Key Takeaways

• Massachusetts Senator Elizabeth Warren has formally requested the SEC postpone SpaceX’s planned June 12 public offering.
• The company aims to achieve a valuation as high as $2 trillion while securing $75 billion in capital.
• Key issues raised include Elon Musk’s concentrated voting power, dual-class stock structure, and limited shareholder protections.
• Despite political opposition, investor interest has exceeded $250 billion — surpassing the target by more than three times.
• Financial regulators are expected to proceed unless significant legal or disclosure problems emerge.

SpaceX stands on the verge of executing one of Wall Street’s most anticipated public offerings. However, a prominent lawmaker is calling for federal oversight before the launch proceeds.

Senator Elizabeth Warren of Massachusetts delivered a formal request to SEC Chairman Paul Atkins on June 10, pushing for a postponement of the SpaceX initial public offering. The aerospace company plans to price its shares Thursday evening, with public trading commencing Friday, June 12.

If successful, the offering would establish SpaceX’s market capitalization near $2 trillion while generating approximately $75 billion from new shareholders.

The Democratic senator expressed alarm that the transaction creates disproportionate risk for retail investors and pension funds, while predominantly benefiting company executives and early backers.

Corporate Structure Under the Microscope

Warren’s correspondence focuses heavily on SpaceX’s internal governance framework.

Her letter highlights Musk’s outsized voting authority, the implementation of multi-tiered share classes, forced arbitration requirements, and restrictions on stockholder proposals. These mechanisms, Warren contends, would severely constrain the influence of public market participants once shares begin trading.

The senator also challenged the company’s price tag. Her statement referenced market analysts who characterized the $2 trillion figure as “completely disconnected from reality” and “financial engineering,” particularly when measured against SpaceX’s approximately $19 billion in yearly sales.

Warren emphasized that the SEC “has an obligation to examine whether index fund managers and financial institutions participating in this offering are fulfilling their fiduciary duties to investors.”

Given SpaceX’s role as a significant Defense Department supplier, Warren additionally voiced apprehension about possible foreign capital entering the company following its market debut.

Market Enthusiasm Remains Robust

Regardless of congressional opposition, institutional interest in the offering has proven exceptional.

According to a June 9 Reuters report, SpaceX has secured commitments exceeding $250 billion from prospective investors — representing between 3.5 and 4 times the intended capital raise.

The Securities and Exchange Commission has completed its examination of SpaceX’s registration materials. Market participants are fully informed about Musk’s operational control, and the filing documents enumerate extensive risk disclosures.

Securities law specialists indicate that regulatory intervention would require evidence of material omissions, fraudulent accounting practices, or statutory breaches. An aggressive price target by itself doesn’t provide sufficient grounds for federal action.

Warren has set a June 23 deadline for the SEC’s response, requesting information about valuation methodology, corporate governance standards, protections for passive investment vehicles, arbitration policies, and allegations regarding premature information disclosure.

This represents another chapter in the ongoing tension between Warren and Musk. The pair have previously clashed over executive compensation, social media platform acquisitions, and government efficiency initiatives.

Investment commitments are scheduled to finalize Wednesday. The public offering currently remains on its original timeline.

TLDR

• Jim Cramer advised a Mad Money viewer to “buy some here” on Costco shares near $968, though he’d prefer seeing a modest pullback for better value
• Motley Fool Asset Management expanded its Costco holdings by 20.8% during Q4, purchasing 10,429 additional shares to total 60,650
• Several institutional funds expanded their Costco positions throughout Q4 and Q2, with institutions controlling 68.48% of outstanding shares
• The warehouse retailer’s most recent quarter delivered $70.53B in revenue, surpassing forecasts, though earnings per share fell short by $0.01 at $4.93
• Wall Street analysts assign an average “Moderate Buy” recommendation with a consensus price objective of $1,060.41, significantly higher than present trading levels

Costco (COST) shares began Wednesday’s session at $968.59, declining 0.6% intraday and remaining notably beneath the 52-week peak of $1,096.50.

Costco Wholesale Corporation, COST

During a recent Mad Money segment on CNBC, Jim Cramer responded to a viewer inquiry regarding the optimal timing for establishing a long-term stake. His advice was direct: purchase some shares now, while remaining hopeful for additional downside.

“I want value just like I want value at a store,” Cramer explained. He suggested the downside scenario involves the stock rallying directly to $1,025 with shareholders participating in the gains.

Cramer observed the shares currently command a 47x earnings multiple and recommended strategic patience, allowing the price to “come in a little” instead of deploying capital at a single level.

Institutional Accumulation Continues

As individual investors contemplate timing, institutional capital has been flowing into the stock. Motley Fool Asset Management expanded its stake by 20.8% throughout Q4, acquiring 10,429 shares to reach a total holding of 60,650, valued at approximately $52.3 million.

The asset manager wasn’t the only buyer. Brighton Jones increased its allocation by 12.3% during Q4. Revolve Wealth Partners grew its position by 13.1%. Additional funds elevated their holdings during Q2 as well. Collectively, institutional ownership now represents 68.48% of the company.

The stock’s 50-day moving average currently rests at $1,006.30, while the 200-day moving average stands at $965.46 — indicating shares are trading near their long-term technical support.

Quarterly Results and Dividend Increase

Costco disclosed quarterly results on May 28th. Revenue reached $70.53 billion, exceeding analyst projections of $70.12 billion. However, earnings per share of $4.93 fell one penny short of the $4.94 Wall Street consensus.

The retailer simultaneously announced a dividend increase from $1.30 to $1.47 per share quarterly, distributed on May 15th. The annualized dividend now totals $5.88, representing approximately a 0.6% yield.

E-commerce revenue surged more than 21% during the period, while gasoline volume reached all-time highs. Despite these operational highlights, shares declined roughly 5% following the announcement — suggesting the market prioritized valuation concerns over fundamental performance.

Costco also discreetly reduced prices across four Kirkland Signature items spanning food, household products, and sporting goods categories.

Wall Street sentiment remains predominantly bullish. Deutsche Bank elevated its price objective to $1,106 with a Buy recommendation. BTIG Research maintains a $1,125 target. Both Evercore and HC Wainwright continue advocating Buy ratings.

The consensus analyst price target reaches $1,060.41, supported by 22 Buy ratings, 11 Hold ratings, and a single Sell rating.

The stock trades at a PE ratio of 48.72, commanding a market capitalization of $429.55 billion. Analysts forecast full-year earnings per share of $20.38.

Key Highlights

• UBS analysts elevated CAVA’s rating from Neutral to Buy with a new price target of $90, up from $85
• Shares gained more than 7% during trading despite broader market weakness
• Company unveiled “Flavor Your Future” workforce campaign, planning to recruit 2,500+ employees for 75+ new locations in 2026
• First quarter 2026 revenue climbed 32.2% compared to the prior year; comparable restaurant sales increased 9.7%
• Chief Legal Officer Joseph Kadow purchased $70,000 in company shares on the open market

Shares of CAVA Group (CAVA) rallied more than 7% during Tuesday’s session following an analyst upgrade from UBS, which moved the Mediterranean fast-casual restaurant chain to a Buy rating from Neutral while lifting its price objective to $90 from the previous $85.

CAVA Group, Inc., CAVA

The positive movement stands in sharp contrast to broader market conditions. Pre-market indicators showed the S&P 500 declining 0.3%, the Nasdaq tumbling nearly 1%, and the Dow achieving only marginal gains. CAVA’s impressive rally was clearly company-specific rather than market-driven.

According to UBS, the primary catalyst for the upgrade centers on CAVA’s sustained outperformance in comparable store sales relative to industry competitors. The investment firm recognizes a brand generating genuine customer traffic increases during a period when numerous restaurant operators face headwinds from cautious consumer spending patterns.

The timing of this upgrade reflects accumulated positive momentum. CAVA has delivered a series of encouraging operational results in recent weeks.

During the first quarter of 2026, total revenue expanded 32.2% on a year-over-year basis. Comparable store sales registered a 9.7% increase, with guest traffic contributing 6.8 percentage points to that gain — demonstrating growth beyond simple menu price adjustments. Management subsequently elevated its full-year projections across virtually all key performance indicators.

Traffic-driven expansion of this magnitude represents precisely what the investment community seeks in the current environment.

Aggressive Growth Trajectory

The Mediterranean chain recently rolled out its “Flavor Your Future” employment initiative, setting ambitious targets of recruiting over 2,500 team members to support the opening of more than 75 restaurants throughout 2026. Company executives indicate they’re already making solid progress toward achieving these objectives.

This aggressive expansion schedule demonstrates management’s confidence in the underlying profitability and sustainability of individual restaurant locations. Increasing store count, rising customer visits, and upgraded financial guidance create a compelling growth narrative.

Supporting the positive sentiment, Chief Legal Officer Joseph John Kadow executed an open-market transaction acquiring $70,000 in CAVA stock. Insider purchases of this magnitude typically attract investor attention, and this transaction strengthened the increasingly bullish perspective surrounding the company.

Trading Below Peak Levels

Despite Tuesday’s significant gain, CAVA shares remain considerably below their recent peak valuations, which partially explains why the UBS upgrade resonates with investors. The firm’s analysis suggests meaningful appreciation potential from present price levels, with the $90 target embodying this optimistic outlook.

For the year-to-date period, CAVA stock has advanced nearly 30%, accompanied by average daily trading activity of approximately 3 million shares. The company’s market capitalization currently stands at roughly $8.88 billion.

Technical indicators for the stock show a Hold signal, suggesting the UBS fundamental upgrade contrasts with a more neutral short-term technical setup. Today’s price action indicates investors are prioritizing fundamental metrics over technical patterns.

With CAVA’s valuation at $8.88 billion, the UBS price objective of $90 implies additional upside opportunity from current trading ranges.

The crypto market remains under pressure ahead of the pivotal U.S. inflation data, which is expected to show the cost of living rose to a three-year high of over 4% in May.

Tokens such as privacy-focused zcash (ZEC) and decentralized exchange Hyperliquid’s HYPE have each dropped over 10% in 24 hours, a signal of risk aversion in the broader market. ADA, ONDO, BCH are other losers, dropping more than 4%. The CoinDesk 20 Index fell 3% in the period.

Bitcoin BTC$60,930.61 has retraced to under $61,500, nearly reversing the Sunday bounce that saw prices rise above $64,000 on some exchanges. More importantly, the cryptocurrency is trading below its 200-week simple moving average (SMA), a technical line widely watched by traders.

“The history of the 200-week moving average over the last 11 years (prior to this, the market had not dipped below it) shows that the average time spent near it is almost 11 months, suggesting a very long bear market,” Alex Kuptsikevich, chief market analyst at the FxPro, said in an email.

Derivatives positioning

• Crypto futures volume over the past 24 hours rose 1.2% to $193 billion while open interest fell 1.5% to $102.27 billion. Liquidations, in contrast, jumped 38% to $418 million, with longs accounting for more than $300 million of the total as bitcoin slid back toward $61,000 yesterday.
• Bitcoin futures open interest (OI) nudged higher to 728,000 BTC from 712,000 BTC even as the cryptocurrency’s price fell. Rising OI into a price decline points to fresh short positioning, a sign traders are positioning for a further drop.
• That conclusion is reinforced by negative perpetual funding rates and a negative OI-adjusted 24-hour cumulative volume delta, the latter indicating that sellers are hitting bids at market rather than placing passive limit orders.
• Solana futures OI rose to 69.58 million tokens, up nearly 2% on the day, closing in on the record June 5 peak of 71.57 million. Funding rates and CVD are negative, mirroring bitcoin’s bearish setup .
• The bearish tilt extends across the board. Funding rates and CVD are negative for most major coins, including ether (ETH) and XRP. The lone exception is XMR, whose 24-hour CVD is narrowly positive.
• Bitcoin’s 30-day implied volatility index is 51.21%, up from 45.8% on Monday, reflecting renewed uncertainty ahead of the U.S. CPI release later today. ETH’s implied volatility index has also ticked higher.
• On Deribit, short-term puts on both BTC and ETH continue to command a notable premium over calls, a sign that downside hedging demand remains elevated. One-week implied volatility is trading cheap relative to one-week realized volatility, a setup that favors options buyers.
• In block flows, a long butterfly was structured in the July 31 expiry, involving long positions in calls at the $70,000 and $80,000 strike prices and short 2x in the $75,000 call. The trade profits if BTC consolidates around $75,000 through the end of July, implying the desk behind the position sees limited directional conviction from here.

Token talk

• Uniswap V4’s total value locked (TVL), the deposits sitting inside a protocol, appeared to explode more than 350% in a day, with DefiLlama showing roughly $2 billion of apparent inflows concentrated on BNB Chain. The jump was large enough to look like a major liquidity migration into the exchange.
• That wasn’t the case, however. The figure was not a wave of capital flowing into the protocol. CoinDesk traced the spike to the Humanity Protocol’s H token, which was hacked and minted in unlimited supply a day earlier. The worthless new tokens sat in a BNB Chain pool and inflated the dashboard’s dollar reading rather than representing real deposits. DefiLlama’s founder was contacted for confirmation.
• Santiment, a behavioral analytics platform, said the broader market selloff has reached a historic buy zone.
• The 30-day market value to realized value (MVRV), a gauge of the average profit or loss for traders who bought a token over the past month, shows the typical recent buyer underwater on bitcoin by 10%, ether by 12%, chainlink by 9%, XRP by 8%, and cardano by about 18%. The firm tags the first four “fair buy” and cardano “strong buy.”
• MORPHO$1.9704 jumped 12% in 24 hours after the onchain lending protocol raised $175 million, one of the largest funding rounds in DeFi history, co-led by Paradigm, a16z crypto and Ribbit Capital with backers including Apollo and VanEck.
• The deal, structured as a token purchase, valued the protocol at up to $2 billion. The token later gave back some of the pop.

U.S. inflation data came in as expected on Wednesday, reinforcing the view that the Federal Reserve will keep interest rates at 350-375 bps at its June 17 meeting but is likely to increase rates by 25 bps by the end of the year.

The Consumer Price Index year over year rose 4.2% in May, according to a report from the Bureau of Labor Statistics. Economists had been expecting a rise of 4.2% following the April 3.8% increase.

On a month-over-month basis, CPI rose 0.5%, against expectations of 0.5% and against April’s 0.6% rise. Core CPI, which excludes food and energy costs, rose 0.2% in May versus forecasts of 0.3% and April 0.4%. Year-over-year core CPI was higher by 2.9% versus forecasts of 2.9% and April’s 2.8%.

While bitcoin saw a slight uptick after the data was published, it still remains under pressure. Bitcoin BTC$62,327.10 traded just above $61,000 following the report, mostly unchanged over the past 24 hours. U.S. stock index futures were down across the board, and the 10-year Treasury yield rose to 4.5%. WTI crude oil continues to head lower, down a further 1% on the day at $88.

Ahead of the CPI data, markets were pricing in a 98% probability that the Federal Reserve would leave interest rates unchanged at its June meeting, according to the CME Fed Watch tool.

The election season is ramping up in the United States, meaning that airwaves and social media are flooded with campaign ads.

Candidates, in addition to the political action committees (PACs) supporting and opposing them, are projected to spend a record-breaking $10 billion in ads this cycle. Some of that is going into AI deepfakes. 

At least 15 AI-generated campaign ads have run since November, according to NBC News. Some have used deepfakes to portray a candidate doing or saying things that compromise their campaign’s image.

Transparency advocates say the ads, which are illegal in some states, could harm the integrity of American elections.

Ad runs afoul of local election laws

In the context of campaign ads, AI is mostly governed at the state level. Some 28 states have disclosure laws, while in two states, it is prohibited, though not totally. 

In Minnesota, one ad campaign has already bumped up against local legislation. Minnesota Lt. Governor Penny Flanagan posted on BlueSky on June 3 “you might see a TV ad starring something that… kind of looks like me.”

Flanagan was referring to an ad run by a PAC supporting her opponent in the Senate primary race, fellow Democrat and US Representative Angie Craig. The ad shows Flanagan standing atop a large pile of cash, and criticizes her alleged ties to special interest groups.

“My opponent’s super PAC is using an AI deepfake of me to mislead voters. They can’t win with the truth – so they’re resorting to lies.”

“It’s disgusting. Minnesotans deserve better.”

The ad may run afoul of Minnesota campaign laws. In 2023, Democratic State Representative Maye Quade introduced a bill that bans AI deepfakes. It was passed into law, and “anyone who widely shares a deep fake within 90 days of an election” is guilty of a crime. This, provided that the person also:

• Knows or should have known the ad was a deepfake and made without the consent of the depicted person
• Acted with the intent to harm a candidate’s reputation to influence an election

The ads ran after the DFL, Minnesota’s Democratic party, nominated Flanagan, so technically it may have not violated the law. Still, Flanagan’s campaign is reportedly consulting lawyers.

Quade told local media that the ad violated the spirit of the law, and that people in general don’t like AI being used this way. “People don’t like this, broadly […] What campaign on either side of the aisle is going to help voters feel good about their candidate using this?”

Related: Prediction markets legal battles heat up in Minnesota, Rhode Island

On the Democratic side of the aisle, 40 DFL state legislators signed a letter condemning the use of AI deepfakes in campaign materials. They noted that, in 2023, “lawmakers voted nearly unanimously to ban the use of deceptive AI-generated deepfakes in elections, recognizing the threat manipulated AI content poses to voters and public trust.”

“Regardless of party, the use of AI-generated deepfakes in campaign advertising is unacceptable.”

Mark Jablonowski, the CEO of advertising firm DSPolitical, told NBC that he thinks most politicians will rise above it. “I think most campaigns on both sides of the aisle probably want to do the right thing […] There, of course, are going to be examples that you can point to where people are going about it the wrong way.”

The PAC that issued the ad, North Star Dawn PAC, did not respond to Cointelegraph’s request for comment. 

What do election laws say about AI deepfakes?

As noted above, some 30 states have laws on the books regarding AI use in elections. The vast majority of these relate to simple disclosure, with many states only having civil penalties for infractions. 

The Federal Elections Commission (FEC), the regulator responsible for creating funding, disclosure and other rules concerning elections. Regarding ads, the FEC told Cointelegraph:

“Commission regulations require clear and conspicuous disclaimers to appear on certain campaign advertisements, including public communications that are distributed by a federal candidate’s campaign committee.There is also a prohibition against ‘fraudulent misrepresentation.’”

Public Citizen, a consumer advocacy group, submitted a petition for rulemaking before the FEC in 2023, asking the commission to issue rules for AI. Instead, the body “decided not to initiate a rulemaking.”

“The Commission determined that the statute’s fraudulent misrepresentation ban is technology neutral, applying to all means of the specified fraud, including AI-assisted media.”

One may not expect quick action from the federal government, at least not from Congress, on AI. In 2023, Senator Amy Klobuchar and Representative Yvette Clarke, both Democrats, introduced the REAL Political Advertisements Act in their respective chambers. However, the bill failed to pass in either house. 

If anything, the US Congress shows a total unwillingness to meaningfully regulate AI. Nearly one year ago, President Donald Trump signed the One Big Beautiful Bill Act into law. The final version narrowly avoided including a 10-year ban on any state and local regulation of AI, giving the industry carte blanche for anything from building data centers to how AI would be used in popular media. 

Now, two Congressmen are back at it. Democrat Lori Trahan and Republican Jay Obernolte on June 4 introduced a bill that, if passed, would ban states from passing laws “targeting artificial intelligence model development.”

According to the American Civil Liberties Union (ACLU) “This could include anything from privacy regulations to antidiscrimination requirements to AI safety laws.”

The ACLU noted that the aforementioned 10-year ban was stripped from the Senate file in a near-unanimous 99-1 vote.

Jina John, senior policy counsel for AI, privacy and technology at the ACLU, said, “This draft bill fails to learn from Congress’s previous attempts to block state AI regulations. States must be able to protect their own residents from harm, hold tech companies accountable, and ensure that AI is safe and trustworthy.”

Magazine: Korea probes Polymarket users, crypto PACs sweep primaries: Hodler’s Digest, May 31- June 6