⁠Wall St Engine
JAPAN 🇯🇵 1Q GDP -0.7% ON ANNUALIZED BASIS; EST. -0.3%
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⁠Wall St Engine
Microsoft $MSFT has proposed selling Office without Teams at a lower price and offering rivals better interoperability, aiming to resolve the EU's antitrust case stemming from Slack’s 2020 complaint. The EU Commission is now seeking feedback before making a final decision.
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⁠Wall St Engine
Trump, speaking aboard Air Force One, said he “may” call Putin to help restart talks, adding, “He and I will meet. I think we’ll solve it — or maybe not — but at least we’ll know. And if we don’t solve it, it’ll be very interesting.”
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⁠Wall St Engine
RUSSIA, UKRAINE, TURKEY DELEGATIONS HOLD MEETING IN ISTANBUL - BBG
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⁠Wall St Engine
To clarify, Bill Ackman posted on X that while their 13F shows they sold $NKE common stock, it doesn’t reflect that they replaced it with OTC call options in a similar notional size. https://t.co/ReuP0jkEnJ

BILL ACKMAN’S PERSHING SQUARE CAPITAL MANAGEMENT JUST FILED ITS Q1'24 13F.

HE SOLD OFF HIS ENTIRE POSITION IN $NKE, & ADDED $UBER — NOW HIS NUMBER ONE HOLDING.

HERE’S A LOOK AT HIS FULL PORTFOLIO: https://t.co/InWXLQ4zFj - Wall St Engine
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⁠Wall St Engine
BREAKING: Novo Nordisk CEO Lars Fruergaard Jørgensen to step down

After 8 years leading $NVO through major growth, CEO Lars Jørgensen will step down amid recent market pressure and share price decline. He’ll stay on during the transition as a search for his successor begins. Lars Rebien Sørensen to join the board as an observer.
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⁠Wall St Engine
Nvidia $NVDA is setting up a new R&D center in Shanghai, per FT, aiming to better serve China’s tech needs while navigating U.S. export curbs. Core chip design and production will remain outside China to comply with IP rules.
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⁠Wall St Engine
Tesla $TSLA appoints Chipotle exec Jack Hartung to its Board of Directors, effective June 1. Hartung will also join the Audit Committee.
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⁠Wall St Engine
Raymond James Reiterates Market Perform on $UNH, Says Earnings Quality Now a Concern, Cuts Estimates

Analyst comments: "We are reiterating our Market Perform rating on UNH and taking a sharper pencil to our numbers, cutting our 2025 adjusted EPS estimate to $20 (from $22) and our 2026 estimate to $23 (from $25). We have rebased 2024 EPS to $23.97 after adjusting for $4.0 billion ($3.70 EPS) in one-time accounting gains UNH booked in 2024.

These included: 1) $3.3 billion in gains from 'strategic portfolio refinement'—essentially asset sales—with $1.4 billion from Optum Health, $1.1 billion from UHC, and $800 million from Optum Insight; and 2) $710 million in investment income tied to unrealized gains in the venture portfolio. We treated the $3.3 billion as pretax and the $710 million as after-tax.

Needless to say, we think these earnings are low-quality and non-recurring. Our assumptions include: 1) rebasing 2024 EPS to $23.97; 2) assuming Optum Health delivers a 10% margin on ~$45B FFS revenue and 0% on ~$60B risk revenue for $4.5B in 2025 EBIT; 3) a ~2% y/y margin decline at UHC due to increased MA cost trends, implying MA margins down ~400 bps y/y; and 4) Optum Insight performing within guidance and Optum Rx slightly outperforming. That said, we’re unclear how Optum Insight can grow EBIT by ~$920M while overcoming the $800M 2024 gain.

The punch line here is that—beyond known macro headwinds—UNH is now also an earnings quality and visibility story."

Analyst: John Ransom
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⁠Wall St Engine
NOVO NORDISK CHAIR $NVO: NO CHANGE TO NOVO NORDISK 2025 GUIDANCE
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⁠Wall St Engine
Yipit on $GOOGL: “Search is alive and well.” Weekly ad spend growth picked up over the last two weeks (both nominal and FX-adjusted), and 2Q25 Ad + Search & Other revenue trends look ahead of Visible Alpha consensus so far this quarter.
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⁠Wall St Engine
JPMorgan Raises $CAVA PT to $115 from $110, Says Long-Term Growth Story Reaffirmed by 1Q25 Results, Maintains Overweight Rating

Analyst comments: "CAVA shares have traded in a very wide range since its $22 IPO on June 14, 2023, reaching as high as $172 on November 13, 2024. First-quarter 2025 results reaffirm our recent re-upgrade of the stock at $81 on March 20, 2025, with a 'buy now and own for the long term' opinion.

CAVA has significant U.S. white space for expansion beyond its current multi-market success, is generating free cash flow unusually early on a high cash balance, and has several near-term operational and brand initiatives to drive both sales and profits. We see the current 382 units expanding to a range of 2,000–3,500 units through 2037–2043. Our valuation blends these scenarios at 20x terminal EPS and a 7% discount rate to arrive at our new $115 December 2026 price target, up from $110 (Dec 2025)."

Analyst: John Ivankoe
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⁠Wall St Engine
$GOOGL CEO: “Quantum feels like where AI was in 2015... in 5 years, you’ll see the ‘aha’ moment — useful computation far better than classical.” https://t.co/clXEmN0GMH
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⁠Wall St Engine
US APR HOUSING STARTS +1.6% TO 1.361M; CONSENSUS +2.7%

BUILDING PERMITS -4.7% TO 1.412M RATE IN APR
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⁠Investing visuals
$MSFT: a breakdown of the operating system of the world. https://t.co/WcCBo97XPk
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