HAPPY THURSDAY TO THE STREET.

On the spectrum of β€œlegitimate career pivot” to β€œrich-guy fantasy”, want to guess where billionaire Bill Ackman’s pro tennis debut with Jack Sock landed? Hint: The match lasted 67 minutes and ended in a decisive defeat. Shut up and trade, Bill.

  • 🟩 | It was another record day for the S&P 500 and Nasdaq Composite as investors shrugged off tariff fears to extend the market’s recent rally.

  • πŸ“ˆ | One Notable Gainer: Airline stocks took off after Delta $DAL ( β–Ό 0.23% ) reinstating its 2025 profit outlook on stabilizing air travel demand. Shares of United $UAL ( β–Ό 4.34% ) similarly soared.

  • πŸ“‰ | One Notable Decliner: Police equipment maker Axon Enterprise $AXON ( β–Ό 0.46% ) has been garnering positive investor interest lately, thanks to the Trump administration’s law enforcement policies, but it led the S&P 500 in declines today. Pessimism, or just profit-taking?

Finally, read to the end for the company whose market cap is nearly 4% of the US’s GDP…

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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

AMD, AUTODESK, WK KELLOGG

$AMD ( β–² 1.57% ) AMD’s stock is rallying as an analyst makes his case for a 40% gain from here (MarketWatch)

$ADSK ( β–Ό 2.0% ) Autodesk Weighs Takeover of Engineering Software Firm PTC (Bloomberg)

$KLG ( β–² 0.13% ) Froot Loops maker WK Kellogg agrees to $3.1 billion deal from Italy's Ferrero (Reuters)

$HELE ( β–Ό 5.89% ) Helen of Troy shares crater as Q1 sales hit by tariff headwinds (SeekingAlpha)

$MP ( β–Ό 0.27% ) Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge (CNBC)

OVERHEARD ON THE STREET

CNN: President Trump threatened Brazil with a 50% tariff unless it halts the prosecution of its former President Jair Bolsonaro.

Reuters: Bitcoin hit a new all-time high today, driven by surging institutional demand and Trump’s pro-crypto policies.

CNBC: The White House accused Fed Chair Jerome Powell of mismanagement and misleading Congress over costly HQ renovations.

Bloomberg: Nike $NKE ( β–Ό 2.67% ) will replace Converse’s CEO in an effort to revive the brand after a prolonged sales slump.

BBC: Video game actors ended their year-long strike after SAG-Aftra secured AI safeguards, better pay, and safety terms.

Tomorrow's Trade Idea, Today

JPMORGAN BETS ON BLOOM

Tax Credit Boost

Conventional wisdom says the newly passed US budget bill will harm green energy stocks. JPMorgan $JPM ( β–Ό 0.46% ) just named an exception that might prove the rule.

The bank upgraded Bloom Energy $BE ( β–Ό 1.74% ) shares from Neutral to Overweight, citing strong tailwinds from the Trump administration’s tax-and-spending bill.

The firm also raised its price target to $33, implying more than 27% upside from current prices.

Value at a Discount

The key driver behind the forecasted growth: fuel cells. The β€œclean” technology β€” Bloom Energy’s bread-and-butter β€” will unexpectedly qualify for 48E tax credits under the new bill.

Bloom is known for using solid oxide fuel cells to generate electricity, and could see an uptick in orders as a result, according to analyst Mark Strouse. Strouse also pointed out that Bloom Energy is currently trading at a discount. Its price tag of 15x estimated 2026 EV/EBITDA is well below its historical averages of 18-22x.

Strouse believes this undervaluation is unwarranted, especially as high gas turbine prices and long lead times make its clean power solutions more attractive in the marketplace.

He also projected that customer hesitancy will begin to fade as rising power demand and new tax incentives drive orders. As a clearer picture of its future revenue outlook improves, Strouse expects its valuation multiple to increase.

Market Reaction

Investors reacted positively to JPMorgan’s upgrade, sending shares nearly 18% higher on Wednesday. But its stock is down sharply today β€” potentially another entry point for bulls who missed the initial rally.

However, analysts remain split. Of the 24 analysts covering the stock, just 12 rate Bloom a Buy or Strong Buy, while the other half maintain Hold or Underperform ratings.

It’s a tough time to buy clean energy stocks with conviction. But if JPM is to be believed, gains in the sector may still come into bloom.

Are you bullish or bearish on Bloom Energy (BE) over the next 12 months?

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ON OUR RADAR

AP: Millions of US workers may qualify for new tax deductions on tips and overtime under Trump’s spending bill.

Fortune: With Linda Yaccarino stepping down as CEO of X, Polymarket users are split on her successor.

BI: Fears over Trump’s immigration policies are disrupting summer travel, especially for international visitors.

Bloomberg: Trump’s surprise 50% tariff threat on Brazil risks disrupting global commodity markets, including coffee and beef.

WSJ: Volkswagen’s $VWAGY ( β–² 0.09% ) electric bus, once positioned as its US flagship, has effectively flopped. Here’s why.

STREET TWEET

Entry to the $4T club doesn’t come cheap.

At this point, just give Jensen a seat at the G7.

WEDNESDAY’S POLL RESULTS

Will copper prices outperform equities over the next 12 months?

β–‡β–‡β–‡β–‡β–‡β–‡ πŸ‘ Yes

β–‡β–‡β–‡β–‡β–‡β–‡Β πŸ‘Ž No

And, in response, you said:

  • πŸ‘ Yes β€”Β β€œCopper will be in strong demand with the advent of AI as well as EV demand in the coming years.”

Reply

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