TMTB EOD Wrap

QQQs +1.44% finally look poised to break out to new highs after weeks of better price action underneath the surface and continues to be supportive of buying stocks. Price action in individual names continue to be skewed to the upside — a few that stood out today: SHOP +6% to new highs following their non-blow out print and SNOW +3% shaking off a weak DDOG print, NET +2% following through to more highs. All 3 are examples of stocks that have shown relative strength over the last month and continue to break out now that indexes are participating to the upside. Non profitable Tech +5% outperformed today along with ARKK +3.3%

Yields fell 5-10bps across the curve thanks to dovish under the surface PPI print. Fed expects now at 33bps worth of cuts under the surface. BTC -1%; China flat.

We already covered ROKU ABNB and AMAT in a previous email.

PANW -3% also printed post close. Overall looks fine — NGS ARR a little light vs buyside at $260M vs buyside looking for closer to $275-$285M but better than street at $215M. For Q3, PANW guided Next gen ARR to $5.05B and RPO $13.55 roughly inline with the street, and a little light of bogeys. Investors picking at why PANW didn’t raise NGS ARR despite the beat for the q as they maintained the guide/RPO, slightly increased revs, and raised OPM range by 50bps.

Let’s get to the recap:

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Internet

• RDDT -5% with an admirable performance despite their miss — mgmt did a good explaining away the miss as one-time and that things were back on track in Q1. Story not broken here and price action in consumer facing internet names continues to show investors want to own these names

• TTD -33% as stock when from compounder darling to potential structural loser almost overnight. I was surprised we only got the ISI downgrade, but it’s been such a darling for so long that not surprising sell-side + some LOs still want to hang on thinking this deserves a premium multiple.