Investment banking firm Loop Capital maintained its bullish stance on Meta platforms with a target price of $888.

This indicates a 38% upside from Thursday’s closing price.

AI performance 

Loop Capital’s analysts said that Facebook’s parent company’s artificial intelligence-driven performance has made up for the drop in spending from Chinese advertisers. 

“We continue to see Meta as the best non-hardware example of tangible, right-now beneficiary of AI and think the stock will outperform the ‘mag-7’ peer group this year,” Loop Capital Analyst Rob Sanderson said. 

The analyst said the stock will be a beneficiary of non-hardware example of being a beneficiary of AI.

The company increased its capital expenditure outlook for 2025 to invest more in data centres for AI. Meta plans to invest $72 billion in capital expenditure this year. 

While the analyst noted that current core AI investments are constrained by capacity, new data centre AI capacity is coming online. 

A behemoth concern

This positive note comes after a Wall Street Journal report said that Meta is delaying the rollout of its “Behemoth” large language model. 

The Behemoth model was first slated to come out in April 2025 but was later pushed to June and now to fall or later, the report said. 

According to the report, Meta’s engineers were concerned that Behemoth’s performance couldn’t match what the company’s public statements. 

Meta had touted that Behemoth outperformed similar AI models of OpenAI, Google and Anthropic in some tests. 

After the report came, Meta’s stock fell over 2% on Thursday. 

FTC monopoly case

Meta recently asked a federal judge to drop the U.S. Federal Trade Commission’s (FTC) case against the company. 

The company argued that the FTC failed to prove the antitrust case. 

FTC had accused Meta of dominating the social media market by buying out rival companies such as Instagram and WhatsApp to buy out the competition.

The trial started in April, and the FTC is trying to show Meta was trying to buy out the competition a decade ago by pointing out emails of Meta CEO Mark Zuckerberg worrying about Instagram and WhatsApp’s growth. 

If the judge doesn’t drop the case, the trial may run into June as Meta is now presenting its own evidence against the charges. 

Meta stock continues to shine

Meta stock has gained over 7% in the year so far, emerging as the second-best-performing stock among the magnificent seven cohort of stocks in that period. 

Microsoft is the best performing stock with a 8% gain and Apple has been the worst performing among the group with a 13% decline. 

Meta’s shares had gained over 28% in the last month as investors cheered strong Q1 results. 

The company had posted a 16% increase in revenue to $42.31 billion against an expected $41.40 billion.

 Its net income surged 35% to $16.64 billion. 

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Archer Aviation Inc (NYSE: ACHR) has been named the official air taxi provider for the LA28 Olympics. Shares of the eVTOL company are up 10% at the time of writing.  

ACHR’s electric vertical take-off and landing vehicles are now slated to be used in several ways, including transportation of VIP guests, fans, and stakeholders at the LA28 Games, a press release confirmed on Friday.

Including today’s gain, Archer Aviation stock is up more than 100% versus its year-to-date low.

Archer Aviation stock has a trillion-dollar opportunity

Archer Aviation is increasingly becoming a key name in the fast-growing air taxi market that many believe will be worth more than a trillion-dollar over the next few years.

ACHR shares continue to attract investors this year as the company is playing it smart.

On the one hand, it’s committed to commercial applications of the eVTOLs – while on the other, it’s working with the defense sector as well.

Together, this dual-focused approach could help Archer Aviation grow its annual revenue into the billions by the end of this decade. Note that ACHR stock is already trading at a multi-year high at writing.

ACHR shares could benefit from recent partnerships

Archer Aviation is an exciting pick for exposure to urban air mobility, also because it’s not the one to paint a rosy picture of what the future “may” look like.

It has the numbers to substantiate that it’s working diligently towards that future.

For example, the NYSE-listed firm currently has a backlog of some $6 billion, signalling strong demand for its eVTOLs.

Plus, it has teamed up with notable names like Anduril Industries and even the market favourite, Palantir Technologies, in a show of its commitment to transforming the way people get around a city.

ACHR’s team up with Palantir is particularly thrilling since it aims at revolutionising aviation logistics with the use of artificial intelligence, which could unlock extraordinary upside for Archer Aviation stock over time.

What Archer Aviation’s current valuation tells us

A $6 billion order book makes Archer Aviation stock grossly undervalued at current levels since a multiple of just 2x on that backlog makes ACHR worth $24 a share at least, indicating potential upside of another 80% from here.  

What’s also worth mentioning is that a 2x multiple is unusually conservative for high-growth tech names, which Archer Aviation is by all means, especially after its team-up with Palantir.

It’s fairly common for high-growth tech companies to command a multiple of 5x or even 10x their estimated revenue.

That’s part of the reason why Cantor Fitzgerald reiterated its bullish view on ACHR shares after the LA28 Olympics news on Friday.

The urban air mobility specialist does not currently pay a dividend, though.

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The global weight-loss drug market, once dominated by Novo Nordisk, is undergoing a dramatic transformation.

On Friday, the Danish pharmaceutical giant announced it would replace its long-serving chief executive, Lars Fruergaard Jorgensen, as the company faces mounting pressure from rivals and a sharp slide in its stock value.

Novo’s shares have fallen 50% over the past year, a stunning reversal for the maker of Wegovy and Ozempic, two of the most recognisable names in obesity and diabetes care.

Analysts expect the weight-loss drug market to expand significantly in the next decade, potentially reaching $100 billion globally.

Jorgensen’s ouster signals deeper turmoil at the heart of the fast-evolving market, where GLP-1 drugs—once seen as miracle treatments—are now facing stiffer competition and growing scrutiny from insurers and policymakers.

Eli Lilly’s rise reshapes market leadership

The most formidable challenger has emerged in the form of US-based Eli Lilly, whose GLP-1 injection Zepbound has steadily gained market share against Novo’s Wegovy.

Lilly’s latest clinical data has only solidified its momentum.

A recent late-stage trial showed that orforglipron, the company’s experimental pill, helped diabetes patients lose nearly 8% of their body weight in 40 weeks—beating Ozempic’s performance in a similar cohort.

Lilly also boasts retatrutide, a weekly injection that delivered 24.2% weight loss in a mid-stage trial, one of the strongest results in the sector so far.

The company expects to seek approval for orforglipron by year-end and continues to invest aggressively, including a recent deal with Chinese biotech Laekna to develop a muscle-preserving obesity drug.

Novo races to catch up with next-generation drugs

To reclaim lost ground, Novo Nordisk is banking on new treatments.

It is developing amycretin in both pill and injectable form.

Early trial data suggest significant weight-loss potential, with the injectable version helping patients lose 22% of their body weight in 36 weeks.

The company is also pushing forward with CagriSema, though late-stage trial results have underwhelmed, falling short of internal benchmarks.

Novo hopes to submit CagriSema for regulatory approval in early 2026.

It has also broadened its pipeline through partnerships, including a $2 billion licensing agreement with United Laboratories for a triple-hormone targeting obesity drug.

Source: The Economist

Roche, Amgen also join the bandwagon

Lilly and Novo are no longer alone in the race. A host of major pharmaceutical companies and biotech firms are piling into the obesity space, lured by the multibillion-dollar market opportunity.

Pfizer recently dropped out after safety concerns in a trial involving danuglipron, its oral GLP-1 candidate.

But others are forging ahead. Roche has made big bets, acquiring Zealand Pharma’s petrelintide and Carmot Therapeutics’ CT-388, both GLP-1-based drugs, for a combined $8 billion.

Early data on Carmot’s second candidate also appears promising.

Amgen’s MariTide, an experimental drug that led to 20% weight loss in a mid-stage trial, is set to begin late-stage studies by mid-year.

Analysts note that the drug’s side effects may be more pronounced than competitors’, but its efficacy places it among the front-runners.

Merck, AstraZeneca, smaller firms also seek a slice of the market

Pharma giants traditionally absent from obesity treatments are now seeking a slice of the market.

In December, Merck struck a $2 billion licensing deal for a GLP-1 pill developed by Hansoh Pharma.

AstraZeneca’s licensed candidate AZD5004 has cleared early safety hurdles and is in mid-stage trials.

Smaller firms are also showing potential. Altimmune’s pemvidutide posted a 15.6% average weight loss in trials, although with notable gastrointestinal side effects.

Viking Therapeutics reported nearly 15% weight loss in 13 weeks with its injectable VK2735, and Zealand Pharma’s petrelintide posted 8.6% average weight loss in an early study.

Structure Therapeutics, meanwhile, has shown modest success with its oral candidate GPCR, delivering 6.2% weight loss over 12 weeks.

While not as potent as rivals, the convenience of an oral drug remains attractive to patients and investors alike.

Access remains an issue

Despite scientific advancements, access to these drugs remains a critical issue.

Employers are struggling with rising health coverage costs, leading many to exclude weight-loss drugs from their insurance plans.

Medicare still does not reimburse for obesity treatments in most cases.

A Biden administration plan to expand coverage was recently struck down by the Trump administration, leaving most patients to pay out of pocket. At an average of $500 per month, affordability remains a barrier for millions.

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Cox Communications has been a potential takeover target for years. But despite several attempts from multiple suitors, the company always remained steadfast in rejecting all buyout proposals.

However, that changed today, May 16, with an announcement that Cox has agreed to be acquired by Charter Communications Inc in a deal that values it at $34.5 billion.

So, what made Cox finally say “yes” to an acquisition after resisting it for so long?

According to industry expert Craig Moffett, it may have been evolving dynamics of the wireless market, particularly an opportunity for Cox to benefit from Charter’s existing mobile strategy, that made the cable television company yield on Friday.

Charter-Cox merger is all about wireless

Craig Moffett is convinced that the Charter-Cox merger is less about cable industry consolidation and more about the companies positioning themselves for a wireless-dominated future.

In the official announcement, both Charter and Cox were described as providers of mobile and broadband services, with mobile coming first, noted the senior MoffettNathanson analyst in an interview with CNBC today.

This highlights the increasing importance of wireless in the cable industry’s business model.

Cable operators have long been transitioning away from reliance on traditional video services, shifting focus to broadband as the core offering.

Now, the next frontier is “mobile”, he added.

Cox gets access to a better wireless deal

Another notable factor influencing Cox’s decision may have been Charter’s existing agreement with Verizon, argued Craig Moffett on “The Exchange”.

Charter operates as a Mobile Virtual Network Operator (MNVO), reselling VZ’s network access under better financial terms compared to Cox’s current arrangement with Verizon.

The merger enables Cox to take advantage of Charter’s more favourable wireless deal, strengthening its ability to compete in the bundled mobile and broadband market.

Moffett believes Cox recognised that if the industry’s future is centred around wireless bundles, having an advantageous relationship with Verizon was crucial.

Merging with Charter wins it access to a better wireless strategy, positioning itself to thrive in an increasingly mobile-centric industry.

Charter-Cox merger is inspired by changing industry priorities

While traditional cable TV may still be part of the equation, Craig Moffett said that cable providers have been moving away from viewing video services as their core business for decades.

Instead, broadband has been the backbone of profitability, and mobile is rapidly becoming the next major area for growth.

While competitors like AT&T and Verizon are aggressively expanding their bundle offerings, Cox likely determined that continuing to operate alone would leave it at a disadvantage.

A partnership gives it a strong market position without having to build a competitive wireless infrastructure of its own, he added.

Bottom line

All in all, Craig Moffett believes the Charter-Cox merger is entirely about strategy.

Teaming up with Charter, Cox gains stronger wireless capabilities, access to better infrastructure deals, and a firmer foothold in an evolving industry landscape.

The merger signals that broadband and mobile convergence are now the driving forces in telecom.

If Charter and Cox execute their integration effectively, this deal could solidify their standing as major players in the next phase of the industry.

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Charter Communications has agreed to acquire privately held Cox Communications for $21.9 billion, combining two of the largest cable and broadband providers in the US as the industry grapples with intensifying competition from streaming platforms and mobile carriers.

The deal revives a merger that was reportedly considered more than a decade ago but ultimately shelved.

Since then, cable operators have come under increasing pressure, with wireless providers luring broadband customers through aggressive pricing and millions of households abandoning traditional pay-TV in favor of streaming services.

Charter and Cox combined market share

The merger will bring together Charter’s 30 million broadband customers and Cox’s 6.5 million residential and commercial users.

Charter operates across 41 states and reaches more than 57 million homes and businesses, while Cox covers 7 million homes in 18 states.

Together, the two companies will form a dominant force in the broadband sector, operating under the name Cox Communications after the merger is finalised.

Charter will retain its consumer-facing Spectrum brand, which includes cable, broadband, and mobile offerings.

Charter ended Q1 with 12.7 million cable TV subscribers and 10.5 million mobile lines.

It lost 60,000 broadband and 181,000 TV customers during the quarter, a trend that mirrors the wider industry’s shift away from legacy television packages.

Cox, which began offering mobile services in 2023, generated $12.6 billion in revenue as of 2020.

Both firms have increasingly turned to mobile bundling strategies to retain users in a saturated and evolving market.

Ownership structure, management, and integration plans

Upon completion of the deal, Cox Enterprises is set to hold approximately 23% of the fully diluted outstanding shares of the newly merged entity.

While Charter Communications will remain the majority shareholder and maintain its headquarters in Stamford, Connecticut, the combined company will also sustain a significant operational footprint in Atlanta, preserving Cox’s regional presence.

Charter’s current president and CEO, Chris Winfrey, will lead the combined company, while Cox Enterprises chairman and CEO Alex Taylor will serve as chairman of the board.

The Cox family will maintain influence with the right to appoint two board members. An additional Cox executive is also expected to join the board.

The transaction includes provisions to rename the merged entity to Cox Communications within a year of closing, with Charter’s Spectrum retained as the retail brand.

Strategic value and expected cost synergies

Charter projects that the merger will generate around $500 million in annualised cost synergies within three years.

These savings are expected to stem from shared infrastructure, streamlined operations, and cross-platform service integration, particularly in mobile and broadband bundles.

The agreement with Cox is timed to close alongside Charter’s merger with Liberty Broadband, a move that simplifies the holdings of long-time cable investor John Malone. Liberty and Charter shareholders approved the Liberty deal in February.

The Cox merger will further consolidate Charter’s position as the second-largest publicly traded cable operator in the US, behind Comcast.

While both companies have avoided rapid declines seen in traditional television markets, they continue to face competition from fixed wireless, satellite broadband, and telecom operators investing heavily in 5G home internet.

The merger with Cox positions Charter to expand its bundled service offerings while leveraging a broader customer base to weather changes in consumer demand and technology.

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