HAPPY FRIDAY TO THE STREET
YouTube (GOOGL) is having its Hollywood moment. A24's Backrooms is on track to gross $45M this weekend against a $10M budget. Director Kane Parsons got his start uploading shorts to YouTube, joining a wave of horror auteurs behind Talk to Me and Iron Lung who turned algorithm fame into theatrical hits. Hollywood's hottest pipeline now runs through the recommended feed.
🟩 | US stocks climbed to record heights again, closing out a winning month for all three major indexes, as tech earnings continued to impress and oil prices slipped on cooling tensions in the Middle East.
📈 | One Notable Gainer: Dell Technologies (DELL) surged some 30%, its best day on record, after raising full-year guidance well above consensus.
📉 | One Notable Decliner: American Eagle Outfitters (AEO) dove after Q1 comparable sales missed and Q2 guidance disappointed.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WILL BLUE ORIGIN LAND ON THE MOON BEFORE SPACEX?
A rocket from Jeff Bezos' Blue Origin went up in flames on a Florida launchpad Thursday night, days after NASA awarded the firm a $188M lunar rover contract. The incident sent space-related stocks like Blue Origin partner AST SpaceMobile (ASTS) sharply lower. But Kalshi users are finding a different way to play the odds.
Prediction markets currently give Blue Origin a 47% shot at beating SpaceX to the moon. Potentially generous, considering one company's rocket is in pieces and the other is filing for a trillion-dollar IPO.
Market Movers
NETAPP, GAP, OKTA
📈 | NetApp (NTAP) posted its best day since 2002 after fiscal Q4 and full-year guidance beat estimates.
📉 | Gap (GAP) tumbled after cutting full-year sales guidance.
📈 | Okta (OKTA) jumped after Q2 and full-year revenue guidance beat estimates.
📉 | SentinelOne (S) slid after guiding current-quarter revenue below estimates.
📈 | PagerDuty (PD) raised full-year earnings guidance above consensus.
Tomorrow's Trade Idea, Today
CUCKOO FOR COCO
Stock Spotlight
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Powder Day
Snowflake just had its best day ever. It might not have peaked.
That's per HSBC analyst Stephen Bersey, who flipped to Buy and pointed to the Cortex Code tool as the clearest evidence yet that AI monetization is starting to pay off.
CoCo Conversion
Snowflake's CoCo platform has scaled to more than 7,100 accounts and is now contributing meaningful AI revenue, Bersey wrote.
He expects adoption to deepen as customers move from pilot to production workflows, lifting both direct AI revenue and core platform consumption.
The upgrade follows blockbuster fiscal Q1 earnings and a $6B compute deal with Amazon (AMZN) that sent shares surging 36% in a single day, a record for the stock.
Forecast: Clear Skies
Of the 52 analysts covering the name, 45 rate it a Buy or Strong Buy. The stock lagged the S&P 500 for most of the year on fears that AI would eat into SaaS demand. At one point, shares were down 44% on a closing basis.
Then came Thursday. But the powder may be just beginning to fall.
Do you own any shares of Snowflake (SNOW)?
OVERHEARD ON THE STREET
🛢️ | President Trump laid out final Iran deal terms, demanding an open Strait of Hormuz and no nuclear weapons in exchange for lifting the US blockade.
⚖️ | A federal judge temporarily blocked the DOJ's $1.8B Anti-Weaponization Fund as lawsuits challenging it proceed.
🚀 | Elon Musk's X post about the Anthropic compute deal contradicted SpaceX's S-1 filing days before its IPO roadshow.
🍅 | Tomato prices are up 40% year-over-year on Mexican import tariffs and Iran-war shipping costs.
💰 | Universal Music Group rejected Bill Ackman's $65B unsolicited buyout offer after its largest shareholder voiced opposition.
THURSDAY’S POLL RESULTS
Do you own any shares of Absci Corporation (ABSI)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “Other stocks are more important.”
👀 No, but I’m interested — “New on my list. Will start trading options on it tomorrow and build a position.”
