My top 10 things to watch Wednesday, May 8

  1. Wall Street’s winning streak may come to an end Wednesday, with futures pointing to lower opens across the board. The Dow and S&P 500 have risen in five and four consecutive sessions, respectively.
  2. Wynn Resorts had about as good a quarter as you are going to get in this business. Two hotels were amazing. Travelers coming back. Benefited from Las Vegas Sands‘ property renovations in the Chinese administrative region and major Asian gambling hub of Macao. Some permanent business for the Club name Wynn? Multiple price target boosts on Wall Street. The stock is up more than 1.5%.
  3. Dutch Bros shows how to run a coffee company: 10% comps and no problems with throughput on its app. A model that works all over the country? It is a juggernaut compared to Club name Starbucks. Is it time to admit the Club bet on the wrong horse? I should have admitted it 20 points ago, but I mistakenly believed in the CEO. Barclays increases Dutch Bros price target to $35 per share from $30.
  4. Barclays argues the earnings sell-off in Disney shares is overdone, echoing the view we laid out Tuesday in our commentary on the company’s latest quarterly report. Analysts, who kept their buy-equivalent rating on the stock, believe sellers are missing some of the nuances around Disney’s theme-park guidance.
  5. Uber misses on gross bookings. Forecast is light. The stock sinks more than 8.5%. Greater-than-expected quarterly per-share loss. Revenue grew 15% from a year ago and slightly beat. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was good.
  6. Lyft shares jump 4.5% after the ride hailing rival of Uber issues higher-than-expected gross bookings and core profit for the current quarter. Lyft delivers better-than-expected adjusted EBITDA and revenue for its first quarter.
  7. Reuters reports that U.S. prosecutors looking into whether Tesla committed securities or wire fraud by misleading investors and consumers about its EV self-driving capabilities. Regulators are also probing crashes of Tesla vehicles with Autopilot on, which led to a big recall.
  8. The great advertising migration continues out of linear, and anything else, to targeted ads, which is why Reddit is so strong. I think this could be a long run and the earnings are understated by CEO Steve Huffman’s desire to give equity to Redditors. What an amazing quarter, the first since March IPO. The stock is up 11%.
  9. Arista Networks is now up there with Club name Broadcom as an adjacency to the Titans as CEO Jayshree Ullal calls them. Is she the best in the adjacents to the hyperscalers? I am beginning to believe so. Wells Fargo boosts Arista price target to $340 per share from $310. The stock is up more than 5.5%.
  10. President Joe Biden will be in Wisconsin Wednesday, helping Club name Microsoft unveil its $3.3 billion data center project there. The facility is on the same site that Foxconn had planned to build a $10 billion factory before it scaled back its plans.

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