Why Nvidia Stock Is Plummeting Again Today
Nvidia (NASDAQ: NVDA) stock is getting hit with another day of big sell-offs Friday. The company’s share price was down 4.5% as of 1:15 p.m. ET, according to data from S&P Global Market Intelligence.
Nvidia stock is losing ground in conjunction with an underwhelming jobs published by the U.S. Labor Department today. Recent news about an investigation into the company by the Department of Justice (DoJ) on antitrust grounds is also playing a role in the pullback.
Disappointing jobs numbers are dragging Nvidia stock down
Starting in 2022, the Federal Reserve began an aggressive campaign of interest rate increases designed to combat roaring inflation. The U.S. central banking authority had sought to engineer an economic soft landing that would slow currency devaluation while also avoiding a recession.
While the Fed is widely expected to finally deliver an interest rate cut later this month, investors have recently become more skeptical about the likelihood of the soft-landing scenario being achieved. The jobs report published by the Labor Department today have provided the latest bit of bad news on that front, and Nvidia and other growth stocks are getting hit particularly hard.
According to the data, the U.S. added 142,000 jobs in August — falling short of the average Wall Street target’s call for 160,000 new job additions. The size of the miss is particularly notable because analysts and economists had already started to revise targets downward in light of other economic indicators. For example, investors received news earlier in the week that U.S. manufacturing production had declined again last month. So even though the long-awaited pivot to rate cuts now appears to be imminent, investors may not be getting the bullish macroeconomic backdrop they had hoped for.
Is Nvidia in danger of an antitrust suit?
On Tuesday, Bloomberg published a report stating that Nvidia had received a subpoena from the Justice Department as part of an antitrust investigation. The media outlet first reported on the probe in June, and its subpoena report raised concerns that the investigation was escalating and prompted sell-offs of the artificial intelligence (AI) leader’s stock.
Nvidia responded publicly to Bloomberg’s report yesterday and stated that it had not been subpoenaed by the DoJ, which helped spur a rebound for the stock, but the possibility of a looming antitrust suit was thrust back into the spotlight. In a report published today, Business Insider detailed a letter written by Senator Elizabeth Warren voicing support for an antitrust investigation into Nvidia. Warren raised concerns that the company has become too influential in the AI space and stated that its dominant market position posed “dire economic risks.”
Nvidia’s advanced graphics processing units (GPUs) have become the foundational hardware for AI training and other applications, and the company has a commanding lead in the product category. But while the company dominates the advanced GPU market, it’s not clear that the DoJ would win an antitrust suit against the company even if it decided to pursue such action.
For risk-tolerant investors willing to embrace volatility, recent pullbacks for Nvidia stock could be a worthwhile buying opportunity.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $656,938!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 3, 2024
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Why Nvidia Stock Is Plummeting Again Today was originally published by The Motley Fool
Treasury recovers $1.3 billion in unpaid taxes from high-wealth tax dodgers
WASHINGTON (AP) — The IRS has collected $1.3 billion from high-wealth tax dodgers since last fall, the agency announced Friday, crediting spending that has ramped up collection enforcement through President Joe Biden’s signature climate, health care and tax package signed into law in 2022.
Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel traveled to Austin, Texas, to tour an IRS campus and announce the latest milestone in tax collections as Republicans warn of big future budget cuts for the tax agency if they take over the White House and Congress.
Yellen said in a speech in Austin that in 2019, the top one percent of wealthy Americans owed more than one-fifth of all unpaid taxes, “leaving ordinary Americans to shoulder the burden.”
“To fix this, we’ve channeled IRS funding toward significant investments to combat tax evasion,” she said.
In 2023 and 2024 the IRS launched a series of initiatives aimed at pursuing high-wealth individuals who have failed to pay their tax debts. The IRS said the campaign is focused on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt.
Agency officials said since the program’s launch, almost 80% of the 1,600 millionaires targeted by the IRS for failing to pay a delinquent tax debt have now made a payment, leading to over $1.1 billion recovered. And in the first six months of a new February 2024 initiative, the IRS collected $172 million from 21,000 wealthy taxpayers who have not filed tax returns since 2017.
Republicans have called for funding for the IRS to be cut.
Donald Trump’s campaign for president said he would drastically reduce spending on federal agencies — and that Democratic nominee Kamala Harris “cast the tiebreaking vote to hire 87,000 new IRS agents to go after your tip income.”
That debunked claim comes from a plan the Treasury Department proposed in 2021 to bring on that many IRS employees over the next decade if it got the money. At least 50,000 IRS employees are expected to retire over the next five years.
The National Taxpayer Advocate, the independent IRS watchdog, issued a 2023 annual report stating that the IRS employs roughly 681 armed agents.
In its efforts to modernize, the agency this year also launched a program called Direct File, which allows people with very simple W-2s to calculate and submit their returns directly to the IRS. The IRS said in April that those using the program claimed more than $90 million in refunds.
While the program included 12 participating states in the 2024 tax filing season, more states have joined in for the 2025 tax season, including Maryland, Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina, Wisconsin, and Maine.
34% of Warren Buffett's $318 Billion Portfolio Is Invested in These 8 "Forever" Stocks
In 1965, Warren Buffett became CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and began a stretch of notable outperformance, compared to Wall Street’s benchmark stock indexes. Over nearly six decades, he’s overseen a cumulative return in his company’s Class A shares (BRK.A) that tops 5,700,000%!
Money managers who run circles around Wall Street tend to garner a lot of attention. But when you deliver a gain of more than 5,700,000%, investors will pay attention to your every word and potentially mirror your buying and selling activity.
What’s interesting about the Oracle of Omaha’s success is that he’s predominantly been an open book regarding what traits he looks for in investments. For instance, Buffett regularly seeks out time-tested businesses with identifiable competitive advantages and strong management teams that can be held for years, if not decades. He’s also a big fan of concentrating his company’s invested assets in his best ideas.
However, not all 45 stocks held in Berkshire Hathaway’s roughly $318 billion investment portfolio share the same outlook. While “years” tends to be the typical holding period for a stock in Berkshire’s portfolio, Warren Buffett’s latest annual letter to shareholders outlined eight stocks that were dubbed “indefinite” holdings.
As you might imagine, top investment ideas would be expected to stick around for a long time. These eight forever holdings currently account for a whopping 34% ($106.5 billion) of Berkshire Hathaway’s invested assets.
No. 1: American Express, $39.2 billion (12.3% of invested assets)
Following the sale of around 150 million shares of Bank of America since the midpoint of July by Buffett and his team, credit services goliath American Express (NYSE: AXP) has vaulted to the No. 2 spot by market value in Berkshire’s portfolio. “AmEx,” as the company is more commonly known, has been a continuous holding by Buffett’s company since 1991.
Financials are the Oracle of Omaha’s favorite sector, largely because they’re cyclical. Buffett and his top investment aides, Todd Combs and Ted Weschler, are fully aware that recessions are a normal and inevitable part of the economic cycle. Rather than throwing darts and trying to guess when these downturns will occur, they lean on a numbers game that undeniably works in their favor.
In the 79 years since World War II ended, there have been a dozen recessions in the U.S., and all but three resolved in less than 12 months. By comparison, almost every period of growth has endured multiple years, with two expansions hitting the 10-year mark. Wagering that the U.S. economy and consumer/enterprise spending will grow over long periods has been a genius move.
American Express also benefits from both sides of the transaction counter. In the U.S., it’s the third-largest payment processor by credit card network purchase volume, which allows it to collect fees from merchants. However, it also generates fees and interest income from its line of credit cards.
Don’t overlook AmEx’s ability to attract high earners, either. High-income cardholders are less likely to adjust their spending habits or fail to pay their bill during minor economic disruptions.
No. 2: Coca-Cola, $29 billion (9.1% of invested assets)
The only forever holding that’s been in Berkshire Hathaway’s portfolio even longer than AmEx is beverage giant Coca-Cola (NYSE: KO), which has been continuously held since 1988.
Berkshire’s cost basis in Coca-Cola is only $3.2475 per share, which equates to a nearly 60% yield on cost, based on Coke’s annual payout of $1.94 per share. In other words, Buffett is seeing his initial investment in Coca-Cola more than double from the dividend income alone every two years.
One reason Coca-Cola is such a wonderful company is because it’s a consumer staples stock. It’s providing a good (beverages) that consumers need, regardless of how well or poorly their country’s economy is performing. This leads to highly predictable operating cash flow year after year.
In terms of consumer goods companies, you’d probably struggle to find a business with better branding than Coca-Cola. Kantar’s annual “Brand Footprint” report labeled Coca-Cola as the most-chosen brand by consumers off retail shelves for a 12th consecutive year. This is a testament to its lengthy history as a public company, as well as its ability to connect with mature and young audiences through a combination of brand ambassadors and digital media.
Furthermore, Coca-Cola’s geographic diversity is virtually unmatched. On top of having more than two dozen brands that generate at least $1 billion in annual sales, the company has operations in every country except Cuba, North Korea, and Russia. Coca-Cola is able to generate meaningful cash flow in developed countries, all while moving the organic growth needle in emerging markets.
No. 3: Occidental Petroleum, $14.5 billion (4.6% of invested assets)
While it’s been known for some time that AmEx and Coca-Cola are indefinite holdings for Warren Buffett, the addition of integrated oil and gas stock Occidental Petroleum (NYSE: OXY) in his February-released annual letter to shareholders was an eyebrow-raiser.
The Oracle of Omaha and his team began purchasing shares of Occidental in the first quarter of 2022. Since then, Berkshire’s stake in the company has grown to almost 255.3 million shares, or about 27.3% of Occidental’s outstanding shares. Buffett has been given permission by U.S. regulators to purchase up to a 50% stake in Occidental, but he has no interest in acquiring the company outright.
Since Warren Buffett is a big proponent of never betting against America, one of the most logical wagers he can make is on growing demand for energy commodities, such as oil.
One of the more interesting catalysts for Occidental is global crude oil supply constraints. Approximately three years of significant capital spending reductions by global energy majors during the COVID-19 pandemic has the industry playing catchup. When the supply of an in-demand good is tight, it tends to buoy its price.
Few integrated oil and gas operators generate a higher percentage of their revenue from drilling than Occidental. If the spot price of crude oil remains elevated or increases further, Occidental should enjoy an outsized benefit to its operating cash flow. Just be warned that a reciprocal event (i.e., a decline in the spot price of crude oil) would adversely impact its cash flow more than other integrated energy companies.
No. 4 through No. 8: The five Japanese trading houses, $23.7 billion (combined) from Mitsubishi (2.3% of invested assets), Itochu (2%), Mitsui (1.7%), Marubeni (0.8%), and Sumitomo (0.7%)
The other group of stocks Buffett talked up as forever holdings in his newest annual letter to shareholders is Japan’s five major trading houses: Mitsubishi (OTC: MTSU.Y)(OTC: MSBHF), Itochu (OTC: ITOCY)(OTC: ITOCF), Mitsui (OTC: MITSY)(OTC: MITSF), Marubeni (OTC: MARUY)(OTC: MARUF), and Sumitomo (OTC: SSUM.Y)(OTC: SSUM.F).
You might be wondering why some of the companies Buffett is so high on account for less than 1% of Berkshire’s invested assets. The simple reason is that Buffett and his team agreed to not purchase a greater than 9.9% stake in these five Japanese trading houses. These five stakes currently range from 7.5% (for Itochu) to 8.6% (for Mitsubishi) of outstanding shares.
One of the likely reasons the Oracle of Omaha favors these five businesses as indefinite holdings is because they’re heavily ingrained in Japan’s economy. Mitsubishi, Itochu, Mitsui, Marubeni, and Sumitomo are involved in oil and gas operations, food production, mining, renewable energy, chemicals, and so on. The list of what these companies have their fingers in would be a book in itself. If an investor believes the Japanese economy will grow over the long run, these trading houses make for no-brainer buys.
Valuation is another key lure for Japan’s five trading houses. The stock market is historically pricey at the moment, and it’s been this way for much of the last decade. Japan’s trading houses have low price-to-earnings ratios and generally robust capital-return programs.
What’s more, the management teams of these five businesses receive reasonably low compensation packages. This means the focus is on shareholder returns, which is something Warren Buffett appreciates immensely.
Should you invest $1,000 in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $650,810!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 3, 2024
Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
34% of Warren Buffett’s $318 Billion Portfolio Is Invested in These 8 “Forever” Stocks was originally published by The Motley Fool
Got $5,000? These 3 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows
If you’ve got $5,000 you can afford to invest in the stock market today, there are some good opportunities that can make the most of that money. Not only can you find some good long-term buys trading at cheap valuations, but there are also some safe dividend stocks that are trading near their 52-week lows.
Buying dividend stocks at modest valuations can give you the opportunity to lock in higher-than-normal yields while also potentially setting yourself up for the possibility to earn great returns if the stocks end up rallying. Three stocks that could be great options to invest $5,000 in right now are CVS Health (NYSE: CVS), United Parcel Service (NYSE: UPS), and Hershey (NYSE: HSY).
CVS Health
Healthcare company CVS Health is having a tough year. Its shares are down 28% and it’s trading near its 52-week low of $52.77. A lot of the damage is self-inflicted, unfortunately, as the company has reduced its guidance for the year three times — and there are still two quarters left!
The company has been experiencing an uptick in medical expenses that has adversely impacted its health insurance business. That’s the bad news. The good news is that this trend isn’t likely to persist over the long haul. Surgeries were put off and delayed during the height of the pandemic and amid a return to normal, there’s been an increase. But that should normalize in the years ahead. And other areas of CVS (health services, pharmacy) aren’t doing nearly as bad. Adjusted operating profit declined by more than $700 million this past quarter, but the health benefits segment accounted for the bulk of that drop — $600 million.
And even with the decline, the stock’s payout ratio remains sustainable at 45% of earnings, suggesting that CVS’ dividend is safe. At 4.7%, you could secure a dividend that pays more than 3 times the S&P 500 average of 1.3%. There could still be more of a decline in CVS’ share price in the near term — but if you’re willing to be patient with the stock, it may prove to be a great buy.
United Parcel Service
Logistics giant United Parcel Service, better known as just UPS, is trading within a few dollars of its 52-week low of $123.12. The company has been feeling the effects of some challenging economic conditions with its consolidated revenue declining by 1% in the most recent quarter (which ended in June) to $21.8 billion. Profits were down by almost 30% with UPS reporting adjusted diluted earnings per share of $1.79 for the period.
Management is confident it can get back to growing its earnings, but potentially worsening economic conditions may not help with that goal. The near future could present UPS with further challenges. Still, in the long run it’s not a bad move to invest in one of the top logistics companies in the world. Analysts from Mordor Intelligence project that the freight and logistics market could be worth a massive $8 trillion by 2030 as it grows at a compound annual rate of more than 5%.
UPS may be struggling now and its payout ratio may be a bit concerning at a little over 100%, but as it trims costs and works on growing its bottom line, that percentage should come down. With a dividend yield of 5.1%, UPS can provide investors with a great incentive to be patient with the stock.
Hershey
Another underrated dividend stock to own is that of candy company Hershey. It’s up a modest 4% this year but it still remains within 10% of its 52-week low of $178.82. It also pays an above-average dividend that yields 2.8%. It’s not as high as the other stocks on this list, but it too can be a good option for income investors to consider.
The company is seeing demand come in a bit lighter due to a slowdown in discretionary spending. Sales in the most recent quarter, which ended in June, were off by nearly 17% with revenue coming in a little less than $2.1 billion. Hershey experienced a 21% decline in its North American confectionary segment but it did see an encouraging 6% sales growth its salty snacks division. Despite the tough quarter, the company is still expecting 2% growth in its net sales for the current year, and no more than a 3% decline in reported earnings per share.
Hershey’s payout ratio remains manageable at 57%, which is a good sign to investors that there’s ample buffer there to support the current dividend. With some strong brands in its portfolio, including Reese’s, Rolo, and dozens of others, this can be an excellent food stock to invest in for the long haul.
Should you invest $1,000 in CVS Health right now?
Before you buy stock in CVS Health, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CVS Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $650,810!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 3, 2024
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool recommends CVS Health and United Parcel Service. The Motley Fool has a disclosure policy.
Got $5,000? These 3 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows was originally published by The Motley Fool
Summit Ridge Energy Strengthens Leadership Team with Strategic Appointments
Arlington, VA, Sept. 06, 2024 (GLOBE NEWSWIRE) — Summit Ridge Energy, the nation’s leading commercial solar company, is pleased to announce the strategic appointments of Marc Fioravanti as Senior Vice President of Business Development and Scott Fleckner as Senior Vice President of Capital Markets. These newly created roles and additions to the Summit Ridge senior leadership team further strengthen the company’s business expertise and position in the renewable energy industry.
“We welcome Marc to Summit Ridge’s executive leadership team during an important time of momentum for the company. With decades of experience within renewable energy and clean technology businesses of all sizes, Marc will play a pivotal role in enhancing our operational and business development processes while ensuring our commitment to excellence remains unwavering as we continue to expand into new markets,” said Steve Raeder, Chief Executive Officer at Summit Ridge.
Raeder continued, “We are equally excited to welcome Scott to our leadership team. His expansive background in capital markets, specifically his focus on energy transition and renewables, will be invaluable as we continue to finance our expanding development pipeline. With the expertise and knowledge that Marc and Scott bring to Summit Ridge, we are even more confident in our ability to drive innovation, deliver exceptional results and continue our unmatched growth within the solar industry.”
Marc Fioravanti, Senior Vice President of Business Development
As the newly appointed Senior Vice President of Business Development, Marc Fioravanti brings 28 years of professional experience in developing renewable energy and clean technology businesses. With a strong history of cultivating and expanding partnerships across customers, financial stakeholders, suppliers, and community organizations, Fioravanti has consistently driven business improvement. His proven ability to build and lead high-performing development and operational teams will be indispensable in his new role. Fioravanti holds a Bachelor of Science in Civil Engineering, a Master of Science in Environmental Fluid Mechanics and Hydrology, and an Engineer Degree in Environmental Engineering, all from Stanford University
“Summit Ridge is in an exciting phase of advancement, and I am thrilled to be joining such a talented team. As I step into leading our business development efforts, I am eager to implement new ways to approach our markets and expand our strategies,” said Fioravanti. “This team’s dedication to being a creative and reliable partner has been key to our success, and I am excited to build on that strong foundation to drive our next phase of growth.”
Scott Fleckner, Senior Vice President of Capital Markets
In his role as Senior Vice President of Capital Markets, Scott Fleckner is responsible for leading the origination, negotiation, and execution of Summit Ridge’s capital formation efforts. With nearly two decades of experience in capital and finance, Fleckner joins Summit Ridge from Red Eagle LP, where he served as Senior Managing Director, Energy Transition. During his tenure, he originated and structured over $3 billion in debt and equity financing for conventional and renewable energy assets. Fleckner holds a bachelor’s degree in finance from Lehigh University and an MBA in Finance from The Wharton School of The University of Pennsylvania.
“Summit Ridge’s expansion into new markets will be bolstered by our ability to connect with financial partners eager to explore the untapped potential of renewable energy investments,” said Fleckner. “As we grow, my focus will continue to be on helping financial institutions understand the value of community solar investments while building new relationships that will strengthen our development pipeline and future as a company.”
About Summit Ridge Energy
As the nation’s leading commercial solar company, Summit Ridge Energy merges financial innovation and industry-leading execution to deliver clean, locally generated energy. This has made Summit Ridge one of the fastest-growing energy companies in America.
Since launching in 2017, the company has raised more than $5B in project capital to finance 200+ solar farms servicing 50,000 homes and businesses nationwide. Learn more at srenergy.com and connect with us on LinkedIn.
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- Scott Fleckner, Senior Vice President of Capital Markets
- Marc Floravanti, Senior Vice President of Business Development
Antonya Asante Summit Ridge Energy 8326380439 press@srenergy.com Business Development business@srenergy.com
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Agora Launches New Report Builder and Waterfall Automation Tool
New tools empower real estate investors to free up resources and streamline efficiency.
NEW YORK, Sept. 5, 2024 /PRNewswire/ — Agora, a leading real estate investment management platform with offices in New York City and Tel Aviv, has launched two powerful new tools: Report Builder and Waterfall Automation Tool, designed to enhance efficiency for real estate professionals.
“Our Report Builder and new Waterfall Automation Tool simplify complex tasks, boosting performance and growth.”
“At Agora, we’re dedicated to creating tools that truly impact our clients’ operations,” stated Lior Dolinski, Co-Founder and Chief Product Officer of Agora. “Our Report Builder and the new Waterfall Automation Tool are prime examples of how we simplify complex tasks, helping real estate professionals save time, boost performance, and focus on growing their business. These tools are both the first of their kind, and they have an extensive number of unique use cases, far more than any other tool out there so far.”
Agora’s Report Builder is a groundbreaking, first-of-its-kind tool that allows users to create customized and professional reports with ease. From distribution notices to quarterly reports, the Report Builder simplifies complex tasks with drag-and-drop functionality and dynamic fields, similar to popular website-building platforms like Wix and Squarespace. This innovation reinforces Agora’s position as a key player in the real estate investment sector, serving clients across multifamily, residential, industrial, retail, office, agriculture, and debt and equity funds. By leveraging the Report Builder, real estate professionals can save time, streamline processes, and gain a competitive edge.
“Agora really listened when we expressed our challenges with reporting by creating the latest feature, Report Builder. It takes a complicated, error-prone process and makes it smooth and efficient,” said John Domasiewicz, Investment Operations Manager at PPR Capital Management. “This tool is a true game changer for our operations.”
Additionally, Agora has unveiled its Waterfall Automation Tool, designed to automate and simplify the management of waterfall distributions — a critical component of capital allocation among investors. Unlike other tools on the market, Agora’s Waterfall Automation Tool stands out for its ability to handle individual-based waterfalls, which include side letters for open-end funds and debt vehicles, and class-based waterfalls, treat LPs as combined groups with identical terms, and cover a wide range of LPAs. The Waterfall Automation Tool supports over 200 different use cases — far more than any other tool available. This capability eliminates the need for error-prone spreadsheets and delivers a smoother, more transparent process that meets the complex demands of modern real estate investment management.
Book a demo to learn more about Agora here: https://agorareal.com/.
About Agora:
Agora is a comprehensive software solution that utilizes technology, automation, and real estate expertise to streamline investment management. Based in NYC and Tel Aviv, Agora is a fintech/SaaS company dedicated to helping real estate firms raise and preserve capital. By automating back-office processes, enhancing investor satisfaction, and offering advanced operational tools, Agora empowers clients to optimize efficiency. Trusted by top real estate firms like Decron Properties, Beachwold, and Electra America, Agora is revolutionizing the industry. Learn more at agorareal.com.
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SOURCE Agora Real Estate
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Trump Media erases all 2024 stock gains days before Donald Trump can cash out his $1.95 billion stake
Donald Trump is nearing the day he can cash out of Truth Social’s parent company, raising concerns of a potential sell-off that could hit the meme stock hard.
On paper, Trump’s stake in Trump Media and Technology Group (TMTG) is valued at $1.95 billion, which could help cover his mounting legal fines.
However, when he agreed to a reverse merger with Digital World Acquisition Company (DWAC) on March 25, he accepted a six-month lockup period, preventing him from selling his 115 million shares.
Trump owns 59% of TMTG, and any sale could tank the stock unless done in small batches.
With the lockup expiring in three weeks, investors are growing anxious.
Trump’s financial situation appears strained—he’s been selling Trump-themed sneakers, “God Bless the USA” Bibles, and now offering a piece of the suit he wore during his first debate with Joe Biden to collectors who purchase $1,500 worth of digital Trump trading cards.
On Wednesday, TMTG shares fell 6%, closing just below $17. This wipes out all gains for the year, while the S&P 500 has risen 16% over the same period.
TMTG officials did not respond when approached for a statement, while Trump left a Fortune request for comment both on Truth Social and X unanswered.
Loss-making TMTG still valued at 1,000 times its revenue
TMTG has now lost 80% of its value since hitting its all-time high of $79.38 on March 26, the stock’s first day of trading under the DJT ticker. That valued Trump’s personal stake at nearly $9.11 billion at the time.
The stock may continue to decline. Last week, CEO Devin Nunes and CFO Philip Juhan sold $2.5 million worth of shares, further dampening investor sentiment.
Despite its $3.4 billion market cap, the loss-making social media company is trading at over 1,000 times its annual revenue. Sales for the first half of the year were just $1.6 million, with deeply negative cash flow.
Wall Street analysts avoid TMTG due to its “meme stock” status, attracting little interest from professional investors. Even if analysts wanted to cover it, TMTG doesn’t publish key metrics, including its number of active, monetizable users.
The stock has mostly been viewed as a bet on Trump’s reelection. However, with polls tightening in key battleground states and Kamala Harris gaining momentum, that bet is now less certain.
November election outcome key to TMTG’s stock price
Trump has now been forced to return to Twitter (now X), where he has 10 times as many followers and a far larger audience, in order to reach potential voters.
This further dilutes the value Truth Social has for users if they can access his content on other competitors’ platforms.
Should he lose in November, however, Truth Social’s importance going forward would be greatly diminished since Trump’s political career would likely be over.
John Rekenthaler, vice president of research at financial services firm Morningstar, told Quartz that buying shares in TMTG is synonymous with purchasing Trump’s personal brand.
“But he’s not going to have a brand,” he said last week, “if he loses a second straight presidential election.”
There is even a scenario by which Trump could sell his TMTG shares around September 20, some five days earlier, as long as they do not dip below $12.
Either way, there are bound to be legal complications involved in a sale since his son, Don Jr., is privy to material non-public information as a director, including its third-quarter performance.
The only way this stock overhang issue ends well for TMTG investors is if Trump manages to find a strategic investor in the company willing to acquire his stake in full.
This story was originally featured on Fortune.com