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May 31, 2025

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Analyst explains why ‘market is wrong’ in selling Gap stock on tariff warning

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Gap Inc (NYSE: GAP) shares plunged some 20% on Friday, rattled by concerns over tariffs and their potential impact on profit margins.

However, according to Matt Boss, a retail analyst at JPMorgan and an Extel Analyst Hall of Famer, the market is overreacting—and there’s a compelling case to buy the dip in Gap stock.

Why did Gap shares fall?

Today’s selloff in GAP shares was triggered by investor fears over an estimated $150 million in incremental tariffs hitting Gap and its brands like Old Navy.

This tariff burden has been factored into the stock price at a low double-digit multiple, equating to roughly $5 to $6 in equity value removed from the shares, Boss explained.

Despite these concerns, Gap reported solid fundamentals in its latest quarterly results, with same-store sales up mid-single digits at core Gap and low single digits at Old Navy.

The company also outlined an expected 8% to 10% multi-year bottom-line growth driven by steady sales gains.

Where the market is wrong

Matt Boss emphasized that tariffs are far from a new issue for Gap stock and its retail peers, many of whom have been aggressively reducing their exposure to China, traditionally a major source of tariff risk.

“Gap will exit this year with only 3% of its sourcing coming from China,” the JPM analyst revealed in a CNBC interview today, adding “on average, our group has a high single-digit China impact today, down from 20% in 2019.”

Retailers are mitigating tariff pressure through diversified sourcing, strategic pricing adjustments, and operational efficiencies.

Some companies are cautiously implementing low to mid-single-digit price increases, while others are waiting to see the final tariff rates before passing costs onto consumers.

JPMorgan sees opportunity

Despite recent volatility, Boss remains optimistic on Gap’s turnaround story and rates the stock as overweight.

He believes fair value lies in the mid-$30s for GAP shares, well above current prices, contingent on management’s execution of its plan.

Pullbacks like the recent selloff, he said, create compelling buying opportunities for investors willing to look beyond short-term tariff noise.

While tariffs have rattled the market, the fundamental outlook for Gap stock and other well-managed retailers remains intact.

As Matt Boss notes, investors should see the recent selloff in GAP not as a warning sign but as a buying opportunity in a sector undergoing selective, durable recovery.

Other Wall Street analysts agree with JPM’s view on GAP shares as well, given the consensus rating on the multinational clothing and accessories retailer currently sits at “overweight”.

Analysts have an average price target of a little over $27 on Gap Inc, which indicates potential for a more than 20% upside from current levels.

The post Analyst explains why ‘market is wrong’ in selling Gap stock on tariff warning appeared first on Invezz

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In World news

Top 5 Canadian Mining Stocks This Week: Adyton Sparkles with 97 Percent Gain

11 Mins Read

Statistics Canada reported on Friday (May 30) that real gross domestic product (GDP) gained 0.5 percent during the first quarter of 2025. Even on a per capita basis, real GDP posted a strong 0.4 percent increase.

The agency primarily attributed the rise to a 1.6 percent increase in exports during the quarter. The higher export amounts were led by a 16.7 percent growth in passenger vehicle exports and a 12 percent rise in industrial machinery, equipment and parts exports, both of which were driven higher in response to imposed and threatened tariffs from the United States.

On a monthly basis, the GDP registered a 0.1 percent gain in March, following a 0.2 percent contraction in February. The most significant contributor to the rise came from the resource sector, which posted a 2.2 percent increase, with oil and gas gaining 2 percent.

When it came to mining, metal ore mining rose 1.7 percent overall. Copper, nickel, lead and zinc recorded a 2.4 percent gain, while the other metal mining category increased by 16.9 percent. However, a 3.1 percent decline in gold and silver mining hindered overall growth across the subsector.

South of the border, the US Bureau of Economic Analysis (BEA) released its second estimate for first quarter GDP on Thursday (May 29). Its figures indicated that GDP contracted 0.2 percent in the first three months of the year, down significantly from a 2.4 percent gain in the fourth quarter of 2024.

The Bureau attributed the decline to an increase in imports and a decrease in government spending. However, the agency also noted that upturns in investment and exports partially offset the fall during the quarter.

On Friday, the BEA released April’s personal consumption expenditures (PCE) index. The data shows that on an annual basis, all items PCE growth had further slowed to 2.1 percent compared to the 2.3 percent recorded in March. PCE less the volatile food and energy categories also slowed on an annual basis, up 2.5 percent in April compared to 2.7 percent in March.

The PCE is the preferred inflationary measure used by the US Federal Reserve to set its benchmark interest rate, the Federal Funds Rate. The slowing pace is currently in line with the central bank’s 2 percent target goal. Still, with uncertainty surrounding tariffs and US economic policy, most analysts expect the Fed to maintain the rate at the current 4.25 to 4.5 percent range when it next meets on June 18 and 19.

Markets and commodities react

In Canada, major indexes were mixed at the end of the week.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) gained 0.9 percent during the week to close at 26,175.05 on Friday. However, the S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 0.02 percent to 694.40 and the CSE Composite Index (CSE:CSECOMP) shed 3.78 percent to 115.01.

US equities were in positive territory this week, with the S&P 500 (INDEXSP:INX) gaining 2.24 percent to close at 5,911.68, the Nasdaq-100 (INDEXNASDAQ:NDX) rising 2.57 percent to 21,340.99 and the Dow Jones Industrial Average (INDEXDJX:.DJI) adding 1.79 percent to 42,270.08.

The gold price was flat this week, posting a loss of just 0.04 percent, to close Friday at US$3,293.21. The silver price was also marginally down, shedding 0.54 percent during the period to US$32.87.

In base metals, the COMEX copper price fell 3.47 percent over the week to US$4.72 per pound, pulling back from its gains seen late last week. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) posted a decline of 1.57 percent to close at 524.66.

Top Canadian mining stocks this week

How did mining stocks perform against this backdrop?

Take a look at this week’s five best-performing Canadian mining stocks below.

Stock data for this article was retrieved at 4 p.m. EDT on Friday using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

1. Adyton Resources (TSXV:ADY)

Weekly gain: 96.55 percent
Market cap: C$59.79 million
Share price: C$0.285

Adyton Resources is working to advance the Feni Island and Fergusson Island gold projects in Papua New Guinea.

The Feni Island site has seen historic exploration, with 212 holes drilled over 18,813 meters. While limited work has been conducted by Adyton, a 2021 resource estimate shows an inferred resource of 1.46 million ounces of gold. The company has been working to expand its gold resource and explore for copper at greater depths than previous exploration.

While Feni Island has been its primary focus, Adyton has also been working to advance its Fergusson Island project.

The project consists of two advanced exploration licenses for the Wapolu and Gameta targets, which host a combined indicated resource of 173,000 ounces of gold and an inferred resource of 540,000 ounces of gold. The site also hosts a past-producing mine, which was abandoned in the 1990s.

On March 12, Adyton reported that a team from the Papua New Guinea Mineral Resource Authority had visited the Fergusson Island site to familiarize themselves with the project and to provide an approval process for the restart of the mine.

The most recent news from Adyton came on Wednesday (May 28), when it released its first quarter management discussion and analysis. In the report, the company provided a summary of its activities during the first quarter and demonstrated an increase in its balance sheet compared to the previous quarter.

2. Sterling Metals (TSXV:SAG)

Weekly gain: 80.77 percent
Market cap: C$15.15 million
Share price: C$0.47

Sterling Metals is an exploration company working to advance a trio of projects in Canada.

Over the past year, its primary focus has been on exploration at its brownfield Soo copper project in Ontario, which it recently renamed from Copper Road. The 25,000 hectare property hosts two past-producing copper mines and has the potential for larger intrusion-related copper mineralization.

On January 15, Sterling announced results from a 3D induced polarization and resistivity survey that covered an area of 5 kilometers by 3 kilometers and revealed multiple high-priority drill-ready targets. The company intends to use the survey results, along with historical exploration, to inform a drill program at the site.

The company’s other two projects are located in Newfoundland and Labrador. Adeline is a 297 square kilometer district-scale property with sediment-hosted copper and silver mineralization along 44 kilometers of the strike, and Sail Pond is a silver, copper, lead and zinc project that hosts a 16 kilometer long linear soil anomaly and has seen 16,000 meters of drilling.

On Thursday, Sterling announced that the first of four diamond drill holes from the initial drill program at Soo ‘demonstrated a continuous, bulk-tonnage copper-molybdenum-silver-gold target, called the GFP Porphyry.’ The company highlighted a broad, near-surface zone grading 0.28 percent copper equivalent over a length of 482.8 meters, which included an intersection of 0.56 percent copper equivalent over the first 75.2 meters.

3. Grid Battery Metals (TSXV:CELL)

Weekly gain: 58.33 percent
Market cap: C$23.19 million
Share price: C$0.095

Grid Battery Metals is a North America battery metals company with a portfolio of lithium projects in Nevada, US, including the Clayton Valley lithium project. The company also recently acquired the Grid copper-gold project in North-central British Columbia, Canada.

The project consists of 17 claims covering a total land package of 27,525 hectares in the Omineca Mining Division near Fort St. James. Grid announced on March 17 that it had completed the acquisition of the property from former Grid subsidiary AC/DC Battery Metals (TSXV:ACDC) in exchange for 5 million shares in Grid at C$0.05 per share as well as a C$48,172.15 payment for staking costs.

The property has seen minimal exploration, but a technical report for the site included a mineral resource estimate for the neighboring Kwanika-Stardust project owned by Northwest Copper (TSXV:NWST,OTC Pink:NWCCF).

The Kwanika Central Zone hosts measured and indicated resources of 385.7 million pounds of copper, 532,500 ounces of gold and 1.97 million ounces of silver from the open pit area, as well as 410.6 million pounds of copper, 738,000 ounces of gold and 1.9 million ounces of silver from the underground portion.

Shares in Grid saw gains this week, but the company’s most recent project-related news came on May 20, when it announced it had engaged with Hardline Exploration to begin to begin work at the property.

4. EMP Metals (CSE:EMPS)

Weekly gain: 54.17 percent
Market cap: C$40.79 million
Share price: C$0.37

EMP Metals is a lithium exploration and development company working to advance its EMP direct lithium extraction project in Saskatchewan, Canada. The project is composed of three prospective lithium brine properties covering an area of 81,000 hectares.

A February 2024 preliminary economic assessment for the lithium brines in the Viewfield area of Southern Saskatchewan suggests a resource of 130,056 metric tons of lithium in place from a total brine volume of 1.06 billion cubic meters.

The economics of the project indicate an after-tax net present value at a discount rate of 8 percent of C$1.44 billion with an internal rate of return of 45.1 percent over a payout period of 2.4 years.

Shares in EMP gained this past week after it announced on Thursday it entered into a deal with Saltwork Technologies to develop, build and operate a lithium refining demonstration plant at the Viewfield property.

Once complete, the plant will process 10 cubic meters per day of lithium brine into concentrated lithium chloride. Additionally, Saltworks will upgrade its lithium conversion plant in Richmond, British Columbia, to continuously process lithium chloride into lithium carbonate.

5. Mogotes Metals (TSXV:MOG)

Weekly gain: 54.05 percent
Market cap: C$48.46 million
Share price: C$0.285

Mogotes Metals is an explorer working to advance its Filo Sur copper-gold-silver project, which straddles the border between Argentina and Chile in the Vicuña copper district.

The Argentinean portion of the site, representing the bulk of the land package at 8,118 hectares, is the subject of an earn-in agreement with Golden Arrow Resources (TSXV:GRG,OTCQB:GARWF), a member of the Grosso Group.

On March 26, Mogotes announced that it had closed an amended deal that would provide the company with 100 percent ownership of the project. Under the terms of the deal, Mogotes paid Golden Arrow C$550,000 in cash, issued 10.71 million common shares and invested C$450,000 in Golden Arrow via a private placement. The terms also include future commitments.

The company’s most recent news came on May 12, when it announced that the first line of a geophysical survey had identified a large, near surface anomaly located 2.8 kilometers south of Lundin Mining’s (TSX:LUN,OTCQX:LUNMF) Filo Del Sol project.

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many mining companies are listed on the TSX and TSXV?

As of February 2025, there were 1,572 companies listed on the TSXV, 905 of which were mining companies. Comparatively, the TSX was home to 1,859 companies, with 181 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Business

Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

3 Mins Read

Amazon’s devices unit has a new team tasked with inventing “breakthrough” consumer products that’s being led by a former Microsoft executive who helped create the Xbox.

The ZeroOne team is spread across Seattle, San Francisco and Sunnyvale, California, and is focused on both hardware and software projects, according to job postings from the past month. The name is a nod to its mission of developing emerging product ideas from conception to launch, or “zero to one.”

Amazon has a checkered history in hardware, with hits including the Kindle e-reader, Echo smart speaker and Fire streaming sticks, as well as flops like the Fire Phone, Halo fitness tracker and Glow kids teleconferencing device.

Many of the products emerged from Lab126, Amazon’s hardware research and development unit, which is based in Silicon Valley.

The new group is being led by J Allard, who spent 19 years at Microsoft, most recently as technology chief of consumer products, a role he left in 2010, according to his LinkedIn profile. He was a key architect of the Xbox game console, as well as the Zune, a failed iPod competitor.

Allard joined Amazon in September, and the company confirmed at the time that he would be part of the devices and services team under Panos Panay, who left Microsoft for Amazon in 2023 to lead the group.

An Amazon spokesperson confirmed Allard oversees ZeroOne but declined to comment further on the group’s work.

The job postings provide few specific details about what ZeroOne is building, though one listing references working on “conceiving, designing, and bringing to market computer vision techniques for a new smart-home product.”

Another post for a senior customer insights manager in San Francisco says the job entails owning “the methodology and execution of concept testing and early feedback for ZeroOne programs.”

“You’ll be part of a team that embraces design thinking, rapid experimentation, and building to learn,” the description says. “If you’re excited about working in small, nimble teams to create entirely new product categories and thrive in the ambiguity of breakthrough innovation, we want to talk to you.”

Amazon has pulled in staffers from other business units that have experience developing innovative technologies, including its Alexa voice assistant, Luna cloud gaming service and Halo sleep tracker, according to Linkedin profiles of ZeroOne employees. The head of a projection mapping startup called Lightform that Amazon acquired is helping lead the group.

While Amazon is expanding this particular corner of its devices group, the company is scaling back other areas of the sprawling devices and services division.

Earlier this month, Amazon laid off about 100 of the group’s employees. The job cuts included staffers working on Alexa and Amazon Kids, which develops services for children, as well as Lab126, according to public filings and people familiar with the matter who asked not to be named due to confidentiality. More than 50 employees were laid off at Amazon’s Lab126 facilities in Sunnyvale, according to Worker Adjustment and Retraining Notification (WARN) filings in California.

Amazon said the job cuts affected a fraction of a percent of the devices and services organization, which has tens of thousands of employees.

This post appeared first on NBC NEWS

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In Politics

Trump tariff plan faces uncertain future as court battles intensify

5 Mins Read

A federal appeals court paused a lower ruling blocking President Donald Trump’s sweeping tariffs, siding with the administration Thursday in a legal fight over the White House’s use of an emergency law to enact punishing import taxes. 

The back-and-forth injected more volatility into markets this week after several weeks of relative calm, and court observers and economists told Fox News Digital they do not expect the dust to settle any time soon. 

Here’s what to know as this litigation continues to play out.

What’s happening now?

The U.S. Court of Appeals for the Federal Circuit temporarily stayed a lower court ruling Thursday that blocked two of Trump’s sweeping tariffs from taking force.

The ruling paused a decision by the U.S. Court of International Trade (CIT) allowing Trump to continue to enact the 10% baseline tariff and the so-called ‘reciprocal tariffs’ that he announced April 2 under the International Emergency Economic Powers Act, or IEEPA.

It came one day after the U.S. Court of International Trade ruled unanimously to block the tariffs.

Members of the three-judge panel who were appointed by Trump, former President Barack Obama and former President Ronald Reagan, ruled unanimously that Trump had overstepped his authority under IEEPA. They noted that, as commander in chief, Trump does not have ‘unbounded authority’ to impose tariffs under the emergency law. 

Now, lawyers for the Trump administration and the plaintiffs are tasked with complying with a fast schedule with deadlines in both courts. Plaintiffs have until 5 p.m. Monday to file their response to the Court of International Trade, according to Jeffrey Schwab, senior counsel and director of litigation of the Liberty Justice Center, which represents five small businesses that sued the administration. 

The Court of Appeals for the Federal Circuit gave plaintiffs until Thursday to file a response to the stay and the Trump administration until June 9 to file a reply, Schwab told Fox News Digital in an interview. 

The goal is to move expeditiously, and lawyers for the plaintiffs told Fox News they plan to file briefs to both courts before the deadlines to mitigate harm to their clients.

‘Hopefully,’ Schwab said, the quick action will allow the courts to issue rulings ‘more quickly than they otherwise would.’

What’s at stake?

The Trump administration praised the stay as a victory.

The appellate court stay on the CIT ruling ‘is a positive development for America’s industries and workers,’ White House spokesman Kush Desai said in a statement.

‘The Trump administration remains committed to addressing our country’s national emergencies of drug trafficking and historic trade deficits with every legal authority conferred to the president in the Constitution and by Congress.’

But some economists warned that continuing to pursue the steep tariffs could backfire. 

The bottom line for the Trump administration ‘is that they need to get back to a place [where] they are using these huge reciprocal tariffs and all of that as a negotiating tactic,’ William Cline, an economist and senior fellow emeritus at the Peterson Institute for International Economics, said in an interview. 

Cline noted that this had been the framework laid out earlier by Treasury Secretary Scott Bessent, who had embraced the tariffs as more of an opening salvo for future trade talks, including between the U.S. and China. 

‘I think the thing to keep in mind there is that Trump and Vance have this view that tariffs are beautiful because they will restore America’s Rust Belt jobs and that they’ll collect money while they’re doing it, which will contribute to fiscal growth,’ said Cline, the former deputy managing director and chief economist of the Institute of International Finance.

‘Those are both fantasies.’

What happens now?

Plaintiffs and the Trump administration wait. But whether that wait is a good or bad thing depends on who is asked.

Economists noted that the longer the court process takes, the more uncertainty is injected into markets. This could slow economic growth and hurt consumers. 

For the U.S. small business owners that have sued Trump over the tariffs, it could risk potentially irreparable harm.

‘Some of the harm has already taken place. And the longer it goes on, the worse it is,’ said Schwab. 

The White House said it will take its tariff fight to the Supreme Court if necessary. But it’s unclear if the high court would choose to take up the case.

The challenge comes at a time when Trump’s relationship with the judiciary has come under increasing strain, which could make the high court wary to take on such a politically charged case. 

Lawyers for the plaintiffs described the case as ‘very likely’ to be appealed to the Supreme Court, but it’s unclear whether it will move to review it.

‘It’s possible that because the case is before the Federal Circuit Court of Appeals, which essentially applies to the country, unlike specific appellate courts, which have certain districts, that the Supreme Court might be OK with whatever the Federal Circuit decides and then not take the case,’ Schwab said. 

For now, the burden of proof shifts to the government, which must convince the court it will suffer ‘irreparable harm’ if the injunction remains in place, a high legal standard the Trump administration must meet.

Beyond that, Schwab said, the court will weigh a balancing test. If both sides claim irreparable harm, the justices will ask, ‘Who is irreparably harmed more?

‘And I think it’s fair to say that our clients are going to be more irreparably harmed than the United States federal government. Because our clients might not exist, and the United States federal government is certainly going to exist.’

This post appeared first on FOX NEWS

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