HAPPY TUESDAY TO THE STREET
SpaceX (SPCX) blasted past Amazon (AMZN) and briefly overtook Microsoft (MSFT) today, becoming the fourth-largest US company barely three trading days after its IPO. The rocket maker has climbed 62% from its $135 offer price, outrunning what Amazon returned over the past five years.
The question now: will it remain in orbit, or come crashing back down to earth?
🟨 | US stocks were mixed today, but the 30-stock Dow rose to an all-time high, as buyers took profits on growth stocks and bought the dip on cyclicals.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
WHEN WILL ANTHROPIC RESTORE FABLE 5 ACCESS FOR US CUSTOMERS?
Anthropic pulled its new Fable 5 and Mythos 5 models offline Friday to comply with a US government order limiting access for foreign nationals. But Kalshi traders are betting the blackout is temporary, with better-than-even odds the model returns by July. The new benchmark for AI innovation, it seems, is getting grounded days after launch.
Market Movers
YUM BRANDS, GILDAN, E.L.F. BEAUTY
📈 | Yum Brands (YUM) gained on the $2.7 billion sale of its Pizza Hut business to private equity firm LongRange Capital and Yum China.
📉 | Gildan Activewear (GIL) plunged after short-seller Jehoshaphat Research said its true organic growth is negative.
📈 | e.l.f. Beauty (ELF) rose on the launch of its e.l.f. Hair line, heading to TikTok Shop and Target.
📉 | Dave & Buster’s (PLAY) dropped after first-quarter earnings and revenue missed estimates.
📈 | Mobileye (MBLY) rose on plans for an autonomous ride-hailing business launching in 2027.
Tomorrow's Trade Idea, Today
NECESSITY IS THE MOTHER OF NVENTION
Stock Spotlight
Stock: nVent Electric (NVT)
Firm: Melius Research
Current Price: $170
Price Target: $214
Implied Upside: 26%
Looking for more upside? Street Sheet Research members get 3 stock picks from the Top 30% of analysts with 30%+ implied upside each week. Subscribe today.
From Gem To Giant
Melius Research thinks electrical solutions firm nVent has quietly become a backbone of the AI buildout.
The firm initiated coverage with a Buy rating, with analyst Jake Levinson arguing the stock has gone from an undifferentiated, low-growth electrical name to a must-own data center and utility supplier.
Liquid Courage
Levinson points to nVent’s partnership with Nvidia (NVDA) to build the physical infrastructure, including liquid cooling, that keeps high-density AI data centers from melting down. He calls nVent an early mover with a deeper, more established business than its peers.
With liquid cooling industry revenues still only a few billion dollars against hyperscaler capex approaching $700B this year, Levinson sees Street forecasts as far too low.
Crowded At The Top
That’s not to say Melius is alone in its bullishness. Of the 15 analysts covering nVent, 14 rate it a Buy or Strong Buy, and the stock is deep in the green this year.
The hidden gem, it seems, has been found. Everyone just wants a piece before it heats up further.
Do you own any shares of nVent (NVT)?
OVERHEARD ON THE STREET
🛢️ The US-Iran deal will let Tehran immediately resume oil sales, sending oil prices lower today.
💼 Robinhood (HOOD) is cutting 10% of its workforce in an organizational “flattening,” joining tech’s move to shed middle management.
🛡️ General Motors (GM) announced a defense manufacturing partnership with Lockheed Martin (LMT) to scale US munitions production.
🌏 Surging Chinese exports are rattling Europe’s industrial base, putting “China Shock 2.0” near the top of the G7 agenda.
🕶️ Snap (SNAP) unveiled Specs, its first consumer AR glasses, priced at $2,195 and shipping later this year.
MONDAY’S POLL RESULTS
Do you own any shares of Rocket Lab (RKLB)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “A rising tide lifts all boats… or something like that. I’ve owned it for a while. Space is an unknown infinite market. ”
🐻 Nope, not interested — “Too much alignment with and reliance on NASA which is quite the anchor to drag. There's a line from a song in the late 90s, ‘If NASA hadn't screwed us we'd have cities on the moon...’ and there's no evidence NASA has become more efficient since then.”
👀 No, but I’m interested — “Had already taken profits of $70 per share, and watching for the right opportunity to go back in.”
