TOP 5 STOCKS TO WATCH THIS WEEK | AUGUST 2026
In a Nutshell
Markets face uncertainty after Iran's rejection of the Strait of Hormuz deal, potentially delaying Fed rate cuts amid weakening labor data. SMCI reports earnings August 11th with high volatility expected, while NBIS has drawn Michael Burry's short position at $211 and now trades at 65x P/E after a 35% drop. ELF and HIMS also report this week amid ongoing AI infrastructure volatility.
These notes were generated by AI and may contain inaccuracies.
Markets are reacting to news that the Strait of Hormuz deal appears to have been rejected by Iran, contradicting earlier optimistic assumptions. This development follows 25 weeks of uncertainty around the deal. The speaker had been optimistic that if a deal were reached, oil prices would drop, inflation would decrease, and the Federal Reserve would be more likely to cut interest rates. This optimism was based on the most recent labor market report showing a job loss of 20-25,000 versus the expected gain of 80,000 jobs.
SMCI is highlighted as one of the least favorite stocks due to multiple issues including investigations for potentially cooking the books and an executive caught smuggling NVIDIA GPU chips to China. Despite these issues, the company had been one of the best performing stocks in 2024 due to its NVIDIA partnership, running from lows of a few dollars to highs of $122 before crashing. The stock has found support around $23 with random rip-ups on positive news that tend to be short-lived.
Revenue has been strong with a relatively low 16x P/E multiple. Net income has recently recovered from a previous downturn. Earnings are scheduled for August 11th with expectations of $0.71 EPS and $11.73 billion in revenue. The stock tends to be extremely volatile around earnings, with the last four reports showing moves of 24%, 13%, 17%, and 7% respectively.
HIMS is also reporting earnings this week. CoreWeave and OnCloud are mentioned as additional companies reporting earnings. NBIS is identified as a major name due to its performance history, having been one of the top performing stocks in 2025 before rallying into the better half of 2026, then peaking and crashing.
NBIS is described as a technology company building full stack infrastructure to service global AI. The stock trades at a 65 P/E ratio after dropping 35% from recent highs. Current resistance is identified around $230, representing 22% potential upside from recent support levels. Conservative support levels are identified at $4.75, representing 22% downside risk from recent lows. The stock is characterized as incredibly volatile.
Michael Burry was noted to have shorted NBIS around $211. The market reacted shortly after this news. The speaker cautions against blindly following Burry's moves, noting that while he has been correct before, he has also invested in companies that didn't perform as expected. The key message is that no one can predict the future and markets can stay irrational longer than investors can stay solvent.
ELF reached 52-week lows at $48.82 before experiencing a dramatic reversal, rallying 100% in 30 days. The stock has a history of extreme volatility with patterns of strong downturns followed by quick rip-ups. The speaker notes this pattern has repeated multiple times and advises investors to consider what drove previous downturns before participating in the current rally.
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