Category: 3. Business

  • DESTINY-Breast11: Neoadjuvant T-DXd/THP Improves pCR in High-Risk HER2+ BC | Targeted Oncology

    DESTINY-Breast11: Neoadjuvant T-DXd/THP Improves pCR in High-Risk HER2+ BC | Targeted Oncology

    Neoadjuvant fam-trastuzumab deruxtecan-nxki (T-DXd; Enhertu) followed by paclitaxel, trastuzumab (Herceptin), and pertuzumab (Perjeta; THP) yielded benefit in pathologic complete response (pCR) rates compared with dose-dense doxorubicin and cyclophosphamide plus THP (ddAC-THP) in patients with high-risk, HER2-positive early breast cancer, according to data from the phase 3 DESTINY-Breast11 trial (NCT05113251).1

    Findings presented at the 2025 ESMO Congress demonstrated that patients treated with T-DXd followed by THP (n = 321) experienced a pCR rate of 67.3% compared with 56.3% for those given ddAC-THP (n = 320; difference, 11.2%; 95% CI, 4.0%-18.3%; P = .003). Notably, the pCR benefit was observed in the hormone receptor–positive population, where the pCR rate was 61.4% in the T-DXd arm (n = 236) vs 52.3% in the ddAC-THP arm (n = 235; difference, 9.1%; 95% CI, 0.2%-17.9%), as well as the hormone receptor–negative population, where the respective pCR rates for the T-DXd arm (n = 83) and ddAC-THP arm (n = 85) were 83.1% and 67.1% (difference, 16.1%; 95% CI, 3.0%-28.8%).

    “DESTINY-Breast11 showed the highest reported pCR rate in HER2-positive early breast cancer for a registrational study in the neoadjuvant setting, despite—if you want to do cross-trial comparisons—a high prevalence of hormone receptor–positive disease and a high-risk population,” lead study author Nadia Harbeck, MD, PhD, said in a presentation of the data.

    Harbeck is director of the Breast Center and chair for Conservative Oncology at the Department of OB&GYN at LMU University Hospital in Munich, Germany.

    How Was the DESTINY-Breast11 Trial Designed?

    Harbeck noted that current neoadjuvant standard-of-care (SOC) regimens for HER2-positive early breast cancer have remained unchanged for more than a decade. As such, investigators sought to evaluate T-DXd–based treatment in this population with the goal of improving efficacy and safety vs the current SOC.

    The randomized, global, multicenter, open-label study enrolled patients with previously untreated HER2-positive early breast cancer who had high-risk disease, defined as ≥cT3 and N0-3 or cT0-4 and N1-3; or inflammatory breast cancer. Patients were allowed to enroll, irrespective of hormone receptor status.

    Patients were randomly assigned in a 1:1:1 fashion to receive T-DXd followed by THP; ddAC-THP; or T-DXd alone, followed by surgery in all arms. In the first arm, patients received 4 cycles of T-DXd followed by 4 cycles of THP. In the second, ddAC was administered for 4 cycles, followed by 4 cycles of THP. In the final arm, patients received T-DXd alone for 8 cycles.

    Notably, the T-DXd monotherapy arm was closed in March 2024, following a recommendation from the study’s independent data monitoring committee.

    After surgery, study protocols called for the following treatments, irrespective of arm:

    • pCR: radiotherapy and concomitant trastuzumab with or without pertuzumab for up to 1 year
    • Non-pCR: radiotherapy and ado-trastuzumab emtansine (Kadcyla) for up to 14 cycles
    • Hormone receptor–positive disease: endocrine therapy

    The study’s primary end point was pCR rate (ypT0/Tis ypN0) per blinded independent central review (BICR) assessment. Secondary end points included BICR-assessed pCR rate (ypT0 ypN0), event-free survival (EFS), safety, pharmacokinetics, invasive disease-free survival, overall survival, and health-related quality of life. Residual cancer burden (RCB) was an additional outcome measured during the study.

    At data cutoff, 16.9% of patients in the T-DXd plus THP arm discontinued a study drug, including T-DXd (2.8%), paclitaxel (14.4%), trastuzumab (2.2%), and pertuzumab (2.2%); 97.2% of patients in this arm proceeded to surgery. In the ddAC-THP arm, 13.8% of patients had discontinued any study treatment, including AC (2.9%), paclitaxel (12.0%), trastuzumab (3.0%), and pertuzumab (3.7%); 93.8% of patients in this arm underwent surgery. In the T-DXd monotherapy arm (n = 286), 18.4% of patients discontinued study treatment, and 95.8% underwent surgery.

    Regarding post-neoadjuvant treatments, 99.1% of evaluable patients in the T-DXd arm who achieved a pCR (n = 226) underwent any adjuvant therapy, comprising any cytotoxic chemotherapy regimen (5.8%), any T-DM1–containing regimen (1.8%), and any trastuzumab-containing regimen (94.2%). In the ddAC-THP, 98.4% of patients who achieved a pCR (n = 190) underwent any adjuvant therapy, including any cytotoxic chemotherapy regimen (5.8%), any T-DM1–containing regimen (2.1%), and any trastuzumab-containing regimen (91.6%).

    For patients who did not achieve a pCR, any adjuvant therapy was administered to 89.5% of patients in the T-DXd plus THP arm (n = 95) and 82.3% of patients in the ddAC-THP arm (n = 130). In the experimental group, adjuvant therapies included any cytotoxic chemotherapy regimen (10.5%), any T-DM1–containing regimen (52.6%), and any trastuzumab-containing regimen (38.9%). These respective rates were 9.2%, 56.9%, and 26.2% in the control group.

    In the T-DXd plus THP and ddAC-THP arms, the median age was 50 years (range, 25-82) and 50 years (range, 23-79), respectively. All patients in both arms were female. The highest proportion of patients in each arm was from Asia (T-DXd plus THP, 47.4%; ddAC-THP, 47.5%) and were Asian (49.8%; 49.1%). Most patients had an ECOG performance status of 0 (86.6%; 87.5%), had immunohistochemistry 3+ HER2-positive disease (87.2%; 88.4%), had cT0-2 tumors (54.8%; 58.8%), and had positive lymph nodes (89.4%; 87.8%).

    What Were the Other Efficacy Outcomes for T-DXd Plus THP vs ddAC-THP?

    Findings also showed that 81.3% of patients in the T-DXd plus THP arm had no RCB (RCB-0) or minimal RCB (RCB-1) in resected breast or lymph node tissue compared with 69.1% in the ddAC-THP arm (difference, 12.2%). In the hormone receptor–positive population, the RCB-0 plus RCB-1 rates were 78.0% for T-DXd plus THP vs 64.7% for ddAC-THP; these respective rates were 90.4% and 81.2% in the hormone receptor–negative population.

    Investigators also reported an EFS trend favoring T-DXd plus THP, with data at 4.5% maturity (HR, 0.56; 95% CI, 0.26-1.17). Maturity for the data cutoff of the trial’s final analysis is predicted at approximately 10%. The 24-month EFS rates were 96.9% (95% CI, 93.5%-98.6%) in the T-DXd plus THP arm vs 93.1% (95% CI, 88.7%-95.8%) in the ddAC-THP arm.

    What Is the Safety Profile of T-DXd Plus THP?

    Any-grade adverse effects (AEs) occurred in 98.1% of patients in the T-DXd plus THP arm compared with 98.7% of patients in the ddAC-THP arm. The respective rates of grade 3 or higher AEs were 37.5% and 55.8%. Any-grade serious AEs were reported in 10.6% and 20.2% of patients, respectively.

    In the T-DXd plus THP arm, AEs led to dose any dose reduction, any drug interruption, and any treatment discontinuation in 18.1%, 37.8%, and 14.1% of patients, respectively. In the ddAC-THP group, these rates were 19.2%, 54.5%, and 9.9%, respectively. AEs led to death in 0.6% of patients in both arms. AEs led to delays in surgery in 3.4% of patients in the experimental arm vs 2.6% of patients in the control arm.

    Regarding AEs of special interest, any-grade drug-related adjudicated interstitial lung disease (ILD) was 4.4% in the T-DXd plus THP arm vs 5.1% in the ddAC-THP arm. The rates of grade 3 or higher ILD were 0.6% and 1.9%, respectively. Grade 5 ILD occurred in 1 patient (0.3%) in both groups. Any-grade left ventricular dysfunction occurred in 1.3% of patients in the experimental arm vs 6.1% of patients in the control arm. The rates of grade 3 or higher left ventricular dysfunction were 0.3% and 1.9%, respectively, although no grade 5 events were reported in either group.

    Any-grade treatment-emergent AEs reported in at least 20% of patients in either arm included nausea (T-DXd plus THP, 64.7%; ddAC-THP, 51.6%), diarrhea (58.8%; 54.2%), alopecia (47.5%; 49.0%), fatigue (41.3%; 54.8%), increased transaminase levels (34.4%; 33.7%), neutropenia (29.1%; 44.2%), constipation (29.1%; 24.4%), vomiting (28.8%; 21.2%), peripheral neuropathy (25.9%; 20.8%), anemia (22.8%; 49.7%), stomatitis (18.4%; 27.9%), and leukopenia (17.2%; 23.4%).

    What Data Were Reported for T-DXd Monotherapy in HER2+ Early Breast Cancer?

    When the T-DXd monotherapy arm, patients were allowed to remain on therapy or immediately switch to local SOC. If patients switched therapy, they were classified as having a non-pCR.

    Findings from the monotherapy arm showed that patients (n = 286) achieved a pCR rate of 43.0% at the primary analysis and 51.4% at a prespecified supplementary analysis. EFS data were similar between T-DXd monotherapy and ddAC-THP (HR, 0.82; 95% CI, 0.41-1.62), and the 24-month EFS rate in the T-DXd monotherapy group was 94.4% (95% CI, 90.5%-98.7%).

    Regarding safety, 97.5% of patients treated with T-DXd alone (n = 283) experienced any-grade AEs, 22.6% had grade 3 or higher AEs, and 10.2% had any-grade serious AEs. AEs led to dose reduction, drug interruption, and treatment discontinuation in 6.7%, 18.0%, and 7.8% of patients, respectively. One patient (0.4%) experienced an AE that led to death. AEs led to surgical delay in 6.4% of patients.

    The rate of any-grade, drug-related adjudicated ILD was 4.9% in the T-DXd monotherapy arm, although all instances were grade 1 or 2. Left ventricular dysfunction occurred in 0.7% of patients, all at grade 1 or 2.

    What’s Next for T-DXd Plus THP?

    Based on data from DESTINY-Breast11, the FDA accepted a supplemental biologics license application seeking the approval of neoadjuvant T-DXd followed THP for the treatment of adult patients with high-risk, HER2-positive (IHC 3+ or in situ hybridization–positive), stage II/III breast cancer.2

    The FDA has assigned a target action date of May 18, 2026, under the Prescription Drug User Fee Act.

    “DESTINY-Breast11 results support T-DXd [plus] THP as a more effective and less toxic neoadjuvant treatment compared with ddAC-THP, and it may become the preferred regimen for patients with high-risk, HER2-positive early breast cancer,” Harbeck concluded in her presentation.1

    Disclosures: Harbeck reported receiving honoraria from AstraZeneca, Daiichi Sankyo, Gilead, Lilly, Menarini Stemline, MSD, Novartis, Pfizer, Pierre Fabre, Roche, Viatris, and Zuellig Pharma; serving as a consultant or advisor for Exact Sciences, Gilead, Pfizer, Roche, and Sandoz; having an institutional site contract with AstraZeneca; serving as a data safety monitoring board or advisory board member for Gilead, IQVIA, and Roche; and having ownership interested in the West German Study Group.

    REFERENCES:
    1. Harbeck N, Modi S, Pusztai L, et al. DESTINY-Breast11: neoadjuvant trastuzumab deruxtecan alone (T-DXd) or followed by paclitaxel + trastuzumab + pertuzumab (T-DXd-THP) vs SOC for high-risk HER2+ early breast cancer (eBC). Presented at: 2025 ESMO Congress; October 17-21, 2025; Berlin, Germany. Abstract 291O.
    2. Enhertu followed by THP supplemental biologics license application accepted in the U.S. for patients with high-risk HER2 positive early-stage breast cancer prior to surgery. News release. Daiichi Sankyo. October 1, 2025. Accessed October 18, 2025. https://www.daiichisankyo.com/files/news/pressrelease/pdf/202510/20251001_E.pdf

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  • China wants to play the long game with the U.S. What that means for Chinese stocks

    China wants to play the long game with the U.S. What that means for Chinese stocks

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  • Bitcoin Crash: A Canary In The Coal Mine – Forbes

    Bitcoin Crash: A Canary In The Coal Mine – Forbes

    1. Bitcoin Crash: A Canary In The Coal Mine  Forbes
    2. Gold Is King Now But BTC USD Will 14X To Over $1,400,000: Mexican Billionaire  Yahoo Finance
    3. This Week’s Biggest Losers Revealed as Bitcoin Slides to $106K: Weekend Watch  CryptoPotato
    4. Bitcoin & Ethereum Oversold Below Key Levels — MAGACOIN FINANCE Emerges as the Hidden Gem for 2025  Crypto Economy
    5. Bitcoin vs Gold: The Financial Future is Here  OneSafe

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  • Like Jeff Bezos and Howard Schultz, Chess.com’s cofounder says people doubted his vision—with a 225 million-user empire, he’s now having the last laugh

    Like Jeff Bezos and Howard Schultz, Chess.com’s cofounder says people doubted his vision—with a 225 million-user empire, he’s now having the last laugh

    In any entrepreneur’s journey, there are bound to be naysayers and doors slammed in their face. 

    When Jeff Bezos was drumming up his early visions of Amazon while working as a hedge fund manager, his Wall Street boss questioned if he could achieve success and financial security by selling books on the internet. And when Howard Schultz was looking for money to back his coffee business, called Starbucks, more than 200 investors believed no one would pay $3 for a cup of joe. 

    The same goes for two of Chess.com’s founders, Danny Rensch and Erik Allebest, when they were shopping out their platform to potential investors. Rensch tells Fortune they were routinely overlooked and disregarded.

    “We were laughed out of VC rooms who said that chess would never be anything. Nobody invested early on, and it became the biggest blessing in disguise,” Rensch recalls. 

    No investor, no problem: Chess.com founder had his own back

    Instead of relying on the pockets of investors, the Chess.com founders dipped into their own. They bootstrapped the online business in 2009 with money from Allebest’s former chess ventures, also borrowing $70,000 from a mother’s friend, which Rensch says they paid back very quickly. Soon, the entrepreneurs proved that VC investors missed out on a huge win; today, Chess.com is one of the largest online chess platforms in the world with more than 225 million registered members and 40 million active monthly users. Chess.com says it even surpassed a $1 billion valuation back in 2023.

    Despite having to keep his day job for years while his bootstrapped company was clawing its way to profitability, Rensch says he wouldn’t have it any other way. It’s a part of Chess.com’s underdog story as the platform concept was not only mocked by venture capitalists, but also by the chess community at large. Now, the website has become essential for anyone who’s interested in, or serious about, chess—from novices to grandmasters. 

    “That is a really important part of the story—there was no money raised. We were completely bootstrapped,” Rensch continues. “And given where chess went, I think it’s funny and adds to the magic of ‘Wow, what happened here?”

    It was the ‘laughingstock’ of the chess community before amassing 225 million users

    When Chess.com was still on its business bambi legs, it not only had to take heat from the VC world, but also from its own community. Players were doubtful; the internet was still in its relative infancy in 2009. Plus, there were other niche chess gaming sites like ChessPark (which became a part of Chess.com), Chess Tempo, and Red Hot Pawn. 

    “Chess.com was the laughingstock of the online chess community,” Rensch says. “It sounds so funny to say now, but it really is important to reflect and understand that the internet—at its earliest inception—was not web two or let alone web three. Your website was just a place with a phone number for a lot of people.”

    “There were niche communities and there were the main ones, but Chess.com itself, and the idea that it would become such an amazing home for every level of the chess playing community…was kind of ridiculous for most,” Rensch continues. 

    Rensch says he sees his website as a skill-sharpener that enriches people’s lives. In looking at Chess.com like a subscription service—like a Duolingo, Strava, or Spotify—the platform is a “lifestyle” ritual that users feel adds value to their well-being. And in the 16 years since the website’s inception, more than 225 million chess lovers have flocked to the platform to sharpen their gameplay and be in community. 

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  • Sam Altman wants to ‘treat adults like adults’—but can OpenAI keep ChatGPT safe after opening the door to erotica?

    Sam Altman wants to ‘treat adults like adults’—but can OpenAI keep ChatGPT safe after opening the door to erotica?

    OpenAI chief executive Sam Altman has announced that ChatGPT will soon be able to generate erotica for verified adult users. The move, framed by Altman as an effort to “treat adult users like adults,” comes as the company faces scrutiny over the way its AI bot can affect users’ mental health amid the rise of so-called “AI psychosis” cases. It also follows in the footsteps of rival companies, including Elon Musk’s xAI, which have already introduced more sexually explicit chatbot “companions” to their platforms.

    There is clearly a large demand for AI chatbots that are capable of behaving in romantic or sexual ways. An April survey of 6,000 regular AI users by the Harvard Business Review found that “companionship and therapy” was the most common use case. Another study from Ark Invest found that adult-focused AI platforms made significant gains last year, capturing 14.5% of the market previously dominated by OnlyFans, up from just 1.5% the year before.

    Popular alternatives that market themselves as companion AI chatbots, such as Character.ai and Replika, also speak to this growing demand from users. Earlier this year, xAI introduced “companion mode” for its chatbot Grok, a feature that lets users engage with various characters, including a highly sexualized anime persona called “Ani.”

    “OpenAI is stuck between a bit of a rock and a hard place, because I think they have seen a strong demand signal from users,” Jessica Li, a senior research analyst at Georgetown’s Center for Security and Emerging Technology, told Fortune. “In terms of the relationships that people are having with models…erotic content or adult content would also fall under this bucket of emotional engagement with the models.”

    The move could be an attempt by OpenAI to “straddle the line” between keeping the market share they already have by promising opt-in content moderation for NSFW content, Li said, while also seeing if they can capture other users from more specialized or niche services like Replika.

    “Despite some of the narratives around building artificial general intelligence that will supercharge the economy, OpenAI is still trying to operate as a technology platform, and somewhat like a social media company,” Li said. “There’s an interesting tension between the narratives that are being sold to investors and politicians… versus the things that are actually happening in the market.”

    OpenAI’s foray into adult content has drawn criticism from child safety advocates and notable industry figures concerned about erotica reaching younger users, despite age verifications.

    Earlier this week, the entrepreneur and TV personality Mark Cuban said OpenAI’s plan could “backfire hard,” and argued that parents will not trust OpenAI’s age filters to keep children away from explicit material. In the US, the Federal Trade Commission has already opened an inquiry into how AI chatbots interact with minors, and state lawmakers are considering tighter rules around digital companions and sexualized AI content. Jenny Kim, a partner at the law firm Boies Schiller Flexner, told the BBC that OpenAI is “using people like guinea pigs,” and questioned how the company would prevent children from accessing adult material on the platform.

    Reached for comment, OpenAI said that the company was building an age prediction system to understand whether someone is over or under 18. They added that if a user’s age could not be confidently confirmed, the chatbot would take the safer route and default to the under-18 experience, while giving adults ways to prove their age to unlock adult capabilities.

    Reacting to some of the backlash on X, Altman said that the announcement had blown “up on the erotica point much more than I thought it was going to.” He emphasized that the change was “just one example of us allowing more user freedom for adults,” not a retreat from safety measures or guardrails around mental health.

    “We are not the elected moral police of the world,” he said, adding that ChatGPT would continue to “prioritize safety over privacy and freedom for teenagers” while giving adults more autonomy.

    The GPT-4o backlash

    OpenAI has also been reckoning with an unexpected wave of backlash following its decision to replace the version of ChatGPT powered by GPT-4o with its newer GPT-5 model. Users revolted against the change, citing lost AI friendships and romantic relationships with the earlier iteration of the bot. One petition to keep the earlier version of the bot gathered almost six thousand signatories.

    “For many of us, GPT-4o offers a unique and irreplaceable user experience, combining qualities and capabilities that we value, regardless of performance benchmarks,” the petitioners wrote in the change.org campaign to keep GPT-4o. “We continue to benefit from GPT-4o in ways that are distinct and meaningful.”

    While OpenAI eventually restored the earlier version, those in the #keep4o movement have since told Fortune they were worried about the company routing users to GPT-5, “without consent or notification.”

    According to Li, the announcement from OpenAI could be trying to signal something to these users: “The very public announcement of it does make me think that they’re trying to signal something to users who are demanding this thing—like, ‘We hear you. We’re responding to your desires.’”

    The shift is also not entirely new; it builds upon a quieter update to OpenAI’s Model Spec earlier this year. In February, OpenAI updated the document to relax the rules around sexual and violent content in what it called a move away from “AI paternalism.” Updated guidelines at the time permitted the generation of written erotica and other sensitive material in appropriate contexts. OpenAI also told Fortune that the announcement was part of its plan to build on the latest release of the Model Spec, while maintaining boundaries against harmful uses like deepfakes.

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  • Dutch minister says he will meet with China official about seizure of chipmaker Nexperia – Reuters

    1. Dutch minister says he will meet with China official about seizure of chipmaker Nexperia  Reuters
    2. In rare move, Dutch government takes control of China-owned chipmaker Nexperia  Reuters
    3. New Threat to Auto Sector; AI’s DIY Power; IKEA Prices  富途牛牛
    4. Dutch government in talks with China over crucial automotive chip supplier Nexperia  Automotive News
    5. Nexperia crisis: Semiconductor supply shock threatens global auto production  Automotive Manufacturing Solutions

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  • Does Cognizant’s New AI Coding Blueprint Expand the Long-Term Growth Story for CTSH?

    Does Cognizant’s New AI Coding Blueprint Expand the Long-Term Growth Story for CTSH?

    • Cognizant Technology Solutions recently announced the launch of its Enterprise Vibe Coding Blueprint, a suite of services and reusable intellectual property that enables large enterprises to securely and efficiently operationalize AI-assisted coding across both technical and non-technical teams.

    • This move builds on the company’s record-setting Vibe Coding Week and highlights a shift toward fostering broad-based AI literacy and practical application within client organizations, reaching beyond traditional developer roles.

    • We’ll explore how the introduction of the Enterprise Vibe Coding Blueprint could reshape Cognizant’s investment case and growth outlook.

    Uncover the next big thing with financially sound penny stocks that balance risk and reward.

    To be a Cognizant Technology Solutions shareholder, one must believe in the company’s ability to lead enterprise adoption of AI-driven services, leveraging its proprietary platforms and deep consulting expertise to accelerate clients’ digital transformation. While the launch of Enterprise Vibe Coding Blueprint amplifies Cognizant’s differentiation in enterprise AI, it does not materially shift the immediate catalyst, clients scaling GenAI/automation projects, nor does it reduce the key risk of margin pressure from heightened competition and evolving client demands.

    Among recent developments, Cognizant’s July rollout of Agent Foundry stands out as it directly relates to the company’s focus on proprietary AI offerings, further supporting the current catalyst of large-scale AI implementation deals. Both the Blueprint and Agent Foundry signal Cognizant’s commitment to capturing new automation-led revenue streams, but risks remain if the company cannot continue scaling these platforms to offset potential headwinds from traditional outsourcing erosion.

    However, investors should also be aware that if technological progress outpaces demand for Cognizant’s labor-intensive services…

    Read the full narrative on Cognizant Technology Solutions (it’s free!)

    Cognizant Technology Solutions’ latest forecasts project $23.5 billion in revenue and $2.9 billion in earnings by 2028. This outlook is based on analysts’ expectations for 4.7% annual revenue growth and a $0.5 billion increase in earnings from the current level of $2.4 billion.

    Uncover how Cognizant Technology Solutions’ forecasts yield a $85.80 fair value, a 30% upside to its current price.

    CTSH Community Fair Values as at Oct 2025

    Eight community-generated fair value estimates for Cognizant range from US$66.06 to US$117.06 per share, reflecting wide variation in expectations. While many see upside, ongoing competition from established technology vendors could impact future earnings and project wins, consider multiple viewpoints to make a more informed decision.

    Explore 8 other fair value estimates on Cognizant Technology Solutions – why the stock might be worth just $66.06!

    Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

    Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:

    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 CTSH.

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

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  • Does the Sports Contracts Launch Signal a New Era or Risk for CME Stock in 2025?

    Does the Sports Contracts Launch Signal a New Era or Risk for CME Stock in 2025?

    If you are eyeing CME Group stock and wondering whether now is the right time to buy, hold, or maybe wait on the sidelines, you are not alone. Over the past few years, CME has treated its long-term shareholders to a remarkable journey, boasting a 100.4% return over the past five years. Even zooming in, the ride has stayed exciting, with a 15.1% return so far this year and 22.6% over the last twelve months. Some investors might notice the dip of 1.3% in the past week, raising questions about whether new developments such as the company’s plan to launch sports contracts by the end of the year are already baked into the price or are hinting at shifting risk perceptions in the market.

    Of course, price action is only half the story. Analysts have recently adjusted their expectations; UBS even trimmed its price target slightly, despite raising estimates, reflecting a bit more caution about future outlook. Meanwhile, CME’s latest venture into sports contracts could open fresh revenue streams, especially as it wades deeper into prediction markets alongside big names in the industry. With competitors watching closely and industry partnerships evolving, the question is not just whether CME Group’s stock can keep climbing, but whether its current valuation really stacks up against its prospects.

    When we run CME Group through our 6-factor valuation check, it scores a 1 out of 6 for being undervalued, so not a screaming bargain at first glance. But before jumping to conclusions, let’s break down what those valuation measures really mean and see if there is a more insightful way to judge what CME is worth in today’s market.

    CME Group scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

    The Excess Returns valuation approach examines how well a company generates returns above its cost of equity. Instead of focusing simply on earnings or cash flows, it measures the value created over and above what shareholders expect as a return for their capital. For CME Group, recent analyst estimates suggest its book value stands at $77.13 per share, while its expected stable earnings per share are $12.28, based on a weighted average of future Return on Equity projections from eight analysts.

    With a cost of equity set at $6.41 per share, CME achieves an excess return of $5.87 per share. This translates to an impressive average Return on Equity of 15.56%. The model also references a stable book value projection of $78.88 per share, built from assessments by five different analysts. These figures together inform a valuation model designed to capture the company’s ability to unlock value well into the future, rather than reflecting just short-term profits.

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  • Negative Effects of the Trade War Offset by the AI Boom and the Industrial Renaissance

    Negative Effects of the Trade War Offset by the AI Boom and the Industrial Renaissance

    Contrary to widespread fears about the economic outlook, key credit indicators are turning more bullish. Default rates for high yield debt and loans have peaked, along with delinquency rates for auto loans and credit cards, see charts below.

    Three factors explain why corporate default and consumer delinquency rates are moving lower:

    1) Uncertainty related to the trade war is significantly lower than its peak during Liberation Day.

    2) The ongoing AI boom is boosting the buildout of data centers and related energy infrastructure. Simultaneously, higher stock prices are supporting consumer spending.

    3) Investors are increasingly recognizing that we are in the early stages of an industrial renaissance across sectors like aerospace, defense, manufacturing, biotech and technology/automation.

    In summary, while the trade war remains a mild drag on growth, its impact is being more than offset by the tailwinds from the AI boom and the industrial renaissance. Consequently, there is a growing upside risk that economic growth will reaccelerate over the coming quarters.

    Sources: Moody’s Analytics, Apollo Chief Economist
    Auto loan delinquency rates peaking
    Sources: Federal Reserve Bank of New York, Macrobond, Apollo Chief Economist
    Credit card delinquency rates have peaked
    Sources: Federal Reserve Bank of New York, Macrobond, Apollo Chief Economist

    Download high-res charts

    This presentation may not be distributed, transmitted or otherwise communicated to others in whole or in part without the express consent of Apollo Global Management, Inc. (together with its subsidiaries, “Apollo”).  

    Apollo makes no representation or warranty, expressed or implied, with respect to the accuracy, reasonableness, or completeness of any of the statements made during this presentation, including, but not limited to, statements obtained from third parties. Opinions, estimates and projections constitute the current judgment of the speaker as of the date indicated. They do not necessarily reflect the views and opinions of Apollo and are subject to change at any time without notice. Apollo does not have any responsibility to update this presentation to account for such changes. There can be no assurance that any trends discussed during this presentation will continue.   

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  • Government vows to create 400,000 jobs in clean energy sector

    Government vows to create 400,000 jobs in clean energy sector

    Pritti MistryBusiness reporter

    PA Media A spacious industrial workshop where several workers in dark clothing are assembling or inspecting large white objects. Yellow overhead cranes and lifting equipment are visible above. The workspace is clean and organized, with various tools and machinery around.PA Media

    The Siemens wind turbine factory in Hull, where thousands are employed, is “booming”, a minister has said

    The government has announced plans to train and recruit more workers for the UK’s clean energy sector, promising to create 400,000 extra jobs by 2030.

    Plumbers, electricians and welders are among 31 priority occupations that are “particularly in demand”, with employment in renewable, wind, solar and nuclear expected to double to 860,000 in five years, ministers have said.

    Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Energy Secretary Ed Miliband said thousands of jobs were needed to develop Britain’s clean energy sector to “get bills down for good”.

    Welcoming the proposals, Unite the union said: “Well-paid, secure work must be at the heart of any green transition.”

    As part of the government’s strategy, five “technical excellence colleges” will be set up to train workers with clean energy skills, with £2.5m in funding going towards pilot schemes in Cheshire, Lincolnshire, and Pembrokeshire, according to the Department for Energy Security and Net Zero (DESNZ).

    A new programme is to be launched to match veterans with careers in solar panel installation, wind turbine factories and nuclear power stations, while oil and gas workers could benefit from up to £20m from the UK and Scottish governments for bespoke careers training in clean energy roles.

    There would be also be tailored schemes for ex-offenders, school leavers and the unemployed.

    He said 10,000 extra jobs would be needed to support the construction of the Sizewell C nuclear power station in Suffolk and described how the Siemen’s wind turbine factory in Hull was “booming”.

    Miliband also told the BBC he stood by his pledge to reduce energy bills by £300 by 2030, after bills went up by 2% for millions across the UK under Ofgem’s latest price cap.

    In a statement, Miliband said the plan would bring “a new generation of good industrial jobs” to communities across the UK.

    “Our plans will help create an economy in which there is no need to leave your hometown just to find a decent job.

    “Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid, secure jobs, from plumbers to electricians and welders.”

    According to DESNZ, jobs in the clean energy sector command average salaries of more than £50,000, compared to the UK average of £37,000.

    Work and Pensions Secretary Pat McFadden said: “We’re giving workers the skills needed to switch to clean energy, which is good for them, good for industry, and will drive growth across the nation.

    “Our new jobs plan will unlock real opportunities and ensure everyone has access to the training and support to secure the well-paid jobs that will power our country’s future.”

    Christina McAnea, general secretary of Unison, said the government’s strategy could “help create a UK workforce with highly skilled, fairly paid and secure jobs”.

    “Additional funding for apprenticeships and opportunities for young people are crucial too if the UK is to have a bright and clean energy future,” she added.

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