Top stocks to watch today: Bullish, Cisco, AMAT, Coreweave

Today's market attention centers on Bullish's oversubscribed IPO, valued at $5.4 billion, despite concerns of a post-launch correction after its $1.1 billion capital raise. CoreWeave shares declined 10% as its strong Q2 results, including a 207% revenue surge to $1.2 billion and a $30.1 billion backlog, were largely priced in. Meanwhile, investors await quarterly results from Cisco, with anticipated revenue of $14.6 billion and EPS of $0.98, and Applied Materials, reporting Thursday, expected to post $7.21 billion in revenue.

Analysis

The market is reacting to several key corporate events against a backdrop of record highs for the S&P 500 and Nasdaq 100, spurred by a modest July inflation report. In the crypto space, Bullish (BLSH) is launching its IPO with significant momentum, having raised $1.1 billion in an oversubscribed offering that boosted its valuation to over $5.4 billion; however, this is tempered by a direct comparison to Circle's post-IPO performance, which saw a 47% crash from its peak. For CoreWeave (CRWV), the market has demonstrated a 'sell the news' reaction, with the stock falling nearly 10% despite posting extraordinary 207% revenue growth to $1.2 billion and an 86% increase in backlog to $30.1 billion, driven by its OpenAI partnership. This negative price action suggests the strong results were fully priced in, and the market is now weighing the company's $131 million net loss and aggressive $2.9 billion in capital expenditure. Meanwhile, anticipation is building for earnings from two tech bellwethers. Cisco (CSCO), which has rallied 37% to an all-time high on AI-related optimism, is expected to report revenue of $14.6 billion, a 7.19% year-over-year increase. Applied Materials (AMAT) is also set to report, with revenue expectations of $7.21 billion, in line with its guidance.

Key Decisions for Investors

• For CoreWeave (CRWV), the negative stock reaction to record revenue and backlog growth indicates that high expectations were already priced in, and investors should now focus on the path to profitability and the sustainability of its high capital expenditures.
• Investors considering the Bullish (BLSH) IPO should be cautious of a potential short-term surge followed by a significant correction, mirroring the trajectory of Circle, which is down 47% from its all-time high.
• Given Cisco's (CSCO) 37% rally into its earnings report, the company will likely need to deliver not only a beat on its expected $14.6 billion in revenue but also provide exceptionally strong forward guidance to sustain its current valuation.
• The upcoming earnings from both Cisco and Applied Materials should be viewed as key indicators for the broader health and demand within the AI infrastructure and semiconductor industries, respectively.