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NEWS
Battle Of The AI Billionaires

Source: Tenor.com

The market made up for a lackluster Super Bowl matchup with its own battle between the billionaires shaping the world of artificial intelligence. Some major earnings reports and Trump raising aluminum tariffs to 25% and reinstating 25% steel tariffs also added to today’s excitement. Despite the macro drama, tech soared on the back of semiconductor strength, dragging the major indexes higher. 👀 

Today’s issue covers solid earnings from Monday.com and McDonald’s, the latest billionaire battle over AI, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 9 of 11 sectors closed green, with energy (+2.20%) leading and financials (-0.79%) lagging.

Source: Finviz.com

And here are the closing prices: 

EARNINGS
An “MMM Good” Monday For Earnings 😋 

Many companies reported today, but this title only works if we discuss McDonald’s and Monday.com, so let’s jump into it. 👇️ 

Starting with the work-management software company, Monday.com reported fourth-quarter revenue growth of 32% YoY and revised its 2025 revenue forecast enough to top consensus estimates. Adjusted earnings were also up 66% YoY at $1.08 per share, well ahead of the $0.79 analysts expected.

Management said its AI enterprise-service management product is now out of beta testing and available to all customers, teasing AI agents (artificial intelligence that can act autonomously) that will be launching in March. 🤖 

The company is the latest beneficiary of the recent AI rotation trade, where lower-cost AI like China’s DeepSeek has shifted the focus away from hardware like servers and semiconductors and onto software.

Stocktwits sentiment was ‘extremely bullish’ after today’s 26% rally, but respondents to our poll were less confident. Roughly half of respondents view the stock as overvalued and likely want to see more from the AI story before investing. 👎️ 

Source: Stocktwits

Meanwhile, McDonald’s revenue missed, driven by its worst U.S. sales drop since the pandemic. Revenues of $6.39 billion missed analyst estimates of $6.44 billion, while earnings per share of $2.83 were in line. 📊 

Overall, same-store sales growth rose 0.4%, but the U.S. figure fell 1.4% YoY, more than double Wall Street’s 0.6% estimate. Although traffic was slightly positive, customers spent less than usual, raising concerns that the value meals it relies on to drive traffic aren’t having the desired effect.

However, management pushed back on that concern, saying that the average check size on a $5 meal deal is over $10, indicating customers are adding menu items that aren’t discounted to their orders. Instead, they blamed the impact of the E. coli outbreak on its Quarter Pounder burgers, which hurt customer perception, and overall traffic is still recovering from that hit. 🤮 

Despite shares rising 5% and Stocktwits sentiment hitting ‘extremely bullish’ territory, Stocktwits poll respondents remain mixed on the results. Roughly 61% of respondents see the stock as either ‘fairly valued’ or ‘overvalued.’ 🤷 

Source: Stocktwits

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STOCKS
Other Noteworthy Pops & Drops 📋️ 

Cleveland-Cliffs ($CLF +18%): U.S. President Donald Trump reinstated a 25% all-country steel tariff and raised aluminum tariffs from 10% to 25%.

DMC Global ($BOOM +10%): Received a non-binding buyout proposal from Steel Connect for $10.18 per share, subject to further due diligence.

Barrick Gold ($GOLD +2%): Jumped as gold prices hit a record high above $2,900.

Rockwell Automation ($ROK +13%): Adjusted earnings topped estimates despite revenues falling 8% YoY and it revising its 2025 revenue outlook down by $0.1 billion.

Frontier Group ($ULCC +7%): Barclay’s kept an ‘Overweight’ weighting, raising its price target from $10 to $14 following stronger-than-expected fourth-quarter results.

On Semiconductor ($ON -8%): Missed fourth-quarter earnings estimates and issued worse-than-expected guidance. Shares hit levels not seen since July 2022.

Ubiquiti ($UI -5%): Barclays retained its ‘underweight’ rating and reduced its price target from $236 to $222, as earnings showed a sequential decline in gross margins.

Biodexa Pharmaceuticals ($BDRX +22%): The Cardiff, UK-based company’s stock surge followed the U.S. FDA granting its treatment eRapa a Fast Track designation.

Axsome Therapeutics ($AXSM +21%): Reached a settlement with Teva Pharma (TEVA), resolving all patent litigation related to its depression drug, Auvelity.

Springworks Therapeutics ($SWX +35%): A Reuters report indicated that German healthcare and technology group Merck KGaA is in advanced talks to acquire the company, according to people familiar with the matter.

Hims & Hers Health ($HIMS +7%): The company’s provocative Super Bowl Ad was a hit with investors, as Stocktwits sentiment sat in ‘extremely bullish’ territory. Many see the nearly 26% short interest as potential fuel for further upside.

Rivian ($RIVN +5%): Announced it is opening sales of its commercial vans to fleets of all sizes in the U.S., though retail sentiment remains hesitant.

Mobileye Global ($MBLY +12%): Bank of America (BofA) Securities upgraded the stock to ‘Neutral’ from ‘Underperform,’ raising its target from $12 to $19.

Cloudflare ($NET +4%): Analysts at Susquehanna and Mizuho increased their price targets for the stock while keeping a ‘Neutral’ rating.

GameStop ($GME +10%): The video game retailer’s stock surged on speculation that it might be considering a Bitcoin-related initiative. The rumor was sparked by CEO Ryan Cohen’s photo with Strategy founder Michael Saylor over the weekend.

MicroCloud Hologram ($HOLO -4%): The stock traded to an all-time low after announcing plans to invest up to $200 billion in Bitcoin and other digital assets.

Gorilla Technology ($GRRR +17%): Closed its at-the-money (ATM) offering program, as it prioritizes shareholder interests by avoiding dilutive corporate actions.

TD Bank ($TD +4%): The Canadian bank agreed to sell its entire 10.1% stake in Charles Schwab Corp., using 8 billion Canadian Dollars to buy back its own shares.

COMPANY NEWS
Elon Musk Makes Unsolicited Offer To OpenAI 🤔 

According to reports by CNBC, SoftBank is planning to invest $40 billion in Sam Altman’s OpenAI at a valuation of $260 billion. Interestingly enough, an Elon Musk-led group made a $97.4 billion unsolicited bid for the company, raising the stakes in his battle against Altman.

It complicates Altman’s plans to convert OpenAI to a for-profit company and spend up to $500 billion on AI infrastructure through a joint venture called Stargate. 🙃 

Musk said, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was. We will make sure that happens.” 

In response to the offer, Altman responded to Musk on X, writing, “No thank you, but we will buy Twitter for $9.74 billion if you want.” in what appeared to be a jab at Musk’s takeover of Twitter (now X), which has had mixed success. 😐️ 

Needless to say, the whole thing has turned into a bit of a mess on X, which you can follow along with for your entertainment. How this plays out remains to be seen, but clearly, Musk doesn’t already have enough on his plate and is not backing down from his battle with Sam Altman and OpenAI. ⚔️ 

Super Bowl = boring

Elon vs. Sam = priceless

— Stocktwits (@Stocktwits)
10:08 PM • Feb 10, 2025

While those two battle it out, Google CEO Sundar Pichai spoke at the Paris AI Action Summit, sharing his view that “AI will be the most profound shift of our lifetimes…” and that “the biggest risk in AI is ‘missing out.’ That explains Google’s $75 billion CapEx plan for 2025 and why all tech companies are paying up for their piece of the pie. 🤑 

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Fed Hammack Speech (8:50 am ET), Fed Chair Powell Testimony (10:00 am ET), WASDE Report (12:00 pm ET), Fed Bowman Speech (3:30 pm ET), Fed Williams Speceh (3:30 pm ET). 📊

Pre-Market Earnings: Shopify ($SHOP), Coca-Cola ($KO), OrganiGram Holdings ($OGI), BP ($BP), Marriott International ($MAR), Humana ($HUM), DuPont ($DD). 🛏️

After-Hour Earnings: Super Micro Computer ($SMCI), Upstart Holdings ($UPST), Lyft ($LYFT), Hive Digital Technologies ($HIVE), DoorDash ($DASH), Zillow ($Z). 🎧

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. 👍

Links That Don’t Suck 🌐

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🧑‍💼 Sonos’ chief marketing officer has left the company

⚡️ These 3 semiconductor stocks drew the most retail buzz last week

🚘️ Top 5 auto stocks that got retail traders talking the most last week

🪙 Trump says he has directed US Treasury to stop minting new pennies, citing rising cost

☢️ France pledges to build one gigawatt of new nuclear to speed up its AI ambitions

👀 These 5 health care stocks saw the sharpest retail interest jump last week

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

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