HAPPY WEDNESDAY TO THE STREET
Ex-Anthropic researcher Jacob Coxon resigned this week, warning that the company and its rivals “earnestly believe” AI could wipe out humanity by the end of the decade. One of his former coworkers chimed in to defuse the situation, confirming, “We really do earnestly believe AI could kill all humans!” Comforting!
Interesting to note, though, that Coxon felt it necessary to disclaim, “This is not a marketing stunt.” Why would AI firms market themselves by touting the supposedly apocalyptic nature of the technology? Unclear, but there are multiple reports of big-tech-backed groups paying influencers to do just that.
So, whether or not Coxon is in on the bit, it does seem that this is a narrative AI companies want to push. Forget the iPhone moment. Anthropic and OpenAI are jockeying for their Skynet moment.
🟥 | US stocks slid today as the Treasury revealed its revised buyback plan, to investors’ disappointment.
📈 | One Notable Gainer: Signet Jewelers (SIG) shares glittered after beating Q2 earnings estimates and raised full-year guidance.
📉 | One Notable Decliner: Casey’s General Stores (CASY) slumped on a decline in fuel sales and soft prepared food growth.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
META, BRAZE, CENTERSPACE
📈 | Meta Platforms (META) continued to climb after unveiling its personal AI agent app.
📉 | Braze (BRZE) missed revenue estimates for the quarter.
📈 | Centerspace (CSR) will merge with Independence Realty Trust (IRT) in an all-stock deal valued at $8.1B.
📉 | ServiceTitan (TTAN) guided Q3 revenue below analyst estimates.
📈 | Academy Sports and Outdoors (ASO) lifted its adjusted earnings outlook for the fiscal year.
Tomorrow's Trade Idea, Today
SHAK ON IT
Stock Spotlight
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Order Up
Shake Shack is trading well off its 2025 highs. But RBC Capital Markets thinks the worst is behind it.
Analyst Logan Reich started the fast casual chain at Outperform, calling it an inflection story.
The Beef Dividend
Sharper marketing and a more sophisticated supply chain should push same-store sales past Street expectations, with RBC modeling 3.1% growth in 2027 against consensus of 2.2%.
Cheaper beef, according to the analyst, handles the rest. If prices hold off their late-June highs, Reich expects beef inflation to flatten or turn negative by Q2 2027, widening margins through 2028.
There’s a housekeeping angle too. The new CFO scrapped quarterly guidance, which Reich thinks lowers the bar and sets up more consistent beats.
Split the Check
Shares change hands at 11x the Street’s 2027 EV/EBITDA estimate, near the historical trough, while Reich’s target assumes 14.5x against fast casual peers in the high teens.
Of the 28 analysts covering the stock, 15 rate it Buy or Strong Buy. 13 are still reading the menu, but RBC believes the time to order is now.
Do you own any shares of Shake Shack (SHAK)?
OVERHEARD ON THE STREET
📊 The 10-year Treasury yield hit its highest level since 2023 after a smaller-than-expected buyback plan.
🛢️ President Trump said oil and gas prices won’t fall until after the midterm elections.
⚖️ Meta goes to trial in New Mexico, the only state pursuing Cambridge Analytica claims.
☢️ Startup Pacific Fusion is building an Albuquerque fusion facility to test US nuclear weapons.
📱 Apple (AAPL) officially unveiled its first foldable iPhone, the Duo, starting at $1,999.
TUESDAY’S POLL RESULTS
Do you own any shares of Lockheed Martin (LMT)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “There are always wars. As long as men have egos, there will be wars. ”
🐻 Nope, not interested — “The chart says it's a loser. Case closed.”
