Short interest for Breeze Holdings Acquisition Corp. - Right gives investors a sense of the degree to which investors are betting on the decline of Breeze Holdings Acquisition Corp. - Right's stock. Short interest data is updated every two weeks.

Breeze Holdings Acquisition Corp. - Right Stock (NASDAQ:BREZR), Short Interest Report

Breeze Holdings Acquisition Corp. - Right

Trading Ideas

AMC Entertainment Holdings Shares Halted On Circuit Breaker To The Downside, Stock Now Up 121.2%

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk on Monday explained his decision to make the <a href="https://www.benzinga.com/news/24/02/37356873/elon-musk-says-upcoming-tesla-roadster-to-debut-with-spacex-tech-for-speed-boost-there-will-never-be">upcoming Roadster</a> faster than the company&#8217;s Model S sports sedan on the heels of a report that his team was made aware of the vehicle&#8217;s new specs only from his post. 
What Happened: &#8220;It would also obviously be ridiculous for the Roadster to achieve simply the same 0-60mph time as Model S, even though it is a 2-door fully performance-oriented vehicle,&#8221; Musk wrote on X, formerly Twitter.
<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">It would also obviously be ridiculous for the Roadster to achieve simply the same 0-60mph time as Model S, even though it is a 2 door fully performance-oriented vehicle
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1790100016746352938?ref_src=twsrc%5Etfw">May 13, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The upcoming Tesla Roadster, Musk said in February, can accelerate from 0 to 60 mph in less than 1 second, lower than the company&#8217;s initial estimate of 1.9 seconds. Tesla&#8217;s Model S Plaid, meanwhile, can achieve the same speed in 2.1 seconds. 
Musk was responding to an exclusive report from The Information which said that employees at the company were made aware of the new specifications on the Roadster only from Musk&#8217;s tweet.
&#8220;The [Wrong] Information,&#8221; Musk wrote about the report, without specifying specific inaccuracies. 
<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">The [Wrong] Information
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1790099573228085748?ref_src=twsrc%5Etfw">May 13, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The Information also noted that the company&#8217;s upcoming lower-price electric vehicle nicknamed the Model 2 and expected to be priced at $25,000 was nearly ready when the CEO scrapped it in February and decided to focus all <a href="https://www.benzinga.com/news/24/04/38286437/tesla-ceo-elon-musk-says-going-balls-to-the-wall-for-autonomous-driving-is-blindingly-obvious-as-eve">of the company&#8217;s resources on robotaxis</a>. 
Why It Matters: Musk&#8217;s Tesla has not officially clarified the status of its Model 2. The robotaxi, however, will be unveiled on August 8, Musk said. 
The new Roadster, meanwhile, is expected to be unveiled by the end of 2024 with deliveries slated to start in 2025. The vehicle relies on a collaboration between Musk&#8217;s two companies- Tesla and SpaceX- to provide the incredible performance, the CEO said. 
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a href="http://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read More:&nbsp;<a href="https://www.benzinga.com/news/24/05/38782522/spacex-starship-likely-to-fly-for-4th-time-next-month-as-elon-musk-reaffirms-new-goals" target="_blank" rel="noreferrer noopener">SpaceX Starship Likely To Fly For 4th Time Next Month As Elon Musk Reaffirms New Goals</a>
Image made via photos on Shutterstock

News

Tech

TSLA

Tesla CEO Elon Musk Says Making New Roadster Only As Fast As Model S Plaid Would Be 'Ridiculous'

Wells Fargo analyst Neil Kalton maintains Emera (TSX:<a class="ticker" href="https://www.benzinga.com/stock/EMA#TSX">EMA</a>) with a Equal-Weight and raises the price target from C$49 to C$53.

Price Target

Analyst Ratings

TSX:EMA

Wells Fargo Maintains Equal-Weight on Emera, Raises Price Target to C$53

GameStop Shares Halted On Circuit Breaker To The Downside, Stock Now Up 98.3%

Real estate magnate Grant Cardone said a tax credit for first-time homebuyers isn't a solution to the housing affordability crisis. He highlighted that the median monthly mortgage payment is up 78% since 2021 to $2,894.
In a May 12<a href="https://twitter.com/grantcardone/status/1789698564504916208?s=46"> post on X</a>, Cardone doesn't mince words. He raises the possibility that Biden either lacks an understanding of basic financial mathematics or underestimates the intelligence of the electorate. He suggests that the situation epitomizes career politicians&#8217; detachment from ordinary people&#8217;s everyday financial struggles. The detachment arises from their lack of firsthand experience managing personal finances and budgets.
"Is Joe dumb or does he just think his constituents are? Or maybe this is simply a problem with career politicians who have never actually paid bills, run a budget or managed their own money," Cardone posted.
Don't Miss:
<ul>
<li>Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." <a href="https://www.benzinga.com/money/bezos-landlord-100-dollars">Here's how you can collect passive rental income without being a landlord</a>.</li>
<li>Elon Musk, Ken Griffin and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. <a href="https://www.benzinga.com/money/cityfunds-yield">Investing in its booming real estate market has never been more accessible</a>. </li>
</ul>
Biden proposed a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 for each year of two years. The credit is designed to offset the cost of buying a house, which has become unaffordable for middle-income Americans because of high prices and elevated mortgage rates.
But Cardone said it's not just the increase in the monthly mortgage payment that's burdening homebuyers. Insurance, property taxes and private mortgage insurance (PMI) also must be considered.
According to Cardone's calculations, a $35,000 annual mortgage payment would require $5,000 in insurance per year, $5,000 in property taxes, and $8,000 in PMI, for a total annual payment of $63,000. That works out to paying $1.59 million over 30 years, assuming taxes, insurance and maintenance on the house don't increase.
Cardone has been an outspoken critic of several of Biden's tax proposals. He recently aimed the Biden administration's<a href="https://www.benzinga.com/real-estate/24/05/38642088/grant-cardone-slams-bidens-tax-proposal-as-another-attempt-to-destroy-middle-class-america"> proposed 25% tax on unrealized gains</a> on taxpayers with wealth greater than $100 million. Unrealized gains are an increase in the value of an asset on paper, not a gain through a sale or other event.
If the value of a home or stocks rose $400,000, Cardone said the homeowner or investor would owe $25,000 in taxes, if they didn't sell the asset.
Cardone has also said that supply and demand are impacting home prices, not high interest rates. High interest rates are keeping homeowners with lower rates from selling their houses. They don't want to lose the attractive rates they secured several years ago, which is keeping the supply low.
&nbsp;Read Next:
<ul>
<li>Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to this <a href="https://www.benzinga.com/money/bezos-landlord-100-dollars">Jeff Bezos-backed startup to generate monthly rental income without having to purchase their own property</a>.</li>
<li>Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform <a href="https://www.benzinga.com/money/marcus-millichap-backed-platform-makes-it-easy-to-invest-in-real-estate">allows individuals to invest in commercial real estate with as little as $5,000. </a></li>
</ul>

Real Estate

Grant Cardone Slams Biden's $5,000 Tax Credit As Band-Aid Solution To Housing Crisis

<a href="https://www.aboutamazon.com/news/company-news/leadership-update-aws-adam-selipsky-matt-garman">https://www.aboutamazon.com/news/company-news/leadership-update-aws-adam-selipsky-matt-garman</a>
&nbsp;

Management

AMZN

Amazon Web Services CEO Adam Selipsky To Step Down

Robinhood Markets Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) shares are trading higher Tuesday. The return of GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) trader &#8220;Roaring Kitty&#8221; could potentially drive increased trading activity <a href="https://www.benzinga.com/news/24/05/38776464/robinhood-ceo-vlad-tenev-dishes-on-hot-retirement-offerings-economics-of-the-offer-are-irresistible">on the Robinhood platform</a>.
What To Know: Meme stock mania is back. Heavily shorted stocks are rallying Tuesday as traders target high short interest names. 
The mania on Wall Street this week can be traced back to a social media post from Keith Gill, best known as &#8220;Roaring Kitty&#8221; on YouTube and X or &#8220;DeepF&#x2A;&#x2A;&#x2A;ingValue&#8221; on Reddit. Following a three-year absence from social media, Gill took to X over the weekend, posting a <a href="https://twitter.com/TheRoaringKitty/status/1789807772542067105">meme</a> of a person leaning forward in a chair, which sparked a rally in GameStop stock and several <a href="https://www.benzinga.com/news/24/05/38801786/gamestop-trader-roaring-kitty-sparks-wall-street-rally-in-heavily-shorted-stocks-what-you-need-to-kn">other heavily shorted names</a>. 
The increased volatility in stocks that are popular among retail bodes well for Robinhood. Robinhood is mainly used by retail traders and investors. Additionally, the return of Gill is likely to bring more retail traders back into the market. 
Check out&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;for more information on heavily shorted stocks that are popular among retail. You can also look at <a href="https://www.benzinga.com/general/health-care/24/05/38763450/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet" target="_blank" rel="noreferrer noopener">Benzinga's Stock Whisper Index</a>, which tracks stocks that investors secretly monitor, but are not talking about yet.
Don&#8217;t Miss:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38815078/jim-cramer-bets-cash-strapped-amc-gamestop-may-issue-shares-to-capitalize-on-new-me"> Jim Cramer Bets Cash-Strapped AMC, GameStop May Issue Shares To Capitalize On New Meme Stock Frenzy: &#8216;It Makes Too much Sense Not To&#8217;</a>
HOOD Price Action: <a href="https://www.benzinga.com/quote/HOOD">Robinhood shares</a> were up 5.71% at $17.85 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: Shutterstock.

Movers

HOOD

What's Going On With Robinhood Markets Stock Today?

Wells Fargo analyst Hanwen Chang maintains Vital Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTLE#NYSE">VTLE</a>) with a Equal-Weight and lowers the price target from $57 to $54.

VTLE

Wells Fargo Maintains Equal-Weight on Vital Energy, Lowers Price Target to $54

Cannabis-focused biopharmaceutical company Avicanna Inc. (TSX:<a class="ticker" href="https://www.benzinga.com/stock/AVCN#TSX">AVCN</a>) (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/AVCNF#OTCQX">AVCNF</a>) (FSE: 0NN) announced its financial results on Tuesday for the first quarter of fiscal 2024.
CEO Aras Azadian called it its "best quarter.&#8221; In addition to being its first EBITDA-positive quarter, it also saw record gross margins.
Azadian credited the results to "the proprietary nature of products and services we offer&nbsp;in Canada."
The company, founded in 2016, has also "made advancements in our international pillars with our first <a href="https://www.benzinga.com/general/biotech/24/02/37105071/can-cannabis-treat-severe-forms-of-epilepsy-new-medicine-sparks-hope-as-colombias-weed-industry-g">pharmaceutical marketing authorization</a> in Colombia and into two new agreements with two different multinational pharmaceutical companies," he added.
Avicanna achieved a significant milestone recently with the first indication-specific drug registration for Trunerox&nbsp;by INVIMA, Colombia&#8217;s health authority.
See also: <a href="https://www.benzinga.com/markets/cannabis/24/02/36933487/cbd-focused-avicanna-taps-into-european-market-via-exclusive-pharma-supply-deal">CBD-Focused Avicanna Taps Into European Market Via Exclusive Pharma Supply Deal</a>
Azadian has previously spoken at Benzinga cannabis events about driving biopharmaceutical <a href="https://www.benzinga.com/markets/cannabis/22/04/26745216/avicanna-leads-biopharmaceutical-advancements-of-plant-derived-cannabinoid-based-products">advancements of plant-derived, cannabinoid-based products. </a>The 19th Benzinga Cannabis Capital Conference is returning to Chicago this Oct. 8-9. <a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" target="_blank" rel="noreferrer noopener">Get your tickets now</a> before prices surge by following <a href="https://www.eventbrite.com/e/benzinga-capital-conference-cannabis-fall-2024-tickets-858948065787?aff=oddtdtcreator" target="_blank" rel="noreferrer noopener">this link</a>.
<h3 class="wp-block-heading">Q1 2024 Financial Highlights</h3>
<ul>
<li>Record quarterly revenue of CA$6.45 million ($4.7 million) representing a year-over-year increase of 451% and a sequential increase of increase 6.5%. Revenue growth was achieved with a 32% increase in year-over-year operational expenses.&nbsp;</li>
<li>Gross profit was roughly CA$3 million up from CA$587,956 in the prior year's period.</li>
<li>Consolidated gross margins, before fair value changes in bio-assets, of 51%, representing a 21% improvement compared to 42% during the first quarter of fiscal 2023.&nbsp;</li>
<li>Total expenses amounted to CA$3.9 million, up from CA$2.9 million in the first quarter of last year.</li>
<li>Net loss was CA$1 million, down from CA$2.5 million in the prior year's period.</li>
<li>Adjusted EBITDA of approximately CA$17 000, marking the first adjusted EBITDA positive quarter in the company's history and a significant year-over-year improvement compared to EBITDA loss of CA$1.28 million in the corresponding period of 2023.</li>
<li>Cash provided from operations was CA$122 000, representing a substantial improvement compared to cash used in operations during the first quarter of 2023 of approximately CA$2.05 million.</li>
<li>The company had CA$21.5 million in total assets as of March 31, 2024, compared to roughly CA$22 million as of Dec. 1, 2023.</li>
</ul>
"Avicanna's first EBITDA positive quarter is the result of consistent growth in our revenues which are mainly driven by our medical cannabis business unit including the steadying of the MyMedi.ca platform combined with our operational efficiencies and asset-light model in Canada," CFO Phil Cardella said.
Now read: <a href="https://www.benzinga.com/markets/cannabis/24/03/37425228/this-company-is-bringing-medical-marijuana-telehealth-to-over-half-the-u-s">This Company Is Bringing Medical Marijuana Telehealth To Over Half The U.S.</a>

Cannabis

Earnings

AVCNF

TSX:AVCN

CBD-Focused Avicanna Reports First-Ever Adjusted EBITDA Positive Quarter, 451% YoY Spike In Q1 Record Revenue

Wells Fargo analyst Michael Blum maintains Kinetik Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNTK#NYSE">KNTK</a>) with a Equal-Weight and raises the price target from $37 to $40.

KNTK

Wells Fargo Maintains Equal-Weight on Kinetik Holdings, Raises Price Target to $40

Plug Power, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLUG#NASDAQ">PLUG</a>) &nbsp;shares are trading higher after the company received a conditional commitment for an up to<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">&nbsp;$1.66 billion loan guarantee from the Department of Energy.</a>
The Department of Energy&#8217;s Loan Programs Office gave the contract to Plug Power to finance the development, construction, and ownership of up to<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38813424/plug-receives-1-66-billion-conditional-commitment-loan-guarantee-from-department-of-energy-for-gre" rel="noreferrer noopener">&nbsp;six green hydrogen production facilities</a>.
Plug&#8217;s projects under the loan will adhere to the Biden Administration&#8217;s Justice 40 Initiative.
Plug runs the&nbsp;largest&nbsp;proton exchange membrane PEM electrolyzer system in the U.S. at its Woodbine, GA, plant, the company said in a press release. Its green hydrogen network can produce around 25 tons of liquid hydrogen daily.
&#8220;Green hydrogen is an essential driver of industrial decarbonization in the United States,&#8221; said Plug Power CEO Andy Marsh. &#8220;We appreciate the partnership with the DOE Loan Programs Office and are pleased to have worked through an intensive due diligence process.&#8221;
The production facilities, to be chosen for financing following procedures outlined in forthcoming documentation with the Department of Energy, will be established nationwide. They will provide&nbsp;major&nbsp;corporations, including Plug Power&#8217;s current clients, with domestically produced, low-carbon green hydrogen.
The hydrogen generated will&nbsp;be used&nbsp;in&nbsp;applications in the&nbsp;material handling, transportation, and industrial sectors.
&#8220;Earlier this year, Plug successfully demonstrated our innovation and technical ability by launching the first commercial-scale green hydrogen plant in the country in Woodbine, Georgia. This loan guarantee will help us build on that success with additional green hydrogen plants,&#8221; Marsh added.
While this conditional commitment represents a significant milestone and demonstrates the Department of Energy&#8217;s intent to finance the project, specific technical, legal, environmental, and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding&nbsp;of&nbsp;the loan guarantee.
Price Action: PLUG shares are trading higher by 64.4% to $4.75 premarket at last check Tuesday. 
Photo via Shutterstock

Equities

Government

Regulations

Markets

General

PLUG

Plug Power +64% After Securing $1.66B Loan Guarantee From Biden Administration

On CNBC's &#8220;<a href="https://www.cnbc.com/video/2024/05/13/final-trades-teradyne-3m-and-qqq.html">Halftime Report Final Trades</a>,&#8221; Stephen Weiss of Short Hills Capital Partners said he <a href="https://www.benzinga.com/quote/QQQ">is short on Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).</a>
Jenny Van Leeuwen Harrington of Gilman Hill Asset Management, LLC named 3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>).
On April 30, 3M reported better-than-expected first-quarter 2024 results. The company reported net sales of $8 billion, a slight decline of 0.35% year-over-year. Adjusted net sales totaled $7.72 billion, up 0.5% Y/Y, beating the consensus of $7.63 billion with 0.8% growth in organic sales. Adjusted EPS was $2.39 compared to $1.97 in the prior-year quarter, beating the c<a href="https://www.benzinga.com/news/earnings/24/04/38522440/whats-going-on-with-post-it-maker-3m-shares-today">onsensus of $2.10.</a>
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Joseph M. Terranova of Virtus Investment Partners said Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) reported strong earnings.
On April 24, Teradyne posted upbeat first-quarter results and issued a strong second-quarter forecast. The company posted adjusted earnings of 51 cents per share, beating market estimates of 33 cents per share. 
Teradyne's quarterly sales came in at $599.819 million versus expectations of $566.31 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Price Action:
<ul>
<li>3M shares rose 0.7% to close at $99.63 on Monday.</li>
<li>Invesco QQQ Trust gained 0.2% during Monday's session.</li>
<li>Teradyne shares rose 1.6% to settle at $124.85 on Monday.</li>
</ul>
Check This Out: <a href="https://www.benzinga.com/news/24/05/38788200/top-5-tech-stocks-that-may-plunge-in-q2">Top 5 Tech Stocks That May Plunge In Q2</a>
Image: Shutterstock

Long Ideas

Short Ideas

Media

3M, Teradyne And More: CNBC's 'Final Trades'

Cantor Fitzgerald analyst Louise Chen reiterates Atossa Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATOS#NASDAQ">ATOS</a>) with a Overweight.

Reiteration

ATOS

Cantor Fitzgerald Reiterates Overweight on Atossa Therapeutics

WIIM

Hudbay Minerals shares are trading higher following better-than-expected Q1 earnings.

Fortrea Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTRE#NASDAQ">FTRE</a>) reported soft first-quarter FY24 results and cut its <a href="https://www.benzinga.com/quote/FTRE/earnings">revenue outlook on Monday</a>.
Revenue of $662.1 million missed the consensus of $754.6 million. As of March-end, the backlog stood at $7.4 billion, and the book-to-bill ratio for the quarter was 1.11x.
Adjusted EBITDA stood at $29.5 million, a decline from $41.7 million a year ago. Adjusted loss of 4 cents per share missed the street view for a profit of 1 cent per share, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
"The demand for our services is good. Our business operations are sound even as we continue to knock down challenges related to the unique circumstances of our 2023 spin-out and before," Tom Pike, chairman and CEO of Fortrea, said. "We have made strong progress with the planned exits of our Transition Services Agreements with our former parent company, and our planned divestment of our Endpoint and Patient Access businesses is making good progress."
For FY24, the company cut the revenue guidance to $2.785 billion-$2.855 billion from $3.14 billion-$3.205 billion (vs. estimate of $3.08 billion). Also, Fortrea trimmed adjusted EBITDA guidance to $240.0 million-$260.0 million from $280 million-$320 million.
Fortrea shares fell 14.9% to close at $28.11 on Monday.
These analysts made changes to their price targets on Fortrea after the company reported quarterly results.
<ul>
<li>Baird cut the price target on Fortrea from $45 to $36. Baird analyst Eric Coldwell upgraded the stock from Neutral to Outperform.</li>
<li>Evercore ISI Group slashed Fortrea price target from $43 to $31. Evercore ISI Group analyst Elizabeth Anderson maintained an Outperform rating.</li>
</ul>
Read More: <a href="https://www.benzinga.com/news/earnings/24/05/38815527/how-to-earn-500-a-month-from-dole-stock-ahead-of-q1-earnings-report">How To Earn $500 A Month From Dole Stock Ahead Of Q1 Earnings Report</a>

FTRE

These Analysts Slash Their Forecasts On Fortrea Holdings After Q1 Results

Lemonaid Health will offer customers more affordable access to branded ED medication STENDRA that may be taken as early as ~15 minutes prior to sexual activity (100mg and 200mg strengths only) [1]
Please see Important Safety Information and study design below
&nbsp;

Biotech

PTPI

Petros Pharmaceuticals Launches U.S. Distribution Of STENDRA Through Collaboration With 23andMe Subsidiary, Lemonaid Health

STNE

StoneCo shares are trading lower following Q1 earnings.

FSLR

NOVA

SEDG

Shares of solar companies are trading higher the Biden administration raised tariffs on Chinese solar panels.

Citigroup analyst Scott Gruber initiates coverage on Weatherford International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WFRD#NASDAQ">WFRD</a>) with a Buy rating and announces Price Target of $155.

Initiation

WFRD

Citigroup Initiates Coverage On Weatherford International with Buy Rating, Announces Price Target of $155

<h4>Key Takeaways:</h4>
<ul>
<li>Dingdong&rsquo;s revenue grew slightly in the first quarter, ending more than a year of revenue contraction</li>
<li>The company recorded its second quarterly net profit since its listing and said it expects both revenue and profit to post &ldquo;considerable year-over-year growth&rdquo; this year</li>
</ul>
By Doug Young
Grocery story or tech company?
Investors are having a hard time answering that question when it comes to&nbsp;Dingdong (Caymen) Ltd.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ddl#NYSE">DDL</a>), China&rsquo;s leading online grocer, which on Monday&nbsp;<a href="https://www.prnewswire.com/news-releases/dingdong-cayman-limited-announces-first-quarter-2024-financial-results-302143331.html">reported</a>&nbsp;a return to revenue growth in this year&rsquo;s first quarter after a year of contraction, as well as only its second GAAP profit since going public in 2021. Despite that, the company&rsquo; stock sank 16% after the results were announced, showing investors were hoping for more.
We should point out that even after the selloff, the stock is still up 21% so far this year and has rallied 67% from a low in January, feeding off a recent broader rally for offshore-listed Chinese stocks. Still, its forward price-to-earnings (P/E) ratio of 18 trails larger U.S.-based grocery giant&nbsp;Kroger&rsquo;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>) 18, and is also behind the 25 for&nbsp;Walmart&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmt#NYSE">WMT</a>).
The bottom line is that Dingdong is a grocery seller, a sector famous for razor-thin margins and stiff competition due to difficulty among rivals in differentiating their products. Dingdong pointed out on its earnings call that it&rsquo;s tough to reduce delivery costs that are one of its main expenses, and that one area where it&rsquo;s making some progress is in cutting out middlemen involved in many parts of its supply chain.
Dingdong has also acknowledged that it&rsquo;s better to focus on larger, wealthier cities where consumers are less cost-conscious. It began pulling out of smaller markets where it was losing big money last year, resulting in revenue contraction throughout the year.
With impact from the withdrawals winding down, the company said it expects to return to a growth track this year. &ldquo;We have raised our expectations for both net profit and scale, and are anticipating considerable year-over-year growth for the second quarter and this year,&rdquo; said founder and CEO Wang Changlin in the company&rsquo;s results announcement. Wang didn&rsquo;t elaborate on the meaning of &ldquo;scale,&rdquo; though presumably he is referring to revenue.
Dingdong has also been trying to beef up its margins by providing more of its own private-label products, which tend to carry higher margins and are one of the few areas where it can differentiate itself from rivals. But it made little mention of those efforts in its latest results, with CFO Wang Song only noting on the earnings call that the company is &ldquo;actively working on improving our private label product development capabilities.&rdquo;
So, where does that leave this company in the eyes of investors?
Despite the recent broader bullishness on U.S.-listed China stocks, analysts remain decidedly mixed on Dingdong. Only five out of nine polled by Yahoo Finance rate it a &ldquo;buy&rdquo; or &ldquo;strong buy,&rdquo; with the other four rating it a &ldquo;hold&rdquo; or &ldquo;underperform.&rdquo; Still, their average price target of $2.65 for the stock implies some upside from its latest close of $1.82.
All that said, we&rsquo;ll take a closer look at the company&rsquo;s latest financials that look relatively solid. At the highest level, its gross merchandise value (GMV) rose 1.4% to 5.53 billion yuan ($764 million), while its same-store GMV rose by a larger 4.4% year-on-year for the three-month period. The company noted that the first two months of 2023 were still affected by the pandemic, and pointed out GMV rose 6.5% year-on-year this year in March, the first month when year-ago consumption patterns were more normal and made for better comparisons.
<h3>Revenue Rises</h3>
The improving GMV helped Dingdong post a tiny first-quarter revenue gain to 5.02 billion yuan from 5 billion yuan the previous year. Before that, the last time the company reported a similar year-on-year revenue gain was the fourth quarter of 2022, before it began its slimming down campaign.
Shanghai-based Dingdong is profitable in its home region of East China, which includes Shanghai, as well as adjacent Zhejiang and Jiangsu provinces. It noted that order volume per station rose by double-digit percentage amounts in all three of those places in March, while also pointing out that its losses in the Southern Chinese cities of Guangzhou and Shenzhen, and also in Beijing, all experienced &ldquo;rapid reduction.&rdquo;
Notably, the company stands to benefit in Beijing following the demise of former rival&nbsp;Missfresh&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/mflty#OTC">MFLTY</a>), which was a dominant player in the Chinese capital, also its hometown. Dingdong also faces competition from rival services operated by leading takeout delivery company&nbsp;Meituan(3690.HK) and e-commerce giant&nbsp;PDD&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdd#NASDAQ">PDD</a>), though both of those are more focused on smaller markets.
Dingdong said its operating costs and expenses were roughly flat at 5.05 billion yuan in the latest quarter, versus 5.04 billion yuan a year earlier. Its fulfillment expenses fell 3.9% year-on-year during the quarter, dropping their share of total revenue to 22.8% from 23.9% a year earlier, as it benefited from larger order sizes. The lower fulfillment expenses were offset by increases of more than 20% in sales and marketing and general and administrative expenses.
The bottom line was that the company reported a sixth consecutive quarterly non-GAAP profit, which excludes costs related to employee stock-based compensation. And significantly, it also reported its second-ever GAAP profit of 12.3 million yuan since going public in 2021, reversing a 52.4 million yuan loss a year earlier.
The company also said it is quite solid in terms of finances, noting it was cash flow-positive in the first quarter, representing a third consecutive quarter in positive territory for that metric.
And what do we make of the company&rsquo;s previously mentioned proclamation that it now anticipates &ldquo;considerable year-over-year growth for the second quarter and this year&rdquo; in both &ldquo;scale&rdquo; and net profit? Analysts polled by Yahoo Finance weren&rsquo;t expecting much, at least in terms of revenue growth, forecasting only 2% growth in the second quarter and 4.3% for the whole year.
It&rsquo;s quite possible we might see some upward revisions to those forecasts in the weeks ahead, and perhaps even one or two ratings upgrades. At the end of the day, Dingdong does seem to be sharpening its focus by concentrating on big cities where it can operate profitably, and also on improving its efficiency by gaining more direct control of its supply chain. It will always be a grocer when all is said and done, but that doesn&rsquo;t mean it can&rsquo;t become a leader in the huge Chinese grocery market.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.