A TON OF THINGS HAPPENED IN THE STOCK MARKET TODAY
Here's a full recap:
1. Stifel has upheld its Buy rating on $TSLA but dropped its price target to $455 from $474, adjusting near-term delivery expectations due to the Model Y (Juniper) rollout and resistance from anti-Elon Musk sentiment. Data from the Stifel Think Tank Group shows a sharp decline in Democrats’ favorability toward Tesla, posing short-term sales challenges. Consequently, Stifel has revised its forecasts to account for weaker near-term sales, lowering the target price accordingly. Despite anticipating ongoing share price fluctuations, the firm remains confident in Tesla’s medium- to long-term outlook and reaffirms its Buy recommendation.
2. OpenAI secured a record $40 billion funding round, valuing it at $300 billion, surpassing prior tech records. SoftBank led with $30 billion, joined by Microsoft, Coatue, Altimeter, and Thrive with $10 billion. The funds will boost AI research, scale compute infrastructure, and support Stargate, an $18 billion SoftBank-Oracle project announced by Trump in January. Initial funding is $10 billion, with $30 billion by 2025’s end. SoftBank’s stake could fall to $20 billion if OpenAI doesn’t convert from its hybrid capped-profit structure to for-profit by December 31, a move contested by co-founder Elon Musk and needing Microsoft and California AG approval.
3. Today Newsmax Inc. debuted its stock on the New York Stock Exchange under the ticker $NMAX after raising $75 million through an IPO priced at $10 per share. The stock surged dramatically on its first trading day, closing at $83.51, a 735% increase from its IPO price. This explosive growth was driven by strong interest from individual investors, leading to multiple trading halts due to volatility. The debut valued Newsmax at approximately $8 billion, reflecting a speculative frenzy tied to its conservative audience growth, despite the company reporting financial losses and a challenging cable TV market.
4. Intel $INTC intends to divest its non-essential businesses, potentially by late 2025, as stated by its new CEO, who emphasized a future focus on creating specialized silicon products.
5. Goldman Sachs has slashed its S&P 500 return forecast to -5% over three months and +6% over 12 months, down from 0% and 16% previously. It also reduced its 2025 EPS growth projection to 3% from 7%, with full-year earnings now expected at $253, falling short of Wall Street’s consensus. The downgrade reflects concerns over higher tariffs, sluggish growth, and persistent inflation. They also increased their tariff forecast once more, now anticipating a 15-point rise in average U.S. tariff rates this year. This is expected to lift 2025 core PCE inflation to 3.5% while pulling full-year GDP growth down to 1.0%, with Q1 growth slashed to 0.2%. The firm projects unemployment rising to 4.5% by the end of 2025. It also raised U.S. recession odds to 35%, citing weaker growth, declining confidence, and a White House more open to short-term economic costs for policy objectives.
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