HAPPY SUNDAY TO THE STREET.
Jeff Bezos parked the Amazon money printer in Venice this weekend, and the receipts would make a doge blush. The $50 million, three-day “I-do” fest spans a cloister cocktail hour, a black-tie vow swap on a private island, and a foam-and-Gatsby mash-up that’s already ruffling Venetian feathers.
Guest list reads like a Fortune cover—Oprah, DiCaprio, Gates, half the Kardashians—while locals tally super-yacht wake damage and Bezos pledges a token €2 million to lagoon science. In short: Venice got Prime-d.
— Brooks & Cas
AMBARELLA SURGES
You Can Come Under My Ambarella
Ambarella $AMBA ( ▼ 1.48% ) soared nearly 30% this week after Bloomberg reported it may be looking for a buyer. The chip design maker gained over 20% on Tuesday, though it's still down over 7% so far this year.
The journalists cited sources “familiar” with the company’s intentions. A deal may or may not be forthcoming, but Ambarella could appeal either to another semiconductor maker or a private equity outfit.
The company’s semiconductor chips are designed for artificial intelligence applications, an area of hot investment activity recently.
On The Edge
Ambarella specializes in "Edge AI" which uses AI on real devices rather than cloud servers. According to its website, it extracts data from video streams to make cameras smarter. Its tech has applications for several sectors, including automotive, security, and the Internet of Things.
The Motley Fool suggests Ambarella may be an under-the-radar AI stock. However, the company still faces significant headwinds in the form of competition and US export curbs against certain Chinese companies.
Bloomberg says 60% of its revenue comes from Taiwan-based WT Microelectronics. Being so reliant on a single partner could prove a weakness.
On Sale?
The Santa Clara-based firm's May earnings report exceeded analyst expectations, largely on the back of strong Edge AI performance.
The company is not yet profitable, but analysts believe it can deliver a 28% revenue growth in 2025. Overall, sentiment is relatively upbeat, with 7 out of 11 analysts giving it a Buy rating, per TipRanks. The remaining 4 say it is a Hold.
This week's news certainly gave Ambarella a boost. But given that there's no deal on the table, the rally might be more brief boosterella than an actual acquisition.
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EA GAMES SCORE
On The Battlefield
Electronic Arts $EA ( ▲ 1.24% ) has the potential for double-digit earnings growth over the next three years, according to Roth Capital. Analyst Eric Handler thinks the company is ready to up its game.
In a note this week, Handler upgraded the stock from Neutral to Buy.
He also increased his price target for the interactive entertainment software company from $175 to $185. That's a 17% upside on Friday's close.
He said a successful launch of its new Battlefield game could be key to potential "outperformance." The analyst said the game, which had underdelivered in previous versions, was now well-positioned to succeed.
Sports a Winner
Sports-based interactive games are a cornerstone of the company's business. Its EA Sports FC and Madden NFL franchises have consistently delivered revenue-wise.
However, Handler believes other projects are ready to pick up the ball and run with it. Per CNBC, that optimism goes beyond the upcoming release of Battlefield. He also thinks new variations of The Sims could drive growth, as well as Skate and Star Wars: Zero Company.
EA's latest results exceeded analyst expectations. Andrew Wilson, Chairman & Chief Executive Officer, told investors it had been a "pivotal" year for the company's entertainment pipeline, including the 25th birthday of The Sims.
Game On
EA is up around 8% year-to-date, outperforming the S&P 500. Analysts are generally upbeat on the stock, with market data indicating a Moderate Buy, per TipRanks.
The launch of EA's new Battlefield game could be a pivotal point for the company. However, gaming can be a fickle market, and the company needs to stay fresh to keep its market share. Right now, it seems there's a lot to play for.
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LYFT’S BEST RIDE YET?
Street’s New Favorite
TD Cowen just gave Lyft $LYFT ( ▲ 0.25% ) a major vote of confidence. Analyst John Blackledge upgraded the stock to Buy from Hold, naming it the firm’s “Best Smidcap Idea for 2025.” He raised his price target from $16 to $21, which implies a more than 33% upside from Friday’s close. For reference, Blackledge’s ratings have yielded an average return of 13.10% per TipRanks.
Autonomous vehicle competition is heating up, and Blackledge argues that rising AV adoption should expand overall demand for ride-sharing, rather than cut into Lyft’s prospects.
Tesla $TSLA ( ▼ 1.85% ) recently launched its robo-taxi program in Austin, while Uber $UBER ( ▲ 1.93% ) and Alphabet’s $GOOG ( ▼ 0.49% ) Waymo just rolled out a self-driving taxi service in Atlanta.
Lyft, for its part, is gearing up to deploy AVs in Atlanta this summer and is planning an expansion into Dallas next year. The company has AV partnerships lined up with Mobileye and Marubeni and expects pricing to become more competitive as supply ramps up.
Riding the Trend
TD Cowen sees Lyft’s story as more than just a battle for market share. While Uber still dominates with about 70% of the US market, Lyft’s 30% slice isn’t shrinking, and the firm doesn’t expect much change in the near term. Blackledge’s thesis? Lyft doesn’t need to catch up to Uber to deliver returns for investors.
Instead, he highlights Lyft’s push into international markets and strategic partnerships. The company recently completed its acquisition of Freenow, a German taxi-hailing app, broadening its global footprint. That could open new avenues for growth, especially as the ride-hailing market matures.
Lyft's focused approach, especially in AV integration and geographic expansion, could help it carve out a meaningful path — even without a dramatic market share shake-up.
Targets in Sight
Management remains upbeat on Lyft’s trajectory. According to Barron’s, the company is on track to meet its 2027 goals. Those include $25 billion in gross bookings and GAAP profitability sometime between 2025 and 2027.
Blackledge’s optimism rests on multiple growth levers, including AV expansion, international moves, and broader consumer adoption. Investors might not need Lyft to dominate the road — just to stay in its lane and keep cruising forward.
LAST WEEK’S POLL RESULTS
Are you bullish or bearish on Pinterest $PINS ( ▼ 0.25% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “For now, it’s a buy!”
🐻 Bearish — “No thanks, Meta is bigger.”
Are you bullish or bearish on the IPO market in the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “Definitely need something to watch!”
🐻 Bearish — “Not buying it.”
Are you bullish or bearish on fintech/digital banking over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “Too early in the game.”
🐻 Bearish — “No way! Here today and gone tomorrow. Speculative.”
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