Markets
markets
Matt Phillips

Why Palantir is falling

Palantir tumbled in early trading Friday, putting the vendor of defense, data analysis, and AI integration software on track for its fourth straight negative session.

Some of the slump may stem from fresh news of budgetary axe-swinging at the Department of Defense, a key Palantir client. Bloomberg reported that the DOD said it would terminate plans to use Oracle HR software, citing delays and cost overruns. (News of DOD budget cuts have hit Palantir shares before.)

Of course, a big part of Palantir’s tumble is simply a function of it being a more volatile stock than others in the midst of a broad market downdraft. On average, shares have been 2.8x as volatile as the S&P 500 on a daily basis over the past two years, so a significant chunk of today’s decline is linked to the benchmark index’s brisk retreat.

Oracle, Leidos Contract Targeted by US Pentagon Cost-Cutters

Oracle, Leidos Contract Targeted by US Pentagon Cost-Cutters

Of course, a big part of Palantir’s tumble is simply a function of it being a more volatile stock than others in the midst of a broad market downdraft. On average, shares have been 2.8x as volatile as the S&P 500 on a daily basis over the past two years, so a significant chunk of today’s decline is linked to the benchmark index’s brisk retreat.

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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 shares screenshots of Scion Asset Management’s letter to GameStop’s board of directors, as well as emails appearing to be from Keith Gill, a.k.a. Roaring Kitty, the retail trader whose GameStop thesis inspired legions to jump on board, and Ryan Cohen, who would go on to become GameStop Chairman, President, and CEO.

Shares have bounced back in earnest since the stock regained support of $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 pick-up 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 Treasuries

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, Treasuries, 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 02:40 am 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.

Whilst CyrusOne is 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 Treasuries, as well as futures on major US indices 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 health care.

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.

markets
Luke Kawa

AI stocks linked to OpenAI are rallying in a reversal of recent trends

The AI pendulum appears to be swinging back in the other direction, at least for one day.

The TL;DR trade within AI has recently been “long Google and its supply chain partners, short anything closely affiliated with OpenAI.”

As we discussed yesterday, the Google ecosystem has been booming, while key OpenAI suppliers and investors have been languishing.

Today, we’re seeing a bit of a reversal in that seeming pair trade — and, in what’s very positive for markets on the whole, this is being driven by the outperformance of the OpenAI-linked cohort rather than intense pain for the Google group.

Nvidia, CoreWeave, Oracle, and Advanced Micro Devices are all trading well to the upside in early trading. Meanwhile, Google is modestly lower, and Broadcom and Lumentum are in the green, though not by as much as most of the OpenAI-linked suite of stocks.

“With the trillions set to be spent over the coming years many Big Tech players will benefit besides Nvidia on the chip front... that should not be mistaken for Nvidia being the indisputable Rocky Balboa champion of the AI Revolution and that is not changing any time soon on the chip front,” wrote Wedbush Securities analyst Dan Ives.

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