- Stocks & Income
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- š¶ļø Inflation was red hot
š¶ļø Inflation was red hot
š§ But growth was ice cold
Wednesday, we announced that Alts 1 is open again to new investors, and weāve already received over $400k in interest. If you would like to invest differentlyāin assets like blue-chip wine, British contemporary art, tequila barrels, and Pele rookie cardsāplease get in touch.
Oh, and donāt forget to check out our curated book recommendations.
š The AI Future of Marketing š
They help brands create content that resonates deeply with their target audience and, most importantly, deliver outsized ROI.
Last year we did an issue questioning if āRAD AI is a good investmentā. Since then...
Nvidia's value went to $2 trillion
Cisco spent $28b on its largest AI acquisition ever, and
Redditās move to license data for AI has re-energized the IPO market.
That's the power of AIā¦
$27m raised since 2018
7,000+ investors, including VCs, execs at Google, Amazon and Meta
~3X revenue growth from 2022 to 2023 ā while landing major clients, including Hasbro, Skechers, and Sweetgreen
Leadership has 5 exits between them.
The round closes in one week! (Apr 29)
This is a paid advertisement for RAD AIās Regulation CF offering. Please read the offering circular and related risks at āinvest.radintel.aiā
š° Market Headlines
High inflation and slowing growth pushed stocks down. Nasdaq and S&P500 fell about 0.5% and the Dow dropped nearly 1%.
Core PCE grew 3.7% year over year in Q1 above estimates of 3.2% and way higher than the 2% seen in Q4 of last year.
[Ed: Once more for those in the back: āRates are never coming down.ā]
GDP expanded just 1.6% in Q1, well below forecasts of 2.4%.
Alphabet sharesĀ skyrocketed 14% as the company beat on earnings, announced its first-ever dividend, and authorized a $70 billion buyback.
Snap shares rose 23% due to stronger advertising and more Snapchat+ subscribers (yes, people pay for Snapchat).
Sources say ByteDance wouldĀ prefer to shut down TikTokĀ in the US rather than sell it if it exhausts all legal options. [Ed: itās as if this company is not being run for profit and instead has other non-commercial priorities]
š¶ļø Market Vibes
š° Market Forecasts and Futures
GDP forecasts for Q2 took a beating after yesterdayās colossal miss. Rate cuts also continue to look increasingly unlikely.
š± Fear and Greed Index
Two steps forward, one step back.
š¤ What you said last time
Loads of strong opinions about whether or not TikTok should be banned in the US.
Yes, itās Chinese Spyware.
āThe Western governments are naive in hoping that totalitarian regimes will change into trustful trade partners. Copy and spy has been anchored in the Chinese DNA.ā
āWe already have our own spyware. More is not better.ā
āCome on. Give us the option to pick "They don't allow any of our social media companies to operate in China so fair is fair" [Ed: Fair point]
āWhile I strongly support open access to information, I believe applications like TikTok and Temu pose significant risks to the United Statesāboth culturally and economically. In my view, these platforms represent a targeted threat to our country. Forfeiting these 'crapplications' is a worthwhile sacrifice to limit undue influence from China. As a professional in cybersecurity who does not use these platforms, I recognize my bias. However, I am also concerned about their profound social impact on our youth. Nonetheless, I am wary of the slippery slope this creates. Establishing a precedent for banning applications could lead to excessive government overreach and interference.ā
No, thatās censorship.
āIt's censorship, but I don't use it, so I don't really care.ā
GDP growth in Q3 and Q4 2023 was supported by credit card spending. This sharp decline is a leading indicator for Visa and Mastercardās next earnings reports.
š§ What do you think?
š¬ Have your say
With GDP growth missing estimates badly, where do we go from here?
Next quarter's GDP report will |
š Stocks
Get $20 free shares at āpublic.comā using code ALTSCO.
Winners and losers
Earnings, upgrades, and acquisitions
MicrosoftĀ beat Wall Street estimates for Q3 revenue and profit, lifting shares 4%.
IntelĀ forecast Q2 revenue and profit below market estimates, dropping shares by 6%.
AstraZenecaĀ sailed past market expectations for Q1 revenue and profit; shares climbed over 5%.
Caterpillar's shares plummeted 7.5% on a weak Q2 sales outlook and a softening economy in Europe and Asia-Pacific.
T-Mobile USĀ topped Q1 EPS estimates but missed revenue expectations, causing its stock price to dip 0.07%.
American AirlinesĀ reported a record Q1 revenue but missed EPS estimates; shares rose 1.5%.
Mobileye Global'sĀ Q1 revenue plunged nearly 50%, hurt by fewer orders for its driver-assistance chips, knocking shares 3%.
Market movers
ChargePointĀ enhanced its softwareĀ for electric fleets, enabling seamless driver reimbursement for home charging.
Plug PowerĀ struck dealsĀ for 350 megawatts of electrolyzers in Europe and the US, bringing its total contracts to 4.5 gigawatts.
Southwest Airlines announced plans toĀ close operationsĀ at four airports and fire over 2,000 employees.
Bristol Myers Squibb isĀ cutting $1.5 billion in costsĀ by the end of 2025, including laying off 2,200 employees this year.
Ideas, trends, and analysis
The average 30-year mortgage rateĀ climbed to 7.17%, the highest since November.
A recordĀ $8.8 billion was pulledĀ from US sustainable funds in Q1 due to high rates, middling returns, and ESG politicization.
š Global Perspectives
šš¹ Haiti's Prime Minister Ariel Henry hasĀ resignedĀ and a transitional council was sworn in.
š¦šŗ Around 160 long-finned pilot whales haveĀ washed upĀ on the coast of Western Australia, with 28 whales already dead.
š«š· Delays and flight cancellations are set to impact Europe after authorities failed to reach a deal with French air traffic control workers.
š®š¶ IraqĀ hangedĀ 11 militants sentenced to death on terrorism charges in the latest mass executions in the country.
šØš³ ChinaĀ launchedĀ three astronauts into space, bound for the country's space station, where they will work for half a year.
š Crypto
The famous "Buy Bitcoin" sign from Janet Yellen's 2017 speechĀ sold for $1 millionĀ at auction.
BlackRockās Bitcoin ETFĀ witnessedĀ the end of a 71-day inflow streak.
The SECĀ delayed its decisionĀ on allowing options trading for spot Bitcoin ETFs and asked for public comments.
Bitcoin ETFs in the USĀ drove higher crypto allocationsĀ among institutional investors, reaching 3% of portfolios, the highest since 2021.
š§ Errata
A Baltimore high school coach allegedly used AIĀ voice cloningĀ in an attempt to get the principal fired by faking racist remarks.
Hasbro's new $1,200 self-transformingĀ MegatronĀ toy is equipped with a cannon and a flail, making it the ideal gift for any kid.
A stowaway family cat took a 600-mile trip in an Amazon return box before reuniting with its family.
Two of the fourĀ horsesĀ that broke free in central London underwent surgery. [Ed: All four are still searching for their horsemen.]
šŗ What to Watch Today
Thatās all for today. Did I miss anything? Smash the reply button to let me know.
Cheers,
Wyatt
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