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Wall St Engine
In Jan 2023, 90% of college students were already using ChatGPT for assignments. Now, 1 in 4 teens use it—twice as many as last year.
Meanwhile, 59% of schools say cheating is on the rise, but 56% admit they’re still not ready for the AI era. https://t.co/usXmxEuGn7
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In Jan 2023, 90% of college students were already using ChatGPT for assignments. Now, 1 in 4 teens use it—twice as many as last year.
Meanwhile, 59% of schools say cheating is on the rise, but 56% admit they’re still not ready for the AI era. https://t.co/usXmxEuGn7
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Wall St Engine
$PONY.AI signed an MoU with Dubai’s Roads and Transport Authority to roll out robotaxis in the city. Supervised trials begin in 2025, with full driverless ops in 2026. It’s part of Dubai’s plan to make 25% of all trips autonomous by 2030. Mass production of its 7th-gen robotaxi starts later this year.
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$PONY.AI signed an MoU with Dubai’s Roads and Transport Authority to roll out robotaxis in the city. Supervised trials begin in 2025, with full driverless ops in 2026. It’s part of Dubai’s plan to make 25% of all trips autonomous by 2030. Mass production of its 7th-gen robotaxi starts later this year.
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Hidden Value Gems
I was invited to speak at the Mello 2025 conference, one of the largest events for UK private investors, with an opportunity to meet over 50 companies and investment funds. Guest speakers include the legendary investor Lord Lee (the first ISA millionaire), Christopher Mills (founder of Harwood Capital), and many others.
If you have not bought the tickets yet, you can buy a 1-Day or 2-Day ticket at a 50% discount, using HVGems50 code at the checkout (case-sensitive).
#Stocks #Investing #Mello2025
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I was invited to speak at the Mello 2025 conference, one of the largest events for UK private investors, with an opportunity to meet over 50 companies and investment funds. Guest speakers include the legendary investor Lord Lee (the first ISA millionaire), Christopher Mills (founder of Harwood Capital), and many others.
If you have not bought the tickets yet, you can buy a 1-Day or 2-Day ticket at a 50% discount, using HVGems50 code at the checkout (case-sensitive).
#Stocks #Investing #Mello2025
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Offshore
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Wall St Engine
SOUTHWEST DROPS “BAGS FLY FREE”
Starting May 29, Southwest $LUV will charge $35 for the first checked bag and $45 for the second. Elite flyers and credit card holders still get bags free. The airline is also rolling out basic economy tickets with no changes or seat selection. https://t.co/xR2eLLjb1C
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SOUTHWEST DROPS “BAGS FLY FREE”
Starting May 29, Southwest $LUV will charge $35 for the first checked bag and $45 for the second. Elite flyers and credit card holders still get bags free. The airline is also rolling out basic economy tickets with no changes or seat selection. https://t.co/xR2eLLjb1C
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Wall St Engine
Barclays Downgrades $CRWV to Equalweight from Overweight, Raises PT to $100 from $70
Analyst comments: "As we discussed in our initiation, we believe an EV/EBIT multiple is, for the time being, likely the best way to model the company, though importantly using an EV that reflects the debt load CRWV will need to take on over the coming years. At current levels, CoreWeave is trading at a 41x EV/EBIT CY26 multiple (assuming ~$31.4 billion in gross debt in CY26), and while we expect growth to remain strong, we are not sure there are fundamental arguments to push this much higher, with the company trading at a healthy premium already to the rest of the space. We continue to like CRWV for its long-term opportunity and exposure to the generative AI theme, but given valuation and lacking a near-term catalyst, see limited upside in the near term from here. Hence, our downgrade to Equalweight. With this, we raise our price target to $100 (from $70) to account for the recent run in share price, which is based on a 40x CY26E EV/EBIT multiple (was 27x), CY26E EBIT estimate of $2.21 billion (was $2.52 billion), and 2026E net debt of $31.4 billion (was $28.4 billion)."
Analyst: Raimo Lenschow
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Barclays Downgrades $CRWV to Equalweight from Overweight, Raises PT to $100 from $70
Analyst comments: "As we discussed in our initiation, we believe an EV/EBIT multiple is, for the time being, likely the best way to model the company, though importantly using an EV that reflects the debt load CRWV will need to take on over the coming years. At current levels, CoreWeave is trading at a 41x EV/EBIT CY26 multiple (assuming ~$31.4 billion in gross debt in CY26), and while we expect growth to remain strong, we are not sure there are fundamental arguments to push this much higher, with the company trading at a healthy premium already to the rest of the space. We continue to like CRWV for its long-term opportunity and exposure to the generative AI theme, but given valuation and lacking a near-term catalyst, see limited upside in the near term from here. Hence, our downgrade to Equalweight. With this, we raise our price target to $100 (from $70) to account for the recent run in share price, which is based on a 40x CY26E EV/EBIT multiple (was 27x), CY26E EBIT estimate of $2.21 billion (was $2.52 billion), and 2026E net debt of $31.4 billion (was $28.4 billion)."
Analyst: Raimo Lenschow
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Truist Securities Upgrades $WING to Buy from Hold, Raises PT to $400 from $274
Analyst comments: "We are upgrading our rating on WING to a Buy, from Hold, and increasing our estimates and price target to $400, from $274. We have increased confidence that WING's same-store sales will trough in 2Q25 and accelerate in 2026, with the Truist Card Data pointing to improved trends in May, a potentially significant incremental sales lift with the 'Smart Kitchen' rollout, and ongoing sales drivers including marketing, digital, and menu innovation. We also expect sustained mid-teens new store development to support valuation expansion and see potential upside to WING's long-term development targets. Our target EV/EBITDA (2026E) multiple of 42x is supported by our 20-year DCF and is a discount to the approximately 45x three-year average."
Analyst: Jake Bartlett
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Truist Securities Upgrades $WING to Buy from Hold, Raises PT to $400 from $274
Analyst comments: "We are upgrading our rating on WING to a Buy, from Hold, and increasing our estimates and price target to $400, from $274. We have increased confidence that WING's same-store sales will trough in 2Q25 and accelerate in 2026, with the Truist Card Data pointing to improved trends in May, a potentially significant incremental sales lift with the 'Smart Kitchen' rollout, and ongoing sales drivers including marketing, digital, and menu innovation. We also expect sustained mid-teens new store development to support valuation expansion and see potential upside to WING's long-term development targets. Our target EV/EBITDA (2026E) multiple of 42x is supported by our 20-year DCF and is a discount to the approximately 45x three-year average."
Analyst: Jake Bartlett
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Goldman Sachs Reiterates Buy Rating on $CRM, PT $340
Analyst comments: "We reiterate our Buy rating and $340 price target on Salesforce ahead of F1Q26 earnings (5/28). While artificial intelligence likely remains a focal point, we don’t anticipate material updates on Agentforce’s revenue contribution until Dreamforce (10/14). In the meantime, we look toward other strength points from Data Cloud and AI (>$900 million annual recurring revenue). Heading into earnings, we expect revenue +7%, current remaining performance obligations +10%, non-GAAP operating margin of 33%, and non-GAAP EPS of $2.56. We feel comfortable with these and for Salesforce to exit FY26 at similar net new revenue levels as FY24, where overhangs from an elevated investment period can be comparable to FY26’s perceived risks. We believe current guidance (+7–8% growth) and stock performance year-to-date (−17% vs. Nasdaq flat) has adequately accounted for: 1) Incremental pressure to Public Sector ($5.7 billion ARR in F4Q25) associated with DOGE, 2) Small/Medium Business and Create-and-Close execution, 3) CFO/COO transition. With broader software citing largely stable spending trends, we see Salesforce well-positioned to capture greater wallet share with the maturation of strategic long-term investments, coupled with emerging product momentum that could compound and support revenue re-acceleration. We further note F1Q cRPO growth is typically not a material forward indicator and see limited upside to Street expectations (10% YoY constant currency), whereas F2Q cRPO guidance will likely be a focal point. Despite modest incremental FX tailwind, we don't expect an upward revision to FY26 revenue. We continue to see Salesforce capable of delivering durable growth, 35%+ operating margin, and achieving $17–18 free cash flow per share in FY27, offering a compelling risk/reward at 17x EV/CY26 free cash flow (vs. peers' ~28x)."
Analyst: Kash Rangan
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Goldman Sachs Reiterates Buy Rating on $CRM, PT $340
Analyst comments: "We reiterate our Buy rating and $340 price target on Salesforce ahead of F1Q26 earnings (5/28). While artificial intelligence likely remains a focal point, we don’t anticipate material updates on Agentforce’s revenue contribution until Dreamforce (10/14). In the meantime, we look toward other strength points from Data Cloud and AI (>$900 million annual recurring revenue). Heading into earnings, we expect revenue +7%, current remaining performance obligations +10%, non-GAAP operating margin of 33%, and non-GAAP EPS of $2.56. We feel comfortable with these and for Salesforce to exit FY26 at similar net new revenue levels as FY24, where overhangs from an elevated investment period can be comparable to FY26’s perceived risks. We believe current guidance (+7–8% growth) and stock performance year-to-date (−17% vs. Nasdaq flat) has adequately accounted for: 1) Incremental pressure to Public Sector ($5.7 billion ARR in F4Q25) associated with DOGE, 2) Small/Medium Business and Create-and-Close execution, 3) CFO/COO transition. With broader software citing largely stable spending trends, we see Salesforce well-positioned to capture greater wallet share with the maturation of strategic long-term investments, coupled with emerging product momentum that could compound and support revenue re-acceleration. We further note F1Q cRPO growth is typically not a material forward indicator and see limited upside to Street expectations (10% YoY constant currency), whereas F2Q cRPO guidance will likely be a focal point. Despite modest incremental FX tailwind, we don't expect an upward revision to FY26 revenue. We continue to see Salesforce capable of delivering durable growth, 35%+ operating margin, and achieving $17–18 free cash flow per share in FY27, offering a compelling risk/reward at 17x EV/CY26 free cash flow (vs. peers' ~28x)."
Analyst: Kash Rangan
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Goldman Sachs Upgrades $CMI to Buy from Neutral, Raises PT to $431 from $410
Analyst comments: "We upgrade CMI to Buy from Neutral as we see (i) structurally higher Power Systems profitability (pricing structure beyond data center), (ii) derisked EPA 2027 expectations, and (iii) U.S. truck demand expectations that have been significantly reduced while used sleeper inventory levels are now down 30% year-over-year. CMI is trading at 16x our mid-cycle EPS estimate of $20.50 based on prior cycle performance, and 14x potential mid-cycle if the improved Power Systems margins are sustained longer-term. From an end market standpoint, we acknowledge our call could be early, as we expect production to bottom in 4Q25/1Q26 amid elevated new vocational truck inventories, but we believe CMI's Power Systems performance is a meaningful offset."
Analyst: Jerry Revich
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Goldman Sachs Upgrades $CMI to Buy from Neutral, Raises PT to $431 from $410
Analyst comments: "We upgrade CMI to Buy from Neutral as we see (i) structurally higher Power Systems profitability (pricing structure beyond data center), (ii) derisked EPA 2027 expectations, and (iii) U.S. truck demand expectations that have been significantly reduced while used sleeper inventory levels are now down 30% year-over-year. CMI is trading at 16x our mid-cycle EPS estimate of $20.50 based on prior cycle performance, and 14x potential mid-cycle if the improved Power Systems margins are sustained longer-term. From an end market standpoint, we acknowledge our call could be early, as we expect production to bottom in 4Q25/1Q26 amid elevated new vocational truck inventories, but we believe CMI's Power Systems performance is a meaningful offset."
Analyst: Jerry Revich
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Citi Reiterates Buy Rating on $TTD, Maintains PT at $82
Analyst comments: "We attended the Programmatic I/O conference last week, which while not perfect, was still incrementally positive for TTD. We also highlight key themes and data from Upfronts, which were generally positive for connected TV and The Trade Desk. In our view, if you’re waiting for Amazon DSP to impact TTD budgets in 2H25, you’ll be waiting longer than expected. Not to undermine Amazon’s strengths, but TTD has them too, and it seems like Amazon DSP dollars are coming from existing Amazon budgets, not from spend that was on, or was going to be on, TTD. Kokai feedback though shows there’s still things to work through for TTD. Macro feedback was mixed, with not much focus at the conference, and overall CTV trends continue to be positive. We saw another year of positive trends at Upfronts, with greater adoption of CTV as a portion of total TV spend, and of decisioned programmatic as a portion of CTV."
Analyst: Ygal Arounian
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Citi Reiterates Buy Rating on $TTD, Maintains PT at $82
Analyst comments: "We attended the Programmatic I/O conference last week, which while not perfect, was still incrementally positive for TTD. We also highlight key themes and data from Upfronts, which were generally positive for connected TV and The Trade Desk. In our view, if you’re waiting for Amazon DSP to impact TTD budgets in 2H25, you’ll be waiting longer than expected. Not to undermine Amazon’s strengths, but TTD has them too, and it seems like Amazon DSP dollars are coming from existing Amazon budgets, not from spend that was on, or was going to be on, TTD. Kokai feedback though shows there’s still things to work through for TTD. Macro feedback was mixed, with not much focus at the conference, and overall CTV trends continue to be positive. We saw another year of positive trends at Upfronts, with greater adoption of CTV as a portion of total TV spend, and of decisioned programmatic as a portion of CTV."
Analyst: Ygal Arounian
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