HAPPY VETERAN'S DAY TO THE STREET
To every reader who has served, and to the family members who served alongside them from home, we are grateful. You secured the freedom to build a business, back a company, and plan for a future.
From all of us at The Street Sheet, sincerely, thank you.
🟩 | US stocks surged today as promising earnings lifted AI stocks.
📈 | One Notable Gainer: CoreWeave (CRWV) roared back to life after beating Q3 revenue estimates and raising full-year guidance.
📉 | One Notable Decliner: Microsoft (MSFT) continued to slide for a second day after Anthropic unveiled AI workplace tools rivaling Office.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
CORNING, OKLO, AMAZON
📈 | Oklo (OKLO) won Energy Department clearance for its Groves-1 test reactor.
📉 | Amazon (AMZN) slipped after unveiling plans to build a data center cluster in Chile.
📈 | Six Flags Entertainment (FUN) rose on a director's $14.9M share purchase.
📈 | Talen Energy (TLN) signed a seven-year deal to sell 750 megawatts of capacity.
Tomorrow's Trade Idea, Today
MERCURY RISING
Stock Spotlight
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Running Hot
Mercury's thermometer is shooting up, and JPMorgan is taking a reading.
The bank upgraded the aerospace and defense name to Overweight after a fiscal Q1 that beat on earnings and revenue. Mercury also raised its full-year adjusted EBITDA guidance and its revenue growth outlook.
Backlog to the Future
Analyst Seth Seifman warns the quarter was strong enough that the next few may not match it. But he doesn't see it as a ceiling.
Strong bookings swelled the backlog, which Seifman says supports his call for double-digit sales growth. Orders were spread across missiles, radar, and other electronic-warfare tech.
But what struck him most was a 35.2% gross margin, the highest since fiscal Q2 2023. In his view, it shows how profitable that backlog is, and how much room Mercury has to run.
Seifman Says
Wall Street mostly agrees. Of 13 analysts covering the stock, 11 rate it a Buy or Strong Buy, one says Hold, and one says Underperform. Shares climbed today on the upgrade.
Seifman believes Mercury can deliver this level of profitability and more over time. For a stock named after the fastest planet, the patient money may win.
Do you own shares of Mercury Systems (MRCY)?
Sponsored by Bito
The founders who took PubMatic public on NASDAQ, where it reached a peak valuation of roughly $4 billion, are building again.
Their new company, Bito, helps AI coding tools understand the code they’re working on and routes each task to the lowest-cost AI model suited for the job. In testing, it cut AI costs per task by 48%.
Bito has raised more than $10 million from institutional investors and tech leaders.
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OVERHEARD ON THE STREET
🏦 Two Fed officials signaled faster rate hikes after October inflation rose to 4%.
🚁 Amazon unit Ring unveiled a $250 flying indoor security drone and a $1K patrol robot for businesses.
💼 Meta (META) chief strategy officer Dave Wehner is leaving to become CFO of AI startup Fireworks, sending its stock lower today.
✈️ United Airlines (UAL) will block AI agents from booking flights, citing data-privacy risks.
TUESDAY’S POLL RESULTS
Do you own shares of American Airlines Group (AAL)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “Need to look at unloading it. The management team is still running a commuter airline! They have very little motivation to look towards premium service when they are more interested in running feed service for BA in Heathrow.”
🐻 Nope, not interested — “Airlines have been charging absurdly high fares. It’s only a matter of time people don’t think it’s worth flying anymore.”
