TMTB EOD Wrap

Good afternoon. QQQs +1% ahead of Jensen’s keynote, which started at 4pm est. although SOX underperformed. Yields ticked slightly higher. Crude continues to break out +2.3%.

In internet, GOOGL +4.5% as Bloomberg reported AAPL +60bps is in talks to build Gemini’s AI engine into the iPhone, although a deal is by no means certain. Lots of different issues: what kind of regulatory risk does it bring up, whether this is a positive or negative for AAPL, who is paying who and what kind of impact it means for GOOGL. Related to AAPL, we liked this take from @bankbraavos. We also think any kind of additional functionality that helps AAPL sell more iPhones will be viewed as a positive given sentiment has gotten so bad there recently, but some bulls were hoping for an AAPL-centric AI announcement at WWDC or later in the year. In terms of GOOGL, Wells Fargo was one of first on sell-side to try to put numbers around it (assuming AAPL is paying GOOGL) and they said could represent ~$5B in revs and …