Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) reported financial results for the fourth quarter after the market close on Tuesday. Here&#8217;s a look at the key metrics <a href="https://www.benzinga.com/pressreleases/25/01/g42989539/amd-to-report-fiscal-fourth-quarter-and-full-year-2024-financial-results">from the quarter</a>.



Q4 Earnings: AMD reported fourth-quarter revenue of $7.66 billion, beating&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst estimates</a>&nbsp;of $7.53 billion. The chipmaker reported fourth-quarter adjusted earnings of $1.09 per share, beating analyst estimates of $1.08 per share, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 12% year-over-year, led by Data Center revenue of $3.9 billion, which was up 69% year-over-year. Client segment revenue totaled $2.3 billion, up 58% year-over-year. Gaming revenue fell 59% year-over-year to $563 million and Embedded revenue declined 13% year-over-year to $923 million. 



&#8220;2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,&#8221; said&nbsp;Lisa Su, chair and CEO of AMD. &#8220;Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than&nbsp;$5 billion&nbsp;of AMD Instinct accelerator revenue.&#8221; 



See Also: <a href="https://www.benzinga.com/25/02/43469715/amd-vs-qualcomm-a-semiconductor-showdown-ahead-of-earnings">AMD Vs. Qualcomm: Semiconductor Showdown Ahead Of Earnings</a>



Guidance: AMD expects first-quarter revenue of approximately $7.1 billion, plus or minus $300 million. The company's revenue guidance represents year-over-year growth of approximately 30% at the midpoint.



&#8220;Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing,&#8221; Su said.



AMD executives will further discuss the company's quarterly results on a call with analysts and investors at 5 p.m. ET.



AMD Price Action: <a href="http://benzinga.com/quote/amd">AMD shares</a> were down 4.73% after hours, trading at $119.50 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/25/02/43476012/trumps-canada-tariffs-bffs-for-decades-what-went-wrong-can-it-really-be-about-fentanyl-unlikely">Trump&#8217;s Canada Tariffs: BFFs For Decades, What Went Wrong? Can It Really Be About Fentanyl?</a></li>
</ul>



Photo: Shutterstock.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Advanced Micro Devices Q4 2024 Earnings Call &#x7C; $AMD" width="500" height="281" src="https://www.youtube.com/embed/NLT2VCLFg1s?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>

Earnings

News

Guidance

After-Hours Center

Movers

Tech

AMD Q4 Earnings: Revenue Beat, EPS Beat, Data Center Up 69%, 'Clear Opportunities' For Continued Growth And More

Tech giant Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) reported fourth-quarter financial results after the <a href="https://www.benzinga.com/earnings">market close Tuesday.</a>



Here are the key highlights.



What Happened: Alphabet announced fourth-quarter total revenue of $96.5 billion, up 12% year-over-year. The revenue total missed a Street consensus estimate of $96.6 billion, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020425&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company reported fourth-quarter earnings per share of $2.15, beating a Street consensus estimate of $2.12.



Alphabet said it saw "robust momentum across the business." Google Services revenues were up 10% year-over-year to $84.1 billion, with strong momentum for Google Search and YouTube ads, the company said.



Google Cloud revenue was up 30% year-over-year to $12 billion.



Revenue was broken down as follows in the fourth quarter, with the prior year&#8217;s total in parentheses:



<ul>
<li>Google Search: $54 billion ($48 billion)</li>



<li>YouTube ads: $10.5 billion ($9.2 billion)</li>



<li>Google Network: $8 billion ($8.3 billion)</li>



<li>Total Google Advertising: $72.5 billion ($65.5 billion)</li>
</ul>



The company's Google subscriptions, platforms and devices revenue was $11.6 billion compared to $10.8 billion in last year's fourth quarter.



Adding those items together makes up Google Services, which had revenue of $84.1 billion, up from $76.3 billion in last year's fourth quarter.



Google Cloud revenue was $12 billion compared to $9.2 billion in last year's fourth quarter.



Full fiscal year revenue was $350 billion, up 14% year-over-year.



Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/25/02/43451550/alphabet-q4-earnings-preview-ai-youtube-doj-case-key-items-to-watch-as-company-goes-for-eight-consecutive-revenue-eps-beat">Alphabet Q4 Earnings Preview: AI, YouTube, DOJ Case Key Items To Watch</a>



What's Next: Alphabet CEO Sundar Pichai said the fourth quarter was driven by leadership in AI and momentum across the business.



"We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies," Pichai said.



Pichai said the company is seeing stronger customer demand for AI-powered Google Cloud and YouTube continues to be a leader in streaming watchtime.



"Together, Cloud and YouTube exited 2024 at an annual run rate of $110 billion. Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core business."



The company said it expects to have capital expenditures of $75 billion in 2025.



GOOGL Price Action: Alphabet stock is down 7% to $191.90 in after-hours trading versus a 52-week trading range of $130.66 to $207.05. Alphabet shares hit new all-time highs earlier in Tuesday's intraday trading session. Shares closed 2.6% higher at $206.38 on Tuesday.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43441911/alphabets-q4-earnings-bullish-trend-just-getting-started" target="_blank" rel="noreferrer noopener">Alphabet Q4 Earnings Preview: Bullish Trend Just Getting Started?</a></li>
</ul>



Photo via Shutterstock.

Equities

Markets

Trading Ideas

GOOG

GOOGL

Alphabet Q4 Earnings Highlights: AI, Cloud, YouTube Momentum Continues, $75 Billion CapEx Guidance Spooks Investors

The Kansas City Chiefs will attempt to be the first NFL team to win three straight Super Bowls when they take on the Philadelphia Eagles in <a href="https://www.benzinga.com/general/sports/25/01/43317260/kansas-city-chiefs-help-cbs-break-afc-championship-record-will-super-bowl-viewership-hit-new-highs">Super Bowl LIX on Sunday.</a>



While the Chiefs players, owners and sports bettors could profit from a Chiefs three-peat, an NBA legend could be one of the biggest winners.



What Happened: For the majority of the 2024 NFL season, the Kansas City Chiefs have been the favorite to win a <a href="https://www.benzinga.com/general/entertainment/24/02/37080383/three-peat-super-bowl-lix-odds-kansas-city-chiefs-back-to-back-to-back-payout">third straight Super Bowl.</a>



The team finished with a 15-2 record and earned the number one seed in the AFC. While the team's regular season games were often close in score, the team found ways to win.



A third straight Super Bowl win would make the Chiefs the first in NFL history to accomplish the feat, something that could help legendary NBA coach/player and team executive Pat Riley profit nicely.



As reported by <a href="https://www.cllct.com/sports-collectibles/memorabilia/nfl-strikes-deal-with-pat-riley-to-use-three-peat-if-chiefs-win">cllct</a>, the Chiefs have agreed to a deal with Riley to utilize the trademark "Three-Peat" if the team wins. Riley trademarked the phrase back in 1988.



Riley now has rights to use the phrase on apparel, beverages, backpacks and jewelry. Riley's trademark attorney John Aldrich told cllct the royalties from the trademark would go to the Pat Riley Family Foundation.



An NFL spokesperson told cllct that the deal would be between the Chiefs and Riley and not with the NFL.



Potential companies that have NFL deals and would use "Three-Peat" could include Fanatics, New Era, Riddell and Wilson, which is owned by Amer Sports (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>).



A licensing industry source told cllct that Riley will likely make a 10% to 15% royalty on the wholesale price of items, which would likely mean $1.50 to $2.25 per item.



Read Also:<a href="https://www.benzinga.com/general/sports/25/01/43324031/super-bowl-lix-commercials-hit-record-8-million-how-fox-corporation-can-win-from-nfl-championship"> Super Bowl LIX Commercials Hit Record $8 Million: How Fox Corporation Can Win From NFL Championship</a>



Why It's Important: Riley filed for the "Three Peat" trademark at the start of the 1988-89 season as the Los Angeles Lakers were hoping to win a third straight NBA title. Riley was the coach of the Lakers at the time.



The Lakers made it to the NBA Finals that season, but lost to the Detroit Pistons and missed out on Riley using his own trademark.



Several years later, the Chicago Bulls won three straight titles with Michael Jordan, the first NBA team to accomplish the feat since the Boston Celtics in 1966. Riley profited from the Bulls accomplishment. The Bull also won three straight from 1996 to 1998.



In Major League Baseball, the New York Yankees won three straight titles from 1998 through 2000 and used Riley's trademarked phrase. The Lakers were able to use the phrase after they accomplished the feat from 2000 to 2022, although Riley was no longer with the team.



Riley has been the president of the Miami Heat since 1995, where he was also the head coach of the team from 1995 to 2003 and 2005 to 2008. Riley has one NBA championship as a player and eight more as a coach or team executive. 



The Chiefs agreeing to terms with Riley ahead of time could turn out to be bad luck. USC college football fans tried to trademark "Three-Pete," a tribute to coach Pete Carroll. The trademark office rejected the filing on account of Riley's existing trademark and USC lost to Texas in the championship game.



Sportsbook DraftKings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>) currently lists the Chiefs as the favorite in Super Bowl LIX at -1.5 and moneyline odds of -120.



The Chiefs have won three Super Bowls in five years prior to the 2024 NFL season and are in the conversation of top NFL dynasties. Becoming the first three-peat winners could cement their legendary status even further.



Win or lose, the team is already the first to win two Super Bowls and make it to a Super Bowl the following season.



If the Chiefs win on Sunday, they may want to start hitting up the trademark owner of "Four Peat," as they are the current betting favorite to win next year's Super Bowl as well.



DraftKings lists the Chiefs at +600, followed by the Baltimore Ravens at +650, Eagles at +700, Buffalo Bills at +700 and Detroit Lions at +950.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/25/01/42975629/15-years-ago-mark-cuban-bought-the-trademark-for-the-city-of-champions-for-38000-a-genius-move-that-still-earns-him-royalties-today">15 Years Ago, Mark Cuban Bought The Trademark For The &#8216;City Of Champions&#8217; For $38,000 – A Genius Move That Still Earns Him Royalties Today</a></li>
</ul>



Photo: Shutterstock

Sports Betting

Sports

DKNG

Chiefs Chase Historic Super Bowl Three-Peat — And NBA Legend Stands To Gain

The Feb. 1 White House Fact Sheet lists <a href="https://www.benzinga.com/topic/fentanyl">fentanyl as the top reason</a> for President Donald Trump's tariffs on Mexico, Canada, and China, citing the &#8216;extraordinary threat posed by illegal aliens and drugs&#8217; as a &#8216;national emergency.'&#8221;



The fact <a href="https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/">sheet </a>refers to "Canada's heightened domestic production of fentanyl, and its growing footprint within international narcotics distribution." What?



<h2 class="wp-block-heading">Canadian Prime Minister Begs To Differ</h2>



Canada&#8217;s PM Justin Trudeau <a href="https://www.facebook.com/watch/?v=1270144720731464">pointed out</a> in a press conference shortly after <a href="https://www.benzinga.com/25/02/43418661/trump-announces-new-tariffs-on-goods-from-canada-mexico-and-china-will-go-into-effect-from-feb-1">Trump's 25% tariffs were announced</a> that less than 1% of the deadly opioid fentanyl comes through the Canadian-US border.



The U.S. Customs and Border Patrol also <a href="https://www.cbp.gov/border-security/frontline-against-fentanyl">confirms</a> that only about 0.2% of all seizures of fentanyl entering the U.S. are made at the Canadian border. Nearly all the rest confiscated comes from Mexico.



"But hearing concerns from both Canadians and Americans, including the American President himself, we&#8217;re taking action," Trudeau said. "We launched a $1.3 billion dollar border plan that is already showing results, because we too are devastated by the scourge that is fentanyl."



On Monday, the U.S. and Canada <a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days">reached an agreement</a> to pause the tariffs&nbsp;<a href="https://www.benzinga.com/topic/tariffs" target="_blank" rel="noreferrer noopener">"for at least 30 days,"</a> Trudeau&nbsp;announced following a phone call with Trump.



<h2 class="wp-block-heading">BFFs For Decades: What Went Wrong?</h2>



Trump's tariffs on Canada, <a href="https://www.wsj.com/opinion/donald-trump-tariffs-25-percent-mexico-canada-trade-economy-84476fb2">called</a> "the dumbest trade war in history" by The Wall Street Journal, appear to be a pressure tactic. If Canada refuses Trump's demands, Trump could escalate with more tariffs, sanctions and even a travel ban, not unlike what he threatened to do when Colombian President Gustavo Petro initially balked at Trump's recent demand to allow U.S. military flights to land there with illegal immigrants. Trump had threatened Colombia with 50% tariffs before a <a href="https://www.benzinga.com/news/25/01/43220754/trump-withdraws-50-tariff-threat-on-colombian-imports-after-reaching-deportation-agreement">deal was reached</a>.



<h2 class="wp-block-heading">World's Friendliest Trading Partners</h2>



The U.S. and Canada have one of the largest bilateral commercial relationships in the world, including highly integrated energy and automotive markets, <a href="https://crsreports.congress.gov/product/pdf/IF/IF12595">according</a> to the Congressional Research Service



Five days before Trump was even sworn in, Canada's former Prime Minister Stephen Harper <a href="https://energynow.ca/2025/01/watch-former-prime-minister-stephen-harper-argues-that-when-it-comes-to-oil-and-gas-canada-actually-subsidizes-the-united-states/">told</a> EnergyNow Media that Trump's claim the U.S. subsidizes Canada's trade was not the case. He also noted that half of the U.S.'s oil comes from Canada which has a trade surplus because the U.S. buys "so much of our oil and gas."



<h2 class="wp-block-heading">Why The Breakup? It's Not You, It's Me</h2>



So, if fentanyl at the border isn't really causing the breakup, could it be Canada <a href="https://www.benzinga.com/news/events/25/01/42860583/trump-floats-canada-as-51st-us-state-says-hes-ready-to-use-economic-force-to-achieve-it">rejecting Trump's proposal </a>to become the 51st state, promising they could do great things together?



Whatever it is, citizens on both sides of the&nbsp;longest international border in the world are hoping they make up soon.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/markets/25/02/43423087/canada-retaliates-against-trumps-tariffs-with-countermeasures-25-tariffs-on-107-billion-of-us-made-goods">Canada Retaliates Against Trump&#8217;s Tariffs With Countermeasures: 25% Tariffs On $107 Billion of US-Made Goods</a></li>
</ul>



Photo: Shutterstock

Cannabis

Government

Politics

Trump's Canada Tariffs: BFFs For Decades, What Went Wrong? Can It Really Be About Fentanyl?

Automotive giant Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) could highlight how the new White House administration is changing focus on business lines when the company reports fourth-quarter financial results <a href="https://www.benzinga.com/earnings">after market close Wednesday.</a>



Earnings Estimates: Analysts expect Ford to report fourth-quarter revenue of $43.25 billion, up from $43.21 billion in last year's fourth quarter according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020425&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in two straight quarters and eight of the past 10 quarters.



Analysts expect Ford to report earnings per share of 33 cents, up from 29 cents per share in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in one straight quarter and five of the past 10 quarters overall.



Read Also: <a href="https://www.benzinga.com/news/earnings/24/10/41587260/ford-q3-earnings-revenue-beat-eps-beat-ev-sales-down-33-updated-fy-outlook-shares-slide">Ford Q3 Earnings: Revenue Beat, EPS Beat, EV Sales Down 33%, Updated Outlook, Shares Slide</a>



Key Items to Watch: With Ford's earnings report and commentary, most eyes will be on how President Donald Trump is impacting the company's decisions.



The<a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company"> proposed removal of </a>a $7,500 federal tax credit for electric vehicles could be bad news for companies like Ford that have transitioned to making more EVs.



Ford currently loses money on its electric vehicle segment and the removal of the tax credits could see fewer people buying EVs or Ford needing to offer additional incentives.



In the third quarter, Ford Model e sales were down 33% year-over-year, while the segment had an EBIT loss of $1.2 billion.



Ford said at the time that it anticipated the Model e segment to have a full-year EBIT loss of $5 billion, compared to EBIT profits of $9 billion for Ford Pro and $5 billion for Ford Blue.



The automaker had strong EV sales in the <a href="https://www.benzinga.com/trading-ideas/25/01/42978236/us-electric-vehicle-sales-hit-record-1-3-million-units-in-2024-despite-tesla-declines-top-10-bestselling-models-list">U.S. in 2024</a> with a report saying the Mach-E ranked third with 51,745 units sold, up 26.9% year-over-year. The F-150 Lightning ranked sixth in the U.S. for EVs with 33,510 unit sales, up 38.7%. Both vehicles moved up the top 10 list with the Mach-E going from fourth to third and the F-150 Lightning going from eighth to sixth.



Ford had the second-highest market share in the U.S. for EVs at 7.5% in 2024, trailing only Tesla (48.7%) and ranking ahead of third place Chevrolet (5.2%).



Along with the potential end of the EV federal tax credit proposed by Trump, the company is also at risk of seeing its profit margins hurt if the president goes through with threats of<a href="https://www.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors"> tariffs on Mexico and Canada.</a>



Ford produces vehicles and vehicle parts in both countries as a way to make its vehicles more affordable. If tariffs are ultimately put on both countries, Ford could be forced to raise its vehicle prices for consumers on some models or take a hit on its profit margins.



F Price Action: Ford stock is up 2.58% to $10.15 on Tuesday versus a 52-week trading range of $9.49 to $14.85. Ford stock is down 13% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42688941/are-us-vehicles-under-30000-a-thing-of-the-past-trumps-mexico-tariff-plans-could-change-auto-market">Are Sub-$30,000 Cars Disappearing? Trump&#8217;s Tariff Plans Could Reshape US Auto Market</a></li>
</ul>



Photo: Shutterstock

Previews

Global

Ford Q4 Earnings Preview: EV Tax Credit, Tariffs Could Reshape Auto Giant's Future

Americans' coffee addiction is about to get a lot more expensive. With 66% of the population drinking coffee daily and an average intake of 2-3 cups per person, the U.S. is the <a href="https://www.benzinga.com/topic/coffee">world&#8217;s largest coffee market. </a>



Yet, a fresh jolt of bad news is hitting consumers: coffee prices have surged to fresh records, surpassing levels last seen in 1977, and the rally isn&#8217;t slowing down.



Coffee has become the best-performing asset of 2025 so far, soaring 20% in just over a month—outpacing every major stock market index and even Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).



Arabica coffee futures have now climbed for 10 consecutive sessions through Feb. 4, nearing what could be the longest winning streak ever recorded. 



On Tuesday, Arabica coffee traded at $3.90 per pound, marking a staggering 100% increase from a year ago. This surge threatens to percolate through the entire supply chain, raising concerns that consumers could soon face skyrocketing inflation on their daily coffee cups. 



With demand unwavering and supply chains under pressure, is a $10 cup of coffee on the horizon? And which companies can benefit from it?



<h3 class="wp-block-heading">Chart: Coffee Price Skyrockets To Record Highs </h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1024x503.png" alt="" class="wp-image-765306" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/04122554/image-26.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Coffee Retail Prices Set To Surge Amid Market Disruption</h3>



&#8220;I have a prediction about coffee, and I wish I weren&#8217;t so confident about that,&#8221; said Bloomberg&#8217;s Javier Blas in a video published on X Monday. 



His outlook? Double-digit price hikes for a cup of coffee in the coming months. The main culprit behind the surge is a severe production shortfall in Brazil and Vietnam, the world's top two coffee producers, where bad weather and climate change have damaged crops. 



In its first estimate for the 2025/26 season, Brazil's government crop forecasting agency projected a 4.4% year-over-year decline in coffee output, hitting a three-year low of 51.81 million bags. 



Meanwhile, Blas warns that global stockpiles could fall to their second-lowest level in 65 years as supply struggles to keep pace with demand.



&#8220;Global stockpiles [of coffee] could fall at the second-lowest level in 65 years,&#8221; Blas said. 



According to Blas, the coffee supply chain has been in deficit for four consecutive years, with demand exceeding supply by 15 to 20 million bags annually, leading to a sharp drain in reserves. 



Adding to the crisis are geopolitical tensions tied to Donald Trump's trade tariffs, which have rattled markets. 



Colombia, the world's third-largest coffee producer, faces potential U.S. tariffs amid disputes over illegal migration, further tightening an already stretched coffee market. "Just the threat of tariffs is enough to scare the market," Blas stated. 



Bottom line, the expert forecasts a 20-25% increase in retail coffee prices within the next few months—making that morning cup significantly more expensive.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Coffee prices are surging and your daily cup is about to get much more expensive. <a href="https://twitter.com/JavierBlas?ref_src=twsrc%5Etfw">@JavierBlas</a> explains why &#x1f3a5; <a href="https://t.co/OyBF01OsYB">pic.twitter.com/OyBF01OsYB</a>&mdash; Bloomberg Opinion (@opinion) <a href="https://twitter.com/opinion/status/1886388355878768941?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Higher Coffee Prices: Are You a Price Taker or a Price Setter?</h3>



The skyrocketing cost of coffee is set to reshape the industry, testing which companies can pass rising costs onto consumers and which will see their margins squeezed. 



As coffee futures surge to record highs, businesses from coffee chains to fast food giants are under pressure to adjust pricing strategies—or risk profitability declines.



Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) has recently been a standout performer, with shares rallying 27% since the December 2024 lows, reaching levels last seen in May 2023.



&#8220;[Starbucks] has introduced a new pricing architecture,&#8221; Goldman Sachs analyst Christine Cho said after the world&#8217;s largest coffee chain published quarterly results last week.



This might potentially indicate investor confidence in Starbucks&#8217; ability to raise prices without losing customers. With a loyal customer base and a premium brand, Starbucks might be positioned as a price setter in the coffee market.



McDonald's Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>) could struggle to pass on higher coffee costs. 



While not exclusively a coffee chain, McCafé is a significant revenue driver. Yet, McDonald&#8217;s core customer base is highly price-sensitive. Unlike Starbucks, McDonald&#8217;s might have less flexibility to raise coffee prices without impacting sales. Investors seem to agree—MCD shares have fallen nearly 10% since October 2024.



Restaurant Brands International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QSR#NYSE">QSR</a>), the owner of Tim Hortons, one of the largest coffee chains in Canada, is another company feeling the heat. With shares down 25% since March 2024, the stock&#8217;s performance suggests concerns over its ability to manage higher input costs. Investors will be watching closely when QSR reports fourth-quarter earnings on Feb. 12, 2025.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/money/best-coffee-stocks">Top Performing Coffee Stocks</a></li>
</ul>



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Coffee Prices Soar Over 100%, Near Historic Rally As Inflation Percolates Through Supply Chain

U.S. stocks advanced midday Tuesday, demonstrating resilience despite escalating geopolitical tensions and trade uncertainties between the <a href="https://www.benzinga.com/news/econ-s">world&#8217;s two largest economies.</a>



China responded to President Donald Trump&#8216;s 10% import tariff with targeted countermeasures, including restrictions on key mineral exports to the U.S. and tariffs on American energy products.



Beijing is raising tariffs by 10%-15% on select U.S. imports, including coal, liquefied natural gas, crude oil, agricultural machinery and vehicles. Additionally, China added PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) and Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) to its &#8220;Unreliable Entity List,&#8221; citing the need to &#8220;safeguard national sovereignty, security, and development interests,&#8221; and opened an antitrust investigation on Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>).



Market participants had anticipated a call between Trump and Chinese President Xi Jinping on Tuesday, but media reports indicated the conversation would not happen today.



The trade developments had an immediate impact on oil markets, with West Texas Intermediate crude futures plunging 3% overnight to as low as $70 per barrel. 



Yet, prices rebounded sharply Tuesday morning following reports that Trump is considering issuing a memorandum aimed at inflicting <a href="https://www.benzinga.com/economics/macro-economic-events/25/02/43469234/trump-prepares-maximum-pressure-on-iran-oil-jumps-above-73-energy-stocks-rally">maximum economic damage on Iran</a>, potentially leading to a sharp decline in Iranian oil production.



Energy stocks outperformed on the day, while utilities lagged. 



Among individual stocks, Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) rocketed 22% after posting strong earnings and a revenue beat. 



In the commodities market, gold added more than 1%, extending its all-time high, and silver jumped 2.2%. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) declined 2% to $99,000.



<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>Russell 2000</td><td>2,281.54</td><td>1.0%</td></tr><tr><td>Nasdaq 100</td><td>21,495.31</td><td>0.9%</td></tr><tr><td>S&amp;P 500</td><td>6,029.97</td><td>0.6%</td></tr><tr><td>Dow Jones</td><td>44,501.00</td><td>0.2%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:55 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;rose 0.5% to $600.53.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.1% higher to $444.77.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rose 0.9% to $522.81.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rallied 1.1% to $226.80.</li>



<li>The&nbsp;Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 1.9%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 0.8%.</li>
</ul>



<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>



Stocks reacting to earnings report included: 



<ul>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>): down 1.53%</li>



<li>PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>): down 4.43%</li>



<li>Merck &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>): down 10.49%</li>



<li>PayPal Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>): down 11.57%</li>



<li>Archer-Daniels-Midland Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>): down 3.58%</li>



<li>KKR &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>): down 7.90%</li>



<li>Cummins Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMI#NYSE">CMI</a>): up 3.81%</li>



<li>Enterprise Products Partners L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPD#NYSE">EPD</a>): down 0.99%</li>



<li>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>): up 5.85%</li>



<li>Estee Lauder Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>): down 16.35%</li>



<li>Apollo Global Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>): down 2.78%</li>



<li>Fox Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>): up 4.00%</li>



<li>Ametek Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AME#NYSE">AME</a>): down 1.00%</li>



<li>Xylem Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYL#NYSE">XYL</a>): up 5.85%</li>



<li>Ferrari NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>): up 7.62%</li>



<li>Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>): up 10.46%</li>



<li>Regeneron Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>): up 4.71%</li>



<li>Jacobs Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/J#NYSE">J</a>): down 2.72%</li>



<li>Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>): down 1.51%</li>



<li>Gartner Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IT#NYSE">IT</a>): up 0.77%</li>



<li>Centene Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNC#NYSE">CNC</a>): down 3.41%</li>



<li>Atkore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATKR#NYSE">ATKR</a>): down 20.50%</li>



<li>Berry Global Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BERY#NYSE">BERY</a>): up 4.15%</li>



<li>WEC Energy Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WEC#NYSE">WEC</a>): down 1.52%</li>



<li>Hubbell Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBB#NYSE">HUBB</a>): down 0.55%</li>



<li>TransDigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>): down 1.60%</li>



<li>Graphic Packaging Holding Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPK#NYSE">GPK</a>): down 1.76%</li>



<li>CNH Industrial NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNHI#NYSE">CNHI</a>): up 1.71%</li>



<li>Ingredion Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INGR#NYSE">INGR</a>): down 6.12%</li>



<li>ATI Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATI#NYSE">ATI</a>): up 7.02%</li>



<li>Ball Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BALL#NYSE">BALL</a>): down 8.03%</li>



<li>Lancaster Colony Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LANC#NASDAQ">LANC</a>): up 9.27%</li>



<li>Premier Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PINC#NASDAQ">PINC</a>): down 15.36%</li>



<li>MPLX LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPLX#NYSE">MPLX</a>): up 2.92%</li>



<li>Oaktree Specialty Lending Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCSL#NASDAQ">OCSL</a>): down 3.42%</li>



<li>PJT Partners Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PJT#NYSE">PJT</a>): up 12.77%</li>



<li>Energizer Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENR#NYSE">ENR</a>): down 4.45%</li>



<li>Silicon Laboratories Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLAB#NASDAQ">SLAB</a>): down 1.05%</li>



<li>Hamilton Lane Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HLNE#NASDAQ">HLNE</a>): down 0.01%</li>



<li>Madison Square Garden Sports Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSGS#NYSE">MSGS</a>): down 3.74%</li>



<li>Pentair Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNR#NYSE">PNR</a>): down 1.89%</li>



<li>Amcor Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMCR#NYSE">AMCR</a>): up 3.87%</li>



<li>Inmode Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INMD#NASDAQ">INMD</a>): up 2.82%</li>



<li>Willis Towers Watson Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WTW#NASDAQ">WTW</a>): down 3.54%</li>



<li>Axalta Coating Systems Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXTA#NYSE">AXTA</a>): up 7.86%</li>



<li>Mesa Laboratories Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MLAB#NASDAQ">MLAB</a>): up 10.48%</li>
</ul>



Major companies reporting their earnings after the close are Alphabet Inc., Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Mondelez International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>), Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), Prudential Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRU#NYSE">PRU</a>), Simon Property Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPG#NYSE">SPG</a>), Atmos Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>), Aspen Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZPN#NASDAQ">AZPN</a>), Carlisle Cos. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSL#NYSE">CSL</a>), Fair Isaac Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FICO#NYSE">FICO</a>), Jack Henry &amp; Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JKHY#NASDAQ">JKHY</a>), Idex Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEX#NYSE">IEX</a>) and Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>).



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US Stocks Rise Despite China's Trade Fears, Palantir Defies Gravity, Gold Rallies Further: What's Driving Markets Tuesday?

Media giant Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) could show off continued direct-to-consumer strength and how its sports and theme park segments are helping grow revenue when the company reports first-quarter financial results <a href="https://www.benzinga.com/earnings">before market open Wednesday.</a>



Earnings Estimates: Analysts expect Disney to report first-quarter revenue of $24.6 billion, up from $23.6 billion in last year's first quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020425&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>



Disney has beaten analyst estimates for revenue in two straight quarters and five of the past 10 quarters.



Analysts expect Disney to report first-quarter earnings per share of $1.45, up from $1.22 in last year's first quarter. The company has beaten analyst estimates in six straight quarters and eight of the past 10 quarters overall.



Read Also: <a href="https://www.benzinga.com/general/entertainment/25/01/42857294/fubo-gets-fairy-tale-outcome-analyst-says-disney-deal-lowers-risks-overhang-on-stock">Fubo Gets &#8216;Fairy Tale Outcome&#8217;: Analyst Says Disney Deal Lowers Risks, Overhang On Stock</a>



What Analysts Are Saying: Goldman Sachs analyst Michael Ng sees sports, DTC and experiences <a href="https://www.benzinga.com/general/entertainment/25/01/43169631/disney-analyst-sees-flat-disney-growth-in-q1-after-netflixs-record-quarter-but-remains-bullish">the key items</a> to watch in Disney's first-quarter financial results.



The analyst reiterated a Buy rating and raised the price target from $137 to $139 in January.



Ng said Disney could beat earnings per share estimates thanks to several business units and the company's Experiences and Sports EBIT figures will likely be higher than analyst estimates.



The analyst said the box office performance for "Moana 2" and "Mufasa: The Lion King" could help boost content sales and licensing EBIT in the quarter.



For direct-to-consumer, the analyst forecasts flat Disney+ core net adds, which is higher than the consensus estimate of a decline of 1.0 million.



&#8220;Looking ahead, we model +6.5 mn Disney+ Core net adds in F2025 driven by demand from an attractive pay-1 window for theatrical titles and the password sharing crackdown.&#8221;



The analyst said investor sentiment on the theme parks demand recovery and growth outlooks are helping boost the shares.



&#8220;Since its F4Q24 earnings report (11/14/24) where DIS introduced three-year forward guidance above-consensus estimates, DIS shares have outperformed the market,&#8221; Ng said.



The analyst also highlighted the ESPN DTC launch, which still has question marks on pricing and early promotion. Ng said this could be a key item discussed by the company on future earnings calls.



&#8220;We view DIS as a high-quality EPS compounder at an undemanding valuation.&#8221;



In December, Rosenblatt analyst Barton Crockett said Disney could have <a href="https://www.benzinga.com/general/entertainment/24/12/42515164/disney-analyst-highlights-streaming-theme-park-portfolio-durability">bright days ahead</a> thanks to theme parks and streaming.



At that time, the analyst maintained a Buy rating on Disney and raised the price target from $122 to $135.



&#8220;A northward re-rating for Disney can be supported by rising confidence in portfolio durability and growth trajectory and less concern about exposure to secular pressures on linear TV and competition in streaming,&#8221; Crockett said.



Disney&#8217;s confidence in high single-digit earnings per share growth in 2025, and double-digit growth in 2026 and 2027 appears aggressive, Crockett says. But it could become a reality, he adds, after hearing more details from new CFO&nbsp;Hugh Johnson&nbsp;last week.



The analyst said cross-promotion reduced churn and Disney+ is enjoying a lift in subscribers thanks to several hit films.&nbsp;<a href="https://www.benzinga.com/general/entertainment/24/11/42123085/wicked-gladiator-ii-moana-2-could-break-thanksgiving-weekend-box-office-stocks-to-watch" target="_blank" rel="noreferrer noopener">The release of movies</a>&nbsp;like &#8220;Deadpool &amp; Wolverine,&#8221; &#8220;Inside Out 2&#8221; and &#8220;Moana 2&#8221; on Disney+ could help boost subscriber growth ahead.



Crockett says DTC streaming is "the leading driver of segment profit growth in F2026."



Here are other recent <a href="https://www.benzinga.com/quote/DIS/analyst-ratings">analyst ratings on Disney </a>and their price targets:



<ul>
<li>Citigroup: Reinstated Buy rating, $125 price target</li>



<li>Redburn Atlantic: Upgraded from Neutral to Buy, raised the price target from $100 to $147</li>



<li>Macquarie: Maintained Neutral rating, $110 price target</li>
</ul>



Key Items to Watch: Disney+ subscriber numbers will be one of the most watched metrics when Disney reports as the financial results come after Netflix recently had its<a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations"> best-ever quarterly</a> paid members addition.



The company continues to see declining revenue for its Linear Networks, which has mostly been offset by DTC and Content Sales/Licensing revenue. Investors and analysts will watch to see if that is the same again.



Last earnings report, Disney saw "Inside Out 2" and "Deadpool &amp; Wolverine" help boost operating income and the company could show "Moana 2" and "Mufasa: The Lion King" doing the same this quarter.



DIS Price Action: Disney stock is down 1.06% to $112.83 on Tuesday versus a 52-week trading range of $83.91 to $123.74. Disney stock is up 17% over the past year.



Read Next: 



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<li><a href="https://www.benzinga.com/general/sports/24/11/42015289/disney-q4-report-had-a-lot-to-like-analyst-calls-it-a-high-quality-profit-growth-performer">Disney Q4 Earnings Show &#8216;A Lot To Like&#8217;: Analyst Calls It &#8216;High-Quality&#8217; Profit Growth Performer</a></li>
</ul>



Photo: Shutterstock

Entertainment

Disney Q1 Earnings Preview: Can 'Moana 2,' 'Mufasa: The Lion King' Help Continue Streak Of Analyst Beats?

Oil markets reversed course sharply on Tuesday morning following reports that President Donald Trump is preparing to issue a memorandum directing the U.S. Treasury to impose maximum <a href="https://www.benzinga.com/topic/iran">economic pressure on Iran.</a> 



The directive aims to enforce sanctions and block all potential paths for Iran to develop a nuclear weapon, according to a Reuters report.



The new directive may require the U.S. Secretary of State to modify or revoke existing sanctions waivers and collaborate with the Treasury Department to implement a plan aimed at eliminating Iran&#8217;s oil exports, according to a U.S. official.



&#8220;A bold move considering Iran still ships as much as&nbsp;1.3 million barrels per day, mostly to China,&#8221; commented oilprice.com. 



The news outlet indicated that global oil supply could tighten overnight and noted that the last time Trump fully enforced Iranian sanctions, oil prices surged past $80.



<h3 class="wp-block-heading">Oil Prices Rebound From Session Lows</h3>



Crude oil prices initially declined overnight amid demand concerns following <a href="https://www.benzinga.com/government/regulations/25/02/43462165/china-strikes-retaliatory-measures-against-us-following-trumps-10-tariffs-its-much-less-than-proportional-analyst-says">Chinese trade countermeasures against U.S. tariffs.</a> 



Yet, oil prices erased their losses amid news of Trump&#8217;s potential actions on Iran, rallying on fears of potential supply disruptions.



West Texas Intermediate crude surged above $73 per barrel after hitting a session low of $70, reflecting a sharp intraday swing. Brent crude followed a similar pattern, rising as traders recalibrated expectations for global supply.



Traders will closely watch for further developments regarding the directive and the upcoming meeting between Israeli Prime Minister Benjamin Netanyahu and Trump on Tuesday, which could further shape U.S. policy on Iran and energy markets.



<h3 class="wp-block-heading">Energy Stocks Outperform </h3>



The broader energy sector saw significant gains as oil prices rebounded. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) jumped 1.9%, leading all other sectors. Major oil companies also saw strong moves higher, with both Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) climbing 2.2%. 



On Tuesday, Goldman Sachs raised its 12-month price target on Chevron from $182 to $183, implying an 18% upside from current levels. Analyst Neil Mehta reiterated Chevron as a &#8220;top Super Major pick for 2025,&#8221; citing three key factors such as strong capital returns, major project ramp-ups and margin expansion.



Goldman expects Chevron to return approximately one-third of its market cap to shareholders over the next three years through dividends and share buybacks. The stock currently yields 4.6%.



Key growth drivers include increased production from the Permian Basin, U.S. Gulf of Mexico, and Kazakhstan&#8217;s Tengiz field.



Finally, the company is expected to improve profitability through cost-cutting and operational efficiencies.



Goldman projects free cash flow of $22 billion in 2025 and $28 billion in 2026, assuming Brent crude prices of $76 and $80 per barrel, respectively. This equates to an FCF yield of 9% in 2025 and 11% in 2026.



Goldman Sachs adjusted its 12-month price target on Exxon from $123 to $117, holding a &#8216;Neutral&#8217; rating.



The firm acknowledges Exxon's strong operational execution and premium upstream portfolio—including assets in Guyana, LNG, and the Permian—but cites valuation concerns relative to peers.



&#8220;While we remain constructive on XOM's strong track record of quarterly and operational execution, we remain mindful of relative valuation,&#8221; the bank stated, highlighting that Exxon&#8217;s 2026 FCF yield of 8% lags behind Chevron and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), which are projected at 11%.



Read Next: 



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<li><a href="https://www.benzinga.com/news/earnings/25/02/43457605/us-stocks-likely-to-open-lower-as-trumps-trade-war-continues-to-impact-the-market-volatility-is-the-toll-we-pay-to-invest-says-expert">US Stocks Likely To Open Lower As Trump&#8217;s Trade War Continues To Impact The Market: &#8216;Volatility Is The Toll We Pay To Invest,&#8217; Says Expert</a></li>
</ul>



Photo: Shutterstock

Sector ETFs

ETFs

Trump Prepares Maximum Pressure On Iran: Oil Jumps Above $73, Energy Stocks Rally

The U.S. Senate Finance Committee on Tuesday voted in favor of advancing the nomination of Robert F. Kennedy Jr. to lead the Department of <a href="https://www.benzinga.com/25/01/43306674/trumps-hhs-pick-robert-kennedy-jr-begins-senate-confirmation-hearings">Health and Human Services.&nbsp;</a>



The Details: The Senate Finance Committee voted 14-13 along party lines to advance Kennedy's nomination to the Senate floor. He will now face the full Senate for consideration and ultimately, a final vote to approve or deny his nomination as health secretary. 



Read Next: <a href="https://www.benzinga.com/general/health-care/25/01/43372753/eggs-prices-soar-as-bird-flu-spreads-why-experts-expect-another-45-increase-in-2025">Eggs Prices Soar As Bird Flu Spreads: Why Experts Expect Another 45% Increase In 2025 </a>



GOP Sen. Bill Cassidy expressed concerns with Kennedy's views on vaccines, leading some to question his support of Kennedy's nomination. The GOP Senator voted with his party in favor of the nomination.



Cassidy posted a statement on social media just before the vote Tuesday morning and said he'd had "very intense conversations," with Kennedy and Vice President J.D. Vance.



"With the serious commitments I've received from the administration and the opportunity to make progress on the issues we agree on like healthy foods and a pro-American agenda, I will vote yes," Cassidy wrote.



Stocks To Watch: Vaccine-related stocks dropped following the vote to advance Kennedy's nomination due to his past statements questioning the safety and efficacy of immunizations and history of falsehoods around vaccines. Some of the largest pharmaceutical companies including Moderna, Inc.(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) and Pfizer, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) are moving lower on the news. 



Investors will also be watching insurance stocks for reactions as Kennedy's nomination moves forward.  



During his Senate hearings <a href="https://www.benzinga.com/general/health-care/25/01/43321236/rfk-jr-and-big-pharma-stocks-to-watch-as-health-secretary-hopeful-answers-pointed-questions-on-drugs-insurance-trump-exec-orders">last week</a>, Kennedy called out what he considered to be "rapacious behavior by insurance companies&#8221; and suggested he would support efforts to crack down on abusive tactics like denying care and overcharging the government.



Some insurers tied to Medicaid and Medicare are UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), the largest Medicare Advantage insurer in the U.S., and Elevance Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), one of the largest Medicaid managed care organizations.&nbsp;



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a></li>
</ul>



Image: Shutterstock.

Biotech

Health Care

General

MRNA

Robert F. Kennedy's Health Secretary Nomination Advances To Full Senate: Vaccine Stocks Drop

Shares of Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) climbed in early trading on Tuesday, after the company reported <a href="https://www.benzinga.com/markets/25/02/43456348/pltr-stock-surges-over-17-in-pre-market-after-ceo-alex-karp-touts-untamed-organic-growth-in-ai-demand">strong fourth-quarter results</a>.



The company reported its quarterly results amid an <a href="https://www.benzinga.com/earnings">exciting earnings season</a>. Here are some key analyst takeaways.



Morgan Stanley On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59411d2885b07a0001615ca8/sanjit-singh">Analyst Sanjit Singh</a> upgraded the rating from Underweight to Equal-Weight, while raising the price target from $60 to $95.



Palantir Technologies' revenue growth accelerated for the sixth quarter in a row, from 30% in the third quarter to 36% in the fourth quarter, Singh said in the upgrade note. "For Q1 and FY25 revenue growth, management forecasts growth of +35-36% and +31%, respectively, which is well ahead of consensus looking for mid-20% growth," he added.



Palantir Technologies is executing well in the early stage of the AI cycle, "given a strong technology platform and elite engineering talent," the analyst wrote. The company's fundamentals are improving, as is the likelihood that this is sustainable, he further stated.



Northland Capital Partners On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58bd551ab85e930001592af5/michael-latimore">Analyst Michael Latimore</a> reaffirmed a Market Perform rating, while revising the price target to $80.



Palantir Technologies' revenue growth accelerated to 36% and operating margins expanded to 45% in the fourth quarter, Latimore said in a note. Revenues of $827.5 million surpassed consensus of $781.2 million, while EPS of 14 cents per share beat expectations of 11 cents per share, he added.



Management guided to first-quarter revenue of $858-$862 million, higher than consensus $799.4 million and non-GAAP operating income of $354-$358 million, above consensus of $298.1 million, the analyst stated. "Palantir stated that DeepSeek, and its low-cost powerful LLM, is making obvious what Palantir has stated all along, that the LLMs will commoditize as they get more similar over time," he further wrote.



Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.



BofA Securities On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58d94a95b85e930001fd9dd2/tore-svanberg">Analyst Mariana Perez Mora</a> reiterated a Buy rating, while lifting the price target from $90 to $125.



Palantir Technologies reported its full year results significantly ahead of expectations, reflecting that "2024 was only a dress rehearsal," Mora said in a note. "The company sees the world ripe for an AI and technology revolution," she added.



The analyst expects the company to lead the AI revolution in both the Commercial and Defense markets. "With the AI market becoming more crowded with more commoditized solutions; we think Palantir&#8217;s value proposition is only becoming more pronounced," she further wrote.



Cantor Fitzgerald On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/61e7dac6ecb07f0001d8956b/thomas-blakey">Analyst Thomas Blakey</a> maintained a Neutral rating, while raising the price target from $72 to $98.



Palantir Technologies reported a strong quarterly beat and raised its guidance, Blakey said. U.S. revenues grew 52% year-on-year, with U.S. Commercial revenues up 64% and U.S. government revenues growing 45%, he added.



The company's customer count rose by an impressive 43% year-on-year to 711, "which we attribute to momentum in the US as well as Palantir's AIP (Artificial Intelligence Platform), improving ability to create AI apps and agents in low code on its platform," the analyst wrote. &nbsp;Palantir Technologies is still in the early stages of its "journey of transforming industries and governments with its enterprise software and services offering," he further stated.



PLTR Price Action: Shares of Palantir Technologies had risen by 26% to $105.71 at the time of publication on Tuesday.



Read More: 



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<li><a href="https://www.benzinga.com/25/02/43465063/spotify-posts-upbeat-results-joins-palantir-ati-ferrari-cummins-and-other-big-stocks-moving-higher-on-tuesday">Spotify Posts Upbeat Results, Joins Palantir, ATI, Ferrari, Cummins And Other Big Stocks Moving Higher On Tuesday</a></li>
</ul>



Photo: Piotr Swat/Shutterstock.com

Analyst Color

Earnings Beats

Upgrades

Price Target

Reiteration

Analyst Ratings

Palantir Rockets On Strong Q4: '2024 Was Only A Dress Rehearsal' For AI Growth, Says Analyst

President Donald Trump announced a wave of tariffs on Canada, China, and Mexico, though some have now been delayed, sparking mixed reactions in <a href="https://www.benzinga.com/25/02/43452717/nvidia-tsmc-drop-as-trump-hits-mexico-canada-and-china-with-tariffsbut-top-analyst-sees-only-limited-supply-chain-impact">the business world.</a>



Executives Weigh In: Tariffs increase costs for American importers, which can lead to higher prices for consumers. Industries such as perishable foods and automobiles could see disruptions as Trump&#8217;s tariffs take effect.



General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) CEO Mary Barra reacted to the tariffs announcement last week, <a href="https://finance.yahoo.com/news/gm-ceo-mary-barra-ive-talked-to-president-trump-about-tariffs-132651342.html">telling</a> Yahoo Finance that the Detroit-based company has already prepared for impending tariffs.



&#8220;We&#8217;ve done a lot of scenario planning and we know the levers that we can pull to minimize any impact. But having the opportunity to talk to the president, I really believe he wants a strong manufacturing sector because it&#8217;s good for the economy,&#8221; Barra said.



Meanwhile, Shopify Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) CEO Tobi Lutke <a href="https://x.com/tobi/status/1886104963979346132">responded</a> more positively to the tariffs, announcing a &#8220;buy local&#8221; feature on X.



UBS Group AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBS#NYSE">UBS</a>) CEO Sergio Ermotti <a href="https://x.com/business/status/1886735516520898930">told</a> Bloomberg that the tariffs could result in &#8220;spikes in volatility,&#8221; reiterating that &#8220;negative outcomes are not priced into the market.&#8221; Ermotti sees inflationary pressure as possibly impacting central bank policy.



The CEO of JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Jamie Dimon, told CNBC that critics of Trump&#8217;s tariffs should &#8220;get over it.&#8221; Dimon said that the tariffs could help the United States with national security. Dimon was previously a critic of Trump&#8217;s tariffs during his first term.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/25/02/43460249/pepsicos-q4-sales-miss-estimates-on-downcast-performance-in-north-america-stock-dives">PepsiCo Q4 Earnings: EPS Beat, Subdued North America Performance, 5% Dividend Hike And More</a></li>
</ul>



Photo: Shutterstock

SHOP

Trump's Tariff Push Divides Executives: 'Negative Outcomes Are Not Priced Into' Markets

China responds to the across-the-board 10% tariffs imposed by Donald Trump&#8216;s administration with targeted measures on a range of U.S. energy imports and restrictions on key minerals exports, officially reopening a new chapter in the trade war between the <a href="https://www.benzinga.com/news/econ-s">world&#8217;s two largest economies.</a>



&#8220;The unilateral increase in tariffs by the United States seriously violates the rules of the World Trade Organization,&#8221; the Ministry of Finance of the People&#8217;s Republic of China stated Tuesday. 



<h3 class="wp-block-heading">What Happened</h3>



As the U.S. implemented a 10% tariff on all Chinese imports, China responded on Feb. 4 with a series of countermeasures.



These included:



<ol>
<li>Raising tariffs by 10-15% on certain U.S. imports such as coal, liquified natural gas, crude oil, agricultural machinery and vehicles.</li>



<li>Imposing export restrictions on key minerals like tungsten, tellurium, bismuth, molybdenum, and indium, along with their related metallic compounds.</li>



<li>Adding two U.S. companies, PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) and Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), to its Unreliable Entity List in order to &#8220;safeguard national sovereignty, security and development interests.&#8221; According to China, these companies &#8220;violated the principles of normal market transactions, interrupted normal transactions with Chinese enterprises, and took discriminatory measures against Chinese enterprises.&#8221;&nbsp;</li>



<li>Initiating an antitrust investigation into Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>).</li>
</ol>



According to an official statement, China&#8217;s retaliatory tariffs on U.S. goods will take effect on Feb. 10, while the export ban on critical minerals has already been enforced.



The&nbsp;Executive Order&nbsp;signed by Trump on Feb. 1 stated that if China were to retaliate by imposing additional tariffs on US goods, the 10% tariff rate might be raised further.&nbsp;



<h3 class="wp-block-heading">Why It Matters</h3>



Goldman Sachs economist Andrew Tilton indicates that China&#8217;s newly announced retaliatory tariffs cover a much narrower range of goods compared to the broad 10% U.S. tariff on Chinese imports. 



The combination of tariffs, export restrictions, entity list designations and antitrust investigations suggests a more strategic and coordinated policy response than during the 2018-19 trade war, according to the expert.



Goldman Sachs&#8217; estimates indicate that the U.S. accounts for a relatively small share of China&#8217;s imports in the targeted energy sectors. In 2024, China imported $4.5 billion worth of coal and LNG from the U.S., representing just 5% of its total imports for these products. For crude oil, U.S. exports to China totaled $9.4 billion, making up only 3% of China&#8217;s total crude imports.



Based on the investment bank&#8217;s calculations, the impact of China&#8217;s counter tariffs is &#8220;much-less than proportional,&#8221; as China is effectively imposing an additional 12% tariff on $14 billion in U.S. goods, compared to the U.S. implementing a 10% tariff on $525 billion worth of Chinese products.



Yet, &#8220;the future path of US-China trade conflicts remains highly uncertain, and reactions from the US to China's retaliation, the potential Trump-Xi phone call, and PBOC&#8217;s daily USDCNY fixing in the coming days are key events to watch,&#8221; Tilton says. 



<h3 class="wp-block-heading">Market Reactions </h3>



The Chinese yuan gained marginal ground against the U.S. dollar on Tuesday, up 0.2% by 8:15 a.m. in New York. 



China&#8217;s trade measures weighed on energy commodities, with futures on WTI and natural gas down 1.7% and 4%, respectively. Gold prices rose 0.3% to $2,830 per ounce, setting new all-time highs. 



Futures on major U.S. indices were mixed during Tuesday premarket trading, with contracts on the S&amp;P 500 up 0.3% while those on the Dow edging 0.1% lower. 



US-listed Chinese stocks rallied in the premarket. Shares of Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rose 2%, PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) surged 2.1% and JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) rallied 2.6%. 



The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was 1.8% higher. 



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<li><a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days">Trump, Trudeau Strike Border Security Deal, Tariffs On Canada Paused For &#8216;At Least 30 Days &#8216;</a></li>
</ul>



Photo: Shutterstock

Regulations

Specialty ETFs

Emerging Market ETFs

Forex

BABA

China Strikes Retaliatory Measures Against US Following Trump's 10% Tariffs: It's 'Much-Less Than Proportional,' Analyst Says

On Tuesday,&nbsp;Pfizer Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) reported fourth-quarter adjusted EPS of 63 cents, compared to 10 cents a year ago, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/25/02/43455760/pfizer-gears-up-for-q4-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-analysts" rel="noreferrer noopener">consensus of 47 cents</a>.



The U.S. drugmaker reported sales of $17.76 billion, up 22% year-over-year (up 21% operationally), beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus of $17.40 billion</a>.



The increase reflects a one-time, non-cash Paxlovid revenue reversal&nbsp;of $3.5 billion recorded in fourth-quarter 2023 and, to a lesser extent, growth contributions in fourth-quarter 2024 from the legacy Seagen portfolio, the Vyndaqel family, higher Paxlovid sales year-over-year, higher sales in several other products across all categories, and a favorable impact of foreign exchange.



Excluding contributions from Paxlovid and Comirnaty, fourth-quarter 2024 revenues <a target="_blank" href="https://s28.q4cdn.com/781576035/files/doc_financials/2024/q4/Q4-2024-Earnings-Charts-FINAL.pdf" rel="noreferrer noopener">totaled</a> $13.7 billion, an increase of $1.3 billion, or 11%, operationally compared with the prior-year quarter.



This was primarily driven by legacy Seagen, Vyndaqel family, Eliquis, Nurtec ODT/Vydura, and Xtandi, partially offset by lower revenues for Abrysvo, Xeljanz and Oncology biosimilars.



Read Next: <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/25/01/43403416/is-big-pharma-about-to-win-goldman-sachs-weighs-in-on-340b-and-medicaid-shifts" rel="noreferrer noopener">Is Big Pharma About To Win? Goldman Sachs Weighs In On 340B And Medicaid Shifts</a>



Fourth-quarter 2024 Comirnaty&nbsp;revenues of $3.83 billion decreased $2.0 billion, or 38%, operationally compared with the prior-year quarter, driven primarily by fewer COVID-19 vaccinations globally and lower contracted doses.



Fourth-quarter 2024 Paxlovid revenues of $727 million increased $3.9 billion operationally compared with $(3.1) billion of revenues recorded in the prior-year quarter, primarily driven by the transition to traditional commercial market sales in the U.S., including a one-time, non-cash revenue reversal&nbsp;of $3.5 billion recorded in fourth-quarter 2023.



Vyndaqel family drugs generated&nbsp;<a target="_blank" href="https://s28.q4cdn.com/781576035/files/doc_financials/2024/q4/Q4-2024-PFE-Earnings-Release-Final.pdf" rel="noreferrer noopener">sales</a> of $1.55 billion, up 60%. Eliquis, a blood thinner drug, generated sales of $1.83 billion, up 14%.



Global revenues of $915 million from legacy Seagen compared with $132 million in fourth-quarter 2023 following the completion of the acquisition in mid-December 2023.



Nurtec ODT/Vydura sales jumped 39% to $392 million. Prevnar family pneumococcal vaccine sales dipped 4% to $1.56 billion, and Abrysvo RSV vaccine sales slumped 62% to $198 million.



Guidance:&nbsp;Pfizer reaffirms 2025 revenues of $61 billion-$64 billion compared to <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42530634/pfizer-does-not-anticipate-material-changes-to-us-vaccine-policy-from-the-incoming-administration-in-2025" rel="noreferrer noopener">consensus of $63.025 billion</a>.



The company anticipates adjusted EPS of $2.80-$3.00 compared to consensus of $2.94.



Price Action:&nbsp;At the last check on Tuesday, PFE stock was up 1.87% at $26.69 during the premarket session.



Read Next:



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<li><a href="https://www.benzinga.com/25/02/43460556/tariff-trouble-rayonier-advanced-materials-braces-for-35m-monthly-loss-due-to-new-25-paperboard-tax" target="_blank" rel="noreferrer noopener">Tariff Trouble: Rayonier Advanced Materials Braces For $3.5M Monthly Loss Due To New 25% Paperboard Tax</a></li>
</ul>



Photo via Shutterstock

Pfizer Q4 Earnings: Revenue And EPS Beat, Seagen And COVID-19 Products Show Strength, Issues Strong FY25 Outlook

PayPal Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) <a target="_blank" href="https://www.benzinga.com/topic/paypal" rel="noreferrer noopener">reported fiscal fourth-quarter</a> revenue growth of 4% year over year to $8.37 billion, topping the&nbsp;analyst consensus estimate <a target="_blank" href="https://investor.pypl.com/financials/quarterly-results/default.aspx" rel="noreferrer noopener">of&nbsp;$8.26 billion</a>.&nbsp;



The company reported an adjusted EPS of $1.19, beating&nbsp;the <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $1.12</a>. The stock dipped after the print.



Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/02/43458397/sam-altman-in-korea-openai-seeks-ai-deals-with-samsung-sk-hynix-and-softbank-amid-global-ai-boom" rel="noreferrer noopener">Sam Altman in Korea: OpenAI Seeks AI Deals With Samsung, SK Hynix, and SoftBank Amid Global AI Boom</a>



Total payment volumes increased 7% year-over-year to $437.8 billion in the quarter. Payment transactions were down 3% to $6.6 billion, and the payment transactions per active account increased 3% on a trailing 12-month basis to $60.6.



Total active accounts&nbsp;increased by 2.1% to 434 million. On a sequential basis, active accounts increased by 0.6%, or 2.6 million.



The operating margin declined 431 basis points to 17.2%, and the adjusted operating margin decreased 34 bps to 18.0%.



Operating cash flow&nbsp;was&nbsp;$2.4 billion, and free cash flow&nbsp;was&nbsp;$2.2 billion.&nbsp;PayPal held $15.4 billion in cash and equivalents as of December 31, 2024, and had a debt of $11.1 billion on its balance sheet.



Buyback: PayPal&#8217;s Board approved a new $15 billion stock repurchase program.



CEO Alex Chriss flagged improvements to branded checkout, peer-to-peer, and Venmo, plus the progress to its price-to-value strategy behind the quarterly print.



Outlook: PayPal expects first-quarter adjusted EPS of $1.15-$1.17, compared to $1.08 for the previous year&#8217;s period and the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $1.13</a>.



PayPal expects full-year 2024 adjusted EPS of $4.95-$5.10, compared to $4.65 Y/Y.&nbsp;Current analyst estimates&nbsp;call for an EPS of $4.90.



PayPal stock surged over 45% in the last 12 months. At least <a target="_blank" href="https://www.benzinga.com/quote/PYPL/analyst-ratings" rel="noreferrer noopener">four Wall Street firms</a>, including Susquehanna, Citigroup, Wells Fargo, and Piper Sandler, raised their price targets on the stock in January 2025.



Price Action: At&nbsp;the last check on Tuesday, PYPL stock was down 8.02% at $82.33 premarket.



Also Read:



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<li><a href="https://www.benzinga.com/25/02/43444802/comcast-downgraded-as-broadband-struggles-and-price-cuts-raise-investor-concerns" target="_blank" rel="noreferrer noopener">Comcast Faces Broadband Headwinds, Analyst Downgrades Stock And Cuts Price Forecast</a></li>
</ul>

Buybacks

PayPal Q4 Earnings: Revenue And EPS Beat, Margin Pressure, $15 Billion Buyback, Outlook And More

PepsiCo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) shares are trading lower in<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener"> premarket on Tuesday </a>after the company reported worse-than-expected fourth-quarter revenue.



The company reported a fourth-quarter sales decline of 0.2% year-on-year to $27.78 billion, missing the analyst <a target="_blank" href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000077476/000007747625000008/pep-20250204.htm" rel="noreferrer noopener">consensus estimate of $27.89 billion</a>.



Net revenue from Frito-Lay North America decreased 2% Y/Y, Quaker Foods North America dropped 2%, and PepsiCo Beverages North America remained flat.



Latin America sales slumped 7% Y/Y, and Europe sales rose 6%. Gross profit decreased 1% Y/Y to $14.6 billion, and the margin contracted 41 basis points Y/Y to 52.6%.



Operating margin expanded by 206 basis points to 8.1%, and operating income for the quarter increased 33.6% to $2.25 billion.



The company held $8.5 billion in cash and equivalents as of December 28. Operating cash flow for the twelve months totaled $12.5 billion.



Adjusted EPS of $1.96<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener"> beat the consensus estimate of $1.94.</a>



Pepsi announced a 5% increase in its annualized dividend to $5.69 per share from $5.42 per share, effective with the dividend expected to be paid in June 2025.



Chairman and CEO Ramon Laguarta, said &#8220;Our businesses remained resilient in 2024, despite subdued category performance trends in North America, the continued impacts related to a recall in our Quaker Foods North America division and business disruptions due to geopolitical tensions in certain international markets.&#8221;



Outlook: PepsiCo expects&nbsp;low-single-digit increase in organic revenue for FY25 and a mid-single-digit increase in core constant currency EPS.



PepsiCo sees a core annual effective tax rate of approximately 20%.



The expects total cash returns to shareholders to be approximately $8.6 billion, consisting of dividends of $7.6 billion and share repurchases of $1.0 billion.



The company also expects a foreign exchange translation headwind of approximately 3% to negatively impact reported net revenue and core EPS growth.



Price Action: PEP shares are trading lower by 2.17% at $147.01 in premarket at the last check Tuesday.



Photo via Shutterstock.

Dividends

PepsiCo Q4 Earnings: EPS Beat, Subdued North America Performance, 5% Dividend Hike And More

On Tuesday,&nbsp;Merck&nbsp;&amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>)&nbsp;reported fourth-quarter sales of $15.62 billion, up 7% year over year and slightly beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus estimate of $15.49 billion</a>. Excluding the impact of foreign exchange, sales increased 9%.



Merck reported adjusted EPS of $1.72, up from $0.03 a year ago and beating the&nbsp;consensus of $1.62. Lower charges for business development transactions and operational strength <a target="_blank" href="https://www.benzinga.com/general/biotech/25/02/43445253/merck-vs-pfizer-which-pharmaceutical-giant-will-prevail-in-q4-earnings" rel="noreferrer noopener">primarily drove the increase</a>.



"We delivered strong growth in 2024, reflecting demand for our innovative portfolio, including for KEYTRUDA, which continues to benefit more patients with cancer globally, the successful launch of WINREVAIR and strong performance of our Animal Health business," said Robert Davis, chairman and chief executive officer, Merck.



Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43166965/senate-hearings-loom-as-robert-f-kennedy-faces-scrutiny-over-conflicts-of-interest-in-mercks-gardasil-vaccine-litigation" rel="noreferrer noopener">RJK Jr.'s Involvement In Merck Lawsuit Faces Scrutiny Ahead Of Senate Hearing</a>



The pharmaceutical unit booked&nbsp;$14.04 billion&nbsp;in revenue, up 7% year over year (+8% ex-exchange). The increase is driven by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines, <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43457435/merck-announces-fourth-quarter-and-full-year-2024-financial-results" rel="noreferrer noopener">immunology, and virology</a>.



Merck's blockbuster cancer immunotherapy Keytruda generated&nbsp;$7.84 billion&nbsp;in revenue during the quarter, up 19% from the year-earlier period.



Merck reported a decline of 17% in sales of Gardasil to $1.55 billion, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the U.S., primarily due to lower demand in China, partially offset by higher demand in most international regions, particularly in Japan.



In the third quarter, Merck reported a decline of 11% in <a target="_blank" href="https://www.benzinga.com/news/earnings/earnings-beats/24/10/41655506/merck-beats-q3-estimates-but-lowers-annual-forecast-as-gardasil-vaccine-hit-by-low-c" rel="noreferrer noopener">Gardasil sales to $2.31 billion</a>. The newly approved Winrevair (sotatercept) for adults with pulmonary arterial hypertension generated&nbsp;<a target="_blank" href="https://www.benzinga.com/general/biotech/24/03/37958211/mercks-11b-bet-pays-as-fda-approves-sotatercept-for-rare-lung-disease" rel="noreferrer noopener">sales of $200 million</a>.



Guidance:&nbsp;Merck expects fiscal year 2025 sales of $64.1 billion-$65.6 billion versus a consensus of $67.31 billion,&nbsp;including a negative impact of foreign exchange of approximately 2% at mid-January 2025 exchange rates.



The sales range reflects a decision to temporarily pause Gardasil/Gardasil 9 shipments into China beginning February 2025 through at least mid-year.



The U.S. pharma giant expects adjusted EPS Of $8.88-$9.03 versus a consensus of $9.02. The guidance includes an expected one-time charge of $300 million, or approximately $0.09 per share, related to a milestone payment to LaNova, which will be recognized upon completion of the technology transfer for MK-2010.



Price Action: MRK stock is down 7.81% at $92.01 premarket at the last check on Tuesday.



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<li><a href="https://www.benzinga.com/25/02/43457741/paramount-inks-groundbreaking-deal-with-nielsen-for-data-services" target="_blank" rel="noreferrer noopener">Paramount Resumes Partnership With Nielsen For Data Services: Details</a></li>
</ul>



Image via Merck

Merck's Gardasil Vaccine Slowdown In China Bites Again, Stock Falls On Weak 2025 Outlook

U.S. stock futures were trading lower on Tuesday after Monday&#8217;s decline as the new administration&#8217;s tariffs continued to spook the market.



On Monday, Mexico&#8217;s president Claudia Sheinbaum reached a deal with President Donald Trump to delay tariffs by increasing Mexico's military presence on the US border. Later, after a call between Trump and Canadian Prime Minister Justin Trudeau, tariffs on Canada were also suspended for 30 days.



All major index futures were down. Google parent Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) and Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) are expected to report earnings today.



The 10-year Treasury yield stood at 4.58%, while the two-year yield was at 4.25%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is an 86.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.10%</td></tr><tr><td>S&amp;P 500</td><td>-0.20%</td></tr><tr><td>Dow Jones</td><td>-0.24%</td></tr><tr><td>Russell 2000</td><td>-0.14%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) were mixed during premarket trading on Tuesday. SPY fell 0.17% to $596.75, and QQQ was up 0.01% to $518.16, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



US stocks <a href="https://www.benzinga.com/25/02/43455955/dow-trims-losses-after-trump-delays-mexico-tariff-investor-sentiment-improves-fear-greed-index-in-fear-zone">declined</a> on Monday following Trump&#8217;s tariff announcement which led to the Dow dropping over 665 points intraday. 



Owens &amp; Minor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>) shares fell 35% after lowering revenue guidance, while Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>) reported strong earnings.



December U.S. construction spending rose 0.5%, and the January ISM manufacturing PMI increased to 50.9.



Most S&amp;P 500 sectors declined, led by consumer discretionary, information technology, and industrials, while utilities and consumer staples gained.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-1.20%</td><td>19,391.96</td></tr><tr><td>S&amp;P 500</td><td>-0.76%</td><td>5,994.57</td></tr><tr><td>Dow Jones</td><td>-0.28%</td><td>44,421.91</td></tr><tr><td>Russell 2000</td><td>-1.28%</td><td>2,258.42</td></tr></tbody></table></figure>



Insights From Analysts



As the market declined following the tariffs and trade wars, Ryan Detrick, the chief market strategist at Carson Research, calmed the investors down by highlighting that every year has scary headlines that pull the stock market down.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Every year has scary headlines. <a href="https://t.co/1JknCIqrRc">pic.twitter.com/1JknCIqrRc</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886424284609835091?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He further explained the basic principle of investing in the market by saying &#8220;Volatility is the toll we pay to invest&#8221;.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Now&#39;s a good time to remember that volatility is the toll we pay to invest. Each year has scary moments, it is all part of investing. <a href="https://t.co/9FezMYHa4M">pic.twitter.com/9FezMYHa4M</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886424165021819285?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Highlighting the tariff impact, economist Jeremy Siegel said that the prospect of new trade barriers introduces another layer of volatility, with markets reacting negatively to the uncertainty.



&#8220;History has shown that tariffs are rarely viewed as a net positive for equities, and while they could lead to a temporary bump in inflation and price levels, the Fed is unlikely to respond to a one-time inflationary shock,&#8221; he added.



While Mexican and Canadian tariffs were paused, Siegel, who is the senior economist at WisdomTree and a former professor at the University of Pennsylvania added that &#8220;Trump's new tariffs are not smart either economically or politically&#8221;.



&#8220;The political impact is likely to be very negative for Trump's program, as the rise in prices (gasoline and some food items) will have high visibility in the mainstream media and put pressure on some legislators,&#8221; he added.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul>
<li>December&#8217;s job openings and factory orders data will be out at 10:00 a.m., ET</li>
</ul>



<ul>
<li>Atlanta Fed President Raphael Bostic will speak again at 11:00 a.m., ET on Tuesday, on the topic of housing.</li>
</ul>



<ul>
<li>San Francisco Fed President Daly will speak at 2:00 p.m., ET and Federal Reserve Vice Chairman Philip Jefferson will speak at 7:30 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) was up 2.90% in the premarket on Tuesday as it is expected to report its fourth-quarter earnings before the market opens. According to Benzinga's consensus estimates, the company is expected to report earnings of $2.060 per share on the revenue of $4.15 billion.</li>
</ul>



<ul>
<li>PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) declined 0.19% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.94 per share on revenue of $27.89 billion.</li>
</ul>



<ul>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) rose 0.53% as Wall Street expects it to report quarterly earnings of 47 cents per share on revenue of $17.40 billion.</li>
</ul>



<ul>
<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) slipped 0.19% ahead of its earnings which will be released after the closing bell. Analysts expect it to report quarterly earnings of $3.08 per share on revenue of $2.32 billion.</li>
</ul>



<ul>
<li>UBS Group AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBS#NYSE">UBS</a>) fell 5.58% despite reporting stronger-than-expected earnings for its fourth quarter because it disclosed a share buyback program of up to $3 billion, which failed to impress investors.</li>
</ul>



<ul>
<li>NXP Semiconductors NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) was up 0.80% as it posted upbeat earnings and sales results for its fourth quarter on Monday.</li>
</ul>



<ul>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) was up 18.77% following better-than-expected fourth-quarter results.</li>
</ul>



<ul>
<li>Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) slipped 5.11% and PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) declined 3.98% as the Chinese Ministry of Commerce added the companies to the unreliable entities list amid the ongoing trade war with the U.S.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 1.54% to hover around $72.03 per barrel.



The gold spot index was down by 0.01% to $2,814.48 per ounce. The Dollar Index was down 0.36% at 108.60 level.



Asian markets were mixed on Tuesday as China's CSI 300 and Australia's ASX 200 index fell. Whereas Hong Kong's Hang Seng, South Korea's Kospi, and Japan's Nikkei 225 index advanced. European markets were also mixed in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/02/43456454/bill-gates-says-nvidias-jensen-huang-could-be-wrong-about-quantum-computing-qubt-rgti-ionq-react-in-tuesday-premarket">Bill Gates Says Nvidia&#8217;s Jensen Huang &#8216;Could Be Wrong&#8217; About Quantum Computing: QUBT, RGTI, IONQ React In Tuesday Premarket </a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Pre-Market Outlook

NXPI

US Stocks Likely To Open Lower As Trump's Trade War Continues To Impact The Market: 'Volatility Is The Toll We Pay To Invest,' Says Expert

Microsoft Corporation&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) founder Bill Gates said that it could take three to five years to develop logical quantum computing qubits while immediately adding that the timeline could be longer. 



What Happened: Gates, who is invested in the quantum computing company IonQ Inc. through his venture Breakthrough Energy, spoke about the quantum computing companies <a href="https://finance.yahoo.com/news/bill-gates-theres-a-possibility-quantum-computing-will-become-useful-in-3-to-5-years-152007398.html">during</a> Yahoo Finance&#8217;s Opening Bid podcast.



He explained that Huang&#8217;s prediction may be incorrect but it&#8217;s possible that within three to five years, one of these quantum computing techniques will achieve sufficient logical qubits to solve complex problems.



However, Gates immediately went on to say &#8220;But Jensen&#8217;s correct, it could take longer, this is both in terms of how you build a quantum computer and what software you write that can solve problems that other computers couldn&#8217;t write.&#8221;



Rigetti Computing Inc. and IonQ were up on Monday. Quantum computing stocks have declined on a year-to-date basis. The exchange-traded fund that tracks quantum computing stocks Defiance Quantum ETF declined 0.52% on Monday and 0.63% year-to-date. However, stocks were up in pre-market trading on Tuesday, with the exception of IonQ.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Stocks</td><td>Monday&#8217;s Performance</td><td>Tuesday Pre-Market Performance</td><td>YTD Performance</td></tr><tr><td>Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>)</td><td>2.28%</td><td>1.56%</td><td>-32.65%</td></tr><tr><td>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>)</td><td>-4.14%</td><td>2.61%</td><td>-46.96%</td></tr><tr><td>D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>)</td><td>-3.03%</td><td>2.26%</td><td>-40.06%</td></tr><tr><td>IonQ Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>)</td><td>5.01%</td><td>-0.19%</td><td>-3.78%</td></tr><tr><td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td><td>-0.52%</td><td>1.36%</td><td>-0.63%</td></tr></tbody></table></figure>



See Also: <a href="https://www.benzinga.com/news/events/25/02/43455326/illumina-stock-tumbles-nearly-5-overnight-on-robinhood-as-china-adds-ilmn-calvin-klein-owner-pvh-to-unreliable-entities-list-amid-trade-war-with-us">Illumina Stock Tumbles Nearly 5% Overnight On Robinhood As China Adds ILMN, Calvin Klein Owner PVH To &#8216;Unreliable Entities List&#8217; Amid Trade War With US</a>



Why It Matters: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang during CES 2025 <a href="https://www.benzinga.com/markets/equities/25/01/42966492/jensen-huang-said-quantum-computing-is-20-years-away-but-nvidia-bets-big-on-strategic-hiring">predicted</a> that practical quantum computing is 15-30 years away. This was accompanied by similar skepticism from Meta Platform Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) CEO Mark Zuckerberg, <a href="https://www.benzinga.com/markets/equities/25/01/42939766/quantum-computing-stocks-tumble-after-mark-zuckerberg-backs-nvidia-ceo-jensen-huangs-practical-comments-qubt-down-9-rgti-falls-16-and-ionq-loses-15">calling</a> quantum computing "still quite a ways off from being a truly practical paradigm,&#8221; during a podcast.



Gates, during the interaction, went on to say &#8220;I am thrilled that MSFT is making those investments but there is a great deal of uncertainty there.&#8221;



However, he added that rapid and predictable advancements in artificial intelligence over the next three to five years promise significant capabilities.



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</ul>



Photo courtesy: Shutterstock

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Bill Gates Says Nvidia's Jensen Huang 'Could Be Wrong' About Quantum Computing: QUBT, RGTI, IONQ React In Tuesday Premarket

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