console-api |
error |
URL: https://asset.barrons.com/bar/assets/webpack4/main.5880790b979c79d5fa7c.js(Line 6)
Message:
Error:
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Round","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Financials","vrtysux":"SUBJECT|BARFINANCIALS","symbol":"BARFINANCIALS","value":"Financials","type":"SUBJECT"},{"seoname":"FinTech","vrtysux":"SUBJECT|BARFINTECH","symbol":"BARFINTECH","value":"FinTech","type":"SUBJECT"},{"seoname":"Hedge Funds","vrtysux":"SUBJECT|BARHEDGE","symbol":"BARHEDGE","value":"Hedge Funds","type":"SUBJECT"},{"seoname":"Venture Capital","vrtysux":"SUBJECT|BARVENTURECAPITAL","symbol":"BARVENTURECAPITAL","value":"Venture Capital","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARFINTECH","displayName":"FinTech","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARFINTECH","displayName":"FinTech","type":"externalsymbol"},{"name":"BARFINANCIALS","displayName":"Financials","type":"externalsymbol"},{"name":"BARHEDGE","displayName":"Hedge Funds","type":"externalsymbol"},{"name":"BARVENTURECAPITAL","displayName":"Venture Capital","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p>Robinhood Markets announced on Monday that it had raised $200 million from D1 Capital Partners, lifting the company’s valuation to $11.2 billion from $8.6 billion just last month. </p> <p>It is Robinhood’s third funding round of 2020, and comes after the online broker has been <a href=\"https://www.barrons.com/articles/what-is-robinhood-apps-next-act-its-already-mastered-the-stock-market-game-51597451777?mod=past_editions\" target=\"_blank\" class=\"icon none\" >leapfrogging competitors in terms of customer growth and daily trades during the pandemic</a>. Robinhood pioneered zero-commission investing, a business model that its competitors have now adopted, too.</p> <p>D1 Capital Partners, run by longtime hedge-fund manager Dan Sundheim, is a new investor in Robinhood. It joins major venture-capital firms and celebrities like Ashton Kutcher in putting money into Robinhood.</p><!-- T1:_PW --> <p>The company says it will put the money into improving the customer experience and building out its core product. The number of daily trades on the platform more than doubled between the first and second quarters, outpacing firms like <phrase background-info=\"BRIEFING-BOOK\" name=\"AMTD\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|AMTD\">TD Ameritrade</phrase> (ticker: AMTD) and <phrase background-info=\"BRIEFING-BOOK\" name=\"SCHW\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|SCHW\">Charles Schwab</phrase> (SCHW) with much longer histories. The $11.2 billion valuation vaults Robinhood closer to its rivals. </p> <p>Morgan Stanley (MS) agreed to buy <phrase background-info=\"BRIEFING-BOOK\" name=\"ETFC\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|ETFC\">E*Trade Financial</phrase> (EFTC) this year for $13 billion, Schwab is buying Ameritrade in a deal worth $26 billion, while <phrase background-info=\"BRIEFING-BOOK\" name=\"IBKR\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|IBKR\">Interactive Brokers Group</phrase> (IBKR) has a market cap of $22 billion.</p> <p>Robinhood’s users tend to be younger than those at other firms, and analysts say they invest less money on the platform.</p> <p>“We’re proud that more people than ever are using Robinhood to learn how to invest and manage their finances,” co-founder and co-CEO Vlad Tenev said in a statement. “We continue to be laser-focused on providing the best product and customer experience and democratizing finance for all.”</p> <p> <strong>Read More: </strong> <strong></strong> <a href=\"https://www.barrons.com/articles/what-is-robinhood-apps-next-act-its-already-mastered-the-stock-market-game-51597451777\" target=\"_blank\" class=\"icon none\" >How Robinhood Seized the Moment in Stock Trading</a> </p> <p>Robinhood executives say they are spending money to avoid some of the problems that have affected users this year -- most notably, Robinhood was down for more than a day in March as the market gyrated. Some users have told <em>Barron’s</em> that the app’s unpredictability made them question whether to continue using it. </p> <p>Robinhood has also been hiring more customer service representatives to interact with customers over email following the suicide in June of a 20-year-old who said in his suicide note that he was distressed by a trade on the app. And Robinhood has lately been increasing <a href=\"https://www.politico.com/newsletters/politico-influence/2020/08/14/robinhood-builds-a-presence-on-k-street-789942\" target=\"_blank\" class=\"icon none\" >its lobbying presence </a>in Washington, D.C., as members of Congress have been <a href=\"https://www.barrons.com/articles/robinhood-unethical-options-business-model-market-makers-suicide-51597439667\" target=\"_blank\" class=\"icon none\" >asking questions about whether the company is encouraging risky trading among young people</a>.</p> <p></p> <p> <strong>Write to </strong>Avi Salzman at <a href=\"mailto:avi.salzman@barrons.com\" target=\"_blank\" class=\"icon \" >avi.salzman@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"robinhood-now-valued-at-11-2-billion-after-latest-funding-round-51597680183","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX134_ROBINH_OR_20200817114241.jpg","credit":"Andrew Harrer/Bloomberg"},"displayName":"Sectorfocus Blog","date":1597680180000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB51053606091319544133904586575030118783312","type":"article_extended","articleId":"SB51053606091319544133904586575030118783312","articleSection":"Daily","articleType":"Sectorfocus Blog","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"subject":"FinTech"}},"image":{"A":{"width":"76","height":"76","url":"https://images.barrons.com/im-221677?width=76&height=76"},"AM":{"width":"220","height":"220","url":"https://images.barrons.com/im-221677?width=220&height=220"},"B220":{"width":"220","height":"146","url":"https://images.barrons.com/im-221677?width=220&height=146"},"C":{"width":"167","height":"94","url":"https://images.barrons.com/im-221677?width=167&height=94"},"CA":{"width":"300","height":"200","url":"https://images.barrons.com/im-221677?width=300&height=200"},"D":{"width":"262","height":"174","url":"https://images.barrons.com/im-221677?width=262&height=174"},"DR":{"width":"540","height":"360","url":"https://images.barrons.com/im-221677?width=540&height=360"},"E":{"width":"359","height":"239","url":"https://images.barrons.com/im-221677?width=359&height=239"},"ER":{"width":"602","height":"402","url":"https://images.barrons.com/im-221677?width=602&height=402"},"F":{"width":"571","height":"226","url":"https://images.barrons.com/im-221677?width=571&height=226"},"FR":{"width":"632","height":"810","url":"https://images.barrons.com/im-221677?width=632&height=810"},"G":{"width":"553","height":"369","url":"https://images.barrons.com/im-221677?width=553&height=369"},"GR":{"width":"1242","height":"810","url":"https://images.barrons.com/im-221677?width=1242&height=810"},"H":{"width":"659","height":"439","url":"https://images.barrons.com/im-221677?width=659&height=439"},"J":{"width":"959","height":"639","url":"https://images.barrons.com/im-221677?width=959&height=639"},"K":{"width":"800","height":"600","url":"https://images.barrons.com/im-221677?width=800&height=600"},"M":{"width":"1280","height":"853","url":"https://images.barrons.com/im-221677?width=1280&height=853"},"MEDIUMSQ":{"width":"400","height":"400","url":"https://images.barrons.com/im-221677?width=400&height=400"},"4H":{"width":"300","height":"200","url":"https://images.barrons.com/im-221677?width=300&height=200"},"z110":{"width":"110","height":"73","url":"https://images.barrons.com/im-221677?width=110&height=73"},"z120":{"width":"120","height":"80","url":"https://images.barrons.com/im-221677?width=120&height=80"},"z380":{"width":"380","height":"253","url":"https://images.barrons.com/im-221677?width=380&height=253"},"TOP":{"width":"700","height":"350","url":"https://images.barrons.com/im-221677?width=700&height=350"},"TOPSM":{"width":"620","height":"310","url":"https://images.barrons.com/im-221677?width=620&height=310"},"B620":{"width":"620","height":"412","url":"https://images.barrons.com/im-221677?width=620&height=412"},"B620P":{"width":"620","height":"349","url":"https://images.barrons.com/im-221677?width=620&height=349"}},"isFree":true,"isFreeForever":true,"wordCount":406,"slides":null,"summary":"The $200 million infusion comes at a time of explosive growth for the trading app.","tags":[],"timestamp":1597680180000,"timestampCreatedAt":1597680180000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597696680000,"updatedAt":1597696680000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Nikola Stock Was a Win for Analyst. GM Could Be Another.","originalReference":"42d41fa8-e0b8-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575281121197992?$HeadlineQueryString$\" > Nikola Stock Was a Win for Analyst. GM Could Be Another. </a></h2> <p>Deutsche Bank analyst Emmanuel Rosner says to buy the shares of the big car maker. Now. </p>\n","snippetBody":"\n\n <p>Deutsche Bank analyst Emmanuel Rosner says to buy General Motors stock. Now. </p> <p>He put the stock on the firm’s “catalyst call buy list,” recommending it as a short-term trading opportunity. That’s the same list Rosner put Nikola (ticker: NKLA) stock on in early August. The Nikola call has worked out pretty well for the analyst. </p> <p>Now, bullish...","isSlideshow":false,"webTemplate":"","bitlyurl":"","showDefaultChart":true,"beta":false,"seoCounts":{"embedCount":1,"videoCount":0,"imageCount":1,"wordCount":590,"externalLinkCount":1,"internalLinkCount":13},"authors":[{"authorName":"Al Root","authorTopicId":"8578","authorBiography":"https://www.wsj.com/news/author/8578"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"slug":"GM0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX119_GM0817_OR_20200817095510.jpg","credit":"Bill Pugliano/Getty Images","height":"957","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Bill Pugliano/Getty Images"},"video":[],"propertyKeywords":["General Motors","GM","Republic Services","RSG","Nikola","NKLA","Republic Services","RSG","Tesla","TSLA","Emmanuel Rosner"],"mediaProperties":{},"eTag":"1597696745985","insets":[{"insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","layout":"wrap","imageInfo":{"slug":"GM0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX119_GM0817_OR_20200817095510.jpg","height":"957","width":"1280","size":"OR"},"altImageInfo":[{"slug":"GM0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX119_GM0817_OR_20200817095510.jpg","height":"957","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","arthurV2Image":{"imphotoid":"im-221613","softcrop":"Horizontal","location":"https://images.barrons.com/im-221613","size":"1.5"},"credit":"Bill Pugliano/Getty Images","caption":"","index":"0","type":"InsetMediaIllustration"},{"insetProperties":{"layout":"inline"},"id":"inset-1","layout":"inline","url":"https://asset.barrons.com/dynamic-insets/charts/cdc_07fba55def0e0ab72780ffc0.json","index":"1","type":"InsetDynamic"}],"arthurV2Image":{"imphotoid":"im-221613","softcrop":"Horizontal","location":"https://images.barrons.com/im-221613","size":"1.5"},"byline":"Al Root","url":"https://www.barrons.com/articles/nikola-stock-was-a-win-for-analyst-gm-could-be-another-51597696716","summaries":null,"selfCodes":[{"seoname":"Manufacturing","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARMANUF","symbol":"BARMANUF","value":"Manufacturing","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Motor Vehicles","vrtysux":"DJII-INDUSTRY|i351","symbol":"i351","value":"Motor Vehicles","type":"DJII-INDUSTRY"},{"seoname":"Passenger Cars","vrtysux":"DJII-INDUSTRY|i35101","symbol":"i35101","value":"Passenger Cars","type":"DJII-INDUSTRY"},{"seoname":"Automotive","vrtysux":"DJII-INDUSTRY|iaut","symbol":"iaut","value":"Automotive","type":"DJII-INDUSTRY"},{"seoname":"Financial Performance","vrtysux":"DJII-SUBJECT|c15","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"seoname":"Analysts' Comments/Recommendations","vrtysux":"DJII-SUBJECT|c1521","symbol":"c1521","value":"Analysts' Comments/Recommendations","type":"DJII-SUBJECT"},{"seoname":"Share Price Movement/Disruptions","vrtysux":"DJII-SUBJECT|c1522","symbol":"c1522","value":"Share Price Movement/Disruptions","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|Nikola Stock Was a Win for Analyst. GM Could Be Another. ","symbol":"Nikola Stock Was a Win for Analyst. GM Could Be Another. ","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|Nikola Stock Was a Win for Analyst. GM Could Be Another. ","symbol":"Nikola Stock Was a Win for Analyst. GM Could Be Another. ","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Manufacturing","vrtysux":"SUBJECT|BARMANUF","symbol":"BARMANUF","value":"Manufacturing","type":"SUBJECT"},{"seoname":"","vrtysux":"SUBJECT|ONLY","symbol":"ONLY","value":"","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARMANUF","displayName":"Manufacturing","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"ONLY","type":"externalsymbol"},{"name":"BARMANUF","displayName":"Manufacturing","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p>Deutsche Bank analyst <a href=\"https://www.barrons.com/articles/tesla-stock-is-highly-valued-and-faces-execution-risk-deutsche-bank-51576261620\" target=\"_blank\" class=\"icon none\" >Emmanuel Rosner</a> says to buy <phrase background-info=\"BRIEFING-BOOK\" name=\"GM\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|GM\">General Motors</phrase> stock. Now. </p> <p>He put the stock on the firm’s “catalyst call buy list,” recommending it as a short-term trading opportunity. That’s the <a href=\"https://www.barrons.com/articles/nikola-reports-earnings-today-heres-what-to-expect-51596543235\" target=\"_blank\" class=\"icon none\" >same list</a> Rosner put <phrase background-info=\"BRIEFING-BOOK\" name=\"NKLA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|NKLA\">Nikola</phrase> (ticker: NKLA) stock on in early August. The Nikola call has worked out pretty well for the analyst. </p> <!-- T1:_PW --><p>Now, bullish General Motors (GM) investors hope lightening strikes twice. </p> <p>The catalyst for Rosner in the case of Nikola was earnings. He thought Nikola would announce partnerships and other milestones when the heavy-duty truck company and alternative-fuel pioneer reported its first quarter as a publicly traded entity on Aug. 4. </p> <p>The report, however, <a href=\"https://www.barrons.com/articles/nikola-sinks-because-of-what-wasnt-said-on-its-first-earnings-call-51596578139\" target=\"_blank\" class=\"icon none\" >proved disappointing </a>because Nikola didn’t say much that was new. Shares dropped 8.3% on Aug. 5. </p> <p>But this past week, the company announced <a href=\"https://www.barrons.com/articles/nikola-battery-trucks-republic-services-binding-order-51597158795\" target=\"_blank\" class=\"icon none\" >an order</a> for shorter-range battery-powered trucks from the <a href=\"https://www.barrons.com/articles/garbage-stocks-get-no-love-from-analysts-heres-why-they-might-be-wrong-51555068600\" target=\"_blank\" class=\"icon none\" >waste hauler</a><phrase background-info=\"BRIEFING-BOOK\" name=\"RSG\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|RSG\">Republic Services</phrase> (RSG). Nikola shares are up by roughly one-third from the level preceding Rosner’s bullish call. </p> <p>That’s pretty good, although the stock was down 5.4% at $43.49 on Monday afternoon. Perhaps investors see that trade as played out. Rosner isn’t a full Nikola bull. He rates the stock the equivalent of Hold and has a $50 price target. </p> <p>The catalyst Rosner sees for GM stock is more significant than a quarterly earnings report. The analyst believes GM might start talking about spinning out its EV business. That would be a huge transaction. </p> <p>“When you look at the high market valuations and cheap access to capital of some of these electric-vehicle companies we spoke about earlier…can that make you consider spinning off GM’s electric-vehicle operations,” Rosner asked GM CEO Mary Barra on July 29.</p> <p>“We are evaluating and always evaluate many different scenarios, so I don’t have anything further to say other than we are open to looking at and evaluate anything that we think is going to drive long-term shareholder value,” Barra responded. “So I would say nothing is off the table.”</p> <p>Rosner has <a href=\"https://www.barrons.com/articles/a-gm-ev-spinoff-unlock-value-heres-what-it-could-be-worth-51597424085\" target=\"_blank\" class=\"icon none\" >written about</a> the value of the EV franchise inside of GM recently and thinks investors aren’t giving the century-old auto maker credit for its <a href=\"https://www.barrons.com/articles/gms-cadillac-is-coming-for-tesla-the-lyriq-is-on-the-way-51596802875\" target=\"_blank\" class=\"icon none\" >internally</a> developed <a href=\"https://www.barrons.com/articles/gm-tesla-electric-vehicles-battery-packs-musk-barra-51583417519\" target=\"_blank\" class=\"icon none\" >EV-technology</a>.</p> <p>There is little downside if talk of a spinoff doesn’t pick up. Rosner thinks investors are assuming a very low probability of a deal actually happening—the price barely reflects that possibility. And Rosner likes GM shares regardless, rating them Buy. His price target is $33 a share, while the stock was trading at $30.02 late on Monday. </p> <p>EV stocks are valued far higher than traditional car stocks. <phrase background-info=\"BRIEFING-BOOK\" name=\"TSLA\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|TSLA\">Tesla</phrase> (TSLA), for instance, is valued at more than $800,000 <a href=\"https://www.barrons.com/articles/another-electric-vehicle-producer-is-coming-public-heres-what-it-could-be-worth-51595695984\" target=\"_blank\" class=\"icon none\" >per car delivered</a>. That’s more than 100 times the value GM gets in today’s stock market. </p> <p>Profit margins, sales growth, legacy liabilities for traditional auto makers—along with other issues—are all part of the reason for the valuation gap. Most EV makers have valuations legacy auto makers haven’t realized <a href=\"https://www.barrons.com/articles/tesla-stock-gm-1950s-was-richer-51578510312\" target=\"_blank\" class=\"icon none\" >in generations</a>. </p> <!-- T1:M --> <p>GM stock closed up 7.8% in Monday trading. Year to date, shares are still down 18%, worse than the comparable returns of the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> and <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase>. </p> <p>EV stocks, on the other hand, are <a href=\"https://www.barrons.com/articles/why-nio-tesla-and-other-ev-stocks-might-be-in-bubble-territory-51594053885\" target=\"_blank\" class=\"icon none\" >on fire</a>. The EV stocks <em>Barron’s</em> tracks are up more than 260% year to date, on average. Stock in Nikola, one of the alternative-fuel transportation stocks tracked, is up 319% year to date. That return figure includes that performance of the publicly traded <a href=\"https://www.barrons.com/articles/nikola-tesla-of-trucking-heres-what-you-need-to-know-51591366097\" target=\"_blank\" class=\"icon none\" >SPAC</a> Nikola merged with in June. </p> <p>It’s been quite a year for EV stocks. Rosner thinks GM has a way to join the party. </p> <p> <strong>Write to </strong>Al Root at <a href=\"mailto:allen.root@dowjones.com\" target=\"_blank\" class=\"icon \" >allen.root@dowjones.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"nikola-stock-was-a-win-for-analyst-gm-could-be-another-51597696716","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX119_GM0817_OR_20200817095510.jpg","credit":"Bill Pugliano/Getty Images"},"lastPubDate":1597696680000,"displayName":"Stocks to Watch","date":1597696680000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB51053606091319544133904586575281121197992","type":"article_extended","articleId":"SB51053606091319544133904586575281121197992","articleSection":"Daily","articleType":"Stocks to Watch","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"subject":"Manufacturing"}},"image":{"A":{"width":"76","height":"76","url":"https://images.barrons.com/im-221613?width=76&height=76"},"AM":{"width":"220","height":"220","url":"https://images.barrons.com/im-221613?width=220&height=220"},"B220":{"width":"220","height":"146","url":"https://images.barrons.com/im-221613?width=220&height=146"},"C":{"width":"167","height":"94","url":"https://images.barrons.com/im-221613?width=167&height=94"},"CA":{"width":"300","height":"200","url":"https://images.barrons.com/im-221613?width=300&height=200"},"D":{"width":"262","height":"174","url":"https://images.barrons.com/im-221613?width=262&height=174"},"DR":{"width":"540","height":"360","url":"https://images.barrons.com/im-221613?width=540&height=360"},"E":{"width":"359","height":"239","url":"https://images.barrons.com/im-221613?width=359&height=239"},"ER":{"width":"602","height":"402","url":"https://images.barrons.com/im-221613?width=602&height=402"},"F":{"width":"571","height":"226","url":"https://images.barrons.com/im-221613?width=571&height=226"},"FR":{"width":"632","height":"810","url":"https://images.barrons.com/im-221613?width=632&height=810"},"G":{"width":"553","height":"369","url":"https://images.barrons.com/im-221613?width=553&height=369"},"GR":{"width":"1242","height":"810","url":"https://images.barrons.com/im-221613?width=1242&height=810"},"H":{"width":"659","height":"439","url":"https://images.barrons.com/im-221613?width=659&height=439"},"J":{"width":"959","height":"639","url":"https://images.barrons.com/im-221613?width=959&height=639"},"K":{"width":"800","height":"600","url":"https://images.barrons.com/im-221613?width=800&height=600"},"M":{"width":"1280","height":"853","url":"https://images.barrons.com/im-221613?width=1280&height=853"},"MEDIUMSQ":{"width":"400","height":"400","url":"https://images.barrons.com/im-221613?width=400&height=400"},"4H":{"width":"300","height":"200","url":"https://images.barrons.com/im-221613?width=300&height=200"},"z110":{"width":"110","height":"73","url":"https://images.barrons.com/im-221613?width=110&height=73"},"z120":{"width":"120","height":"80","url":"https://images.barrons.com/im-221613?width=120&height=80"},"z380":{"width":"380","height":"253","url":"https://images.barrons.com/im-221613?width=380&height=253"},"TOP":{"width":"700","height":"350","url":"https://images.barrons.com/im-221613?width=700&height=350"},"TOPSM":{"width":"620","height":"310","url":"https://images.barrons.com/im-221613?width=620&height=310"},"B620":{"width":"620","height":"412","url":"https://images.barrons.com/im-221613?width=620&height=412"},"B620P":{"width":"620","height":"349","url":"https://images.barrons.com/im-221613?width=620&height=349"}},"isFree":true,"isFreeForever":true,"wordCount":590,"slides":null,"summary":"Deutsche Bank analyst Emmanuel Rosner says to buy the shares of the big car maker. Now.","tags":[],"timestamp":1597696680000,"timestampCreatedAt":1597696680000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597692720000,"updatedAt":1597692720000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Kohl’s Reports Earnings Tomorrow. Here’s What to Expect.","originalReference":"0135777e-e09d-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575010020281214?$HeadlineQueryString$\" > Kohl’s Reports Earnings Tomorrow. Here’s What to Expect. </a></h2> <p>Wall Street is expecting more losses when Kohl’s reports fiscal second-quarter earnings. </p>\n","snippetBody":"\n\n <p> Kohl’s and its peers were struggling even before the pandemic. So Covid-19 has only fanned the flames of department-store woes and accelerated the trends already at work in the retail industry. </p> <p>Wall Street, therefore, is expecting more losses when Kohl’s reports fiscal second-quarter earnings on Tuesday. </p> <p>Kohl’s stock (ticker: KSS) is down...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":294,"externalLinkCount":0,"internalLinkCount":6},"authors":[{"authorName":"Teresa Rivas","authorTopicId":"8553","authorBiography":"https://www.wsj.com/news/author/8553"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"responsive":false,"slug":"KSS0817","url":"https://asset.barrons.com/public/resources/images/ON-DX117_KSS081_OR_20200817095052.jpg","credit":"Bruce Bennett/Getty Images","height":"937","width":"1279","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"Kohl’s has missed bottom-line expectations two out of the past four reported quarters.","credit":"Bruce Bennett/Getty Images"},"video":[],"propertyKeywords":["Kohl's","KSS"],"mediaProperties":{},"bitlyurl":"","eTag":"1597692765922","arthurV2Image":{"imphotoid":"im-221610","softcrop":"Horizontal","location":"https://images.barrons.com/im-221610","size":"1.5"},"insets":[{"layout":"wrap","insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","imageInfo":{"responsive":false,"slug":"KSS0817","url":"https://asset.barrons.com/public/resources/images/ON-DX117_KSS081_OR_20200817095052.jpg","height":"937","width":"1279","size":"OR"},"altImageInfo":[{"responsive":false,"slug":"KSS0817","url":"https://asset.barrons.com/public/resources/images/ON-DX117_KSS081_OR_20200817095052.jpg","height":"937","width":"1279","size":"OR"}],"includeIcon":true,"subtype":"Photo","arthurV2Image":{"imphotoid":"im-221610","softcrop":"Horizontal","location":"https://images.barrons.com/im-221610","size":"1.5"},"credit":"Bruce Bennett/Getty Images","caption":"Kohl’s has missed bottom-line expectations two out of the past four reported quarters.","index":"0","type":"InsetMediaIllustration"}],"byline":"Teresa Rivas","url":"https://www.barrons.com/articles/kohls-earnings-tuesday-pandemic-covid-department-stores-retail-industry-51597692644","summaries":null,"selfCodes":[{"vrtysux":"BARRONS_DISPLAY_BRAND|BAREARNPRE","seoname":"Earnings Preview","symbol":"BAREARNPRE","value":"Earnings Preview","type":"BARRONS_DISPLAY_BRAND"},{"vrtysux":"BARRONS_DISPLAY_SUBJECT|BARRETAIL","seoname":"Retail","symbol":"BARRETAIL","value":"Retail","type":"BARRONS_DISPLAY_SUBJECT"},{"vrtysux":"DJII-INDUSTRY|i41","seoname":"Food/Beverages","symbol":"i41","value":"Food/Beverages","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|i64","seoname":"Retail/Wholesale","symbol":"i64","value":"Retail/Wholesale","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|i645","seoname":"Clothing Stores","symbol":"i645","value":"Clothing Stores","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|i654","seoname":"Specialty Retailing","symbol":"i654","value":"Specialty Retailing","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|icnp","seoname":"Consumer Goods","symbol":"icnp","value":"Consumer Goods","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|ifood","seoname":"Food Products","symbol":"ifood","value":"Food Products","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|iretail","seoname":"Retail","symbol":"iretail","value":"Retail","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-SUBJECT|c15","seoname":"Financial Performance","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|c151","seoname":"Earnings","symbol":"c151","value":"Earnings","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|ccat","seoname":"Corporate/Industrial News","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gcat","seoname":"Political/General News","symbol":"gcat","value":"Political/General News","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gcold","seoname":"Respiratory Tract Diseases","symbol":"gcold","value":"Respiratory Tract Diseases","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|ghea","seoname":"Health","symbol":"ghea","value":"Health","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gmed","seoname":"Medical Conditions","symbol":"gmed","value":"Medical Conditions","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gout","seoname":"Outbreaks/Epidemics","symbol":"gout","value":"Outbreaks/Epidemics","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gsars","seoname":"Novel Coronaviruses","symbol":"gsars","value":"Novel Coronaviruses","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|gspox","seoname":"Infectious Diseases","symbol":"gspox","value":"Infectious Diseases","type":"DJII-SUBJECT"},{"vrtysux":"FIRST_PUBLISH_HEADLINE|Kohl’s Reports Earnings Tomorrow. Here’s What to Expect.","seoname":"","symbol":"Kohl’s Reports Earnings Tomorrow. Here’s What to Expect.","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"vrtysux":"HEADLINE|Kohl’s Reports Earnings Tomorrow. Here’s What to Expect.","seoname":"","symbol":"Kohl’s Reports Earnings Tomorrow. Here’s What to Expect.","value":"","type":"HEADLINE"},{"vrtysux":"RELAY|SYND","seoname":"","symbol":"SYND","value":"","type":"RELAY"},{"vrtysux":"STATISTIC|CODES_REVIEWED","seoname":"CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"vrtysux":"SUBJECT|BARCONSUMER","seoname":"Consumer","symbol":"BARCONSUMER","value":"Consumer","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARCORONA","seoname":"Coronavirus","symbol":"BARCORONA","value":"Coronavirus","type":"SUBJECT"},{"vrtysux":"SUBJECT|BAREARNPRE","seoname":"Earnings Preview","symbol":"BAREARNPRE","value":"Earnings Preview","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARRETAIL","seoname":"Retail","symbol":"BARRETAIL","value":"Retail","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_BRAND":[{"name":"BAREARNPRE","displayName":"Earnings Preview","type":"BARRONS_DISPLAY_BRAND"}],"BARRONS_DISPLAY_SUBJECT":[{"name":"BARRETAIL","displayName":"Retail","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARRETAIL","displayName":"Retail","type":"externalsymbol"},{"name":"BARCONSUMER","displayName":"Consumer","type":"externalsymbol"},{"name":"BARCORONA","displayName":"Coronavirus","type":"externalsymbol"},{"name":"BAREARNPRE","displayName":"Earnings Preview","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"KSS\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|KSS\">Kohl’s </phrase>and its peers were struggling even before the pandemic. So Covid-19 has only fanned the flames of department-store woes and accelerated the trends already at work in the retail industry. </p> <p>Wall Street, therefore, is expecting more losses when Kohl’s reports fiscal second-quarter earnings on Tuesday. </p> <!-- T1:_PW --><p>Kohl’s stock (ticker: KSS) is down just over 55% year to date, a period in which the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> has risen nearly 5%. That means the shares are now trading roughly where they were in 1998, accounting for stock splits. </p> <p>Analysts don’t have high hopes for the quarter ended in July. They are expecting Kohl’s to have lost 88 cents a share on revenue of $3.1 billion. That compares with a $3.20 per-share loss on $2.2 billion in revenue in the previous quarter. </p> <p>The fiscal first quarter was a brutal one for Kohl’s. The company <a href=\"https://www.barrons.com/articles/kohls-earnings-covid-19-dividend-stock-buyback-sales-retailer-51589898246\" target=\"_blank\" class=\"icon none\" >reported a wider-than-expected loss</a>, while also announcing it would suspend its dividend and share-repurchase plan. That said, expectations are so low this time that less-bad results <a href=\"https://www.barrons.com/articles/a-bad-earnings-report-for-nordstrom-is-good-enough-to-lift-the-stock-51590700435\" target=\"_blank\" class=\"icon none\" >could lift the stock</a>. </p> <p>Some argue that <a href=\"https://www.barrons.com/articles/kohls-stock-upgrade-retailer-mall-online-sales-pandemic-51594222056\" target=\"_blank\" class=\"icon none\" >Kohl’s is in a better position</a> than its department-store rivals, but that isn’t necessarily saying much, given that <a href=\"https://www.barrons.com/articles/sell-macys-and-kohls-stock-analyst-says-covid-19-has-been-a-big-setback-51595440767\" target=\"_blank\" class=\"icon none\" >the pandemic has intensified</a> many of the industry’s underlying problems. Even the traditional <a href=\"https://www.barrons.com/articles/back-to-school-is-different-this-year-because-of-covid-these-stock-could-benefit-51597663800\" target=\"_blank\" class=\"icon none\" >back-to-school shopping season</a>, a key time for retailers, will be upended by the virus this year. </p> <p>Bulls account for just 22% of the 18 analysts that cover Kohl’s, according to FactSet. More than two-thirds rate Kohl’s at Hold or the equivalent, while 11% are bearish on the stock. The average price target on the Street is $22.92. </p> <p>Kohl’s has missed bottom-line expectations two out of the past four reported quarters.</p> <p>The company scheduled a conference call for 9 a.m. Eastern time Tuesday. </p> <p> <strong>Write to </strong>Teresa Rivas at <a href=\"mailto:teresa.rivas@barrons.com\" target=\"_blank\" class=\"icon \" >teresa.rivas@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"kohls-earnings-tuesday-pandemic-covid-department-stores-retail-industry-51597692644","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX117_KSS081_OR_20200817095052.jpg","credit":"Bruce Bennett/Getty Images"},"lastPubDate":1597692720000,"displayName":"Sectorfocus Blog","date":1597692720000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB51053606091319544133904586575010020281214","type":"article_extended","articleId":"SB51053606091319544133904586575010020281214","articleSection":"Daily","articleType":"Sectorfocus Blog","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"brand":"Earnings Preview","subject":"Retail"}},"image":{"A":{"width":"76","height":"76","url":"https://images.barrons.com/im-221610?width=76&height=76"},"AM":{"width":"220","height":"220","url":"https://images.barrons.com/im-221610?width=220&height=220"},"B220":{"width":"220","height":"146","url":"https://images.barrons.com/im-221610?width=220&height=146"},"C":{"width":"167","height":"94","url":"https://images.barrons.com/im-221610?width=167&height=94"},"CA":{"width":"300","height":"200","url":"https://images.barrons.com/im-221610?width=300&height=200"},"D":{"width":"262","height":"174","url":"https://images.barrons.com/im-221610?width=262&height=174"},"DR":{"width":"540","height":"360","url":"https://images.barrons.com/im-221610?width=540&height=360"},"E":{"width":"359","height":"239","url":"https://images.barrons.com/im-221610?width=359&height=239"},"ER":{"width":"602","height":"402","url":"https://images.barrons.com/im-221610?width=602&height=402"},"F":{"width":"571","height":"226","url":"https://images.barrons.com/im-221610?width=571&height=226"},"FR":{"width":"632","height":"810","url":"https://images.barrons.com/im-221610?width=632&height=810"},"G":{"width":"553","height":"369","url":"https://images.barrons.com/im-221610?width=553&height=369"},"GR":{"width":"1242","height":"810","url":"https://images.barrons.com/im-221610?width=1242&height=810"},"H":{"width":"659","height":"439","url":"https://images.barrons.com/im-221610?width=659&height=439"},"J":{"width":"959","height":"639","url":"https://images.barrons.com/im-221610?width=959&height=639"},"K":{"width":"800","height":"600","url":"https://images.barrons.com/im-221610?width=800&height=600"},"M":{"width":"1280","height":"853","url":"https://images.barrons.com/im-221610?width=1280&height=853"},"MEDIUMSQ":{"width":"400","height":"400","url":"https://images.barrons.com/im-221610?width=400&height=400"},"4H":{"width":"300","height":"200","url":"https://images.barrons.com/im-221610?width=300&height=200"},"z110":{"width":"110","height":"73","url":"https://images.barrons.com/im-221610?width=110&height=73"},"z120":{"width":"120","height":"80","url":"https://images.barrons.com/im-221610?width=120&height=80"},"z380":{"width":"380","height":"253","url":"https://images.barrons.com/im-221610?width=380&height=253"},"TOP":{"width":"700","height":"350","url":"https://images.barrons.com/im-221610?width=700&height=350"},"TOPSM":{"width":"620","height":"310","url":"https://images.barrons.com/im-221610?width=620&height=310"},"B620":{"width":"620","height":"412","url":"https://images.barrons.com/im-221610?width=620&height=412"},"B620P":{"width":"620","height":"349","url":"https://images.barrons.com/im-221610?width=620&height=349"}},"isFree":true,"isFreeForever":true,"wordCount":294,"slides":null,"summary":"Wall Street is expecting more losses when Kohl’s reports fiscal second-quarter earnings.","tags":[],"timestamp":1597692720000,"timestampCreatedAt":1597692720000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597690260000,"updatedAt":1597698360000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"American Express Is Buying Kabbage but Not Its Loans","originalReference":"cc8cc9c8-e0a6-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575103431778760?$HeadlineQueryString$\" > American Express Is Buying Kabbage but Not Its Loans </a></h2> <p>AmEx will gain Kabbage’s 500,000 clients, bringing its small business client base to three million.</p>\n","snippetBody":"\n\n <p> American Express has agreed to buy nearly all of fintech Kabbage as it seeks to expand its services for small businesses. </p> <p>Financial terms weren’t announced, although press reports peg the sale at $850 million. AmEx (ticker: AXP) is buying Kabbage’s team as well as its suite of financial technology products, data platform, and IP built for small businesses. This includes Kabbage’s flexible lines of credit, online bill payment, cash flow visualization tools, e-gift certificates, and the ability to centralize funds through...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":723,"externalLinkCount":5,"internalLinkCount":2},"authors":[{"authorName":"Luisa Beltran"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"slug":"Amex0817","responsive":false,"height":"853","url":"https://asset.barrons.com/public/resources/images/ON-DX135_Amex08_OR_20200817114752.jpg","credit":"Andrew Harrer/Bloomberg","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Andrew Harrer/Bloomberg"},"video":[],"propertyKeywords":["American Express","AXP"],"mediaProperties":{},"bitlyurl":"","eTag":"1597698418206","lastPubDate":1597698360000,"arthurV2Image":{"imphotoid":"im-221682","softcrop":"Horizontal","location":"https://images.barrons.com/im-221682","size":"1.5"},"insets":[{"insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","imageInfo":{"slug":"Amex0817","responsive":false,"height":"853","url":"https://asset.barrons.com/public/resources/images/ON-DX135_Amex08_OR_20200817114752.jpg","width":"1280","size":"OR"},"altImageInfo":[{"slug":"Amex0817","responsive":false,"height":"853","url":"https://asset.barrons.com/public/resources/images/ON-DX135_Amex08_OR_20200817114752.jpg","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","layout":"wrap","arthurV2Image":{"imphotoid":"im-221682","softcrop":"Horizontal","location":"https://images.barrons.com/im-221682","size":"1.5"},"credit":"Andrew Harrer/Bloomberg","caption":"","index":"0","type":"InsetMediaIllustration"}],"byline":"Luisa Beltran","url":"https://www.barrons.com/articles/american-express-is-buying-kabbage-but-not-its-loans-heres-what-you-need-to-know-51597690266","summaries":null,"selfCodes":[{"seoname":"M&A","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARMANDA","symbol":"BARMANDA","value":"M&A","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Credit Types/Services","vrtysux":"DJII-INDUSTRY|i81501","symbol":"i81501","value":"Credit Types/Services","type":"DJII-INDUSTRY"},{"seoname":"Credit Cards","vrtysux":"DJII-INDUSTRY|i8150108","symbol":"i8150108","value":"Credit Cards","type":"DJII-INDUSTRY"},{"seoname":"Banking/Credit","vrtysux":"DJII-INDUSTRY|ibnk","symbol":"ibnk","value":"Banking/Credit","type":"DJII-INDUSTRY"},{"seoname":"Financial Services","vrtysux":"DJII-INDUSTRY|ifinal","symbol":"ifinal","value":"Financial Services","type":"DJII-INDUSTRY"},{"seoname":"Financial Technology","vrtysux":"DJII-INDUSTRY|ifmsoft","symbol":"ifmsoft","value":"Financial Technology","type":"DJII-INDUSTRY"},{"seoname":"Electronic Payment Systems","vrtysux":"DJII-INDUSTRY|iplastic","symbol":"iplastic","value":"Electronic Payment Systems","type":"DJII-INDUSTRY"},{"seoname":"Technology","vrtysux":"DJII-INDUSTRY|itech","symbol":"itech","value":"Technology","type":"DJII-INDUSTRY"},{"seoname":"Corporate Funding","vrtysux":"DJII-SUBJECT|c17","symbol":"c17","value":"Corporate Funding","type":"DJII-SUBJECT"},{"seoname":"Ownership Changes","vrtysux":"DJII-SUBJECT|c18","symbol":"c18","value":"Ownership Changes","type":"DJII-SUBJECT"},{"seoname":"Acquisitions/Mergers/Shareholdings","vrtysux":"DJII-SUBJECT|c181","symbol":"c181","value":"Acquisitions/Mergers/Shareholdings","type":"DJII-SUBJECT"},{"seoname":"Information Technology","vrtysux":"DJII-SUBJECT|c25","symbol":"c25","value":"Information Technology","type":"DJII-SUBJECT"},{"seoname":"Labor/Personnel","vrtysux":"DJII-SUBJECT|c42","symbol":"c42","value":"Labor/Personnel","type":"DJII-SUBJECT"},{"seoname":"Acquisitions/Mergers","vrtysux":"DJII-SUBJECT|cacqu","symbol":"cacqu","value":"Acquisitions/Mergers","type":"DJII-SUBJECT"},{"seoname":"Corporate Actions","vrtysux":"DJII-SUBJECT|cactio","symbol":"cactio","value":"Corporate Actions","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"Lay-offs/Redundancies","vrtysux":"DJII-SUBJECT|credun","symbol":"credun","value":"Lay-offs/Redundancies","type":"DJII-SUBJECT"},{"seoname":"Small Business Lending","vrtysux":"DJII-SUBJECT|csble","symbol":"csble","value":"Small Business Lending","type":"DJII-SUBJECT"},{"seoname":"Small/Medium Businesses","vrtysux":"DJII-SUBJECT|csmlbs","symbol":"csmlbs","value":"Small/Medium Businesses","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|American Express Is Buying Kabbage but Not Its Loans. Here’s What You Need to know. ","symbol":"American Express Is Buying Kabbage but Not Its Loans. Here’s What You Need to know. ","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|American Express Is Buying Financial Technology Firm Kabbage. Here’s Why.","symbol":"American Express Is Buying Financial Technology Firm Kabbage. Here’s Why.","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Companies","vrtysux":"SUBJECT|BARCOMP","symbol":"BARCOMP","value":"Companies","type":"SUBJECT"},{"seoname":"FinTech","vrtysux":"SUBJECT|BARFINTECH","symbol":"BARFINTECH","value":"FinTech","type":"SUBJECT"},{"seoname":"M&A","vrtysux":"SUBJECT|BARMANDA","symbol":"BARMANDA","value":"M&A","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARMANDA","displayName":"M&A","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARMANDA","displayName":"M&A","type":"externalsymbol"},{"name":"BARFINTECH","displayName":"FinTech","type":"externalsymbol"},{"name":"BARCOMP","displayName":"Companies","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"AXP\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|AXP\">American Express</phrase> has <a href=\"https://www.businesswire.com/news/home/20200817005350/en/American-Express-Acquire-Kabbage\" target=\"_blank\" class=\"icon none\" >agreed to buy nearly all of fintech Kabbage</a> as it seeks to expand its services for small businesses. </p> <p>Financial terms weren’t announced, although <a href=\"https://www.barrons.com/articles/american-express-said-to-be-in-talks-to-buy-kabbage-for-850-million-51597157814\" target=\"_blank\" class=\"icon none\" >press reports peg the sale</a> at $850 million. AmEx (ticker: AXP) is buying Kabbage’s team as well as its suite of financial technology products, data platform, and IP built for small businesses. This includes Kabbage’s flexible lines of credit, online bill payment, cash flow visualization tools, e-gift certificates, and the ability to centralize funds through the company’s recently launched business checking account, <a href=\"https://www.businesswire.com/news/home/20200817005350/en/American-Express-Acquire-Kabbage\" target=\"_blank\" class=\"icon none\" >according to a statement</a>. The deal is expected to close later in 2020. </p><!-- T1:_PW --> <p>“We are super thrilled to be joining an amazing originator,” Kabbage CEO Rob Frohwein told <em>Barron’s</em>. “This is really an entrepreneur’s dream come true.” </p> <p> <a href=\"https://www.barrons.com/articles/kabbage-considers-a-sale-its-expected-to-seek-up-to-1-billion-51596490606\" target=\"_blank\" class=\"icon none\" > <em>Barron’s</em> reported earlier</a> in August that Kabbage was considering a sale after receiving expressions of interest and had hired FT Partners, an investment banking firm.</p> <p>Kabbage, of Atlanta, was founded in 2009 by CEO Frohwein; ex-chairman Marc Gorlin; and Kathryn Petralia, president, as a way to provide quick funding to small businesses. The fintech, through its website and mobile app, underwrote and serviced loans of up to $250,000 that were provided by Celtic Bank, a Federal Deposit Insurance Corp. member. More than 225,000 U.S. small business clients have accessed over $9.5 billion of working capital through Kabbage, the company said in March. </p> <p>The fintech has raised nearly $500 million in equity capital and over $2 billion in debt funding. This includes a $250 million investment from SoftBank in 2017 that valued the company at $1.2 billion.</p> <p>American Express is a leading provider of small-business credit cards and has over 2.5 million customers. With the transaction, AmEx will gain Kabbage’s 500,000 clients, bringing its small business client base to three million, said Anna Marrs, president of global commercial services at American Express. </p> <p>“This acquisition accelerates our plans to offer U.S. small businesses an easy and efficient way to manage their payments and cash flow digitally in one place, which is more critical than ever in today’s environment,” Marrs said. “By bringing together Kabbage’s innovative technology and talented team with our broad distribution capabilities and over 60 years of experience backing small businesses, we can better help our customers successfully emerge from this challenging period and beyond.” </p> <p>AmEx, however, is not buying Kabbage’s pre-existing loan portfolio or attendant services, Marrs told <em>Barron’s</em>. Kabbage’s loan customers will be serviced by a separate entity that has yet to be established, she said. </p> <p>“We are not buying any of the Kabbage loan book,” Marrs said. “It resides with the bank and Kabbage wasn’t the bank...American Express and Kabbage are making sure the customers are taken care of.”</p> <p>It’s unclear how many loans Kabbage has that are not going to AmEx. Kabbage does not break down specific loan details, an AmEx spokeswoman said. Kabbage and Celtic Bank could not be reached for comment. </p> <p>The sale comes several months since Kabbage <a href=\"https://newsroom.kabbage.com/news/ceo-statement-kabbage-funding-update/\" target=\"_blank\" class=\"icon none\" >stopped originating loans </a>in March for its Celtic Bank partnership as the Covid-19 pandemic shut down businesses across the U.S. The company furloughed a significant number of its roughly 600 employees and stopped handling new loans for its small-business clients. After the layoffs, Kabbage currently has about 300 employees, an AmEx spokeswoman said. All of those employees are joining AmEx, Frohwein said Monday. </p> <p>Kabbage in April was one of several fintechs deputized to provide loans during the Paycheck Protection Program. By the time the program ended on Aug. 8, Kabbage said it had become the second largest PPP lender in the country by application volume, <a href=\"https://newsroom.kabbage.com/news/kabbage_ppp_results_report/\" target=\"_blank\" class=\"icon none\" >according to an Aug. 13 statement.</a> The fintech processed nearly 300,000 approved PPP applications valued at over $7 billion, the statement said. </p> <p>American Express plans to take Kabbage’s capabilities, which include single sign-on and the ability to share data across platforms, and roll it out to its customers in 2021, Marrs said. She wouldn’t discuss future acquisitions but said her focus will be on AmEx-Kabbage’s three million customers. “Given the size of the base, we’ll give them the priority and grow from there,” Marrs said. </p> <p>FT Partners could immediately not be reached for comment. </p> <p>American Express stock dropped 2.8%, lagging the <phrase background-info=\"BRIEFING-BOOK\" name=\"XLF\" significance=\"PROMINENT\" type=\"EXCHANGETRADEDFUND\" vrtysux=\"EXCHANGETRADEDFUND|XLF\">Financial Select Sector SPDR ETF’s</phrase> (XLF) 1.7% decline, the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500’s</phrase> 0.3% rise, and the <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average’s</phrase> 0.3% decline. </p> <p> <strong>Write to </strong>Luisa Beltran at <a href=\"mailto:luisa.beltran@dowjones.com\" target=\"_blank\" class=\"icon \" >luisa.beltran@dowjones.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"american-express-is-buying-kabbage-but-not-its-loans-heres-what-you-need-to-know-51597690266","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX135_Amex08_OR_20200817114752.jpg","credit":"Andrew 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will gain Kabbage’s 500,000 clients, bringing its small business client base to three million.","tags":[],"timestamp":1597698360000,"timestampCreatedAt":1597690260000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597673520000,"updatedAt":1597685100000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Barrick Gold Is Surging —Just Don’t Thank Warren Buffett","originalReference":"7de4fbce-e08d-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586574852112158670?$HeadlineQueryString$\" > Barrick Gold Is Surging —Just Don’t Thank Warren Buffett </a></h2> <p>There’s a good chance that the stake came from either Ted Weschler or Todd Combs, Buffett’s investment lieutenants.</p>\n","snippetBody":"\n\n <p> Barrick Gold was getting a lift on Monday from the news that Berkshire Hathaway initiated a position of 20.9 million shares in the second quarter that is now worth about $600 million. </p> <p>Shares of Barrick (ticker: GOLD) were up 11%, to $29.96, at 1:22 p.m. on Monday. Its similarly sized rival, Newmont (NEM), was up only 6.6%, to $65.95. Gold was up $29, to $1,974 an ounce. </p> <p>Berkshire’s...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":551,"externalLinkCount":0,"internalLinkCount":1},"authors":[{"authorName":"Andrew Bary","authorTopicId":"6151","authorBiography":"https://www.wsj.com/news/author/6151"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"bitlyurl":"","imagesbucket":{"OR":{"slug":"Berkshire0731","responsive":false,"height":"907","credit":"Nicholas Roberts/AFP via Getty Images","url":"https://asset.barrons.com/public/resources/images/ON-DW240_Berksh_OR_20200731105718.jpg","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Nicholas Roberts/AFP via Getty Images"},"video":[],"propertyKeywords":["Barrick Gold","ABX.T","Berkshire Hathaway","BRKA","Amazon","AMZN","Kroger","KR","Costco Wholesale","COST","American Airlines Group","AAL","Warren Buffett"],"mediaProperties":{},"contentServiceVersion":"3.45.0","seoId":"berkshire-gold-is-surging-just-dont-thank-warren-buffett-51597673542","html":"\n\n<!-- T1:M --> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"ABX.T\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|ABX.T\">Barrick Gold</phrase> was getting a lift on Monday from the news that <phrase background-info=\"BRIEFING-BOOK\" name=\"BRKA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|BRKA\">Berkshire Hathaway</phrase> initiated a position of 20.9 million shares in the second quarter that is now worth about $600 million. </p> <p>Shares of Barrick (ticker: GOLD) were up 11%, to $29.96, at 1:22 p.m. on Monday. Its similarly sized rival, Newmont (NEM), was up only 6.6%, to $65.95. Gold was up $29, to $1,974 an ounce. </p> <!-- T1:_PW --><p>Berkshire’s equity moves are usually attributed to CEO Warren Buffett, who oversees the company’s stock portfolio, which totaled about $217 billion at the end of the second quarter. </p> <p>But in the case of Barrick, there is a good chance that the purchase came from either Ted Weschler or Todd Combs, Buffett’s investment lieutenants who each manage about $15 billion of Berkshire’s equity portfolio.</p> <p>Weschler and Combs tend to hold positions that run at $1 billion or less, while Buffett’s positions tend to be multibillion dollars because those holdings move the needle at Berkshire, whose market value is more than $500 billion. </p> <p>Buffett is no fan of gold, having said that it is a static asset that produces nothing and merely “looks back at you.” Berkshire had no immediate comment. </p> <p>For example, the <phrase background-info=\"BRIEFING-BOOK\" name=\"KR\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|KR\">Kroger</phrase> (KR) holding that Berkshire initiated in the fourth quarter of 2019 of about 19 million shares initially worth about $500 million was done by Weschler or Combs, Buffett told CNBC in February. Kroger is up 24% so far this year </p> <p>Asked about whether he had bought the Kroger, Buffett said “It was one of the others. And—you know, I—I know Kroger. Kroger—Kroger’s done a good job, but it’s in a very tough business. I mean, when you have—when you have—<phrase background-info=\"BRIEFING-BOOK\" name=\"AMZN\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|AMZN\">Amazon</phrase> and <phrase background-info=\"BRIEFING-BOOK\" name=\"WMT\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|WMT\">Walmart</phrase> slugging it out and <phrase background-info=\"BRIEFING-BOOK\" name=\"COST\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|COST\">Costco</phrase> taking a special part of it and everything, it’s a tough business. But—they’ve done a good job. And one of our managers decided to buy that.”</p> <p>Berkshire added three million shares to its Kroger holding in the second quarter, bringing it to 21.9 million shares. </p> <p>There were other Berkshire moves in the second quarter that were likely done by Buffett. Berkshire slashed its holding <phrase background-info=\"BRIEFING-BOOK\" name=\"JPM\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|JPM\">JPMorgan Chase</phrase> (JPM) by 35.5 million shares, or about $3 billion, to 22.2 million shares. And Berkshire continued to reduce in investment in <phrase background-info=\"BRIEFING-BOOK\" name=\"WFC\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|WFC\">Wells Fargo</phrase> (WFC), dropping it by 85.5 million shares, also about $3 billion, to 237.6 million shares. </p> <p>The JPMorgan sale is notable because Buffett has long praised both CEO Jamie Dimon and extolled the bank’s pre-pandemic returns. And Berkshire’s holding in Wells Fargo goes back about 30 years and it was Berkshire’s main bank investment for years. Berkshire’s profits in Wells Fargo have melted away given the stock’s drop of more than 50% this year, to $24.68. Berkshire’s average cost is about $20 a share. </p> <p>Berkshire’s bank holdings are now dominated by <phrase background-info=\"BRIEFING-BOOK\" name=\"BAC\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|BAC\">Bank of America</phrase>. Berkshire holds over 1 billion shares worth more than $26 billion after buying $2 billion recently. </p> <p>One of Berkshire’s holdings in the four major U.S. airlines was done by either Combs or Weschler, Buffett told CNBC in February. He did not specify which one. Berkshire sold those holdings for about $6 billion in the second quarter. The airlines are <phrase background-info=\"BRIEFING-BOOK\" name=\"LUV\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|LUV\">Southwest Airlines</phrase> (LUV), <phrase background-info=\"BRIEFING-BOOK\" name=\"DAL\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|DAL\">Delta Air Lines</phrase> (DAL), United Airlines Holdings (UAL) and <phrase background-info=\"BRIEFING-BOOK\" name=\"AAL\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|AAL\">America Airlines Group</phrase> (AAL). </p> <p> <strong>Write to </strong>Andrew Bary at <a href=\"mailto:andrew.bary@barrons.com\" target=\"_blank\" class=\"icon \" >andrew.bary@barrons.com</a></p>\n\n","lastPubDate":1597685100000,"eTag":"1597685131987","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DW240_Berksh_OR_20200731105718.jpg","credit":"Nicholas Roberts/AFP via Getty Images"},"selfCodes":[{"seoname":"Warren Buffett","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARWARRENBUFFETT","symbol":"BARWARRENBUFFETT","value":"Warren Buffett","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Metal Ore Mining","vrtysux":"DJII-INDUSTRY|i211","symbol":"i211","value":"Metal Ore Mining","type":"DJII-INDUSTRY"},{"seoname":"Retail/Wholesale","vrtysux":"DJII-INDUSTRY|i64","symbol":"i64","value":"Retail/Wholesale","type":"DJII-INDUSTRY"},{"seoname":"Food Retailing","vrtysux":"DJII-INDUSTRY|i641","symbol":"i641","value":"Food Retailing","type":"DJII-INDUSTRY"},{"seoname":"Supermarkets/Grocery Stores","vrtysux":"DJII-INDUSTRY|I6411","symbol":"I6411","value":"Supermarkets/Grocery Stores","type":"DJII-INDUSTRY"},{"seoname":"Specialty Retailing","vrtysux":"DJII-INDUSTRY|i654","symbol":"i654","value":"Specialty Retailing","type":"DJII-INDUSTRY"},{"seoname":"Banking","vrtysux":"DJII-INDUSTRY|i814","symbol":"i814","value":"Banking","type":"DJII-INDUSTRY"},{"seoname":"Diversified Holding Companies","vrtysux":"DJII-INDUSTRY|i8396","symbol":"i8396","value":"Diversified Holding Companies","type":"DJII-INDUSTRY"},{"seoname":"Automotive","vrtysux":"DJII-INDUSTRY|iaut","symbol":"iaut","value":"Automotive","type":"DJII-INDUSTRY"},{"seoname":"Basic Materials/Resources","vrtysux":"DJII-INDUSTRY|ibasicm","symbol":"ibasicm","value":"Basic Materials/Resources","type":"DJII-INDUSTRY"},{"seoname":"Business/Consumer Services","vrtysux":"DJII-INDUSTRY|ibcs","symbol":"ibcs","value":"Business/Consumer Services","type":"DJII-INDUSTRY"},{"seoname":"Banking/Credit","vrtysux":"DJII-INDUSTRY|ibnk","symbol":"ibnk","value":"Banking/Credit","type":"DJII-INDUSTRY"},{"seoname":"Financial Services","vrtysux":"DJII-INDUSTRY|ifinal","symbol":"ifinal","value":"Financial Services","type":"DJII-INDUSTRY"},{"seoname":"Gold Ore Mining","vrtysux":"DJII-INDUSTRY|igoldm","symbol":"igoldm","value":"Gold Ore Mining","type":"DJII-INDUSTRY"},{"seoname":"Integrated Banks","vrtysux":"DJII-INDUSTRY|IIBNK","symbol":"IIBNK","value":"Integrated Banks","type":"DJII-INDUSTRY"},{"seoname":"Mining/Quarrying","vrtysux":"DJII-INDUSTRY|imet","symbol":"imet","value":"Mining/Quarrying","type":"DJII-INDUSTRY"},{"seoname":"Non-ferrous Metal Ore Mining","vrtysux":"DJII-INDUSTRY|infmore","symbol":"infmore","value":"Non-ferrous Metal Ore Mining","type":"DJII-INDUSTRY"},{"seoname":"Retail","vrtysux":"DJII-INDUSTRY|iretail","symbol":"iretail","value":"Retail","type":"DJII-INDUSTRY"},{"seoname":"Financial Performance","vrtysux":"DJII-SUBJECT|c15","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|Berkshire Gold Is Surging —Just Don’t Thank Warren Buffett","symbol":"Berkshire Gold Is Surging —Just Don’t Thank Warren Buffett","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|Warren Buffett Probably Didn’t Buy Barrick Gold. 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a good chance that the stake came from either Ted Weschler or Todd Combs, Buffett’s investment lieutenants.","tags":[],"timestamp":1597685100000,"timestampCreatedAt":1597673520000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597680360000,"updatedAt":1597689780000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"JD.com Rallies on Better-Than-Expected Earnings","originalReference":"a5d2fb94-e09d-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575012782067604?$HeadlineQueryString$\" > JD.com Rallies on Better-Than-Expected Earnings </a></h2> <p>JD.com said annual active customers in the second quarter totaled 417.4 million, up 29.9% from 12 months earlier.</p>\n","snippetBody":"\n\n <p> JD.com shares were higher Monday after the China-based e-commerce company posted better-than-expected financial results.</p> <p>For the quarter ended in June, the Beijing-based company posted revenue of $28.5 billion, up 33.8% from a year earlier and above the Wall Street analyst consensus forecast of $27.5 billion. Non-GAAP profit was 50 cents a share, ahead of the Street at 38 cents.</p> <p>JD.com...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":253,"externalLinkCount":1,"internalLinkCount":1},"authors":[{"authorName":"Eric J. Savitz","authorTopicId":"8582","authorBiography":"https://www.wsj.com/news/author/8582"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"bitlyurl":"","imagesbucket":{"OR":{"slug":"JD0817","responsive":false,"height":"853","credit":"Greg Baker/AFP via Getty Images","url":"https://asset.barrons.com/public/resources/images/ON-DX127_JD0817_OR_20200817103400.jpg","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"Workers sort packages at a JD.com distribution center in Beijing.","credit":"Greg Baker/AFP via Getty Images"},"video":[],"propertyKeywords":["JD.com","JD"],"mediaProperties":{},"contentServiceVersion":"3.45.0","seoId":"jd-stock-china-retailer-earnings-pandemic-e-commerce-covid-51597680214","html":"\n\n<!-- T1:M --> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"JD\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|JD\">JD.com </phrase>shares were higher Monday after the China-based e-commerce company posted <a href=\"https://ir.jd.com/system/files-encrypted/nasdaq_kms/assets/2020/08/17/7-44-36/JD.com Announces 2020 Second Quarter and Interim Financial Results.pdf\" target=\"_blank\" class=\"icon none\" >better-than-expected financial results.</a></p> <p>For the quarter ended in June, the Beijing-based company posted revenue of $28.5 billion, up 33.8% from a year earlier and above the Wall Street analyst consensus forecast of $27.5 billion. Non-GAAP profit was 50 cents a share, ahead of the Street at 38 cents.</p> <!-- T1:_PW --><p>JD.com (ticker: JD) said annual active customers were 417.4 million, up 29.9% from 12 months earlier.</p> <p>“Since the Covid-19 outbreak, JD has steadfastly leveraged our distinctive supply chain and technology capabilities to contribute to society and ensure the steady supply and undisrupted delivery of daily necessities to consumers, while helping to create jobs within our ecosystem and support business partners amidst the dynamic economic environment,” CEO Richard Liu said in a statement. </p> <p>CFO Sandy Xu said in a statement that “our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China’s economy emerges from the difficult pandemic period, and helped drive solid top and bottom line results for the second quarter.”</p> <p>The company didn’t provide guidance for the current quarter, citing restrictions related to the recent listing of its stock on the Hong Kong stock exchange.</p> <p>JD.com shares were up 6.6% to $66.17 at 2:41 p.m. on Monday. The <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> was up 0.4%. The stock is up 82% year to date, and now sports a market cap of just over $101 billion. </p> <p> <strong>Write to </strong>Eric J. Savitz at <a href=\"mailto:eric.savitz@barrons.com\" target=\"_blank\" class=\"icon \" >eric.savitz@barrons.com</a></p>\n\n","lastPubDate":1597689780000,"eTag":"1597689822992","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX127_JD0817_OR_20200817103400.jpg","credit":"Greg Baker/AFP via Getty Images"},"selfCodes":[{"seoname":"Earnings Report","vrtysux":"BARRONS_DISPLAY_BRAND|BAREARNREP","symbol":"BAREARNREP","value":"Earnings Report","type":"BARRONS_DISPLAY_BRAND"},{"seoname":"Retail","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARRETAIL","symbol":"BARRETAIL","value":"Retail","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Printing/Publishing","vrtysux":"DJII-INDUSTRY|i475","symbol":"i475","value":"Printing/Publishing","type":"DJII-INDUSTRY"},{"seoname":"Retail/Wholesale","vrtysux":"DJII-INDUSTRY|i64","symbol":"i64","value":"Retail/Wholesale","type":"DJII-INDUSTRY"},{"seoname":"Etailing","vrtysux":"DJII-INDUSTRY|i656000301","symbol":"i656000301","value":"Etailing","type":"DJII-INDUSTRY"},{"seoname":"E-commerce","vrtysux":"DJII-INDUSTRY|iecom","symbol":"iecom","value":"E-commerce","type":"DJII-INDUSTRY"},{"seoname":"Online Service Providers","vrtysux":"DJII-INDUSTRY|iint","symbol":"iint","value":"Online Service Providers","type":"DJII-INDUSTRY"},{"seoname":"Media/Entertainment","vrtysux":"DJII-INDUSTRY|imed","symbol":"imed","value":"Media/Entertainment","type":"DJII-INDUSTRY"},{"seoname":"Retail","vrtysux":"DJII-INDUSTRY|iretail","symbol":"iretail","value":"Retail","type":"DJII-INDUSTRY"},{"seoname":"Technology","vrtysux":"DJII-INDUSTRY|itech","symbol":"itech","value":"Technology","type":"DJII-INDUSTRY"},{"seoname":"Financial Performance","vrtysux":"DJII-SUBJECT|c15","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"seoname":"Earnings","vrtysux":"DJII-SUBJECT|c151","symbol":"c151","value":"Earnings","type":"DJII-SUBJECT"},{"seoname":"Earnings Surprises","vrtysux":"DJII-SUBJECT|c1514","symbol":"c1514","value":"Earnings Surprises","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|China Retailer JD.com Stock Rallies on Better-Than-Expected Earnings","symbol":"China Retailer JD.com Stock Rallies on Better-Than-Expected Earnings","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|JD.com Stock Jumps on Better-Than-Expected Earnings. 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Savitz","url":"https://www.barrons.com/articles/jd-stock-china-retailer-earnings-pandemic-e-commerce-covid-51597680214","summaries":null,"arthurV2Image":{"imphotoid":"im-221635","softcrop":"Horizontal","location":"https://images.barrons.com/im-221635","size":"1.5"},"insets":[{"insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","imageInfo":{"slug":"JD0817","responsive":false,"height":"853","url":"https://asset.barrons.com/public/resources/images/ON-DX127_JD0817_OR_20200817103400.jpg","width":"1280","size":"OR"},"altImageInfo":[{"slug":"JD0817","responsive":false,"height":"853","url":"https://asset.barrons.com/public/resources/images/ON-DX127_JD0817_OR_20200817103400.jpg","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","layout":"wrap","caption":"Workers sort packages at a JD.com distribution center in Beijing.","credit":"Greg Baker/AFP via Getty 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said annual active customers in the second quarter totaled 417.4 million, up 29.9% from 12 months earlier.","tags":[],"timestamp":1597689780000,"timestampCreatedAt":1597680360000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597677180000,"updatedAt":1597684080000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Overstock Extends Huge Rally as Piper Advises Investors to Jump Aboard","originalReference":"f9caa878-e098-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586574964190808184?$HeadlineQueryString$\" > Overstock Extends Huge Rally as Piper Advises Investors to Jump Aboard </a></h2> <p>Analyst contends the stock still looks cheap compared with other high-growth consumer tech companies.</p>\n","snippetBody":"\n\n <p> Overstock.com shares, already in the middle of an astonishing rally, received a substantial boost on Monday from Piper Sandler analyst Peter Keith, who picked up coverage of the e-commerce company with an Overweight rating and $140 price target. </p> <p>Note that heading into his call, Overstock shares (ticker: OSTK) were already up 1,200% year to date, the result of high-profile management change last year and a refocused business targeting the home furnishings market. On Monday, the shares were up nearly 15%, to $107.20.</p>...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":384,"externalLinkCount":0,"internalLinkCount":2},"authors":[{"authorName":"Eric J. 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One Analyst Sees More Gains to Come.","seoname":"","symbol":"Overstock Stock Has Gained More Than 1,000% This Year. 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On Monday, the shares were up nearly 15%, to $107.20.</p> <p>“There are seismic forces at work that have dramatically improved the sales and profitability outlook for Overstock (OSTK) well into the future,” Keith writes in a research note. “These forces include a well-timed refocus of the business on its e-commerce home furnishings business (led by new management), combined with a structural shift in e-commerce home furnishing sales as a result of Covid. Looking forward we expect the industry backdrop to remain extremely supportive, and Oversock has a number of operating initiatives to improve sales/profitability.” </p> <p>Keith contends that despite the huge run, the stock looks cheap compared with other high-growth consumer tech companies.</p> <p>Overstock, as the company’s name implies, started life as a reseller of end-of-run, overstock, damaged, and other secondary goods. But the company’s name no longer describes its business, which is now focused on home goods, much like Wayfair (W). Keith notes that the online portion of the $300 billion U.S. home furnishings market has expanded to 32% of overall industry sales from 23% during the pandemic. </p> <p>“We expect Overstock to benefit from an exceptionally strong industry backdrop for the next five years as a result of both the e-com share shift, and a favorable housing backdrop,” he writes.</p> <p>Overstock for many years was the subject of intense scrutiny tied to its controversial longtime CEO Patrick Byrne, <a href=\"https://www.barrons.com/articles/overstocks-founder-patrick-byrne-has-left-new-ceo-weighs-in-on-whats-next-51566830460\" target=\"_blank\" class=\"icon none\" >who stepped down from the top job last August</a>. Keith writes that new CEO Jonathan Johnson has refocused the company on selling home furnishings. He notes that since Byrne left, the company has started a formal investor outreach program and hired a director of investors relations.</p> <p>Keith sees Overstock posting sales of $2.9 billion this year and $3.4 billion next year, with profits of 47 cents a share this year and $1.27 a share next year.</p> <p></p> <p> <strong>Write to </strong>Eric J. Savitz at <a href=\"mailto:eric.savitz@barrons.com\" target=\"_blank\" class=\"icon \" >eric.savitz@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"overstock-extends-huge-rally-as-analyst-advises-investors-to-jump-aboard-51597677211","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX128_overst_OR_20200817103644.jpg","credit":"Daniel Carde/Bloomberg"},"lastPubDate":1597684080000,"displayName":"Stock Alert","date":1597684080000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB51053606091319544133904586574964190808184","type":"article_extended","articleId":"SB51053606091319544133904586574964190808184","articleSection":"Daily","articleType":"Stock Alert","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"subject":"Technology"}},"image":{"A":{"width":"76","height":"76","url":"https://images.barrons.com/im-221637?width=76&height=76"},"AM":{"width":"220","height":"220","url":"https://images.barrons.com/im-221637?width=220&height=220"},"B220":{"width":"220","height":"146","url":"https://images.barrons.com/im-221637?width=220&height=146"},"C":{"width":"167","height":"94","url":"https://images.barrons.com/im-221637?width=167&height=94"},"CA":{"width":"300","height":"200","url":"https://images.barrons.com/im-221637?width=300&height=200"},"D":{"width":"262","height":"174","url":"https://images.barrons.com/im-221637?width=262&height=174"},"DR":{"width":"540","height":"360","url":"https://images.barrons.com/im-221637?width=540&height=360"},"E":{"width":"359","height":"239","url":"https://images.barrons.com/im-221637?width=359&height=239"},"ER":{"width":"602","height":"402","url":"https://images.barrons.com/im-221637?width=602&height=402"},"F":{"width":"571","height":"226","url":"https://images.barrons.com/im-221637?width=571&height=226"},"FR":{"width":"632","height":"810","url":"https://images.barrons.com/im-221637?width=632&height=810"},"G":{"width":"553","height":"369","url":"https://images.barrons.com/im-221637?width=553&height=369"},"GR":{"width":"1242","height":"810","url":"https://images.barrons.com/im-221637?width=1242&height=810"},"H":{"width":"659","height":"439","url":"https://images.barrons.com/im-221637?width=659&height=439"},"J":{"width":"959","height":"639","url":"https://images.barrons.com/im-221637?width=959&height=639"},"K":{"width":"800","height":"600","url":"https://images.barrons.com/im-221637?width=800&height=600"},"M":{"width":"1280","height":"853","url":"https://images.barrons.com/im-221637?width=1280&height=853"},"MEDIUMSQ":{"width":"400","height":"400","url":"https://images.barrons.com/im-221637?width=400&height=400"},"4H":{"width":"300","height":"200","url":"https://images.barrons.com/im-221637?width=300&height=200"},"z110":{"width":"110","height":"73","url":"https://images.barrons.com/im-221637?width=110&height=73"},"z120":{"width":"120","height":"80","url":"https://images.barrons.com/im-221637?width=120&height=80"},"z380":{"width":"380","height":"253","url":"https://images.barrons.com/im-221637?width=380&height=253"},"TOP":{"width":"700","height":"350","url":"https://images.barrons.com/im-221637?width=700&height=350"},"TOPSM":{"width":"620","height":"310","url":"https://images.barrons.com/im-221637?width=620&height=310"},"B620":{"width":"620","height":"412","url":"https://images.barrons.com/im-221637?width=620&height=412"},"B620P":{"width":"620","height":"349","url":"https://images.barrons.com/im-221637?width=620&height=349"}},"isFree":true,"isFreeForever":true,"wordCount":384,"slides":null,"summary":"Analyst contends the stock still looks cheap compared with other high-growth consumer tech companies.","tags":[],"timestamp":1597684080000,"timestampCreatedAt":1597677180000,"enableCoralComments":false},{"eTag":"1597690859203","dateType":"auto","createdAt":1597683300000,"updatedAt":1597690800000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Activist Holder Elliott Turns Up Heat on Crown’s Fiber-Cable Business","originalReference":"4e6d6f14-e0a3-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575071315794708?$HeadlineQueryString$\" > Activist Holder Elliott Turns Up Heat on Crown’s Fiber-Cable Business </a></h2> <p>It called on Crown to begin an operational and strategic review of the business, claiming that Crown hasn’t yet put forth a credible plan for improvement.</p>\n","snippetBody":"\n\n <p>Activist investor Elliott Management is ratcheting up the pressure on Crown Castle. </p> <p>The hedge fund disclosed a $1 billion stake in the Houston-based cell tower firm last month, arguing that Crown wasn’t getting proportional rewards for its hefty investment of time and money in its fiber-cable business. At the time, Elliott suggested Crown Castle (ticker: CCI) should target a 40% return on its fiber spending.</p> <p>On...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":1,"videoCount":0,"imageCount":1,"wordCount":340,"externalLinkCount":1,"internalLinkCount":3},"authors":[{"authorName":"Carleton English","authorTopicId":"8590","authorBiography":"https://www.wsj.com/news/author/8590"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"height":"853","slug":"Crown0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX140_Crown0_OR_20200817124915.jpg","credit":"Dreamstime","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"Crown said Monday it is “open to considering opportunities to create value.” ","credit":"Dreamstime"},"video":[],"propertyKeywords":["Crown Castle 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Funds","type":"DJII-INDUSTRY"},{"seoname":"Investing/Securities","vrtysux":"DJII-INDUSTRY|iinv","symbol":"iinv","value":"Investing/Securities","type":"DJII-INDUSTRY"},{"seoname":"Media/Entertainment","vrtysux":"DJII-INDUSTRY|imed","symbol":"imed","value":"Media/Entertainment","type":"DJII-INDUSTRY"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|Activist Holder Elliott Turns Up the Heat on Crown Castle’s Fiber-Cable Business ","symbol":"Activist Holder Elliott Turns Up the Heat on Crown Castle’s Fiber-Cable Business ","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|Crown Castle ‘Seems to Know There Is a Problem, but Refuses to Acknowledge It,’ Elliott Charges","symbol":"Crown Castle ‘Seems to Know There Is a Problem, but Refuses to Acknowledge It,’ Elliott Charges","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Activist Investing","vrtysux":"SUBJECT|BARACTINVEST","symbol":"BARACTINVEST","value":"Activist Investing","type":"SUBJECT"},{"seoname":"Telecom","vrtysux":"SUBJECT|BARTEL","symbol":"BARTEL","value":"Telecom","type":"SUBJECT"},{"seoname":"","vrtysux":"SUBJECT|ONLY","symbol":"ONLY","value":"","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARTEL","displayName":"Telecom","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"ONLY","type":"externalsymbol"},{"name":"BARTEL","displayName":"Telecom","type":"externalsymbol"},{"name":"BARACTINVEST","displayName":"Activist Investing","type":"externalsymbol"}]},"lastPubDate":1597690800000,"html":"\n\n<!-- T1:M --> <p>Activist investor Elliott Management is ratcheting up the pressure on <phrase background-info=\"BRIEFING-BOOK\" name=\"CCI\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|CCI\">Crown Castle</phrase>. </p> <p>The hedge fund disclosed a $1 billion stake in the <a href=\"https://www.barrons.com/articles/2-cell-tower-reits-to-play-the-5g-spending-surge-51590325202\" target=\"_blank\" class=\"icon none\" >Houston-based cell tower firm last month</a>, arguing that Crown wasn’t getting proportional rewards for its hefty investment of time and money in its fiber-cable business. At the time, Elliott suggested Crown Castle (ticker: CCI) <a href=\"https://www.barrons.com/articles/crown-castle-stock-dividend-activist-elliott-management-51594407140\" target=\"_blank\" class=\"icon none\" >should target a 40% return on its fiber spending</a>.</p> <!-- T1:_PW --><p>On Monday, Elliott turned up the heat, calling on Crown to immediately begin an operational and strategic review of the fiber business, <a href=\"https://www.barrons.com/articles/5g-investment-is-slower-than-expected-hitting-cell-tower-reits-51596130313\" target=\"_blank\" class=\"icon none\" >claiming that Crown hasn’t yet put forth</a> a credible plan to improve its fiber business. The hedge fund noted that, instead, Crown announced a series of “incremental steps and rear-guard actions,” including corporate-governance changes and the coming departure of its chief operations officer, which didn’t address Elliott’s core concerns. </p> <p>“Taken together, these actions paint a picture of a Company that seems to know there is a problem, but refuses to acknowledge it,” Jesse Cohn, partner at Elliott, and Jason Genrich, an Elliott portfolio manager, said in a letter to Crown’s board. </p> <!-- T1:M --> <p>“It is becoming clear that this management team does not understand what they bought (and spent $16 billion building) and does not understand how to run the business better,” they wrote. The duo said that since announcing their stake in Crown, they have received several comments from other fiber executives and possible financial buyers who believe they can run the business efficiently. </p> <p>Crown said Monday it is “open to considering opportunities to create value.” The company noted recent governance changes and other measures it has taken, and said it has received support from shareholders.</p> <p>“Crown Castle is confident that its strategy is delivering significant, measurable results and best positions the Company to create superior long-term shareholder value,” it said in an emailed statement. </p> <p>Shares of Crown, which have risen 16% this year, were up 0.5% to $165.48 around midday Monday. The <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500 </phrase>was up 0.3%, while the <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase> was off 0.3%</p> <p> <strong>Write to </strong>Carleton English at <a href=\"mailto:carleton.english@dowjones.com\" target=\"_blank\" class=\"icon \" >carleton.english@dowjones.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"crown-castle-stock-fiber-cable-activist-elliott-cell-tower-51597682696","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX140_Crown0_OR_20200817124915.jpg","credit":"Dreamstime"},"displayName":"Stock 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called on Crown to begin an operational and strategic review of the business, claiming that Crown hasn’t yet put forth a credible plan for improvement.","tags":[],"timestamp":1597690800000,"timestampCreatedAt":1597683300000,"enableCoralComments":false},{"eTag":"1597691415206","dateType":"auto","createdAt":1597681260000,"updatedAt":1597691340000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"KBW Sees Silver Lining for Bank Stocks in Low Interest Rates","originalReference":"f5cbeedc-e0a0-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586575044123782876?$HeadlineQueryString$\" > KBW Sees Silver Lining for Bank Stocks in Low Interest Rates </a></h2> <p>Low rates force banks to be more discerning —and less likely to face credit losses later.</p>\n","snippetBody":"\n\n <p>Low interest rates have been the scourge of bank stocks, but a recent analysis by the team at Keefe, Bruyette & Woods suggests that low rates may not be all bad.</p> <p>Implied in the low rates is improved credit quality, Frederick Cannon, global director of research at KBW, wrote in a recent note. </p> <p>While the immediate negative impact of low...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":1,"wordCount":384,"externalLinkCount":1,"internalLinkCount":4},"authors":[{"authorName":"Carleton English","authorTopicId":"8590","authorBiography":"https://www.wsj.com/news/author/8590"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"height":"730","slug":"banks0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX123_banks0_OR_20200817100609.jpg","credit":"Mario Tama/Getty Images","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Mario Tama/Getty Images"},"video":[],"propertyKeywords":["Berkshire Hathaway Cl B","BRKA","JPMorgan Chase &","JPM","Wells Fargo &","WFC"],"mediaProperties":{},"bitlyurl":"","insets":[{"altImageInfo":[{"height":"730","slug":"banks0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX123_banks0_OR_20200817100609.jpg","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","insetProperties":{"layout":"wrap"},"id":"media-2","imageInfo":{"height":"730","slug":"banks0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX123_banks0_OR_20200817100609.jpg","width":"1280","size":"OR"},"layout":"wrap","responsive":false,"arthurV2Image":{"imphotoid":"im-221620","softcrop":"Horizontal","location":"https://images.barrons.com/im-221620","size":"1.5"},"credit":"Mario Tama/Getty 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Here’s Why. ","symbol":"Low Rates Might Not Be as Bad for Bank Stocks as You Think. Here’s Why. ","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Banks","vrtysux":"SUBJECT|BARBANKS","symbol":"BARBANKS","value":"Banks","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARBANKS","displayName":"Banks","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARBANKS","displayName":"Banks","type":"externalsymbol"}]},"lastPubDate":1597691340000,"html":"\n\n<!-- T1:M --> <p>Low interest rates have been the scourge of bank stocks, but a recent analysis by the team at Keefe, Bruyette & Woods suggests that low rates may not be all bad.</p> <p>Implied in the low rates is improved credit quality, Frederick Cannon, global director of research at KBW, wrote in a recent note. </p> <!-- T1:_PW --><p>While the immediate negative impact of low rates is that it <a href=\"https://www.barrons.com/articles/banks-are-prepared-to-weather-this-downturn-analysts-say-51597251388\" target=\"_blank\" class=\"icon none\" >constrains the banks’ net interest income</a>, it also forces banks to become more <a href=\"https://www.barrons.com/articles/banks-are-making-it-harder-to-get-a-loan-why-thats-bad-news-51596581954\" target=\"_blank\" class=\"icon none\" >selective about who they lend to</a>, meaning that they are less likely to face credit losses down the line. Higher interest rates are great if a bank can collect them, but are of little help if loans go bad.</p> <p>“The cost of collecting on poor credits is high and generally more than offsets fees generated from delinquencies,” Cannon wrote.</p> <p>Of course this dynamic has not yet played out in U.S. bank stocks’ performance. The <phrase background-info=\"BRIEFING-BOOK\" name=\"BKX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|BKX\">KBW Bank Index</phrase> (ticker: BKX) has pared some losses since its March lows but is still down 32% this year despite the broader market flirting with all-time highs. Bank investors have been worried about low interest rates -- which are almost certain to be in effect for some time -- <a href=\"https://www.barrons.com/articles/federal-reserve-tells-big-banks-how-much-a-capital-buffer-they-must-have-51597080906\" target=\"_blank\" class=\"icon none\" >as well as looming loan losses</a>. While much of the economy is operating at reduced capacity and millions remain unemployed, investors and analysts have been nervous about the sector’s credit exposure.</p> <p>But KBW looked to second-quarter financial results and further projections and saw signs of the positive impact of lower rates. Expected credit costs for 2021 fell by $11 billion for banks in KBW’s coverage universe after the banks reported results while the drop in expected net interest income fell by $5 billion.</p> <p>“The greater drop in provision expense than net interest income suggests a positive impact from the decline in interest rates in the quarter from the decline in bond yields that occurred,” Cannon wrote.</p> <p>Of course, investors are still skittish on bank stocks. <phrase background-info=\"BRIEFING-BOOK\" name=\"BRKA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|BRKA\">Berkshire Hathaway</phrase> (BRK.B) <a href=\"https://www.barrons.com/articles/warren-buffett-berkshire-hathaway-sells-jpmorgan-occidental-stock-buys-barrick-gold-51597438489\" target=\"_blank\" class=\"icon none\" >notably trimmed many of its bank holdings</a> during the second quarter, trimming its position in <phrase background-info=\"BRIEFING-BOOK\" name=\"JPM\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|JPM\">JPMorgan Chase</phrase> (JPM) and <phrase background-info=\"BRIEFING-BOOK\" name=\"WFC\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|WFC\">Wells Fargo</phrase> (WFC).</p> <p>The KBW Bank Index was off by 1.8% in Monday’s trading, while the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> gained 0.3%, and the <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase> has slipped 0.3%.</p> <p> <strong>Write to </strong>Carleton English at <a href=\"mailto:carleton.english@dowjones.com\" target=\"_blank\" class=\"icon \" >carleton.english@dowjones.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"kbw-sees-silver-lining-for-bank-stocks-in-low-interest-rates-51597681311","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX123_banks0_OR_20200817100609.jpg","credit":"Mario Tama/Getty Images"},"displayName":"Sectorfocus Blog","date":1597691340000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB51053606091319544133904586575044123782876","type":"article_extended","articleId":"SB51053606091319544133904586575044123782876","articleSection":"Daily","articleType":"Sectorfocus 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rates force banks to be more discerning —and less likely to face credit losses later.","tags":[],"timestamp":1597691340000,"timestampCreatedAt":1597681260000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597676520000,"updatedAt":1597676520000,"archiveStoring":"DO-NOT-ARCHIVE","deck":"","privilages":"CODES_REVIEWED","headline":"Video: Betterment CEO’s Key Lessons","originalReference":"09803b9c-e09a-11ea-a17b-5fd32dae3db2","section":"Decos and Corrections","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586574980159398812?$HeadlineQueryString$\" > <a href=\"https://www.barrons.com/video/series/market-brief/betterment-ceo-key-lessons/5DFED130-3A8F-4AAA-A09B-007CC23EB493?mod=hpsubnav\" target=\"_blank\" class=\"icon none\" >Video: Betterment CEO’s Key Lessons</a> </a></h2> <p>Jon Stein discusses how to maneuver today’s volatility. Plus, perspective on New York housing with real estate mogul Mauricio Umansky and emerging market opportunities from J.P. Morgan’s Rashmi Gupta.</p>\n","snippetBody":"\n\n <p></p>\n\n...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":1,"imageCount":0,"wordCount":2,"externalLinkCount":0,"internalLinkCount":1},"authors":[],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"responsive":false,"slug":"MB0817","url":"https://asset.barrons.com/public/resources/images/ON-DX131_MB0817_OR_20200817105227.jpg","height":"720","width":"1280","size":"OR"}},"firstMedia":{},"video":{"id":"5DFED130-3A8F-4AAA-A09B-007CC23EB493","caption":""},"propertyKeywords":[],"mediaProperties":{},"bitlyurl":"","eTag":"1597676564684","arthurV2Image":{"imphotoid":"im-221658","softcrop":"Horizontal","location":"https://images.barrons.com/im-221658","size":"1.5"},"insets":[{"mediaDeck":"","strap":"","srcId":"5DFED130-3A8F-4AAA-A09B-007CC23EB493","player":"","layout":"inline","eSplash":"","mSplash":"","insetProperties":{"layout":"inline"},"caption":"","index":"0","format":"standard","id":"inset-2","type":"InsetMediaVideo"}],"byline":"","url":"https://www.barrons.com/video/series/market-brief/betterment-ceo-key-lessons/5DFED130-3A8F-4AAA-A09B-007CC23EB493?mod=hpsubnav","summaries":null,"selfCodes":[{"vrtysux":"DJII-SUBJECT|c41","seoname":"Management","symbol":"c41","value":"Management","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|ccat","seoname":"Corporate/Industrial 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Plus, perspective on New York housing with real estate mogul Mauricio Umansky and emerging market opportunities from J.P. Morgan’s Rashmi Gupta.","tags":[],"timestamp":1597676520000,"timestampCreatedAt":1597676520000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597660200000,"updatedAt":1597675320000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Nvidia Reports Earnings Wednesday. Here’s What To Expect.","originalReference":"ccd88442-df3b-11ea-baba-fcf0e44b8887","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB52781115525059914780204586571473436741698?$HeadlineQueryString$\" > Nvidia Reports Earnings Wednesday. Here’s What To Expect. </a></h2> <p>The videogame chipmaker is expected to report that sales from its semiconductors that power data centers outpaced videogame sales in the second quarter.</p>\n","snippetBody":"\n\n <p>Nvidia’s metamorphosis is nearly complete. Long thought of as a videogame chip maker, the Silicon Valley company has undergone a years-long evolution towards producing semiconductors that power data centers. When Nvidia reports earnings this Wednesday, it will show investors how far it has come.</p> <p>For the first time, analysts are projecting that the company’s quarterly data center sales will outpace videogame sales when it reports its fiscal second-quarter earnings after the closing bell Wednesday. Data-center business is expected...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":0,"videoCount":0,"imageCount":0,"wordCount":671,"externalLinkCount":0,"internalLinkCount":3},"authors":[{"authorName":"Max A. 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Here’s What To Expect.","symbol":"Nvidia Reports Earnings Wednesday. Here’s What To Expect.","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|Nvidia Reports Earnings Wednesday. Here’s What To Expect.","symbol":"Nvidia Reports Earnings Wednesday. Here’s What To Expect.","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Companies","vrtysux":"SUBJECT|BARCOMP","symbol":"BARCOMP","value":"Companies","type":"SUBJECT"},{"seoname":"Technology","vrtysux":"SUBJECT|BARINDTECH","symbol":"BARINDTECH","value":"Technology","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARCOMP","displayName":"Companies","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARINDTECH","displayName":"Technology","type":"externalsymbol"},{"name":"BARCOMP","displayName":"Companies","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p>Nvidia’s metamorphosis is nearly complete. Long thought of as a videogame chip maker, the Silicon Valley company has undergone a years-long evolution towards producing semiconductors that power data centers. When Nvidia reports earnings this Wednesday, it will show investors how far it has come.</p> <p>For the first time, analysts are projecting that the company’s quarterly data center sales will outpace videogame sales when it reports its fiscal second-quarter earnings after the closing bell Wednesday. Data-center business is expected to generate revenue of $1.62 billion and videogame's haul is predicted to be $1.43 billion.</p><!-- T1:_PW --> <p>This is no small feat for a company the CEO Jensen Huang founded 27 years ago. The transition is <a href=\"https://www.barrons.com/articles/how-nvidia-went-from-gaming-to-ai-to-riding-with-mercedes-51593212698\" target=\"_blank\" class=\"icon none\" >something Huang has discussed</a> with <em>Barron’s</em> before, as in many ways that’s where the business is already at. But the second quarter will be the first time its sales reflect it.</p> <p>Wall Street likes the name generally, but is nervous about the company’s lofty valuation. Of the 42 sell-side analysts that cover the Silicon Valley company, 34 rate the stock a Buy, six have a Hold and two rate it a Sell. The average target price is 415.97, which implies a downside of 10%. </p> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"NVDA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|NVDA\">Nvidia</phrase> (ticker: NVDA) trades at 50 times forward earnings, which is the third most expensive name in the <phrase background-info=\"BRIEFING-BOOK\" name=\"SOX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SOX\">PHLX Semiconductor</phrase> index beyond rival chip maker <phrase background-info=\"BRIEFING-BOOK\" name=\"AMD\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|AMD\">Advanced Micro Devices</phrase> (AMD) and <phrase background-info=\"BRIEFING-BOOK\" name=\"MPWR\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|MPWR\">Monolithic Power Systems</phrase> (MPWR). The median for the PHLX is 21 times forward earnings.</p> <p>Investors should be prepared for good news. Since 2010, Nvidia has negatively surprised the market only three times with its quarterly earnings, and there is little reason to doubt this quarter will be different. The consensus view for the results is adjusted earnings of $1.97 a share on sales of $3.66 billion. Wall Street expects GAAP earnings of $1.02 a share.</p> <p>Investors who already own the stock likely have some upside to look forward to, which CEO Huang and other executives may hint at on the call. The most significant reveal will be its launch of the next generation Ampere videogame chip, which expected to launch Sept. 1, 21 years after it released its first graphics processing unit. Nvidia’s new videogame chips have proven to be a fickle beast for investors, however. Its Turing launch resulted in videogame segment quarterly revenue falling 2%, while its Pascal launch in 2016 drove videogame revenue quarterly growth of 59%, according to Deutsche Bank analyst Ross Seymore.</p> <p>Ampere looks like it will be a success, in part because <phrase background-info=\"BRIEFING-BOOK\" name=\"6758.TO\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|6758.TO\">Sony</phrase> and <phrase background-info=\"BRIEFING-BOOK\" name=\"MSFT\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|MSFT\">Microsoft</phrase> are set to <a href=\"https://www.barrons.com/articles/nvidia-stock-may-get-a-lift-from-microsoft-and-sony-51597088312\" target=\"_blank\" class=\"icon none\" >launch new videogame consoles</a> in the fall. A new generation of consoles means better hardware, which will reset the bar that software developers use to create products, which in turn could spur gamers to upgrade their systems. According to BofA Securities analyst Vivek Arya, most personal computer gamers are using graphics hardware that’s about four years old—and time for an upgrade.</p> <p>Its data center business is also set to receive a lift. The chip maker has already released its Ampere chips for such purposes, and Seymore wrote in a note that it should serve to lift sales there, with the added caution that other semiconductor companies have reported that customers had stocked up on data center chips because of supply chain issues related to the Covid-19 pandemic. Nvidia didn’t give investors much to work with for its fiscal second-quarter data center guidance, but Raymond James analyst Chris Caso called executives’ commentary conservative and that <phrase background-info=\"BRIEFING-BOOK\" name=\"2330.TW\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|2330.TW\">Taiwan Semiconductor Manufacturing</phrase>, which fabricates Nvidia’s chips, has increased production capacity because it has stopped shipments to Huawei. </p> <p>“As TSM wafer availability improves, we expect that will provide Nvidia the opportunity to both catch up on unfulfilled Ampere demand as well as support the GeForce launch in [the second half of the calendar year],” Caso wrote.</p> <p>Nvidia shares have nearly doubled this year, as the <phrase background-info=\"BRIEFING-BOOK\" name=\"SOX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SOX\">PHLX Semiconductor index</phrase> advanced 20%. The <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> index has climbed 4.4% in 2020. Its stock is up 5.5% in early trading on Monday.</p> <p> <strong>Write to </strong>Max A. Cherney at <a href=\"mailto:max.cherney@barrons.com\" target=\"_blank\" class=\"icon \" >max.cherney@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"nvidia-reports-earnings-wednesday-heres-what-to-expect-51597660200","lastPubDate":1597675320000,"displayName":"Feature","date":1597675320000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB52781115525059914780204586571473436741698","type":"article_extended","articleId":"SB52781115525059914780204586571473436741698","articleSection":"Daily","articleType":"Feature","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"subject":"Companies"}},"image":null,"isFree":true,"isFreeForever":true,"wordCount":671,"slides":null,"summary":"The videogame chipmaker is expected to report that sales from its semiconductors that power data centers outpaced videogame sales in the second quarter.","tags":[],"timestamp":1597675320000,"timestampCreatedAt":1597660200000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597679100000,"updatedAt":1597687080000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Home Depot Reports Earnings Tomorrow. Here’s What to Expect.","originalReference":"513eabd8-e097-11ea-a17b-5fd32dae3db2","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB51053606091319544133904586574951363061720?$HeadlineQueryString$\" > Home Depot Reports Earnings Tomorrow. Here’s What to Expect. </a></h2> <p>Home improvement is suddenly everyone’s favorite hobby, and that has helped the big-box retailer.</p>\n","snippetBody":"\n\n <p>As the pandemic has kept everyone in their houses, many of us have become Tim “The Toolman” Taylor. Home Improvement is suddenly everyone’s favorite hobby, and that has helped Home Depot. Investors will see just how much when the retailer reports earnings Tuesday morning.</p> <p>Home Depot stock (ticker: HD) has climbed more than 30% in 2020, more than six times the S&P 500’s gains in the same period. </p> <p>It...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":1,"videoCount":0,"imageCount":1,"wordCount":378,"externalLinkCount":0,"internalLinkCount":12},"authors":[{"authorName":"Teresa Rivas","authorTopicId":"8553","authorBiography":"https://www.wsj.com/news/author/8553"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"slug":"HD0817","responsive":false,"height":"854","url":"https://asset.barrons.com/public/resources/images/ON-DX116_HD0817_OR_20200817093107.jpg","credit":"Justin Sullivan/Getty Images","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"People aren’t spending money on travel, entertainment and dining, and have redirected that money to making their homes more enjoyable.","credit":"Justin Sullivan/Getty Images"},"video":[],"propertyKeywords":["Home Depot","HD","Lowe's Cos.","LOW"],"mediaProperties":{},"bitlyurl":"","eTag":"1597687150911","lastPubDate":1597687080000,"arthurV2Image":{"imphotoid":"im-221604","softcrop":"Horizontal","location":"https://images.barrons.com/im-221604","size":"1.5"},"insets":[{"insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","imageInfo":{"slug":"HD0817","responsive":false,"height":"854","url":"https://asset.barrons.com/public/resources/images/ON-DX116_HD0817_OR_20200817093107.jpg","width":"1280","size":"OR"},"altImageInfo":[{"slug":"HD0817","responsive":false,"height":"854","url":"https://asset.barrons.com/public/resources/images/ON-DX116_HD0817_OR_20200817093107.jpg","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","layout":"wrap","arthurV2Image":{"imphotoid":"im-221604","softcrop":"Horizontal","location":"https://images.barrons.com/im-221604","size":"1.5"},"credit":"Justin Sullivan/Getty Images","caption":"People aren’t spending money on travel, entertainment and dining, and have redirected that money to making their homes more enjoyable.","index":"0","type":"InsetMediaIllustration"},{"insetProperties":{"layout":"wrap"},"newsletter":"Barrons Review and Preview","newsletterid":"451","index":"1","type":"InsetNewsletterSignup"}],"byline":"Teresa Rivas","url":"https://www.barrons.com/articles/home-depot-stock-earnings-tuesday-pandemic-expectations-51597679042","summaries":null,"selfCodes":[{"seoname":"Earnings Preview","vrtysux":"BARRONS_DISPLAY_BRAND|BAREARNPRE","symbol":"BAREARNPRE","value":"Earnings Preview","type":"BARRONS_DISPLAY_BRAND"},{"seoname":"Retail","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARRETAIL","symbol":"BARRETAIL","value":"Retail","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Retail/Wholesale","vrtysux":"DJII-INDUSTRY|i64","symbol":"i64","value":"Retail/Wholesale","type":"DJII-INDUSTRY"},{"seoname":"Household Goods/Hardware Stores","vrtysux":"DJII-INDUSTRY|i648","symbol":"i648","value":"Household Goods/Hardware Stores","type":"DJII-INDUSTRY"},{"seoname":"Decorating/DIY/Hardware Stores","vrtysux":"DJII-INDUSTRY|i6483","symbol":"i6483","value":"Decorating/DIY/Hardware Stores","type":"DJII-INDUSTRY"},{"seoname":"Specialty Retailing","vrtysux":"DJII-INDUSTRY|i654","symbol":"i654","value":"Specialty Retailing","type":"DJII-INDUSTRY"},{"seoname":"Retail","vrtysux":"DJII-INDUSTRY|iretail","symbol":"iretail","value":"Retail","type":"DJII-INDUSTRY"},{"seoname":"Financial Performance","vrtysux":"DJII-SUBJECT|c15","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"seoname":"Earnings","vrtysux":"DJII-SUBJECT|c151","symbol":"c151","value":"Earnings","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"Equity Markets","vrtysux":"DJII-SUBJECT|m11","symbol":"m11","value":"Equity Markets","type":"DJII-SUBJECT"},{"seoname":"Commodity/Financial Market News","vrtysux":"DJII-SUBJECT|mcat","symbol":"mcat","value":"Commodity/Financial Market News","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|Home Depot Reports Earnings Tomorrow. 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Home Improvement is suddenly everyone’s favorite hobby, and that has helped <phrase background-info=\"BRIEFING-BOOK\" name=\"HD\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|HD\">Home Depot</phrase>. Investors will see just how much when the retailer reports earnings Tuesday morning.</p> <p>Home Depot stock (ticker: HD) has climbed more than 30% in 2020, <a href=\"https://www.barrons.com/articles/home-depot-stock-downgrade-same-store-sales-covid-19-home-improvement-projects-51587587152\" target=\"_blank\" class=\"icon none\" >more than six times</a> the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase>’s gains in the same period. </p> <!-- T1:_PW --><p>It isn’t hard to see why. Those who have been lucky enough to stay employed during the pandemic aren’t spending money on travel, entertainment and dining, and thus <a href=\"https://www.barrons.com/articles/williams-sonoma-stock-is-a-buy-because-rich-people-will-keep-on-shopping-51590502491\" target=\"_blank\" class=\"icon none\" >have redirected those funds</a> to making their homes more enjoyable as <a href=\"https://www.barrons.com/articles/3-reasons-lowes-stock-is-a-buy-according-to-an-analyst-51591117786\" target=\"_blank\" class=\"icon none\" >they hunker down to spend more time there</a>. </p> <p>In addition, <a href=\"https://www.barrons.com/articles/retail-giants-will-keep-gaining-ground-in-a-post-coronavirus-world-51590193284\" target=\"_blank\" class=\"icon none\" >Home Depot’s status as an essential retailer</a> has meant not only that its stores can stay open, it can disproportionally benefit as <a href=\"https://www.barrons.com/articles/back-to-school-is-different-this-year-because-of-covid-these-stock-could-benefit-51597663800\" target=\"_blank\" class=\"icon none\" >consumers consolidate their trips</a> and <a href=\"https://www.barrons.com/articles/mcdonalds-stock-slips-as-pandemic-hits-earnings-on-2-fronts-51595941587\" target=\"_blank\" class=\"icon none\" >spend more when they do go out</a>. That has led it to be one of the <a href=\"https://www.barrons.com/articles/retail-giants-will-keep-gaining-ground-in-a-post-coronavirus-world-51590193284\" target=\"_blank\" class=\"icon none\" >big-box winners of the pandemic</a>. </p> <p>Many analysts are <a href=\"https://www.barrons.com/articles/home-depot-and-lowes-stocks-poised-for-further-gains-analyst-says-51592410144\" target=\"_blank\" class=\"icon none\" >enthusiastic about the stock’s prospects</a>, even without the <a href=\"https://www.barrons.com/articles/home-depot-and-lowes-dont-need-a-pandemic-to-keep-rallying-51592924071\" target=\"_blank\" class=\"icon none\" >catalyst of the pandemic to support sales</a>. </p> <p>That said, investors should be <a href=\"https://www.barrons.com/articles/home-depot-walmart-stock-high-expectations-earnings-covid-19-sales-retail-51589390296\" target=\"_blank\" class=\"icon none\" >wary of high expectations</a>. Home Depot’s year-to-date rally shows that the coronavirus-related boost has hardly gone unnoticed by the market.</p> <!-- T1:M --> <p>Analysts are looking for the company to earn $3.68 a share on revenue of $34.5 billion. That compares with EPS of $2.08 and revenue of $28.3 billion in the previous quarter. Last quarter was a bottom-line miss for Home Depot, though that was <a href=\"https://www.barrons.com/articles/home-depot-stock-first-quarter-earnings-covid-19-costs-sales-51589894935\" target=\"_blank\" class=\"icon none\" >because of costs</a>. Other than that, Home Depot’s per-share profit has beaten analysts’ estimates every quarter for the past five years. </p> <p>Just over 60% of the 31 analysts tracked by FactSet rate Home Depot at Buy or the equivalent, while 35% have it at Hold. There is a single bearish call on the Street. The average analyst price target for Home Depot is $284.19, below where the stock is trading. </p> <p>Home Depot shares were up 2.5% to $287.69 near midday Monday. The <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase> was down 0.2%, while the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> had gained 0.3%. Competitor<phrase background-info=\"BRIEFING-BOOK\" name=\"LOW\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|LOW\"> Lowe’s</phrase> (LOW), which reports on Wednesday, was up 2.2% to $157.71.</p> <p>The company scheduled a conference call for 9 a.m. Eastern time Tuesday. </p> <p> <strong>Write to </strong>Teresa Rivas at <a href=\"mailto:teresa.rivas@barrons.com\" target=\"_blank\" class=\"icon \" >teresa.rivas@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"home-depot-stock-earnings-tuesday-pandemic-expectations-51597679042","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX116_HD0817_OR_20200817093107.jpg","credit":"Justin Sullivan/Getty Images"},"displayName":"Sectorfocus 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improvement is suddenly everyone’s favorite hobby, and that has helped the big-box retailer.","tags":[],"timestamp":1597687080000,"timestampCreatedAt":1597679100000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597434000000,"updatedAt":1597667700000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"Merck, Big Pharma’s Quiet Giant, Looks Like a Buy","originalReference":"94b0f150-de62-11ea-baba-fcf0e44b8887","section":"Barrons Magazine","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB52781115525059914780204586567203327595040?$HeadlineQueryString$\" > Merck, Big Pharma’s Quiet Giant, Looks Like a Buy </a></h2> <p>The drugmaker has a blockbuster cancer drug, a 3% yield, and two Covid-19 vaccines in the works. </p>\n","snippetBody":"\n\n <p> Merck just doesn’t get enough credit. </p> <p>It has the leading drug that harnesses the immune system to fight cancer and one of the top vaccine franchises. </p> <p>Yet Wall Street has focused instead on the 2028 patent expiration on the cancer blockbuster Keytruda, and some investors haven’t been wowed by its pipeline of new drugs. Shares of Merck (ticker:...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":3,"videoCount":0,"imageCount":1,"wordCount":834,"externalLinkCount":0,"internalLinkCount":6},"authors":[{"authorName":"Andrew Bary","authorTopicId":"6151","authorBiography":"https://www.wsj.com/news/author/6151"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"printheadline":{"Barrons":{"printdeck":"The drugmaker has a blockbuster cancer drug, a 3% yield, and two Covid-19 vaccines in the works.","printpage":"14","printsection":"Wrap","publicationdate":"20200817"}},"bitlyurl":"","imagesbucket":{"OR":{"slug":"merck0817","responsive":false,"height":"854","credit":"Mike Cohen for The New York Times / Redux","url":"https://asset.barrons.com/public/resources/images/ON-DX030_merck0_OR_20200814121701.jpg","width":"1279","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"Merck CEO Kenneth Frazier","credit":"Mike Cohen for The New York Times / Redux"},"video":[],"propertyKeywords":["Merck &","MRK","Gilead Sciences","GILD","Moderna","MRNA"],"mediaProperties":{},"contentServiceVersion":"3.45.0","seoId":"merck-big-pharmas-quiet-giant-looks-like-a-buy-51597434050","html":"\n\n<!-- T1:M --> <p> <phrase background-info=\"BRIEFING-BOOK\" name=\"MRK\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|MRK\">Merck</phrase> just doesn’t get enough credit. </p> <p>It has the leading drug that harnesses the immune system to fight cancer and one of the top vaccine franchises. </p> <p>Yet Wall Street has focused instead on the 2028 patent expiration on the cancer blockbuster Keytruda, and some investors haven’t been wowed by <a href=\"https://www.barrons.com/articles/buy-merck-stock-for-its-unappreciated-pipeline-says-goldman-51596466053\" target=\"_blank\" class=\"icon none\" >its pipeline of new drugs</a>. Shares of Merck (ticker: MRK), now around $83, are down 8% this year. </p><!-- T1:_PW --> <p>For investors looking for a strong pharmaceutical play at a reasonable price, Merck should get attention. </p> <p>“Merck speaks softly and carries a big stick,” says David Risinger, a drug analyst at Morgan Stanley. “It’s not promotional, but it has extraordinary science and compelling assets.”</p> <!-- T1:M --> <p>The drugmaker trades for 15 times projected 2020 earnings—in the middle of the pack of its peers and cheaper than the overall stock market—and yields a healthy 3%. When it reported second-quarter results in July, Merck raised its 2020 guidance for adjusted earnings by about 8%, to a range of $5.63 to $5.78 a share. </p> <p>In coming years, earnings growth at Merck’s core business could average more than 10%, according to Terence Flynn at Goldman Sachs. That would reflect the impact of next year’s planned spinoff of its women’s health unit and some off-patent drugs into a new company called Organon. Flynn upgraded Merck to Buy from Neutral this month, with a price target of $105. </p> <p>“Over the next five years, we expect strong revenue growth based on demand for our innovative medicines and vaccines, mainly from those that are already approved,” Merck CFO Robert Davis tells <em>Barron’s</em>. </p> <p>Davis is upbeat about the company’s pipeline, including several vaccines like one for pneumonia and a treatment for HIV. </p> <p>Excitement over potential Covid-19 vaccines has lifted the shares of <phrase background-info=\"BRIEFING-BOOK\" name=\"PFE\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|PFE\">Pfizer</phrase> (PFE), <phrase background-info=\"BRIEFING-BOOK\" name=\"MRNA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|MRNA\">Moderna</phrase> (MRNA), and others, but has passed Merck by. </p> <p>Unlike Pfizer and Moderna, which are using novel vaccine technology that will require two doses, Merck is using established technology to develop two Covid vaccines that are designed to work with a single dose. These could give Merck an edge. And one could be available in an oral form, making it easier to administer. </p> <!-- T1:M --> <p>“We’ve got to immunize seven billion people on the planet,” Merck CEO Kenneth Frazier told <em>Barron’s</em> when the vaccine-development program was announced in May. “If you have a dose that gives you a high amount of neutralizing antibodies with a single dose, that’s a much better, more simple to deploy vaccine than one that requires multiple doses.” One of Merck’s vaccines will start clinical trials in the current quarter; the other, in the next few months—but both behind other vaccine candidates. </p> <p>Still, Morgan Stanley’s Risinger is optimistic: “I expect Merck to have positive Covid-related news in the coming months, and that may drive the stock higher.” He has an Overweight rating and price target of $89 on the stock. </p> <p>Some predict that Covid-19 vaccines overall could generate $50 billion of revenue by 2030.</p> <p>Merck is also developing an anti-viral for Covid patients that will compete against <phrase background-info=\"BRIEFING-BOOK\" name=\"GILD\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|GILD\">Gilead Sciences</phrase>’ (GILD) remdesivir, with the benefit of oral delivery versus a hospital infusion.</p> <p>Merck’s drug, designed to reduce the severity of the disease by disrupting the virus’s ability to replicate, could be given after an initial Covid-19 diagnosis. It is due to start a pivotal Phase 3 trial in September, and there could be a readout on Phase 2 trials within weeks. Merck said last month that it can manufacture “millions of doses” by year-end. Risinger has called this “an underappreciated Covid treatment,” with blockbuster potential if successful. </p> <!-- T1:M --> <p> <a href=\"https://www.barrons.com/articles/merck-stock-earnings-beat-keytruda-sales-jump-51596203089\" target=\"_blank\" class=\"icon none\" >Merck’s current blockbuster, Keytruda</a>, has transformed care for many cancer patients, including those with lung cancer, which has a low survival rate. Keytruda could generate $14.5 billion in sales this year, up 30% from 2019, and $22 billion by 2025. </p> <p>But investors worry when a single drug becomes too large a percentage of revenue, and Keytruda could account for about 30% of Merck’s projected sales this year. </p> <p>Still, says Mara Goldstein of Mizuho, Merck has “a lot of time to figure out” how to deal with Keytruda’s patent expiration in 2028. </p> <p>Merck’s vaccine business is led by Gardasil, which protects against cervical and other cancers related to the human papillomavirus. Gardasil may generate nearly $3.9 billion in sales this year and $5.5 billion in 2023. </p> <p>Risinger sees a huge market potential as less than 5% of the target population worldwide—mostly teenagers and young adults—has received it. </p> <p>Merck’s vaccine business, which might generate $9 billion in sales in 2021, could be worth $100 billion. Vaccines are a durable business, largely immune from generic competition, and garner some of the highest valuations in the drug industry. </p> <p>In a technology-obsessed stock market, Merck’s strengths—Keytruda, vaccines, a safe 3% yield, and <a href=\"https://www.barrons.com/articles/after-building-a-cancer-drug-franchise-mercks-ceo-is-now-tackling-covid-19-51593220956\" target=\"_blank\" class=\"icon none\" >potential Covid-19 plays</a>—are woefully underappreciated.</p> <p>Merck stock is up 1% in premarket trading Monday, while the <phrase background-info=\"BRIEFING-BOOK\" name=\"XLV\" significance=\"PROMINENT\" type=\"EXCHANGETRADEDFUND\" vrtysux=\"EXCHANGETRADEDFUND|XLV\">Health Care Select Sector SPDR ETF</phrase> (XLV) is up 0.2%, the <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase> are little changed, and <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> futures have ticked up 0.2%.</p> <p> <strong>Write to </strong>Andrew Bary at <a href=\"mailto:andrew.bary@barrons.com\" target=\"_blank\" class=\"icon \" >andrew.bary@barrons.com</a></p>\n\n","lastPubDate":1597667700000,"eTag":"1597667777563","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX030_merck0_OR_20200814121701.jpg","credit":"Mike Cohen for The New York Times / Redux"},"selfCodes":[{"seoname":"Barron's Stock Pick","vrtysux":"BARRONS_DISPLAY_BRAND|BARPICK","symbol":"BARPICK","value":"Barron's Stock Pick","type":"BARRONS_DISPLAY_BRAND"},{"seoname":"Biotech and Pharma","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARBIO","symbol":"BARBIO","value":"Biotech and Pharma","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Pharmaceuticals","vrtysux":"DJII-INDUSTRY|i257","symbol":"i257","value":"Pharmaceuticals","type":"DJII-INDUSTRY"},{"seoname":"Vaccines","vrtysux":"DJII-INDUSTRY|i2572","symbol":"i2572","value":"Vaccines","type":"DJII-INDUSTRY"},{"seoname":"Textiles","vrtysux":"DJII-INDUSTRY|i43","symbol":"i43","value":"Textiles","type":"DJII-INDUSTRY"},{"seoname":"Health Care/Life Sciences","vrtysux":"DJII-INDUSTRY|i951","symbol":"i951","value":"Health Care/Life Sciences","type":"DJII-INDUSTRY"},{"seoname":"Clothing/Textiles","vrtysux":"DJII-INDUSTRY|iclt","symbol":"iclt","value":"Clothing/Textiles","type":"DJII-INDUSTRY"},{"seoname":"Consumer Goods","vrtysux":"DJII-INDUSTRY|icnp","symbol":"icnp","value":"Consumer Goods","type":"DJII-INDUSTRY"},{"seoname":"Specialized Drugs/Medications","vrtysux":"DJII-INDUSTRY|idrugty","symbol":"idrugty","value":"Specialized Drugs/Medications","type":"DJII-INDUSTRY"},{"seoname":"Financial Performance","vrtysux":"DJII-SUBJECT|c15","symbol":"c15","value":"Financial Performance","type":"DJII-SUBJECT"},{"seoname":"Earnings","vrtysux":"DJII-SUBJECT|C151","symbol":"C151","value":"Earnings","type":"DJII-SUBJECT"},{"seoname":"Earnings Projections","vrtysux":"DJII-SUBJECT|C152","symbol":"C152","value":"Earnings Projections","type":"DJII-SUBJECT"},{"seoname":"Analysts' Comments/Recommendations","vrtysux":"DJII-SUBJECT|C1521","symbol":"C1521","value":"Analysts' Comments/Recommendations","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"Cancer","vrtysux":"DJII-SUBJECT|gcancr","symbol":"gcancr","value":"Cancer","type":"DJII-SUBJECT"},{"seoname":"Political/General News","vrtysux":"DJII-SUBJECT|gcat","symbol":"gcat","value":"Political/General News","type":"DJII-SUBJECT"},{"seoname":"Respiratory Tract Diseases","vrtysux":"DJII-SUBJECT|gcold","symbol":"gcold","value":"Respiratory Tract Diseases","type":"DJII-SUBJECT"},{"seoname":"Health","vrtysux":"DJII-SUBJECT|ghea","symbol":"ghea","value":"Health","type":"DJII-SUBJECT"},{"seoname":"Immunizations","vrtysux":"DJII-SUBJECT|gimmu","symbol":"gimmu","value":"Immunizations","type":"DJII-SUBJECT"},{"seoname":"Medical Conditions","vrtysux":"DJII-SUBJECT|gmed","symbol":"gmed","value":"Medical Conditions","type":"DJII-SUBJECT"},{"seoname":"Novel Coronaviruses","vrtysux":"DJII-SUBJECT|GSARS","symbol":"GSARS","value":"Novel Coronaviruses","type":"DJII-SUBJECT"},{"seoname":"Infectious Diseases","vrtysux":"DJII-SUBJECT|gspox","symbol":"gspox","value":"Infectious Diseases","type":"DJII-SUBJECT"},{"seoname":"Medical Treatments/Procedures","vrtysux":"DJII-SUBJECT|gtrea","symbol":"gtrea","value":"Medical Treatments/Procedures","type":"DJII-SUBJECT"},{"seoname":"Page One Stories","vrtysux":"DJII-SUBJECT|npag","symbol":"npag","value":"Page One Stories","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|Merck, Big Pharma’s Quiet Giant, Looks Like a Buy","symbol":"Merck, Big Pharma’s Quiet Giant, Looks Like a Buy","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|Merck Is Barron’s Stock Pick This Week. 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drugmaker has a blockbuster cancer drug, a 3% yield, and two Covid-19 vaccines in the works.","tags":[],"timestamp":1597667700000,"timestampCreatedAt":1597434000000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597453140000,"updatedAt":1597519920000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"The Bear Market That Really Wasn’t","originalReference":"156623a8-de89-11ea-baba-fcf0e44b8887","section":"Barrons Magazine","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB52781115525059914780204586569092045511466?$HeadlineQueryString$\" > The Bear Market That Really Wasn’t </a></h2> <p>The S&P 500 has nearly erased its coronavirus losses. Is a bubble now inflating?</p>\n","snippetBody":"\n\n <p>It’s as if the bear market never happened. And maybe it didn’t.</p> <p>The stock market had another good week, with the S&P 500 index finishing up 0.6% to 3372.85; the Dow Jones Industrial Average rising 497.54 points, or 1.8%, to 27,931.02; and the Nasdaq Composite gaining 0.1%. The S&P 500’s gain was good enough for the index to finish the week within 0.4 percentage point of its Feb. 19 record high. </p> <p>In...","isSlideshow":false,"showDefaultChart":true,"webTemplate":"","beta":false,"seoCounts":{"embedCount":7,"videoCount":0,"imageCount":1,"wordCount":746,"externalLinkCount":0,"internalLinkCount":15},"authors":[{"authorName":"Ben Levisohn","authorTopicId":"8022","authorBiography":"https://www.wsj.com/news/author/8022"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"printheadline":{"Barrons":{"printpage":"M1","printsection":"Market_Week","publicationdate":"20200817"}},"imagesbucket":{"OR":{"responsive":false,"slug":"TraderTOP0817","url":"https://asset.barrons.com/public/resources/images/ON-DX042_Trader_OR_20200814134449.jpg","credit":"Michael M. Santiago/Getty Images","height":"853","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Michael M. Santiago/Getty Images"},"video":[],"propertyKeywords":[],"mediaProperties":{},"bitlyurl":"","eTag":"1597519964985","arthurV2Image":{"imphotoid":"im-221107","softcrop":"Horizontal","location":"https://images.barrons.com/im-221107","size":"1.5"},"insets":[{"layout":"wrap","insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","imageInfo":{"responsive":false,"slug":"TraderTOP0817","url":"https://asset.barrons.com/public/resources/images/ON-DX042_Trader_OR_20200814134449.jpg","height":"853","width":"1280","size":"OR"},"altImageInfo":[{"responsive":false,"slug":"TraderTOP0817","url":"https://asset.barrons.com/public/resources/images/ON-DX042_Trader_OR_20200814134449.jpg","height":"853","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","arthurV2Image":{"imphotoid":"im-221107","softcrop":"Horizontal","location":"https://images.barrons.com/im-221107","size":"1.5"},"credit":"Michael M. Santiago/Getty Images","caption":"","index":"0","type":"InsetMediaIllustration"},{"layout":"margin","insetProperties":{"layout":"margin"},"id":"inset-1","url":"https://asset.barrons.com/dynamic-insets/charts/cdc_6aab0f32ed1ff1a44553c1c1.json","index":"1","type":"InsetDynamic"},{"layout":"margin","insetProperties":{"layout":"margin"},"id":"inset-2","url":"https://asset.barrons.com/dynamic-insets/charts/cdc_2c30bcff35f54ee80e97044d.json","index":"2","type":"InsetDynamic"},{"layout":"margin","insetProperties":{"layout":"margin"},"id":"inset-3","url":"https://asset.barrons.com/dynamic-insets/charts/cdc_b44fa9cfb66af5b042b7f3bc.json","index":"3","type":"InsetDynamic"},{"layout":"margin","insetProperties":{"layout":"margin"},"id":"inset-4","url":"https://asset.barrons.com/dynamic-insets/charts/cdc_c224f349a759c037cd0788dc.json","index":"4","type":"InsetDynamic"},{"html":"\n\n<h4>Related Data</h4> <p> <strong>Market Data Center: </strong> <a href=\"https://www.barrons.com/market-data/bonds\" target=\"_blank\" class=\"icon none\" >Bonds & Rates</a> </p>","index":"5","style":"3-UNIT-PLAIN","type":"InsetHtml"},{"newsletter":"Barrons Preview","newsletterid":"149","insetProperties":{"layout":"wrap"},"index":"6","type":"InsetNewsletterSignup"},{"insetProperties":{"layout":"wrap"},"html":"\n\n<h4>Read More Trader</h4> <p></p> <ul class=\"articleList\"> <li> <a href=\"https://www.barrons.com/articles/SB52781115525059914780204586569731361475802\" target=\"_blank\" class=\"icon none\" >Target and Walmart Both Report Earnings This Coming Week. Only One Is Likely to Bust Out.</a> </li> </ul>","index":"7","layout":"wrap","id":"inset-7","type":"InsetRichText"}],"byline":"Ben Levisohn","url":"https://www.barrons.com/articles/s-p-500-closes-week-near-record-high-is-this-a-stock-market-bubble-51597453146","summaries":null,"selfCodes":[{"vrtysux":"BARRONS_DISPLAY_BRAND|BARTRAD","seoname":"The Trader","symbol":"BARTRAD","value":"The Trader","type":"BARRONS_DISPLAY_BRAND"},{"vrtysux":"BARRONS_DISPLAY_SUBJECT|BARMKTS","seoname":"Markets","symbol":"BARMKTS","value":"Markets","type":"BARRONS_DISPLAY_SUBJECT"},{"vrtysux":"DJII-INDUSTRY|IECOM","seoname":"E-commerce","symbol":"IECOM","value":"E-commerce","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|iint","seoname":"Online Service Providers","symbol":"iint","value":"Online Service Providers","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-INDUSTRY|itech","seoname":"Technology","symbol":"itech","value":"Technology","type":"DJII-INDUSTRY"},{"vrtysux":"DJII-SUBJECT|C25","seoname":"Information Technology","symbol":"C25","value":"Information Technology","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|ccat","seoname":"Corporate/Industrial News","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|e11","seoname":"Economic Performance/Indicators","symbol":"e11","value":"Economic Performance/Indicators","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|E1107","seoname":"Retail Sales Figures","symbol":"E1107","value":"Retail Sales Figures","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|ecat","seoname":"Economic News","symbol":"ecat","value":"Economic News","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|m11","seoname":"Equity Markets","symbol":"m11","value":"Equity Markets","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|mcat","seoname":"Commodity/Financial Market News","symbol":"mcat","value":"Commodity/Financial Market News","type":"DJII-SUBJECT"},{"vrtysux":"DJII-SUBJECT|nrmf","seoname":"Routine Market/Financial News","symbol":"nrmf","value":"Routine Market/Financial News","type":"DJII-SUBJECT"},{"vrtysux":"FIRST_PUBLISH_HEADLINE|The Bear Market Is Nearing an End. The Bubble Might Just Be Getting Started.","seoname":"","symbol":"The Bear Market Is Nearing an End. The Bubble Might Just Be Getting Started.","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"vrtysux":"HEADLINE|The Bear Market Is Nearing an End. The Bubble Might Just Be Getting Started.","seoname":"","symbol":"The Bear Market Is Nearing an End. The Bubble Might Just Be Getting Started.","value":"","type":"HEADLINE"},{"vrtysux":"RELAY|SYND","seoname":"","symbol":"SYND","value":"","type":"RELAY"},{"vrtysux":"STATISTIC|CODES_REVIEWED","seoname":"CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"vrtysux":"SUBJECT|BARCO","seoname":"Column","symbol":"BARCO","value":"Column","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARCORONA","seoname":"Coronavirus","symbol":"BARCORONA","value":"Coronavirus","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARECPOL","seoname":"Economy & Policy","symbol":"BARECPOL","value":"Economy & Policy","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARMAG","seoname":"Magazine","symbol":"BARMAG","value":"Magazine","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARMKTS","seoname":"Markets","symbol":"BARMKTS","value":"Markets","type":"SUBJECT"},{"vrtysux":"SUBJECT|BARTRAD","seoname":"The Trader","symbol":"BARTRAD","value":"The Trader","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_BRAND":[{"name":"BARTRAD","displayName":"The Trader","type":"BARRONS_DISPLAY_BRAND"}],"BARRONS_DISPLAY_SUBJECT":[{"name":"BARMKTS","displayName":"Markets","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARMKTS","displayName":"Markets","type":"externalsymbol"},{"name":"BARECPOL","displayName":"Economy & Policy","type":"externalsymbol"},{"name":"BARCORONA","displayName":"Coronavirus","type":"externalsymbol"},{"name":"BARTRAD","displayName":"The Trader","type":"externalsymbol"}],"internalsymbol":[{"name":"BARCO","displayName":"Column","type":"internalsymbol"},{"name":"BARMAG","displayName":"Magazine","type":"internalsymbol"}]},"html":"\n\n<!-- T1:M --> <p>It’s as if <a href=\"https://www.barrons.com/articles/prepare-for-the-end-of-the-bull-market-51574439667\" target=\"_blank\" class=\"icon none\" >the bear market</a> never happened. And maybe it didn’t.</p> <p>The stock market had another good week, with the <phrase background-info=\"BRIEFING-BOOK\" name=\"SPX\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|SPX\">S&P 500</phrase> index finishing up 0.6% to 3372.85; the <phrase background-info=\"BRIEFING-BOOK\" name=\"DJIA\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|DJIA\">Dow Jones Industrial Average</phrase> rising 497.54 points, or 1.8%, to 27,931.02; and the <phrase background-info=\"BRIEFING-BOOK\" name=\"COMP\" significance=\"PROMINENT\" type=\"INDEX\" vrtysux=\"INDEX|COMP\">Nasdaq Composite</phrase> gaining 0.1%. The S&P 500’s gain was good enough for the index <a href=\"https://www.barrons.com/articles/global-stocks-fall-as-chinese-data-hits-recovery-hopes-51597401294\" target=\"_blank\" class=\"icon none\" >to finish the week</a> within 0.4 percentage point of its Feb. 19 record high. </p> <!-- T1:_PW --><p>In other words, if you went to sleep on Feb. 19 and woke up on Aug. 14, you would think that nothing had happened.</p> <!-- T1:M --> <p>Assuming that the S&P 500 does trade at a new high, it would be the <a href=\"https://www.barrons.com/articles/s-p-500-lines-up-a-record-close-its-a-superfast-rebound-51597260757\" target=\"_blank\" class=\"icon none\" >fastest recovery from a bear market on record</a>. And it wouldn’t even matter if the S&P 500 took its time—the previous record was 310 trading days from the bear-market low on Feb. 9, 1966, to May 4, 1967.</p> <!-- T1:M --> <p>But what if the market didn’t experience a bear market? By the traditional definition, it obviously was: The S&P 500 dropped 34% from Feb. 19 through March 23, far more than the 20% needed to meet the requirement. But there are other ways to think about whether a drop is really a bear market. For instance, a typical peak-to-peak recovery takes 1,542 trading days, on average, according to Dow Jones Market Data, so the speed of the rebound alone would suggest that <a href=\"https://www.barrons.com/articles/3-things-about-this-market-that-make-no-sense-and-why-they-do-51584613800\" target=\"_blank\" class=\"icon none\" >something else is going on</a>. </p> <!-- T1:M --> <p>A bear market should also mark a clean break with what came before. That was the case during the 2007-09 financial crisis, as banks went from being the best-performing sector to laggard, and during the dot-com bust, when tech stocks suffered massive losses but value investors made off like bandits.</p> <!-- T1:M --> <p>Instead, Michael Shaoul, CEO of Marketfield Asset Management, compares the drop to two other big declines, one officially a bear market, the other not. </p> <!-- T1:M --> <p>The first occurred in 1987, when the S&P 500 dropped 34% from its all-time high—including <a href=\"https://www.barrons.com/articles/black-monday-explaining-the-crash-30-years-later-1508359834\" target=\"_blank\" class=\"icon none\" >the 20% Black Monday tumble</a>, still the largest single-day decline on record. The second occurred in 1998, when the emerging market debt crisis and <a href=\"https://www.barrons.com/articles/SB906765329866560500\" target=\"_blank\" class=\"icon none\" >the blowup of hedge fund Long-Term Capital Management</a> caused the S&P 500 to drop 19.3%. In both cases, the rebounds, spurred by Fed largess, were swift and ended up creating bubbles—in Japan in the former, tech in the latter. And in Shaoul’s opinion, another bubble is being inflated.</p> <!-- T1:M --> <p>“Under current circumstances, the odds of central banks being ‘third time lucky’ appear to be remote, and we increasingly believe that we are heading for some form of ‘bubble trouble’ along the road,” Shaoul writes.</p> <p>You don’t need to take his word for it. Consider Bank of America analyst John Murphy’s Friday morning upgrade of <phrase background-info=\"BRIEFING-BOOK\" name=\"TSLA\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|TSLA\">Tesla</phrase> (ticker: TSLA)—which has gained 295% to $1,650.71 in 2020—from Sell to Hold. It wasn’t that <a href=\"https://www.barrons.com/articles/two-bears-on-tesla-stock-turn-more-positive-51597413879\" target=\"_blank\" class=\"icon none\" >Murphy suddenly had a change of heart</a> on Elon Musk’s company. Instead, he cited Tesla’s unfettered access to cheap capital gained by its stock’s never-ending rise. </p> <p>“It is important to recognize that the higher the upward spiral of [Tesla’s] stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price,” Murphy writes.</p> <p>Think about that for a minute. Murphy is describing a positive feedback loop, one that is almost guaranteed to lead to a price well above what fundamentals suggest it should. And that same dynamic is at play in many parts of the market, says Jason Brady, CEO of asset manager Thornburg. The market is being led by companies that have gotten stronger because of the coronavirus, can offer growth at a time when the <a href=\"https://www.barrons.com/articles/a-theory-of-everything-to-explain-the-markets-great-week-51596848356\" target=\"_blank\" class=\"icon none\" >Federal Reserve has pushed interest rates well below the level of inflation</a>. It’s a good story, he says, but may be starting to get pushed too far. </p> <p>“That’s where things are getting a little bit silly,” Brady says. </p> <!-- T1:M --> <p> So if the market is in a bubble, what might cause it to pop? BTIG strategist Julian Emanuel offers a few potential catalysts. A vaccine could cause investors to buy economically sensitive stocks over those that benefit from everyone working from home. Interest rates could rise, causing financial stocks to rise—and bloated multiples to contract. Continued tensions with China could also cause problems for highflying tech stocks. </p> <p>“Or will there be no catalyst, as bubbles tend to be identified in hindsight, as it was in Y2K,” Emanuel writes.</p> <p>And maybe then, we’ll have a real, genuine, honest-to-God bear market.</p> <p> <strong>Write to </strong>Ben Levisohn at <a href=\"mailto:Ben.Levisohn@barrons.com\" target=\"_blank\" class=\"icon \" >Ben.Levisohn@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"s-p-500-closes-week-near-record-high-is-this-a-stock-market-bubble-51597453146","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX042_Trader_OR_20200814134449.jpg","credit":"Michael M. 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Is a bubble now inflating?","tags":[],"timestamp":1597519920000,"timestampCreatedAt":1597453140000,"enableCoralComments":false},{"dateType":"auto","createdAt":1597572900000,"updatedAt":1597572900000,"archiveStoring":"","deck":"","privilages":"CODES_REVIEWED","headline":"The SPAC Market Is Deflating. Here’s Why.","originalReference":"dee53a16-de4d-11ea-baba-fcf0e44b8887","section":"Daily","articleBodyFlashline":"","snippet":"\n\n<h2 class=\"HeadlineClass\"><a href=\"/articles/SB52781115525059914780204586569093739564566?$HeadlineQueryString$\" > The SPAC Market Is Deflating. Here’s Why. </a></h2> <p>A hot market for special-purpose acquisition companies, or SPACs, generated an abundance of new issuance. But there are only so many investors willing and able to buy these private-equity-like vehicles, and it’s starting to look like there’s more supply than demand.</p>\n","snippetBody":"\n\n <p>The hottest market in history for special-purpose acquisition companies, or SPACs, appears to be taking a breather. Practically every SPAC on my watchlist is currently trading lower than it was three or four weeks ago. That includes both searching SPACs that have yet to agree a deal with a target company, and those that have already announced mergers but haven’t closed them yet.</p> <p>SPACs are having a big year in 2020, with 70 completed initial public offerings and another 24 filed to IPO in the near future. Gross proceeds of...","isSlideshow":false,"webTemplate":"","bitlyurl":"","showDefaultChart":true,"beta":false,"seoCounts":{"embedCount":1,"videoCount":0,"imageCount":1,"wordCount":973,"externalLinkCount":0,"internalLinkCount":11},"authors":[{"authorName":"Nicholas Jasinski","authorTopicId":"8575","authorBiography":"https://www.wsj.com/news/author/8575"}],"categories":[{"name":"Uncategorized","slug":"uncategorized"}],"imagesbucket":{"OR":{"slug":"SPACS0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX020_SPACS0_OR_20200814104009.jpg","credit":"Bryan Bedder/Getty Images for The New York Times","height":"853","width":"1280","size":"OR"}},"firstMedia":{"src":"","type":"IMAGE","caption":"","credit":"Bryan Bedder/Getty Images for The New York Times"},"video":[],"propertyKeywords":["DraftKings","DKNG","Forum Merger II","FMCI","Tortoise Acquisition","SHLL","Graf Industrial","GRAF","Twitter","TWTR","Nikola","NKLA","Virgin Galactic Holdings","SPCE","Opes Acquisition","OPES","Social Capital Hedosophia Holdings II Cl A","IPOB","Greenrose Acquisition","GNRS","Spartan Energy Acquisition","SPAQ","Pershing Square Tontine Holdings","PSTH.U"],"mediaProperties":{},"eTag":"1597572947987","insets":[{"insetProperties":{"layout":"wrap"},"responsive":false,"id":"media-2","layout":"wrap","imageInfo":{"slug":"SPACS0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX020_SPACS0_OR_20200814104009.jpg","height":"853","width":"1280","size":"OR"},"altImageInfo":[{"slug":"SPACS0817","responsive":false,"url":"https://asset.barrons.com/public/resources/images/ON-DX020_SPACS0_OR_20200814104009.jpg","height":"853","width":"1280","size":"OR"}],"includeIcon":true,"subtype":"Photo","arthurV2Image":{"imphotoid":"im-220982","softcrop":"Horizontal","location":"https://images.barrons.com/im-220982","size":"1.5"},"credit":"Bryan Bedder/Getty Images for The New York Times","caption":"","index":"0","type":"InsetMediaIllustration"},{"insetProperties":{"layout":"wrap"},"newsletter":"Barrons Review and Preview","newsletterid":"451","index":"1","type":"InsetNewsletterSignup"}],"arthurV2Image":{"imphotoid":"im-220982","softcrop":"Horizontal","location":"https://images.barrons.com/im-220982","size":"1.5"},"byline":"Nicholas Jasinski","url":"https://www.barrons.com/articles/the-spac-market-is-deflating-heres-why-51597572900","summaries":null,"selfCodes":[{"seoname":"Private Equity","vrtysux":"BARRONS_DISPLAY_SUBJECT|BARPRIEQ","symbol":"BARPRIEQ","value":"Private Equity","type":"BARRONS_DISPLAY_SUBJECT"},{"seoname":"Computers/Consumer Electronics","vrtysux":"DJII-INDUSTRY|i3302","symbol":"i3302","value":"Computers/Consumer Electronics","type":"DJII-INDUSTRY"},{"seoname":"Software","vrtysux":"DJII-INDUSTRY|i330202","symbol":"i330202","value":"Software","type":"DJII-INDUSTRY"},{"seoname":"Applications Software","vrtysux":"DJII-INDUSTRY|i3302021","symbol":"i3302021","value":"Applications Software","type":"DJII-INDUSTRY"},{"seoname":"Computing","vrtysux":"DJII-INDUSTRY|icomp","symbol":"icomp","value":"Computing","type":"DJII-INDUSTRY"},{"seoname":"Technology","vrtysux":"DJII-INDUSTRY|itech","symbol":"itech","value":"Technology","type":"DJII-INDUSTRY"},{"seoname":"Corporate Changes","vrtysux":"DJII-SUBJECT|c02","symbol":"c02","value":"Corporate Changes","type":"DJII-SUBJECT"},{"seoname":"Stock Listings","vrtysux":"DJII-SUBJECT|c14","symbol":"c14","value":"Stock Listings","type":"DJII-SUBJECT"},{"seoname":"Corporate Funding","vrtysux":"DJII-SUBJECT|c17","symbol":"c17","value":"Corporate Funding","type":"DJII-SUBJECT"},{"seoname":"Share Capital","vrtysux":"DJII-SUBJECT|c171","symbol":"c171","value":"Share Capital","type":"DJII-SUBJECT"},{"seoname":"Initial Public Offerings","vrtysux":"DJII-SUBJECT|c1711","symbol":"c1711","value":"Initial Public Offerings","type":"DJII-SUBJECT"},{"seoname":"Ownership Changes","vrtysux":"DJII-SUBJECT|c18","symbol":"c18","value":"Ownership Changes","type":"DJII-SUBJECT"},{"seoname":"Acquisitions/Mergers/Shareholdings","vrtysux":"DJII-SUBJECT|c181","symbol":"c181","value":"Acquisitions/Mergers/Shareholdings","type":"DJII-SUBJECT"},{"seoname":"Acquisitions/Mergers","vrtysux":"DJII-SUBJECT|cacqu","symbol":"cacqu","value":"Acquisitions/Mergers","type":"DJII-SUBJECT"},{"seoname":"Corporate Actions","vrtysux":"DJII-SUBJECT|cactio","symbol":"cactio","value":"Corporate Actions","type":"DJII-SUBJECT"},{"seoname":"Corporate/Industrial News","vrtysux":"DJII-SUBJECT|ccat","symbol":"ccat","value":"Corporate/Industrial News","type":"DJII-SUBJECT"},{"seoname":"","vrtysux":"FIRST_PUBLISH_HEADLINE|The SPAC Market Is Deflating. Here’s Why.","symbol":"The SPAC Market Is Deflating. Here’s Why.","value":"","type":"FIRST_PUBLISH_HEADLINE"},{"seoname":"","vrtysux":"HEADLINE|The SPAC Market Is Deflating. Here’s Why.","symbol":"The SPAC Market Is Deflating. Here’s Why.","value":"","type":"HEADLINE"},{"seoname":"","vrtysux":"RELAY|SYND","symbol":"SYND","value":"","type":"RELAY"},{"seoname":"CODES_REVIEWED","vrtysux":"STATISTIC|CODES_REVIEWED","symbol":"CODES_REVIEWED","value":"CODES_REVIEWED","type":"STATISTIC"},{"seoname":"Activist Investing","vrtysux":"SUBJECT|BARACTINVEST","symbol":"BARACTINVEST","value":"Activist Investing","type":"SUBJECT"},{"seoname":"FinTech","vrtysux":"SUBJECT|BARFINTECH","symbol":"BARFINTECH","value":"FinTech","type":"SUBJECT"},{"seoname":"IPOs","vrtysux":"SUBJECT|BARIPOS","symbol":"BARIPOS","value":"IPOs","type":"SUBJECT"},{"seoname":"Marijuana","vrtysux":"SUBJECT|BARMARJN","symbol":"BARMARJN","value":"Marijuana","type":"SUBJECT"},{"seoname":"Markets","vrtysux":"SUBJECT|BARMKTS","symbol":"BARMKTS","value":"Markets","type":"SUBJECT"},{"seoname":"Private Equity","vrtysux":"SUBJECT|BARPRIEQ","symbol":"BARPRIEQ","value":"Private Equity","type":"SUBJECT"}],"subjects":{"BARRONS_DISPLAY_SUBJECT":[{"name":"BARPRIEQ","displayName":"Private Equity","type":"BARRONS_DISPLAY_SUBJECT"}],"externalsymbol":[{"name":"BARMARJN","displayName":"Marijuana","type":"externalsymbol"},{"name":"BARFINTECH","displayName":"FinTech","type":"externalsymbol"},{"name":"BARIPOS","displayName":"IPOs","type":"externalsymbol"},{"name":"BARPRIEQ","displayName":"Private Equity","type":"externalsymbol"},{"name":"BARMKTS","displayName":"Markets","type":"externalsymbol"},{"name":"BARACTINVEST","displayName":"Activist Investing","type":"externalsymbol"}]},"html":"\n\n<!-- T1:M --> <p>The <a href=\"https://www.barrons.com/articles/spacs-are-the-new-hot-thing-on-wall-street-51596240193\" target=\"_blank\" class=\"icon none\" >hottest market in history</a> for special-purpose acquisition companies, or SPACs, appears to be taking a breather. Practically every SPAC on my watchlist is currently trading lower than it was three or four weeks ago. That includes both searching SPACs that have yet to agree a deal with a target company, and those that have <a href=\"https://www.barrons.com/articles/spacs-are-booming-these-21-may-be-about-to-announce-deals-51594029600\" target=\"_blank\" class=\"icon none\" >already announced mergers</a> but haven’t closed them yet.</p> <p>SPACs are <a href=\"https://www.barrons.com/articles/the-hottest-new-stocks-are-spacs-what-investors-need-to-know-51592603415\" target=\"_blank\" class=\"icon none\" >having a big year in 2020</a>, with 70 completed initial public offerings and another 24 filed to IPO in the near future. Gross proceeds of all those offerings are already at $27.7 billion, according to SPAC Insider. That compares with 2019’s 59 SPAC IPOs that raised a combined $13.6 billion—both annual records at the time.</p><!-- T1:_PW --> <p>As the SPAC industry has matured in recent years, the universe of funds and institutional investors who participate in IPO and SPAC deals has grown. But the unprecedented flood of new SPACs on the market in 2020 has caught up with that growing investor base. There are now signs of an oversupply relative to the capital devoted to the sector, several SPAC investors say. That’s begun to deflate prices across the booming sector in recent weeks.</p> <p> <strong>Read More:</strong> <em>Barron’s </em> <a href=\"https://www.barrons.com/articles/spacs-are-the-new-hot-thing-on-wall-street-51596240193\" target=\"_blank\" class=\"icon none\" >cover story on how to invest in SPACs</a>.</p> <p>SPACs <a href=\"https://www.barrons.com/articles/boom-in-blank-check-companies-or-spacs-what-investors-need-to-know-51579299261\" target=\"_blank\" class=\"icon none\" >go public as cash shells</a>, raising money from IPO investors who count on the SPAC’s sponsor to find and negotiate an attractive deal with a real company down the road. Once the companies merge, SPAC shares convert to shares in the operating business, which effectively goes public in the process. At the time of the merger, SPAC shareholders have the option to redeem their shares for a proportionate amount of the cash in the SPAC’s trust, usually $10 plus interest earned since the IPO.</p> <p>Market turbulence in February and March pushed many SPAC share prices below their trust values, creating a nearly risk-free arbitrage trade for investors who had cash to put to work. As the broader stock market rebounded, SPACs came roaring back. Many pre-merger SPAC traded at 10% or 20% premiums to the cash in their trusts by June and July. SPACs from first-time or no-name backers rose alongside those from serial sponsors or experienced management teams.</p> <p>It was a sign of investors’ demand for SPACs, which <a href=\"https://www.barrons.com/articles/why-nikola-decided-to-merge-with-a-spac-and-why-more-such-deals-are-coming-51596369610\" target=\"_blank\" class=\"icon none\" >look particularly attractive in 2020</a>’s uncertain stock market—thanks to their downside protection and the chance to get in on the ground floor of a new stock. That encouraged a stampede of former CEOs, dealmakers, and financiers to raise new SPACs, with underwriters happy to oblige and collect fees. Characters getting involved in SPACs include the former co-CEO of Kodak, <em>Moneyball </em>executive Billy Beane, and sponsors from private-equity firms of mixed pedigree. All talented individuals in their fields, but does not automatically make them brilliant SPAC dealmakers.</p> <p>SPACs <a href=\"https://www.barrons.com/articles/spacs-performance-ipo-merger-goldman-sachs-analysis-russell-2000-51596562450\" target=\"_blank\" class=\"icon none\" >have been announcing mergers</a> left and right in 2020 as well, with well-received deals in areas including electric vehicles, online gambling, and fintech. But mergers haven’t nearly kept up with issuance, and the number of searching SPACs on the market has ballooned to well over 100. There is now more than $40 billion of SPAC capital on the market searching for acquisition targets. There are thousands of potential targets out there, but it’s fair to say that not all of those SPACs will agree to home-run deals, or be able to find ones before their deadlines at all.</p> <p> <strong>Read More:</strong> <em>Barron’s </em> <a href=\"https://www.barrons.com/articles/why-nikola-decided-to-merge-with-a-spac-and-why-more-such-deals-are-coming-51596369610\" target=\"_blank\" class=\"icon none\" >feature on why more companies are choosing to merge with SPACs</a>.</p> <p>SPACs from higher-quality sponsors and with more shareholder-friendly terms still command a premium, but a slimmer one than before. Shares of Chamath Palihapitiya-sponsored <phrase background-info=\"BRIEFING-BOOK\" name=\"IPOB\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|IPOB\">Social Capital Hedosophia Holdings II</phrase> (IPOB) recently traded at $10.97, down from a peak of over $12 in late July. Units of Bill Ackman-backed <phrase background-info=\"BRIEFING-BOOK\" name=\"PSTH.U\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|PSTH.U\">Pershing Square Tontine Holdings</phrase> (PSTH.U), which <a href=\"https://www.barrons.com/articles/bill-ackmans-blank-check-company-starts-trading-today-what-you-need-to-know-51595422200\" target=\"_blank\" class=\"icon none\" >include a common share and a ninth of a warrant</a>, recently went for $21.66, down only slightly from their $21.79 high and at a decent premium to their $20 per share trust value.</p> <!-- T1:M --> <p>SPACs from lower-profile backers haven’t held their value as well. Shares of cannabis-focused SPAC <phrase background-info=\"BRIEFING-BOOK\" name=\"GNRS\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|GNRS\">Greenrose Acquisition Corp</phrase> (GNRS) units were down to $9.80 recently, from an intraday high of $10.60 in mid July. About two dozen other SPACs trade below their trust values.</p> <p>A string of soaring stocks that emerged from SPAC mergers has raised SPACs’ profile with retail investors in 2020. Communities now exist on <phrase background-info=\"BRIEFING-BOOK\" name=\"TWTR\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|TWTR\">Twitter</phrase> and Reddit devoted to trading SPACs. <phrase background-info=\"BRIEFING-BOOK\" name=\"NKLA\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|NKLA\">Nikola</phrase> (NKLA), <phrase background-info=\"BRIEFING-BOOK\" name=\"DKNG\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|DKNG\">DraftKings</phrase> (DKNG), and <phrase background-info=\"BRIEFING-BOOK\" name=\"SPCE\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|SPCE\">Virgin Galactic</phrase> (SPCE) are three cult stocks that recently went public via SPAC mergers. At the peak of the SPAC market in June and July, SPACs merely issuing press releases about agreed deals would see their shares pop by double digits—regardless of what the deal was. That phenomenon has also significantly decreased, with recent deal announcements getting more of a shrug from the market. </p> <p>And the excitement around several SPACs that have <a href=\"https://www.barrons.com/articles/tesla-nikola-hyliion-ev-truck-electric-stock-51593121114\" target=\"_blank\" class=\"icon none\" >announced deals but are yet to close</a> them has also decreased. <phrase background-info=\"BRIEFING-BOOK\" name=\"SHLL\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|SHLL\">Tortoise Acquisition</phrase> (SHLL), <phrase background-info=\"BRIEFING-BOOK\" name=\"GRAF\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|GRAF\">Graf Industrial</phrase> (GRAF), and <phrase background-info=\"BRIEFING-BOOK\" name=\"SPAQ\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|SPAQ\">Spartan Acquisition</phrase> (SPAQ) have all agreed upcoming mergers with electric or alternative-fuel transportation companies. Each is down significantly from its recent highs and has significantly fewer holders on the brokerage Robinhood. <phrase background-info=\"BRIEFING-BOOK\" name=\"OPES\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|OPES\">Opes Acquisition</phrase> (OPES), <phrase background-info=\"BRIEFING-BOOK\" name=\"FMCI\" significance=\"PROMINENT\" type=\"COMPANY\" vrtysux=\"COMPANY|FMCI\">Forum Merger II</phrase> (FMCI), and <phrase background-info=\"BRIEFING-BOOK\" name=\"LCA\" significance=\"PASSING-MENTION\" type=\"COMPANY\" vrtysux=\"COMPANY|LCA\">Landcadia Holdings II</phrase> (LCA) have likewise given back much of their post-deal announcement rallies. They’ve still earned great returns for investors who bought in at the IPO or while shares traded near their $10 trust values, but the hype has subsided.</p> <p>Investors spreading capital across a much larger universe of SPACs—and a bit more skepticism about the average quality of their eventual deals and less interest from retail investors—has reduced the universe of SPACs trading at hefty premiums to their trust values. It’s still a hot market for SPAC IPOs, but the top may be behind us.</p> <p> <strong>Write to </strong>Nicholas Jasinski at <a href=\"mailto:nicholas.jasinski@barrons.com\" target=\"_blank\" class=\"icon \" >nicholas.jasinski@barrons.com</a></p>\n\n","contentServiceVersion":"3.45.0","seoId":"the-spac-market-is-deflating-heres-why-51597572900","images":{"or":"https://asset.barrons.com/public/resources/images/ON-DX020_SPACS0_OR_20200814104009.jpg","credit":"Bryan Bedder/Getty Images for The New York Times"},"lastPubDate":1597572900000,"displayName":"Feature","date":1597572900000,"source":"Barrons.com","page":"Daily","language":"en-US","id":"SB52781115525059914780204586569093739564566","type":"article_extended","articleId":"SB52781115525059914780204586569093739564566","articleSection":"Daily","articleType":"Feature","credit":null,"ebVideo":null,"flashline":{"type":"daily","properties":{"subject":"Private Equity"}},"image":{"A":{"width":"76","height":"76","url":"https://images.barrons.com/im-220982?width=76&height=76"},"AM":{"width":"220","height":"220","url":"https://images.barrons.com/im-220982?width=220&height=220"},"B220":{"width":"220","height":"146","url":"https://images.barrons.com/im-220982?width=220&height=146"},"C":{"width":"167","height":"94","url":"https://images.barrons.com/im-220982?width=167&height=94"},"CA":{"width":"300","height":"200","url":"https://images.barrons.com/im-220982?width=300&height=200"},"D":{"width":"262","height":"174","url":"https://images.barrons.com/im-220982?width=262&height=174"},"DR":{"width":"540","height":"360","url":"https://images.barrons.com/im-220982?width=540&height=360"},"E":{"width":"359","height":"239","url":"https://images.barrons.com/im-220982?width=359&height=239"},"ER":{"width":"602","height":"402","url":"https://images.barrons.com/im-220982?width=602&height=402"},"F":{"width":"571","height":"226","url":"https://images.barrons.com/im-220982?width=571&height=226"},"FR":{"width":"632","height":"810","url":"https://images.barrons.com/im-220982?width=632&height=810"},"G":{"width":"553","height":"369","url":"https://images.barrons.com/im-220982?width=553&height=369"},"GR":{"width":"1242","height":"810","url":"https://images.barrons.com/im-220982?width=1242&height=810"},"H":{"width":"659","height":"439","url":"https://images.barrons.com/im-220982?width=659&height=439"},"J":{"width":"959","height":"639","url":"https://images.barrons.com/im-220982?width=959&height=639"},"K":{"width":"800","height":"600","url":"https://images.barrons.com/im-220982?width=800&height=600"},"M":{"width":"1280","height":"853","url":"https://images.barrons.com/im-220982?width=1280&height=853"},"MEDIUMSQ":{"width":"400","height":"400","url":"https://images.barrons.com/im-220982?width=400&height=400"},"4H":{"width":"300","height":"200","url":"https://images.barrons.com/im-220982?width=300&height=200"},"z110":{"width":"110","height":"73","url":"https://images.barrons.com/im-220982?width=110&height=73"},"z120":{"width":"120","height":"80","url":"https://images.barrons.com/im-220982?width=120&height=80"},"z380":{"width":"380","height":"253","url":"https://images.barrons.com/im-220982?width=380&height=253"},"TOP":{"width":"700","height":"350","url":"https://images.barrons.com/im-220982?width=700&height=350"},"TOPSM":{"width":"620","height":"310","url":"https://images.barrons.com/im-220982?width=620&height=310"},"B620":{"width":"620","height":"412","url":"https://images.barrons.com/im-220982?width=620&height=412"},"B620P":{"width":"620","height":"349","url":"https://images.barrons.com/im-220982?width=620&height=349"}},"isFree":true,"isFreeForever":true,"wordCount":973,"slides":null,"summary":"A hot market for special-purpose acquisition companies, or SPACs, generated an abundance of new issuance. But there are only so many investors willing and able to buy these private-equity-like vehicles, and it’s starting to look like there’s more supply than demand.","tags":[],"timestamp":1597572900000,"timestampCreatedAt":1597572900000,"enableCoralComments":false}],"ccpaApplies":false,"navData":{"barrons_topnav":[{"label":"Coronavirus","url":"https://www.barrons.com/topics/coronavirus","index":0,"id":"","desktopURL":"","mobileURL":""},{"label":"Topics","url":"https://www.barrons.com/topics","index":10,"id":"","desktopURL":"","mobileURL":"","breakpoints":{"16u":true,"12u":true,"8u":true,"4u":false},"moreIn":[{"label":"","url":"","items":[{"label":"Markets","url":"https://www.barrons.com/topics/markets","index":1,"category":"1"},{"label":"Europe","url":"https://www.barrons.com/topics/europe","index":10,"category":"1"},{"label":"Asia","url":"https://www.barrons.com/topics/asia","index":20,"category":"1"},{"label":"Emerging","url":"https://www.barrons.com/topics/emerging-markets","index":30,"category":"1"},{"label":"Funds & 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