Tag Archives: Stocks

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

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

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

Kohl’s stock has risen nearly 10% following the dismissal of CEO Ashley Buchanan due to unethical conduct

Leave a comment

The company stated that Buchanan’s firing was ‘not connected to the performance of the business,’ which has suffered from reduced sales.

Kohl’s stock performance

Shares of Kohl’s Corporation (NYSE: KSS) increased by almost 10% on Thursday after the board terminated CEO Ashley Buchanan just four months into his tenure. Michael Bender, the board chair, has been appointed as the interim chief executive officer, effective immediately.

Buchanan’s dismissal followed an investigation by the Kohl’s board, which discovered that he breached the company’s code of conduct twice and was involved in undisclosed conflicts of interest due to a personal relationship with a vendor, as reported by The Wall Street Journal.

“Kohl’s stated that Buchanan’s termination is not related to the company’s performance, financial reporting, or operational results and did not involve any other company personnel.”

According to USA Today, the former CEO had a total compensation package exceeding $20 million.

On Thursday, Bender and other executives held a company-wide meeting to communicate the leadership changes and to reassure employees, as reported by the WSJ. Bender now becomes the fourth CEO to lead the struggling retailer in just three years, which continues to experience a downturn in sales.

Along with the leadership announcement on Thursday, Kohl’s also shared preliminary predictions for its first-quarter financial results, estimating that sales would likely decline by approximately 4%. The company will disclose these earnings at the end of this month on May 29 at 9 a.m.

Similar to many retailers, Kohl’s has been facing challenges with falling sales and reduced foot traffic due to consumers cutting back on spending in light of rising living costs and preferring online shopping over in-store visits.

Business

The recent surge in the VIX could indicate a bullish trend for the stock market

Leave a comment

Wall Street’s measure of fear might not be as alarming if one focuses on long-term investments.

According to Charlie Bilello, the chief markets strategist at Creative Planning, the CBOE Volatility Index (^VIX) experienced its largest three-day surge of the year recently. On April 7, the VIX hit its highest point in 2025 at 46.98 as international markets responded to worries over Trump’s tariffs.

Market Performance of VIX

From April 4 to April 7, the VIX surged by 118%, making it the fifth-largest increase recorded since 2014, based on Bilello’s analysis.

Interestingly, although traders frequently utilize the VIX as a short-term indicator of market fear, historically, its extreme levels have suggested a bullish outlook for stocks over the long term.

After analyzing VIX spikes over the last decade, which ranged from 63% to 176%, Bilello found that the average one-year return for the S&P 500 (^GSPC) amounted to around 4.4%. Furthermore, five years following the VIX increase, the S&P 500 has shown an average return of 10.2%.

“Bilello mentioned on X that ‘high volatility and fear present a chance,’ seeking to explain the beneficial aspects associated with a measure frequently seen as bearish.”

Currently, the VIX is at 40. In line with Bilello’s findings, buyers have started to surface in the currently depressed stock market.

The Dow Jones Industrial Average (^DJI) surged by 3.4%, gaining over 1,300 points at the opening, as traders seized on reports that the Trump administration has begun trade talks with Japan and other nations. Notable rises are also happening in the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC).

This development is interpreted as an indication that Trump’s widespread tariffs, which are expected to be implemented on Wednesday, will serve as a negotiating strategy.

Business

Tesla stock falls as worries grow over Trump’s tariff proposals

Leave a comment

Tesla Inc. stock experienced a decline on Monday as investors reacted to increasing macroeconomic uncertainty following U.S. President Donald Trump’s announcement of new tariffs.

Key Information: Trump revealed intentions to implement 25% tariffs on imports from Canada and Mexico, along with 20% tariffs on goods from China, effective Tuesday. This announcement has heightened worries about rising costs for American consumers and the likelihood of increased inflation.

Economic indicators have already shown signs of deterioration, with consumer spending falling in January and some GDP predictions turning negative. Inflation continues to surpass the Federal Reserve’s 2% target, with the Consumer Price Index jumping 3% in January, which was higher than economists had anticipated.

While Treasury Secretary Scott Bessent diminished the inflationary consequences of the tariffs by stating that China would bear the costs, investors remain wary. St. Louis Federal Reserve President Alberto Musalem noted that short-term inflation expectations have “increased significantly” in recent weeks.

The Federal Reserve has kept interest rates steady at a target range of 4.25% to 4.5% since January, and the likelihood of maintaining this range during the next meeting stands at 93%, as per the CME Group’s FedWatch tool.

Tesla Stocks Monday report

TSLA Stock Movement: Tesla shares fell by 2.84% to $284.65 at the close of the market on Monday.

Business

Recently, hedge firms that were shorting Tesla lost over $5 billion

Leave a comment

Hedge funds that have held onto their wagers against Tesla Inc. (TSLA) since Donald Trump’s election victory have lost billions of dollars as a result of the unique bond between Elon Musk and the president-elect.
According to Bloomberg calculations based on data provided by S3 Partners, hedge funds that had short positions against Tesla between election day and Friday’s closing suffered on-paper damage of at least $5.2 billion.

According to secondary data given by Hazeltree, which tracks the positions of over 500 hedge funds, they were one of a shrinking group caught off guard as many of their peers liquidated bets against Tesla over the past four months. That change in roles came at the same time as Musk’s endorsement of Trump on July 13.

The CEO of Tesla has become the biggest admirer of Trump among billionaires. Musk is one of the largest donors to the 2024 race since he has fueled Trump’s campaign with his wealth as the richest person in the world. Since Trump has made it apparent that he intends to reward loyalists, Musk’s decision to align with the president-elect now positions him for a position of political influence.

He had “a small short in Tesla heading into the election,” according to Per Lekander, CEO of hedge fund manager Clean Energy Transition. His losses were “pretty small” because he had been able to reduce the position “quite a lot.”

He said, “But we have lost some money.”

Tesla Stock

Tesla’s stock has increased by about 30% since the election on November 5. representing well over $200 billion in additional market value, the corporation was worth more than $1 trillion by Friday. In light of this, hedge funds that had previously placed short bets have hurried to change their strategy.

Weekly data from Hazeltree shows that as of Nov. 6, just 7% of hedge funds were net short Tesla, compared to 17% in early July. Only 8%, however, are net long in stock.

Even while the rest of the EV industry faces challenges like trade tensions, declining consumer demand, and heightened competition, Tesla has proven to be a risky company to short. Nearly one-fifth of the hedge funds that Hazeltree tracks had placed bets on Tesla in July, but they were severely misguided when the firm released sales data that set off a sharp increase.