Good morning investors!

We wanted to take a second to celebrate a little milestone with you all. We just hit 30K newsletter subscribers. Shout out to all of you! We are so happy to be building this community with you all 🙌

If this is your first time reading, welcome to The Stock Investor’s Edge — a thriving community of over 30,000 subscribers (boom!) striving to be better investors with an edge in the market.

Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

Friday’s jobs report sent high flying tech stocks lower as markets began pricing in rate hikes this year. We did see a bit of rotation to BORING stocks but all three major indexes ended the week lower. Meanwhile, treasury yields and oil moved higher.

These are some of the biggest stories from the second half of the week that had an influence on market action.

It was a data-heavy week for the US labor market, and nearly every report came in stronger than expected. Job openings surged to their highest level in nearly two years, private hiring held steady, and the headline jobs number more than doubled forecasts with upward revisions underneath it. The results land two weeks before Kevin Warsh, the new Fed chair, faces his first interest rate decision.

🔑 Key Points

👀 What You Need to Know

The labor reports this week all point to the same thing. The job market is holding up, hiring is broad, and employers are not cutting staff at an alarming rate despite rising layoff announcements tied to AI. The problem is that a strong labor market with 3.8% inflation gives the Fed no reason to cut rates. New Fed Chair Kevin Warsh holds his first meeting on June 16-17 and it will be interesting to see what he has to say.

It was a week where beats meant almost nothing. AVGO, PANW, and CRWD all topped estimates and provided strong guidance but all sold off anyway, while LULU beat expectations but cut guidance sending the stock down double digits.

Broadcom $AVGO ( ▼ 0.28% ) put up record revenue, free cash flow, and AI chip numbers, but a software miss and Hock Tan refusing to raise the $100B FY27 AI target sent shares down roughly 20% from the highs of the week.

Palo Alto Networks $PANW ( ▼ 3.67% ) delivered its strongest NGS ARR growth in years and raised full-year guidance, but shares reversed a 9% post-earnings pop and ended the week lower as integration costs from CyberArk and Chronosphere weighed on sentiment.

CrowdStrike $CRWD ( ▼ 5.66% ) posted a record Q1 by nearly every internal metric and announced a 4-for-1 stock split, but billings growth of 18% fell well short of revenue growth of 26% and the stock dropped roughly 6% this week.

Lululemon $LULU ( ▲ 2.36% ) managed a modest beat on both lines but slashed full-year guidance and confirmed North America is in serious trouble, with Americas comps down 5%, which is what the bears have argued all year.

For full breakdowns of all earnings, including graphics and all key takeaways. head to the earnings channel in our Discord.

📚 Edge-ucation: What is Guidance?

Guidance is a company's own forward-looking forecast for revenue and earnings, shared during earnings calls each quarter. Management sets a range for what they expect the business to deliver, giving investors a benchmark to measure future results against.

Understanding guidance helps investors recognize why a strong quarter can still send a stock lower. The forward outlook moves stocks more than the results themselves.

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You can invest today through the community round on Wefunder.

The Ingredients of a Blockbuster Winner

Alphabet $GOOGL ( ▼ 0.48% ) announced plans this week to raise $80B through a combination of stock offerings and a private placement, with the deal ultimately upsized to $84.75B by the time it closed on June 4. Berkshire Hathaway $BRK.B ( ▼ 0.35% ), under new CEO Greg Abel, committed $10B as the anchor investor. The capital is earmarked for AI infrastructure, as demand for its AI products is currently exceeding its available computing supply.

🔑 Key Points

👀 What You Need to Know

Alphabet just executed the largest AI-related equity raise on record, and the stock sold off because new shares mean existing shareholders own a smaller piece of the company. That dilution amounts to roughly 1.8% of Alphabet's total market cap. The company generated $33.8B in free cash flow in Q1 alone, so this raise is more about speed. Berkshire stepping in at this size, under new management, signals strong conviction in Alphabet's AI direction.

In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the upcoming jobs reports, earnings from Broadcom and Palo Alto, and our thoughts on the state of the overall market. See the latest full report here:

Every month we break down 5 stocks that we believe are attractive from a valuation and momentum perspective right now. Here’s a look at the 5 stocks we are buying in June:

Inflation will be in focus next week, especially as oil prices continue to remain elevated heading into the summer and the labor market looks much stronger than previously thought.

Earnings season is coming to an end but there are still a handful of important names left to report. Here is the full calendar of scheduled earnings releases:

Overall, just 2 of the names we cover are set to report:

Next week will be all about inflation as both CPI and PPI reports are scheduled to be released.

We also get initial jobless claims, existing home sales, and consumer sentiment.

Here is the full calendar of events we will be watching:

If you are only reading the newsletter, you are only getting a fraction of the benefits of being an Edge subscriber.

Our Discord server is tailor-made for investors like you who want to dive deeper into stocks, share insights, and engage directly with us. And it’s completely free!

Here’s what you’re missing in the Discord:

🗨️ Chat rooms: Investors discussed the the huge moves from mega cap tech. Members also dove into the number of jobs reports and shared their views on the overall economy.

📊 Earnings / Economic reports: No more waiting for our newsletters to hit your inboxes - see earnings results and economic data as they are released. And more importantly, get our reactions and insights immediately.

🚨 Trade Alerts: Chris and Mark shared several trades, including additions to the portfolio and trades that set up their portfolios for the week.

Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟

If you haven’t done so, check out the social media pages of our collaborators and give them a follow:

Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

Until next time investors!

Mark & Chris

The Investor’s Edge

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.