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Escalating trade tensions between the US and China spell a “huge opportunity” for Latin America, says Marcos Galperin, the chief executive of MercadoLibre Inc (NASDAQ: MELI).

Galperin is currently the richest person in Argentina with a fortune of about $8.7 billion.

Speaking with CNBC today, the billionaire said, “If Latin America plays its cards well, I believe it could benefit from this volatility.”

Note that the US-listed shares of MercadoLibre Inc have rallied more than 20% in recent weeks.

US-China trade tensions are helping MercadoLibre stock already

US stocks have recovered as much as 10% since April 8th on the back of the White House agreeing to a 90-day pause on almost all of its tariffs.

However, the Trump administration continues to slap higher duties on Chinese goods, citing retaliation against its new trade policies.

Beijing has raised tariffs on American goods to 125% this month in a show of utter defiance against Trump’s tariffs.

President Xi has pledged to fight to the very end against these US tariffs.

Amidst all of this turmoil, Argentina’s richest man sees a huge opportunity for Latin America.

Galperin’s firm, MercadoLibre, which is often touted as the Amazon of Latin America, has significantly outperformed AMZN since the start of 2025.

Manufacturing is increasingly coming to Latin America

According to Marcos Galperin, the shift in the US-China trade relations could lead to a “permanent change” in global trade dynamics.

US companies are already moving their manufacturing operations from China to Latin American countries like Mexico, which benefits from a free trade agreement with the United States.

This shift could position Latin America as a more attractive region for trade and investment, the CEO of MercadoLibre added in his interview with CNBC.

What’s also worth mentioning is that there have been discussions and interest from Argentina’s leadership, particularly under President Javier Milei, to pursue closer trade ties with the US.

Are MELI shares worth owning in 2025?

Argentine president Javier Milei has called the Republican leader, Donald Trump, an “ally” on numerous occasions.

Upon his inauguration in 2025, he even lowered tariffs on US goods and minimise import restrictions as part of his broader commitment to pursue closer trade ties with the United States.

“I think what Milei is doing is great for Argentina,” according to Marcos Galperin, the chief executive of MercadoLibre Inc.  

The narrative is not really lost on Wall Street analysts either, given that the investment firms currently have a consensus “buy” rating on shares of the e-commerce and payments company based out of Montevideo, Uruguay.

Experts currently see upside in MercadoLibre stock to $2,549 on average, which indicates potential for a more than 10% upside from current levels.

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Apple Inc (NASDAQ: AAPL) has reportedly committed to moving manufacturing of all iPhones it sells in the US to India within the next 8 – 10 months, in a bid to avoid aggressive tariffs on Chinese goods.

But a senior MoffettNathanson analyst warns it may prove to be an “unrealistic goal”.

Craig Moffett noted that escalating trade tensions between China and the US are likely to result in significant increases in both costs and sales challenges.

While moving iPhone assembly to India could help mitigate some of the cost pressures, Moffett suggested that the impact on sales could ultimately prove to be the more significant issue.

Apple shares are currently down more than 15% versus their year-to-date high in late February.

iPhone components would still be made in China

Last week on CNBC’s “Fast Money”, Craig Moffett said the Trump administration’s new tariffs and the subsequently emerging trade war create a myriad of issues for the likes of Apple Inc, and “moving to India doesn’t solve all of them.”

For starters, even if the titan begins to assemble its iPhone in India, many of the components for its flagship smartphones are still made in China. So, “it’s not entirely clear to what extent these iPhones will be able to avoid Chinese tariffs,” he questioned. 

Note that Foxconn remains the largest contract manufacturer for AAPL, even if the iPhone itself is being assembled in India.

And in the event of a full-blown trade war, Foxconn could come under immense pressure from the Chinese government to sever its ties with Apple Inc.

Trade war could make Apple lose its share in China

Craig Moffett’s bigger concern is what tariffs and a trade war could ultimately mean for the iPhone maker in terms of demand.

On “Fast Money”, the market expert argued Apple was already losing share to local brands in China even without these macro challenges, adding some of it may have been related to a sense of “nationalism”.

And now that the White House has invoked this trade war against Beijing, that patriotism could lead to a further significant hit to the iPhone demand in the world’s second-largest economy.

For its recently concluded quarter, Moffett expects AAPL to report an 8.0% decline in China.

Is it worth investing in AAPL shares today?

MoffettNathanson’s bearish note on Apple stock arrives only a week before it’s scheduled to report its financial results for the second quarter.

Consensus estimates suggest that Apple (AAPL) is expected to report earnings of $1.60 per share for Q2 on May 1st. This compares to $1.53 per share reported in the same quarter last year.

However, amidst the macro challenges this year, the investment firm expects Apple shares to crash to a low of $141.

Its price target warns of a potential downside of about 30% from here.  

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Investors should consider trimming exposure to Eli Lilly & Co (NYSE: LLY) following a more than 20% increase in the pharma stock’s price in recent weeks, says Rajesh Kumar, a senior HSBC analyst. 

Lilly has long been a top performer in the pharmaceutical space as investors continue to reward its lead in weight-loss treatments. 

However, the very enthusiasm has gone a bit too far and pushed the company’s valuation to such unusual levels that warrant a switch to taking profit, Kumar told clients in a research note on Monday. 

LLY shares are inching down in premarket following HSBC’s dovish call. 

Eli Lilly stock is immensely overvalued

Eli Lilly shares are currently trading at more than 40 times their estimated earnings for 2025, compared to the broader S&P 500 index, which is trading at approximately 20 times forward earnings.

Therefore, citing “valuation concerns”, the HSBC analyst lowered his rating on LLY stock this morning to “hold” and reduced his price target on the pharma giant to $700. 

His new objective, downwardly revised from $1,150 before, warns of a potential 20% decline from current levels. 

It’s also worth noting that Eli Lilly is a dividend stock, offering a yield of 0.68%, which helps mitigate some of the concerns regarding its high valuation.

LLY shares run the risk of multiple contractions

Rajesh Kumar dubs “overvaluation” a significant concern for Eli Lilly as macro uncertainty puts high-fly stocks at a particularly “greater risk of multiple contraction” this year. 

According to the HSBC analyst, the market is overestimating what the company’s anti-obesity treatment, orforglipron, means for its stock price, especially since the competition is showing no signs of letting up. 

“Bear in mind that the highest dose adverse events profile in the type-2 diabetes treatment might suggest lower compliance than injectables,” his report added. 

Note that Eli Lilly’s stock price has nearly increased by six times since the COVID pandemic in 2020. 

Lilly faces stiff competition from Novo Nordisk

HSBC analyst Rajesh Kumar attributed much of the weakness in rival Novo Nordisk’s weight loss treatment (Wegovy/Ozempic) sales to “cannibalisation from compounder.”

But the European giant has recently secured a major legal victory that effectively bans several compounded versions of its Wegovy/Ozempic.

According to Kumar:

“We think when the compounders are stopped in May for Novo’s brands, the script momentum gap between the two players might close.”

HSBC’s cautious outlook on Eli Lilly comes just days before the pharmaceutical giant is set to report its first-quarter earnings.

The consensus estimate is for the company to earn $3.52 per share, a notable increase from $2.58 per share during the same period last year.

Still, the investment firm suggests trimming exposure as the risk-reward in LLY shares is no longer favourable. 

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VeriSign Inc (NASDAQ: VRSN) has been in a sharp uptrend this year, having gained about 35% over the past four months – but the stock’s chart more recently has started showing signs of near-term exhaustion.

The company that operates as a domain name registry built on its gains rather significantly last week after reporting better-than-expected financial results for the first quarter.

Still, technical indicators suggest some near-term downside, indicating investors may now be better off taking some profit off the table in the VeriSign stock.

Note that VRSN is currently in the portfolio of legendary investor Warren Buffett.

Buffett is a long-term shareholder of VeriSign

Buffett has been invested in VeriSign since 2012, and his conglomerate Berkshire Hathaway has even raised its stake in VRSN from time to time.

The company based out of Reston, VA, is in line with Buffett’s preferences, given that it offers a strong competitive advantage and consistent cash flow.

Plus, it initiated a quarterly cash dividend of 77 cents a share last week as well.

In Q1, VeriSign saw its revenue increase by 4.7% on a year-over-year basis, helping its per-share earnings come in at $2.10 for the quarter.

Analysts, in comparison, had called for a marginally lower $2.09 a share.

That said, the relative strength index (RSI) of VRSN shares suggests they might wobble in the near term.

VRSN shares’ RSI has climbed into overbought territory

VeriSign stock’s relative strength index exceeded the closely-watched “70” reading last week.

In technical analysis, an RSI of more than 70 often indicates a stock is overbought.

It implies that buyer enthusiasm might be nearing its peak, often leading to a cooling-off period.

This suggests that investors should consider trimming their exposure to VeriSign stock after a more than 50% increase in the trailing 12 months, as it stands to see some weakness in the near term.

Investors should note, however, that RSI signals what might happen to VRSN shares in the near term, and is not at all an indication of their longer-term trajectory.

What Wall Street expects from VeriSign stock in 2025

Earlier in April, VeriSign guided for $5.825 billion to $5.925 billion in revenue for its full financial year.

At the time, Jim Bdizos, its chief executive, told investors:

VeriSign delivered solid results in the first quarter. As part of our ongoing commitment to return value to shareholders. I’m particularly pleased to announce the initiation of a quarterly cash dividend.

Investors should also note that Wall Street is not particularly bullish on VeriSign stock at the time of writing.

The consensus rating on VRSN shares currently sits at “hold”.

Analysts have an average price target of about $290 on VeriSign, which translates to about a 6% upside only from here.

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Greenland’s Prime Minister Jens-Frederik Nielsen said Sunday that comments from U.S. officials about the Arctic island have been disrespectful and that the island cannot be purchased, in defiance of U.S. President Donald Trump, who has repeatedly floated the idea of buying the strategic territory.

Nielsen said Greenland ‘will never, ever be a piece of property that can be bought by just anyone’ as he stood by Denmark’s Prime Minister Mette Frederiksen during a joint press conference at Frederiksen’s Marienborg official residence in Lyngby, Denmark.

The Greenlandic prime minister was meeting with Frederiksen on the second day of a three-day official visit to Denmark. Greenland is a semi-autonomous territory of Denmark.

‘The talks from the United States have not been respectful,’ Nielsen said. ‘The words used have not been respectful. That’s why we need in this situation, we need to stand together.’

Political parties in Greenland recently agreed to form a broad-based new coalition government amid Trump’s targets on the territory.

This, as the island has for years been leaning toward eventual independence from Denmark.

Nielsen’s three-day visit seeks to address future cooperation between the two countries.

‘Denmark has the will to invest in the Greenlandic society, and we don’t just have that for historical reasons. We also have that because we are part of (the Danish) commonwealth with each other,’ Frederiksen said.

‘We of course have a will to also continue investing in the Greenlandic society,’ she added.

Nielsen is scheduled to meet Denmark’s King Frederik X on Monday before returning to Greenland with Frederik for a royal visit to the island.

Frederiksen and Nielsen were asked whether a meeting had been planned involving them and Trump.

‘We always want to meet with the American president,’ Frederiksen said. ‘Of course we want to. But I think we have been very, very clear in what is the [Danish commonwealth’s] approach to all parts of the Kingdom of Denmark.’

The Associated Press contributed to this report.

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A nonprofit patient’s rights advocacy group has placed a billboard in New York City’s Times Square praising President Donald Trump for ‘delivering’ on a major healthcare promise within his first 100 days in office. 

The billboard, placed by PatientsRightsAdvocate.org, (PRA) will run from April 28 to May 4 and touts Trump’s executive order signed in February directing the departments of the Treasury, Labor, and Health and Human Services to make healthcare prices transparent.

‘President Trump delivers healthcare price transparency,’ the billboard, along with a picture of Trump resembling Superman says. ‘First 100 Days!’

Trump’s order directed the departments to ‘rapidly implement and enforce’ the Trump healthcare price transparency regulations, which he claims were slowed by the Biden administration.

The departments will ensure hospitals and insurers disclose actual prices, not estimates, and take action to make prices comparable across hospitals and insurers, including prescription drug prices.

PRA says that more than 1 in 3 Americans postponed or avoided care due to ‘fear of unknown costs’ and that 100 million Americans are in medical debt, which represents the country’s largest cause of personal bankruptcy. 

 ‘The magnitude of President Trump’s delivering ‘radical’ price transparency in healthcare is historic,’ Cynthia Fisher, founder and chairman of PatientRightsAdvocate.org, said in a statement. 

‘Patients soon will have access to actual prices, not estimates, before they receive care. Prices create a functional market where the consumer benefits from competition and choice to lower costs,’ Fisher continued. ‘Soon, patients will be able to shop for the best quality of care at the best price. Prices protect patients with remedy and recourse from overcharges, errors, and fraud. We are closer than ever to shifting the power to the consumer to live healthier and longer lives at a far lower cost.’  

Andrew Bremberg, former assistant to President Donald Trump and director of the Domestic Policy Council at the first Trump White House, also touted Trump’s executive order, saying that the president ‘built on his first term healthcare legacy and signed an even stronger price transparency executive order. 

‘His efforts to deliver real prices, not estimates, underscore his unwavering commitment to the American people. President Trump has a bold vision to transform the American healthcare system with price transparency as the catalyst.’ 

The executive order notes a number of concerns with current healthcare pricing, including that prices vary between hospitals in the same region.

‘One patient in Wisconsin saved $1,095 by shopping for two tests between two hospitals located within 30 minutes of one another,’ according to the statement.

The White House claims one economic analysis found Trump’s original price transparency rules, if fully implemented, could deliver savings of $80 billion for consumers, employers and insurers by 2025.

‘The hospital wanted me to pay $3,700 up front for a simple fibroid removal surgery,’ Arizona patient Theresa Schmotzer said in a statement at the time of the billboard’s placement. ‘Because that seemed high, I went looking for what it should cost. I found the actual price online and saw that my share was only $700 not $3,700. Because I had access to real prices, not estimates, I saved $3,000. President Trump’s executive order on healthcare price transparency will allow more people to find real prices and save.’  

States across the country have been pushing similar measures in the form of legislation to ensure that patients are given more transparency about the healthcare costs they are assuming, including in Ohio, where legislation was recently signed into law requiring hospitals to post exact prices in dollars and cents for all available services. 

‘They’ll be able to check them, compare them, go to different locations, so they can shop for the highest-quality care at the lowest cost,’ Trump wrote in a statement when he signed the executive order. ‘And this is about high-quality care. You’re also looking at that. You’re looking at comparisons between talents, which is very important. And, then, you’re also looking at cost. And, in some cases, you get the best doctor for the lowest cost. That’s a good thing.’

Fox News Digital’s Alexandra Koch contributed to this report.

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President Donald Trump and Elon Musk’s Department of Government Efficiency have been aggressively overhauling the bloated and cumbersome U.S. federal bureaucracy by re-examining contracts, questioning what taxpayer dollars are funding and who that funding is going to. 

The public health sector hasn’t been immune, with the Trump administration poring over the layers of bureaucracy and freezing or canceling millions in grants. Countless programs within the Department of Health and Human Services (HHS), including those designed to target the treatment and spread of HIV/AIDS, are, or will be, in the crosshairs.

As a former White House director of national AIDS policy who was one of the chief architects of the President’s Emergency Plan for AIDS Relief (PEPFAR), the first director of the HIV/AIDS Bureau at the Health Resources and Services Administration (HRSA), and as an LGBT conservative with a career in medicine, business, and public health, I believe HIV/AIDS advocates should embrace and support such a review. 

While it is critical that the United States’ demonstrably effective long-standing strategy tackling the HIV/AIDS epidemic, and the resources dedicated to it, remain intact, many of these federal programs have not been re-evaluated in years, nor have they been audited for waste, fraud or abuse. 

Advocates in support of maintaining the United States’ aggressive approach to the HIV/AIDS epidemic should welcome the review of HIV/AIDS specific initiatives to ensure that they are optimally designed to meet the needs of the current epidemic.

Take the Ryan White CARE Act, for example, which funds essential healthcare services for uninsured and underinsured individuals living with HIV/AIDS in the U.S. The program, which received $2.5 billion in federal funding in FY 2024, hasn’t been reauthorized by Congress since 2009. In that time, the expansion of healthcare coverage through Medicaid substantially reduced the number of people who needed Ryan White support for medical care and pharmaceuticals, yet its budget continued to grow. 

A reauthorization process would allow for a close look at spending priorities embedded in Ryan White – an initiative that was designed before highly effective HIV/AIDS therapy was even available. Surely, the HIV/AIDS community would do well to see if that funding might be better reallocated elsewhere, such as toward substance abuse and mental health services, or other needed care. 

DOGE can also remedy unnecessary bureaucratic overlap. The Ryan White program is run through the HRSA, and the Ending the HIV Epidemic initiative, started by Trump during his first term, is run through the Centers for Disease Control and Prevention (CDC). Despite the programs’ complementary missions, they are siloed off into separate entities with their own budgets and staff, resulting in unnecessary administrative overhead costs and potentially wasteful spending. 

The Trump administration is reportedly looking to streamline these two initiatives into one program run through the HRSA to consolidate the resources and make them more efficient. Advocates for a strong public health response to HIV/AIDS should be open to considering these kinds of commonsense reforms and not wringing their hands or fearmongering to voters.

While efficiency is needed, it would be a grave mistake to deprioritize funding for the HIV/AIDS epidemic as national policy. While new cases of the disease are on the decline in the U.S. due to advances in treatment and prevention efforts, data has shown that cutting those efforts leads to spikes in new infections, which in turn burden the healthcare system with costlier care and treatments down the line. 

Another critical pillar of the U.S. approach to the epidemic is PEPFAR, which funds HIV/AIDS prevention, treatment, and care globally. PEPFAR’s value is not only as a cost-effective success in saving millions of lives but also as a means of exerting significant diplomatic influence with dozens of partner nations. 

Secretary of State Marco Rubio granted PEPFAR a waiver from the initial suspension of global health initiatives in the first days of the Trump administration. That does not mean that PEPFAR should be immune from an audit for inefficiency. 

Like all federal programs, there must be improvements that can be made and waste that can be cut. PEPFAR’s strategy and tactics, however, are undeniably working with an incredible return on investment. Keeping the program efficiently funded should be a bipartisan priority.

It’s easy to panic over reports of specific cuts or reorganizations to HIV/AIDS programs. Opponents of the Trump administration have every reason to fearmonger around the issue, as federal funding for prevention efforts is generally popular. 

But, if we genuinely care about the fight against HIV/AIDS, we must recognize that these programs, like the federal government itself, are not perfect. These HIV/AIDS programs are long overdue for auditing, evaluation and perhaps reorganization, and as long as our commitment to fighting the disease remains intact, the United States’ efforts will be stronger for it.

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OTTAWA- In a dramatic reversal, the governing Liberals, who were trailing the official opposition Conservatives in the polls earlier this year, appear poised to win their fourth consecutive term in office thanks to President Donald Trump’s threats against Canada’s economy and sovereignty, according to election watchers.

‘It looks like there will be a Liberal government, which seems to be what the polls point to, and it would be a very big surprise if the Conservatives won,’ Angus Reid, founder and chair of the Angus Reid Institute, told Fox News Digital.

In an Angus Reid Institute poll released on Dec. 30, the Conservatives were in super-majority territory with 45% support, compared to the Liberals at 11%. The results of a poll released on Saturday had the Liberals at 44% with a four-point lead over the Conservatives at 40%.

‘This really has been an extraordinary election in that, by all rights, Canadians had it with the Liberals’ woke policies and with their misspending and didn’t like Trudeau,’ Reid said.

He explained that the political dynamic changed when Justin Trudeau announced his resignation as Canada’s 23rd prime minister and Trump was inaugurated as the 47th president in January, and former central bank governor Mark Carney succeeded Trudeau as prime minister and Liberal leader in March.

‘Between tariffs and threats of annexation, Trump became the single most important issue in the country overnight,’ said Reid. ‘That gave Mark Carney an opportunity to be the first out of the gate to say that we’re not going to put up with this – we’re a sovereign nation and we’re going to fight.’

The campaign has been a two-party race between the Liberals and Conservatives and led by two starkly different leaders who focused on strengths that their critics considered weaknesses.

Carney, a 60-year-old former senior executive at Goldman Sachs who never held elected office prior to winning the Liberal leadership, has called on voters to consider – during a time of economic crisis fueled by Trump’s threats – his experience, which includes running the central banks of Canada and England, and as the United Nations Special Envoy for Climate Action and Finance. 

His detractors, however, have accused him of being out of touch and ‘not connected to the common man’ and has spent a fair amount of time outside Canada, as a former deputy national Conservative Party campaign manager told Fox News Digital last month.

Meanwhile, Poilievre’s message to voters is that he is the agent for ‘change.’ However, his opponents claim the 45-year-old Conservative leader is part of the political establishment, having spent almost half of his life as a member of Parliament since he was first elected in 2004 – and the change he touts came with a shift in Liberal leadership from Trudeau to Carney.

The results of an Ipsos poll conducted for Global News in Canada, released on April 21, showed a narrow three-point lead for the Liberals at 41% over the Conservatives at 38%. 

Darrell Bricker, CEO of Ipsos Global Public Affairs, told Fox News Digital that the Liberals were ahead of the Conservatives by 12 points in mid-April and have lost ground since ‘because of the effect of Donald Trump, both positive and negative.’

‘When Donald Trump is in the news saying 51st-state stuff, that brings the focus back to the major issue that the Liberals lead on, which is dealing with him,’ said Bricker.

‘But over the past two weeks, Donald Trump has kind of gone dark on Canada. He’s been focused on China, U.S. government funding of Harvard University, and to the extent he’s talking about trade, it’s about global trade deals.’

That, said Bricker, has resulted in many Canadians returning to their pre-Trump main issue of affordability, through the lens of the Liberals running the government over the past decade.

Ultimately, the outcome of Monday’s general election will be decided by geography, according to Bricker, whosaid that the national vote ‘will be won or lost’ in Ontario, particularly in Toronto and the surrounding so-called 905 region, which refers to the telephone area code, where there are 55 ridings (electoral districts) and about 4.5 million eligible voters.

‘The 905 voted overwhelmingly for Justin Trudeau’s Liberals three times,’ said Bricker. ‘If they do it again, the Liberals will win a fourth consecutive term in office.’

Last week, Carney said if he remains prime minister following the election that he would have a meeting with Trump ‘within days’ as part of an ‘ambitious and broad-ranging discussion’ on a new trade and security deal between Canada and the U.S.

Reid said that the Liberals’ improved showing was not just about Canadians warming to Carney, but also about Conservative Leader Pierre Poilievre’s failure to turn the dial from focusing on a consumer carbon tax, which the Liberal leader canceled on April 1 in his first act as prime minister, and ‘still reflecting on Trudeau long after he had gone, instead of jumping right away onto the Trump threat and becoming something that he would lead the charge on.’

The irony, in Reid’s view, is that ‘Trump imperiled the campaign of an individual who could be in many ways his stepbrother in Canada,’ he said about Poilievre, who he called ‘mini-Trump,’ and his ‘anti-woke,’ smaller-government stance – ‘Trump-esque policies that the American right might want to see in Canada and certainly a lot of Canadians on the right want to see.’

According to Elections Canada, a record 7.3 million Canadians cast their ballots in advance polls over the Easter weekend. With the country having six time zones, the results aren’t expected to be known until late Monday evening.

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Speaker Mike Johnson, R-La., said President Donald Trump has accomplished more in the first 100 days of his tenure than ‘most politicians or presidents accomplish in their entire lifetimes.’

The top House Republican said this first period of a new GOP trifecta in government has been a ‘flurry of activity’ used to set the stage for the party’s plans to pass a massive piece of legislation setting up Trump’s priorities on defense, taxes, energy and the border.

‘o much of what we’ve done is leading up to the big reconciliation bill, and that is the legislative vehicle, as I’ve explained to people, it will help us, through which we will deliver the president’s America First agenda,’ Johnson told Fox News Digital.

‘We’ve done it with arguably the smallest margin in the history of the Congress, so challenges every day, but it’s been very rewarding to lead us through that.’

He noted that Trump and Congress had worked together on passing the Laken Riley Act, and on keeping transgender women out of biological women’s spaces.

But the speaker also acknowledged that Trump has acted quite a bit on his own, as well.

‘He’s issued, I think, 110 executive orders and many other executive actions. And we’ve been working to codify so much of that. It’s been kind of a partnership,’ Johnson said.

But not everyone views it as equal. Democrats have accused Republicans of acquiescing power to Trump on issues ranging from tariffs to government funding.

‘I don’t think we’ve ceded any authority. I think that he’s doing what is within his scope to do. There’s an assumption made by Congress that the administration, whoever is in the administration, will use the money that is appropriated to the executive branch as a good steward, that they will take every measure possible to prevent fraud, waste and abuse,’ Johnson said. 

‘And tariffs as well – the president, whomever is president, has a responsibility and I think an expectation from Congress that they will deal with unfair trade partners around the globe.’

He also pointed out that a significant number of Trump’s orders have targeted Biden administration actions or policies that were similarly enacted without Congress.

‘I don’t think the president has engaged in executive overreach,’ Johnson said. ‘So much of what he’s done by executive order is reversing executive orders of his predecessor. So, it looks like he’s doing a lot, but he’s unwinding the damage done by the previous occupant of the Oval Office. So, he certainly has latitude to do that.’

But Johnson, a former constitutional law attorney who styled himself ‘a jealous guardian of Article I,’ vowed he would raise his concerns with Trump if he ever felt Congress’ power was being infringed. 

‘I don’t think he’s crossed the line yet. If he does, or if he did, you know, I would address it with him personally as a concern, as a partner, and explain that I think it’s been overdone,’ he said.

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PayPal stock price on Tuesday, when it publishes its first-quarter financial results, will show whether its business is growing or not. While the PYPL shares have bounced back in the past few days, they remain significantly lower than their 2024 highs. They have dropped by 30% from the highest level last year.

PayPal share price also remains 80% below its all-time high. It has gone through a $310 billion wipeout as the market cap has dropped from a record high of $380 billion to the current $69 billion. This article explores why PayPal has become a fallen angel and whether its stock will bounce back after its earnings.

PayPal is no longer a growth company

The primary reason why the PayPal share price has crashed is that it is no longer the growth machine it was a few years ago. That’s because all its business segments have become disrupted by larger companies.

The main wallet business that lets users send money has been disrupted by firms like Google, Amazon, and Apple that have a large ecosystem. 

Additionally, companies like Stripe, Square, Adyen, Worldpay, and Checkout.com have continued to disrupt its unbranded business. 

While the market opportunity in all these industries is large, it also means that competition is also substantial. 

PayPal’s business is also being disrupted by neobanks and companies in the crypto industry like Coinbase and Binance.

As a result, PayPal’s revenue growth has slowed. Its annual revenue rose to $31.8 billion in 2024, up from $29.7 billion the previous year. 

The most recent results showed that PayPal’s revenue rose by 4% to $8.34 billion as the number of monthly active accounts rose by just 2% to 229 million. PayPal’s operating income fell by 17% as the margin fell by 431 basis points to 17.2%. 

Read more: PayPal stock price forecast: why PYPL is crashing, and what next

Q1 earnings ahead

The next key catalyst for the PayPal share price will be its first-quarter earnings, which will come out on Tuesday. 

These numbers will provide more information on its business performance and whether its initiatives are gaining traction.

The average estimate is that PayPal’s revenue will be $7.85 billion, a 1.85% annual growth rate. This is a tiny rate for a tech company that was once seen as a potential challenger to Visa and Mastercard. 

Wall Street analysts anticipate that its earnings per share will be $1.16, an increase from the $1.08 it made in Q1’24. They also expect that its annual revenue will be $32.9 billion this year and $35 billion next year.

The only positive thing for PayPal is that it has become a bargain. The data shows a trailing twelve-month price-to-earnings ratio of 16 and a forward multiple of 13. 

It is also taking initiatives to boost its stock price, including its share buybacks. These repurchases have reduced the outstanding shares from 1.17 billion in 2021 to 997 million today.

Read more: PayPal stock analysis: will the Honey scam allegations bite?

PayPal stock price analysis

PYPL stock chart | Source: TradingView

The daily chart shows that the PYPL share price has been in a strong downtrend in the past few months. This retreat happened after it formed a double-top pattern at $93.15. Its neckline was at $81.75. 

The stock has bounced back after falling to the support at $57.50. A closer look shows that it is forming an inverse cup and shoulders pattern, a popular continuation sign. It is now forming the shoulder section. 

The stock also formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. Therefore, the PayPal stock price will likely resume the downtrend and possibly move below $50 in the coming weeks. A rebound above $70 will point to more gains.

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