Chris Campbell:

Pilotless Planes Are Taking Flight in China. Bank of America Says It’s Time To Buy

While startups around the world have tried to build vehicles that can fly without a pilot, only one is certified to carry people — in China.

U.S.-listed Ehang received this certification from China’s aviation regulator in late March, and the company plans to begin operating flights for tourists along a few designated routes by the end of June. The vehicle, known as an eVTOL aircraft, carries two passengers and uses electric power for vertical take-off and landing, similar to a helicopter.

“Ehang should maintain 100% market share in China over 2025-27, as the strict [the Civil Aviation Administration of China] airworthiness process poses a high entry barrier to new entrants,” Bank of America Greater China industrials stock analysts said in a May 14 report.

They initiated coverage of the stock with a “buy” rating, and predict the stock can reach $26 — 36% above Friday’s close. The stock is up more than 20% for the year so far.

The analysts expect Ehang to benefit from national policy support and faster-than-expected delivery to tourism customers.

⇒ Read More Here

Enrique Abeyta:

Stocks Don’t Care About Your “Facts”

Stocks don’t trade on facts. They trade on opinion. That’s the only way to explain how Tesla is the most valuable automaker in the world, despite delivering a fraction of the industry’s profits.

Truth be told, fundamentals don't matter for stock prices most of the time. This may fly in the face of everything you've heard, but it's the reality.

The reason the stocks go up is when more buyers than sellers have an increasingly positive view of these factors and therefore, are willing to pay more. They are opinions, not facts.

Does this mean that no relationship exists between fundamentals and stock prices? Not at all…

In addition to the binary outcomes we mentioned, buyout or bankruptcy, for the most part, market opinions closely align with the development of fundamentals. But this is because investors choose for this to be the case. Any specific equation is not forcing it.

For long-term success, you must understand the difference between a company and its shares, the true value of a stock, and what actually drives price.

⇒ Read More Here

James Altucher:

Senate Advances a Major Crypto Regulation Bill on a Bipartisan Vote

The Senate advanced a major cryptocurrency regulation bill Monday on a bipartisan vote two weeks after every Senate Democrat united to block it. 

The procedural vote on the GENIUS Act — which would establish the first regulatory framework for issuers of stablecoins, digital tokens pegged to fiat currencies like the U.S. dollar — was 66-32. Sixteen Democrats voted with the majority of Senate Republicans to advance the bill. Two Republicans, Sens. Rand Paul of Kentucky and Jerry Moran of Kansas, voted against it.

The bill needed to cross the 60-vote threshold to advance to final passage in the Senate, where Republicans hold a three-seat majority.

Democratic support to proceed with the legislation was unlocked after a group of bipartisan negotiators — Sens. Bill Hagerty, R-Tenn; Cynthia Lummis, R-Wyo.; Mark Warner, D-Va.; Kirsten Gillibrand, D-N.Y.; Angela Alsobrooks, D-Md.; and Ruben Gallego, D-Ariz. — reached an agreement late last week on an amendment to the bill that addressed key sticking points for Democrats.

⇒ Read More Here