Wall St Engine
WeRide $WRD is scaling into Saudi Arabia, launching Robotaxi trials on Uber and deploying Robobuses and Robosweepers across Riyadh and AlUla. Backed by Vision 2030, the move supports Saudi’s smart city push. Full rollout expected by late 2025, following similar launches in Abu Dhabi and Dubai.
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WeRide $WRD is scaling into Saudi Arabia, launching Robotaxi trials on Uber and deploying Robobuses and Robosweepers across Riyadh and AlUla. Backed by Vision 2030, the move supports Saudi’s smart city push. Full rollout expected by late 2025, following similar launches in Abu Dhabi and Dubai.
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Wall St Engine
Jefferies Upgrades $LUV to Hold from Underperform, Raises PT to $33 from $24
Analyst comments: "We met with CEO & Vice Chair Bob Jordan and CFO Tom Doxey on our Dallas Bus Tour. Key takeaways: (1) $1.8 billion of initiatives to drive EBIT—$1 billion from revenue management (yield, service cuts, distribution), $370 million in cost reductions, and $400 million from bags, basic fares, and loyalty programs; (2) 26% ELR seats maximizes revenue per square foot and maintains scarcity; (3) two-thirds of managers beat on Q1 costs; (4) unlocking trapped earnings in the order book with maintenance certainty via long-term service agreements; and (5) continued evaluation of product and network. We upgrade to Hold on the trajectory of these initiatives."
Analyst: Julian Dumoulin-Smith
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Jefferies Upgrades $LUV to Hold from Underperform, Raises PT to $33 from $24
Analyst comments: "We met with CEO & Vice Chair Bob Jordan and CFO Tom Doxey on our Dallas Bus Tour. Key takeaways: (1) $1.8 billion of initiatives to drive EBIT—$1 billion from revenue management (yield, service cuts, distribution), $370 million in cost reductions, and $400 million from bags, basic fares, and loyalty programs; (2) 26% ELR seats maximizes revenue per square foot and maintains scarcity; (3) two-thirds of managers beat on Q1 costs; (4) unlocking trapped earnings in the order book with maintenance certainty via long-term service agreements; and (5) continued evaluation of product and network. We upgrade to Hold on the trajectory of these initiatives."
Analyst: Julian Dumoulin-Smith
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Wall St Engine
DA Davidson Upgrades $BRBR to Buy from Neutral, Sets PT at $85; "screens as a potential takeout target"
Analyst comments: "In the wake of its 21% selloff post 2Q25 results on May 6, we upgrade BRBR to Buy and insert it as our best idea in Food. Near term, we don't think retailer inventory reductions portend a bigger headwind, supported by our analysis herein which suggests: (1) Premier Protein is punching above its weight on shelf; (2) more broadly, allocation for protein shakes—and the performance subsegment in particular—should continue to grow. Long term, secular tailwinds and BRBR levers point to sustained above-algorithm growth into the foreseeable future. On weakness, BRBR also screens as a potential takeout target."
Analyst: Brian Holland
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DA Davidson Upgrades $BRBR to Buy from Neutral, Sets PT at $85; "screens as a potential takeout target"
Analyst comments: "In the wake of its 21% selloff post 2Q25 results on May 6, we upgrade BRBR to Buy and insert it as our best idea in Food. Near term, we don't think retailer inventory reductions portend a bigger headwind, supported by our analysis herein which suggests: (1) Premier Protein is punching above its weight on shelf; (2) more broadly, allocation for protein shakes—and the performance subsegment in particular—should continue to grow. Long term, secular tailwinds and BRBR levers point to sustained above-algorithm growth into the foreseeable future. On weakness, BRBR also screens as a potential takeout target."
Analyst: Brian Holland
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Wall St Engine
$PDD Holdings Q1 Earnings Highlights
🔹 Revenue: RMB95.67B (Est. RMB102.98B) 🔴; +10% YoY
🔹 Adj EPS: RMB11.41 (Est. RMB19.44) 🔴; -45% YoY
🔹 Non-GAAP Net Income: RMB16.92B; -45% YoY
🔹 Non-GAAP Operating Profit: RMB18.26B; -36% YoY
🔹 Operating Margin: 16.8% (vs. 29.9% YoY)
Segment Revenue Breakdown:
🔹 Online Marketing Services & Others: RMB48.72B; +15% YoY
🔹 Transaction Services: RMB46.95B; +6% YoY
Cost & Expense Trends:
🔹 Cost of Revenue: RMB40.95B; +25% YoY
🔹 Total Operating Expenses: RMB38.64B; +37% YoY
↳ Sales & Marketing: RMB33.40B; +43% YoY
↳ R&D: RMB3.58B; +23% YoY
↳ G&A: RMB1.66B; -9% YoY
Strategic Investments:
🔸 Management significantly ramped up ecosystem investments to support merchants and adapt to shifting trade dynamics.
🔸 Increased promotional and marketing spend to drive demand across both Pinduoduo and Temu platforms.
Macro & Platform Commentary:
🔸 Pinduoduo impacted by weak domestic consumption in China despite stimulus and price discounts.
🔸 Temu’s growth outlook clouded by shifting global trade policy—particularly U.S. tariff policy under the de minimis rule.
🔸 Management highlighted “substantial ecosystem investments” to aid long-term platform resilience despite short-term profitability drag.
Cash Position:
🔹 Net Cash from Operations: RMB15.52B (US$2.14B)
🔹 Cash & Short-Term Investments: RMB364.5B (US$50.2B)
Executive Commentary:
Chairman Lei Chen:
🔸 “We made substantial investments this quarter to support merchants amid rapid change—trading short-term profitability for long-term platform health.”
Co-CEO Jiazhen Zhao:
🔸 “Building a stronger merchant ecosystem is vital in delivering great consumer experience. These ecosystem investments are essential during uncertain times.”
VP of Finance Jun Liu:
🔸 “Growth is expected to slow as our business matures and macro challenges intensify. Results will reflect sustained ecosystem investments.”
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$PDD Holdings Q1 Earnings Highlights
🔹 Revenue: RMB95.67B (Est. RMB102.98B) 🔴; +10% YoY
🔹 Adj EPS: RMB11.41 (Est. RMB19.44) 🔴; -45% YoY
🔹 Non-GAAP Net Income: RMB16.92B; -45% YoY
🔹 Non-GAAP Operating Profit: RMB18.26B; -36% YoY
🔹 Operating Margin: 16.8% (vs. 29.9% YoY)
Segment Revenue Breakdown:
🔹 Online Marketing Services & Others: RMB48.72B; +15% YoY
🔹 Transaction Services: RMB46.95B; +6% YoY
Cost & Expense Trends:
🔹 Cost of Revenue: RMB40.95B; +25% YoY
🔹 Total Operating Expenses: RMB38.64B; +37% YoY
↳ Sales & Marketing: RMB33.40B; +43% YoY
↳ R&D: RMB3.58B; +23% YoY
↳ G&A: RMB1.66B; -9% YoY
Strategic Investments:
🔸 Management significantly ramped up ecosystem investments to support merchants and adapt to shifting trade dynamics.
🔸 Increased promotional and marketing spend to drive demand across both Pinduoduo and Temu platforms.
Macro & Platform Commentary:
🔸 Pinduoduo impacted by weak domestic consumption in China despite stimulus and price discounts.
🔸 Temu’s growth outlook clouded by shifting global trade policy—particularly U.S. tariff policy under the de minimis rule.
🔸 Management highlighted “substantial ecosystem investments” to aid long-term platform resilience despite short-term profitability drag.
Cash Position:
🔹 Net Cash from Operations: RMB15.52B (US$2.14B)
🔹 Cash & Short-Term Investments: RMB364.5B (US$50.2B)
Executive Commentary:
Chairman Lei Chen:
🔸 “We made substantial investments this quarter to support merchants amid rapid change—trading short-term profitability for long-term platform health.”
Co-CEO Jiazhen Zhao:
🔸 “Building a stronger merchant ecosystem is vital in delivering great consumer experience. These ecosystem investments are essential during uncertain times.”
VP of Finance Jun Liu:
🔸 “Growth is expected to slow as our business matures and macro challenges intensify. Results will reflect sustained ecosystem investments.”
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Wall St Engine
Morgan Stanley Reiterates Overweight Rating on $AAPL, Maintains PT at $235; Is a 25% tariff enough to incentivize Apple to move iPhone production to the US?
Analyst comments: "Last Friday, President Trump - via his social media platform - threatened a 25% tariff on smartphones, including the iPhone, imported into the US after the end of June.
The post was seemingly a response to recent reports of Apple's contract manufacturing partners expanding component production and assembly facilities in India as Apple shifts US-bound iPhone production from China to India.
While questions of legality remain (and are discussed below), big picture, our view remains unchanged that a 25% import tariff is not enough to incentivize Apple to shift production of US-bound iPhones to the United States - the time to market would be too long, and the costs associated with building an iPhone in the US would be too high relative to the incremental cost burden of a 25% tariff.
Of course, Apple's defiance to this directive: (1) likely means CEO Tim Cook's status with the current administration deteriorates from here; and (2) risks further tariff escalation (is a 50% tariff enough to shift production to the US?) - adding another brick to the wall of worry Apple investors need to climb - though recent history suggests that any form of negotiation, potentially including an incremental commitment to the $500B Apple has committed to investing in the US, could be a way to neutralize Friday's threat."
Analyst: Erik Woodring
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Morgan Stanley Reiterates Overweight Rating on $AAPL, Maintains PT at $235; Is a 25% tariff enough to incentivize Apple to move iPhone production to the US?
Analyst comments: "Last Friday, President Trump - via his social media platform - threatened a 25% tariff on smartphones, including the iPhone, imported into the US after the end of June.
The post was seemingly a response to recent reports of Apple's contract manufacturing partners expanding component production and assembly facilities in India as Apple shifts US-bound iPhone production from China to India.
While questions of legality remain (and are discussed below), big picture, our view remains unchanged that a 25% import tariff is not enough to incentivize Apple to shift production of US-bound iPhones to the United States - the time to market would be too long, and the costs associated with building an iPhone in the US would be too high relative to the incremental cost burden of a 25% tariff.
Of course, Apple's defiance to this directive: (1) likely means CEO Tim Cook's status with the current administration deteriorates from here; and (2) risks further tariff escalation (is a 50% tariff enough to shift production to the US?) - adding another brick to the wall of worry Apple investors need to climb - though recent history suggests that any form of negotiation, potentially including an incremental commitment to the $500B Apple has committed to investing in the US, could be a way to neutralize Friday's threat."
Analyst: Erik Woodring
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Wall St Engine
JPMORGAN: 'INTERNATIONAL MARKETS SHOULD CONTINUE TRADING INCREASINGLY MORE FAVORABLY THIS YEAR'
"Over the following months, our view is that bond yields could move up for the wrong reasons, due to tariff-driven inflation pickup and rising fiscal concerns, while at the same time activity sees softening given the payback for frontloading of orders. We are not advocates of decoupling, but one should be using this period for rotation; our broader Strategy view remains that International markets should continue trading increasingly more favorably this year. Within Europe, the performance has been very selective so far, where winners were Defense, Financials, Utilis, Telcos, Industrials and Construction, but many areas failed to participate, including a range of cyclical sectors, such as Autos, Luxury, Mining, Energy, Chemicals and Semiconductors.'
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JPMORGAN: 'INTERNATIONAL MARKETS SHOULD CONTINUE TRADING INCREASINGLY MORE FAVORABLY THIS YEAR'
"Over the following months, our view is that bond yields could move up for the wrong reasons, due to tariff-driven inflation pickup and rising fiscal concerns, while at the same time activity sees softening given the payback for frontloading of orders. We are not advocates of decoupling, but one should be using this period for rotation; our broader Strategy view remains that International markets should continue trading increasingly more favorably this year. Within Europe, the performance has been very selective so far, where winners were Defense, Financials, Utilis, Telcos, Industrials and Construction, but many areas failed to participate, including a range of cyclical sectors, such as Autos, Luxury, Mining, Energy, Chemicals and Semiconductors.'
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Wall St Engine
In a global first, the UAE will give every resident free access to ChatGPT Plus as part of a major partnership with OpenAI. The deal includes building Stargate UAE, a 1GW AI data center in Abu Dhabi, and is part of OpenAI’s new “OpenAI for Countries” push to help nations build their own AI stack.
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In a global first, the UAE will give every resident free access to ChatGPT Plus as part of a major partnership with OpenAI. The deal includes building Stargate UAE, a 1GW AI data center in Abu Dhabi, and is part of OpenAI’s new “OpenAI for Countries” push to help nations build their own AI stack.
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Dimitry Nakhla | Babylon Capital®
10 High-Quality Stocks with Double-Digit EPS CAGR Estimates for the Next 3 Years 💸
💵 Visa $V 13%
💰 Intuit $INTU 13%
🖱️ Google $GOOG 12%
📦 Amazon $AMZN 19%
💳 Mastercard $MA 16%
☁️ Microsoft $MSFT 15%
📊 Salesforce $CRM 13%
📈 S&P Global $SPGI 11%
🤝 MercadoLibre $MELI 35%
☀️ ASML Holding $ASML 19%
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10 High-Quality Stocks with Double-Digit EPS CAGR Estimates for the Next 3 Years 💸
💵 Visa $V 13%
💰 Intuit $INTU 13%
🖱️ Google $GOOG 12%
📦 Amazon $AMZN 19%
💳 Mastercard $MA 16%
☁️ Microsoft $MSFT 15%
📊 Salesforce $CRM 13%
📈 S&P Global $SPGI 11%
🤝 MercadoLibre $MELI 35%
☀️ ASML Holding $ASML 19%
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Wall St Engine
Prepare yourself—here’s what Trump’s likely to say this week: https://t.co/A9JfMR38Bx
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Prepare yourself—here’s what Trump’s likely to say this week: https://t.co/A9JfMR38Bx
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Wall St Engine
Trump: I was extremely satisfied with the 50% Tariff allotment on the European Union, especially since they were “slow walking (to put it mildly!), our negotiations with them. Remember, I am empowered to “SET A DEAL” for Trade into the United States if we are unable to make a deal, or are treated unfairly. I have just been informed that the E.U. has called to quickly establish meeting dates. This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.
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Trump: I was extremely satisfied with the 50% Tariff allotment on the European Union, especially since they were “slow walking (to put it mildly!), our negotiations with them. Remember, I am empowered to “SET A DEAL” for Trade into the United States if we are unable to make a deal, or are treated unfairly. I have just been informed that the E.U. has called to quickly establish meeting dates. This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.
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