HAPPY THURSDAY TO THE STREET
The AI chipmaker opened at $350 against a $185 offer price and rocketed past a $100B market cap on day one. All told, the firm raised $5.55B, finally giving bankers something to celebrate after years of IPO drought.
With OpenAI and SpaceX waiting in the wings, this party may just be getting started.
🟩 | US stocks rose today, buoyed again by strong tech earnings. The DJIA clawed its way back over 50,000 for the first time since February.
📈 | One Notable Gainer: Klarna (KLAR) rallied after Q1 revenue topped estimates at $1B.
📉 | One Notable Decliner: Doximity (DOCS) plummeted on weak Q4 and full-year revenue guidance.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHAT WILL TRUMP ANNOUNCE AS PART OF HIS CHINA TRIP?
Trump told Fox News that Xi agreed to buy 200 Boeing (BA) jets, smaller than the 500-plane order Jefferies (JEF) had penciled in. Boeing shares slid into the red on the news, because that's what happens when expectations get ahead of reality.
Meanwhile, Kalshi traders are still pricing in the rest of the wish list. AI safety channel? US soybeans or oil purchases? We know Americans will go in for “Made in China”. The remaining question is, will China go in for “Made in the USA”?
Market Movers
NVIDIA, BIOGEN, CISCO SYSTEMS
📈 | Nvidia (NVDA) rose on US clearance to sell H200 chips to Chinese firms.
📉 | Biogen (BIIB) fell despite advancing its Alzheimer's drug to Phase 3.
📈 | Cisco Systems (CSCO) crushed Q3 results and raised guidance.
📉 | Jack in the Box (JACK) missed Q2 earnings and revenue estimates.
Tomorrow's Trade Idea, Today
BREWING UP A BUY CASE
Stock Spotlight
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Pouring On Praise
TD Cowen analyst Andrew Charles is doubling down on Starbucks.
Charles sees several tangible drivers pointing to positive sales revisions in what he calls a strong category backdrop, alongside margin recovery from labor investments, easing input costs, and incentivized non-core cost cuts.
Back to Starbucks
The chain's "Back to Starbucks" turnaround plan—an overhaul of marketing, menu, and customer loyalty designed to revive a two-year sales slump—is gaining traction.
Charles expects same-store sales to climb 4% in fiscal 2028, well ahead of the 3.4% Street consensus.
Per the analyst, management is just getting started on revitalizing North America.
A Wall Street Half-Caf
TD Cowen's call cuts against the grain. Of the 40 analysts covering Starbucks, less than half rate it a Buy or Strong Buy, while a slim majority stay on Hold.
Shares popped today and are firmly in the green year to date, with the stock on pace for its first annual gain since 2021.
Sometimes the best ideas are the ones still brewing.
Do you own any shares of Starbucks (SBUX)?
OVERHEARD ON THE STREET
🪙 | The Clarity Act cleared the Senate Banking Committee 15-9, sending bitcoin-linked stocks Coinbase (COIN), Strategy (MSTR), and Robinhood (HOOD) higher.
Before July: 23%
Before August: 65%
Before 2027: 75%
🏛️ | Federal Reserve Governor Stephen Miran resigned, throwing his support behind incoming Chair Kevin Warsh.
🛒 | Retail sales growth slowed to 0.5% in April from a revised 1.6% in March, as higher gas prices crimped nonessentials.
🛢️ | Treasury Secretary Scott Bessent said China will work with the US behind the scenes to help reopen the Strait of Hormuz.
🍎 | Security researchers used Anthropic's Mythos AI to find two memory vulnerabilities in Apple's (AAPL) MacOS.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Zebra Technologies (ZBRA)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “Just one more in the herd of tech stocks.”
👀 No, but I’m interested — “An interesting market niche worth further research particularly as they command close to 80% share of this space.”
