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☆ We hear about companies reporting adjusted earnings all the time. Why do they do that?
▼ + stars: | 2023-06-29 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

This week's question: When reporting non-GAAP earnings, how do companies determine the numbers that are not generally accepted and how reliable they are? It also increases free cash flow, which is operating cash flow less capital expenditures. But many companies add back what was expensed for non-GAAP earnings. Restructuring charges are another item often added back to determine adjusted non-GAAP earnings results. This week's question: When reporting non-GAAP earnings, how do companies determine the numbers that are not generally accepted and how reliable they are?

Persons: Jim Cramer, Don, Jim Cramer's, Jim Organizations: Financial, Industry, billings, Club, Microsoft, Apple, Jim Cramer's Charitable, CNBC

☆ Aston Martin pulls out of slow lane in EV race
▼ + stars: | 2023-06-26 | by ( ) www.reuters.com time to read: +2 min

LONDON, June 26 (Reuters Breakingviews) - Aston Martin Lagonda’s (AML.L) route to viability is a brain-teaser worthy of Q, James Bond’s quartermaster famous for turning everyday objects into whizzy tools. The 2.6 billion pound carmaker’s latest deal with $11 billion Lucid (LCID.O) shows the marque made famous by the fictional spy is, however, making progress. The deal with Lucid – majority-owned by the PIF, handily enough – will make Aston’s ambition to roll out its first electric vehicle by 2025 more credible. The deal sent Aston shares up over 9% in early Monday trading. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Aston Martin Lagonda’s, Q, James Bond’s, Aston, Lawrence, –, Mercedes, Neil Unmack, George Hay, Oliver Taslic Organizations: Reuters, Jefferies, Public Investment Fund, Porsche, Mercedes, Benz, U.S, Aston, Twitter, Canada, Siemens, Telecom Italia, Vivendi, Thomson

☆ Morgan Stanley says this HVAC stock lacks near-term catalysts
▼ + stars: | 2023-06-08 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Carrier Global 's long-term potential is currently overshadowed by a catalyst-free near term, Morgan Stanley warned. Analyst Joshua Pokrzywinski downgraded the HVAC stock to equal weight from overweight and cut his price target by $2. "But view the lack of near-term catalysts and relative resilience vs. other HVAC names as an opportunity to focus elsewhere for the next few quarters." Pokrzywinski said recent portfolio announcements put the company on track for "significant growth acceleration and rerating potential" in the next one to two years. Still, he said a pure-play HVAC business could rerate as high as Trane levels, which would mean an upside of 18% to Carrier's valuation.

Persons: Morgan Stanley, Joshua Pokrzywinski, Pokrzywinski, Emerson, He's, CNBC's Michael Bloom Organizations: Carrier, Viessmann, Fire, Security, General Electric, European Commission

☆ Cramer says snap up this leading medtech stock — wishes he could buy shares too
▼ + stars: | 2023-06-08 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +6 min

GE Healthcare (GEHC) shares are sliding Thursday, giving Club members an opportunity to invest in the medical-technology company at an increasingly attractive valuation. The noise around this transaction seems to be dragging down GE Healthcare shares. Thursday's declines push GE Healthcare shares below our cost basis of $79.47, which typically is a welcome development for a newer, smaller position. Essentially, what's happening now is General Electric is exchanging more than a quarter of its GEHC shares in a deal with Morgan Stanley. So, it's hardly a surprise to see General Electric monetizing some of its GE Healthcare stake to improve its balance sheet.

Persons: Jim Cramer, we're, we'd, Jim, Electric's, isn't, Morgan Stanley, Larry Culp, Global's, dilutive, Jim Cramer's, Yi Haifei Organizations: GE Healthcare, Electric, GE, CNBC, General Electric, GE Vernova, Intel, Mobileeye, Fair for Trade, Services, China National Convention Center, China News Service, Getty Locations: China, Beijing

☆ Making money as a startup is hard, so these New Jersey companies are selling their financial losses in exchange for millions in cash
▼ + stars: | 2023-06-01 | by ( Darius Rafieyan | ) www.businessinsider.com time to read: +4 min

The state of New Jersey offers a unique program that allows startups in the state to sell those losses for cash. To date, TrueFort has pulled in $20 million through a New Jersey program for startups. Those companies can then deduct those losses from their taxable income, cutting the amount of money they pay in taxes. The NOL program is especially popular among biotech businesses like Lisata, which are characterized by large R&D expenses and unpredictable paths to profitability. The NOL program is part of a suite of programs designed to support New Jersey startups.

Persons: Sameer Mahorta, TrueFort, Malhorta, David Mazzo, Mazzo, Lisata, Mahorta Organizations: Partners, Shasta Ventures, New, New Jersey Economic Development Authority, state's Technology, Bank of America, NOL, Garden State Locations: New Jersey, Weehawken, Silicon, Garden

☆ Buybacks are a great tool to reward shareholders — but the timing has to be right
▼ + stars: | 2023-05-21 | by ( Zev Fima | ) www.cnbc.com time to read: +10 min

Now, as all good businesses do, it comes time for XYZ to start returning cash to its shareholders. Of course, for a buyback to make financial sense for a company, shares need to be purchased at an appropriate price. Assume that XYZ Corp. generated $10 billion in sales with a 10% net profit margin and has 1 billion shares outstanding, resulting in EPS of $1. The structure aligns management with shareholders, as their compensation is tied to the success of the company and, therefore, the stock. While that's a net positive for shareholders, it's not the same as, say, Apple' s (AAPL) approach to buybacks.

☆ Rakuten shares slump 6% on expected $2.2 bln new share issuance
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +1 min

The Japanese e-commerce and fintech company's board could meet as early as this week to decide on the capital raising, which is expected to raise roughly 300 billion yen ($2.2 billion), sources told Reuters on Monday. Prospects of a share dilution led on Monday to the biggest one-day drop in three years. "Whenever there is a large sale of new equity, that is dilutive but it also forces decisions about whether to hold. Some will be upset and will sell," said analyst Travis Lundy of Quiddity Advisors, who publishes on Smartkarma. Rakuten said in a statement it was not true that any such decision had been made.

☆ Here are Wednesday's biggest analyst calls: Apple, Tesla, Walmart, Chevron, Lumentum, Rivian & more
▼ + stars: | 2023-05-10 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Barclays initiates 10X Genomics as overweight Barclays said in its initiation of the gene sequencing biotech company that it has margin expansion opportunities for 10X. Barclays reiterates Apple as equal weight Barclays said in its analysis of Apple TV+ that "incremental content spend could take some cash away from buybacks." Goldman Sachs reiterates Chevron as neutral Goldman said it's waiting for an "upstream inflection" before getting positive on Chevron shares. Bank of America reiterates Virgin Galactic as underperform Bank of America said it still sees too much uncertainty for the spaceflight company. Bank of America reiterates Rivian as buy Bank of America saidit's standing by shares of the electric vehicle company after its earnings report on Tuesday.

☆ Why Porsche is investing $100 million on eFuels to keep its cars on the road
▼ + stars: | 2023-05-05 | by ( Robert Ferris | In | ) www.cnbc.com time to read: +3 min

Porsche has invested more than $100 million in the development of eFuels. "With this approach we have another lever, another opportunity to reduce the CO2 footprint for the combustion engine-driven cars," said Karl Dums, senior manager of eFuels at Porsche. "Electric cars are more expensive to produce, so they are margin dilutive," said Daniel Schwarz, managing director at Stifel. "And Porsche managed to increase the share of electric cars and increase the profitability in parallel." But critics of Porsche's $100 million push into eFuels argue the resultant fuel will be too expensive and inefficient to ever compete with electrification.

☆ Adidas runs harder, but also stands still
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +2 min

That beat analyst expectations of 15 million euros, and was aided by double digit sales growth in Latin America and Asia. The good cheer partly reflects the low expectations of Adidas’s investors. They hold shares worth about half their mid-2021 level, and while sales globally didn’t fall 4% as forecast, they still dipped 1% year-on-year. Meanwhile, CEO Bjorn Gulden has to decide what to do with stacks of Yeezy trainers in storage ever since the company severed ties with the musician. Although certain products like Gazelle and Sambo are doing well, the 40% margins on Yeezy sales were ten times Adidas’s overall level.

☆ Teleperformance launches 3 bln euro offer for call centre group Majorel
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

April 26 (Reuters) - Shares in Teleperformance (TEPRF.PA) dropped over 14% in early Wednesday trade after the French outsourcing and call centre group said it intends to buy rival Majorel (MAJ.AS) for 3 billion euros ($3.30 billion). The group, which employs more than 420,000 call centre workers worldwide, plans to raise 2.05 billion euros through a highly dilutive capital hike to entirely fund the acquisition. The announcement follows a $4.8 billion merger deal between U.S.-based competitor Concentrix Corp (CNXC.O) and French firm Webhelp in March. Majority shareholders in Majorel, Bertelsmann (BTGGg.F) and Saham, have irrevocably committed to tender their shares, Teleperformance said in a statement. Teleperformance is offering 30 euros per Majorel share, with an option for the latter's shareholders to receive Teleperformance shares at an exchange ratio of 0.1382.

☆ Here are Wednesday's biggest analyst calls: Netflix, Apple, Tesla, Amazon, Bowlero, Exxon & more
▼ + stars: | 2023-04-19 | by ( Michael Bloom | ) www.cnbc.com time to read: +8 min

UBS upgrades Exxon to buy from neutral UBS said in its upgrade of the oil and gas giant that it likes the company's balance sheet. Bank of America reiterates Meta as buy Bank of America says it likes "self-help stocks in an uncertain macro." Bank of America reiterates Nvidia as buy Bank of America raised its price target on the AI beneficiary to $340 per share from $310. Bank of America downgrades CDW to neutral from buy Bank of America downgraded the technology products company after its disappointing earnings report on Tuesday. Wolfe reiterates Amazon as outperform Wolfe says it's standing by its outperform rating on the stock heading into earnings next week. "

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☆ Stocks making the biggest moves midday: Rivian, Western Alliance, Peloton and more
▼ + stars: | 2023-04-19 | by ( Pia Singh | ) www.cnbc.com time to read: +6 min

Netflix posted a quarterly revenue of $8.16 billion, slightly below the $8.18 billion expectation per Refinitiv. Zion rose 4.3% ahead of its earnings report after the bell. Tesla — The electric vehicle maker pulled back 1 % ahead of its scheduled quarterly earnings after Wednesday's closing bell. CDW issued quarterly revenue guidance of $5.1 billion, which came out below the $5.58 billion consensus estimate from analysts surveyed by FactSet. Citizens Financial reported earnings per share of $1, falling short of analysts' expectations of $1.13, according to Refinitiv data.

The recent selloff of Global Payments shares presents a prime buying opportunity for investors, according to Goldman Sachs. Analyst Will Nance upgraded Global Payment shares to buy. The analyst thinks that recent mergers and acquisitions Global Payments has undertaken should simplify business and put it on track towards "the highest growth vertical." But, Goldman Sachs said investors have become too negative around the share loss narrative for the stock. GPN YTD mountain Global Payments stock —CNBC's Michael Bloom contributed to this report.

☆ My small business banked at SVB and almost lost $300,000. I worry some banks will never take care of Black of women founders.
▼ + stars: | 2023-03-25 | by ( Alexandra York | ) www.businessinsider.com time to read: +4 min

Gilbert revealed how other founders of color can protect themselves amid banking uncertainty. Gilbert, who has raised $1.3 million in pre-seed VC, revealed how other founders can protect themselves amid banking uncertainty. Many of the women who were impacted by SVB, specifically the Brown women, noticed how quickly our government reacted. Founders need to find opportunities that will serve themIt's important that founders find opportunities that will protect them along the way. When SVB closed, I was pushed toward FWB by my investors as the bank opened floods of accounts for other women founders and founders of color.

☆ Piper Sandler says this struggling bank stock is not the next SVB, buy the dip
▼ + stars: | 2023-03-23 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

PacWest Bancorp has withstood large withdrawals in deposits, and the regional bank stock is now set up for a rebound, according to Piper Sander. PacWest was one of several regional banks that saw deposits pulled by customers in the aftermath of the failure of Silicon Valley Bank. PACW 1M mountain PacWest's stock has dropped sharply since the failure of SVB. The company also said Wednesday that deposits have stabilized and that it had decided against a capital raise. Piper Sandler has a price target of $33 per share for PacWest, which is more than 200% above where the stock closed on Wednesday.

☆ First Republic slumps after report of potential government backing in deal
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - Shares of First Republic Bank (FRC.N) tumbled 14% in extended trade on Tuesday following a report that a potential deal for the troubled bank could rely on government backing to encourage buyers. Potential government backing in a deal to save First National could involve conditions at the expense of the bank's shareholders, said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. While a sale of the entire bank remains possible, First Republic is currently focused on raising capital, the third source said. First Republic's shares had surged as much as 60% on Tuesday before closing up 30%, but even so First Republic's stock has lost over 80% in value in the past two weeks. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ The SVB fallout has been a wake up call for startup founders. Many are rethinking their VC relationships: 'There's certain people I wouldn't want to take money from now.'
▼ + stars: | 2023-03-21 | by ( Stephanie Palazzolo | ) www.businessinsider.com time to read: +5 min

Startup founders are wary of some VCs after their actions during the SVB crisis. Some founders were disheartened by investor advice on what to do with their money in SVB. "There's certain people I wouldn't want to take money from now," Sami Khan, cofounder and CEO of mobile games company Atlas Reality told Insider. He adds that it's difficult to blame people, both investors and founders, for the decisions they make in fast-moving situations. Without access to the dependable venture debt SVB offered, more founders may be forced to turn to dilutive venture capital for financing instead.

☆ Astra outlines its plan to avoid Nasdaq delisting, including possible reverse stock split
▼ + stars: | 2023-03-16 | by ( Michael Sheetz | ) www.cnbc.com time to read: +2 min

Spacecraft engine manufacturer and small rocket builder Astra on Thursday outlined a plan to avoid having its stock delisted from the Nasdaq. In its plan, Astra also noted the possibility of conducting a reverse stock split to get back into compliance with Nasdaq's listing standards. A reverse split does not affect the fundamentals of a company, as it is not dilutive to the stock and does not change the company's valuation, but it would lift the stock price by combining shares. Functionally, a reverse split, often done as a 1-for-10, would mean a $3 stock, for example, would become $30 a share. "Astra continues to actively monitor our listing status and intends to preserve our Nasdaq listing," Martinez wrote.

☆ Stripe slashes valuation to $50 billion in new $6.5 billion funding round
▼ + stars: | 2023-03-15 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Payment processor Stripe raised $6.5 billion at a $50 billion valuation, the company said Wednesday, a sharp discount from its record valuation of $95 billion in 2021. Goldman Sachs served as the sole placement agent, while J.P. Morgan served as Stripe's financial advisor. "We're very happy as a private company," Stripe co-founder John Collison told CNBC in 2021. In July, Stripe cut its internal valuation by 28%, from $95 billion to $74 billion. Then in January, The Information reported that Stripe again lowered its valuation to $63 billion.

☆ When Silicon Valley Bank imploded it took a $70 billion loan portfolio with it. Competitors are already stepping in to fill the gap.
▼ + stars: | 2023-03-14 | by ( Darius Rafieyan | ) www.businessinsider.com time to read: +7 min

Silicon Valley Bank had more than $70 billion in credit lines on its books when it failed. He's one of many who now stand to benefit from the sudden disappearance of one of Silicon Valley's most reliable lenders. Venture debt, like a typical venture-capital investment, involves betting big on fledgling startups that may be far off from profitability. Another person in SVB's venture debt business said that employees are working hard to maintain "business as usual" so as to make SVB's loan portfolio more attractive to a potential buyer. An opportunity for the competitionNone of this has stopped other lenders from stepping up to try to win some of SVB's debt business.

☆ Billionaire investor Bill Ackman says SVB was not a bailout: 'The people who screwed up will bear the consequences'
▼ + stars: | 2023-03-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

US regulators are guaranteeing depositors' funds after the Silicon Valley Bank and Signature Bank collapsed. But this isn't "a bailout in any form," said billionaire investor Bill Ackman. The US government is protecting depositors and not the management or shareholders, he said. In his tweet, Ackman even applauded US authorities' intervention, saying the government "did the right thing for the country" by protecting depositors. The legendary investor has been quite vocal about the wild ride in the US banking industry amid the collapse of Silicon Valley Bank and Signature Bank.

☆ Silicon Valley Bank's collapse means startups and VCs face billions in losses
▼ + stars: | 2023-03-11 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +4 min

SVB's startup and VC customers are staring down huge losses after its failure. A buyer is being sought for the failed bank by Monday to avoid more calamity for startups. SVB customers stare down big lossesIn a report on Friday, the ratings agency Moody's said it expected a recovery rate of 80% to 90% for uninsured depositors. While there were likely billions in deposits withdrawn prior to SVB's closure, there's still likely to be many billions left at risk. SVB's deposits soared in recent years as it became the go-to lender in the VC ecosystem.

☆ Paul Krugman says Silicon Valley Bank could've been called the 'Schmoozing and Vibes Bank,' but it's probably not another 'Lehman moment'
▼ + stars: | 2023-03-11 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

Paul Krugman said SVB maybe should have been called the "Schmoozing and Vibes Bank." As far as I can tell, it was just unusually good at cultivating relationships with, um, Silicon Valley, specifically VC," Krugman said. "Maybe it should have been called Schmoozing and Vibes Bank." While this created huge problems for SVB, Krugman believed there was little chance of contagion to other banks. The Nobel Prize-winning economist said he did worry about the effects of SVB's collapse on the broader VC ecosystem.

☆ Mark Cuban called on the Federal Reserve to step in and buy Silicon Valley Bank's debt 'to end the run'
▼ + stars: | 2023-03-11 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

Mark Cuban pleaded with the Federal Reserve to buy the debt of SVB Financial Group. In a Twitter thread, "Shark Tank" star Cuban called on the Fed to step in and buy any debt belonging to SVB to prevent a run on deposits. "The Fed should IMMEDIATELY buy all the securities/debt the bank owns at near par, which should be enough to cover most deposits. Cuban added that if the Fed didn't act, trust in the banking system would become an issue. Cuban said a Fed purchase of SVB debt wouldn't constitute a bailout.

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