HAPPY THURSDAY TO THE STREET
After SpaceX (SPCX) and SK Hynix (SKHY) turned 2026 into the year of the blockbuster listing, Jersey Mike’s (JMKE) threw its embroidered hat in the ring today, raising $1B at a $7.3B valuation.
However, the results were less than fresh. The stock opened below its $23 IPO price, and continued its slide throughout the day, ending down by almost 6%. Wall Street ordered the giant sub, but got handed a mini.
🟩 | US stocks rebounded sharply today, buoyed by tech giant gains, although the rising tide did not lift all ships.
📈 | One Notable Gainer: Microsoft (MSFT) jumped more than 15% as Azure grew 43% and Copilot paid seats topped 30M.
📉 | One Notable Decliner: Meta (META), meanwhile, slid some 8% on an earnings miss and light guidance as free cash flow dropped 91%.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHEN WILL TRUMP’S AG NOMINEE BE CONFIRMED?
Todd Blanche has run the DOJ as acting attorney general since April, and Trump would rather keep it that way than lose a vote.
Senators John Cornyn and Thom Tillis still want written assurances on the IRS lawsuit settlement, so the president floated pulling the nomination until both leave office in January. Traders see the acting gig running long.
Market Movers
MARKETAXESS, FAIR ISAAC, CHIPOTLE
📉 | Fair Isaac (FICO) still has no launch timeline for its direct license program.
📈 | Chipotle Mexican Grill (CMG) beat on the top and bottom lines and raised its same-store sales outlook.
📉 | Teladoc Health (TDOC) missed Q2 revenue estimates and cut its full-year guidance.
📈 | Lam Research (LRCX) topped fiscal Q4 estimates on both earnings and revenue.
Tomorrow's Trade Idea, Today
MIKE DROP
Stock Spotlight
Stock: Jersey Mike’s (JMKE)
Firm: Melius Research
Current Price: $21.63
Price Target: $30
Implied Upside: 38%
Looking for more upside? Street Sheet Research members get 1 stock pick from the Top 10% of analysts with 100%+ implied upside each month. Subscribe today.
Buy The Debut
Jersey Mike’s may have opened below its IPO price, but the first analyst on the tape thinks it’s a matter of time before it pops.
Melius Research analyst Jacob Aiken-Phillips launched coverage at Buy, arguing the chain is the only scaled premium operator in a sandwich category whose incumbent is in retreat.
Subway’s Slow Bleed
That incumbent is Subway, which is shuttering roughly 700 restaurants a year. Jersey Mike’s rings up more than 40% of Subway’s US sales with 15% as many stores, per the analyst.
That, Aiken-Phillips argues, leaves Jersey Mike’s room to take share downmarket from the value tier and across a fragmented premium tier where nobody matches its brand reach.
Wingstop, Again?
Aiken-Phillips also likes the bench: CEO Charlie Morrison ran Wingstop (WING) through its own 2015 IPO, and few franchisors of that quality have listed since.
Shares are in the red on day one. Maybe that’s a warning. Maybe it’s a discount.
Did you buy any shares of Jersey Mike’s (JMKE) today?
OVERHEARD ON THE STREET
📊 Second-quarter GDP growth slowed to 1.5% as a surge in imports weighed on output.
🏠 The 30-year fixed mortgage rate rose to 6.66%, a one-year high and its fourth straight weekly increase.
🤖 OpenAI cut the price of GPT-5.6 Terra by 20% and Luna by 80% as enterprises push back on AI bills.
👗 Reformation (REF) opened flat in its NYSE debut after pricing at $15, the low end of its range.
🏦 Citadel agreed to buy the entire public book of Leopold Aschenbrenner’s AI fund after infrastructure losses forced the $45B fund to unwind.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Reddit (RDDT)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “This has been the only non-overcooked social media play a while now.”
🐻 Nope, not interested — “Based on the varying degree of accuracy of its content — somewhat less credible than most SM platforms — the volatility exceeds my comfort level.”
