iShares Broad USD Investment Grade Corporate Bond ETF (NASDAQ: USIG)

Latest news for iShares Broad USD Investment Grade Corporate Bond ETF (NASDAQ:USIG)

iShares Broad USD Investment Grade Corporate Bond ETF

The Fund seeks to track the investment results of the ICE BofA US Corporate Index (the Underlying Index), which measures the performance of investment-grade corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and publicly issued in the U.S. domestic market. As of February 28, 2023, there were 9,831 issues in the Underlying Index. As of February 28, 2023, a significant portion of the Underlying Index is represented by securities of companies in the financials industry or sector. The components of the Underlying Index are likely to change over time.

Analyst Color

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SPSB

USIG

WFIG

3 Corporate Bond ETFs For Fed Debt Buying

Qualcomm (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) has outperformed the market over the past 5 years by 3.78% on an annualized basis producing an average annual return of 18.29%. Currently, Qualcomm has a market capitalization of $187.91 billion. 
Buying $100 In QCOM: If an investor had bought $100 of QCOM stock 5 years ago, it would be worth $220.99 today based on a price of $168.68 for QCOM at the time of writing.
<h3>Qualcomm's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727890357_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

News

QCOM

$100 Invested In This Stock 5 Years Ago Would Be Worth $200 Today

Williams Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>) has outperformed the market over the past 5 years by 1.0% on an annualized basis producing an average annual return of 15.5%. Currently, Williams Companies has a market capitalization of $57.41 billion. 
Buying $1000 In WMB: If an investor had bought $1000 of WMB stock 5 years ago, it would be worth $2,005.96 today based on a price of $47.10 for WMB at the time of writing.
<h3>Williams Companies's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727890352_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have $2,000 Today

LPL Financial Holdings (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lpla#NASDAQ">LPLA</a>), along with its subsidiaries LPL Financial LLC, has completed the acquisition of Altria Wealth Solutions, Inc. (&quot;Altria&quot;). Further, the company announced a change in its leadership with the termination of its existing president and chief executive officer&nbsp;and the appointment of a new CEO.
<h2>Details of Acquisition Pursued by LPLA</h2>
Atria Wealth Solutions, Inc., based in New York, boasts a network of almost 2,400 advisors and serves around 150 banks and credit unions, managing an impressive $100 billion in brokerage and advisory assets. Notably, brokerage accounts comprise nearly 80% of the firm&#39;s assets, with the rest in advisory holdings.
Per the acquisition announcement dated Feb. 13, 2024, LPLA expected onboarding and integration costs to be between $300 million and $350 million. Despite these expenses, the long-term financial projections are promising, with LPLA anticipating additional earnings of $140 million annually from the deal.
LPL Financial expects to meet or exceed its retention target of 80%. Altria will function as a wholly owned portfolio company through the onboarding of Altria advisors, which is anticipated to be completed in mid-2025.
The acquisition aligns with LPL Financial&#39;s goal to empower independent financial advisors and institutions nationwide by providing them with comprehensive support and resources. The acquisition of Atria Wealth Solutions builds upon LPL Financial&#39;s previous successful ventures, including the acquisition of National Planning Holdings and Waddell &amp; Reed in 2017 and 2021, respectively.
Further, LPLA considers acquisitions a core part of its business expansion strategy. In May, the company acquired Crown Capital, while in September, it agreed to acquire The Investment Center, Inc., reinforcing its strategy of expanding its advisor network and enhancing offerings.
<h2>LPL Financial Leadership Change</h2>
LPLA&#39;s board of directors terminated the company&#39;s president and chief executive officer, Dan H. Arnold for violation of the company&#39;s commitment to a respectful workplace. He has submitted his resignation from the board as well.
The dismissal is based on the cause recommended by a special committee of directors following an investigation by an external law firm, which concluded that Arnold had made statements to employees that breached LPLA&#39;s code of conduct.
The board has appointed Rich Steinmeier (presently the company&#39;s managing director and chief growth officer) as interim CEO, effective immediately.
James Putnam, chair of the board of directors at LPL Financial, stated, &quot;LPL&#39;s Code of Conduct requires every employee, no matter their title, to foster a supportive and professional workplace and show respect to each other, our stakeholders and the broader community, Mr. Arnold failed to meet these obligations.&quot;
<h2>LPL Financial&#39;s Zacks Rank &amp; Price Performance</h2>
Year to date, shares of LPL Financial have risen 1% compared with the industry&#39;s growth of 17.7%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/4d/79979.jpg?v=1650055316" />
Image Source: Zacks Investment Research
Currently, LPLA carries a Zacks Rank #3 (Hold).
<h2>Merger &amp; Acquisition Deal Pursued by Other Finance Firms</h2>
This week, Byline Bancorp, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/by#NYSE">BY</a>) entered into a cash and stock merger deal worth $41 million with First Security Bancorp, Inc. in an effort to strengthen its position in Chicago.
The merger is expected to solidify Byline&#39;s position as Chicago&#39;s largest community bank, with assets under $10 billion, loans of $7.3 billion and deposits worth $7.8 billion, along with 45 branches across the greater Chicago metropolitan area.
Last week, TowneBank (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/town#NASDAQ">TOWN</a>) agreed to acquire Village Bank and Trust Financial Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vbfc#NASDAQ">VBFC</a>). The all-cash transaction is valued at $120 million.
The deal is anticipated to be roughly 6% accretive to TOWN&#39;s 2025 earnings per share, assuming the execution of cost savings on a GAAP basis. Further, TOWN projects a roughly 1% improvement in common equity tier 1 capital and an 80-basis points improvement in efficiency ratio next year.
<a href="https://www.zacks.com/stock/news/2344611/lpl-financial-acquires-altria-wealth-solutions-appoints-new-ceo?cid=CS-BENZ-FT-analyst_blog|company_news_finance_sector-2344611">To read this article on Zacks.com click here.</a>

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Analyst Ratings

LPLA

TOWN

VBFC

LPL Financial Acquires Altria Wealth Solutions, Appoints New CEO

BTIG analyst Mark Massaro maintains Adaptive Biotechnologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADPT#NASDAQ">ADPT</a>) with a Buy and raises the price target from $7 to $8.

Price Target

ADPT

BTIG Maintains Buy on Adaptive Biotechnologies, Raises Price Target to $8

WIIM

MTRN

Materion shares are trading lower. Seaport Global cut its price target on the stock from $150 to $135.

Orchid Island Cap's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORC#NYSE">ORC</a>) short percent of float has fallen 12.94% since its last report. The company recently reported that it has 3.48 million shares sold short, which is 4.71% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.09 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Orchid Island Cap Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727890224_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Orchid Island Cap has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Orchid Island Cap's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Orchid Island Cap's peer group average for short interest as a percentage of float is 7.14%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About Orchid Island Cap?

Futu Hldgs's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUTU#NYSE">FUTU</a>) short percent of float has risen 3.6% since its last report. The company recently reported that it has 4.31 million shares sold short, which is 4.32% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.18 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Futu Hldgs Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727890219_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Futu Hldgs has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Futu Hldgs's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Futu Hldgs's peer group average for short interest as a percentage of float is 3.28%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

FUTU

How Is The Market Feeling About Futu Hldgs?

Mizuho analyst Paul Fremont maintains Eversource Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ES#NYSE">ES</a>) with a Outperform and raises the price target from $62 to $73.

Mizuho Maintains Outperform on Eversource Energy, Raises Price Target to $73

Encompass Health's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EHC#NYSE">EHC</a>) short percent of float has fallen 9.03% since its last report. The company recently reported that it has 1.16 million shares sold short, which is 1.31% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.81 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Encompass Health Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727890214_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Encompass Health has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Encompass Health's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Encompass Health's peer group average for short interest as a percentage of float is 3.94%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into Encompass Health's Recent Short Interest

<a href="https://www.theinformation.com/briefings/openai-employees-may-get-to-sell-shares-after-6-6-billion-round-says-cfo" title="https://www.theinformation.com/briefings/openai-employees-may-get-to-sell-shares-after-6-6-billion-round-says-cfo">https://www.theinformation.com/briefings/openai-employees-may-get-to-sell-shares-after-6-6-billion-round-says-cfo</a>

MSFT

NVDA

'OpenAI Employees May Get to Sell Shares After $6.6B Round, Says CFO' - The Information

Sen. Ron Wyden (D-OR) made headlines a week ago after <a href="https://www.benzinga.com/markets/cannabis/24/09/41069354/synthetic-cannabinoids-could-be-federally-banned-under-new-senate-bill-to-regulate-hemp-derived-">introducing</a> the Cannabinoid Safety and Regulation Act (CSRA), a measure that seeks to set up a federal framework for regulating hemp-derived cannabinoids like <a href="https://www.benzinga.com/topic/CBD">CBD</a> and <a href="https://www.benzinga.com/markets/cannabis/24/01/36584043/real-weed-or-a-lab-high-delta-8-and-delta-9-thc-explained">Delta-8 THC</a>.
On Wednesday, ONE HEMP hailed Congressional action toward the regulation of CBD as a dietary supplement, calling the move "long overdue."
The coalition of industry leaders was committed to advancing regulatory standards for hemp-derived cannabinoid (CBD) products for years.
&#8220;ONE HEMP has been deeply committed to a bipartisan legislative process and has worked closely with Congressional leaders on both sides of the political aisle to provide scientific and market expertise," said Kelly D. Fair, ONE HEMP counsel and partner at Dentons US. &#8220;The Wyden bill marks the beginning of a process that will ultimately lead to an approach that will promote a vibrant CBD industry and ensure access for millions of consumers to the highest quality and safest CBD products.&#8221; 
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/events/cannabis-conference/"><img loading="lazy" decoding="async" width="970" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/02104055/ccc-oct-24-banner__1_-1-2.gif" alt="" class="wp-image-576699" /></a></figure>
ONE HEMP added the legislative effort is a result of collaborative work between industry leaders, highlighting Charlotte&#8217;s Web's (TSX:<a class="ticker" href="https://www.benzinga.com/stock/CWEB#TSX">CWEB</a>) (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/CWBHF#OTCQX">CWBHF</a>) participation. The medical cannabis pioneer has been at the forefront of advancing FDA-level regulatory standards for more than a decade, the organization said.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/07/39820619/strategy-shift-in-the-works-are-cannabis-giants-getting-into-the-hemp-derived-thc-market">Strategy Shift In The Works? Are Cannabis Giants Getting Into The Hemp Derived-THC Market?</a>
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<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.</li>
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Bill Morachnick, CEO of Charlotte&#8217;s Web, praised the legislative milestone, calling the CSRA "a critical step for the CBD industry."
&#8220;Charlotte&#8217;s Web is proud to be joined together with other CBD industry leaders as part of ONE HEMP to provide the support Congress needs to ensure the best possible path forward for our industry, and, more importantly, the millions of consumers who rely on our products,&#8221; Morachnick added.
The company, which has been at the forefront of CBD <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4262186-1&amp;h=3519445035&amp;u=https%3A%2F%2Fwww.charlottesweb.com%2Fall-charlottes-web-hemp-cbd-supplements&amp;a=hemp+extract+wellness+products">hemp extract wellness products</a> space for years, expressed strong opposition to the new regulations in California that restrict the sale of many ingestible full-spectrum hemp CBD products that meet federal requirements.
Morachnick said Governor <a href="https://www.benzinga.com/topic/gavin-newsom">Gavin Newsom</a>‘s <a href="https://www.benzinga.com/markets/cannabis/24/09/41012794/gov-newsoms-hemp-ban-goes-into-effect-consequences-for-industry-investors-patients">emergency ban</a> on all hemp-derived THC products in the Golden State, which recently went into effect is &#8220;overreaching and unnecessarily restrict access to safe, non-intoxicating hemp products."
He is not against the regulation of synthetic and intoxicating products though. ONE HEMP is of the same stance.
"This Congressional step [CSRA] comes at a critical time, as the vacuum of federal regulation in the wake of the 2018 Farm Bill has been filled by intoxicating hemp-derived synthetic cannabinoid products being presented to consumers in the market as CBD, leading states to act – and often unduly capturing non-intoxicating CBD products," the coalition said in a press release.
Read Next:
<a href="https://www.benzinga.com/markets/cannabis/24/09/40906131/this-is-life-or-death-families-of-disabled-children-panic-over-gov-newsoms-hemp-cbd-ban-and-eval">‘This Is Life Or Death': Families Of Disabled Children Panic Over Gov. Newsom's Hemp CBD Ban And Evaluate Lawsuit</a>

Cannabis

Government

Regulations

Politics

CWBHF

CWEB

TSX:CWEB

Congressional Bill Is Game-Changer For CBD Regulation, It's 'Long Overdue,' Says Hemp Coalition

Macro Economic Events

Economics

OPEC Says, Regarding WSJ Report About Saudi Saying Oil May Drop To $50 If OPEC+ Flouts Output Curbs, It Refutes Story's Claims As 'Wholly Inaccurate And Misleading'

Summit Midstream shares are trading higher. The company announced it will acquire Tall Oak Midstream Operating, LLC and its subsidiaries from an affiliate of Tailwater Capital for $155 million in cash plus common stock.

Alliance Global Partners analyst Brian Kinstlinger maintains LiveOne (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LVO#NASDAQ">LVO</a>) with a Buy and lowers the price target from $3.5 to $1.5.

Alliance Global Partners Maintains Buy on LiveOne, Lowers Price Target to $1.5

Mizuho analyst Gabriel Moreen maintains USA Compression Partners (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USAC#NYSE">USAC</a>) with a Neutral and lowers the price target from $25 to $24.

USAC

Mizuho Maintains Neutral on USA Compression Partners, Lowers Price Target to $24

Macquarie analyst Paul Golding maintains Vail Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) with a Neutral and maintains $180 price target.

Macquarie Maintains Neutral on Vail Resorts, Maintains $180 Price Target

Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) shares are trading higher on Wednesday after the company announced it authorized a $1 billion share <a href="https://www.benzinga.com//node/41144935">repurchase program</a>.
The Details: The share repurchase program will start in the 2025 fiscal year and continue through the end of the 2027 fiscal year.
&#8220;Our new share repurchase program reflects the confidence we have in the ongoing strength of our business, cash generation, and operating results. It also highlights the competitive advantage we enjoy with our robust balance sheet,&#8221; Ciena&#8217;s CFO James E. Moylan said.
&#8220;This step demonstrates our continued priority to return capital to shareholders as part of our strategic and operating plans.&#8221;
This comes as the company concludes its current three-year share repurchase program.
How To Buy Ciena Shares
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in Ciena (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>)'s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Related Link: <a href="https://www.benzinga.com/news/24/10/41129365/what-happened-with-rivian-stock-today">What Happened With Rivian Stock Today?</a>
CIEN Price Action: At the time of publication, Ciena stock is trading 6.6% higher at $65.48, according to data from <a href="https://www.benzinga.com/pro/">Benzinga Pro</a>.
Image: Photo via Shutterstock

Movers

CIEN

What's Going On With Ciena Stock Wednesday?

MicroStrategy (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mstr#NASDAQ">MSTR</a>) has become one way many investors have found to get into Bitcoin&nbsp;(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>). Looking at the returns of the two over the past three years, investing in MicroStrategy has been far superior to investing in Bitcoin. The total return over that time for each has been 177% versus 51%, respectively. But why is that the case?
Based on&nbsp;the reports of new Bitcoin purchases, the value of the company&#39;s Bitcoin is around $16 billion today. However, the technology company&#39;s market capitalization is $34 billion. Somewhere in MicroStrategy, investors see an extra $18 billion in value over just its cryptocurrency. So, where does this extra value come from?
<h2>Breaking Down MicroStrategy&#39;s Lesser-Known Business: Software</h2>
Looking at MicroStrategy, there are two big parts of its business: bitcoin purchases and its software. The software business is based on its MicroStrategy ONE data analytics software. It offers business intelligence tools, allowing users to take advantage of machine learning and create custom analytics. Looking at this part of the business, revenues are declining.
From Q1 2023 to Q2 2024, revenue went from $122 million to $111 million, a drop of 9%. The business is unprofitable as well, and that unprofitability is getting worse. In Q1 2023, the software business&#39;s net loss was half a million dollars.
In Q2 2024, that loss has increased exponentially to nearly $19 million. These numbers are on a non-adjusted basis. On an adjusted basis, the business has been profitable over those periods. However, it still only brought in $2 million in adjusted net income last quarter.
Still, no matter how you slice it, the software business is making little to no money. The argument could be made that the business is poised to grow, so the fact that it isn&#39;t making money now doesn&#39;t mean it won&#39;t in the future. The software business&#39;s subscriptions and services revenue did grow by 21% last quarter.
However, over half of the software business revenue comes from the support it provides; so, revenue still fell by 7%. But its subscription billings, an indicator of future revenue, increased by 45%. These increases breathe some life into the argument that the software business could see higher revenue in the future.
But, with only $2 million in adjusted net income last quarter, it&#39;s hard to say that the software business is worth $16 billion, even with future revenue in mind.
<h2>MicroStrategy&#39;s Main Value Proposition: A Leveraged Bitcoin Investment</h2>
The other big value add that MicroStrategy emphasizes, and many have come to know it for, is its ability to issue extremely low-cost debt to buy Bitcoin. Through issuing mostly convertible bonds, the company has over $3.8 billion in debt with an average interest rate of 1.6%.
This is far lower than any individual would be able to borrow funds at, with the effective Fed Funds Rate at nearly 5%. The company recently announced it completed another offering of $1 billion convertible bonds. This will bring the company&#39;s average interest rate down to 1.4%. By investing in MicroStrategy, investors can get leveraged investments in Bitcoin at a far lower rate than they otherwise could.
This is why many who believe in Bitcoin are putting a significant premium on MicroStrategy over Bitcoin itself. However, because convertible debt could be converted into equity, there is a potential for shareholder dilution. This would eliminate significant value from the low-cost debt strategy, especially since nearly 90% of the company&#39;s debt is convertible.
<h2>MicroStrategy&#39;s Bitcoin Acquisition Is Adding Value, but Is It Enough at This Price?</h2>
The company&nbsp;addresses this idea using its&nbsp;BTC Yield measurement. After accounting for possible dilution, this shows the added value of investing in MicroStrategy over Bitcoin. It achieved a positive BTC Yield of 12% in 2024 and expects it to be between 4% and 8% over the next three years. This shows that the strategy is adding value. However, is it adding enough value to justify the company&#39;s $16 billion valuation over its Bitcoin holdings?
To me, the company&#39;s valuation is over double the value of its Bitcoin, while it only provides a 4% to 8% yield compared to paying for Bitcoin itself.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/microstrategys-returns-are-3x-higher-than-bitcoin-time-to-buy/">MicroStrategy&#39;s Returns Are 3X Higher Than Bitcoin: Time to Buy?</a>&quot; first appeared on MarketBeat.

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Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) shares are trading lower Wednesday on the heels of the company&#8217;s first-quarter <a href="https://www.benzinga.com/news/earnings/24/10/41129610/nike-q1-earnings-revenue-miss-eps-beat-teams-energized-amid-ceo-transition-a-comeback-at-this-scale">financial results</a>. Multiple analysts lowered price targets on the stock <a href="https://www.benzinga.com/news/earnings/24/10/41129610/nike-q1-earnings-revenue-miss-eps-beat-teams-energized-amid-ceo-transition-a-comeback-at-this-scale">following the print.</a>
What Happened: Nike missed revenue <a href="https://www.benzinga.com/calendars/earnings">estimates</a> of $11.65 billion, turning in first-quarter revenue of $11.59 billion, but the athletic footwear and apparel&nbsp;company&nbsp;beat on the bottom line, reporting first-quarter earnings of 70 cents per share versus estimates of 52 cents per share.
Total revenues were down 10% year-over-year as North America sales fell 11%, Greater China sales fell 4%, European sales fell 13% and Asia Pacific and Latin American sales fell 7%.&nbsp;Nike Direct revenues were down 13%, Nike Brand revenues were down 10% and Wholesale revenues were down 8%.
"NIKE's&nbsp;first quarter&nbsp;results largely met our expectations. A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation," said&nbsp;Matthew Friend, executive vice president and CFO of Nike. "Our teams are energized as Elliott Hill returns to lead NIKE's next stage of growth."
Nike withdrew its full-year guidance and positioned its Investor Day amid the CEO transition. Hill, a longtime Nike veteran, is set to take over for exiting CEO&nbsp;John Donahoe&nbsp;on Oct. 14.&nbsp;
On the conference call following earnings, Friend said the company has tempered its revenue expectations for the full year, citing traffic trends on Nike Digital and retail sales trends, per <a href="https://www.cnbc.com/2024/10/01/nike-nke-earnings-q1-2025.html">CNBC</a>. Nike now expects second-quarter revenue to be down 8% to 10% and gross margin to fall versus last year.
"We continue to see indications of slight second-half improvement in revenue trends versus our first half. As we plan to introduce and scale newness and innovation across the marketplace, we now expect gross margins to decline versus the prior year,&#8221; Friend said on the call.
Don&#8217;t Miss: <a href="https://www.benzinga.com/news/24/10/41141444/tesla-stock-plunges-3-despite-q3-deliveries-exceeding-consensus-and-growing-year-over-year">Tesla Stock Plunges 3% Despite Q3 Deliveries Exceeding Consensus And Growing Year-Over-Year</a>
Following the company&#8217;s quarterly results, multiple analysts adjusted price targets on the stock.
<ul>
<li>BofA Securities analyst Lorraine Hutchinson maintained Nike with a <a href="https://www.benzinga.com/analyst-stock-ratings">Buy</a> and lowered the price target from&nbsp;$104&nbsp;to&nbsp;$100.</li>
</ul>
<ul>
<li>Truist Securities analyst Joseph Civello maintained Nike with a Hold and lowered the price target from&nbsp;$85&nbsp;to&nbsp;$83.</li>
</ul>
<ul>
<li>UBS analyst Jay Sole maintained Nike with a Neutral and raised the price target from&nbsp;$78&nbsp;to&nbsp;$82.</li>
</ul>
<ul>
<li>Evercore ISI Group analyst Michael Binetti maintained Nike with an Outperform and lowered the price target from&nbsp;$110&nbsp;to&nbsp;$105.</li>
</ul>
<ul>
<li>RBC Capital analyst Piral Dadhania maintains Nike with a Sector Perform and lowered the price target from&nbsp;$85&nbsp;to&nbsp;$82.</li>
</ul>
NKE Price Action:&nbsp;<a href="http://benzinga.com/quote/nke" target="_blank" rel="noreferrer noopener">Nike shares&nbsp;</a>were down 6.48% at $83.35 at the time of publication Wednesday, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Photo: Shutterstock.

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