China Feihe Stock (OTC:CHFLF), Trade Ideas

Feihe is the number one infant milk formula producer in China, with a premium market positioning among domestic and foreign competing brands. The company utilizes the flagship Astrobaby lineup to promote its "more suitable for Chinese babies" proposition. It has a nationwide distributor network covering maternity stores, supermarkets and traditional retailers, as well as a direct sales network in e-commerce.

China Feihe Ltd

Tech billionaire and xAI founder Elon Musk expressed concern over the <a href="https://www.benzinga.com/general/24/04/38258816/elon-musk-calls-artificial-intelligence-greatest-potential-breakthrough-in-lifetime-with-caveat-a-sm">potential dangers of AI</a> being trained to lie for political correctness.
What Happened: Musk suggested that such AI could pose a threat to human life, saying it could be "very dangerous" and "kill millions" in the process.
&#8220;AI would be very dangerous if powerful, but trained to lie to be politically correct."
This is not the first time Musk has warned about the dangers of AI. While saying that it could be the biggest breakthrough of our lifetime, he admits that there is "a small chance that AI will kill us all."
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
"Imagine if instead of merely rendering forced &#8216;diverse&#8217; images, it decided to make that true in reality, potentially killing millions of people to achieve diversity goals."
<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">AI would be very dangerous if powerful, but trained to lie to be politically correct. Imagine if instead of merely rendering forced "diverse" images, it decided to make that true in reality, potentially killing millions of people to achieve diversity goals.
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1780047289081610276?ref_src=twsrc%5Etfw">April 16, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/news/24/04/38264187/elon-musk-says-charging-new-x-users-a-small-fee-is-the-only-way-to-curb-bot-onslaught">Elon Musk Says Charging New X Users A &#8216;Small Fee&#8217; Is The Only Way To Curb Bot Onslaught</a>
Why It Matters: Musk&#8217;s post echoes his previous concerns about the potential risks of AI. In March, he warned that <a href="https://www.benzinga.com/news/24/03/37763969/elon-musk-says-woke-ai-like-google-gemini-can-be-deadly-it-will-do-whatever-it-can-potentially-even">&#8220;woke AI&#8221; could be deadly</a>, citing the potential risks of AI programmed to enforce diversity.
He specifically mentioned Alphabet Inc.&#8217;s Google Gemini and Adobe Inc.&#8217;s Firefly as examples of &#8220;woke AI&#8221; in a post.
In February, <a href="https://www.benzinga.com/news/24/02/37258050/elon-musk-pushes-xais-grok-ai-chatbot-after-google-gemini-comes-under-fire-truth-never-been-more-ess">Musk emphasized the importance</a> of the relentless pursuit of truth in AI technology following <a href="https://www.benzinga.com/news/24/02/37233234/gemini-is-a-joke-googles-ai-chatbot-doesnt-even-know-how-its-own-founders-larry-page-and-sergey-brin">Google&#8217;s Gemini AI controversy</a>. He even promoted xAI&#8217;s Grok, an AI chatbot that vows to chase the truth.
However, the potential dangers of AI are not limited to its &#8220;woke&#8221; programming. Google&#8217;s Gemini chatbot <a href="https://www.benzinga.com/news/24/02/37233234/gemini-is-a-joke-googles-ai-chatbot-doesnt-even-know-how-its-own-founders-larry-page-and-sergey-brin">came under fire</a> for generating irrelevant images or refusing to do so accurately. This prompted criticism from tech billionaires and former Reddit CEO, Yishan Wong.
Wong argued that <a href="https://www.benzinga.com/news/24/02/37284983/googles-gemini-debacle-is-bigger-than-woke-squabbles-former-reddit-ceo-says-recall-the-3-laws-of-rob">the bigger problem</a> was the irresponsible use of AI, a sentiment echoed by Musk&#8217;s recent tweet.
Check out more of Benzinga&#8217;s Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38248780/apple-bull-dan-ives-says-robust-tech-earnings-season-ahead-not-the-time-to-run-time?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Bull Dan Ives Says &#8216;Robust&#8217; Tech Earnings Season Ahead: &#8216;Not The Time To Run&#8230;Time To Own The Winners'</a>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

News

Social Media

Tech

Elon Musk Warns AI's Potential To Lie For Political Correctness Poses Threat To Humanity: 'Would Be Very Dangerous'

General

Kraft Heinz's mio Launches TAP: First-Ever Faucet That Instantly Turns Tap Water Into Energy Drink

SocketCam C860 is the newest version of the SocketCam product family that turns any mobile device into a robust scanning solution capable of reading damaged and other difficult-to-read barcodes in all conditions.

SCKT

Socket Mobile Announces SocketCam Advanced Camera Scanning Support For Flutter

Needham analyst Mike Cikos reiterates ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Buy and maintains $900 price target.

Price Target

Reiteration

Analyst Ratings

Needham Reiterates Buy on ServiceNow, Maintains $900 Price Target

This adjusted earnings per share&nbsp;outlook&nbsp;excludes the impacts of the direct response costs and Brazil sale, while including the estimated&nbsp;$0.30&nbsp;to&nbsp;$0.40&nbsp;per share of business disruption impacts for the affected Change Healthcare services.

Large Cap

Guidance

Health Care

UnitedHealth Reaffirms Full Year 2024 Adjusted EPS Of $27.50-$28.00 Versus Consensus Of $27.53

Sports

Target Announces Exclusive Pickleball Collection With Tennis Brand Prince

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), although <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38256809/bitcoins-weekend-selloff-a-healthy-shakeout-not-a-market-crash-expert-says">recovering from Saturday&#8217;s lows,</a> settled in the red on Monday, as it pulled back below the $63,500 mark. Amid the volatility, economist and crypto skeptic Peter Schiff expressed skepticism regarding the apex crypto blasting off in line with predictions by some bulls.
What Happened: &#8220;If #BitcoinETFs are really going to send #Bitcoin to $100K or higher, why are all the Bitcoin-related equities in bear markets?&#8221; he said in a post on X, formerly Twitter. A financial asset is said to be in a bear market if it falls more than 20% from a recent high.
Schiff highlighted the down move in the following crypto-linked stocks.
<ul>
<li>Cryptocurrency exchange Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>): down 21% [from March 27]</li>
<li>Crypto-specific venture capital investment firm Galaxy Digital Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BRPHF#OTC">BRPHF</a>): down 26% [from March 26]</li>
<li>MicroStrategy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), which has substantial holdings of Bitcoin: down 33% [from March 27]</li>
<li>Valkyrie Bitcoin Miners ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WGMI#NASDAQ">WGMI</a>): down 41% [from Dec. 27]</li>
<li>Bitcoin miners Marathon Digital Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) (down 55% from Dec. end), Bitfarms Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BITF#NASDAQ">BITF</a>) (down 56% from Feb. 27) and HIVE Digital Technologies Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIVE#NASDAQ">HIVE</a>) (down over 50% from Dec. 27)</li>
</ul>
As opposed to Schiff&#8217;s projection of the downtrend as a crypto-specific weakness, the broader market has been on a steep pullback since the start of April. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the broader S&amp;P 500 Index, has shed about 3.6% amid worries concerning the unlikelihood of the Federal Reserve cutting rates amid stubbornly elevated inflation.
See Also: <a href="https://www.benzinga.com/money/top-10-cryptocurrencies">10 Best Cryptocurrencies </a>
Not A Safe Haven: Investors who bought the new <a href="https://www.benzinga.com/money/where-to-buy-spot-bitcoin-etfs">Bitcoin ETFs </a>now realize that they bought a bill of goods, Schiff said in a separate post. &#8220;They now know that #Bitcoin isn&#8217;t the safe haven, store of value it was promoted to be,&#8221; he said, adding that &#8220;surprised investors will likely sell, either to cut their losses or book gains and move on.&#8221;
In terms of gold, Bitcoin traded below 27 ounces of gold, Schiff noted. The apex crypto is now down over 27% since hitting a record high of 37 ounces of gold two and half years ago, he said. &#8220;Given all the hype about #Bitcoin and lack of coverage of #gold, few likely realize Bitcoin is in a stealth bear market when priced in real money,&#8221; he added.
Bitcoin ETF buyers, who think the king crypto is a &#8220;digital version&#8221; of gold should take note that SPDR&nbsp;Gold Shares&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), an ETF tracking the performance of physical gold or gold bullion, rose nearly 2% on Monday before settling at a record high, he said. On the other hand, Bitcoin ETFs were down about 5%, he added.
&#8220;Maybe your thesis is wrong and you should sell your fool&#8217;s gold and buy the real thing,&#8221; Schiff said.
At last check, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell over 4.50% to $63,483.18, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38213103/peter-schiff-predicts-bitcoin-etfs-will-lead-to-its-biggest-crash-ever">Peter Schiff Predicts Bitcoin ETFs Will Lead To Its &#8216;Biggest Crash Ever&#8217;</a>
Image by yuRomanovich on Shutterstock

Analyst Color

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Equities

Markets

Trading Ideas

$BTC

BITF

BRPHF

COIN

HIVE

MARA

MSTR

WGMI

Peter Schiff Challenges Bitcoin's $100K Prediction As Crypto-Linked Stocks Languish In Bear Zone: 'Sell Your Fool's Gold And Buy The Real Thing'

UnitedHealth Updated Its Full Year 2024 GAAP Net Earnings Outlook To $17.60-$18.20 Per Share To Reflect The Brazil Sale And The Estimated Direct Response Costs Of The Cyberattack

Commerce Bancshares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBSH#NASDAQ">CBSH</a>) reported quarterly earnings of $0.86 per share which beat the analyst consensus estimate of $0.81 by 6.17 percent. This is a 4.44 percent decrease over earnings of $0.90 per share from the same period last year. The company reported quarterly sales of $397.85 million which beat the analyst consensus estimate of $390.36 million by 1.92 percent. This is a 2.21 percent increase over sales of $389.24 million the same period last year.

Earnings

CBSH

Commerce Bancshares Q1 EPS $0.86 Beats $0.81 Estimate, Sales $397.85M Beat $390.36M Estimate

<a href="https://www.axios.com/2024/04/16/iran-sanctions-israel-biden-yellen" title="https://www.axios.com/2024/04/16/iran-sanctions-israel-biden-yellen">https://www.axios.com/2024/04/16/iran-sanctions-israel-biden-yellen</a>

iShares MSCI Israel Capped Investable Market Index Fund

Axios Reported  Treasury To Green-light New Iran Sanctions After Israel Attack

DICK'S Sporting Goods & SidelineSwap Expand Resale Partnership In 2024

Bunge Global SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BG#NYSE">BG</a>) today announced the executive leadership team for the combined Bunge and Viterra business following the close of the proposed transaction. As previously announced, following the close of the transaction, the combined company will be led by Greg Heckman, Bunge&#39;s Chief Executive Officer and John Neppl, Bunge&#39;s Chief Financial Officer.
Viterra CEO, David Mattiske will become Co-Chief Operating Officer (COO) along with Julio Garros, Bunge&#39;s Co-President, Agribusiness. In their roles as Co-COOs, they will jointly oversee the commercial activities of the future combined organization which includes commodity value chains, country/regional structures, Centers of Expertise and Industrial Operations &amp; Safety.

Management

Bunge Global Named Viterra CEO, David Mattiske as Co-COO Along With Julio Garros, Bunge's Co-President, Agribusiness

Financing

TradeSun And Wells Fargo Sign Agreement For Trade Finance And Compliance Digitization Solution

Tesla&#8216;s Director of Autopilot Software,&nbsp;Ashok Elluswamy, recently gained a company-affiliated tag on social media platform X, sparking speculation about a potential promotion following the&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38250432/elon-musks-top-deputy-made-difficult-decision-to-move-on-from-tesla-as-ev-maker-said-to-be-layin" rel="noreferrer noopener">departures of senior executives</a>&nbsp;Drew Baglino&nbsp;and&nbsp;Rohan Patel.
What Happened: Before their resignations were announced on Monday, both Baglino and Patel lost their Tesla-affiliated badges on X. Elluswamy receiving the tag now suggests a possible leadership shift within the company.
This news comes amidst Tesla&#8217;s recently announced layoffs, impacting over&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38244436/breaking-tesla-said-to-be-laying-off-over-14-000-employees" rel="noreferrer noopener">10% of its global workforce</a>&nbsp;(roughly 14,000 employees) in a cost-cutting measure. CEO&nbsp;Elon Musk, via the same social media platform, justified the layoffs as necessary &#8220;to reorganize and streamline the company for the next phase of growth.&#8221;
Other Tesla Executives On X:&nbsp;Interestingly, Musk himself does not have a Tesla-affiliated tag on X.&nbsp;
Instead, it reflects his role as Chair of the platform, displaying an affiliation to X Corp, formerly known as Twitter before he bought it. 
Other Tesla executives who do have Tesla-affiliated tags include design chief Franz von Holzhausen, automotive head <a href="https://www.benzinga.com/news/23/03/31188572/tom-zhu-who-all-you-need-to-know-about-the-tim-cook-of-tesla" target="_blank" rel="noreferrer noopener">Tom Zhu</a> [widely seen as Tesla&#8217;s No. 2 after Musk], investor relations head  Martin Viecha, Cybertruck engineering head Wes Morrill, North American sales operations VP Troy Jones, and VP of Vehicle Engineering, Lars Moravy.
Read More: <a href="https://www.benzinga.com/news/24/04/38263933/elon-musk-re-enters-wartime-ceo-mode-tesla-chief-explains-necessity-of-massive-job-cuts-amid-report">Elon Musk Re-Enters &#8216;Wartime CEO&#8217; Mode? Tesla Chief Explains Necessity Of Massive Job Cuts Amid Report Of Critical Giga Texas Projects At Risk</a>
Photo courtesy: Tesla

TSLA

Did Someone Get Promoted At Tesla Amid Layoffs? Autopilot Head's X Badge Change Sparks Talk Of Leadership Shift

Ericsson&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIC#NASDAQ">ERIC</a>)&nbsp;shares are trading higher after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38263336/ericsson-reports-first-quarter-results-2024" rel="noreferrer noopener">first-quarter FY24 results</a>.
Sales declined 15% Y/Y to SEK53.3 billion. In USD, sales of $5.13 billion missed the consensus of $5.34 billion.
Group organic sales declined by 14% Y/Y due to a decline of 19% in the Networks business as the customers continued to be cautious with their investments.
Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36797671/ericsson-powers-up-secures-eur-420m-boost-for-next-gen-wireless-technology" rel="noreferrer noopener">Ericsson Powers Up: Secures EUR 420M Boost For Next-Gen Wireless Technology</a>
Excluding restructuring charges, the gross margin improved to 42.7% from 39.8% a year ago, led by a competitive product portfolio, cost initiatives, improved commercial discipline, and increased IPR licensing revenues.
Adjusted EBIT margin improved to 8.1% from 6.4% a year ago. Adjusted EBITA margin improved to 9.6% from 7.7% a year ago.
Ericsson reported an EPS of SEK 0.77 (+71% Y/Y). In USD, EPS of $0.07 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $0.05</a>.&nbsp;
Free cash flow before M&amp;A was SEK 3.7 billion in the quarter, benefiting from the operational improvements and lower working capital as it concluded an intense 5G roll-out phase in India.
As of March 31, 2024, net cash stood at SEK 10.8 billion.&nbsp;
Outlook: In FY24, the company expects a further decline in the RAN market, at least through the end of this year, as customers remain cautious with their investments and&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">normalization of the pace of investment in India</a>.&nbsp;
Ericsson projects the sales to stabilize during the second half of the year, benefiting from recent contract wins and the normalization of customer inventory levels in North America.&nbsp;
In the second quarter, the company anticipates Networks gross margin (excluding restructuring charges) of 42%-44%, with margins to benefit from the improved business mix in the year&#8217;s second half.
Investors can gain exposure to the stock via&nbsp;IShares U.S. Digital Infrastructure And Real Estate ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IDGT#NYSE">IDGT</a>) and&nbsp;Defiance Next Gen Connectivity ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FIVG#NYSE">FIVG</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37916728/ericsson-cuts-1-200-swedish-jobs-due-to-falling-orders" rel="noreferrer noopener">Ericsson Cuts 1,200 Swedish Jobs Due to Falling Orders</a>
Price Action: ERIC shares are up 7.93% at $5.17 premarket on the last check Tuesday.
Photo by Mats Wiklund via Shutterstock

Movers

ERIC

FIVG

iShares U.S. Digital Infrastructure and Real Estate ETF

IDGT

Why Ericsson Shares Are Higher Premarket Tuesday

Needham analyst Laura Martin reiterates Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with a Buy and maintains $220 price target.

AAPL

Needham Reiterates Buy on Apple, Maintains $220 Price Target

BTIG analyst Carl Reichardt maintains D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) with a Buy and lowers the price target from $174 to $169.

BTIG Maintains Buy on D.R. Horton, Lowers Price Target to $169

UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) reported quarterly earnings of $6.91 per share which beat the analyst consensus estimate of $6.62 by 4.38 percent. This is a 10.38 percent increase over earnings of $6.26 per share from the same period last year. The company reported quarterly sales of $99.796 billion which beat the analyst consensus estimate of $99.290 billion by 0.51 percent. This is a 8.56 percent increase over sales of $91.931 billion the same period last year.

Earnings Beats

UnitedHealth Group Q1 2024 Adj EPS $6.91 Beats $6.62 Estimate, Sales $99.796B Beat $99.290B Estimate

Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has announced a $1.5 billion investment in the United Arab Emirates&#8217; leading artificial intelligence firm, G42. The investment will also secure Microsoft a seat on G42&#8217;s board, indicating a strategic shift towards strengthening G42&#8217;s commitment to reducing its presence in China.
What Happened: The investment deal was inked by Microsoft President Brad Smith and G42 CEO Peng Xiao, with the backing of the UAE and U.S. governments. The agreement entails G42&#8217;s use of Microsoft&#8217;s Azure cloud for its AI applications, <a href="https://www.bloomberg.com/news/articles/2024-04-16/microsoft-invests-1-5-billion-in-uae-s-g42-will-get-board-seat">reported</a> Bloomberg.
Smith will join G42&#8217;s board, marking an expansion of the existing partnership between the two companies. Smith stated, &#8220;Microsoft got strong encouragement from the U.S. government to move forward in this process.&#8221; The investment grants Microsoft a minority stake in G42, although the exact financial terms remain undisclosed, according to the report.
"There are markets today where Microsoft and really no American technology company has a real data center presence," Smith said. "This is the kind of partnership that can really bring the cloud and AI to the global south probably a decade faster than would otherwise be the case."
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38248780/apple-bull-dan-ives-says-robust-tech-earnings-season-ahead-not-the-time-to-run-time?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Bull Dan Ives Says &#8216;Robust&#8217; Tech Earnings Season Ahead: &#8216;Not The Time To Run&#8230;Time To Own The Winners&#8217;</a>
As part of the deal&#8217;s later stages, Microsoft aims to host some of its applications in G42&#8217;s data centers to reach customers in Africa and Central Asia. The two companies also plan to establish a $1 billion fund for developers.
The deal, which follows a year of discussions, comes after G42 pledged to reduce its presence in China and invest in key Western markets. G42, a leader in the UAE&#8217;s AI push, is part of the $1.5 trillion empire of UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan.
Why It Matters: This investment comes at a time when Microsoft&#8217;s growth is soaring with AI innovations. According to a Morgan Stanley analyst, Microsoft is projected to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38208919/microsofts-growth-soars-with-ai-innovations-projected-to-lead-in-public-cloud-by-20">lead in public cloud</a> by 2032. 
The company has been making strategic moves to boost its AI and cloud capabilities, including a $2.9 billion investment in <a href="https://www.benzinga.com/government/24/04/38169797/microsoft-announces-major-ai-expansion-and-cybersecurity-boost-in-japan">data centers in Japan</a> and backing <a href="https://www.benzinga.com/government/24/04/38245193/openai-launches-first-asian-office-in-tokyo-amid-microsofts-massive-ai-and-cloud-push-in-japan">OpenAI&#8217;s expansion</a> in Tokyo.
Furthermore, a Wedbush Securities analyst predicts a seismic shift in IT spending towards <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38247855/initial-wave-of-ai-software-growth-to-spur-microsoft-salesforce-palantir-mongodb-or">AI and related technologies</a>, which could account for 8%-10% of IT budgets in 2024. This trend could significantly benefit major tech players like Microsoft.
Read Next: <a href="https://www.benzinga.com/news/24/04/38239037/googles-sundar-pichai-grapples-with-ai-mishaps-nvidia-caitlin-clark-of-stock-market-and-more-this-we?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Google&#8217;s Sundar Pichai Grapples With AI Mishaps, Nvidia &#8216;Caitlin Clark&#8217; Of Stock Market And More</a>
Image Via Shutterstock 
<div style="font-family: 'Lato', sans-serif">
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Kaustubh Bagalkote</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/topic/kaustubh-bagalkote" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>

Global

MSFT

Microsoft Invests $1.5B In UAE's Top AI Firm G42, Secures Board Seat

Evercore ISI Group analyst Mark Lipacis initiates coverage on Microchip Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) with a Outperform rating and announces Price Target of $106.

Initiation

MCHP

Evercore ISI Group Initiates Coverage On Microchip Technology with Outperform Rating, Announces Price Target of $106

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Market volatility in 2022 has caused many compelling stocks to now trade for less than $1 per share. While the under-$1 territory is often associated with riskier <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a>, hidden gems with solid fundamentals can be uncovered by discerning investors. As Warren Buffett famously said, &ldquo;price is what you pay, value is what you get.&rdquo;
Even quality companies can temporarily see their share prices driven below $1 due to market psychology or other macroeconomic factors. However, investors who spot these opportunities and have a long-term perspective could generate massive returns if the business&rsquo; prospects improve.
As we head further into the second half of 2023, such pink-sheet stocks could bottom out and start a turnaround next year. Thus, here are the three stocks trading under $1 that are too cheap relative to their potential.
<h2>Ayr Wellness (AYRWF)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2022/02/cannabis_1600_1793299462-300x169.png" alt="Young green medicinal marijuana plant in a pot after a rain fall shallow depth of field with focus on leaf; cannabis stocks" width="300" height="169"><div>Source: gvictoria / Shutterstock.com</div></div>
As a leading vertically integrated U.S. cannabis multi-state operator,&nbsp;Ayr Wellness&nbsp;(OTCMKTS:<a href="https://investorplace.com/stock-quotes/ayrwf-stock-quote/">AYRWF</a>)&nbsp;offers exposure to the high-growth marijuana industry. While the company has faced recent challenges with profitability, I believe Ayr possesses strong assets and brands that position it for an eventual turnaround.
In Q1 2023, Ayr&nbsp;<a href="https://seekingalpha.com/article/4605139-ayr-wellness-inc-ayrwf-q1-2023-earnings-call-transcript#:~:text=year%20perspective%2C%20we-,grew%20revenue%20by%2018%25,-and%20adjusted%20EBITDA">grew revenue by 18% year-over-year</a>&nbsp;but saw a net loss of $195 million. Encouragingly, the company generated positive operating cash flow for the third straight quarter, reflecting early progress on its optimization plan to drive cost savings and improve working capital. Ayr expects to build on this momentum and achieve positive cash flow for the full-year 2023.
To drive growth, Ayr plans to expand its retail footprint in its key market in Florida. With seven new store openings already this year and 10 more planned, Florida provides a substantial growth avenue as Ayr maps the state for its 70 targeted locations. I&rsquo;m also optimistic about the company&rsquo;s expansion into Ohio, where it recently acquired two dispensary licenses that should open later this year.
While near-term industry headwinds persist, Ayr owns leading brands and dispensaries that position it well for the eventual adult-use transition in markets like Florida. With its beaten-down valuation at just 0.6-times sales, I see sizable upside potential for AYRWF stock once macro conditions improve. The average Wall Street price target implies upside potential of more than <a href="https://www.tipranks.com/stocks/ayrwf/forecast">500% </a>from here.
<h2>Feihe (CHFLF)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2021/07/parenting_baby_1600-300x169.jpg" alt="Two smiling parents hold a smiling baby while sitting down." width="300" height="169"><div>Source: Monkey Business Images / Shutterstock.com</div></div>
As the largest producer of infant milk formula in China,&nbsp;Feihe&nbsp;(OTCMKTS:<a href="https://investorplace.com/stock-quotes/chflf-stock-quote/">CHFLF</a>) presents an attractive opportunity to gain exposure to a defensive consumer staples business. While revenue is expected to decline 3.8% this year, Feihe is expected to see revenue bounce back next year with positive 12% year-over-year growth.
Feihe also maintains a strong balance sheet with&nbsp;<a href="https://seekingalpha.com/symbol/CHFLF#:~:text=Cash-,%242.77B,-Other">$2.8 billion of cash</a>&nbsp;against only $218 million of debt. Its healthy cash position provides stability during economic uncertainty. Additionally, the company pays an annual dividend yielding nearly 10%.
I think paying just 7-times trailing earnings for this leader in infant formula and recession-resistant business model is very much worth it. CHFLF appears poised to outperform when China&rsquo;s economy rebounds from COVID-driven weaknesses. Its emphasis on product R&amp;D and quality assurance also positions it well to capitalize on premiumization trends in infant formula. Gurufocus estimates its <a href="https://www.gurufocus.com/stock/CHFLF/summary">fair price value at $2</a>, well above its current price of 55 cents, primarily due to its all-green balance sheet.
<h2>ADDvantage Technologies (AEY)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2019/08/telecom1600a-300x169.jpg" alt="a picture of cell towers during daytime" width="300" height="169"><div>Source: Shutterstock</div></div>
Providing communications infrastructure services and equipment,&nbsp;ADDvantage Technologies&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/aey-stock-quote/">AEY</a>) operates through two segments: telco and wireless. The company has faced recent revenue declines as a result of inventory rationalization by customers. However, with wireless infrastructure spending set to reaccelerate, I believe AEY stock presents deep value at current levels.
ADDvantage&rsquo;s wireless business is impressive, with the company boasting extensive experience managing 5G construction projects for carriers like Dish Network (NASDAQ:<a href="https://investorplace.com/stock-quotes/dish-stock-quote/">DISH</a>). As macro conditions improve industry-wide over the long-run, the company&rsquo;s exposure to secular 5G trends positions it for a revenue rebound. ADDvantage also plans to capture rural broadband funding for fiber network builds, representing a new growth avenue.
Trading at just 0.1-times EV/Revenue and 0.06-times sales, AEY stock appears significantly undervalued relative to its long-term growth potential. Its services will remain in demand as 5G investments roll out over the next decade. As network operators resume spending in 2024, ADDvantage looks poised to reward patient investors. There is no Wall Street or Gurufocus coverage with this company, but I believe a fair price target should be $1.30 at the very least.
<a href="https://investorplace.com/stock-types/penny-stocks/">Penny Stocks</a>
On Penny Stocks and Low-Volume Stocks:&nbsp;With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that&nbsp;<a href="http://investorplace.com/">InvestorPlace.com</a>&rsquo;s writers disclose this fact and warn readers of the risks.
Read More:&nbsp;Penny Stocks &mdash; <a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/">How to Profit Without Getting Scammed</a>
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/?utm_source=Nasdaq&amp;utm_medium=referral" target="_blank">Publishing Guidelines</a>.
<div>
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on <a href="https://www.linkedin.com/in/omor-ibne-ehsan-56068022b/">LinkedIn</a>.
</div>
<h3>More From InvestorPlace</h3>
<ul><li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT758389">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
<li>
						<a href="https://investorplace.com/2023/07/venture-capitalist-predicts-this-chatgpt-announcement-will-shock-the-world/?cid=MKT744191&amp;eid=MKT758391">ChatGPT IPO Could Shock the World, Make This Move Before the Announcement</a>
					</li>
<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT758395">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
<li>
						<a href="https://investorplace.com/2022/06/this-could-be-the-best-deal-in-the-history-of-independent-investing-research/?cid=MKT638063&amp;eid=MKT758393">The $1 Investment You MUST Take Advantage of Right Now</a>
					</li>
</ul><div>
<div>
<div></div>
<div></div>
</div>
</div>

The post <a href="https://investorplace.com/2023/08/the-3-most-undervalued-stocks-under-1-to-buy-now-august-2023/">The 3 Most Undervalued Stocks Under $1 to Buy Now: August 2023</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

-

-

-

-

-

-

-

25% Off Benzinga's Most Powerful Trading Tools

-

-

-

-

-

-

-

China Feihe Stock (OTC:CHFLF), Trade Ideas