TMTB Morning Wrap
TMTB Vacation schedule:
No posts this Wed through Friday (June 24 - 26).
Only Morning Wraps from June 29th through July 2nd
No posts July 20th - July 24th
Good morning. Futures flat but semis +1% bid early with memory and HDDs following last week’s pattern of leading the way higher: WDC +5%; MU 4%; SNDK +4%; STX +4% following strength in Asia. We get MU earnings this week on Wednesday (bogeys below).
Asia generally green: TPX +1.24%, NKY +1.55%, Hang Seng -0.65%, HSCEI -0.77%, SHCOMP +1.78%, Shenzhen +1.7%, Taiwan TAIEX +2.75%, Korea KOSPI +0.69%. SK Hynix +7.5%; Samsung +2%; TSMC +4%.
Let’s get to it…
APP: Citi Removes Positive Catalyst Watch as eCommerce Customer Growth Takes Longer to Materialize
Citi removed its positive 90-day catalyst watch after concluding Axon’s eCommerce customer ramp is likely to be more gradual than previously expected. Recent Store Leads data showed Axon’s Shopify customer count declining 2% week-over-week to 10,282, driven primarily by a sharp drop in Hong Kong stores, though Citi believes the weakness reflects a one-off data issue rather than elevated churn. The firm remains constructive on Axon’s long-term opportunity, but now expects customer acquisition to favor a more deliberate, higher-quality onboarding approach that reduces churn risk at the expense of a near-term inflection in client growth.