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Bumble shares rallied more than 26% on Wednesday after the dating app company revealed in a securities filing that it intends to slash 30% of its workforce, or about 240 roles.
The layoffs will result in $13 million to $18 million in charges for the company hitting in the third and fourth quarters of this year. Management estimates that the reductions will help the company save $40 million annually.
A Bumble spokesperson said in a statement to CNBC that the layoffs were “not made lightly.”
“Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth,” they wrote.
Bumble said the cuts are part of a reconfiguration of its “operating structure to optimize execution on its strategic priorities.” The company plans to invest savings into new product and technology development.
Shares of the dating app company have plunged since their debut on the public markets in 2021. Its market value has plummeted from $7.7 billion to about $538 million as of Tuesday’s close.
Founder Whitney Wolfe Herd, who stepped down as CEO at the beginning of 2024, returned to the role earlier this year.
Along with the job cuts, Bumble updated its previously announced forecast for the current quarter.
The company now expects revenue to range between $244 million and $249 million, and adjusted earnings before interest, taxes, depreciation and amortization between $88 million and $93 million.
That’s up from the $235 million to $243 million in revenue and $79 million to $84 million in adjusted EBITDA forecast with Bumble’s first-quarter results last month.
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The Federal Reserve on Wednesday proposed easing a key capital rule that banks say has limited their ability to operate, drawing dissent from at least two officials who say the move could undermine important safeguards.
Known as the enhanced supplementary leverage ratio, the measure regulates the quantity and quality of capital banks should be keeping on their balance sheets. The rule emanated from a post-financial crisis effort to ensure the stability of the nation’s largest banks.
However, in recent years as bank reserves have built and concerns have grown over Treasury market liquidity, Wall Street executives and Fed officials have pushed to roll back the requirements. The regulations targeted treat all capital the same.
“This stark increase in the amount of relatively safe and low-risk assets on bank balance sheets over the past decade or so has resulted in the leverage ratio becoming more binding,” Fed Chair Jerome Powell said in a statement. “Based on this experience, it is prudent for us to reconsider our original approach.”
The Fed board put the proposal open for a 60-day public comment window.
In its draft form, the measure would call for reducing the top-tier capital big banks must hold by 1.4%, or some $13 billion, for holding companies. Subsidiaries would see a larger drop, of $210 billion, which would still be held by the parent bank. The standard applies the same rules to so-called globally systemic important banks as well as their subsidiaries.
The rule would lower capital requirements to range of 3.5% to 4.5% from the current 5%, with subsidiaries put in the same range from a previous level of 6%.
Current Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller released statements supporting the changes.
“The proposal will help to build resilience in U.S. Treasury markets, reducing the likelihood of market dysfunction and the need for the Federal Reserve to intervene in a future stress event,” Bowman stated. “We should be proactive in addressing the unintended consequences of bank regulation, including the bindingness of the eSLR, while ensuring the framework continues to promote safety, soundness, and financial stability.”
On the whole, the plan seeks to loosen up banks to take on more lower-risk inventory such as Treasurys, which are now treated essentially the same as high-yield bonds for capital purposes. Fed regulators essentially are looking for the capital requirements to serve as a safety net rather than a bind on activity.
However, Governors Adriana Kugler and Michael Barr, the former vice chair of supervision, said they would oppose the move.
“Even if some further Treasury market intermediation were to occur in normal times, this proposal is unlikely to help in times of stress,” Barr said in a separate statement. “In short, firms will likely use the proposal to distribute capital to shareholders and engage in the highest return activities available to them, rather than to meaningfully increase Treasury intermediation.”
The leverage ratio has come under criticism for essentially penalizing banks for holding Treasurys. Official documents released Wednesday say the new regulations align with so-called Basel standards, which set standards for banks globally.
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AeroVironment shares jumped 29% on Wednesday’s trading after the company announced strong results after market close on Tuesday that beat market expectations.
Strong earnings
The drone maker reported a $1.61 per share adjusted earnings against $1.39 per share, which was the market expectation.
Its revenue was at $275 million against $242 million expectation.
AeroVironment, a key player in the defense technology sector, revealed a record fiscal year revenue of $820.6 million.
This figure marks a significant 14% increase compared to the previous fiscal period, underscoring the company’s growth trajectory.
In its fourth quarter, AeroVironment posted a net income of $16.66 million, translating to 59 cents per share.
This represents a substantial improvement over the same period last year, when the company reported a net income of $6.05 million, or 22 cents per share.
Value-adding acquisitions
Adding to its strategic advancements, AeroVironment completed the acquisition of defense technology firm BlueHalo on May 1st, in a transaction valued at $4.1 billion.
Wahid Nawabi, CEO of AeroVironment, commented on the acquisition, stating, “Our acquisition of BlueHalo further advances our leadership position within the defense-technology sector by adding a complementary portfolio of innovative products and capabilities aligned to our customers’ highest priorities.”
This move is expected to bolster AeroVironment’s offerings and reinforce its standing in the defense market.
As of April 30, 2025, the company’s funded backlog reached $726.6 million, marking a substantial increase from the $400.2 million reported on April 30, 2024.
Its bookings for the fiscal year ending April 30, 2025, totaled $1.2 billion, reflecting strong inbound business.
Addressing prior concerns regarding a decline in unfunded backlog, the company clarified that this shift was primarily attributable to changes in U.S. Army contracting mechanisms, rather than a fundamental reduction in demand for its products.
Forecast also adds to optimism
The company anticipates revenue for fiscal year 2026 to range between $1.9 billion and $2.0 billion and adjusted earnings per share (EPS) in the range of $2.80 to $3.00. This projection notably incorporates the expected financial contributions from the BlueHalo acquisition.
The company’s projections for FY26 exceeded current consensus expectations.
Analysts at Stifel have maintained their “buy” rating on AeroVironment, along with a $240 price target, following a standout quarter for the defense technology firm. The period was notably propelled by a significant surge in Loitering Munitions (LMS) revenue, which escalated by 86% year-over-year to reach $138 million.
This figure substantially surpassed both Stifel’s forecast of $95 million and the broader consensus estimate of $115 million.
Stifel also highlighted the quarter’s adjusted EBITDA of $62 million, noting it as one of the highest in the company’s operational history.
AeroVironment’s shares surged 29.34% to an intraday high of $250. At the time of writing, the stock gave up some gains and was trading around $237.
The stock has rallied 52% in the year so far.
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FedEx Corp (NYSE: FDX) opened about 5.0% down on Wednesday after reporting a market-beating Q4 but offering earnings guidance that fell slightly short of experts’ forecast.
However, the price action this morning may be focusing a bit too hard on the outlook and ignoring structural improvements, long-term strategy, and hidden value catalysts – which could drive FDX shares up in the back half of 2025.
Here are my top 3 reasons for buying FedEx stock on the post-earnings decline today.
DRIVE initiative remains a tailwind for FedEx stock
DRIVE – the $4 billion cost-cutting initiative that FedEx first announced in 2023 is much more than just a buzzword.
It’s actually a structural overhaul that’s already bearing fruit.
According to the shipping giant, it achieved its full savings target by the end of fiscal 2025, which helped expand its adjusted operating margins and boost EPS to a much better-than-expected $6.07 in its recently concluded quarter.
More importantly, commitment to lowering costs isn’t a one-and-done effort for FDX.
In fact, it’s targeting another $1.0 billion in expense reductions in fiscal 2026, with CEO Raj Subramaniam emphasizing that “our transformation initiatives … will create meaningful long-term value.”
FedEx is also reducing capital intensity as evidenced in a 22% year-on-year decline in its FY25 capex, which marked the company’s lowest in its history.
Together, these moves position the NYSE-listed firm to significantly better free cash flow (FCF) and improve return on invested capital – two metrics that long-term FedEx stock investors should love.
Freight spin-off to unlock further upside in FDX shares
In late 2024, the transportation company announced plans to spin off its freight division within 18 months, which will likely prove a strategic masterstroke over time.
Freight is the largest less-than-truckload (LTL) carrier in North America, and analysts estimate its standalone valuation could range between $30 billion and $35 billion.
That’s a massive chunk of value that’s currently buried within FedEx’s consolidated structure.
The spin-off will allow both entities to pursue tailored strategies, optimize capital allocation, and sharpen operational focus.
FedEx Freight will retain the brand and maintain commercial synergies with the parent company, ensuring continuity for customers while unlocking investor value.
Historically, spin-offs tend to outperform broader markets in the first 12 – 24 months, which makes up for another reason to stick with FDX shares at current levels.
Why else am I buying FedEx stock today?
Finally, FedEx’s core business is showing signs of resilience even amidst macro headwinds.
US daily package volume came in up 6% on a year-over-year basis, while ground home delivery volume was up 10% in Q4.
That’s a strong signal of underlying demand, especially as e-commerce continues to expand.
Moreover, FDX’s global footprint – spanning over 220 countries – gives it leeway to adapt to shifting trade dynamics.
While the firm flagged a $170 million Q1 headwind from international exports, particularly due to US-China trade tensions, it’s already adjusting its network and fleet to match demand.
Retiring older aircraft and modernizing operations will help preserve margins even in a volatile environment, contributing further to unlocking upside in FedEx stock in the second half of 2025.
Note that a 2.60% dividend yield makes up for another great reason to have FDX in your portfolio.
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Brazil’s fiscal picture is rapidly deteriorating, according to a stern assessment from the Independent Fiscal Institution (IFI), a technical advisory organisation affiliated with the Federal Senate.
The IFI’s 101st Fiscal Monitoring Report (RAF) indicates that if the current trend of public finances continues, the fiscal targets established for 2026 will become “unattainable.”
The report highlights the country’s deteriorating budgetary situation, saying that structural fiscal change is “urgently” required.
Without it, Brazil will suffer expanding public debt, increased fiscal pressures, and a decline in the government’s ability to invest.
According to the IFI, urgent measures are required to protect the country’s fiscal framework and prevent debt acceleration.
Primary deficit and spending trends fuel debt surge
Despite the R$20.7 billion in budget cuts announced by the government for 2025, the primary deficit is still expected to reach R$83.1 billion.
It will directly add the whole of this shortfall to the gross public debt, aggravating an already dilapidated fiscal position.
For all the adjustments, the report then predicts a sharp increase in gross debt in Brazil.
Debt is set to increase from 77.6% of GDP in 2025 to 100% by 2030, and 124.9% by 2035.
Such projections amplify the alienation of fiscal policy from macroeconomic viability.
However, the report identifies a particularly worrying trend for primary expenditures, which are expected to increase from 18.9% to 20.4% of GDP between now and 2035.
Meanwhile, revenues are expected to stagnate or decrease even more, worsening the gap and putting additional pressure on the fiscal structure.
The government struggles to contain the budget deficit
According to the IFI, in order to reach halfway to the 2025 fiscal target, an extra R$30.9 billion of budget contingency would be needed, which would be inconsistent with the current government’s fiscal plan.
The institution warns that even with this extra effort, the target would only be met “to the limit,” and only by utilising the latitude of tolerance embedded into the fiscal framework.
However, this would not be sufficient to stop the increase in debt levels.
Call for national dialogue and structured reform
The IFI research indicates that the current fiscal system is unsustainable and calls into question the long-term viability of the country’s economic structure.
“The projections reveal the unsustainability of the current fiscal regime, calling into question the survival of the current fiscal framework,” according to the study.
To address the widening economic imbalance, the institution calls for a comprehensive national conversation that includes the National Congress, the Executive Branch, and civil society.
According to the IFI, such participation is critical for achieving consensus on a structural change capable of restoring fiscal balance in the medium to long term.
Without such reforms, the combination of rising spending and stagnating revenues is expected to force Brazil into a more restrictive fiscal climate.
In this scenario, not only would medium-term goals become unattainable, but public debt would continue to rise, eroding investor confidence and the government’s ability to respond to future economic crises.
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Coinbase shares jumped on Wednesday after brokerage Bernstein raised its price target on the stock to $510, the highest among Wall Street analysts, pointing to the company’s unmatched breadth across trading, custody, stablecoins, and blockchain infrastructure.
The shares were up by 5.8% at $365, the highest since 2021, after rising 12% in the previous session.
However, it later gave up some of the gains and was up by 2% by 11 am New York time.
In a note led by analyst Gautam Chhugani, Bernstein reiterated its Outperform rating and said Coinbase is “the most misunderstood company in our crypto coverage universe.”
The new target represents a potential upside of nearly 48% from current levels.
“It is the only crypto company in the S&P 500, dominates US crypto trading market, runs the largest stablecoin business among exchanges, dominates institutional crypto, acquired the largest global crypto options exchange, and runs the largest and fastest chain Base on Ethereum,” Bernstein said.
‘Amazon of crypto’: growth levers span far beyond trading
Bernstein’s note detailed how Coinbase’s evolution from a retail exchange to what it called a “crypto universal bank” is being underestimated by investors.
“Despite multiple growth levers, consensus remains bearish on the largest Crypto universal bank,” analysts wrote.
While trading remains a core revenue driver, Coinbase’s non-trading income — including stablecoin interest, institutional custody, and staking — made up 42% of total revenue in 2024, up sharply from 14% in 2020.
“COIN has also added several fast-growing businesses such as institutional custody, Base blockchain services, and Prime lending desk, thus, emerging as the ‘Amazon of crypto financial services’, offering crypto financial services beyond simple trading,” the analysts added.
Bernstein now forecasts Coinbase will generate $9.5 billion in revenue in 2025, climbing to $12.7 billion in 2026 and reaching $14.1 billion by 2027.
The projected growth is fuelled by rising activity in both trading—especially in perpetual futures—and expanding non-trading segments such as staking and stablecoin-related services.
Bernstein also noted the company’s expansion into crypto derivatives, particularly with its $2.9 billion acquisition of Deribit, the world’s largest crypto options exchange.
That deal, the largest in the sector’s history, positions Coinbase to compete head-on with Binance in global derivatives trading.
Legislative tailwinds and strong fundamentals add to the bull case
Last week, Coinbase’s shares rallied, fuelled by the Senate’s passage of the GENIUS Act, a bill that establishes federal oversight for US dollar-pegged stablecoins.
Analysts expect the legislation, along with the upcoming CLARITY Act, to benefit Coinbase significantly as a regulatory-compliant market leader.
Stablecoins have become Coinbase’s biggest revenue driver after trading, with stablecoin-related income surging 50% year-over-year in the first quarter.
CEO Brian Armstrong has emphasized the importance of stablecoins as a pillar of long-term growth, even saying he hopes to see USDC surpass Tether as the leading global stablecoin.
Bernstein raised its 2027 earnings estimate for Coinbase by 28% to $20.38 per share, attributing the revision to stronger operating leverage and expanding product lines.
It now values the stock at 25 times projected 2027 earnings, up from its prior 21x multiple.
Despite some analyst concerns around competitive pressures, Coinbase’s spot trading share rose to 7.8% in Q1, up from 7.2%, and its retail take rate remained steady at 140 basis points, suggesting customer trust outweighs lower pricing from rivals.
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Greece is once again among the top NATO defence spenders, with fresh data showing the Mediterranean nation allocated 3.1% of its GDP to military expenditure in 2024.
Only four NATO members spent a greater share of their national output on defence: the US, Poland, Latvia, and Estonia.
While these figures reflect broader regional anxieties over Russia’s actions in Ukraine, Greece’s motivations are more complex — rooted in a long-standing and unresolved rivalry with Turkey.
The country’s outsized defence budget plays a crucial geopolitical role, both in securing its regional interests and in boosting its influence within NATO.
As the alliance looks to raise its target to 5% of GDP, Greece finds itself in a unique position: already near the top, yet struggling to translate spending into full-spectrum military readiness.
Turkey rivalry drives high defence allocation
Greece’s persistent tensions with Turkey are central to its sustained military investment.
The two nations, despite both being NATO allies, have a legacy of conflicts including territorial disputes over Cyprus, maritime boundaries, and the sovereignty of numerous Aegean islands.
These islands — many of which lie just a few kilometres off the Turkish coast — are heavily garrisoned by Greek forces.
According to NATO estimates, these strategic deployments significantly inflate Greece’s defence bill.
Each island requires its own troop presence, logistical support, and military infrastructure.
The resulting cost is high, but Athens views it as necessary to preserve sovereignty and prepare for any potential regional threat.
Greece’s defence posture is further influenced by instability in nearby regions such as the Middle East and North Africa, as well as Turkey’s recent assertiveness in the Eastern Mediterranean.
Analysts note that Athens is positioning itself to remain militarily responsive across a range of possible scenarios.
Heavy foreign procurement limits self-reliance
Despite the large allocation of funds, Greece’s defence sector faces structural limitations.
Much of the recent spending has been directed abroad — primarily to purchase advanced weapons systems from countries like the US and France.
This strategy has helped improve bilateral ties, but has also reinforced Greece’s dependence on foreign suppliers.
Efforts to build a robust domestic arms industry have lagged behind.
As a result, key gaps remain in Greece’s ability to produce and maintain critical defence technologies on its own.
Experts say developing an indigenous industrial base is now a priority for Athens if it wants to sustain its military capabilities and reduce long-term costs.
The country’s land forces also face modernisation challenges.
Greece maintains a large fleet of tanks, but many are dated and operated in small, scattered units across the islands.
Training limitations and logistical hurdles further constrain the effectiveness of these assets in a coordinated military response.
NATO aims for 5% target, but Greece may hold steady
NATO members are currently reviewing a proposal to raise their collective defence spending target to 5% of GDP.
The breakdown includes 3.5% for traditional military purposes and 1.5% for infrastructure and cybersecurity.
While this marks a significant jump for most countries, Greece is already spending over 3% and is closer to the target than most of its peers.
Still, analysts caution that Athens may not drastically increase its defence budget in response to the proposed target.
The primary security threats facing Greece are distinct from those driving spending increases in countries closer to Russia.
Greece’s military strategy remains focused on maintaining regional deterrence rather than preparing for large-scale conventional conflict.
Strategic spending enhances influence within NATO
Greece’s high defence spending does offer one clear benefit: greater diplomatic leverage within NATO.
By exceeding the alliance’s long-standing 2% benchmark, Athens strengthens its position in internal discussions and deepens cooperation with major suppliers like the US and France.
Officials suggest that this enhanced status helps Greece secure more favourable defence arrangements and reinforce its security guarantees.
As NATO expands and adapts to new threats, Greece is likely to remain an important, if regionally focused, member of the alliance’s evolving military landscape.
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A more than 10% pullback in Chewy Inc (NYSE: CHWY) this month is an opportunity to load up on a quality name at a discount, says Nathan Feather – a senior Morgan Stanley analyst.
Feather added CHWY shares to his list of “top picks” this morning, saying his bull case could see them hit $75 over the next 12 months – indicating potential upside of nearly 75% from here.
That said, Chewy stock remains rather unattractive for income investors as it doesn’t currently pay a dividend.
What could help Chewy stock hit $75 within a year?
Chewy has recently penetrated the clinical veterinarian market, which Feather believes could prove a meaningful tailwind for the online retailer.
Exposure to this multi-billion-dollar market adds “another growth vector to an already compelling customer growth and margin story,” he told clients in a research note today.
More importantly, the analyst said there’s a “high likelihood” that CHWY will succeed in its latest venture (clinics). Note that veterinarian clinics currently represent nearly a quarter of the overall pet market.
Morgan Stanley’s uber bullish call on Chewy shares is particularly significant since the retail stock is already up some 40% versus its year-to-date low in early April.
CHWY shares to benefit from firm’s success in vet clinics
Chewy plans on expanding its “Vet Care” segment further this year, after launching its very first veterinary clinic in South Florida in 2024.
These clinics offer services like routine checkups, urgent care, and surgery, aiming to create a more integrated and tech-enabled veterinary experience.
According to the Morgan Stanley expert, every 100 clinics that CHWY launches will add as much as $800 million to its enterprise value. Plus, the company’s clinics stand to earn up to 5 times return on investment as well, he noted.
Feather recommends sticking with Chewy stock in 2025 primarily because the firm’s health-tech capabilities and its customer affinity could see it dominate the vet clinic market over time.
Chewy continues to report better-than-expected financials
Morgan Stanley expects Chewy to tap into mergers & acquisitions (M&A) to grow its clinics unit.
Financial strength was among the other reasons the investment firm cited for its constructive view on CHWY shares on Wednesday.
In its fiscal Q1, the online retailer of pet food and pet-related products earned 35 cents (adjusted) on a per-share basis and $3.12 billion in revenue. Analysts, in comparison, had called for 17 cents only on $3.08 billion in revenue.
At the time, Chewy maintained its full-year sales guidance at $12.3 billion to $12.45 billion.
While not nearly as bullish as Nathan Feather, other Wall Street analysts are also keeping positive on Chewy stock this year, as evidenced in their consensus “overweight” rating.
The mean target on CHWY shares currently stands at nearly $46, indicating potential upside of another 9.0% from here.
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Jefferies senior analyst Sheila Kahyaoglu says she’s surprised to see defense stocks keeping calm in the wake of geopolitical escalation in the Middle East.
Tehran attacked US airbases in Qatar in response to the latter’s strike on its nuclear facilities over the weekend.
And while President Donald Trump said he’s brokered a ceasefire following these developments, both Israel and Iran claimed their adversary had violated it on Tuesday.
Still, major US defense stocks like RTX, Lockheed, and Northrop are down versus last Tuesday at the time of writing.
Why defense stocks still remain worth owning
According to Jefferies’ Kahyaoglu, muted response from the US defense stocks despite the Israel-Iran conflict does not warrant turning your back on them just yet.
Why? Because Trump’s controversial tax-and-spending bill proposes increasing defence spending by a whopping $150 billion, or about 13% on a year-over-year basis.
If Congress approves that proposal and about half of it goes to the US President’s “Golden Dome” project (perhaps in fiscal 2026), it could prove a meaningful tailwind for existing defense firms given he (Trump) wants to deploy it within three years, the analyst told clients in her latest report.
While the likes of RTX, LMT, and NOC are more obvious buys against that backdrop, Kahyaoglu is bullish on a few under-the-radar defense stocks for the next 12 months as well.
These include Elbit and Kratos. Let’s take a closer look at what each of these two has in store for investors in the back half of 2025.
Elbit Systems Ltd (NASDAQ: ESLT)
A $150 billion boost in US defence spending – especially with allocations for missile defence, munitions, and advanced technologies – could significantly benefit Elbit stock.
As a key supplier of precision-guided weapons, electronic warfare systems, and border surveillance tech, ESLT is well-positioned to win new contracts or expand existing US partnerships.
Increased funding for programs like the “Golden Dome” missile shield may also create demand for Elbit’s battle-proven air defence solutions.
With geopolitical tensions on the rise and US allies seeking interoperable systems, the Israeli firm’s US exposure and NATO-friendly portfolio could drive investor optimism and revenue upside.
Kratos Defense & Security Solutions Inc (NASDAQ: KTOS)
Kratos shares could be a key beneficiary of Trump’s $150 billion defence boost as well, especially with $13.5 billion earmarked for accelerating production from defence startups and nontraditional firms.
KTOS specialises in unmanned systems, hypersonics, and satellite technology – areas aligned with the bill’s priorities, including AI-powered defence and autonomous platforms.
With a strong book-to-bill ratio and growing backlog, Kratos is strongly positioned to secure new contracts and scale production under the Trump administration.
The expected increase in defense spending enhances visibility into its future demand, potentially driving revenue growth, margin expansion, and eventually investor confidence in KTOS shares in 2025 and beyond.
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