HAPPY MONDAY TO THE STREET.

Electric vehicles may save drivers on gas — but not on resale value.

EVs lose about 13% more than gas cars over five years, thanks to steep incentives, fast-moving tech, and limited buyer pools.

But that could soon change. With $30,000 options from Ford $F ( ▲ 0.59% ) and Chevy $GM ( ▼ 0.65% ) on deck, the next EV cycle might actually hold its charge.

  • 🟩 | US stocks rose today as traders eyed a potential end to the shutdown and a busy slate of earnings and inflation data.

  • 📈 | One Notable Gainer: Apple $AAPL ( ▲ 3.94% ) rose after iPhone 17 sales outpaced iPhone 16 in the US and China.

  • 📉 | One Notable Decliner: Applovin $APP ( ▼ 5.57% ) fell after the New York Post reported renewed regulatory scrutiny of its consumer data practices.

Plus, why is clean energy outpacing the S&P 500 under Trump 2.0? Scroll down for more.

— Brooks & Cas

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MARKET SNAPSHOT

All Stock Heatmap. Credit: Finviz

Market Movers

ROBINHOOD, ORACLE, AMD

Robinhood $HOOD ( ▲ 4.53% ) jumped after filings showed several large investors raised their stakes.

Oracle $ORCL ( ▼ 4.85% ) fell after JPMorgan downgraded its credit rating.

AMD $AMD ( ▲ 3.21% ) gained after Bank of America lifted its price target.

Summit Therapeutics $SMMT ( ▼ 4.55% ) reported higher-than-expected R&D expenses and weaker partner trial data.

Archer Aviation $ACHR ( ▲ 6.58% ) signed a deal with Korean Air to commercialize its Midnight eVTOL aircraft.

To monitor hot stocks in real time, check out The Street Feed.

UPGRADES & DOWNGRADES

📈 Upgrades

📉 Downgrades

This is just a fraction of the calls we feature all day on The Street Feed. Street Sheet Research Subscribers can see why the analysts upgraded or downgraded the stocks above and updated price targets. Get immediate access today.

Tomorrow's Trade Idea, Today

ALLY GETS A CREDIT BOOST

TD Cowen Turns Bullish

TD Cowen $TD ( ▲ 0.86% ) just upgraded Ally Financial $ALLY ( ▲ 1.71% ) to Buy. Analyst Moshe Orenbuch lifted his price target to $50 from $43, implying 22% upside from current levels. He believes the online bank’s credit outlook has finally turned the corner.

The call follows Ally’s stronger-than-expected third-quarter results. The online bank posted adjusted earnings of $1.15 per share on $2.2 billion in revenue, beating analyst estimates on both fronts.

Orenbuch said the results confirm that Ally has regained its footing after a tough credit cycle and can now grow its return on tangible common equity to mid-teens levels within two years — if not sooner.

Credit Quality on the Mend

Ally’s credit risk peaked during 2022’s looser lending environment. Since tightening its underwriting early last year, the company has shifted heavily toward higher-quality originations.

By the end of the fourth quarter, Orenbuch expects prime loans from 2024–2025 vintages to make up 65% of Ally’s retail auto portfolio, while older, riskier loans shrink to around 10%.

He also noted that while subprime credit performance across the industry remains shaky, Ally and peers like Capital One $COF ( ▲ 1.67% ) have shown steady improvement. The company’s stronger loan mix should help support stable margins and reduced loss provisions.

Rates, Margins, and Momentum

Expanding net interest margins are another reason for optimism. TD Cowen expects continued margin growth through 2026 as rates ease, funding costs fall, and older assets are replaced with higher-yielding loans.

After a challenging stretch for digital lenders, Ally’s comeback story seems to be gaining traction — and TD Cowen thinks this one’s finally ready to drive higher.

Are you bullish or bearish on Ally Financial (ALLY) over the next 12 months?

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OVERHEARD ON THE STREET

Reuters: Amazon Web Services $AMZN ( ▲ 1.62% ) suffered a major outage that disrupted major websites and Amazon services before partial recovery.

Axios: Argentina’s central bank confirmed a $20B currency swap with the US Treasury to stabilize its economy, even as the peso keeps weakening.

WSJ: Molson Coors $TAP ( ▼ 1.54% ) will cut about 9% of its Americas workforce, or 400 jobs, to refocus on growth and new product categories.

TechCrunch: Meta AI’s $META ( ▲ 2.13% ) mobile app surged to 2.7M daily users and 300K daily downloads, up sharply from last month.

QZ: Charmin $PG ( ▲ 0.37% ) reintroduced its 1,700-sheet Forever Roll, which lasts about a month and holds 32 times more paper than a standard roll.

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RESEARCH REVIEW: WHIPSAWING SENTIMENT

Didn’t receive our Street Sheet Research report last weekend?

Here are some of the pressing questions we answered:

  • Why is clean energy outpacing the S&P 500 under Trump 2.0?

  • What makes one psychedelics firm “potentially game-changing"?

  • Which blue-chip mega-rally went “"too far, too fast"?

And many more. Get these answers, along with instant access to our source for real-time investing info, The Street Feed, and our first-ever Equity Research Report, An Aging America. Sign up for Street Sheet Research today.

STREET TWEET

Love in the time of AWS outages.

When the servers in us-east-1 crashed, so did millions of lonely hearts…

FRIDAY POLL RESULTS

Are you bullish or bearish on Zions Bancorporation $ZION ( ▲ 4.65% ) stock over the next 12 months?

▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

  • 🐂 Bullish — “Hoping to see solid companies/high dividends perform as interest rates fall.”

    🐻 Bearish — “Most companies will soon start getting hit with the damage tarrifs create. Inflation will soar, the consumer will retreat. The US will become increasingly isolated from global markets and US companies will suffer.”

Reply

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