Markus Andrews

A logo of Meta is displayed during the Viva Technology startups and innovation fair at the Porte de Versailles exhibition center in Paris on May 22, 2024.
Julien De Rosa | Afp | Getty Images

The U.S. Federal Reserve recently announced its plan to keep interest rates steady, cautioning, “uncertainty about the economic outlook has increased further.” It noted that the risk of higher unemployment and elevated inflation have risen. Indeed, tariff wars have shaken global markets and knocked investor sentiment.
Nonetheless, investors looking for attractive picks amid the ongoing volatility can track the recommendations of top Wall Street analysts, who have the expertise to select stocks with the potential to thrive despite short-term challenges.

With that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Meta Platforms
We start this week with Facebook and Instagram owner Meta Platforms (META), which surpassed analysts’ estimates for the first quarter of 2025, reflecting resilience in a tough macroeconomic backdrop. CEO Mark Zuckerberg said Meta is well-positioned to navigate any ongoing challenges.
In reaction to the strong Q1 print, JPMorgan analyst Doug Anmuth reiterated a buy rating on META stock and boosted the 12-month price target to $675 from $610, saying that Meta remains his firm’s top pick. Noting the company’s Q1 beat and Q2 outlook, Anmuth said he believed the company’s artificial intelligence (AI) ad enhancements, such as Andromeda and GEM, are having a significant impact on its ability to make money from the technology.
On the rise in Meta Platforms’ full-year capital expenditure guidance, the analyst said that he is OK with the increase, given that the company is delivering good results and tracking well on its AI roadmap. He added that Meta has a track record of generating returns on increased spending.  
Anmuth said that AI is fueling huge early gains in Meta’s advertising and engagement, with the analyst expecting notable progress soon in business messaging/agents and Meta AI.

“We continue to believe that Meta is well positioned for a tougher macro environment given its scaled advertiser base, highly performant platform and vertical agnostic inventory,” Anmuth said.
Anmuth ranks No. 49 among more than 9,500 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, delivering an average return of 20.1%. See Meta Platforms Options Activity on TipRanks.
Amazon
Anmuth is also bullish on e-commerce and cloud computing giant Amazon (AMZN). Following the company’s Q1 results, the analyst reaffirmed a buy rating on AMZN and raised the price target to $225 from $220. Amazon reported better-than-expected Q1 2025 results but issued soft guidance for the second quarter, citing tariff woes.
The analyst noted that the company’s Q1 revenue and operating income exceeded the higher end of prior guidance, while the second-quarter outlook reflected lower-than-feared macro and tariff-related impacts.
Though Microsoft’s Azure outperformed Amazon Web Services (AWS) in the March quarter and AWS is currently capacity-constrained, the analyst continues to believe that growth can move higher in the second half of the year as more supply comes online. He added that Amazon is not witnessing any visible change in demand.
Anmuth noted that the sequential deceleration in AWS revenue growth to 17% in Q1 2025 from 19% in the fourth quarter was offset by solid profitability. Notably, AWS’ operating margin touched an all-time high of 39.5% in the first quarter.  
The analyst said that while Amazon did not discuss all its mitigation efforts related to suppliers and geographic sourcing of products, it has taken measures to pull forward inventory because of the tariff wars.
“Importantly, AMZN remains focused on broad selection, low pricing and fast delivery, and believes it typically emerges from uncertain macro periods with greater relative market share gains,” said Anmuth. See Amazon Insider Trading Activity on TipRanks.
Roku
Finally, let’s look at Roku (ROKU), a maker of streaming devices and other products, and a distributor of streaming services. While Roku delivered a modest revenue beat and reported a narrower-than-anticipated loss per share for the first quarter, shares declined as the company trimmed its full-year revenue outlook and issued lower-than-expected Q2 revenue guidance.
Wedbush Securities analyst Alicia Reese highlighted that while Roku lowered its 2025 revenue outlook, it maintained Platform revenue and adjusted EBITDA guidance, crediting enhanced profit from its initiatives and anticipated revenue from acquiring Frndly TV. Roku last week agreed to buy Frndly TV, an affordable subscription streaming service that offers live TV, on-demand video, and cloud-based DVR (Digital Video Recorder), for $185 million in cash in a deal espected to close in the second quarter.
Despite the impact of macroeconomic challenges, Reese believes that Roku is well-positioned within the relatively safe connected TV industry owing to increasing diversification of platform revenue. The analyst also highlighted that a more diversified business model is helping Roku deliver consistent results.
Reese thinks that investors will appreciate Roku for its balanced approach as it grows internationally, improves its platform and enhances The Roku Channel’s ad capabilities, while focusing on expense discipline to drive free cash flow.
“We expect Roku to benefit from its DSP (demand-side platform) partnerships, high-quality inventory, improved targeting sports-adjacent ads, and various price points across its platform to meet advertisers’ needs,” said Reese, reiterating a buy rating on ROKU stock with a price target of $100.  
Reese ranks No. 830 among more than 9,500 analysts tracked by TipRanks. Her ratings have been profitable 61% of the time, delivering an average return of 14.5%. See Roku Ownership Structure on TipRanks. More

Brian Armstrong, CEO and Co-Founder, Coinbase, speaks during the Milken Institute Global Conference on May 2, 2022. in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images

Coinbase CEO Brian Armstrong said the crypto platform aims to become one of the biggest financial services companies in the world in a few years, aided by traditional players who continue adopting crypto at an accelerating rate.
Asked on the company’s call with analysts this week if Coinbase plans to enter traditional finance, Armstrong said that rather than look backward, he “wants to look forwards and skate to where this opportunity is going.”

“Today, we’re primarily focused on trading and payments … across our major customer groups: retail, small [and] medium sized businesses, institutions and developers,” Armstrong said on the quarterly earnings call Thursday.
“In five- to 10 years, our goal is to be the number one financial services app in the world across those customer segments because we believe that crypto is eating financial services, and we are the number one crypto company,” he added. “All these asset classes – money market funds, real estate, securities, debt – these are all coming on chain.”
Expanding platform
Coinbase operates primarily as a cryptocurrency exchange. Over the years it has added other products and services focused on non-trading aspects of crypto for retail and institutional users alike – including payments via stablecoins, rewards through stablecoins and staking and custody for institutions. BlackRock, Stripe and PayPal are among more than 200 institutional customers for those services.
This week, the Office of the Comptroller of the Currency (OCC) cleared the U.S. banks that it regulates to buy and sell and act as custodian of crypto assets for customers, joining the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) in rolling back restrictive crypto rules in the past two months. In 2023, all three agencies had cautioned banks against partnering with the industry or offering crypto services.
As the Trump administration loosens regulatory constraints on crypto and Congress stands on the verge of passing stablecoin legislation later this year, traditional institutions have shown more interest in expanding into crypto-related services. In February, Bank of America CEO Brian Moynihan said the Charlotte-based lender could introduce a stablecoin if regulation allows.

“We think that every major bank is going to be integrating crypto at some point … it’s technology to update the financial system,” Armstrong said. “We can power a variety of things for them. [For] some of them, it’s a custodial solution. Others are interested in having a stablecoin solution.”
“We’ve seen some interest where banks and other companies will want to create their own stablecoin,” he continued. “Our view is that that’s not necessarily the best path because stablecoins have network effects. You want interoperability with other financial institutions to be able to settle payments and do all kinds of things.”
Biggest driver
Stablecoins have become Coinbase’s biggest driver of revenue after trading. In the first quarter, revenue tied to stablecoins soared 50% from the year-earlier period and 32% from the fourth quarter. Coinbase is a cofounder of the popular USDC stablecoin, has a 50% revenue sharing agreement with issuer Circle and also makes 100% of the interest earned by USDC products on the Coinbase platform.
Armstrong has said Coinbase has a “stretch goal” to make USDC the number 1 stablecoin in the world, a position ccurrently held by Tether’s USDT.
“If you can get shared economics, I don’t see why we wouldn’t see more of these banks partnering with USDC,” Armstrong said. “Regardless, we at Coinbase can help power infrastructure for all these folks that are coming into the industry … that’s a big part of our plan.”

Don’t miss these cryptocurrency insights from CNBC Pro: More

The Social Security Administration is under new leadership after former Fiserv CEO Frank Bisignano has been sworn in as commissioner.
The change at the helm of the federal agency comes after the Trump administration crossed the first 100 days of its term, a period that has included changes to both benefits and services.
Here are some key changes that Social Security’s approximately 73 million beneficiaries need to watch.

A Social Security Administration office in Washington, D.C., on March 26. The Department of Government Efficiency (DOGE) is reportedly aiming to reform and downsize the agency.
Saul Loeb | Afp | Getty Images

The Social Security Administration is under new leadership, after financial services executive Frank Bisignano was sworn in as commissioner this week.
Bisignano’s confirmation follows a host of changes at the federal agency during the first 100 days of the Trump administration, many of them through the Department of Government Efficiency.

For the approximate 73 million beneficiaries who rely on monthly Social Security checks, those changes may affect how they receive services from the agency.
From benefit increases for certain pensioners to changing policies on benefit withholdings and customer service, here are some of the biggest shifts of which beneficiaries should take note.

Certain pensioners see benefit increases

President Joe Biden after he signed the Social Security Fairness Act at the White House on Jan. 5 in Washington, D.C. 
Kent Nishimura | Getty Images News | Getty Images

A new law that went into effect in January will provide almost 3 million individuals with increased Social Security benefits.
The Social Security Fairness Act provides higher monthly Social Security checks for individuals who also receive pensions from work that did not include payment of Social Security payroll taxes. It will also provide lump sum retroactive payments starting from January 2024.
Monthly benefit increases may range from “very little” to “over $1,000 more each month,” according to the Social Security Administration, which began those adjustments in February.

The change affects certain workers such as teachers, firefighters and police officers; federal employees under the Civil Service Retirement System; and people who work under foreign social security programs, according to the agency. Those workers had previously seen their benefits reduced or eliminated due to the Windfall Elimination Provision and Government Pension Offset, which have been nixed with the new law.
More from Personal Finance:Social Security reduces benefit clawback rateTrump administration restarts student loan collectionsWhat experts say about claiming Social Security benefits early
In the first 100 days of the Trump administration, SSA has paid more than $14.8 billion in retroactive payments to more than 2.2 million individuals, according to the agency.
The agency has expedited the processing of the benefit changes under President Donald Trump. However, it may take a year or more to issue payments for some cases that cannot be processed through automation, according to the agency.

New default withholding rate for repaying benefits

Fertnig | E+ | Getty Images

Social Security beneficiaries are sometimes overpaid benefits due to errors.
When that happens, the Social Security Administration requires the extra money to be repaid to the agency.
Because it can take months or years to catch on to those mistakes, beneficiaries can be on the hook to repay big sums. That money may be withheld from benefit checks until the overpayment has been repaid.
The Social Security Administration has made various adjustments to the default withholding rate from benefits.
In response to complaints that a 100% default withholding rate caused financial hardship for affected beneficiaries, the agency under President Joe Biden changed that default withholding rate to 10% of a beneficiary’s monthly benefit or $10, whichever was greater.
Under Trump, SSA has had a tougher stance on overpayments. In March, the agency announced it planned to reinstate the default withholding rate to 100% of an individual’s monthly benefit. The change was estimated to generate about $7 billion in overpayment recoveries in the next decade.
However, the agency recently issued an emergency message notifying its employees that new overpayment notices sent on or after April 25 will have a 50% default withholding rate. That applies to retirement, survivors and disability insurance benefits. The withholding rate for Supplemental Security Income, or SSI, benefits is still 10%.
Some experts worry a 50% default withholding rate is still too high.
“Losing 50% [of benefits] for a lot of people could put them into immediate economic hardship,” Richard Fiesta, executive director of the Alliance for Retired Americans, recently told CNBC.com.

Student loan debtors may have benefits garnished

Overpayment of Social Security is not the only reason benefits may be withheld.
On May 5, the government resumed collections efforts on federal student loans in default. Now, the Education Department may use the Treasury Department Offset Program to withhold benefits for defaulted loans, as well as other payments like tax refunds and salaries. Some of those garnishments could start as soon as June, according to the Education Department.
The Social Security Administration may also withhold current and future Social Security checks for child support, alimony or restitution payments, according to the agency.
The IRS may take a portion of Social Security payments until it recoups the full balance of overdue federal tax debts.

Beneficiaries face long wait times for service

The Social Security Office in Alhambra, California.
Mario Anzuoni | Reuters

Individuals who call SSA’s 800 phone number face long hold times before they speak to someone at the agency.
To make an in-person appointment, they must either call that number or visit the website, which has experienced glitches.
Those difficulties are “neither new nor unique to the current administration,” Republican House Ways and Means Committee members recently wrote to Bisignano. Meanwhile, Democrats worry those difficulties could signal bigger problems ahead.
In a bid to reduce wait times, the agency has encouraged individuals to use its web site when possible.
The agency is in the process of modernizing its telecommunications platform, which is expected to allow it to better manage calls and provide more self-service options. The rollout, which is expected to be completed by the end of this summer, has helped improve answer rates and average speed of answer, based on early results, according to the Social Security Administration.

As Bisignano takes the helm, advocacy groups are urging for the agency to make the needs of its beneficiaries a priority.
“The vast majority of his current customer base cannot transact financial business through anything other than face to face contact in an office or on the telephone, and they have to be prepared to accommodate that,” said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.

Some may be required to make in-person office visits

A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. 
Saul Loeb | Afp | Getty Images

The Trump administration tasked the Department of Government Efficiency with curbing “waste, fraud and abuse” at federal agencies.
Under DOGE, the Social Security Administration sought to make it so services that could previously be handled over the phone would need to be done in person at an agency office to prevent fraud.
However, the agency has since scaled back that policy to allow for claims for retirement, survivor and spousal and children’s benefits to still be permitted over the phone. Individuals making other claims, including Social Security disability insurance, Medicare and Supplemental Security Income, can also still use the agency’s 800 number.
Notably, changes to direct deposit information will mostly still need to be handled either online or in person.
Consequently, almost 2 million more elderly and disabled individuals may need to visit Social Security offices in person annually, the Social Security Administration has revealed.

The online process may be difficult for some individuals because it requires multi-factor, multi-step online verification and a one-time PIN code, CBPP notes. Previous estimates have found that about 42% of older adults may lack access to reliable broadband service, according to the AARP.
In some cases, people may be able to change their direct deposit information over the phone if they are also able to verify their identity online, according to Freese.
The agency has “left this very convoluted system in place to use the telephone in order to change your banking information, but for the vast majority of seniors and members of the disability community, they’re never going to be able to use it,” Freese said.
Direct deposit fraud represents less than one-hundredth of one percent of benefits that are misdirected, according to the Center on Budget and Policy Priorities.

Digital Social Security cards available this summer

Douglas Sacha | Getty Images

The Social Security Administration plans to roll out a new secure digital form of identification as an alternative to traditional paper cards beginning early this summer.
The new digital feature will allow individuals who have either forgotten their Social Security number or who have lost their Social Security cards to access their personal number online through the agency’s My Social Security website.
They will also be able to access their Social Security numbers through digital devices and display them as identification for “reasons other than handling Social Security matters,” according to the agency.
With the new effort, the agency aims to reduce the inconveniences caused by lost or stolen cards, which currently requires individuals to apply for replacements either online or in person. More

Trump’s tax cuts debate is underway, and the House Ways and Means Committee on Friday night released preliminary text for its part of the legislation.
One key priority is fully extending provisions from the Tax Cuts and Jobs Act, or TCJA, of 2017. Some tax breaks could be boosted further, according to the House Ways and Means text.
Filers could also see campaign proposals, including no taxes on tips, tax-free overtime and tax-exempt Social Security benefits, worked into the package.
The $10,000 limit on the deduction for state and local taxes, or SALT, could be a sticking point.

U.S. President Donald Trump announces the NFL draft will be held in Washington, at the White House in Washington, D.C., U.S., May 5, 2025.
Leah Millis | Reuters

As negotiations ramp up for President Donald Trump’s tax agenda, there are key issues to watch, according to policy experts.   
The House Ways and Means Committee, which oversees taxes, released a preliminary partial text of its portion of the bill on Friday evening. However, the bill could change significantly before the final vote. The full committee will debate and advance this legislation on Tuesday.

With control of the White House and both chambers of Congress, Republican lawmakers can pass Trump’s package without Democratic support via a process known as “reconciliation,” which bypasses the Senate filibuster with a simple majority vote.
But reconciliation involves multiple steps, and the proposals must fit within a limited budget framework. That could be tricky given competing priorities, experts say. 
More from Personal Finance:The Fed holds interest rates steady. Here’s what that means for your walletIRS loses nearly 1 in 3 tax auditors in DOGE cuts, watchdog findsWhat new Social Security head Bisignano may mean for benefits
“The narrow [Republican] majority in the House is going to make that process very difficult” because a handful of votes can block the bill, said Alex Muresianu, senior policy analyst at the Tax Foundation.
Plus, some lawmakers want a “more fiscally responsible package,” which could impact individual provisions, according to Shai Akabas, vice president of economic policy for the Bipartisan Policy Center.

As negotiations continue, here are some key tax proposals that could impact millions of Americans.

Extend Trump’s 2017 tax cuts

The preliminary House Ways and Means text includes some temporary and permanent enhancements beyond the TCJA. These include boosts to the standard deduction, child tax credit, tax bracket inflation adjustments, the estate tax exemption and pass-through business deduction, among others.

Child tax credit expansion

Some lawmakers are also pushing for bigger tax breaks than what’s currently offered via the TCJA provisions.
“The child tax credit is one that we’re watching very closely,” Akabas said. “There’s a lot of bipartisan agreement on preserving and hopefully expanding that.”  
TCJA temporarily increased the maximum child tax credit to $2,000 from $1,000 per child under age 17, and boosted eligibility. These changes are scheduled to sunset after 2025.
The House in February 2024 passed a bipartisan bill to expand the child tax credit, which would have boosted access and refundability. The bill didn’t clear the Senate, but Republicans expressed interest in revisiting the issue.  
The early House Ways and Means text proposes expanding the maximum child tax credit to $2,500 per child for four years starting in 2025.

‘SALT’ deduction relief

Another TCJA provision — the $10,000 limit on the deduction for state and local taxes, known as “SALT” — was added to the 2017 legislation to help fund other tax breaks. That provision will also expire after 2025.
Before the change, filers who itemized tax breaks could claim an unlimited deduction for SALT. But the so-called alternative minimum tax reduced the benefit for some higher earners. 
Repealing the SALT cap has been a priority for certain lawmakers from high-tax states like California, New Jersey and New York. In a policy reversal, Trump has also voiced support for a more generous SALT deduction. 
“If you raise the cap, the people who benefit the most are going to be upper-middle-income,” since lower earners typically don’t itemize tax deductions, Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, previously told CNBC.
The SALT deduction was absent from the preliminary House Ways and Means text. But Congressional negotiations are ongoing.

Trump’s campaign ideas

On top of TCJA extensions, Trump has also recently renewed calls for additional tax breaks he pitched on the campaign trail, including no tax on tips, tax-free overtime pay and tax-exempt Social Security benefits. These ideas were not yet included in the early House Ways and Means text.  
However, there are lingering questions about the specifics of these provisions, including possible guardrails to prevent abuse, experts say.
For example, you could see a questionable “reclassification of income” to qualify for no tax on tips or overtime pay, said Muresianu. “But there are ways you could mitigate the damage.” More

Thomas Fuller | Lightrocket | Getty Images

Company: Charles River Laboratories (CRL)
Business: Charles River Laboratories is an early-stage contract research company. The company engages in laboratory animal medicine and science (research model technologies), and it has developed a portfolio of discovery and safety assessment services. The company operates in three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing).
Stock Market Value: $6.82B ($138.79 per share)

Stock chart icon

Charles River Laboratories in the past 12 months

Activist: Elliott Investment Management

Ownership: 12.5%+
Average Cost: n/a
Activist Commentary: Elliott is a very successful and astute activist investor. The firm’s team includes analysts from leading tech private equity firms, engineers, operating partners – former technology CEOs and COOs. When evaluating an investment, Elliott also hires specialty and general management consultants, expert cost analysts and industry specialists. The firm often watches companies for many years before investing and has an extensive stable of impressive board candidates. Elliott has historically focused on strategic activism in the technology sector and has been very successful with that strategy. However, over the past several years Elliott’s activism group has grown, and the firm has been doing a lot more governance-oriented activism and creating value from a board level at a much larger breadth of companies.
What’s happening
On May 6, Elliott and Charles River Laboratories entered into a cooperation agreement in which four incumbent directors won’t seek re-election and the following four individuals will be appointed as directors: Steven Barg (global head of engagement at Elliott) and Mark Enyedy (former president and CEO of ImmunoGen) (both are known as the “investor designated directors”), along with Paul Graves (CEO of Rio Tinto Lithium) and Abraham Ceesay (CEO of Rapport Therapeutics). Additionally, Charles River agreed to appoint at least one investor designated director to each of the strategic committee, the compensation committee, and the corporate governance and nominating committee. Finally, Charles River agreed that the strategic committee will conduct a strategic review, during which the investor designated directors will be appointed to the strategic committee.
Behind the scenes
Charles River is involved in supporting early-stage drug research and development. The company discovers its own drug candidates, determines whether they have potential to be effective and whether they’re safe enough for human trials. Charles River operates through three segments: Research Models and Services (20.48% of revenue), Discovery and Safety Assessment (60.52%), and Manufacturing Solutions (19.00%). Charles River is by far the leader in pre-clinical development, with each segment of its business occupying 35% to upward of 40% market share, which is generally twice the size of the No. 2 player. The business has grown organically for years while they have simultaneously consolidated the industry through accretive and smart mergers and acquisitions. These major growth trends continued through Covid-19, which, like it did for many peers, supercharged the business as funding flooded in fueled by a growing interest in investing in new and novel science. As a result, Charles River traded as high as $460 per share in the fall of 2021.

Since then, challenges have begun to emerge. Post-pandemic, there was a pullback in pre-clinical research demand. While this pullback was more of a normalization, it still decreased the amount of funding flowing in and caused large pharma companies to reevaluate and reprioritize their pipelines, which weighed on Charles River and the sector broadly. The second challenge has been the current headlines coming out of the U.S. Food and Drug Administration and the current administration regarding the future of animal testing. Charles River’s business in part relies on animal testing and this momentum away from that has weighed on the share price. Because of these factors, the company’s shares have slumped, down 50.95%, 52.30% and 19.66% over the past 1-,3- and 5-year periods, respectively.
Amid these headwinds, Elliott Investment Management has entered into a cooperation agreement with Charles River pursuant to which the company agreed to appoint four directors following the 2025 annual meeting on May 20, including Steven Barg, the global head of engagement at Elliott. Additionally, the company agreed to initiate a strategic review. This is an exceptionally high-quality business and, as a result, there are numerous paths to shareholder value. The first does not involve operations, capital allocation, governance or any other direct function of Charles River: It is a simple reconciliation of value. The market has likely overreacted to the company’s challenges, specifically regarding the uncertainty around animal testing. While the scrutiny the industry is facing is real, it has been real for decades. But despite what headlines may imply, this transition away from animal testing is not happening overnight, rather it is going to continue to be a gradual process over decades. Not only has Charles River been aware of this shift, but it has also been at the forefront of developing alternative methods. Over the last 10 years, the number of basic mice Charles River uses in testing has been cut in half. With Charles River remaining the industry’s one-stop shop for preclinical research, leading in both animal-based and alternative solutions, this should not have the effect on them that recent market reactions have suggested.
Beyond this natural recovery, there are many ways to create value through the strategic review process, which seems like a focus for Elliott given the term of the settlement. First, an evaluation of the Manufacturing Solutions business. This segment is a hidden gem: an exceptionally high-quality business with low capital intensity that has grown revenue organically by over 10% annually for 20 years. However, it’s quite different from the core preclinical business as it’s primarily exposed to commercial manufacturing. As a result, while a consistently strong asset, Manufacturing Solutions has been out of focus for both Charles River and the market. This is exactly the type of business larger life sciences companies like Thermo Fisher, Denna and KGA would want to acquire and could fetch, at minimum, a transaction multiple in the high teens, but could likely be north of 20-times earnings before interest, taxes, depreciation and amortization given the clear cost and commercial synergies for a strategic acquirer. A sale at these levels would imply a valuation for Manufacturing Solutions at approximately half of Charles River’s current market cap, despite only representing 20% of the company’s earning power. If there were a sale of Manufacturing Solutions, it would leave behind the core preclinical business, which is in the early innings of a natural recovery and remains the clear market leader. A sale of Manufacturing Solutions at these levels would imply an approximately 5-times valuation for the remaining business, which should eventually re-rate to higher peer multiples. Proceeds from the sale could then be used to continue buying back shares at these levels and potential investments in the core business.
This brings us to the second opportunity to create value through a strategic review: the acquisition of smaller competitors. Management has historically done a great job of conducting value-accretive M&A, such as the acquisitions of Explora BioLabs and ChanTest. Moreover, the fact that Barg is going on the board is an indicator to us that strategic acquisitions will be explored. Elliott does not put one of its principals on boards unless the firm believes he or she has a relevant skillset that an independent candidate does not have. While Barg has various skills and experiences, including board representation at pharma companies like Cardinal Health and Catalent, having access to him and the Elliott team to evaluate potential acquisitions with an eye toward shareholder value is one of the largest benefits of having a hedge fund investor on the board.
Lastly, the board could explore a sale of the whole company. While this is likely not the main goal, it should not be ruled out given the business’ quality and strategic value. There is arguably no single business more mission critical to drug development globally than Charles River, having its hand in over 80% of new drugs that were approved by the FDA in the last five years, working with every large pharma company and almost every large biotech company. This reach and control make Charles River an extremely valuable strategic asset. Moreover, the company’s high cash flow generation and depreciated share price also makes it appealing to potential financial acquirers. As we have seen before, one of those financial acquirers could be Elliott. The firm is already the company’s largest shareholder with at least a 12.5% economic ownership, and it has a private equity arm that has acquired companies like this before. In fact, Elliott, along with Patient Square Capital and Veritas Capital, acquired Syneos Health in 2023. This is not a primary thesis for them, but it is a powerful and enviable tool for an activist to have the capability to acquire the company if changes are not made in the public market.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

President Donald Trump is eyeing a tax hike on the wealthiest Americans to fund his spending and tax package.
The proposal would revert the top 37% income tax rate to 39.6% for individuals making $2.5 million or more per year.
However, the idea doesn’t have support from Republican members of Congress.

U.S. President Donald Trump points as he attends the annual Friends of Ireland luncheon hosted by U.S. House of Representatives Speaker Mike Johnson (R-LA) at the U.S. Capitol in Washington, D.C., U.S., March 12, 2025. 
Evelyn Hockstein | Reuters

As Republicans wrestle with funding their massive spending and tax package, President Donald Trump is eyeing a possible tax hike for the highest earners.
The idea, which lacks Republican support, could return the top federal income tax rate to 2017 levels for some of the wealthiest Americans.  

In a phone call Thursday, NBC reported, Trump pressed House Speaker Mike Johnson, R-La., to raise the top income tax rate on the wealthiest Americans and close the so-called carried interest loophole. The proposal would revert the 37% rate to 39.6% for individuals making $2.5 million or more per year, to help preserve Medicaid and tax cuts for everyday Americans.
More from Personal Finance:How many consumers are preparing for an economic hitWhy Americans think real estate, gold are the best long-term investmentsTrump tariffs sparked ‘uptick’ in I bond interest, advisor says. What to know
Trump on Friday expressed openness to the tax hike on the wealthiest Americans in a Truth Social post, noting he would “graciously accept” the tax increase to “help the lower and middle income workers.”
“Republicans should probably not do it, but I’m OK if they do!!!” he wrote.
Enacted by Trump, the Tax Cuts and Jobs Act, or TCJA, of 2017 created sweeping tax breaks for individuals and businesses. Most will sunset after 2025 without an extension from Congress.

The TCJA temporarily dropped the highest income tax rate from 39.6% to 37%. For 2025, the 37% rate kicks in for single filers once taxable income exceeds $626,350.    

How Trump’s idea compares to historic rates

If signed into law, a top 39.6% income tax rate would return wealthy taxpayers to pre-TCJA levels from 2013 to 2017. Before that, the top rate was 35% during most of the early 2000s, according to data collected by the Tax Policy Center. The highest top rate was 94% from 1944-1945.
However, this data doesn’t reflect how much income was subject to top rates or the value of standard and itemized deductions during these periods, the organization noted.

Trump’s tax package faces a ‘math issue’

With control of Congress, Republicans can pass legislation through a process known as “reconciliation,” which can sidestep the Senate filibuster with a simple majority. 
However, there’s still disagreement about what should be included in the multi-trillion-dollar bill and how to finance it. 
Lawmakers face “a pretty simple math issue,” with many proposals not covering the cost, Yale Budget Lab president and law professor Natasha Sarin told CNBC’s “Squawk Box” on Friday.   
“We’re not getting anywhere close to the type of revenue increases we need,” she said. More

Consumers are seemingly willing to try all sorts of financial quick fixes in the face of a potential economic slowdown.
Experts say there is no substitute for basic budgeting.

Americans have been worried about being able to maintain their standard of living since inflation first began to spike in 2021. With renewed cost concerns after President Donald Trump implemented his tariff agenda, many people are prepared to do something about it.
A whopping 83% of consumers said that if their financial situation worsens in the coming months, they will strongly consider cutting back on their non-essential spending, according to a new study by Intuit Credit Karma, which polled more than 2,000 U.S. adults in April.  

On TikTok, money saving hacks, with hashtags such as no buy, slow buy, low buy and underconsumption, have skyrocketed in popularity, especially among young adults. All are aimed at making the most of what you already have and resisting the temptation to buy more stuff, or even anything at all.

How no buy, low buy and slow buy challenges work

“No buy 2025” encourages shoppers to cut out all non-essential purchases for the year, including clothing, books, electronics and entertainment. Alternatively, low buy and slow buy advocate for a more mindful approach to buying decisions, such as following “the 48-hour rule” before making any discretionary purchases and limiting purchases altogether. The goal is to break the habit of overspending — or “doom spending” — as fears of a recession rise.
Recent data from H&R Block’s Spruce also found that 68% of Generation Z consumers reported being influenced by social media finance trends, with over one-third of them looking specifically to social media for financial knowledge. (America’s young adults are also increasingly turning to social media to express their financial dissatisfaction, making a joke of so-called recession indicators.)

Why savings challenges are so popular

To be sure, Americans are feeling the pain of higher prices, with various reports showing many have exhausted their savings and have been leaning on credit cards to make ends meet.
With sweeping U.S. tariffs now going into effect, concern is heightened about the rising cost of goods and making ends meet, especially as the economy shows signs of contracting.

“Consumers are going to have to pay for the increase in prices these tariffs are going to cause and there is no way around it,” said Eugenio Aleman, chief economist at Raymond James. “The alternative is to reduce consumption, especially in discretionary items.”
More from Personal Finance:Is now a good time to buy gold?Why tariffs will hurt low income Americans more than richWhat stagflation risks mean for your money
A survey by Gallup last month found that inflation, housing costs and lack of money are the most commonly cited financial challenges by U.S. adults.
According to the poll, which was conducted during a period of extreme market volatility after the Trump administration announced new tariffs on most U.S. trading partners, a record 53% of consumers said their financial situation was getting worse, while just 38% said it was getting better. Additionally, 57% worried about not being able to maintain their standard of living.

A separate report by Bankrate found that 43% of adults said money now negatively affects their mental health, at least occasionally, causing anxiety, stress, worrisome thoughts, loss of sleep and depression.
“Tariffs, inflation, higher interest rates and a recession are all forces that Americans can’t prevent, no matter how much they want to,” Sarah Foster, Bankrate’s economic analyst, said in an email. “Taking proactive steps to manage your finances can provide a sense of stability and security.”

A better way to improve your finances

Financial experts say TikTok’s latest microtrends can provide a short-term boost to help reach some savings goals, however, there is no substitute for practicing good long-term habits.
“Ignore what others are doing with their money,” said Daniel Milan, managing partner of Cornerstone Financial Services in Southfield, Michigan. “That to me is a very foundational tenet for any household.”

Milan says financial planning starts with a budget. “People don’t like that word,” he said. But rather than jumping on the latest TikTok trend, “sit down and pencil out what you actually are spending.”
Milan recommends flagging excess expenses that can be cut, considering which are “wants” or “needs.” Milan says he did this himself at the start of the year after getting married, and was able to cut out some recurring bills as well as subscription services that overlapped with his wife’s — to the tune of $800 a month.
“That type of exercise can be extraordinarily powerful from a cash flow perspective,” he said.
Subscribe to CNBC on YouTube. More

A signed book auction at the Berkshire Hathaway annual meeting raised more than $1.3 million for a local charity focused on the homeless community in Omaha.
CEO Warren Buffett matched every dollar donated through the auction.

The Berkshire Hathaway 60th Anniversary book seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

OMAHA, Neb. — Transpacific wire transfers. Checks arriving unexpectedly in the mail. People standing at the ready, poised to shell out tens of thousands of dollars.
Such was the scene in the months leading up to and during Berkshire Hathaway’s annual meeting last weekend. The chance to obtain memorabilia signed by legendary CEO Warren Buffett sent shareholders on a mad dash to participate in a silent auction during what turned out to be a monumental gathering.

In true Buffett fashion, it was all for a local charity serving his native Omaha.
Attendees of the annual meeting could buy an exclusive anniversary book titled “60 Years of Berkshire Hathaway” on site. However, 18 copies signed by Buffett and author Carrie Sova, were only available via an auction to benefit Stephen Center, a shelter serving the Nebraska city where Berkshire is headquartered.
Buffett pledged to match every dollar raised for the organization, which offers housing and addiction recovery programs. With the 94-year-old’s contribution, the event raised more than $1.3 million, according to Chris Knauf, CEO of the Stephen Center.
“There are truly no words that can adequately express mine and our gratitude for this incredible generosity,” Knauf told CNBC in an interview. “It’s just phenomenal.”
In the first phase, eight books were auctioned online ahead of the meeting, with the highest bid $100,000. Then, on Friday and Saturday, 10 books were auctioned during the “Berkshire Bazaar of Bargains” event. More than 50 bids came in, with some as high as $60,000.

The book took on an unexpected significance after Buffett shocked the investing world during the event with a surprise announcement that he planned to step down from the CEO role at year-end.

Warren Buffett does a walkthrough of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
David A. Grogen | CNBC

Knauf said two additional signed books were set aside for donors who were friends with the late Charlie Munger. Buffett’s longtime business partner was featured prominently in the publication. That brought the total number of signed copies supporting the Stephen Center to 20.
One of the winning bidders was Matthew Rodriguez, a 43-year-old real estate professional. Rodriguez said he monitored the online auction’s leaderboard, then pulled the trigger with a $50,000 bid about 15 minutes before it closed.
“It’s going to be a pretty priceless artifact in my library,” Rodriguez said.
As a self-proclaimed “fan boy” of Buffett, Rodriguez said he was excited to support an organization with the billionaire investor’s stamp of approval and liked that every dollar he could contribute would be matched. Because Rodriguez lives in Omaha, he was also familiar with the Stephen Center’s local impact.

Wires from Singapore

Rodriguez was one of several donors to quickly reached out to the center after Buffett first announced the initiative in the company’s annual shareholder letter released in February. The “Oracle of Omaha” shared details about the book and the plan to fundraise for the local group in the letter, but did not explicitly lay out the steps for obtaining a signed edition.
Before shareholders realized there was an auction, some sent checks directly to the charity in case it ended up being first-come, first-serve, Knauf said. When Stephen Center representatives called to let them know the process, some who weren’t planning on coming to the meeting told them to keep the money as donations, citing their affection for Buffett, he said.
“What Mr. Buffett has done for me, what Mr. Buffett has done for my family, is immeasurable,” Knauf recalled hearing in these conversations with shareholders. “If the least we can do is write a check for this charity, then we want to do it.”
The Stephen Center ended up collecting more than $45,000 from donors tied to Buffett and the annual meeting outside of the auction. Beyond monetary support, Knauf said he expects Buffett’s selection of the center to help spread awareness of the role of shelters play in local communities.
“We are a homeless shelter and addiction recovery campus in Omaha, Nebraska,” Knauf said. “Did I ever think that we would be doing wire transfers from Singapore? I did not.”

Shareholders enter the venue on the day of the Berkshire Hathaway Inc annual shareholders’ meeting, in Omaha, Nebraska, U.S., May 3, 2025.
Brendan McDermid | Reuters

Helping the homeless

A portion of the funds will help support a renovation of the space housing an addiction recovery program, Knauf said. Other donations will go toward construction of a women and children’s center, he said.
These plans come as the organization tries to aid the growing community of unhoused people in Omaha, Knauf said. He pointed to data from an annual count showing the homeless population has grown nearly 10% from last year, with what he called a particularly substantial spike in families, children and senior citizens.
For shareholder Jay Ji, this mission hit close to home after his family experienced economic troubles as a child. The investment manager placed a winning bid of around $20,150 and toured the Stephen Center to see first-hand where the money would go.
“I want to just do my part,” the 43-year-old said. “I’m more determined to try to find ways to to make sure that … fewer families will experience those kind of hardships, and whenever possible, to deploy some resources to help.”
In addition to the signed books, Buffett said during his famous annual question-and-answer session that Berkshire sold around 8,000 copies of the anniversary book at the meeting.

A legacy of giving back

Also new to this year’s gathering was a gigantic claw crane, which shareholders could pay $10 for a chance to win prizes tied to Berkshire’s holding companies. Proceeds from the crane benefit Hope Center for Kids, an Omaha-based organization providing after-school and summer care for children.
Both efforts underscore Buffett’s decades-long emphasis on charitable giving. For more than two decades, Buffett had auctioned off a private lunch to benefit San Francisco-based nonprofit Glide. The final winner of this event in 2022 shelled out more than $19 million. Taken together, the Berkshire CEO’s 21 lunches collectively raised more than $53 million.

The Pilot truck simulator seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Buffett has long pledged to give 99% of his personal fortune to charity. He argued against creating family wealth dynasties by leaving colossal inheritances in a letter last year.
“I’ve never wished to create a dynasty or pursue any plan that extended beyond the children,” Buffett wrote in the letter. “I know the three well and trust them completely. Future generations are another matter. Who can foresee the priorities, intelligence and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?”

Don’t miss these insights from CNBC PRO More