HAPPY FRIDAY TO THE STREET.

TikTok will have its day in court after all. A judge just struck down ByteDance’s bid to dismiss a lawsuit alleging the app’s algorithm is addictive to kids.

Have you been in the same room as a kid in the past five years? Didn’t need a judge to tell me that.

  • πŸŸ₯ | US stocks buckled today as the weight of President Trump’s escalating trade threats caught up with investors.

  • πŸ“ˆ | One Notable Gainer: AMC Entertainment $AMC ( β–² 11.0% ) is partying like it’s 2021, and it’s not just the meme stock resurgence. Wedbush updated the stock on improving box office prospects.

  • πŸ“‰ | One Notable Decliner: Another company with the β€œEntertainment” surname didn’t fare so well. PENN $PENN ( β–Ό 7.62% ) sold off after several states reported weak gaming revenue.

Finally, Coinbase $COIN ( β–Ό 0.49% ) asked its early employees a million-dollar question. Can you answer it?

β€” Brooks & Cas

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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

BP, UNITED, LEVI STRAUSS

$BP ( β–² 3.55% ) BP Signals Strong Oil Trading as Quarterly Production Rebounds (Bloomberg)

$UAL ( β–Ό 4.34% ) US senator says United, JetBlue partnership could harm competition (Reuters)

$LEVI ( β–² 11.25% ) Levi Strauss raises sales guidance, says it will absorb some tariff costs for now (CNBC)

$RUN ( β–Ό 6.99% ) New Trump Order Adds to Pressure on Sunrun and Other Renewable-Energy Stocks (WSJ)

$AVAV ( β–² 11.04% ) / $KTOS ( β–² 11.76% ) US Defense Secretary Fast-Tracking Drone Production a Massive Win for Drone Stocks (YF)

OVERHEARD ON THE STREET

Bloomberg: Trump announced a 35% tariff on Canadian imports starting August 1 and warned of steeper levies if Ottawa retaliates.

CNBC: The US Treasury posted a surprise $27B surplus in June, driven by a 301% year-over-year surge in tariff receipts amid rising trade duties.

WSJ: Kraft Heinz $KHC ( β–² 2.53% ) is planning to spin off some of its grocery division, aiming to revive growth after years of underperformance.

AP: The price of Bitcoin breached $118K for the first time today, fueled by booming spot ETF inflows and crypto-friendly policies in Washington.

Reuters: Walmart $WMT ( β–Ό 0.49% ) suppliers have paused some garment orders from Bangladesh amid Trump’s 35% tariff threat.

Tomorrow's Trade Idea, Today

BOOMING BRAND & BOX OFFICE BUZZ

Turbocharged Home Tech

Analysts believe F1: The Movie could turbocharge a fire-hot stock β€” but probably not the one you think.

Home appliance maker SharkNinja’s $SN ( β–Ό 0.18% ) stock is up 24% since last month and more than 50% over the past 12. But Bank of America $BAC ( β–Ό 0.51% ) sees around 17% more upside in its future, raising its price target to $130 and reiterating a Buy rating.

Why? Two words: Brad Pitt.

The Brad Pitt Effect

Okay, so Pitt wasn’t the only potential catalyst name-checked by the bank. But the bull case does have more to do with the Hollywood star than you might think.

SharkNinja’s marketing reach could get a global boost from Brad Pitt’s role in F1: The Movie, BoA analyst Alexander Perry argued. The company sponsors Pitt’s racing team in the film, and Perry believes doing so could significantly elevate brand awareness in international markets. To date, the film has grossed nearly $300 million globally.

According to the analyst, as the company aims to expand across EMEA, particularly in France and Germany, the film’s success could offer a timely helping hand.

Retail Momentum

The bank is also bullish on SharkNinja’s strong sales momentum and innovation. Perry believes it will continue to gain market share in both new and existing product categories, while new product launches stand to boost wholesale distribution.

Recent Nielsen point-of-sale data shows its North American sales could grow in the mid-single digits for Q2, exceeding its guidance of low-single digit growth. Perry added that better inventory availability at the end of June supported accelerated sales, particularly in core categories like vacuums.

As the company continues to innovate and expand product offerings, BoA expects retail performance to remain a key driver of earnings and investor confidence heading into the second half of the year. 12 of 13 analysts covering the stock seem to agree, rating it a Buy.

Are you bullish or bearish on SharkNinja (SN) over the next 12 months?

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ON OUR RADAR

CNN: Bad Bunny’s 30-show residency is projected to generate nearly $200M for Puerto Rico’s economy during its typically slow summer season.

Reuters: The US effective tariff rate may soon exceed 20%, the highest since the early 1900s, per the International Chamber of Commerce.

BI: Nvidia’s $4T valuation surge is minting millionaires across its 36,000-person workforce, even among mid-level engineers.

Bloomberg: The US and India are negotiating a trade deal that could lower tariffs below 20%, which could give the latter an edge over regional peers.

CNBC: Goldman Sachs $GS ( β–Ό 0.59% ) is testing Devin, an autonomous AI software engineer from startup Cognition, a major step in Wall Street’s AI adoption.

STREET TWEET

Would you have gotten hired?

I for sure wouldn’t have. I’m the guy who thought 2,802 were going to St. Ives…

THURSDAY’S POLL RESULTS

Are you bullish or bearish on Bloom Energy $BE ( β–Ό 1.74% ) over the next 12 months?

β–‡β–‡β–‡β–‡β–‡β–‡ πŸ‚ Bullish

β–‡β–‡β–‡β–‡β–‡β–‡Β πŸ» Bearish

And, in response, you said:

  • πŸ‚ Bullish β€”Β β€œGood to see some advanced technology.”

  • 🐻 Bearish β€”Β β€œOld-fashioned oil is pretty cheap, Houthis notwithstanding.”

Reply

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