Markets
markets
Luke Kawa

Cisco surges on strong earnings, CEO says customers will spend on AI until “they just absolutely have to stop”

Cisco is the top-performing Nasdaq 100 stock in early trading after the networking products company posted a solid earnings report for its fiscal third quarter, exceeding analysts’ expectations on the top and bottom lines. In addition, its fourth-quarter guidance was above what the Street had penciled in.

Reports of the death of AI demand have been greatly exaggerated, and Cisco is one of the many beneficiaries of the ongoing spending: management said that AI infrastructure orders surpassed their $1 billion target for the year with one quarter to spare.

“AI orders from enterprise customers continue to show momentum as this large, nascent market opportunity starts to unlock,” CEO Chuck Robbins said, adding that tariffs and macro uncertainty hadn’t really sparked any “meaningful change” in customers’ purchasing behavior.

“They’re still committed to the technology transition,” he said. “I think the AI transition is just so important that they’re going to continue to spend until they just absolutely have to stop. And I think that as of right now, they’re still comfortable.”

Call it a tale of two Chucks, because that last remark reminds me of an infamous comment from Citi CEO Chuck Prince in July 2007: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”

I am certainly not suggesting that a financial crisis lurks around the corner. However, it is meant as a reminder of how deeply corporate decision-making and incentive structures are molded by booms.

When your share price becomes a function of how dedicated the market perceives you to be with a mania in progress (and to a certain degree, how much your operating results can back up your claims about that), the biggest perceived risk, above all else, is not being involved enough.

More Markets

See all Markets
Tasha Matsumoto
30m
Stocks rise on low volume day, erasing November losses

All sectors posted gains today except for healthcare.

Michael Jordan #23, Shooting Guard and Small Forward for the Chicago Bulls wearing a warm up jacket looks on during player introductions before the NBA Midwest Division basketball game against the Denver Nuggets
markets
Luke Kawa

GameStop rallies as Michael Burry takes a trip down memory lane

Shares of GameStop are up more than 3% in premarket trading on Friday.

Thanksgiving is a time for catching up with family and reminiscing about the good times. To that end, early Thursday morning (just after midnight), hedge fund manager turned Substacker Michael Burry published tweets that purportedly offer a look into the lore of his time spent betting on the success of the video game and collectibles retailer ahead of its ascendance to meme stock status.

In one, he shared screenshots of Scion Asset Management’s letter to GameStop’s board of directors, as well as emails appearing to be from Keith Gill, aka Roaring Kitty, the retail trader whose GameStop thesis inspired legions to jump onboard, and Ryan Cohen, who would go on to become GameStop’s chairman, president, and CEO.

Shares have bounced back in earnest since the stock regained support of the $20 level at the start of this week.

Burry’s Scion announced a bullish GameStop position in GameStop in 2019, and held this through at least the third quarter of 2020.

At the peak of its meme stock frenzy in January 2021, however, he called the price action “unnatural, insane, and dangerous” in a since-deleted tweet, and said that he was no longer long or short the company.

Do I think this is the reason why shares of GameStop are flying on Friday morning?

Eh, in most circumstances I’d say this is pretty thin gruel. But this is a stock that has, in the past, traded off of nostalgia, its exposure to things that are cool or entertaining, and leaders with Big Main Character Energy.

Your mileage may vary, but to me Burry’s trip down memory lane hits a few of these notes. The company is inside the top 20 most mentioned tickers on SwaggyStocks over the past 12 hours as of 8:20 a.m. ET, has seen the greatest pickup in mentions on Stocktwits compared to the prior session (per a Bloomberg Automation report), and Burry’s post is being very positively received on the r/Superstonk subreddit dedicated to discussions of GameStop.

That being said, all this is not something that can reasonably been said to have changed the outlook of GameStop’s estimated future discounted cash flows.

Of course, it’s also Black Friday, and we’ve seen promotional events be a boon for the video game and collectibles retailer this year:

markets
Claire Yubin Oh

Outages hit CME’s exchange, affecting FX markets and futures on stocks and Treasurys

After yesterday’s holiday, Black Friday was off to an unusual start after an outage at CME, the world’s biggest exchange operator, hit a number of major markets, halting trading in FX markets as well as affecting futures contracts on stocks, Treasurys, and commodities.

CME Group cited a “cooling issue at CyrusOne data centers” in a short statement on its website, which Reuters reported was posted at 2:40 a.m. GMT, and that it was working to “resolve issues in the near term.”

In an update to the banner on its site, CME says that its BrokerTec US Actives and BrokerTec EU are now open, but that its other markets are currently halted.

While CyrusOne has yet to make a statement about the glitch, CME’s electronic trading platform has been run through CyrusOne’s data center in Aurora, Illinois, after the derivatives exchange sold the campus to the operator in 2016. CyrusOne and the city of Aurora recently reached an agreement to address noise complaints over its chillers, per the Chicago Tribune.

A record daily average of 26.3 million contracts traded through CME in October, with CME one of the biggest sources of liquidity for contracts on a number of core markets, including 10Y Treasurys as well as futures on major US indexes such as the S&P 500 and Nasdaq 100.

Tasha Matsumoto
11/26/25
Stocks rise for the fourth consecutive session as tech rally leads gains

While tech was the best-performing sector ETF, the rally was broad-based, with all sector ETFs rising higher except for healthcare.

This picture shows a turkey standing next to cows in a field in Douville-en-Auge, northwestern France, on December 29, 2018.
markets
Luke Kawa

Beyond Meat jumps amid spike in call activity

Shares of Beyond Meat are soaring on Wednesday amid heavy call activity and little news.

Over 200,000 call options have changed hands as of 11 a.m. ET, already above the 20-day average of 194,098 for a full session. Its put/call ratio of close to 0.1 is the lowest in months.

The three most traded options contracts are calls that expire this Friday with strike prices of $1 and $1.50, as well as calls that expire next Friday with a strike price of $1.

Those remain out-of-the-money call options: after its meme moment drove shares to $7.69 on October 22, the stock has given all that back and then some as the air came out of many speculative pockets of the market.

Because of how much call demand spiked during the boom times, today’s pickup registers as more of a blip on the chart:

Beyond Meat’s recent refinancing efforts, which were cited as a supposed fundamental catalyst for the explosion of retail interest, started when the stock was trading at $2.85.

Based on today’s activity, the dust hasn’t fully settled on this story, but so far: management has eliminated about $800 million in debt and all it got in exchange so far is a near 70% decline in its stock price and a longer runway to make processed peas into faux meat.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.
©2025 Sherwood Media, LLC