AI CapEx is the largest area of year-over-year cash use growth, followed by research and development.
> up 42% year-over-year > accelerating from 22% Buybacks, on the other hand, are out of favor. 🧐 > Falling to just 1% year-over-year > Had been up 6% Source: Markets & Mayhem
GAMESTOP CEO COHEN SAYS OFFERING TO BUY EBAY FOR $56B: WSJ
Cohen offering $56B for $EBAY, or a 20% premium to the closing price on Friday. He already has a 5% stake Offer is $125 / share in cash and stock. He has a letter from TD Bank to provide $20B in debt financing. According to Cohen: “There is nobody who is more qualified, based on my experience, to run the eBay business," "It could be a legit competitor to Amazon," Source: Negligible Capital
Berkshire Hathaway $BRK.A has now dumped stocks for 14 consecutive quarters, the longest selling streak in its history
Source: Barchart, FT
S&P is considering rule changes that would let newly public companies join its indexes faster with Nasdaq weighing a similar move.
The shift could pull index demand forward for mega IPOs like SpaceX, OpenAI, Anthropic & Databricks. Current requirements for S&P 500 inclusion include the following, including positive GAAP earnings for the last 4 quarters AND the most recent quarter must also be positive, something SpaceX, OpenAI, and Anthropic all definitely do not have currently. Source: Negligible Capital, Bloomberg Intelligence
The market is already pulling forward the next wave of buyers.
Source: TME
SPX spent nearly two weeks consolidating above the major breakout level and is now pushing higher again.
Frustration is building as dip buyers never really got a chance to step in. Source: TME
Apple issued a better-than-expected revenue forecast for the current period after beating on sales and earnings in the fiscal second quarter.
The stock rose about 3% in extended trading. Sales for iPhones missed estimates for the second time in three quarters, the only significant number that came up short of expectations in Thursday’s report. Revenue climbed 17% from $95.4 billion a year earlier, Apple said. It was the first time the company faced Wall Street since the announcement last week that Tim Cook will be stepping down as CEO after 15 years on the job. Apple said on the earnings call that revenue in the June quarter will increase between 14% and 17% from a year earlier. Analysts were expecting growth of 9.5% to $103 billion, according to LSEG. The company’s board authorized an additional $100 billion in stock repurchases and declared a cash dividend of 27 cents per share, up 4%. Sales of iPhones rose 22% in the quarter from a year earlier. Like other consumer electronics companies and device makers, Apple faces supply chain constraints, largely due to the global memory shortage that’s being driven by soaring artificial intelligence demand. Meta and Microsoft said Wednesday that higher memory prices contributed to their increased capital expenditures forecasts for the year. Cook said on the earnings call that the iPhone 17 is now the “most popular lineup in our history” and noted that overall revenue beat guidance “despite supply constraints.” CFO Kevan Parekh said the company faced supply constraints on iPhones and Macs. $AAPL Apple Q2 FY26 (March quarter): 📱 Products +17% Y/Y to $80.2B. 💳 Services +16% Y/Y to $31.0B. • Revenue +17% Y/Y to $111.2B ($1.6B beat). • Operating margin 32% (+1pp Y/Y). • EPS $2.01 ($0.07 beat). APPLE $AAPL GUIDE June Quarter Guide: 🔹 Revenue: Expected to grow +14% to +17% YoY (Est. +9.1%) 🟢 - “best view of constrained supply” 🔹 Services: Expected to grow YoY at a rate similar to March quarter, excluding FX tailwinds 🔹 Gross Margin: 47.5%-48.5% Other Notes: 🔹 iPad faces a difficult compare from the A16-powered iPad launch in the prior year 🔹 March quarter FX was a 2.5-point tailwind to total company growth, with services slightly more favorable Commentary: 🔸 “We’re providing assumes that global tariff rates, policies and their application remain in effect as of this call, and the global macroeconomic outlook does not worsen from today.” Source: WOLF, CNBC
WHAT A SHORT SQUEEZE...
On April 1st, the US-Iran war was in full swing, oil was at $115, the Strait of Hormuz was closed, recession fears were everywhere, and hedge funds were at their most bearish positioning in years. Every major bank was warning of a market crash. Then the ceasefire hit. Oil crashed 22% and Every hedge fund that was short had to cover immediately. Every investor sitting in cash had to chase the rally. The result: - Nasdaq: +16% in April, New all time high. - S&P 500: +11% in April, New all time high. - Russell 2000: +12% in April, New all time high. - Dow Jones: +7% in April. Three major indexes hitting all time highs in the same month while an active war was happening is something that has almost never occurred in market history. Source: Bull Theory
