Notes
SECTOR NEWS HIGHLIGHTS
TECH/MEDIA/TELECOM:
🔸 Netflix ( $NFLX): Beats Q1 earnings; strong Q2 guidance.
🔸 Nvidia ( $NVDA): Down 3% on Huawei AI chip shipment news.
🔸 Cognizant ( $CTSH)/DocuSign ( $DOCU): Expand partnership.
🔸 Disney ( $DIS): Upgraded to Outperform at Wolfe Research; $112 target.
🔸 Tempus AI ( $TEM): Initiated with Buy at BTIG; $60 target.
CONSUMER:
🔸 Amazon ( $AMZN): Downgraded at Raymond James; price target cut to $195 from $275.
🔸 QXO: Extends $124.35/share tender offer for Beacon Roofing (BECN).
🔸 Tesla ( $TSLA): Affordable car launch delayed; low-cost Model Y production to begin in U.S.
ENERGY/INDUSTRIALS/MATERIALS:
🔸 Boeing ( $BA): Returning rejected 737 Max jets from China to U.S.
🔸 Cosco Shipping: Warns U.S. tariffs on Chinese ships threaten global trade.
🔸 EU: Eases methane rules to avoid gas-related trade clash with U.S.
FINANCIALS:
🔸 Capital One ( $COF): Gets approval to acquire Discover (DFS), becoming top U.S. credit card lender.
🔸 Comerica ( $CMA): Beats Q1 estimates; EPS $1.25 vs est. $1.18.
🔸 Global Payments ( $GPN): Downgraded at Jefferies; target cut to $75.
🔸 Independent Bank ( $INDB): Misses Q1 EPS; raises dividend by 4%.
HEALTHCARE:
🔸 Pacira ( $PCRX): Approves $300M stock buyback.
🔸 Regeneron ( $REGN)/Sanofi (SNY): FDA approves Dupixent for chronic hives in patients 12+.
Wells Fargo's Q2 2025 Tactical Ideas list includes 10 stocks with key catalysts.
Overweight: $CHKP, $COF, $CPRI, $DLTR, $KKR, $LLY, $PTCT, $ROKU, $RYTM.
Underweight: $TSLA, citing weak auto fundamentals and overvaluation vs. the Magnificent 7. Notes Cybercab launch in June as unlikely due to limited testing.
MORNING BID
Baidu ( $BIDU) Q4 Revenue: ¥34.12B (-2% y/y, Est. ¥33.32B) 📉
🔹 Ad revenue down 7% to ¥17.9B, offset by AI Cloud growth (+26% y/y).
Broadcom ( $AVGO) & Intel ( $INTC):
🔹 Broadcom held informal talks on acquiring Intel’s chip-design unit (WSJ).
🔹 No formal offer yet; deal uncertain.
Roku ( $ROKU): Files mixed securities shelf.
Alcohol Industry Struggles:
🔹 Younger consumers opt for moderation/abstinence, hurting alcohol sales.
🔹 Underperforming stocks: TAP, DEO, BF/B, BUD.
🔹 Winners: Nonalcoholic brands like Athletic Brewing & Ritual Zero Proof thrive.
🔹 Anglo American ( $NGLOY): Selling nickel unit to MMG Ltd for up to $500M, refocusing on copper & iron ore.
🔹 Delta ( $DAL): Regional jet flipped on landing in Toronto amid high winds; 18 injured.
🔹 Diamondback ( $FANG): Acquires Double Eagle units for 6.9M shares + $3B cash to expand Midland Basin.
🔹 Entergy ( $ETR): Q4 adj. EPS $0.66 (Est. $0.63); FY25 guidance: $3.75-$3.95 (Est. $3.92).
🔹 H&E ( $HEES): Accepts Herc Rentals' $5.3B bid, rejecting United Rentals' offer (FT).
🔹 Sealed Air ( $SEE): CEO Patrick Kivits steps down; Dustin Semach appointed; FY24 outlook reaffirmed.
🔹 Capital One ( $COF): Jan. net charge-offs 6.12% (vs. 5.71% y/y); delinquencies 4.61% (vs. 4.78% y/y).
🔹 Discover ( $DFS): Jan. credit card delinquency 1.80%, charge-off 2.63% (SEC filing).
🔹 JPMorgan ( $JPM): Jan. credit card delinquency 0.88%, charge-off 1.64% (SEC filing).
🔹 Janus Henderson ( $JHG): Expanding into Saudi Arabia to grow Middle East presence (Bloomberg).
🔹 KKR ( $KKR): Buying 5% more of Eni’s (E) Enilive biofuel unit for €587.5M, raising stake to 30%.
🔹 Johnson & Johnson ( $JNJ): Faces court decision today on $10B settlement over baby powder litigation; Judge Lopez to decide on Chapter 11 filing.
🔹 Medtronic ( $MDT): Q3 adj. EPS $1.39 (Est. $1.36); Q3 revs +2.5% y/y to $8.29B (Est. $8.33B); maintains full-year guidance.
🔹 Oculis ( $OCS): 5M share secondary priced at $20.00 per share.
