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Showing posts from June, 2025

Apple Eyes Perplexity Deal as Intel Gears Up for Foundry Comeback

After years of lagging behind in artificial intelligence, Apple ( AAPL ) may be preparing to leap forward.  The company is reportedly exploring a high-stakes partnership—or even a full acquisition—of Perplexity AI, an emerging player in the AI-powered search and chatbot market. According to a recent research note from Bank of America Securities, Apple is reportedly weighing its options with Perplexity, and a deal could help turn the tide for a company that has, until now, been seen as slow to embrace next-generation AI capabilities. Siri, once a trailblazer in voice technology, has fallen behind more conversational, context-aware assistants like OpenAI’s ChatGPT and Google’s ( GOOG ) Gemini. A partnership with Perplexity could address those gaps. Perplexity’s platform offers nuanced Q&A interactions, memory of user prompts across follow-up questions, and the ability to carry out multi-step tasks—precisely where Siri still struggles. The move comes amid growing investor frustrat...

Tech Titans Reignite Investor Optimism as AI and Ad Momentum Drive Growth

Despite fears that artificial intelligence could eat into their dominance, major internet platforms like Meta ( META ), Alphabet ( GOOG ), and Reddit ( RDDT ) are proving their staying power.  According to a fresh research note from Citi following meetings at the Cannes Lions Festival, advertisers are holding steady on budgets, and demand for targeted ad platforms remains strong. As a result, the bank reiterated Buy ratings for all three companies and raised financial forecasts. Meta led the charge with shares climbing nearly 2% to over $711, as the company’s $14.3 billion investment in Scale AI signaled a bold bet on the future of data. Alphabet also saw gains after Citi analysts praised momentum in YouTube advertising and raised revenue projections for both 2025 and 2026. Meanwhile, Reddit’s unique data trove and surging ad growth drew increased attention from Wall Street, helping push the stock more than 5% higher. The broader Nasdaq followed suit, buoyed by optimism that online...

KB Home Delivers Earnings Beat but Trims Outlook as Housing Market Stays Soft

KB Home ( KBH ) delivered better-than-expected earnings for the fiscal second quarter of 2025, offering a glimmer of strength in an otherwise tepid U.S. housing market. Revenue came in at $1.53 billion—down more than 10% from a year earlier but slightly ahead of analyst expectations. Net income fell to $108 million, or $1.50 per share, from $2.15 per share last year. Despite these declines, the company beat Wall Street forecasts thanks in part to a $200 million share buyback effort. Yet the market response was lukewarm. Shares slipped in after-hours trading as the homebuilder slashed its full-year revenue guidance for the second time in a row, now projecting between $6.3 billion and $6.5 billion, compared to the $6.6 billion to $7 billion forecast just three months ago. CEO Jeffrey Mezger acknowledged that the spring selling season fell short of expectations. "Consumers are continuing to demonstrate a lack of confidence about the short term," he said, citing elevated mortgage...

Tesla Ignites Wall Street with First-Ever Robotaxi Launch in Austin

Tesla's ( TSLA ) long-awaited robotaxi service finally hit the streets of Austin, Texas this past weekend—and while the launch was limited in scale, the market’s reaction was anything but.  Shares of Tesla surged nearly 9% Monday, marking the stock’s biggest one-day rally in over two months. The initial rollout featured fewer than two dozen Model Y vehicles operating within a geo-fenced area of Austin, ferrying select social media influencers and investors without a driver behind the wheel. Each ride cost a flat $4.20 and was monitored by a Tesla employee riding shotgun. Though the launch was intentionally low-key—no press event, no CEO fanfare—the development marks a significant milestone for Tesla’s ambitions in autonomous transport. The pilot comes years after Elon Musk originally promised a fleet of 1 million robotaxis by 2020. This time, the promise became (a limited) reality. A Glimpse of the Future, or a Marketing Mirage? Videos posted online from invited riders showed Tesla...

Oil Markets on Edge as U.S. Strike on Iran Sparks Fears of Global Supply Disruption

Global oil markets were jolted over the weekend following a dramatic escalation in Middle East tensions.  After U.S. airstrikes destroyed three of Iran’s nuclear sites, Iran’s parliament voted to close the Strait of Hormuz—an oil artery vital to nearly 20% of global crude flows. While the final decision rests with Iran’s Supreme National Security Council, even the suggestion of closure has injected volatility into energy markets. Crude futures briefly surged, with Brent crude topping $81 per barrel before retreating below $77 as traders digested the initial shock. West Texas Intermediate (WTI) also saw sharp swings, hovering around $74 per barrel by midday Monday. Although the physical flow of oil remains largely uninterrupted, the geopolitical risk premium has risen sharply, with analysts warning of potential spikes to $120–$130 per barrel in a worst-case scenario. The Strait of Hormuz has long been considered a global chokepoint, and any disruption—whether real or threatened—has ...

CarMax Surges on Earnings Beat, Reverses Sentiment After Tough Q4

CarMax ( KMX ), the largest used-car retailer in the U.S., saw its stock jump over 6% after reporting fiscal Q1 2026 earnings that soundly beat expectations.  The company posted earnings of $1.38 per share—42% higher than the same period last year and well ahead of Wall Street’s $1.16 estimate. It marked a welcome reversal from a disappointing Q4, where the company missed on key metrics and suspended long-term guidance due to economic uncertainty. Behind this quarter’s rebound: stronger retail vehicle sales, careful cost management, and modest pricing shifts. Comparable-store used unit sales climbed 8.1%, while total retail vehicle sales rose 9% year-over-year to more than 230,000 units. CarMax also reported a 6.1% increase in total revenue to $7.55 billion, narrowly topping consensus forecasts. The improvement wasn’t isolated to a single month either. According to CEO Bill Nash, all three months of the quarter posted positive results, with April emerging as the strongest—likely bo...

Darden Rises as Delivery and Promotions Fuel Same-Store Sales, Despite Tepid FY26 Forecast

Darden Restaurants ( DRI ) delivered a fourth quarter that exceeded expectations in a critical area: same-store sales. The company reported a 4.6% consolidated increase in same-restaurant sales, with Olive Garden and LongHorn Steakhouse doing the heavy lifting. Olive Garden surged by 6.9%, and LongHorn posted a 6.7% gain—both far outperforming the previous quarter’s growth. These figures reflect a significant rebound in customer traffic and average check sizes compared to earlier in the fiscal year. Olive Garden’s performance was bolstered by the return of its “Buy One, Take One” offer, a popular promotion that had been absent for five years. This program was paired with its existing $6 take-home platform, allowing the restaurant to offer value to price-conscious diners without increasing operational complexity. A partnership with Uber Direct helped drive delivery volumes, nearly doubling weekly deliveries by the end of the quarter. LongHorn Steakhouse also continued to gain market sha...

Microsoft Stock Powers Ahead: Azure, AI, and the High-Stakes OpenAI Drama

Microsoft ( MSFT ) is on a tear in 2025. With its stock up 15% year-to-date—far outpacing the broader S&P 500’s modest 2% gain—Wall Street is clearly bullish.  The driving force? A boom in artificial intelligence, and Microsoft's Azure cloud platform is at the center of it. Businesses are racing to adopt AI tools, and Azure, thanks to its deep integration with OpenAI’s models, has become the go-to platform for many. This AI-powered momentum is showing up in the numbers. Azure’s revenue is growing at a double-digit clip, with AI services now making up roughly half of that growth. Microsoft’s earlier bet on AI—most notably its multibillion-dollar investment in OpenAI—is paying off handsomely.   Revenue, Valuation, and Margin Expansion Microsoft’s financial engine is running strong. Since 2022, annual revenue has jumped from around $198 billion to $270 billion—an increase of more than a third. Meanwhile, the company’s price-to-sales multiple has expanded from 9 to 13.3, refle...

Stablecoin Breakthrough Sends Coinbase and Circle Soaring

Major gains in crypto-linked equities marked Wednesday’s trading session as the U.S. Senate cleared a crucial stablecoin bill. The legislation proposal, known as the GENIUS Act, propelled stablecoin names—especially Circle ( CRCL ) and Coinbase ( COIN )—into sharp focus. This is emerging as a watershed moment for dollar-backed cryptocurrencies and their integration into everyday commerce. Stablecoin Bill Ushers Crypto Into Mainstream Finance The Senate approved the GENIUS Act by a decisive 68–30 vote, setting a regulatory framework for dollar-backed stablecoins like USDC and USDT. With requirements such as full reserve backing, monthly audits, and anti-money-laundering compliance, the bill gives legal definition and legitimacy to stablecoins as digital cash for payments. Circle stock surged more than a third on the announcement, rallying from around $150 to close near $200, and has now gained over 500% since its IPO debut in early June. Market optimism stems from the belief that this ...

La-Z-Boy Posts Mixed Quarter as Economic Headwinds Keep Consumers on the Sidelines

La-Z-Boy ( LZB ), the iconic American furniture brand best known for its recliners and home seating, delivered a mixed performance to close out fiscal 2025. While the company’s top-line results came in above expectations, softness in margins, earnings, and forward guidance reflect the continued weight of macroeconomic uncertainty and consumer caution. Shares traded largely flat following the results, as investors digested both the positives and the persistent headwinds. Retail Resilience Offsets Macro Drag in La-Z-Boy's Fourth Quarter La-Z-Boy’s fourth-quarter revenue climbed 3.1% year over year to $570.9 million, exceeding the high end of its prior guidance. This outperformance was driven largely by an 8% increase in delivered revenue from its Retail segment, bolstered by new store openings and acquisitions. The company reached a key milestone during the quarter, opening its 200th company-owned La-Z-Boy Furniture Galleries store. It now owns 55% of its entire retail network. Howev...

Marvell Technology Climbs on AI Tailwinds, Custom Silicon Growth, and Bold 2028 Roadmap

Marvell Technology ( MRVL ) surged nearly 9% this week, fueled by bullish sentiment following its custom AI silicon event and expanded long-term growth projections.   The chipmaker raised its 2028 data center market forecast to $94 billion, signaling an aggressive push into custom silicon and AI infrastructure—a strategy that appears to be resonating with Wall Street and hyperscaler partners alike. Marvell Expands AI Horizons with $94 Billion Market Target At the heart of Marvell’s bullish roadmap is a projected total addressable market (TAM) of $94 billion for its data center business by 2028, a 26% boost from prior estimates. Custom accelerated computing will drive the lion’s share, expected to hit $55.4 billion—$40.8 billion from custom XPUs and $14.6 billion from XPU attach. That growth hinges on expanding relationships with cloud powerhouses like Amazon ( AMZN ), Microsoft ( MSFT ), and Google ( GOOG ). The company recently announced it added two new XPU clients, bringing its ...