Welcome back! Thursday was a nice day in the markets, with Google hitting an all time high after a great quarter. On Wednesday, we said Goodbye to Jerome Powell, as he held his last press conference as Fed Chair.

We’re at peak earnings season, so without further delay, let’s get into the biggest movers over the past 24 hours:

Earnings Corner 💸 

• Google $GOOG ( ▲ 9.97% ) beat on revenue ($109.9B vs. $107.1B) and EPS ($5.11 vs. $2.62), with sales up 20% y/y, though EPS was helped by a large gain from equity securities. Growth was driven by Google Cloud, which rose 63% to $20.0B as enterprise AI demand boosted usage, while Google advertising revenue rose 15.5% to $77.3B and Search remained strong with AI features helping drive query growth. Alphabet raised 2026 capex guidance to $180B–$190B from $175B–$185B as it builds more AI infrastructure, with Cloud backlog nearly doubling to $460B and management saying cloud revenue would have been higher if it had enough compute capacity.

• Microsoft $MSFT ( ▼ 3.93% ) beat on revenue ($82.9B vs. $81.4B) and EPS ($4.27 vs. $4.05), with sales up 18% y/y. Growth was driven by Azure, Microsoft’s cloud business, which grew 40% as AI demand boosted usage, while Microsoft 365 Copilot reached 20M paid seats, up from 15M last quarter, showing more adoption of its AI tools. Capex rose 49% to $31.9B as Microsoft built out more data centers, chips, and cloud capacity to support rising AI demand, pressuring FCF. Company guidance was mixed with total revenue guidance was roughly in line at $86.7B–$87.8B vs. $87.6B expected, while Azure growth guidance was better than expected at 39%–40% vs. 36.8% expected.

• Amazon $AMZN ( ▲ 0.77% ) beat on revenue ($181.5B vs. $177.3B) and EPS ($2.78 vs. $1.64), with sales up 17% y/y. Growth was driven by strength in Amazon’s cloud computing business, where revenue rose 28% to $37.6B as AI demand boosted cloud usage, along with advertising revenue up 24% and online store revenue up 12%. 2Q guidance was better than expected at $194B–$199B vs. $188.9B expected, while AWS backlog jumped to $364B and new AI chip deals with OpenAI, Anthropic, and Meta helped support the company’s heavy spending on AI infrastructure and data centers.

• Meta $META ( ▼ 8.55% ) beat on revenue ($56.3B vs. $55.5B) and reported EPS ($10.44 vs. $8.15), though EPS was helped by an $8B one time tax benefit; sales rose 33% y/y, driven by continued ad strength as ad impressions rose 19% and average price per ad rose 12%. Core engagement remained strong across Facebook, Instagram, and WhatsApp, with daily active people up 4% to 3.56B, though growth was partially disrupted by internet restrictions in Iran and WhatsApp limits in Russia. Meta raised its 2026 capex outlook to $125B–$145B from $115B–$135B due to higher AI infrastructure, component pricing, and data center costs, making the AI payoff harder to underwrite because Meta does not have a cloud business where AI demand directly shows up in revenue. Meta is planning 10% layoffs to allocate resources to AI spend, and said it couldn’t rule out future cuts.

• Apple $AAPL ( ▲ 0.44% ) beat on revenue ($111.2B vs. $109.7B) and EPS ($2.01 vs. 1.95), with sales up 17% y/y. Growth was driven by continued iPhone 17 momentum, a sharp rebound in China, and strength in higher-margin Services like App Store, iCloud, AppleCare, and subscriptions, which helped support profitability as every major product category and region grew. The company noted supply constraints limited some Mac and iPhone sales amid a broader memory-chip shortage tied to AI data-center demand, and Apple is heading into a CEO transition with John Ternus set to replace Tim Cook in September as questions remain around the company’s AI roadmap.

• Qualcomm $QCOM ( ▲ 15.12% ) beat on revenue ($10.59B vs. $10.56B) and EPS ($2.65 vs. $2.55), driven by strength in licensing and diversification into AI, automotive, and data center chips despite weaker handset demand. Guidance came in light but sentiment rose as management indicated China demand is stabilizing (inventory clearing)and highlighted upcoming AI/data center chip shipments to a major hyperscaler.

• Chipotle $CMG ( ▲ 3.03% ) beat on revenue ($3.09B vs. $3.07B) while EPS came in in line, with net sales up 7.4% y/y and comps turning positive (vs. expected decline) as new store openings, menu innovation, and protein add-ons drove higher traffic and signaled early recovery from last year’s slump. Profit declined as higher wage and food costs outpaced sales growth, and the company reiterated a cautious full year outlook amid pressured consumers and macro uncertainty.

• Royal Caribbean $RCL ( ▲ 3.84% ) beat on revenue and EPS ($3.60 vs. $3.20), with sales up 11% y/y driven by strong bookings, higher ticket pricing, and robust onboard spending, while occupancy above 100% and yield growth highlighted strong demand. Costs increased across payroll, food, and operations but were more than offset by pricing and spending strength, supporting margin expansion, though the company lowered full year EPS guidance due to higher fuel costs and Middle East disruptions.

• Cigna $CI ( ▼ 0.6% ) beat on revenue at $68.5 and EPS at $7.79 vs. $7.61, driven by strength in its Evernorth health services segment (pharmacy benefits and specialty care), which offset declines in its insurance business following the Medicare divestiture, while margins improved as medical costs came in lower than expected and operating income rose on better cost control and mix shift toward higher-margin services. The company slightly raised its outlook.

• Reddit $RDDT ( ▼ 0.35% ) beat on revenue ($663M vs. $611M) and EPS ($1.01 vs. $0.58), with sales up 69% y/y as ad demand stayed strong, daily active users rose 17% to 126.8M, and ARPU beat expectations. The company continued to grow profitably with low capex, supported by its capital light model and data licensing partnerships with Google and OpenAI, while Q2 revenue guidance came in slightly ahead at $715M–$725M vs. $712M expected.

• Carvana $CVNA ( ▼ 0.2% ) beat on revenue ($6.43B vs. $6.08B) and EPS, with sales up 52% y/y as retail units sold rose 40% to 187K. Growth was driven by stronger demand, higher inventory selection, improved reconditioning operations, and more efficient scaling, helping adjusted EBITDA reach a record $672M.

On The Move 📈 📉

• Hertz $HTZ ( ▲ 13.57% ) stock surged after announcing a partnership with Uber, where Hertz-affiliate Oro Mobility will provide maintenance, charging, and staffing for Uber’s vehicle fleet.

• Blue Owl $OWL ( ▲ 9.8% ) stock rose after the company reported strong Q1 2026 results that beat analyst estimates and reported a 10x return on its investment in SpaceX.

• Eli Lilly $LLY ( ▲ 9.8% ) climbed after reporting strong results as demand for its obesity medications soared.

• Caterpillar $CAT ( ▲ 9.88% ) jumped after the company raised long-term sales guidance as demand for construction and power generation equipment grows.

• Stellantis $STLA ( ▼ 5.46% ) slid following a headline beat, with “very messy” details in relation to provisions and tariffs driving the decline.

IPO Roundup 📍 

• Pershing Square USA $PSUS ( ▲ 4.43% ) fell sharply in its public market debut, closing at $43 vs an IPO price of $50. The offering raised $5B for the fund.

• Apollo-owned Tenneco is preparing for in IPO that could value the auto supplier at $14B.

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Today’s Headlines 📖🍿 

• U.S. GDP grew at a 2% rate in Q1, up from a 0.5% increase last quarter but below expectations of 2.2%. The increase was driven by substantial AI investment and partially slowed by an uptick in computer equipment imports. Consumer spending rose at a 1.6% pace, down from 1.9% last quarter, as spending on goods declined slightly.

• Elon wrapped up his testimony yesterday. The OpenAI vs Musk trial had some heated moments so far, but yesterday mainly focused on questioning from the manager of Musk’s family office, who handled Elon’s wire transfers to OpenAI.

• Meta’s massive bond sale: Meta sold $25B of investment-grade bonds, hitting the market for the second time in six months. Nearly all six portions of the sale priced at wider spreads than the company’s $30B October sale as investors are becoming more concerned that the companies AI investments won’t pay off.

• KKR is launching a $10B AI infrastructure platform, backing Helix Digital Infrastructure and installing former AWS CEO Adam Selipsky to lead. This deepens the firm’s exposure to data centers, power, and hyperscaler demand.

• Starboard Value is pushing Lamb Weston to hold an investor day and to achieve a ~25% EBITDA margin target by 2029, seeking to reframe the strategy and restore confidence after shares fell 18%.

• A.O. Smith’s China business is attracting interest from investors: CPE, PAG, and other PE firms are among those considering paying a few hundred million dollars for a majority stake in the business.

• Starwood’s SREIT is halting redemptions from its $22B real estate fund to preserve liquidity as it waits for the commercial real estate market to improve. The firm is also cutting the fund’s dividend down from 6.3% to 4.7%.

• Cognizant is cutting 4,000 jobs, about 1% of its workforce, as demand slows and automation accelerates. This comes a day after the company announced Project Leap, a transformation initiative focused on AI integration.

• Jerome Powell will continue to serve as a Fed governor after his term as Chair ends, staying on for an indefinite period while a probe into the renovation of the Fed’s headquarters continues. The move will temporarily deny Trump a majority on the Board.

• Carlyle taps F1 partnership with Red Bull Racing to accelerate private wealth push: The ~$10M/year sponsorship targets advisor pipelines and high-net-worth capital as the firm races to close a wide gap with Blackstone and KKR in evergreen fundraising and retail penetration.

M&A Transactions💭 

The Electric Division of UGI Utilities has entered into a definitive agreement to be acquired by Argo Infrastructure Partners through a $470.0M LBO. PJT Partners advised on the sale.

SEMrush, offers an online visibility management SaaS, was acquired for $1.802B by Adobe (NAS: ADBE). EV/Revenue was 4.06x. Centerview Partners advised on the sale.

Ageas (BRU: AGS) acquired 25% stake of AG Insurance, provider of insurance products and services, for EUR 1.9B. After the transaction, Ageas owns 100% of the company.

Naveris, developer of a blood test technology, has reached a definitive agreement to be acquired for $160.0M by CareDx (NAS: CDNA).

KalVista (NAS: KALV), a pharmaceutical company, has reached a definitive agreement to be acquired for $1.551B by Chiesi Farmaceutici. Centerview Partners and Jefferies advised on the sale.

Amadeus IT Group (MAD: AMS) reached a definitive agreement to acquire The Idemia Public Security Division of Idemia for EUR 1.2B.

Energy Monster, a consumer tech company, was acquired for $327.0M by Trustar Capital. Kroll advised on the sale.

Astreya, provider of IT consulting and advisory services, has reached a definitive agreement to be acquired for $600.0M by Cognizant Technology Solutions (NAS: CTSH). EV/Revenue was 1.07x.

Trepp, developer of information, analytics, and technology software, has reached a definitive agreement to be acquired for $1.0B by Fitch Group. Centerview Partners and Goldman Sachs advised on the sale.

Ruckus Networks, developer of advanced wireless systems, has reached a definitive agreement to be acquired for $1.846B by Belden (NYS: BDC). Moelis & Company advised on the sale.

Novo Banco, operator of a bank, was acquired for EUR 6.4B by Groupe BPCE. EV/Net Income was 8.0x and EV/Revenue was 4.31x.

Long Ridge Energy & Power, operator of an integrated energy terminal, has reached a definitive agreement to be acquired for $1.52B by Mara (NAS: MARA).

Kadant Profil, manufacturer of engineered steel, was acquired for EUR 157.0M by Kadant (NYS: KAI).

Private Placement Transactions💭 

SportVot, developer of a multi-sports platform, raised $327.0M of venture funding led by Indian Angel Network.

Scout AI, developer of a vision-language-action model, raised $100.0M of Series A venture funding led by Align Ventures and Draper Associates.

Rogo Technologies, developer of an analytics platform, raised $160.0M of Series D venture funding led by Kleiner Perkins at a $2.0B valuation.

Prithu, operator of environmental asset generation systems, raised $100.0M of venture funding from Transition VC.

Parallel Web Systems, developer of a web search and research infrastructure platform, raised $100.0M of Series B venture funding led by Sequoia Capital at a pre-money valuation of $1.9B.

Bebest Automotive Electronics, researcher and producer of automotive electronics, raised CNY 700.0M of Series B+ venture funding led by Zhejiang Province New Energy Vehicle Industry Fund.

Legora, developer of an AI based legal workflow, raised $600.0M of Series D venture funding led by NVentures and Accel at a pre-money valuation of $5.0B.

Netomi, developer of an AI-based customer service platform, raised $110.0M of venture funding led by Accenture Ventures.

Odds of the Day 🍒 

Polymarket traders are pricing in a 46% chance of Jay Powell leaving the Fed Board by year-end.

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Obviously, none of this constitutes financial or investment advice. *Today’s Odds of the Day is in paid partnership with Polymarket