Finance

Finance experts share tips for federal student loan borrowers

Published

1 year ago

October 10, 2023

Finance experts share tips for federal student loan borrowers

TOPEKA, Kan. (WIBW) – With student loan repayments back on the table financial experts say it’s time to start learning your options.

“A lot of people are disappointed that after a 3-year hiatus the loan payments are going to be picked back up on 28 billion borrowers for their student loans and for a lot of these people they thought the debt was just going to go away. It was a major platform for the Biden administration and it got this close to happening before the Supreme Court said that Biden didn’t have the authority to do so,” says Personal Finance Expert, Bill Dendy.

Some borrowers have a 12-month grace period starting in October.

Experts say you can and should still make those payments, if possible.

“Some people are going to find that they don’t have to pick up their payments because they qualify for the save program they can continue to defer their payments. Others who make more money that’s great and we have the ability to pay it well let’s see if we can drive the interest rates lower by doing the online payment programs,” says Dendy.

You should also research different payment plans and options you may qualify for.

“The nice thing is we have always had programs which would allow those that go into public service to have their debt erased after 10 years. well, the 3 years we’ve already been in deferment plus any time you might spend in the safe programs count towards those 10 years so some people are going to have an ability to still defer making these payments,” says Dendy.

Even if you are not in debt now experts say you could still be affected in the future.

“Overall student loan debt is at $1.7 trillion. There are economists saying we have so much debt outstanding and people who are concerned that they can’t pay the debt and this may lead us into that recession. So we should care even if we don’t have the debt about what those around us are suffering,” says Dendy.

For more tips on paying student loan debt click here.

Related Topics:Administration biden debt expert federal Finance financial Government loan options Payments plans student

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Finance

TikTok goes dark for US users as law banning platform takes effect

Published

6 hours ago

January 19, 2025

Press Room

TikTok goes dark for US users as law banning platform takes effect

TikTok went dark on Sunday for US users as a new law banning the app took effect at midnight.

Users logging into TikTok were served with a message reading: “Sorry, TikTok isn’t available right now.”

“A law banning TikTok has been enatched in the U.S.,” the message added. “Unfortunately, that means you can’t use TikTok for now.”

The alert also mentioned President-elect Donald Trump by name saying, “We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office.” On its website, TikTok told users they could still login to download their data.

Access to the platform began getting cut off for some users about 90 minutes before the new law took effect. The app was also unavailable via Apple’s App Store. Videos intermittently loaded on TikTok, but the app also showed a blacked-out screen indicating network issues.

TikTok went dark Saturday night, just ahead of a ban on Sunday. (Image: Howley) · Howley

Saturday night’s cutoff for US TikTok users followed a report from The Information which said Oracle (ORCL), which manages TikTok’s US servers, was set to begin shutting down servers that host TikTok’s data as early as 9:00 p.m. ET.

In an interview with NBC on Saturday, Trump said he would likely grant TikTok a 90-day extension to work out a deal with the government and keep the app up and running.

The law itself doesn’t outright ban TikTok, but rather it prohibits users from accessing the platform through app stores, like those run by Apple (AAPL) and Google (GOOG, GOOGL), and cloud services unless parent company ByteDance sells itself to an owner that is not controlled by a country the US considers adversarial.

Congress has accused ByteDance of having close ties to the Chinese government and alleges that the Chinese Communist Party could force the company to provide it with information on US users or otherwise spread propaganda on the platform.

But the outcry from users and TikTok’s backers has forced President Joe Biden and Trump to respond. Even if Trump assures Apple and Google that his administration won’t enforce the law, it’s not guaranteed that it will do so in the future. And each time the companies don’t comply with the law they’d have to pay a fine of $5,000 each time a user accesses the social media app.

Trump will have to either convince Congress to overturn the ban or find some other way to work around it if he wants to keep the service up and running, and neither of those is simple.

The biggest winner could be one of TikTok’s long-term critics, Meta (META) CEO Mark Zuckerberg. In particular, Instagram, owned by Meta, could see a sizable uptick in advertiser dollars if TikTok bites the dust.

Finance

Iron Mountain Incorporated (IRM): Strong Financial Growth and Innovative AI-Driven Solutions Transforming Storage and HR Operations

Published

14 hours ago

January 18, 2025

Press Room

Iron Mountain Incorporated (IRM): Strong Financial Growth and Innovative AI-Driven Solutions Transforming Storage and HR Operations

We recently compiled a list of the Blackrock’s 30 Most Important AI Stocks. In this article, we are going to take a look at where Iron Mountain Incorporated (NYSE:IRM) stands against the other AI stocks.

In the third quarter of 2024, investment titan Blackrock released a commentary on the market outlook for artificial intelligence heading into the closing months of the year, stressing that investors were becoming cautious about the scale of AI spending by tech firms and thus diversifying investments into energy, utilities, real estate, and resources tied to AI infrastructure (for more on this click on 30 Most Important AI Stocks According to BlackRock). Following this warning, in September 2024, BlackRock, in collaboration with Microsoft, Global Infrastructure Partners, and MGX, announced a new AI partnership aimed at investing in data centers and supporting power infrastructure. This initiative was part of a larger strategy by the investment firm to enhance American competitiveness in AI while meeting the growing need for energy infrastructure to power economic growth.

The investment giant also expanded product offerings to cater to the growing interest in AI. In October 2024, the firm launched two new exchange-traded funds (ETFs) designed to provide investors with exposure to the burgeoning AI market. These ETFs aimed to capitalize on the increasing demand for AI-driven investment opportunities. Though still in their early stages, the initiatives appear to have paid off. BlackRock reported a net profit of $6.37 billion last year, marking a 16% increase from the previous year. Revenues rose by 14% to $20.4 billion, and assets under management expanded to $11.55 trillion. The firm has attributed a major part of this growth to advancements in AI technologies and projected that AI will be a significant driver of US equities and economic expansion in 2025.

The BlackRock Investment Institute notes that AI innovations are expected to outpace similar developments in Europe, with private markets playing a crucial role in funding AI-related infrastructure. BlackRock’s 2025 Global Outlook suggests that the global economy has moved beyond the traditional boom and bust cycle due to transformative mega forces such as AI technologies, net-zero carbon emission efforts, geopolitical fragmentation, demographic shifts, and the digitization of finance. The firm believes that significant investments, akin to those of the Industrial Revolution, are needed, particularly in infrastructure tied to AI and green technology. The claims made by BlackRock in relation to AI are shared by investment firm JPMorgan.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

According to a recent report on the topic by investment bank JPMorgan, investors should focus on opportunities that will prevail right along the AI value chain instead of focusing on obvious choices. Analysts at the bank have advised investors to weigh future potential earnings against what is already embedded in the price. Per JPMorgan, cheaper valuations and less demanding earnings expectations outside of mega cap tech stocks suggest that even AI bulls should be positioned for further broadening across sectors in 2025. The Investment Outlook 2025 report by JPMorgan takes a look at the soaring valuations of the Magnificent Seven group of stocks and their importance to the AI revolution. The bank highlights that while each of the companies in the Magnificent Seven are geared differently to the AI theme, this group of stocks now make up nearly 35% of the S&P 500 market cap and have driven over 70% of returns since the beginning of 2023.

This performance, compared against the rest of the market, has allowed for the expansion of valuations. JPMorgan underlines that while the rest of the S&P 500 trades on 12-month forward earnings multiple of 19x, the largest 10 stocks in the index now trade on 29x. Analysts led by Karen Ward, the Chief Market Strategist for EMEA at JPMorgan, contend that the valuation discrepancy between tech and the rest is unsustainable. The report stresses that if the broad AI ecosystem generates sufficient revenues to justify the earnings expectations already assumed for a handful of companies, the rest should catch up over time. It also cautions that if instead, the broader corporate universe does not see the clear use case of these technologies and is unwilling to pay for them, then a catch down scenario is more likely. However, when the strong fundamentals of these mega caps are compared to other parts of the S&P 500 today, as well as to the 2000s tech bubble, a catch down seems unlikely, it notes.

JPMorgan broke down the AI revolution into five key areas. These were identified as AI hardware, AI hyperscalers, AI developers, AI integrators, and AI essentials. JPMorgan has warned that there is a substantial gap between the revenue expectations of hardware companies and the revenue growth that can be generated by the AI ecosystem. The bank has cautioned that this weakness can spread throughout the AI value chain. The report notes that the attention of investors has so far focused on AI hardware and AI hyperscalers, two areas of the AI industry more exposed to the technology and communication services sectors. Per JPMorgan, high levels of valuation dispersion in these categories suggest that opportunities for skilled stock pickers persist, but investors must recognize that any earnings disappointment could lead to substantial volatility.

Read more about these developments by accessing 12 Best Quantum Computing Stocks To Invest In and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by consulting an investor note from prominent investment firm BlackRock. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A storage facility with boxes and shelves to store records, representing the company’s secure records storage.

Number of Hedge Fund Holders: 30

Iron Mountain Incorporated (NYSE:IRM) is a real estate investment trust that focuses on storage and information management services. The company’s appeal as an investment is driven by a multitude of contributing factors. Firstly, as per the report of the third quarter of 2024, adjusted EBITDA was $568.1 million, compared with $500 million in the third quarter of 2023, an increase of 13.6%. On a constant currency basis, Adjusted EBITDA increased by 13.9% in the third quarter, compared to the third quarter of 2023, driven by increased revenue in Global RIM, ALM, and data center. Secondly, the company has launched a new Digital Human Resources (HR) solution to revolutionize HR operations. This may be an attractive opportunity for investors as it aims to revolutionize HR departments by providing secure employee file management in a centralized platform so that both physical and digital documentation is complete, up-to-date, and in compliance with employee records requirements. Moreover, Iron Mountain has released its new InSight Digital Experience Platform (DXP), a secure software-as-a-service (SaaS) solution designed to help organizations handle their physical and digital information. These promising AI-integrated initiatives will revolutionize the system and hold the potential to drive substantial growth in this technologically driven world.

Overall IRM ranks 27th on our list of Blackrock’s most important AI stocks. While we acknowledge the potential of IRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IRM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

Finance

PNC Financial price target raised to $216 from $215 at Truist

Published

22 hours ago

January 18, 2025

Press Room

PNC Financial price target raised to 6 from 5 at Truist

https://www.tipranks.com/news/the-fly/pnc-financial-price-target-raised-to-216-from-215-at-truist

Truist raised the firm’s price target on PNC Financial (PNC) to $216 from $215 and keeps a Hold rating on the shares as part of a broader research note updating the firm’s models after the second day of big bank earnings. The main drivers of the firm’s upside revision for the company are higher revenues than previously incorporated – both net interest income and fees income – partially offset by higher expenses and the tax rate, the analyst tells investors in a research note.

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