Monday Momentum: Tech Bets and Short Squeezes Dominate

Microsoft's AI Pivot Rattles Rivals

Microsoft is weighing DeepSeek for its Copilot platform, according to Axios. That's a significant shift if confirmed. It signals that even the biggest AI spenders are shopping for cheaper models. The news adds pressure to premium AI plays across the board.

Hewlett Packard Enterprise moved in the opposite direction. The company expanded its AI-native "self-driving network" strategy, folding Juniper's networking gear into its data centre offering. HPE is positioning itself as an AI infrastructure pick as enterprise spending ramps.

Netflix Eyes M&A, Media Stocks React

Netflix is flexing its deal-making power in media. Reports say the streaming giant is competing in bidding contests that are rattling Wall Street. Warner Bros. Discovery, Fox, and Roku all sit in the crossfire. Netflix carries short interest of just 2.4% of free float — bears are largely on the sidelines.

HIMS Climbs Despite Heavy Shorts

Hims & Hers Health stock rose Tuesday even as short interest holds at 28.8% of free float. Availability to borrow is just 0.6% of SI — shares to short are nearly impossible to find. Options traders are active through September. The squeeze dynamics here are worth watching.

Analyst Cuts Hit Tractor Supply

Tractor Supply took two downgrades today. Truist and Piper Sandler both moved to Hold. Truist cut its target from $44 to $32. That's a 27% reduction in one move. Meanwhile, Southwest Airlines caught a rare upgrade. Jefferies lifted its target to $44 from $37 — a 19% jump.

Earnings Week Begins

Progressive releases May results today. CarMax reports tomorrow with short interest at 11.5% of free float. Bears are positioned closely around that name.