HAPPY TUESDAY TO THE STREET
After years of promising AI would fix the world’s problems, its biggest bosses now want to pump the brakes for humanity's sake.
But the slowdown also conveniently raises the compliance bar for upstarts, and hands the leaders a ready-made excuse for missed targets, right as Anthropic and OpenAI prep their IPOs.
“AI is going to kill humanity” might just be the new way of saying, “The dog ate my homework.”
🟥 | US stocks slid again today as the 10-year T-bill yield settled at its highest level in nearly two decades.
📈 | One Notable Gainer: Waystar (WAY) jumped on a report it's exploring a sale that could take it private.
📉 | One Notable Decliner: Dave & Buster's (PLAY) plunged after missing Q2 revenue and profit estimates.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
COINBASE, SKYWORKS, AXON
📉 | Coinbase (COIN) slid as bitcoin tumbled ahead of the Senate's Clarity Act vote.
📈 | Skyworks Solutions (SWKS) rebounded from an AI safety-fueled sell-off.
📉 | Axon Enterprise (AXON) announced a $1B convertible senior notes sale.
📈 | Revvity (RVTY) hit a fresh 52-week high after touting a strong backlog.
📉 | Enova International (ENVA) withdrew regulatory applications for its proposed Grasshopper Bancorp acquisition.
Tomorrow's Trade Idea, Today
GILDING THE LILLY
Stock Spotlight
Stock: Eli Lilly and Company (LLY)
Firm: Berenberg
Current Price: $1,136
Price Target: $1,400
Implied Upside: 23%
Looking for more upside? Street Sheet Research members get 3 stock picks from the Top 30% of analysts with 30%+ implied upside each week. Subscribe today.
Weighing In
Eli Lilly, maker of Mounjaro and Zepbound, is already the heavyweight champ of weight loss. Berenberg thinks the title run is just getting started.
Analyst Kerry Holford upgraded the stock to Buy. She's confident Lilly can hold its lead in the fast-growing obesity market and sees upside to its FY 2026 guidance.
Easy to Swallow
The next leg could come in pill form. Holford expects an imminent diabetes approval for Foundayo, Lilly's oral GLP-1, to unlock significant demand despite a slow start.
She also thinks investors are underestimating the pipeline. Obesity success is funding outside bets, and many of those new entrants carry multibillion-dollar sales potential and valuable diversification.
Hardly Lilly-Livered
Berenberg isn't exactly going out on a limb. Of the 34 analysts covering the stock, 27 rate it a Buy or Strong Buy.
Shares have rallied over the past year, so expectations aren’t light. Still, for a weight-loss giant, Lilly may have plenty left to gain.
Do you own any shares of Eli Lilly and Company (LLY)?
OVERHEARD ON THE STREET
🍁 | Canadian PM Mark Carney pumped the brakes on a US trade deal, stating it will wait for the right conditions.
🏠 | Mortgage rates are closing in on 7% for the first time since January 2025.
⛽ | Diesel hit another record of $6.23 a gallon as oil executives warn a global fuel crisis is here.
🏛️ | Treasury Secretary Scott Bessent blamed "global issues" as the 10-year yield hit its highest level since 2007.
🛻 | Ford (F) will slash the F-150 Raptor's starting price by $4K for model year 2027.
MONDAY’S POLL RESULTS
Do you own any shares of General Motors (GM)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “If TSLA isn’t compelling enough for me to buy, why should GM be?”
👀 No, but I’m interested — “I am always looking at different opportunities.”
