HAPPY THURSDAY TO THE STREET
Personal AI agents were sold as wish fulfillment; a little computer to run our digital lives. Well, be careful what you wish for.
Some early users say theirs raided Gmail for login codes, invented personal details, and, in one case, triggered a phone-carrier login alert from Iran. Even Meta's (META) buzzy Muse agent needed a security patch this week.
For corporate America, meanwhile, those interns who just forgot to book business class are starting to look like a bargain…
🟨 | US stocks finished flat today, weighing sharply higher Treasury yields against news of a potential deal that could ease the economic burden of the US-Iran war.
📈 | One Notable Gainer: Meta extended its weekly rally on optimism around its Muse AI agent.
📉 | One Notable Decliner: Oracle (ORCL) slid after sending a force majeure notice on a New Mexico data center project.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
EVERPURE, BLOOM ENERGY, NEBIUS
📈 | Everpure (P) issued preliminary fiscal 2028 revenue guidance well above estimates.
📉 | Bloom Energy (BE) fell alongside Oracle, its fuel cell partner on the New Mexico data center.
📉 | MGM Resorts International (MGM) tumbled after Barry Diller withdrew his takeover proposal.
Tomorrow's Trade Idea, Today
IMAX-IMUM OVERDRIVE
Stock Spotlight
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Now Showing
Imax's recent run may just be the opening credits.
Morgan Stanley initiated coverage with an Overweight rating, arguing the brand is becoming central to the moviegoing experience.
The Odyssey Effect
Analyst Daniel Duran sees a flywheel at work: more screens, more releases, more box office. That loop should power strong earnings and free cash flow growth, he says. (Popcorn sold separately.)
Theaters took notice this summer. The Odyssey, shot entirely on IMAX film, became the fastest release in IMAX history to top $200M at the box office. Who knew an ancient Greek epic could double as a growth story?
Duran called it a wake-up call for studios and theaters. With consumers still paying up for premium experiences, he sees IMAX's brand and tech as well placed to cash in. Morgan Stanley projects IMAX box office will reach $1.7B in 2028, up from $1.5B in 2026.
Critics' Consensus
Wall Street already gave this one good reviews. Of the 14 analysts covering the stock, 12 rate IMAX a Buy or Strong Buy.
Shares have climbed over the past three months. Morgan Stanley doesn't expect the credits to roll anytime soon.
Do you own any shares of IMAX Corporation (IMAX)?
OVERHEARD ON THE STREET
🤝 | The US and China agreed to extend their trade truce by two months during Xi Jinping's state visit.
🏠 | Average 30-year mortgage rates hit 7.03%, topping 7% for the first time since early last year.
📉 | Weekly jobless claims fell to 197K, the lowest since mid-July.
🍗 | Yum Brands' (YUM) KFC opened a Texas test store serving breakfast, a US first.
WEDNESDAY’S POLL RESULTS
Do you own any shares of Amazon (AMZN)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “A sea change in consumer spending has happened, and Amazon owns it.”
👀 No, but I’m interested — “Great information, I hope it’s true.”
