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Luke Kawa

Adding “AI” to your company’s name was a blessing. Right now it’s a curse.

There’s no better way to make sure everyone knows you’re in the AI business than literally putting it in your name, a tactic many US publicly traded companies have turned to to try to ensure their stocks get their fair share of any halo effect from the theme.

But when there’s a nascent pullback in everything AI, that also means you stick out like a sore thumb.

We scanned the S&P 500 Total Market Index for companies whose names make it very clear they’re in the artificial intelligence business (mostly relatively smaller stocks).

But following BigBear.ai and C3.ai’s tumbles in the wake of brutal earnings reports earlier this month, the selling in speculative and AI stocks has intensified over the past two sessions. The average stock in the below chart is down 8.7% over the past two sessions, while a Bank of America basket of mostly large-cap US AI beneficiaries has dropped about 7% over the same period.

SoundHound AI is at the bottom of the pack despite a dearth of company-specific news.

There is one exception to this rule: Gaxos.ai, omitted from the above chart. The stock went bonkers on Tuesday after launching a new AI image and video platform, but is giving back some of those gains today.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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