Daily News Round Up
Monday, 26 May 2025
- Rising Treasury Yields and Increased Debt Concerns are Dominating Market Sentiment:
Surge in long-end Treasury rates (reaching 5.15% for 30-yr yields, a level not seen since July 2007) coupled with a Moody’s US credit downgrade and anxieties over ballooning U.S. debt are fueling market volatility and broad-based selloffs. (Forbes, Seeking Alpha, Seeking Alpha)
- Trade Policy Uncertainty Continues to Weigh on Equity Markets: President Trump’s renewed tariff threats – targeting the EU (potential 50% levy) and smartphones (25% levy) – injected fresh volatility into global markets, particularly impacting tech supply chains and European equities. While the EU tariff was temporarily delayed to July 9, the ongoing uncertainty is creating a challenging environment for risk asset valuations. (FMP, WSJ, Reuters)
- Corporate Earnings are Mixed Amid Macroeconomic Headwinds: While some companies (e.g. Atlassian) delivered positive surprises, overall market sentiment remains cautious as earnings season progresses. Companies like Workday beat EPS estimates but saw their stock decline on perceived conservative guidance, highlighting investor sensitivity to future outlooks given macroeconomic uncertainties. (FMP, FMP)
- Sector Performance Diverging Based on Trade Sensitivity and Geopolitical Factors: Energy and High Beta stocks were the hardest hit during the week’s downturn, while Blockchain and commodity miners outperformed. Apple and its suppliers experienced significant declines following tariff threats. Automotive sectors are grappling with renewed price wars (BYD) while the aerospace sector sees expansion (VietJet ordering Airbus planes). (Seeking Alpha, FMP, WSJ)
- Strategic Positioning and Innovation Continue Despite Uncertainties: Nvidia continues to adapt to US export restrictions by developing a cost-effective GPU for the Chinese market, while Oracle is investing $40 billion in Nvidia chips for OpenAI’s data center. Companies are actively seeking ways to mitigate geopolitical and macroeconomic risks through strategic investments and product adjustments. (FMP, FMP)
What happened over the weekend?
Macro
Economic Growth: For the week, the large cap equity indexes (S&P 500, Nasdaq, and the DJIA) were down in the -2.5% range, with small cap stocks (Russell 2000) down a bit more (-3.5%) (see table). For the year to date, the results are mixed – pretty much near the flat line except for the -5.26% performance of small cap Russell 2000. (Forbes)
Economic Growth: Stocks struggled to find traction this week, as rising bond yields, a Moody’s U.S. credit downgrade , and profit-taking kept investors on edge. (Schaeffers Research)
Interest Rates: Everyone’s got an answer for why Treasury yields have jumped recently. Yet no one knows why. (Forbes)
Interest Rates: Long-end Treasury rates are surging and could rise further, as the market adjusts to a new, higher-rate environment. Fed Funds Futures indicate the effective rate will bottom around 3.3% in 2026, then rise again from 2027 onward. (Seeking Alpha)
Interest Rates: Investors shifted focus from tariffs to concerns over ballooning U.S. debt, deficit, and rising interest payments, sparking broad market selloffs last week. All major equity sectors and factors declined, with Energy and High Beta stocks hit hardest, while Blockchain and commodity miners outperformed. (Seeking Alpha)
Interest Rates: It was moves in the bond market that took center stage on Wall Street this week. (Market Watch)
Interest Rates: Long-bond (30-yr) Treasury yields traded to 5.15% intraday Thursday – the high back to July 2007. The debt of high deficit nations is suffering outsized losses, providing further evidence of today’s evolving debt market dynamics. (Seeking Alpha)
Interest Rates: The US Dollar was once again on the main stage this week, as we have observed initial market reactions after last Friday’s US Credit Rating Downgrade by Moody’s Agency. Bitcoin and Gold were the winners of the week, enjoying from a lower US Dollar. (Seeking Alpha)
Interest Rates: Plenty of cynics focused on the government bonds’ levels and the impact of U.S. fiscal profligacy this week. (Barrons)
International relations: Asian indexes were mixed on Monday following a delayed tariff ultimatum from U.S. President Trump. Regional technology names, especially Apple suppliers, declined after a threat of a 25% levy on iPhone and smartphone imports. S&P 500 futures surged 0.9% after the postponement of tariff hikes to early July. Tokyo’s Nikkei 225 rose 0.6% and TOPIX climbed 0.5%, marking a third consecutive gain, with Japanese ministers scheduled to arrive in Washington in early June for trade discussions. Nippon Steel (TYO:5401) jumped nearly 4% after Trump supported its $14.9 billion takeover of U.S. Steel. (FMP)
International relations: Asian stock markets showed minimal movement on Monday, with MSCI’s broad Asia-Pacific ex-Japan index slipping by 0.07%. President Trump extended the deadline for imposing 50% tariffs on EU goods from June 1 to July 9. European futures increased by over 1.5%. The euro surged against the dollar, with EUR/USD climbing above 1.10, driven by the tariff delay and concerns about a potential U.S. recession. (FMP)
International relations: U.S. stock futures and European shares gained after President Trump gave the EU a temporary reprieve on new threatened tariffs. (WSJ)
International relations: European markets started the week in positive territory after President Trump agreed Sunday to delay a threatened 50% tariff on European imports until July 9, from June 1. (WSJ)
International relations: Trump agrees to extend the proposed 50% EU tariff to July 9, 2025, after a call with European Commission President Ursula von der Leyen. Talks are set to “begin rapidly,” he said. (Fox Business)
International relations: In this episode, Crossmark Global Investment’s Chief Market Strategist, Victoria Fernandez, breaks down what Moody’s downgrade of US debt really means – and how tariffs, inflation, and political uncertainty are reshaping the fixed income landscape. You’ll hear how Chinese trade tensions are impacting global yields, why bond market volatility is back, and what sectors investors should be cautious – or bullish – on right now. (Seeking Alpha)
International relations: Fears of a US-EU trade war have been reignited after Europe refused to back down in the face of fresh threats from Donald Trump. (Skynews)
Policy: Domestic factories that make batteries to store power to meet America’s rising energy demand depend on Chinese components and federal subsidies. (NYTimes)
Policy: Federal Reserve Chair Jerome Powell encouraged Princeton graduates to pursue public service, take risks, and focus on personal growth in his Baccalaureate remarks. (Fox Business)
Policy: The Treasury Bond market went into convulsions last month following the “Liberation Day” announcement of broad new high-tariff policies (April 2). Because Treasurys play such an important role in the global financial system, it seemed briefly that the whole system might be on the verge of coming apart. (Forbes)
Policy: US CDS spreads imply that the creditworthiness of US debt is several notches lower than its official ratings imply. Other markets—Treasuries, FX, gold, and crypto—are pricing in significant risk related to US government finances. (Seeking Alpha)
Policy: Shifts in trade policy, worries in bond market cast a pall over strong corporate results. (WSJ)
Policy: Wall Street on Friday closed out a topsy-turvy week with losses of nearly 3%, driven by U.S. President Donald Trump’s policy decisions. (Seeking Alpha)
Policy: The president’s economic policy approach is so far rattling markets, businesses and consumers. (NYTimes)
Policy: Shares in companies tied to nuclear power jumped Friday, helped by President Donald Trump’s rollout of four executive orders that aim to provide a boost to the sector, but there were concerns about whether there could be much of a near-term impact. (Market Watch)
Policy: Investors are fearing that projections for the U.S. debt mountain could increase further when a sweeping tax and spending bill goes through the Senate, with the risk that bond yields stay higher for longer. (Reuters)
Policy: Federal Reserve Governor Lisa Cook on Friday noted financial market volatility last month driven by the Trump administration’s announcement of unexpectedly high tariffs did not result in the kind of U.S. market dysfunction triggered by the COVID-19 pandemic, but added that the experience would help “hone our ongoing assessment” of the stability of the financial system. (Reuters)
Trade: U.S. President Donald Trump’s tariff program aims to rebalance trade deficits, generate revenue, curb fentanyl imports, and revive U.S. manufacturing. Tariffs on $200 billion of imports could generate tens of billions annually to offset income-tax reductions. Key tariff deadlines include July 1 for European duties and potential smartphone tariffs. Manufacturing employment has declined from roughly 25% of U.S. workers in the 1970s to about 8% currently. The U.S. industrial sector currently has a P/E ratio of 16x, below the broader market’s 18x average, and has underperformed since last year’s tariff escalations. (FMP)
Trade: Asian currencies saw small gains on Monday following President Trump’s postponement of 50% tariffs on EU imports from June 1 to July 9. The U.S. Dollar Index fell 0.3% to its lowest point in over a month. The Chinese yuan strengthened to a six-month high. USD/JPY decreased by 0.1%, USD/CNY edged down 0.1%, pushing the onshore yuan to its strongest level since November 2024, and AUD/USD rose 0.3%. Other currencies showed the following changes: USD/MYR down 0.5%, USD/KRW down 0.1%, USD/SGD down 0.3%, and USD/INR down 0.2%. The CBO estimates the U.S. tax-cut bill will add $3.8 trillion to the national debt over ten years. (FMP)
Trade: An outdoor decor CEO breaks down how tariffs are pushing up prices on his products. (WSJ)
Trade: President Donald Trump said his tariff policy seeks to encourage the domestic manufacturing of tanks and technology products, not T-shirts and sneakers. (Fox Business)
Trade: In a post on his Truth Social platform, Trump said he had received a call from European Commission President Ursula von der Leyen “requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union.” The president said he agreed to extend the deadline to July 9, and the EU Commission president told him that trade talks between the two sides will “begin rapidly. (Forbes)
Trade: Investors expressed relief that President Trump is delaying a 50% tariff jump for the European Union until July. (Market Watch)
Trade: Businesses are finding a workaround to minimize the most significant hit from U.S. tariffs. The “first sale rule” is a concept in U.S. customs law that allows importers to use the lowest cost of a good to calculate duties. (CNBC)
Trade: Trump’s post came after Von der Leyen said that she had a “good call” with Trump, but needed until July 9 to “reach a good deal.” (CNBC)
Trade: Donald Trump says the US and the EU have agreed to postpone the imposition of tariffs until July, as they attempt to negotiate a trade deal. (Skynews)
Trade: Just as investors thought they could take a break from tariff scares, President Trump’s threats of new levies against the EU and Apple threw trade tensions back into focus ahead of a long holiday weekend. (Market Watch)
Trade: Large banks in Central Europe aim to keep risk costs in check this year as they navigate economic uncertainty amid global tariff tensions. US President Donald Trump on April 2 unveiled sweeping tariffs on global trading partners, but later postponed some of the tariffs for 90 days. (Seeking Alpha)
Trade: Markets sagged again Friday after a fresh round of tariff threats landed like a sandbag, flattening retailers still wheezing from the last batch. President Trump declared that talks with the EU are “going nowhere” and vowed a “straight 50% tariff” on all EU goods starting June 1. (Seeking Alpha)
Trade: The spotlight is back on U.S. supply chains after President Trump threatened new E.U. and smartphone tariffs (Market Watch)
Trade: U.S. President Donald Trump issued new tariff threats on Friday that targeted the European Union and makers of smartphones, saying the E.U. will face a 50% levy on June 1 because trade talks are “going nowhere. (Market Watch)
Trade: Dow industrials drop 2.5% on the week, while bond markets flash new signs of danger. (WSJ)
Trade: A federal judge agreed with Presidend Donald Trump’s assertion that he can use a 1970s law to unilaterally impose sweeping tariffs on other countries’ goods. (Fox Business)
Trade: A new Trump tariff threat targets a bloc of 27 countries that add up to the largest U.S. trade partner. (WSJ)
Trade: U.S. President Donald Trump on Friday once again threatened to ramp up his trade war, recommending a 50% tariff on European Union goods starting June 1, sending European stocks tumbling. (Reuters)
Trade: President Trump’s threat of hefty tariffs on EU goods will raise further fears about high U.S. inflation and weak economic growth. (WSJ)
Trade: This 90-day pause will cause small cap manufacturers based in the US to let out a huge sigh of relief. There will be immediate surges in demand for all forms of transportation as the pent-up shipping demand erupts into action. (Seeking Alpha)
Industry
Automotive: Carmaker BYD last week offered discounts for many of its models, triggering industry concerns about another price war. (WSJ)
Aviation: VietJet has ordered 20 additional A330neo wide-body jets, bringing its total pending order to 40 aircraft. The airline aims to boost medium- and long-haul capacity and lower per-seat operating costs with these fuel-efficient aircraft, supporting a decade of growth. Deliveries will be staggered to match rising passenger demand. The deal signals a shift to a hybrid operating model, targeting expansion across the Asia-Pacific region and potential routes to Europe. (FMP)
Banking: EU regulators have expanded their antitrust investigation into Visa and Mastercard, initiated in September, with a new questionnaire sent to terminal providers and payments companies following a survey of retailers and merchants last month. The investigation focuses on fees and services introduced, modified, or withdrawn between 2017 and 2024, examining mandatory vs. optional services, disclosure clarity, and complaint resolution over the past seven years. Analyst ratings have recently been trimmed, with a consensus 12-month price target of $260 for Visa and $410 for Mastercard. Card networks process roughly two-thirds of euro-zone transactions, and potential findings of anticompetitive conduct could lead to fee reductions or structural separation. (FMP)
Consumer Goods: The trade war has turned a spotlight on the artisanal clusters behind glamorous goods, inviting fresh scrutiny of one of the industry’s key selling points. (WSJ)
Mining: The gold mining industry is today’s second-best performing group. (Investors Business Daily)
Semiconductors: Nvidia is planning to release a cost-effective Blackwell GPU for China by June, priced between $6,500 and $8,000, compared to $10,000-$12,000 for its previously banned H20 model. This move aims to maintain access to China’s $50 billion data-center market amid U.S. export restrictions. The new variant will utilize standard GDDR7 modules instead of HBM, complying with regulations. Nvidia holds a AAA corporate rating and has over $40 billion in cash reserves, allowing it to manage potential margin pressures. (FMP)
Corporate
Apple Inc: Apple Inc. (NASDAQ: AAPL) saw its shares drop 3% on Friday, and key Asian partners experienced stock declines following President Trump’s threat to impose a 25% tariff on all imported iPhones, and extend levies to every smartphone entering the U.S. AAC Technologies (OTC: AACAY) fell 1% in Hong Kong, while Lens Technology (SZ:300433), Goertek (SZ:002241), and Luxshare Precision (SZ:002475) each slid up to 1%. TSMC (TW:2330) and Hon Hai Precision (TW:2317) in Taiwan also retreated; Japan Display (TYO:6740) and Sharp (TYO:6753) in Tokyo dipped. Samsung Electronics (KS:005930) rose 0.5% despite the tariff threat. Trump previously postponed EU smartphone levies to July 9. (FMP)
Apple Inc: U.S. President Donald Trump warned of a 25% levy on imported iPhones, causing declines in shares of key Apple suppliers. Luxshare Precision fell 2.2%, Lens Technology lost 1.8%, and Goertek declined 1.1%. Trump also threatened 50% tariffs on EU goods, previously delayed, while a 10% baseline tax remains on most imports, and a prior 145% China tariff is currently at 30% for many products. Apple aims to shift U.S. iPhone assembly to India by end-2026. (FMP)
Apple Inc: The Trump trade war had been de-escalating until Friday’s threats vs. Apple and the EU. (Investors Business Daily)
Apple Inc / Samsung: U.S. President Donald Trump announced on Friday a **25% tariff** on imported smartphones, including iPhones, Samsung phones, and other handsets. A **50% levy** will remain on European Union goods until a trade deal is reached. The tariffs threaten to increase consumer prices and affect vendor margins. Investors will monitor forward price-to-earnings multiples for Apple (NASDAQ:AAPL) and Samsung (KS:005930) and analyze revenue mix by product category to quantify the impact of the tariffs on each company’s quarterly revenue. (FMP)
Atlassian: On May 23, 2025, Moody’s Ratings upgraded Atlassian’s (NASDAQ:TEAM) senior unsecured notes to Baa2 from Baa3, and its senior unsecured shelf to (P)Baa2 from (P)Baa3, maintaining a Stable outlook. The upgrade is based on projected revenue growth of at least 20% annually over the next 12-24 months, driven by cloud subscription adoption, and expected operating profit growth outperforming top-line growth. Moody’s highlights Atlassian’s scalable infrastructure and higher-margin cloud offerings and its conservative balance sheet management, with solid liquidity and manageable leverage. (FMP)
Chevron / Hess / Exxon Mobil / CNOOC: A London arbitration hearing will take place on Monday concerning Chevron’s $53 billion takeover of Hess, primarily focused on Hess’s 30% stake in the Guyana Stabroek oil block, which holds over 11 billion barrels of oil equivalent. Exxon Mobil and CNOOC are challenging Chevron’s acquisition, asserting a right-of-first-refusal on the Stabroek stake. Chevron and Hess argue the clause doesn’t apply to a full company sale. Chevron holds an AA- rating, $30 billion in cash and equivalents. Stabroek revenues have doubled over the past year. The arbitration, convened under the International Chamber of Commerce, could collapse the deal or necessitate a last-minute settlement, impacting shares of Exxon Mobil (XOM), CNOOC (CEO), Chevron (CVX), and Hess (HES). (FMP)
Copart (NASDAQ:CPRT): Copart (NASDAQ:CPRT) shares dropped over 11% intra-day following Q3 results. The company reported EPS of $0.42, meeting analyst forecasts, but revenue of $1.21 billion fell short of the $1.23 billion consensus estimate. Revenue increased 7.5% year-over-year to $1.21 billion, while net income rose 6.4% to $406.6 million. Service revenues climbed 9.3% to $1.03 billion, but vehicle sales decreased 2.1% to $176.9 million. For the first nine months of fiscal 2025, revenue reached $3.52 billion, a 11.2% year-over-year increase, and net income was $1.16 billion, up 11.1% year-over-year. (FMP)
Frontline Plc: Frontline Plc (NYSE:FRO), a shipping company, reported earnings per share (EPS) of $0.15 on May 23, 2025, missing the Zacks Consensus Estimate of $0.18, marking the third miss in the last four quarters with an average miss of 10%. Revenue reached approximately $428 million, exceeding the estimated $320 million. Financial metrics include a debt-to-equity ratio of 1.60, a current ratio of 1.39, a price-to-earnings (P/E) ratio of 8.14, a price-to-sales ratio of 1.97, an enterprise value to sales ratio of 3.59, and an earnings yield of 12.29%. (FMP)
Informatica / Salesforce: Informatica (INFA) shares increased by over 20%, specifically up 20%, following reports that Salesforce (CRM) is in renewed discussions to acquire the company. Salesforce stock decreased by 3% due to investor concerns about deal valuation and potential debt implications. Negotiations could conclude as early as next week, although no agreement is guaranteed. Cloud Software Group is also considering a bid, potentially creating an auction scenario. A deal is estimated to be in the $X billion range and would likely involve a combination of cash and debt. (FMP)
McDonald’s Corporation: On May 23, 2025, Erlinger Joseph M. sold 939 shares of McDonald’s Corporation (NYSE:MCD) at $315.07 each, leaving him with 11,161 shares. Over the past month, McDonald’s stock declined by 0.6%, underperforming the Zacks S&P 500 composite (up 13.4%) and the Zacks Retail – Restaurants industry (up 5%). Key financial metrics include a P/E ratio of 27.63, a price-to-sales ratio of 8.77, an enterprise value to sales ratio of 10.78, an enterprise value to operating cash flow ratio of 29.21, a debt-to-equity ratio of -15.28, and a current ratio of 1.18. (FMP)
Nvidia: Nvidia is launching a China-specific Blackwell GPU by June, priced between $6,500 and $8,000, undercutting its previous H20 chip (priced between $10,000 and $12,000). The new GPU, using conventional GDDR7 memory, complies with U.S. export controls and is priced up to 35% lower than the H20. Nvidia’s CEO estimates China as a potential $50 billion market. Nvidia holds a AAA corporate rating and possesses over $40 billion in cash. Approximately 28% of Nvidia’s revenue is reinvested into R&D, and the consensus price target for Nvidia is $675. (FMP)
Nvidia: Nvidia (NASDAQ:NVDA) reports its quarterly results on Wednesday, representing the final “Magnificent Seven” company to do so this season. Nvidia shares have rallied 1,000% from late 2022 through 2024, but are down 2% year-to-date. Consensus EPS estimates are $5.12, with revenue projected at $26.8 billion. Over the past eight quarters, Nvidia has exceeded EPS estimates by an average of 9%. U.S. 30-year Treasury yields recently reached 5% for the first time since 2023. The U.S. debt currently stands at $36 trillion, with Congressional debates potentially adding trillions more. (FMP)
Nvidia / Apple Inc: Corporate profits may be the only thing standing between a bleak future and something brighter. Nvidia, we’re counting on you. (Barrons)
Nvidia / HP / Dell / Salesforce: After a week of AI and trade news, earnings will move back into focus. Nvidia, HP, Dell, and Salesforce all expected to report this week. (Barrons)
Nvidia Corporation / Tesla Inc: Stifel Research views Nvidia Corporation (NVDA) as “attractively valued” ahead of its fiscal Q1 earnings report on May 28, despite China export restrictions. Stifel anticipates inline Q1 performance and expects 2H acceleration driven by momentum in the UAE and Saudi markets. Wedbush Securities raised its 12-month price target on Tesla Inc. (TSLA) to $500 (from $350), maintaining an Outperform rating, citing a $1 trillion AI and autonomy market opportunity and projecting margin expansion with FSD adoption above 50%. Investors should watch Nvidia’s Q1 call on May 28 for commentary on China restrictions and margin outlook related to GB200/GB300 chip production ramps, and Tesla’s autonomy rollout for early usage metrics. (FMP)
Oracle: Oracle is purchasing approximately 400,000 Nvidia GB200 chips for $40 billion to power OpenAI’s data center in Abilene, Texas, as part of the U.S. Stargate Project. The data center will be operational by mid-2026 and leased to OpenAI under a 15-year agreement. JPMorgan provided $9.6 billion in debt financing through two loans, while Crusoe and Blue Owl Capital contributed around $5 billion in equity. (FMP)
Reddit / HPE / UnitedHealth Group / Planet Fitness: Wells Fargo downgraded Reddit (RDDT) to Equal-weight with a $115 price target, anticipating ad revenue to be 6% below consensus in 2026 and 14% below in 2027, with EBITDA trailing by 2% and 15% respectively. Evercore upgraded Hewlett Packard Enterprise (HPE) to Outperform, assigning a $30 fair value, citing potential from a Juniper Networks acquisition or margin improvements. HSBC downgraded UnitedHealth Group (UNH) to Reduce with a $270 price target, citing medical-loss-ratio pressures in 2025-26 and PBM reform risks. Stifel upgraded Planet Fitness (PLNT) to Buy with a $120 target, expecting a Black Card price hike to potentially increase same-store sales by 3-4%, and anticipating mid-single-digit comp growth. (FMP)
Toyota Motor: Both Glass Lewis and ISS are now recommending shareholders vote for the re-election of Toyota Motor (NYSE:TM) Chairman Akio Toyoda at the June AGM, a shift from advising against him in the previous two years. In 2024, Toyoda received 72% shareholder backing, the lowest ever for a Toyota director, down from 85% in 2022 and 96% in 2023. Analysts forecast a 15% upside to consensus targets for Toyota, with a median street price target of $205. Governance reforms, including enhanced independent director quotas and a strengthened audit committee charter, contributed to the turnaround in sentiment. (FMP)
WesBanco, Inc.: WesBanco, Inc. (Nasdaq: WSBC), headquartered in Wheeling, West Virginia, has acquired Premier Financial Corp., transitioning approximately 400,000 consumer and 50,000 business relationships and rebranding around 70 financial centers, which reopened on May 19, 2025. The acquisition has expanded WesBanco’s footprint to over 250 financial centers across nine states and increased its assets to over $27 billion, ranking it among the top 100 largest insured depository organizations in the U.S. and 8th largest bank in Ohio by deposit market share. WesBanco now employs approximately 900 additional employees, bringing the total workforce to an undisclosed number. As of today, WesBanco’s stock (WSBC) is priced at $30.53, down 0.03%, with a 52-week high of $37.36 and a low of $25.56. The market capitalization is approximately $2.92 billion, with a trading volume of 264,866 shares on the NASDAQ exchange. Director Kerry M. Stemler recently purchased 270 shares at $30.90 each, increasing his total ownership to approximately 109,356 shares. Customer appreciation events are scheduled throughout June. (FMP)
Workday: Workday (NASDAQ:WDAY) reported first-quarter adjusted EPS of $2.23, exceeding the $2.01 consensus, with revenue rising 12.6% year-over-year to $2.24 billion, surpassing analyst expectations of $2.22 billion. For Q2, Workday projects subscription revenue of $2.16 billion, a 13.5% increase. The full-year fiscal 2026 subscription revenue forecast remains at $8.8 billion, a 14% annual increase. Shares fell over 10% intra-day despite the positive results due to the perceived conservative guidance. (FMP)
