What you Need to Know for June 3rd

New Record Highs. Broadcom after the Bell.

Author

HY Harry
June 03, 2026

Welcome back!

Stocks are at all time highs, with some solid numbers from Palo Alto, plus a lot of positive encouragement around Marvell and other AI beneficiaries. Its another nearly 3,000 word edition, so we’ll get right into it.

Here’s a look at the remaining earnings for this week.

The big item is Broadcom’s earnings after the bell today. They are an integral part of the AI trade at this point.

  • Wednesday: Broadcom, CrowdStrike, Five Below, Macy's, PVH Corp, Thor Industries, Rent the Runway, Tilly's, Veeva Systems, Petco

  • Thursday: Lululemon, Brown Forman, DocuSign, Ciena, Cooper Companies, Guidewire

Here’s a look at economic data this week (estimates are in quotations).

  • Wednesday: ADP employment (120,000), S&P final U.S. services PMI, Factory orders (4.3%), ISM services (53.9%), Fed Beige Book

  • Thursday: Initial jobless claims (215,000), U.S. productivity (0.6%)

  • Friday: U.S. employment report (90,000), U.S. unemployment rate (4.3%), U.S. hourly wages (0.3%), Hourly wages y/y (3.4%), Consumer credit ($18.0B)

Earnings Corner 💸 

  • Palo Alto Networks $PANW ( ▼ 1.1% ) revenue beat at $3.0B vs. $2.94B and EPS beat at $0.85 vs. $0.80. Results were driven by companies deploying more AI applications and autonomous agents, which increased demand for tools that secure networks, cloud infrastructure, identities, and AI systems from increasingly sophisticated cyber threats. That drove stronger customer spending across Palo Alto's platform, helping Next-Generation Security ARR grow 60% to $8.1B and revenue rise 31%. Profitability and free cash flow also improved as Palo Alto integrated acquisitions and scaled its platform business. The company raised both quarterly and full year guidance.

  • Dollar General $DG ( ▼ 3.33% ) Revenue missed at $10.8B vs. $10.82B while EPS beat at $2.00 vs. $1.89. Sales still rose 3.4% y/y as value seeking shoppers, including higher income customers, looked for lower cost essentials, but revenue missed slightly as core lower income consumers remained pressured by higher gas and living costs. Margins expanded from lower inventory losses, reduced product damage, better inventory management, and stronger store execution, helping offset weather and fuel cost pressure. Dollar General raised full year EPS guidance to $7.20-$7.45.

  • Ulta $ULTA ( ▼ 1.18% ) revenue beat at $3.16B and EPS beat at $7.74 vs. $6.86. Results were driven by broad based growth across stores, digital, and major beauty categories as consumers continued spending on skincare, cosmetics, fragrance, and haircare across stores and digital, even while pulling back on larger discretionary purchases. Comparable sales rose 5.3%, reflecting stronger traffic and customer spending, while solid execution and product mix helped drive profitability. Ulta reaffirmed full year revenue guidance and raised its EPS outlook.

  • Gitlabs $GTLB ( ▼ 5.83% ) Top and bottom line beat with revenue at $264M. Results were driven by growing adoption of AI-powered software development tools as companies used GitLab’s DevSecOps platform to automate coding, security, and deployment workflows, boosting large enterprise customer spending. Profitability improved as operating margins expanded, while GitLab announced a 14% workforce reduction to streamline operations and raised full-year revenue and EPS guidance.

  • Victoria Secret $VSXY ( ▲ 47.44% ) Revenue beat at $1.56B and EPS beat at $0.60 vs. $0.30. Results were driven by double digit growth across Victoria’s Secret, PINK, and Beauty as stronger product offerings, fewer promotions, and growing market share with younger shoppers boosted demand. Comparable sales rose 13%, while margins improved as more customers purchased at full price. Victoria’s Secret raised full year sales and operating income guidance.

On The Move 📈 📉

IPO Roundup 📍 

  • SpaceX in talks to cut IPO bank fees to under 0.75%: Lead banks Goldman Sachs and Morgan Stanley will take the bulk of the pool ahead of 21 other brokers on the $75B raise, which targets a $1.8T valuation. The spread is one of the lowest ever for a mega IPO as typical fees run 4-7%.

  • Morningstar values SpaceX at $780B, less than half its $1.8T IPO target: Analyst Nicolas Owens’ DCF model values SpaceX’s launch and Starlink businesses at $611B in enterprise value, plus $170B for the xAI operations, saying investors will have chances to buy in cheaper after the IPO. Morningstar also flagged Musk’s 85% voting control and the $250B xAI merger as governance concerns.

  • Forbright INC. is seeking to raise up to $158M in its IPO, pricing 7.9M shares at $18-$20 for a $994M valuation. The digital bank, chaired by former US Rep John Delaney, has grown assets from $1.9B in 2020 to $7.9B by the end of 2025. Goldman Sachs, JPMorgan, and Barclays are leading the offering.

  • vVardis Holding AG, a Swiss dental startup, is working with JPMorgan and Goldman Sachs on a US IPO that could come this year. The company was valued at more than $1B in April and is likely targeting a higher valuation. Its flagship product, Curodont, is a liquid that repairs cavities without drilling and is now used in 20% of US dental offices.

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Today’s Headlines 📖🍿 

  • AI infrastructure talks dominate Goldman’s leveraged finance conference: Companies have raised $20B+ in US high-yield bonds in the past two months for AI buildout, with Apollo and Blackstone pitching a $36B Anthropic infrastructure deal to investors. Goldman’s leveraged finance head called AI the “number one theme.”

  • Uber caps AI coding tool usage at $1,500 per month per employee: The limit applies to agentic coding software such as Cursor and Anthropic’s Claude Code, after the rideshare giant blew through its full-year AI budget. CEO Dara Khosrowshahi said about 10% of the firm’s code is AI-built.

  • Alphabet plans to raise $80B in equity to fund AI buildout: The raise matches the size of SpaceX’s expected IPO and is less than 2% of Alphabet’s $4.5T market cap. The equity issue comes on top of $85B in bonds raised over the past year as hyperscalers ramp AI spending.

  • Insurers brace for wave of private credit lawsuits: Directors and officers premiums are climbing as insurers tighten terms ahead of expected litigation, with Marsh reporting Q1 renewals up 3% for private credit and PE versus flat for public companies. Federal prosecutors are probing a BlackRock fund’s valuations, with the SEC investigating several other large managers.

  • Cliffwater caps redemptions at 5% after 17% requested out: The $31B Cliffwater Corporate Lending Fund will return only about a third of requested withdrawals this quarter, up from 14% requested and a 7% cap last quarter. Apollo, BlackRock, and Blue Owl have enforced the same 5% cap this year as redemption pressure mounts.

  • Legoland owner Merlin faces $800M+ refinancing wall: Merlin’s HY bonds slid near distress after a Q1 underlying loss, with €720M due November 2027 against £5.4B in net debt. Merlin is now weighing asset sales, sale leaseback deals, seniority swaps, and a possible Legoland spinoff to refinance.

  • QXO’s $3B HY bond to finance its $17B acquisition of TopBuild draws 3x+ demand: Investors placed $10B+ in orders for the bond and $4.5B+ for the $3B loan portion, with both parts of the $6B package expected to price Wednesday.

  • Banks prep $2.5B debt for Long Lake’s $6.3B Amex GBT buy: JPMorgan, Bank of America, Citigroup, and Mitsubishi UFJ will sell the debt the week of June 15. Long Lake agreed to buy the corporate travel platform earlier this year.

  • Broadcom backstop trims yields on $36B Anthropic chip deal: Apollo and Blackstone are arranging the financing, with Broadcom’s guarantee on the $25B main portion pulling yields down to talk of about 5.75%, while the riskier portion may price at 8-9%.

  • 1000+ SpaceX staffers negotiate group wealth deal ahead of IPO: The group, which represents up to $20B in assets, is using collective bargaining to demand sub 0.5% fees from over 20 wealth managers including Morgan Stanley and Creative Planning.

  • Brightline weighs bankruptcy loans after buyer search stalls: The Florida rail, owned by Fortress, is fielding loan offers from competing bondholder groups to fund a restructuring, with major debt payments due June 15 and July 1. Brightline carries $5.5B in debt and posted 3.1M riders in 2025, less than half its projections.

  • CoreWeave-tied data center raises $900M in HY bonds: Elk Grove Village Property priced 5 year notes at 7.5% to fund a Chicago area build fully leased to CoreWeave for 15 years. The deal lifts YTD data center HY issuance past $27B to fund AI capacity.

  • Ken Griffin’s Citadel to pay rival hedge funds for trading ideas: The firm is launching a buyside alpha-capture program inside its Global Quantitative Strategies unit, paying managers for trading signals. Citadel will limit the program to external discretionary managers with an established track record.

  • Citron Research founder Andrew Left found guilty of securities fraud: A US jury convicted the short seller on a securities fraud scheme charge and 12 of 16 other counts, tied to allegations he manipulated stocks including Nvidia and Tesla while making at least $20M. Sentencing is set for August 31.

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M&A Transactions💭 

Worldwide Express, provider of logistics services, was acquired for $5.0B by Auctane. EV/Revenue was 1.0x. J.P. Morgan, Morgan Stanley, Goldman Sachs, and UBS advised on thee sale.

WorlderFi Technologies, a technology company, was acquired for CAD 233.918M by Robinhood (NAS: HOOD). EV/Revenue was 6.34x. Canaccord Genuity, Financial Technology Partners, Origin Merchant Partners, and PowerOne Capital Markets advised on the sale.

Thermon Group Holdings, provides engineered industrial process heating solutions, was acquired for $2.074B by CECO Environmental (NAS: CECO). EV/EBITDA was 21.9x and EV/Revenue was 3.87x. Morgan Stanley advised on the sale.

Swixx Biopharma, provider of research based pharmaceutical and healthcare services, was acquired for EUR 1.5B by SK Capital Partners and Bain Capital Life Sciences. Centerview Partners and Jefferies advised on the sale.

Svalner Atlas Advisors, provider of tax and transaction services, was acquired for $400.0M by Ryan.

Stonehage Fleming Family and Partners, operator of an independently owned family office and wealth management company, was acquired for $850.0M by Corient Private Wealth. Rothschild & Co and Spencer House Partners advised on the sale.

Sleever International, manufacturer and supplier of packaging products, was acquired for $151.0M by CCL Industries (TSE: CCL.A). EV/Revenue was 0.71x. Houlihan Lokey advised on the sale.

Sky Deutschland, operator of a television broadcasting company, was acquired for EUR 445.0M by RTL Group (ETR: RRTL). PJT Partners advised on the sale.

The Low Voltage Motors and Geared Motors Business of Siemens was acquired by Innomotics for INR 22.0B.

Republic Wire, manufacturer of aluminum and copper wire, was acquired for $800.0M by Nexans (PAR: NEX). EV/Revenue was 1.36x.

OpenPayd, developer of an online banking platform, has reached a definitive agreement to be acquired by Titan Acquisition (NAS: TACH) through a $1.15B reverse merger resulting in the combined entity trading on the Nasdaq Stock Exchange under the ticker symbol OP.

Obagi Cosmeceuticals, manufacturer and retailer of skin care products, has entered into a definitive agreement to be acquired for $460.0M by Bridgepoint Group. Lazard advised on the sale.

Mobilewalla, developer of a consumer intelligence platform, has reached a definitive agreement to be acquired by SPACSphere Acquisition through a $172.5M reverse merger. The transaction values the company at $250.0M.

Labrie Group, manufacturer, distributor, and supplier of waste management equipment, has reached a definitive agreement to be acquired for $1.035B by Hiab (HEL: HIAB). EV/EBITDA was 9.16x and EV/Revenue was 2.11x.

Kubra, developer of printed and electronic billing and payment software, was acquired for $372.0M by Repay Holdings (NAS: RPAY). Financial Technology Partners advised on the sale.

Flushing Financial, a bank holding company, was acquired for $1.12B by OceanFirst Financial (NAS: OCFC). EV/Net Income was 32.89x and EV/Revenue was 4.71x. Piper Sandler advised on the sale.

Fine Today, engaged in manufacturing, sales, and marketing of personal care products, was acquired for JPY 200.0B by Bain Capital. EV/Revenue was 1.67x. DC Advisory advised on the sale.

Emerald Publishing, operator of a mission-led social science research publishing house, was acquired for GBP 337.5M by John Wiley & Sons (NYS: WLY).

The Sevasemten and Muscular Dystrophy Business of Edgewise Therapeutics (NAS: EWTX) has reached a definitive agreement to be acquired for $2.65B by Sevier. Centerview Partners advised on the sale.

dbt Labs, developer of analytics engineering tools, was acquired for $3.0B by Fivetran. Morgan Stanley advised on the sale.

D-Fend Solutions, developer of an autonomous counter-drone, has reached a definitive agreement to be acquired for $1.5B by Motorola Solutions (NYS: MSI). Jefferies and Goldman Sachs advised on the sale.

Clean Earth, operator of a waste management and processing company, was acquired for $3.0B by Veolia Environnement (PAR: VIE). EV/Revenue was 3.08x. Bank of America and Jefferies advised on the sale.

BTIG, operator of a global financial services firm, was acquired for $1.0B by U.S. Bancorp (NYS: USB). EV/Revenue was 1.33x. BTIG, SHEUMACK GMA, and Goldman Sachs advised on the sale.

Asset Living, operator of a third-party property management firm, has entered into a definitive agreement to be acquired for $2.0B by New Mountian Capital and Mr. Ryan McGrath. William Blair advised on the sale.

Apfelkiste, operator of consumer electronics accessories and lifestyle products, was acquired for CHF 180.0M by Mobilezone (SWX: MOZN). EV/Revenue was 1.91x.

Qemetica Salz Deutschland, operator of a salt business, has reached a definitive agreement to be acquired for EUR 380.0M by K+S (ETR: SDF). EV/EBITDA was 7.87x and EV/Revenue was 3.15x.

Hyve Group, provider of event-organizing services, has entered into a definitive agreement to be acquired for $1.8B by Hellman & Friedman. J.P. Morgan and LionTree advised on the sale.

Eucalyptus, operator of digital healthcare clinics, was acquired for $1.15B by Hims & Hers Health (NYS: HIMS). EV/Revenue was 2.56x.

Eddyfi Technologies, developer of advanced non-destructive testing inspection technology, was acquired for $1.45B by ESAB (NYS: ESAB). EC Mergers and Acquisitions and Goldman Sachs advised on the sale.

Cygnus Metals (ASX: CY5), an exploration company, has reached a definitive agreement to be acquired for AUD 232.0M by Central Asia Metals (LON: CAML). EV/Cash Flow was 11.7x. BMO Capital Markets advised on the sale.

Corredor Logistica e Infraestrutura, operator of a shipping port terminal, has reached a definitive agreement to be acquired for $835.0M by Abu Dhabi Ports (ADS: ADPORTS). EV/EBITDA was 8.4x.

Baiyinhua Coal Power, manufacturer of coal, aluminum, and electricity products, was acquired for CNY 11.15B by Inner Mongolia Dian Tou Energy (SHE: 002128). EV/Net Income was 6.85x and EV/Revenue was 3.04x.

Astrobotic, developer of space robotic technologies, has reached a definitive agreement to be acquired for $300.0M by Voyager (NYS: VOYG).

Private Placement Transactions💭 

VAST Technology, developer of a generative 3D modeling system, raised $200.0M of Series A+ venture funding led by INCE Capital and China Life Yangtze River Delta Science and Technology Innovation Fund.

Mach Industries, developer of defense aerospace systems, raised $300.0M of Series C venture funding led by Infinite Capital and Ribbit Capital at a pre-money valuation of $1.5B.

Drivenets, developer of a cloud-based networking software, raised $410.0M of Series D venture funding led by Bessemer Venture Partners and Atreides Management at a pre-money valuation of $8.09B.

Twinco Capital, developer of an impact-driven fintech platform, raised EUR 165.0M through a combination of debt and equity. The equity portion of EUR 15.0M was led by FMO Entrepreneurial Development Bank.

Impulse Space, manufacturer of aviation and aerospace components, raised $500.0M of Series D venture funding led by 137 Ventures.

Highland Electric Fleets, provider of fleet electrification services, raised $150.0M of venture funding from Galvanize Climate Solutions and Aiga Capital Partners.

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Odds of the Day 🍒 

Polymarket traders aren’t expecting a near term permanent peace agreement between US and Iran - but they are expecting a deal by year-end.

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