Stocks will keep ripping to record highs as retail traders continue buying spree, Citadel says
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Trump says he doesn't trust the jobs data, but Wall Street and economists do
WASHINGTON — The monthly jobs report is already closely-watched on Wall Street and in Washington but has taken on a new importance after President Donald Trump on Friday fired the official who oversees it. Trump claimed that June's employment figures were 'RIGGED' to make him and other Republicans 'look bad.' Yet he provided no evidence and even the official Trump had appointed in his first term to oversee the report, William Beach, condemned the firing of Erika McEntarfer , the director of the Bureau of Labor Statistics appointed by former President Joe Biden. The firing followed Friday's jobs report that showed hiring was weak in July and had come to nearly a standstill in May and June, right after Trump rolled out sweeping tariffs .
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Trump's love for American Eagle's 'good jeans' ad campaign sparks a fresh 24% rally in the stock: 'Go get 'em Sydney!'
Donald Trump is a big fan of American Eagle's newest ad campaign. Praise from the president on Truth Social helped spark a fresh rally in the clothing retailer's stock. "The jeans are 'flying off the shelves.' Go get 'em Sydney!" Trump wrote. The retail traders who sparked a meme-like rally in American Eagle stock after Sydney Sweeney became the face of a new ad campaign were joined by Donald Trump on Monday in praising the brand. The president's love for the "Sydney Sweeney has great jeans" campaign kicked off a fresh surge in the stock on Monday, with shares rising as much as 24%. The company's campaign featuring the famous actor sparked controversy online — some claimed that it promoted eugenics while others accused it of being overly sexual in nature — but Trump made it clear he's a big fan. "The jeans are 'flying off the shelves.' Go get 'em Sydney!" he wrote on Truth Social before calling out other companies for "woke" advertising. Trump cited examples of companies such as Jaguar and Bud Lite that created ad campaigns that were met with backlash from some consumers. "The market cap destruction has been unprecedented, with BILLIONS OF DOLLARS SO FOOLISHLY LOST," Trump wrote. It's the latest leg of a meme-like stock surge for American Eagle, which jumped last month after retail traders online piled in following the reveal of new ads featuring Sweeney. The stock ultimately lost some momentum following the late July rally, which also saw several other new meme stocks rise. Trump's post helped it make up some of the ground it lost since then. However, even after multiple surges, the fashion retailer is still down almost 23% year-to-date (YTD) after a difficult start to 2025. Read the original article on Business Insider Sign in to access your portfolio
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Wall Street thinks the party for Palantir can continue even after a wild rally in 2025 — but there's one key risk
Palantir is the top-performing stock in the S&P 500 this year, and Wall Street is upbeat about what's ahead. Palantir has been on a tear, climbing 113% since the start of the year. A lofty valuation is the main risk analysts are eyeing heading into second-quarter earnings. Wall Street thinks the Palantir party can keep going. The stock is already up by about 113% this year as it heads into its second-quarter earnings report after the bell on Monday, but analysts see reasons to believe the gains can pile up further. The Alex Karp-led software giant is benefiting from a slew of government contracts, roaring AI demand, and a cultlike following among retail investors in 2025. Shares of the company have soared from around $75 a share at the start of 2025 to above $160 on Monday. That ascent has made Palantir the best-performing stock in the S&P 500 this year. Analysts are bullish about Palantir's second-quarter earnings. They estimate the tech giant will report $939.3 million in revenue for the three-month period, up around 38% year over year. Here are some of the reasons they see the growth story continuing — and one key risk. 1. The AI trade is still running hot Palantir will likely keep up growth in its commercial segment, thanks to the ongoing hype surrounding AI. Accelerating AI adoption is creating a greater need to integrate data, which is good news for the stock, analysts at Mizuho wrote in a note. The bank said it conducted checks on Palantir's enterprise inbound activity, which gave it confidence that the company would be able to beat its commercial growth guidance in 2025. Palantir expects the US commercial side of its business to grow 68% for the year. "PLTR's recent execution and momentum is stunning, including material upward revisions across its commercial and government segments that we very much underestimated," Mizuho analysts wrote. Analysts at UBS said they also conducted checks on Palantir's enterprise businesses, and lifted their estimates for the company's revenue growth from 31% to 38% for the year. "We see potential tailwinds from the increasing adoption of AI across enterprise," Citi analysts wrote, adding that its checks and its conversation with Palantir's chief finance officer were also positive. Government contracts A large part of Palantir's growth story has been fueled by its contracts with the federal government. In April, the software company secured a $30 million deal with the US Immigration and Customs Enforcement for software to monitor visas and track deportations. In May, the firm teamed up with Fannie Mae, and said it would provide AI tools to support the government-sponsored mortgage financier's Crime Detection Unit. It also secured a $795 million contract with the Department of Defense's AI arm, and last week, locked a deal to help streamline the US Army for up to $10 billion for the next decade. The deal consolidates 75 existing contracts into a single agreement. "We believe this deal represents an additional tailwind for PLTR with AI initiatives across the US government accelerating with AI a strategic focus on the federal front and Palantir in the sweet spot to benefit from a tidal wave of federal spending on AI," analysts at Wedbush Securities wrote last week, calling Palantir one of the top tech stocks to own in 2025. "We remain positive on the public sector pipeline, which appears durable given ongoing geopolitical instability. Net, we believe PLTR will likely be able to continue growing its Government revenue >40% Y/Y over at least the near-term," Mizuho said. "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption; the continued push for efficiency and technology adoption in the US government; and adoption of Operation Warp Speed among new defense entrants, traditional defense companies, and the broader manufacturing industry," analyst at Goldman Sachs wrote in a note following Palantir's first-quarter earnings report in May. High bar But there's one risk Wall Street is eyeing: the valuation is at eye-watering levels. As of Monday afternoon, the trailing 12-month price-to-earnings ratio was above 690x. Despite a bullish short-term outlook, Goldman Sachs, UBS, and Mizuho are among those on Wall Street who rated Palantir as "neutral" headed into its second-quarter earnings. Analysts at Citi, meanwhile, rated the stock as "Neutral/High Risk." "We maintain our Neutral/High Risk rating on the stock on valuation concerns and our view that second derivative/revision trends could moderate limiting upside," Citi added in a note. "That said, we are equally stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software," Mizuho analysts said, adding they would "continue to worry" that the stock could see a reversion sometime in the next several quarters. "We continue to be very impressed by the fundamental story (we have been since our launch) but valuation remains our key hurdle, we remain Neutral rated," UBS said. Read the original article on Business Insider
