Costco Stock Options Hot After Membership Price Change

Category: Business

Costco Wholesale Corporation raised membership prices in North America for the first time since 2017. The stock received multiple price-target hikes in response and is currently down 3.1% after reaching an all-time high. Options trading activity suggests potential positive momentum for Costco stock.

Keywords: Costco Wholesale Corporation, membership prices, stock market, options trading, price-target hikes

Source: Schaeffers Research

Update At: 7/12/2024

Related Sources

My Top 9 Growth Stocks to Buy Now in August

John Mackey and Suzanne Frey are board members of The Motley Fool, which recommends various companies including Alphabet and Amazon. Parkev Tatevosian has positions in Alphabet and PayPal and is affiliated with The Motley Fool, potentially earning compensation for promoting its services.

The Motley Fool

Google loses antitrust suit over search payments (NASDAQ:GOOG)

Google lost its antitrust suit over search, with the court ruling that it violated the Sherman Act by maintaining a monopoly in search services and text advertising through exclusive agreements. This decision marks a significant victory for the Justice Department in addressing anticompetitive practices in the tech industry.

Seeking Alpha

Google's antitrust loss could put billions at risk for Apple

A recent ruling by Judge Amit Mehta in favor of the Department of Justice against Google could significantly impact both Google's search and advertising business and its long-standing revenue-sharing agreement with Apple. This agreement, which has been in place since 2002, sees Google paying Apple a substantial portion of search revenue generated on Apple devices. If the agreement is terminated, it could result in a loss of $20 billion for Apple and a potential revenue drop of $28 billion to $32 billion for Google.

Yahoo Finance

Intel CEO draws mixed reactions for posting Bible verse after announcing layoffs

Intel CEO Pat Gelsinger faced backlash for quoting Proverbs on social media after announcing significant layoffs amid a sharp decline in the company's stock price. Gelsinger's biblical reference drew criticism from users who mocked his approach during a challenging time for the tech giant, which is cutting about 17,000 jobs as part of a $10 billion cost-reduction plan. The company's stock plummeted 26%, marking its worst day in 50 years, despite receiving substantial federal grants to support chipmaking.

Christian Post

Super Micro's Weak Profit Fuels AI Server Margin Anxieties

Super Micro Computer Inc. reported quarterly revenue of $5.31 billion and profit of $6.25 per share, both missing analysts' estimates. The company forecasts revenue between $26 billion and $30 billion for the fiscal year ending June 30, 2025, exceeding Wall Street projections. Despite a surge in demand for AI-related equipment, concerns about long-term profitability persist, leading to stock volatility following the earnings report and a 10-for-1 stock split announcement.

Yahoo Finance

Super Micro's Weak Profit Fuels AI Server Margin Anxieties

Super Micro Computer Inc. reported quarterly revenue and profit that fell short of analysts' expectations, with profit at $6.25 per share and sales at $5.31 billion, both below forecasts.

Bloomberg.com

Super Micro gives margin, profit forecast below estimates; volatile shares down 14%

Super Micro Computer reported a fourth-quarter adjusted gross margin of 11.3%, below the expected 14.1%, due to high costs from transitioning to AI chips. Despite a volatile stock reaction, the company forecasts first-quarter and annual sales above estimates, with net sales expected between $6 billion to $7 billion. Analysts remain concerned about the impact of spending on new AI chips on profit margins.

Yahoo Finance

Disney beats estimates as combined streaming services turn a profit

Disney's fiscal third-quarter earnings exceeded analyst expectations, with a 19% increase in total segment operating income to $4.225 billion. The company's combined streaming businesses, including Disney+, Hulu, and ESPN+, turned a profit of $47 million, marking a significant turnaround from a $512 million loss in the same quarter last year. However, the direct-to-consumer streaming unit, excluding ESPN+, reported a loss of $19 million.

CNBC

Disney’s streaming business turned a profit for the first time

Disney's streaming business has achieved profitability for the first time, reporting a $47 million profit in Q3, a significant turnaround from a $512 million loss last year. Disney Plus and Hulu contributed to this success, while ESPN Plus continued to incur losses. Subscriber growth for Disney Plus and Hulu has been modest, with Disney Plus reaching 54.8 million subscribers and Hulu 51.1 million.

The Verge

Disney’s Parks Struggle, Exposing a New Trouble Spot

Disney's theme parks are facing challenges due to reduced consumer spending amid high inflation, leading to weaker-than-expected financial results. Revenue increased by 2% to $8.4 billion, but operating profit declined by 3% to $2.2 billion. The company is managing costs aggressively as demand softens, which could affect future quarters. Theme parks have become crucial for Disney's financial health, contributing significantly to operating profit and funding expansions in streaming and cruise lines.

The New York Times