HAPPY SUNDAY TO THE STREET.
There’s $7.6T sitting in money market funds — earning more than 4% with no market risk.
With the Federal Reserve widely expected to cut rates next week, many market observers are questioning whether that cash will rotate into stocks and bonds. Wall Street calls it the “wall of cash” theory.
History, however, calls it wishful thinking. In the past, those balances have rarely moved, unless rates go to zero. And it may take a few more all-caps Truth Social $DJT ( ▲ 0.41% ) posts before that happens.
— Brooks & Cas
WILL U-HAUL FINALLY UNPACK VALUE?
A Giant With a Moat
Warren Buffett often speaks of corporate moats. U-Haul Holding $UHAL.B ( ▼ 1.66% ) may have one of the widest.
It dominates do-it-yourself moving, with more than 200,000 trucks, 137,000 trailers, and over 23,000 rental locations across the US and Canada. More than 90% of Americans live within five miles of a U-Haul facility. The company has also built the nation’s third-largest self-storage business, expanding that footprint by about 10% annually.
Yet the stock hasn’t delivered recently. Shares are down more than 17% this year and have returned just about 5% annually over the past decade, compared with around 15% for the S&P 500.
Two Businesses, One Brand
Earnings dropped 40% in fiscal 2025, reflecting higher depreciation tied to trucks purchased at peak prices amid the auto industry’s EV pivot. But some investors argue the value of U-Haul’s storage business alone could equal its $10 billion market cap.
The segment generates about $1 billion in revenue annually with 70 million square feet of space, rivaling CubeSmart’s $CUBE ( ▼ 1.06% ) 48 million. Investor Bill Smead calls the storage unit a “gold mine,” especially since many facilities sit alongside U-Haul rental centers.
Still, the company trades at just 10x EBITDA, compared with 15–20 times for standalone storage REITs. Splitting the two businesses could unlock more value, though Chairman Joe Shoen has emphasized the benefits of keeping them together.
Investor Patience Tested
Frustrated shareholders pressed Shoen at August’s investor day about weak stock performance and thin disclosure. He acknowledged concerns and said he would revisit ideas like buybacks with the board. The company has also raised its dividend modestly, though the yield remains just 0.4%.
Whether U-Haul’s next chapter involves investor-friendly reforms, a business split, or even a potential suitor, its massive footprint ensures it remains a dominant player. For now, the question is less about strength of the brand — and more about whether Wall Street will reward it.
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FOUR MEME STOCKS IN THE SQUEEZE ZONE
Retail vs. Hedge Funds
The meme trade has officially moved past its GameStop $GME ( ▲ 0.32% ) and AMC $AMC ( ▲ 0.36% ) roots, according to JPMorgan $JPM ( ▲ 0.44% ). The bank just unveiled a list of potential new leaders in the space — and they aren’t necessarily the obvious ones.
In a recent note to clients, the bank identified four stocks with high retail buying interest and elevated hedge fund short interest: Hims & Hers Health $HIMS ( ▲ 7.23% ), ImmunityBio $IBRX ( ▲ 0.39% ), Rocket Companies $RKT ( ▼ 0.05% ), and SoundHound AI $SOUN ( ▼ 3.16% ).
“These stocks may experience unexpected flows,” JPMorgan wrote, pointing to the combination of social media chatter and short positioning. The setup, it said, could lead to sudden swings if momentum accelerates.
The Meme Machine Reloads
Recent months have seen day traders tout targets ranging from Opendoor $OPEN ( ▼ 13.78% ) to Krispy Kreme $DNUT ( ▲ 0.32% ), fueled by a broadly bullish market.
The names are new, but the dynamic remains the same: heavy retail enthusiasm on one side, short bets on the other. If prices rise quickly, hedge funds can be forced to cover, creating the classic short squeeze.
Hims & Hers, for instance, slumped after second-quarter results missed revenue expectations, while facing new competition over compounded obesity drugs. Rocket, meanwhile, just hit a 52-week high after Bank of America upgraded it to Buy, arguing the mortgage fintech could benefit from eventual rate cuts.
Squeezes Still Possible
JPMorgan emphasized that meme candidates are not limited to any one sector.
From health care to fintech to AI, retail flows and online discussion remain the common denominators. Whether any of these stocks break out depends on market conditions, but the firm cautioned that both retail and institutional positioning suggest volatility ahead.
If the broader rally continues, these speculative corners may again punch above their weight — a reminder that the meme trade remains a feature of today’s market, not just a relic of 2021.
Which stock do you think will outperform over the next 12 months?
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CINEMA STOCKS’ SECOND TAKE
A Different Reel
The biggest entertainment news this week came from the studio lot: Paramount Skydance $PSKY ( ▲ 7.62% ) is reportedly exploring a sale of Warner Bros Discovery $WBD ( ▲ 16.7% ) , sending that stock soaring.
But Morgan Stanley $MS ( ▼ 0.06% ) says investors looking for film-related trades may want to consider a different corner of the industry. Its sales desk highlighted two cinema names — Cinemark $CNK ( ▲ 0.28% ) and Lionsgate Studios $LION ( ▼ 3.79% ) — as underappreciated small- and mid-caps with potential upside into 2026.
Both carry Overweight ratings and, according to the bank, could benefit from a mix of self-help strategies and a stronger release slate in the years ahead.
Cinemark’s Comeback Script
Cinemark has stumbled nearly 9% this year, but Morgan Stanley’s $35 price target implies about 24% upside from recent levels.
Analyst Benjamin Swinburne believes reports of the theater’s demise may be pure movie magic. He pointed to the potential for box office revenues to climb back toward $11 billion next year, matching 2019 levels.
Recent hits suggest audiences haven’t vanished. The release of The Conjuring: Last Rites gave Cinemark its second-biggest domestic horror opening ever, helping shares gain more than 8% in the past week.
Swinburne said sentiment could reverse more broadly if ticket sales improve in late 2025 and 2026. With more hotly anticipated blockbusters on the horizon — including sequels to Wicked, Knives Out, and Avatar — that’s not hard to imagine.
Lionsgate’s New Slate
Fresh off its split from Starz $STRZA ( ▲ 1.69% ), Lionsgate is now a standalone studio with both film and TV arms.
Morgan Stanley cited a developing theatrical lineup that includes a Stephen King adaptation this fall, a Michael Jackson biopic in 2026, and a Hunger Games prequel later that year.
On the TV side, the company plans to double scripted series deliveries, underscoring its role as a third-party supplier in a consolidating media landscape.
While Lionsgate shares are down slightly this year, Morgan Stanley said the company appears set to normalize earnings as new projects hit screens. For investors seeking alternatives to the mega-cap studio drama, these two cinema plays could be the next act to watch.
Which stock do you think will outperform over the next 12 months?
LAST WEEK’S POLL RESULTS
Are you bullish or bearish on humanoid robots over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish —
“Robots for elderly healthcare should be a great business.”
“I'm Bullish/Bearish. Bullish because I can see how these robotics will drive operational efficiencies. Bearish because I don't like the idea of a humanoid robot in my home.”
🐻 Bearish —
“Not over the next year, but in 2028, absolutely!”
“AI, in my estimation, is an unknown course of events about to happen and may lead to more control over our daily lives than we are prepared to handle. Not good, in my beliefs.”
Are you bullish or bearish on Innodata $INOD ( ▲ 2.61% ) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
And, in response, you said:
🐂 Bullish — “This is the future. AI functions on data, and this company provides it.”
🐻 Bearish — “Just turning an AI platform loose to interpret the random and often fictitious information available on the internet is hampering the real potential of the platforms. ”
Will the spot price of gold reach $4,000 in the next 12 months?
▇▇▇▇▇▇ 👍 Yes
▇▇▇▇▇▇ 👎 No
And, in response, you said:
👍 Yes — “Gold, as well as other materials and assets, will continue to rise as more money printing occurs and global uncertainty remains consistent.”
