From Nasdaq: 2025-06-17 11:06:00

In a recent podcast, analysts discussed macro uncertainty, record unsold housing stock, Chime Financial’s IPO, and earnings from RH and Adobe. They also highlighted Chipotle and Whirlpool as stocks to watch. Malcolm Ethridge shared insights on cybersecurity and Apple’s future.

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Israel’s strike on Iran’s nuclear sites and military leadership has raised concerns about retaliation and implications for the US. The news has led to oil price spikes, a flight to the dollar, and gains for weapons manufacturers. Uncertainty remains amidst trade, geopolitical tensions, and market highs. Chime, a company offering banking services but not a bank, saw its stock rise 37% on its first trading day after its IPO. The housing market sees US home sellers holding $700 billion in listings, up 20% from a year ago. Sellers are hesitant to cut prices, contributing to an affordability issue for buyers. Buyers are advised to stay patient and save for a potential market shift. Big tech earnings and IPOs are also in focus on Motley Fool Money. In the first quarter of 2025, IPO activity in the US saw a significant increase with reports showing a 55-76% rise in deals year over year. Private equity firms are looking to divest holdings, leading to more IPOs. Companies like Stripe and Klarna are on the horizon, with Chime’s valuation dropping to $10-12 billion from $25 billion in 2021.

Chime, a FinTech company, handled $121 billion in transactions before going public with 8.6 million active users. It partners with banks like Bancorp Bank and Stride Bank, primarily making money through card processing fees. While the growth prospects are interesting, investors should exercise patience due to competition from Visa and Mastercard.

RH, a furniture retailer, reported a surprise profit with a 20% stock jump. Despite revenue growing 12% year over year, inventories increased by 26%, which could lead to trouble if not managed properly. CEO Gary Friedman’s commentary on tariffs and the housing market indicates a unique business model with a positive outlook for sales growth. They are responsible for protecting critical infrastructure from cyber threats. With top officials leaving and budget cuts looming, it raises concerns about the agency’s ability to effectively combat cyber threats. This could impact cybersecurity companies and the overall security of critical infrastructure in the US.

Malcolm Ethridge also discussed Apple and why investors may be too pessimistic about its future. Despite concerns about slowing iPhone sales and competition in the tech space, he believes Apple’s ecosystem and focus on services will drive future growth. Ethridge’s insights provide a fresh perspective on the tech giant’s potential for long-term success amidst changing market dynamics. Major cybersecurity companies like Palo Alto Networks, CrowdStrike, and Zscaler are seeing increased demand due to rising cyber threats from state agencies. Federal spending uncertainty may impact these companies, despite potential growth opportunities from artificial intelligence in cybersecurity. Investors should be cautious of companies touting AI security without thorough investigation, as AI is also being used by bad actors in new cyber attacks like zero click attacks. Investors should be cautious when following trends mentioned in earnings calls. Cybersecurity investor Malcolm Ethridge recommends focusing on companies like CrowdStrike and Zscaler for their AI capabilities and flexible models. He advises against ETFs like CIBR, which hold non-cybersecurity tech companies like Broadcom and Cisco, suggesting pure plays like BUG instead.

When investing in ETFs, checking the underlying holdings is crucial. Ethridge prefers direct investments in leading cybersecurity companies due to the changing landscape. He highlights the importance of understanding the ETF’s composition to make informed decisions. Apple’s recent Developer Day focused on user experience, but investors are looking for the company to innovate in the AI space to regain consumer excitement. Apple faces challenges in sparking investor interest in their AI-enabled devices, as seen through stagnant share prices and underwhelming product releases. Despite negative sentiment, some investors, like Ricky Mulvey, remain optimistic and are increasing their positions in the company. Chipotle introduces a new Adobbo ranch dip to their menu, signaling potential growth opportunities under new CEO Scott Boat. Whirlpool faces challenges with increased steel tariffs affecting consumer appliance prices in the US. The US is imposing a new rule that will tax imported home products an additional 50% based on the amount of steel they contain. This will help US manufacturers like Whirlpool compete against foreign-made appliances with cheaper parts and labor, benefiting Whirlpool shareholders.

On a financial radio show, a mistake was made about Whirlpool being a hot tub company, but it actually makes important home appliances. With an 8% dividend yield, it could be a good bet for investors. Chipotle and Rupple are also mentioned as potential investments on the show.

Key figures in the financial industry, including John Mackey and Suzanne Frey, are involved with companies mentioned on the show. The Motley Fool has positions in various tech, food, and home appliance companies, recommending certain options for investors. The views and opinions expressed in the show do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: Motley Fool Analysts Check In on Chime Financial, RH, Adobe, and More