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HAPPY WEDNESDAY TO THE STREET.
Google is going nuclear. The company just agreed to fund three nuclear sites, stepping up its competition with other tech titans in the burgeoning space. If at first your monopoly doesn’t succeed, try, try again.
ICYMI, here’s what else happened on the Street today.
🟩 | US stocks ticked up today after the Federal Reserve left rates unchanged, as expected, though it also warned of potential stagflation.
📈 | One Notable Gainer: Disney $DIS ( ▲ 3.5% ) recaptured the magic after smashing earnings expectations and announcing a new theme park in Abu Dhabi.
📉 | One Notable Decliner: Alphabet $GOOGL ( ▲ 2.39% ) got one step closer to a breakup after the DOJ proposed the firm divest its ads business.
— Brooks & Cas
Sponsored by BOXABL
Most car factories like Ford or Tesla reportedly build one car per minute. Isn’t it time we do that for houses?
BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market by bringing assembly line automation to the home industry.
Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq*
BOXABL has raised over $170M from over 40,000 investors since 2020. They recently achieved a significant milestone: raising over 50% of their Reg A+ funding limit! BOXABL is now only accepting investment on their website until the Reg A+ is full.
Disclosure: This is a paid advertisement for BOXABL’s Regulation A offering. Please read the offering circular here. This is a message from BOXABL
*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.
STOCK HEATMAPS
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
Market Movers
Super Micro, Novo Nordisk, Dayforce
$SMCI ( ▲ 0.46% ) Super Micro stock drops as AI server maker lowers revenue outlook on tariffs, economic uncertainty (YF)
$NVO ( ▼ 2.83% ) Novo Nordisk shares pop as drugmaker sees copycat Wegovy sales easing in 2025 (CNBC)
$DAY ( ▲ 6.03% ) Dayforce shares slide as revenue guidance falls short of expectations (SeekingAlpha)
$CRL ( ▲ 3.86% ) Charles River Stock Is Having Its Best Day in 13 Years. A Board Shake-Up and Business Review Will Help. (Barron’s)
$WW ( ▲ 0.51% ) WeightWatchers files for bankruptcy (CNN)
OVERHEAD ON THE STREET
WSJ: The Fed held rates steady at its May meeting, signaling divided opinions on whether to focus more on slowing hiring or rising inflationary risks.
Bloomberg: Apple $AAPL ( ▲ 1.77% ) wants to revamp Safari search with AI, amid calls to end Google’s $20B deal with the browser.
Fortune: The Trump family stands to make $2B from a crypto deal in the Middle East involving their stablecoin.
Reuters: BMW $BMWYY ( 0.0% ) showed it expects auto tariffs to come down in its 2025 outlook.
CNBC: Used vehicle prices in the US hit their highest levels since 2023 as auto tariffs drive demand and impact production.
Tomorrow's Trade Idea, Today
CAN SHOPIFY SIDE-STEP TARIFFS?
Not Just Any E-Commerce Company
E-commerce probably isn’t the first sector to come to mind when investors think of tariff-resistant plays. But Shopify $SHOP ( ▼ 1.53% ) isn’t just any e-commerce company, according to BMO Capital Markets.
Analyst Thanos Moschopoulos gave the stock an Outperform rating with a $120 price target, implying a nearly 27% upside.
According to the analyst, Shopify’s agile platform will give merchants flexibility to navigate short-term tariff volatility better than its competitors. He also expects this edge to allow the company to increase its market share.
Multiple Growth Engines
Despite a more than 11% YTD drop in its share price, Shopify is expanding strategically, the analyst said. The firm is focusing on building its B2B operations, and has seen gains since divesting its logistics segment in 2023. Both of these moves have helped to improve growth rates and operating leverage.
Moschopoulos believes this diversification has set the company up for long-term success and a strong market position. He added that Shopify is well-positioned to capitalize on several growth opportunities and outpace less nimble competitors.
AI, Efficiency & Analyst Confidence
BMO expects AI and cost-cutting measures to further enhance Shopify’s efficiency and competitiveness.
Between AI integration, strategic streamlining, and its competitive edge, the majority of analysts agree with the analyst’s take. According to LSEG data, 33 of 48 analysts covering the stock give it either a Buy or Strong Buy rating, and average price target estimates are in line with BMO’s upside outlook.
Tariffs may make the proverbial millennial dropshipper a thing of the past. But Shopify, which proved flexible enough to enable those pop-up business models, might just be agile enough to pivot away as well.
Are you bullish or bearish on Shopify (SHOP) over the next 12 months? |
Sponsored by BOXABL
Most car factories like Ford or Tesla reportedly build one car per minute. Isn’t it time we do that for houses?
BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market by bringing assembly line automation to the home industry.
Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq*
BOXABL has raised over $170M from over 40,000 investors since 2020. They recently achieved a significant milestone: raising over 50% of their Reg A+ funding limit! BOXABL is now only accepting investment on their website until the Reg A+ is full.
Disclosure: This is a paid advertisement for BOXABL’s Regulation A offering. Please read the offering circular here. This is a message from BOXABL
*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.
ON OUR RADAR
Reuters: India attacked Pakistan over tourist killings in Kashmir, prompting threats of retaliation from the latter.
CNBC: The EU will announce its next steps in response to US tariffs tomorrow.
WSJ: The same day, US and China officials will meet in Switzerland to resume trade talks.
AP: Speaking of China, the Asian nation rolled out more stimulus to counteract tariff impacts.
AV Club: Netflix $NFLX ( ▼ 0.5% ) is overhauling its user experience — and partnering with OpenAI to provide AI-assisted recommendations.
TUESDAY’S POLL RESULTS
Are you bullish or bearish on Sotera Health (SHC) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
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