NEWS
Traders Embrace A New “Strategy”

Source: Tenor.com

Lukewarm labor market data and decent earnings continue to provide a tailwind for bulls to keep buying amid Trump’s occasional geopolitical tirades. Meanwhile, MicroStrategy and other names with cult-like followings made their way back into the news. And investors anxiously await more big tech earnings tomorrow and nonfarm payroll data on Friday to close out a busy first week of February. 👀

Today’s issue covers MicroStrategy leading the meme stock move, a pro trader’s analysis of the semiconductor sector, and other noteworthy pops and drops. P.S. today’s issue will be slightly shorter than normal, as we’re facing technical difficulties. We’ll be back with our usual coverage tomorrow. 📰

Here’s the S&P 500 heatmap. 8 of 11 sectors closed green, with real estate (+1.57%) leading and consumer discretionary (-1.13%) lagging.

Source: Finviz.com

And here are the closing prices: 

COMPANY NEWS
MicroStrategy Makes Its Latest Move 🧐 

Software company turned leveraged Bitcoin holding company was slated to report earnings after the bell, but decided to distract the market temporarily with a midday announcement.

The big news? MicroStrategy has rebranded to “Strategy,” fully embracing its pivot as “the world’s first and largest Bitcoin Treasury Company,” among other things… Michael Saylor and team continue to put on a master class in corporate finance and marketing that will go down as case study of what to do (or not do) to drive “shareholder value.” Time (and Bitcoin’s price) will tell. 😬

Source: Businesswire.com

Meanwhile, this headline from IBD sums up the actual earnings report quite well “MicroStrategy Rebrands, Posts Major Loss, Pauses Bitcoin Buying Spree.” 🙃

The company’s adjusted loss was $0.09 per share on $122.4 million in revenue. Subscription services revenue fell 48% YoY, while product licenses and subscription services revenue rose 18.3%. Overshadowing that was the continued execution of its larger capital strategy to buy $42 billion in Bitcoin over the next three years via a 21/21 structure (half debt and have equity offerings).

Shares were down marginally after the bell, with Stocktwits sentiment sitting in ‘bearish’ territory’ as investors digested the news. 🐻

Speaking of stocks with questionable fundamentals but cult-like followings, take a look at Aurora Cannabis and Blackberry, both of which blasted off today.

Aurora Cannabis shares soared 45% after reporting positive free cash flow, sparking hopes for a longer-term turnaround. So far, roughly half of the 1,100 Stocktwits users polled view this as a fundamental shift and turnaround story, while about a quarter of respondents see this as another temporary pop. 🤷

Source: Stocktwits

Meanwhile, BlackBerry is back in the spotlight, rising to a 15-month high after closing the sale of its money-losing Cylance cybersecurity unit.

While the stock still has some work to do long-term, its recent momentum remains to the upside and Stocktwits users are expecting that trend to continue. With earnings not scheduled until early April, we’ll see if the technical trade can continue. 📈

Source: Stocktwits

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STOCKS
Other Noteworthy Pops & Drops 📋️ 

Uber ($UBER -7%): CEO Dara Khosrowshahi said Q4 was the firm’s strongest ever, with accelerating growth across segments. However, first-quarter guidance was weak.

Super Micro Computer ($SMCI +10%): Announced the full production availability of its end-to-end artificial intelligence (AI) data center “Building Block Solutions.”

BigBear AI ($BBAI +46%): The company secured a contract from the U.S. Department of Defense (DOD) to develop a Virtual Anticipation Network prototype.

Novo Nordisk ($NVO +4%): The Danish pharmaceutical giant reported better-than-expected fourth-quarter results, driven by strength in Ozempic and Wegovy.

Tonix Pharmaceuticals ($TNXP -3%): Shares swung wildly following a 1-for-100 reverse split, as it looks to maintain Nasdaq’s $1.00 minimum bid price requirement.

Disney ($DIS -3%): Reported better-than-expected first-quarter results, but subscriber losses for its Disney+ streaming and weak guidance weighed on shares.

Aviat Networks ($AVNW +28%): Analysts at JMP Securities maintained their positive outlook on the stock following strong second-quarter results.

Workday ($WDAY +7%): The enterprise software provider announced a restructuring program as it refocuses on profitability, eliminating 8.5% of its workforce.

Teladoc ($TDOC +6%): Will acquire acquire Catapult, a leading virtual preventive care provider, in an all-cash deal worth $65 million.

Cirrus Logic ($CRUS +6%): The company’s positive third-quarter results led to several analyst upgrades and price target highs, with many citing its largest customer’s health (Apple) as a driver of continued upside.

IDEX Corp ($IEX -10%): The industrial giant’s fourth-quarter results missed estimates.

Toyota ($TM +4%): The Japanese automaker reported its second consecutive quarterly profit decline, but raised its full-year profit forecast, boosting confidence.

Fiserv ($FI +7%): The fintech firm’s fourth-quarter earnings topped estimates, driven by strong growth in its Merchant Solutions and Financial Solutions segment.

Western Union ($WU +6%): Launched international money transfer services with Eastern Caribbean’s digital wallet provider Penny Pinch, adding to strong Q4 results.

Prudential ($PRU -3%): The insurer’s fourth-quarter profit missed estimates, driven by higher expenses, lower net fee income, and less favorable underwriting results.

T. Rowe Price ($TROW -4%): Fourth-quarter earnings missed estimates, with assets under management (AUM) falling 1.5% QoQ and operating expenses rising 7.2%.

Janus Henderson ($JHG +4%): A JPMorgan analyst upgraded it from ‘Neutral’ to ‘Overweight,’ raising his price target from $44 to $53, citing turnaround potential.

PRESENTED BY STOCKTWITS
CMT Lunch & Learn: Brian Shannon (@alphatrends) 

Pro trader and Stocktwits user Brian Shannon breaks down the chip sector, analyzing what’s potentially next for Advanced Micro Devices and Super Micro Computer. Also, key trade setups as stocks react to tariffs, AI news, and earnings.

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Bank Of England Rate Decision (7:00 am ET), Initial/Continuing Jobless Claims (8:30 am ET), Nonfarm Productivity/Labor Costs Q4 (8:30 am ET), Fed Waller Speech (12:30 pm ET), Mexico Interest Rate Decision (2:00 pm ET), Fed Daly Speech (3:30 pm ET), India Interest Rate Decision (11:30 pm ET). 📊

Pre-Market Earnings: Roblox ($RBLX), Peloton ($PTON), Under Armour ($UAA), Eli Lilly ($LLY), AstraZeneca ($AZN), Bristol-Myers ($BMY), Philip Morris ($PM). 🛏️

After-Hour Earnings: Amazon ($AMZN), Pinterest ($PINS), Affirm Holdings ($AFRM), Cloudflare ($NET), Take-Two Interactive ($TTWO), Fortinet ($FTNT), Expedia Group ($EXPE), Illumina ($ILMN), GoPro ($GPRO), Cleanspark ($CLSK), e.l.f. Beauty ($ELF). 🎧

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 🌐

🤔 China no longer has a de minimis trade exemption. What is it?

❌ Workday to cut nearly 2,000 workers on profit focus

🌍 Blackrock plans to launch a Bitcoin ETP in Europe: Bloomberg

🫨 Google owner drops promise not to use AI for weapons

😨 $58 billion Honda-Nissan merger is in deep trouble

🥚 100,000 eggs stolen from one US grocer as bird flu drives up prices

💵 Morgan Stanley sells $5.5 billion of X debt on demand surge

🙄 They lived through Elon Musk’s Twitter takeover. Now, they have advice for federal government employees

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