HAPPY MONDAY TO THE STREET.

A credit downgrade, rising yields, and premarket panic? Just another manic Monday on Wall Street. Moody’s dropped the U.S. credit rating a notch, sparking a bond selloff that sent yields flying—and stocks briefly spiraling. But investors shrugged it off by lunchtime, as the market caught its breath and staged a modest rebound.

• 🟩 | US stocks edged higher as bond yields cooled off from their midday spike.

• 📈 | One Notable Gainer: UnitedHealth $UNH ( ▲ 1.35% ) jumped after last week’s 23% drop, despite DOJ scrutiny, CEO exit, and suspended 2025 guidance.

• 📉 | One Notable Decliner: Reddit $RDDT ( ▲ 0.68% ) fell after Wells Fargo downgraded the stock, citing long-term AI-related search traffic risks.

— Brooks & Cas

Sponsored by BOXABL

COULD THIS COMPANY DO FOR HOUSING WHAT TESLA DID FOR CARS?

Most car factories like Ford or Tesla reportedly build one car per minute. Isn’t it time we do that for houses?

BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market by bringing assembly line automation to the home industry.

Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq*

BOXABL has raised over $170M from over 40,000 investors since 2020. They recently achieved a significant milestone: raising over 50% of their Reg A+ funding limit! BOXABL is now only accepting investment on their website until the Reg A+ is full.

Invest now before it’s too late

Disclosure: This is a paid advertisement for BOXABL’s Regulation A offering. Please read the offering circular here. This is a message from BOXABL

*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.

STOCK HEATMAPS

Market Movers

DOLLAR GENERAL, BEST BUY, BIOGEN

$DG ( ▲ 0.57% ) Discount Retailer Dollar General Stock Gets RS Rating Lift (IBD)

$BBY ( ▲ 0.09% ) Best Buy Price Target Lowered Amid Market Uncertainty | BBY Stock News (GuruFocus)

$BIIB ( ▼ 1.54% ) Biogen Inc. Shares Acquired by ProShare Advisors LLC (MarketBeat)

$PLTR ( ▲ 6.43% ) Palantir Stock Slides Monday After Hitting Record High Last Week (Investopedia)

$FSLR ( ▲ 2.03% ) First Solar Shares Dip Amid Concerns Over Tax Credit Timeline (GuruFocus)

OVERHEARD ON THE STREET

CNBC: Paramount $PARA ( ▲ 0.12% ) ousted CBS News CEO Wendy McMahon amid tensions with Shari Redstone over editorial and political disputes.

Reuters: Moody’s U.S. credit downgrade had a muted impact on corporate bonds, with only slight spread widening and softer new issuance.

CNN: Regeneron $REGN ( ▼ 19.28% ) will acquire bankrupt 23andMe for $256M, pledging to protect user genetic data amid privacy concerns.

WSJ: JPMorgan $JPM ( ▼ 0.12% ) execs showcased strategy and vied for Jamie Dimon’s CEO role at the bank’s annual investor day.

Reuters: Nippon Steel plans $14B investment in U.S. Steel $X ( ▼ 0.6% ), including $4B for a new mill—pending Trump admin approval of its takeover bid.

Tomorrow's Trade Idea, Today

ALIBABA MAY BE BACK

Surge to Stumble

Alibaba’s (BABA) ADR dropped 7.6% after its FY Q4 earnings fell short of expectations. Revenue was up 7% year-over-year to $32.58 billion, but missed analysts’ forecasts. Net income was underwhelming, as well, coming in at $1.71 billion, well below the expected $2.93 billion.

This dip came after a strong YTD rally of about 60%, suggesting investor expectations were high. Concerns about China’s economic health and ongoing tariff tensions continue to cloud sentiment, causing volatility despite Alibaba’s relatively strong fundamentals.

Bright Spots

Despite headlines showing that it had missed its mark, Alibaba showed strength in multiple key areas. Its core Taobao and Tmall Group grew revenue by 9%, while its cloud business posted 18% growth, both outpacing expectations. Other segments like international commerce and digital media rose over 20%.

Analysts remain bullish with Benchmark’s Fawne Jiang and Citi’s © Alicia Yap maintaining buy ratings and price targets of $190 and $169, respectively. Shareholder returns have been strong, with nearly $12 billion in buybacks and a two-part $4.6 billion dividend slated for July.

There’s Still Value

Alibaba is currently sitting at an attractive valuation with a forward P/E ratio of 13, just over half its five-year average. Analysts are predicting 10% earnings growth this year and 12% in 2026. Its average price target sits at $165, suggesting around 34% upside. 

The stock’s history of volatility and exposure to Chinese economic policy and trade dynamics mean more swings are likely. However, long-term catalysts like AI innovation and Beijing’s pro-growth stance suggest a positive outlook for the stock.

ON OUR RADAR

CNBC: Netflix $NFLX ( ▲ 0.64% ) will stream new and past Sesame Street episodes, taking over from HBO Max as Warner Bros. Discovery exits the deal.

AP: The UK and EU signed new defense and trade deals, marking closer ties five years after Brexit in a bid to boost economic growth.

WSJ: China’s economy slowed in April amid U.S. trade tensions, though a 90-day tariff truce may offer a short-term boost.

AP: Trump’s tax bill faces GOP infighting as conservatives push for deeper cuts, with House leaders racing to meet a Memorial Day deadline.

Axios: Starbucks $SBUX ( ▼ 0.55% ) launches summer drinks Tuesday amid menu cuts and slumping sales, hoping to reignite traffic with seasonal favorites.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on Netflix (NFLX) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “Continued growth and expansion into other things like live sports events, restaurants, and entertainment venues.”