Lowe&#8217;s Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) on Wednesday reported mixed results for the <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/n45537284/lowes-reports-first-quarter-2025-sales-and-earnings-results" rel="noreferrer noopener">first quarter of fiscal 2025</a>.



The company posted adjusted earnings of $2.92 per share, which beat the <a href="https://www.benzinga.com/earnings">analyst consensus estimate of $2.89</a>.



Revenue for the quarter was down 2% year over year at $20.93 billion, which missed the analyst consensus estimate of $20.94 billion.



Comparable sales fell 1.7%, with early-quarter weather headwinds partially offset by mid-single-digit growth in Pro and online sales.



Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45233025/lowes-lowdown-analyst-sees-weaker-sales-than-consensus-cites-weather-woes" rel="noreferrer noopener">Lowe&#8217;s Lowdown? Analyst Sees Weaker Sales Than Consensus, Cites Weather Woes</a>



Gross margin expanded 19 basis points to 33.4% while operating income declined to $2.49 billion from $2.65 billion last year. Operating margin narrowed by 50 basis points to 11.9%.



As of May 2, 2025, Lowe&#8217;s operated 1,750 stores, totaling approximately 195.3 million square feet of retail selling space.



&#8220;Despite near-term uncertainty and housing market headwinds, our team&#8217;s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe&#8217;s the No. 1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power,&#8221; said Marvin R. Ellison, Lowe&#8217;s chairman, president, and CEO.



&#8220;Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities,&#8221; Ellison added.



The company reported operating cash flow of $3.38 billion for the quarter, down from $4.26 billion a year earlier.



The company reiterated its focus on disciplined capital allocation, highlighted by a $645 million dividend paid this quarter.



Lowe&#8217;s acknowledged tariffs as a potential risk factor but did not provide specific guidance on their impact.



Lowe&#8217;s forecasts 2025 EPS of $12.15–$12.40 versus the $12.23 consensus estimate. Total sales are projected between $83.5 billion and $84.5 billion, compared with analysts&#8217; expectations of $84.31 billion.



Lowe&#8217;s expects an operating margin of 12.3% to 12.4% and plans to spend approximately $2.5 billion on capital expenditures.



Price Action: LOW shares are trading lower by 0.37% to $230.41 at last check Wednesday.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/earnings/25/05/45518559/home-depot-flags-tariff-and-supply-chain-risks-in-risk-statement-but-does-not-revise-outlook" target="_blank" rel="noreferrer noopener">Home Depot Flags Tariff And Supply Chain Risks In Risk Statement But Does Not Revise Outlook</a></li>
</ul>



Image via Shutterstock

Earnings

News

Guidance

Movers

Lowe's CEO Calls Out Near-Term Housing Market Challenges But Holds The Line On Outlook

TJX Companies Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) shares&nbsp;are trading lower premarket on Wednesday&nbsp;after the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45538836/the-tjx-companies-inc-reports-q1-fy26-results-comp-sales-growth-of-3-pretax-profit-margin-of-10-3-" rel="noreferrer noopener">first-quarter&nbsp;FY26 earnings result</a>.



Sales rose 5% year-over-year (Y/Y)&nbsp;to&nbsp;$13.1 billion, beating the analyst consensus estimate of&nbsp;$13.0 billion.



Overall&nbsp;comp store sales increased&nbsp;3% (Y/Y), at the high end of the company's plan, and were driven by an increase in customer transactions.



Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45524193/tjx-companies-q1-preview-report-could-reflect-durable-earnings-growth" target="_blank" rel="noreferrer noopener">TJX Companies Q1 Preview: Report Could Reflect Durable Earnings Growth</a>



Gross&nbsp;profit margin was&nbsp;29.5%, a 0.5&nbsp;percentage point decrease versus the prior year, due to negative mark-to-market adjustments on inventory hedges.



Ernie Herrman, president and CEO said, &#8221;All divisions, both in the U.S. and internationally, drove increases in comp sales and customer transactions, which underscores the strength of our value proposition.&#8221;



Adjusted EPS of&nbsp;92 cents beat the <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus&nbsp;estimate of&nbsp;90 cents</a>.



The&nbsp;company held&nbsp;$4.3 billion&nbsp;in cash and equivalents&nbsp;as of May 3 and generated&nbsp;$394&nbsp;billion&nbsp;of operating cash flow in the quarter.



As of May 3, total inventories stood at $7.1 billion, compared to&nbsp;$6.2&nbsp;billion&nbsp;last year.



During the first quarter, the company returned a total of $1.0 billion to shareholders, including the repurchase of shares worth $613 million.



The company continues to expect share repurchases of approximately $2.0 billion to $2.5 billion in fiscal 2026.



Outlook: TJX&nbsp;reaffirmed guidance for FY26 comparable sales growth of&nbsp;2%&nbsp;–&nbsp;3% and EPS of&nbsp;$4.34-$4.43&nbsp;<a href="https://www.benzinga.com//node/43976995" target="_blank" rel="noreferrer noopener">against a&nbsp;$4.49&nbsp;estimate</a>.



The company sees&nbsp;second quarter comparable sales growth of&nbsp;2%&nbsp;–&nbsp;3%&nbsp;and&nbsp;EPS of&nbsp;$0.97-$1.00&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">with an estimate of&nbsp;$1.03</a>.



TJX&#8217;s second-quarter and FY26 guidance assumes current U.S. import tariffs from China and other nations, as of Wednesday, will persist.



Furthermore, for the full-year FY26, the company expects to fully offset the significant and ongoing tariff-related financial pressures.



Investors can gain exposure to the stock via&nbsp;VanEck Retail ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RTH#NASDAQ">RTH</a>) and iShares U.S. Consumer Focused ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEDI#BATS">IEDI</a>).



Price Action:&nbsp;TJX shares are down 1.88% at $132.39 premarket at the last check on Wednesday.



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/general/market-summary/25/05/45537307/us-stocks-likely-to-open-lower-expert-says-tariffs-remain-a-headwind-but-tax-cut-and-easing-of-tensions-in-middle-east-could-propel-equities-closer-to-all-time-highs" target="_blank" rel="noreferrer noopener">US Stocks Likely To Open Lower, Expert Says &#8216;Tariffs Remain A Headwind,&#8217; But &#8216;Tax Cut&#8217; And &#8216;Easing Of Tensions&#8217; In Middle East &#8216;Could Propel Equities Closer To All-Time Highs&#8217;</a></li>
</ul>



Photo: Shutterstock

Equities

Large Cap

IEDI

TJX Boosts Q1 Sales With More Shoppers, Says Tariffs Won't Hurt 2026 Outlook

I got into the investment business on a steady diet of Graham and Whitman. But that was the 1980s and early 1990s – the golden age of dealmakers and junk bonds, leveraged buyouts and greenmail. 



Long before the players became gentlemanly private equity titans and activist investors, they were raiders, vultures, and even, in one famous book about the RJR deal, barbarians.



Legendary fortunes were made, reputations created and shattered.



All of these high-return, high-flying strategies shared a common thread. Leveraged buyouts, distressed investing and risk arb were all just variations on the value investing theme.



The private equity giants of today are still doing this. Thanks to their quarterly filings, you can copy their investment approach—a strategy that has beaten the markets 4-to-1 since 2001.



Even the creation of the junk bond market was based on Michael Milken&#8217;s studies on the returns from buying undervalued lower-rated bonds, a strategy founded on basic value investing principles.



The big winners in all these strategies took value investing and added debt.



It was like adding nitro to the tank of a stock car. If you could control the vehicle at high speed through the corners, there was no race you couldn&#8217;t win.



Although the golden age of risk arb and the smaller investors&#8217; ability to compete in distressed debt are all behind us, we can still use the combination of debt and value investing to beat the index by a wide margin.



When the 13F filings come out every quarter, most of the short-attention-spans in the market today head for the same filings at the same time.



Warren, Cathie, Stanley, Tepper and Seth still get all the attention.



I may get around to those at some point, but one of the first places I turn is to the leading private equity firms.



Firms like Apollo Global Management (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>), Blackstone (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) and KKR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>) still use basic principles of value investing along with a healthy dose of debt to drive massive returns for themselves and their investors.



What most people do not realize is that these firms also have large public securities portfolios, and stealing their ideas has created some massive market-beating opportunities.



If you had bought shares of Mr. Cooper (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COOP#NASDAQ">COOP</a>) when it first appeared in KKR&#8217;s public portfolio in 2018, you could have made almost ten times your money.



Buying shares of AppLovin (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) when KKR first revealed its position would have resulted in gains of almost seven times your initial cost.



DoorDash (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>) would have delivered gains of 3x in just a few years.



Owning the firm&#8217;s top ten holdings since 2001 would have beaten the market by a 4-to-1 margin.



I do not care what the media darling investors bought last quarter. Tell me what the profit pirates at KKR own, and I can create an opportunity to score massive gains.



The current top ten holdings for KKR are:



BrightSpring Health Services (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BTSG#NASDAQ">BTSG</a>) provides home and community-based health services to complex patients, positioning itself in a niche with long-term demographic tailwinds. The company is newly public and pursuing scale through both organic growth and targeted acquisitions in behavioral and specialty pharmacy segments.



Henry Schein (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HSIC#NASDAQ">HSIC</a>) is a global distributor of dental and medical supplies primarily serving small- and mid-sized practices. The company generates stable cash flow and has a long history of disciplined capital deployment, though growth is modest and sensitive to procedure volume trends.



BrightView (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BV#NYSE">BV</a>) is the largest commercial landscaping services provider in the U.S., with recurring maintenance revenue making up the majority of its business. Under new leadership, the firm is undergoing a restructuring push to improve margins and reduce debt after years of underperformance.



KKR Real Estate Finance Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KREF#NYSE">KREF</a>) is a commercial mortgage REIT focused on senior loans backed by institutional-grade real estate, primarily in urban markets. It offers a high dividend yield but remains exposed to office market weakness and refinancing risk in a higher-rate environment.



Madison Square Garden Sports (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSGS#NYSE">MSGS</a>) owns marquee sports franchises, including the New York Knicks and Rangers, offering investors a rare asset-backed play on professional sports. Valuation is driven more by franchise appreciation than earnings power, making it a long-duration, event-driven asset.



Norwegian Cruise Line (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) is a leading cruise operator with a strong focus on premium and upscale offerings across its brand portfolio. The company is rebounding from pandemic-era disruptions, though it still carries significant leverage and remains sensitive to fuel and labor costs.



Bausch Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHC#NYSE">BHC</a>) is a diversified specialty pharmaceutical company with exposure to eye health, dermatology, and branded generics. However, the company is still burdened by high legacy debt. While it&#8217;s pursuing a turnaround strategy and asset divestitures, legal overhangs and weak cash flow remain headwinds.



FS KKR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSK#NYSE">FSK</a>) is one of the largest business development companies, focused on senior secured lending to middle-market companies with an emphasis on downside protection. It offers a double-digit yield and strong sponsor backing, though credit quality and NAV stability require close monitoring.



Crescent Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSGY#NYSE">CSGY</a>) is a cash-generating E&amp;P company with a private equity-backed structure and a focus on acquiring and optimizing mature, low-decline assets. The firm maintains a disciplined capital return framework and hedging strategy, making it a defensive upstream play with yield upside.



BridgeBio Pharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BBIO#NASDAQ">BBIO</a>) is a commercial-stage biopharmaceutical company developing treatments for genetic diseases and cancers with clear genetic drivers. Its lead drug, Attruby (acoramidis), approved in late 2024 for transthyretin amyloid cardiomyopathy, significantly outperformed sales expectations in its first full quarter, positioning the company as a strong competitor in the cardiomyopathy treatment market.



<h2 class="wp-block-heading">Turn Market Mayhem Into Profit Signals This Memorial Day</h2>



Get real-time portfolio alerts, daily stock ideas, and a suite of pro-grade tools — all in one elite membership. For a limited time, you can access Benzinga Edge at 60% off. Secure Your 60% Memorial Day Discount <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052025/?el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a>.



Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

Trading Ideas

BBIO

BTSG

COOP

DASH

HSIC

KREF

MSGS

NCLH

CSGY

The Smart Money Is Buying These 10 Stocks

Editor's Note: This article has been updated to reflect the accurate yields for the 2-year and 10-year Treasury bonds.



U.S. stock futures dipped on Wednesday after ending lower on Tuesday. Futures of major benchmark indices were trading lower in premarket.



The S&amp;P 500 index snapped its six-day winning streak on Tuesday, which was followed by the U.S.-China 90-day tariff truce.



Donald Trump&#8216;s &#8216;<a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">One Big, Beautiful Bill</a>&#8216; was the center of discussion among experts as the Congressional Budget Office released its estimates for the distributional effects of the Act.



It estimated a 4% drop in the household incomes of the lower decile of Americans by 2033 and a 2% rise in the income of the highest decile.



Meanwhile, the 10-year Treasury bond yielded 4.53% and the two-year bond was at 3.9%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 94.6% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.65%</td></tr><tr><td>S&amp;P 500</td><td>-0.60%</td></tr><tr><td>Nasdaq 100</td><td>-0.61%</td></tr><tr><td>Russell 2000</td><td>-0.86%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.58% to $589.40, while the QQQ declined 0.65% to $516.91, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



On Tuesday, most S&amp;P 500 sectors closed lower, with energy, consumer discretionary, and communication services stocks seeing the steepest declines.



In contrast, utilities and healthcare stocks moved higher, defying the broader market trend.



Meanwhile, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock edged up after CEO Elon Musk reaffirmed his five-year commitment to the company. Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) reported better-than-expected first-quarter sales but missed EPS estimates. Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) also posted strong first-quarter results.



Economically, the U.S. Redbook Index increased 5.4% year-over-year for the week ending May 17.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.38%</td><td>19,142.72</td></tr><tr><td>S&amp;P 500</td><td>-0.39%</td><td>5,940.46</td></tr><tr><td>Dow Jones</td><td>-0.27%</td><td>42,677.24</td></tr><tr><td>Russell 2000</td><td>0.054%</td><td>2,105.58</td></tr></tbody></table></figure>



Insights From Analysts:



Senior economist at WisdomTree, Jeremy Siegel, said that he was &#8220;clear-eyed&#8221; about the tariff impact.



&#8220;These tariffs aren't good for the market. Stocks would be higher without them, but the market's current pricing suggests it can absorb the expected hit at current rates.&#8221;



While there was criticism around the One Big, Beautiful Bill on proposed tax cuts, Siegel said, &#8220;While tariffs remain a headwind, the tax cut and a potential easing of tensions in the Middle East could propel equities closer to all-time highs.&#8221;



Meanwhile, quoting the <a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office">CBO estimates</a>, Craig Shapiro of the Bear Traps Report, said, the new Bill will &#8220;explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.&#8221; 



&#8220;Another opportunity squandered and further proof that the Republican Party continues to cater to the wealthiest Americans time and time again,&#8221; he added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nice job by the Admin and House Republicans getting ready to try to pass a &quot;Big Beautiful Bill&quot; that will explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile. Another opportunity squandered and further proof that the… <a href="https://t.co/66cJwNwE8m">https://t.co/66cJwNwE8m</a>&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1925005561180942458?ref_src=twsrc%5Etfw">May 21, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Economist Peter Schiff was also not enamoured by the Bill as he stated that the tax cuts just boost GDP at the "expense of larger budget and trade deficits and higher inflation, and long-term interest rates."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Tax cuts that boost spending on consumer goods rather than promote higher savings, capital investment, and increased productivity, do not grow the economy. They merely boost GDP at the expense of larger budget and trade deficits and higher inflation and long-term interest rates.&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1924968734491373978?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul class="wp-block-list">
<li>Richmond Fed President Tom Barkin and Fed Governor Michelle Bowman will take part in the &#8216;Fed Listens&#8217; event at 12:15 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Target Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) was 0.37% lower in premarket on Wednesday as analysts expect it to report quarterly earnings of $1.65 per share on revenue of $24.32 billion, before the opening bell.</li>



<li>Lowe&#8217;s Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>) declined 0.28% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of $2.88 per share on revenue of $20.96 billion.</li>



<li>TJX Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) fell 0.69% as analysts expect it to report quarterly earnings of 90 cents per share on revenue of $12.99 billion, before the opening bell.</li>



<li>VF Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFC#NYSE">VFC</a>) was up 0.14% as Wall Street expects it to report earnings before the opening bell. It is expected to post a quarterly earnings loss of 14 cents per share on revenue of $2.17 billion.</li>



<li>Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) dropped 3.85% despite posting better-than-expected earnings for its third quarter and raising its full-year 2025 guidance on Tuesday.</li>



<li>Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) jumped 5.88% after posting stronger-than-expected earnings and sales results for the second quarter.</li>



<li>CFSB Bancorp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CFSB#NASDAQ">CFSB</a>) surged 67.89% as it announced that Hometown Financial Group will acquire the company for a total transaction value of approximately $44 million.</li>



<li>Accenture PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) was up 0.41% after collaborating with Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) and Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to accelerate enterprise AI transformation with AI refinery.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.72% to hover around $63.10 per barrel.



Gold Spot US Dollar rose 0.55% to hover around $3,308.30 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.39% at the 99.7300 level.



Asian markets were mixed on Tuesday as South Korea's Kospi and India's S&amp;P BSE Sensex index declined. Japan's Nikkei 225 was flat, and Australia's ASX 200, Hong Kong's Hang Seng, and China&#8217;s CSI 300 indices advanced. European markets were higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">Big Beautiful Bill Will &#8216;Explode The Deficit,&#8217; And Make The Rich Richer: Congressional Budget Office Estimates 4% Income Fall For Lowest Decile Of Americans By 2033 </a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Futures

Treasuries

Economics

Pre-Market Outlook

Markets

CFSB

DELL

NVDA

PANW

TSLA

US Stocks Likely To Open Lower, Expert Says 'Tariffs Remain A Headwind,' But 'Tax Cut' And 'Easing Of Tensions' In Middle East 'Could Propel Equities Closer To All-Time Highs' (CORRECTED)

Despite the overvalued nature of the stock based on its price-to-earnings metric, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO, Elon Musk, has defended the company&#8217;s growth, citing its stock prices, shrugging off the fundamental worries surrounding the carmaker as highlighted by experts.



What Happened: During the Qatar Economic Forum on Monday, Musk highlighted that Tesla&#8217;s share price was the measure of its business&#8217;s success. 



&#8220;You can just look at the stock price if you want the best inside information,&#8221; he said as per <a href="https://finance.yahoo.com/news/elon-musk-tells-investors-teslas-stock-price-shows-company-is-in-a-good-place-dont-worry-about-it-143940828.html">a</a> Yahoo Finance report.



&#8220;The stock market analysts have that, and a stock wouldn&#8217;t be trading near all-time highs if it was not, if things weren&#8217;t in good shape. They&#8217;re fine, don&#8217;t worry about it.&#8221;



According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Tesla shares are trading at a price nearly 158.730 times its 2026 earnings. At the same time, the average forward price-to-earnings of its peers stood at 25.75 times, implying that Tesla was 6.16 times more expensive than its industry's average.



However, Gordon Johnson, the CEO and founder of GLJ Research, countered Musk&#8217;s statement with examples. In an X post, he highlighted that &#8220;If: high stock price = good underlying business fundamentals, then WorldComm + HealthSouth + Enron + Tyco + etc. would never have gone bankrupt.&#8221;



He explained that the stock prices were simply a reflection of a stock&#8217;s demand, which could be influenced by factors like CEO comments and pump-and-dump Wall Street analysts.



Taking a dig at the Federal Reserve and Treasury Secretary Scott Bessent, Johnson further stated that the Fed&#8217;s purchase of Treasuries by printing money was also a reason for the artificially created demand for stocks.



&#8220;Were the Federal Reserve to immediately pull out all the money it printed into existence from COVID, we&#8217;d QUICKLY have REAL price discovery in stocks,&#8221; he warned.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I was going to comment on this&#8230; but <a href="https://twitter.com/FredericLambert?ref_src=twsrc%5Etfw">@FredericLambert</a> NAILS it. If: high stock price = good underlying business fundamentals, then WorldComm + HealthSouth + Enron + Tyco + etc. would never have gone bankrupt. Stock price simply = demand for the stock (and demand for a stock can… <a href="https://t.co/LmKs67YUH1">https://t.co/LmKs67YUH1</a>&mdash; Gordon Johnson (@GordonJohnson19) <a href="https://twitter.com/GordonJohnson19/status/1924865321078276238?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



As of the <a href="https://www.benzinga.com/25/04/44937440/tesla-q1-earnings-highlights-revenue-miss-eps-miss-tariff-landscape-and-changing-political-sentiment-cloud-guidance">first quarter,</a> Tesla&#8217;s revenue fell 9% year-over-year to $19.34 billion, missing the Street&#8217;s consensus estimate of $21.35 billion, and its EPS declined 40% year-over-year to 27 cents, which was below the 31 cents consensus.



See Also: <a href="https://www.benzinga.com/news/25/05/45533521/charlie-munger-once-said-the-first-rule-of-compounding-is-to-never-interrupt-it-unnecessarily-now-hi">Charlie Munger Once Said, &#8216;The First Rule Of Compounding Is To Never Interrupt It Unnecessarily&#8217; — Now His Wisdom Rings True As The S&amp;P 500 Surges 220% Over 10 Years</a>



Why It Matters: When compared to a few of its industry peers, Tesla had the highest trailing P/E ratio among them.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Stocks</td><td>Trailing P/E</td></tr><tr><td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>196.469</td></tr><tr><td>Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>)</td><td>0.05</td></tr><tr><td>General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>)</td><td>6.96</td></tr><tr><td>Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>)</td><td>8.54</td></tr><tr><td>Honda Motor Co Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>)</td><td>0.06</td></tr></tbody></table></figure>



However, when compared to the forward P/E ratios of the Magnificent 7 stocks, Tesla shares remain the most expensive with the highest ratio of forward price-to-earnings in comparison with its industry average.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Stocks</td><td>Forward P/E</td><td>Industry Average</td></tr><tr><td>Tesla Inc. </td><td>158.73</td><td>25.75</td></tr><tr><td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td><td>31.153</td><td>37.03</td></tr><tr><td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td><td>28.818</td><td>20.23</td></tr><tr><td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td><td>30.488</td><td>81.74</td></tr><tr><td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td><td>31.646</td><td>32.14</td></tr><tr><td>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td><td>17.575</td><td>125.77</td></tr><tr><td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td><td>25.189</td><td>125.77</td></tr></tbody></table></figure>



TSLA shares were down 9.35% year-to-date, but it has returned by 51.13% just in the last month. The shares were up 84.26% over the year. On Tuesday, it ended 0.51% lower and advanced 0.015% in after-hours and on Wednesday, it was up 0.46%.



Benzinga Edge Stock Rankings shows that Tesla had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid, however, its value ranking was poor at the 8.57th percentile. The details of other metrics are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here</a>. 



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="143" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-1024x143.png" alt="" class="wp-image-922346" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-1024x143.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-300x42.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA-768x107.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/21034750/EDGE-TESLA.png 1224w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.70% to $588.69, while the QQQ declined 0.76% to $516.31, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



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<li><a href="https://www.benzinga.com/general/market-summary/25/05/45515900/mstrs-new-bitcoin-accounting-standard-to-drive-financial-swings-make-earnings-volatile-says-expert-after-lawsuit-hits-strategy">MSTR&#8217;s New Bitcoin Accounting Standard To Drive &#8216;Financial Swings,&#8217; Make Earnings &#8216;Volatile,&#8217; Says Expert After Lawsuit Hits Strategy</a></li>
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General

AAPL

AMZN

GOOG

MSFT

Tesla Is 6X More Expensive Than Its Peers And The Most Overvalued Mag 7 Stock: Gordon Johnson Questions Fundamentals As Elon Musk Shrugs Off Concerns

The Future Fund LLC  managing partner, Gary Black and a long-term Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) bull, is challenging conventional wisdom among Tesla investors regarding the future of autonomous ride-hailing and Uber Technologies Inc.&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) position in the market.



What Happened: Black drew a compelling parallel between Uber&#8217;s potential shift to driverless vehicles and Netflix Inc.&#8216;s strategic pivot in 2007. 



In a post on X, Black wrote, &#8220;The best analogy to Uber is Netflix, which disrupted its own DVD delivery business in 2007 to embrace streaming &#8211; just as Uber will disrupt its own ride-hailing business to go driverless,&#8221; Black added. &#8220;Many Tesla faithful are missing this.&#8221;



Black has previously argued that ride-sharing companies like Uber and Lyft Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>) stand to benefit significantly from autonomous technology, claiming that driverless operations could <a href="https://www.benzinga.com/25/05/45339797/gary-black-doubles-down-on-ubers-autonomy-upside-reflects-on-tesla-debates-i-was-right-on-volume-pr-and-robotaxis">reduce costs from $2 per mile to $1 per mile</a>. He emphasized that Uber&#8217;s existing network of 24 million active riders gives it a substantial competitive advantage.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The best analogy to <a href="https://twitter.com/search?q=%24UBER&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$UBER</a> is <a href="https://twitter.com/search?q=%24NFLX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NFLX</a>, which disrupted its own DVD delivery business in 2007 to embrace streaming &#8211; just as <a href="https://twitter.com/search?q=%24UBER&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$UBER</a> will disrupt its own ride-hailing business to go driverless. Many <a href="https://twitter.com/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$TSLA</a> faithful are missing this. <a href="https://t.co/Cy3cpQOhsA">pic.twitter.com/Cy3cpQOhsA</a>&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1925083607300706577?ref_src=twsrc%5Etfw">May 21, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/markets/equities/25/05/45536259/palantir-partners-with-sap-to-fuse-ontology-foundry-and-enterprise-dataceo-alex-karp-calls-it-extremely-valuable">Palantir Partners With SAP To Fuse Ontology, Foundry And Enterprise Data: CEO Alex Karp Calls It &#8216;Extremely Valuable&#8217;</a>



Why It Matters: Despite being a Tesla investor with a <a href="https://www.benzinga.com/25/05/45354683/tesla-probably-wont-make-money-on-ride-hailing-for-years-gary-black-says">$310 price target on the stock</a>, Black has become increasingly critical of certain Tesla narratives. He has challenged Tesla CEO Elon Musk&#8216;s <a href="https://www.benzinga.com/25/05/45339797/gary-black-doubles-down-on-ubers-autonomy-upside-reflects-on-tesla-debates-i-was-right-on-volume-pr-and-robotaxis">20 million vehicle delivery target for 2030</a>, with Wall Street consensus now closer to 3.9 million units.



Black warns that Tesla &#8220;can&#8217;t just create a network of 24M active riders&#8221; overnight and that <a href="https://www.benzinga.com/25/05/45283323/gary-black-thinks-uber-could-have-an-advantage-over-elon-musk-and-tesla-in-the-robotaxi-race">competition among multiple players in the driverless ride-hailing market</a> could mean Tesla &#8220;may not make money on ride-hailing for years.&#8221;



Read Next:



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<li><a href="https://www.benzinga.com/markets/25/05/45536218/walmart-responds-to-trumps-eat-the-tariff-remark-worked-to-keep-our-prices-as-low-as-possible-and-we-wont-stop">Walmart Responds To Trump&#8217;s &#8216;Eat The Tariff&#8217; Remark: &#8216;&#8230;Worked To Keep Our Prices As Low As Possible And We Won&#8217;t Stop&#8217;</a></li>
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Tech

LYFT

UBER

Gary Black Compares Uber's Shift To Driverless Cars With Netflix's 2007 Move From DVDs To Streaming, Says Tesla 'Faithful' Are Missing The Bigger Picture

Alphabet&#8216;s Google (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) revamps its search engine by introducing an AI chatbot-style feature, aiming to stay ahead of competitors like OpenAI.



What Happened: Google has introduced an &#8220;AI mode&#8221; in its search and Chrome browser for all U.S. users from Tuesday. This new feature will offer a conversational, question-and-answer experience, similar to OpenAI's ChatGPT, rather than the traditional list of links, <a href="https://www.ft.com/content/b9d13cc7-f0f0-4d0d-9dfd-7d387ac2cdf9">reported</a> the Financial Times.



The announcement was made by&nbsp;Sundar Pichai, CEO of Google&#8217;s parent company, Alphabet,&nbsp;during its annual I/O developer&nbsp;conference in Mountain View, California. Pichai&nbsp;labelled the move as a&nbsp;&#8220;total reimagining of search.&#8221;



This release is part of Google&#8217;s ongoing efforts to incorporate generative AI into its dominant search engine, despite investor concerns that the new products may cannibalize its current revenue streams. The &#8220;AI Mode&#8221; follows last year&#8217;s introduction of &#8220;AI Overviews&#8221; at the I/O conference.



Among other things, Google showcased new products, including smart glasses and introduced an "AI Ultra Plan" costing $249.99 per month. The plan offers higher AI usage limits and early access to experimental tools like Project Mariner, which automates browser actions and Deep Think, an advanced version of Gemini designed for complex reasoning tasks, as reported by Reuters.



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/05/45510057/senate-crypto-bill-passes-key-vote-genius-act-moves-toward-final-passage" target="_blank" rel="noreferrer noopener">Senate Crypto Bill Passes Key Vote, GENIUS Act Moves Toward Final Passage &#8211; Benzinga</a>



Why It Matters: The revamp of Google&#8217;s search engine comes at a crucial time for the company. Google, <a href="https://www.benzinga.com/markets/25/05/45509746/google-i-o-2025-a-big-deal-says-gene-munster-sundar-pichais-alphabet-has-no-choice-but-to-disrupt-itself-before-someone-else-does">criticized for lagging</a> in AI development while rivals like OpenAI and Anthropic gained ground, has accelerated its rollout of new tools. It has upgraded its Gemini model—claiming the 2.5 version outperforms competitors in key benchmarks, especially in coding—and plans to launch its AI assistant, Project Mariner, this summer. 



The assistant can perform complex tasks by controlling users' browsers and software. However, growing concerns about privacy remain as AI models begin incorporating long-term memory. 



Google&#8217;s CEO, Sundar Pichai, has also been in <a href="https://www.benzinga.com/news/legal/25/05/45128130/google-aims-for-gemini-ai-deal-with-apple-this-year-says-sundar-pichai-amid-dojs-bid-to-curb-search-monopoly">talks </a>with Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) to integrate the company&#8217;s Gemini AI into iPhones, as federal regulators work to curb Google&#8217;s dominance in online search. However, as AI development charges on, tech&nbsp;experts have raised concerns over&nbsp;safety taking a backseat to profit potential.



Benzinga Edge Stock Rankings shows that Alphabet had a stronger price trend over the short term but a weaker trend over the medium and long term. Its momentum ranking was moderate at the 35th percentile, whereas its growth ranking was strong at the 89th percentile; the details of other metrics are available <a href="https://www.benzinga.com/quote/GOOG">here</a>.



The shares of Alphabet dropped 1.52% to $165.32, while on a year-to-date basis, it dropped 13.28%.



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/news/25/05/45535070/panama-moves-to-legalize-bitcoin-nationwide-as-trumps-pro-crypto-policies-fuel-global-adoption" target="_blank" rel="noreferrer noopener">Panama Moves To Legalize Bitcoin Nationwide As Trump&#8217;s Pro-Crypto Policies Fuel Global Adoption &#8211; Benzinga</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

GOOGL

Google Unveils 'Total Reimagining Of Search' With Chatbot-Style Feature To Compete With OpenAI

The CNN Money Fear and Greed index showed a slight decline in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Tuesday.



U.S. stocks settled lower on Tuesday, with the Dow Jones index falling more than 100 points during the session. The S&amp;P 500 also snapped a six-session winning streak.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock edged higher on Tuesday after CEO Elon Musk, speaking at the Qatar Economic Forum, said he remains committed to leading the company for the next five years.



Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) reported stronger-than-expected first-quarter sales results and reaffirmed its full-year outlook. Amer Sports, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) reported better-than-expected first-quarter FY25 results.



On the economic data front, the U.S. Redbook Index rose by 5.4% year-over-year in the week ending May 17.



Most sectors on the S&amp;P 500 closed on a negative note, with energy, consumer discretionary, and communication services stocks recording the biggest losses on Tuesday. However, utilities and health care stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 115 points to 42,677.24 on Tuesday. The S&amp;P 500 fell 0.39% to 5,940.46, while the Nasdaq Composite declined 0.38% to 19,142.71 during Tuesday's session.



Investors are awaiting earnings results from Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>), Lowe&#8217;s Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>), and The TJX Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TJX#NYSE">TJX</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 69.2, the index remained in the &#8220;Greed&#8221; zone on Tuesday, versus a prior reading of 69.4.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



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</ul>



Photo courtesy: Shutterstock

S&P 500 Snaps 6-Session Winning Streak: Investor Sentiment Edges Lower, But Fear Index Remains In 'Greed' Zone

China has threatened legal action against any individual or organization assisting with or implementing U.S. semiconductor restrictions, escalating tensions in the ongoing tech rivalry between the world&#8217;s two largest economies.



What Happened: China&#8217;s commerce ministry said there could be &#8220;corresponding legal liabilities&#8221; for those involved in U.S. measures it characterized as &#8220;discriminatory restrictive measures&#8221; against Chinese firms, Reuters reported. 



The warning comes after the U.S. published guidance last week cautioning companies against using Ascend AI chips from Huawei Technologies.



The dispute highlights growing friction as both nations compete for dominance in advanced technology. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang recently criticized U.S. chip export controls as &#8220;exactly wrong for America,&#8221; revealing his company wrote off $5.5 billion in inventory and lost <a href="https://www.benzinga.com/25/05/45513246/nvidia-ceo-jensen-huang-says-chinese-ai-researchers-are-world-class-and-us-companies-are-hiring-a-whole-bunch-of-them">approximately $15 billion in sales</a> due to these restrictions.



&#8220;China&#8217;s doing fantastic, 50% of the world&#8217;s AI researchers are Chinese and you&#8217;re not going to hold them back,&#8221; Huang said at Computex 2025, arguing American companies should be allowed to compete in China to &#8220;offset the trade deficit.&#8221;



See Also: <a href="https://www.benzinga.com/general/space/25/05/45532125/l3harris-stock-moves-higher-after-being-named-in-golden-dome-missile-defense-system">L3Harris Stock Moves Higher After Being Named In &#8216;Golden Dome&#8217; Missile Defense System</a>



Why It Matters: The technology standoff has intensified since April, when China imposed retaliatory tariffs up to 125% on U.S.-made chips, while <a href="https://www.benzinga.com/25/04/44770461/intel-on-slump-as-china-hits-us-made-chips-with-tariffs-amd-and-taiwan-semiconductor-rise-on-exemption-boost">exempting Taiwan-manufactured semiconductor</a>s. This policy benefits companies like Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) that outsource to Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), while potentially harming U.S.-based fabricators like Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).



Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) co-founder Bill Gates recently noted that export bans have <a href="https://www.benzinga.com/news/25/05/45342962/bill-gates-slams-trumps-tariffs-we-told-china-to-make-their-own-chips-and-theyre-making-great-progress-warns-its-a-bad-time-to-inte">only accelerated China&#8217;s self-reliance efforts</a>. &#8220;We made clear to them that they needed to make their own chips, and they&#8217;re making great progress on doing that,&#8221; Gates told CNN.



China&#8217;s ministry urged the U.S. to &#8220;abide by international economic and trade rules&#8221; and respect other countries&#8217; technological development rights.



Image Via Shutterstock



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

INTC

QCOM

China Warns Of Legal Retaliation Against US Chip Sanctions, Threatens Lawsuits For Aiding 'Discriminatory' Tech Crackdown

On Tuesday, Cathie Wood-led Ark Invest made notable trades, prominently acquiring shares of Taiwan Semiconductor Manufacturing Co. Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>). This strategic move involved significant purchases across multiple Ark ETFs, reflecting a strong belief in TSMC&#8217;s future potential.



The TSM Trade: Ark Invest&#8217;s acquisition of TSMC shares on Tuesday was substantial, with the ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) purchasing 27,099 shares and the ARK Next Generation Internet ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#BATS">ARKW</a>) acquiring 16,172 shares. On Tuesday, Taiwan Semiconductor stock was largely unmoved at $193.45. The Ark trades were valued at $8.4 million. Earlier, on Monday, Ark had <a href="https://www.benzinga.com/25/05/45509626/cathie-woods-monday-moves-ark-bets-on-nvidia-supplier-tsmc-sells-6-5-million-of-mark-zuckerbergs-meta-shares">picked up $3.83 million worth</a> of TSMC stock.



TSMC&#8217;s <a href="https://www.benzinga.com/media/25/05/45515826/taiwan-semiconductor-qualcomm-mediatek-team-up-to-power-next-gen-mobile-and-ai-chips">ongoing collaborations</a> with Qualcomm and other original design manufacturers in Taiwan further highlight its pivotal role in advancing next-generation mobile and AI chips. Qualcomm&#8217;s chief, Cristiano Amon, emphasized the importance of TSMC in their supply chain ahead of the Computex trade show. This partnership is expected to solidify TSMC&#8217;s position as a leader in the semiconductor industry.



Other Key Trades:



<ul class="wp-block-list">
<li>Sold 1,300 shares of UiPath Inc. (PATH) from the ARK Fintech Innovation ETF (ARKF).</li>



<li>Bought 84,478 shares of Nextdoor Holdings Inc (KIND) through the ARK Next Generation Internet ETF (ARKW).</li>



<li>Acquired 839 shares of Blade Air Mobility Inc (BLDE) via the ARK Space Exploration &amp; Innovation ETF (ARKX).</li>
</ul>



TSMC ranks 82nd in Momentum and also on Growth, according to Benzinga Edge Stock Rankings. For a fuller analysis of the stock, <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">click here</a>.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="797" height="99" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20211856/Screenshot-2025-05-21-at-10.18.41.png" alt="" class="wp-image-922020" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20211856/Screenshot-2025-05-21-at-10.18.41.png 797w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20211856/Screenshot-2025-05-21-at-10.18.41-300x37.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20211856/Screenshot-2025-05-21-at-10.18.41-768x95.png 768w" sizes="(max-width: 797px) 100vw, 797px" /></a></figure>



Photo Courtesy: Ira Lichi On Shutterstock.com



Read Next: 



<ul class="wp-block-list">
<li><a href="https://benzinga.com/markets/cryptocurrency/25/05/45510057/senate-crypto-bill-passes-key-vote-genius-act-moves-toward-final-passage" target="_blank" rel="noreferrer noopener">Senate Crypto Bill Passes Key Vote, GENIUS Act Moves Toward Final Passage</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

ARKW

Cathie Wood Just Spent $8.4 Million On This Top Chip Stock (And It's Not NVIDIA)

On Tuesday, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk found himself in a heated discussion with CNBC's David Faber regarding his involvement in federal spending cuts under President Donald Trump&#8217;s administration.



What Happened: The conversation, part of CNBC&#8217;s &#8220;Power Lunch,&#8221; initially centered on Tesla and autonomous vehicles but soon shifted to Musk&#8217;s role with the Department of Government Efficiency, <a href="https://thehill.com/policy/technology/5310122-elon-musk-tensions-cnbc-interview/">reported</a> The Hill.



Faber questioned Musk about the tangible impact of DOGE&#8217;s cost-cutting efforts, highlighting the criticism Musk has faced.



Musk responded, &#8220;We are advisers. We are not—we're not kings here.&#8221;



See Also: <a href="https://www.benzinga.com/tech/25/05/45510245/elon-musk-was-once-a-microsoft-intern-now-his-company-is-bringing-grok-to-azure-incredibly-important-for-ai-to-be-grounded-in-reality-xai-ceo-tells-satya-nadella">Elon Musk Was Once A Microsoft Intern — Now His Company Is Bringing Grok To Azure: &#8216;Incredibly Important For AI To Be Grounded In Reality,&#8217; xAI CEO Tells Satya Nadella</a>



The tech mogul then interrupted Faber, saying, &#8220;So why are you attacking this? Given that we've made so much progress?&#8221;



Faber then said that he was simply asking questions, not attacking. The exchange began when Faber mentioned Musk&#8217;s initial goal of cutting $1 trillion in federal spending, which Musk admitted was not immediately feasible, the report said.



Musk said that DOGE has managed to cut nearly $160 billion in spending, though Faber noted discrepancies in reported figures. Musk explained the methodology behind the numbers, while Faber suggested alternative budget strategies.



Why It Matters: Musk&#8217;s involvement with DOGE has been a topic of debate since his appointment. Despite efforts to cut costs, <a href="https://www.benzinga.com/25/04/44778750/musks-government-efficiency-push-falls-short-as-treasury-data-shows-spending-up-sharply-under-trumps-second-term-report">federal spending has reportedly increased</a> by $154 billion since President Trump&#8217;s return to office, according to Treasury data.



Earlier this month, Musk shared mixed sentiments about his first 100 days in office, noting some progress within the DOGE while also <a href="https://benzinga.com/markets/25/05/45163408/doge-not-as-effective-as-id-like-says-elon-musk-calls-reform-really-difficult-like-changing-direction-of-a-fleet-of-supertankers">recognizing its limitations</a>. &#8220;We haven't been as effective as I'd like.&#8221;



Last month, during <a href="https://www.benzinga.com/news/earnings/25/04/44937440/tesla-q1-misses-estimates-as-tariff-pressures-weigh-on-outlook-lower-cost-evs-still-on-track">Tesla's first quarter earnings</a> call, Musk announced <a href="https://www.benzinga.com/25/05/45381782/elon-musk-vows-to-spend-less-time-in-white-house-doge-office-investors-warn-the-damage-is-done-and-teslas-troubles-are-far-from-over">plans to reduce his time at DOGE</a>. This decision comes amid investor concerns that his political role has distracted from Tesla&#8217;s core operations.



Price Action: Tesla shares edged up 0.51% on Tuesday, ending the session at $343.82. The stock saw a marginal after-hours gain of 0.015%, based on <a href="http://pro.benzinga.com/">Benzinga Pro data</a>.



According to Benzinga Edge Stock Rankings, Tesla holds a growth score of 45.44%. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here to compare it with other leading stocks</a>.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="438" height="277" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20223429/Screenshot-2025-05-21-at-11.34.05.png" alt="" class="wp-image-922066" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20223429/Screenshot-2025-05-21-at-11.34.05.png 438w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/20223429/Screenshot-2025-05-21-at-11.34.05-300x190.png 300w" sizes="(max-width: 438px) 100vw, 438px" /></a></figure>



Shutterstock/Joshua Sukoff



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45396297/cathie-wood-dumps-palantir-as-stock-touches-peak-prices-bails-on-soaring-flying-taxi-maker-archer-aviation" target="_blank" rel="noreferrer noopener">Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Government

Media

Elon Musk Just Got Grilled On DOGE Spending,  Hits Back With 'We're Not Kings Here'

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) plans to launch its robotaxis in Austin, Texas in June, according <a href="https://www.benzinga.com/topic/elon-musk">to CEO Elon Musk</a>.



What To Know: Musk, in an interview aired on Tuesday&#8217;s edition of CNBC&#8217;s &#8220;Power Lunch,&#8221; explained that the robotaxi rollout will start small and ramp up to hundreds of thousands of vehicles as soon as next year.



&#8220;We want to be very careful with the first introduction of unsupervised full self-driving, meaning the car&#8217;s driving around with no one in it,&#8221; Musk said.



Musk expects about 10 vehicles on the roads in the first week, about 1,000 driverless vehicles on the roads within a few months, and hundreds of thousands of vehicles capable of unsupervised full self-driving on the roads by the end of next year, &#8220;if not over a million.&#8221;



When CNBC&#8217;s David Faber asked why Musk is so confident, the CEO said Tesla vehicles are already driving themselves 24/7 with drivers in them, and the company has seen &#8220;essentially no interventions.&#8221;



Musk said that the company expects to unveil a business model for full self-driving similar to Uber Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) and Airbnb Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), where Tesla owners can rent out their vehicles when they aren&#8217;t using them.



&#8220;It&#8217;s a way for Tesla owners to earn revenue. Instead of having your car sit in the parking lot, your car could be earning money,&#8221; Musk said. &#8220;These things happen slowly, but then all at once.&#8221;



See Also: <a href="https://www.benzinga.com/markets/25/05/45516240/tesla-cfo-vaibhav-taneja-receives-record-139-million-pay-surpassing-most-ceos-even-as-elon-musk-faces-compensation-lawsuit">Tesla CFO Vaibhav Taneja Receives Record $139 Million Pay, Surpassing Most CEOs</a>



Why It Matters: Tesla bears have raised concerns about the company&#8217;s first-quarter performance, pointing to a&nbsp;9% year-over-year decrease in sales as automotive revenue dropped 20%. 



Musk also told CNBC that the company has seen a &#8220;major rebound in demand&#8221; since the first quarter.



Production numbers were also well below those of the same period last year, but shares moved higher following the report as Musk announced plans to reduce time spent working on government initiatives and provided optimistic commentary around full self-driving and the company&#8217;s humanoid Optimus bots. Musk reiterated that vision on Tuesday.



&#8220;Really the only things that matter long term are autonomy and Optimus. Those overwhelmingly dominate the future financial success of the company,&#8221; Musk said.



Tesla has not provided an exact date for its robotaxi launch in Austin. 



Musk's visionary rhetoric is often scrutinized due to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36039263/did-tesla-overpromise-and-underdeliver-with-the-cybertruck">overpromising and underdelivering</a> on ambitious projects, especially regarding Tesla robotaxis.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">This is why it's possible for Tesla to have a million robotaxis by end of 2020 if we upgrade existing HW2 fleet of ~500k &amp; make at least ~500k FSD cars&mdash; Kekius Maximus (@elonmusk) <a href="https://twitter.com/elonmusk/status/1148070210412265473?ref_src=twsrc%5Etfw">July 8, 2019</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



TSLA Price Action: Tesla shares were well off their highs for the session, but still up about 0.45% at $343.58 at the time of publication Tuesday. Tesla&#8217;s stock has gained approximately 44% over the past month, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45520017/why-morgan-stanley-remains-bullish-on-tesla">Why Morgan Stanley Remains Bullish On Tesla</a></li>



<li><a href="https://www.benzinga.com/news/25/05/45519469/tesla-stock-rises-after-musk-reaffirms-leadership-and-business-rebound">Tesla Stock Rises After Musk Reaffirms Leadership And Business Rebound</a></li>
</ul>



Photo: courtesy of Tesla.

ABNB

Elon Musk Expects Tesla Robotaxi Launch For June: 'These Things Happen Slowly, Then All At Once'

Palo Alto Networks Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) reported third-quarter financial results for fiscal 2025 after the market close on Tuesday. Here&#8217;s a rundown of the <a href="https://www.benzinga.com/pressreleases/25/05/n45529278/palo-alto-networks-reports-fiscal-third-quarter-2025-financial-results">cybersecurity company&#8217;s report</a>.



Q3 Earnings: Palo Alto reported third-quarter revenue of $2.29 billion, beating the&nbsp;<a href="http://benzinga.com/quote/PANW/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $2.28 billion. The company reported third-quarter adjusted earnings of 80 cents per share, beating analyst estimates of 77 cents per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 15% year-over-year and remaining performance obligations grew 19% year-over-year to $13.5 billion. The cybersecurity company said next-generation security annual recurring revenue increased 34% year-over-year to $5.1 billion.



Palo Alto ended the quarter with approximately $2.38 billion in cash and cash equivalents.



&#8220;In&nbsp;Q3, we continued to make progress on our platformization strategy and achieved an important milestone in crossing&nbsp;$5 billion&nbsp;in Next-Gen Security ARR,&#8221; said&nbsp;Nikesh Arora, chairman and CEO of Palo Alto Networks. &#8220;Our scale and platform breadth makes us a leading consolidator of choice in cybersecurity.&#8221;



Guidance:&nbsp;Palo Alto expects fiscal fourth-quarter revenue to be in the range of $2.49 billion to $2.51 billion versus estimates of $2.5 billion. The company expects fourth-quarter adjusted earnings to be between 87 cents and 89 cents per share versus estimates of 86 cents per share.



Palo Alto also raised its full-year 2025 guidance. The company now expects full-year revenue of $9.17 billion to $9.19 billion, up from prior guidance of $9.14 billion to $9.19 billion. The company now anticipates full-year adjusted earnings of $3.26 to $3.28 per share, up from prior guidance of $3.18 to $3.24 per share, per&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>. Analysts are forecasting full-year revenue of $9.17 billion and full-year adjusted earnings of $3.22 per share.



Palo Alto executives will further discuss the company&#8217;s quarterly performance on a conference call with investors and analysts at 4:30 p.m. ET.



PANW Price Action: <a href="https://www.benzinga.com/quote/PANW" target="_blank" rel="noreferrer noopener">Palo Alto shares</a> were up approximately 6.5% year-to-date heading into the report. The stock was down 3.81% after hours, trading at $187.09 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45526658/palo-alto-networks-is-a-top-ai-driven-cybersecurity-play-analyst">Palo Alto Networks Is A Top AI-Driven Cybersecurity Play: Analyst</a></li>



<li><a href="https://www.benzinga.com/trading-ideas/movers/25/05/45501031/crowdstrike-announces-integration-in-nvidia-enterprise-ai-factory">CrowdStrike Announces Integration In Nvidia Enterprise AI Factory</a></li>
</ul>



Photo: Shutterstock.

Palo Alto Reports Q3 Earnings, Raises FY25 Guidance, Shares Slide

Bitcoin is testing the $106,000 level on Tuesday, while Ethereum, XRP and Dogecoin continue to show signs of weakness.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$106,003.37</td><td>+0.95%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$2,468.88</td><td>-1.2%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>&nbsp;$165.96</td><td>+0.4%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$2.33</td><td>-1.8%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>&nbsp;$0.2202</td><td>-1.5%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>&nbsp;$0.00001425</td><td>-1.3%</td></tr></tbody></table></figure>



Notable Statistics:



<ul class="wp-block-list">
<li>IntoTheBlock data shows large transaction volume increasing by 62.5% and daily active addresses up by 16.5%. Transactions greater than $100,000 are up from 7,945 to 11,221 in a single day. Exchanges netflows surged by 5,227.5%.</li>



<li>Coinglass data reports 68,648 traders were liquidated in the past 24 hours for $192.88 million.</li>
</ul>



Notable Developments:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45510057/senate-crypto-bill-passes-key-vote-genius-act-moves-toward-final-passage">Senate Crypto Bill Passes Key Vote, GENIUS Act Moves Toward Final Passage</a></li>



<li><a href="https://www.benzinga.com/general/market-summary/25/05/45515900/mstrs-new-bitcoin-accounting-standard-to-drive-financial-swings-make-earnings-volatile-says-expert-after-lawsuit-hits-strategy">MSTR&#8217;s New Bitcoin Accounting Standard To Drive &#8216;Financial Swings,&#8217; Make Earnings &#8216;Volatile,&#8217; Says Expert After Lawsuit Hits Strategy</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45517785/bitcoin-to-hit-500000-by-2028-standard-chartered-says-as-etfs-buy-667m-on-monday">Bitcoin To Hit $500,000 By 2028, Standard Chartered Says, As ETFs Buy $667M On Monday</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45522456/genesis-accuses-dcg-barry-silbert-of-fraud-seeks-1-2b-in-crypto-transfers-made-during-insolvency">Genesis Accuses DCG, Barry Silbert Of Fraud, Seeks $1.2B In Crypto Transfers Made During Insolvency (UPDATED)</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Pendle (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">PENDLE</a>)</td><td>&nbsp;$4.36</td><td>+8.5%</td></tr><tr><td>Aave (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/aave/usd">AAVE</a>)</td><td>&nbsp;$255.82</td><td>+7.9%</td></tr><tr><td>Curve DAO Token (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/crv/usd">CRV</a>)</td><td>&nbsp;$0.7006</td><td>+5.3%</td></tr></tbody></table></figure>



Trader Notes: Analyst Kevin believes a clean break above $106,800 would confirm the next leg up toward $116,000, but until then, he warns it's still a &#8220;wait and see&#8221; environment.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Break 106.8K cleanly on <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> and I&#39;ll see you at 116K until then we wait and see. <a href="https://t.co/mRBYF0SIps">pic.twitter.com/mRBYF0SIps</a>&mdash; Kevin (@Kev_Capital_TA) <a href="https://twitter.com/Kev_Capital_TA/status/1924885672915091746?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Meanwhile, Michael van de Poppe <a href="https://x.com/CryptoMichNL/status/1924795741186256968">sees</a> familiar patterns forming, noting Bitcoin's current stagnation mirrors the all-time high consolidations of 2017 and 2021, periods that preceded explosive upside moves. 



He suggests this could be the calm before the storm in the ongoing bull cycle. 



Quinten Francois offered a strategic note: "Buy in May and go away (for 5 months)," hinting that patient long-term positioning now could pay off by Q4.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Buy in May and go away (for 5 months) <a href="https://t.co/cGmfWts7Kl">https://t.co/cGmfWts7Kl</a>&mdash; Quinten &#x7C; 048.eth (@QuintenFrancois) <a href="https://twitter.com/QuintenFrancois/status/1924901312891596940?ref_src=twsrc%5Etfw">May 20, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Jelle, another trader, <a href="https://x.com/CryptoJelleNL/status/1924790562009346526">said</a> Bitcoin is nearing a new phase of price discovery. Staying disciplined, he trimmed 2% of his position as per plan but maintains strong exposure for what he expects to be a smooth final leg of the bull run. "Gains are secured. Now, we ride."



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45525006/bitcoin-is-about-to-make-a-golden-cross-what-happens-next">Bitcoin Is About To Make A Golden Cross: What Happens Next?</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$AAVE

$BTC

$CRV

$DOGE

$ETH

$PENDLE

$SHIB

$SOL

$XRP

Bitcoin Taps $106,000 As Ethereum, XRP, Dogecoin Struggle

Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) could provide a gauge for consumer spending and the impact of tariffs when the company reports its first-quarter financial results before the market opens<a href="https://www.benzinga.com/earnings"> Wednesday.</a>



Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.



Earnings Estimates: Analysts expect Target to report first-quarter revenue of $24.32 billion, down from $24.53 billion in last year's first quarter, according to data<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0520"> from Benzinga Pro.</a>



The company beat analyst estimates for revenue in the fourth quarter and has beaten analyst estimates in seven of the last 10 quarters.



Analysts expect the company to report first-quarter earnings per share of $1.65, down from $2.03 in last year's first quarter. The company beat analyst estimates in the fourth quarter and has beaten them in seven of the last 10 quarters overall.



Read Also: <a href="https://www.benzinga.com/news/earnings/25/05/45516206/target-how-to-earn-500-a-month-from-stock-ahead-of-q1-earnings">How To Earn $500 A Month From Target Stock Ahead Of Q1 Earnings</a>



What Analysts Are Saying: Analysts have been lowering their price targets ahead of the quarterly financial results.



Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on Target and lowered the price target from $145 to $130 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45474952/analyst-lowers-target-q1-forecast-amid-spending-slump-rising-consumer-tariffs">ahead of the report.</a>



The analyst said Target&#8217;s quarterly report could show weaker consumer spending, particularly in areas like general merchandise and discretionary items.



Feldman also cautioned about rising costs due to promotions, increased labor costs, higher-tech investments, and the impact of tariffs.



The analyst said Target gets around 50% of its cost of goods sold from within the United States, with around 30% from China. Target could use items like vendor negotiations, sourcing diversification and price increases to offset the tariff impact, he said.



Here are other recent <a href="https://www.benzinga.com/quote/TGT/analyst-ratings">analyst ratings on Target</a> and their price targets:



<ul class="wp-block-list">
<li>Barclays: Maintained Equal-Weight rating, lowered price target from $140 to $102</li>



<li>Citigroup: Maintained Neutral rating, increased price target from $95 to $97</li>



<li>Piper Sandler: Maintained Neutral rating, lowered price target from $124 to $105</li>



<li>Bernstein: Downgraded stock from Market Perform to Underperform, lowered price target from $97 to $82</li>



<li>JPMorgan: Maintained Neutral rating, lowered price target from $120 to $95</li>
</ul>



Key Items to Watch: Tariffs remain one of the key items investors and analysts will be watching in Target's report and commentary. The report comes days after retail peer Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>)<a href="https://www.benzinga.com/news/earnings/25/05/45436534/walmart-doesnt-alter-annual-outlook-yet-ceo-says-all-tariffs-create-cost-pressures-but-china-has-biggest-impact"> reported earnings per share</a> that beat analyst estimates and sales that missed estimates.



Walmart said that price increases were coming soon to offset the impact of tariffs, a comment <a href="https://www.benzinga.com/markets/25/05/45484675/trumps-tariff-challenge-amid-rising-price-concerns-president-tells-walmart-to-eat-the-tariffs">that upset</a> President Donald Trump.



Target was one of several companies whose CEOs <a href="https://www.benzinga.com/25/04/44920573/ceos-of-walmart-target-home-depot-meet-trump-to-push-back-on-tariffs-impacting-consumer-prices">met with Trump</a> to discuss the tariff impacts and potential for empty shelves for consumers.



After Walmart was pressured for its comments about increasing prices to offset tariffs, Target could be faced with the tough choice of upsetting Trump by raising prices or finding other ways to offset costs.



Target reported sales down 3.1% in the fourth quarter, with comparable sales up 1.5%. Based on a Placer.ai report, the company could be in for another down sales quarter.



The report said Target visits were down 4.1% in the first quarter, compared to a 2.4% drop for Walmart. Both figures are based on a year-over-year basis. Target&#8217;s visits were up 3.5% year-over-year in January, with declines of 9.1% and 6.5% in February and March.



In April, Target visits were down 3.3% year-over-year, compared to a 4.5% gain for Walmart.



The company trailed Walmart's year-over-year performance in each of the months except for January.



Target's previous guidance called for <a href="https://www.benzinga.com/25/03/44106754/targets-q4-earnings-beat-estimates-warns-consumer-uncertainty-impact-in-q1-profits">full-year sales growth</a> of 1% with comparable sales flat. The company warned that the first quarter could experience year-over-year profit challenges due to tariffs, the timing of expenses and consumer uncertainty.



Investors and analysts will be watching to see if Target maintains its full-year guidance or pulls back due to a weak quarter and/or more uncertainty ahead.



TGT Price Action: Target stock was up 0.3% to $98.29 on Tuesday, versus a 52-week trading range of $87.35 to $167.40. However, it is down 28% year-to-date in 2025 and over 37% in the last year.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45342977/trumps-tariffs-reportedly-push-walmart-and-target-toy-suppliers-to-the-brink-of-closure-if-nothing-changes-well-be-crippled">Trump&#8217;s Tariffs Reportedly Push Walmart And Target Toy Suppliers To The Brink Of Closure: &#8216;If Nothing Changes, We&#8217;ll Be Crippled&#8217;</a></li>
</ul>



Photo: Shutterstock

Previews

Reiteration

Target Q1 Earnings Preview: Will The Company Blame Tariffs, Price Increases After Trump Scolded Walmart?

Elon Musk does not follow. He builds, and others orbit.



This is not about fanfare. It is about historical cycles, timing, and the alignment of power, capital, and attention. My best stock pick for 2025 is Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), because no other public company sits at the center of so many converging forces, artificial intelligence, energy independence, global mobility, and social engineering. I am also betting on the eventual IPO of X, Musk's media platform, which will stoke speculative capital and narrative momentum around all of his holdings. But Tesla will lead. Because it is already built, already producing, and already positioned.



Tesla will dominate this cycle not just because of Musk's name, but because of what Tesla now represents. It is no longer a car company. It is a machine-learning engine that happens to sell vehicles, solar arrays, home batteries, humanoid robots, and, soon enough, autonomous software. It is the operating system of physical civilization. Wall Street has not caught up yet. But markets are shaped by attention, and attention will shift.



Tesla will be the beneficiary of three unstoppable waves in 2025: capital realignment, public desperation for direction, and Musk's calculated media conquest.



The Capital Wave When rates drop, and they will, the money will return to tech first. It always does. Throughout modern financial history, capital seeks growth the moment the cost of holding money declines. In 2023 and 2024, the Federal Reserve held rates elevated to tame inflation and slow down excess speculation. What it also did was trap trillions of dollars on the sidelines, waiting. As inflation continues to cool into the second half of 2025, institutions will be forced to redeploy. There are only a few names with the scale, vision, and volatility profile that large capital craves. Tesla tops that list.



Historically, we have seen similar patterns. In the early 2010s, capital chased Facebook, Google, and Amazon, because they were building digital monopolies. From 2019 to 2021, the same capital chased Tesla because it finally proved it could produce cars at scale while delivering growth numbers that broke valuation models. When rates fell, Tesla ran from $90 to $400 pre-split. The market understood where the force was, even if the balance sheets did not fully justify it.



It is about direction. Tesla has direction. Investors want velocity. Musk delivers that.



The Cultural Wave Beyond capital, there is a vacuum forming. The average person no longer believes in media, politics, or even education. They are looking for a signal to follow. Musk has filled that role. He does not posture. He executes. He builds rockets. He fights on social media. He takes positions. This creates resentment, but also loyalty.



In 2022 and 2023, the cultural elite attempted to dismantle Musk's influence. He responded by owning Twitter, now X, and transforming it into the free speech epicenter of digital conversation. People laughed. Now governments post policy updates on X first. News outlets pay to remain visible. Political movements rise or fall by his reply. It is not just a platform anymore. It is a nervous system for the new power class.



In 2025, I expect Musk to bring X public. Not because he needs the money, but because he understands narrative. The IPO will be a spectacle. It will draw attention, and that attention will spill over into Tesla, because the public cannot, and will not, separate Elon's personal momentum from his public companies.



This happened before. When Musk tweeted about Dogecoin in 2021, the token went vertical. Not because of fundamentals, but because of presence. When he hosted SNL, ratings spiked. When he sells flame-throwers or perfumes, they sell out in hours. Whether it is serious engineering or satire, he captures the collective gaze. Tesla stock will move because the crowd follows energy.



The Engineering Wave Technologically, Tesla is years ahead. Not in design, but in data.



While legacy carmakers struggle to pivot to electric, Tesla is quietly amassing a global neural net from real-world driving. Their Full Self Driving (FSD) software is not just an idea. It is deployed. Every mile driven trains the algorithm. And Tesla does not pay users for that data, they pay Tesla. It is the most efficient data acquisition model in history.



Other automakers outsource their vision systems. Tesla owns theirs. Others rely on partnerships for battery systems. Tesla controls theirs. Others are just now realizing that vertical integration matters. Tesla proved it years ago. While competitors drown in supply chain confusion and regulatory compliance, Tesla scales with precision. The results are obvious, but the implications are greater. This is not about electric vehicles. This is about who owns the interface between machine and motion.



On top of that, Tesla's energy division is quietly expanding. Battery storage installations are rising. Powerwall adoption is climbing. As power grids strain and blackout warnings rise, Tesla becomes not just a car company, but a home infrastructure brand. This will not just protect margins, it will multiply them.



In short, Tesla is building the infrastructure backbone of the future, and the market has not priced that in.



The Counter-Narrative and Why It Will Fail Critics say the stock is overpriced. They point to price-to-earnings ratios, debt levels, and production hiccups. But this is not a value stock. It is not trying to be. Tesla is priced for a future that does not exist yet. That is the point.



Amazon was ridiculed in 2003 for trading at 3,000 times earnings. But it owned the rails of ecommerce. Netflix was mocked in 2010 for shifting to streaming. But it owned the distribution. Tesla is doing the same with AI-driven mobility and energy. The valuation is not wrong. The lens is.



This is not an endorsement of reckless optimism. This is an assessment of reality. Valuations are elastic. Markets reward acceleration and innovation when the environment favors it. In 2025, the conditions will align. Low rates, public fatigue, and technological hunger will drive Tesla forward.



The bears will remain stuck in spreadsheets. The winners will be the ones watching behavior.



Final Position I am buying Tesla now because I understand what Musk is doing. It is not a gamble. It is a force.



Tesla will surge not because of an ad campaign or quarterly surprise, but because it is the only public stock that functions like a movement. When the X IPO hits, when FSD goes wide, when capital returns to tech, there will be a revaluation.



By the time Wall Street catches up, it will be too late.



That is why <a href="https://www.benzinga.com/quote/TSLA">TSLA </a>is my top stock pick for 2025.



I am not investing based on hope.



I am investing because I understand attention, timing, and force.



#TSLA #X #ElonMusk #ArtificialIntelligence #ElectricVehicles #Leadership #StockMarket #Capital #Energy #Technology

Why Tesla Is My Top Stock Pick For 2025: The Year of Elon Musk… Again

U.S. stocks pulled back Tuesday morning as Wall Street recalibrated expectations on growth and inflation amid rising fiscal risks tied to President Donald <a href="https://www.benzinga.com/topic/donald-trump">Trump's sweeping tax proposal.</a>



The S&amp;P 500 declined 0.4% to 5,935, potentially ending its six-day rally, while tech shares showed parallel losses. Small-cap equities held their ground, with the Russell 2000 trading flat.



Tensions are mounting in the U.S. House of Representatives, where lawmakers are locked in heated debates over Trump's proposed "One Big Beautiful Bill." The bill seeks to extend 2017 tax cuts, expand exemptions and overhaul federal spending, effectively tying tax relief to a reshaping of government priorities.



Trump has personally urged GOP lawmakers to back the bill, which he considers central to his second-term agenda.



&#8220;Alternative to not passing tax bill is massive tax hikes,&#8221; Trump said on Tuesday. 



Markets responded swiftly to the possibility of higher long-term government borrowing. The yield on the 30-year Treasury note rose seven basis points to 4.98%, a level not seen since March. As a result, the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) fell 0.9%.



Despite rising yields, gold rallied sharply by 1.8% to $3,280 per ounce, reversing nearly all of last week's losses. The safe-haven demand may reflect investor concern over mounting deficits and inflationary spillovers.



In energy markets, Henry Hub natural gas prices spiked over 9% to $3.39 per million British thermal units. Traders are betting on a demand rebound in case of an early summer heatwave, which could sharply increase air conditioning usage.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 0.4% to $105,000. 



<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S., Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day chg. %</td></tr><tr><td>Russell 2000</td><td>2,103.06</td><td>-0.1 %</td></tr><tr><td>Dow Jones</td><td>42,669.90</td><td>-0.3%</td></tr><tr><td>S&amp;P 500</td><td>5,943.01</td><td>-0.3%</td></tr><tr><td>Nasdaq 100</td><td>21,364.43</td><td>-0.4%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:20 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) edged 0.4% down to $592.44.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.3% to $426.57.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;fell 0.5% to $519.28.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.11% up to $209.20.</li>



<li>The&nbsp;Utilities&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was down 0.032%; the&nbsp;Real Estate&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down 0.8%.</li>
</ul>



<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>



<ul class="wp-block-list">
<li>Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) slipped 0.5%, even as <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45519467/microsofts-4-trillion-moment-is-now-in-sight-goldman-sachs">Goldman Sachs lifted</a> its price target from $480 to $550.</li>



<li>Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) soared 17% in reaction to quarterly earnings. </li>



<li>Home Depot Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) inched 0.5% after marginally missing Street&#8217;s estimates. </li>



<li>Stocks slated to report earnings after the close include Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and Keysight Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEYS#NYSE">KEYS</a>) Read Now: • <a href="https://www.benzinga.com/25/05/45517783/magnificent-7-stun-the-street-with-the-best-earnings-beat-since-2021">Magnificent 7 Stun The Street With Best Earnings Beat Since 2021</a> Photo: Shutterstock<a href="https://www.benzinga.com/25/05/45517783/magnificent-7-stun-the-street-with-the-best-earnings-beat-since-2021"> </a> </li>
</ul>

Regulations

KEYS

XLRE

Wall Street Falls As 30-Year Treasury Flirts With 5% Yield: What's Driving Markets Tuesday?

Cryptocurrency analyst Benjamin Cowen says Bitcoin's (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) soon-to-form golden cross could act as a local market peak rather than a signal of <a href="https://www.benzinga.com/money/bitcoin-price-prediction">a sustained rally</a>.



What Happened: In his update published on YouTube on May 19, Cowen <a href="https://www.youtube.com/watch?v=V3AHyJn1c9k">noted</a> "We're going to have a golden cross within the next few days," highlighting that the gap between the 50-day and 200-day SMAs has narrowed from $1,600 to just $600, signaling imminent crossover.



While 2023 and 2024 golden crosses led to immediate upside, earlier market cycles often saw a pattern where Bitcoin &#8220;rallied into the golden cross and then dumped right after it,&#8221; Cowen highlighted.



Cowen warns that earlier cycles—such as 2019 and 2020—show Bitcoin often rallies into a golden cross, only to sell off shortly afterward. "If Bitcoin fails to set a higher high around or after the golden cross, we could repeat 2024's pattern of lower highs and lower lows," Cowen said.



He added that Q3 is often a seasonally weak period for Bitcoin, making the timing of this golden cross particularly critical.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45503054/jack-dorsey-backs-renaming-bitcoins-smallest-unit-bits-calls-satoshi-confusing">Jack Dorsey Backs Renaming Bitcoin&#8217;s Smallest Unit &#8216;Bits,&#8217; Calls &#8216;Satoshi&#8217; Confusing</a>



What's Next: Cowen identifies $90,000 to $93,000 as critical support. This zone aligns with several technical markers &#8211; the 20-week simple moving average and 21-week exponential moving average (bull market support band) and the 50-day and 200-day SMAs.



For investors worried about downside risk, Cowen still favors Bitcoin over altcoins, noting BTC is currently trading just 2% below its all-time high, while altcoins remain 23–24% off their peaks. 



He emphasized that Bitcoin provides the best risk-reward profile: "Bitcoin gives you exposure to the upside while minimizing downside risk."



He also pointed out that Bitcoin dominance tends to rise during sideways or bearish conditions, seen clearly in summer consolidations of both 2023 and 2024 and expects that pattern to hold if the market enters another cooling phase.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45519909/bitcoin-vs-ethereum-try-btc-eth-why-smart-money-bets-on-both">Bitcoin Vs. Ethereum? Try BTC + ETH &#8211; Why Smart Money Bets On Both</a></li>
</ul>



Image: Shutterstock

Bitcoin Is About To Make A Golden Cross: What Happens Next?

The Magnificent Seven – minus Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which is due to report earnings this week – delivered a stunning earnings beat in the first quarter of 2025, surpassing timid Street expectations and sending a clear message: the foundations of <a href="https://www.benzinga.com/tech">Big Tech's dominance remain firm.</a>



The six tech giants that have reported so far delivered an average EPS growth of 28% year over year — nearly three times the 9% pace seen across the rest of the S&amp;P 500.



They didn't just grow, they blew past expectations. Consensus estimates were exceeded by 16%, marking the most significant earnings surprise since the second quarter of 2021, when the group beat forecasts by 27%.



<h3 class="wp-block-heading">Big Tech Just Delivered Its Best Quarter In Four Years</h3>



Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) were standouts. Alphabet delivered 48.7% EPS growth and beat expectations by nearly 39%. Amazon posted a 62.2% earnings jump, crushing its EPS estimate by over 16%.



Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) followed with 36.5% growth, while Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) delivered 17.7%. Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) showed more modest growth of 7.8% but still edged out its target.



The laggard was Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), whose EPS fell 40% year-over-year, missing the mark by over 34%. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td></td><td>Reported EPS (Past Quarter)</td><td>YoY % growth</td><td>Expected EPS</td><td>Surprise (%)</td></tr><tr><td>Apple Inc.</td><td>$1.65</td><td>+7.8%</td><td>$1.627</td><td>1.4%</td></tr><tr><td>Microsoft Corp.</td><td>$3.46</td><td>+17.7%</td><td>$3.22</td><td>7.4%</td></tr><tr><td>Amazon.com Inc.</td><td>$1.59</td><td>+62.2%</td><td>$1.36</td><td>16.4%</td></tr><tr><td>Meta Platforms Inc.</td><td>$6.43</td><td>+36.5%</td><td>$5.2</td><td>22.8%</td></tr><tr><td>Alphabet Inc.</td><td>$2.81</td><td>+48.7%</td><td>$2.02</td><td>38.8%</td></tr><tr><td>Tesla Inc.</td><td>$0.27</td><td>-40%</td><td>$0.41</td><td>-34.1%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">MAGS ETF Rebounds, But Remains Underwater in 2025</h3>



The Roundhill Magnificent Seven ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NYSE">MAGS</a>), a tracker of these tech titans, has surged 34% from its April 7 lows, outpacing the SPDR S&amp;P 500 ETF Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) 23% gain and Invesco QQQ Trust's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) 29% rally over the same period.



However, MAGS ETF remains 5% lower year-to-date. According to Dave Mazza, CEO at Roundhill Investments, this year&#8217;s drawdown reflected "increasing skepticism around valuations, sector concentration, and the growing impact of global trade disruptions." 



"These companies aren't speculative bets on future adoption," the expert noted. "They are the infrastructure of the real economy and, in some cases, staples within global consumers' lives."



Unlike previous cycles of concentrated market leadership, such as the Dot-Com boom, today&#8217;s leaders are not speculative growth stories but entrenched players in AI, cloud and automation.



Mazza highlighted that institutional flows into MAGS "remain relatively resilient," indicating long-term conviction hasn&#8217;t fully eroded.



All Eyes On Nvidia: The Final Piece Of The Puzzle



All eyes now turn to Nvidia, set to report earnings on May 28. 



Analysts expect EPS of $0.88, up 43% from the same quarter last year. Revenue estimates stand at $43.2 billion, which would represent a staggering 66% year-over-year increase. 



If those numbers hold, Nvidia could reinforce the Magnificent Seven's bullish narrative — and potentially lift the elite group of tech stocks into positive territory for the year.



Read now: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45513498/us-stock-futures-dip-after-sp-500s-six-day-streak-quick-recoveries-tend-to-see-stocks-rally-more-over-the-next-3-12-months-says-expert-citing-historical-data">US Stocks Likely To Open Lower After S&amp;P 500&#8217;s Six-Day Streak: &#8216;Quick Recoveries Tend To See Stocks Rally More Over The Next 3-12 Months,&#8217; Says Expert </a></li>
</ul>



Photo: Shutterstock

Specialty ETFs

MAGS

Magnificent 7 Stun The Street With Best Earnings Beat Since 2021

The term ‘short squeeze' entered retail investors' vocabulary in January 2021 when GameStop (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) went parabolic following a coordinated effort by traders on Reddit. Short sellers had attempted to profit from GameStop&#8217;s demise by borrowing shares from their broker and immediately selling on the open market.



The selling and the company&#8217;s lagging business would drive the price down, so the short sellers were hoping to buy the shares back later for less and pocket the difference. Instead, Reddit traders and a stronger-than-expected business pushed the price up. This sent short-sellers scrambling to buy shares back and close out their positions, causing the stock to go up even faster.



These &#8220;short squeezes&#8221; often peter out as quickly as they materialize, but profits can be exponential for those who find entry points before the catalyst.



Now that markets have recovered from April&#8217;s tariff drama, let&#8217;s take a look at some still-downbeat stocks primed for a short squeeze.



Here are five stocks with huge potential for a short squeeze run-up.



Each stock on this list has a minimum Benzinga Edge Growth Score of 96, short interest over 15% (meaning at least 15% of the float is sold short), and a potential catalyst on the horizon that could spark the fire.



<h2 class="wp-block-heading">Abercrombie and Fitch Co.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 99.21</li>



<li>Short Interest: 20.93%</li>



<li>Catalyst: Tariff reductions, technical breakout</li>
</ul>



Abercrombie and Fitch (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) made our list earlier as a stock to watch in March when the Relative Strength Index (RSI) dropped below 30, triggering an Oversold signal. But then Liberation Day happened, and stocks plunged, especially those exposed to Chinese manufacturing like ANF. However, now that the harshest tariffs have been rolled back and the odds of a recession are dropping, apparel stocks could be primed for a comeback, and Abercrombie is still flashing bullish technical signals. The stock has been down over 40% year-to-date (YTD) but up 13% in the last 30 days.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXejWYySmB76KdXbLy8Wl853VRDSFevBoRd5EuSYBht6xZ0Zj9F9Q-_tJHFu0G2iAsCCE-AfK5yhgYnf-akDyuWTue0Td7G2w-YRpqQjBddKmfcpeKO9YYzMZEkMi4B83ge2xu2UaA?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



The stock recently saw its 14-day exponential moving average (EMA) cross the 21-day EMA, indicating short-term bullish momentum. ANF's price has struggled to break above this level since President Trump announced his reciprocal tariffs, but now the breakout has occurred, and the RSI is still cooperating by staying below 70. ANF shares trade at just 7.5 times earnings, and the company still has some of the best margins in the apparel business. It also reports earnings on May 28, so a potential short-squeeze catalyst awaits.



<h2 class="wp-block-heading">Applied Digital Corp.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 98.02</li>



<li>Short Interest: 30.54%</li>



<li>Catalyst: Cryptocurrency bull market, technical breakout</li>
</ul>



Applied Digital (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) is an artificial intelligence "picks and shovels" play that focuses on hosting data centers and cloud services for AI, crypto mining, and high-performance computing firms. The company has a $1.27 billion market cap and has grown its annual revenue each year since it went public, but it has yet to reach profitability.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXddq6O1E7WnluYE4PqT4qiKYFlngbgG4yHQ1G_--mBJ0_I3V3tP0-NWseewbSTcspxErVjeZh6eK9V6rrqvQ5hKJYzBJVHj_7Ctlf3di85QFKX_cE9cZPxQocsc2rcVXJC-1wL6mg?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



Of course, we aren't worried about the path to profitability when hunting short squeezes, and APLD shares have some bullish technical signals to go along with over 30% short interest. The stock dipped following a revenue miss on the April 14 earnings report, but shares have been shrugging off the bad report and moving higher. Like ANF, the stock chart shows the 14-day EMA crossing the 21-day EMA, with the price hugging the 14-day EMA as support. Analysts are still bullish on the stock, with Needham, Cantor Fitzgerald, and HC Wainwright defending their Buy ratings following earnings. The average price target between these three is $9, indicating a potential upside of over 55%.



<h2 class="wp-block-heading">Airship AI Holdings Inc.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 97.70</li>



<li>Short Interest: 71.66%</li>



<li>Catalyst: Earnings</li>
</ul>



Airship AI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AISP#NASDAQ">AISP</a>) is a small-cap firm offering data management solutions to clients using AI platforms. AISP has some of the classic hallmarks of a short squeeze: a tiny market cap, a thinly traded float that was massively sold short, and a potential catalyst unfolding.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe3fT9KA-hbPQshVpStWY8CP7fKa-MsD1FWMxAt_hlfOs_TsHiD5gJOx--vC5F0ACC-P9eCYQgKrrpZQwooQHTrMIJMsxvuXh5W0M9T6WwK9PnZseecx1yBlbnmSYmQT6eKzxpe1Q?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



AISP has over 71% short interest, the highest on our list by more than 40%. When stocks are shorted to this level, there's usually a good reason, and a parabolic GameStop-esque rally isn't in the cards. However, AISP reported a 25% revenue surprise to the upside during its May 15 earnings report, sending the stock up 4% in after-hours trading. It was the third straight quarter the company had increased revenue, and it&#8217;s now trading above its 50-day and 200-day simple moving averages (SMAs) for the first time since February.



<h2 class="wp-block-heading">NuScale Power Corp.&nbsp;</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 96.87</li>



<li>Short Interest: 18.98%</li>



<li>Catalyst: Earnings, technical breakout</li>
</ul>



Nuclear power has been grabbing lots of headlines lately as Google <a href="https://www.benzinga.com/content/45335750/google-is-betting-big-on-nuclear-reactors-should-you">reached an agreement</a> to open three nuclear sites to power AI data centers. The AI energy boom will require alternative sources, and nuclear power is quickly becoming a revitalized choice. Companies like NuScale (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>), which operates the only approved small module reactors (SMRs), could benefit most from this change of heart.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdVzU12PzgkXxgIuWJjv6nKvtZT6vLI5BtMEKiN9bdhh_MTQyn7Fm88PZjpD348wAL6i-odpJTl-dhTILDqpY8ld8xOHk_q_c4i2B9w2ofx27Vm2kVcHpyPUeoibcxZIeaSKP3W?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



NuScale has a pair of catalysts working in its favor: its partnership with AI data center provider Standard Power and a blowout earnings report. On May 12, NuScale reported a top and bottom-line earnings beat, including a 289% revenue surprise to the upside. The company also beat analysts&#8217; EPS estimates by 26%, and the stock is now up 37% in the last five sessions. The breakout above the 50-day and 200-day SMAs indicates more potential upside ahead, especially if the 50-day heads back over the 200-day SMA and triggers a Golden Cross.



<h2 class="wp-block-heading">Reservoir Media Inc.</h2>



<ul class="wp-block-list">
<li>Benzinga Edge Growth Score: 98.07</li>



<li>Short Interest: 18.09%</li>



<li>Catalyst: Earnings, technical breakout</li>
</ul>



Reservoir Media  (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RSVR#NASDAQ">RSVR</a>) is a small-cap music media firm that records and publishes material from various independent artists. The company both signs new artists and acquires existing music catalogs. RSVR reports earnings on May 28, and technical indicators are signaling bullish activity under the surface.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc6HMYkcOP1aGE3xb3MQ1ji1v0peaF8vdNFXpFO4pdsRLkLhCFkY4FxJHQPUpoc7UDTaY8KhadzOexz49da-mick4EHPF_0RuFXqswEa1723EzSqvYksF_JDANodmFqXFryEMDVfQ?key=BlRnkVoXsDLlwLJ4ABsedQ" alt=""/></figure>



RSVR has been declining since February but recently began poking its head above the 14-day and 21-day EMAs, indicating a potential support level is forming. As of this writing, shares are trading above both EMAs with the RSI well below the oversold threshold of 70. With earnings coming up, RSVR is the type of small-cap stock with high short interest that could surge higher with an upside surprise. Analysts thinly cover the stock, but B. Riley Securities did imbue a Buy rating with a $12.50 price target back on Halloween, which is nearly 70% higher than current prices. 



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