HAPPY FRIDAY TO THE STREET.
The adulthood starter pack is on backorder. Census data shows a steep drop in 25–34-year-olds who’ve left home, married, or had kids compared with 50 years ago. Many are waiting until they can stand on solid financial ground. Independence first; in-laws later.
🟨 | US stocks were mixed today, with some slipping from record highs as a chip selloff and soggier consumer sentiment weighed, though the Dow eked out a gain on a 12% pop in UnitedHealth.
📈 | One Notable Gainer: Evolv Technologies $EVLV ( ▲ 3.1% ) jumped on a narrowed Q2 loss and a DOJ probe concluding.
📉 | One Notable Decliner: Roblox $RBLX ( ▲ 2.22% ) fell after Louisiana AG sued the company, alleging the platform enables child predators.
— Brooks & Cas
Sponsored by Liquid I.V.
Build your dream bundle to make every sip count this summer. With a variety of crave-worthy flavors, you can mix & match to hydrate your way.
STOCK HEATMAPS
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
Market Movers
UNITEDHEALTH, APPLIED MATERIALS, INTEL
$UNH ( ▲ 1.47% ) UnitedHealth shares jump the most since 2008 after Buffett’s new stake is revealed (CNBC)
$AMAT ( ▲ 1.1% ) Applied Materials Falls On Weak Outlook. CEO Sees 'Increased Uncertainty.' (IBD)
$INTC ( ▼ 3.66% ) Intel stock rises on report Trump administration eyes stake in company (YF)
$CSCO ( ▲ 1.13% ) stock is down 4% today. Here's what we see in our data. (QQ)
$SNDK ( ▲ 2.2% ) Sandisk Stock Drops as Profit Estimates Come Up Short on Fab Startup Costs (Investopedia)
OVERHEARD ON THE STREET
Reuters: Caterpillar $CAT ( ▲ 1.19% ) and Deere $DE ( ▲ 0.48% ) warn tariffs and soft demand are squeezing pricing power and margins.
Bloomberg: Opendoor $OPEN ( ▲ 19.24% ) shares rise as CEO Carrie Wheeler steps down, board begins search.
TechCrunch: ChatGPT’s mobile app tops $2B to date, averaging ~$2.91 per install.
ABC News: AstraZeneca launches at-home FluMist delivery, bringing nasal-spray vaccines to doorsteps.
Reuters: Sen. Hawley opens probe into Meta’s AI policies $META ( ▼ 2.27% ), raising privacy and safety questions.
Tomorrow's Trade Idea, Today
AI SEARCH SHAKEUP
Still Standing Strong
Fears that AI-driven search summaries could drastically reduce web traffic - and hurt companies reliant on search results - could be over-exaggerated. While studies from Pew and Bain show “zero click” AI results are reducing organic web traffic by 15-25%, Google’s $GOOG ( ▼ 0.3% ) earnings tell a much different story.
In Q2, Google parent company Alphabet saw its search business generate $54.2 billion in sales, with total advertising revenue rising 10% to $71.3 billion. Wedbush’s Dan Ives argues that search remains “robust” and believes Google, Meta $META ( ▼ 2.27% ), and others will learn to monetize AI search, turning a threat into a revenue driver.
Winners and Losers
Bank of America $BAC ( ▲ 2.09% ) analysts say Google’s search traffic, share, and mobile user base have remained stable despite rapid AI adoption. According to the bank, this shows that AI may complement, rather than replace, traditional search activity.
However, not all companies are equally insulated. Barclays warns that firms that are heavily reliant on search referrals over direct traffic are more at risk, and will likely be forced to either sacrifice margins or face slower growth. Ebay $EBAY ( ▼ 1.66% ), Nerdwallet $NRDS ( ▲ 0.99% ) and, Airbnb $ABNB ( ▲ 0.31% ) are among the names Barclays believes could be in trouble.
A Balanced Outlook
Despite looming risks, many analysts see reasons for optimism. Robert Pavlik of Dakota Wealth Management noted that AI can summarize results, but must still direct users to purchase sites, meaning transactional searches will continue to drive clicks.
General informational queries will likely take the biggest direct hit, but platforms with strong engagement strategies could still benefit. Pinterest (PINS), for example, is viewed as well-positioned amid search shifts thanks to modernization and deeper user engagement.
AI search will certainly reshape web traffic dynamics, but current evidence suggests it will likely be an evolution of traditional search, rather than its funeral.
Sponsored by Liquid I.V.
Build your dream bundle to make every sip count this summer. With a variety of crave-worthy flavors, you can mix & match to hydrate your way.
ON OUR RADAR
Reuters: At China’s “robot Olympics,” humanoids race, play football, crash in a tech showcase.
CNBC: DOJ sues California to end truck emissions standards enforcement, escalating federal–state clash.
Axios: Trump plan would let private equity tap 401(k) accounts, reshaping retirement options and fees.
CNBC: Court, in split decision, clears Trump to restart CFPB mass firings, reshaping agency leadership.
Axios: LA28 seeks Olympics venue naming rights, opening a new revenue stream ahead of 2028 Games.
THURSDAY’S POLL RESULTS
Are you bullish or bearish on Phreesia $PHR ( ▲ 1.39% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
