Business
Following An Early Results Leak, ASML’s Share Plummets To 15.7%, The Worst Since The IPO.
(VOR News) – The shares of ASML experienced a 15.7% decline on Tuesday, the largest since the chipmaker went public in 2002, as a consequence of the publication of an early results report that disclosed a reduced sales estimate for 2025.
A Dutch manufacturer of semiconductor equipment, ASML, experienced a decline in its share price on Tuesday due to an error that caused the company’s earnings for the third quarter to be announced earlier than anticipated.
As of the close of trading in Amsterdam, ASML Holding shares had experienced a 15.7% decline, the most significant one-day decline since the company’s IPO in January 2002.
This decline coincided with the start of ASML’s trading.
In an early publication of the results report for the third quarter of ASML’s fiscal year, the company disclosed a decrease in its 2025 revenue estimate. Consequently, investors became apprehensive, which led to a more extensive sell-off in the semiconductor sector.
The recovery is anticipated to be delayed, and consumers are anticipated to exercise caution as part of the revised prediction for the year 2025.
The foremost European chipmaker organization has decreased its forecast for 2025 net sales to a range of thirty to thirty-five billion euros. The previous recommendation that was provided during the company’s 2022 Investor Day was between thirty and forty billion euros. This indicates a decrease from the original quantity due to its lower value.
Investors were alarmed by this more cautious approach, which was primarily precipitated by delays in the demand for extreme ultraviolet lithography (EUV). This led to market shockwaves.
The situation is the consequence of a combination of industry variables that have contributed to ASML’s reduced estimate of predicted net sales in 2025.
Despite the fact that artificial intelligence (AI) is still undergoing substantial advancements and has the potential for further development, other industry sectors are rebounding at a sluggish pace, according to Christophe Fouquet, President and Chief Executive Officer of ASML.
The individual who was speaking emphasized that the recovery of logic chips has been delayed, and the demand for EUV equipment has been delayed as a result of restricted capacity expansions in the manufacturing of memory chips.
The development of EUV equipment is a substantial area of expansion for the company.
Electrification, artificial intelligence, and energy transition are among the long-term development drivers that ASML is enthusiastic about. Fouquet underscored the ongoing strength of these trends. ASML is optimistic about the influence of these growth drivers.
The most optimistic projections for the year 2024’s sales and profits were found in the third quarter’s finest earnings.
Net sales of €7.5 billion and profits of €2.1 billion support ASML’s third quarter 2024 performance.
The gross margin for this period is 50.8%. In general, the results were consistent with projections, which indicated that analysts had expected the third quarter to generate 7.12 billion euros in revenue.
ASML anticipates that its gross margin will decrease by 49% to 50% in the fourth quarter of 2024, and its net sales will decrease by 8.8 billion to 9.2 billion euros. The company reiterated its intention to generate revenues of approximately 28 billion euros for the entire year of 2024 when questioned about its objectives.
The company also implemented modifications to the dividend and share buyback program that ASML has been implementing. It is anticipated that an interim dividend of €1.52 per common share will be distributed on November 7, 2024, in accordance with the firm’s announcement.
However, no shares were repurchased as part of the ongoing share buyback program that spans from 2022 to 2025 during the third quarter.
The value of semiconductor securities plummeted rapidly.
The stock prices of numerous chipmaker businesses experienced substantial declines on Tuesday. NVIDIA Corporation’s shares experienced a more than five percent decline during trading in New York, while Arm Holdings plc’s shares experienced a more than seven percent decline. The precipitous decline at ASML had an impact on a number of other semiconductor companies.
The tech-heavy Nasdaq 100 index experienced a decline of over one percent as a consequence of the sell-off, while the broader semiconductor sector, which is monitored by the iShares Semiconductor ETF, experienced a decline of over four percent.
SOURCE: EN
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Business
Sonic the Hedgehog Dominates Christmas Wish Lists
Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.
Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.
Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.
Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.
Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.
Retailers who tap into this trend are sure to see strong holiday sales.
Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.
Sonic the Hedgehog 4
Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.
The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.
The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.
On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.
The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.
They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.
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Business
Amazon Strike Called By Teamsters Union 10,000 Walkout
An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.
The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.
According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.
The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.
It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.
Amazon Strike at 10 Locations
Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.
The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.
The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.
Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.
Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.
Stalled Contract Negotiations
Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.
However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.
Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.
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Business
Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.
(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.
The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.
The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”
The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.
Amazon has refused to acknowledge the union for many years.
The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.
Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.
Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.
“Amazon workers are exercising their power,” Randy Korgan stated to NPR.
“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.
Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.
The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.
Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.
The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.
Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.
Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.
Teamsters organize Amazon delivery couriers and other employees.
In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.
The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.
In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.
“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”
The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.
SOURCE: NPR
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