Business

Are the Sensex and Nifty at risk of crashing and reaching lower circuit levels as tensions between India and Pakistan escalate?

Leave a comment

The Indian stock markets are expected to open significantly lower on Friday due to rising geopolitical tensions between India and Pakistan that developed after market hours on Thursday.

Analysts suggest that these developments could lead to a sharp decline in the markets on Friday, but they do not anticipate that the Sensex and Nifty 50 indices will reach their respective lower circuit limits.

“On Friday, the markets will likely experience a substantial setback, although the likelihood of hitting a lower circuit at this point appears remote. I believe the Nifty could drop by more than 500 points, while the Sensex may fall by about 2,500 to 3,000 points if the geopolitical situation worsens with Pakistan. A formal update from authorities on the impact of the situation could calm investors and stabilize the markets. The ongoing uncertainty is intensifying market fears,” stated Ambareesh Baliga, an independent market analyst.

“The future of geopolitical events between India and Pakistan is unpredictable. This uncertainty will keep the markets on edge and could drive the Nifty down an additional 5 percent from current levels, regardless of global market conditions. The issues between India and Pakistan are localized events when viewed alongside global cues,” added U R Bhat, co-founder and director of Alphaniti Fintech.

For the Nifty 50 index to reach the lower circuit, it must decline by 10 percent to levels around 21,846.20 on Friday. If this occurs before 1 PM, trading will be paused for 45 minutes.

If the 10 percent lower circuit is triggered between 1 PM and 2:30 PM, a 15-minute trading halt will ensue, while a drop after 2:30 PM will not affect trading, according to exchange regulations.

Notable Nifty and Sensex thresholds to monitor include:

The Nifty’s 15 percent lower circuit at 20632.73.

If the Nifty reaches the 15 percent lower circuit before 1 PM, trading will stop for 1 hour and 45 minutes.

If it happens between 1 PM and 2 PM, trading will be suspended for 45 minutes.

Should the 15 percent circuit be hit after 2 PM, trading will cease for the rest of the day.

Additionally, if the Nifty hits the 20 percent lower circuit (19419.04 levels) at any time during the trading day, trading will be discontinued for the remainder of that day, per stock exchange regulations.

10 percent – 72301.329
15 percent – 68284.5885
20 percent – 64267.848

“I don’t foresee the Sensex and Nifty 50 reaching their respective lower circuits tomorrow, but a steep decrease is anticipated. I expect the mid-cap and small-cap sectors to be the most affected. At the index level, both mid-cap and small-cap indexes could decline by approximately 5 percent each, with some specific stocks in these sectors suffering declines exceeding 10 percent,” remarked G Chokkalingam, founder and head of research at Equinomics Research.

Business

Operation Sindoor: How the Last Five India-Pakistan Wars Influenced the Indian Stock Market

Leave a comment

The market reversed direction, showing resilience in investor confidence, with the BSE Sensex increasing by 70 points to reach 80,710 and the Nifty 50 rising by 10 points to 24,403.

In light of the India-Pakistan conflict, Indian stock indices opened slightly lower amid escalating geopolitical concerns, following India’s strikes on nine locations in Pakistan in retaliation for last month’s incident in Kashmir.

The BSE Sensex initially sat at 80,596, reflecting a 0.06% decrease, while the Nifty 50 also saw a 0.06% drop to 24,366 during early trading.

Nonetheless, the market rebounded, showing that investors’ sentiments were undeterred, as the BSE Sensex rose by 70 points to reach 80,710, with the Nifty 50 climbing by 10 points to 24,403.

performance of the Indian stock market throughout the five conflicts between India and Pakistan

Historically, the Nifty 50 has demonstrated resilience in the face of heightened tensions between India and Pakistan, with declines being relatively mild, averaging only a 5.27% downturn, as reported by Bajaj Broking’s Market Outlook report.

“Notable exceptions to this pattern include the 2001 Indian Parliament attack and the 2008 Mumbai Taj attacks, where the market saw sharper declines, largely influenced by global economic conditions rather than the conflicts themselves. Overall, this suggests that investors often overlook short-term geopolitical issues, focusing instead on the larger economic landscape,” the brokerage firm noted.

This suggests that although short-term fluctuations may occur, the market often rebounds and achieves significant gains over the medium term.

Business

Here’s the anticipated movement of Palantir stock following the earnings report, according to traders

Leave a comment

Palantir Technologies (PLTR) is expected to announce its quarterly results after the market closes on Monday, and traders are preparing for a significant stock movement.

Options pricing indicates that traders anticipate Palantir’s stock to fluctuate more than 12% in the days following Monday’s earnings report. An increase of that magnitude would elevate Palantir stock to an all-time high around $139, while a drop of the same size would bring shares down to approximately $108.

Last year, Palantir was the top-performing stock in the S&P 500, rising 340%, and it held the position as the leading stock in the index this year as well, as of Friday’s close. The shares have surged over 60% since the beginning of 2025, while the overall S&P 500 has experienced a slight decline of just over 3%.

Palantir, a rising defense contractor, has recently profited from both a surge in demand for artificial intelligence (AI) services and the shifting priorities of Washington. The U.S. government represented more than 40% of Palantir’s revenue in the fourth quarter, which potentially exposes it to cost-cutting initiatives from President Trump and Elon Musk.

However, the company’s emphasis on AI, combined with Trump’s intent to boost spending on immigration enforcement and military initiatives, is expected to serve as positive factors for Palantir.

The latest earnings reports have driven Palantir’s stock upward

Following each of the company’s two most recent earnings announcements, shares have jumped more than 20%. In both February and last November, the company reported that strong demand for its AI platform propelled quarterly revenue growth of 30% or greater in the previous quarters.

Wall Street analysts project that Palantir will announce a 36% increase in revenue for the first quarter, with adjusted earnings rising over 60%, as per analysts tracked by Visible Alpha. Yet, due to the rapid rise of the stock in the past year and a half, only one analyst currently recommends purchasing it at its present price.

Still, the company has garnered a loyal base of retail investors who appear uninterested in selling. Analysts from Vanda Research noted earlier this year that Palantir ranks as the third most favored stock among individual investors, trailing only Nvidia (NVDA) and Tesla (TSLA). An Investopedia survey indicated that readers were just as eager to buy the dip in Palantir stock last month as they were with tech giants like Amazon (AMZN) and Apple (AAPL).

Business

Warren Buffett surprised shareholders by announcing his plans to retire at the year’s end

Leave a comment

The esteemed investor stunned an audience packed with shareholders on Saturday when he expressed his wish to step down by the end of the year.

Buffett stated he would suggest to Berkshire Hathaway’s board that Greg Abel should assume the role of CEO by year-end.

“I believe the moment has come for Greg to take on the position of Chief Executive Officer of the company at the end of the year,” Buffett remarked.

For years, Abel has been Buffett’s chosen successor and currently oversees Berkshire’s non-insurance operations. However, it was traditionally believed he would not take charge until after Buffett’s passing. Previously, the 94-year-old Buffett had consistently claimed he had no intention of retiring.

Warren Buffett revealed some information

Buffett revealed this information at the conclusion of a five-hour session of questions and answers and did not entertain any inquiries regarding the announcement. He mentioned that the only board members aware of this announcement were his two children, Howard and Susie Buffett. Abel, sitting beside Buffett on the stage, was caught off guard.

Many investors believe that Abel will effectively lead Berkshire, but it remains uncertain how adept he will be at managing the company’s investments. On Saturday, Buffett publicly supported him by confirming that he would continue to have his wealth invested in the firm.