HAPPY TUESDAY TO THE STREET
Microsoft (MSFT) Copilot is getting copilots. The tech giant is merging its consumer and commercial Copilot teams under a new executive, while former chief Mustafa Suleyman pivots to a parallel "superintelligence" project. Might be just what the firm’s lagging AI business needs to find its wings.
🟩 | US stocks ticked up today, led by energy, which gained as the price of oil surged.
📈 | One Notable Gainer: Uber (UBER) gained after announcing a partnership with Nvidia to deploy robotaxis on its platform beginning in 2027.
📉 | One Notable Decliner: Tencent Music (TME) plunged after gross margin and mobile monthly active users both missed Wall Street estimates.
— Brooks & Cas
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
PREDICTION MARKET SNAPSHOT
Step 1: AI-driven layoffs. Step 2: Credit efficiency. Step 3: Profit?
Meta (META), Block (XYZ), and Wisetech (WTCHF) all tried this formula recently. Short-term stock pops did ensue… with long-term results decidedly mixed.
Whether the trend will hold through year-end remains an open question. But prediction markets, for their part, seem pretty sure it only gets worse from here.
Market Movers
DELTA, ELI LILLY, QUALCOMM
📈 | Delta Air Lines (DAL) raised first-quarter revenue guidance to high-single-digit growth after demand momentum offset rising fuel costs.
📉 | Eli Lilly (LLY) got an HSBC downgrade over concerns that the weight-loss drugs market is inflated.
📈 | Qualcomm (QCOM) raised its quarterly cash dividend and authorized a new $20 billion stock repurchase program.
📉 | Honeywell International (HON) CEO Vimal Kapur warned the Iran war could have a high-single-digit impact on first-quarter revenue.
📈 | Six Flags (SIX) jumped after Jana Partners reportedly pushed for a company sale and a new board chair.
Tomorrow's Trade Idea, Today
ALIGNED WITH THE BULLS
Stock Spotlight
Braces for the Call
The Rating: Analyst Glen Santangelo upgraded Align Technology to Overweight, citing improved risk/reward following a conflict-driven pullback from February highs.
The Thesis: With ALGN trading at 10x EBITDA and quarterly momentum confirmed by both earnings results and web traffic data, Santangelo believes the sell-off reflects headlines rather than fundamentals.
The Follow-On: Watch website traffic trends for Align's homepage and My Invisalign page. Santangelo flagged both as real-time indicators already running ahead of the consensus revenue model for the current quarter.
OVERHEARD ON THE STREET
✈️ | A storm system and TSA staffing shortages tied to the government shutdown combined to cancel more than 1,000 US flights on Tuesday.
At least 55 days: 59%
At least 60 days: 54%
At least 70 days: 44%
🛢️ | Iran launched fresh drone attacks on UAE energy infrastructure, sending international Brent crude to $102 per barrel.
⚖️ | National Counterterrorism Center Director Joe Kent resigned over the Iran war, the first major Trump administration departure since hostilities began.
🤖 | OpenAI plans to deprioritize side projects to refocus on coding and enterprise customers, citing Anthropic's success as a "wake-up call."
MONDAY’S POLL RESULTS
Are you bullish or bearish on Abivax (ABVX) over the next 12 months?
▇▇▇▇▇▇ 🐂 Bullish
▇▇▇▇▇▇ 🐻 Bearish
