🚗 Automotive AI

Plus, EU regulators set their sights on Apple

Pencils down, it’s time for lunch. Here’s what you missed this morning:

  • 🟩 | Market Snapshot: US stocks rose Monday morning, with the Dow jumping over 300 points as investors rotate out of chip stocks like Nvidia.

  • ⚔️ | In focus: A trade war off-ramp? China’s state media announced that it wants the EU to scrap its 38.1% tariffs on Chinese EVs, which are set to kick in by July 4th. On Saturday, China announced that its commerce minister and the executive vice president of the European Commission will begin discussions to find a solution.

  • 🍎 | Noteworthy: Apple is the first tech company to be accused of violating the EU’s new Digital Markets Act. The European Commission claims that Apple’s app store is anti-competitive as it inhibits consumers from buying products outside the tech giant’s bubble.

  • 🚗 | The Midday Trade: Automotive AI. Scroll down for more.

Plus, today’s partner scours the portfolios of top value investors to bring you all their best ideas. Click here to learn more.

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STREET STATS

MORNING MOVERS

RMD: Shares of medical device maker ResMed fell sharply after Eli Lilly said its weight-loss drug reduced the severity of sleep apnea (Barron’s)

RXO: RXO’s stock jumped on news that it struck a deal with UPS to acquire its third-party logistics provider, Coyote Logistics, for $1 billion (Barron’s)

CARR: Carrier Global saw its shares rise after Citi upgraded the stock to Buy from Neutral, citing CARR as an alternative pure-play HVAC provider (CNBC)

PLNT: Shares of Planet Fitness rose off the back of an upgrade from TD Cowen to Buy from Hold, naming the stock its top SMID-cap idea (YF)

AFRM: Affirm saw its stock pop after Goldman initiated coverage at a Buy rating, claiming Affirm is a leader in the modern credit space (Investing.com)

TOP CALLS

Carrier Global: Citigroup Upgrades Carrier Global to Buy, Announces $74 Price Target (Trade It)

XPO: Raymond James Maintains Outperform on XPO, Lowers Price Target to $130 (Trade It)

CMS Energy: Morgan Stanley Maintains Equal-Weight on CMS Energy, Lowers Price Target to $58 (Trade It)

ZEEKR: Citigroup Initiates Coverage On ZEEKR Intelligent Tech with Buy Rating, Announces Price Target of $32.4 (Trade It)

Broadcom: B of A Securities Reiterates Buy on Broadcom, Raises Price Target to $2150 (Trade It)

Micron Technology: Citigroup Maintains Buy on Micron Technology, Raises Price Target to $175 (Trade It)

THE MIDDAY TRADE

Changing the Game

According to Bank of America (BAC), Samsara (IOT) is changing the roadway safety game by using AI. The company produces AI-enabled dashcam technology, and the bank thinks it is about to take off. 

The technology is capable of providing drivers with real-time assistance, including letting them know when they are following a car too closely or if they are showing signs of distraction.

Big Announcements Coming

Analyst Matt Bullock is confident in strong consumer demand for its products and positive feedback from industry insiders. According to Bullock, Samsara’s products are unique and set themselves apart in a crowded industry. 

The company is holding its customer conference and analyst day next week, where it is expected to announce new products. These announcements could include how it intends to utilize generative AI in its products. 

Bullock believes these new products could be a catalyst for long-term growth.

Beating Out the Competition

The stock is down over 6% YTD and 28% in the last month. However, Bullock holds a buy rating with a $37 price target, a 25% upside from Thursday’s close.

He is bullish on Samsara’s wide-ranging products, including those outside of the automotive industry. According to the analyst, it spends more on R&D than its competitors and has more customers to study data from. 

Given its down month, investors may be able to acquire the stock at a low valuation prior to its upcoming meeting.

TOGETHER WITH VALUE INVESTOR DAILY

Learn from investing legends

Warren Buffett reads for 8 hours a day. What if you only have 5 minutes a day? Then, read Value Investor Daily. We scour the portfolios of top value investors and bring you all their best ideas.

SURVEY THE STREET

The price of bitcoin is sliding, falling to $60,666 this morning — its lowest level in more than a month.

Bitcoin hit an all-time high of ~$74,000 in March. However, we’ve seen $1.2 billion of outflows from crypto ETFs since the most recent FOMC meeting.

Analysts believe that the Fed’s unwillingness to cut rates is weighing on sentiment for crypto, as tighter monetary conditions make investors more risk-averse.

🪙 Will Bitcoin Drop Below $60,000 This Month

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Plus, Yesterday’s Poll + Results:

🟨⬜️⬜️⬜️⬜️⬜️ Yes ✅ 

🟩🟩🟩🟩🟩🟩 No ❌ 

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