HAPPY MONDAY TO THE STREET
It’s hard enough for self-directed investors to make sense of earnings reports as is. Bank of America (BAC) CEO Brian Moynihan goes out of his way to complicate them even more.
The bulge-bracket chief makes a game out of slipping archaic words like “gainsay” and “fantods” into earnings calls. Insiders hand him a random one right before he goes on, and he treats using it correctly as a challenge.
The Street just keeps getting more anfractuous by the day.
🟥 | US stocks slid today as US-Iran relations continued to devolve, putting upward pressure on oil prices.
📈 | One Notable Gainer: Intuitive Machines (LUNR) rose after a customer greenlit work on a $600M multisatellite communications program.
📉 | One Notable Decliner: EyePoint Pharmaceuticals (EYPT) plummeted nearly 70% after its wet AMD treatment missed its primary goal in a Phase 3 trial.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
INTEL, JETBLUE, SANDISK
📈 | Intel (INTC) CEO Lip-Bu Tan bought more than 105K shares at $95 each.
📉 | JetBlue (JBLU) was cut to Neutral at Seaport Research Partners.
Tomorrow's Trade Idea, Today
SOFI, SO GOOD
Stock Spotlight
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Against The Grain
The Street consensus on SoFi is a shrug, but Piper Sandler isn’t giving it the cold shoulder.
Analyst Patrick Moley started coverage at Overweight, arguing the fintech is riding two tailwinds at once.
Refi Or Not
The first potential catalyst is a large and growing addressable market in lending and debt consolidation aimed at younger, creditworthy borrowers.
The second is a product flywheel that keeps pulling in new members and selling more to existing ones.
Specifically, Moley sees room to run in refinance activity among high-earning, prime credit millennials. Credit card and student loan refinancing map neatly onto the liability profile of SoFi's target borrowers, per the analyst.
The Hold Crowd
Shares are in the red year to date. But Moley reads that underperformance as an attractive entry point for long term investors rather than a red flag.
Momentum is already there. The stock has rebounded 17% over the past three months, with strong second quarter earnings doing most of the lifting.
Still, of the 24 analysts covering SoFi, 12 rate it a Hold and just eight have it at Buy or Strong Buy. Piper is early, loud, and alone. For some investors, that’s the most appealing setup there is.
Do you own any shares of SoFi Technologies (SOFI)?
OVERHEARD ON THE STREET
🌍 President Trump threatened to bomb Oman if it interferes with the US blockade of Iranian ships in the Strait of Hormuz.
📊 The 30-year Treasury yield topped 5.31%, its highest since 2007, as oil climbed and investors weighed US deficits over inflation.
🎬 Paramount Skydance (PSKY) asked a judge to make 12 state AGs post a $1.88B bond covering the cost of delaying its Warner Bros Discovery (WBD) merger.
🛩️ L3Harris (LHX) ousted CEO Christopher Kubasik over a code of conduct violation, and named its pace and communications chief to replace him.
⚖️ Four states are taking Meta (META) to trial in Oakland seeking as much as $1.4T in damages over youth mental health harms.
FRIDAY'S POLL RESULTS
Do you own any shares of ERock (EROC)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “Not interested in supporting a company that could ruin my quality of life by providing power to a dubious enterprise of unproven longevity of massive AI computing centers, NIMBY!”
👀 No, but I’m interested — “This looks like an interesting company. More of a system integrator that a developer of prime mover electric generators. LNG generators are a bit less efficient than diesel technology and significantly less efficient than gas turbine with combined cycle technology, particularly with steady state loads.”
