HAPPY TUESDAY TO THE STREET
Take-Two Interactive’s (TTWO) Grand Theft Auto VI will hit shelves in November, with preorders now open. One catch: the consoles it runs on keep getting pricier.
The PS5 (SONY) now costs $650, after back-to-back hikes. Meanwhile, Microsoft’s (MSFT) Xbox Series X tops out at a whopping $800. At the same time, the former faces ongoing online backlash, after revealing plans to sunset physical releases with the launch of its next-gen console, shifting to a digital-only model.
In other words, the ultimate system seller is finally set to arrive. Trouble is, the systems themselves have never been a tougher sell.
🟩 | US stocks rose today, lifted by chipmakers, as yields continued to slide.
📈 | One Notable Gainer: Moderna (MRNA) rallied (again) after Wolfe Research upgraded the stock on its cancer vaccine momentum.
📉 | One Notable Decliner: Dick’s Sporting Goods (DKS) plunged nearly 30% after revenue missed, due to a challenging footwear market.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
AMD, MARVELL, KURA
📈 | Marvell Technology (MRVL) jumped after two Wall Street firms raised their price targets.
📈 | Kura Oncology (KURA) climbed after its CEO disclosed buying 100K shares.
📈 | Navitas Semiconductor (NVTS) jumped on a $232.8M deal to power Claros.
Tomorrow's Trade Idea, Today
DO I DT-ECT UPSIDE?
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Overlooked & Overweight
Wall Street thinks it has found the next sector worth watching.
Morgan Stanley analyst Sanjit Singh upgraded Dynatrace to Overweight, calling out the healthiest demand in the oft-overlooked observability market since 2022.
Boom With a View
Observability is the corner of AI that tracks how models, agents, and the rest of the stack play together. And, according to the bank, it’s entering its biggest boom in roughly four years.
Singh points to a three-part tailwind: the strongest public cloud growth in years, an explosion of new software development, and early returns on enterprise AI spending, all feeding a multiyear build cycle.
Morgan Stanley expects durable growth of 20% or more and margin expansion over the next two years as Dynatrace accelerates into that demand.
DT Time
Most of the Street observes the same signs. Of the 37 analysts covering the stock, 26 rate it a Buy or Strong Buy, and shares are comfortably in the green year to date.
Market observers ought to know something about observability. And the loudest ones agree, Dynatrace is worth a look.
Do you own any shares of Dynatrace (DT)?
OVERHEARD ON THE STREET
🍁 | Canada will hit more than 700 US goods with dollar-for-dollar countertariffs starting September 8.
🛢️ | Iran and Oman are discussing a joint shipping corridor and mine clearing mission in the Strait of Hormuz.
🏠 | All-cash home sales fell to 31.4% of purchases this year, as buyer competition cools.
🤖 | Anthropic is expected to tell IPO investors it sees more than $30T in potential revenue.
🚀 | SpaceX (SPCX) is planning a $100B spaceport in Louisiana, set to create an estimated 10K jobs in the bayou.
MONDAY’S POLL RESULTS
Do you own any bitcoin (BTC)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Diamond hands.”
🐻 Nope, not interested — “I personally feel the same as Warren Buffet when it comes to Bitcoin … it has no intrinsic value.”
👀 No, but I’m interested — “I am only interested in finding the old hard drives that contain the codes for those Bitcoins that people thought were worthless. Why in the world would you pollute the world by tossing out the hard drive? Much less with data that could one day be worth a fortune?”
