The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector. Meta We’re increasing our price target on Meta Platforms (META) to $220 per share, from $195. This new target represents about 18-times 2024 earnings estimates. Over the last two months, analysts have steadily increased their earnings estimates on Meta, and the stock has appreciated alongside those revisions to above our previous target. Since Jan. 31, the day before Meta announced fourth-quarter results , the consensus earnings-per-share (EPS) estimate for 2023 has moved up about 24%, to $10, from $8.08 per share. For 2024, the consensus EPS estimate has risen 2%, to $12.39, from $10.14 a share. The driving forces behind those analyst revisions are the company’s emphasis on improving efficiency through a second round of layoffs , controlling its costs by reducing its 2023 expenses outlook and, most recently, signs of so-called green shoots at its advertising business for its family of applications. That’s a result of the continued monetization of its Reels short-form video offering on Facebook and Instagram, along with the easing of ad-targeting headwinds. The two fundamental ingredients that drive higher stock prices are earnings and the valuation multiple investors are willing to pay for those earnings. Generally, higher earnings are our preference of the two. Sometimes multiple expansion is just a great fool theory. In essence, you are buying a stock because you think someone else will pay more for it in the future. But when earnings are up, it’s because the value of the company is increasing. With estimates pushing higher, we think the rally in META still has more room to run, prompting us to raise our price target. Nvidia We’re increasing our price target on Nvidia (NVDA) to $300 per share, from $240. This new target puts Nvidia’s valuation at a pricey 67-times the consensus EPS estimate for next year. But the chipmaker is uniquely worthy of such a premium because it is the unrivaled leader in accelerated computing and artificial intelligence (AI), which is finally at an inflection point after having what CEO Jensen Huang called its “iPhone moment.” Nvidia has previously said generative AI — which includes applications like OpenAI’s ChatGPT — has a total addressable market of $600 billion split between hardware and software. Indeed, with the channel inventory correction in gaming largely behind Nvidia and new orders for its H100 graphics processing unit (GPU) accelerating to support generative AI, it’s likely that earnings estimates this year are too low. Energy We’re reducing our price targets on Coterra Energy (CTRA), Devon Energy (DVN), and Pioneer Natural Resources (PXD) to reflect the lower prices of both oil and natural gas. For all three names, we are lowering our price targets to the consensus price, according to FactSet. That means reducing Devon Energy to $68 per share from $82, Coterra Energy to $30 per share from $40, and Pioneer to $259 per share from $300. We’re also downgrading Devon to a 3 rating , meaning we’ll look to sell shares into strength — part of a broader move to consolidate our energy holdings and free up space in the portfolio. Our rationale behind keeping Pioneer is its higher dividend yield of 11.8%, compared with Devon’s 7.6% yield. With Coterra, we support its shift to focus on share repurchases over paying out a variable dividend. Favoring buybacks over dividends make more sense to us, with the stock down more than 30% from last year’s high. Bullpen The newest addition to our bullpen is Foot Locker (FL). The sneakers and athletic-wear retailer plays a large role in the $80 billion sneaker market, which has been growing at a mid-single digit clip thanks to three big tailwinds, according to the company. The first is mass casualization, whereby hybrid work and new norms of wearing sneakers with dress clothes have boosted sneaker sales. The second is traditional and new performance sneaker brands becoming fashion statements. And the third tailwind is the rise of sneakers as a vehicle of individual expression. In the 2021 Piper Sandler Spring Teen Survey, 25% of teens identified as a “sneakerhead” or a sneaker enthusiast that is likely to own multiple pairs. But the rising tide of sneakers hasn’t lifted all ships. Foot Locker has struggled over the past few years because it was mostly thought of as a reseller of Nike (NKE), which has shifted gears to double down on its own direct-to-consumer business. Foot Locker has also been a victim of the shift to shopping on ecommerce platforms, given its large presence in malls. Foot Locker needed a change. And in September, the company appointed retail industry veteran Mary Dillon, the former CEO of Ulta Beauty (ULTA), as its new CEO. On Monday, Dillon unveiled Foot Locker’s new “Lace Up” strategy, in conjunction with its fourth-quarter results and Investor Day event, while stopping by “Mad Money” to talk with Jim Cramer. Dillon is hitting the reset button in 2023 in order to put the business on a path towards sustainable growth. To do this, management plans to diversify its brand mix to offer more sneaker choices to become less beholden to Nike; optimize its store footprint by exiting 400 underperforming stores; launch new store concepts; and accelerate investments in technology and its loyalty program. But all these actions will come at a price, with management expecting 2023 earnings to be down 30%. We don’t want to make light of how big this haircut to earnings will be, but as Foot Locker’s growth initiatives and cost savings programs play out, it should quickly return to growth in 2024. And in the years after that, management’s financial targets look very robust. In 2024 through 2026, management expects annual sales growth of 5% to 6%, with comparable sales growth of 3% to 4%, and earnings before interest and taxes (EBIT) margins reaching 8.5% to 9% by the end of 2026. For comparison, EBIT margins are expected to be 5.7% in 2023. After including share buybacks every year, Foot Locker sees its adjusted EPS growing by a low-to-mid-twenties percentage rate annually from 2024 to 2026. For a stock that currently trades at about 11-times earnings, this isn’t growth at a reasonable price, it’s growth at a very cheap price. Of course, a price-to-earnings multiple that low implies some skepticism around Foot Locker’s ability to make good on its goals. Turnarounds are never easy and the company continues to face headwinds from Nike and its traditional mall presence. So it’s now up to Dillon to deliver. But if she can do for Foot Locker what she achieved at Ulta Beauty, Footlocker’s shares can go much higher. And in the interim, the company’s current 4% dividend yield represents a solid payment to hold us over. Morgan Stanley We continue to see great value in the Morgan Stanley (MS) franchise but haven’t added to our position because we already own so much and can’t meaningfully improve our cost basis while the stock is in the $80s-per-share range. We would like to see it go a little lower, with a dividend yield closer to 4%, as we await a resolution to the troubles at First Republic Bank (FRC). Despite the challenges facing regional and community banks, Morgan Stanley should still emerge as a net winner from the ongoing turmoil. Along with other big banks, Morgan Stanley committed $2.5 billion of uninsured deposits to First Republic Bank, in a likely sign that MS saw inflows since the collapse of Silicon Valley Bank two weeks sparked the current uncertainty. Furthermore, Morgan Stanley’s business model is driven by wealth-and-asset-management fees and is less reliant on collecting deposits and issuing loans. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
An employee arranges a sneaker display at a Foot Locker Inc. store inside the South Park Mall in Strongsville, Ohio.
Luke Sharrett | Bloomberg | Getty Images
The Club on Friday is updating five price targets for stocks in the portfolio to reflect recent developments at the companies and broader macroeconomic trends. We’re also adding a new stock to the bullpen, while reiterating our support for Morgan Stanley amid the recent upheaval in the banking sector.
Portable power station specialist EcoFlow is kicking off its third annual Member’s Festival this month and is offering a unique new rewards program to those who become EcoFlow members. The 2025 EcoFlow Member’s Festival will offer savings of up to 65% for its participating customers, and a portion of those funds will be allocated toward rescue power solutions for communities around the globe through the company’s “Power for All” fund.
EcoFlow remains one of the industry leaders in portable power solutions and continues to trek forward in its vision to power a new tech-driven, eco-conscious future. Per its website:
Our mission from day one is to provide smart and eco-friendly energy solutions for individuals, families, and society at large. We are, were, and will continue to be a reliable and trusted energy companion for users around the world.
To achieve such goals, EcoFlow has continued to expand its portfolio of sustainable energy solutions to its community members, including portable power stations, solar generators, and mountable solar panels. While EcoFlow is doing plenty to support its growing customer base, it has expanded its reach by giving back to disaster-affected communities by helping bolster global disaster response efforts the best way it knows how– with portable power solutions.
Source: EcoFlow
EcoFlow and its members look to provide “Power for All”
Since 2023, EcoFlow has collaborated with organizations worldwide as part of its “Power for All” mission. This initiative aims to ensure access to reliable and timely power to disaster-affected communities across the globe, including rescue agencies, affected hospitals, and shelters, to support rescue and recovery efforts.
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This fund most recently provided aid for communities affected by the recent Los Angeles wildfires, assistance to the Special Forces Charitable Trust (SFCT) in North Carolina following severe hurricanes, and support for non-profits engaged in hurricane preparedness in Florida and the Gulf Coast. Per Jodi Burns, CEO of the Special Forces Charitable Trust:
In the wake of devastating storms in Western North Carolina, reliable power was a critical need for the families we serve. Thanks to EcoFlow’s generous donation of generators, we were able to provide immediate relief, ensuring these families and their communities had access to power when they needed it most. We are so impressed with EcoFlow’s commitment to disaster response through their ‘Power for All’ program. It has made a tangible impact, and we are deeply grateful for their support and partnership in helping these families recover and rebuild.
In 2024, the US experienced 27 weather and climate events, each causing losses exceeding $1 billion, marking the second-highest annual total on record, according to National Centers for Environmental Information. The increasing frequency and severity of natural disasters underscore the critical need for reliable and timely power solutions during emergencies, much like EcoFlow and its members are helping provide through the “Power For All” initiative.
To support new and existing EcoFlow members, the company is celebrating its third annual Member’s Festival throughout April to offer a do-not-miss discount on its products and donate a portion of all sales to the “Power for All” fund to provide rescue power to those in need in the future. Learn how it all works below.
Source: EcoFlow
Save big and give back during the 2025 Member’s Festival
As of April 1st, you can now sign up to become an EcoFlow member to participate in the company’s exclusive 2025 Member Festival.
As a member, you can earn “EcoFlow Power Points” by completing tasks like registration, referrals, and product purchases and tracking your individual efforts toward disaster preparedness and recovery.
Beginning April 4, EcoFlow members will also be able to take advantage of exclusive discounts of up to 65% off select portable power stations, including the DELTA Pro Ultra, DELTA Pro 3, DELTA 2 Max, DELTA 3 Plus, RIVER 3 Plus, and more. However, these sale prices only last through April 25, so you’ll want to move quickly!
Click here to learn more about EcoFlow’s “Power for All” campaign. To register for EcoFlow’s 2025 Member Festival in the US, visit the EcoFlow website. To register as a member in Canada, visit here.
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Tesla is losing another top talent: its long-time head of software, David Lau, has reportedly told co-workers that he is exiting the automaker.
Tesla changed how the entire auto industry looks at software.
Before Tesla, it was an afterthought; user interfaces were rudimentary, and you had to go to a dealership to get a software update on your systems.
When Tesla launched the Model S in 2012, it all changed. Your car would get better through software updates like your phone, the large center display was responsive with a UI that actually made sense and was closer to an iPad experience than a car.
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Tesla also integrated its software into its retail experience, service, and manufacturing.
David Lau deserves a lot of the credit for that.
He joined Tesla in 2012 as a senior manager of firmware engineering and quickly rose through the ranks. By 2014, he was promoted to director of firmware engineering and system integration, and in 2017, he became Vice President of software.
Lau listed the responsibilities of his team on his LinkedIn:
Vehicle Software:
Firmware for the powertrain, traction/stability control, HV electronics, battery management, and body control systems
UI software and underlying Embedded Linux platforms
Navigation and routing
iOS and Android Mobile apps
Distributed Systems:
Server-side software and infrastructure that provides telemetry, diagnostics, over-the-air updates, and configuration/lifecycle management
Data engineering and analytics platforms that power technical and business insights for an increasingly diverse set of customers across the company
Diagnostic tools and fleet management, Manufacturing and Automation:
Automation controls (PLC, robot)
Server-side manufacturing execution systems that power all of Tesla’s production operations
Product Security and Red Team for software, services, and systems across Tesla
Bloomberg reported today that Lau told his team he is leaving Tesla. The report didn’t include reasons for his stepping down.
Electrek’s Take
Twelve years at any company is a great run. At Tesla, it’s heroic. Congrats, David, on a great run. You undoubtedly had a significant impact on Tesla and software advancements in the broader auto industry.
He is another significant loss for Tesla, which has been losing a lot of top talent following a big wave of layoffs around this time last year.
I wonder who will take over. Michael Rizkalla, senior director of software engineering and vehicle firmware, is one of the most senior software engineers after Lau. He has been at Tesla for 7 years, and Tesla likes to promote within rather than hire outsiders.
There are also a lot of senior software execs working on AI at Tesla. Musk has been favoring them lately and he could fold Lau’s responsibilities under them.
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Kia’s electric SUVs are taking over. The EV3 is the best-selling retail EV in the UK this year, giving Kia its strongest sales start since it arrived 34 years ago. And it’s not just in the UK. Kia just had its best first quarter globally since it started selling cars in 1962.
Kia EV3 is the best-selling EV in the UK through March
In March, Kia sold a record nearly 20,000 vehicles in the UK, making it the fourth best-selling brand. It was also the second top-seller of electrified vehicles (EVs, PHEVs, and HEVs), accounting for over 55% of sales.
The EV3 remained the best-selling retail EV in the UK last month. Including the EV6, three-row EV9, and Niro EV, electric vehicles represented 21% of Kia’s UK sales in March.
Kia said the EV3 “started with a bang” in January, darting out as the UK’s most popular EV in retail sales. Through March, Kia’s electric SUV has held on to the crown. With the EV3 rolling out, Kia sold over 7,000 electric cars through March, nearly 50% more than in Q1 2024.
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The EV3 was the best-selling retail EV in the UK in the first quarter and the fourth best-selling EV overall, including commercial vehicles.
Kia EV3 Air 91.48 kWh in Frost Blue (Source: Kia UK)
Starting at £33,005 ($42,500), Kia said it’s the “brand’s most affordable EV yet.” It’s available with two battery packs, 58.3 kWh or 81.48 kWh, good for 430 km (270 miles) and 599 km (375 miles) of WLTP range, respectively.
From left to right: Kia EV6, EV3, and EV9 (Source: Kia UK)
With new EVs on the way, this could be just the start. Kia is launching several new EVs in the UK this year, including the EV4 sedan (and hatchback) and EV5 SUV. It also confirmed that the first PV5 electric vans will be delivered to customers by the end of the year.
Electrek’s Take
Globally, Kia sold a record 772,351 vehicles in the first quarter, its best since it started selling cars in 1962. With the new EV4, the brand’s first electric sedan and hatchback, launching this year, Kia looks to build on its momentum in 2025.
Kia has also made it very clear that it wants to be a global leader in the electric van market with its new Platform Beyond Vehicle (PBV) business, starting with the PV5 later this year.
Earlier today, we learned Kia’s midsize electric SUV, the EV5, is the fourth best-selling EV in Australia through March, outselling every BYD vehicle (at least for now). The EV5 is rolling out to new markets this year, including Canada, the UK, South Korea, and Mexico. However, it will not arrive in the US.
For those in the US, there are still a few Kia EVs to look forward to. Kia is launching the EV4 globally, including in the US, later this year. Although no date has been set, Kia confirmed the EV3 is also coming. It’s expected to arrive in mid-2026.
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