🎯 A Google Acquisition, Apple Robotics And An AI Supercomputer Feature In A Big Week In Investing. 🧐
Investing Intel brings you this week's investment highlights, market buzz, stock screener picks, and captivating reads.
Market Snapshot (Past Week)
S&P500: $5,204.34 (-1.02%)
Dow Jones Industrial Average: $38,904.04 (-2.27%)
Nasdaq Composite: $16,248.52 (-1.31%)
Russell 2000: $2,063.47 (-2.94%)
S&P/TSX Composite Index: $22,264.38 (+0.35%)
PHLX Gold and Silver Sector: $136.35 (+4.65%)
Investing Unlocks: How to Capitalize on the Biggest Stories From The Last 7 Days
We decode the biggest stories from the last week to highlight how you can take advantage and unlock opportunities to grow your portfolio.
This week, it’s all about the rise in copper prices due to supply fears, Alphabet eyes HubSpot, Disney, Apple and Tesla make the headlines, while Canada's economy, SLB's major acquisition and an AI supercomputer all had an interesting tale to tell.
Let’s get into it…
🟤 Copper Crunch
Copper prices surge on concerns over global ore supply and potential production cuts by Chinese smelters.
Why this may interest investors —>
🧩 Acquisition Talks
Google parent company Alphabet Inc GOOG 0.00%↑ has been exploring the possibility of acquiring online marketing software company HubSpot Inc HUBS 0.00%↑.
Assessing the value for investors —>
🏰 Iger Wins
Shareholders of Walt Disney Co. DIS 0.00%↑ have rejected activist investor Nelson Peltz's bid for a board seat at the company.
Why investors should pay attention —>
Apple Robotics
Apple's AAPL 0.00%↑ push into personal robotics could diversify revenue streams and capitalize on AI advancements.
Assessing the value for investors —>
🇨🇦 Canadian Economy
Deloitte Economic Outlook: Hope for Canada's economy as it avoids recession.
Why this may interest investors —>
😞 Tesla Delivery Slump
Tesla's TSLA 0.00%↑ Q1 vehicle delivery miss and share price decline raise concerns.
Why this matters to retail investors —>
🛢️ Oilfield M&A
Schlumberger’s SLB 0.00%↑ acquisition of ChampionX enhances its production offerings, driving growth and value.
Assessing the value for investors —>
🌐 AI Supercomputer
Microsoft MSFT 0.00%↑ and OpenAI plan a $100 billion data center project, including the "Stargate" AI supercomputer, launching in 2028.
Why investors should pay attention —>
🏢 Office Real Estate
As office real estate collapses, big cities face challenges. Population decline, lower taxes, worse public services - implications for investors.
Why this is important for investors —>
🇨🇳 China Recovery Catalyst
China's factory activity beats expectations, driving economic recovery and creating investment opportunities.
Assessing the value for investors —>
📈 Rally Diversification
Citigroup C 0.00%↑ predicts the US stock rally will broaden beyond tech. The firm advises considering adjusted sector recommendations and market sentiment carefully.
Why investors should pay attention —>
Hot Topics
This week starts the US earnings season with banks and Delta Airlines reporting Q1 results. The US monthly CPI figures will also be closely monitored.
Silver Speculation: According to Sprott, multiple bullish patterns suggest a potential surge in silver prices, with projections pointing to a minimum of $30. The main catalysts for a silver price breakout include its enduring monetary value alongside rising gold prices, its correlation to economic reflation, and significant consumption in the solar energy sector. The market remains bullish, but significant short positions by commercial traders in the futures market indicate underlying pressures.
Paramount Merger: Paramount Global (NASDAQ: PARA) is nearing a merger with Skydance Media. Controlling shareholder Shari Redstone is negotiating the sale of her Paramount stake to Skydance, with both parties in a 30-day exclusive talk period to iron out the merger details. Amidst Paramount's declining shares due to TV viewership losses and streaming service investments, the deal aims to enhance shareholder value. Other acquisition offers exist, but Paramount's board is currently focused on the potential merger with Skydance.
US vs. China: During ongoing US-China talks, Treasury Secretary Janet Yellen suggests the US may introduce trade barriers to safeguard emerging sectors from China's state-funded advances in clean energy. Yellen's comments precede her visit to China, aiming to discuss industrial overcapacity and promote cooperation on issues like climate change. This visit follows discussions between Presidents Biden and Xi Jinping on China's trade practices, with the US considering new tariffs.
Generational Shift: Younger generations are prioritizing travel over traditional investments like housing, influenced by lifestyle changes and high real estate costs, as reported by Deloitte. With baby boomers traveling less, millennials and Gen Z are set to become the majority of travelers by 2030. Sustainability concerns are shaping travel trends, while rising middle-class populations in India and China are boosting global tourism demand.
SPR Buyback Cancelled: The US Department of Energy canceled a buyback of 3 million barrels of oil for the Strategic Petroleum Reserve due to rising oil prices and geopolitical tensions. They remain committed to prudent market engagement, maintaining demand while strategically replenishing the reserve post-2022 sales.
RegCF Resilience: In 2023, Regulation Crowdfunding (Reg CF) remained resilient despite minor fluctuations and economic challenges. Women and minority-founded businesses particularly benefited. The resilience of Reg CF amid interest rate hikes and market uncertainties highlights its potential in democratizing access to capital. While the overall investment landscape faced hurdles, Reg CF demonstrated stability and growth potential, emphasizing quality investments and underscoring its critical role in supporting startups and innovative ventures.
VTM Stock Picks
This week, VTM's stock screeners have identified several promising stocks, with a focus on value, growth, and dividend potential.
💎 Value Stock Picks 💎
United Airlines Holdings, Inc. (NASDAQ: UAL)
P/E Ratio: 5.5
PEG Ratio: 0.1
United Airlines Holdings UAL 0.00%↑ stands out as a value stock due to its very low P/E ratio, indicating it is potentially undervalued compared to its industry peers.
Titan Machinery Inc (NASDAQ: TITN)
P/E Ratio: 8.3
PEG Ratio: 0.6
Titan Machinery TITN 0.00%↑, a leading dealer in agricultural and construction equipment, stands out as the world's largest dealer for CNH Industrial brands. It makes a compelling choice for value investment, with a low P/E ratio and low PEG suggesting potential for earnings growth.
🚀 Growth Stock Picks 🚀
Pet Valu Holdings Ltd (TSX: PET)
ROE: 128.4%
Mean Sales Growth Rolling 12 Months: 5.5%
Pet Valu Holdings Ltd. is a Canadian pet food and accessory retailer founded in 1976. The company's emphasis on premium pet products, strategic pricing adjustments, and operational efficiency positions it as a reasonable growth stock, particularly for investors looking for opportunities within the pet care sector, which continues to exhibit strong consumer demand trends.
Expedia Group Inc (NASDAQ:EXPE)
ROE: 52.0%
Mean Sales Growth Rolling 12 Months: 9.3%
Expedia EXPE 0.00%↑ stands out as a compelling growth stock within the online travel agency sector, benefiting from younger generations prioritizing travel over traditional purchases like homes. With millennials and Gen Z projected to dominate leisure travel by 2030 and showing a strong preference for sustainable options, Expedia's comprehensive and user-friendly platform meets these evolving demands.
🏦 Dividend Stock Picks 🏦
Coca-Cola Europacific Partners PLC (NASDAQ: CCEP)
Dividend Yield: 2.9%
Dividend Payout Ratio: 50.1%
Coca-Cola Europacific Partners plc CCEP 0.00%↑ presents a balanced profile for dividend investors. With a moderate dividend yield and a payout ratio that suggests a sustainable approach to dividend payments, it indicates a stable investment opportunity. The payout ratio reflects a healthy balance between returning income to shareholders and retaining earnings for future growth, underscoring the company's financial prudence.
Top Reads
💬 ChatGPT is now available without sign-up, aiming to make AI more accessible worldwide. Over 100 million people in 185 countries already use it for learning, creativity, and answers, highlighting its global impact. Start using ChatGPT instantly.
❤️🔥 Bain & Company's eighth annual review for 2024 highlighted 97 high-growth US consumer products brands disrupting the fast-moving consumer goods (FMCG) sector, with 48 newcomers making their debut on the list. Insurgent Brands 2024.
💰 All current billionaires under 30 inherited their wealth, marking the beginning of "the great wealth transfer," where over 1,000 wealthy individuals will bequeath more than $5.2 trillion to their heirs in the next 20 years. Fifteen young billionaires are among the first wave of a $5.2tn transfer of wealth.
🚨 British billionaire Joe Lewis, whose family trust owns the Tottenham Hotspur soccer club, will not spend any time in prison after pleading guilty to insider trading and conspiracy charges in New York. Joe Lewis gets no prison time at sentencing.
🎪 McKinsey, facing declining demand, is offering staff, nine months of paid leave to find new jobs. Despite challenges and layoffs across the sector, consulting firms continue hiring, leveraging incentives to retain future talent. McKinsey’s resilience is evident with $16 billion in revenue last year.