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BofA Raises $AMZN PT to $248 from $230 - Buy; 'Robotic ramp accelerating and expanding to delivery'
Analyst comments: "Amazon’s robot capabilities have ramped since the Kiva acquisition in 2012, and Amazon now has over 750,000 robots assisting with 75% of customer orders. Still, with AI capabilities ramping, Amazon’s first 12th Gen. automated fulfillment center (FC) launched in late-2024, and eight new robots just announced in May that are primarily focused on delivery station efficiencies, the robotics cycle is early. Going forward, we expect Amazon to leverage robots to: 1) reduce labor dependency; 2) increase order accuracy; and 3) improve warehouse efficiency, driving material cost savings. Amazon’s 2024 Retail operating profit margin of 5.4% has made big progress since ‘22 and we see long-term potential retail margins at 11% assuming a 55% margin on advertising, 20% on 3P services, 5% for subscriptions, breakeven 1P, and $10bn in annual investment spend. We think robots and drones will increase Amazon’s shipping speed advantages, and could add another 2pts to Amazon’s long-term retail margins, helping move 1P toward better profitability in a very price-transparent AI world. Raise PO to $248 on recent SaaS and retail sector multiple expansion and reiterate Buy."
Analyst: Justin Post
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BofA Raises $AMZN PT to $248 from $230 - Buy; 'Robotic ramp accelerating and expanding to delivery'
Analyst comments: "Amazon’s robot capabilities have ramped since the Kiva acquisition in 2012, and Amazon now has over 750,000 robots assisting with 75% of customer orders. Still, with AI capabilities ramping, Amazon’s first 12th Gen. automated fulfillment center (FC) launched in late-2024, and eight new robots just announced in May that are primarily focused on delivery station efficiencies, the robotics cycle is early. Going forward, we expect Amazon to leverage robots to: 1) reduce labor dependency; 2) increase order accuracy; and 3) improve warehouse efficiency, driving material cost savings. Amazon’s 2024 Retail operating profit margin of 5.4% has made big progress since ‘22 and we see long-term potential retail margins at 11% assuming a 55% margin on advertising, 20% on 3P services, 5% for subscriptions, breakeven 1P, and $10bn in annual investment spend. We think robots and drones will increase Amazon’s shipping speed advantages, and could add another 2pts to Amazon’s long-term retail margins, helping move 1P toward better profitability in a very price-transparent AI world. Raise PO to $248 on recent SaaS and retail sector multiple expansion and reiterate Buy."
Analyst: Justin Post
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Tom Cruise’s Mission: Impossible – The Final Reckoning just delivered the biggest opening for a U.S. film in China this year, pulling in $25.2M from nearly 12,000 screens. https://t.co/xeVlSacwIX
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Tom Cruise’s Mission: Impossible – The Final Reckoning just delivered the biggest opening for a U.S. film in China this year, pulling in $25.2M from nearly 12,000 screens. https://t.co/xeVlSacwIX
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Wall St Engine
LVMH’s Dior just named Jonathan Anderson as its sole creative director, overseeing menswear, womenswear, couture, & accessories.
He replaces Maria Grazia Chiuri as Dior looks to revive sales. Anderson, already known for transforming Loewe, will debut women’s designs in September https://t.co/oVQv1FMZW1
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LVMH’s Dior just named Jonathan Anderson as its sole creative director, overseeing menswear, womenswear, couture, & accessories.
He replaces Maria Grazia Chiuri as Dior looks to revive sales. Anderson, already known for transforming Loewe, will debut women’s designs in September https://t.co/oVQv1FMZW1
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Wall St Engine
$DKNG | Illinois lawmakers approved a $55.2B budget that includes a new per-bet sports gambling fee—$0.25 on the first 20M online bets, $0.50 after.
It comes just a year after Illinois hiked its sports betting tax to a progressive 20–40% range. Despite opposition from operators and users, Gov. Pritzker says he’ll sign it. The fee is expected to raise $36M annually.
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$DKNG | Illinois lawmakers approved a $55.2B budget that includes a new per-bet sports gambling fee—$0.25 on the first 20M online bets, $0.50 after.
It comes just a year after Illinois hiked its sports betting tax to a progressive 20–40% range. Despite opposition from operators and users, Gov. Pritzker says he’ll sign it. The fee is expected to raise $36M annually.
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Wall St Engine
$META wants to fully automate ad creation with AI by end of 2026, per WSJ. Brands could soon upload a product image and budget, and Meta’s AI would handle the rest—creating the ad, setting targeting, and even tweaking visuals by location. https://t.co/UR6GebXQ8o
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$META wants to fully automate ad creation with AI by end of 2026, per WSJ. Brands could soon upload a product image and budget, and Meta’s AI would handle the rest—creating the ad, setting targeting, and even tweaking visuals by location. https://t.co/UR6GebXQ8o
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Wall St Engine
KEYBANC says the "One Big Beautiful Bill" could be a win for comm services stocks if passed, especially for $CHTR, $T, $VZ, $CMCSA, and $TMUS. It restores key TCJA perks like R&D credits and 100% bonus depreciation, which analyst Brandon Nispel sees as “most notable for CHTR,” expecting a 30% FCF boost and >$60 in FCFps by 2027.
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KEYBANC says the "One Big Beautiful Bill" could be a win for comm services stocks if passed, especially for $CHTR, $T, $VZ, $CMCSA, and $TMUS. It restores key TCJA perks like R&D credits and 100% bonus depreciation, which analyst Brandon Nispel sees as “most notable for CHTR,” expecting a 30% FCF boost and >$60 in FCFps by 2027.
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Wall St Engine
CITI reiterates Buy on $AAPL with a $240 PT ahead of WWDC (June 9), saying Apple’s “full stack” position—custom silicon, tight ecosystem, and 2.35B users—keeps it well placed for the personal AI era. While AI-powered Siri features are delayed to 2026, Citi sees upside from expected Apple Intelligence updates and broader platform enhancements.
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CITI reiterates Buy on $AAPL with a $240 PT ahead of WWDC (June 9), saying Apple’s “full stack” position—custom silicon, tight ecosystem, and 2.35B users—keeps it well placed for the personal AI era. While AI-powered Siri features are delayed to 2026, Citi sees upside from expected Apple Intelligence updates and broader platform enhancements.
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Wall St Engine
BofA Upgrades $BA to Buy from Neutral, Raises PT from $185 to $260 - Street High
Analyst comments: "Boeing aircraft have emerged as the favored trade tool for the Trump Administration in recent trade deals. We view those recent deals struck in the UK (32 aircraft orders), Qatar (210 aircraft orders), UAE (28 aircraft orders), and China (removing the ban on BA aircraft), as setting a precedent for future global trade negotiations, to BA’s benefit. That said, Boeing’s backlog hasn’t been the lynch pin to our valuation. However, we do see the progress in stabilizing production, carve-outs alleviating FCF burn, and a renewed focus across the portfolio all performing in concert with the “favored trade mechanism” status creating a buying opportunity. Therefore, we upgrade Boeing to a Buy (from Neutral) and increase our PO to $260 (from $185) which implies FCF of $9/share."
Analyst: Ronald Epstein
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BofA Upgrades $BA to Buy from Neutral, Raises PT from $185 to $260 - Street High
Analyst comments: "Boeing aircraft have emerged as the favored trade tool for the Trump Administration in recent trade deals. We view those recent deals struck in the UK (32 aircraft orders), Qatar (210 aircraft orders), UAE (28 aircraft orders), and China (removing the ban on BA aircraft), as setting a precedent for future global trade negotiations, to BA’s benefit. That said, Boeing’s backlog hasn’t been the lynch pin to our valuation. However, we do see the progress in stabilizing production, carve-outs alleviating FCF burn, and a renewed focus across the portfolio all performing in concert with the “favored trade mechanism” status creating a buying opportunity. Therefore, we upgrade Boeing to a Buy (from Neutral) and increase our PO to $260 (from $185) which implies FCF of $9/share."
Analyst: Ronald Epstein
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Truist Securities Initiates Coverage on $PYPL with Sell Rating, PT $68; 'we worry that PayPal is increasing its lending business at the wrong point in the economic cycle'
Analyst comments: "We agree with many of the strategic changes that the new management team is undertaking (improving the branded checkout UX, Fastlane rollout, being less aggressive on Braintree pricing, etc.). That said, we model gross profit growth that is below the Street (2024-2027E CAGR - Truist: +2%, consensus: +5%) due mainly to competitive pressure in their branded checkout business from Apple Pay and Shop Pay as well as a lower level of float income as interest rates decline. Similar to Block, we also worry that PayPal is increasing its lending business at the wrong point in the economic cycle (their on balance sheet loans were up +31% YoY in 1Q25) which creates growover risk in 2026. All-in-all, we see better value in other large caps under coverage (FI, MA, V)."
Analyst: Matthew Coad
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Truist Securities Initiates Coverage on $PYPL with Sell Rating, PT $68; 'we worry that PayPal is increasing its lending business at the wrong point in the economic cycle'
Analyst comments: "We agree with many of the strategic changes that the new management team is undertaking (improving the branded checkout UX, Fastlane rollout, being less aggressive on Braintree pricing, etc.). That said, we model gross profit growth that is below the Street (2024-2027E CAGR - Truist: +2%, consensus: +5%) due mainly to competitive pressure in their branded checkout business from Apple Pay and Shop Pay as well as a lower level of float income as interest rates decline. Similar to Block, we also worry that PayPal is increasing its lending business at the wrong point in the economic cycle (their on balance sheet loans were up +31% YoY in 1Q25) which creates growover risk in 2026. All-in-all, we see better value in other large caps under coverage (FI, MA, V)."
Analyst: Matthew Coad
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LONG BONDS BREAK FROM THE PACK: While 2-, 5-, and 10-year Treasury yields have dropped YTD, the 30-year has climbed 15 bps — the only maturity moving up. https://t.co/ds1mDjbHC4
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LONG BONDS BREAK FROM THE PACK: While 2-, 5-, and 10-year Treasury yields have dropped YTD, the 30-year has climbed 15 bps — the only maturity moving up. https://t.co/ds1mDjbHC4
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Politico reports the Trump administration is planning to ease post-2008 capital rules for big banks. The Fed, OCC, and FDIC are working on a proposal to lower the supplementary leverage ratio. Treasury Sec. Scott Bessent says scaling back the supplementary leverage ratio could help banks buy more Treasuries and lower yields by up to 60 bps “over time.”
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Politico reports the Trump administration is planning to ease post-2008 capital rules for big banks. The Fed, OCC, and FDIC are working on a proposal to lower the supplementary leverage ratio. Treasury Sec. Scott Bessent says scaling back the supplementary leverage ratio could help banks buy more Treasuries and lower yields by up to 60 bps “over time.”
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