My top 10 things to watch Wednesday, June 7
1. There are two cases against crypto. Both civil: Binance and Coinbase (COIN). The former has $2 billion at stake and all the appearances of being a second SBF. Binance disputed the allegations. The second is all about registering. Coinbase won't register. The SEC says they must. Both will be decided by judges, not Congress as Coinbase CEO Brian Armstrong hoped would be the case.
2. Raymond James questions whether COIN can stay in business without some sort of resolution. Yet Ark Invest's Cathie Wood just keeps buying the stock anyway. She added more than $20 million to her funds Tuesday as COIN shares sank 12%. The stock bounces roughly 3% early Wednesday. Meanwhile, Barclays says penalties might be quite meaningful for COIN. KeyBanc sees a long battle ahead.
3. Google Cloud says the Mayo Clinic is using a new generative AI search tool that lets companies create customized chatbots. Google-parent Alphabet (GOOGL) is a Club name. CNBC's tech team reminds us that Google Cloud and Mayo Clinic signed a 10-year partnership in 2019.
4. Club holding Meta Platforms (META) is trying to beat TikTok at its own game, ramping up its own AI capabilities to supercharge its services, including short-form Reels videos. In a new commentary, we look at Meta's strategy that can help it turn the tide on advertising market share lost to TikTok.
5. China's exports dropped 7.5% in May. I think this is about the potential shrinking of China as a global force as the U.S. moves away from its reliance on the world's second-largest economy. On Wall Street, the S&P 500 is set to open slightly higher after it logged its highest close since last August. The Nasdaq on Tuesday rose to its highest close of 2023.
6. Bernstein likes Walmart's (WMT) competitive position. Keeps market perform (hold) rating and $159-per-share price target. Incredible how everyone has rallied around this stock and Club name Costco (COST) as cost-conscious shoppers seek out the kind of bargains that can be found at those two retail chains.
7. Club holding Amazon (AMZN): Piper Sandler raises price target to $150 per share from $130. Keeps overweight (buy) rating. Bernstein, in an open letter to Amazon CEO Andy Jassy and the board, says it's "time to get back to Day One" for this company. Whatever the heck that means. The firm keeps outperform (buy) rating and $140 price target.
8. A couple of price target increases on Netflix (NFLX) stock. Wells Fargo goes to $500 per share from $400 and keeps overweight (buy) rating. JP Morgan goes to $470 from $380 and keeps overweight rating. These make me feel Club name Disney (DIS) should sell everything but its library. The analysts can not resist saying things that are positive about NFLX.
9. JPMorgan sees very strong growth ahead at Club holding Nvidia (NVDA). Datacenter doing well. The analysts say, "H100 shipments continue to ramp in higher volumes in [fiscal] 2Q and into 2H [the second half] even as A100 continues to see strong demand." These are the AI chips.
10. Analysts at JPMorgan say the latest issue with Boeing's (BA) 787 Dreamliners is "disappointing but should be surmountable." Boeing on Tuesday delayed deliveries of the aircraft due to a fitting defect that the company says is not related to flight safety.
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