DECREASE IN PPI RAISES RATE CUT HOPES HIGH

1. GameStop (GME) – Leveling Up

The Headlines:

GameStop crushed Q2 earnings, with $0.25 EPS beating expectations of $0.19, and revenue of $972.2 million, up from ~$798M last year — both surprising analysts positively.

Stock Moves:

Shares popped ~1.4–3% in after-hours, fueled by strong numbers — but still down ~25% year-to-date.

Fun Facts:

• Hardware/accessories sales jumped 31%; collectibles soared 63%, while software dipped 27%.

• Profit surged to $168.6M (31¢ per share)— huge from $14.8M (4¢) a year ago.

• Cash stash: $8.7B — more than double last year. Unreal liquidity.

TL;DR: Turnaround vibes? Kinda. While still underperforming broader market, GME’s boosted by collectibles and stronger cash flow. Could be a sleeper pick if the turnaround continues to roll. ⏩

2. Oracle (ORCL) – Cloudy with a Chance of AI Rainbows

What’s Poppin’:

Oracle stock exploded 23–39% as it forecasted $18B in OCI revenue this year (up from 70%), and a jaw-dropping $144B in four years.

Earnings:

• Q1 revenue of ~$14.9B and EPS of $1.47 — slightly under estimates.   

• But promise of four multi-billion cloud contracts and AI-fueled backlog growth stole the show.   

What’s Pushing It Up:

• Oracle’s remaining performance obligations (backlog) soared to $455B from $138B.🤯

• Partnerships with AI giants like OpenAI, Meta, NVIDIA, AMD — plus multicloud expansion via Amazon, Google, and Microsoft.   

Vibe Check:

Oracle’s playbook: “We might not crush earnings today, but tomorrow? We’re building AI-powered cloud empires.” And investors agreed. Long-term? The AI wave could keep this ship sailing. ⤴️

3. Chewy (CHWY) – Growing Paws, Shrinking Hopes

Numbers Looked Good — But People Wanted More:

• Revenue: $3.10B, up 8.6%.

• EPS: $0.33, meeting expectations.   

Stock Fell:

Despite beating revenue and matching earnings, shares dropped 8–15%, because expectations were sky-high after recent rallies.

Behind the Numbers:

• Active customers: ~20.9M (up 4.5%)

• Raised full-year revenue guidance to ~ $12.5–12.6B.

Real Talk: Growth is solid, but expectations were higher. It’s like hitting the boardwalk but missing the Ferris wheel of hopes. Still looks fundamentally okay — just not thrilling enough right now. 🐾📉

4. Synopsys (SNPS) – Rough Quarter, Rougher Reaction

Missed It:

• EPS: $3.39 vs. estimate ~$3.84.

• Revenue: $1.74B vs. estimate ~$1.77B.   

Stock plunged ~18–34% after hours. Yikes.

Why the Cold Shower?

• Lower performance in Design IP segment, due to export restrictions and one major customer falling out.

• Just did a massive $35B acquisition of Ansys — integration still uncertain.

Bottom-Line: Investors are spooked. It feels like “risky integration + headwinds = caution ahead.” Could rebound if guidance holds up and integration smooths, but for now: 🆘

Ranking Time — Best to Worst for Newbie Investors

1. Oracle – Long-term AI bet, big contracts, backlog = major upside.

2. GameStop – Fun comeback story, strong quarter, but still volatile.

3. Chewy – Steady growth, but missing hype expectations. Solid, just not exciting.

4. Synopsys – Missed, stock crashed, big acquisition risk — proceed very cautiously.

PPI Data Snapshot – August 2025

• Producer prices fell unexpectedly by 0.1% in August, a direct reversal after a revised 0.7% increase in July—economists were expecting a 0.3% rise.

• Service costs led the decline, dropping 0.2%, while goods prices ticked up slightly by 0.1%.

• Year-over-year, headline PPI rose 2.6%, down from 3.1% in July; core PPI (excluding food and energy) increased 2.8%, a deceleration from July’s levels.     

What This Means (in Simple Terms)

1. Wholesale inflation is cooling. At the producer level, companies are paying less or not passing on as much higher costs—this can eventually filter down into more moderate price changes for consumers.

2. The drop in services inflation—particularly in retail and trade margins—suggests businesses may be trimming their own profits, not hiking prices.

3. The slowing inflation trend adds weight to expectations that the Federal Reserve could lower interest rates soon, especially amid other economic softness signals like weak job growth.