๐ค Trump's Rise, AI Hype, Supercar Auctions & Gold's Peak ๐๐๏ธ
Inside Investing Intel this week we look at top investing stories, hot market topics, stock picks, and some interesting reads.
Market Snapshot (Past Week)
S&P500:ย $5,254.35 (+0.23%)
Dow Jones Industrial Average:ย $39,807.37 (+0.08%)
Nasdaq Composite:ย $16,379.46 (-0.05%)
Russell 2000:ย $2,124.55 (+0.48%)
S&P/TSX Composite Index:ย $22,167.03 (+0.35%)
PHLX Gold and Silver Sector:ย ย $127.00 (+5.93%)
The Biggest Investing Stories From the Last 7 Days
Dive into our rundown of the investing stories that caught our eye last week. Reddit, Shein and Tesla made the cut, while broader market dynamics, including supply chain issues and an escalating chocolate crisis, added to the mix.
โ๏ธ RDDT Retreat
Reddit Inc. RDDT 0.00%โ shares experience largest one-day drop since IPO as Hedgeye predicts 50% decline, raising concerns for retail investors.
Why this is important for investors โ>
๐๐๏ธ Logistics Leverage
Shein's plan to sell its supply chain as a service signals a strategic shift, diversifying revenue streams and showcasing its efficient backbone.
Assessing the situation for investors โ>
๐๏ธ SEC vs COIN
The SEC lawsuit against Coinbase COIN 0.00%โ moves forward, providing regulatory clarity and investor protection while impacting the crypto market.
Why investors should pay attention โ>
โ๏ธโ๐ฅ Supply Chain Shock
The container ship collision with Baltimore's Francis Scott Key Bridge has raised questions about the safety and efficiency of US ports and supply chains.
Assessing the situation for investors โ>
๐ BYD Stock Drop
BYD, China's leading electric vehicle (EV) maker, missed earnings by nearly 1 billion yuan ($138 million), a development that, while not massive, sparks concerns over its capacity to maintain profit growth in the competitive EV market price war.
Why this is important for investors โ>
๐ Free Self-Driving
Tesla TSLA 0.00%โ is rolling out a free one-month trial of its Full Self-Driving (FSD) technology for customers in the United States. This comes as Tesla faces challenges with decreasing demand and competitive pricing, impacting sales and profit margins.
Why investors should pay attention โ>
๐ธ Bitcoin Rebounds
Bitcoin rebounded above $70,000 despite outflows from US exchange-traded funds (ETFs).
Why this is important for investors โ>
๐ฅ Trumpโs Media Score
Shares of Trump's media startup TMTG $DJT soar as the DWAC merger nears, potentially netting him billions.
Assessing the value for investors โ>
๐ซ Chocolate Crisis Continues
Cocoa futures soared past the unprecedented mark of $10,000 a ton, continuing a historic rise that has doubled prices this year and is increasing chocolate costs.
Why investors should pay attention โ>
PRESENTED BY QYOU MEDIA
India's Youth Surge Fuels Digital Explosion
QYOU Media Inc. (TSXV: QYOU) (OTC: QYOUF) is an India-focused entertainment business that combines social media stars with a wide-reaching network of television channels. QYOUโs experienced and connected leadership team anticipates significant opportunities in India's future and is determined to seize them. If youโre looking for investing ideas in the media and entertainment industry this is one stock you want on your radar.
Explore this Growth Opportunity Now โ>
Hot Topics
The US stock markets ended March on a positive note, driven by enthusiasm for artificial intelligence (AI), although there's debate on whether this bullish trend can continue amid concerns over tech sector slowdowns and potential market corrections. This week, investors are closely watching key economic indicators like the European Union's inflation rates and US job data, crucial for central banks' monetary policies.
Major stock exchanges in Europe, Australia, and New Zealand are closed Easter Monday, while the US market reopens.
Consumer Caution: Recent reports show diverse consumer spending habits. Lululemon $LULU notes softer spending in the upscale market. Nordstrom $JWN sees cautious spending on non-essential items. Williams-Sonoma $WSM finds consumers preferring experiences over home goods, with hesitation on furniture. Ollie's Bargain Outlet observes more spending among higher-income groups, particularly those earning above $150K.
Donald Trump: Trump Media & Technology Group, listed as $DJT on NASDAQ. Its share price soared, valuing the company at $8.8bn. This is astonishing given its low revenue and major losses. Plus its main offering, Truth Social, lacks a significant user base and advertiser interest. Thereโs a belief that the DJT share price is driven by emotional investment from Trump supporters rather than solid financials, suggesting it has classic meme stock status. This investor enthusiasm has sustained the stock's value amid volatility. Regardless of potential future declines, Trump's financial gain is substantial, benefiting from his ability to mobilize support and capitalize on market trends.
SBF: Sam Bankman-Fried has been sentenced to 25 years in jail and must forfeit over $11 billion for fraud following the FTX collapse, which exposed an $8 billion deficit in customer funds. The court rejected his defense's plea for leniency based on his youth and philanthropic claims, focusing on the severity of his actions and his lack of remorse. This significant sentence aims to deter future financial fraud, particularly in the evolving cryptocurrency sector, amidst ongoing efforts to regulate the industry and hold other high-profile figures accountable.
Supercar Blondie: Alex Hirschi, known as Supercar Blondie, is launching SBX Cars, an online auction platform for selling hypercars and luxury items she's known for featuring. Prior to launch, SBX Cars has secured consignments worth over $100 million. The auction site will feature rare and exclusive items including vintage Formula One cars from the Lotus F1 team's John Player Special era in the 1970s and '80s, along with modern marvels like the Mercedes-AMG One supercar, Tesla Cybertruck, BMW glass yacht, and the Hyperion XP-1 prototype as part of its initial offerings.
Gold: The price of gold reached a record high, influenced by potential interest rate cuts, geopolitical tensions, and strong demand from China. Hitting $2,265.73 an ounce, gold has risen about 14% since mid-February, driven by global conflict and significant central bank purchases. Leading banks, including JPMorgan Chase & Co. $JPM and Goldman Sachs Group Inc. $GS, project gold prices could reach $2,500 and $2,300 an ounce, respectively. However, global holdings in gold-backed ETFs decreased by over 100 tons in the first quarter, reaching the lowest level since 2019.
VTM Stock Picks
This week, VTM's stock screeners have identified several promising stocks, with a focus on value, growth, and dividend potential.
๐ Value Stock Picks ๐
Ovintiv Inc (NYSE: OVV)
P/E Ratio: 6.6
PEG Ratio: 0.8
Ovintiv, $OVV a company based in North America, specializes in exploring and producing oil and natural gas. Ovintiv stands out as a value stock due to its favorable P/E and PEG ratios. Its strategic initiatives to enhance production efficiency and reduce costs could support sustainable growth, appealing to value investors looking for opportunities in the energy sector.
Synchrony Financial (NYSE: SYF)
P/E Ratio: 8.3
PEG Ratio: 0.6
Synchrony Financial $SYF is an American consumer financial services company. Its strong position in the consumer financial services market and partnerships with major retailers could fuel its growth and profitability, making it an attractive choice for value investors focused on the finance sector.
๐ Growth Stock Picks ๐
Burlington Stores Inc (NYSE: BURL)
ROE: 34.1%
Mean Sales Growth Rolling 12 Months: 7.9%
Burlington Stores, Inc. $BURL emerges as a notable growth stock with a high ROE, solid EPS growth, and a positive sales growth trajectory. Its strategy of expanding its store footprint and enhancing its e-commerce platform demonstrates a commitment to growth. The company's focus on off-price retail in a recovering economic environment could drive continued outperformance, making it an attractive pick for growth investors.
Insulet Corp (NASDAQ: PODD)
ROE: 28.2%
Mean Sales Growth Rolling 12 Months: 28.3%
Insulet $PODD is an innovative medical device company improving the lives of people with diabetes and other conditions through its Omnipod delivery system. The company showcases robust growth characteristics. Its focus on expanding its product offerings and entering new markets underpins its growth prospects, rendering it an attractive investment for those focused on the healthcare sector's growth stocks.
๐ฆ Dividend Stock Picks ๐ฆ
Plains All American Pipeline, L.P. (NASDAQ: PAA)
Dividend Yield: 7.2%
Dividend Payout Ratio: 76.6%
Plains All American Pipeline $PAA stands out as a top dividend stock, offering a high dividend yield supported by a reasonable payout ratio that suggests sustainability. The company's strong position in the energy sector, focusing on pipeline transportation and storage, provides a stable cash flow that supports its generous dividend payments, making it an attractive pick for dividend investors seeking energy sector exposure.
Top Reads
๐ Daniel Kahneman, a pivotal figure in behavioral science, passed away at 90 on March 27, 2024. In tribute, a collection of 42 of his insightful quotes has been compiled to celebrate his impactful legacy. 42 Quotes from Daniel Kahneman.
โ๏ธ Amazon $AMZN and Anthropic begin their collaboration to advance generative AI technologies globally, with Anthropic choosing AWS for critical workloads. Amazon and Anthropic deepen their shared commitment to advancing generative AI.
๐ Electric vehicle sales have surged fivefold in the last three years, surpassing 10 million units in 2022, with China leading the market. The industry is expected to continue its growth over the next decade. Electric vehicles hit top gear.
โข๏ธ The U.S.'s largest uranium producer is expanding operations at a mine near the Grand Canyon, driven by rising demand for nuclear power amid climate change efforts. Despite historical concerns and opposition from environmental and Native American groups, Energy Fuels Inc. argues the mine is environmentally safe and vital for reducing foreign uranium reliance.
๐ฎ In 2023, game developers balanced stability with innovation amid economic uncertainties, focusing on efficiency and diverse monetization. Looking ahead, trends include deeper AI integration, a rise in extended reality games, and more. 2024 Unity Gaming Report.
๐ฒ A former City trader looks back in this darkly engaging account of eye-watering bonuses and emotional detachment. The Trading Game by Gary Stevenson: A Review.
๐๏ธ The global secondhand apparel market's growth signals a shift towards sustainable, circular fashion, with the 12th Resale Report highlighting the role of government support in accelerating this transition. ThredUp Resale Report 2024.