HAPPY TUESDAY TO THE STREET.
Forget combo meals. The drink is the draw. Chains are bulking up beverage menus (especially cold and custom) as younger customers hunt for pick-me-ups over pair-with-food sips. Think nitro, energy, and candy-bar lattes as far as the eye can see. If it clinks, it sells.
🟨 | US stocks stumbled in afternoon trade as a tech selloff dragged the S&P 500 and Nasdaq lower, while the Dow eked out a tiny gain after briefly tagging a record.
📈 | One Notable Gainer: Intel $INTC ( ▼ 0.82% ) jumped on SoftBank $2B investment at $23/share, amid reports the U.S. government may also take a stake.
📉 | One Notable Decliner: Viking Therapeutics $VKTX ( ▲ 0.74% ) plunged as Phase 2 obesity pill shows higher side effects; 20% dropout despite 12% weight loss in 13 weeks.
— Brooks & Cas
Sponsored by Money
Many of us dream about growing old comfortably in the home we love. But as care needs increase, so do the costs, often reaching over $5,000 a month for in-home assistance. If you’re 62 or older, a reverse mortgage can offer a practical solution by turning home equity into tax-free cash (without giving up ownership or moving out). That means you can stay in familiar surroundings, get the care you need, and preserve your independence – all on your terms.
To qualify for a reverse mortgage, you must meet the following requirements:
You must be at least 62 years old.
You must own your home outright or have a low remaining mortgage balance that can be paid off at closing with reverse mortgage proceeds.
The home must be your primary residence (not a second home or rental property).
Eligible properties include single-family homes, FHA-approved condos, townhomes, and certain multi-unit properties (up to 4 units, as long as you live in one).
You must demonstrate the ability to pay property taxes, homeowners insurance, and maintenance costs.
You must complete a HUD-approved reverse mortgage counseling session to ensure you understand the loan terms and implications.
STOCK HEATMAPS
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
Market Movers
NVIDIA, AMD, PALANTIR
$NVDA ( ▲ 1.09% ) Nvidia is the most underowned megacap stock, Morgan Stanley says (YF)
$AMD ( ▲ 2.0% ) What's Going On With AMD Stock Tuesday? (Benzinga)
$PLTR ( ▲ 2.35% ) Palantir Stock Tumbles after Short-Selling Firm Citron Says It’s No Match for OpenAI’s Valuation (TipRanks)
$HOOD ( ▲ 0.8% ) Robinhood launches NFL and college football prediction marketsadline (CNBC)
$UNH ( ▼ 1.45% ) Berkshire Hathaway Bought UnitedHealth Stock. Should You Follow Warren Buffett’s Lead? (Barron’s)
OVERHEARD ON THE STREET
Axios: Nexstar $NXST ( ▼ 1.41% ) and Tegna $TGNA ( ▼ 1.08% ) weigh a $6B broadcast merger that would create a local-TV giant, pending regulators.
Forbes: Home Depot $HD ( ▼ 0.33% ) misses earnings and warns of tariff-driven price changes.
QZ: Walmart $WMT ( ▼ 0.02% ) faces FDA warning over ‘radioactive shrimp’, raising import and safety questions.
USA Today: Tesla $TSLA ( ▲ 1.46% ) plans a longer-range Model Y for China as Musk seeks fresh demand.
CNBC: Apple $AAPL ( ▲ 0.95% ) shifts iPhone production toward India amid Russia export curbs and Trump trade pressures.
Tomorrow's Trade Idea, Today
Food Fight
Instacart, DoorDash Sell Off Over Amazon’s Latest Move
Amazon $AMZN ( ▲ 0.34% )’s announcement last Wednesday that it’s bringing same-day delivery of perishable items to 1,000 cities sent DoorDash $DASH ( ▲ 1.43% ) and Maplebear $CART ( ▲ 0.52% ) tumbling amid fears of losing market share in the same-day grocery delivery space.
Maplebear, better known as Instacart, fell 14% on the news, while DoorDash shares dipped 4%. Even Walmart $WMT ( ▼ 0.02% ), which offers same-day grocery delivery, fell by over 3% after Amazon’s announcement.
Analyst Stands By $63 Price Target
But Bernstein $AB ( ▼ 1.07% ) analyst Zhihan Ma says that the selling is overblown.
Standing by her price target of $63/share for Instacart, which would imply a potential upside of 35% from Tuesday’s close, she pointed to several ways for Instacart and DoorDash to maintain market share.
From offering free-delivery thresholds to customers, to nurturing relationships and selection advantages with retailers like Kroger $KR ( ▼ 1.64% ) and Costco $COST ( ▼ 0.03% ), third-party delivery services have several ways to win the battle for market share. Ma laid out Instacart’s numerous advantages, from a wide variety of merchant selection, quick delivery windows, and a cost-effective, gig worker model.
Other analysts are similarly bullish on Instacart, with projections that shares could rise about 34%, on average.
Remembering Grocers’ Last Amazon Scare
In 2017, Amazon’s purchase of Whole Foods sent Kroger shares spiraling from $31 to $22 the day the deal was announced, on fears that Amazon was encroaching on its territory.
But the company responded with resolve, launching its “Kroger Ship” deliveries service a year later and partnering with Instacart to bring “Kroger Delivery Now” with 30-minute delivery times. It also expanded its free loyalty program in a bid to attract customers and play offense.
Interestingly, since Amazon’s June 16, 2017 announcement of its Whole Foods purchase, shares have returned roughly 360%. But Kroger shares have been no slouch either, returning 274% in that time frame. It’s a reminder that, despite these market-moving headlines, the same-day delivery food space might just be big enough for everybody.
Sponsored by Money
Many of us dream about growing old comfortably in the home we love. But as care needs increase, so do the costs, often reaching over $5,000 a month for in-home assistance. If you’re 62 or older, a reverse mortgage can offer a practical solution by turning home equity into tax-free cash (without giving up ownership or moving out). That means you can stay in familiar surroundings, get the care you need, and preserve your independence – all on your terms.
To qualify for a reverse mortgage, you must meet the following requirements:
You must be at least 62 years old.
You must own your home outright or have a low remaining mortgage balance that can be paid off at closing with reverse mortgage proceeds.
The home must be your primary residence (not a second home or rental property).
Eligible properties include single-family homes, FHA-approved condos, townhomes, and certain multi-unit properties (up to 4 units, as long as you live in one).
You must demonstrate the ability to pay property taxes, homeowners insurance, and maintenance costs.
You must complete a HUD-approved reverse mortgage counseling session to ensure you understand the loan terms and implications.
ON OUR RADAR
Reuters: Air Canada’s labor pact may reshape crew pay across North American airlines.
CNBC: The crypto market today steadies as Bitcoin and Ether edge higher after recent swings.
QZ: FTC sues reseller over concert ticket price-gouging, targeting sales for Swift and Springsteen.
CNBC: A new poll finds most Americans fear AI displacing workers permanently.
QZ: Wyoming will issue the first state-backed U.S. stablecoin, opening a new front in crypto policy.
MONDAY POLL RESULTS
Are you bullish or bearish on McGraw-Hill (MH) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
