HAPPY THURSDAY TO THE STREET
2032’s hottest IPO: Theranos 2.0?
The failed blood-testing startup’s disgraced founder Elizabeth Holmes is currently just few years into her 11-year sentence for defrauding investors. But she’s also everywhere right now, thanks to the viral trailer for Nathan Fielder’s forthcoming documentary on Holmes, You Can See Everything, not to mention her X account. Holmes posts 20+ times a day from a federal prison camp without internet access.
How? Her partner is reportedly the one doing the tweeting. Why? Raising money for a stealth blood diagnostics startup, of course. Makes for great engagement bait… but anyone seriously considering investing should get a second opinion.
🟥 | US stocks fell again today, as rising oil prices and Treasury yields ignited a risk-off in high beta chip stocks.
📈 | One Notable Gainer: AeroVironment (AVAV) soared after crushing Q1 estimates.
📉 | One Notable Decliner: Biohaven (BHVN) tanked after the FDA put a partial clinical hold on its epilepsy drug.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
AMERICAN EAGLE, MACY'S, ELEVANCE
📉 | American Eagle Outfitters (AEO) missed Q2 comp sales estimates and issued weak Q3 profit guidance.
📉 | Macy's (M) forecast a wider-than-expected Q3 loss.
📈 | Elevance Health (ELV) said Q3 EPS is tracking ahead of its prior outlook.
📉 | Navan (NAVN) plunged despite narrowly beating Q2 earnings estimates.
📉 | Cooper Companies (COO) guided fiscal Q4 revenue and earnings below Street estimates.
Tomorrow's Trade Idea, Today
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Bend It Like Apple
The iPhone has a new look, and BofA's Wamsi Mohan likes the shape of things. The analyst maintained his Buy rating on Apple after its iPhone Duo debut.
Mohan sees the Duo as Apple’s first meaningful form-factor change in a long time, with hardware and software that mesh seamlessly. The folding screen enables iPad-like productivity, which he believes widens Apple's addressable market.
Priced to Move
At $1,999, the Duo landed well below the $2,300 to $2,500 many investors expected, per Morgan Stanley (MS). The firm reads it as Apple choosing adoption over near-term margins.
JPMorgan (JPM) likes the pricing too, seeing a chance to lure switchers from rival foldables. The price undercuts Samsung's Galaxy Fold7 by a single dollar.
Split Screen
Not everyone is sold. Needham notes foldables are just 5% of the smartphone market, a sign of weak demand. UBS (UBS) and Jefferies (JEF), meanwhile, carry targets below the current share price.
Shares rose today in the wake of the event, bucking a history of post-launch fizzles BoA itself flagged. The Street is split down the crease. BoA is betting the hinge holds.
Do you own any shares of Apple Inc. (AAPL)?
OVERHEARD ON THE STREET
💵 | President Trump promised every adult US citizen a $5K "dividend" if Republicans win the House and Senate, a pledge that would cost $1T and drew backlash from both sides of the aisle.
📊 | Core wholesale prices rose 4.6% annually in August, raising the odds of a rate hike at the Federal Reserve’s meeting next week.
🏠 | Existing-home sales fell 2% in August to their lowest level in over a year.
🇪🇺 | The European Central Bank raised rates a quarter point to 2.50%, targeting energy-fueled inflation.
🤖 | OpenAI launched ChatGPT for Financial Services, taking aim at junior bankers' work.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Shake Shack (SHAK)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐻 Nope, not interested — “Proxy for MCD and other fast foods. There's no money to be made there. Hard pass.”
