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CLOSING BELL
Prices Are Not Climbing, It’s An Illusion

The market closed at record highs Tuesday, buoyed by inflation numbers that went nowhere in July and Airline industry enthusiasm.

Core inflation on service prices excluding food climbed, worrying some economists that inflation is still stubborn. Airfares jumped by the most since the pandemic, sending airline stocks flying. Still, tariff-heavy segments of consumer spending like toys and household goods slowed their price increases in the past month, and housing costs were steady.

Goldman Sachs economists found U.S. consumers only absorbed around a third of tariff price raises so far, but if pauses keep ending, that might double. The president said those economists should be replaced, and Chief Solomon should stick to DJing. 🔈️ Eyes look toward the oft-criticised FOMC to cut rates in September, as futures and bets predict a 90% chance of a cut. 👀

Today’s issue covers Perplexity wants to buy Chrome, Cava disappoints after hours, and more.  📰

All sectors closed green. Communications $XLC ( ▲ 1.91% ) lead and real estate $XLRE ( ▲ 0.17% ) lagged.

$SPY ( ▲ 1.07% ) $QQQ ( ▲ 1.26% ) 

$IWM ( ▲ 2.97% ) $DIA ( ▲ 1.06% ) 

STOCKS
Everything’s For Sale, Just Need To Perplex ‘Em With The Right Offer 💢 

Perplexity AI made an unsolicited $34.5B bid in all cash for Google Chrome on Tuesday. The company would gain three billion users toward its business model, offering an AI search-for-anything app. The unicorn pledged to keep Chromium alive, the open-source underbelly of Chrome that many other internet browser apps use. 🦄 

Google did not respond to media outreach on the story, but the news comes after a long road to a potential split with the internet browser. Last year, a U.S. court ruled Alphabet held an unlawful monopoly in online search, and recommended a Chrome divestiture as a remedy. A federal judge is expected to rule on remedies to Google’s unlawful monopoly this month, according to Reuters. 

Perplexity might not even have the cash. The AI startup has only raised $1B so far from investors like Softbank and Nvidia, valued last at $18B in a $100M funding round this year. What’s more, DuckDuckGo’s Chieg Gabrield Weinberg said Chrome may fetch upwards of a $50B if Alphabet is forced to sell. 🪝 

It’s not the first project Perplexity has tried to glob onto. The company proposed a merger with TikTok in January, a potential exit from a nearly years-long political drama surrounding the possible Chinese control of the scrolling video giant. 🇨🇳 

SPONSORED
The Infrastructure Company Building Bitcoin’s Future

Bitcoin Depot (Nasdaq: BTM) is the world’s largest Bitcoin ATM operator. With over 8,500 kiosks worldwide and over $3B in total transaction volume since 2016, they’re not just offering users a streamlined way to buy Bitcoin; they’re leading an industry primed for exponential growth.

Here’s a snapshot of their Q1 2025 financials: 

• Revenue up 19% YoY to $164.2M

• Q1 net income up to $12.2M vs. net loss of $4.2M in Q4 2024

• Adjusted profits up 92% YoY to $33.1M

Their growth is driven by Bitcoin ATM usage, not Bitcoin’s price. They have historically generated revenue regardless of Bitcoin’s price swings. 

They’re also focused on a Bitcoin treasury strategy, giving investors some additional exposure to Bitcoin’s potential growth trajectory and adding their name to a list of forward-looking companies riding the crypto adoption wave.

The above is for general informational purposes only and is not investment advice nor does it constitute an offer, recommendation, or solicitation to buy or sell a particular financial instrument. Bitcoin Depot is not a registered investment adviser under the U.S. Investment Advisers Act of 1940. Nothing contained herein constitutes a solicitation, recommendation, endorsement, or offer by Bitcoin Depot to buy or sell any securities or other financial instruments

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

COMPANY NEWS
One Fast Casual Bowl Brand To Rule Them All: Maybe Not Cava 🥗 

$CAVA ( ▲ 2.67% ) fell big time after hours, after the salad bowl-selling fast food company reported a revenue miss Tuesday night.

Q2 rev came in at $278M, missing estimates by nearly $10M. Shares fell 20%, despite 20% YoY revenue growth for Mediterranean fast casual sales.

Co-founder and Chief Brett Chulman said they have just opened their 400th store, on track for 1k Cava locations by 2032, though the company cut its same-store sales growth to 4%-6%, down from prior guidance this year.

In the highly competitive ‘expensive lunch’ stock space, a revenue miss was not going to cut it for Cava

Links That Don’t Suck 🌐

🐕️ Make smarter investing decisions all summer long with IBD Digital—try 3 months for just $30 *

⚠️ The computer science dream has become a nightmare

📺️ US deficit jumps nearly 20% in July despite tariff revenue surge

🧠 Former Googlers’ AI startup OpenArt now creates ‘brain rot’ videos in just one click

👀Tropical Storm Erin could become the first Atlantic hurricane of the 2025 season

🏠️ Trump threatens Fed chair Powell with ‘major lawsuit,’ demands interest rate cut

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

POPS & DROPS
Top Stocktwits News Stories 🗞️ 

Don’t miss a story! Follow @StocktwitsNews for a live feed in real time. ✍️ 

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Crude Oil Inventories (10:30 AM), Cushing Crude Oil Inventories (10:30 AM), FOMC Member Bostic Speaks (1:30 PM). 📊

Pre-Market Earnings: OrganiGram Holdings ($OGI), Perspective Therapeutics ($CATX), Worksport ($WKSP). 🛏️

After-Hour Earnings: Vaxart ($VXRT), Cisco Systems ($CSCO), Aterian ($ATER), Capricor Therapeutics ($CAPR). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

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