The Business Roundtable, led by Jamie Dimon, gives a new definition of the "purpose of a corporation."Marketsread more
Stocks rose sharply on Monday as Treasury yields rebounded, quelling fears of a possible recessionUS Marketsread more
Powell will have the opportunity if not to walk back the "midcycle" assessment then to at least provide some further explanation about what it means.Economyread more
Twitter and Facebook have suspended numerous accounts that are believed to be tied to a state-backed information campaign originating from inside China.Technologyread more
Leaked documents from Google give fresh ammo to conservative lawmakers who have already accused Google and other tech companies of political bias.Technologyread more
J.P. Morgan estimates the average annual tariff cost per household will be $1,000 with the new round of Trump's tariffs.Marketsread more
Stasior left Apple earlier this year. Prior to his time in charge of Siri, he was a top executive at Amazon.Technologyread more
Sequoia's Michael Moritz says that direct listings worked for Spotify and Slack and will become more common for companies with "courage and intelligence."Technologyread more
Shares of embattled utility PG&E plummeted after a judge ruled that a jury can decided whether it should pay up to $18 billion in damages.Marketsread more
The attacks come after state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums.Technologyread more
Since its IPO 15 years ago, Google has become more and more powerful. Today, that power is being highly scrutinized.Technologyread more
Here are the biggest calls on Wall Street on Tuesday:
Barclays said it believes that fliers will avoid the Boeing 737 Max when it's back in service.
"We expect the recovery of 737 MAX production to take longer than expected and our 2019-21 EPS & FCF forecasts are below consensus as a result. Our view is informed by our survey that indicates a large portion of fliers are likely to avoid 737 MAX for an extended period beyond when the grounding is lifted."
Read more about this call here.
Bernstein said the alternative meat based company will see rapid sales growth going forward.
"We are initiating coverage on Beyond Meat with an Outperform rating and target price of $81, which is 13x our FY20 sales estimate, vs. the 20x 2019 sales that the company is trading at today. Recent and planned expansions in production capacity look set to facilitate rapid sales growth in 2019 and beyond. If the alternative meat category develops along a similar path to plant-based beverages (from 5% - 15% of the market around a decade after the almond milk innovation turbocharged the category), then the total addressable market could be ~$40.5 billion in the U.S. within a decade. If Beyond Meat can secure a 5% market share (up from 2% today), this would imply sales of $2.0 billion in 2028 (vs. $88m in 2018 and ~$207m in 2019). "
Read more about this call here.
Stephens said the stock might be volatile but the company is positioned well to see user growth.
"We are initiating coverage on Roku, with an Overweight rating and $84 price target. The stock is likely to remain volatile (EV/NTM sales ranged 3x-10x LTM), but we would use weakness as buying opportunities. We like ROKU's LT industry position as an independent, branded, embedded and capital-light player at the nexus between smart TVs and an increasingly fragmented streaming video landscape, and we believe the Company is well positioned to grow users, engagement and ARPU. Our $84 PT assumes ROKU will trade at ~9x EV/20E Platform rev. and 16.5x EV/20E gross profit, and we believe the stock could appreciate 3x-5x over the next 3-5 years as consumers continue shifting to smart TVs and content providers (Disney+, Netflix, etc.) compete for new subs. "
Macquarie said they were impressed with Lululemon's analyst day.
"As Lululemon-branded anti-stink deodorant was passed out at the investor day, the company did a solid job laying out its five-year targets. While we wish more numbers were shared during the full-day presentation, the company addressed a number of our key concerns. We are upgrading to Neutral predicated on the new management team, international profitability inflecting and achievable five-year targets. "
Macquarie said the fitness center operator should continue to grow.
"We spread our install growth expectations through Q2-Q3, but maintain 235 exp. Corporate-owned comps have stayed higher for 2 Qs; we take our est. up for '19. Upgrade to Outperform, TP $85. PLNT shares should benefit from the continued growth and quality of the franchise business. "
BMO said it is bullish on Disney's new Star Wars-themed lands coming soon as well as Disney+.
"We continue to expect Disney to join Netflix and Amazon (also both OP rated) among the leaders in global streaming. DIS shares may need to consolidate near-term, but potential catalysts include two Star Wars-themed lands opening in Anaheim (May 31) and Orlando (August 29), and the launch of Disney+ on Nov 12. For Wednesday's print, investors should be prepared for ESPN sub declines to worsen as vMVPDs rationalize, but we think ESPN+ is a vital new offset, and we offer a deep dive on both it and Disney+ within. "