Grow Capital Stock (OTC:GRWC), Trade Ideas

Grow Capital Inc is a technology solutions company focused on software, technology, and financial services business. The company serves industries such as insurance, blockchain and crypto currency, mobile payment processing, crowd funding, budgeting, stock trading, and robo-advising apps. Its operating segment includes Bombshell Technologies and corporate and Resort at Lake Selmac. The company generates maximum revenue from Bombshell Technologies and corporate segment.

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

Cryptocurrency

News

Movers & Shakers

Intraday Update

Markets

Movers

Trading Ideas

General

ABCE

ABSSF

ACOR

AEMD

AKTAF

ALRM

ALTM

AMHPF

AQMS

ARFXF

ASIX

AVLIF

AXIM

BCEI

BNEFF

BTSC

CCAN

CKPT

CPNFF

CRBTF

CRZO

CVSI

DRRSF

ECDP

ECOL

ENBL

ENLC

ETRN

EWLL

EZPW

FANG

FLDM

FOSL

GARS

GHSI

GLOP

GPVRF

GRNQ

GRWC

GTCH

GTLS

HSDT

INND

IOTC

ISODIOL INTERNATIONAL ORD by Isodiol International Inc.

ISOLF

JAGX

JRJC

JWCAF

KGJI

KWBT

LAIX

LBRT

LKSD

LTBR

LVVV

LYBC

MARA

MCEP

MNTR

MRZLF

MSRT

NBLX

NDRA

NINE

NVEE

OART

OCANF

OCGN

OWCP

PAGP

PEMIF

PHIO

POTRF

PSTV

PUYI

PWRMF

Stocks That Hit 52-Week Lows On Wednesday

Grow Capital Inc

Needham analyst Kyle Peterson reiterates Fair Isaac (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FICO#NYSE">FICO</a>) with a Buy and maintains $1500 price target.

Price Target

Reiteration

Analyst Ratings

FICO

Needham Reiterates Buy on Fair Isaac, Maintains $1500 Price Target

<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38085675/were-fd-says-rich-dad-poor-dad-author-robert-kiyosaki-because-fed-chair-powell-fina" rel="noreferrer noopener">Robert Kiyosaki</a>, the author of the best-selling book &#8220;Rich Dad Poor Dad,&#8221; believes the U.S. economy is definitely in a state of depression.
What Happened: On Friday, Kiyosaki took to X, to express his view on the state of the U.S. economy. He stated that the economy was in a state of depression because it was experiencing subpar growth.
He wrote, &#8220;Q: Is the American economy in DEPRESSION? A: Yes Definition of a depression: an economy in subpar growth. In other words, the economy may be growing but below potential.&#8221;
Kiyosaki pointed out that the U.S. economy, which grew by 3.4% in the fourth quarter of 2023, only grew by 1.6% in the first quarter of 2024, less than half of the previous quarter&#8217;s growth.
He warned that this trend does not indicate a soft landing and urged people to seek the facts, prepare, and take care.
<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">Q: Is the American economy in DEPRESSION? A: Yes Definition of a depression: an economy in subpar growth. In other words the economy may be growing but below potential. Q4 2023 economy grew by 3.4%. Q1 2024 economy grew by 1.6% less than half. Not going to be a soft…
&mdash; Robert Kiyosaki (@theRealKiyosaki) <a href="https://twitter.com/theRealKiyosaki/status/1783602546235318453?ref_src=twsrc%5Etfw">April 25, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38374783/wall-street-set-to-open-higher-as-tesla-to-kick-off-magnificent-7-earnings-why-this-analyst-thinks-?itm_source=parsely-api" rel="noreferrer noopener">S&amp;P 500, Nasdaq Futures Climb Higher: Will Tesla Earnings Spark Rally Or Retreat?</a>
Why It Matters: Kiyosaki&#8217;s warning, although technically incorrect, comes at a time when the U.S. economy is facing various challenges. 
According to the Federal Reserve Bank of San Francisco, a depression is an extreme form of recession lasting three or more years or resulting in a GDP decline of at least 10% in a given year. Throughout its history, the U.S. has faced 34 recessions, including notable ones like the Great Recession of 2008-2009 and the COVID-19 recession of 2020. However, it has experienced only one depression, famously known as the Great Depression, spanning from 1929 to 1941.
Early 2022 had two consecutive quarters of negative GDP growth. That's the&nbsp;<a target="_blank" href="https://www.benzinga.com/economics/23/11/35978120/why-havent-we-had-a-recession-yet-deep-knowledge-investing-research-on-the-economy" rel="noreferrer noopener">definition of a recession</a>.&nbsp;However, the&nbsp;National Bureau of Economic Research&nbsp;declined to declare that there was a recession due to other technical indicators.
The Federal Reserve&#8217;s signals to&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38425604/feds-high-interest-rate-policy-spurs-debate-over-economic-impact-this-is-the-path-of-a-potential-pro" rel="noreferrer noopener">maintain&nbsp;high interest</a>&nbsp;rates have sparked concerns about its potential impact on the economy. Despite the ongoing economic stability, the Fed&#8217;s stance has raised questions about its potential impact on the economy.
Additionally,&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38109673/top-economist-flags-warning-signs-of-possible-recession-in-us-economy-it-certainly-" rel="noreferrer noopener">warning signs of a possible recession</a>&nbsp;have been flagged by top economists. The Economic Cycle Research Institute&#8217;s leading economic index, known for its near-perfect track record, has been on a downward trend for the past year. Despite a recent leveling off, past patterns suggest that a dip in this index often precedes a recession.
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38410454/treasury-yields-reach-5-month-high-lift-mortgage-rates-expert-warns-federal-debt-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Treasury Yields Reach 5-Month High, Lift Mortgage Rates; Expert Warns &#8216;Federal Debt Blob Is Out Of Control&#8217;</a>
Image by Gage Skidmore via Flickr
<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>

Social Media

Global

Economics

'Rich Dad Poor Dad' Author Robert Kiyosaki Believes US Economy Is 'In Depression' And Warns It's 'Not Going To Be A Soft Landing'

Needham analyst Ryan MacDonald reiterates Teladoc Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>) with a Hold.

TDOC

Needham Reiterates Hold on Teladoc Health

Needham analyst Joshua Reilly reiterates Tyler Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) with a Buy and maintains $500 price target.

Needham Reiterates Buy on Tyler Technologies, Maintains $500 Price Target

Piper Sandler analyst Brent Bracelin reiterates Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Overweight and raises the price target from $455 to $465.

MSFT

Piper Sandler Reiterates Overweight on Microsoft, Raises Price Target to $465

Needham analyst Quinn Bolton reiterates Mobileye Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>) with a Buy and maintains $36 price target.

MBLY

Needham Reiterates Buy on Mobileye Global, Maintains $36 Price Target

Needham analyst Ami Fadia reiterates Blueprint Medicines (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BPMC#NASDAQ">BPMC</a>) with a Buy and maintains $97 price target.

BPMC

Needham Reiterates Buy on Blueprint Medicines, Maintains $97 Price Target

HC Wainwright &amp; Co. analyst Joseph Pantginis reiterates Lisata Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSTA#NASDAQ">LSTA</a>) with a Buy and maintains $15 price target.

LSTA

HC Wainwright & Co. Reiterates Buy on Lisata Therapeutics, Maintains $15 Price Target

Needham analyst Ami Fadia reiterates Sage Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAGE#NASDAQ">SAGE</a>) with a Hold.

SAGE

Needham Reiterates Hold on Sage Therapeutics

Wedbush's Dan Ives praised Microsoft Corp.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) performance after the company reported its <a href="https://www.benzinga.com/news/earnings/24/04/38444199/microsoft-q3-earnings-revenue-beat-eps-beat-new-era-of-ai-transformation-and-more">March 2024 quarter earnings</a> and beat revenue and earnings per share (EPS) estimates.
What Happened: Ives praised Microsoft CEO Satya Nadella for the company&#8217;s performance in the AI and cloud computing space.
Ives compared Nadella to a &#8220;grandmaster chess player&#8221; and lauded Microsoft&#8217;s Azure cloud platform for its growth in the AI sector. He also referred to the current state of AI as a &#8220;1995 Moment,&#8221; indicating a significant turning point in the industry.
See Also: <a href="https://www.benzinga.com/news/earnings/24/04/38452338/microsoft-alphabet-and-3-stocks-to-watch-heading-into-friday">Microsoft, Alphabet And 3 Stocks To Watch Heading Into Friday</a>
&#8220;For Nadella the grandmaster chess player another Picasso-like performance for Microsoft as Azure is firing on all cylinders and the AI Revolution plays out in front of our eyes. Our #1 AI Draft pick Microsoft hitting its next gear of growth."
<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">For Nadella the grandmaster chess player another Picasso-like performance for Microsoft as Azure is firing on all cylinders and the AI Revolution &#x1f525; plays out in front of our eyes. Our #1 AI Draft pick Microsoft hitting its next gear of growth. $500 PT &#x1f525;&#x1f3c6;&#x1f402;&#x1f37f;&#x1f576;&#xFE0F;. 1995 Moment &#x1f525;
&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1783767713984164164?ref_src=twsrc%5Etfw">April 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Ives reiterated a price target of $500 for Microsoft stock, which is currently up 4.25% in premarket trading on Friday, at $416, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
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.
"Another historic night for Big Tech as the AI Revolution and this 1995 Moment is now here," Ives added.
<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">Another historic night for Big Tech as the AI Revolution and this 1995 Moment is now here <a href="https://twitter.com/CNBCClosingBell?ref_src=twsrc%5Etfw">@CNBCClosingBell</a> &#x1f525;&#x1f447; <a href="https://t.co/rN1kF6p9ZF">https://t.co/rN1kF6p9ZF</a>
&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1783756944735371304?ref_src=twsrc%5Etfw">April 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Ives&#8217; comments come in the wake of Microsoft&#8217;s strong performance in the AI and cloud computing sector. During the third-quarter earnings call, Nadella <a href="https://www.benzinga.com/news/24/04/38450786/satya-nadella-says-azure-search-also-used-by-chatgpt-is-one-of-the-fastest-growing-services-for-micr">highlighted the strong demand for Azure</a>, particularly in the field of AI, which has significantly contributed to acquiring new customers.
Microsoft&#8217;s third-quarter revenue increased 17% year-over-year to $61.9 billion, which beat the consensus estimate of $60.804 billion. The tech giant reported quarterly earnings of $2.94 per share, which beat analyst estimates of $2.82 per share.
During the post-earnings call, <a href="https://www.benzinga.com/general/gaming/24/04/38451061/microsoft-ceo-satya-nadella-highlights-record-breaking-gaming-performance-expansion-to-nintendo-sw">Nadella also revealed</a> that Microsoft had set new records for game streaming hours, console usage, and monthly active devices.
Price Action: Microsoft's shares were up 4.25% in premarket trading on Friday, after closing at $399.04 on the previous day, according to Benzinga Pro.
Check out more of Benzinga'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/news/24/04/38426370/mark-zuckerberg-says-tens-of-millions-users-have-already-tried-meta-ai-and-people-are-asking-us-to-r">Mark Zuckerberg Says &#8216;Tens Of Millions&#8217; Users Have Already Tried Meta AI, And People Are &#8216;Asking Us To Release&#8230;Wherever They Are&#8217;</a>
Disclaimer:&nbsp;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

Analyst Color

Equities

Tech

'Another Picasso-Like Performance:' Top Tech Analyst Praises Satya Nadella, Says Microsoft Is Top 'AI Draft Pick' With 20% Rally In Store

2024 Earnings&nbsp;Guidance
PGE is reaffirming its estimate for full-year 2024 adjusted earnings&nbsp;guidance&nbsp;of&nbsp;$2.98&nbsp;to&nbsp;$3.18&nbsp;per diluted share based on the following assumptions:
<ul>
<li>Exclusion of the impacts of the&nbsp;January 2024&nbsp;winter storm, including non-deferrable Reliability Contingency Event (RCE) costs and non-deferred incremental storm restoration costs;</li>
<li>An increase in energy deliveries of&nbsp;2%&nbsp;to&nbsp;3%, weather adjusted;</li>
<li>Normal temperatures in its utility service territory;</li>
<li>Hydro conditions for the year that reflect current estimates;</li>
<li>Wind generation based on five years of historical levels or forecast studies when historical data is not available;</li>
<li>Normal thermal plant operations;</li>
<li>Operating and maintenance expense between&nbsp;$815 million&nbsp;and&nbsp;$840 million&nbsp;which includes approximately&nbsp;$165 million&nbsp;of wildfire, vegetation management, deferral amortization and other expenses that are offset in other income statement lines;</li>
<li>Depreciation and amortization expense between&nbsp;$475 million&nbsp;and&nbsp;$525 million;</li>
<li>Effective tax rate of&nbsp;10%&nbsp;to&nbsp;15%;</li>
<li>Cash from operations of&nbsp;$700&nbsp;to&nbsp;$800 million;</li>
<li>Capital expenditures of&nbsp;$1,340&nbsp;million; and</li>
<li>Average construction work in progress balance of&nbsp;$795 million.</li>
</ul>

Earnings

Guidance

Portland General Electric Reaffirms Its 2024 Guidance: Sees Adjusted EPS Of $2.98-$3.18 Vs. $3.07 Consensus, And Cash From Operations Of $700M-$800M

Portland Gen Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POR#NYSE">POR</a>) reported quarterly earnings of $1.21 per share which beat the analyst consensus estimate of $1.09 by 11.01 percent. This is a 51.25 percent increase over earnings of $0.80 per share from the same period last year. The company reported quarterly sales of $940.000 million which beat the analyst consensus estimate of $828.972 million by 13.39 percent. This is a 26.17 percent increase over sales of $745.000 million the same period last year.

Earnings Beats

Portland Gen Electric Q1 2024 Adj EPS $1.21 Beats $1.09 Estimate, Sales $940.000M Beat $828.972M Estimate

Eric Melis, VP of Global Brand Marketing, Carbonated Soft Drinks at PepsiCo,&nbsp;said: &quot;Jack is renowned worldwide for his incredible football skills and the enjoyment he takes from the game. We celebrate those who personify our attitude on and off the pitch and can&#39;t wait for him to support us in bringing more enjoyment to football fans around the world as part of the Pepsi family.&quot;

PepsiCo Signs Football Star Jack Grealish As Global Brand Ambassador In Multi-year Partnership

TotalEnergies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) reported quarterly earnings of $2.14 per share which beat the analyst consensus estimate of $2.06 by 3.88 percent. The company reported $56.278 in sales this quarter. This is a 100.00 percent decrease over sales of $62.603 billion the same period last year.

TotalEnergies Q1 2024 Adj EPS $2.14 Beats $2.06 Estimate, Sales $56.278 Down From $62.603B YoY

<div>Underlying sales growth excluding OPM1&nbsp;and Strategic Review2&nbsp;of&nbsp;3%.</div>
<div>Strong operational progress in all divisions and continued execution momentum across our 2024 strategic priorities.</div>
<div>Continuing to infuse our products with AI and on-track to include AI features in more than 40 Higher Education titles for the Fall semester.</div>
<div>Initial &pound;300m share buyback completed; the previously announced &pound;200m buyback extension has commenced.</div>

Pearson Says It Will See Q1 Underlying Sales Growth Excluding OPM And Strategic Review Of 3%; On Track To Achieve 2024 Guidance With Expected Momentum For 2H

Car rental company&nbsp;Hertz Global Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) is now looking to remove 30,000 electric vehicles from its fleet, significantly higher than the number announced earlier this year.
What Happened: Earlier this year, Hertz announced that it is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36606533/tesla-bulls-at-odds-after-hertzs-ev-selloff-blow-for-musks-company-or-black-eye-mom">looking to reduce its EV fleet by 20,000 units</a> through 2024, citing high repair costs as the driving factor. However, at the company&#8217;s first-quarter earnings call on Thursday, company COO Justin Keppy said that it has increased the EV disposal plan by another 10,000 units. 
As of the end of the first quarter, the company had already sold about 10,000 EVs, he said, on which it incurred vehicle depreciation costs of $195 million. 
&#8220;Upon completion, we anticipate that the remaining EV fleet will be better aligned with attractive demand for EVs with a priority on our rideshare business,&#8221; Keppy said.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38107547/hertzs-mega-tesla-gamble-backfired-due-to-sky-high-repair-costs-unusually-high-accident-rates-an" target="_blank" rel="noreferrer noopener">Hertz&#8217;s Mega Tesla Gamble Backfired Due To Sky-High Repair Costs, Unusually High Accident Rates And Customers&#8217; Charging Anxiety</a> 
The decision to further reduce EVs within the fleet will help it align better with demand and lower operating costs, Keppy said. The company expects to see the benefits of reducing EVs from the fleet in the second half and for EVs deployed outside of rideshare to comprise just about 5% of its global fleet as of the end of 2024.
Why It Matters: <a href="https://www.benzinga.com/markets/equities/24/04/38434391/struggle-for-hertz-continues-as-stock-loses-23-heres-why">Hertz on Thursday reported</a> an adjusted loss of $1.28 per share, much higher than the analyst consensus estimate of a loss of 44 cents. 
"Fleet and direct operating costs weighed on this quarter's performance," said CEO Gil West. "We're tackling both issues – getting to the right supply of vehicles at an acceptable capital cost while at the same time driving productivity up and operating costs down."
Price Action: Hertz stock closed down 19.3% at $4.68 per share, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a> The stock is down 54.1% year-to-date. 
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/mobility" rel="noreferrer noopener">following this link</a>.
Read More: <a href="https://www.benzinga.com/news/24/04/38452299/tesla-ceo-elon-musk-denies-human-rights-abuses-in-most-ev-battery-production-those-that-do-use-very">Tesla CEO Elon Musk Denies Human Rights Abuses In Most EV Battery Production: &#8216;Those That Do&#8230;Use Very Little&#8217;</a>
Photo by EQRoy on Shutterstock

Another Blow To Tesla? Hertz's EV Disposal Plan Jumps By 10K As Car-Rental Company Aims For 95% Gas-Powered Fleet By Year-End

The latest GDP and inflation figures have sparked concerns among investors, hinting at a potential economic downturn worse than a recession.
What Happened: The U.S. economy&#8217;s first-quarter growth, at an annualized rate of 1.6%, fell significantly short of the anticipated 2.5%, according to the&nbsp;<a href="https://www.bea.gov/data/gdp/gross-domestic-product" target="_blank" rel="noreferrer noopener">Bureau of Economic Analysis</a>. This is also a decline from the 3.4% increase in the fourth quarter, <a href="https://www.businessinsider.in/policy/economy/news/the-us-economy-may-be-barrelling-towards-stagflation-an-outcome-worse-than-recession/articleshow/109603356.cms">reported</a> Business Insider.
&#8220;This was a worst of both worlds report – slower than expected growth, higher than expected inflation,&#8221; wrote David Donabedian, chief investment officer of CIBC Private Wealth US.
Simultaneously, consumer prices experienced a more significant than expected surge, constraining the Federal Reserve&#8216;s ability to take action. This combination of sluggish growth and rising prices is a classic indicator of stagflation, a scenario that is notoriously challenging to combat.
The last time the U.S. faced stagflation was in the 1970s, a period characterized by geopolitical tensions leading to an OPEC oil embargo and a subsequent surge in energy prices. This, combined with high government spending and the dollar&#8217;s detachment from gold, resulted in double-digit inflation and a tumbling economy.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38434513/us-growth-slows-in-q1-yet-inflation-acceleration-signals-stagflation-the-worst-poss?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Growth Slows In Q1, Yet Inflation Acceleration Signals Stagflation: &#8216;The Worst Possible Outcome For The Fed&#8217;</a>
Analysts are wary of parallels to this period, with JPMorgan&#8216;s Jamie Dimon warning of a potential return to the <a href="https://www.benzinga.com/general/24/04/38432014/bank-of-america-thinks-2024-is-starting-to-look-like-2015-but-in-reverse-while-jamie-dimon-warns-202">stagflationary 1970s</a>. Despite the current market optimism, the U.S. may be heading towards a similar economic scenario, especially with the recent surge in fiscal spending and potential inflation drivers like green industrialization and global remilitarization.
However, the likelihood of stagflation remains uncertain. Despite persistent high inflation, the market is still pricing in at least one rate cut this year, and demand conditions remain strong. The upcoming personal consumption expenditures report will provide a clearer picture of inflation&#8217;s trajectory and the Fed&#8217;s potential policy adjustments, according to Donabedian.
Why It Matters: The U.S. economy&#8217;s potential descent into stagflation comes amid a series of concerning economic indicators. The Federal Reserve&#8217;s decision to maintain <a href="https://www.benzinga.com/news/24/04/38425604/feds-high-interest-rate-policy-spurs-debate-over-economic-impact-this-is-the-path-of-a-potential-pro">high interest rates</a> throughout 2024 due to persistent inflation has raised questions about its impact on the economy. 
This decision has also sparked concerns about <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38109673/top-economist-flags-warning-signs-of-possible-recession-in-us-economy-it-certainly-">a potential recession</a>, as indicated by the Economic Cycle Research Institute&#8217;s Leading Economic Index, which has been on a downward trend for the past year.
Despite these warning signs, the U.S. economy is predicted to grow at a robust <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/04/38405106/us-economy-expected-to-grow-2-5-in-q1-not-a-hard-landing-and-hardly-a-soft-one">2.5% growth rate</a> in the first quarter of 2024, following a 3.4% growth in the last quarter of 2023. 
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38429782/us-economy-grows-1-6-in-q1-slightly-below-expectations-as-price-pressures-weigh-o?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Economy Grows 1.6% In Q1, Slightly Below Expectations As Price Pressures Weigh On Spending</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>

US Economy Faces 'Worst Of Both Worlds' As Stagflation Threat Looms Large

Tesla, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) shares extended their gains for the third consecutive session on Thursday, following the release of the electric vehicle maker&#8217;s&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38390883/tesla-q1-earnings-highlights-ev-giant-misses-wall-street-estimates-makes-cost-cuts-invests-in-ai-sp" rel="noreferrer noopener">quarterly results</a>.&nbsp;Gary Black&nbsp;of&nbsp;Future Fund&nbsp;shared his insights on the stock&#8217;s movement and the company&#8217;s future trajectory.
What Happened: According to Black, the 17.6% surge in Tesla&#8217;s stock post-earnings is attributed to the optimistic product outlook conveyed in the earnings report and confirmed by CEO&nbsp;Elon Musk&nbsp;during the earnings call.&nbsp;
&#8220;There is no other way to interpret this language than that TSLA is readying new more affordable models using both the&nbsp;next gen&nbsp;and existing manufacturing platforms for first production by 2025/1H,&#8221; the analyst said. This, according to the fund manager, is bullish since it points to the company expanding its total addressable market with more affordable compact vehicles to the mass segment by mid-2025.
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/money/everything-you-need-to-know-about-tesla-stock" rel="noreferrer noopener">Everything You Need To Know About Tesla Stock</a>
However, Black noted that Musk&#8217;s emphasis on Tesla&#8217;s commitment to autonomy has yet to resonate with institutional investors. The lack of discussion on the&nbsp;robotaxi&nbsp;opportunity since the earnings release suggests that investors remain cautious. 
Black pointed out that the minimal impact on Uber and Lyft shares indicates that investors may not perceive Tesla&#8217;s unsupervised ride-hailing as a significant threat to these companies.&nbsp;
But he did not rule out narrative change on Aug. 8, when Tesla is scheduled to unveil robotaxis. &#8220;So far TSLA's continued focus on more affordable&nbsp;non-robotaxi&nbsp;vehicles seems to be what's important,&#8221; he said.
Why It Matters:&nbsp;Despite the stock rally, skepticism remains among some analysts.&nbsp;GLJ Research&#8216;s&nbsp;Gordon Johnson&nbsp;interpreted Tesla&#8217;s product roadmap language as indicating a&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38398667/tesla-bulls-praise-musks-q1-earnings-call-see-ev-giant-on-collision-course-with-ube" rel="noreferrer noopener">potential abandonment of the sub-$30K car</a>, with a shift towards cost-reduction strategies for existing models.&nbsp;
Concerns persist regarding Tesla&#8217;s core auto gross margin and significant free cash flow depletion, prompting cautious outlooks from analysts like&nbsp;Wedbush&#8216;s&nbsp;Daniel Ives.
Tesla ended Thursday&#8217;s session up 4.97% to $170.18, according to<a target="_blank" href="https://benzinga.grsm.io/lxquj26b2sag" rel="noreferrer noopener">&nbsp;Benzinga Pro data.</a>
Check out more of Benzinga&#8217;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 Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38402856/tesla-bull-says-elon-musk-delivered-rip-the-band-aid-off-q1-but-cautions-this-could">Tesla Bull Says Elon Musk Delivered &#8216;Rip The Band-Aid Off&#8217; Q1 But Cautions This Could Derail Bullish Thesis</a>
Image generated using AI on Adobe Shutterstock

TSLA

Tesla's Robotaxi Plan Hasn't Excited Investors, But Fund Manager Gary Black Says This Is What Matters More: 'No Other Way To Interpret This...'

In a recent episode of CNBC&#8217;s &#8220;Mad Money,&#8221; host Jim Cramer lauded Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) for its ability to thrive despite a sluggish economy, attributing its success to its &#8220;self-help&#8221; strategy.
What Happened: Cramer, on Thursday, highlighted the performance of companies that can sustain growth despite economic challenges. He specifically pointed to Chipotle, commending its ability to improve and expand its operations, <a href="https://www.cnbc.com/2024/04/25/cramer-praises-chipotle-for-growing-despite-a-slowing-economy.html">reported</a> CNBC.
"When we're looking for reasons to buy a stock in this environment, we want companies that generate constant self-help. Chipotle does it by improving throughput — how many people that they can serve, say, every 15 minutes," he said. "It just keeps getting better and better and that's got nothing to do with GDP or inflation woes."
The fast-casual chain recently released its quarterly earnings, surpassing Wall Street&#8217;s expectations. Despite raising prices, Chipotle experienced a surge in both sales and foot traffic, leading to a more than 6% increase in its share price by Thursday&#8217;s close.
Cramer suggested that Chipotle&#8217;s success could be attributed to its ability to meet consumer demand by enhancing its service speed, a strategy that is independent of broader economic factors like inflation and GDP.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38374423/elon-musk-reacts-as-ark-invest-analyst-says-its-going-to-be-very-hard-for-tesla-rivals-to-catch-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts As ARK Invest Analyst Says &#8216;It&#8217;s Going To Be Very Hard&#8217; For Tesla Rivals &#8216;To Catch Up To</a>
He also noted that this kind of &#8220;self-help&#8221; approach could counteract the market&#8217;s current concerns, particularly in light of the ongoing challenges such as increased interest in the bond market.
"It takes a special kind of stock to do well when the economy's slowing while inflation just won't quit," he said.
Why It Matters: Chipotle&#8217;s recent financial performance has been impressive. The company&#8217;s first-quarter revenue increased by 14.1% year-over-year to $2.702 billion, <a href="https://www.benzinga.com/news/earnings/24/04/38417218/chipotle-mexican-grill-q1-earnings-revenue-beat-eps-beat-comparable-sales-up-7-and-more">beating the consensus estimate</a>. The company&#8217;s comparable restaurant sales also saw a 7% year-over-year increase, driven by higher transactions and a 1.6% rise in the average check.
Chipotle&#8217;s strong financial results led to a rise in its stock price, prompting analysts to <a href="https://www.benzinga.com/news/earnings/24/04/38430514/chipotle-mexican-grill-analysts-raise-their-forecasts-after-better-than-expected-earnings">raise their forecasts</a> for the company&#8217;s future performance. The company&#8217;s international expansion also reached a milestone with the <a href="https://www.benzinga.com/markets/equities/24/04/38360106/chipotle-to-spice-up-kuwait-city-new-location-marks-decade-long-international-expansion">opening of its first location</a> in Kuwait City, marking a decade of international growth.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38399275/no-choice-elon-musk-reacts-as-x-user-reveals-main-reason-why-the-billionaire-is-re-organizing-te?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;No Choice:&#8217; Elon Musk Reacts As X User Reveals &#8216;Main Reason&#8217; Why The Billionaire Is &#8216;Re-Organizing&#8217; Tesla</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>

Jim Cramer Praises Chipotle's 'Self-Help' Strategy Amid Economic Slowdown: 'Inflation Just Won't Quit'

GXO&#39;s partnership with Virgin Media O2 has helped remove 48 tonnes of single use plastic since 2021
GXO has driven a&nbsp;94%&nbsp;reduction in single use plastics across its logistics operation

GXO Drives Major Plastic Reduction For Virgin Media O2, Eliminating 48 Tonnes Since 2021

Grow Capital