Wall Street Calls: Weekly Highlights

Best Buy (BBY)

What happened?

On Monday, JPMorgan downgraded Best Buy (NYSE: BBY) to Neutral with a $76 price target.

TL;DR

JPMorgan turns cautious on BBY. Seller pressure remains heavy, upside is capped, and the stock struggles to break out — “Run, Forrest, run.”

The full story

JPMorgan cut BBY to Neutral from Overweight and set a December 2026 price target of $76, based on 12x P/E and 5.5x EV/EBITDA using its 2026 estimates.

The firm expects a tough 4Q25, with punishing year-over-year comparisons in 2Q and 3Q that mute any consumer recovery rally. Computing faces meaningful pressure just as macro tailwinds fade. While tax stimulus could briefly lift demand, JPM sees limited durability: a short-lived boost from the Nintendo Switch 2 (adding ~2.3 points of comp in 2Q) and the October Windows 10 end-of-support event fail to change the bigger picture.

Rising memory prices — potentially doubling — threaten computing, which makes up over 35% of sales, undercutting what had been mid-single-digit growth from replacement demand. Meanwhile, housing remains weak, while TVs (20%+ of revenue) and appliances (11%) continue to struggle amid aggressive pricing and limited feature-driven upgrades.

Crowded short positioning and stimulus optimism could push shares back into the $70s, but JPM sees this as a classic “can’t see the forest for the trees” setup. With sellers positioned higher, the firm steps aside.

SoFi (SOFI)

What happened?

On Tuesday, JPMorgan upgraded SoFi (NASDAQ: SOFI) to Overweight and lifted its price target to $31.

TL;DR

Momentum is real, and the recent pullback looks like a gift — not a red flag. Happy New Year.

The full story

SoFi shares are down about 10% since the company’s Q4 earnings call on January 30, even as the S&P 500 has barely moved. JPMorgan views the selloff as disconnected from fundamentals, coming on the heels of record quarterly results and 2026 adjusted EBITDA guidance that surpassed expectations.

The firm points to strong and accelerating momentum across the business. SoFi continues to add members and deposits at record levels, standing out as many competing fintechs face outflows or stalled growth. Elevated marketing spend through 2025 and into the first half of 2026 is seen as a strategic advantage, helping attract and retain higher-quality customers.

With a nearly $40 billion loan portfolio now producing meaningful GAAP earnings — even excluding non-cash fair-value adjustments — alongside growing fee revenue from the Tech Platform and expanding products like SoFi Plus, JPM argues the company has reached real scale. That combination, in its view, supports a premium valuation and underpins the upgrade.

Booking Holdings (BKNG)

What happened?

On Wednesday, Mizuho upgraded Booking Holdings (NASDAQ: BKNG) to Outperform and reiterated its $6,000 price target.

TL;DR

Mizuho turns bullish on BKNG. Buy the fear — roughly 30% upside ahead.

The full story

Mizuho raised BKNG to Outperform from Neutral while holding its $6,000 price target, implying about 30% upside and a compelling 2.7x bull/bear skew.

Shares are down 16% since the recent selloff, underperforming peers (Expedia +6%, Airbnb -1%) and the broader market (Nasdaq +2%), even as 2027 EPS estimates have risen roughly 4%. The firm dismisses concerns that generative AI will bypass online travel agencies and drive consumers directly to hotels, characterizing the narrative as exaggerated market fear rather than a structural threat.

Valuation has become increasingly attractive. BKNG now trades at 17.8x next-twelve-month consensus P/E, a full standard deviation below its three-year average of 20.6x, and around 16x projected 2027 GAAP EPS.

For investors who missed the November selloff, Mizuho frames the current setup as another clear opportunity: sentiment has overshot fundamentals, and fear is once again creating an entry point.

Qualcomm (QCOM)

What happened?

On Thursday, Bank of America downgraded Qualcomm (NASDAQ: QCOM) to Neutral and cut its price target to $155.

TL;DR

Handset demand is collapsing, QCT is in trouble, and near-term catalysts are nowhere to be found. BofA looks elsewhere.

The full story

BofA downgraded QCOM from Buy to Neutral and slashed its price target from $215 to $155, lowering its valuation multiple to 13.5x FY27E P/E, down from 17x previously.

The call centers on worsening handset fundamentals. Smartphones account for roughly 74% of QCT revenue, and unit volumes are now expected to fall about 15% this year, a sharp deterioration from prior expectations of a modest 2% decline. Memory pricing volatility continues to pressure the ecosystem, weighing on demand across the supply chain, with even ARM and MediaTek feeling the strain.

Competitive dynamics add to the pain. Samsung has taken roughly 25% share, Apple is expected to reduce reliance on Qualcomm later this year, and China demand is fading following a holiday-driven surge. As a result, BofA forecasts QCT revenue to decline 1.5% in FY26.

While Qualcomm trades at a seemingly cheap ~12x FY27E earnings, the firm sees little reason for multiple expansion. With no clear near-term catalysts and both cyclical and structural headwinds building, BofA steps to the sidelines.

Amazon (AMZN)

What happened?

On Friday, DA Davidson downgraded Amazon (NASDAQ: AMZN) to Neutral and cut its price target to $175.

TL;DR

AWS is losing momentum versus faster-moving rivals, AI leadership gaps are widening, and rising capex clouds the risk/reward. DA Davidson steps back.

The full story

DA Davidson downgraded Amazon from Buy to Neutral, arguing that AWS’s dominance is beginning to erode under competitive pressure. While AWS is growing at roughly 24%, rivals are accelerating faster—Google Cloud at 48% and Azure at 39%—driven by stronger AI ecosystems, frontier-model partnerships, and perceived leadership rather than arguments around scale.

The firm highlights growing concerns around AWS’s AI stack. Trainium continues to lag Google’s TPUs, and customers appear increasingly willing to shift workloads accordingly. In retail, DA Davidson sees strategic risk from limited deep integration with leading conversational AI platforms such as Gemini or ChatGPT, potentially allowing competing commerce platforms to capture merchant traffic and advertising dollars. Internal efforts, including Rufus and broader “horizontal model” initiatives, are viewed as slow to gain traction. Even Amazon’s early investment in Anthropic is seen as less differentiating as competition intensifies.

Meanwhile, capital expenditures are surging beyond $200 billion, raising questions about return on investment and whether Amazon may need to pursue costly external AI partnerships simply to remain competitive. Although revenue growth remains solid at around 13% and backlog continues to build, the firm believes the balance of risk has shifted.

DA Davidson concludes that Amazon’s scale no longer guarantees leadership, and that caution—not blind confidence—is warranted at current levels.

Sources: Garrett Cook