HAPPY FRIDAY TO THE STREET
OpenAI's C-suite is emptying out. The ChatGPT-maker’s CRO and COO both walked this week, following its former CEO of AGI Deployment. And that’s all while the company asks investors to swallow an $852B valuation ahead of a potentially historic IPO.
It’s tougher to pitch repeatable execution when the only thing on repeat currently is a revolving door.
🟥 | US stocks ticked down today as earnings momentum cooled, nudging the S&P 500 off record highs, but not out of the green for the week.
📈 | One Notable Gainer: Unusual Machines (UMAC) leapt more than 20% after Trump imposed tariffs on foreign-made drones and parts.
📉 | One Notable Decliner: York Space Systems (YSS) failed to lift off after missing Q2 earnings estimates and cutting full-year guidance.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
APPLIED MATERIALS, SANDISK, WORKDAY
📉 | Applied Materials (AMAT) posted Q2 results that failed to impress investors.
📈 | Sandisk (SNDK) climbed on an upgrade to Overweight.
📉 | Workday (WDAY) slid as traders pocketed gains from its buyout-talks rally.
Tomorrow's Trade Idea, Today
EROC SOLID
Stock Spotlight
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Backlog Boom
Anthropic just handed a little-known generator maker the kind of order that can make an entire business model.
The private AI company agreed to buy 470 MW of power from ERock, pushing the firm’s order backlog up 1000% to $1.7B. In response, Ross Fowler at Bank of America reiterated a Buy and lifted his price target to $19.
Speed To Power
ERock builds modular gas generators for customers who cannot wait years on a grid interconnection.
Fowler counts Anthropic as the third blue-chip data center contract on the books, and says the award raises his confidence that other large opportunities will convert into firm deals.
Power is the bottleneck in the AI buildout. According to BofA, ERock sells the workaround.
Conservative By Design
Fowler models the Anthropic award as product revenue only, phased across 2027 and 2028. Operations and maintenance revenue stays out of his numbers until those scopes are contracted, which leaves more potential upside if they land.
ERock has traded below its June IPO price, and Anthropic is expected to go public later this year above $1T. For now, the meter is still running.
Do you own any shares of ERock (EROC)?
OVERHEARD ON THE STREET
🛒 US retail sales fell 0.6% in July, the biggest drop since May 2025, against economist forecasts for a small increase.
📊 Reddit (RDDT) will join the S&P 500 on Tuesday, replacing AvalonBay Communities (AVB) and forcing index funds to buy the stock.
⚖️ Luigi Mangione pleaded guilty to federal stalking in the killing of UnitedHealthcare (UNH) CEO Brian Thompson and faces a possible life sentence.
⚽ Amazon (AMZN) founder Jeff Bezos joined an investor group buying 33% of Liverpool FC at a valuation above $7B.
🏦 JPMorgan (JPM) cut off Polymarket's banking relationship last October over regulatory concerns, adding fuel to Washington's debanking fight.
THURSDAY'S POLL RESULTS
Do you own any shares of Nebius Group (NBIS)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐂 Yup, I'm holding — “I believe in management!”
👀 No, but I'm interested — “This may present big upside opportunity.”
