My predictions were…. terrible. I’m gonna be honest here, I got it completely wrong. Broadcom went up by 9.4% on Friday after it beat investors’ expectations significantly and smoked the doubters(including me) by increasings it AI revenue by 63% year over year. And Dollar Tree, well it flopped hard. It met expectations, but the ‘tariff shock’ caused it to plummet. This week’s predictions will definitely be better- you have my guarantee. Now, let’s get to this week’s market review. As you can see from the title above, the word to best describe the market for this week would be mixed. Earlier in the week, the impending Fed rate cut boosted the market and brought it up. A lot of investors are anticipating a 25 point cut in the September meeting. A strong GDP report for the second quarter that showed better than expected economic growth also boosted investor sentiments. You know how usually, as the week goes on, people get happier cause the weekend is getting closer. Well, the market seems to always get sad as the weekend approaches. Jokes aside though, the market started becoming more cautious and reserved because of a worse than anticipated jobs report. This could be taken as cooling off before the anticipated rate cut, but it still created a nature of caution and volatility in the market. Well, that’s it for this week’s summary. Now… let’s get tot eh predictions section. Hopefully it goes better than last time.
Riser
ADOBE– It’s been a difficult year for Adobe. Adobe has been working with integrating AI into its products like Firefly but it has underperformed with investors worrying that it is not keeping up with its competitors. However, any positive comments on its AI tools would really boost the stock. Growth in its subscription services would also really please investors. However, this doesn’t matter unless the outlook is good for the fourth quarter. IF Adobe reports a good outlook for the final quarter, and all those other pieces fall into place, we could see a huge rise in its stock. You should definitely watch out for it.
Faller
CHWY– Look, I’m not so sure about this one. Investors do have a positive outlook, but if consumer spending or customer acqisition is below par, it will not go well for CHWY. There is also a lot of competition for the pet retail industry, with Walmart and Amazon both competing for market share. CHWY must show that it was able to successfully ward off the competition or it is bound to fall. Its premium 42 dollar price doesn’t help either. That’s it for my predictions. We will go over them next week. To all my viewers, have a great week, on and off the market.
Market Memo 