HAPPY MAY DAY TO THE STREET
Apple (AAPL) is dancing on its desk after raising guidance, with the iPhone 17 lineup leading the pack and the new MacBook Neo blowing past expectations. Tim Cook calls it the most popular iPhone slate ever, with just months left before he hands over the keys in September.
🟨 | US stocks were mixed as strong big-tech earnings and a drop in oil on Iran deal chatter kept risk appetite high, pushing the S&P and Nasdaq to fresh intraday records, while the Dow slipped.
📈 | One Notable Gainer: Atlassian (TEAM) soared after lifting full-year revenue growth guidance to about 24%.
📉 | One Notable Decliner: Roblox (RBLX) tanked after slashing its full-year bookings outlook.
— Brooks & Cas
MARKET SNAPSHOT
WHICH COMPANIES WILL THE US TAKE A STAKE IN THIS YEAR?
Uncle Sam is shopping for stakes again, and Spirit Airlines (SAVE) is the only name with even coin-flip odds. Trump dropped a "final" bailout proposal, with up to 90% of the budget carrier potentially on the line. Everyone else on the watchlist gets to keep their cap tables intact.
Market Movers
TWILIO, VEEVA SYSTEMS, REDDIT
📈 | Twilio (TWLO) blew past Q1 estimates and guided current-quarter revenue above the Street.
📈 | Reddit (RDDT) topped Q1 daily active user estimates and projected current-quarter EBITDA above consensus.
📉 | Rivian (RIVN) slid despite topping Q1 estimates and reaffirming full-year delivery guidance.
📉 | Clorox (CLX) cut its full-year profit outlook on weakening consumer spending.
Tomorrow's Trade Idea, Today
READY TO ROKU AND ROLL
Stock Spotlight
Stock: (ROKU)
Current Price: $124
Price Target: $150
Implied Upside: 21%
Looking for ideas with higher upside potential? Street Sheet Research members get 3 stock picks from the Top 30% of analysts with 30%+ implied upside each week. Subscribe today.
Pressing Play
Roku is back on Wall Street's good side. Morgan Stanley reiterated its Overweight rating, and Bank of America held its Buy. Both raised their price target to $150 after first-quarter revenue of $1.25 billion topped estimates and adjusted EBITDA of $148.4 million cleared the consensus call.
Ad Astra
Morgan Stanley analyst Sean Diffley sees more room to run. He flagged Roku's conservative full-year guide and midterm political ad budgets as catalysts for the back half. Diffley expects US connected TV ad growth to re-accelerate to roughly 20% in 2026, helped by sports, ad loads, and the steady migration off linear TV.
Long Way Up
Bank of America's Brent Navon agrees, pointing to sports investment and demand-side ad partnerships with Trade Desk (TTD), Amazon (AMZN), and Google (GOOGL) as the platform's edge. Roku shares are in the green this year and sit at a 52-week high. But the stock still trades at roughly a quarter of its 2021 peak, so the climb isn't over.
Do you own any shares of Roku (Roku)?
OVERHEARD ON THE STREET
🚗 | Trump is hiking tariffs on EU cars and trucks to 25% next week, accusing Brussels of breaking last year's trade deal.
Before June: 1.4%
Before July: 3.5%
Before August: 6%
Before 2027: 14%
🤖 | The Pentagon signed classified AI deals with seven major tech firms but iced out Anthropic over its insistence on safety guardrails.
🏓 | Pickleball Inc. raised $225 million from Apollo Global Management's (APO) new sports fund and Tom Dundon at a $750 million valuation.
🥤 | Smoothie King is opening 90 new stores this year on GLP-1 driven protein and fiber demand.
💸 | Tesla (TSLA) reported Elon Musk's 2025 compensation as $158 billion, but his actual realized pay was zero.
THURSDAY’S POLL RESULTS
Do you own any shares of Microsoft (MSFT)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “They’ve been down as of late, but it’s been a dependable place to park money over the past several years - I don’t see that changing.”
👀 No, but I’m interested — “Before now, I was content to own MSFT through various funds - I'm thinking I may pick some up at the current price.”
🐂 Yup, I’m holding — “Long-term investment with a proven track record and good returns.”
