HAPPY THURSDAY TO THE STREET
Nvidia (NVDA) beat on earnings, revenue, and guidance four quarters running, yet sold off the next day every time… with one notable exception. Today.
The AI leader surged nearly 10% in the wake of yesterday’s report after the bell. Why? Well, those previous quarters may have looked good on paper, but they didn’t actually answer the question worrying investors: who keeps buying once this year's buildout is paid for.
Last night it answered. The firm guided to 70% revenue growth in fiscal 2028 against the 44% analysts had modeled, put top-five hyperscaler capex at $1.3T next year versus $800B in 2026, and pointed to Amazon's (AMZN) order for 2M GPUs. A blockbuster quarter is one thing. A blockbuster few years is another.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
CELSIUS, CROWDSTRIKE, MODERNA
📉 | Celsius Holdings (CELH) was downgraded to Hold at Deutsche Bank on mounting fundamental challenges.
📈 | CrowdStrike (CRWD) beat on Q2 revenue and earnings and guided full-year profit above estimates.
📉 | Hormel Foods (HRL) issued full-year earnings and revenue guidance below Street estimates.
📈 | Dollar General (DG) raised full-year profit guidance to $7.80 to $8 per share.
📉 | Moderna (MRNA) proposed a private placement of $2B in convertible senior notes.
Tomorrow's Trade Idea, Today
CRM DE LA CRM
Stock Spotlight
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Cloud Cover
Goldman Sachs analyst Gabriela Borges likes what Salesforce has been buying.
She rates the software giant a Buy, arguing it is in the early innings of proving both that its AI products work and that customers will pay for them.
Front Office Land Grab
Borges sees Salesforce capturing value across several avenues in the front office stack, even as rivals crowd in.
Its earnings today helped her case. Adjusted earnings of $5.90 per share blew past the $3.27 analysts polled by LSEG expected, aided by a $2.6B gain on strategic investments, including a stake in Anthropic.
The stock popped more than 20% today in the wake of the upgrade, but Goldman’s price target still suggest more room to run.
The Crowd Agrees
Of the 54 analysts covering Salesforce, 40 rate it a Buy or Strong Buy. Despite today’s sharp gain, shares remain slightly in the red YTD.
In other words, the market’s response to these strong results simply returned the stock to its baseline. As to where it can go from here, the crowd seems to agree that the cloud’s the limit.
Do you own any shares of Salesforce (CRM)?
OVERHEARD ON THE STREET
🏛️ Federal Reserve chair Kevin Warsh speaks Friday at Jackson Hole, with a growing number of governors publicly stating now is the time to hike.
🇨🇦 Canada is adding $60B in defense funding over five years, and the recent tariff turmoil has it steering contracts to domestic suppliers over US firms.
🔐 OpenAI, Anthropic, Microsoft (MSFT) and 113 others signed a letter urging stronger cyber defenses.
🎲 Donald Trump Jr told Republican state attorneys general not to go after prediction markets, the NYT reported.
💅 Marriott (MAR) and Carl's Jr are co-opting looksmaxxing slang, a trend born in extremist male grooming forums.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Liberty Formula One (FWONK)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Never sell a champ!
🐻 Nope, not interested — “They locked out a lot of viewers by going to paid tv will not expand the brand this way.”
👀 No, but I’m interested — “FWONK could be one of those wonky things, yet, it is truly American. Didn't watch any races until this year. The VIZIO Watch Free gets a race every now and then — just need to have the time to watch it.”
