What I Am Watching This Morning
Good morning. Running the scanner at 8am and a few things jumped out right away. GameStop reported earnings last night and the numbers were actually good. Revenue up 14%, record quarterly net income, and a $2 billion buyback announcement. The stock is up over 11% premarket and people are going to be trading this hard at the open. That is the most interesting setup on the gap up side today.
Marvell is still running. The stock was up 18% yesterday after Jensen Huang called it a future trillion dollar company and today it is up another 12%. When the Nvidia CEO publicly endorses your stock that kind of momentum does not stop in one session. I am watching MRVL again today for continuation.
The biggest event of the day happens after the close. Broadcom reports Q2 earnings tonight. The market is expecting AI revenue of $10.7 billion which would be up 140% year over year. After what HPE showed us yesterday and what DELL showed us last week the bar is high but the setup is there. AVGO is up 2% premarket just on anticipation. Whatever Broadcom says tonight about AI custom chip demand is going to move the whole semiconductor complex tomorrow morning.
On the down side ABVX is actually bouncing today after that brutal 35% drop yesterday. The Phase 3 data for the ulcerative colitis drug was actually strong. The selloff was driven by dilution from a new share offering not by bad science. Worth watching if it can hold the bounce. The space complex is still giving back with ASTC, LUNR, and RDW all lower again. HPE which was up 29% yesterday is pulling back about 3% today as traders take profits.
Gap Up Scanner This Morning
The gap up scanner has 18 names this morning. The top movers include two micro float names with no specific catalysts that I can confirm, a biotech bouncing after a dilution driven selloff, Marvell continuing the Jensen Huang momentum trade, GameStop on a strong earnings beat and buyback, a crypto mining complex with multiple names moving together, Intel bouncing after recent weakness, BlackBerry, Broadcom up ahead of tonight, and CoreWeave continuing its run. Most of the action is concentrated in the AI chip names and the meme stock trade on GME.
Gap Down Scanner This Morning
The gap down side has 11 names. A micro float name is down nearly 26% with no catalyst I can find which tells me it is a pure reversal of a recent run. Gorilla Technology is down 18% continuing the selloff after missing earnings badly on May 27. The space and drone defense complex is still unwinding with ASTC, LUNR, RDW, ASTS, and RKLB all lower. HPE is giving back some of yesterday's gains. Palo Alto Networks is down almost 3%.
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