One cybersecurity name is separating from weaker software peers with stronger revenue and profit guidance. One retailer is leaning on collectibles, profits, and a major buyback, while one technology giant is using AI-designed materials to push quantum computing toward 2029. The clearest buy is security, while the other two remain holds.
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Futures at a Glance📈
Futures are barely moving after all three major indexes closed at fresh records, with the S&P 500 now riding serious momentum. Traders are still watching Middle East headlines, but the bigger question is whether this AI-led rally pauses as earnings season fades and summer trading slows.
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What to Watch
Earnings (Premarket):
• Medtronic plc [MDT]
• Macy's Inc [M]
Earnings (Aftermarket):
• Broadcom Inc. [AVGO]
• CrowdStrike Holdings, Inc. [CRWD]
• Veeva Systems Inc. [VEEV]
• Five Below, Inc. [FIVE]
• The Descartes Systems Group Inc. [DSGX]
Economic Reports:
• ADP National Employment Report (May): 8:15 am
• US Services PMI (May): 9:45 am
• Factory Orders (Apr.): 10:00 am
• ISM Report On Business Services PMI (May): 10:00 am
• Global Services PMI (May): 11:00 am
• U.S. Federal Reserve Beige Book: 2:00 pm
Elite Trade Club Insider
One CEO Just Bought $12.5 Million Near The Highs
A biotech CEO bought more than $12.5 million worth of stock across three straight sessions near the top of the company’s yearly range, while two executives at a fintech name lined up $3.4 million in proposed sales near their own highs. You’re seeing two strong charts. Insider readers are seeing the difference between a CEO pressing the bet and insiders preparing to cash out.
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Cybersecurity
Palo Alto Networks Is Still the Cybersecurity Name With the Cleanest AI Demand Story
Palo Alto Networks Inc (NASDAQ: PANW) gave investors a stronger reason to stay constructive after raising its full-year revenue and profit forecasts.
The company now expects fiscal 2026 revenue of $11.415 billion to $11.425 billion, up from its prior range of $11.28 billion to $11.31 billion. Adjusted EPS guidance also moved higher to $3.77 to $3.79, from the previous $3.65 to $3.70 range.
The quarter backed up the guidance raise. Third-quarter revenue grew 31% to $3 billion, ahead of the $2.94 billion estimate.
The driver is clear: enterprises are spending more on cloud, identity, and AI-driven cybersecurity as the threat landscape gets more complicated. AI is not just a product buzzword here. It is also increasing the volume and sophistication of attacks, which strengthens the need for platform-based vendors.
The valuation is rich at roughly 165x earnings, so investors are paying up for quality. But Palo Alto has the advantage of scale, platform breadth, and demand visibility. In a market where weaker cybersecurity names are missing guidance, Palo Alto is raising it.
My Take For You: Palo Alto is separating itself from the weaker security software names. AI threats are creating demand, and the company is turning that demand into higher guidance.
My Verdict: Buy this. The risk is that the premium valuation leaves the stock exposed if cybersecurity budgets tighten or growth slows.
Specialty Retail
GameStop Has Better Numbers, but the eBay Push Still Clouds the Setup
GameStop Corp (NYSE: GME) delivered a stronger quarter than many expected, with net sales rising 14% to $835.3 million from $732.4 million a year ago.
The company also posted net income of $389.6 million, up sharply from $44.8 million last year, helped by its shift toward collectibles and trading cards as traditional game hardware and physical software sales keep losing relevance.
The new $2 billion share buyback is the headline investors wanted. It replaces the old 2019 authorization and runs through June 2, 2029. For a company with a passionate shareholder base, that kind of buyback can support sentiment and tighten the float over time. It also signals management thinks the stock is worth defending at current levels.
The problem is the eBay pursuit. GameStop has raised its stake in eBay to about 6.6% and is still pushing its rejected $56 billion offer.
That is a huge strategic swing for a company with a market cap under $10 billion. The core quarter was better, but an aggressive acquisition battle could quickly pull attention away from operational progress.
My Take For You: GameStop has improved its revenue mix and added a large buyback, but the eBay campaign keeps the story messy. The stock is not broken, but the risk profile is not clean either.
My Verdict: Hold this. The risk is that the eBay pursuit becomes a costly distraction and overwhelms the buyback story.
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Quantum Computing
Microsoft Has a Quantum Timeline, but the Proof Still Needs to Catch Up
Microsoft Corp (NASDAQ: MSFT) is giving investors a new quantum computing milestone to track. The company unveiled its Majorana 2 quantum chip, which it redesigned with help from AI, and said it now expects to have commercially useful quantum machines by 2029. That puts Microsoft on a similar timeline to IBM, which has also laid out major quantum ambitions.
The breakthrough claim is tied to materials science. Microsoft says it used AI tools to switch the chip to lead-based materials, producing a 1,000-fold improvement in some performance metrics.
If true, that would be a major step for Microsoft’s long-running Majorana-based quantum approach. It would also strengthen the company’s broader AI-plus-computing story, where AI helps improve the physical hardware stack.
But this is not a clean win yet. Physicists continue to criticize Microsoft for not publicly releasing enough data to verify its claims.
The company says trade secrets limit what it can disclose, and that it has shared data in confidential discussions with DARPA. That may satisfy some partners, but public-market investors still need reproducibility and outside validation before treating quantum as a near-term business driver.
My Take For You: Microsoft’s quantum update is important, but it is still more long-term option value than current earnings power. The 2029 target gives the market a date, not a proven revenue stream.
My Verdict: Hold this. The risk is that outside scientists remain unconvinced and the quantum timeline slips again.
Trivia: The modern stock market traces its roots to a single revolutionary idea — letting the public own shares of a company. Which organization was the world's first to offer shares to the public?
Movers and Shakers
TETRA Technologies [TTI]: Premarket Move: -16%
TETRA is getting hit after pricing a $100 million stock offering at $9.25 per share. That is below the prior close, and investors are treating it exactly like what it is: dilution after a massive run.
The money will help fund the Arkansas bromine project, which is important for the long-term critical minerals story. But the stock is already up more than 260% over the past year, so the market is not giving management a free pass.
My Take: Do not buy this dip yet. Let the offering close and let the stock find a real floor first.
GitLab [GTLB]: Premarket Move: -5%
GitLab is lower even after beating expectations. Revenue rose 23% to $264.2 million, EPS came in at $0.23 versus $0.21 expected, and operating margin improved to 14%.
The problem is that investors are focused on seat contraction, macro pressure, and whether AI growth can offset softer tech hiring. A beat is not enough when the market is worried about the next few quarters.
My Take: Stay cautious. GitLab is executing, but this is not a stock to chase until growth concerns ease.
Coherent [COHR]: Premarket Move: +4%
Coherent is still climbing as the AI datacenter story keeps gaining speed. Demand for lasers, photonics, and high-speed communications hardware is pulling investors back in, and datacenter plus communications now make up roughly 75% of sales.
The stock has already exploded, but the setup still has real support: record bookings, backlog visibility out to 2030, and expanding indium phosphide capacity.
My Take: Stay long. Coherent is expensive, but this is one of the cleaner AI photonics winners. Buy pullbacks, not breakouts.
Risk Signal (Sponsored)
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Everything Else
📊 Future market leaders are starting to take shape, as investors look for overlooked companies with the kind of quiet execution that can turn boring stocks into obvious winners later.
🌍 The U.S. is eyeing tariffs on 60 economies, because apparently the trade-war map still had empty space.
🌧️ Australia’s economy slowed as weak demand, bad weather and energy costs all piled on at once.
📉 Asian markets slipped as oil worries kept investors in risk-off mode.
🚀 SpaceX plans to raise $7.5 billion in its IPO push, because apparently rockets are not the only thing launching.
🤖 DeepSeek is reportedly targeting a $7 billion maiden raise, giving China’s AI race another huge funding headline.
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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