HAPPY FRIDAY TO THE STREET
Binance just suffered the biggest crypto heist on record: $6.3B in client assets, with investigators pointing to North Korean hackers.
But Bitcoin barely flinched, sliding about 4%, versus the 8.3% average drop after past exchange exploits.
Investors are finally starting to see a difference between robbing the bank and counterfeiting the currency.
🟥 | US stocks plummeted today, with the Nasdaq Composite notching its worst single-day decline since June, as more AI-related earnings ignited a rotation out of tech.
📈 | One Notable Gainer: Rivian (RIVN) surged after a Q3 beat and a raised delivery forecast.
📉 | One Notable Decliner: Reddit (RDDT) tumbled on weak Q4 revenue guidance and a new mandatory login rule.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
INTEL, REGENERON, ROBLOX
📉 | Intel (INTC) sank around 30% on weak Q4 guidance.
📈 | Regeneron Pharmaceuticals (REGN) rose around 10% after a Q3 beat and higher margin guidance.
📉 | Roblox (RBLX) dropped around 20% on soft Q4 bookings guidance.
📈 | AstraZeneca (AZN) gained about 7% after topping Q3 estimates.
📉 | Sandisk (SNDK) fell more than 10% despite a fiscal Q1 beat and an 8-for-1 stock split.
Tomorrow's Trade Idea, Today
INTC ON THE OUTS
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Worse Than Worst-Case
Even the bears didn't see this one coming.
UBS analyst Timothy Arcuri kept his Neutral rating on Intel after the chipmaker's Q4 outlook landed below the gloomiest forecasts on the Street.
But after today’s sharp sell-off, that still implies substantial upside from its latest close.
Down Memory Lane
The reason for the increasingly bearish sentiment, per Arcuri, is a PC business that deteriorated far faster than anyone expected.
The analyst noted the weakness lines up with what Microsoft (MSFT) flagged on its own earnings call the night before.
But the bigger problem may be what comes next. Arcuri sees a rocky road back for PCs, since he expects no relief on memory pricing or supply anytime soon.
Blame the AI boom. Per UBS, surging server demand for agentic applications keeps squeezing the memory market, and PC makers are stuck at the back of the line.
Neutral Territory
UBS has plenty of company on the sidelines.
Bank of America (BAC) downgraded the stock to Neutral, while Goldman Sachs (GS), Wells Fargo (WFC), Barclays (BCS), and Bernstein all sit at Neutral or the equivalent.
Shares sank hard on the news. For now, Wall Street would rather watch Intel's comeback from the cheap seats.
Do you own shares of Intel Corporation (INTC)?
OVERHEARD ON THE STREET
💵 | Series I bonds will pay 5.51% through April 2027, with the fixed rate at its highest since 2006.
☁️ | Amazon's (AMZN) cloud unit AWS grew sales 39% to $46B, its fastest pace in nearly five years.
🇪🇺 | Eurozone GDP grew 0.4% in Q3, double expectations despite the Iran war's energy shock.
🏛️ | Two Fed presidents said more rate hikes are needed, with traders pricing 76% odds of a December hike.
THURSDAY'S POLL RESULTS
Do you own shares of Alphabet (GOOGL)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Looks like the market may be pricing Google as though search is already broken. I don’t believe that the evidence doesn't support that. Search is still growing doing $63+ billion of quarterly search revenue and growing 12% is not collapsing.”
🐻 Nope, not interested — “Was at a doctor's office and couldn't bail before losing 8%. Shop bots and search agents are going to hurt.”
