Wall Street Breakfast Wall Street Roundup: retail earnings, Reddit volatility, AI momentum
5 snips
May 23, 2025 The discussion kicks off with a deep dive into Target's recent earnings, revealing competitive challenges and market expectations. Retail earnings are analyzed, spotlighting William Sonoma and Reddit's stock volatility. CoreWeave's rapid rise in the cloud market, propelled by a deal with OpenAI, captures attention next. The downgrade of Moody's triple A rating raises concerns in the bond market, with implications for treasury yields. Finally, macroeconomic trends and key inflation indicators set the stage for what's ahead in retail and tech.
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Target's Earnings Impact
- Target's earnings showed a disappointing quarter with lowered guidance and market share loss to Walmart and Costco.
- Despite these issues, the stock's reaction was muted, indicating that bad news was already priced in.
Reddit's AI Challenge
- Reddit stock showed extreme volatility but ended roughly flat over the past month.
- The core concern is AI-enabled search changing user habits and potentially reducing Reddit's traffic and revenue over time.
CoreWeave's AI Infrastructure Boom
- CoreWeave's recent surge highlights strong investor interest in AI infrastructure plays.
- Its $4 billion deal with OpenAI signals sustained AI spending despite earlier concerns about cutbacks.