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Happy Tuesday 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 Rose on Tuesday. The market moved higher, approaching record levels seen last month, driven by better-than-expected US inflation data.

• 📈 | One Notable Gainer: Starbucks’ stock surged 25% after announcing that the coffee chain will replace CEO Laxman Narasimhan with Chipotle CEO Brian Niccol.

• 📉 | One Notable Decliner: On the flip side of things… Chipotle’s stock tumbled 8% due to its CEO, Brian Niccol, leaving for Starbucks. Niccol was credited with Chipotle’s traffic and sales growing during a period where other restaurants have struggled.

• 👟 | Tomorrow's Trade: Traveling on a Shoestring. Scroll down for more.

Plus, did you know you can now LISTEN to this newsletter? That’s right — just click the “Listen Online” link at the top and you can listen to this letter on the go. Give it a shot!

MARKET MOVERS

Zeeker, Chipotle, & Nvidia

ZK (+7%) Chinese automaker Zeeker unveiled a new EV battery that can charge in just over 10 minutes, a giant leap forward (Bloomberg)

BAX (-7%) Shares of Baxter International tumbled on news that Carlyle will acquire its kidney-care unit Vantive for $3.8 billion (Reuters)

SMCI (+5%) Super Micro continued to recover from its losses recorded last week after releasing disappointing fiscal Q4 earnings (Investopedia)

NVDA (+7%) Analysts at Goldman Sachs and BofA say Nvidia is set to make a comeback ahead of the company’s Q2 earnings report set for Aug. 28 (QZ)

ONON (+4%) Sports product company On Holding reported revenue growth of 29%, ending a string of six quarters of decelerating growth (Investors.com)

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OVERHEARD ON THE STREET

Reuters: India's antitrust body has taken the unusual step of recalling two reports that detailed alleged breaches of competition law by Apple.

CNBC: Digital health company Ro launched a GLP-1 insurance-coverage checker to help patients navigate costs.

Reuters: DoorDash has partnered with Warner Bros Discovery to provide the streaming service at no extra cost to its membership program subscribers.

CNN: Blink Fitness filed for bankruptcy and said it may close an unspecified number of its 101 clubs.

Bloomberg: General Motors has been laying off staff in China and will meet with local partner SAIC to plan a larger structural overhaul of its operations there.

TOMORROW’S TRADE IDEA, TODAY

Traveling on a Shoestring

Time to Buy the Dip?

Airbnb (ABNB) has recently seen slowing growth, and investors are losing confidence in the stock. Its share price dropped over 10% following its underwhelming Q3 guidance last week. The majority of analysts covering it now hold either a sell or neutral rating.

However, some analysts are starting to believe that the stock is attractive at this cheap entry point. After all, Airbnb does dominate its corner of the rental market. This was evidenced recently at the Olympics, where it provided housing for some 400,000 travelers.

Growth Opportunities

CEO Brian Chesky says that he’s aware the company hasn’t made much effort to venture outside the short-term rental business, but he’s planning on changing that.

According to Bernstein analyst Richard Clarke, Airbnb could see growth from expansion into experiences like tours and cooking classes. Other growth possibilities include sponsored listings, a loyalty program, and a property management business.

Almost all of the rental company’s business takes place in the US, France, Britain, Australia, and Canada, so there’s also plenty of room for global expansion.

Solid Fundamentals

Shares are currently trading at their cheapest valuation since the company went public. At present, they trade at 26 times projected 2024 earnings and 23 times expected 2025 profits.

Airbnb doesn’t have much overhead and can generate significant free cash flow and margins. To return value to shareholders instead of paying a dividend, the company has upped its stock repurchase program to $1.5 billion this year.

Despite recent setbacks, Airbnb holds its place as a travel industry innovator. It has strong fundamentals and a willingness to adapt, which could make now a great time to buy low.

Your IRA, made to order

Choose where and when you want to retire, and a Betterment IRA can help make your money hustle all the way there.

Learn more

ON OUR RADAR

CNBC: The producer price index increased 0.1% on the month, less than the 0.2% forecast. PPI excluding food and energy was flat.

Fortune: 20% of US citizens are canceling their summer vacations due to inflation, and nearly 50% are making other budget cuts to make ends meet.

Forbes: Ford and Mazda warned the owners of more than 457,000 older cars to stop driving them because of recalled airbag inflators that could explode.

Fox Business: The U.S. has surpassed China on the Fortune Global 500 list for the first time since 2018.

YF: Leading flooring chain LL Flooring declared bankruptcy and will close 11 California locations.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Cirrus Logic (CRUS) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish 🐂 

🟨⬜️⬜️⬜️⬜️⬜️ Bearish 🐻