HAPPY TUESDAY TO THE STREET.
Have toymakers cracked the code to tariff-free toys? The likes of Hasbro $HAS ( ▼ 3.25% ), Mattel $MAT ( ▼ 2.48% ), and LEGO sure think so — and the formula is simple.
Step 1: Enlist fine artists like Madsaki, Mark Ryden, and Takashi Murakami to design reimagined versions of classic toys.
Step 2: Slap an exorbitant price tag on them, catering to adult collectors instead of kids. (Think $70 Hot Wheels, $350 Barbie dolls, and $8000 LEGO sets.)
Step 3: …Profit???
🟥 | US stocks slipped after President Trump demanded an unconditional surrender from Iran in its conflict with Israel.
📈 | One Notable Gainer: Electronics parts maker Jabil $JBL ( ▲ 8.89% ) paced the S&P 500 after smashing earnings expectations on the back of AI data center demand.
📉 | One Notable Decliner: Clean energy stocks like Enphase Energy $ENPH ( ▼ 23.97% ) and First Solar $FSLR ( ▼ 17.89% ) powered down after the US Senate proposed a new version of the budget bill that would fully phase out solar and wind power tax incentives by 2028.
— Brooks & Cas
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STOCK HEATMAPS
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
Market Movers
JETBLUE, CHEVRON, T-MOBILE
$JBLU ( ▼ 7.88% ) JetBlue to cut more flights, other costs with break-even 2025 ‘unlikely’ due to weaker travel demand (CNBC)
$CVX ( ▲ 1.93% ) Chevron enters lithium sector with acreage buy in Texas, Arkansas (Reuters)
$TMUS ( ▼ 4.14% ) SoftBank Sells T-Mobile Stake for $4.8 Billion to Bet on AI (Bloomberg)
$LLY ( ▼ 2.02% ) / $VERV ( ▲ 81.5% ) Eli Lilly to Acquire Verve Therapeutics for Up to $1.3 Billion (WSJ)
$RUN ( ▼ 40.04% ) / $SEDG ( ▼ 33.45% ) Sunrun, First Solar, and SolarEdge Stocks Trade Down (YF)
OVERHEARD ON THE STREET
AP: Retail sales fell 0.9% in May as Americans curbed spending after a spring surge to beat Trump’s tariffs, particularly on imported cars.
Fortune: Central banks, especially in the Global South, are accelerating moves from USD reserves toward gold.
CNBC: The price of gold is hovering near an all-time high, while silver’s jumped to its highest since 2012, amid geopolitical turmoil.
Reuters: Trump said he will likely extend the deadline for ByteDance to divest TikTok’s US assets, citing political benefits.
WSJ: Trump’s deportation efforts are clashing with economic realities, as industries reliant on undocumented workers suffer labor shortages.
Tomorrow's Trade Idea, Today
A RETAILER AMAZON CAN’T RAVAGE?
A Twelve-to-One Market Beat
It’s no secret that the rise of Amazon $AMZN ( ▼ 0.59% ) in particular and e-commerce in general has helped drag down the once-mighty retail industry over the last decade.
Just consider: The SPDR S&P Retail ETF $XRT ( ▼ 1.06% ) has returned just 57% over the last 10 years, compared to the tech-heavy Nasdaq’s 297% run in the same time frame.
But one surprising retailer is bucking this trend in a big way. Not only has it beaten the S&P 500’s returns by more than 12-to-1 so far this year, it also grew earnings by more than 45% last quarter. And analysts are taking note.
A Fortune From Footwear?
Analysts are measuring the drapes for a long-term rally in shares of Coach-parent Tapestry $TPR ( ▼ 1.78% ), which are already up 25% year-to-date, compared to a mere 2% run from the S&P 500.
Last week, as reported by CNBC, TD Cowen $TD ( ▼ 0.21% ) upgraded the stock from Hold to Buy with a price target of $100, projecting an upside of more than 20% from today’s close.
Analysts cited brand momentum, record gross margins, and a major opportunity in the footwear market, which could “potentially reach $1 billion in revenue.”
The bank also believes the quarter-century-old fashion conglomerate is managing to maintain relevance among Gen Z. After all, what better way to celebrate gaining a foothold in the workforce than by buying a Coach bag?
Insiders Jumping Ship?
TD Cowen isn’t the only firm that’s bullish on Tapestry shares. JPMorgan $JPM ( ▼ 0.31% ) issued an even higher price target of $104 on Monday.
But did company insiders get these analysts’ memos? Filings on insider activity show that precisely zero company insiders bought shares over the last three months, while over 50,000 shares were sold.
Of course, everyone has liquidity events, CEOs and other insiders included. The spate of selling might be a coincidence. However, as fabled investor Peter Lynch once noted, management can sell shares for all kinds of reasons. But they only buy for one: They think the shares will go up.
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ON OUR RADAR
AP: The Senate is expected to pass bipartisan legislation regulating stablecoins without addressing Trump’s investments.
Bloomberg: Elon Musk’s xAI expects to burn over $1B monthly in 2025, highlighting AI’s extreme capital demands amid minimal early revenue.
CNN: Amazon reduce its workforce over time by automating roles and reshaping job functions.
The Verge: OpenAI secured a $200M Pentagon contract to develop AI tools for cyber defense and national security.
CNBC: JPMorgan unveiled new perks for its Sapphire Reserve card and raised the annual fee to $795 in a push to retain affluent customers.
MONDAY’S POLL RESULTS
Are you bullish or bearish on Celsius Holdings $CELH ( ▲ 1.54% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐻 Bearish — “Energy drinks are all the same except for marketing. The durability of any brand on the market tends not to be long.”
This message is a paid advertisement for Boxabl Inc. The Street Sheet (SS) receives a flat fee from Ad Astra Media totaling up to $5,250. Other than the compensation received for this advertisement sent to subscribers, The Street Sheet and its principals are not affiliated with Boxabl Inc. This advertisement is sponsored by a third-party Reg A crowdfunding issuer and is for informational purposes only. The Street Sheet does not endorse or recommend any specific offering, and this advertisement should not be construed as a recommendation to invest. Investing in securities, including those offered through Reg A crowdfunding, involves risk, including the potential loss of principal. These investments are speculative, illiquid, and may involve a higher degree of risk compared to more traditional investments. The Street Sheet has not verified the information provided by the advertiser, and we encourage readers to conduct their own due diligence and consult with a licensed financial advisor or other qualified professional before making any investment decision. By engaging with this advertisement, you acknowledge that The Street Sheet and its affiliates are not responsible for any decisions or actions taken based on the information provided in this advertisement. All investments carry risks, and past performance is not indicative of future results. Readers should carefully review all information provided by the issuer, including the offering circular and any other available materials, prior to investing. The Street Sheet may receive compensation from the advertiser for promoting this offering. The Street Sheet and its principals do not own any of the stocks or shares mentioned in this email or in the article that this email links to. The Street Sheet is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided in this newsletter is not guaranteed as to its accuracy or completeness. Each user of SS chooses to do trades at their sole discretion and risk. SS is not responsible for gains/losses that may result in the trading of these securities. This newsletter includes paid advertisements. The source of all third-party content in which SS receives some sort of compensation is clearly and prominently identified herein as "ad", "Sponsored", or “Together With”. Although we have sent you these advertisements, SS does not specifically endorse any third-party product nor is it responsible for the content, the accuracy, or the completeness of the advertisement or the experience with the third-party advertiser. Furthermore, we make no guarantee or warranty about what is in the advertisement. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. This communication from The Street Sheet is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of The Street Sheet. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. The information contained in this newsletter is subject to change without notice, and we do not undertake any obligation to update it. Readers are encouraged to conduct their own research and due diligence and seek advice from licensed professionals regarding their specific financial needs and circumstances. By reading this newsletter, you agree to hold us harmless from any and all losses, liabilities, costs, or expenses arising from your use or reliance on the information provided. There is no warranty as to the accuracy or completeness of the factual matters included in any advertisement or sponsored content in the newsletter. You have not performed any research on any entity, or its business, that advertises or submits any sponsored content. The Street Sheet is reader-supported. When you buy through links on our site, we may earn a commission.
