HAPPY WEDNESDAY TO THE STREET
Short-sellers swarmed SpaceX (SPCX) after its first earnings report showed capital spending running at more than twice revenue. But the stock has since climbed nearly 40% off its August 3 low, with short interest cratering from 34% to 11% as a lockup expiration flooded the float.
Shorts forgot which direction rockets go.
🟨 | US stocks were mixed today, but only the DJIA finished lower, as tech strength overrode another high inflation report.
📈 | One Notable Gainer: Wendy's (WEN) jumped on a report that Trian is preparing a bid to take the chain private.
📉 | One Notable Decliner: Aecom (ACM) fell after fiscal Q3 revenue dropped 14% year over year.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
COREWEAVE, NATIONAL VISION, SUPERMICRO
📈 | CoreWeave (CRWV) posted Q2 revenue of $2.58B and an operating margin nearly double consensus.
📉 | National Vision (EYE) guided full-year earnings and revenue below Wall Street estimates.
📈 | Super Micro Computer (SMCI) guided Q1 revenue to as much as $15.5B against an expected $11.68B.
📈 | Quantinuum (QNT) issued 2026 revenue guidance above consensus.
Tomorrow's Trade Idea, Today
JOYY TO THE WORLD
Stock Spotlight
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Return Policy
JPMorgan analyst Daniel Chen has taken a liking to a company that pays shareholders to stick around.
The analyst upgraded Joyy, the little-known Chinese social media operator behind Bigo Live and Likee, to Overweight.
Cash Rules Everything
The draw is a shareholder return policy unveiled in May targeting a 15% annual return, a structure Chen thinks makes the stock far more appealing to US investors.
Chen argues Joyy can fund that promise well beyond 2028. The company held $3.2B in net cash in Q1 2026, equal to 84% of its market cap, and throws off cash from both daily operations and interest income.
Those payouts, per JPMorgan, already explain why Joyy has outrun other Chinese internet names since January 2025.
Bigo Energy
Chen also likes Bigo Ads' position in the programmatic market, helped by Joyy's data and algorithm expertise across digital entertainment and ecommerce.
Wall Street mostly agrees: 12 of 14 analysts rate the stock a Buy or Strong Buy, and shares have climbed over the past year.
Not bad for a social network most US investors couldn’t pick out of the App Store search results.
Do you own any shares of JOYY Inc. (JOYY)?
OVERHEARD ON THE STREET
📊 Consumer price inflation slowed to 3.4% year-over-year in July, though computer prices jumped 3.5% on the month as AI spending lifts chip costs.
📱 Alphabet (GOOGL) opened orders for its new Pixel 11 lineup starting at $900, a $100 increase across every model.
⚖️ The Freedom of the Press Association sued President Trump over Trump Media's (DJT) Truth API, which sells advance access to his market-moving posts for up to $100K a month.
🏀 Former Disney (DIS) CEO Bob Iger and Joshua Kushner bought the Los Angeles Lakers at a $12.5B valuation, less than a year after Mark Walter bought in at $10B.
🚗 Hiroshi Okuda, the Toyota (TM) chief who launched the Prius and drove the automaker's global expansion, died at 93.
TUESDAY'S POLL RESULTS
Do you own any shares of Csquare (CSQR)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐻 Nope, not interested — “With all of the totally warranted and deserved pushback on data centers being put in everyone's backyard, and buildout eventually hitting a brick wall, I imagine the stock will too. Going bust.”
👀 No, but I'm interested — “Looking for long term investment.”
