1. The short squeezes. Led by Carvana‘s (CVNA) more than 55% surge Thursday. Upstart (UPST) and Affirm (AFRM) also saw nice pops on top of year-to-date doubles. The action is a sign of a late-stage move, not an early one. False broadening to junk. JPMorgan says be prepared for an equity offering at CVNA after a huge 411% gain in 2023. Meanwhile, DocuSign (DOCU) ends purgatory with real growth and new verticals. It may be a very good story from here. Multiple price target bumps on Wall Street.
2. Tesla (TSLA) up another 6% early Friday, trying to keep its 10-session winning streak alive. This time its General Motors (GM) joining the fray, agreeing to use the Elon Musk-led company’s fast electric vehicle charging network. GM gets a 4% bump on the news. Watch how Club stock Ford (F) is creeping up as people realize that maybe the $6 billon in cash flow is real. Noted Morgan Stanley analyst Adam Jonas says this is great for consumers and great for the automakers.
3. Another muted open for the Dow, the S&P 500 and the Nasdaq. Next week: Fed meeting and inflation data. Thursday’s close for the S&P 500 confirmed the new bull market in stocks started back in October when the index hit its bear market low. I’ve been saying the bull is back for months and months and months as Club members know.
4. Donald Trump has become the first U.S. president, former or otherwise, to be indicted on federal criminal charges. Ordered to appear Tuesday at a federal courthouse in Miami. Check back for updates on the charges and the fallout throughout the day on CNBC’s live blog.
5. Price target bumps for Club name Palo Alto Networks (PANW), which hit an all-time high Monday. TD Cowen goes to $260 per share from $235. Piper Sandler goes to $250 from $240. Frankly, Piper likes all of the cybersecurity stocks, including the ones that are not any good like Tenable (TENB) and Okta (OKTA). Cowen and Piper both keep their buy-equivalents on PANW.
6. BMO Capital raises price target on Club holding Microsoft (MSFT) to $385 per share from $347. Keeps outperform (buy) rating. MSFT the leader in AI. Jefferies sees “more than a zero chance an appeal and approval happen” fo22Cr Microsoft’s deal to buy Activision Blizzard (ATVI).
7. Lots of PT boosts for Adobe (ADBE): Citi goes to $462 per share from $365. The analysts say the stock is inflecting right now; though worried about pending Figma deal that governments want to block.
8. Citi lowers price target on M&T Bank (MTB) to $150 per share from $150 (and keeps buy rating). The analysts trimmed 2023 estimates on FDIC assessment. They all have to come down.
9. Target (TGT) gets a downgrade at Citi to neutral from buy and a big PT cut to $130 per share from $177. Holy cow, traffic is slowing rapidly. The analysts see Walmart (WMT) as a beneficiary.
10. Citi cuts Signet Jewelers (SIG) price target to $68 per share from $82. Wedding engagements are weak. Don’t expect a SIG turn soon. The analysts lowers fiscal 2024 earnings per share (EPS) estimates.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
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