Automakers: GM and Ford Both Rise
General Motors and Ford both traded higher after upgrades from Jefferies, which turned more bullish on the Detroit automakers.
For GM, Jefferies raised its price target to $99, up from $90. The move followed GM's latest quarterly report, and the main takeaway was growing confidence that 2027 could be a stronger year than investors expect. The reasons: healthier U.S. demand, stronger margins, better use of capital, and easing legacy cost pressures. GM is expected to hold its lead among U.S. automakers, helped by coming truck launches, better manufacturing efficiency, and higher-margin digital services. Jefferies lifted GM earnings estimates for 2026 through 2028 by about 6% and thinks GM could earn nearly $16 per share in 2027.
Ford was upgraded to a buy, with its price target raised to $17.50 from $14.50. Year to date, Ford has actually outperformed GM; on a year-over-year basis, GM is the stronger performer. The Ford call comes ahead of its earnings, while GM has already reported. Management could raise full-year guidance if current trends hold. Jefferies expects about $2.5 billion adjusted for the second quarter despite lower production volumes, helped by lower warranty expenses and tariff benefits. Ford has also become more disciplined about capital allocation and is tackling long-standing investor concerns.
Warner Brothers Discovery Downgraded
Seaport downgraded Warner Brothers Discovery to neutral from buy. The trigger was the paused $110 billion merger with Paramount, but the call goes beyond the delay. The deal timeline has been pushed back to as late as June 1, 2027, as it works through legal challenges from the Writers Guild and several state attorneys general. A longer timeline means more uncertainty and delays any integration benefits or cost savings from the merger.
Seaport also cut its financial forecasts after "Supergirl" underperformed at the box office, raising fresh concerns about the profitability of the company's film slate. Advertising is another headwind: with the World Cup and NBA playoffs already over, advertiser demand is expected to be soft, leaving fewer catalysts ahead. The concern is both timing and fundamentals. Paramount will also owe a fee to Warner Brothers Discovery shareholders for the pause.
CXMT's Blockbuster China Debut
Chang Shin Memory Technology (CXMT) surged more than 450% in its IPO debut in China, making it one of China's most valuable publicly traded companies. It is seen as China's answer in the AI chip race and its rival to memory chip makers like Micron, South Korea's SK Hynix, and Samsung.
As AI models grow larger and more powerful, they demand more chips, which has driven momentum around Micron, SK Hynix, and Samsung. CXMT is China's move to stake its claim as a major player and to cut China's reliance on foreign chip suppliers. Investors piled into CXMT much as they piled into Nvidia in the U.S.
