Good morning. QQQs -25bps / SPY +2bps on a fairly quiet start to the week macro wise. Bond market closed for the US holiday. Oil +1%. after Houthis hit Saudi airpot in Riyadh.
In Tech, the late week rotation we saw last week continues with Semis -1% leading the way lower early while Software +50bps. META +1.3% leading Megacap higher as Zuck sending good vibes while at a BBQ and Wang sounded positive on a pod; SPCX +1% as Elon says Flight 15 is coming up in next couple of months; CRM +4% on a BofA upgrade; NFLX +1% on positive 3p data; Memory/HDDs following Asia weakness overnight down 2-3%
Overnight, Asia mixed with Korea the big loser: Hang Seng +0.25%, HSCEI +0.25%, SHCOMP -0.43%, Shenzhen -1.79%, Taiwan TAIEX -0.02%, Korea KOSPI -3.65%. Samsung -4.5%; Hynix -4.5%. Largan limit-up despite weaker EPS driven by AAPL miss but stock ripped on positive CPO project commentary.
This week, we get ASML and TSM EPS and OCP and Semicon conferences, but most eyes on Anthropic’s investor day on Wednesday to see what incremental information we get. Unclear if we get any commentary around ARR, but early bogeys seem to be settling in around ~$78-80B for end of Sept…
Lots to get to this morning, so lets get to it…
CRM: BofA upgrades to Buy/$285 from UW/$160, sees enterprise AI stack driving growth reacceleration
BofA says large enterprises are unlikely to replace platforms that own core data, workflows and compliance, easing prior AI-disintermediation concerns. Salesforce’s data + apps + Agentforce + Slack/Claude stack positions it to capture value across enterprise AI, while stronger nnAOV/Slack trends support FY28/29 subscription growth of 10.4%/10.5% vs. 9.9%/10.2% prior. BofA upgrades to Buy and raises PT to $285 from $160.
META: Zuck implies Watermelon a “big model” and “coming soon” while eating watermelon - Video
Interviewer: Question before I go: that watermelon, was it grown at Prometheus?
Zuck: It may have been.
Interviewer: All right. The rumors may be true. We’ll have to see.
Zuck: It is a big watermelon.
Interviewer: I’m catching your drift.
Zuck: It is.
Interviewer: When might I be able to try it?
Zuck: It’s coming soon.
Wang was also on David Senra podcast here. Brief from Ethmos here.