A little late this morning as was trying to get to the bottom of this below, which turned out be much ado about nothing.
We all make mistakes - feel for Jefferies guy who initially sent out the email. If you want exact comments heres the link to the META preso … starts at around 9:30 minute mark.
Moving on, QQQs -1.15% for a not so hot start to liberation day. BTC -40bps. China flattish. Yields ticking lower slightly.
Seems like bogey for Tariffs at around 15-20%. We’ll get the news at 4pm est. Lets get to it…
RBLX: Morgan Stanley bullish On RBLX’s GOOGL announcement
Morgan Stanley highlights RBLX's Q2 launch of rewarded video ads alongside key partnerships with GOOGL and others as significant developments in capturing the $1.2bn ad revenue opportunity. The firm is incrementally bullish for three reasons: 1) Rewarded video is the most effective and scalable video game ad unit, offering deeper engagement and clearer impressions than billboards or portals; 2) Key tech partnerships with GOOGL, DV, IAS and others provide the fastest path to market using proven technology; and 3) Additional innovative ad units (homepage takeovers, sponsored experiences) remain in development. Morgan Stanley notes RBLX's 85mm DAUs spend 2.5+ hours daily on the platform but convert to buyers at just ~1%, presenting a substantial monetization opportunity. The firm maintains an Overweight rating with a $75 price target.
Glass half empty take (below)
Roblox’s Revenue Grab
You know what kids love? Videogames. And you know what they don’t really love—at least if the small children in my life are any barometer? Advertisements.
Yet Roblox, the eponymous company behind one of the most popular videogame platforms for kids, is pinning at least a portion of its hopes for more revenue growth on…advertisements.
Roblox today said it would shortly debut a new form of video ads it promises will produce an “immersive” experience. Huh? Well, Bloomberg describes the move as a bid to “encourage player engagement,” offering in-game rewards for watching the clips.
C’mon! When have ads ever encouraged someone to engage more deeply with a game? Sure, some games do run off advertising revenue, but that’s mostly the cheapie mobile games market, and many people perceive those brands as largely digital schlock. Surely that’s not what Roblox aspires to become.
AVGO: Daiwa upgrades Broadcom to Outperform on 'four strong drivers'
Daiwa upgrades Broadcom to Buy from Outperform with a $225 price target (down from $275), calling the stock "attractive" after falling 33% from December 2024 highs. Analyst Louis Miscioscia identifies "four strong drivers" for 2025 and beyond: ASIC processors, networking, continued growth from the VMware acquisition, and a potential rebound in the core semiconductor business after two weak years. The stock is trading up 37 cents to $168.89 in premarket activity, with Daiwa's positive outlook suggesting significant upside potential from current levels.
MU/Memory: local reports suggest Samsung is now targeting a successful qualification of its 12-hi HBM3e from Nvidia as early as May – TrendForce
Memory: NAND flash (128Gb 16Gx8 MLC) average contract prices are +9.61% MoM to $2.51, representing the largest increase in 8 years – Hankyung
China Restricts Companies From Investing in US as Tensions Rise
Keep reading with a 7-day free trial
Subscribe to TMT Breakout to keep reading this post and get 7 days of free access to the full post archives.