HAPPY WEDNESDAY TO THE STREET
Americans ditched the gym for the basement, and Wall Street is sprinting after them.
There was a time when it seemed like the home fitness craze was just a pandemic fad. But after Peloton (PTON) rallied more than 400% last year, tech and athletic firms alike are back in on the trend.
Lululemon (LULU) dropped $500M on Mirror. Apple (AAPL) rolled out a $9.99 workout subscription. Meanwhile, Gold's Gym and 24 Hour Fitness filed for bankruptcy. Multinational corporation, meet spare bedrooms.
🟩 | US stocks bounced back from yesterday’s rout, lifted by moderating Treasury yields and rise in Nvidia (NVDA) shares as the G20 summit kicks off in North Carolina.
📈 | One Notable Gainer: GitLab (GTLB) rallied on an earnings beat and upbeat full-year guidance.
📉 | One Notable Decliner: Credo Technology (CRDO) slid after gross margin missed estimates.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
PALO ALTO, AST, PG&E
📉 | Palo Alto Networks (PANW) sank after a better-than-expected fiscal Q4.
📈 | AST SpaceMobile (ASTS) jumped after Berenberg initiated coverage at Buy with a $92 target.
📉 | PG&E (PCG) fell again after opening a strategic review and deferring $2B in capital spending.
📈 | Eos Energy Enterprises (EOSE) climbed on a deal to power Google (GOOGL) data centers with solar and storage.
📉 | MongoDB (MDB) dropped despite beating on both lines and guiding higher.
Tomorrow's Trade Idea, Today
DELL OR HIGH WATER
Stock Spotlight
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Hardware Goes Hard
Wall Street's favorite AI hardware trade just picked up another vote of confidence.
Analyst Wamsi Mohan reiterated his Buy rating and raised his price target on Dell Technologies after the company beat on both lines and lifted full-year guidance.
Short Supply, Long Runway
Mohan says component constraints and customer data center readiness are stretching visibility further out.
He likes Dell's spread across servers, storage and PCs, which captures AI budgets from NeoClouds to enterprise to sovereign buyers to the edge.
Citi (C) analyst Asiya Merchant is also bullish on the stock. The analyst credits engineering depth, financing and supply chain scale for the share gains.
Street Cred
Of the 28 analysts covering Dell, 20 rate it Buy or Strong Buy. The stock is deep in the green this year, but the Street is still raising numbers.
Not bad for a company Apple was supposed to kill 20 years ago.
Do you own any shares of Dell Technologies (DELL)?
OVERHEARD ON THE STREET
🛢️ Chevron (CVX) will invest over $7B expanding in Venezuela, aiming to double production to 600K barrels a day.
🥪 A federal judge ruled JM Smucker's (SJM) Uncrustables trademark suit against Trader Joe's can proceed.
✈️ Southwest Airlines (LUV) is building at least 11 airport lounges, gated behind a new premium credit card.
💰 Beyond today's Top Story, Michael Dell's foundation began depositing $250 grants into eligible Trump Accounts this week.
🌐 AI regulation, data center backlash, and coming chip tariffs dominated the G20 Innovation Ministerial in Chapel Hill.
TUESDAY'S POLL RESULTS
Do you own any shares of Howmet Aerospace (HWM)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “And, may be adding.”
🐻 Nope, not interested — “Now that SpaceX is making its own turbine power generators, I think that I will take SpaceX, but I am still waiting for it to drop to $100.00 first.”
