šŸ• Got That DOGE In Him

Plus, how Levi's leveraged tech to predict the rise of baggy jeans...

Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • šŸŸ„ | US stocks fell sharply today, after Chinese startup DeepSeek released a reasoning model that reportedly outperformed ChatGPT ā€” developed in a fraction of the time, at a fraction of the cost.

  • šŸ“ˆ | One Notable Gainer: Shares of AT&T (T) added more than 6% after beating subscriber growth expectations thanks to its discounted premium plans.

  • šŸ“‰ | One Notable Decliner: NVIDIA (NVDA) took the brunt of the DeepSeek fiasco. Its stock plummeted 17%, erasing nearly $600B in market cap, by far the biggest single-day drop for a US company in history.

Plus, read to the end to see what you said about this week in earningsā€¦

Sponsored by Cadiz

This year, Cadiz, Inc. (NASDAQ: CDZI) is set to break ground on the Southwestā€™s largest water pipeline. The Mojave Groundwater Bank will send affordable, reliable, and clean water to much of the region, including historically underserved communities.

Cadiz made news in November when it purchased 180 miles of steel pipe from the failed Keystone XL project. And investorsā€™ heads turned again shortly thereafter when the Lytton Rancheria tribe announced it would invest $50 million in the project.

Itā€™s a groundbreaking partnership (see what we did there?) that marks the first major investment by a Native American tribe in large-scale water infrastructure off tribal lands.

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global Heatmap. Credit: Finviz

MARKET MOVERS

Constellation Energy, Vistra, GE Vernova

CEG (-20.9%) / VST (-28.3%) / GEV (-21.5%) Constellation Energy, Vistra, and GE Vernova Plunge. Why AI Energy and Infrastructure Stocks Are Sliding. (Barronā€™s)

AWK (+6.8%) American Water Works Shares Up - Here's What Happened (MarketWatch)

TSM (-13.3%) / MRVL (-19.1%) / ANET (-22.4%) Why Artificial Intelligence (AI) Hardware Winners Taiwan Semiconductor, Marvell, and Arista Networks Plunged by Double Digits Today (The Motley Fool)

OVERHEARD ON THE STREET

CNBC: The aforementioned DeepSeek temporarily limited user registrations, citing large-scale cyberattacks, after recently knocking out ChatGPT as the top free app on the Apple App Store.

WSJ: The Wall Street Journal compiled everything else you need to know about DeepSeek.

Bloomberg: The wealth of NVIDIAā€™s CEO has dropped by $21B due to DeepSeekā€™s record stock rout.

AP: The Federal Reserve is expected to maintain its key interest rate this week, despite President Donald Trumpā€™s recent calls for cuts.

TOMORROWā€™S TRADE IDEA, TODAY

This Companyā€™s Got That DOGE In It

New DOGE, Old Tricks

Elon Muskā€™s new Department of Government Efficiency (DOGE) is in full swing, and Bank of America (BAC) thinks one stock in particular could benefit from its efforts: CACI International (CACI). 

CACI provides services to various US federal government branches, including defense, homeland security, intelligence, and healthcare. And the six-decade-old IT firm has a knack for streamlining operations, says Bank of America.

Thatā€™s why the bank recently reiterated its Buy rating on CACI. Its $625 price target represents around 48.5% upside from current prices.

Canā€™t Beat ā€˜Em? Join ā€˜Em

Some investors view CACI as a company that could potentially be on DOGEā€™s proverbial chopping block. But BoA analyst Mariana Perez Mora believes CACI could actually help DOGE achieve its goals. 

CACI is currently helping the federal government modernize its information technology systems, and Perez Mora believes utilizing its expertise could become key for DOGE to accomplish its goals.

Strong Fundamentals

Perez Mora is also bullish on CACIā€™s recent quarterly results, which beat analyst expectations and the top and bottom lines. As a result, the company lifted its EPS projections to $24.76 per share, adding that a long backlog of projects should help earnings. 

The stock is up nearly 23% over the past twelve months, but less than 5% in 2025 to date. If Bank of America analysts are correct, it could pick up steam as DOGE continues its war on government spending.

But are they all bark ā€” or CACI have bite?

Are you bullish or bearish on CACI (CACI) over the next 12 months?

Login or Subscribe to participate in polls.

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ON OUR RADAR

CNN: Feeding a Super Bowl party will cost about the same this year ā€” unless you opt for healthier options.

AP: A trade dispute with Colombia, sparked by President Trumpā€™s threat to impose a 25% tax, threatens flower imports just ahead of Valentineā€™s Day.

Reuters: Prior to Trumpā€™s anti-DEI campaign, top US firms like Meta and Walmart were already scaling back diversity efforts.

WSJ: Leviā€™s leveraged new data infrastructure to analyze trends and predict the growing demand for looser styles, including the return of baggy jeans.

FRIDAYā€™S POLL RESULTS

Next week [i.e. this week], there will be more...

šŸŸ©šŸŸ©šŸŸ©šŸŸ©šŸŸ©šŸŸ© Earnings beats

šŸŸØā¬œā¬œā¬œā¬œā¬œ Earnings misses

And, in response, you said:

  • Earnings misses ā€” 

    • ā€œThe current administration's attack on the way that business has been conducted by trying to get it to fit an unpopular ideology is going to be extremely disruptive and will cause instability. ā€

    • ā€œThe market has turned.ā€

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This message includes a paid advertisement for Cadiz Inc (NASDAQ: CDZI). The Street Sheet (SS) receives a flat fee totaling up to $7,500 from West Coast Media LLC. Other than the compensation received for this advertisement sent to subscribers, The Street Sheet and its principals are not affiliated with Cadiz Inc. The Street Sheet and its principals do not own any of the stocks mentioned in this email or in the article that this email links to. The Street Sheet is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided in this newsletter is not guaranteed as to the accuracy or completeness. Each user of SS chooses to do trades at their sole discretion and risk. SS is not responsible for gains/losses that may result in the trading of these securities. This newsletter includes paid advertisements. The source of all third-party content in which SS receives some sort of compensation is clearly and prominently identified herein as "ad", "Sponsored", or ā€œTogether Withā€. Although we have sent you these advertisements, SS does not specifically endorse any third-party product nor is it responsible for the content, the accuracy, or the completeness of the advertisement or the experience with the third-party advertiser. Furthermore, we make no guarantee or warranty about what is in the advertisement. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. This communication from The Street Sheet is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of The Street Sheet. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. The information contained in this newsletter is subject to change without notice, and we do not undertake any obligation to update it. Readers are encouraged to conduct their own research and due diligence and seek advice from licensed professionals regarding their specific financial needs and circumstances. By reading this newsletter, you agree to hold us harmless from any and all losses, liabilities, costs, or expenses arising from your use or reliance on the information provided. There is no warranty as to the accuracy or completeness of the factual matters included in any advertisement or sponsored content in the newsletter. You have not performed any research on any entity, or its business, that advertises or submits any sponsored content. The Street Sheet is reader-supported. When you buy through links on our site, we may earn a commission.

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