Wall Street loved this stock on debut, but after an earnings beat paired with cautious guidance, the shine wore off fast. With shares plunging, bargain hunters are circling to see if the chill creates an entry.
Hidden Edge (Sponsored)
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Futures 📈
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What to Watch
Premarket Earnings:
Ciena Corporation [CIEN]
Toro Company [TTC]
Aftermarket Earnings:
Broadcom Inc. [AVGO]
Copart Inc. [CPRT]
Lululemon Athletica Inc. [LULU]
Samsara Inc. [IOT]Guidewire Software Inc. [GWRE]
DocuSign Inc. [DOCU]
Economic Reports:
ADP employment [Aug.]: 8:15 am
Initial jobless claims [Aug. 30]: 8:30 am
U.S. productivity (revision) [Q2]: 8:30 am
U.S. trade deficit [July]: 8:30 am
S&P final U.S. services PMI [Aug.]: 9:45 am
ISM services [Aug.]: 10:00 am
Senate Banking nomination hearing (Stephen Miran): 10:00 am
New York Fed President John Williams speaks: 12:05 pm
Chicago Fed President Austan Goolsbee speaks: 7:00 pm
Retail
American Eagle’s Denim Goes Full Main Character Energy
American Eagle Outfitters (AEO) just ripped higher premarket after a Q2 sales beat and a viral “Good Jeans” push with Sydney Sweeney that basically turned checkout into a fan meet-and-greet.
Management says the collab pulled in 700k new customers and racked up ~40B impressions. Signature styles sold out in days, and the fall pipeline looks stocked with more celeb-powered drops.
Why it matters: In a retail world fretting about tariffs and soft wallets, AEO found an end run: turn marketing into a conversion machine. If the brand can keep the flywheel spinning, with limited drops, creators who actually move units, and faster replenishment, gross margin headwinds get a little less scary.
If you blinked, you missed it:
Net sales were approximately $1.28B, compared to the expected $1.23B.
Shares are popping ~27% premarket as sentiment flips from “mall fatigue” to “denim FOMO.”
Investor Takeaway: If the fall campaign lands and logistics keep up, there’s room for a multi-week “trend trade” into the holiday. Dip buyers might eye any intraday cooling for entries, but momentum chasers are already in line like it’s a sneaker launch.
Software
Salesforce’s Guidance Gave Wall Street the Scaries
Salesforce (CRM) posted a clean EPS and revenue beat, but the outlook was more “meh” than “moon.” Q3 guidance came in a hair light on revenue, while the full-year top line held steady and EPS ticked up.
Translation: profits are fine, growth anxiety is still hovering. Sprinkle in an $8B Informatica deal pending and a $20B buyback top-up, and you’ve got a stock that wants love but keeps getting “it’s complicated.”
Why it matters: Investors want proof that AI isn’t just a keynote. Show us the acceleration in marketing, commerce, and the Agentforce wins that translate to dollars. Management claims 6,000+ paid Agentforce deals, but the Street wants this to be reflected in trendlines, not just as talking points.
Quick hits:
Revenue +10% y/y to ~$10.24B; EPS beat.
Guidance cautious; stock leaning lower premarket.
Valuation no longer frothy for mega-cap SaaS, but patience required.
Investor Takeaway: If you’re the “buy boredom” type, this reset can work, especially if AI attach rates (and price increases) start comping better by year-end. Otherwise, wait for a clean inflection in bookings before swinging bigger, but make no mistake, Salesforce isn’t going anywhere soon.
Options Edge (Sponsored)
Analysts are split on whether President Trump’s trade policies will spark a market meltdown or fuel long‑term strength.
Wall Street’s caught in a tug‑of‑war, driving volatility to new highs.
The IMF warns that rising tariffs will boost inflation without causing a recession, keeping investors on edge.
When the tariff pause sent stocks surging, savvy options traders banked big, proof that chaos can equal opportunity.
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Design Software
Figma Drew a Crowd Then Tripped on the Exit Sign
Figma (FIG) delivered its first post-IPO report with 41% revenue growth and a small profit, guided Q3 and full-year above the Street, and still the stock slipped hard after hours.
The big picture was why. Growth is decelerating from launch-boosted Dev Mode highs, with some lockup shares coming off, and investors are growing jittery about supply hitting the float.
Why it matters: The fundamentals remain strong, with net retention at a solid 129%, enterprise logos on the rise, new AI tools (Make), and Sites expanding the canvas. But this tape is allergic to “good, not mind-blowing.” Until AI monetization turns from a free sample to a paid habit, multiple expansions will probably stay capped.
What to know:
Q2 rev ~$249.6M vs. ~$248.8M; Q3 guide tops estimates.
Cash ~$1.6B; small BTC slice in treasury (no, they’re not going full Saylor).
Lockup dynamics = near-term chop even with healthy demand.
Investor Takeaway: If you missed the IPO pop and like category leaders, scale in on red days like today. Just expect volatility until the lockup cloud clears and AI credits start ringing the register. Designers still love it and use it, but now the stock needs the CFOs to, too.
Poll: If the market was a beverage, what’s it serving?
Movers and Shakers
Credo Technology Group [CRDO] – Premarket Move: +11%
Credo builds the “plumbing” that enables AI servers to communicate at high speeds, especially via active electrical cables (AEC). A fat beat on revenue/EPS and a fresh $165 street-high target have bulls treating it like a mini-AVGO. Premarket strength says momentum funds are still buying the AI picks-and-shovels story.
Watch if it can clear and hold new highs, and any hint of a fifth hyperscaler win or optical pipeline update could add fuel. Just know you’re paying a nosebleed multiple, so air pockets happen.
My Take: Trend’s your friend here. Ride strength, don’t marry it. I’d buy breakouts with tight stops rather than bargain-hunt a name priced for perfection.
Asana [ASAN] – Premarket Move: +8%
Asana sells work-management software aimed at teams drowning in tasks. Results topped on both lines and full-year EPS nudged up, which is enough to spark a relief pop after a rough year. The move today looks like “beats + guidance not worse” more than a true re-rating.
Keep an eye on large-customer adds and net retention, as those will decide if this bounce has legs. If macro tightens IT spend, this can fade fast.
My Take: Trade the squeeze here. I’d let it prove it above $16–$17 before getting cute, otherwise treat green opens as opportunities to trim into strength.
GitLab [GTLB] – Premarket Move: −8%
GitLab ships a one-stop DevSecOps platform for building and securing code. The quarter was solid with 30%+ sub growth and a clean beat, but management kept full-year guidance steady, which read as cautious and flipped the vibe to “show me.” Add a CFO transition, and you get sellers pressing premarket.
For a turn, watch if buyers defend the high-$30s/low-$40s congestion zone; a quick reclaim of $45 would hint the damage is more mood than model.
My Take: Good business with a tepid guide. If it washes out into the low-$40s with volume, I’d nibble, otherwise wait for a base and let someone else catch the falling knife.
Advanced AI (Sponsored)
AI’s capabilities are growing rapidly—handling layered conversations, correcting itself, and adapting in real time.
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Everything Else
Porsche gets booted from Germany’s DAX as U.S. tariffs turn its luxury rides into overpriced garage ornaments.
Nvidia-backed Cohesity preps a 2026 IPO that could rival Rubrik, proving Wall Street still loves a good AI storage story.
Nidec crashes 22% after an accounting probe, reminding investors that “creative math” never ends well.
Trump’s sons debut their Bitcoin mining venture with a $1.5 billion stake, because apparently politics wasn’t volatile enough.
Google services stumble across Turkey and Europe, sending users back to the dark ages of Bing.
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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