Trading Giant Shifts Gears Toward a New Growth Model

A leading digital platform is under pressure as investors debate how sustainable its core trading revenues are.

But with new growth drivers in custody, derivatives, and institutional services, the stock could be setting up for its next leg higher.

Here’s our take, plus four more names worth watching.

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Builders FirstSource Inc. | BLDR

Price: $142.01

Builders FirstSource jumped after July housing starts came in stronger than expected, rising nearly 13% year over year.

The prospect of lower rates only adds fuel, as cheaper mortgages could re-ignite homebuilding demand into 2026.

BLDR, the nation’s largest supplier of building materials, is positioned to benefit directly from higher volumes of single-family and multifamily construction.

The stock has already rebounded from summer lows but trades at less than 12 times forward earnings, below peers.

Management continues to return capital through buybacks while investing in technology that improves supply chain visibility for contractors.

Why It Matters:
With housing affordability stretched, any policy tailwind for mortgage rates could have an outsized impact on demand.

BLDR offers cyclical leverage to that recovery, with fundamentals that look solid heading into the fall.

Norwegian Cruise Line Holdings Ltd. | NCLH

Price: $24.66

Cruise operators remain sensitive to macro shifts, and Powell’s speech provided a confidence boost for leisure travel stocks.

Norwegian shares have been volatile, but institutional buying has been steady. Nuveen just disclosed an $18 million stake, joining Vanguard and Invesco in building positions.

Analysts largely rate the stock a “Moderate Buy” with an average target of $27, implying upside from current levels near $25.

Operationally, Norwegian is guiding for 6% revenue growth this year and stronger net yields into 2026.

While debt remains heavy, management has used improved cash flow to reduce leverage. Bookings into next year remain robust, especially for premium itineraries in Europe and Alaska.

Why It Matters:
Cruise demand is discretionary, but falling rates could ease financing costs and support consumer spending.

With institutional support building, NCLH may have more room to run as the macro backdrop turns friendlier.

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Nvidia Corp. | NVDA

Price: $179.85

Nvidia reports earnings on August 27, and it will be the market’s biggest test of whether the AI trade still has legs.

The company has grown into the world’s first $4 trillion market cap thanks to dominance in AI accelerators, with hyperscalers committing trillions in AI capex through the next decade.

Expectations are sky-high: analysts forecast quarterly revenue growth above 120% year over year, with data center demand driving margins above 75%.

Any stumble on guidance could spark volatility, but bulls argue Nvidia’s software moat (CUDA) and full-stack ecosystem give it unmatched staying power.

Why It Matters:
Nvidia’s results don’t just move its own stock, they influence the entire market’s perception of AI.

With rate cuts potentially providing another layer of support, NVDA could extend its leadership into the fall if it delivers another blockbuster print.

Delta Air Lines Inc. | DAL

Price: $60.42

Delta continues to innovate, rolling out a revamped digital platform for corporate travel management.

The redesign adds smarter search, centralized wallets for loyalty programs, and streamlined navigation, all aimed at improving efficiency for business clients.

The update comes as corporate travel demand has been recovering steadily, aided by resilient U.S. economic activity.

Shares trade at under 9 times forward earnings, with a dividend yield above 1%.

Balance sheet repair has been ongoing since the pandemic, and free cash flow is expected to exceed $4 billion this year.

With Powell signaling easier monetary policy, airline demand could see an additional tailwind as corporate budgets loosen.

Why It Matters:
Delta has consistently executed better than peers, maintaining high margins and service levels.

Its new business platform should cement relationships with corporate clients, while macro easing could extend the airline’s earnings recovery.

Coinbase Global Inc. | COIN

Price: $305.95

Crypto markets surged over the weekend after Coinbase CEO Brian Armstrong predicted Bitcoin could reach $1 million by 2030.

While bold, his call lines up with improving conditions: stronger U.S. regulation, rising institutional interest, and the potential for a Fed rate cut next month.

Lower borrowing costs historically lift risk assets like Bitcoin and Ethereum, and Coinbase stands to capture that momentum through higher trading volume and custody services.

Armstrong highlighted progress on stablecoin legislation and ETF adoption as key catalysts.

Meanwhile, Coinbase has diversified its revenue mix with staking, derivatives, and subscription products, reducing reliance on pure spot trading.

Shares are up more than 20% year to date but still well below 2021 highs, offering scope for further recovery if crypto demand accelerates.

Why It Matters:
Coinbase has become the proxy for mainstream crypto exposure in U.S. equities.

If Powell’s path to easing materializes, it could supercharge both digital assets and the platform’s revenue, giving COIN asymmetric upside into 2026.

Powell’s higher fed funds rate may not last much longer. Markets are already pricing in a September cut, which could breathe new life into cyclical and growth stocks alike.

From crypto platforms to housing plays, airlines, and AI leaders, investors are finding that a softer policy stance creates multiple ways to play the next leg higher.

Stat of the Day

4.3% — The current Fed funds rate, which Jerome Powell signaled could soon be cut if labor markets weaken further.