📈 Palantir's AI Awakening

Good morning.

⚡ The Fast Five → OpenAI to remain under non-profit control, Skechers sells for $9B, Ford suspends 2025 guidance, Google has launched new film and TV production wing, Palantir raises 2025 revenue outlook

🔎 Market Trends → S&P 500 snaps 9-session win streak after latest Trump tariff; US Futures Point to Lower Open

And now…

⏱️ Your 5-minute briefing for Tuesday, May 6, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Tariff Drama Hits Hollywood, But Markets Keep Their Cool

The S&P 500 (-0.6%) and Dow (-0.2%) snapped their 9-day winning streaks, while the Nasdaq slipped 0.7%, led lower by tech and entertainment stocks facing new tariff headwinds.

The Big Picture:

Wall Street paused Monday, digesting Trump’s latest tariff threats, including a potential 100% duty on foreign-made films, and prepping for the Fed’s rate decision Wednesday.

President Trump’s rhetoric raised eyebrows—but not panic. Markets are pricing in no rate change, with Fed Chair Jerome Powell expected to remain “data dependent”, giving investors room to stay optimistic amid macro noise.

Oil slipped 2.2% to $57.01 as OPEC+ signaled a second straight production increase, while gold climbed 3% to $3,339.40—a safe haven bid amid policy uncertainty.

Market Movers:

• 📉 Netflix (NFLX) and Amazon (AMZN) both fell nearly 2%, as entertainment names digested the risk of tariffs on foreign-shot films.

• 📉 Tyson Foods (TSN) tumbled 7.8% after weak Q2 sales and a legal provision dinged its earnings.

• 📈 Skechers (SKX) soared 24% on a take-private deal with 3G Capital, offering investors a clean exit.

• 📉 Berkshire Hathaway (BRK.A) dropped nearly 5% after Warren Buffett announced he’s stepping down as CEO—though long-term value remains intact.

What They’re Saying:

“This is a self-imposed tax on studios that have lost their edge... It will be very difficult to implement.” — Derek Holt, Scotiabank, on movie tariffs

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: AMD, Ferrari, Marriott International, Electronic Arts (EA)

• Tomorrow: Walt Disney, Uber, DoorDash, Emerson Electric, Fortinet, Novo Nordisk, Applovin, Carvana

MARKET BRIEF
Leading News

Palantir's AI Awakening: The Long-Awaited Commercial Breakthrough

Why it matters:

Palantir's stunning 71% surge in commercial revenue signals its transformation from government contractor to enterprise AI powerhouse, potentially justifying its premium valuation after years of skeptical investor patience.

Zoom Out:

The data analytics firm once derided as a mere "government services company" has finally delivered on its long-promised commercial expansion. With U.S. commercial revenue reaching a $1 billion run rate for the first time, Palantir (PLTR) has crossed what CEO Alex Karp called "the gold standard for when a company has really broken through."

This milestone comes as enterprises frantically seek AI systems that deliver actual business value rather than experimental capabilities. Palantir's raised guidance—now projecting 68% commercial growth for 2025—suggests the company's AI solutions are finding traction where many competitors remain stuck in proof-of-concept purgatory.

Key Insights:

• The government backbone remains solid: Despite concerns about defense budget cuts, Palantir's government business grew 45% to $373 million in Q1, demonstrating remarkable resilience in what's typically considered a slow-moving sector. Trump's proposed 13% Pentagon budget increase for 2026, focused partly on AI, could further accelerate this segment.

• Commercial adoption hit inflection point: With clients ranging from Mount Sinai to BP (BP) and Stellantis (STLA), Palantir's enterprise software is penetrating diverse industries. The company now expects commercial revenue of $1.18 billion in 2025, up from previous estimates of $1.08 billion.

• Valuation tensions persist: Despite the stock's 63% year-to-date climb, after-hours trading showed investor ambivalence—initially jumping 5% before turning negative. This volatility reflects the ongoing struggle between growth enthusiasts and valuation skeptics.

Market Pulse:

"Palantir is well positioned for this new disciplined spending environment at the Pentagon and this will ultimately be a positive growth catalyst," noted Wedbush analyst Dan Ives.

Bull’s Take:

Patient investors who weathered years of sideways trading are finally seeing Palantir's dual-engine growth machine fire on all cylinders. The company's ability to expand rapidly in both government and commercial sectors creates a uniquely resilient growth profile worth considering for your long-term innovation allocation.

Headlines

• OpenAI to remain under non-profit control in change of restructuring plans (link)

• Google has launched new film and TV production wing, Business Insider reports (link)

• Ford suspends 2025 guidance amid $2.5 billion tariff impact (link)

• JPMorgan says AI helped boost sales, add clients in market turmoil (link)

• Skechers sells for $9 billion after warning Trump’s tariffs pose ‘existential threat’(link)

• Waymo plans to double robotaxi production at Arizona plant by end of 2026 (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin to See Additional $330B of Corporate Treasury Inflows by 2029: Bernstein (link)

• Ethereum Preps for Biggest Code Change Since the Merge With Pectra Upgrade (link)

• DeFi Development Corp to acquire SOL validator business for $3.5 million (link)

• House Republicans release discussion draft of a bill to regulate the crypto industry at large (link)

DAILY SHARE
On the Socials