Finance & Banking

Marriott’s Declining US Government Demand Leading to ‘Softer’ Growth

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Key Takeaways

Marriott Worldwide CFO Leeny Oberg mentioned on the resort chain’s first-quarter earnings name Tuesday that the corporate expects a “continuation of declines” in U.S. authorities bookings.
Marriott lowered its full-year worldwide income per accessible room, or RevPAR, development forecast to a variety of 1.5% to three.5% from the prior 2% to 4%.
Rivals Hyatt Resorts and Hilton Worldwide Holdings additionally lowered their full-year RevPAR development forecasts in latest days.

Marriott Worldwide (MAR) CFO Leeny Oberg mentioned on the resort chain’s first-quarter earnings name Tuesday that the corporate expects a “continuation of declines” in U.S. authorities bookings.

Marriott on Tuesday reported first-quarter adjusted earnings per share of $2.32 on revenue of $6.26 billion. Analysts polled by Seen Alpha anticipated $2.25 and $6.22 billion, respectively. It additionally posted comparable systemwide income per accessible room, or RevPAR, development of 4.1% worldwide, above the consensus projection of three.0%.

Nonetheless, Marriott lowered its full-year worldwide RevPAR development forecast to a variety of 1.5% to three.5% from the prior 2% to 4%. The brand new outlook “incorporates considerably softer expectations within the U.S. & Canada area,” Marriott mentioned.

‘Continuation of Declines in US Authorities Demand’

On Marriott’s earnings name with analysts, Oberg mentioned the lowered RevPAR development forecast “is primarily on account of an anticipated continuation of declines in U.S. authorities demand,” in line with a transcript offered by AlphaSense. In 2024, Oberg mentioned, “the U.S. Authorities phase contributed round 4% of the U.S. and Canada area’s room nights,” and March introduced “a ten% year-over-year decline in US authorities RevPAR” amid broad federal layoffs.

Rivals Hyatt Resorts (H) and Hilton Worldwide Holdings (HLT) additionally lowered their full-year RevPAR development forecasts in latest days.

Marriott shares had been up 1.6% in latest buying and selling however are down about 10% for the 12 months.

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Finance & Banking

Why Morgan Stanley Raised Its Price Target for Dell Ahead of Earnings Next Week

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Key Takeaways

Dell Applied sciences is “gaining momentum” with its AI server enterprise, Morgan Stanley mentioned.
The financial institution considerably raised its worth goal for Dell inventory with the corporate’s quarterly earnings outcomes due subsequent week.
Morgan Stanley’s new goal is roughly in-line with the analyst consensus, in accordance with Seen Alpha.

Dell Applied sciences’ (DELL) synthetic intelligence server enterprise is “gaining momentum,” Morgan Stanley instructed purchasers Tuesday.

The financial institution raised its worth goal for Dell inventory to $126 from $89, a greater than 40% improve, with the tech agency’s earnings due out subsequent Thursday. The revision brings Morgan Stanley extra in keeping with the analyst consensus of $131, which is tracked by Seen Alpha.

Shares of Dell rose 1% to above $115 in latest buying and selling Wednesday, giving Morgan Stanley’s goal 9% upside.

“DELL’s AI server enterprise is gaining momentum,” Morgan Stanley mentioned. The corporate might see almost $20 billion in AI server income this yr, the analysts added, amid an AI infrastructure market that has swelled to extra $150 billion. In the meantime, common server demand “stays steady” with Dell choosing up market share.

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Finance & Banking

Bitcoin Hits New All-Time High Above $109,000

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The worth of bitcoin (BTCUSD) surged to a brand new report excessive Wednesday because the digital foreign money prolonged a rally fueled by renewed investor threat urge for food and optimism a few favorable regulatory backdrop.

Bitcoin jumped to just about $109,500 this morning, surpassing its earlier excessive of round $109,300 set in January and up from an in a single day low of slightly below $106,000.

The digital foreign money had slumped in April to round $76,000 as buyers fled dangerous belongings reminiscent of cryptocurrencies and shares amid issues about tariffs and their potential influence on the financial outlook. Considerations about world commerce tensions have subsided, not less than for now, whereas buyers stay hopeful that the Trump administration and crypto-supportive lawmakers will implement insurance policies that profit the asset class.

Shares of crypto-related companies—together with main bitcoin purchaser Technique (MSTR), crypto alternate Coinbase International (COIN), and bitcoin miners MARA Holdings (MARA) and Riot Platforms (RIOT)—all have been larger round noon.

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Finance & Banking

FAA Limiting Flights at Newark Airport to Ease Massive Congestion

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Key Takeaways

Federal officers put a cap on flights out and in of New Jersey’s Newark Liberty Worldwide Airport in an effort to ease main flight delays and cancellations which have plagued the airport for weeks.
The brand new guidelines restrict the overall of departing and arriving flights to 56 an hour, whereas runway development is underway. That will increase to 68 an hour as soon as the work is finished.
United Airways, which has a serious hub at Newark Liberty, already cancelled a number of day by day flights earlier this month.

After weeks of large flight delays and cancellations at Newark Liberty Worldwide Airport attributable to runway development, air visitors controller shortages, and tools failures, the Federal Aviation Administration (FAA) has introduced a plan geared toward easing the congestion there.

Officers are lowering the overall variety of outbound and inbound flights throughout the runway undertaking to 56 an hour (28 out and in). As soon as the work is accomplished, now scheduled for June 15, that quantity will increase to 68 an hour (34 out and in).

Appearing FAA Administrator Chris Rocheleau stated the purpose was to “relieve the substantial inconvenience to the touring public” attributable to the problems, “which enlarge as they unfold by the Nationwide Airspace System.”

The FAA famous that the plan was discussed with executives from the airways in a gathering final week.

One of many carriers most impacted is United Airways (UAL), which makes use of Newark Liberty as a serious hub. At first of the month, CEO Scott Kirby wrote to prospects, advising them that the airline can be unilaterally canceling 35 flights a day. He additionally referred to as on Transportation Secretary Sean Duffy and the FAA to designate Newark Liberty as a so-called “slot managed” airport.