Here is the biggest call on Wall Street: BMO downgrades Microsoft for the market to outperform BMO downgrades the stock after Microsoft’s earnings report, which is listening to concerns about the growth of Azure. “We downgrade MSFT to Market Perform based on the uncertainty in Azure. We have previously put Microsoft on our negative watch list in the 2023 outlook note published in December 2022, based largely on concerns for the growth of Azure.” Read more about this phone here. Oppenheimer downgrades Block to market perform from outperform Oppenheimer said that “volume can swing more wildly in a downturn” for the company formerly known as Square. “Our outperform rating is predicated on SQ being able to protect adjusted EBITDA. We have learned that investors really do not focus on adjusted EBITDA vs. gross profit given a lot of high growth.” Wells Fargo started Diamondback Energy as an overweight Wells said it saw “an attractive cash-generating objective” for the hydrocarbon exploration company. “We start in FANG at OW w/ $181 PT. Core Permian, solid execution and leading FCF payments support a positive outlook.” Barclays downgrades Sunrun to equal weight from overweight Barclays said it is concerned about the slowdown in residential demand for solar. “With US residential solar demand expected to slow in 2023, we adjusted our ratings to reflect our expectations for SPWR and RUN and how they will perform in a changing environment.” Read more about this phone here. Bank of America started Papa John’s as a purchase Bank of America said that the stock of the pizza chain is attractive and that it sees a return to growth. “PZZA’s relative valuation of 1.4x sits below its 5-year and 10-year average of 1.5x, reflecting concerns about the secular outlook for the pizza category.” Bank of America downgrades Booking Holdings to neutral from buy Bank of America says it is “undervalued” for the online travel booking company. “However, Booking’s stock has outperformed its tougher competitors in 2Q, and we downgrade to Neutral from Buy as we see a lower price than it currently is at the top of the 2024 Street.” Gordon Haskett downgrades Airbnb to underperform from hold Gordon Haskett downgrades Airbnb because of “roughly aggressive Street topline.” “Downgrading to Underperform; Expect to See Downward Top- and Bottom-line Revisions w/ Very Optimistic Consensus Estimates.” Morgan Stanley named Tesla its latest pick Morgan Stanley named Tesla its latest pick and said it was attracted to “profitability, FCF generation. [and] strong balance sheet.” “Tesla’s recent price cut is just the latest sign that the EV market may be entering a ‘shake-out’ phase. We are reducing exposure to our EV portfolio, while making Tesla a Top Pick.” Read more about this call here. Bank of America downgrades Union Pacific to neutral from buy Bank of America, concerned about “service and cost pressures” for Union Pacific. We move to Neutral due to constant pressure on costs, negative mix pressure, impact of inflation (target 4%), and lower fuel/accessory benefits offset the target for rebound service levels, lower fuel costs, and gains above economic activity. BMO downgrades Bloomin’ Brand to market performance from outperform BMO downgrades brand owners like Outback Steakhouse and says it sees risk / reward more “balanced”. data, as an opportunity to go to the sidelines as the risk / reward has become more balanced. tobacco giant. “We see rising growth algo & possible risk/reward as PM enters key US market.” Bank of America rei terates Amazon as a buy Bank of America said it stands by its buy rating heading into Amazon’s earnings, but is concerned about Amazon Web Services after Microsoft’s disappointing quarter results. “Although the Azure FYQ2 beat gives us a bit more confidence in AWS in C4Q (and we think 22% growth is possible for 4Q), we expect the Street to be more cautious in C1Q after the Azure guide.” UBS downgrades Cheesecake Factory to neutral from buy UBS downgrades shares amid concerns over challenging 2023 macro outlook. “We are downgrading CAKE to Sell from Neutral given: i) up ~16% in the stock YTD ii) our expectations for more challenging macros this year which may impact results & earnings visibility; and iii) we view that the risk is for ’23 guidance margins.” Mizuho reaffirms Robinhood as it buys Mizuho called 2023 a “transformational year” for Robinhood. “Beyond 4Q, we continue to see 2023 as a transformational year for HOOD as it should benefit from new products, such as the new IRA offering. Buy.” DA Davidson kicks off Toast as buy DA Davidson says the next-generation restaurant platform company’s stock is attractive. “The product is very attractive, Toast has reached 11% market share with no signs of slowing down. Although macro is a concern, we note that Toast has proven its ability to master difficult times.” Loop started Mobileye as a purchase Loop said at the beginning of the autonomous driving technology company that is “best-of-breed.” “Autonomous is real … and it keeps getting ‘Realer.’ We like to invest the best into long-term social trends that are strong and structural and autonomous and MBLY belongs to this type. News Corporation and Fox. and with a strategic position with a focus on news and sports and not participating in the expensive streaming business.” Wedbush downgrades DR Horton to neutral from outperform Wedbush downgrades homebuilder on “lower volume expectations.” “We are downgrading DHI to NEUTRAL from OUTPERFORM and PT we move to $96 from $104. The price cuts required to maintain sales volumes for F2Q23 and potentially F3Q23 may be steeper than previously expected.