Benzinga Bulls and Bears: Generac, Salesforce, Netflix

U.S. stocks finished a volatile week with mixed results as investors adjusted to the Federal Reserve’s first interest-rate hike since 2023 and rising energy costs. The S&P 500 slipped for a second straight week, while the Dow Jones Industrial Average recorded its sharpest weekly decline since March. The Nasdaq Composite managed a weekly gain, helped by a late-week technology rally, but markets remained under pressure as the 10-year Treasury yield approached 5% and oil prices remained elevated amid tensions in the Middle East.

The Fed raised its benchmark rate by 25 basis points on Wednesday to a range of 3.75%-4%, with the decision passing unanimously. The move followed a week of rising Treasury yields and crude prices, which had already pressured stocks and increased concerns about inflation. Brent crude climbed above $100 a barrel and briefly approached $110, while higher fuel costs pushed gasoline and diesel prices to records.

Attention now turns to how far the Fed may raise rates as inflation remains elevated. Sixteen of the 18 Fed policymakers who submitted forecasts projected at least one additional rate increase this year. With the 10-year Treasury yield near 5% and oil prices still above $100, investors are weighing the impact of tighter monetary policy and higher energy costs on economic growth, corporate earnings and technology valuations.

The Bulls

Generac Stock Soars on $8 Billion Amazon Data Center Deal, by Adam Eckert, reports that Generac Holdings Inc. (NYSE:GNRC) shares surged after the company announced a long-term supply agreement with Amazon.com Inc. (NASDAQ:AMZN) to provide backup generators for Amazon’s data centers. The agreement covers up to $8 billion in generator purchases, with initial deliveries expected to total $2.4 billion in 2027 and 2028, giving Generac visibility into demand tied to Amazon’s expanding data-center infrastructure. As part of the transaction, Generac issued an Amazon subsidiary a warrant to purchase up to approximately 1.69 million Generac shares at $200.93 per share.

Salesforce’s Anthropic Bet Likely Worth ‘Tens of Billions’ — And Benioff Plans to Cash In, by Erica Kollmann, reports that Salesforce Inc. (NYSE:CRM) CEO Marc Benioff said the company could eventually sell its stake in Anthropic, potentially turning an investment worth hundreds of millions of dollars into proceeds worth "tens of billions." Salesforce Ventures first invested in the AI company in 2023, and Anthropic’s valuation has since climbed sharply, reaching $965 billion after a $65 billion Series H financing in May. The investment generated a $2.6 billion gain for Salesforce in its latest quarter and contributed significantly to its reported profit. Benioff said Salesforce would likely use proceeds from a future sale to repay debt taken on to fund its $25 billion accelerated share repurchase, which retired about 103 million shares.

SpaceX Adds $100B in One Day — That’s More Than Two Rocket Labs, by Erica Kollmann, reports that SpaceX (NASDAQ:SPCX) gained about $100 billion in market value Wednesday, lifting its market capitalization to roughly $2 trillion after shares closed at $150.88, up 5.15%. The move was driven in part by expectations surrounding Starship Flight 14, targeted for Sept. 22 and expected to be the vehicle’s first fully orbital attempt and its first mission designed to deploy third-generation Starlink satellites. A successful launch would provide a test of the economics behind SpaceX’s valuation, while the company is also benefiting from continued index-related buying after joining the Nasdaq-100 in July; J.P. Morgan estimated the inclusion could generate about $4.3 billion in passive fund flows.

For additional bullish calls of the past week, check out the following:

Moderna Stock More Than Doubled in a Month. Now Comes the Hard Part.

Robinhood’s 24/7 Stock Dream Just Got A Boost From The SEC

Tesla Gets Love From Ron Baron for Not Hitting Ducks: ‘Time to Buy The Stock is Now’

The Bears

Netflix Viewer Trends ‘Look Worrying’: Wells Fargo Slashes Target on Stock, by Erica Kollmann, reports that Netflix Inc. (NASDAQ:NFLX) shares fell after Wells Fargo downgraded the streaming company to Underweight from Equal Weight and cut its price target to $57 from $80, citing weakening viewer engagement and concerns about Netflix’s content slate. Analyst Steven Cahall said engagement trends were "worrying," arguing that Netflix needs more breakout original hits as it expands into gaming, live sports, reality programming, documentaries and video podcasts. Netflix reported that viewing hours rose just 2% in the first half of 2026, while the company plans to increase content spending by 10% for the full year. Cahall expects viewership for Netflix’s top 100 originals to decline 21% year over year in the second half, with potential churn pressure building into 2027.

Sysco Stock Slides on $1 Billion Offering, by Adam Eckert, reports that Sysco Corp. (NYSE:SYY) shares fell after the foodservice distributor announced a $1 billion common stock offering to help finance its pending acquisition of Jetro Restaurant Depot. Sysco plans to sell 12.35 million shares at $81 each and has granted underwriters a 30-day option to purchase up to another $150 million of stock. The offering price represented a discount to Sysco’s $83.54 closing price on Sept. 14 and will increase the company’s outstanding share count. Sysco agreed in March to acquire Jetro Restaurant Depot in a transaction valued at about $29.1 billion, with Jetro shareholders receiving $21.6 billion in cash and 91.5 million Sysco shares.

Red Cat, Ondas Miss the Cut in Pentagon’s Latest Drone Dominance Round, by Erica Kollmann, reports that Red Cat Holdings Inc. (NASDAQ:RCAT) and Ondas Inc. (NASDAQ:ONDS) were left out of the top five in their respective mission areas in the Pentagon’s latest Gauntlet II drone competition. Ten finalists were selected after August testing at Fort Carson, Colorado, with five each in Deep Strike and Close Quarters Battle. Perennial Autonomy led Deep Strike with 80.1 points, while Neros topped Close Quarters Battle with 88.1 points; all 10 finalists are privately held. Both companies remain eligible for future Gauntlet competitions. The results also drew attention to Unusual Machines Inc. (AMEX:UMAC), which supplies drone components, while larger defense companies including Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) and AeroVironment Inc. (NASDAQ:AVAV) remain exposed to the broader expansion in military drone spending.

For more bearish takes, be sure to see these posts:

Big Bank Stocks Tumble After Moynihan’s Grim Outlook

Lennar Posts Q3 Double Miss, Shares Slip

Salesforce’s AI Business Is Booming, Why Isn’t CRM Stock?

Image created using artificial intelligence via Midjourney.