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Matt Phillips6/13/25

Adobe posts solid quarter, but market doubts its AI optimism

Adobe’s fiscal Q2 profit and revenue were both better than expected and the company lifted its full-year sales and earnings guidance, but the stock is still down a fairly gnarly 7% in early trading.

Wall Street clearly wants to know if Adobe’s efforts to embed generative-AI offerings into its software packages can actually generate additional sales and profits. But the takeaway from Adobe’s numbers — released yesterday after the close — is essentially TBD.

On the bright side, today’s tumble in Adobe shares is only half the roughly 14% plunge that the company experienced after its two previous quarterly reports in December and March. So I guess that’s progress?

Adobe Keeps Pivoting as AI Transforms Customer Needs

Adobe Keeps Pivoting as AI Transforms Customer Needs

On the bright side, today’s tumble in Adobe shares is only half the roughly 14% plunge that the company experienced after its two previous quarterly reports in December and March. So I guess that’s progress?

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Needham hikes price target on Micron by 50% to $300 ahead of earnings on tight memory chip supplies

Needham analyst Quinn Bolton boosted his price target on Micron to $300 from $200 ahead of its Q1 fiscal 2026 results, scheduled to be released on Wednesday.

While there have been numerous media reports that try to pin down who gets what in different prominent AI supply chains, the simple story here is there’s effectively an oligopoly for dynamic random access memory chips (Micron, Samsung, and SK Hynix), and these companies have pricing power because of limited supply and elevated AI-fueled demand.

“We believe industry supply/demand is far tighter than management expected on its F4Q25 (Aug) earnings call,” Bolton writes. “We expect industry supply will remain constrained throughout 2026 as Micron, Samsung, and SK Hynix are all constrained by clean room space and can only rely on node transitions to increase bit shipments in the near term.”

In other words, these companies are so capacity-constrained that the only way to sell more memory is to sell better chips as they move to more advanced editions.

“We note management recently confirmed the company's HBM3E and HBM4 capacity is sold out for CY2026 and believe HBM continues to carry above corporate and DRAM average gross margin,” he writes.

Bolton also boosted his estimates for full year sales for Micron’s next two fiscal years by 8% and 14%, respectively, and adjusted earnings per share by 18% and 30%, respectively. Even so, all of these figures remain a little below consensus.

Wall Street analysts have been scrambling to right-size their views on Micron ahead of earnings. The average price target has gone up by a whopping 67% over the last three months, and the shares spent the vast majority of time from late October through last week trading above the consensus outlook.

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J. Edward Moreno1h

Pfizer gives 2026 guidance, with sales set to slow and EPS forecast below consensus

Pfizer edged higher in premarket trading after reaffirming its 2025 guidance and giving analysts a fresh steer on 2026.

The company said it expects 2026 annual adjusted earnings per share to hit between $2.80 and $3.00, lower than the $3.05 analysts polled by FactSet are currently pencilling in.

Pfizer’s CFO on building a post-Covid future and how it won the fight for Metsera

Pfizer’s CFO on building a post-Covid future and how it won the fight for Metsera

Markets droop as AI credit fears grow and jobs report looms

The S&P 500, Nasdaq 100, and Russell 2000 all slumped on Monday.

Black Bear with Hand on Head

To AI-nfinity... and beyond!

Deutsche Bank highlights four roadblocks for tech CEOs’ obsession: Data centers in space

The good news: “There are clearly technical challenges to making this a viable endeavor but these seem to be engineering constraints as opposed to physics,” per Deutsche Bank.

CHINA-JIUQUAN-SATELLITE-LAUNCH (CN)

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Matt Phillips20h

Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

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