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🗞️ Apple Partners With Google
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Market Performance
S&P 500: 6,466.91 (⬆️ 1.52%)
Nasdaq: 21,496.54 (⬆️ 1.88%)
Dow Jones: 45,631.74 (⬆️ 1.89%)
Alphabet Stock Gains On Apple Partnership
Alphabet (GOOGL) shares rose over 3% on Friday following reports that Apple (AAPL) is in early discussions to use Google's Gemini AI models for an updated Siri assistant.
Bloomberg reported Apple recently approached Google about building a custom AI model to power a new Siri launching next year.
This comes as Google faces potential penalties for its alleged search monopoly, with the DOJ recommending the elimination of exclusionary agreements, including Google's lucrative iPhone search positioning.
The talks highlight Apple's struggle to define its AI strategy while Google's Gemini consistently tops AI benchmarks.
Apple's Craig Federighi previously mentioned exploring partnerships with multiple AI providers, including Google, Anthropic, and OpenAI, for its Apple Intelligence framework.
Google's Gemini offers advanced capabilities like video summarization and multimodal input handling that exceed current Siri functionality.
Alphabet stock is fundamentally strong and has a Ziggma score of 90. However, it ranks in the bottom-half percentile in terms of growth.
Our Takeaway
This partnership could be transformative for both companies.
Apple gains access to leading AI technology while Google potentially secures a new revenue stream despite antitrust pressures.
The collaboration signals Apple's pragmatic approach to AI development through strategic partnerships rather than purely internal development.
Big investors are buying this “unlisted” stock
When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.
Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.
And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.
Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.
Market Overview
U.S. markets delivered a powerful finish to the week, with all major indexes posting substantial gains after Federal Reserve Chair Jerome Powell's Jackson Hole speech signaled the beginning of monetary policy easing.
The rally represented a stark reversal from earlier in the week when technology stocks faced selling pressure.
On the NYSE, advancers outnumber decliners by an impressive 15-to-1 margin, with 2,380 stocks advancing while only 158 declined.
Within the S&P 500, an overwhelming 471 members traded in positive territory, demonstrating underlying bullish sentiment.
The anticipated policy shift triggered significant sector rotation, with rate-sensitive industries leading the charge.
Financials surged 1.7% as investors positioned for improved lending margins, while homebuilding stocks jumped on expectations of lower mortgage rates.
Technology megacaps, which had struggled earlier in the week, rebounded strongly with names like Tesla (+6%), Amazon (+3%), and Alphabet (+3%) posting solid gains.
Bond markets reinforced the dovish interpretation, with yields falling sharply across the curve.
The 10-year Treasury yield dropped 7 basis points to 4.26%, while the more sensitive 2-year yield plunged over 8 basis points to 3.705%.
This yield compression provided additional fuel for equity gains, particularly benefiting rate-sensitive sectors.
Stock Moves Deciphered 📈
Intel (INTC)
Shares rose 6% Friday after Commerce Secretary Howard Lutnick announced the U.S. government has taken a 10% stake in the embattled chipmaker, representing the Trump administration's latest corporate intervention.
Enphase Energy (ENPH)
The stock surged 10% following Powell's rate cut hints at Jackson Hole. Lower borrowing costs could boost solar installations, benefiting the renewable energy company after a challenging 46.5% decline this year.
Nvidia (NVDA)
The chipmaker was volatile after reports of halting H20 chip production for suppliers. The AI giant is also discussing shipping more advanced semiconductors to China with U.S. government approval.
Headlines You Can't Miss
🏘️ Homebuilders Surge on Powell Comments: Builders FirstSource jumped 8% and Mohawk Industries added 7% as rate cut hopes sparked optimism for lower mortgage costs and housing demand.
📈 Ether Surges 9% to $4,600: The cryptocurrency rallied following Powell's dovish comments, with $118M in short liquidations and crypto stocks like Coinbase gaining 6%.
🇨🇦 Canada Drops Retaliatory Tariffs: The White House called Canada's decision to remove tariffs on U.S. goods "long overdue" as trade discussions continue under new leadership.
📊 Equal Weight S&P 500 ETF Hits Record: The Invesco S&P 500 Equal Weight ETF jumped 2% to an all-time high, outperforming the traditional market-cap weighted SPY.
🚀 12 S&P 500 Stocks Hit 52-Week Highs: Nine companies, including MasterCard, Travelers, Live Nation, and Northrop Grumman, reached all-time highs during Friday's broad rally.
Trending Stocks
Intuit (INTU) shares dropped roughly 6% despite beating fiscal fourth-quarter expectations with adjusted earnings of $2.75 per share versus $2.66 expected and revenue of $3.83 billion versus $3.75 billion expected.
The financial technology company's stock decline reflects broader market weakness affecting even strong earnings performers.
CEO Quote🎤: “We had an exceptional fiscal 2025 with 20 percent growth in the fourth quarter and 16 percent growth for the full year.”
Workday (WDAY), the human resources software stock, slid nearly 6% after providing third-quarter guidance that met but didn't exceed expectations.
The company expects subscription revenue of $2.24 billion and adjusted operating margin of 28.0%, just slightly below the 28.1% consensus estimate.
CEO Quote🎤: “Workday delivered another solid quarter, driven by our AI and platform innovation, international momentum, and an ecosystem that continues to grow alongside us.”
American Airlines (AAL) - The airline stock gained more than 7% after investors were optimistic about interest rate cuts that should lower the company’s cost of debt and improve consumer spending.
CEO Quote🎤: “We remain confident that the actions we have taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the future.”
What’s Next?
Key Events to Watch 👇
Fed Chair Powell hints at September rate cut.
Volatility index might move lower as risk appetite returns.
Nvidia, Snowflake, and CrowdStrike to report Q2 earnings this week.
Track upcoming news and earnings on your portfolio companies with Ziggma.
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.