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Reddit could be in trouble after a strong public market debut, according to New Street Research. The firm is the first on Wall Street to issue a stock rating on Reddit. Reddit went public Thursday after pricing its IPO at $34 per share. "High margin data licensing and direct response advertising will drive operating leverage over the mid and long term," Salmon said. "Expense growth slowed beginning in 1Q23, owing to operating efficiencies put into place throughout 2023 and Reddit remains focused on improving leverage over the long term."
Persons: Reddit, Dan Salmon, Salmon Organizations: New, Research Locations: 1Q23
Goldman Sachs upgrades Fiverr to buy from neutral Goldman said the Israeli online marketplace is well positioned for AI. Bank of America reiterates Amazon as buy Bank of America said it's standing by its buy rating on Amazon shares. Bank of America downgrades Celsius to neutral from buy Bank of America says it sees "uncertainty to sales momentum" for the energy drink company. Deutsche Bank names Starbucks a top pick Deutsche says it sees an improved same-store sales environment for Starbucks in 2024. Bank of America upgrades Teekay Tankers to buy from neutral Bank of America upgraded the tanker stock due to "rising rate upside."
Persons: Stifel, McKhann, thoughtfully, Goldman, Goldman Sachs, FVRR, Raymond James, TXN, Oppenheimer, Morgan Stanley, ASML, Citi downgrades Blackstone, Carlyle, it's bullish, headwinds, Evercore, Price, Apple Evercore, Janney, Jefferies, Hertz Organizations: Broadcom, Semiconductor, Enterprise, Nvidia, Bank of America, Amazon, North, Holdings, Netflix, Deutsche Bank, Starbucks, Deutsche, SSS, UBS, Texas, Barclays, Nokia, Ericsson, Citi downgrades, Citi, BMO, Marvel, " Bank of America, United Rentals, of America, IBM, Enterprise IT, Apple, Shoals Technologies, Inc, HSBC, Discover, Motorola Solutions, HERTZ Locations: North America, 4Q, 2026E, CY24
UBS thinks Fiverr International can use a lead in job listings to pick up steam in 2024. The firm initiated the stock with a buy rating in a Tuesday note and a $33 per share price target. UBS' forecast implies more than 36% upside from Tuesday's $25.16 close. Analyst Kunal Madhukar said Fiverr's lead in overall job listings and higher trending multiples heading into 2024 underpinned his bullish forecast on the stock. FVRR YTD mountain Fiverr International stock.
Persons: Fiverr, Kunal Madhukar, Fiverr's, Madhukar, — CNBC's Michael Bloom Organizations: UBS, 2Q Locations: Fiverr, 1Q23
Here are Monday's biggest calls on Wall Street: Goldman Sachs adds Nvidia to the conviction buy list Goldman said the stock is well positioned to benefit for AI. UBS initiates Sunnova as buy UBS said the solar company is best positioned to take share. Morgan Stanley upgrades U.S. Steel to overweight from equal weight Morgan Stanley said in its upgrade of the steel stock that the transformation continues. UBS reiterates Amazon as buy UBS raised its price target on Amazon to $180 per share from $175 and says it's bullish on ads in Prime video content. Morgan Stanley reiterates TJX Companies as overweight Morgan Stanley said it's sticking with its overweight rating after a meeting with company management.
Persons: Goldman Sachs, Goldman, bullish, Evercore, RIVN, Gordon Haskett, Piper Sandler, Piper, Jefferies, Truist, Wells, ROY, SolarEdge, Morgan Stanley, Davidson, CLX, it's Organizations: Nvidia, UFC, WWE, UBS, NOVA, Susquehanna, FedEx, Meta Connect, Microsoft, Barclays, JPMorgan, Apple, Steel, Bank of America, NSC, Amazon, TJX Companies Locations: PODD, GLP, 3Q23, 2Q23, 1Q23, 4Q23, Europe, Bank of America downgrades Norfolk Southern
Data centers are perfectly positioned to take advantage of this trend, according to BofA. David Barden breaks down the opportunity for data center REITs, and which companies will profit. 2 data center giants ready for liftoffWith data centers poised to profit from the AI explosion, the only question remaining is which data center providers make the best investments now. "DLR's business model should, however, position it to develop facilities with the power density required to host large AI model Training," Barden wrote. While Equinix can capitalize on AI sooner rather than later, Digital Realty Trust's larger capacity makes it perfect for "larger, longer-dated AI training model environments," Barden wrote.
Persons: David Barden, Haim Israel, Barden, EQIX Organizations: Semiconductors, Software, Bank of America, Realty Trust, Digital Realty Trust, Digital Realty
China's sputtering growth and property market hurdles have led to comparisons with Japan's troubles in the 1990s. But key differences remain and China's economy isn't yet at the level of Japan's crisis 30 years ago. China's National Bureau of Statistics reported that the consumer price index dropped 0.3% annually in July, tipping the economy into deflation and fueling reminiscences of Japan in the early 1990s. Only this year have Japan's stock markets returned within range of the highs seen in 1990. Real estate prices in Japan fell about two-thirds, and the stock market still has never got back to where it was in 1989.
Persons: David Dollar Organizations: JPMorgan, Service, China's National Bureau of Statistics, Financial Times, Nikkei, Brookings Institute, Brookings Locations: China, Wall, Silicon, Beijing, Japan, 1Q23, Tokyo, United States, Real
Wall Street analysts are bullish on Amazon heading into earnings. Here's how several analysts are trading Amazon ahead of its latest earnings report. Bank of America is also bullish, maintaining its buy rating and $154 price target into earnings, which suggests roughly 20% upside. "We continue to see an attractive set-up on the stock based on our Triple Trough Thesis (trough multiple, trough margin, and trough revenue growth). On Monday, the firm reiterated its buy rating and $145 price target, which suggests 13% upside from Wednesday's close.
Persons: StreetAccount, Morgan Stanley, Brian Nowak, Nowak, Lloyd Walmsley, Walmsley, Justin Post, Amazon's, Mark Mahaney's, Mahaney, — CNBC's Michael Bloom Organizations: Amazon Web Services, UBS, Bank of America, AWS, Triple, Citi Locations: 1Q23
China has a rapidly aging population and a difficult macro environment, but it also has some strong points. Beijing must stabilize its housing market to avoid the same pitfalls Japan faced decades prior. Strategists warned Wednesday of the superpower's "Japanification" risk that could stem from an unsteady housing market, financial imbalance, and an aging population. Hence, it is critical to stabilize the housing market as a near-term policy priority, as emphasized by the July Politburo meeting." Ultimately, much of the potential "Japanification" falls back to housing market risks.
Persons: Japan's Organizations: Service, Privacy, China, stagnating, JPMorgan Locations: China, Japan, Beijing, Wall, Silicon, stagnating Japan, 1Q23, , Russia, Ukraine
Morgan Stanley reiterates Tesla as equal weight Morgan Stanley said in its annual ask the interns survey that Tesla favorability fell. " Morgan Stanley reiterates PayPal as overweight Morgan Stanley said it's bullish heading into PayPal earnings on Wednesday. " Oppenheimer reiterates Target as outperform Oppenheimer said investors should buy the dip ahead of Target earnings later this month. Bank of America reiterates DraftKings as buy Bank of America is bullish heading into earnings later this week. Morgan Stanley reiterates Ford as overweight Morgan Stanley said it's standing by its overweight rating, but that the company needs an electric vehicle strategy change soon.
Persons: Baird, it's, Cantor Fitzgerald downgrades Rivian, Cantor, Morgan Stanley, Tesla, Read, RMD, PYPL, Oppenheimer, Canaccord, Estee Lauder, DraftKings, DoorDash, comps, Bernstein, Goldman Sachs, Goldman, Ford Organizations: Apple, Mercedes, Barclays, 2H23, RBC, PayPal, Citi, EL, Amazon, Bank of America, Anheuser, Busch InBev, Goldman, Meta Locations: US
Here are the biggest calls on Wall Street on Wednesday: Morgan Stanley reiterates Amazon as overweight Morgan Stanley said it's bullish on the e-commerce giant's earnings next week. Morgan Stanley downgrades RTX to equal weight from overweight Morgan Stanley said in its downgrade of the stock that risk/reward seems "balanced" right now. Morgan Stanley upgrades WW International to overweight from equal weight Morgan Stanley said shares of the company formerly known as Weight Watchers are underappreciated. Citi reiterates Meta as a top pick Citi said Meta is a top pick heading into earnings on Wednesday afternoon. Morgan Stanley reiterates General Motors as overweight Morgan Stanley said the stock's weak reaction to Tuesday's GM earnings report is a "headscratcher."
Persons: Morgan Stanley, it's bullish, it's, Raymond James downgrades, Raymond James, Morgan Stanley downgrades RTX, Needham, NFLX, Citi, Eli Lilly, Elliot, Burger, Disney, TD Cowen, bitcoin, GOOGL Organizations: Deutsche Bank, Spotify, Deutsche, Barclays, Apple, Target, Bank of America, NXP Semiconductors, International, Netflix, Citi, Goodyear Tire Deutsche, Elliot Management, Goodyear, Elliott Management, Operational, Restaurant Brands Citi, Microsoft, Hollywood, Meta, JPMorgan, United Airline, AFL, DAL, Motors, UAW Locations: 1Q23
The second-quarter earnings season is in full swing, and this is the busiest week of the season. Bank of America has found the 9 stocks most likely to beat earnings expectations in the coming days. Wall Street was ready for a tough first-quarter earnings season, with expectations low across the board. 9 stocks expected to beat earnings estimatesBank of America analysts screened for the stocks they think are most likely to beat analyst estimates this earnings season, using the following criteria. The resulting nine stocks below are the best bets for beating expectations this earnings season.
Persons: Oshung Kwon, Kwon, it's Organizations: Bank of America, Bank of, Industrials, of America
Wall Street has suffered severe layoffs amid a dealmaking drought and shaky economic outlook. Headcount is up in every division, not including thousands of First Republic employees onboarded in July. Jobs have grown in every division despite the non-stop news about industry layoffs (think Goldman) and consolidation (think Credit Suisse). It has also cut about 40 high-paying investment banking jobs, and about 1,000 jobs from its home lending unit. The bank also beat Wall Street's expectations and has again become a challenger to Goldman Sachs' spot as No.
Persons: JPMorgan Chase, Jobs, Goldman, It's, headcount, Goldman Sachs, Morgan Stanley, May, JPM, Jamie Dimon, JPMorgan's, Jeremy Barnum Organizations: JPMorgan, First Republic, onboarded, Suisse, JPMorgan Headcount, Bank Division, Consumer, Community Bank, Investment Bank, Bank, Wealth Management, First, Republic, Wall, Credit Suisse, UBS, Reuters, Global, Basel III Locations: Louis , Missouri, First Republic, San Francisco, China, Ukraine, Basel
Higher rates for longer could benefit WSFS Financial , the Delaware-based parent of Wilmington Savings Fund Society, according to D.A. The firm upgraded the regional bank to buy from neutral Monday with a $45 per share price target, representing about 28% upside from Friday's $35.17 close. WSFS YTD mountain Shares of WSFS Bank have slipped more than 18% in 2023. But analyst Manuel Navas says WSFS Financial could post stronger growth compared with peers due to a higher net interest margin . At the same time, he says WSFS Financial is trading at a discount that doesn't accurately capture the bank's position.
Persons: Davidson, Manuel Navas, Navas, 1Q23 NIM, Michael Bloom Organizations: Wilmington Savings Fund Society, WSFS Bank Locations: Delaware, Wilmington
Bernstein reiterates Target as outperform Bernstein said investors should buy the weakness in Target shares. UBS reiterates Chipotle as buy UBS said the Mexican chain is "well positioned w/ drivers to support transaction and sales growth." RBC reiterates Tesla as outperform RBC raised its price target to $305 per share from $212 and said it's bullish on Tesla's autonomy future. " TD Cowen reiterates Netflix as outperform TD Cowen raised its price target on the stock to $500 per share from $440 and says it's well-positioned. UBS reiterates Chevron as buy UBS said it sees "balance sheet strength & dividend growth" for Chevron.
Persons: Evercore, it's bullish, Emerson, Bernstein, Mizuho, Coinbase, Moody's, Guggenheim, McDonald's, Chipotle, Morgan Stanley, Goldman Sachs, Goldman, Wells, Wells Fargo, Tesla, it's, Oppenheimer, SoFi, Uber, Jefferies, TD Cowen, NFLX, Cowen, Stifel Organizations: ISI, Energy & Materials, Livent, HSBC, Emerson, " Bank of America, P, Bank of America, Citi, American Express Citi, American, Citi Credit Card, Travel & Entertainment, RBC, Nvidia, UBS, Mobile, Diageo, Spirits, Deutsche Bank, JPMorgan, Microsoft, Netflix, Corning, Chevron, Meta, DR Locations: Mexican, Allegiant, Edgewater
More stocks left behind in the recent rally are starting to catch up to their peers. The S & P 500 and the Nasdaq Composite have reached their highest levels since April 2022, but that rally has mainly benefited tech stocks. Now, however, more stocks are starting to participate in the rally, including names that took a huge beating last year after the rise in interest rates dented their prospects. The online used car retailer skyrocketed 81% in June through Wednesday, and is higher by almost 400% this year. However, that's changing, with Peloton jumping 11% this year, though the stock remains 45% off its 52-week highs.
Persons: Tesla, Carvana, Russell, Wayfair, Ygal Arounian, Arounian, gymgoers, WeWork Organizations: Nasdaq, Microsoft, Apple, CNBC, Citi, Match, Nordstrom
Piper Sandler initiates Domino's as overweight Piper said it sees an attractive risk/reward for Domino's shares. Piper Sandler reiterates Meta as outperform Piper Sandler raised its price target on the stock to $310 per share from $270 and said ad spend is "holding up." Citi downgrades Logitech to neutral from buy Citi downgraded the stock due to the unexpected departure of CEO Bracken Darrell. Citi reiterates Accenture as buy Citi said the Dublin-based IT company is an AI beneficiary. Piper Sandler initiates Bentley Systems as overweight Piper said the company is a "high quality industrial software franchise operating with scale."
Persons: Piper Sandler, Piper, Wolfe, it's bullish, Bernstein, Gordon Haskett downgrades, Gordon Haskett, Needham, ServiceNow, Bracken Darrell, Guy Gecht, Raymond James, Dave, Buster's, Riley downgrades Cinemark, Riley, Li, Morgan Stanley, Tesla, Splunk, TD Cowen, Wingstop, Cowen, it's, Estée Lauder, Berenberg, Roth, Morgan, Bud Light Organizations: Barclays, Netflix, FedEx, Apple, TAM, Citi, Logitech, Materials, SVB Securities, PayPal, Linde, LIN, Bank of America, Oculis, Dave, Cinemark Holdings, Inc, Accenture, IT Services, Li Auto Citi, China, Li, SSS, Bentley Systems, Photonics, Technologies, AMD Data Center, JPMorgan, DG, Anheuser, Busch InBev, Molson Coors, & $ Locations: 3Q22, 4Q22, 2H23, Latin America, Dublin, Bergamo
Companies Carvana Co FollowJune 9 (Reuters) - Shares of used-car retailer Carvana Co (CVNA.N) tumbled 12.5% in afternoon trading on Friday, as analysts suspect that the debt-laden company's upbeat second-quarter profit forecast is a 'one-time' upside. Carvana, known for its car-vending machines, said it sold or securitized loans worth about $2 billion as of June 8, compared with $1.3 billion sold or securitized as of May 4. Analysts also echoed worries about Carvana's plans to profitably return to growth given the existing debt load. Last month, Carvana said it expects to post a profit in the current-quarter and planned to further bring down excess used-car inventory. "Volume is still decreasing year-over-year," Carvana chief Ernest C. Garcia said in a conference on Thursday.
Persons: Michael Baker, Davidson, Carvana, Brad Erickson, Ernest C, Garcia, Priyamvada, Shinjini Organizations: Carvana, RBC, Thomson Locations: receivables, 4Q22, 1Q23, Bengaluru
Here are Tuesday's biggest calls on Wall Street: Barclays reiterates Tesla as overweight Barclays said the stock is well positioned for more gains. "The dominant narrative ahead for Tesla is one of growth, with expectations for significant volume growth and share gains in the years ahead." Roth MKM upgrades Constellation Brands to buy from hold Roth MKM said it sees the company accelerating market share gains. "As weather warms, we expect the share gains for Modelo Especial and Corona to accelerate. Morgan Stanley upgrades Medtronic to overweight from equal weight Morgan Stanley said in its upgrade of Medtronic that it's turning an operational corner. "
CNBC Pro combed through top Wall Street research to find stocks to buy for the rest of 2023. Fastly "Fastly is laying the foundation for long-term success," according to Bank of America analyst Tal Liani. "We view this as a positive inflection point which should remove the negative narrative of AWS' Gen-AI market position vs. peers," Lee said. ConocoPhillips - Goldman Sachs, buy rating "Stay Buy with Conoco our top pick among the Big 3 US majors for 2H2023. … We view this as a positive inflection point which should remove the negative narrative of AWS' Gen-AI market position vs.
Its goal has been to coax consumers to make the leap to its brand with the lower prices. Finding an 'irresistible' price Tesla's price cuts are an effort to take advantage of that growing market. "We have written extensively on the drag EVs have on margins for legacy [original equipment manufacturers] and the impact of EV price deflation. She added that the price cuts are an effort for Tesla to retain market dominance and stave off competition from big competitors like Ford. Longer term, Tesla's price fluctuations could do more harm than good if they end up turning consumers off.
Here are 3 reasons to buy gold, according to UBS
  + stars: | 2023-05-18 | by ( Fred Imbert | ) www.cnbc.com   time to read: +2 min
Gold stumbled this month after a strong start to the year. However, UBS Global Wealth Management sees more upside ahead. The precious metal is down about 2% in May, as optimism around a possible U.S. debt ceiling deal grows. "Based on the 1Q23 data from the World Gold Council, central banks are on track to buy around 700 metric tons of gold this year, much higher than the average since 2010 of below 500 metric tons," he wrote. Dollar weakness: The dollar index, which tracks the U.S. currency's performance against six others, is down 0.2% over the past year, which should be supportive for gold prices.
Here are Tuesday's biggest calls on Wall Street: JPMorgan reiterates Netflix as overweight JPMorgan said paid password sharing should be a financial tailwind for Netflix. Mizuho reiterates SoFi as buy Mizuho said it's standing by shares of SoFi. Citi reiterates Deere as buy Citi said it's standing by its buy rating on shares of Deere. Citi upgrades Williams Companies to buy from neutral Citi said the petroleum stock is oversold. Citi reiterates FedEx as buy Citi said it's standing by its buy rating FedEx shares.
The price worries could suggest trouble for retailers that are relying on promotions to win over cost-conscious customers. Retailers that largely sell apparel, shoes or home goods are most likely to see squeezed margins due to promotions this earnings season, according to analysts and research. In a Thursday research note, UBS analysts reported softline promotions increased to 17% in April, a 2 percentage point jump year-over-year. Softline retailers are those that sell "soft" goods such as apparel. "This is likely a bad sign for Softline retailers' 1Q23 gross margins."
Jefferies says although electronic gaming machines supplier PlayAGS has fallen to deep "out-of-favor status," the "severely undervalued small-cap stock" is nevertheless a prime opportunity for investors. The firm upgraded PlayAGS shares to buy from hold, and raised its price target to $10, implying 89% upside from Friday's close. Katz noted that PlayAGS's first-quarter earnings and revenue topped Jefferies' estimates. The company posted revenue of $83 million, higher than Jefferies' $75 million, and adjusted earnings before taxes, depreciation and amortization of $37 million that topped the firm's $33 million estimate. After surging 13% Monday on the upgrade, PlayAGS shares are now ahead by almost 18% year-to-date, after sliding 25% in 2022.
Raymond James thinks Charles Schwab 's core business remains healthy despite concerns about the volatility in the banking system. Schwab's "core franchise [is] still healthy," the analyst wrote in a Monday note to clients. "Importantly, concerns about the stability of the banking system have not impaired Schwab's ability to attract new accounts and assets. In fact, net new accounts grew at a 4.3% annualized pace in 1Q23 while core net new assets grew at a 7.5% pace." To be sure, he noted that elevated cash sorting "is a stark reminder of the interest rate risk inherent within Schwab's business model."
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