Wall Street Lunch: Quantinuum Soars 12% On Nasdaq Debut Following $1.7B IPO
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Wall Street Breakfast5.74M FollowersSubscribe5ShareSaveCommentsSummaryQuantinuum (QNT) surged 12% on Nasdaq debut, raising $1.7B at a $15B valuation amid strong quantum computing sector demand.CRWD fell post-earnings despite a raised revenue outlook and announced a four-for-one stock split effective July 2.PVH slumped after cutting revenue guidance, citing Middle East conflict impacts; SNBR plunged on reports of potential Chapter 11 restructuring.Deutsche Bank highlighted media, REIT, hotel, and restaurant stocks poised to benefit from the upcoming World Cup and related consumer trends. fadfebrian/iStock via Getty Images Listen below or on the go on Apple Podcasts and Spotify Quantinuum ushers in the commercial quantum era. (0:16) CrowdStrike falls despite raising guidance and stock split. (0:56) Job cuts rise as companies restructure for AI. (1:44) This is an abridged transcript of the podcast: Our top story so far, Quantinuum (QNT) debuted on the Nasdaq at $68 a share, up 12% from its IPO price. The quantum computing company, which is majority owned by Honeywell (HON), sold 28M shares at $60 each. Quantinuum had originally planned to offer 21M shares at $45 to $50 a share, but strong demand led the company to raise both the size and price of the offering. The IPO raised nearly $1.7B and valued the company at more than $15B.J.P. Morgan (JPM) and Morgan Stanley (MS) served as lead underwriters. An early investor in Quantinuum said the growing number of IPOs, SPACs and funding rounds in the sector signals that quantum computing is moving from the lab toward commercial applications. Among active stocks, CrowdStrike (CRWD) is lower post-earnings in another good-but-not-good-enough reaction. Shares had rallied about 60% in the month leading up to results. The company raised its full-year revenue outlook to $5.91B to $5.96B and approved a four-for-one stock split, effective July 2. PVH (PVH) is plunging after cutting its revenue outlook, citing the conflict in the Middle East and its impact on the region's economy. The parent company of Calvin Klein and Tommy Hilfiger now expects sales to be flat year over year, versus prior guidance for a slight increase.
And Sleep Number (SNBR) has lost more than half its value after a report that it is preparing for a potential Chapter 11 filing.
The Wall Street Journal reported that the company could use the restructuring process to reorganize operations while keeping the business intact, and may also explore a sale. Looking to the economy, U.S. employers announced 97,006 job cuts in May, up 3% from a year ago, according to Challenger, Gray & Christmas. That's the third-straight month layoffs have increased and the highest May total since 2020. "On top of the headline AI story, we're seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses," said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas. He said the trend suggests companies are restructuring aggressively as they reposition for an AI-driven economy. In other news of note, bot traffic has overtaken human activity in a closely watched segment of the internet, highlighting how quickly AI agents and other automated systems are reshaping the web. Cloudflare (NET) data shared by CEO Matthew Prince showed bots accounted for 57.5% of worldwide HTTP requests for HTML content over the past week, versus 42.5% for humans. Prince said he expected that milestone to be reached in 2027, but rapid growth in agentic AI traffic accelerated the timeline. While narrower than overall internet traffic, HTML requests are closely tied to traditional web browsing and content consumption. And in the Wall Street Research Corner, Deutsche Bank highlighted stocks it believes could benefit from next year's World Cup. In media, analysts see potential upside for Fox (FOX) and Comcast (CMCSA), while advertising spending on YouTube (GOOG) (GOOGL) is expected to get a boost from a highlights deal. Among REITs, Deutsche Bank highlighted DiamondRock Hospitality (DRH), Sunstone Hotel Investors (SHO), Host Hotels & Resorts (HST), Park Hotels & Resorts (PK) and Ryman Hospitality Properties (RHP). Hotel operators Hyatt (H), Hilton (HLT) and Marriott (MAR) also received a nod. And in restaurants, the firm sees upside for brands with exposure to host cities, sports viewing and delivery demand, including Shake Shack (SHAK), Sweetgreen (SG), Wingstop (WING), Domino's (DPZ), Chipotle (CMG), Starbucks (SBUX) and McDonald's (MCD).Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.This article was written byWall Street Breakfast5.74M FollowersSubscribeWall Street Breakfast, Seeking Alpha's flagship daily business newsletter, is a one-page summary that gives you a rapid overview of the day's key financial news. It is designed for easy readability on the site or by email (including mobile devices) and is published before 7:30 AM ET every market day.
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