Cardboard box shipments sank to a decade-low in Q2; International Paper warns of softer U.S. demand as tariff uncertainty keeps firms cautious, echoed by UPS and FedEx.
Warren Buffett's mystery stock purchase has sparked speculation and a frenzy. The only certain clue is that it's not a bank, insurer, or consumer products company.
Shares of global car rental company Hertz (NASDAQ:HTZ)
fell 3.4% in the morning session after ongoing concerns about its financial health and downbeat analyst ratings overshadowed a recent quarterly earnings beat. Even though Hertz recently reported second-quarter earnings that beat expectations, the positive news failed to convince investors of a sustained turnaround. Lingering issues are weighing on the stock, particularly a significant drop in free cash flow, which plummeted to negative $2.7 billion, raising concerns about the company's liquidity. Further adding to the pressure, several analysts maintained a negative outlook. BofA Securities reiterated its "Underperform" rating, citing "macroeconomic uncertainty and signs of travel demand waning." Similarly, Goldman Sachs maintained its "Sell" rating on the stock, believing the longer-term outlook remains challenging despite the recent quarterly performance. With a significant debt load of over $18.4 billion, investors seem to be focusing on these fundamental weaknesses rather than the short-term earnings surprise.
Parcel delivery company UPS (NYSE:UPS) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 2.7% year on year to $21.22 billion. Its non-GAAP profit of $1.55 per share was 1% below analysts’ consensus estimates.
United Parcel Service’s second quarter saw a negative market reaction, as persistent declines in package volumes and mounting cost pressures overshadowed a modest revenue beat. Management pointed to ongoing challenges from shifting trade policies and soft consumer sentiment in the U.S., leading to a 5.7% year-on-year drop in sales volumes. CEO Carol Tome described the environment as “very volatile,” citing both tariff uncertainty and weak manufacturing activity as primary headwinds. Strategic actions, including the deliberate reduction of Amazon-related business and a network reconfiguration, also contributed to higher-than-expected expenses, particularly from slower-than-modeled employee attrition.
The U.S. stock market is experiencing a significant surge, with major indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite nearing or reaching all-time highs. This robust rally is primarily fueled by a potent combination of better-than-expected inflation data, which has rekindled optimism for potential
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Shares of luxury electric car manufacturer Lucid (NASDAQ:LCID) fell 9.7% in the afternoon session after the company reported second-quarter results that missed analyst expectations and lowered its full-year production forecast. The company posted revenue of $259.4 million, which fell roughly in line with analyst estimates. Lucid also cut its 2025 production outlook to a range of 18,000 to 20,000 vehicles, down from a previous target of 20,000. The report revealed a negative gross margin, a figure that included a $54 million hit from tariffs and signaled significant cost pressures.
