• DFDV Soars 74% After BONK Partnership, Then Dips on Profit-Taking
• DeFi Development Corp. Skyrockets on Solana Validator Deal with BONK
• DFDV Gains 2,800% Amid Shift to Solana, Adds $2.3M in SOL Holdings
• BONK Partnership Fuels DFDV Rally as Firm Deepens Solana Strategy
• Stock Surge: DFDV Embraces Web3 with BONK Node and SOL Accumulation

DeFi Development Corp. (DFDV) surged 74.45% on May 16 during regular trading, closing at $156.99. The sharp rally followed the company’s announcement of a strategic partnership with Solana-based memecoin BONK. This integration included co-managing a validator node and acquiring additional SOL tokens.

DeFi Development Corp. (DFDV)

DFDV later dropped 15.47% in after-hours trading, falling to $132.70. The sharp decline followed a day of rapid gains and likely profit-taking. Despite the pullback, DFDV remains significantly higher than previous levels.

The rally continued a strong uptrend since DFDV pivoted from real estate tech to blockchain infrastructure. The firm’s new direction focuses on accumulating Solana’s native token, SOL. Consequently, the stock has gained over 2,800% since this strategic shift.

BONK Validator Partnership Triggers Price Jump

DeFi Development Corp. entered a validator partnership with BONK, Solana’s leading memecoin by user engagement and integrations. The agreement marked the first public-company alliance with a community token to operate validator infrastructure on Solana. Both entities will share staking rewards while expanding the validator’s stake.

This move strengthens DFDV’s validator expansion strategy and aligns with BONK’s aim to scale community staking operations. In addition to validator rewards, BONK’s liquid staking token, BONKSOL, will integrate with this effort. The collaboration signals growing ties between corporate players and decentralized networks.

BONK operates as a utility token on Solana, supporting over 400 integrations across decentralized applications. It is the second-most-used token on the chain, after SOL. Its wide availability across 13 chains enhances its accessibility and ongoing traction.

DFDV Adds to SOL Holdings Amid Strategic Pivot

One day before the validator announcement, DFDV acquired an additional 16,447 SOL tokens for $2.3 million. The company bought them at an average price of $139.66, below current market prices. This purchase raised its SOL reserves to 609,190 tokens worth over $107 million.

The acquisition supports the company’s treasury strategy, which centers on accumulating and compounding SOL over time. This approach mirrors other firms adopting token reserves on balance sheets. DFDV uses a proprietary SOL Per Share (SPS) metric to measure value per stock unit.

The firm previously operated as a real estate tech platform under Janover. However, it pivoted after former Kraken executives acquired a controlling stake. Since then, DFDV has focused on validator operations, digital assets, and Solana ecosystem expansion.

Future Outlook

DFDV’s rapid stock gains reflect growing market confidence in its Solana-based strategy. The BONK validator deal and increased SOL reserves position the company as a key participant in Web3 infrastructure. The integration marks a new chapter in converging corporate capital and decentralized community assets.

The post DeFi Development Corp. (DFDV) Stocks: Soar 74% After Integrating With Solana Memecoin BONK appeared first on CoinCentral.

• NetEase reported Q1 2025 earnings of $0.49 per share, beating analyst estimates
• Total revenue rose 7.4% year-over-year to RMB 28.83 billion ($4 billion)
• Gaming revenue grew 12%, led by flagship titles and new releases
• Non-gaming segments like Youdao and Cloud Music saw revenue declines
• NTES stock is up 38% year-to-date, with strong Q1 performance boosting sentiment

NetEase Inc. (NASDAQ: NTES) stock closed at $119.58, down 2.59% on the day, but remains up 38% year-to-date. At the same time, shares surged nearly 15% in intraday trading on Thursday, May 15th. The company reported strong first-quarter 2025 results on May 15, driven by significant growth in its gaming division.

NetEase Inc. ($NTES) Stock

Adjusted earnings per share came in at 3.50 yuan ($0.49), surpassing the 2.80 yuan consensus estimate. Revenue totaled 28.83 billion yuan ($4 billion), up 7.4% year-over-year and ahead of expectations.

$NTES … Reports Q1 (Mar) earnings of RMB 17.51 per share, RMB 3.60 better than the FactSet Consensus of RMB 13.91; revenues rose 7.4% year/year to RMB 28.83 bln vs the RMB 28.45 bln FactSet Consensus. pic.twitter.com/mZljNntnFF

— Marty Chargin (@MartyChargin) May 15, 2025

Games and related value-added services generated 24.05 billion yuan in revenue, a 12% increase, and roughly 1 billion yuan above forecasts. Online games alone contributed 23.5 billion yuan, up 15% from a year ago. PC games revenue surged 85% year-over-year, comprising 34% of total online gaming revenue.

Franchise Success and Global Expansion

CEO William Ding highlighted the strength of NetEase’s game portfolio, noting the success of long-standing franchises and recent launches like Marvel Rivals and FragPunk. Global titles such as Once Human and Where Winds Meet also contributed to the segment’s expansion.

The company continues to use AI technology to enhance gameplay, driving engagement and subscription sales across its platforms. NetEase’s innovation strategy has positioned it as a key player in China’s and the global gaming markets.

Non-Gaming Segments Face Pressure

While gaming thrived, other business lines underperformed. Youdao revenue declined 7% year-over-year to 1.3 billion yuan. NetEase Cloud Music fell 8% to 1.9 billion yuan. The Innovative Businesses and Others segment, which includes retail and advertising, declined 17% to 1.6 billion yuan. FragPunk also saw a quick drop in player engagement post-launch, highlighting challenges in sustaining momentum in the FPS genre.

Management acknowledged the need for improved monetization strategies, especially for mobile titles like Once Human, which showed strong user interest but limited revenue conversion.

Strong Profitability and Shareholder Returns

Gross profit for the quarter rose 9% to 18.5 billion yuan, with gross margin improving to 64.1%. Operating expenses were 8 billion yuan, or 28% of net revenue. Non-GAAP net income increased 32% year-over-year to 11.2 billion yuan ($1.5 billion), with basic earnings per ADS at $2.44.

The company declared a dividend of $0.675 per ADS and repurchased 21.6 million ADS for $1.9 billion, supported by a robust cash position of 137 billion yuan as of March 31, 2025.

Outlook

NetEase’s strong Q1 performance reinforces its standing in the global gaming market. With continued investment in new titles and AI integration, the company is well-positioned to drive future growth. Investors will watch closely how NetEase balances gaming strength with improvements in its underperforming segments in the quarters ahead.

The post NetEase Inc. ($NTES) Stock: Surges on Strong Gaming Revenue in Q1 2025 appeared first on CoinCentral.

• RBC Bearings (RBC) closed at $368.19 on May 16, 2025.
• Q4 FY25 EPS of $2.83 beat estimates by 5.6%.
• Net sales rose 5.8% year-over-year to $437.7 million.
• Aerospace/Defense revenue jumped 10.6%.
• FY26 Q1 outlook projects up to 6.8% sales growth.

RBC Bearings Incorporated (NYSE: RBC) closed at $368.17 on Friday as it released its Q4 and full-year fiscal 2025 results on May 16, 2025.

RBC Bearings Incorporated (RBC)

The precision bearings and components manufacturer exceeded earnings expectations, reporting adjusted EPS of $2.83, above the Zacks consensus of $2.68. This marked a 5.6% earnings surprise and improvement from $2.47 in the year-ago period.

Net sales for the quarter totaled $437.7 million, up 5.8% from Q4 FY24. However, this slightly missed consensus estimates by 0.71%. The Aerospace/Defense segment led the way with 10.6% growth, while the Industrial division rose 3.3%.

RBC Bearings Incorporated, $RBC, Q4-25. Results:
🟢 +1% Pre-Market

📊 Adj. EPS: $2.83 🟢
💰 Revenue: $437.7M 🔴
📈 Net Income: $72.7M
🔎 Aerospace/Defense growth powered Q4 sales to $437.7M with strong margins and record cash flow used to reduce debt. pic.twitter.com/JHKDAytFpq

— EarningsTime (@Earnings_Time) May 16, 2025

Margin Gains and Profit Growth

Gross margin expanded to 44.2%, up from 43.1% last year. Net income attributable to common stockholders climbed to $72.7 million, compared to $55.9 million in Q4 FY24. Adjusted net income reached $89.3 million, compared to $72.3 million a year ago.

Diluted EPS stood at $2.30, with the adjusted figure at $2.83. Operating income improved to $100.7 million, up from $94.2 million. SG&A expenses increased to $72.1 million, or 16.5% of sales, up from 15.6%. Interest expense declined sharply to $12.8 million due to debt reduction and interest hedging strategies.

Strong Full-Year Performance

For fiscal year 2025, RBC Bearings reported net sales of $1.64 billion, a 4.9% increase from FY24. Aerospace/Defense grew 14.1%, while Industrial inched up 0.2%. Gross margin rose to 44.4% versus 43.0% last year. Net income attributable to common shareholders rose to 14.3% of net sales, up from 12.0%.

Adjusted EBITDA margin improved to 31.8%, and RBC has now exceeded EPS estimates in three of the last four quarters.

Outlook and Backlog

The company expects Q1 FY26 revenue between $424.0 million and $434.0 million, representing a year-over-year growth rate of 4.4% to 6.8%. Gross margin is projected between 44.25% and 44.75%, with SG&A expected to range from 16.75% to 17.25% of sales.

RBC ended the quarter with a backlog of $940.7 million, up from $896.5 million in December 2024 and $821.5 million a year ago, indicating robust demand.

Stock Performance and Analyst View

RBC stock has risen 22.8% year-to-date, outperforming the S&P 500’s 0.6% gain. Despite the earnings beat, revenue misses in recent quarters have led analysts to assign a Zacks Rank #3 (Hold), suggesting the stock may perform in line with the market.

With a solid margin profile and growth in high-value Aerospace/Defense segments, investor focus will now shift to Q1 FY26 execution and updates on cost controls.

The post RBC Bearings (RBC) Stock: Q425 Earnings Beat Boosts FY25 Confidence appeared first on CoinCentral.

• Q1 adjusted EPS of $0.35 missed expectations; revenue fell 1.4% YoY.
• Net income dropped 27.4% to $53M, pressured by sales decline and rising costs.
• Simple Mills contributed $24.3M in sales but posted a $4.2M net loss.
• 2025 EPS guidance cut to $1.05–$1.15 vs. prior $1.18–$1.28.
• Shares were trading at $17.14 after the results, down 0.41% at press time.

On May 16th, 2025, Flowers Foods, Inc. (NYSE: FLO) reported Q1 results that fell short of expectations. FLO stock was trading at $17.14 following the earnings release, down slightly by 0.41%.

Flowers Foods, Inc. (FLO)

The company posted adjusted earnings per share of $0.35, missing analyst forecasts of $0.38. Revenue fell 1.4% year over year to $1.55 billion, below the $1.60 billion estimate. Net income dropped 27.4% to $53 million due to lower sales, higher SD&A and interest expenses.

Flowers Foods, $FLO, Q1-25. Results:
🔴 -8.8% Pre-Market

📊 Adj. EPS: $0.35 🔴
💰 Revenue: $1.55B 🔴
🔎 Simple Mills added revenue but posted a net loss; volume declined, though adjusted EBITDA improved slightly. pic.twitter.com/en9FrYqkVg

— EarningsTime (@Earnings_Time) May 16, 2025

Adjusted EBITDA came in at $162 million, up 1.6%, with margin improving 30 basis points to 10.4% of net sales. Diluted EPS was $0.25, down $0.09 year over year.

Simple Mills Acquisition Adds Sales but Cuts Into Profit

The recent acquisition of Simple Mills brought in $24.3 million in revenue for the quarter. However, it resulted in a net loss of $4.2 million and contributed only $3.6 million to adjusted EBITDA.

Its negative impact on adjusted diluted EPS was $0.02, adding to the company’s overall margin pressures. Despite the loss, Flowers Foods sees strategic value in expanding into faster-growing categories through acquisitions like Simple Mills.

Lowered 2025 Outlook Due to Tariff Headwinds and Category Weakness

The company revised its full-year 2025 guidance downward. Adjusted EPS is now expected between $1.05 and $1.15, down from the prior $1.18 to $1.28 range. This compares to a consensus estimate of $1.16.

Total net sales are forecasted at $5.297 billion to $5.395 billion, versus previous guidance of $5.403 billion to $5.487 billion. Excluding Simple Mills, Flowers now expects net sales of $5.079 billion to $5.170 billion—representing flat to modest growth.

Adjusted EBITDA guidance was also cut to $534 million–$562 million, from the earlier $560 million–$591 million range. Excluding Simple Mills, adjusted EBITDA is seen at $504 million–$529 million.

Management Comments and Strategic Efforts

CEO Ryals McMullian emphasized the resilience of its brands and said the company is investing in innovation, targeting growth areas, and working to gain shelf space and new business to offset weakness.

He acknowledged the challenge from tariffs and a tough consumer environment but stressed long-term transformation efforts aimed at driving future outperformance.

Key Financial Assumptions for FY2025

• D&A: $170M–$175M
• Net interest expense: $63M–$68M
• Tax rate: ~25%
• Capital expenditures: $140M–$150M
• 53rd week expected to contribute ~$70M–$80M in sales and ~$0.02 to EPS

While Flowers Foods still sees growth potential through strategic moves, its near-term outlook remains clouded by cost pressures and soft category demand.

The post Flowers Foods, Inc. (NYSE: FLO) Stock: Cuts 2025 Outlook as Tariffs and Sales Slowdown Weigh on Q1 Results appeared first on CoinCentral.

• BRC stock trades at $71.38, down 6.37% after Q1 earnings

• Q1 revenue rose 11.4% YoY to $382.6M but missed estimates

• Adjusted EPS hit a record $1.22, up 11.9% YoY

• Full-year EPS guidance narrowed to $4.48–$4.63

• $44.5M returned to shareholders via dividends and buybacks

 Brady Corporation (NYSE:BRC) shares declined 6.37% to $71.38 following its fiscal Q3 2025 (calendar Q1) earnings report.

Brady Corporation (BRC)

The company posted revenue of $382.6 million, representing an 11.4% increase year over year, though it missed analysts’ forecast of $386.6 million. Organic sales rose 1.6%, while acquisitions contributed 10.5%. A 0.7% currency headwind slightly offset gains.

🚨EARNINGS ALERT🚨

Notable earnings released for today:

Brady Corporation $BRC: $1.22 EPS vs $1.23 est. / $382.6M Revenue vs $386.61M est.

Flowers Foods Inc $FLO: $0.35 EPS vs $0.38 est. / $1.55B Revenue vs $1.6B est.

— The Tokenist (@thetokenist) May 16, 2025

Regionally, revenue in the Americas & Asia grew 12.9% while Europe & Australia saw an 8.7% increase. However, organic growth in Europe & Australia declined by 5.4%, signaling potential challenges outside North America.

Record Adjusted EPS and Tightened Outlook

Despite the revenue shortfall, Brady achieved a record adjusted diluted EPS of $1.22, a jump from $1.09 in the same quarter last year, aligning with Wall Street expectations. GAAP diluted EPS rose 3.8% to $1.09. Management cited strong organic sales in the Americas & Asia and continued investment in R&D and product development as key drivers.

The company updated its fiscal 2025 earnings guidance, narrowing its adjusted EPS range from $4.45–$4.70 to $4.48–$4.63. GAAP EPS guidance was lowered to $3.95–$4.10, down from $3.99–$4.24, factoring in restructuring and facility closure costs. The earnings date was May 16, 2025.

Profit Margins and Cash Flow Trends

Operating margin held steady at 17.6%, while free cash flow margin declined to 14.5% from 18.8% a year earlier. Income before taxes was $65.7 million, a 2.1% increase. On an adjusted basis, it climbed 11.5% to $74.4 million. Net income totaled $52.3 million, slightly higher than the $50.9 million recorded last year.

Strong Capital Return Program

Brady continued to reward shareholders by returning $44.5 million through share repurchases and dividends during the quarter. This included repurchasing 476,000 shares for $33.2 million and distributing $11.3 million in dividends. The company’s share count has declined 9.3% over the past five years, enhancing EPS growth.

Steady Long-Term Performance

Over the last five years, Brady’s annualized revenue growth stands at 5.4%, with EPS growing at a stronger 12.9% CAGR. These trends suggest improved profitability and operational efficiency. Analysts project 6.3% revenue growth over the next 12 months, in line with recent results and above sector averages.

Despite posting record EPS and a solid long-term growth profile, the stock fell as investors reacted to the revenue miss and cautious earnings outlook.

The post Brady Corporation (NYSE: BRC) Stock: Dips Despite 11.9% YoY EPS and Raised Buybacks appeared first on CoinCentral.

• Addentax plans to acquire $800M in crypto, including 8,000 BTC, via stock issuance.
• Company eyes Official Trump tokens alongside Bitcoin as part of digital asset push.
• ATXG stock drops nearly 10% despite announcing major crypto acquisition strategy.
• Deal involves equity-for-crypto swap to boost liquidity and blockchain exposure.
• Addentax shifts from textiles to digital finance, aiming for long-term crypto holdings.

Addentax Group Corp. (Nasdaq: ATXG) announced a strategic plan to acquire a significant crypto portfolio through equity financing. The company aims to obtain digital assets, including Bitcoin and Official Trump tokens, by issuing new common stock. ATXG stock declined nearly 10% today, trading at $0.6045 as of 12:23 PM EDT.

Bitcoin Acquisition Talks Underway

Addentax is in advanced discussions to acquire up to 8,000 BTC from a group of established crypto holders. Based on current market prices, the total value of the digital assets under negotiation stands at approximately $800 million. These talks remain non-binding, though the parties involved reportedly control the targeted assets.

The acquisition will proceed through a stock issuance model, exchanging equity for digital assets. This move reflects Addentax’s intention to diversify its holdings beyond traditional industries. The company seeks to improve liquidity while entering the digital asset market with scale.

ATXG has outlined the acquisition as part of a broader blockchain adoption strategy. The company aims to establish a presence in digital finance through substantial long-term holdings. The stock-based structure could also attract participants who are experienced in blockchain and decentralized markets.

Official Trump Token Considered

Besides Bitcoin, Addentax confirmed its interest in acquiring other mainstream tokens such as Official Trump. These assets are also expected to be exchanged using common stock rather than cash. The sellers involved reportedly hold both BTC and these alternative tokens.

Addentax believes that mainstream digital assets will enhance its balance sheet strength. This approach offers dual advantages: adding liquid assets while onboarding strategic stakeholders. These stakeholders could offer market access and technical knowledge in the evolving crypto sector.

The company stated that the transaction will support its efforts to integrate digital assets into its treasury strategy. This mirrors moves by other public firms that have adopted Bitcoin as a reserve asset. Consequently, Addentax anticipates long-term value through direct exposure to key blockchain instruments.

Stock Movement and Market Position

Despite the crypto acquisition news, ATXG shares experienced a sharp decline during early trading hours. The stock opened with volatility, briefly touching $0.67 before falling steadily throughout the morning. As of midday, the share price had dropped 9.78% amid broader market fluctuations.

Addentax operates primarily in logistics and textile manufacturing and is based in China. The new strategy marks a significant shift into financial technology and blockchain integration. If completed, the deal would represent one of a microcap U.S. company’s most considerable crypto asset acquisitions.

Market analysts note that the plan signals growing interest from traditional sectors in digital asset adoption. Addentax’s approach differs because it uses equity financing rather than fiat purchases to secure long-term crypto positions. The company expects this alignment to offer stability and growth potential.

Future Outlook

Addentax’s proposed $800 million crypto deal reflects an ambitious push into blockchain finance. The firm targets Bitcoin and other tokens through common stock issuance to diversify and strengthen its asset base. The outcome may reshape ATXG’s corporate direction and shareholder profile

The post Addentax Group Corp. (ATXG) Stocks: Eye $800M Bitcoin Portfolio via Stock Swap appeared first on CoinCentral.

• Cathie Wood’s ARK purchased 140,000 shares of eToro worth $9.38 million
• eToro’s IPO priced at $52 per share, above the expected $46-$50 range
• Shares opened at $69.69 and closed at $67 on debut day, up 29%
• eToro’s market cap reached $5.5 billion based on closing price
• Company reported 3.5 million funded accounts and 1,161% surge in net income to $192 million in 2024

eToro Group Ltd (ETOR) made a splashy entrance into public markets on Wednesday, catching the eye of star investor Cathie Wood. Her investment firm ARK scooped up 140,000 shares of the trading platform on its first day of trading.

The purchase was made through ARK’s Fintech ETF. The investment is valued at $9.38 million based on Wednesday’s closing price.

eToro priced its initial public offering at $52 per share. This was above the expected range of $46 to $50 that the company had set earlier.

Cathie Wood's ARK Invest snapped up $9.4M worth of eToro $ETOR shares yesterday

After hitting a high of $74 on it's Nasdaq debut, the stock is currently trading at $64 📉 pic.twitter.com/cggeGPmPWw

— Trader Edge (@Pro_Trader_Edge) May 15, 2025

When trading began, investor enthusiasm pushed the opening price to $69.69. By the end of the day, shares settled at $67, marking a 29% gain from the IPO price.

The company also increased the size of its offering. eToro upsized from the originally planned 10 million shares to 11.9 million shares.

Market Response and Valuation

The strong first-day performance gave eToro a market capitalization of $5.5 billion. This valuation reflects investor confidence in the company’s growth potential.

For Wood’s ARK Invest, this move fits with its existing portfolio strategy. ARK already holds positions in eToro’s main competitors.

Both Robinhood Markets Inc (NASDAQ:HOOD) and Coinbase Global Inc (NASDAQ:COIN) are major holdings in ARK’s Fintech ETF. They currently rank as the second and third largest positions in the fund.

This latest purchase shows Wood’s continued interest in trading platforms and cryptocurrency-related businesses.

Company Performance

eToro has shown impressive growth in recent periods. The company ended 2024 with 3.5 million funded accounts across 75 countries.

Its financial results have been eye-catching. Net income jumped by 1,161% last year, reaching $192 million.

The platform offers a range of investment options. Users can trade stocks and options through the service.

eToro was also an early entrant in cryptocurrency trading. This position has helped it capture market share as digital assets gained mainstream attention.

The successful IPO comes during a period of renewed interest in trading platforms. Retail investor participation has remained strong following the surge that began during the pandemic.

eToro’s public debut follows years of private growth. The company has built its brand around social trading features that let users follow and copy other investors’ strategies.

The increased offering size suggests strong demand from institutional investors during the IPO process. Underwriters saw enough interest to expand the number of shares available.

ARK’s quick move to acquire shares indicates Wood’s team had been watching eToro closely. The purchase was executed on the very first day of public trading.

The stock closed slightly lower on Thursday at $66.85, representing a minor decrease of 0.22% from its first-day closing price.

The post eToro (ETOR) Stock: Cathie Wood’s ARK Invests $9.4 Million in Red-Hot Trading Platform IPO appeared first on CoinCentral.

• QUBT shares rose 11.8% in premarket trading after reporting Q1 earnings
• Company posted $0.11 EPS, beating analyst expectations of a $0.07 loss
• Q1 revenue was $39,000, missing analyst estimates of $100,000
• Net income reached $17 million compared to a $6.4 million loss in Q1 2024
• QUBT completed construction of its Quantum photonic chip foundry in Tempe, Arizona

Quantum Computing Inc. shares jumped nearly 12% in premarket trading following the company’s first-quarter earnings report that delivered unexpected profits despite revenue shortfalls.

Quantum Computing Inc. (QUBT) saw its stock price climb sharply on Friday after the quantum technology company reported a surprise profit for the first quarter of 2025.

The company’s shares rose 11.8% to $10.33 in premarket trading after releasing financial results that beat earnings expectations despite falling short on revenue targets.

Quantum Computing reported first-quarter earnings of 11 cents per share, significantly outperforming analyst estimates that had projected a loss of seven cents per share.

This marks a major turnaround from the same period last year when the company posted a net loss of $6.4 million.

Revenue for the quarter came in at $39,000, which represents growth from the $27,000 reported in Q1 2024.

However, this figure missed analyst expectations of $100,000 according to data from Benzinga Pro.

Financial Position Strengthens

The company’s balance sheet showed substantial improvement during the quarter.  Total assets increased to $242.5 million as of March 31, 2025, up from $153.6 million at the end of 2024.

Cash and cash equivalents saw a dramatic boost, increasing by $87.5 million to reach $166.4 million by the end of the quarter.  This improved liquidity position gives the company more runway to fund its quantum computing initiatives.

Total liabilities decreased by approximately $25 million compared to year-end 2024, now standing at $21.7 million.  Meanwhile, stockholders’ equity rose to $220.8 million, reflecting the company’s strengthened financial position.

The gross margin decreased to 33% from 41% in Q1 2024, showing some variability at current revenue levels. Operating expenses increased to $8.3 million from $6.3 million in the same quarter last year, primarily due to higher employee-related costs.

Operational Milestones

Quantum Computing achieved several key operational milestones during the quarter that may have contributed to investor optimism.

The company completed construction of its Quantum photonic chip foundry in Tempe, Arizona, marking an important step in its manufacturing capabilities.

This facility is expected to play a crucial role in the company’s future production plans.

QUBT also secured its fifth purchase order for foundry services from a leading Canadian research institute, suggesting growing international demand for its quantum computing capabilities.

The company announced a new collaboration with the Sanders Tri-Institutional Therapeutics Discovery Institute.  This partnership will leverage QUBT’s Dirac-3 quantum optimization machine for advanced research applications.

Building on previous work with NASA, Quantum Computing secured a new subcontract with NASA’s Langley Research Center.

This agreement will apply the company’s Dirac-3 quantum machine to space agency research projects.  The company also strengthened its leadership team by adding Eric Schwartz to its Board of Directors.

Schwartz brings over 20 years of experience in financing, mergers and acquisitions, and corporate strategy.  Despite these positive developments, the company acknowledged it remains in the early stages of customer discovery and product validation.

This process takes time and could delay significant revenue growth in the near term.  The latest quarterly results show Quantum Computing’s net income reached $17 million or $0.13 per basic share, compared to its $6.4 million loss in the first quarter of 2024.

The post Quantum Computing Inc (QUBT) Stock: Shares Rally On Surprise Q1 Earnings Beat appeared first on CoinCentral.

• Citi raised Microsoft’s price target from $480 to $540, maintaining a Buy rating
• Microsoft announced a 3% workforce reduction expected to save over $1 billion
• Microsoft and OpenAI are resetting their partnership, potentially reducing Microsoft’s equity stake for extended technology access
• Microsoft stock has gained 18.9% in the past month despite broader economic challenges
• The company expects continued growth in Azure cloud services and maintains strong capital expenditure plans

Microsoft’s stock received a boost this week as Citi analysts raised their price target to $540 from $480 while maintaining a Buy rating on the tech giant’s shares. This adjustment follows Microsoft’s recent workforce reduction announcement and strong fiscal third-quarter 2025 results.

The company, currently valued at $3.37 trillion, has seen 24 analysts revise their earnings estimates upward for the upcoming period. Price targets now range from $429.86 to $650, reflecting widespread optimism about Microsoft’s prospects.

Microsoft recently announced a 3% reduction in its workforce. This move is expected to generate over $1 billion in net savings into fiscal year 2026, helping to offset increasing costs from depreciation and capital expenditures.

The tech giant’s management has expressed confidence in the current demand environment and investment cycle. They’ve confirmed expectations of capital expenditure growth for both the fourth fiscal quarter of 2025 and the full fiscal year 2026.

Citi’s optimistic outlook is reflected in their raised growth projections for Azure, Microsoft’s cloud computing service. They now anticipate 35% year-over-year constant currency growth in the fourth fiscal quarter and expect to maintain growth rates in the 30s percentage range for fiscal year 2026.

Partnership Evolution

In other significant news, Microsoft and OpenAI are working to reset their partnership. This development represents the latest chapter in a relationship that has been building between the two companies for the past six years.

The partnership initially began in 2019 with a $1 billion investment from Microsoft. Over time, that investment grew to over $13 billion, giving Microsoft access to OpenAI’s ChatGPT generative AI program. During this period, Microsoft built its network of AI agents (Copilots) that run on top of ChatGPT.

This strategic alliance has helped vault Microsoft to the forefront of the AI race. Shareholders have benefited tremendously, with MSFT stock delivering a total return of over 140% in the last five years.

However, the relationship has faced challenges since 2023. Tensions surfaced with OpenAI’s decision to fire Sam Altman in December 2022, raising questions about the partnership’s future direction.

By January 2025, the companies appeared to be heading for a potential breakup when Microsoft confirmed it would no longer be OpenAI’s sole cloud provider. However, OpenAI made a “new, large commitment” to Microsoft’s AI cloud computing platform, Azure.

Financial Implications

The reset partnership may involve Microsoft reducing its equity stake in OpenAI in exchange for access to new technology developed by OpenAI beyond the previously established 2030 cutoff. This would represent a key concession from OpenAI and provides another reason for long-term investors to remain bullish on MSFT stock.

Microsoft’s stock has demonstrated resilience, rising about 3% during a week when bulls returned to Wall Street. While this is below the returns of other technology stocks like NVIDIA and Apple, Microsoft had less ground to recover. Over the past month, MSFT stock has gained an impressive 18.9%.

Analysts view Microsoft as largely “tariff-proof.” While the company will have some exposure through its Xbox system, its software products remain largely immune to tariff concerns.

At 36x earnings, MSFT stock is trading at a slight premium to its historical averages and near the top of its 52-week range. The stock is currently trading at $453.13, up 0.04% as of the most recent close.

Citi has reiterated its Buy rating for Microsoft, basing the raised price target of $540 on a 44x multiple of the 2026 estimated enterprise value to free cash flow and a 36x price-to-earnings multiple.

The company is also making progress on regulatory fronts. Microsoft’s proposal to adjust the pricing of its Office product with and without the Teams app is reportedly set to be accepted by European Union antitrust regulators, potentially resolving a long-standing case following a complaint from Slack.

Microsoft stock continues to show strength despite recent workforce reductions, with the company’s leading position in generative artificial intelligence and cloud computing driving investor confidence.

The post Microsoft (MSFT) Stock: Why Analysts Are Getting Even More Bullish on the Tech Giant appeared first on CoinCentral.

• Stephen Hemsley returns as UnitedHealth CEO with a $61M pay package, mostly in stock options vesting after three years
• UNH shares have fallen 59% from their peak six months ago
• The company suspended its 2025 earnings outlook on May 13 and announced immediate CEO transition
• Higher-than-expected healthcare utilization rates are squeezing profit margins
• Despite current struggles, the company’s dividend yield has risen to 3.3% at recent prices

UnitedHealth Group’s board has turned to a familiar face to guide the healthcare giant through turbulent waters. Stephen Hemsley, who previously led the company for more than a decade until 2017, has returned as CEO, replacing Andrew Witty who departed on May 13.

Hemsley, 72, takes the helm during a challenging period. UnitedHealth has seen its stock price plummet by more than half in the past month following disappointing first-quarter results and reduced earnings projections.

The returning CEO will receive a pay package worth $61 million, consisting primarily of stock options valued at $60 million that vest after three years, plus a $1 million annual salary. Notably, his compensation package doesn’t include an annual bonus, an unusual arrangement for a CEO of such a large company.

The stock options will vest all at once after three years without performance criteria that have become standard in modern executive compensation plans. This structure suggests Hemsley’s appointment is expected to last at least three years.

His compensation agreement includes provisions that would allow him to keep the stock options in most circumstances if he leaves before the three-year mark. If removed from his position after the first year, the options would continue to vest for two years while he would be barred from working for competitors.

What Went Wrong

UnitedHealth’s current problems stem from healthcare expenses outpacing the monthly premiums it collects. The company has been particularly poor at anticipating this trend compared to its competitors.

On April 17, UnitedHealth adjusted its 2025 earnings outlook downward, from a range of $28.15-$28.65 per share to $24.65-$25.25 per share. Less than a month later, on May 13, the company took the unusual step of suspending its guidance altogether.

During a May 13 conference call, UnitedHealth President and CFO John Rex identified two key issues affecting profit margins. First, new members’ health status isn’t as robust as anticipated. Second, utilization within the Medicare Advantage program has accelerated beyond previous projections, with the trend spreading to other areas.

The situation has been so uncertain that on May 15, UNH shares fell to a level 59% below their peak from six months earlier. The stock now trades at approximately 10.7 times trailing earnings, an ultra-low valuation for the healthcare giant.

Recovery Prospects

Despite current challenges, there are reasons for optimism about UnitedHealth’s long-term prospects. While the company mispriced premiums for 2025, it can adjust pricing for 2026. Management is already incorporating higher costs into Medicare Advantage bids due in June.

UnitedHealth maintains structural advantages over competitors. Its integrated-care strategy can offer savings that smaller, less-integrated competitors can’t match. Through Optum Health, it employs around 10% of America’s physicians, likely making it the country’s largest physician employer.

The company also operates Optum RX, one of the three largest pharmacy benefits management businesses, giving it strong negotiating power. This integrated approach has historically helped UnitedHealth deliver consistent earnings growth.

For income-focused investors, the stock’s beaten-down price has pushed its dividend yield to 3.3%. Over the past decade, UnitedHealth increased its dividend by 320%. While dividend growth may slow in the near term, the current payout of $8.40 per share annually appears sustainable even if 2025 earnings decline substantially.

Though management has suspended specific guidance for 2025, they maintain confidence in generating double-digit percentage earnings growth over the long run. Even with more modest growth, the current valuation could provide opportunities for patient investors.

Hemsley helped transform UnitedHealth from an insurance company into a $400 billion conglomerate during his previous tenure. Shareholders are hoping his return signals a path back to the steady earnings growth that characterized his earlier leadership.

The most pressing task for the returning CEO will be addressing the utilization trends that have thrown the company’s forecasting off track. How quickly Hemsley can right the ship will determine whether UnitedHealth can return to its position as a healthcare industry stalwart.

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