HAPPY WEDNESDAY TO THE STREET
Yesterday, we covered a Bernstein analyst’s belief that Luce critics aren't the customers Ferrari (RACE) is actually trying to reach. Today, Lamborghini's CEO weighed in, calling his brand’s EV cancellation "the right way to go." Two Italian icons, two opposite strategies. The luxury supercar race just got turbocharged.
🟩 | US stocks posted modest gains today, but just enough for the Dow to join the S&P 500 and Nasdaq Composite at record highs.
📈 | One Notable Gainer: Dycom (DY) popped some 25% after lifting full-year guidance and announcing a data center infrastructure acquisition.
📉 | One Notable Decliner: Zscaler (ZS) tumbled more than 30% after guiding current-quarter revenue below Street estimates.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WILL COSTCO RAISE ITS HOT DOG COMBO PRICE?
Inflation just hit 3.8%, gas is up 51%, and yet Costco's (COST) $1.50 hot dog combo somehow still costs $1.50.
Management swears the price is "safe" forever, but a quiet swap from soda-only to a soda-or-water option last month has bettors twitchy. Prediction markets now give nearly coin-flip odds that the combo gets a price hike before 2030.
Market Movers
MARVELL, MGM, VERRA MOBILITY
📉 | Marvell Technology (MRVL) slipped ahead of its quarterly report due after the close.
📈 | MGM Resorts (MGM) jumped after JPMorgan (JPM) upgraded to Overweight on Las Vegas Strip optimism.
📉 | Verra Mobility (VRRM) tanked after Avis Budget terminated its commercial services contract.
📈 | Bath & Body Works (BBWI) rallied after issuing better-than-expected Q2 guidance.
📉 | Insulet (PODD) dropped after a voluntary device correction over potential insulin under-delivery.
Tomorrow's Trade Idea, Today
SAVE TO DISK
Stock Spotlight
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Memory Boost
Sandisk just got the upgrade nobody saw coming.
Barclays analyst Tom O'Malley moved the storage name to Overweight and nearly doubled his price target, calling memory the most attractive vertical below AI accelerators.
The kicker: shares are already up more than 4,000% over the past year.
Built-In Floor
O'Malley's thesis hinges on supply and demand staying out of whack through 2027.
Sandisk has rolled out new contracts loaded with prepayments and financial guarantees, the kind of deal customers want for visibility and suppliers want for revenue certainty.
It's a structural shift, he argues, that protects memory players on the downside even when the cycle eventually turns.
Skeptics Welcome
The Street is mostly along for the ride. Of 22 analysts covering Sandisk, 18 rate it a Buy or Strong Buy.
Still, the average price target sits well below Barclays' bullish call. After a 4,000% sprint in a single year, even Wall Street isn't sure how much memory is left to chase.
Do you own any shares of Sandisk (SNDK)?
OVERHEARD ON THE STREET
🛢️ | Oil prices fell sharply today after Secretary of State Marco Rubio said the US will give Iran talks "every chance to succeed."
💰 | Median S&P 500 CEO pay rose nearly 6% to $17.7M in 2025, with Elon Musk's Tesla (TSLA) package alone valued at $132.3B.
🗳️ | Texas AG Ken Paxton ousted four-term Senator John Cornyn in the Republican Senate primary runoff with President Trump's backing.
🤖 | Robinhood (HOOD) launched a feature letting AI agents trade stocks and make credit-card purchases through dedicated user accounts.
TUESDAY’S POLL RESULTS
Do you own any shares of Ferrari (RACE)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “The rich are getting richer and they will seeking new exotic toys for all to envy. Ferrari fits the bill.”
🐻 Nope, not interested — “Out of my reach, not worth it.”
👀 No, but I’m interested — “Been burned before on RACE. Last time was because they postponed their EV release.”
