- Bull Street
- Posts
- 📈 Five Below's Earnings Pop
📈 Five Below's Earnings Pop
Meta Eyes $10B Scale Investment, Broadcom AI Soars Despite Concerns, Microsoft ASUS Launch Xbox Ally, Tesla Gets Rare Wall Street Downgrade, Qualcomm Buys Alphawave for $2.4B
Evelio Silvera
June 09, 2025
In partnership with
Good morning.
⚡ The Fast Five → Meta Eyes $10B Scale Investment, Broadcom AI Soars Despite Concerns, Microsoft ASUS Launch Xbox Ally, Tesla Gets Rare Wall Street Downgrade, Qualcomm Buys Alphawave for $2.4B
🔎 Market Trends → US stocks end up on jobs data, China hopes; Tesla bounces; US Futures Stabilize Ahead of May Jobs Report
And now…
⏱️ Your 5-minute briefing for Monday, June 9, 2025:
MARKET BRIEF
Before the Open
As of market close 06/06/2025.
Pre-Market
| 
|
Fear & Greed
Markets in Review
Wall Street Breaks Above 6,000 as Jobs Hold, Talks Near
The S&P 500 rose 1% to close above 6,000, joined by a 1.2% gain in the Nasdaq and a 1.1% lift in the Dow. All sectors ended in the green, led by energy and communication services.
The Big Picture:
Stocks surged Friday as strong job growth and fresh momentum in US-China trade diplomacy bolstered investor sentiment. The headline payroll number came in better than expected at 139,000, while unemployment held steady at 4.2%, providing fuel to markets without fanning inflation fears.
The White House confirmed that top trade officials will meet with their Chinese counterparts Monday in London — a positive signal after recent tensions and accusations of pact violations. Markets viewed this as progress, not perfection.
President Trump doubled down on his call for the Fed to cut rates, despite inflation showing signs of persistence. Meanwhile, the bond market saw a decisive shift: Treasury yields surged, reflecting tempered expectations of near-term easing.
Market Movers:
Tesla (TSLA) rebounded 3.7% after a brutal 14% drop, with Wedbush calling the selloff “way oversold” and reaffirming its $1T long-term value thesis on the company’s autonomous future.
Amazon (AMZN) gained 2.7%, boosted by regulatory optimism as it pledged to improve fake review safeguards.
Lululemon (LULU) plunged 19.8% after cutting guidance despite a strong Q1. Investors fear margin compression.
Broadcom (AVGO) dropped 5% on a “not good enough” quarter — results beat estimates, but the street wanted fireworks.
What They’re Saying:
“This spat between Trump and Musk does not change our firmly bullish view... we value Tesla's autonomous future at $1 trillion alone.” — Wedbush Securities
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Casey’s General Stores, Skillsoft
Tomorrow: GameStop, The J.M. Smucker Company, Dave & Buster’s, Stitch Fix, Academy Sports + Outdoors, Designer Brands (DSW)
MARKET BRIEF
Leading News
Five Below's Earnings Pop: When Good News Meets Overheated Expectations
Photo Credit: Five Be
Why it matters:
Discount retailer Five Below (FIVE) delivered stellar Q1 results, but the 57% rally in 30 days suggests investors may have gotten ahead of themselves—a classic case of euphoria pricing in perfection.
Zoom Out:
The fundamentals tell a compelling story. Net sales jumped 19.5% to $970.5 million, while comparable store sales climbed 7.1%—impressive metrics in today's challenging retail landscape. Management's decision to raise full-year guidance speaks to genuine operational momentum, not financial engineering.
Yet here's where behavioral finance meets market reality: FIVE now trades 20% above its consensus price target of $103.45, sporting a forward P/E of 26x. The stock's RSI sits at 74, screaming "overbought" to anyone who remembers that trees don't grow to the sky.
The tariff wildcard adds another layer of complexity. While Five Below has smartly reduced China sourcing by 10% for H2 2025, trade policy remains a moving target that could quickly deflate this retail balloon.
Key Insights:
Store expansion strategy: 30 new locations planned, targeting 7-9% comparable sales growth—a proven formula for sustainable revenue growth
Margin resilience: Despite tariff headwinds, the company's "trend-right product" strategy maintains pricing power with younger consumers
Technical setup: Key support levels at $121.50 and $107.25 offer potential entry points for patient investors
Market Pulse:
Six analysts have reiterated bullish ratings post-earnings, with several raising price targets—a familiar pattern when momentum meets genuine fundamentals.
Bull’s Take:
Five Below's execution remains solid, but smart money waits for pullbacks. This is a quality growth story trading at momentum prices—patience pays.
Headlines
Meta Eyes $10 Billion Plus Investment in Scale AI Startup (link)
Apple’s AI Siri Update Reportedly Facing Uphill Battle (link)
Broadcom’s AI Revenue Booms Despite Valuation Concerns (link)
Microsoft and ASUS debut "Xbox Ally" gaming handhelds (link)
A rare downgrade for Tesla as this Wall Street firm sees too much uncertainty on too many fronts (link)
Qualcomm to buy UK's Alphawave for $2.4B (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to wallstmemes
Start learning AI in 2025
Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.
It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.
Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.