Category: 3. Business

(Bloomberg) — Asian stocks staged a rebound on Tuesday following a selloff that saw cryptocurrencies lead declines in global risk assets. A keenly watched auction of 10-year Japanese government bonds drew solid demand.

A gauge of regional equities rose as much as 0.5% before paring some gains. Tech-heavy markets of South Korea and Taiwan outperformed. Futures contracts for US stock indexes edged lower after the S&P 500 fell 0.5% and the Nasdaq 100 dropped 0.4% on Monday. Bitcoin fluctuated after losing more than 5% in the previous session.

Demand at this year’s final auction of 10-year Japanese bonds was stronger than the 12-month average. The sale had assumed greater importance for traders after increased speculation over an interest-rate hike sparked a yield surge. The yen weakened slightly against the dollar after rising the most in a week on Monday, when Bank of Japan Governor Kazuo Ueda sent the clearest hint yet that his board might raise rates soon.

Japanese government bonds should be watched as yields “have been on a tear” this year on expectations of larger budget deficits and another rate hike by the BOJ, Kristina Hooper, chief market strategist at Man Group, wrote in a LinkedIn post earlier. “This is important because rising JGB yields can help push up the yields of other longer-dated sovereign bonds, adding to borrowing costs when some governments can least afford it.”

Global markets were off to a shaky start in December on Monday as the renewed selloff in cryptocurrencies and hawkish comments from BOJ’s Ueda spurred risk aversion. The focus in the coming days will remain on central bank actions as Federal Reserve policymakers meet Dec. 9-10 and the BOJ decides on rates on Dec. 19.

The bid-to-cover ratio was 3.59 compared with 2.97 at the previous sale in November, and a 12-month average of 3.20. In another sign of strong investor demand, the tail, or gap between average and lowest-accepted prices, was 0.04, compared with 0.13 last month.

Swaps now imply about an 80% probability of a BOJ hike this month, with the odds rising to more than 90% for January. That compares with just 36% for December as recently as a week ago.

Treasuries steadied on Tuesday after falling across the curve in the previous session, when the 10-year yield jumped seven basis points to around 4.1%. A gauge of the dollar was little changed. Australia’s 10-year yield climbed six basis points.

Elsewhere, silver retreated from a record high, with a key technical indicator showing that a six-day rally through Monday had taken the white metal into overbought territory. Gold also declined while oil edged higher.

“There’s been some stabilization, but this still looks like a positioning-led bounce rather than a shift in broader conviction,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. “Monday’s move flushed out some weak hands, but the market remains cautious.”

US Economy

In the US, data Monday showed factory activity shrank in November by the most in four months as orders weakened.

Fed officials will get a dated reading on their preferred inflation gauge before next week’s rate decision. The report due Friday is expected to show that inflationary pressures are stable, but sticky. Yet the debate will likely largely center on the job market when policymakers meet for the rate decision.

Still, key data like the jobs report won’t arrive until after the December rate decision, which “drastically dilutes this week’s ability to spring any material surprises in as far as rate cut expectations are concerned,” noted Fawad Razaqzada at Forex.com.

In addition to Friday’s inflation data, other relevant economic data this week include ADP private employment figures for November and a preliminary reading of consumer confidence in December.

“With the Fed set to carry out another possible rate cut and key governments adopting fiscal stances that are more growth supportive than expected, we think the global macroeconomic environment will remain favorable to investors’ risk-taking,” said Homin Lee, a senior macro strategist at Lombard Odier Singapore.

Corporate News

Fanuc Corp.’s shares climbed as much as 9.4% to the highest since July 2021 after the Japanese factory automation equipment company announced that it will collaborate with Nvidia Corp. to implement physical AI in industrial robots. China Vanke Co., the distressed builder that surprised markets last week when it proposed an unspecified delay in paying a local bond, has now asked holders to wait a year to be made whole, as it faces mounting liquidity pressure amid waning state support. Warner Bros. Discovery Inc. was fielding a second round of bids on Monday, including a mostly cash offer from Netflix Inc., in an auction that could wrap up in the coming days or weeks, according to people familiar with the discussions. Jane Street Group and Citadel Securities reported gains in third-quarter trading revenue, cutting further into Wall Street’s dominance of that business and leaving the two market-making firms on track for record years. After 13 years of running South Korea’s largest cryptocurrency exchange, Song Chi-hyung and Kim Hyoung-nyon have cemented their spots among the world’s wealthiest. China’s DeepSeek unveiled two new versions of an experimental artificial-intelligence model it released weeks ago, adding fresh capabilities the startup said would help with combining reasoning and executing certain actions autonomously. Chinese vaccine makers are caught in a steep downturn, as intensifying competition pushes prices lower and erodes profits, underscoring the far-reaching deflationary pressure across the world’s second-largest economy. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.1% as of 12:42 p.m. Tokyo time Japan’s Topix rose 0.2% Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng was little changed The Shanghai Composite fell 0.5% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1612 The Japanese yen was little changed at 155.61 per dollar The offshore yuan was little changed at 7.0736 per dollar Cryptocurrencies

Bitcoin rose 0.2% to $86,612.2 Ether rose 0.3% to $2,801.11 Bonds

The yield on 10-year Treasuries was little changed at 4.09% Australia’s 10-year yield advanced six basis points to 4.61% Commodities

West Texas Intermediate crude was little changed Spot gold fell 0.2% to $4,223.51 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson, Abhishek Vishnoi, Ruth Carson and Masaki Kondo.

©2025 Bloomberg L.P.

• Ever wondered if monday.com is actually a hidden bargain or just riding a wave of hype? Let’s break down what is really driving the stock’s value so you can draw your own conclusion.

• After a short-term rebound of 3.2% in the last week, monday.com shares are still down 27.0% over the past month and a significant 35.1% year-to-date. This performance hints at shifting market perceptions and raises fresh questions around its long-term prospects.

• Recent headlines have highlighted increased adoption of monday.com’s work management platform among enterprise clients, along with partnerships that are expanding its international reach. At the same time, investors are considering growing competition in the software sector and the implications this may have for future growth.

• On valuation, monday.com scores 3 out of 6 on our valuation checks. This mixed showing leaves plenty to discuss. Next, we will run through the usual ways to spot value in a stock, but stick around for a smarter approach revealed later in the article.

Find out why monday.com’s -45.4% return over the last year is lagging behind its peers.

The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and then discounting them back to today’s value. This approach helps investors gauge whether a stock is trading at an attractive price compared to its anticipated ability to generate cash in the future.

For monday.com, the latest reported Free Cash Flow stands at $331 million. Analysts foresee robust growth, with projected Free Cash Flow rising to about $749 million by 2029. Looking even further, extrapolated forecasts suggest Free Cash Flow could surpass $1.2 billion by 2035. These forecasts start with analyst estimates for the next five years, while longer-term projections use reasonable growth assumptions tailored by Simply Wall St.

According to the DCF analysis, the estimated intrinsic value of monday.com’s shares is $211.44. This figure implies the stock is trading at a 29.1% discount compared to what the company is truly worth. This may signal that investors are underpricing its long-term potential based on cash flows today.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests monday.com is undervalued by 29.1%. Track this in your watchlist or portfolio, or discover 923 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for monday.com.

The Price-to-Earnings (PE) ratio is a popular way to value profitable companies because it directly relates a company’s share price to its earnings, allowing investors to see how much they are paying for each dollar of profit. For established, consistently profitable businesses like monday.com, the PE ratio helps put the current share price in context with not only recent performance but also anticipated growth and potential risks.

Growth expectations and perceived risk play a critical role in what counts as a “normal” or “fair” PE ratio. Companies expected to grow faster or that face lower risks typically command higher PE ratios, as investors are willing to pay more for each dollar of current earnings to benefit from future gains. Conversely, riskier or slower-growing companies tend to have lower PE ratios.

Currently, monday.com’s PE ratio stands at 118.8x, which is much higher than the industry average of 31.8x and its peer average of 36.8x. These benchmarks provide a useful starting point for comparison, but they do not account for company-specific strengths or weaknesses.

This is where Simply Wall St’s proprietary “Fair Ratio” comes in. The Fair Ratio, calculated at 43.6x for monday.com, considers the company’s earnings growth potential, competitive landscape, profit margins, size, and business risks. This holistic approach delivers a more nuanced and realistic estimate of what monday.com’s PE ratio should be, rather than just relying on broader industry or peer averages.

By comparing monday.com’s actual PE of 118.8x to the Fair Ratio of 43.6x, the stock appears to be trading at a premium far above what would be justified by its fundamentals alone, according to this model.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are personalized stories investors create to connect their perspective on a company, such as expected revenue growth, future profit margins, and competitive advantages, to a specific financial forecast and resulting fair value. This unique approach allows you to capture your outlook and assumptions, linking the company’s story to a dynamic estimate of fair value, rather than relying solely on static ratios or past performance.

On Simply Wall St’s Community page, millions of investors use Narratives to break down complex data into accessible, actionable insights. Narratives make it easy to see how fair value compares with the current market price, guiding you on whether now might be a good time to buy or sell. Importantly, Narratives update automatically as new news or company results emerge, keeping insights fresh and relevant.

For example, with monday.com, some investors believe aggressive upmarket expansion justifies a bullish fair value as high as $450 per share, while others focus on competitive risks and more cautious growth, yielding fair values closer to $205. Narratives empower you to map your own story to the latest numbers and then act on it confidently.

Do you think there’s more to the story for monday.com? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MNDY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

The U.S. Department of Commerce said on Monday the government will inject up to $150 million into the company but did not disclose the size of the stake.

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Within the lithography machine, the most difficult part to make is the laser.

XLight has proposed using technology derived from particle accelerators to create one that would use far less electricity than current lasers, and is working with U.S. national labs to develop a prototype that could be connected to machines made by ASML or others.

“For far too long, America ceded the frontier of advanced lithography to others. Under President Trump, those days are over,” Secretary of Commerce Howard Lutnick said in a statement.

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Story Continues

The investing giant hasn’t offered us exact reasons for his decision, but since we do know that he favors buying stocks for a good price, it’s fair to say that one key element may be holding him back. And this is valuation.

A look at the S&P 500 Shiller CAPE ratio shows us that stocks are at one of their most expensive levels ever. The metric, a measure of stock price in relation to earnings over a 10-year period, recently climbed to 40, a level it’s only reached once before since the S&P 500’s formation as a 500-company benchmark.

Now, let’s consider what history has to say about what may happen in 2026. At times when Berkshire Hathaway’s cash levels have been on the rise and reached a peak, the S&P 500 then has taken a dip, as you can see in the chart below, particularly in early 2016 and then toward 2017. The S&P 500 Shiller CAPE ratio also has been on the rise prior to these stock market dips, suggesting valuation may play a role in this trend.

This historical pattern suggests we may see a dip in stocks in 2026 — but this doesn’t necessarily mean that the year will finish in the negative. Stock market declines that have followed Buffett’s increases in cash levels generally have been short-lived, and most important of all, the S&P 500’s declines always have resulted in recovery and gains in the years to follow.

So, what does all of this mean for investors? Buffett’s actions imply opportunities aren’t overly abundant right now — and that could start weighing on demand for stocks. This “warning” means investors should pay close attention to valuations and avoid buying stocks that are overpriced or have questionable long-term prospects.

Fortunately, though, if stocks do slip in 2026, history shows us these periods aren’t long lasting — and that’s why investing for a number of years has been a winning strategy for Warren Buffett and could be a winning strategy for you too.

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Warren Buffett, Weeks Before His Retirement, Has a Warning for Wall Street. History Says This May Happen in 2026. was originally published by The Motley Fool