Good Morning! Elon Musk says he’s staying put at Tesla for at least the next five years. Meanwhile, Tesla’s CFO Vaibhav Taneja earned $139M last year, more than most CEOs. And Tesla’s biggest bull, Cathie Wood, is doubling down on her price targets: $2,600 Tesla and $700K Bitcoin by 2030.

Pfizer inked a giant cancer drug deal with a Chinese biotech. Waymo’s robotaxis just passed 10 million paid trips. And the SEC is weighing a move to unify mutual fund and ETF rules.

Plus: Blackstone is selling Clarion, crypto is gaining serious clout in D.C., and a new piece explains why top performers walk away.

Spot critical errors before they cost you—see how Macabacus makes financial modeling faster, safer, and smarter.

Want deeper deal coverage? Buysiders delivers exclusive write-ups and behind-the-scenes insights, this month featuring Dick’s acquisition of Foot Locker.

SQUEEZ OF THE DAY

Is M&A Finally Back?

Dealmaking isn’t just back on bankers’ lips… it’s showing up in their portfolios.

Citi’s U.S. M&A Targets Basket (a curated list of 40 companies the bank sees as potential takeover targets) has surged 44% since April 8. That’s more than double the S&P 500’s return over the same stretch and marks the fastest rally since Citi launched the index in 2022.

The spike coincides with President Trump’s decision to pause certain tariffs, which had previously chilled large transactions. With trade tensions easing and recession fears fading, Wall Street’s appetite for risk is returning, especially in the high-beta corners of the market.

Some names in Citi’s basket include Reddit, Cloudflare, Capri Holdings, and Tapestry, companies with substantiated M&A interest but no announced deals (yet).

And the rally isn’t all speculation. Last week alone, Dick’s Sporting Goods announced a $2.4 billion deal to acquire Foot Locker, and Charter struck a merger with Cox Communications.

Citi updates its basket quarterly using a combination of fundamental screens and options market data. While the current surge reflects bullish sentiment, there are still macro risks that could slam the brakes; from a resurgence in trade frictions to declining consumer confidence.

But for now, strategics and sponsors alike appear more willing to get some deals done. As one strategist put it, “Corporate America is starting to get more comfortable committing to strategic changes.”

Takeaway: While macro risks still loom, the M&A engine is humming again. Whether this turns into a full-blown comeback or just another false start remains to be seen. Either way, if you're a banker, it might be time to kiss those 7pm dinners goodbye (for now).

HEADLINES

Top Reads

• Elon Musk commits to leading Tesla for next five years (CNBC)

• Tesla CFO earns staggering $139M compensation package (Fox)

• Cathie Wood Thinks Tesla's Stock Is Going to $2,600, While Bitcoin Will Hit at Least $700,000 by 2030 (MF)

• Pfizer signs giant cancer drug deal with Chinese biotech (Axios)

• Waymo says it reached 10 million robotaxi trips (CNBC)

• Carlyle’s Rubenstein sees deficit as bigger issue than trade (BB)

• Why Morgan Stanley remains bullish on Tesla (YF)

• Crypto industry emerges as key influence that could shape DC balance of power (Fox)

• Deutsche says U.S. economy experiencing death by a thousand cuts (Fortune)

• Government contractors are lining up to work with DOGE (Axios)

• Home Depot will keep most prices stable despite tariffs (CNN)

• Blackstone launches Clarion sale as markets stabilize (YF)

• Asset managers prepare for SEC to scrap wall between mutual funds and ETFs (CNBC)

• Google launches $250 per month 'VIP' AI subscription service (CNBC)

• Trump nears decision on U.S. Steel takeover (Axios)

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CAPITAL PULSE

Markets Rundown

Market Update

• U.S. stocks closed modestly lower Tuesday, with defensive sectors like utilities and health care leading gains, while most sectors of the S&P 500 ended flat or lower.

• Home Depot reported stronger-than-expected sales but slightly missed on earnings. Management maintained full-year guidance and indicated no plans to raise prices in response to tariffs.

• Asian markets finished higher, buoyed by China's 0.1% cut to key lending rates, while European markets advanced following a modest improvement in eurozone consumer confidence.

• Bond yields edged up, with the 10-year Treasury yield closing near 4.5%.

Economic Data Highlights

• No major U.S. economic data releases on Tuesday; investor focus remains on corporate earnings and international developments.

Reported Earnings

• Home Depot (HD) – Reported May 20: Delivered stronger-than-expected sales; earnings slightly missed. Management maintained full-year guidance and stated no plans to raise prices due to tariffs.

• Palo Alto Networks (PANW) – Reported May 20: Posted revenue and earnings that exceeded expectations, driven by growth in subscription services. However, shares dipped post-market amid concerns over future revenue growth projections.

Earnings Today

• Target (TGT) – Reporting May 21 (Before Market Open): Investors will watch for insights on pricing strategy, same-store sales, and inventory management amid ongoing tariff considerations.

• Snowflake (SNOW) – Reporting May 21 (After Market Close): Focus will be on cloud consumption growth and updates on product innovation.

• Zoom Video Communications (ZM) – Reporting May 21 (After Market Close): Key areas of interest include enterprise adoption rates, margin trends, and the impact of AI-driven features.

Movers & Shakers

• (+) D-Wave Computing ($QBTS) +26% after announcing new computing system.

• (+) Warby Parker ($WRBY) +16% after the eyewear company announced a new partnership with Google.

• (–) Eagle Materials ($EXP) -9% after the building materials maker missed earnings.

Private Dealmaking

• Authentic Brands Group bought Dockers for $311 million

• Awardco, an employee rewards company, raised $165 million

• Ascendx Cloud, a CRM startup, raised $110 million

• Stylus Medicine, a gene editing startup, raised $85 million

• Alpheus Medical, a cancer treatment developer, raised $52 million

• Realta Fusion, a magnetic mirror fusion startup, raised $36 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

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DAILY ACUMEN

Legends Series: Carl Icahn

Carl Icahn didn’t wait for value to unlock itself.

He pried it open with a crowbar.

The original “corporate raider,” Icahn made his fortune identifying underperforming companies and forcing change—through proxy battles, board takeovers, and sheer willpower.

From TWA to Apple, his activist fingerprints are everywhere.

Icahn’s style isn’t for the timid.

But his instinct is powerful: when capital is misallocated, there’s opportunity.

Today, some sectors—like telecom, energy, and media—are bloated with costs and sluggish growth.

Meanwhile, investors are chasing high-momentum names while ignoring companies with undervalued assets and sleepy boards.

Icahn’s approach reminds us: shareholder value doesn’t create itself—it often needs a spark.

As M&A chatter picks up in 2025 and boards get more scrutiny, the activist mindset may return in force.

Look for inefficiencies. Look for inertia. And ask: what would Carl do?

ENLIGHTENMENT

Short Squeez Picks

• How to delegate tasks without losing control

• How to not sound like a narcissist in an interview

• 12 ways to speak with confidence in any setting

• 22 things that never came back after the pandemic

• Why high-performers leave and what leaders miss

MEME-A-PALOOZA

Memes of the Day

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