HAPPY THURSDAY TO THE STREET
Is the hemp boom going up in smoke?
A new THC cap quietly slipped into Congress’s shutdown-ending bill will wipe out nearly all hemp-based gummies, vapes, and drinks. And, potentially, $28 billion in sales.
Critics say the crackdown won’t kill demand, just move it to the black market. So much for high hopes.
🟥 | US stocks fell sharply as tech weakness deepened and rate worries rose.
📈 | One Notable Gainer: Sweetgreen $SG ( ▲ 10.62% ) jumped after co-founder Nicolas Jammet bought $1M in stock. The stock is still down over 80% this year.
📉 | One Notable Decliner: BioNTech $BNTX ( ▼ 7.0% ) fell after reports that Pfizer $PFE ( ▼ 0.31% ) plans to sell its remaining stake.
Plus, an AI defense tech play is rewriting the rules of engagement. Learn more.
— Brooks & Cas
Sponsored by VisionWave
VisionWave (NASDAQ: VWAV) might not be on your radar yet. But it should be.
The defense tech firm is leveraging cutting-edge AI to rewrite the rules of engagement. Backed by $50M in institutional capital, validated through successful pilots with Tier-1 US defense contractors, and boasting a 5/5 Nasdaq Dorsey Wright Rating, institutions and analysts alike see the potential for exponential growth.
Now may be your best chance to get in on the ground floor, before the noise becomes too loud to ignore.
MARKET SNAPSHOT
All Stock Heatmap. Credit: Finviz
Market Movers
DILLARD’S, ROBINHOOD, CISCO
Dillard’s $DDS ( ▲ 9.59% ) beat Q3 revenue expectations and posted same-store sales growth.
Robinhood $HOOD ( ▼ 8.61% ) unveiled a new cash-delivery partnership with Gopuff.
Cisco $CSCO ( ▲ 4.62% ) reported stronger-than-expected Q1 earnings and revenue.
Walt Disney $DIS ( ▼ 7.75% ) delivered mixed quarterly results and lackluster revenue.
Ibotta $IBTA ( ▼ 23.68% ) issued weaker-than-expected Q4 revenue guidance.
To monitor hot stocks in real time, check out The Street Feed.
UPGRADES & DOWNGRADES
📈 Upgrades
Stephens upgraded Evolent Health $EVH ( ▼ 6.52% ) to Overweight
Deutsche Bank raised SMC Corp. $SMCAY ( ▲ 6.47% ) to Buy from Hold
Scotiabank lifted Lithium Americas $LAC ( ▼ 5.54% ) to Sector Perform
📉 Downgrades
William Blair cut Mersana Therapeutics $MRSN ( ▲ 209.25% ) to Market Perform
Craig-Hallum downgraded Nexxen $NEXN ( ▼ 21.33% )
Janney Montgomery Scott lowered LandBridge $LB ( ▼ 10.31% ) to Neutral from Buy
This is just a fraction of the calls we feature all day on The Street Feed. Street Sheet Research Subscribers can see why the analysts upgraded or downgraded the stocks above and updated price targets. Get immediate access today.
Tomorrow's Trade Idea, Today
SHAKY FOUNDATIONS
Euphoria or Hysteria?
Markets today saw their sharpest pullback in more than a month, largely due to growing concerns about high valuations.
That makes now as good a time as ever to highlight the surprising number of companies with billion-dollar market caps… and zero revenue to show for it.
A CNBC Pro screen turned up several names that fit the bill, with no reported revenue over the past two months.
Archer Aviation $ACHR ( ▼ 7.98% ) and USA Rare Earth $USAR ( ▼ 12.23% ) headline the list. Both trade on promise, not profits.
Reality Check for Risk-Takers
Archer, a key player in the electric helicopter and air-taxi market, has pulled back about 19% this year after explosive rallies in 2023 and 2024. But analysts still rate it a Buy, expecting a rebound of more than 30% over the next 12 months. That’s despite a conspicuous blank line on its balance sheet.
USA Rare Earth, a $1.6B bet on US mineral independence, has gained roughly 38% this year as rare earths stay at the center of the US-China trade détente. Wall Street sees more upside, but the lack of top-line traction makes it a speculative wager even by small-cap standards.
Rampant Red Flags
Several other household names made the cut: Oklo $OKLO ( ▼ 8.57% ), Summit Therapeutics $SMMT ( ▼ 3.03% ), Viking Therapeutics $VKTX ( ▼ 4.37% ), Scholar Rock $SRRK ( ▼ 2.43% ), NextDecade $NEXT ( ▼ 2.13% ), and Lithium Americas $LAC ( ▼ 5.54% ).
These days, AI enthusiasm and futuristic story stocks can create fortunes or wipe them out. But ultimately, it’s hard to imagine a Wall Street where revenue doesn’t matter.
Historically, many hype cycles have ended the same way: when the market remembers cash flow is king.
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OVERHEARD ON THE STREET
CBS News: The IRS raised 2026 retirement limits, including a $24.5K 401k cap and a $7.5K IRA cap for savers.
CNBC: Tesla $TSLA ( ▼ 6.64% ) recalled about 10.5K Powerwall 2 units after 22 overheating incidents, including five fires.
Axios: Google $GOOGL ( ▼ 2.84% ) rolled out a new suite of Gemini shopping tools.
CNN: North Carolina and Utah attorneys general formed an AI Task Force with OpenAI and Microsoft $MSFT ( ▼ 1.54% ) to push basic safety protections across states.
Engadget: Apple $AAPL ( ▼ 0.19% ) launched a Mini Apps Partner Program that cut some developer commissions to 15% amid antitrust pressure.
WEDNESDAY POLL RESULTS
Are you bullish or bearish on Advanced Micro Devices $AMD ( ▼ 4.22% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐻 Bearish — “AMD is entering a market which is hugely capitalized with tiny revenues. OpenAI (among other demanders of inference they cannot afford) does not have the future to support data center demand, much less any AI business presenting a positive ROI.”
