AI Rack Maker Stacks 45% Gains

Two cable behemoths tied the knot this morning in a mega $34.5B deal, a leading chip equipment maker is slumping 5% due to its poor forecast, and an AI rack builder is surging 85% due to its strong growth projections. Read on to find out more.

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Futures 📈

What to Watch

Earnings:

• None listed

Economic Reports:

• Import Price Index [April] — 8:30 am

• Housing Starts [April] — 8:30 am

• Building Permits [April] — 8:30 am

• Consumer Sentiment (Prelim) [May] — 10:00 am

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Cable Operator

Charter and Cox Strike $34.5B Merger Deal to Create Cable Giant

Charter Communications (NASDAQ: CHTR) and privately held Cox Communications announced a mega merger this morning, forming one of the largest cable operators in the United States.

The deal values Cox at $34.5 billion, including $21.9 billion in equity and $12.6 billion in assumed debt and liabilities. Once finalized, Cox Enterprises will hold approximately 23% of the combined company's fully diluted shares.

The merged entity will be renamed Cox Communications within a year of closing, while Charter’s existing Spectrum brand will continue as the customer-facing label for internet, mobile, and cable services.

This deal follows Charter’s previously announced all-stock acquisition of Liberty Broadband, which shareholders approved earlier this year. Both mergers are expected to close concurrently.

The merger positions the company as a stronger competitor to Comcast and reflects the ongoing consolidation trend within the telecommunications sector.

Charter shares are up nearly 6% in premarket trading following the announcement.

Packaged Bakery Foods

Flowers Foods Slides on Earnings Miss, Soft Guidance for 2025

Flowers Foods (NYSE: FLO) shares are down more than 3.6% in premarket trading today after the baked goods maker missed first-quarter expectations and trimmed its full-year forecast.

The company, known for brands like Nature’s Own and Wonder Bread, reported adjusted earnings of $0.35 per share—down from $0.38 a year ago and below analyst estimates of $0.38. Revenue came in at $1.55 billion, a 1.4% decline year-over-year, falling short of the $1.6 billion consensus.

Management cited weaker-than-anticipated consumer demand and intensified promotional activity, which led to an unfavorable pricing mix and reduced volumes.

In light of the underperformance, Flowers revised its 2025 revenue outlook to a range of $5.297 billion to $5.395 billion, down from its prior projection of $5.403 billion to $5.487 billion. It also lowered its adjusted earnings guidance to $1.05–$1.15 per share, compared to earlier estimates of $1.11–$1.24.

The company’s disappointing quarter highlights mounting pressure on packaged food producers as inflation-weary consumers cut back and retailers demand more aggressive promotions.

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Semiconductors

Applied Materials Slips as Revenue Forecast Trails Street Expectations

Applied Materials (NASDAQ: AMAT) reported better-than-expected earnings for its fiscal second quarter, but its cautious revenue outlook is sending its shares down more than 5% in premarket trading today.

The semiconductor equipment maker posted adjusted earnings of $2.39 per share for the April quarter, topping the $2.31 consensus estimate. Revenue reached $7.1 billion, nearly matching the Street’s forecast of $7.13 billion.

However, its guidance for the current quarter spooked investors. Applied Materials projected revenue with a midpoint of $7.2 billion, slightly below the analyst consensus of $7.22 billion.

CEO Gary Dickerson highlighted strong momentum in AI-related semiconductor development, noting that the company is working closely with clients like Intel (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) to support next-generation chip innovation.

Still, concerns persist over U.S.-China trade tensions, which have recently seen tariffs raised and then temporarily eased. China, a key market for chip manufacturing equipment, could again be impacted if sector-specific duties return in the weeks ahead.

TSS, Inc. [TSSI] - Last Close: $8.87

TSS Inc. specializes in integrating high-performance computing infrastructure, notably AI rack systems, for data centers. The stock is up 600%+ in the last year as the firm reported massive revenue and earnings growth in Q3 and Q4 of 2024.

The stock is rising 45% in premarket trading again today after the company announced that it is expecting Q1 2025 revenue to surpass Q4 2024 figures, driven by robust demand in AI rack integration services.

Gryphon Digital Mining, Inc [GRYP] - Last Close: $1.07

Gryphon Digital Mining is a Las Vegas-based bitcoin mining company. The stock is up 168% YTD, and it showed strong earnings growth in Q4 2024 after a long stretch of negative net income.

Today, the stock is up 10% in premarket trade, continuing with a 42% surge yesterday after it was announced that GRYP will be merging with American Bitcoin, a miner backed by Eric Trump and Donald Trump Jr., in an all-stock deal expected to close in Q3 2025.

Evolv Technologies Holdings, Inc. [EVLV] - Last Close: $4.20

Evolv Technologies Holdings develops AI-driven security screening systems for venues and public spaces. The firm’s revenue has been steadily growing and the stock has climbed 45% YTD.

Its shares are rising in premarket trading following the company's announcement of strong preliminary Q1 revenue growth exceeding 40%, signaling robust demand for its security solutions.

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*The profits and performance shown are not typical and you may lose money. We make no future earnings claims. All trades expressed are from historical, backtested data in order to demonstrate the potential of the system.

Everything Else

• Fortnite goes dark on iOS as Apple blocks reentry, reigniting the platform feud.

• Take-Two slashes its 2026 earnings outlook despite a revenue beat.

• Doximity crashes 20% as its outlook shatters its bullish momentum.

• CAVA’s Q1 sizzles, but its flat outlook sends its stock plummeting.

• Trump pushes back on Apple’s India expansion, urging domestic production.

• A Chinese seasoning giant will raise $1 billion with its Hong Kong debut.

• Japan’s economy shrinks more than expected as exports falter under tariff threats.

• Strathcona makes a bold move for MEG Energy to deepen its oil sands footprint.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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