HAPPY SUNDAY TO THE STREET.

Warren Buffett finally revealed the reason for his shocking retirement:

He was simply getting too old for this ish.

I can’t relate much to a billionaire boasting more than 5,000,000% in returns, but it looks like we’ve finally found some common ground.

Only problem is, the physical effects of aging didn’t hit Buffett until he turned 94. They hit me before I turned 30.

Some men just can’t hold their Chicken McNuggets…

— Brooks & Cas

SPHERE OF INFLUENCE

New Spin on Sphere

The Las Vegas Sphere has transformed live music and concerts, with an immersive experience that pushes the boundaries of sight and sound. A recent Barron's article argues investors could be on a roll if they add the flashy entertainment stock to their portfolios.

It says Sphere Entertainment $SPHR ( ▼ 0.61% ), which owns the stellar Las Vegas concert venue as well as the less-than-stellar MSG Networks, is undervalued. Particularly as there are already plans to build a second Sphere in Abu Dhabi.

Wolfe Research analyst Peter Supino says Sphere Entertainment is "shockingly undervalued." His $65 price target represents a whopping upside of almost 68% from Friday's close.

Spun Out

Sphere has recently restructured a significant MSG Network debt load, cutting it by $500 million. Barron's says this reassured several Wall Street analysts. The company has a market value of $1.2 billion and a net debt of $350 million. That's significantly less than the $2.3 billion construction cost of the Las Vegas Sphere.

So why isn't the stock selling faster than U2 tickets on Mumsnet? One issue is that the Dolan family has a reputation for doing their own thing — even if that's not what shareholders want. The so-called "Dolan discount" weighs on its price.

Another big investor concern is that the Las Vegas Sphere is losing money. The company lost over $2 per share in Q1 and is expected to lose $7 per share across the year. Throw in the limited free cash flow, and investors' reluctance is understandable.

Coming Full Circle

The overall analyst consensus is bullish, with 6 out of 9 giving a Buy rating on the stock. According to MarketWatch, 2 have it at a Hold and 1 says it's a Sell.

For investors, there's a lot riding on Sphere's success and the potential to roll out the Sphere model elsewhere. A bit like many aspects of the entertainment industry, it is one thing to dazzle audiences today, but the spotlight can shift in a heartbeat.

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ZILLOW’S CO-FOUNDER HAS A BIG NEW IDEA

Spencer Rascoff co-founded Zillow, scaling it to a $16B valuation. But everyday investors couldn’t invest until the IPO, missing early gains.

"I wish we had done a round accessible to retail investors prior to Zillow's IPO," Rascoff later said. Now he’s fixing that with Pacaso, his new company disrupting the $1.3T vacation home market. Unlike Zillow, you can invest in Pacaso as a private company.

Firms like SoftBank and Maveron are already on board – and you can join them for $2.80/share.

Invest now.

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FROM CUTS TO COMEBACK

Teva Gets a Boost

JPMorgan $JPM ( ▼ 0.12% ) has turned bullish on Teva Pharmaceuticals $TEVA ( ▼ 2.68% ), upgrading the stock to Overweight and raising its price target to $23. That implies nearly 36% upside from Friday’s close. The catalyst? A $700 million cost-cutting plan announced by the company last week. Analyst Chris Schott said those savings help resolve a key concern: Teva’s ability to hit a 30% operating margin by 2027.

Schott noted that the cost reductions effectively close much of the margin gap and position the company for stronger financial performance. The upgrade marks a reversal in tone, as margin pressure had been the primary sticking point in JPMorgan’s previous rating. Now, the firm sees a clearer path to sustainable earnings.

This move aligns with Teva’s broader "pivot to growth" strategy launched in 2023. With the company now entering its “acceleration” phase, JPMorgan sees both operational discipline and top-line expansion taking shape.

Pills With Promise

Beyond belt-tightening, Schott pointed to specific products driving optimism. Austedo, Teva’s treatment for movement disorders, has outperformed expectations. Meanwhile, olanzapine — an antipsychotic drug expected to launch next year — could be a blockbuster, with projected sales in the $1 to $2 billion range.

Schott believes the company’s portfolio is “well-positioned” for long-term growth, adding another leg to the bull case. If the cost program delivers as planned, these therapies could become key contributors to Teva’s revenue base.

Wall Street seems to agree. Most analysts covering the stock have Buy-equivalent ratings, per LSEG data, despite a rocky start to the year.

Headwinds in the Headlines

That said, not all news has been favorable. Shares slipped over the last week after former President Donald Trump announced an executive order aimed at cutting drug prices on May 12.

The policy shift adds a layer of uncertainty for the entire pharma sector, including Teva. It also compounds what’s already been a difficult year.

Still, JPMorgan’s call suggests confidence in the company’s ability to manage through short-term turbulence — and emerge stronger on the other side.

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DIVI DRIVEN

UBS's Divid-End Game

It's been a rollercoaster couple of months for US stocks as investors scrambled to digest the on-off tariff news coming out of Washington. UBS Asset Management’s $UBS ( ▲ 0.6% ) Jeremy Zirin says dividend stocks are a great way to handle today's choppy markets.

According to CNBC, Zirin believes companies that consistently grow their dividends offer the right balance between offense and defense. The risk of being overly defensive is that you miss out when markets rebound, as they did this week.

Zirin calls technology and financial sectors the"unsung heroes" of dividend-growth stocks. They make up almost 50% of the UBS U.S. Dividend Ruler Fund (DVRUX) that Zirin manages.

Windows Shopping

Investors pulled out of tech stocks earlier this year in response to tariff fears and AI uncertainty. But Zirin says a look at their Q1 results shows these companies are surprisingly resilient.

Microsoft $MSFT ( ▼ 0.0% ) is one of the fund's top holdings, making up almost 9% of its assets. Its dividend yield is 0.74%, and it has increased its dividends for the past 23 years, per Dividend.com.

The company made headlines this week with the news that it will cut about 3% of its workforce. The company is focusing significant amounts of money on AI and wants to flatten management layers.

Chasing Chase

In the financial sector, Zirin's fund likes JPMorgan Chase. The company has a dividend yield of 2.13% and has delivered dividend increases for the past 15 years.

JPMorgan Chase is up almost 10% year-to-date and has a reputation as being a safe pair of hands. One Wells Fargo analyst recently called it the "Nvidia of banking." Per MarketWatch, 15 out of 26 analysts rate it a Buy or Overweight.

Dividend growth stocks can offer stable payments and help offset inflation. However, be aware that yields can steal from the future — don't let that payout parade come at the cost of growth.

LAST WEEK’S POLL RESULTS

Are you bullish or bearish on Logitech (LOGI) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐻 Bearish — “Just hard to commit to.”

Are you bullish or bearish on Wynn Resorts (WYNN) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “I’d bet on it!”

Are you bullish or bearish on Palantir Technologies (PLTR) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “I have purchased this stock off and on. Every time I sell it, I become surprised at the jumps that it makes. Now that the EU and other NATO countries have asked Palantir to help them with their defense efforts, I feel more bullish than ever.”

• 🐻 Bearish — “Good, but not what is expected.”