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Matt Phillips

Citi initiates coverage of Planet Labs with “buy” rating

Planet Labs was up after aerospace and defense analysts at Citi initiated coverage with a “buy/high risk” rating and $19 price target.

The stock is up more than 40% this week, after a strong earnings result that spotlighted the company’s growing opportunity in linking its core business of capturing daily images of the planet with AI technologies.

Citi analysts noted the potential for a positive flywheel effect for Planet Labs as it deepens its focus on integrating AI into its offerings:

“AI is accelerating the conversion of pixels to decisions, where Planet’s daily scan and deep archive offer a uniquely large training corpus and broad-area foundation for automation. AI-enabled solutions (MDA/GMS/AMS) are gaining traction with customers such as NATO and the U.S. DoW, validating the approach of integrating AI into broad-area monitoring products... These AI moves create a compounding advantage: more coverage generates more training data, which improves models, which in turn increases product utility and addressable demand.”

The stock has also caught the attention of some of the retail trading crowd, with call options activity spiking on Thursday as traders rode the market reaction to the results.

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Luke Kawa

Oracle tumbles after Bloomberg report that it’s delaying some data centers for OpenAI to 2028 from 2027

Getting a multi-hundred-billion-dollar backlog for cloud computing revenues from data center projects is easy. Building them is hard.

Oracle extended declines to as much as -6.5% on the day on the heels of a Bloomberg report that the cloud giant has pushed back the completion dates for some of the data centers it’s building for OpenAI to 2028 from 2027, citing people familiar with the work.

This postponement is being attributed to labor and material shortages.

Oracle has been spending more on capex than Wall Street had anticipated, leading to higher-than-expected cash burn. Management boosted its full-year capital spending plans by $15 billion after reporting Q2 results earlier this week.

And yet, it still doesn’t appear to be spending enough to be able to deliver these massive projects on schedule.

Oracle’s cloud infrastructure sales came in short of estimates in its fiscal 2026 Q2, a signal that markets already had reason to doubt its ability to quickly turn its humungous RPO (that is, remaining purchase obligations) into revenues.

Traders also seem to be of the mind that delays to data center completions are going to hurt demand for what goes into them.

Some of the bigger losers since the Bloomberg headline hit the wires include:

markets
Luke Kawa

Broadcom’s post-earnings tumble is weighing on Google’s entire AI ecosystem

Broadcom’s post-earnings plunge is prompting a sharp pullback in Google-linked AI stocks, which had been on fire thanks to the warm reception to Gemini 3.

The stocks getting hit hard:

A basket of these Google-linked AI stocks compiled by Morgan Stanley is suffering one of its worst losses of the year. This brisk retreat also follows the release of GPT-5.2 by OpenAI.

markets
Max Knoblauch

After a good night’s rest, investors decide they liked Rivian’s AI Day event, sending the stock surging

Wall Street didn’t seem to care very much about Rivian’s AI news when it dropped yesterday, but today is a new day.

Shares of the EV maker are up more than 16% on Friday morning, with call volumes already at about 70% of their 20-day average just 20 minutes into the trading session. The price action propelled Rivian stock to its highest level since January 2024.

Following Rivian’s Thursday event, in which it said it would replace Nvidia chips with its own and hinted at a robotaxi plan, Needham & Co. sharply hiked its price target on the company from $14 to $23. Analyst Chris Pierce wrote that the AI event “strengthened [Needham’s] conviction in RIVN’s longer term autonomy roadmap and points of differentiation vs legacy OEMs.”

markets
J. Edward Moreno

Fermi drops after tenant terminates $150 million contract

Fermi fell in early trading on Friday after it disclosed that its first tenant for its planned Project Matador power grid site has terminated its $150 million contract.

Fermi, which was cofounded by former Energy Secretary Rick Perry, plans to build nuclear energy infrastructure to power data centers. In September, Fermi announced that it had entered into a nonbinding letter of intent with a tenant to lease a portion of Project Matador. That contract was terminated on Thursday, Fermi said in a Friday regulatory filing.

Fermi, which currently generates no revenue, said it is talking to other potential tenants for the Project Matador Site and “remains confident that it will be able to meet its expected power delivery schedule at Project Matador as the demand for behind-the-meter power for AI remains robust over the near and long term.”

Fermi, which went public in October, is now down more than 70% since its IPO. Last month the company had its first quarterly earnings report, in which it reported steeper-than-expected losses.

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J. Edward Moreno
3h
Weed stocks rally on reports that Trump admin is close to reclassifying marijuana

It’s not the first (or second or third) time that the Trump administration has been rumored to be considering reclassification.

Jar full of marijuana buds

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