Wall St Engine
Loop Capital Raises Instacart $CART Price Target to $58 from $52, Keeps Buy Rating — Wonders Why Uber Hasn’t Made a Move
Analyst comments: "Why wouldn’t Uber acquire Instacart? Uber is clearly committed to the grocery category for its large TAM, advertising opportunity and potential synergies. Both companies report solid progress with the partnership thus far. DoorDash is ahead and appears to be moving faster than Uber Eats as a challenger in the grocery delivery space. Instacart has majority share of order value, extensive category expertise and deep relationships with grocers – a supply advantage for at least the next 1-3 years in our view. The cost synergies between Uber and Instacart are likely significant, and user/ channel synergies could be as well. Instacart has a performance-driven advertising business driven by shopper data and a retail media strategy. Uber is historically acquisitive. With Instacart’s CEO Fidji Sumo set to leave for OpenAI, it seems to us that the only reason would be price. Instacart trades at half the EBITDA multiple of Uber with a 600bps slower growth outlook in consensus. This is before any cost, upsell or operational synergies. It seems to us that an eventual combination is more likely than not."
Analyst: Rob Anderson
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Loop Capital Raises Instacart $CART Price Target to $58 from $52, Keeps Buy Rating — Wonders Why Uber Hasn’t Made a Move
Analyst comments: "Why wouldn’t Uber acquire Instacart? Uber is clearly committed to the grocery category for its large TAM, advertising opportunity and potential synergies. Both companies report solid progress with the partnership thus far. DoorDash is ahead and appears to be moving faster than Uber Eats as a challenger in the grocery delivery space. Instacart has majority share of order value, extensive category expertise and deep relationships with grocers – a supply advantage for at least the next 1-3 years in our view. The cost synergies between Uber and Instacart are likely significant, and user/ channel synergies could be as well. Instacart has a performance-driven advertising business driven by shopper data and a retail media strategy. Uber is historically acquisitive. With Instacart’s CEO Fidji Sumo set to leave for OpenAI, it seems to us that the only reason would be price. Instacart trades at half the EBITDA multiple of Uber with a 600bps slower growth outlook in consensus. This is before any cost, upsell or operational synergies. It seems to us that an eventual combination is more likely than not."
Analyst: Rob Anderson
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Wall St Engine
FED BOSTIC ON MOODY'S D/G:
MOODY'S DOWNGRADE WILL CUT ACROSS ECONOMICS, FINANCIAL MARKETS... WILL HAVE IMPLICATIONS FOR COST OF CAPITAL, COULD RIPPLE THROUGH ECONOMY
WILL HAVE TO WAIT AND SEE ABOUT IMPACT OF DOWNGRADE ON DEMAND FOR U.S. DEBT
THE FED WILL HAVE TO DETERMINE HOW THE DOWNGRADE EFFECTS AN OUTLOOK THAT IS ALREADY IN FLUX
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FED BOSTIC ON MOODY'S D/G:
MOODY'S DOWNGRADE WILL CUT ACROSS ECONOMICS, FINANCIAL MARKETS... WILL HAVE IMPLICATIONS FOR COST OF CAPITAL, COULD RIPPLE THROUGH ECONOMY
WILL HAVE TO WAIT AND SEE ABOUT IMPACT OF DOWNGRADE ON DEMAND FOR U.S. DEBT
THE FED WILL HAVE TO DETERMINE HOW THE DOWNGRADE EFFECTS AN OUTLOOK THAT IS ALREADY IN FLUX
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Wall St Engine
FED BOSTIC ON RATES AND TARIFFS:
IT IS UNCLEAR IF CONSUMERS TODAY CAN TAKE ON THE FULL COST OF TARIFFS GIVEN STATE OF HOUSEHOLD BALANCE SHEETS, RECENT INFLATION
NUMBER OF RATE CUTS THIS YEAR DEPENDS ON HOW THINGS TURN OUT, THE DETAILS OF THE TARIFFS WILL MATTER
LEANING MORE TOWARDS ONLY ONE CUT THIS YEAR BECAUSE IT WILL TAKE TIME TO UNDERSTAND TARIFFS
THERE IS A SCENARIO WHERE TARIFFS BECOME LESS OF A STORY OVER TIME
TREASURY MARKETS ARE FUNCTIONING QUITE WELL
INFLATION NOT MOVING TO TARGET AS FAST AS ANTICIPATED
UNCERTAINTY MEANS THERE IS HIGHER RISK, THE FED ONLY CONTROLS ONE PART OF THE PRICE OF CAPITAL
AS THINGS GET MORE EXPENSIVE ITS CHANGES THE CHOICES POLICYMAKERS, HOUSEHOLDS AND BUSINESSES FACE, THAT WILL INFLUENCE THE PATH OF THE ECONOMY
RIGHT NOW SEE MORE RISK OF HIGHER INFLATION THAN THE EMPLOYMENT SIDE OF THE MANDATE
INFLATION EXPECTATIONS ARE MOVING IN A TROUBLING WAY
HAVE NOT SEEN MUCH MOVEMENT ON THE JOBS SIDE, FIRMS SAY THEY DONT HAVE PLANS FOR LARGE LAYOFFS
DECLINE IN SENTIMENT IS NOT YET PLAYING OUT IN THE MARKETPLACE
MAY BE AT A POINT WHERE THE DISTANCE BETWEEN SENTIMENT AND DATA STARTS TO NARROW; INVENTORY RUNDOWN MAY BE NEARING AN END
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FED BOSTIC ON RATES AND TARIFFS:
IT IS UNCLEAR IF CONSUMERS TODAY CAN TAKE ON THE FULL COST OF TARIFFS GIVEN STATE OF HOUSEHOLD BALANCE SHEETS, RECENT INFLATION
NUMBER OF RATE CUTS THIS YEAR DEPENDS ON HOW THINGS TURN OUT, THE DETAILS OF THE TARIFFS WILL MATTER
LEANING MORE TOWARDS ONLY ONE CUT THIS YEAR BECAUSE IT WILL TAKE TIME TO UNDERSTAND TARIFFS
THERE IS A SCENARIO WHERE TARIFFS BECOME LESS OF A STORY OVER TIME
TREASURY MARKETS ARE FUNCTIONING QUITE WELL
INFLATION NOT MOVING TO TARGET AS FAST AS ANTICIPATED
UNCERTAINTY MEANS THERE IS HIGHER RISK, THE FED ONLY CONTROLS ONE PART OF THE PRICE OF CAPITAL
AS THINGS GET MORE EXPENSIVE ITS CHANGES THE CHOICES POLICYMAKERS, HOUSEHOLDS AND BUSINESSES FACE, THAT WILL INFLUENCE THE PATH OF THE ECONOMY
RIGHT NOW SEE MORE RISK OF HIGHER INFLATION THAN THE EMPLOYMENT SIDE OF THE MANDATE
INFLATION EXPECTATIONS ARE MOVING IN A TROUBLING WAY
HAVE NOT SEEN MUCH MOVEMENT ON THE JOBS SIDE, FIRMS SAY THEY DONT HAVE PLANS FOR LARGE LAYOFFS
DECLINE IN SENTIMENT IS NOT YET PLAYING OUT IN THE MARKETPLACE
MAY BE AT A POINT WHERE THE DISTANCE BETWEEN SENTIMENT AND DATA STARTS TO NARROW; INVENTORY RUNDOWN MAY BE NEARING AN END
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Offshore
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Wall St Engine
KLARNA HITS 100M USERS, POSTS $92M LOSS ON ONETIME IPO COSTS
Klarna reported a $92M pretax loss in Q1 due to costs tied to its now-paused US IPO, but underlying profitability continued for the fourth straight quarter. Revenue rose 15% YoY to $701M, with U.S. sales up 33%. CEO says AI is boosting efficiency, and revenue per employee is on track to hit $1M.
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KLARNA HITS 100M USERS, POSTS $92M LOSS ON ONETIME IPO COSTS
Klarna reported a $92M pretax loss in Q1 due to costs tied to its now-paused US IPO, but underlying profitability continued for the fourth straight quarter. Revenue rose 15% YoY to $701M, with U.S. sales up 33%. CEO says AI is boosting efficiency, and revenue per employee is on track to hit $1M.
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Offshore
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Wall St Engine
Polymarket’s odds of a U.S. 🇺🇸 recession are sitting at 37%, way down from their peak. https://t.co/MUXUeFUKVX
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Polymarket’s odds of a U.S. 🇺🇸 recession are sitting at 37%, way down from their peak. https://t.co/MUXUeFUKVX
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Wall St Engine
CHINA VOWS TO TAKE MEASURES IF US INSISTS ON GOING ITS OWN WAY
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CHINA VOWS TO TAKE MEASURES IF US INSISTS ON GOING ITS OWN WAY
CHINA 🇨🇳 ISSUES STATEMENT ON US ADJUSTING CHIP EXPORT CONTROLS
CHINA SAYS US UNDERMINES CONCENSUS REACHED IN GENEVA TALKS
CHINA ASKS US TO 'CORRECT WRONGDOINGS' tweet
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Offshore
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Wall St Engine
S&P 500 Opening Bell Heatmap (May 19, 2025)
$SPY -0.92% 🟥
$QQQ -1.25% 🟥
$DJI -0.64% 🟥
$IWM -1.42% 🟥 https://t.co/b05lSdyqXG
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S&P 500 Opening Bell Heatmap (May 19, 2025)
$SPY -0.92% 🟥
$QQQ -1.25% 🟥
$DJI -0.64% 🟥
$IWM -1.42% 🟥 https://t.co/b05lSdyqXG
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