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Acquisitions Mergers

AMZN

GOOG

META

MSFT

NVDA

SOXL

Nvidia Corp (NVDA) faces increasing competition in the AI chip market from tech giants like Amazon (AMZN), Alphabet (GOOG/GOOGL), Meta Platforms (META), and Microsoft (MSFT), who are developing their own AI chips to reduce dependency on Nvidia's GPUs. Despite this, Nvidia maintains over 70% of AI chip sales and is seen as a key beneficiary in the AI space. The company's sales surged by 206%, adding about a trillion dollars to its market value. Nvidia's significant exposure to China is a concern due to U.S. semiconductor industry sanctions. The Direxion Daily Semiconductor Bull 3x Shares (SOXL), which includes Nvidia, saw a slight increase in its share price.

Portfolio Pulse from Anusuya Lahiri

January 29, 2024 | 5:22 pm

CVX

HES

PXD

XOM

Activist investor Bluebell Capital Partners has urged BP plc (NYSE:BP) to reduce its green energy commitments, claiming these have depressed BP's share price. Bluebell's call contrasts with previous activist campaigns, such as Engine No. 1's successful push for ExxonMobil Corp. (NYSE:XOM) to adopt more environmentally friendly policies. Exxon and Chevron (NYSE:CVX) have recently made large acquisitions in the shale oil and gas sector, with Exxon purchasing Pioneer Natural Resources Co (NYSE:PXD) and Chevron acquiring Hess Corp (NYSE:HES). Bluebell suggests BP cut investments in bioenergy, hydrogen, and renewables by $28 billion by 2030. The debate over oil majors' green energy targets and potential M&A activity is expected to intensify in the coming months.

Portfolio Pulse from Neil Dennis

January 29, 2024 | 5:20 pm

BFRG

CDLX

PALI

PBLA

SOFI

U.S. stocks traded mixed with the Dow slightly down and the Nasdaq up. Consumer discretionary shares rose, while energy shares fell. Palisade Bio surged after withdrawing a registration statement and announcing preclinical data. SoFi Technologies jumped on strong quarterly revenue. Cardlytics gained after a settlement agreement and updated Q4 results. Panbela Therapeutics plunged following a public offering announcement. Bullfrog AI fell after a shelf offering, and Bloom Energy dropped after a downgrade. Oil prices decreased, while gold and silver rose.

Portfolio Pulse from Avi Kapoor

January 29, 2024 | 5:16 pm

REVG

REV Group Inc (NYSE:REVG) shares surged after announcing a special dividend and strategic actions, including the sale of its Collins Bus Corporation to Forest River Bus, LLC for $303.0 million and the planned exit from transit bus manufacturing by shutting down its ENC business. The company will reorganize into two segments, Specialty Vehicles and Recreational Vehicles, and expects to generate $250 million in net cash proceeds, returning $180 million to shareholders as a special dividend. The dividend is payable on February 16, 2024, to shareholders of record on February 9, 2024. Remaining proceeds will be used to reduce debt. REV Group will update its fiscal 2024 guidance in its upcoming earnings release.

Portfolio Pulse from Lekha Gupta

January 29, 2024 | 5:04 pm

BETZ

DKNG

FLUT

Flutter Entertainment plc (NYSE:FLUT), parent of FanDuel, has listed on the NYSE, transitioning from its OTC listing under PDYPY. This move could impact DraftKings Inc (NASDAQ:DKNG) as investors may rotate from DraftKings to Flutter due to its new accessibility and status as a pure-play sports betting and gaming company. Flutter's Q4 revenue was up 15% YoY, with FanDuel holding a 43% gross revenue market share in the U.S. sportsbook market. Flutter's NYSE listing is seen as a strategic move to access deeper capital markets and align with its significant U.S. presence. Flutter is also the largest holding in the Roundhill Sports Betting & iGaming ETF (NYSE:BETZ) at 11.0%. Flutter shares are up 0.88% to $206.80.

Portfolio Pulse from Chris Katje

January 29, 2024 | 5:01 pm

AMGN

Amgen (NASDAQ:AMGN) has received mixed ratings from 11 analysts, with an average 12-month price target of $291.91, indicating a 5.6% increase from the previous target. Recent actions include ratings adjustments and price target changes by analysts from UBS, Daiwa Capital, BMO Capital, RBC Capital, Truist Securities, Deutsche Bank, and Morgan Stanley. Amgen's financials show a market cap above industry average, a 3.77% revenue growth, a high net margin of 25.06%, an ROE of 23.97%, and an ROA of 1.91%, but a high debt-to-equity ratio of 7.9. The company's portfolio includes drugs like Epogen, Aranesp, Neupogen, Neulasta, Enbrel, Otezla, Vectibix, Prolia/Xgeva, Evenity, Repatha, Aimovig, Lumakras, Tezspire, and Kyprolis from the Onyx acquisition. The recent Horizon acquisition adds drugs for rare diseases, including Tepezza.

Portfolio Pulse from Benzinga Insights

January 29, 2024 | 5:00 pm

CHH

Barclays has maintained its Underweight rating on Choice Hotels Intl (NYSE:CHH) but raised its price target from $112.00 to $114.00. Despite the increase in the price target, the new target still suggests a potential downside of 6.22% from the current share price of $121.56. Choice Hotels operates 628,000 rooms across 13 brands and franchises make up 99% of its revenue. The United States accounts for 79% of total rooms. The company recently added the Everhome brand and closed on its Radisson acquisition, adding approximately 70,000 rooms.

Portfolio Pulse from Benzinga Insights

January 29, 2024 | 5:00 pm

BABA

MCHI

China's proposed $278 billion stimulus to rescue its markets may not be effective, with fears of social unrest and a comparison to the US 2008 recession. The iShares MSCI China ETF (MCHI) is down 4% this year and 37% since inception. Alibaba (BABA) lost 38% in value over the past year. CITIC Securities restricted short selling, and China plans to inject funds into markets via Hong Kong. China's debt-to-GDP ratio hit a record 286%, and there's skepticism about the stimulus' effectiveness and concerns about global contagion risks.

Portfolio Pulse from Caleb Naysmith

January 29, 2024 | 5:00 pm

AMZN

IRBT

FTC staff recommended the Commission to vote against Amazon's acquisition of iRobot, with a final meeting set before a potential lawsuit to block the deal.

Portfolio Pulse from Benzinga Newsdesk

January 29, 2024 | 4:53 pm

GMDA

Gamida Cell's stock is trading higher following the company's announcement that it is actively seeking strategic alternatives, which could include a sale, merger, or other business combination.

Portfolio Pulse from Benzinga Newsdesk

January 29, 2024 | 4:34 pm