Stock Markets
Explainer-What to know about Tropical Storm Beryl as it heads toward Texas
By Sarah Morland
(Reuters) -Powerful Hurricane Beryl was the 2024 Atlantic season’s first hurricane and the earliest storm on record to reach the strongest possible ranking of Category 5, before weakening to a tropical storm as it barrelled toward Texas on Sunday.
The storm, which is responsible for at least 11 deaths as it swept through the Caribbean, could strengthen back to a Category 1 hurricane, and possibly a stronger Category 2, according to the National Hurricane Center. It is expected to make landfall on the Texas coast between Corpus Christi and Galveston early Monday, according to LSEG data.
Record-breaking sea temperatures that allow tropical storms to get stronger faster, driven by human-caused climate change and cyclical weather patterns, are fueling what scientists say is shaping up to be a very dangerous hurricane season.
WHAT IS CATEGORY 5?
A Category 5 is the strongest hurricane on the Saffir-Simpson Scale, bringing winds of 157 mph (252 kph) or higher, capable of causing catastrophic damage including the destruction of homes and infrastructure.
Since 1960, only 30 Atlantic hurricanes have reached Category 5, with 2005 – the year deadly Hurricane Katrina devastated New Orleans – setting the record for the most recorded in a single season, at four.
WHY IS BERYL SO EARLY?
Hurricane Beryl is the earliest Category 5 hurricane on record in the Atlantic, according to the United Nations’ World Meteorological Organization.
Anne-Claire Fontaine, a scientific officer for the agency, said a reason Beryl had developed so early in the season was because the “hurricane alley” is hitting its warmest ever temperatures.
Scientists say a streak of record temperatures in the North Atlantic since early last year would be extremely unlikely without climate change, driven by man-made fossil fuel emissions.
Higher water temperatures allow storms to intensify quicker, and ocean temperatures of at least 26.5 degrees Celsius (79.7 degrees Fahrenheit) are needed to maintain a tropical cyclone. According to NOAA, north Caribbean coastal water temperatures are hovering around 29.4 C (85 F).
WHERE IS BERYL GOING?
Beryl is currently forecast to makes landfall on the middle Texas coast between Corpus Christi and Galveston early Monday, according to LSEG data. The storm would then turn northeastward and move farther inland over eastern Texas and Arkansas late Monday and Tuesday, NHC said.
The Texas Gulf Coast is expected to get 5 to 10 inches (13 to 25 cm) of rain, with up to 15 inches in some areas beginning Sunday through Monday night, NHC said. Storm surge could reach 4 to 6 feet (1.2 to 1.8 meters) in Mesquite Bay and Matagorda Bay.
Hurricanes typically weaken as they move over land.
HOW DANGEROUS IS BERYL?
Beryl is the strongest storm to hit the south-eastern Caribbean in 20 years, when 2004’s Ivan smashed into Grenada as a Category 3, damaging most of its buildings, wreaked havoc over Jamaica as a Category 4 and strengthened to Category 5 over western Cuba.
Ivan weakened before hitting the United States but spawned over a hundred tornadoes. It killed around 90 people and left more than $20 billion in damages.
On Monday, Beryl made landfall on small islands in the eastern Caribbean, smashing fishing boats in Barbados, knocking out drinking water in St. Lucia, downing power lines and reportedly killing two people in Grenada and St Vincent.
It is blamed for at least 11 deaths in the Caribbean.
WHAT HELP IS ON THE TABLE?
As the Caribbean prepares to bear the brunt of a highly destructive hurricane season, regional leaders have pushed for better financing options so governments can invest more in protecting their populations from worsening climate change.
Highly indebted and tourism-dependent Caribbean states have long called on wealthy nations and top global polluters to do more to honor their pledges to meet emissions goals, provide climate adaption funds and consider debt relief.
However, a Reuters investigation found that billions in funds sent to help developing nations battle climate change have been funneled back to rich nations.
WHAT IS A HURRICANE SEASON?
Hurricane seasons are annual periods during which tropical storms are most likely to form, fueled by strong ocean breezes, warm seas and humidity. In the Atlantic Ocean this typically lasts from June through November, peaking in the late summer.
The Atlantic is also home to the so-called Hurricane Alley, or Main Development Region, a stretch of warmer water spanning from West Africa to much of the Caribbean, Central America, Mexico and the southern United States.
On average, a hurricane season produces 14 named storms (winds of at least 39 mph or 63 kph), of which seven become hurricanes (winds over 74 mph or 119 kph) and three become “major,” with wind speeds over 111 mph (178 kph). But as ocean temperatures break new records, the U.S. National Oceanic and Atmospheric Administration has warned of an “extraordinary” 2024 Atlantic season and forecast 17 to 25 named tropical storms, eight to 13 hurricanes and between four and seven major hurricanes.
In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
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