HAPPY THURSDAY TO THE STREET
Nvidia (NVDA) needs a new CEO for the first time in 33 years. Jensen Huang resigned amid an affair scandal involving a suspected Chinese agent with reported ties to Huawei, Nvidia’s biggest competitor in China.
The AI leader will now hand the keys to CFO Colette Kress as interim chief. Shares of the company credited with shouldering much of the AI trade and broader market cratered in response to the sudden change.
Oh, and earnings are due next Tuesday. No pressure though.
🟥 | US stocks slid today as Nvidia’s woes weighed on sentiment across sectors. Oil prices also rose after President Trump cast doubt on the possibility of a US-Iran deal.
📈 | One Notable Gainer: Advanced Micro Devices (AMD) rose after William Blair upgraded it to Outperform, betting its AI chips take share as rivals stumble.
📉 | One Notable Decliner: CoreWeave (CRWV) slumped as traders took profits a day after its 25% post-earnings surge.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
NEBIUS, SPACEX, YETI
📉 | Nebius (NBIS) tumbled after raising its 2026 capex forecast to $27B.
📈 | SpaceX (SPCX) climbed after announcing a $50B supercompute campus in Arizona.
📉 | Yeti (YETI) sank after missing Q3 revenue estimates and cutting full-year guidance.
📈 | Tetra Tech (TTEK) jumped after topping fiscal Q4 earnings estimates.
📉 | Keurig Dr Pepper (KDP) slid after announcing a proposed $2B stock offering.
Tomorrow's Trade Idea, Today
GRAND THEFT ALPHA
Stock Spotlight
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.
Press Start
Thirteen years is a long loading screen. Grand Theft Auto VI finally arrives Nov 19, and analyst Nick McKay says the stock still isn't priced for it.
Leaks ahead of an extended Netflix (NFLX) trailer spoiled the rollout and weighed on shares, he says. His view: the valuation gives no credit for what could be the biggest video game launch ever.
Preorder Flow
Microsoft (MSFT) and Sony (SONY) confirmed GTA VI is already the most preordered game ever on their stores. Sensor Tower estimates $1B in preorders, more than GTA V made in its first 24 hours.
Analysts expect fiscal 2027 adjusted earnings of $6.83 a share, a 67% jump, with bookings up 28% to $8.61B. Management's own guidance sits lower. It has also cleared the low end of that guidance every year since 2007.
The Getaway Trade
McKay has company. The 26 analysts tracked by FactSet carry an average target of $290. Shares are in the red this year and trade at 26.6x forward earnings, below a five-year average of 29x.
The last time a new GTA arrived, the stock went on a yearslong run. Wait for the reviews, and the getaway car may already be gone.
Do you own shares of Take-Two Interactive Software (TTWO)?
OVERHEARD ON THE STREET
⚖️ Advocacy groups sued five leading AI companies, including Alphabet (GOOGL) and Meta (META), to halt new model development.
🏠 US existing home sales fell to a 16-year low in October as mortgage rates topped 7%.
🪑 Dan Ives says Nvidia's board may look outside for a permanent CEO.
🕵️ A longtime Cravath employee was charged with insider trading on confidential client deal information.
🍎 President Trump said former Apple (AAPL) CEO Tim Cook should replace Jensen Huang at Nvidia.
WEDNESDAY’S POLL RESULTS
Do you own shares of Mercury Systems (MRCY)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “The only Mercury that I was ever interested in were the Mercury Head dimes back early 1960s.”
👀 No, but I’m interested — “Interested in ANYTHING with momentum.”
