Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US stocks ticked lower today as investors digested President Trump’s new auto tariffs.

• 📈 | One Notable Gainer: Dollar Tree $DLTR ( ▼ 5.46% ) piled on yesterday’s gains after offloading the floundering Family Dollar brand for $1B.

• 📉 | One Notable Decliner: General Motors $GM ( ▼ 1.1% ) careened off the road as investors took out their tariff fears on the automaker, which assembles some 30% of its vehicles in Canada and Mexico.

MARKET MOVERS

Petco, GameStop, Alibaba

$WOOF ( ▼ 7.79% ) Petco Stock Soars as Retailer Forecasts Rising Adjusted Profits (Investopedia)

$GME ( ▼ 1.63% ) GameStop shares drop 23% after the retailer issues debt to buy bitcoin (CNBC)

$BABA ( ▼ 2.36% ) Alibaba Debuts AI Model That Can Process Video, Audio on Phones (Bloomberg)

$JEF ( ▼ 3.92% ) Jefferies profit misses estimates as bond trading, equity underwriting weaken (Reuters)

$CNXC ( ▼ 12.44% ) Concentrix shares surge on upbeat guidance, bottom-line beat in Q1 (Investing.com)

OVERHEARD ON THE STREET

Reuters: Trump announced a new 25% tariff on auto imports, triggering global price hikes and job loss concerns in major auto-exporting countries.

CNBC: NVIDIA $NVDA ( ▼ 1.58% ) will back CoreWeave’s IPO, but the cloud computing firm is now planning to price shares below the expected range.

Bloomberg: Ubisoft $UBSFY ( ▼ 14.2% ) will create a new subsidiary for top games like Assassin's Creed, with Tencent $TCEHY ( ▼ 2.17% ) taking a 25% stake.

AP: US unemployment benefit applications remained steady at 224,000, indicating a relatively healthy labor market.

Fortune: Elon Musk warned that Trump tariffs will significantly impact Tesla $TSLA ( ▼ 3.51% ) . Up to 25% of its vehicles’ value comes from Mexican components.

TOMORROW’S TRADE IDEA, TODAY

This Fire Retardant Stock Is On Fire

Preventative Measures

Wildfires are becoming a bigger and bigger issue, highlighted recently by the disastrous fires in Los Angeles a few months ago. Perimeter Solutions $PRM ( ▼ 3.01% ) , a fire retardant manufacturer, could benefit from the unfortunate trend.

UBS $UBS ( ▼ 1.1% ) analyst Joshua Spector bumped the stock up from Neutral to Buy with a $14 price target. The upgrade sent the stock soaring yesterday, but the new target still implies around 32% 12-month upside from current prices.

Tailwinds on Two Fronts

Increased wildfires in residential areas, such as LA, will push Americans to take measures to protect their property, according to Spector. The analyst said the disasters will increase efforts to “fight, contain and prevent wildfires.”

While the actual number of acres affected by wildfires hasn’t changed much, the demand for Perimeter’s core product — a fire retardant dropped from planes — is expected to rise as investment in them has increased.

Additionally, the planes reload retardant at special bases. Those also happen to be owned by Perimeter.

Despite the surge, the stock is still down more than 17% YTD. Spector believes that, even with the recent uptick, the stock is still trading at an attractive valuation.

Growth Either Way

It seems like a new extreme weather event is grabbing headlines every week. If fires continue to become more commonplace, experts expect more demand for fire-fighting tools like Perimeter’s.

But even if they don’t, and total acres burned remains unchanged, UBS expects the company to see low single-digit volume growth. In the public markets, after all, perception is reality.

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ON OUR RADAR

Reuters: US corporate profits surged in the fourth quarter, with GDP growth revised to 2.4%.

CNN: Despite Trump's prediction, automakers are not rushing to move production to US factories to avoid tariffs.

Forbes: Crypto billionaire Justin Sun helped the Trumps make $400M by bailing out their crypto venture.

CNBC: Trump withdrew Rep. Elise Stefanik's (R-NY) nomination for UN ambassador, citing the Republicans' slim majority in the House.

The Verge: OpenAI is limiting ChatGPT image generation requests after the viral product led to “melting” GPUs, per CEO Sam Altman.

WEDNESDAY’S POLL RESULTS

Are you bullish or bearish on Cloudflare (NET) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜⬜⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “A good NVIDIA alternative.”

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