Markets
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Matt Phillips

New high for Palantir shares

Palantir Technologies, the data mining, defense, and intelligence software firm cofounded by politically connected right-wing billionaire Peter Thiel — is on track for a new record high on Friday, suggesting either increased optimism around its earnings results due after the close of trading on Monday, or growing confidence that financial fundamentals are passé when it comes to companies close to the Trump administration. Perhaps both.

Palantir was the best-performing stock in the S&P 500 last year, rising 340.5%, a gain that’s put a valuation on the shares — price-to-sales multiple of more than 50x and a price-to-forward earnings ratio of 180x — that makes no sense according to any traditional valuation model.

In this sense, the company is a bit like Tesla, a stock that is, according to traditional metrics, so insanely overvalued as to provoke a sort of crisis in confidence among Wall Street analysts who are increasingly willing to publicly confess that they can’t understand why the shares of this faltering car company continue to rise.

For what it’s worth, the good folks over at the Financial Times seem able to see and state clearly what’s going on, at least when it comes to Tesla. It’s the politics, stupid.

The election of Donald Trump — which Elon Musk spent the relative pittance of $250 million to make a reality — coincided with an explosive move higher for Tesla shares, which can reasonably be interpreted as the market pricing in a business windfall resulting from Elon Musk is a de facto member of the administration.

Thiel — the cofounder and largest individual shareholder in Palantir — also has unusually close links to Trumpworld, having once employed the Vice President JD Vance and helped bankroll his run for the US Senate. The trajectory of Palantir likewise angled sharply higher after the election. In fact, the stock has literally doubled since November 4, the day before the vote.

From an investment perspective, this could be pretty rational, especially since the US government is Palantir’s single largest customer. From an optics perspective, though, the specter of the stock market pricing in Trump-premium for politically connected companies feels a bit grimy.

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J. Edward Moreno

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.

Luke Kawa
7/2/26
US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Luke Kawa
7/1/26
Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings
markets
Paige Oamek

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.”

markets
Helena Cheng

Rocket Lab deal lifts space stocks

Shares of Rocket Lab are surging after announcing an $8 billion acquisition of satellite communications operator Iridium Communications, helping lift a broader basket of space-related stocks as investors piled back into the sector.

Planet Labs, AST SpaceMobile and Redwire all traded higher alongside Rocket Lab, extending gains in an industry that has drawn enhanced investor attention in recent months in light of the strategic importance that governments place on space and satellite communications infrastructure.

In a presentation, Rocket Lab’s management called the purchase “a shortcut” for its satellite communications business.

Under the terms of the agreement, Iridium shareholders will receive $27 in cash and Rocket Lab stock, valuing Iridium at $54 per share. Backed by a $3.6 billion bridge loan committed by Deutsche Bank and Wells Fargo, Rocket Lab absorbs Iridium’s globally licensed spectrum and an active base of 2.5 million subscribers.

Rocket Lab has also remained one of the most active launch providers in the sector. The company completed its 12th launch of the year last week, maintaining one of the highest launch cadences among commercial space companies.

Today's rally helps offset a brutal stretch for the group. Rocket Lab shares had fallen over 35% over the prior month, while Planet Labs stock was down more than 40% and AST SpaceMobile stock was down around 30% over the same window.

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