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$Vertiv(VRT.US)

Vertiv: The “Utility” Behind AI Data Centres

Vertiv $Vertiv(VRT.US) is increasingly becoming a mission-critical picks-and-shovels play on AI. Q2 2026 revenue rose 24% to US$3.27bn, adjusted EPS surged 60% to US$1.52, while FY2026 guidance implies 31% organic growth and US$6.65–6.75 adjusted EPS. (Vertiv Investors⁠)

Hyperscalers increasingly treat power distribution, UPS and liquid cooling as essential infrastructure—not optional equipment. Vertiv’s liquid-cooling leadership and Nvidia relationships give it a strong position as rack densities rise. It competes closely with Schneider Electric and Eaton, while also facing SMCI and specialised cooling players. Vertiv leads in data-centre HVAC and ranks among the leaders in liquid cooling. (Global Market Insights Inc.⁠)

The concern is valuation. Simply Wall St’s April model estimated fair value around US$260, versus US$307, with VRT trading at a substantial premium to industry and peer P/E multiples. (Simply Wall St⁠)

Technically, momentum has weakened: MACD turned negative and RSI approached the high-30s/40s, while price fell below key moving averages after July’s earnings sell-off. (Investing.com India⁠)

Options: short term, favour cash-secured puts below US$250–270 rather than chasing calls. Longer term, covered calls around US$320–350 can monetise volatility while retaining upside. The thesis remains bullish, but valuation demands disciplined entries.

Not financial advice.

$Airbnb(ABNB.US)

Airbnb $Airbnb(ABNB.US) has delivered a quarter that materially strengthens the bull case. The Business Times highlighted robust travel demand and the 2026 World Cup catalyst; Q2 revenue jumped 17% YoY to US$3.61bn, EPS rose 33% to US$1.37, while nights/seats booked increased 10% to 148.3m. Management lifted FY2026 revenue growth to mid-teens and expects adjusted EBITDA margin of at least 35.5%.

Fundamentally, AI-driven conversion and customer-service efficiencies, alongside hotel supply growing nearly 3x faster than home listings, broaden Airbnb’s TAM. Wedbush upgraded to Outperform with a US$200 target, while Benchmark raised its target to US$180.

Valuation remains the caveat: ABNB previously traded around 28–30x forward earnings, above traditional travel peers. After the earnings surge toward US$176, the margin of safety has narrowed.

Technically, the breakout above the US$147.25 base is bullish, but the ~16% one-day surge risks near-term overextension. Entry: wait for a pullback toward US$160–165 rather than chase. Options: cash-secured puts around US$155–160 offer a better risk/reward; bullish investors could consider a US$165/190 call spread to cap premium risk.

View: Bullish fundamentally, tactically cautious.

Not financial advice.

$Sandisk(SNDK.US)

SanDisk: When a Beat Isn’t Good Enough

SanDisk’s FY2026 numbers were exceptional: revenue surged 175% YoY to $20.25bn, while non-GAAP EPS reached $70.88. Q4 revenue of $8.97bn and EPS of $39.25 beat consensus, with gross margin expanding to 84.6%. Datacenter revenue more than doubled sequentially to $2.98bn, validating the AI-storage thesis. (Sandisk Corporation)

So why the ~8% after-hours slump? Expectations, not fundamentals. FY2027 Q1 revenue guidance of $10.3–10.8bn sits below Wall Street’s ~$10.82bn expectation, while 83–85% gross-margin guidance implies little further expansion. After SanDisk’s extraordinary 2026 rerating, investors are demanding increasingly aggressive beats. (Barron’s)

Technically, the setup has weakened materially: price remains below key moving averages, with momentum and MACD bearish, although oversold conditions raise rebound risk. (Raymond James)

Options-writer stance: avoid naked calls. The dislocation favours a bull put spread—selling downside premium while defining risk—or, for existing shareholders, a covered call above resistance. The key trade is exploiting elevated implied volatility without betting against fundamentally strong AI-storage demand.

Not financial advice.

$SpaceX(SPCX.US)

SPCX: Hold, But Don’t Rush to Average Down

SpaceX’s fundamentals remain impressive, but the stock’s fall below its $135 IPO price reflects a genuine valuation and cash-flow problem. Q2 2026 revenue surged 92% YoY to $7.8bn, adjusted EBITDA reached $3.5bn and AI revenue jumped 247% to $2.56bn. Starlink subscribers doubled to 12m, reinforcing the underlying growth story. (Reuters⁠)

The concern is capital intensity: Q2 capex hit $18.4bn, with roughly $15.8bn directed toward AI. Despite positive AI adjusted EBITDA, SpaceX remains deeply free-cash-flow negative. Investors are therefore questioning whether future AI returns can justify today’s spending. (MarketWatch⁠)

Bloomberg highlighted a potentially larger near-term overhang: up to 911.5m shares became eligible for sale on August 6, worth about $116bn at the reported valuation. Importantly, the nine-stage lock-up release does not dilute existing shareholders; it increases potential tradable supply and could pressure prices. (Yahoo Finance⁠)

Technically, momentum has weakened sharply. For option writers, patience is preferable: consider cash-secured puts around $90–100 or defined-risk put spreads, while existing holders could sell covered calls around $125–135.

Verdict: HOLD, but wait for lock-up selling to stabilise before adding.

Not financial advice.

$Netflix(NFLX.US)

Netflix: Fundamentally Strong, Technically Mispriced?

Netflix’s post-Q2 weakness looks increasingly interesting for option writers. Q2 revenue rose 13% YoY to US$12.6bn, while operating margin remained a robust 33.4%. FY26 guidance calls for US$51.0–51.4bn revenue, 31.5% operating margin and ~US$12.5bn FCF, while advertising revenue is expected to roughly double. (Q4 Capital⁠)

Joel Phua’s thesis is compelling: Netflix’s selective live strategy can drive engagement, advertising and subscriber acquisition without the margin-destroying sports-rights commitments seen elsewhere. (FSMOne⁠)

Valuation: At roughly US$74, the stock trades at a materially lower earnings multiple than its historical range, while FY26 earnings and FCF continue to grow. The market appears to be pricing in structurally slower growth.

Technicals: The ~US$71–74 area is an important support zone after the post-earnings selloff. A sustained break below US$70 would weaken the bullish setup; reclaiming US$80–85 would improve momentum.

Option-writer view: Rather than chase the rebound, cash-secured puts around US$65–70 offer an attractive entry strategy: collect premium while being prepared to own a fundamentally stronger Netflix at a valuation that provides a wider margin of safety.

Not financial advice.

$Great Eastern(G07.SG)

Great Eastern (G07): Earnings Surge, But Privatisation Remains the Wild Card

Great Eastern delivered a stellar 2Q26, with profit attributable to shareholders soaring 103% YoY to S$503.2m, lifting 1H26 profit 43% to S$849.5m. The key driver was stronger insurance operating performance, supported by improved underwriting and investment results. Total weighted new sales rose 13% YoY to S$411.3m, while new business embedded value jumped 25% to S$209.9m, signalling stronger franchise economics. (The Business Times)

The board declared a 35-cent interim dividend, payable 28 August. This is encouraging, but investors should not extrapolate the exceptional Q2 profit into recurring quarterly dividends: insurance earnings remain sensitive to market valuations, interest rates, claims and investment returns. (Singapore Business Review)

Technically, G07 has regained strong momentum, with shares recently around S$19.50 and substantially above their 200-day moving average. (Moomoo) Valuation is therefore less compelling after the rally.

The biggest catalyst remains OCBC. However, OCBC previously stated it was not seeking to privatise Great Eastern, making another offer speculative rather than an investment thesis. (POEMS)

Verdict: Fundamentally stronger, technically bullish, but valuation and privatisation uncertainty warrant caution.

Not financial advice.