Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) has emerged as the brightest star of the S&amp;P 500 over the past year, but its meteoric rise — up 440% in twelve months and 53% year-to-date through May 9 — is now confronting a valuation wall that even the hardest bulls <a href="https://www.benzinga.com/topic/expert-ideas">are struggling to justify.</a>



<h3 class="wp-block-heading">Is Palantir Trading At Bubble-Like Valuations: How High Is Too High?</h3>



With shares closing at $115 on Friday and peaking at a record $125 this week, Palantir is now trading at 500 times trailing twelve-month earnings, an outlier among all companies in the S&amp;P 500 and Nasdaq 100. 



That's nearly triple the valuation of most AI-linked stocks and more than 14 times higher than tech heavyweights like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), which trade at price-to-earnings ratios of 37x and 32x, respectively.



While many would argue that Palantir is a bet on the future rather than the past, even when factoring in projected earnings, the valuation picture remains extreme.



Palantir trades 190 times forward earnings, raising red flags that the price has disconnected from even the most optimistic projections.



<h3 class="wp-block-heading">Most Expensive S&amp;P 500 Stocks By Trailing P/E</h3>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Company</th><th>P/E (Last Twelve Months)</th></tr></thead><tbody><tr><td>Palantir Technologies Inc.</td><td>484.6x</td></tr><tr><td>Dayforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAY#NYSE">DAY</a>)</td><td>343.5x</td></tr><tr><td>CoStar Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSGP#NASDAQ">CSGP</a>)</td><td>257.3x</td></tr><tr><td>DoorDash Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>)</td><td>227.6x</td></tr><tr><td>Iron Mountain Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IRM#NYSE">IRM</a>)</td><td>227.2x</td></tr><tr><td>Ventas Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTR#NYSE">VTR</a>)</td><td>194.0x</td></tr><tr><td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>164.7x</td></tr><tr><td>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>)</td><td>158.1x</td></tr><tr><td>Digital Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>)</td><td>148.7x</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Most Expensive S&amp;P 500 Stocks By Forward P/E</h3>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Company Name</th><th>P/E (Next Twelve Months)</th></tr></thead><tbody><tr><td>Palantir Technologies Inc.</td><td>189.2x</td></tr><tr><td>Ventas Inc. </td><td>149.8x</td></tr><tr><td>Tesla Inc. </td><td>140.8x</td></tr><tr><td>Digital Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>)</td><td>138.3x</td></tr><tr><td>CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>)</td><td>118.4x</td></tr><tr><td>Axon Enterprise Inc. </td><td>110.6x</td></tr><tr><td>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</td><td>92.4x</td></tr><tr><td>Welltower Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WELL#NYSE">WELL</a>)</td><td>86.0x</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">The Bullish Case Still Has A Pulse</h3>



Despite this, investor enthusiasm remains sky-high. The company's ability to secure lucrative defense contracts and its reputation as an artificial intelligence leader has driven continued demand for the stock, even during broader market corrections.



Palantir notably held its ground during the April selloff triggered by the Donald Trump&#8216;s tariff escalation, never breaching its 200-day moving average.



Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report, said Palantir &#8220;remains our top-ranked technology sector stock,&#8221; citing its technical strength and AI leadership.



Tentarelli said the recent earnings quarter confirmed their view and suggested any consolidation in the $100–$110 range could offer a new buying opportunity. &#8220;We view this stock as a buy here or on pullbacks,&#8221; he said.



His firm maintains a long position and sees Palantir as dominant in its niche government and commercial AI applications.



<h3 class="wp-block-heading">Palantir&#8217;s Analyst Consensus: Caution Ahead</h3>



Out of 25 accredited analysts covering the stock, only one rates it a &#8216;Strong Buy&#8217; and just three rate it &#8216;Buy&#8217;. The overwhelming consensus is to &#8216;Hold&#8217;, with the median price target 18% below current levels.



Goldman Sachs&#8217; analyst Gabriela Borges, CFA maintained a &#8216;Neutral&#8217; rating this week and raised her 12-month price target to $90, still 22% below the current price.



&#8220;Our positive view of Palantir&#8217;s growth is balanced by longer-term ecosystem risks – the industry moving from peak custom to more off-the-shelf adoption – and the stock&#8217;s premium valuation,&#8221; Borges said.



She highlighted Palantir&#8217;s enterprise value-to-sales multiple at 81x, far exceeding the sector average of 12x, and its growth-adjusted EV/sales ratio (the so-called Rule of 40) at 0.97x, compared to just 0.28x for comparable software companies growing 20% or more.



While fundamentals are struggling to keep pace with price momentum, Palantir's rally shows no immediate signs of collapse. Still, unless earnings growth or profitability scales up dramatically, the company may be heading toward a painful reckoning. Read now: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45319531/cathie-wood">Cathie Wood Says AI Will &#8216;Disrupt The Traditional World Order&#8217; And Replace Search Engines Like Google</a></li>
</ul>



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Palantir's Gravity-Defying Rally Faces Reckoning As Valuation Reaches Danger Zone

<h2 class="wp-block-heading">New On The Block</h2>



Nestlé (SWX: NESN) is trying to offload its premium bottled water biz—including Perrier and S.Pellegrino—for a thirst-quenching 5 billion euros ($5.6 billion), and it's tapped Rothschild to play matchmaker. Reuters, which broke the news, reports that Nestle wants to keep a stake. 



The move comes amid some political backwash in France. Authorities just <a href="https://www.lemonde.fr/en/france/article/2025/05/08/perrier-ordered-to-remove-water-filters_6741040_7.html">told</a> Nestlé to yank microfilters from two Perrier plants, raising eyebrows and maybe a few pH levels. 



Enter One Rock Partners. The firm, which previously helped extract Poland Springs from Nestlé in 2021 and now owns Primo Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMB#NYSE">PRMB</a>), is expected to make an offer. 



The deal comes as water scarcity intensifies globally. According <a href="https://www.worldwildlife.org/stories/water-scarcity-8-facts-you-need-to-know">to</a> the World Wildlife Fund, over 2 billion people lack safe drinking water. Some projections show up to 2.4 billion facing urban shortages by 2050.



Other companies up for sale include:



<ul class="wp-block-list">
<li>Hellman &amp; Friedman has kicked off a sale process for Enverus, a Texas-based energy software firm. The deal is expected to fetch around $6 billion. The private equity firm is working with Citi on the sale, which Reuters reports has drawn interest from both other PE firms and strategic buyers.</li>
</ul>



<ul class="wp-block-list">
<li>Speedcast is exploring a sale of its ground stations business. The transaction price could exceed $1 billion, according <a href="https://www.bloomberg.com/news/articles/2025-05-08/speedcast-is-said-to-mull-breakup-sale-of-ground-stations-unit?srnd=phx-deals&amp;sref=TBDibEcD">to</a> Bloomberg. Backed by Centerbridge Partners, the Houston-based satellite communications firm is working with an adviser and plans to run three separate auctions covering its services, infrastructure, and government-focused units. Speedcast's ground stations enable it to deliver internet via satellite to clients like cruise lines and maritime shippers across its five business segments.</li>
</ul>



<ul class="wp-block-list">
<li>UBS Group AG is in talks to sell its hedge fund unit, O'Connor, to Cantor Fitzgerald LP, after over 30 years of ownership. The deal may include a revenue-sharing agreement, allowing UBS to receive a portion of future proceeds, Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-05-08/ubs-in-talks-to-sell-hedge-fund-o-connor-to-cantor-fitzgerald?sref=TBDibEcD">reported</a>. This move comes as UBS looks to shed riskier assets in light of stricter Swiss regulations that could require up to $25 billion in additional capital. O'Connor, originally a Chicago-based derivatives firm acquired in 1992, had $16.5 billion in regulatory assets under management as of December.</li>
</ul>



<h2 class="wp-block-heading">Updates From The Block</h2>



<ul class="wp-block-list">
<li>OpenAI has agreed to buy Windsurf, an artificial intelligence-assisted coding tool, for about $3 billion, according <a href="https://www.bloomberg.com/news/articles/2025-05-06/openai-reaches-agreement-to-buy-startup-windsurf-for-3-billion?sref=TBDibEcD">to</a> Bloomberg. The deal hasn't closed yet. If successful, it positions OpenAI to better compete in the growing market for AI-powered coding assistants, where rivals like Anthropic, GitHub, and newer startups like Anysphere are gaining traction. Windsurf, also known as Exafunction Inc. and previously as Codeium, was recently valued at <a href="https://www.benzinga.com/25/05/45224667/microsoft-backed-openai-buys-windsurf-for-3-billion-to-strengthen-ai-coding-power">$3 billion</a>. </li>
</ul>



<ul class="wp-block-list">
<li>VivoPower International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VVPR#NASDAQ">VVPR</a>) announced that Energi Holdings has completed the first phase of due diligence for its proposed $180 million takeover. Energi, a global energy firm based in Abu Dhabi with $1 billion in annual revenue, will now move to an accelerated second phase focused on regulatory matters. Folks involved expect the deal to conclude by June 2.</li>
</ul>



<ul class="wp-block-list">
<li>Coinbase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) is <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45287050/coinbase-acquires-deribit-in-2-9b-deal-to-expand-crypto-derivatives-business">acquiring crypto options exchange</a> Deribit in a $2.9 billion cash-and-stock deal, aiming to become the largest crypto derivatives platform by open interest and volume. The deal includes $700 million in cash and 11 million Coinbase Class A shares. It&#8217;s expected to close by year-end pending regulatory approval. Deribit processes over $1 trillion in annual trading volume and has $30 billion in open interest, mainly from institutional clients. This is the latest in a string of acquisitions by Coinbase. It follows past purchases like Xapo (custody), Tagomi (prime brokerage), FairX (futures exchange), and One River Digital (asset management).</li>
</ul>



<ul class="wp-block-list">
<li>Pershing Square's&nbsp;Bill Ackman&nbsp;wants to turn Howard Hughes Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HHH#NYSE">HHH</a>) into a <a href="https://www.benzinga.com/trading-ideas/movers/25/02/43799342/bill-ackman-following-warren-buffett-hedge-funder-promises-modern-day-berkshire-hathaway-with-latest-transaction">&#8220;modern-day Berkshire Hathaway.&#8221;</a> Pershing Square announced plans to invest $900 million in real estate company Howard Hughes on Monday. Ackman&#8217;s firm will purchase 9 million shares for $100 each, representing a stake of 46.9%. The investment will allow Howard Hughes to acquire controlling stakes in &#8220;high-quality&#8221; public and private operating companies, while continuing to invest in its <a href="https://www.benzinga.com/25/05/45199902/bill-ackman-strikes-deal-to-form-mini-version-of-berkshire-hathaway-a-free-money-generating-company-he-wouldnt-bet-against">real estate development business</a>.</li>
</ul>



<h2 class="wp-block-heading">Off The Block</h2>



<ul class="wp-block-list">
<li>WhiteHawk Income Corp. will acquire PHX Minerals Inc. in a deal that values PHX at about $187 million including debt. The acquisition adds 1.8 million gross unit acres of natural gas mineral and royalty assets to WhiteHawk. It also enters the SCOOP/STACK region in Oklahoma.</li>
</ul>



<ul class="wp-block-list">
<li>FiscalNote Holdings Inc. agreed<a href="https://www.benzinga.com/pressreleases/25/05/b45190351/fiscalnote-signs-definitive-agreement-to-divest-additional-non-core-asset-to-further-streamline-co" target="_blank" rel="noreferrer noopener"> to sell</a> its Australian subsidiary, TimeBase, to Thomson Reuters Corporation FiscalNote acquired TimeBase in 2021, bringing Australian legislative data services to its portfolio for legal professionals. Operating largely apart from FiscalNote&#8217;s core customer base, TimeBase contributed just $1.3 million to the company&#8217;s $120.3 million in 2024 GAAP revenue. The divestiture is part of FiscalNote&#8217;s effort to streamline operations, reduce debt, and refocus on its core strengths—particularly the enhanced PolicyNote platform, which will continue serving clients in the Australian market. Proceeds from the sale will be used to pay down the <a href="https://www.benzinga.com/25/05/45197222/fiscalnote-sells-timebase-to-thomson-reuters-for-65m-as-it-sharpens-focus-and-reaffirms-2025-outlook">company&#8217;s senior-term loan</a>.</li>
</ul>



<ul class="wp-block-list">
<li>Sunoco LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>) agreed to acquire Parkland Corporation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PKIUF#OTC">PKIUF</a>) in a deal valued at approximately $9.1 billion, including debt. The transaction, announced Monday, <a href="https://www.benzinga.com/pressreleases/25/05/n45190343/sunoco-lp-to-acquire-parkland-corporation-in-transaction-valued-at-9-1-billion">involves a mix of cash and equity </a>and will create a new entity called Sunoco LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>) shares are <a href="https://www.benzinga.com/premarket">trading lower</a> on Monday after the company agreed to acquire Parkland Corporation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PKIUF#OTC">PKIUF</a>) in a deal valued at approximately $9.1 billion, including debt. SUNCorp, LLC. Parkland operates as a major fuel distributor and convenience retailer across 26 countries in the Americas. With around 4,000 locations, it serves both consumers and businesses with fuel and energy solutions, including renewables, EV charging, and <a href="https://www.benzinga.com/trading-ideas/movers/25/05/45194533/sunoco-fuels-up-with-9-1b-parkland-deal-eyes-10-cash-flow-bump">carbon credit options</a>.</li>
</ul>



<h2 class="wp-block-heading">Bankruptcy Block</h2>



WW International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WW#NASDAQ">WW</a>) just put its financial strategy on a strict plan of its own. The company, known as WeightWatchers, announced a "pre-packaged" Chapter 11 reorganization that will eliminate a chunky $1.15 billion in debt. The goal? To slim down its liabilities and sprint toward long-term growth—no crash diets involved.



WeightWatchers insists it's business as usual. Members won't notice a thing—no plan changes or vanishing telehealth sessions. The company's holistic model (including doctor-recommended programs and prescription support) stays fully operational during the reorganization.



Backed by 72% of its lenders, the 62-year-old brand expects a speedy exit planned in about 45 days—faster than most people's post-holiday detox.



CEO Tara Comonte says this financial cleanse is all about building muscle for innovation, with a focus on digital upgrades and expanding their fast-growing telehealth biz (which bulked up by 57% in Q1 2025 alone). 



Weight loss drugs like Ozempic and Wegovy, both from Novo Nordisk (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>), likely disrupted WeightWatchers&#8217; traditional business model.



<a href="https://www.benzinga.com/ma/25/05/45177095/deal-dispatch-chef-boyardee-crumbl-buyers-bankruptcies">For last week&#8217;s edition of Deal Dispatch, click here</a>.

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Deal Dispatch: Nestlé, Coinbase, OpenAI Lead Diverse M&A Lineup As WeightWatchers Goes Bankrupt

Tech investor and CEO of ARK Invest, Cathie Wood, on Friday re-emphasized her bullish calls on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). However, Wood shed some light on potential headwinds ahead for Palantir Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)<a href="https://www.benzinga.com/25/05/45274539/cathie-wood-strengthens-ai-chip-holdings-with-nvidia-and-amd-purchases-reduces-palantir-position-by-another-38-8-million"> and Alphabet, Inc. </a>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>). 



PLTR: ARK Invest has been reducing its position in Palantir across its portfolio funds, selling nearly $80 million worth of shares this week alone. Palantir is now Ark&#8217;s fifth-largest holding, making up 6.62% of the portfolio with a total value of $324.4 million.



Read Next: <a href="https://www.benzinga.com/general/health-care/25/05/45305392/unitedhealth-investors-claim-company-hid-profit-impact-of-ceos-murder?utm_source=articleShare">UnitedHealth Investors Claim Company Hid Profit Impact Of CEO&#8217;s Murder</a>&nbsp;



In a Friday morning interview on CNBC's Squawk Box, Wood said Palantir's government business remains strong and its "commercial business is on fire." However, she warned that Europe could be a threat to the company's remarkable growth if the EU moves further into the AI space.&nbsp;



GOOG: The disruptive tech investor pointed to artificial intelligence as a force that will "disrupt the traditional world order" and predicted that everyone will have an AI-powered personal assistant in the future. Wood said that humans using a search engine to find information will become a thing of the past as the "assistants will do much of the walking for us."&nbsp;



Referencing an Apple executive's comments on AI replacing search engines earlier this week, Wood said that it comes as "no surprise" that large language models are already taking<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45288753/google-at-staggering-42-discount-to-sp-500-after-150-billion-value-dive"> market share</a> from Google.&nbsp;



Read Next: <a href="https://www.benzinga.com/general/travel/25/05/45260938/disneys-new-abu-dhabi-theme-park-will-be-authentically-disney-and-distinctly-emirati-ceo-bob-iger-says?utm_source=articleShare">Disney&#8217;s New Abu Dhabi Theme Park Will Be &#8216;Authentically Disney And Distinctly Emirati,&#8217; CEO Bob Iger Says&nbsp;</a>



BTC: Wood reiterated ARK Invest's bitcoin thesis with a base case scenario of $750,000 and a bull case of bitcoin reaching $1.5 million by 2030.&nbsp;



Limited supply, emerging markets use case and institutions continuing to move into bitcoin will drive the price of bitcoin higher, she predicted.&nbsp;



"We still have miles to go," Wood said as bitcoin traded around $103,000 Friday morning after reclaiming the $100,000 level on Thursday.&nbsp;



TSLA: Wood has long been a Tesla bull and on Friday<a href="https://www.benzinga.com/news/large-cap/25/03/44537429/cathie-wood-doubles-down-on-2600-tesla-stock-price-prediction"> she again</a> doubled-down on her call for the Elon Musk-led company to reach $2600 per share within the next five years.&nbsp;



She added that the $2600 Tesla price target does not include revenue from humanoid robots which Wood pegged as a $26 trillion revenue opportunity.&nbsp;



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/legal/25/05/45226604/president-trump-wants-to-reopen-alcatraz-heres-what-it-would-take?utm_source=articleShare">President Trump Wants To Reopen Alcatraz: Here&#8217;s What It Would Take</a></li>
</ul>



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Cathie Wood Says AI Will 'Disrupt The Traditional World Order' And Replace Search Engines Like Google

Increasing pressure from rising borrowing costs could soon force Washington to scale back its protectionist stance. Bank of America's chief investment strategist Michael Hartnett predicts that tariffs will decline this quarter to avoid destabilizing the massive <a href="https://www.benzinga.com/topic/michael-hartnett">U.S. debt funding machine.</a>



In a note shared Friday, Hartnett said the U.S. trade deficit hit a record $140 billion in March, highlighting decades of structural imbalances that have pushed American policymakers toward a protectionist posture. 



Yet, despite that deficit, the U.S. has long benefited from a financial account surplus — meaning it has consistently attracted more foreign capital than it sends abroad.



See Also: <a href="https://www.benzinga.com/25/05/45312253/us-stocks-trade-mixed-after-three-day-gain-as-us-uk-strike-trade-deal-tariffs-are-steering-the-boat-again-says-expert">US Stock Futures Flicker Between Gains And Losses After Strong Three-Day Run: &#8216;Tariffs Are Steering The Boat Again,&#8217; Says Expert</a>



<h3 class="wp-block-heading">A Tipping Point For Trade Policy?</h3>



"The flipside of big deficit… big $540 billion foreign inflows to U.S. assets past 5 years," Hartnett said, underscoring how the U.S. has been able to finance its deficits through global investor demand.



Yet that flow of funds is now at risk. Hartnett warned that the inflationary impact of tariffs, especially those imposed on April 2's "Liberation Day," combined with a weakening dollar, could force U.S. bond yields above 5%, a level that would jeopardize the long-standing strategy of deficit-financed growth.



"Nothing reverses U.S. macro policy more quickly than risk of &gt;5% Treasury yields… why tariffs to fall in Q2," he said.



<h3 class="wp-block-heading">Foreign Capital: Still Flowing, But Vulnerable</h3>



Since the latest tariff announcements, there has been no clear sign of widespread dumping of U.S. assets. 



Domestic institutions sold $10.3 billion, but foreign investors bought $4.5 billion, according to Bank of America data.



Still, the stakes are enormous. Foreign investors currently hold $16 trillion in U.S. stocks (18% of total), $8.5 trillion in Treasuries (33%), and $4.4 trillion in corporate bonds (27%), based on Federal Reserve Flow of Funds data.



A sustained spike in yields could scare off that capital, threatening a vicious cycle of higher interest rates and rising debt costs.



Hartnett reiterated his 2025 strategy playbook: bonds over stocks, international over U.S. equities, and gold over the dollar. That thesis, he said, rests on a shift away from the "U.S. exceptionalism" narrative of the past five years — a period that saw nominal GDP rise 50%, fueled by aggressive government spending and easy Fed policy.



Now, with no more Fed cuts, government spending growth flatlining — only rising $50 billion next fiscal year vs. $827 billion over the past year – and Trump's potential policy mix of lower immigration, smaller government, and tariffs, the macro environment is rapidly changing.



Even if the U.S. cuts its effective tariff rate from 28% to 15%, that still implies $600 billion in new tariff revenue due to the expanded base, according to Hartnett. 



<h3 class="wp-block-heading">What&#8217;s Next For Markets?</h3>



Equities, Hartnett said, have already "correctly front-run" the expected second-quarter trade deals and tariff rollback, suggesting a potential near-term "buy the rumor, sell the fact" dynamic. 



Since April 7 lows, the S&amp;P 500 — as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — has rallied 17%.



Meanwhile, the expert favors short positions on the dollar, and long 5-year Treasuries until Trump's GOP reconciliation budget formalizes future tax extensions.



He still sees the &#8220;macro catalysts&#8221; — China easing, Fed cuts, and a strong U.S. consumer — as the key forces behind any further bull run. But on the flip side, he warns that deleveraging contagion in asset markets could emerge as the most likely bear trigger, especially if Trump and Powell "lose the long end" of the yield curve.



Yields on the 30-year Treasury bond traded at 4.87% during Friday morning trading in New York. 



Now Read: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/government/regulations/25/05/45311562/mohamed-el-erian-flags-adverse-implications-for-domestic-industries-as-chinas-exports-rise-8-despite-21-drop-in-us-shipments">Mohamed El-Erian Flags &#8216;Adverse Implications&#8217; For Domestic Industries As China&#8217;s Exports Rise 8% Despite 21% Drop In US Shipments</a></li>
</ul>



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5% Treasury Yields Could Force Trump To Slash Tariffs In Q2, Says BofA's Hartnett

Wall Street traded slightly lower by midday Friday, as investors adopted a wait-and-see stance ahead of a potential trade breakthrough, with high-stakes negotiations between U.S. officials—led by Treasury Secretary Scott Bessent—and Chinese authorities set to <a href="https://www.benzinga.com/topic/tariffs">unfold over the weekend.</a>



President Donald Trump signaled that tariffs on Chinese goods could be slashed from the current 145% to 80%, though that figure remains significantly higher than pre-Liberation Day levels, prompting continued caution among market participants.



Equities gave back a portion of Thursday's gains as sentiment turned more defensive, while gold rebounded 1% to $3,330 per ounce, partially offsetting losses from the previous session.



Oil prices extended their rally, climbing further above $60 a barrel amid an improved global demand outlook, putting crude on track for its strongest weekly performance since late 2024. Natural gas followed suit, with Henry Hub futures rising 4.4%.



In fixed income, Treasury yields held steady, with the 10-year yield hovering around 4.37%.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) took a breather after Thursday's 6.4% surge, trading just above $102,500.



<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>Chg %</td></tr><tr><td>S&amp;P 500</td><td>5,650.98</td><td>-0.2%</td></tr><tr><td>Nasdaq 100</td><td>20,003.04</td><td>-0.3%</td></tr><tr><td>Russell 2000</td><td>2,017.97</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>41,179.33</td><td>-0.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 1:10 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.2% lower to $563.80.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.4% to $412.10.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;eased 0.2% to $487.38.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.3% lower to $200.54.</li>



<li>The&nbsp;Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 0.9%; the&nbsp;Consumer Staples&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 0.5%.</li>
</ul>



<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>



Stocks reacting to earnings reports included: 



<ul class="wp-block-list">
<li>McKesson Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) up 0.48%</li>



<li>Monster Beverage Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) up 2.02%</li>



<li>Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) down 2.28%</li>



<li>TKO Group Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TKO#NYSE">TKO</a>) down 4.10%</li>



<li>Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) up 10.44%</li>



<li>LPL Financial Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPLA#NASDAQ">LPLA</a>) up 5.83%</li>



<li>Ubiquiti Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UI#NYSE">UI</a>) up 14.64%</li>



<li>Rocket Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) down 2.32%</li>



<li>Insulet Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>) up 20.81%</li>



<li>Expedia Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NASDAQ">EXPE</a>) down 7.75%</li>



<li>Alliant Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LNT#NASDAQ">LNT</a>) up 1.29%</li>



<li>Akamai Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AKAM#NASDAQ">AKAM</a>) down 7.90%</li>



<li>EchoStar Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>) up 2.77%</li>



<li>Starwood Property Trust, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STWD#NYSE">STWD</a>) up 0.29%</li>



<li>Essent Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESNT#NYSE">ESNT</a>) down 1.45%</li>
</ul>



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/government/regulations/25/05/45317301/5-treasury-yields-could-force-trump-to-slash-tariffs-in-q2-says-bofas-hartnett">5% Treasury Yields Could Force Trump To Slash Tariffs In Q2, Says BofA&#8217;s Hartnett </a></li>
</ul>



Photo: Shutterstock

Cryptocurrency

Commodities

AKAM

ESNT

EXPE

LPLA

MCHP

MNST

PODD

SATS

STWD

Stocks Slip As Gold Rebounds To $3,330, Bitcoin Holds $102,000: What's Driving Markets Friday?

Despite last week&#8217;s market rally, which saw US markets recover losses since President Trump&#8217;s <a href="https://www.benzinga.com/25/04/44756759/new-research-shows-donald-trumps-25-tariffs-could-cost-auto-companies-108billion-report">tariff announcement </a>in early April, American stocks are still underperforming their European counterparts.



The S&amp;P 500 has rallied 12.5% since Trump's reciprocal tariffs <a href="https://www.benzinga.com/25/04/44729384/trump-pauses-tariffs-after-yields-surge-bond-vigilantes-hit-another-homerun-experts-point-to-bond-market-panic-for-reversal">were paused</a>, but the Vanguard Europe ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGK#NYSE">VGK</a>) is up over 18% in the same timeframe. Despite the ‘Sell America' trade losing some steam, investors still seem to prefer European equities to US equities.



Of course, this surge in European stocks has left most big-name European investments at high valuations. But that doesn&#8217;t mean there are no more good stocks to buy across the Atlantic.



Today, we&#8217;re looking at five European stocks that haven&#8217;t rallied as much as their peers but are still undervalued and have room to run.



Each one ranks high on Benzinga Edge&#8217;s Value rankings, too.



These firms all have a Price-to-Earnings (P/E) ratio under 15, a minimum Benzinga Edge Value score of 85, and sales growth of at least 10% over the last five years. Note that many of these companies trade in the US using securities like American Depository Receipts (ADRs), which function as proxies to international equities but have some differences investors should familiarize themselves with before buying.



<h2 class="wp-block-heading">Equinor ASA</h2>



Benzinga Edge Value Score: 93.23



Equinor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQNR#NYSE">EQNR</a>) is a fully integrated oil and gas company based in Norway. It has a $63.6 billion market cap and a P/E ratio of 7.31. The Norwegian government owns a 67% stake in the firm, but its shares trade on the New York Stock Exchange and European exchanges. Equinor mines for oil on the Norwegian Continental Shelf and also operates solar, wind, and natural gas refineries.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe9uPC-lJJzFwPSnbTtP5iOa07AApLaHwDVkx3cgQuDwKxkHYYa2lO-9RTR3f16_dikQs_Z3g7lEHrZQy37gWEx79XB6beJnFDwFBMHuGufDDUdQTUnPT_2t2tJ8TyStw0zNFdTng?key=K8dCG8bnYTHY9lvM_fV4Pg" alt=""/></figure>



Equinor&#8217;s revenue has expanded for the last three quarters, the first time it has seen revenue growth in three consecutive quarters since 2022. Despite the recent slowdown, Equinor has grown sales at a 21% clip over the last five years, and its dividend currently yields over 6%. A recent earnings miss caused the stock to drop, but the decline ended at the same level as a previous drawdown, indicating a potential bottom and possible entry point.



<h2 class="wp-block-heading">Adecoagro SA&nbsp;</h2>



Benzinga Edge Value Score: 91.79



With a ticker like that, you can probably guess the industry—Adecoagro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGRO#NYSE">AGRO</a>) is a small-cap agricultural firm headquartered in Luxembourg with operations primarily in South America. Although its market cap is under $1 billion, it posted $1.45 billion in revenue over the last 12 months and has grown sales by 13% in the previous five years.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcnBdbVblawYAfq6oDU5lbM73vfH85oa82lcWlDQj5q3E0kpFdS3RICq_NqKfr0LPWMpw4LFPSaeOlOITBfhsBBen5KOQW0f8TCkmyW4VAmalQUR7o_a54X1DufAY_0MnQWYK0zgQ?key=K8dCG8bnYTHY9lvM_fV4Pg" alt=""/></figure>



AGRO shares have a P/E ratio of 9.49 and trade at just 0.60 times sales, but recent downgrades from Morgan Stanley and Bank of America sent the stock plunging under $9 per share. It is trading near its 52-week low, but the Relative Strength Index (RSI) is in oversold territory, indicating this selloff might be petering out.



<h2 class="wp-block-heading">Global Ship Lease Inc.&nbsp;</h2>



Benzinga Edge Value Score: 96.89



Global Ship Lease (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSL#NYSE">GSL</a>) is a Greek-based container shipping line with over 60 ships and a market cap of around $760 million. Most of the company's business comes from MAERSK charters, and its sales have grown by 24% over the last five years. It currently trades with a P/E ratio of just 2.28 with a Price-to-Book value of 0.52.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfOgyaKxvTPC7jixULOPzcVWRVCZC1_kwpZ-pTnfsWfxzIDQ13pdnSZ7oqHHVvR9xR-A7-LPUPNfNNYBTvMRWXt-1VEhuKJNSNFuA-cUOlLkoV4hR-BjNqSISDSSX_3ZUAeULmr_Q?key=K8dCG8bnYTHY9lvM_fV4Pg" alt=""/></figure>



Investing in a shipping company seemed risky once the reciprocal tariff chart was released, and GSL shares plummeted in the days following Trump's Rose Garden announcement. But the stock has rebounded in the weeks following the pause, including a rally that saw eight green candles in nine days. GSL has boosted revenue in six of the last seven quarters as well. Its profit margins are approaching 50%. Jeffries is the only research firm with a rating on the stock, but it&#8217;s a Buy with a price target of $29, indicating an upside of over 35%.



<h2 class="wp-block-heading">Tenaris SA&nbsp;</h2>



Benzinga Edge Value Score: 87.64



Tenaris (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TS#NYSE">TS</a>) resides in the energy sector and produces goods used in oil and gas well construction. The company is based in Luxembourg but has operations in the United States, Argentina, Mexico, and Italy. Tenaris builds some of the most resilient tubular goods used in deep-water and horizontal shale wells.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXepep04kxFz5LigOCKkOFTi_Jcao2DZdJkX_HHkYojkCFq8T8MpSe8B2L6nLoHqsJPJr_Zo7zNlybBiY5ztH0IaQWhsyfrz0j42D9UlCkiuz0cMuuXT4RQPoO0i1e-Cg4k-x6jriA?key=K8dCG8bnYTHY9lvM_fV4Pg" alt=""/></figure>



Tenaris is a large-cap firm in the oil and gas space with an $18 billion market cap and $12 billion in annual sales. The company has grown sales by 17.7% over the last five years, but revenue has declined recently. Profit margins have dipped from 26% in December 2023 to 15% in the most recent report in March. The stock fell below the 50-day and 200-day SMAs following the Rose Garden press conference, but the steep decline triggered an oversold reading on the RSI, and shares currently trade at just 9.5 times forward earnings. 



<h2 class="wp-block-heading">Stellantis NV&nbsp;</h2>



Benzinga Edge Value Score: 97.56



A car manufacturer like Stellantis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) might seem like a bold investment choice in a trade war. The company makes popular American brands like Dodge, Jeep, and Ram. However, only 26% of Stellantis's 2024 sales occurred in North America, and the company does nearly 50% of its business in Europe, providing some level of tariff protection. Stellantis made more than $169 billion in sales over the last 12 months with income of $5.92 billion.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcIzUAo3AZPVu8UKpGTgkdqpIuMjcVaF-M0OOtPDRxN3cet_4mwFsaLpd-gsOEsoQaF-T5fNXFAFCIhfmKGc89IlU-kM5-nZ3QLXtdyk7PAylOfuFCCTpfxAVmP85hQPqQgH3rYQg?key=K8dCG8bnYTHY9lvM_fV4Pg" alt=""/></figure>



Car manufacturers like Stellantis have been some of the hardest hit stocks during the tariff tumult; its shares are down more than 28% year-to-date. However, it might be an opportune time to take a position in the stock as Stellantis is a large-cap company with a significant global presence. The company grew revenue by 33.6% over the last five years and trades at its cheapest valuation in years at just 4.8 times earnings and 0.16 times sales. The stock also pays a 6% dividend yield with a 36% dividend payout ratio, offering income as well as stock price appreciation. And with the RSI triggering an oversold signal, a momentum reversal could be coming soon.



<h2 class="wp-block-heading">The Market's Out of Control – You Don't Have to Be</h2>



Seize back control with Benzinga Edge – your investment command center. With real-time portfolio alerts, actionable stock ideas, and pro-grade tools…you get the complete investor's arsenal — ready to help you profit in any market. Take Back Control Now – Get Your Edge <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-4/?el=ResearchDaily&amp;he=%7B%7Bemail%7D%7D&amp;adt_ei=%7B%7Bemail%7D%7D&amp;utm_adType=SponsorAd&amp;utm_ad=RD0508&amp;utm_campaign=commandcenter">HERE</a>



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

Trading Ideas

AGRO

EQNR

STLA

5 European Stocks Rated High On Our Value Rankings

Prominent economist Mohamed A. El-Erian has highlighted potential &#8220;adverse implications&#8221; for domestic industries following a surprisingly strong surge in China&#8217;s exports for April. In a post on X, El-Erian noted that China&#8217;s exports jumped by 8% in April, significantly exceeding the consensus forecast of 2%.



What Happened: This robust growth occurred even as China experienced a substantial 21% drop in sales to the United States, a key trading partner. El-Erian&#8217;s analysis suggests that this export surge is being fueled by China&#8217;s strategic redirection of its goods to other countries.



&#8220;This surge comes as China redirects more of its exports to other countries, which is likely to exacerbate concerns about the adverse implications for certain domestic industries,&#8221; El-Erian stated in his X post.



El-Erian&#8217;s commentary points out that Chinese goods are entering new markets, as they navigate reduced demand from the U.S. According to him, this could put significant pressure on local producers.



This is likely to lead to increased competition, potentially impacting pricing, market share, and the overall viability of certain domestic industries.



<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">China's exports surged by 8% in April, above the consensus forecast of 2% and despite a 21% drop in sales to the US. This surge comes as China redirects more of its exports to other countries, which is likely to exacerbate concerns about the adverse implications for certain…&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1920732107678110056?ref_src=twsrc%5Etfw">May 9, 2025</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/general/market-summary/25/05/45251508/warren-buffett-falls-behind-nancy-pelosi-in-stock-market-returns-over-the-last-11-years-heres-what-data-shows">Warren Buffett Falls Behind Nancy Pelosi In Stock Market Returns Over The Last 11 Years: Here&#8217;s What Data Shows</a>



Why It Matters: The redirection of Chinese exports is likely a consequence of ongoing trade tensions and geopolitical factors influencing the relationship between China and the United States.



As the U.S. seeks to reduce its reliance on Chinese goods in certain sectors, China appears to be actively seeking and expanding its trade relationships with other nations.



However, the U.S. and China agreed to hold <a href="https://www.benzinga.com/25/05/45242461/donald-trumps-trade-war-sparks-first-major-us-china-talks-scott-bessent-jamieson-greer-to-meet-chinese-delegation-in-geneva">high-level trade talks</a> in Switzerland this weekend, their first major meeting since President Donald Trump initiated the trade war. The meeting comes amid growing U.S. market concerns over tariff impacts. 



Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Thursday. The SPY ended 0.70% higher at $565.06, while the QQQ advanced 1.03% to $488.29, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



On Friday, the futures of the S&amp;P 500, Dow Jones, and Nasdaq 100 advanced during the trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/government/regulations/25/05/45283497/federal-reserve-will-be-the-last-to-cut-says-expert-anticipating-4-cuts-in-2025-a-thaw-in-us-china-trade-dispute-is-good-news">Federal Reserve &#8216;Will Be The Last To Cut&#8217; Rates, Says Expert Who Still Expects Four Cuts In 2025</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image Via Shutterstock

Macro Notification

General

Mohamed El-Erian Flags 'Adverse Implications' For Domestic Industries As China's Exports Rise 8% Despite 21% Drop In US Shipments

If you have been around the energy markets long enough, you know crude oil has a flair for the dramatic.



When it sells off, it does not just trickle down; it falls off a cliff.



The rebound is vicious, fast and usually overdue when it finally wakes up. The trick, as always, is understanding the cycles, not panicking in the downtrend, and positioning for the inevitable rebound.



That is especially true for one of my favorite corners of the energy market: mineral royalty trusts and non-operator oil and gas interests. These are the little guys who do not drill a thing but still get paid when the oil flows.



All this is happening again right now. 



It's setting you up for the best income trade in a decade.



Let us walk through the big oil busts of the last few decades in the late 1990s: the 2008 crash, the 2014 to 2016 wipeout, and, of course, the COVID collapse of 2020.



I want to talk about what happened, how long sentiment stayed sour and what eventually got prices off the mat. Then, we will dig into what all that meant for the royalty trusts and non-operators and how their dividends held up (or not), how the market treated them, and what happened when oil came roaring back.



<h2 class="wp-block-heading">1998: The Asian Flu And The $10 Barrel</h2>



In the late 1990s, OPEC had a problem. They pumped too much oil, thinking Asia would keep consuming it. However, when the Asian financial crisis hit, demand cratered, inventories ballooned, and prices dropped like a rock.



Brent went as low as $10, and nobody wanted to touch an oil stock with a ten-foot pole.



Royalty trusts got smashed. Cash flows dried up, distributions were cut, and unit prices plunged. Investors were left staring at trailing yields in the teens, but those payouts were not sticking around.



Most trusts saw 50% or more wiped off their market capitalizations. However, by late 1999, OPEC got its act together and cut production. Inventories fell, demand slowly came back, and oil doubled. Royalty trust distributions rebounded quickly, and anyone who had the courage to buy when it all looked hopeless got rewarded in a big way.



<h2 class="wp-block-heading">2008: Peak Oil Euphoria Meets Lehman Brothers</h2>



By mid-2008, oil was $147 a barrel and people were chanting "peak oil" like it was gospel.



Then, the financial system imploded.



Demand evaporated, oil crashed to $30 and panic spread. Trust distributions went over the cliff.



Sabine Royalty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBR#NYSE">SBR</a>) cut payouts by more than 50% in a single month.



Prices followed. These income names saw unit values drop 70% or more.



Yields were sky-high on paper, showing 20% or even 30%, but those were based on past payouts that had already been slashed. For most of 2009, distributions were a shadow of their former selves.



However, when the smoke cleared, oil demand returned, OPEC slashed production, and oil started climbing again. Trust distributions bounced, unit prices doubled or tripled off the lows and yields normalized in the high single digits.



Patience paid off.



<h2 class="wp-block-heading">2014 To 2016: The Shale Tsunami</h2>



This one was different. It was not a demand crash. It was too much U.S. shale oil.



OPEC got tired of losing market share and let prices fall from $115 in mid-2014 to under $30 by early 2016. Oil was in freefall for almost two years.



That stretched the pain out.



It was Drill, Baby, Drill Gone Bad, The Prequel.



Royalty and non-op names bled out slowly. Distributions did not collapse all at once&#8230;they just shrank quarter by quarter.



Permian Basin Royalty Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBT#NYSE">PBT</a>) payout dropped by two-thirds.



PrairieSky (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PREKF#OTC">PREKF</a>) and Freehold slashed their dividends.



The market priced them accordingly.



Yields dropped, unit prices got hammered, and by 2016, it was hard to find anyone still bullish.



Then OPEC and Russia teamed up and finally cut production in late 2016.



By 2017, oil was back in the $60s, and royalty trusts started increasing dividends again.



Trusts that had lost 70% of their value doubled or more over the next 18 months. Investors who stayed the course got paid.



<h2 class="wp-block-heading">2020: The Pandemic Panic And Negative Oil Prices</h2>



Then came COVID. Demand did not just shrink. It vanished.



Planes stopped flying, cars stopped driving, and suddenly, the world was drowning in oil.



Saudi Arabia and Russia decided to have a price war on top of it all, and in April 2020, WTI futures went negative.



Royalty trusts had a rough time. Distributions were suspended.



Permianville (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVL#NYSE">PVL</a>) went 13 months without a single payout.



PrairieSky slashed its dividend by two-thirds.



Investors fled. Unit prices dropped 60% to 80% in weeks.



Trailing yields? Meaningless. Nobody was paying anything.



However, it did not last.



OPEC+ made historic cuts.



Demand started recovering.



When vaccines arrived in late 2020, the game changed. By mid-2021, Permianville was paying again. PrairieSky and Freehold started raising dividends.



Share prices doubled or tripled.



By 2022, Sabine's distribution hit $8.65, a monster rebound.



<h2 class="wp-block-heading">What It All Means</h2>



These downturns tell the same story every time: oil crashes, royalty and non-operator income disappear, and the market throws these stocks in the trash. Yields spike on trailing numbers, then vanish when dividends get cut. Sentiment stays ugly for too long.



However, when the oil price recovers, and it always has, these names come back fast. Distributions climb, unit prices follow, and investors who bought when everyone else was scared end up with huge yields on cost and big capital gains.



They are not for the faint of heart. You have to be willing to hold when there is blood in the oil patch.



It's a pain trade.



However, if you buy these things when oil is hated and the checks have stopped, you set yourself up for some of the most explosive total returns in the market.



This is deep value investing, oilfield-style.



And now, it's happening again.



Read the headlines:



<ul>
<li>OPEC is going to increase production.</li>



<li>Oil demand forecasts are being cut.</li>



<li>The much more energy-efficient AI from China will slash demand even further.</li>



<li>Nuclear energy plants are going to pop up like mushrooms with no regulatory delays or cost overruns and be built faster than Buc-ee's.</li>



<li>China will never import another drop of oil.</li>
</ul>



Negative sentiment is building, we&#8217;ve seen some distribution cuts and optimism is harder to find than a good book in a Blockbuster.



Royalty trusts and nonowner operators may go down before they go up, but when they do, they are going to go up a lot.



Those who buy in scale, with patience and a dash of courage, will be well rewarded.



<h2 class="wp-block-heading">Risk, Reward &amp; Reversals: Tactical Options Strategies for an Unstable Market</h2>



When markets get unpredictable, disciplined options strategies can give you an edge. Join Ryan Faloona, Anne-Marie Baiynd and Tim Melvin live on May 6 to learn how they're using risk reversals, 0DTE plays, and hedging tactics to stay nimble and generate income. Save your spot now to learn how to trade smarter this week.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

PREKF

OPEC Just Created The Income Trade Of The Decade

U.S. stock futures fluctuated between gains and losses on Friday, following a three-day winning streak. Major benchmark index futures were mixed in premarket trading.



The U.S. and U.K.<a href="https://www.benzinga.com/25/05/45293839/trump-starmer-strike-us-uk-trade-deal-steel-cars-beef"> sealed a bilateral trade deal</a>, cutting tariffs, boosting industrial ties, and securing billions in new market access. 



A central component of the trade agreement involves the U.S. significantly reducing tariffs on cars made in the UK, bringing them down from 25% to 10% and establishing an annual quota of 100,000 vehicles.



The U.K. will eliminate tariffs on American-made cars, including those from General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), and expedite their passage through customs.



Meanwhile, the 10-year Treasury bond yielded 4.37% and the two-year bond was at 3.86%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing an 82.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.15%</td></tr><tr><td>S&amp;P 500</td><td>0.07%</td></tr><tr><td>Nasdaq 100</td><td>0.17%</td></tr><tr><td>Russell 2000</td><td>-0.23%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were slightly higher in premarket on Friday. The SPY was up 0.004% to $565.08, while the QQQ advanced 0.17% to $489.10, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Industrials, consumer discretionary, and energy sectors led a<a href="https://www.benzinga.com/news/earnings/25/05/45311238/dow-surges-250-points-after-us-announces-first-trade-deal-investor-sentiment-improves-fear-greed-index-remains-in-greed-zone"> broad market rally on Thursday</a>, propelling U.S. stocks higher. The Dow Jones was bolstered by the Donald Trump administration&#8217;s inaugural major trade agreement with the United Kingdom.



However, the health care and utilities sectors diverged from the positive trend, closing lower.



On the company-specific front, U.S. Foods Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USFD#NYSE">USFD</a>) reported first-quarter earnings that fell short of expectations, while Sezzle Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEZL#NASDAQ">SEZL</a>) shares surged by 42% following the company&#8217;s release of better-than-anticipated first-quarter results and an upward revision of its FY25 guidance.



In terms of economic data, U.S. initial jobless claims saw a decline, dropping by 13,000 to 228,000 for the week ending May 3, slightly below market projections. 1 Conversely, U.S. labor productivity in the nonfarm business sector experienced a 0.8% decrease during the first quarter, slightly exceeding the estimated 0.7% drop.



The Dow Jones index advanced 255 points or 0.62% to 41,368.45, whereas the S&amp;P 500 index rose 0.58% to 5,663.94. Nasdaq Composite ended 1.07% higher at 17,928.14, and the small-cap gauge, Russell 2000, climbed 1.85% to 2,026.41.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>1.07%</td><td>17,928.14</td></tr><tr><td>S&amp;P 500</td><td>0.58%</td><td>5,663.94</td></tr><tr><td>Dow Jones</td><td>0.62%</td><td>41,368.45</td></tr><tr><td>Russell 2000</td><td>1.85%</td><td>2,026.41</td></tr></tbody></table></figure>



Insights From Analysts:



According to Louis Navellier of Navellier &amp; Associates, &#8220;Tariffs are steering the boat again.&#8221;



He said that Trump&#8217;s announcement of the U.S. striking a comprehensive agreement with the U.K. and Scott Bessent&#8217;s announcement of a meeting in Switzerland with China to discuss tariffs are propelling the market.



&#8220;This helps explain the long recovery rally since the Liberation Day announcement of tariffs on April 2nd. The fear of missing out on favorable agreements being reached has limited the number of sellers,&#8221; he said.



He added, &#8220;The upside story will be that the tariff agreements will result in mutually low tariffs, which should be generally beneficial for U.S. exporters, as Trump has contended all along.&#8221;



He also said that Trump announcing a definitive deal with the U.K. is an &#8220;important first step in reducing tariff fears.&#8221;



Meanwhile, Ed Yardeni or Yardeni Research agreed with the sentiment and added, &#8220;President Donald Trump will need to declare victories in his trade wars with multiple countries around the world sooner rather than later.&#8221;



Yardeni also explained that Trump and his fellow Republicans have to avoid a recession caused by his tariff wars. Otherwise, they risk losing their thin majorities in both houses of Congress later in 2026, as per Yardeni.



&#8220;The correction in the S&amp;P 500 that started on February 19 ended on April 8. The S&amp;P 500 now has regained almost all its losses since the April 2 close, just before it tanked during the Annihilation Days on April 3 and April 4,&#8221; he said.



According to Yardeni, the stock market will soon have &#8220;deals fatigue and tire of Trump&#8217;s declarations of victory.&#8221;



&#8220;We think the trade issue will be behind us by July or August. If so, then the focus should be on how much Trump&#8217;s tariff skirmishes weighed on the economy and earnings. We expect both will remain surprisingly resilient,&#8221; he added.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Friday:



<ul class="wp-block-list">
<li>Fed Governor Michael Barr will speak at 5:55 a.m., New York Fed President John Williams will speak at 6:15 a.m., and Fed Governor Adriana Kugler will speak at 6:45 a.m. ET.</li>
</ul>



-Fed Governor Lisa Cook will speak at 6:45 a.m. ET.



<ul class="wp-block-list">
<li>Richmond Fed President Tom Barkin speaks at 8:30 a.m., Fed Governor Christopher Waller and New York Fed President John Williams will speak on a panel at 11:30 a.m. ET.</li>
</ul>



<ul class="wp-block-list">
<li>Fed Governor Michelle Bowman, St. Louis Fed President Alberto Musalem, and Fed Cleveland President Beth Hammack will speak on the panel at 7:45 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>EchoStar Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SATS#NASDAQ">SATS</a>) fell 3.53% in premarket on Friday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings loss of 88 cents per share on the revenue of $3.87 billion.</li>
</ul>



<ul class="wp-block-list">
<li>Plains All American Pipeline LP (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAA#NASDAQ">PAA</a>) was up 1.18% as Wall Street expects it to report earnings of 43 cents per share on revenue of $14.26 billion before the opening bell.</li>
</ul>



<ul class="wp-block-list">
<li>LYFT Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>) jumped 7.31% after reporting better-than-expected earnings for the first quarter and announcing a $750 million share buyback plan.</li>
</ul>



<ul class="wp-block-list">
<li>Sensata Technologies Holding PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ST#NYSE">ST</a>) rose 9.13% after reporting better-than-expected first-quarter financial results and issuing strong guidance for the second quarter.</li>
</ul>



<ul class="wp-block-list">
<li>Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) dropped 1.26% after reporting worse-than-expected first-quarter financial results. Coinbase reported first-quarter total revenue of $2.03 billion, missing a Street consensus estimate of $2.12 billion.</li>
</ul>



<ul class="wp-block-list">
<li>Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) was 2.20% higher after its April sales surged on the back of rushed orders following the levy of U.S. tariffs.</li>
</ul>



<ul class="wp-block-list">
<li>Twin Vee Powercats Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VEEE#NASDAQ">VEEE</a>) plunged 37.85% after it announced the fundraise of $3 million by pricing its public offering of 750,000 shares of common stock at $4.00 per share.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.59% to hover around $60.86 per barrel.



Gold Spot US Dollar rose 0.65% to hover around $3,327.68 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.26% at the 100.3830 level.



Asian markets were mixed on Friday as India's S&amp;P BSE Sensex, South Korea's Kospi, and China&#8217;s CSI 300 index fell. While Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng index rose. European markets were higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45310899/quantum-computing-aids-energy-efficiency-for-blockchain-hashing-require-a-fraction-of-the-electricity-used-by-classical-resources-says-d-wave-ceo">Quantum Computing Aids Energy Efficiency For Blockchain Hashing: &#8216;Require A Fraction Of The Electricity Used By Classical Resources,&#8217; Says D-Wave CEO </a></li>
</ul>



Image via Shutterstock

Earnings

Earnings Beats

Earnings Misses

Market Summary

Guidance

Eurozone

Futures

Forex

Federal Reserve

Pre-Market Outlook

LYFT

SEZL

USFD

VEEE

US Stock Futures Flicker Between Gains And Losses After Strong Three-Day Run: 'Tariffs Are Steering The Boat Again,' Says Expert

Monster Beverage Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) is bracing for tighter margins in the second quarter as rising aluminum costs and tariff-related premiums begin to squeeze its bottom line.



What Happened: During the company&#8217;s first quarter earnings call on Thursday, Vice Chairman and Co-CEO, Hilton Schlosberg, said that Monster&#8217;s layered hedging strategy may not be able to contain certain costs, particularly the rise in aluminum prices stemming from the tariffs.



&#8220;We use a ladder approach for hedging, and it's very difficult and somewhat expensive to hedge the Midwest premium,&#8221; he said, referring to the regional surcharge applied to aluminum deliveries in the U.S. Midwest.



See More: <a href="https://www.benzinga.com/markets/25/05/45306998/arm-cfo-explains-why-company-withheld-fiscal-2026-full-year-guidance-amid-uncertainty-from-customers-and-tariff-impacts-the-amount-of-signals-im-getting">Arm CFO Explains Why Company Withheld Fiscal 2026 Full Year Guidance Amid Uncertainty From Customers And Tariff Impacts: &#8216;The Amount Of Signals I&#8217;m Getting…&#8217;</a>



&#8220;To a limited degree, we are hedged with certain volumes in the Midwest premium,&#8221; Schlosberg said, while acknowledging, &#8220;we don't always win&#8221; with hedging. He added that the purpose of the company's hedging strategy is to manage risk and avoid leaving the business overly exposed to price volatility.



Looking ahead, Schlosberg warned that rising material costs, including the Midwest aluminum premium, are likely to pressure margins in the coming months. &#8220;I wouldn't expect that the second quarter margin will be as high as the first quarter margin,&#8221; he said.



Why It Matters: In February, Coca-Cola Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>) warned that the <a href="https://benzinga.com/news/25/02/43759161/coca-cola-warns-trumps-tariffs-could-force-it-to-use-more-plastic-if-aluminium-cans-become-more-expensive-we-can-shift-to-pet">tariffs on Aluminum</a> could force it to use more plastic to keep prices stable. &#8220;If aluminum cans become more expensive, we can put more emphasis on PET bottles,&#8221; the company&#8217;s CEO, James Quincey, said. 



Even Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), the largest aluminum producer in the U.S., recently disclosed that tariffs <a href="https://benzinga.com/news/earnings/25/04/44858454/alcoa-warns-tariffs-could-cost-425-million-annually-this-is-the-most-material-impact-says-ceo">have taken a toll</a> on its bottom line, while estimating an annual earnings impact of $425 million. The company noted that 70% of its production based in Canada is destined for American consumers, making it vulnerable.



Monster Beverages is also expected to face certain <a href="https://www.benzinga.com/markets/equities/25/05/45188975/snap-spending-shift-could-hit-general-mills-pepsico-hard-warns-analyst">headwinds stemming from cuts</a> in the U.S. Federal Government&#8217;s Supplemental Nutrition Assistance Program (SNAP), with roughly 10% of its $123 billion annual budget being spent on soda. 



During its first quarter results, Monster reported $1.85 billion in revenue, down 2.3% year-over-year, with a profit of $0.45 per share, up 7.4% from last year. The company missed consensus estimates at the top and bottom lines. 



Price Action: The stock was down 0.69% on Thursday, and is down 0.73% after hours, following its first quarter, which fell short of analyst estimates.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="136" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM-1024x136.png" alt="" class="wp-image-909331" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM-1024x136.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM-300x40.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM-768x102.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM-1536x204.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08221424/Screenshot-2025-05-09-at-7.44.12-AM.png 1610w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



According to Benzinga&#8217;s Edge Stock Rankings, the stock sports a favorable price trend in the short, medium, and long term. For more insights, sign up for <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Benzinga Edge</a>.



Photo Courtesy: kiraziku2u on Shutterstock.com



Read More: 



<ul>
<li><a href="https://www.benzinga.com/25/05/45305930/elon-musk-said-bill-gates-has-no-clue-after-gates-claimed-electric-trucks-may-never-be-practical-because-they-cant-cover-long-distances">Elon Musk Said Bill Gates &#8216;Has No Clue&#8217; After Gates Claimed Electric Trucks May &#8216;Never Be Practical&#8217; Because They Can&#8217;t Cover Long Distances</a></li>
</ul>

Monster's CEO: 'We Don't Always Win' On Hedging—As Aluminum Tariffs Bite Into Q2 Margins

According to the latest data, zero-day-to-expiration (0DTE) options hit record high volumes this week, a sign that &#8220;risk appetite is skyrocketing,&#8221; say market observers.



What Happened: On Thursday night, popular investment newsletter The Kobeissi Letter shared a chart on X, made by options research firm Tier1 Alpha, illustrating the sharp rise in zero-day-to-expiration (0DTE) S&amp;P 500 option volumes in recent years.



The chart shows 0DTE volumes as a share of the total S&amp;P 500 option volumes, touching a staggering new high of 67% on Tuesday this week, &#8220;an all-time high.&#8221;



Zero-day-to-expiration (0DTE) options are contracts on stocks or indexes that expire on the same day they are traded, making them a popular tool for short-term speculation and intraday strategies.



See More: <a href="https://www.benzinga.com/25/05/45308114/warner-bros-discovery-pulls-back-on-streaming-flood-betting-big-on-premium-hits-and-letting-scooby-doo-sniff-out-new-fans-on-netflix">Warner Bros. Discovery Pulling Back From &#8216;More Is Better&#8217; Streaming Strategy, Bets Big On Premium Content — And Letting Scooby-Doo Sniff Out New Fans On Netflix</a>



The post highlights the growing popularity of these risky, ultra-short-term trading instruments, stating that their volume share has more than doubled over the past three years. 



<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">Risk appetite is skyrocketing: 0DTE options volume reflected 67% of total options volume on Tuesday, an all-time high. Over the last 3 years, the volume share of these risky trading instruments has more than DOUBLED. In Q1 2025, the average daily trading volume of 0DTE… <a href="https://t.co/LQF7mLEf5i">pic.twitter.com/LQF7mLEf5i</a>&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1920621989342892423?ref_src=twsrc%5Etfw">May 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



During the first quarter of 2025, the average daily volumes of 0DTE options contracts exceeded 2 million, &#8220;for the first time in history,&#8221; it says. The post notes that average daily 0DTE volumes stood at just 400,000 in the first quarter of 2022, not 400 million (which is a typo), marking a fivefold increase over the past three years.



It ends by stating that &#8220;Risk appetite has completely flipped.&#8221;



Why It Matters: The Vice President of Derivatives Market Intelligence at CBOE Global Markets Inc. (BATS:<a class="ticker" href="https://www.benzinga.com/stock/CBOE#BATS">CBOE</a>), Henry Schwartz, recently said <a href="https://www.benzinga.com/partner/news/25/05/45222085/zero-day-options-priced-appropriately-despite-market-volatility-insights-from-cboe-webinar-with-benz">during a Benzinga Webinar</a> this week that 0DTE options tend to be priced appropriately for current market conditions. &#8220;The options market is a pretty efficient marketplace, things are generally priced right,&#8221; he said.



Others, such as JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) analysts, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/03/31230564/jpmorgan-analysts-believe-these-options-could-turn-a-5-market-fall-into-a-deadly-di">have expressed concerns</a> that the rising popularity of 0DTE options could potentially exacerbate intraday market declines.



Photo Courtesy: Gsign76 On Shutterstock.com



Read More: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/05/45308042/monsters-ceo-we-dont-always-win-on-hedging-as-aluminum-tariffs-bite-into-q2-margins">Monster&#8217;s CEO: &#8216;We Don&#8217;t Always Win&#8217; On Hedging—As Aluminum Tariffs Bite Into Q2 Margins</a></li>
</ul>

Options

CBOE

A Sign Of 'Skyrocketing' Risk Appetite? One-Day Option Trades Explode In Popularity

Warner Bros. Discovery Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) is reshaping its streaming strategy, cutting back on sheer content volume and doubling down on premium franchises, all while striking licensing deals like sending Scooby-Doo over to Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>).



What Happened: On Thursday, during the company's first-quarter earnings call, WBD CEO David Zaslav explained how the company is moving away from the old "more is better" streaming mindset.



He praised the success of Warner Bros. Television Group CEO Channing Dungey's team, noting a strong performance with high-profile projects such as "Ted Lasso" and "Presumed Innocent" for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).



Zaslav highlighted that Presumed Innocent originated as a WBD title and was transformed into a compelling series before being sold to Apple — a deal he described as &#8220;very good business&#8221; for the company.



He also pointed to other notable titles like Shrinking, Bad Monkey, and Abbott Elementary—the latter being sold to Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>)—as evidence of WBD&#8217;s reputation as a high-quality content provider.



See Also:&nbsp;<a href="https://www.benzinga.com/25/04/44831264/microsoft-debuts-computer-use-tool-for-copilot-studio-ceo-satya-nadella-says-anyone-can-build-agents-that-take-action-on-the-ui-across-desktop-and-web-apps" target="_blank" rel="noreferrer noopener">Satya Nadella Says Microsoft&#8217;s New Tool Allows Anyone To Create AI Agents That Click, Type, And Navigate On Your Computer For You</a>



However, he made a clear distinction when it comes to certain intellectual properties. Core franchises like "Wonder Woman," "Batman," "Superman" and "Supergirl," currently being developed under James Gunn and Peter Safran's 10-year DC roadmap, are being cultivated as global asset builders exclusive to Warner Bros. Discovery.



The WBD CEO said the same applies to "Harry Potter," noting a decade-long commitment with author JK Rowling and "Game of Thrones" as part of the studio's long-term strategy to develop and retain premium, globally recognizable IP.



&#8220;Those belong to us and they'll only belong to us forever because we're building big assets and a global differentiated strategy around that,&#8221; he stated.



However, Warner Bros. isn't locking up every piece of its massive library. Zaslav pointed to the recent example of Scooby-Doo, where the company sold a new show to Netflix to reach a broader audience.&nbsp;



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.



"In some cases, we'll find with Scooby-Doo, we can sell something to Ted [Sarandos] and Netflix, and that can get very broad acceptance in the marketplace," Zaslav said. "And then we can follow it with a Scooby-Doo movie — that would be a real win-win for us."



WBD CFO Gunnar Wiedenfels added that this strategy shift does not mean Warner Bros. will dramatically ramp up or slash spending.



"We have significant growth ambitions for the streaming service and for the studio," he said, noting the company will support those goals with moderate increases in content spending over time.



Why It's Important: Warner Bros. posted a 9% year-over-year revenue decline (excluding foreign exchange impacts) to $8.98 billion, falling short of the analyst consensus estimate of $9.60 billion.



Streaming revenue rose 9% year-over-year (excluding foreign exchange effects) to $2.66 billion. The growth was driven in part by an 8% increase in distribution revenue, fueled by a 23% surge in subscribers thanks to Max's ongoing global rollout and new domestic distribution agreements.



Price Action: WBD shares rose 0.43% to $9.05 in Thursday's after-hours trading, according to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro data</a>.



Benzinga Edge Stock Rankings assigns the stock a growth score of 5.89%. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here to see how it stacks up against</a> Netflix, Disney, Apple, and other major players.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/WBD"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/08222959/Screenshot-2025-05-09-at-7.59.48%E2%80%AFAM.png" alt="" class="wp-image-909347"/></a></figure>



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:&nbsp;



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<li><a href="https://benzinga.com/trading-ideas/movers/25/04/45029805/what-caused-sam-altman-founded-world-network-token-to-soar-57-in-a-week" target="_blank" rel="noreferrer noopener">What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week?</a></li>
</ul>



Photo Courtesy: Elzbieta Krzysztof On Shutterstock.com



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Entertainment

AAPL

NFLX

Warner Bros. Discovery Pulling Back From 'More Is Better' Streaming Strategy, Bets Big On Premium Content — And Letting Scooby-Doo Sniff Out New Fans On Netflix

Affirm Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>) released its third-quarter results after Thursday's closing bell. Here's a look at the key <a href="https://www.benzinga.com/pressreleases/25/05/b45299243/affirm-reports-third-fiscal-quarter-2025-results">figures in the report. </a>



The Details: Affirm reported quarterly losses of one cent per share, which beat the Street estimate of losses of three cents. Quarterly revenue of $783.13 million beat the consensus estimate of $783.03 million and is up from revenue of $576.16 million from the prior year&#8217;s quarter.



Read Next: <a href="https://www.benzinga.com/news/earnings/25/05/45292652/thursdays-top-5-trending-stocks-whats-going-on-with-d-wave-novavax-carvana?utm_source=articleShare">Thursday&#8217;s Top 5 Trending Stocks: What&#8217;s Going On With D-Wave, Novavax, Carvana?</a>



For the third quarter, Affirm reported:



<ul>
<li>Gross Merchandise Volume (GMV) grew 36% to $8.6 billion. </li>



<li>Direct-to-Consumer GMV (D2C GMV) grew 50% to $2.4 billion and Affirm Card GMV within this grew 115% to $807 million. </li>



<li>Active consumers, excluding the discontinued Returnly business, increased 23% to 21.9 million. </li>



<li>Active merchant count increased 23% to 358,000 at the end of the quarter. </li>
</ul>



&#8220;Demand for Affirm remains excellent: year-over-year GMV growth accelerated for the third consecutive quarter, including a strong March, which continued into April. Credit outcomes are in line with our predictions, and as always, we are watching attentively for any indicators of macroeconomic stress, and fine-tuning the settings of our models continuously, CEO Max Levchin wrote in a letter to shareholders.



AFRM Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Affirm stock was down 7.96% at $49.94 after-hours Thursday.  



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/general/travel/25/05/45260938/disneys-new-abu-dhabi-theme-park-will-be-authentically-disney-and-distinctly-emirati-ceo-bob-iger-says?utm_source=articleShare">Disney&#8217;s New Abu Dhabi Theme Park Will Be &#8216;Authentically Disney And Distinctly Emirati,&#8217; CEO Bob Iger Says&nbsp;</a></li>
</ul>



Photo: Shutterstock

Fintech

After-Hours Center

AFRM

Affirm Stock Sinks Despite Better-Than-Expected Q3 Results

Rocket Lab USA Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) reported financial results for the first quarter on Thursday after the bell. Here&#8217;s a rundown of the <a href="https://www.benzinga.com/pressreleases/25/05/b45300130/rocket-lab-announces-first-quarter-2025-financial-results-posting-quarterly-revenue-of-123m-repres">end-to-end space company&#8217;s report</a>.



Q1 Earnings: Rocket Lab reported first-quarter revenue of $122.57 million, beating the&nbsp;<a href="http://benzinga.com/quote/rklb/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $121.38 million. The company reported a first-quarter loss of 12 cents per share, beating analyst estimates for a loss of 13 cents per share, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 32% year-over-year&nbsp;after the company successfully launched five Electron missions for three separate commercial satellite constellation operators in the first quarter.



The space company ended the quarter with approximately $303.15 million in cash and cash equivalents, up from $271 million at the end of 2024.



&#8220;Rocket Lab has delivered a strong first quarter performance, with wins across our launch and space systems divisions reflected in our near-record $123 million revenue — at the top end of our guidance and a 32% increase year-on-year compared to Q1 2024,&#8221; said Peter Beck, founder and CEO of Rocket Lab.



&#8220;We also remain confident in our ability to execute and deliver on what&#8217;s set to be another strong quarter, with our Q2 2025 revenue guidance in the $130m-$140 million range — which would reflect the underlying strength of our increasingly diverse business within the current geopolitical climate, showing the resilience of our vertically integrated end-to-end space company business model.&#8221;



Check This Out: <a href="https://www.benzinga.com/news/financing/25/05/45297876/after-spacex-cathie-wood-bets-big-on-elon-musks-xai">After SpaceX, Cathie Wood Bets Big on Elon Musk&#8217;s xAI</a>



Rocket Lab announced a <a href="https://www.benzinga.com/pressreleases/25/05/b45300282/rocket-lab-partners-with-u-s-air-force-for-neutron-launch-for-re-entry-mission">partnership</a> with the U.S. Air Force in which the company will launch its new medium-lift reusable rocket Neutron for a Rocket Cargo mission that supports point-to-point cargo transportation. The mission is scheduled for a return-to-Earth launch no earlier than 2026.



Guidance:&nbsp;Rocket Lab sees second-quarter revenue of $130 million to $140 million versus estimates of $136.82 million. The company anticipates an adjusted EBITDA loss of $28 million to $30 million in the second quarter.



Rocket Lab announced plans to establish a holding company structure. The new parent company, Rocket Lab Corporation, will replace Rocket Lab USA, Inc. as the publicly listed company on the Nasdaq. The new company structure is expected to be in effect by June 1.



Rocket Lab management will further discuss the company&#8217;s quarterly results on a call with investors and analysts at 5 p.m. ET.



RKLB Price Action: <a href="https://www.benzinga.com/quote/RKLB" target="_blank" rel="noreferrer noopener">Rocket Lab shares</a> were down 3.59% after-hours, trading at $22.23 at the time of publication on Thursday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/05/45249164/elon-musks-mars-ambitions-take-flight-as-spacex-gets-faa-approval-for-texas-starship-launches">Elon Musk&#8217;s Mars Ambitions Take Flight As SpaceX Gets FAA Approval For Texas Starship Launches</a></li>
</ul>



Photo: courtesy of Rocket Lab.

SPACE

RKLB

Rocket Lab Q1 Earnings: Revenue Beat, EPS Beat, Planned Neutron Launch For US Air Force, 'Another Strong Quarter' Ahead

The cryptocurrency market is pushing higher, buoyed by a newly agreed-upon trade deal between the United States and the United Kingdom.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>$101,123.47</td><td>+4.8%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>$2,064.54</td><td>+14.5%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>$160.14</td><td>+9.3%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>$2.24</td><td>+5.9%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>$0.1902&nbsp;</td><td>+11.6%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>$0.00001396</td><td>+10%</td></tr></tbody></table></figure>



Notable Statistics:



<ul>
<li>IntoTheBlock data shows large transaction volume increasing by 2.3% and daily active addresses growing by 8.7%. Transactions greater than $100,000 are up from 9,668 to 10,628 in a single day. Exchanges netflows are down by 667.9%.</li>



<li>Coinglass data reports 145,654 traders were liquidated in the past 24 hours for $583.27 million, with short liquidations of $472.8 million at the highest level since April 22.</li>
</ul>



Notable Developments:



<ul>
<li><a href="Coinbase%20Acquires%20Deribit%20In%20$2.9B%20Deal%20To%20Expand%20Crypto%20Derivatives%20Business">Coinbase Acquires Deribit In $2.9B Deal To Expand Crypto Derivatives Business</a></li>



<li><a href="https://in.benzinga.com/markets/cryptocurrency/25/05/45293063/judge-dismisses-most-claims-against-tom-brady-stephen-curry-over-ftx-crypto-endorsements">Judge Dismisses Most Claims Against Tom Brady, Stephen Curry Over FTX Crypto Endorsements</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45277600/trumps-crypto-policy-like-a-large-buffet-says-anthony-scaramucci-you-have-to-eat-everything-at-the-table">Anthony Scaramucci Compares Trump&#8217;s Crypto Policy To Mar-A-Lago Buffet: &#8216;You Have To Eat Everything At The Table&#8217;</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45288788/bitcoin-ethereum-xrp-surge-as-experts-predict-btc-to-112000-soon">Bitcoin, Ethereum, XRP Surge As Experts Predict BTC To $112,000 Soon</a></li>



<li><a href="https://www.benzinga.com/25/05/45284152/coin-vs-mara-which-crypto-stock-chart-has-the-bullish-edge-before-q1-earnings-drop">COIN Vs. MARA: Which Crypto Stock Chart Has The Bullish Edge Before Q1 Earnings Drop?</a></li>



<li><a href="https://www.benzinga.com/25/05/45288307/xrp-gains-on-ripple-expansion-and-sec-vote-speculation">XRP Gains on Ripple Expansion And SEC Vote Speculation</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Brett (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">BRETT</a>)</td><td>$0.07278</td><td>+39.4%</td></tr><tr><td>Virtuals Protocol (CRYPTO: VIRTUAL)</td><td>$1.80</td><td>+33.2%</td></tr><tr><td>Pudgy Penguins (CRYPTO: PENGU)</td><td>$0.01431</td><td>+32.4%</td></tr></tbody></table></figure>



Trader Notes: CryptoCon says many investors will regret missing phases 4 and 5 of the Bitcoin MVRV cycle, which historically mark the heart of the bull market. He remains confident that Bitcoin is en route to reclaim $100,000 and beyond.



<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">I think there will be a lot of people who are very upset when they miss phases 4 and 5 of the Bitcoin MVRV cycle (the entire bull market). 100k+ again feels nice! <a href="https://t.co/5VXuGcvJL0">pic.twitter.com/5VXuGcvJL0</a>&mdash; CryptoCon (@CryptoCon_) <a href="https://twitter.com/CryptoCon_/status/1920518551359656110?ref_src=twsrc%5Etfw">May 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Crypto trader Kevin highlighted his April 28 prediction of a drop in Bitcoin dominance, which has since declined by 1%, confirming his forecast that altcoins would begin outperforming BTC.



Meanwhile, Blockchainedbb remains disciplined in her strategy, despite Bitcoin's 34% rally. She plans to take profits within a set range and anticipates BTC will consolidate between $108,000–$122,000 for up to three months. During that time, she expects a strong altcoin rally, warning that most retail buyers will likely enter near the top, repeating classic cycle behaviour.



<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"><a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> up 34% . Absolutely no change in plan . I'll take profits , at the said range ! <a href="https://twitter.com/search?q=%24BTc&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTc</a> will hover between 108-122k for upto 3 months and alts will rally hard so yall buy the top . And you will . History will repeat ! <a href="https://t.co/o5IAMlqFpI">https://t.co/o5IAMlqFpI</a>&mdash; Blockchainedbb (@blockchainedbb) <a href="https://twitter.com/blockchainedbb/status/1920481433375674369?ref_src=twsrc%5Etfw">May 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Rekt Capital added that the recent bullish divergence ended Bitcoin's downside deviation, pushing BTC back above $100,000, signaling renewed strength.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45281333/bitcoin-120000-price-target-may-be-too-low-says-standard-chartered-i-apologize">Bitcoin $120,000 Price Target May Be Too Low, Says Standard Chartered: &#8216;I Apologize&#8217;</a></li>
</ul>



Image: Shutterstock

$DOGE

$ETH

$SHIB

$SOL

$XRP

Bitcoin, Ethereum, XRP, Dogecoin Explode For Double-Digit Percentage Gains After Trump Trade Deal News

Mexican stocks are charging ahead of their U.S. counterparts this year, setting the stage for their strongest outperformance versus the S&amp;P 500 since 2005, defying speculations that a Donald Trump administration would deal a<a href="https://www.benzinga.com/topic/mexico"> blow to Mexican assets. </a>



Through May 8, the iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>)—a key vehicle for U.S. investors to access Mexican equities—has surged 26%, while the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has dropped 4.5%.



That's a staggering 30.5 percentage point lead in less than five months, rivaling the 37% annual outperformance seen in 2005—but at a much faster pace.



<h3 class="wp-block-heading">Mexican vs. US Stocks: YTD Performance (Through May 8, 2025)</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Index/ETF</th><th>YTD % Change</th></tr></thead><tbody><tr><td>EWW (iShares MSCI Mexico)</td><td>+26.0%</td></tr><tr><td>SPY (SPDR S&amp;P 500)</td><td>-4.5%</td></tr><tr><td>Outperformance Gap</td><td>+30.5%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Peso Recovery And Economic Resilience Fuel the Rally</h3>



The Mexican peso has appreciated 6.5% against the U.S. dollar so far this year, clawing back losses after a 23% decline in 2024. 



Meanwhile, the Mexican economy narrowly avoided a technical recession in the first quarter, while the U.S. economy contracted.



"Despite heightened domestic and external uncertainty, Mexico (barely) escaped entering a technical recession in 1Q25," said Alberto Ramos, economist at Goldman Sachs.



According to Ramos, strong trade flows into the U.S. ahead of anticipated import tariff changes supported activity in early 2025. However, he also flagged warning signs, with weakening business confidence and a downturn in manufacturing sentiment.



April's manufacturing PMIs showed clear contraction, particularly in new domestic and export orders.



<h3 class="wp-block-heading">Banxico In Easing Mode As Growth Risks Rise</h3>



Mexico's central bank has responded to the shifting macroeconomic landscape with monetary easing. Since July 2024, Banxico has cut rates by 200 basis points, bringing the policy rate down to 9%.



Since January, the pace of cuts has accelerated to 50 basis points per meeting. This comes amid rising global uncertainty, especially around the potential for renewed U.S. trade tensions under the Trump administration.



Analysts expect another 50-basis-point cut on May 9, assuming inflation trends continue to improve, suggesting further easing may be in the pipeline.



<h3 class="wp-block-heading">Top-Performing Mexican Stocks In 2025</h3>



Several Mexican equities have delivered stellar returns this year, with four stocks in the EWW ETF already posting gains above 50%:



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Company</th><th>YTD Performance</th><th>Description</th></tr></thead><tbody><tr><td>Operadora de Sites Mexicanos</td><td>+63%</td><td>Operates telecom towers and infrastructure; a major player in wireless expansion.</td></tr><tr><td>Industrias Peñoles</td><td>+59%</td><td>A mining firm with large exposure to silver, zinc, and precious metals.</td></tr><tr><td>Gentera</td><td>+57%</td><td>Provides microfinance and banking services to underserved markets.</td></tr><tr><td>Megacable Holdings</td><td>+53%</td><td>Offers broadband, TV, and telecommunications services across Mexico.</td></tr></tbody></table></figure>



A key contributor has also been Grupo Financiero Banorte, up 35% year to date and currently the largest holding in the EWW ETF, with an 11% weight.



Market breadth has been notably positive, with just 6 of the 47 EWW constituents posting losses this year through May 8.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/05/45266366/powell-flags-sharp-tariff-shock-elevated-uncertainty-fed-sticks-to-wait-and-see-mode">Powell Flags Sharp Tariff Shock, Elevated Uncertainty: Fed Sticks To &#8216;Wait-And-See&#8217; Mode</a></li>
</ul>



Photo: Shutterstock

Latin America

Global

Mexican Stocks Post Biggest Outperformance Over Wall Street In 20 Years

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) on Thursday evening crossed the $100,000 milestone for the first time in three months, fueling debate over whether this marks the beginning of a sustainable bull run or a <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45288788/bitcoin-ethereum-xrp-surge-as-experts-predict-btc-to-112000-soon">momentary technical breakout. </a>



Experts are now focused less on the price level itself and more on what the breakout signals for Bitcoin&#8217;s evolving role in global finance.



What Experts Are Saying: Speaking with Benzinga, Christian Thompson, Managing Director at the Sui Foundation said he believes the narrative is shifting from passive holding to real-world use cases.



"Bitcoin hitting $100,000 is a big milestone, but the real story is what happens next," he said. "We're entering a phase where you can actually use it — to borrow, lend or access new kinds of financial tools."



Thompson noted that platforms like Sui are enabling developers to build more practical and secure applications, likening the current transition to the shift from plug-in to battery-powered tools: "It suddenly made everything more mobile, more accessible, and easier to build with. That's what we're seeing with Bitcoin now."



Bitcoin is currently trading at $101,450, having reached an intraday high of $101,784, up about 5% in the past 24 hours. Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) is also rallying, up 13%, while Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>) and XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>) gained 10% and 6%, respectively.



Duncan Moir, President of 21Shares, emphasized Bitcoin&#8217;s growing identity as a standalone asset class. 



"Bitcoin&#8217;s recovery to $100,000 isn't just a milestone: it's a powerful confirmation that crypto is entering a new era," Moir said in a note to Benzinga. "Investors are no longer treating Bitcoin as just a speculative play. It's becoming a strategic allocation and a store of value."



From a technical perspective, Arthur Azizov, Founder of B2 Ventures, pointed to key breakouts. 



Also Read:<a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45293063/judge-dismisses-most-claims-against-tom-brady-stephen-curry-over-ftx-crypto-endorsements"> Judge Dismisses Most Claims Against Tom Brady, Stephen Curry Over FTX Crypto Endorsements</a>



"BTC has broken out of the descending channel and pennant formation, both indicating bullish patterns," he said. 



While he warned that the current RSI suggests an overbought condition, he noted strong volume support and identified $103,000–$105,000 as the next key resistance zone.



Azizov also linked the rally to geopolitical developments and institutional demand. 



"Trump's announcement about removing tariffs on UK steel and aluminum and the Fed&#8217;s decision to preserve rates have lifted risk assets. 



Meanwhile, Strategy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) move to increase its BTC reserves is reinforcing institutional confidence."



Grigore Roșu, CEO of Pi Squared, added that Bitcoin's price action reflects broader sentiment. 



"The upswing follows the Fed's recent decision to maintain interest rates, alleviating pressure on risk assets," he said. "Ethereum's 12% rally in the past 24 hours also reflects confidence, driven by the successful implementation of its Pectra upgrade."



Anthony Anzalone, CEO of XION, echoed those views, stating: "Bitcoin crossing $100k solidifies its role as &#8216;digital gold.&#8217; Some experts like Charles Hoskinson are even more bullish, predicting BTC could reach $250k by the end of 2025."



Meanwhile, Alice Liu, Head of Research at CoinMarketCap, stressed that macro trends are playing a crucial role. 



"The U.S. Dollar Index has dropped 9% since January, and the U.S. M2 money supply has risen 4% year-on-year—both supportive of Bitcoin," she told Benzinga. 



She also noted that Bitcoin exchange balances are at their lowest since 2018, indicating long-term accumulation. "It's still too early to call this a full-fledged bull market, but the fundamentals are aligning."



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45287050/coinbase-acquires-deribit-in-2-9b-deal-to-expand-crypto-derivatives-business">Coinbase Acquires Deribit In $2.9B Deal To Expand Crypto Derivatives Business</a></li>
</ul>



Image: Shutterstock

MSTR

Bitcoin Breaks $100,000, Ethereum, XRP, Dogecoin Roar 10% Higher: What Do Experts Predict Next?

Bank of America is doubling down on its call that the Federal Reserve will not cut interest rates in 2025, underscoring the central bank's growing discomfort with a dual threat of rising inflation and unemployment revealed at <a href="https://www.benzinga.com/topic/federal-reserve">this week's policy meeting.</a>



In a note shared Thursday, BofA economist Aditya Bhave said the key takeaway from the May Federal Open Market Committee meeting was "an upgrade to the Fed&#8217;s assessment of economic uncertainty." 



Bhave referred to two new lines in the Fed's statement: first, that uncertainty "has increased further," and second, "risks of higher unemployment and higher inflation have risen."



<h3 class="wp-block-heading">Hawkish Tilt As Fed Acknowledges Stagflation Risks</h3>



While the Fed kept rates unchanged at 4.25%-4.50%, Chair Jerome Powell's press conference took a cautious, hawkish tone compared to March.



Powell repeatedly emphasized the central bank's comfort with staying on hold and made clear that the Fed would not act preemptively—unlike in 2019 when it delivered three rate cuts as inflation was running well below target.



That's not the case today. Core inflation has exceeded the Fed's 2% target for four straight years, giving policymakers far less room to maneuver. 



Bhave said Powell's message was clear: "Uncertainty is high, and the Fed is comfortable staying on hold until there is greater clarity."



<h3 class="wp-block-heading">Higher Bar For Cuts, Markets Start To Adjust</h3>



According to Bhave, this approach means the hurdle for a June cut is now significantly higher. 



Market expectations have already begun to reflect that shift. 



The CME FedWatch tool shows that the probability of a June rate cut tumbled to 16% on Thursday &#8211; down from 28% before Powell's remarks. The chances of a July move are 65%, down from 92% a week ago.



BofA's base case assumes a steady labor market paired with renewed inflationary pressures—conditions that effectively rule out any Fed rate cuts.



"If our base case of a steady labor market and rising inflation is correct, we don&#8217;t see a path to cuts in 2025," Bhave said.



<h3 class="wp-block-heading">Implications For Markets</h3>



BofA rate strategist Mark Cabana said front-end Treasury yields could move higher as investors increasingly price out near-term rate cuts. He also recommends staying underweight in longer-dated Treasuries, where issuance—particularly in the 30-year tenor—continues to exceed demand.



BofA maintains a broadly bearish stance on the U.S. dollar despite adopting a more hawkish-than-consensus view on the rate outlook. Cabana said the dollar remains "notably dislocated from short-term rate differentials," and that this misalignment is unlikely to correct through subtle shifts in Fed language alone.



"We remain broadly dollar-bearish, and negative sentiment more broadly has increased over the past month, with many re-thinking broader allocations to U.S. assets and/or FX hedges," the investment bank said.



The U.S. dollar index – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – has fallen 8% year-to-date, on track for its worst year since 2017. 



 Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45269703/stagflation-emerges-as-key-economic-risk-to-federal-reserve-policy-economists-warn">Stagflation Emerges As Key Risk To Fed Policy, Economists Warn: &#8216;We&#8217;re Grappling With A Rare Trifecta&#8217;</a></li>
</ul>



Photo: Shutterstock

Bonds

Currency ETFs

Forget Rate Cuts This Year, Bank Of America Warns After Powell's Hawkish Tone

U.S. stocks rallied Thursday after the Trump administration signed its first major trade agreement with the United Kingdom, igniting optimism about further global deals — especially with China — and lifting investor <a href="https://www.benzinga.com/markets">appetite for riskier assets.</a>



The S&amp;P 500 jumped 1.3% to close at 5,700, led by gains in technology stocks. The Russell 2000 soared 2.1%, outperforming larger-cap counterparts and fully recovering the losses triggered by the April 2 tariff announcement.



Under the deal, the U.S. slashed tariffs on UK-made vehicles from 25% to 10%, granting British carmakers a 100,000-vehicle quota. In return, the UK reduced tariffs on American beef to near-zero levels and pledged to purchase $10 billion worth of Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) aircraft. Trump confirmed that the 10% tariff would remain the baseline for now, though he suggested other nations with large trade surpluses should expect higher rates.



During a press briefing, Trump hinted at the &#8220;biggest tax cuts in history&#8221; and urged investors to act: "You better go out and buy stock. This country will be like a rocket ship," he said.



The president also responded to Federal Reserve Chair Jerome Powell, who noted a day earlier he hadn't been invited to meet with Trump. "I could call him from a meeting, but it's like talking to a wall," Trump said. 



"He's always too late [in cutting interest rates]. But in this case, it's not going to matter that much because our country is so strong."



Markets reflected that strength. The U.S. dollar rallied sharply as the new trade deal and reduced economic uncertainty boosted confidence. The U.S. Dollar Index (DXY) jumped to its highest level since April 11, climbing over 1% against the Japanese yen.



Treasury yields rose across the curve, with the 10-year yield adding 7 basis points to reach 4.34%.



In commodities, gold prices dropped as investors rotated out of safe havens. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) fell 1.5%, trimming its weekly gains. Oil prices rose 3.5%, with West Texas Intermediate crude topping $60 per barrel.



Crypto markets erupted higher. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) broke above $100,000 for the first time since February, rising 4.1%. Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) surged 13%, while Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) gained 10%.



<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % Chg</td></tr><tr><td>Russell 2000</td><td>2,030.85</td><td>+2.1%</td></tr><tr><td>Nasdaq 100</td><td>20,218.21</td><td>+1.8%</td></tr><tr><td>Dow Jones</td><td>41,683.40</td><td>+1.4%</td></tr><tr><td>S&amp;P 500</td><td>5,707.58</td><td>+1.3%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:10 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rallied 1.4% to $569.13.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 1.4% to $416.94.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rallied 1.8% to $491.78.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 2.2% to $201.78.</li>



<li>The&nbsp;Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) outperformed, up 2.5%; the&nbsp;Health Care&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 0.4%.</li>
</ul>



<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>



Stocks reacting to earnings reports included: 



<ul>
<li>Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>) down 9.5%</li>



<li>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) down 0.6%</li>



<li>Corteva Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTVA#NYSE">CTVA</a>) up 6.2%</li>



<li>Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) up 6.3%</li>



<li>Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) up 1.5%</li>



<li>Atmos Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>) up 0.6%</li>



<li>Fidelity National Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNF#NYSE">FNF</a>) down 7.0%</li>



<li>Western Gas Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>) up 2.9%</li>



<li>Shopify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) down 1.85%</li>



<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) up 4.30%</li>



<li>Canadian Natural Resources Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNQ#NYSE">CNQ</a>) up 4.93%</li>



<li>Cheniere Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNG#NYSE">LNG</a>) up 0.79%</li>



<li>Sempra (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SRE#NYSE">SRE</a>) up 0.83%</li>



<li>Cenovus Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVE#NYSE">CVE</a>) up 8.87%</li>



<li>Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>) up 4.26%</li>



<li>Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>) down 3.44%</li>



<li>Lincoln National Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNC#NYSE">LNC</a>) down 0.60%</li>



<li>PENN Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PENN#NASDAQ">PENN</a>) up 1.64%</li>



<li>Hanesbrands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HBI#NYSE">HBI</a>) up 5.21%</li>



<li>Spectrum Brands Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPB#NYSE">SPB</a>) up 3.81%</li>



<li>Global Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLP#NYSE">GLP</a>) down 2.15%</li>



<li>NCR Voyix Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYX#NYSE">VYX</a>) up 15.14%</li>



<li>Owens &amp; Minor, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>) down 7.16%</li>
</ul>



Stocks slated to report earnings after the close include Akamai Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AKAM#NASDAQ">AKAM</a>), Expedia Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NASDAQ">EXPE</a>), Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), McKesson Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>), and News Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWSA#NASDAQ">NWSA</a>).



Read now: 



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<li><a href="https://www.benzinga.com/politics/25/05/45293839/trump-starmer-strike-us-uk-trade-deal-steel-cars-beef">Trump, Starmer Strike US-UK Trade Deal: Steel, Cars, Beef At Center Of Pact</a></li>
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Wall Street Rallies After US Seals First Trade Deal: 'You Better Go Out And Buy Stock,' Trump Says

Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) analysts highlight strong parks and streaming growth with raised guidance after <a href="https://www.benzinga.com/25/05/45251203/disney-rides-strong-subscriber-growth-and-movie-hits-lifts-forecast-with-1-billion-streaming-goal">first-quarter results. </a>



The Disney Analysts: Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating on Disney with a $140 price target.



Guggenheim analyst Michael Morris maintained a Buy rating and lowered the price target from $130 to $120.



Needham analyst Laura Martin maintained a Buy rating with a $125 price target.



Read Also: <a href="https://www.benzinga.com/general/education/25/05/45262536/disney-expands-to-abu-dhabi-with-new-theme-park-heres-how-the-stock-performs-after-park-openings">Disney Expands To Abu Dhabi With New Theme Park: Here&#8217;s How The Stock Performs After Park Openings</a>



Bank of America on DIS: The media giant had a "resilient" quarter despite macro trends, Ehrlich said in a new investor note.



The analyst said revenue, operating income, earnings per share and free cash flow were all above expectations.



Ehrlich said Disney raising its full-year earnings per share was "encouraging considering recent macro volatility."



"While DIS did not raise FY25 Experiences guidance, future bookings data is strong, with Walt Disney World bookings up 4% in 3Q and 7% in 4Q," Ehrlich said.



The analyst said near-term catalysts include profitability inflection for the direct-to-consumer segment, reacceleration of the Parks business, and a strong film slate that drives the other business segments.



Guggenheim on DIS: Morris also highlighted the "resilience" shown by Disney in key categories despite the macro concerns.



"Broad-based beat coupled with management maintaining and/or raising most FY25 guidance and longer-term EPS growth outlook underpin confidence in our Buy rating," Morris said.



The analyst said that management commentary highlighted strong domestic park bookings over the next two quarters and said advertising revenue will likely come in ahead of previous guidance.



"DTC subscriber trends remain healthy, with management highlighting churn/engagement benefit from Hulu integration within Disney+."



The analyst said Disney&#8217;s long-term strength includes Parks growth and a renewed focus on profitable growth for media and entertainment, while consumer demand uncertainty and linear network decline remain concerns.



Needham on DIS: Raised earnings per share guidance and a newly announced Disney theme park highlighted in the quarter for Martin, who called it a "strong" quarter.



Martin said the launch of ESPN&#8217;s flagship streaming platform in the fourth quarter is another item to look forward to, as there will be an option to bundle it with Hulu and Disney.



"DIS believes that there's nothing like this subscription-driven bundle in the streaming industry. It's unrivaled in terms of quality, in terms of volume, and in terms of variety," Martin said.



The analyst highlighted Disney's DTC segment having its fourth consecutive profitable quarter with the company saying full-year DTC operating profit is expected to be over $1 billion.



"This strong profit growth suggests that Disney+ and Hulu are on track to achieve long-term sustainable profitability."



DIS Price Action: Disney stock was up 3.1% to $105.27 on Thursday, versus a 52-week trading range of $80.10 to $118.63. However, Disney stock is down 5% year-to-date in 2025, while shares have remained nearly flat over the last year.



Read Next: 



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<li><a href="https://www.benzinga.com/general/entertainment/24/12/42750888/top-anticipated-2025-movies-for-big-screen-success-and-stocks-investors-should-watch">Top Anticipated 2025 Movies For Big Screen Success And Stocks Investors Should Watch</a></li>
</ul>



Photo: Jerome LABOUYRIE / Shutterstock.com

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