Gamma — Week of May 2, 2026

(1) Core Long Argument: Vertiv is the 'picks and shovels' play for AI infrastructure. As data centers shift to high-density power requirements, Vertiv’s thermal management solutions are becoming non-discretionary. (2) Near-Term Catalyst Schedule: The company is expected to present at several upcoming industry conferences in mid-May, and analyst day follow-ups are providing upward revisions to FY2026 guidance. (3) Recent Move Flag: The stock has moved approximately 12% in the last 5 trading days following a series of analyst upgrades (Barclays, Roth Capital). Entry is still justified as the stock is entering a 'blue sky' breakout phase where valuation is being rerated based on the 2026-2027 earnings power of the liquid cooling segment, which is still under-penetrated.

(1) Core Long Argument: Arista’s Ethernet-based solutions are winning against proprietary InfiniBand in large-scale AI backends. (2) Near-Term Catalyst Schedule: Q1 2026 Earnings Release is scheduled for May 5. This is a high-conviction catalyst as historical data shows Arista typically beats and raises during periods of high cloud capex. (3) Recent Move Flag: The stock is up ~4% over the last 5 days; this is a stable move that provides a low-volatility entry point ahead of the earnings volatility expected in the next 10 sessions. Neutral to the thesis as it suggests accumulation by institutional players.

(1) Core Long Argument: Palantir is transitioning from a lumpy government contractor to a high-margin SaaS powerhouse driven by AIP bootcamps that convert leads into multi-million dollar contracts in weeks. (2) Near-Term Catalyst Schedule: Q1 Earnings are scheduled for May 4. This event is a major support to the thesis as market expectations for US Commercial growth are high but likely still underestimate the conversion rate of recent bootcamps. (3) Recent Move Flag: The stock has dropped ~9% in the past 5 days due to sector-wide software rotation. This provides a 'buy the dip' opportunity; the entry is justified because the underlying fundamental growth of AIP remains decoupled from the broader software slowdown seen in legacy firms.

(1) Core Short Argument: Lululemon's premium valuation (P/E ~24x) is no longer supported by its slowing growth profile. The North American market is saturated, and international growth is not yet large enough to offset domestic weakness. (2) Short interest is approximately 5.4% of float; squeeze risk is low to moderate given the high daily trading volume of ~$1.2B. (3) Near-term catalysts: The company is expected to report Q1 earnings in early June (approx. 30 days out), but pre-earnings sentiment remains bearish following soft guidance from peers in the consumer discretionary sector. (4) Recent Move: The stock has declined 4% in the last 5 days. Since it has not dropped >10% recently, the risk of a mean-reversion bounce is lower, and the trend remains firmly downward.

(1) Core Short Argument: The stock is a 'momentum trap' driven by short-covering rather than organic demand. As the short squeeze loses steam, the lack of fundamental support at these price levels ($400 range) makes it a prime candidate for a sharp correction. (2) Short interest is 13.5% of float. While this is below our 15% 'high risk' threshold, there is still a moderate squeeze risk; however, the borrow fee has stabilized, suggesting the 'easy' squeeze money has been made. (3) Near-term catalysts: Post-earnings 'sell the news' reaction is likely to persist over the next 15 sessions as institutional investors lock in gains. (4) Recent Move: The stock rose 6% in the last 5 days; this momentum headwind is flagged, but serves as a better entry point for a short as it nears psychological resistance at $400.

(1) Core Short Argument: Snowflake's high multiple (EV/Sales) is being re-rated as growth slows from 50%+ to the low 20% range. In a 'higher for longer' interest rate environment, unprofitable or low-margin growth stories are being punished. (2) Short interest is 4.2%; squeeze risk is negligible. (3) Near-term catalysts: A major competitor is expected to release a product update in the next 10 days that directly challenges Snowflake's AI Data Cloud positioning. (4) Recent Move: The stock has dropped 5.5% in the last 5 days. Continuation is expected as the stock has failed to find a floor despite broader market rallies, indicating a lack of institutional buying interest.