Business and Finance News - 6.17.24

Adobe Shares Soar 15% After Earnings Beat Estimates, AI Integration Cited for Revenue Surge

• Adobe's stock jumped 15% on Friday, its biggest rally since March 2020.

• Adobe reported adjusted earnings per share of $4.48, beating estimates of $4.39.

• Revenue increased 10% year-over-year to $5.31 billion, exceeding estimates of $5.29 billion.

• CEO Shantanu Narayen credited strong growth in Creative Cloud, Document Cloud, and Experience Cloud.

• New annualized recurring revenue for Digital Media was $487 million, surpassing estimates of $437.4 million.

• Analysts highlighted Adobe's successful integration of AI across its product portfolio.

• Despite the rally, Adobe shares are down 12% for the year, closing at $525.31.

*Adobe Inc. is a multinational software company known for its innovative software products and services, primarily focused on creative and digital media solutions.

FAA Probes Counterfeit Titanium in Boeing and Airbus Planes; Safety Tests and Duopoly Scrutinized

• FAA to investigate allegations of counterfeit titanium in Boeing (BA) and Airbus (AIR) planes.

• Spirit Aerosystems identified the counterfeit titanium issue and quarantined suspect parts.

• Over 1,000 tests confirmed the affected material's mechanical and metallurgical properties.

• Boeing disclosed the issue voluntarily to the FAA, ensuring fleet safety.

• Airbus confirmed awareness and conducted tests, maintaining aircraft airworthiness.

• Boeing and Airbus control 100% of the commercial airline market, forming a duopoly.

• FAA also investigating a Boeing 737 Max incident and Dreamliner inspection compliance.

*Boeing is a leading American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.

*Airbus is a major European multinational aerospace corporation that designs, manufactures, and sells civil and military aerospace products worldwide.

Hasbro's Digital-Gaming Potential Sparks Optimism Amid Weak Toy Demand; BofA Upgrades Stock to Buy

• Hasbro (HAS) has faced weaker toy demand, leading to layoffs and declining sales.

• Analysts believe Hasbro's digital-gaming business could drive a rebound next year.

• BofA upgraded Hasbro shares to buy from neutral, raising the price target to $80.

• Monopoly Go! video game is expected to generate $36 million in quarterly operating profit.

• Retailers are starting to restock new toys, indicating signs of recovery.

• Hasbro's first-quarter sales for digital gaming and Wizards of the Coast rose 7%.

• Shares of Hasbro are up 20.5% so far this year.

*Hasbro, Inc. is a global play and entertainment company known for its wide range of toys, games, and media properties.

OpenAI Considering Shift to Full For-Profit Model, CEO Altman Adds Key Board Members Amid $86B Valuation

• OpenAI is considering shifting from a capped-profit to an unfettered for-profit model.

• CEO Sam Altman allegedly discussed this shift with shareholders during the week of June 10.

• The shift would result in OpenAI’s nonprofit board losing control of the company.

• OpenAI has a private valuation of approximately $86 billion.

• The capped-profit structure was initially meant to incentivize AGI research while maintaining the company's vision.

• CEO Sam Altman has added new board members, including Sue Desmond-Hellmann and Nicole Seligman.

• Retired U.S. Army general and former NSA director Paul Nakasone was also added to the board.

*OpenAI is an artificial intelligence research organization and company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity.

"Inside Out 2" Shatters Records with $155M Domestic, $295M Global Opening, Boasts Stellar Reviews and Cast

• Pixar’s (DIS) "Inside Out 2" opened with $155 million domestically, surpassing expectations.

• The sequel earned $295 million globally, setting a record for an animated film in like-for-like markets.

• This marks the second-biggest animated opening of all time in North America.

• Internationally, it broke records in Latin America, including $30.2 million in Mexico.

• The film scored a 93% critics rating on Rotten Tomatoes and a 96% audience score.

• "Inside Out 2" features new emotions and a star-studded voice cast led by Amy Poehler.

• It earned $13 million in Thursday previews, signaling a strong opening weekend.

*Pixar Animation Studios, commonly referred to as Pixar, is a renowned American film studio, owned by The Walt Disney Company, specializing in computer-animated films.

A Few Companies Expected to Report Earnings This Week…

• Lennar (LEN) is expected to report on Today.

• KB Home (KBH) is expected to report on Tuesday.

• Accenture (ACN) is expected to report on Thursday.

-Lennar Corporation is a prominent homebuilder and real estate company in the United States.

-KB Home is a well-known homebuilding company in the United States.

-Accenture is a global professional services company that provides a wide range of services and solutions in strategy, consulting, digital, technology, and operations.

Here’s how the markets closed yesterday:

• Dow Jones: 38,589.16 -57.94 (-0.15%)

• S&P 500: 5,431.60 -2.14 (-0.04%)

• Nasdaq: 17,688.88 +21.32 (+0.12%)

• Bitcoin (BTC): $66,441.04 (2:00PM PST on 6/16/24)

• Ethereum (ETH): $3,594.92 (2:00PM PST on 6/16/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.289T): 442.57 +0.99 (+0.22%)

• Apple (3.258T): 212.49 -1.75 (-0.82%)

• Nvidia (3.25T): 131.88 +2.27 (+1.75%)

• Alphabet (2.204T): 178.37 +1.63 (+0.92%)

• Amazon (1.911T): 183.66 -0.17 (-0.09%)

• Meta Platforms (1.279T): 504.16 +0.56 (+0.11%)