What you Need to Know for June 5th

S&P rejects the fast track. Broadcom cools the AI trade.

Author

HY Harry
June 05, 2026

Welcome back. Well, as Broadcom goes, so goes the AI trade…with chipmakers struggling yesterday after Broadcom’s weaker numbers. $MU ( ▼ 7.74% )  $ARM ( ▼ 4.47% )  $AMD ( ▼ 3.56% ) and $IREN ( ▼ 5.53% ) were among some of the names that cooled off. The KOSPI (at time of writing) is hobbling as well, down -5%, as South Korea’s stock index is now more than 50% Samsung and SK Hynix! The KOSPI has remarkably traded up 90% YTD and +191% y/y and is overall a great barometer for memory chip sentiment.

Let’s get into it.

Active Buyside Hub Search: A Family Office is hiring an Associate to focus on control investments in consumer products businesses with $30mm to $250mm in revenue.

Here’s a look at economic data set to be released this morning:

  • 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 💸 

  • Broadcom $AVGO ( ▼ 12.59% ) revenue missed at $22.2B vs. $22.3B, while EPS beat at $2.44 vs. $2.40. Results were driven by hyperscalers and AI companies including Google, Meta, OpenAI, and Anthropic expanding AI infrastructure, driving AI semiconductor revenue up 143% to $10.8B. However, that strength was partially offset by weaker than expected infrastructure software revenue, causing overall sales to narrowly miss expectations, while strong AI chip sales helped drive the EPS beat. Despite strong AI demand, management maintained rather than raised its full year AI revenue outlook, disappointing investors.

  • CrowdStrike $CRWD ( ▼ 3.82% ) revenue beat at $1.39B vs. $1.36B and EPS beat at $1.10 vs. $1.07. Results were driven by rising demand for AI-focused cybersecurity as companies invested in tools to detect, protect, and respond to faster AI enabled attacks across cloud, identity, and endpoint systems. That helped ARR grow 24% to $5.5B, with strong adoption of Falcon modules, AI detection, cloud security, and identity products. CrowdStrike raised its full year net new ARR growth outlook and announced a 4-for-1 stock split.

  • Petco $WOOF ( ▼ 6.07% ) revenue beat at $1.50B while EPS missed. Results were driven by improving demand in consumables, particularly cat products, along with continued growth in veterinary, grooming, and training services. Comparable sales returned to positive growth as new products, fresh and frozen pet food offerings, and seasonal categories helped drive traffic, while ongoing investments in marketing and omnichannel initiatives weighed on earnings. Petco reaffirmed its full year outlook.

  • Lululemon $LULU ( ▼ 0.88% ) revenue beat at $2.47B and EPS beat, but the beat was overshadowed by weak guidance. Sales were supported by international strength, especially China, but North America remained the problem as Americas comps fell 5% from weaker traffic, negative brand commentary, and product launches that failed to drive enough demand. Margins were pressured by more discounting, tariff costs, and the loss of de minimis duty free shipping benefits. Lululemon cut full year revenue and EPS guidance.

  • DocuSign $DOCU ( ▼ 2.79% ) Top and bottom line beat with revenue at $830M. Results were driven by growing adoption of DocuSign’s AI-powered Intelligent Agreement Management platform. DocuSign slightly raised full year revenue guidance, though the outlook was largely in line with expectations.

  • Five Below $FIVE ( ▼ 13.78% ) revenue beat at $1.29B and EPS beat at $2.22 vs. $1.79. Results were driven by strong customer traffic, social media-driven product trends, higher tax refund spending, and broad-based strength across categories including toys, collectibles, beauty, candy, and seasonal products, helping comparable sales jump 22.7%. Margin expansion and operating leverage drove the EPS beat as sales grew faster than expenses, allowing more revenue to flow through to profits. Management raised full-year sales and EPS guidance but remained cautious on consumer spending and tariffs.

  • Macys $M ( ▲ 5.64% ) revenue beat at $4.68B and EPS beat at $0.13. Results were driven by strong growth at Bloomingdale’s and continued momentum at Macy’s reimagined stores, where investments in assortment, staffing, and customer experience boosted comparable sales 3%, the strongest 1Q performance in four years. Management raised full year sales and EPS guidance.

On The Move 📈 📉

IPO Roundup 📍 

  • SpaceX set a fixed $135 per share price for its IPO, opting for a specific price rather than a range to simplify the listing process. The company plans to sell 555.5mm shares to raise close to $75B at a $1.77T valuation, with trading set to begin June 12.

  • Databricks plans to skip an IPO this year, with CEO Ali Ghodsi calling it a “terrible year to go public” in a Bloomberg interview Thursday. The data software firm, last valued at $134B in a December funding round, wants to wait for better market conditions - although frankly, we don’t know what they’re talking about given how hot the IPO market is looking this year.

  • Sunshine Silver Mining & Refining Co. closed 27% above its $13.50 IPO price in its debut Thursday, raising $270M in an upsized offering for a $2.42B valuation. Morgan Stanley, Bank of Nova Scotia, and Bank of Montreal led the offering.

  • Parabilis Medicines is seeking to raise $475M in its IPO, pricing 25M shares at $17-$19 for up to a $2.1B valuation, with Regeneron also buying $75M in stock at a 10% discount alongside the IPO. Leerink Partners, BofA Securities, Evercore ISI, Guggenheim Securities, and LifeSci Capital are leading the offering.

  • Quantinuum opened 13% above its $60 IPO price in its Nasdaq debut Thursday, raising $1.68B for a $17.6B valuation after selling 28M shares versus 26.5M originally planned.

  • Gas engine maker Innio Holding GmbH raised $2.43B in its Nasdaq debut Thursday, closing 23% above the $27 IPO price for a $25.5B valuation.

Btw - from looking at Polymarket, Morgan Stanley is currently in the lead to lead Anthropic’s IPO:

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Today’s Headlines 📖🍿 

  • S&P rejects fast-track index entry for SpaceX and other mega-IPOs: Unlike Nasdaq and FTSE Russell, S&P will keep its 12-month seasoning period and profitability requirements, meaning SpaceX won’t be S&P 500-eligible until at least June 2027.

  • Bank of America hires 2,000 summer interns and 2000 full-time recruits: BofA is hiring at a similar pace to last year, with CEO Brian Moynihan saying,” we need young people” as the firm brushes aside AI job fears. Global talent head Josh Bronstein said BofA is using AI to create capacity while keeping overall headcount steady.

  • Blackstone caps redemptions at 5%: The $79B BCRED limited withdrawals for the first time after investors sought to pull 10%, a reversal from last quarter when senior executives used personal cash to fund the full 7.9% requested. Cliffwater also capped at 5% after investors sought 17%.

  • Jane Street plans to build and finance its own data center: The trading firm is in early talks with tech, crypto, and finance firms about a 100-200 MW facility on top of an existing Dallas data center and CoreWeave partnership. Jane Street is targeting a 10x capacity increase, which could train internal AI models.

  • Airbnb CEO Brian Chesky plans to start a new AI lab: Chesky is in the early stages of funding the new AI venture, which will develop its own AI models with a focus on user interaction and design. He will remain CEO of Airbnb and will not serve as chief executive of the new lab.

  • Apollo’s James Zelter warns of Treasury crowding-out: Corporate bond sales reached $1T faster than any year since 2020, driven by AI and industrial capex. Apollo’s president says corporate demand for long-duration capital is large enough to structurally pressure government debt yields.

  • PE and private credit firms sitting on $632B in aging dry powder: Buyout and credit funds raised in 2020-2022 are struggling to deploy capital as high valuations and deal scarcity push investment periods toward expiration. 40%+ of dry powder is over 2 years old, 15 points above the five-year average.

  • Small business hiring plans hit six-year low: An NFIB survey shows only 9% of owners plan to add jobs, down 4 points in a month and contradicting BLS data that jumped to a two-year high the same week.

  • Ackman exits Universal Music Group stake after failed takeover: Pershing Square is selling its remaining 80.6M shares at a 3-8% discount via a BofA block sale, booking a $600M profit. The exit comes days after UMG unanimously rejected his €55.75B takeover bid.

M&A Transactions💭 

YFood, operator of a food processing company, has reached a definitive agreement to be acquired for EUR 450.0M by Nestle (SWX: NESN).

Ultima Furniture Systems, manufacturer of wooden kitchen furniture, has reached a definitive agreement to be acquired for GBP 390.0M by Howden Joinery.

Scrunch AI, developer of a leading platform designed to help brands gain visibility, was acquired for $225.0M by Sitecore Holding II.

The Power Systems Division of Rheinmetall has reached a definitive agreement to be acquired for EUR 350.0M by Aequita.

JustPlay, developer of a mobile gaming infrastructure platform, was acquired for $202.0M by NCSoft (KRX: 036570). Aream & Co. advised on the sale.

Imetame Logstica Porto, operator of a container port terminal, was acquired for $216.0M by Hanseatic Global Terminals. BR Partners Investment Bank advised on the sale.

Hartford Funds, provider of asset management, has reached a definitive agreement to be acquired for $1.9B by Wellington Management. Goldman Sachs advised on the sale.

Flender, manufacturer of geared parts, has entered into a definitive agreement to be acquired for EUR 3.5B by Triton Partners. EV/Revenue was 1.81x.

Artemira, manufacturer of aluminum beverage cans, was acquired for JPY 130.0B by MBK Partners. EV/Revenue was 0.61x.

T&D Financial Life Insurance Company, provider of life insurance services, has reached a definitive agreement to be acquired for JPY 160.0B by PayPay, a subsidiary of Softbank Group. EV/Net Income was 31.83x.

Mobiuz, provider of cellular communications services, has reached a definitive agreement to be acquired for $351.0M by JVR Capital Group and McKim & Company. Rothschild & Co advised on the sale.

Auto.Ru, operator of an online automotive selling platform, was acquired for $480.85M by T-Technologies.

The United States Tower Portfolio of Commnet Wireless was acquired for $298.0M by Everest Infrastructure Partners. Rothschild & Co advised on the sale.

Molycop, manufacturer of mining consumables, was acquired for $1.5B by Tega Industries (BOM: 543413) and Apollo Global Management (NYS: APO). J.P. Morgan, Morgan Stanley, and Goldman Sachs advised on the sale.

Private Placement Transactions💭 

Axiom Space, a Texas-based commercial space station startup, received $525.0M of developmental capital from MUFG, Type One Ventures, Qatar Investment Autority, 1789 Capital, 4iG, and LuminArx Capital Management.

Cyera, developer of a holistic data storage and security platform, raised $300.0M of Series G venture funding led by Evolution Equity Partners at a pre-money valuation of $11.7B.

CargoX AI, operator of an autonomous delivery platform, raised $250.0M of venture funding from BlueFive Capital.

Xingyuanzhi, developer of multimodal spatial intelligence systems, raised CNY 1.0B of Series Pre-A venture funding from CRRC Capital Holdings, Wuhu Atech Automotive, and Xiamen Hengxing Group.

Suno, developer of an emerging generative AI music software, raised $400.0M of Series D venture funding led by BOND Capital at a pre-money valuation of $5.0B.

Spirit AI Robotics, manufacturer of intelligent robotics and AI systems, raised CNY 1.5B of Series A+ venture funding from Huangshi State Owned Assets Management.

Quobly, developer of semiconductor-based technologies, raised EUR 130.0M of Series A venture funding led by Sealsq, Bpifrance, STMicroelectronics, and ISALT-Strategic Long Term Equity Investment.

Oxford Quantum Circuits, developer of quantum computing technology, raised GBP 260.0M of Series C venture funding led by Bullhound Capital.

Factorial, developer of a human resources management platform, raised $150.0M of Series D venture funding led by General Catalyst at a pre-money valuation of $2.35B.

Coralogix, developer of a observability and security analytics software, raised $200.0M of Series F venture funding led by Advent International, Greenfield Partners, and CPP Investment at a pre-money valuation of $1.4B.

AlphaSense, developer of a web-based market intelligence platform, raised $350.0M of venture funding led by Accenture Ventures, Vitruvian Partners, and J.P. Morgan Private Equity Fund Services at a pre-money valuation of $7.15B.

Helion, developer of a fusion energy technology, raised $465.0M of Series G venture funding led by Thrive Capital at a pre-money valuation of $15.04B.

Generalist, developer of AI and robotics technology, raised $400.0M of venture funding led by Radical Ventures at a pre-money valuation of $1.6B.

Noteworthy Chart 🧭

Per Anthropic - “Anthropic engineers on average ship 8x as much code per quarter as they did compared to 2021-2025.”

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