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Fintech lender Affirm said Tuesday that it’s reached an agreement with JPMorgan Chase to offer its buy now, pay later loan services to merchants on the bank’s payments network.

U.S. merchants who use JPMorgan to handle payments can soon add Affirm to their checkout pages, according to a release. Consumers will have access to loans ranging from 30 days to 60 months, according to Affirm.

The deal follows a similar announcement from rival Klarna last month, in which the Swedish fintech said it would be available to JPMorgan’s merchants. Affirm and Klarna are increasingly going head-to-head as the buy now, pay later field matures in the U.S.; Affirm is publicly traded and seeking to steadily grow profits, while Klarna recently filed for a U.S. IPO.

“The demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high,” Michael Lozanoff, global head of merchant services at J.P. Morgan Payments, said in the release.

“By incorporating Affirm as a payment method into our Commerce Platform, we are empowering businesses to deliver the services they need and the experiences that customers increasingly expect as part of their retail journey,” he said.

Affirm said the deal was an expansion of existing banking and processing relationships with JPMorgan, the largest U.S. bank by assets. It wasn’t immediately clear when the new option would be available to merchants.

This post appeared first on NBC NEWS

The FTSE 100 index has remained in a consolidation phase in the past few weeks as investors focus on the Bank of England (BoE) actions and the upcoming tariffs by the Donald Trump administration. The index was trading at £8,665 on Wednesday, a few points below its all-time high of £8,910.

Bank of England actions

The FTSE 100 index has remained in a tight range as investors focused on the actions of the Bank of England. The BoE has become one of the most conservative central banks in the industry. 

It has delivered just three interest rate cuts in this cycle, bringing the headline rate to 4.50%. Officials have hinted that they will maintain their conservative leaning in the coming meetings even as the economy weakened.

The most recent economic data showed that the UK economy contracted slightly in January, a trend that may continue this year. 

A key concern is that Donald Trump may decide to increase tariffs on imported goods from the UK next week. On the positive side, the US and the UK have a fairly balanced trade relationship, meaning that it may be excluded from tariffs by the US. 

Therefore, some analysts believe that the BoE should embrace a more dovish tone since interest rates remain high, hurting growth. This explains why UK bond yields have continued rising, with the 10-year bunds yielding 4.75%, and the closely-watched 5-year yielding 4.40%.

The rising bond yields partially explain why the FTSE 100 index has remained under pressure since investors are receiving a higher return by just investing in the bond market. 

Economists expect that UK inflation will remain elevated for a while. Data released on Wednesday will show that the headline CPI remained at 3.0%, while the core CPI softened from 3.7% to 3.6%. These numbers are substantially higher than the BoE target of 2.0%.

Top FTSE 100 shares in 2025

Most companies in the FTSE 100 index have risen this year. Fresnillo, a Mexican company that mines silver, is the best-performing company in the Footsie as it jumped by 50% this year. This surge happened as investors predicted more revenue and profits because of higher silver prices. 

Airtel Africa share price has jumped by 43% this year, becoming one of the best telecom companies globally. The stock jumped after the company’s revenue growth accelerated. Its customer count jumped by 7.9% to 163.1 million, while the revenue in the last quarter jumped by 20% to $3.6 billion. 

Rolls-Royce share price has soared as investors cheered its strong results that showed that it reached its mid-year target two years ahead of schedule. 

Other top-performing companies in the FTSE 100 index this year are names like BAE Systems, Lloyds Banking Group, Prudential, Coca-Cola, Standard Chartered, Aviva, and Antofagasta. 

On the other hand, the top laggards in the index are companies like WPP, JD Sports, Diageo, Intercontinental Hotels, Sainsbury, and Glencore. All these companies have crashed by over 10% this year. 

FTSE 100 index technical analysis

FTSE 100 index chart | Source: TradingView

The daily chart shows that the FTSE 100 index has been in an uptrend in the past few months. It soared to a record high of £8,908, and then dropped. This decline was important as the stock retested the important support level at £8,473, the highest swing on May 15. This retreat was part of a break-and-retest chart pattern, a popular continuation sign.

The index has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control. Therefore, a combination of these moving averages and the break-and-retest points to further gains, potentially to the all-time high of £8,908. A break above that level will point to more gains, potentially to £9,000.

The post FTSE 100 index technical analysis points to more gains this year appeared first on Invezz

Tesco share price has suffered a harsh reversal this month, erasing all the gains made earlier this year. After peaking at near 400p in February, the stock tumbled to a low of 320p, the lowest level since August 7 last year. This article explains why the TSCO stock has plunged and whether it is safe to buy the dip.

UK retail price war may hit Tesco margins and growth

The main reason why Tesco share price has crashed is that the market is bracing for price wars in the UK. These concerns jumped last week after Asda, the biggest retailer in the country announced huge price cuts. 

The company will cut prices by an average of 22% on over 1,500 products. This is a continuation of price cuts that started in January, which imply that it has slashed prices on almost 10,000 products. 

These price cuts are meant to boost its market share in the UK, which has slipped in the past few years. As such, odds are that other retailers like Tesco will also slash prices to match what Asda is offering.

Lower prices are good for shoppers, who will likely keep buying more. However, they will affect the retailers’ margins over time unless they use their scale to squeeze the suppliers. 

Analysts caution that Tesco will be one of the most affected by the price wars, which may push it to issue a more cautious guidance in its next results. Most importantly, there are concerns on whether the company will continue growing its market share. 

Tesco share price has also dropped after the company agreed to a 5.3% wage increase that will cost it over £180 million a year. 

Read more: Tesco share price is beating Walmart, Kroger, and Target

TSCO business is doing well

The most recent half-year results showd that the company’s business is booming. Its total revenue rose to £31.46 billion from £30.4 billion a year earlier. 

This growth was accompanied by high profits as the management took measures to slash its costs.  The company’s adjusted operating profit rose by 15.6% to £1.64 billion.

Tesco has also continued to grow its market share in the country. The market share figure rose by 62 basis points as Asda woes continued at the time. 

The management expects that its full-year operating profit will be about £2.9 billion, while the free cash flow will be between £1.4 billion and £1.8 billion. 

What next for the Tesco share price

The stock market is often driven by fear and greed, and in Tesco’s case, a sense of fear has prevailed. In most cases, the fear-driven sell-off is usually short-lived as the market tends to adjust to the new normal. 

Tesco has some positives that may propel its stock higher over time. It trades at a forward P/E ratio of 11.2,  making it a bargain for a market leader in its business. It is growing its margins, and most importantly, it has a dividend yield of about 4.5%, higher than the average yield of the FTSE 100 index.

Tesco share price analysis

TSCO chart by TradingView

The daily chart shows that the TSCO share price peaked at near 400p this year and then plunged after the Asda price cuts. It has now slipped below the crucial support level at 337p, its lowest level on November 12.

Tesco stock price has crashed below the 200-day and 50-day moving averages, a sign that bears are in control. The Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the oversold level.

Therefore, the stock will likely bounce back in the coming months. If this happens, the next point to watch will be at 350p.

The post Tesco share price has crashed: will it go back up soon? appeared first on Invezz

Lloyds share price has done well in the past few months and is now hovering near its highest point in years. This rally has coincided with the ongoing surge of other UK banks. 

LLOY has jumped by about 50% in the last 12 months. It has continued to underperform other companies like NatWest, HSBC, Standard Chartered, and Barclays. NatWest has soared by over 90%, while Standard Chartered is up by 77%. This article conducts a technical analysis and explains whether the Lloyds share price has more room to grow.

Lloyds, NatWest, HSBC, and Barclays stocks

Lloyds share price technical analysis

The weekly chart shows that the LLOY stock price has been in a strong uptrend, as we predicted. It jumped above the key resistance level at 61.42p, its highest point on December 9, 2019, and October last year. That was a big move that signaled that bulls had prevailed. 

The LLOY share price has remained above all moving averages, a sign that the momentum is continuing. In trend-following analysis, this performance is a sign that bulls are in control for now. 

The Relative Strength Index (RSI) has continued rising, and recently moved above the overbought level. Similarly, the Percentage Price Oscillator (PPO) has remained above the zero line since February. The Awesome Oscillator has turned green. 

Therefore, there is a likelihood that the stock will continue its uptrend in the near term as bulls target the next key resistance level at 80p. More Lloyds stock gains will become invalid if the stock plunges below the support at 61.42p.

LLOY stock chart by TradingView

Lloyds Bank’s business is doing well

The Lloyds share price has surged this year because of the ongoing surge of European bank stocks this year. The Nasdaq Europe Bank Index, which tracks the biggest banks in the region, has soared to a record high. It has jumped by over 44% in the last 12 months.

These stocks have done well because of higher interest rates that helped to boost their earnings per share (EPS). Most of them have used the higher interest income to boost their dividends and share repurchases.

The most recent results showed that Lloyds Bank’s had a statutory profit after tax of about £4.5 billion, down from £5.5 billion a year earlier. The net income dropped by about 5% during the year. 

The decline, which the market received well, was because of higher impairment costs due to the motor insurance crisis. 

At the same time, Lloyds Bank’s net interest income dropped by 7% to £12.8 billion, while its other underlying income was £5.6 billion. 

Lloyds share price also jumped because of its strong FY’25 guidance. The company hopes that its net interest income will be about £13.5 billion, while the return on tangible equity will be 13.5%.

Lloyds Bank has also boosted its dividends and share buybacks. It paid an ordinary dividend of 3.17p a share last year, a 15% increase from a year earlier. It is also reducing its outstanding share count by boosting share buyback by up to £1.7 billion.

One way the company is doing this is by reducing its CET-1 ratio to 13% from 17.2% in 2021. It reduces the ratio by slashing the amount of money in its balance sheet. Even so, its ratio will be higher than other banks like Bank of America and Wells Fargo.

Read more: Analysts are bullish on Lloyds share price: should you?

The post Lloyds share price technical analysis: can it keep rising? appeared first on Invezz

Corporate America is having a mixed performance this year as concerns about technology companies’ valuations remain. Stocks have also reacted to the highly hawkish actions of the Federal Reserve and Donald Trump’s tariffs. 

Some well-known companies have filed for bankruptcy this year as their cash burn accelerated. This article reviews some of the top names that have filed for bankruptcy protection and identifies others that may follow suit. These names include Canoo (GOEV), Fisker (FSR), Nikola (NKLA), 23andMe (ME), and Forever21.

Canoo (GOEV)

Canoo is one of the popular companies that filed for bankruptcy this year after running out of money. Unlike other firms, Canoo filed for a Chapter 7 bankruptcy, where a company ceases to operate and its assets are sold off to pay creditors. This explains why Canoo’s website has gone dark. 

Canoo’s bankruptcy was easy to predict, as we warned in many articles: here, here, here, and here. Like other Tesla rivals, Canoo was burning so much cash in an unsustainable manner. As its stock crashed, it became impossible to raise cash by selling shares. The most recent Canoo news is that Anthony Aquilla, the CEO, was buying all its assets out of bankruptcy for $4 million in cash. 

Fisker (FSR)

Fisker is another company we’ve lost. It was a Tesla rival that filed for bankruptcy protection in 2024 as csh burn accelerated. 

Fisker’s bankruptcy situation was different than that of Canoo in that it was already manufacturing vehicles and selling them to customers. The challenge, however, was that shipping vehicles from Austria to the United States was a logistic nightmare that became too expensive to handle.

Fisker was also burning cash, suffered a brand reputation damage when MKBHD delivered a bad review, and also had an expensive recall.

Nikola (NKLA)

Nikola is another tech company that we’ve lost this year. Like with Fisker, we predicted Nikola’s bankruptcy, as you can read here, here, and here. Nikola filed for Chapter 11 bankruptcy protection, which allows a company to negotiate and restructure its operations.

In many instances, companies often emerge from the Chapter 11 bankruptcy process and thrive. However, in Nikola’s case, the chances of this happening are low because of the business the company is in.

Nikola manufactured hydrogen trucks that are more expensive than diesel ones, leading to low demand. Most importantly, there is no adequate infrastructure to support these vehicles in the US. This makes it difficult for any company to takeover the company as operating it will be more expensive.

23andMe (ME)

The most recent company to file for bankruptcy was 23andMe. Like the other companies, this bankruptcy was easy to predict, which we did here. The company has been going through major challenges in the past few years. It suffered a big hack that exposed data of millions of companies.

23andMe company had a core business problem: what to do after carrying out genetic testing. That’s because customers only do genetic testing once, and they don’t do the DNA testing again.

The company sought to grow its business in other areas. It wanted to become a leading player in data, where it sold its data to companies like those in the biotech industry. It also aimed to become a top player in research. All these initiatives were slow and expensive to implement. 

Forever21

Meanwhile, Forever21 also filed for bankruptcy in March. It cited its high debt load from between 10k and 25k creditors. Forever21 blamed its bankruptcy on the rising competition from the likes of Shein and Temu, and weak demand in the US. It noted that these firms were taking advantage of the de minimis exemption that helped them avoid paying taxes.

This is the second time that Forever21 has filed for bankruptcy protection, having done so in 2021. 

Potential bankruptcies

Other companies will likely file for bankruptcy in the next 12 to 24 months. The most notable of these firms that are burning cash fast are Mullen Automotive, Faraday Future, Workhorse Group, Wheels Up, Children’s Place, and Allbirds.

The post The ones we’ve lost: Canoo, Fisker, Nikola, 23andMe, Forever21 appeared first on Invezz

The Indonesian rupiah is collapsing, a trend that may continue in the coming weeks if the central bank fails to intervene. The USD/IDR exchange rate soared to a high of 16,653 on Tuesday, the highest level since 1998 when the Asian currency crisis happened.

Why the Indonesian rupiah has crashed

It then stabilized after the Bank of Indonesia confirmed that it had intervened in the forex and bond market to stabilize it. Central banks intervene by buying the local currency in the open market using its foreign holdings. These purchases lead to more demand for the local currency and lift it up.

Indonesia’s central bank becomes the second emerging market central bank to intervene this month. Last week, the Turkish central bank spent over $12 billion after the government arrested the main opposition leader. 

The Indonesian rupiah has crashed because of the sluggish economic growth. Data released earlier this month showed that the economy expanded by 5% in 2024, missing analysts’ estimates.

The weak economic growth means that the central bank will likely continue cutting interest rates. It has already slashed rates two times, moving them from a high of 6.25% last year to 5.75% today. 

With inflation tumbling, analysts anticipate more rate cuts to stimulate spending. A recent report showed that the headline inflation moved to minus 0.09% in February, making it the first time in decades that it has moved into a deflation. It peaked at almost 4.70% after the pandemic. 

As such, with the economy slowing, and inflation in the negative zone, it is highly unlikely that the bank would hike interest rates to make the rupiah rates more attractive. 

The USD/IDR exchange rate has also jumped because of the ongoing government policies. For example, the strategy to provide free lunches in school and to pregnant mothers costs about $28 billion, leading to a budget deficit in January and February. 

At the same there are concerns that the Indonesian economy may become a victim of Donald Trump’s policies. The two countries do about $38 billion in trade annually, with the US having a trade deficit of over $27.9 billion. This, together with its decision to ban iPhone 16 sales, means that the country may become a focus of Donald Trump.

Indonesia’s economy is also seeing more competition from Chinese companies that are exporting low inflation globally. 

USD/IDR technical analysis

USD/IDR chart by TradingView

The USD to IDR exchange rate has been in a strong uptrend in the past few months, and this week, it moved to a multi-decade high. It has jumped above the crucial resistance level at 16,471.75, its highest swing in June last year. 

The pair has formed an ascending channel and has retested its upper side. It has remained above the 50-week and 25-week moving averages. The MACD and the Relative Strength Index (RSI) have continued rising.

Therefore, the USD/IDR pair will likely continue rising for a while. That surge may see it hit the key resistance point at 17,000.A drop below the support at 16,470 will invalidate the bullish outlook.

The post USD/IDR: Here’s why the Indonesian rupiah is falling appeared first on Invezz

A growing number of international tourists are cancelling or reconsidering travel to the United States, citing a hostile political climate, new visa restrictions, and concerns over arbitrary detentions at immigration checkpoints, a report by The New York Times has said.

The trend comes as the Trump administration moves forward with policies that some foreign officials see as destabilizing trade and diplomatic relations.

A proposed travel ban, which could restrict citizens from up to 43 countries—including Belarus, Cambodia, and St. Lucia—has further fuelled unease among potential visitors.

“So many Americans are looking to escape the tense and toxic atmosphere at home. Why would anyone want to visit, especially right now with all the arbitrary detentions at immigration?” said Mallory Henderson, 53, a marketing consultant in London who usually visits the United States twice a year, but cancelled a trip to visit her brother and niece in Boston this Easter.

Economic impact of declining tourism

The US travel industry, already struggling to recover from the pandemic, faces renewed difficulties.

Even before the change in administration, challenges such as a strong dollar and prolonged visa wait times had kept inbound visitor numbers below pre-pandemic levels.

According to the US Travel Association, foreign visitor spending is now not projected to fully recover until 2026, a target that may become harder to achieve given the latest policy developments.

Travel experts and research firms are adjusting their forecasts downward.

Tourism Economics, which had initially projected a 9% rise in inbound travel this year, revised its estimate in February, now predicting a 5.1% decline.

The downturn equates to an estimated $18 billion loss in travel spending, with Canada leading the drop following new US tariffs.

Canadian travel to the US fell 24% year-over-year in February, forcing airlines such as United and Delta to cut route frequencies.

“The negative sentiment shift is anticipated to be sustained by an evolving mix of Trump administration factors, including geopolitical friction on trade and national security policies, charged rhetoric and adversarial posturing,” said Adam Sacks, the president of Tourism Economics.

Some airlines have already lowered financial forecasts for the year, pointing to decreased demand.

American Airlines and Delta, among others, have acknowledged weaker travel spending, with reductions in flights to Canadian destinations reflecting a broader uncertainty in the travel sector.

Canada, Germany, and the UK issue travel advisories for the US

In response to border security crackdowns and heightened immigration enforcement, several governments, including the UK, Germany, and Canada, have updated their travel advisories for the United States.

Foreign visitors have been warned that holding a valid visa or qualifying for a visa waiver does not guarantee entry, and detentions at US ports of entry have increased.

Recent incidents, such as the reported refusal of a French scientist at the US border after officials searched his phone for critical opinions about the Trump administration, have added to the concerns.

While US authorities have denied any political motivations behind the decision, the case has fuelled further apprehensions about the unpredictability of US immigration policies.

European travellers too rethink plans on Trump’s “sabotage”

Though Canada has been the hardest hit market, European travellers are also rethinking their plans.

Preliminary data from the US National Travel and Tourism Office shows a 1% decline in Western European arrivals in February, a sharp contrast from the 14% increase recorded in the same period last year.

Travel operators in Europe note that while mass cancellations have not yet occurred, interest in alternative destinations is rising.

For some, the decision to cancel US trips is not just about policy but also about principle.

Christoph Bartel, a German resident of Norway, had planned a summer trip to Arizona’s national parks but cancelled following the Trump administration’s decision to fire national park employees and roll back environmental protections.

“It does not feel right to support the American economy when the president is causing so much sabotage,” said Bartel. “We will go to Canada or Mexico instead.”

Britain, another major source of visitors to the US, is also seeing a split in travel behaviour.

Some frequent travellers remain undeterred, while others actively seek alternatives.

Alan Wilson, managing director of the UK-based Bon Voyage Travel & Tours, noted a 5% drop in US bookings this year.

Cost factors, including high hotel prices and tipping expectations, further deter British tourists.

“British travellers absolutely hate the 20% tipping culture and how America always has its hand out for the next gratuity,” Wilson said. “They would rather pay the money upfront.”

US tourism hubs brace for slowdown

In major destinations like New York, California, and Florida, small travel businesses are already feeling the effects.

Luke Miller, owner of Real New York Tours, reported widespread cancellations, particularly from Canadian visitors.

“I just had 20 busloads of seniors cancel their upcoming tours. That’s thousands of dollars in losses for my small business,” said Miller, who has seen bookings decline as far ahead as the winter holiday season.

Recognizing the challenge, tourism boards in New York and California have ramped up marketing efforts to reassure global visitors.

Visit California revised its 2025 visitor spending projections downward to $160 billion from $166 billion, factoring in the slowdown in international arrivals and the impact of January’s wildfires.

Caroline Beteta, president of Visit California, emphasized the state’s continued appeal, saying, “Thanks to California’s strong brand on the global stage, international visitors continue to show a strong affinity for the Golden State.”

New York City, facing similar headwinds, is promoting budget-friendly travel to encourage more visitors.

“This is an excellent opportunity to highlight other boroughs beyond Manhattan that offer award-winning culinary, arts, and cultural experiences,” said Julie Coker, president of New York City Tourism + Conventions.

Despite these efforts, many in the industry remain wary. Miller of Real New York Tours fears that without a rebound in bookings, his business may not survive the downturn.

“The reality is that we are being hit the hardest and might not survive,” he said.

The post Turning away: how Trump’s policies are sparking a drop in international travel to the US appeared first on Invezz

GameStop, a household name in video game retail, has long been a focal point for financial intrigue, from its volatile stock movements to its embrace of meme culture.

Beyond the GameStop stock, a cryptocurrency known as the GameStop token, often referred to as the GME token or GME coin, has carved its own path in the digital asset world.

The GameStop token price, much like the GameStop stock price, has seen dramatic ups and downs, captivating investors who track both the GME coin price and the broader GameStop price narrative.

GameStop to add BTC to its reserves and invest in stablecoins

The rise of the GME token began gaining traction in 2024, fueled by social media buzz and retail investor fervor.

Figures like Roaring Kitty, a key influencer in the GameStop stock saga, indirectly amplified interest in the GameStop token as well.

By January 2024, the GME token price soared to an all-time high of $0.03201, a peak that showcased the speculative excitement around this digital asset.

However, the momentum faded quickly, and the GameStop token price tumbled, losing 93% of its value by early 2025.

Meanwhile, GameStop’s core business soldiered on, relying on its GameStop trade in program, where customers swap used games for credit, and its GameStop credit card, offering rewards to loyal shoppers, to maintain its foothold amid a challenging retail landscape.

But everything changed on March 25, 2025, when the GameStop board announced it would add Bitcoin (BTC) to its treasury reserves, a move aimed at diversifying its financial portfolio and signaling a leap into the digital future.

With nearly $4.8 billion in cash reserves, GameStop plans to leverage this capital, along with potential debt and equity sales, to acquire BTC.

The announcement didn’t stop there—GameStop also revealed intentions to invest in stablecoins, reinforcing its commitment to cryptocurrencies.

This shift sent ripples through the markets, impacting both the GameStop stock price and the GME token price in profound ways.

The impact of GameStop’s Bitcoin reserve announcement

The significance of GameStop’s Bitcoin reserve decision was hard to miss.

By aligning itself with pioneers like Strategy, formerly MicroStrategy, and Tesla, GameStop positioned itself as a forward-thinking player in corporate finance.

The timing amplified its impact, coinciding with growing momentum around the US Strategic Bitcoin Reserve, an initiative championed by President Donald Trump.

Investors saw this as a powerful endorsement of Bitcoin’s staying power, boosting confidence not just in the GameStop stock but also in the GameStop token.

The GME coin, long tied to the company’s broader narrative, stood to benefit from this newfound credibility.

The market reaction was swift and decisive. Within hours of the announcement, the GameStop token price surged 34%, climbing to $0.002365 with a market cap of $16.28 million, according to data on CoinMarketCap.

The trading volume for the GME token also spiked by 82%, hitting $9.18 million, a clear sign of renewed investor enthusiasm.

Notably, while this rally didn’t fully reverse the steep losses from its 2024 peak, it marked a critical turning point for the GME coin price, offering hope to those who’d watched the GameStop token languish.

Trading at $0.0027268 at press time, the GME token price has recovered all its losses since February 1, 2025.

GameStop token price by TradingView

The GameStop stock price echoed this optimism, jumping over 8% in extended trading, highlighting the tight link between the company’s traditional equity and its digital offspring.

Looking ahead, the future of the GameStop token remains a hot topic.

The Bitcoin reserve announcement has undeniably breathed new life into the GME coin, drawing fresh capital and attention.

If GameStop executes this strategy well, leveraging its cash reserves and perhaps its GameStop credit card or GameStop game trade in programs to bolster its brand, the GME token price could see further upside.

Positive shifts in the crypto market, like increased adoption or clearer regulations, might also prop up the GameStop token price.

However, risks loom large—the GME token’s history of volatility, driven more by sentiment than fundamentals, could trigger sharp pullbacks, especially if GameStop’s retail struggles persist.

Also, the 14-day RSI indicator is heading into the overbought region, signalling a possible pullback.

The post GameStop token rebounds in 2025 following Bitcoin reserve reveal appeared first on Invezz

Dollar Tree Inc (NASDAQ: DLTR) is inching up this morning after confirming the sale of “Family Dollar” that has long been a burden on its overall financials.

The discount retailer reported a wider-than-expected loss for its fiscal Q4 today, but investors are focusing more on the Family Dollar news.

“It’s absolutely what every investor could possibly have wanted,” according to Karen Short, head of consumer research at Melius.

Dollar Tree stock is currently down about 10% versus its year-to-date high.

Family Dollar was a burden for DLTR financials

Brigade Capital and Macellum Capital have agreed to take over Family Dollar for just over $1.0 billion, which is significant capital that Dollar Tree could put to use in pursuit of future growth.

Plus, since the Family Dollar stores weren’t really profitable, unloading the chain could actually result in upward revisions on earnings.  

According to Karen Short, the Family Dollar sale is significant for DLTR since “fears were they’d have to close all stores or they’d have to pay to have someone take the stores.”

That would have resulted in significant financial burden for Dollar Tree. Note that FD weakness has already slashed DLTR shares into half over the past 12 months.

Dollar Tree’s balance sheet and ROIC to improve

Short called the $1.0 billion deal that Dollar Tree announced with the two asset managers today a “miracle” in her interview with CNBC on Wednesday.

Investors are cheering the news because getting rid of Family Dollar will improve both balance sheet and return on invested capital (ROIC) tied to DLTR, she added.

Dollar Tree banner has always been a very high ROIC business and has always been a very steady performer as it related to operating margins. So, it’s absolutely a win-win.

Additionally, the Melius’ expert is confident that Dollar Tree’s consumer is doing fairly well amidst the recently brewing fears of a recession ahead.

Should you buy Dollar Tree stock today?

It’s worth mentioning that Dollar Tree could benefit if the US economy does indeed slide into a recession since challenging times tend to make consumers more price-sensitive.

For the full year, the chain of discount retail stores guided for up to $19.1 billion in sales from continuing operations on Wednesday. Adjusted earnings on a per-share basis are seen falling between $5 and $5.5 in fiscal 2025.

“With the sale of Family Dollar set to close later this year, we’ll be able to fully dedicate ourselves to Dollar Tree’s long-term growth, profitability and returns on capital,” said Mike Creedon, the company’s chief executive in a press release today.

Note that Wall Street currently sees upside in DLTR stock to $80 on average that indicates potential upside of about 15% from current levels.

The post Explained: why Dollar Tree investors should cheer the Family Dollar sale appeared first on Invezz

A growing sense of caution is sweeping through Wall Street, with Barclays becoming the latest major bank to temper its expectations for the stock market following a volatile start to the year.

Concerns about tariffs, weakening economic data, and the increasing possibility of a recession are prompting analysts to reassess their outlook for 2025.

Barclays strategist Venu Krishna slashed his 2025 S&P 500 (^GSPC) price target to 5,900 from a previous estimate of 6,600, citing the potential impact of tariffs and what he described as “deteriorating” economic data.

The S&P 500 currently trades around 5,822, down approximately 2.3% year to date.

The investment bank’s revised forecast reflects an expectation that S&P 500 companies will face reduced earnings due in large part to tariffs imposed by the Trump administration.

Krishna cut his views on the economically sensitive Consumer Discretionary and Industrials sectors to Negative from Neutral.

Krishna wrote:

We think it will be tough for stocks to work versus deteriorating consumer sentiment, lower growth, higher inflation and tariffs. Industrials look expensive versus history and are exposed to both trade policy and tenuous manufacturing PMI amid factories front-running tariffs and government contract cancellations.

Amidst the broader caution, Barclays identified a potential bright spot, upgrading its outlook on Financials to Positive from Neutral.

The firm anticipates that the financial sector could benefit from deregulation once the uncertainties surrounding tariffs are resolved.

Joining the chorus: Wall Street’s growing concerns

Barclays’ decision to lower its S&P 500 price target follows a similar move by Goldman Sachs earlier this month, signaling a broader shift in sentiment on Wall Street.

This increased caution comes as economic anxieties continue to rise.

JPMorgan strategist Bruce Kasman raised eyebrows last week by calling out a 40% recession probability for this year.

That is the second-highest on Wall Street. Goldman Sachs’ chief economist Jan Hatzius said he thinks the market will be negatively surprised by tariffs should they go into effect on April 2 as the Trump administration suggested.

The wobbly economy also continues to play out in the data.

The weak data shows spending at US retailers last month was much weaker than expected, per the latest retail sales report.

Big companies Delta (DAL), FedEx (FDX), and Nike (NKE) have warned on near-term demand trends this month.

“We have to be realistic,” former director of the National Economic Council and current IBM vice chair Gary Cohn said on the Opening Bid podcast.

Gary Cohn, a former director of the National Economic Council said:

Ambiguity is the No. 1 enemy of a market. When a company creates ambiguity in their earnings profile, in their growth profile, in their business model, the market will punish that stock. When politicians, legislators create ambiguity in the way that taxes are going to work, the way that capital gains are going to work, the way that they’re going impose tariffs, they create ambiguity to a market and the market as a whole reprices.

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