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![Small-cap stocks are on a tear—but shares in tiny companies have done even better]()
Small-cap stocks are on a tear—but shares in tiny companies have done even better
- Everything looks great for small-cap stocks, with just one caveat, says chart watcher
- These 7 stocks could profit handsomely from a cashless future
- Mark Hulbert: Stock market risk is always far higher than you think
- Simon Maierhofer: Will the bearish Dow streak infect the rest of the stock market?
- Dow on track for 8th loss in a row as trade gloom lingers
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Need to Know
![A death cross is forming in gold even as trade turmoil rattles stock market]()
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Personal finance
![My new wife wanted to live with me for free, even though she had $800,000 in the bank—so I asked her to move out]()
My new wife wanted to live with me for free, even though she had $800,000 in the bank—so I asked her to move out
This man wants to know how they should split their assets.
![Is this a wise alternative to credit cards?]()
Is this a wise alternative to credit cards?
Cash-back debit cards are growing in popularity, especially among millennials who shun credit.
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Inside Marketwatch
Netflix stock price target raised by $100 to $465 at Raymond James in latest bullish note
Netflix Inc. shares edged down with the broader market on Thursday, after Raymond James raised its stock price target by $100 to $465 on strong momentum for its international business and continued growth in the U.S. The new price target is 12% above its current level and comes after a slew of other bullish notes and price target increases this week. "Media consolidation and the shift to more over-the-top (OTT)/direct-to-consumer models plays to Netflix's strengths (e.g. personalization, year round quality programming, service reliability) and may provide a driver for price increases over time," analyst Justin Patterson wrote in a note. Raymond James is expecting Netflix to gain market share around the globe and to retain customers thanks to the depth of its library and pricing power. The company enjoys "material margin expansion potential," and is well-positioned for long-term per-share earnings growth and free cash flow generation, he wrote. The company could have more than 280 million global subscribers by 2024, given the success of shows like the German series "Dark," which had 90% of its viewership outside Germany. Shares were down 0.4% in early trade Thursday, but have gained 116% in 2018 so far and set successive records. The stock is trading at $415.12, after passing the $400 level for the first time earlier this week. The S&P 500 has gained 3.2% in 2018.
AT&T to receive $1.1 billion in deal with Brookfield Infrastructure
AT&T Inc. said Thursday it has entered an alliance with Broofield Infrastructure to offer colocation and other services to customers in 18 Internet Data Centers in the U.S. and 13 overseas. As part of the deal, AT&T will receive $1.1 billion, which it will use to reduce debt. Once the deal closes, expected in six to eight months, customer contracts, employees supporting the alliance, fixed assets, and leased and owned facilities will be transferred to Brookfield. "AT&T will become an active sales channel for the business and will be the anchor tenant of the colocation operations," the company said in a statement. "AT&T will continue to offer customers access to colocation services at more than 350 data centers -- including transferred IDCs -- around the world as part of AT&T's colocation ecosystem program." AT&T shares were up 0.4% premarket but are down 17.7% in 2018, while the S&P 500 has gained 3.5%.
Sirius XM stock falls after Goldman downgrades to sell
Sirius XM Holdings Inc. shares are down 4.1% in Thursday trading after Goldman Sachs analyst Brett Feldman downgraded the stock to sell from neutral. "We believe the stock's material YTD outperformance (+40% vs. +4% for the S&P 500) has been driven primarily by a range of positioning factors including its relationship with its tracking stock , declining short interest, and Sirius's high share repurchases relative to its low float," Feldman wrote. "We see limited upside potential to subscriber and financial estimates over the near-to medium-term given the slowing pace of new car sales in the US, a maturing used car subscriber acquisition funnel and limited opportunity to increase pricing in the near-term." He has a $6 price target on the stock. Sirius's stock has gained 43% over the past 12 months, while the S&P 500 has gained 14%.
Starbucks launching two new summer lemonades
Starbucks Corp. said Thursday that it is launching two new limited-time Cold Foam Tea Lemonades on June 22 in the U.S. and Canada. Summer Sunrise includes a pineapple infusion and foam that's flavored with Teavana Passion Tango herbal tea. Passion Tango tea is included in the Summer Sunset beverage as well. Cold foam is made with blended nonfat milk and is included in other cold beverages on the menu. Starbucks, which ended Wednesday down more than 9% after announcing same-store sales guidance and its company strategy, has been focused on the "Instagram-worthiness" of its latest creations. The company is also focused on "better-for-you" offerings, according to remarks from Chief Executive Kevin Johnson at a recent Oppenheimer conference. Starbucks shares are down 9.1% for the year to date, while the S&P 500 index is up 3.5% for the period.
Olive Garden parent Darden Restaurants' shares jump 8.3% after earnings beat
Darden Restaurants Inc. shares jumped 8.3% in Thursday premarket trading after the company reported fiscal fourth-quarter earnings that beat expectations. Net income for the quarter totaled $174.5 million, or $1.39 per share, up from $123.8 million, or 98 cents per share, for the same period last year. Adjusted EPS was also $1.39. Revenue was $2.13 billion, up from $1.93 billion last year. The FactSet consensus was for EPS of $1.35 and revenue of $2.13 billion. Same-store sales for Darden's legacy brands, which includes Olive Garden (up 2.4%), The Capital Grille (up 2.6%), and Eddie V's (up 3.6%) was up 2.2%. Same-store sales for Cheddar Scratch Kitchen, a more recent acquisition, was down 4.7% for the quarter. For fiscal 2019, Darden expects same-store sales growth of 1% to 2%, sales growth of 4% to 5%, and EPS of $5.40 to $5.56. The FactSet consensus is for EPS of $5.41. On Wednesday, Darden raised its dividend 19% to 75 cents per common share, payable to shareholders of record on July 10, 2018. And the company authorized a new share repurchase program of $500 million. Darden shares are down nearly 3% for the year to date, but up 5.7% for the last 12 months. The S&P 500 index is up 3.5% for 2018 so far.
