HAPPY WEDNESDAY TO THE STREET
The S&P 500 has long rejected unprofitable companies, low-float listings, and freshly minted IPOs. It appears poised bend all three rules at once just in time for SpaceX's June 12 debut, with Anthropic and OpenAI close behind.
That means, if you have a 401(k), college fund, or other managed account, get ready to ride Elon's rockets… whether you buy into what he’s selling or not.
🟥 | US stocks pulled back today as investors were unable to shrug off the latest climbing oil prices and heightened US-Iran tensions.
📈 | One Notable Gainer: GameStop (GME) jumped on a 14% Q1 revenue beat and a fresh $2B buyback authorization.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
US GAS PRICES THIS WEEK?
Gas prices are flirting with $4.30 a gallon, and energy execs warn the worst is yet to come. With global oil inventories at historic lows thanks to the war in Iran, even an immediate Strait of Hormuz reopening might not stop pump prices from spiking by July 4th. Might be why so many Kalshi traders have taken to hedging…
Market Movers
IBM, EXXON, PALO ALTO
📉 | IBM (IBM) led a quantum-computing sell-off after announcing a $10B+ push into the space.
📈 | Exxon Mobil (XOM) rose with crude prices as Netanyahu warned of fresh strikes on Iran.
📉 | Palo Alto Networks (PANW) fell despite beating Q3 estimates and lifting full-year revenue guidance.
📈 | Marvell Technology (MRVL) extended its gains after yesterday’s record 32% surge.
📉 | Ulta Beauty (ULTA) slipped after raising FY guidance to a range merely matching consensus.
Tomorrow's Trade Idea, Today
IRDM CATCHES A LIFT
Stock Spotlight
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Hitching a Ride
Oppenheimer (OPY) thinks satellite investors should buckle up for liftoff.
Analyst Timothy Horan upgraded Iridium (IRDM) to Outperform and raised his price target to $60, with SpaceX's looming Nasdaq debut as the rocket fuel.
The Trillion-Dollar Tailwind
Horan argued the broader space economy is poised to expand, with Iridium positioned to benefit.
Iridium runs a commercial low Earth orbit network providing voice, data, and connectivity services across the $1.6 trillion communications market. The satellite operator already uses SpaceX to launch its low Earth orbit fleet, so a bigger SpaceX means more business.
The analyst expects SpaceX to dominate the fastest-growing industry of the century, with a target of 10,000 Starship launches per year and aggressive expansion into AI infrastructure. That leaves plenty of room for adjacent players to thrive.
Consensus in Orbit
Of the 11 analysts covering Iridium, six rate it a Buy or Strong Buy. Shares have rocketed higher year-to-date.
When the SpaceX bell rings on June 12, Iridium might just be the second-best ticket in the lot.
Do you own any shares of Iridium Communications (IRDM)?
OVERHEARD ON THE STREET
🏗️ | ADP (ADP) reported US private payrolls grew 122,000 in May, the strongest month since January 2025.
Kalshi Odds: “Unemployment in May 2026”
Above 4.2%: 71%
Above 4.3%: 34%
Above 4.4%: 6%
🏠 | Home sellers pulled 5.8% of US listings in April, the highest delist rate since the pandemic freeze of March 2020, per Redfin (RDFN).
🚀 | SpaceX set a fixed $135 IPO price at a $1.75T valuation, eclipsing Tesla (TSLA) as the seventh-largest US company.
🚖 | Uber (UBER) cut 23% of its people team under new president Jill Hazelbaker.
🍩 | Inspire Brands, the private parent of Dunkin', Arby's, and Buffalo Wild Wings, confidentially filed for an IPO last month.
TUESDAY’S POLL RESULTS
Do you own any shares of Intuit (INTU)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “I don’t take my lead from theorists. If I did I would have passed on huge profits. This is a well run company that will always beat back new competition.”
🐻 Nope, not interested — “I am a tax preparer; turbo has always sucked and now there is AI.”
👀 No, but I’m interested — “I am interested in possibly buying Intuit because I am a CPA and I follow or buy stocks in my industry.”
