- Microsoft announced Thursday that it plans to offer customers of its cloud computing products access to AI chips made by AMD, capable of competing with Nvidia's components. Additionally, the European Commission stated Friday that it might fine Microsoft if it doesn't provide adequate information by May 27 on the risks associated with the generative AI functions in its internet search engine Bing.
- Applied Materials, the semiconductor equipment manufacturer, announced Thursday that it expects third-quarter revenue to exceed Wall Street estimates, driven by robust demand fueled by an AI boom.
- Take-Two Interactive lowered its game booking projections for fiscal 2025 on Thursday, raising fears that the release of its highly anticipated "Grand Theft Auto VI" might be delayed. The stock is down 2.8% pre-market.
- Ford Motor has asked its electric vehicle suppliers to cut costs to support profitability, stating that "everything is on the table" to improve profitability, according to an internal memo seen by Reuters.
- Airline Sector - Joe Biden signed a sweeping law on Thursday that will increase air traffic controller staffing, boost funding to prevent runway closures, and make refunds for canceled flights quicker.
- Reddit - ChatGPT, designed by OpenAI, will be able to draw from content on the social media platform, the two companies announced Thursday. The stock is up 14% pre-market.
- GameStop rebounds 10% pre-market and AMC Entertainment is up 4.9% amid renewed interest in "meme stocks" after two sessions of respective total declines of 43% and 32%.
- DXC Technology - The IT management company announced Thursday that it expects first-quarter revenue below expectations, anticipating a reduction in client spending due to economic uncertainty. The stock is down 21.6% pre-market.
- Under Armour - JP Morgan downgraded its rating from "neutral" to "underweight".
Analyst recommendations:
- Abbvie: Cantor Fitzgerald initiates an overweight recommendation with a target price of USD 200.
- Applied Materials: Citigroup maintains its buy recommendation and raises the target price from USD 211 to USD 250.
- Corpay: Wolfe Research downgrades to underperform from peerperform with a target price of USD 295.
- Darden Restaurants: BTIG upgrades to buy from neutral with a target price of USD 175.
- Deere & Company: Oppenheimer maintains its outperform recommendation and raises the target price from USD 456 to USD 465.
- Delta Air Lines: Wolfe Research maintains its outperform recommendation and raises the target price from USD 60 to USD 66.
- Dr Horton: Citigroup maintains its buy recommendation with a price target reduced from USD 191 to USD 181.
- Epam Systems: Wolfe Research downgrades to peerperform from outperform.
- Grab Holdings Limited: Autonomous Research maintains its underperform recommendation and reduces the target price from USD 4 to USD 3.80.
- Intercontinental Exchange: Redburn Atlantic maintains its buy recommendation and raises the target price from USD 166 to USD 167.
- Netflix: Rosenblatt Securities Inc. maintains a neutral recommendation with a price target raised from USD 540 to USD 554.
- Pultegroup: Citigroup remains neutral recommendation with a price target raised from USD 127 to USD 129.
- Ross Stores: Gordon Haskett maintains its buy recommendation and raises the target price from USD 154 to USD 165.
- Take-Two Interactive: ROTH MKM maintains its buy recommendation and reduces the target price from USD 185 to USD 180.
- United Airlines Holdings: Wolfe Research upgrades to outperform from peerperform with a target price of USD 76.
- Walmart: TD Cowen maintains its buy recommendation and raises the target price from USD 68 to USD 75.