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.
Sign in to read the full notes
Get access to AI-generated notes, topic timestamps, and more.