Japan's Softbank Group Corp. (OTC: SFTBY) is reportedly in talks with major U.S. investment banks regarding an initial public offering for its payments platform, PayPay.
The move comes at a time when U.S. President Donald Trump’s stringent immigration policies have hurt the growth of remittance transactions in North America.
Shares of cosmetics company e.l.f. Beauty (NYSE:ELF)
jumped 3.9% in the morning session after Deutsche Bank upgraded the stock to a 'Buy' rating from 'Hold'. The upgrade came after the stock dropped 9.5% on Thursday, a price level Deutsche Bank called "an attractive entry point with compelling 20%+ potential upside," while maintaining its $121 price target. The prior day's decline followed the company's first-quarter earnings report. While e.l.f. Beauty beat earnings expectations, with revenue growing 9% year-over-year to $353.7 million, investors were concerned after executives pulled the full-year forecast due to uncertainty over Chinese tariffs. The upgrade suggests a belief in the company's fundamentals despite the market's recent reservations.
Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 3.7% in the morning session after Morgan Stanley upgraded its rating on the stock to 'overweight' from a previous dropped coverage and set a price target of $410. The upgrade was part of a wave of positive developments for the electric vehicle maker. CEO Elon Musk also announced that the company is testing a new Full Self-Driving (FSD) model with significant improvements, which could be released by the end of September.
Shares of construction equipment company Caterpillar (NYSE:CAT)
fell 3% in the afternoon session after an analyst at Morgan Stanley downgraded the stock to "Underweight" from "Equal-weight," citing concerns over the company's valuation and weakening fundamentals. The analyst warned the stock was "priced for perfection" amid deteriorating pricing trends and margin pressures, and cut the price target to $350. This downgrade followed the company's recent second-quarter earnings report, which missed analyst expectations. In that report, Caterpillar revealed its earnings per share fell 21% from the previous year, hurt by lower revenues and higher costs. The company's operating profit margin also dropped significantly compared to the same period last year.
Sumitomo Mitsui Banking Corp. has launched an AI CEO powered by ChatGPT to provide guidance to employees. Similar moves by other banks showcase the growing trend of AI in the financial industry.
Shares of personal care company Edgewell Personal Care (NYSE:EPC)
jumped 8.3% in the afternoon session after Morgan Stanley upgraded the stock to Equalweight, suggesting the shares may have bottomed out after a steep post-earnings decline. The upgrade followed a steep plunge in the stock's price after the company reported disappointing third-quarter results and lowered its full-year guidance. Edgewell's sales and earnings per share both missed analyst expectations, which the company blamed on a weak sun care season. Morgan Stanley noted that the stock's valuation became compressed after its significant drop. Separately, analysts at Canaccord Genuity maintained a Buy rating, and they believed the stock was oversold, even as they reduced their price target.
Shares of online education Stride (NYSE:LRN)
jumped 16.7% in the afternoon session after the company reported robust fourth-quarter and full-year 2025 financial results that significantly surpassed analyst expectations. For its fourth quarter, revenue climbed 22% to $653.6 million, beating forecasts, while adjusted earnings per share of $2.29 soared past the $1.76 analysts predicted. The strong quarter concluded a record fiscal year, with total revenue growing 18% to $2.4 billion. This growth stemmed from a sharp increase in enrollments, particularly in its Career Learning segment, which saw revenue jump 34.6%. Following the impressive report, Morgan Stanley raised its price target on the stock.
Shares of discount grocery store chain Grocery Outlet (NASDAQ:GO)
jumped 38.9% in the afternoon session after the company reported second-quarter earnings that surpassed analyst expectations and raised its full-year profit forecast. The discount grocer posted an adjusted profit of $0.23 per share, which outpaced projections. In response to the strong quarter, management lifted its full-year adjusted earnings guidance to a range of $0.75 to $0.80 per share, above its prior outlook and Wall Street's estimates. The company attributed the better-than-expected performance to improved operational efficiency and increased comparable store sales. Following the results, Morgan Stanley upgraded the stock to Equalweight from Underweight and increased its price target, noting that the company's fundamentals appeared to be turning around.
Major Wall Street firms, including Morgan Stanley (NYSE: MS), Deutsche Bank AG (NYSE: DB), and Evercore ISI (NYSE: EVR), have issued cautionary advisories to their clients, signaling a potential stock market pullback of 10-15% in the third quarter of 2025. These warnings come on the heels of a robust rally
Shares of electricity generation and hydrogen production company Bloom Energy (NYSE:BE) jumped 3.6% in the afternoon session after Mizuho raised its price target on the stock, citing strong demand from data centers. The firm increased its target to $48 from $31, marking the highest forecast among analysts. Mizuho's positive view stemmed from Bloom's plans to accelerate manufacturing to meet the growing power needs of data centers. This analyst upgrade followed the company's strong second-quarter results, where it reported earnings per share of $0.10, significantly beating analyst forecasts. Revenue also grew 19.5% year-over-year to $401.2 million and exceeded expectations. The quarter also showed a turn to operating profit, a reversal from a loss in the previous year. The bullish sentiment echoed across Wall Street, as Morgan Stanley also recently lifted its price target.
Eaton Vance introduces actively managed EVMO ETF, providing diversified exposure to global securitized markets. With a 0.45% expense ratio, it aims to be a higher quality substitute for corporate credit. This launch reflects the growing preference for active fixed-income strategies and transparent ETF designs in the market.
