Good afternoon, and happy Wednesday. The market closed red, pulling back from all time highs after oil and yields put pressure back on the tape. Iranian strikes hit Kuwait today, decimating an airport and ceasefire hopes.

Crude rose about +2.5% as fresh U.S.-Iran tensions threatened the ceasefire, while the Trump administration’s new Section 301 tariff plan added another inflation headline for investors already staring down sticky yields.

Stocktwits traders were locked on the AI earnings pile. $AVGO became the cleanest post-close test, while $CRWD, $NOW, and $AI showed the broader software read: bulls still love the theme, but the market is making multiples show ID at the door.

Today's Briefing:

Broadcom, the custom AI chip and infrastructure software giant, beat earnings Wednesday night, but the stock slipped after software revenue missed and investors decided the AI print still needed a cleaner sweep. The numbers were strong. The reaction was pickier.

The RIP: $AVGO ( ▼ 14.51% ) fell about -5% after hours. Adjusted EPS was $2.44 vs. $2.40 expected, revenue was $22.19B vs. $22.27B expected, AI revenue hit $10.8B, software revenue was $7.18B vs. $7.32B, and Q3 revenue guidance was $29.4B.

The awkward part is that Broadcom gave AI bulls plenty to work with. AI revenue more than doubled, CEO Hock Tan expects it to triple to $16B next quarter, and semiconductor revenue beat estimates. But after a roughly 40% year-to-date run and a ninefold move since late 2022, “great except software” was enough to hit the sell button. 🧠

The ST community is extremely bullish, message volume is high across ~67k watchers.

Tell the $AVGO room: dip or distribution →

Broadcom was not the only AI-adjacent name getting graded like perfection was the baseline. CrowdStrike, ServiceNow, and C3.ai turned Wednesday night into an earnings battleground for the AI/software trade, where bullish communities met a tape suddenly allergic to rich multiples.

The RIP: $CRWD ( ▼ 5.21% ) fell -10% after earnings and announcing a 4-for-1 split. $NOW ( ▲ 2.49% ) dropped -10% as software sold off. $AI slipped -0.1% after C3.ai’s results, leadership changes, and restructuring chatter kept short-squeeze bulls engaged.

The read-through is simple: investors still want AI exposure, but they are no longer paying any price for the wrapper. CrowdStrike bulls are defending cybersecurity demand, ServiceNow holders are arguing dip versus reset, and C3.ai remains the purest “prove it” name in the group. 🧮

Bring it to $CRWD: reset or reload →

Imagine a future where we could mass produce homes like cars — one every minute. That’s the vision of BOXABL Inc. (“BOXABL”), a company with the goal of leading a homebuilding revolution with high quality, cost effective, factory-made, foldable houses that ship anywhere and unpack in one hour.

BOXABL announced plans for a potential SPAC merger with FG Merger II Corp. (“FGMC”) (NASDAQ: FGMC). After crowdfunding $230M from over 60,000 investors since 2020.

Currently trading on Nasdaq, $FGMC will be the surviving entity following the proposed merger's closing. The combined company will then be renamed BOXABL Inc., with the anticipated ticker $BXBL.

BOXABL expects Nasdaq trading on or about June 12th. Investors holding $FGMC shares will automatically convert to $BXBL upon closing.

FGMC on Yahoo Finance

Read the proxy statement/prospectus and other SEC filings at ir.boxabl.com
Investing in a SPAC can introduce unique risks, including but not limited to regulatory and compliance risks, liquidity risks, structure and complexity
Review the latest filings https://www.sec.gov/edgar/browse/?CIK=1816937

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

Macy’s, the department store chain trying to make its turnaround stick, gave retail bulls something rare Wednesday: actual comp growth and a raised outlook. The stock barely moved, because this is still Macy’s, and nobody gets a parade for surviving department-store winter.

The RIP: $M rose +0.6% after Q1 comparable sales climbed +3%, Macy’s stores rose +1.6%, and Bloomingdale’s jumped +10.2%. Stocktwits was mixed, with 46% bullish / 54% bearish sentiment, high message volume, and roughly 29k watchers debating whether the turnaround is real. 🛍️

Tell the $M room: turnaround or trap →

The Trump administration is rebuilding its tariff wall under a new legal roof, proposing fresh duties on 60 trading partners after the Supreme Court struck down its 2025 version in February. Allies, rivals, retailers, autos, apparel, and import-heavy supply chains are all back in the headline-risk blender. The proposal cites ‘forced labor’ for reasoning. Last year, it was fentanyl.

The RIP: USTR proposed 10% tariffs on Canada, Mexico, the EU, Britain, Taiwan, and others, plus 12.5% tariffs on China, India, Japan, South Korea, Brazil, and Switzerland. The forced-labor probe covered 60 economies, with written comments due July 6 and hearings beginning July 7. The White House imposed 10% tariffs in February under section 122 of the Trade Act of 1974, but those duties expire in July.

"Tariffs begin again," Henrietta Treyz of Veda Partners wrote Tuesday.

That may be cleaner legally, but it hurts allies while exempting politically sensitive goods like energy, rare earths, beef, coffee, aircraft parts, and USMCA-compliant trade. Watch import-heavy retailers and brands like $WMT, $TGT, $NKE, $LULU, plus global auto exposure through $TM and $HMC. At least it’s not world record tariffs on every single country this time. 🧱

The Fed’s May Beige Book dropped Wednesday. Reps from across the country reported in: growth is still alive, hiring is frozen, and prices are heating back up. Translation: not weak enough for easy cuts, not cool enough for a victory lap.

The RIP: Economic activity rose at a slight to moderate pace in 10 of 12 Fed Districts. Employment showed little to no change in 11 districts. Manufacturing activity increased in 9 districts. Prices rose at a moderate to strong pace, with most districts reporting higher inflation than the prior report.

"Consumer spending remained mixed across Districts," the report said Wednesday. "Employment showed little to no change… Prices increased at a moderate to strong pace overall… Middle-income households were described as 'squeezing more life out of every dollar.’”

Imagine a future where we could mass produce homes like cars — one every minute. That’s the vision of BOXABL Inc. (“BOXABL”), a company with the goal of leading a homebuilding revolution with high quality, cost effective, factory-made, foldable houses that ship anywhere and unpack in one hour.

BOXABL announced plans for a potential SPAC merger with FG Merger II Corp. (“FGMC”) (NASDAQ: FGMC). After crowdfunding $230M from over 60,000 investors since 2020.

Currently trading on Nasdaq, $FGMC will be the surviving entity following the proposed merger's closing. The combined company will then be renamed BOXABL Inc., with the anticipated ticker $BXBL.

BOXABL expects Nasdaq trading on or about June 12th. Investors holding $FGMC shares will automatically convert to $BXBL upon closing.

FGMC on Yahoo Finance

Read the proxy statement/prospectus and other SEC filings at ir.boxabl.com
Investing in a SPAC can introduce unique risks, including but not limited to regulatory and compliance risks, liquidity risks, structure and complexity
Review the latest filings https://www.sec.gov/edgar/browse/?CIK=1816937

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

📈 Watch experts identify winning stocks in real time––save $400+ on 6 months of IBD Live*

🤑 Anthropic said to pick Morgan Stanley and Goldman to lead IPO

😨 Dan Ives Says ‘Market Is Mispricing’ MSFT Stock — Here’s Why

🏠 Sellers are pulling homes off the market at the fastest pace since 2020

💰 SpaceX targets fixed $135 IPO roadshow price at $1.75 trillion valuation, source says

📺 GOP Sen. Tillis slams Trump intelligence pick Pulte: ‘Don’t think he has a prayer’

Iran strikes Kuwait’s main airport and kills 1 as ceasefire is tested again

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

Macro: Initial Jobless Claims (12:30 PM ET), Fed Daly Speech (5:10 PM ET). 📊

Pre-Market Earnings: $FCEL Fuelcell Energy Inc, $CIEN Ciena Corp, $PYYX Pyxus Intl Inc., $OESX Orion Energy Sys. ☀️

After-Market Earnings: $LULU Lululemon Athletica, $DOCU DocuSign, $PL Planet Labs Class A, $ADN Advent Technologies Holdings Inc, $RBRK Rubrik Inc. - Class A, +3 more. 🌙

P.S. You can listen to all of these earnings calls on Stocktwits.

Want to see some change? Email Kevin Travers feedback, follow him on Stocktwits. Refer a friend for this quarter’s edition of The RIP Forecast!

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