I’m Meta Matt, Director of Education and welcome to PB University LITE! This is a 50 Class Trading 101 Series geared towards both new and veteran traders alike! We go over everything from Trading Psychology, Technical Analysis, and Options Trading to Commodity Trading, Forex, and more!! This 50 Class series is not designed be taken in order, it is instead designed for traders to browse and pick which classes interest them. I will include the list of classes at the bottom of this page.
Alright first up, we’ve got common stock. This is the most basic type of stock and it gives you a piece of ownership in a company. It’s like being a part-owner of a business, without having to do any of the work. Not bad, right? ● Allows ownership of a portion of the company, without taking possession ● Lets you vote on corporate issues, such as Board of Directors and takeover bids. ● Some companies give their shareholders dividend payments
Preferred Stock
Next, we’ve got preferred stock. This is like the VIP version of common stock. It’s got a few extra perks, like getting paid dividends before common stockholders and getting paid first if the company goes bankrupt. It’s like being a VIP member at a club, but you don’t get free drinks. ● Bond-like qualities ● First Paid for Dividends ● Payment priority if company goes bankrupt ● Sometimes can convert to common shares ● Generally, no voting rights
Penny Stocks
Finally, we’ve got penny stocks. These are stocks that trade for less than $5 per share. They’re like the wild child of the stock market – they can be super risky, but they can also give you big returns.
Check Out The Prior Blog From This Series: –Days 1-3: How this $250 Challenge Works
Account Updates… $250 Account: Started at $256.82, starting day 4 down $0.12 $50 Account: Started at $51.88, starting day 4 even.
Day 4… 4/22/24: $SNAP is a stock I am watching from our blog trade idea. It fell off after market open down to $10.88 but recovered on the 4H chart, closing back above $11. During pre-market I was actually watching to enter at $11.55. I decided to stick to my Trading Psychology plan, which is to NOT trade during pre-market, as my emotions aren’t in check that early in the morning. I actually fell asleep in the middle of a volatile day trade once at 6:00AM, which is why I decided to make this a part of my plan. Also the strategy that our Technical Analysis Coach Jay teaches is strict about not using Pre-Market and After-Hours candles as criteria for entry. I’m glad I didn’t let my emotions get the best of me this morning, as I would have ended up losing money on the day. This one never hit entry for the day during regular hours, so I didn’t enter.
I am also watching American Airlines to see how it plays out at our $14.65 entry. We are playing it from $13.03 from the blog in our discord. This one also didn’t hit entry.
Today was a good day. I was tempted to get into Snapchat during pre-market but practiced good trading mindset techniques we talk about in our trading psychology streams and didn’t jump in early. The price broke above the entry level during pre-market, but pre-market isn’t part of the strategy that I’m following. I instead decided to wait until retest and confirmation. This ended up paying off, as I would have lost money had I entered.
We Have A Free Live Trading Psychology Group Session Every Wednesday 5PM EST
I also resisted the urge to get into $AAL. I’m waiting for it to break above the next entry level from our blog post at $14.65. I thought about entering early because “well if it’s going to break above the entry level, might as well get early”…. That’s a big IF… I’m glad that I didn’t enter, even IF it goes up from here (it didn’t). I instead took a break and went on X and did some research into some meme coins to YOLO into. See the prior blog in this series to see exactly why I have this YOLO Meme Coin Account!
How My YOLO Account Has Been Holding Up, About Even.
Day 5… 4/23/24: Well MOG coin is up around 60%, there is a picture of Doja Cat eating a $1.50 Costco Hot Dog going viral on social media, which hopefully pumps Costco Hot Dog coin lol. I’m about even on this YOLO $50 account. For the $250 account all I hold still is $CCL, and I’m up 5%. This is great. Even though that’s only $0.70, we were able to practice good trading mindset strategies, and uphold them with this account. If we can do this consistently on a $250 account, this is great practice for when we have a $2,500 account, or even $250K. It’s all about building a foundation.
Will Doja Cat Pump My Bags?
Day 6… 4/24/24: Nothing much to report up 5% on $CCL, and up a few dollars on the crypto account.
Day 7… 4/25/24: Solana and the Meme Coins I have on the Solana blockchain all took a little dip. I’m down around $3-$4 on that account, but these meme coins fluctuate pretty hard like this daily, so I’m not worried at all. Thinking of getting into some other ecosystems to diversify, like NEAR Protocol. Up 7% on $CCL.
The Double-Edged Sword of Energy: How Rising Prices Impact Investors
The global energy landscape is undergoing a significant shift, with prices of oil, natural gas, and other commodities reaching multi-year highs. While this can be positive news for energy companies, it presents a double-edged sword for investors, requiring careful navigation.
Several factors are contributing to the surge in energy prices:
Geopolitical tensions: The ongoing war in Ukraine has disrupted global energy supplies, particularly from Russia, a major oil and gas producer.
Increased demand: As economies reopen and travel restrictions ease, global energy demand is rising, putting pressure on already strained supplies.
Limited production: Concerns about climate change and the transition towards renewable energy have discouraged investments in new oil and gas production, impacting supply in the short term.
The rising energy prices have a varied impact on different sectors of the stock market:
Energy companies: These companies, including oil & gas producers, refiners, and pipeline operators, are the most direct beneficiaries of rising energy prices. Their profits tend to increase, potentially leading to higher stock prices and dividend payouts.
Consumer staple companies: These companies, such as food and beverage producers, are often negatively impacted by rising energy prices, as they face higher operational costs, which can squeeze their profit margins.
Transportation companies: Airlines, trucking firms, and other transportation companies are also negatively affected by rising energy prices, as fuel costs represent a significant portion of their operating expenses.
Navigating this complex environment requires a strategic approach:
Diversification: Investors should maintain a diversified portfolio across different sectors and asset classes to mitigate risk.
Long-term perspective: While energy prices are high now, they might not stay that way forever. Investors should consider the long-term fundamentals of companies before making investment decisions based on short-term price fluctuations.
Research individual companies: Not all energy companies will benefit equally from rising prices. It’s crucial to research individual companies’ specific business models, production costs, and debt levels before investing.
5 Energy Stocks to Watch
Here are 5 energy stocks to keep an eye on, but remember, this is not financial advice, and you should always conduct your own research before making any investment decisions:
Exxon Mobil Corporation (XOM): A global oil and gas major with a diversified portfolio and strong financial performance.
Chevron Corporation (CVX): Another major oil and gas company with a strong track record and a focus on renewable energy investments.
ConocoPhillips (COP): A leading independent exploration and production company with a focus on low-cost operations.
EOG Resources, Inc. (EOG): A leading U.S. shale oil producer known for its efficient operations and strong cash flow generation.
Canadian Natural Resources Limited (CNQ): A Canadian oil sands producer with a strong balance sheet and a focus on sustainability initiatives.
Carvana Zooms Past EPS Expectations, But Can They Outrun a Slowing Market?
Carvana’s $CVNA Q4 2023 earnings report was a rollercoaster ride for investors. While revenue missed expectations, a surprise EPS beat and record profitability sent the stock price cruising up. But the question remains: can Carvana maintain this momentum?
Revenue: $2.42 billion fell short of analyst estimates ($2.53 billion), reflecting a 15% year-over-year decline.
EPS: 1.07was significantly better than expectations (-0.95 loss), driven by cost management and improved margins.
Retail GPU: Record $2,812, exceeding expectations and marking a strong quarter for profitability.
Key Quote: “We are pleased to report record profitability for the full year 2023,” said Ernie Garcia, Carvana CEO. “Our focus on efficiency and cost management has helped us navigate a challenging macroeconomic environment.” He also added, “While the industry outlook remains uncertain, we are encouraged by the early results in Q1 2024. We expect retail unit sales to be slightly up year-over-year and adjusted EBITDA to be significantly above $100 million, assuming stable market conditions.”
Future Forecast: Carvana’s forward guidance suggests cautious optimism. They predict slightly increased retail unit sales year-over-year in Q1 2024, significant increase in adjusted EBITDA compared to Q4 2023, and continued focus on efficiency and cost management.
Challenges Ahead: Carvana’s journey isn’t without obstacles. Rising interest rates threaten to cool the engines of car affordability, potentially dampening demand. Additionally, an overabundance of used cars on the runway could put downward pressure on prices, impacting profitability. To top it off, a potential economic slowdown looms, potentially leading to turbulence in consumer spending on cars.
Carvana’s Q4 results were a mixed bag, but the EPS beat and record profitability were positive signs. Their forward guidance suggests confidence, but navigating a challenging market will require continued efficiency and strategic execution.
How Our Exclusive In-House Analysts Are Trading $CVNA
$CVNA Chart
“We are looking at the top end of the monthly fair value gap for a possible bearish entry, waiting for a break above followed by a 4H candle close back below, or retest as resistance. We are also watching the top end of the monthly bullish order-block for a possible bullish entry, meaning a close below followed by a 4H candle close back above, or retest as support.”-BTC_Jay
Trade Idea: Bearish Entry Entry: Watching for a break above $97.70, followed by a 4H candle close back below $97.70 or retest as resistance. Targets: $85, $80.14 Stop Loss: $105.50
Trade Idea: Bullish Entry Entry: Watching for a break below $51.61, followed by a 4H candle close back above $51.61 or retest as support. Targets: $56.62, $62.48+ Stop Loss: $46.91
During Tuesday’s Earnings Report Walmart $WMT reported a quarterly revenue rise of 6%. Wall Street was expecting their revenue to be $170.71 billion, however it was reported at $173.39, beating expectations. The report also points to an expected climb in sales for 2025 as well. Walmart President & CEO Doug McMillion said, “Our team delivered a great quarter, finishing off a strong year. We crossed $100 billion in eCommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”
How Walmart Is Adapting And Growing
Walmart has been finding new ways to make money such as selling ads, offering a subscription program called Walmart+, and growing its third-party marketplace. They started adding “warehouse robots” and automated claws in their new automation distribution centers that replenish store shelves and keep up with online order. Walmart’s weekly active e-commerce customers also grew 17% over the past year.
While most other companies have been announcing cost cutting measures, Walmart has done the exact opposite. They announced they will be opening or expanding over 150 stores over the next 5 years. They also plan on upgrading over 1,400 of their current Walmart stores to look more modern looking. They plan on renovating the stores to make more room for online pickup and delivery orders. They also announced they will be raising store manager wages to (an average of) $128K per year, with eligibility for a bonus of up to 200% their base salary.
$WMT 3:1 Stock Split And Boosted Dividends
Walmart announced a 3:1 stocksplit that will be payable after the market closes February 23 to shareholders of record as of the previous day. $WMT’s stock will start trading on the post-split price February 26 (Monday). Right now it is trading around $175, so if the stock closes Friday at $174, then on Monday the post-split price will be around $58 ($175/3). If you owned one share at $174 pre-split, then post-split you would own 3 shares at $58 which equal a total of $174. One reason they are doing this is to make their stock price more affordable to their employees who want to participate in their stock benefits.
They also raised their annual dividend by 9% this year, which is their largest increase in more than a decade. The annual dividend is now $0.83 per share, marking the 51st consecutive year of dividend increases for Walmart.
Walmart Buys Vizio
Walmart also proved that they want to become a media giant like Amazon when they announced they will be buying TV maker Vizio for $2.3 billion. Walmart currently sells ads at their physical stores and websites, however by acquiring Vizio they can now sell ads through streaming services on television, and could possibly rival Amazon if they acquire a streaming service. Vizio’s Smart TV operating system has over 18 million active accounts.
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Prime Overtakes Gatorade As Walmart’s Most-Sold Hydration Drink
LoganPaul and KSI’s Prime Hydration drink is officially at the top of Walmart’s sales as the most sold sports and hydration beverage in the last month. This is a huge deal, seeing as Prime launched early 2022, and Gatorade has been a household name for years since its launch in 1965.
A big part of Prime’s success is the fact that they don’t have to pay million of dollars on marketing, seeing as they have two of the world’s top followed influencers as their founders, KSI and Logan Paul. On Youtube Logan Paul has 23.6M subscribers and KSI has 24.3M for a total of 47.9M subscribers. On Instagram their accounts and the official Prime account has a total of 47.2M followers. On X they have a total of 16.5M followers, and on TikTok they are sitting at a combined 38.7M followers. Not to mention Logan Paul is able to advertise Prime every chance that he gets in front of 1M+ viewers on WWE television where he is the current United States Champion.
Over the last 4 weeks Prime reportedly sold 2,287,305 units of its newest flavor “Cherry Freeze”, and 1,173,754 units of “Glowberry”. Their “Ice Pop” flavor sold close to 280K bottles. Gatorade’s top selling flavor “Cool Blue Thirst Quencher” sold 400K. It seems Gatorade can’t keep up with the viral videos KSI and Logan Paul have been putting out.
KSI and Logan Paul have been able to sign the likes of 2024 Super Bowl Winning QB Patrick Mahomes, UFC Champion Israel Adesanya, and even FC Barcelona.
Pudgy Penguins NFT Sells $10M Worth Of Toys At Walmart
On Tuesday it was announced that NFT project Pudgy Penguins will launch a second line of toys at Walmart. The Pudgy Toys line are based off of the NFT PFPs, and include plush toys, action figures, and more. It is reported that they have already sold over $10M in sales in less than a year, with over 750K toys sold.
Each Pudgy Penguin toy has a QR code that unlocks unique customizations and NFT items that can be used in the upcoming Pudgy World game. They have reported around a 20% conversion rate on buyers who went through the process of scanning the QR code to claim their free NFT.
Learn About NFTs
Pudgy Penguin NFT holders are able to submit artwork of their NFT in exchange for royalty fees on sold toys. The floor price of Pudgy Penguins has sky-rocketed from $1,360 one year ago to the current price of over $58K. That’s right, the cheapest Pudgy Penguin NFT costs over $50K!! They made headlines when they passed the floor price of longtime NFT leading project Bored Ape Yacht Club this year.
Pudgy Penguins started in July 2021 by an anonymous team of developers and artists (Fluffster, Pengo, Waddles, and Snowy). Inspired by Bored Ape Yacht Club and CryptoPunks, they created 8,888 unique penguin NFTs with various traits. The NFT gained traction, and the project sold out fairly quickly. Promises from the founders of educational books, custom tokens, and virtual games never came to be, leading to community dissatisfaction and a decline in floor price. This eventually led to the removal of the founders due to perceived mismanagement.
In April 2022 Luca Schnetzler (known as Luca Netz) participated in a bidding war for the intellectual rights of the Pudgy Penguins project. He won and took over as CEO. Under his leadership the project regained momentum by becoming a staple in the gif-industry, offering exclusive perks to holders, and a huge licensing deal with Walmart to sell Pudgy Penguin toys. The Pudgy Penguins journey serves as an interesting case study of community-driven NFT projects and their potential to overcome challenges.
Luca Netz
How Our Exclusive In-House Analysts Are Trading Walmart
Check out the video below to see how we are going to be trading $WMT!
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You Can Break Up With Your Husband/Wife With Pizza Hut This Valentine’s Day
45% of people agree it’s better to break-up before Valentine’s Day. That might be one reason why the Tuesday before Valentine’s is known as “Red Tuesday” due to being the day people break up most often in the year. “Breakups are awkward. We can help. Send a free Hot Honey Goodbye Pie from now through Valentine’s Day, and the delivery driver will deliver the bad news in the best way” reads GoodByePies.com homepage, the official site for Pizza Hut’s deal going on from February 6th to February 14th.
They Are Selling Fast
Pizza lovers in New York City, Chicago, and Miami can submit their entry for a chance to send a free hot honey “Goodbye Pie” to their significant others, or soon to be ex. The limited-edition “Goodbye Pies” box even has a blank space to write your exes name! For those outside of the three cities offering this deal, you can still apply to have a gift card to Pizza Hut that can be redeemed for a free Hot Honey pizza sent to you soon to be ex, along with a break-up text. They even have an “Excuse Generator” on the site, where you can get “break up excuses” like “I need to spend more time with my pet tarantula and on an unrelated note I never learned how to love.”
Breakup Excuse Generator By Pizza Hut
The free pizzas and gift cards sell out fast on the website, so you have to try to be early! This is part of the new “Pizza wHut!?” campaign that is Pizza Hut’s attempt to lean more into mobile-focused creative campaigns.
Roses are red. Violets are blue. You kept calling them “bro,” so they sent us to break up with you. pic.twitter.com/g86dIrEf9g
Body Found In Pizza Hut Dumpster In South Milwaukee Being Investigated
The South Milwaukee Police Department is investigating a body found Wednesday in a Pizza Hut dumpster as a homicide. Medical examiners identified the body as Alexander Stengel, a 55 year old male. It was a garbage collector who found the body inside the Pizza Hut garbage cart. Crews with HAZMAT suits were seen investigating the crime scene. No arrests have been made yet.
How Our Exclusive In-House Analysts Are Trading Pizza Hut’s Stock $YUM
Yum! Brands, the former Tricon Global Restaurants, is a global fast-food giant operating iconic chains like KFC, Taco Bell, and Pizza Hut. With over 55,000 restaurants in 155 countries, they serve millions daily. They trade under the ticker symbol $YUM.
Despite navigating a competitive landscape, Yum! Brands boasts a powerful arsenal. From iconic brands like KFC and Taco Bell to impressive profit margins and global reach, their strengths position them for continued success. Let’s dive into some of their strengths:
Strong Brands: Yum! owns some of the most recognizable and successful fast-food brands globally, including KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. These brands have strong brand loyalty and established market presence.
Profitable Margins: Compared to its industry peers, Yum! boasts impressive profit margins (21.32% profit margin, 31.9% operating margin), indicating efficient operations and cost control.
Global Reach: Yum! operates in over 140 countries, providing geographical diversification and growth potential in emerging markets.
Shareholder-Friendly: The company has a consistent track record of share buybacks and dividend payouts, returning value to shareholders.
While Yum! shines in many areas, weaknesses linger. From fierce competition and economic pressures to a hefty debt load and reliance on franchisees, these challenges could chip away at their momentum. Let’s explore the chinks in Yum!’s armor:
Competition: The fast-food industry is highly competitive, with new entrants and existing players constantly vying for market share.
Macroeconomic Headwinds: Rising inflation and interest rates could impact consumer spending and profitability.
Debt Load: Yum! has a relatively high debt-to-equity ratio compared to some peers, potentially impacting financial flexibility.
Franchise Dependence: As a franchisor, Yum! relies heavily on franchise success, which can be susceptible to economic downturns and local regulations.
$YUM has a Fair Value Gap on the 4H chart shown above with the green rectangle. The middle of that gap is the current support level StocksBuddy is showing. One option that we personally are watching would be waiting for the price to break back into that Fair Value Gap at $129.34 and then have a 4H close back above it for entry.
$YUM Is Also Bullish On The 1H Chart
On the 1H chart the price is trading within the Fair Value Gap shown above with a green rectangle. The middle of that Fair Value Gap has been acting as support. One option we personally are watching for is to wait for a breakout above the Fair Value Gap range, meaning $130.80 for entry, ideally followed by a retest.
The safest bet for a bullish breakout play is waiting for a break and retest of the $132.50 resistance level StocksBuddy has at the top of those two monthly candle wicks. If you were waiting for a retest of the $130.90 level and didn’t get one so missed out on an entry, $132.50 could be the next level to watch.
$128.71 Is A Key Support Level As It Lines Up With StocksBuddy’s Support AND The Middle Of The Fair Value Gap
$128.71 is looking like a key support level. For those that are overall bearish on $YUM, one option is watching for a break below, followed by a strong retest of $128.71 for a short entry. Another option is waiting for it to break $141.25 ATH and ideally retest for a possible entry like we did with a few other trades recently.
Trade Idea #1: Bullish Entry: Break below $129.34 followed by a 4H candle close above it Targets: $141.20+ Stop Loss: $123.50
Trade Idea #2: Bullish Entry: Break of $130.80 and retest Targets: $141.20+ Stop Loss: $124
Learn How To Find These Types Of Trades On Your Own!
Trade Idea #3: Bullish Entry: Break of $132.50 and 1H or 4H Candle Close Above Targets: $141.20+ Stop Loss: $125
Trade Idea #4: Bullish Entry: Break of $141.25 and retest Targets: $150, $155.21+ Stop Loss: $132.23
Trade Idea #5: Bearish Entry: Break below followed by a strong retest of $128.71 for short entry Targets: $117.67 and below Stop Loss: $135
User Growth: While Snapchat beat analyst estimates by adding 8 million daily active users in Q4 2023, this pales in comparison to the 12 million added during the same period in 2022. This year-over-year decline indicates a potential slowdown in user engagement, despite reaching a total of 414 million daily users by the end of 2023 (10% more than 2022).
Revenue Misses Expectations: Despite the year over year user growth, revenue fell short of expectations at $1.36 billion ($1.38b expectation), raising concerns about the company’s ability to monetize its user base. This is further compounded by weaker brand advertising growth compared to competitors like Meta and Amazon.
High Stock-Based Compensation (SBC) Raises Red Flags: Snapchat’s reliance on SBC, a form of employee compensation using company shares, has investors wary. Issuing new shares dilutes existing shareholder ownership and impacts profitability, leading to lower valuations.
Layoffs Fuel Uncertainty: The recent 10% workforce reduction adds to the already existing anxieties about Snapchat’s financial health and future prospects.
Analyst OpinionsDivided: Barclays analysts stated “buying the dip seems worrying, but is likely the right thing to do here” giving Snapchat a $15 price target. They also said “Snap feels like META around 5 quarters ago, at the cusp of some pretty nice recovery trends, but with few believers in the thesis.” That being said many other analyst have downgraded $SNAP and said they expect it to go lower.
How Our Exclusive In-House Analysts Are Playing $SNAP
$SNAP: SwingingBull
“I think there could more downside to come to $10 area. Levels to the upside would be $12.50, $13, $14, and $15. Easy levels to remember.” –SwingingBull
$SNAP: BTC_Jay
“I don’t like it at these current levels based off of the risk:reward. I like personally looking for lower down at $7.33 or $4.82. Watching for an a move below one of those levels and a 4H candlestick closure back above like we teach in the discord.” -BTC_Jay
$SNAP Is Giving Off A Bearish Signal On StocksBuddy With Resistance At $11.55
Trade Idea 1: Bearish/Short At Current Levels With Low Risk Entry: Current levels ($11.40) Target: $10 And Below Stop Loss: $11.55
Trade Idea 2: Bullish Breakout Entry: Watching for a break and retest of $11.55 Target: $12.50, $13+ Stop Loss: $11
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Trade Idea 3: Bullish Support Entry: Watching for a break below $7.33 followed by a 4H close back above Target: $8+ Stop Loss: $6.79
Trade Idea 4: Bullish Entry: Watching for a break below $4.82 followed by a 4H close back above Target: $5.31+ Stop Loss: $4.50
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
The first ever human patient had a Neuralink brain-chip installed on Sunday. “The first human received an implant from Neuralink yesterday and is recovering well. Initial results show promising neuron spike detection.” Musk said on X. He also revealed that “the first Neuralink product is called Telepathy” and enables control of your phone or computer just by thinking. According to Musk, “initial users will be those who have lost the use of their limbs.”
He also said that “initial results show promising neuron spike detection.” Spikes are activity made by neurons, which is described by the National Institute of Health as cells that use chemical and electrical signals to send information around the body and to the brain.
The PRIME Study, which stands for Precise Robotic Implantation and Monitoring Evaluation, is a first-in-human clinical trial for Neuralink’s brain-computer interface (BCI) technology. It is a crucial step in the development of Neuralink’s technology and could pave the way for future clinical trials and commercialization.
The primary goal of the PRIME Study is to evaluate the safety and efficacy of Neuralink’s BCI system. This includes assessing the safety of the implant and surgical robot. This will involve monitoring participants for any adverse effects of the implant or surgery. During these trials they will also be evaluating how well the BCI system allows participants to control external devices using their thoughts. Initially, the focus will be on computer cursor or keyboard control, but the study may also explore other applications in the future.
The PRIME Study is currently enrolling participants with tetraplegia, a form of paralysis affecting all four limbs. Participants must be between the ages of 22 and 80 and meet other specific criteria. If you are eligible and interested in participating in the PRIME Study, you can expect the following:
An extensive screening process: This will include a medical history review, physical and neurological examinations, and MRI scans.
Surgical implantation of the N1 implant: This will be done using the R1 surgical robot.
Rehabilitation and training: You will work with therapists to learn how to use the BCI system to control external devices.
Regular follow-up visits: These will be used to monitor your progress and assess the safety of the implant.
Participants in the PRIME Study will have the opportunity to be at the forefront of brain-computer interface technology. They may also experience some personal benefits, such as regaining some control over their movements or environment and participating in research that could help others with paralysis. As with any medical procedure, there are some risks associated with participating in the PRIME Study. These include risks of surgery such as infection or bleeding, the possibility of the implant not working as intended, and unforeseen side effects of the implant or surgery
Would You Implant This Into Your Head?
How Does Neuralink Work?
The company was founded in 2016, and seeks to eventually allow users to connect their neuralink device with a smartphone, keyboard, or mouse using an app. The implant operation will cost around $5,000, and general anesthesia is not necessary, neither is an overnight hospital stay as the surgery lasts around an hour. A little scar will remain after the surgery. The hardware itself will cost $200-$300 making getting a Neuralink an investment of around $5.3K. Neuralink is hoping their devices end up like laser eye surgery, referring to how up until recently the majority of people rejected laser eye surgery due to costs and public reception. Nowadays laser eye surgery is very common. Like laser eye surger, Nerualink hopes to become more cost-effective as economies of scale take effect.
A neurosurgical robot precisely places a brain-computer interface (BCI) implant in the brain region that controls the intention to move.
The implant consists of ultra-thin threads containing electrodes that sense electrical activity in neurons.
The electrodes pick up these electrical signals, which represent the brain’s intent to move.
The threads transmit these signals wirelessly to the Neuralink Application.
The Neuralink Application decodes the signals, understanding the intended movement.
Imagine Controlling Your Phone With Your Mind
What Does Neuralink Do?
Neuralink’s current and future capabilities are quite fascinating, spanning from immediate applications to ambitious long-term goals. Here’s a breakdown:
Current Capabilities:
Thought-controlled computer interaction: The initial focus is on enabling users to control a computer cursor or keyboard using their thoughts through the PRIME study. This could improve accessibility and communication for individuals with paralysis.
Data recording and analysis: The implant can record brain activity, providing valuable data for research and personalized medical applications.
Planned and Potential Capabilities:
Restoration of motor functions: Neuralink hopes to help paralyzed individuals regain control of their limbs or use brain-controlled prosthetics.
Sensory and visual restoration: Enabling people with sensory or visual impairments to perceive the world again is a potential future application.
Cognitive enhancement: Boosting memory, focus, and learning abilities is another long-term goal.
Brain-to-brain communication: The concept of “telepathy” through direct brain-to-brain communication is a theoretical future possibility.
Treatment of neurological disorders: Helping manage and potentially cure diseases like Parkinson’s, epilepsy, and depression is a high-impact potential use.
Nerualink Placement
Neuralink Animal Trials Backlash
Before being approved for human trials, Neuralink surgically installed implants into the skulls of pigs and monkeys during their animal trials period. In April 2021 they made headlines when it was revealed they had successfully taught a male macaque monkey named Pager to play the classic arcade video game Pong using the Neuralink implant. They did this by having the Neuralink chip feed information from the monkey’s neurons into a decoder, which predicted Pager’s intended hand movements so that the output from the decoder can be used to move the cursor with his mind instead of using a joystick.
The Physicians Committee for Responsible Medicine accused Neuralink of animal cruelty stating they “removed pieces of the skulls of rhesus macaque monkeys and inserted electrodes into the animals’ brains.” There was a lawsuit that also claimed the monkeys were not given adequate veterinary care and that they “killed monkeys by destroying portions of their brains”.
Neuralink Allowed Monkeys To Play Pong
Neuralink stated there was “one surgical complication involving the use of the FDA-approved product (BioGlue), and the monkey was euthanized” and that “two animals were euthanized at planned end dates to gather important histological data, and six animals were euthanized at the medical advice of the veterinary staff at UC Davis.” They also stated that they are “absolutely committed to working with animals in the most humane and ethical way possible”.
Musk wrote on X that “no monkey has died as a result of a Neuralink implant. To minimize risk to healthy monkeys, we chose terminal monkeys.” However there are rumors that neither of those statements were true due to reports from anonymous former staff members. One report stated, “Animal 15 began to lose coordination and staff observed that she would shake uncontrollably when she saw lab workers. Her condition deteriorated for months until the staff finally euthanized her. A necropsy report indicates that she had bleeding in her brain and that the Neuralink implants left parts of her cerebral cortex ‘focally tattered'”. With another one claiming, “We had these monkeys for a year or so before any surgery was performed” and calling Musk’s comments about the terminal monkeys as “ridiculous”.
Pros And Cons Of Nerualink
Neuralink promises to revolutionize healthcare, communication, and even our understanding of consciousness. But like any powerful technology, it comes with a hefty dose of potential risks and ethical concerns. Let’s weigh the pros and cons of Neuralink to get a clearer picture of its potential impact:
Pros:
Medical Marvels: Neuralink could restore movement and communication to paralyzed individuals, treat neurological disorders like Parkinson’s and epilepsy, and even enhance cognitive abilities. Imagine regaining control of your limbs or boosting your memory and focus – the possibilities are immense.
Communication Revolution: BCIs could enable direct brain-to-computer interaction, revolutionizing how we communicate and access information. Imagine controlling your devices with your thoughts, composing emails or creating art simply by thinking about it.
Unveiling the Brain: Neuralink’s data could unlock unprecedented insights into the human brain, its workings, and its potential. This knowledge could lead to groundbreaking advancements in neuroscience and medicine.
Cons:
Safety First (or Should It Be?): Implanting devices in the brain is a delicate and risky procedure. Potential complications include infections, tissue damage, and unpredictable long-term effects on brain function. Who gets to decide what level of risk is acceptable for potential benefits?
Privacy Paradox: BCIs collect vast amounts of brain data, raising concerns about privacy breaches, hacking, and misuse of this sensitive information. Who owns your thoughts when they’re recorded by a device in your head?
Equality Equation: Access to this transformative technology could exacerbate existing societal inequalities, creating a divide between those who can afford it and those who cannot. Will Neuralink widen the gap or bridge it?
Mind Control and Manipulation: The ability to directly influence brain activity raises ethical questions about potential manipulation of thoughts, emotions, and behavior. Could Neuralink be used to control or exploit people’s minds?
Neuralink’s potential is undeniable, but its development and implementation require careful consideration of the ethical and societal implications. Open dialogue, responsible development, and robust regulations are crucial to ensure that Neuralink’s benefits outweigh its risks. Only then can this technology truly live up to its promise of improving lives and advancing our understanding of the human brain. Remember, the future of Neuralink is still being written. We, as a society, have the power to shape its narrative and ensure that it benefits all of humanity. Let’s choose wisely.
Long Term Investors Outlook On Neuralink
Nerualink was valued at around $5 billion last June, and reported an annual income of $17 million back in October. Elon Musk is the largest investor in Neuralink with a $100 million investment. Craft Ventures, DFJ Growth, Dreamers VC, Future Ventures, and Valor Equity Partners are also Neuralink investors. From an investor’s perspective, Neuralink presents a fascinating mix of high-potential rewards and equally high-stakes risks:
High-Potential Rewards:
First-mover advantage: Others have made strides in this field, but Neuralink has invested the most amount of time and money into neurological integrations.
Disruptive technology: If successful, Neuralink could revolutionize healthcare, communication, and human augmentation, creating a massive market with diverse applications.
Strong leadership: With Elon Musk at the helm, Neuralink attracts significant investor interest and media attention, potentially boosting its valuation.
Intellectual property: Neuralink’s patents and proprietary technology provide a competitive edge and potential revenue streams through licensing or partnerships.
High-Stakes Risks:
Long-term development timeline: Bringing Neuralink to market might take years, requiring sustained investor patience and capital commitment. The complex nature of BCI technology and the stringent regulatory environment require substantial investments in research, development, and clinical trials.
Uncertain regulatory landscape: BCI regulations are still evolving, posing potential hurdles for product approval and commercialization.
Ethical concerns: Public anxieties around privacy, data security, and potential misuse of BCIs could damage investor confidence and brand reputation.
Competition: Other BCI companies and established tech giants are vying for a share of the market, intensifying competition and increasing investment risk.
Neuralink is not a public company, like Boxabl which we spoke about recently, so common investors will have to wait until the IPO to invest in the company. Elon Musk also currently doesn’t have any plans for a Neuralink IPO. Elon Musk’s other company Space X is now valued at around $150 billion, and he still hasn’t mentioned any plans to take it public. One would assume Elon would take Space X public before Nerualink, and rumor has it SpaceX might IPO their satellite internet business Starlink, but before 2025. However there are ways for investors to try to gain exposure to Neuralink:
Tokenized Stocks: On Orderbook you can trade Neuralink’s tokenized stock. These are digital assets backed by Nerualink’s actual shares 1:1 known as “tokenized”.
Invest In Tesla: Elon Musk owns Tesla, Twitter (X), SpaceX, Neuralink, and his tunnel construction company called “The Boring Company“. In 2022 Elon was asked if he would ever lump all of his companies together into one public traded entity. He said he was unsure and saw no reason to do that anytime soon. It seems unlikely that Neuralink and Tesla would ever be under one parent company, but it wasn’t completely ruled out.
Invest In Alphabet (Google): Alphabet $GOOGL is an early investor of Neuralink via its venture capital arm “Google Ventures”. Investing in Alphabet could be a way to gain indirect exposure to Nerualink. That being said the stake Alphabet has in Neuralink is minuscule compared to the overall size of Alphabet’s business. Check out our most recent $GOOGL trade.
Wait For Neuralink to IPO: Another option is to just set aside money in hopes that Neuralink IPO’s soon. This could be years away, or maybe even never come. That’s why having cash on the side is such an important part of a PB Trading Plan.
Tesla $TSLA Drops After Delaware Judge Tosses Out Elon Musk’s Record-Breaking $56 Billion Tesla Pay Package
Elon Musk faced a significant setback as a Delaware judge, Chancellor Kathaleen St. J. McCormick, invalidated the controversial pay package that had contributed to Musk’s billionaire status. This ruling shed light on what the judge deemed as a deeply flawed process, where Musk effectively played a role in determining his own compensation, valued at around $50 billion.
The compensation plan, initially devised in 2018 by Tesla’s board, promised Musk substantial rewards only if the company achieved exceptional results and its stock price soared. However, a group of Tesla shareholders contested the package, which ultimately granted Musk the right to acquire approximately 304 million Tesla shares at a predetermined price if certain financial goals were met. The total worth of the package, split into 12 separate grants, amounted to about $51.1 billion at Tesla’s closing share price today.
Chancellor McCormick’s ruling declared the compensation plan void, emphasizing its excessive nature. This decision has broader implications, potentially serving as a warning to other companies that grant their top executives exorbitant pay packages. While Musk achieved all 12 goals, the judge mandated that excess pay be returned, leading to a potential reduction in Musk’s wealth and his stake in Tesla, currently standing at about 13 percent.
The lawsuit, culminating in a trial in November 2022, gained significance after Musk’s controversial acquisition of Twitter in October of the same year. Critics argue that Tesla lacks sufficient checks on Musk’s behavior, with a board comprised of individuals closely associated with him. The decision also raises questions about Musk’s recent demand for a larger stake in Tesla, which the board has not publicly addressed.
Chancellor McCormick highlighted that Musk’s ownership stake in Tesla, amounting to 22 percent before the compensation package (it is around 13% without it), already provided significant incentives for transformative growth. The ruling, subject to appeal, underscores the need for transparency and fairness in executive compensation, with potential repercussions for companies beyond Tesla. Investors and the broader financial community will keenly watch how Tesla navigates this setback and addresses Musk’s demands for an increased stake in the company. Tesla’s stock reacted by dropping 2.5% in after hours. Elon also suggested that he might move Tesla’s state of incorporation from Delaware to Texas, home of its physical headquarters.
What Our Exclusive In-House Analysts Think Of Neuralink & Tesla
I asked out exclusive in-house analysts what they thought of Elon Musk’s companies from an investor’s perspective:
“Taking a look at $TSLA today, if we pop a fib retracement on the chart, we hit exactly the 50% level then saw a hard rejection, If the bulls want to continue reversing this from last weeks lows, we need to get above $200 quickly otherwise it’s like to come back into the mid to low $180s again soon! Indicators are showing weakness and bearish sentiment, at least short term.
Looking at some fundamental indicators:P/E ratio is currently at 44 and forward P/E ratio is currently at 43. These simple indicators imply $TSLA could be overpriced at current levels.” -Mad Maverick
$TSLA
SwingingBull:
“A bullish outlook for Neuralink could be based on several key factors. Firstly, positive technological advancements, such as successful human trials or enhancements in the capabilities of brain-machine interfaces, would likely drive investor confidence. Additionally, swift regulatory approvals for Neuralink’s products and technologies are crucial for their progress, and a bullish scenario might involve favorable regulatory decisions facilitating the company’s plans.
Moreover, market expansion plays a significant role in the stock’s potential growth. If Neuralink successfully identifies and taps into new markets or applications for its innovative technology, it could experience substantial financial gains. Strategic partnerships and collaborations with established companies in related industries would also be viewed positively, as they could enhance Neuralink’s credibility and open new avenues for growth.
Financial performance is another key aspect that investors would consider. Meeting or exceeding financial expectations, achieving profitability, or securing significant funding would contribute to a bullish sentiment surrounding Neuralink.
Lastly, public perception and adoption of Neuralink’s technology are critical factors. A positive public outlook, coupled with an increasing interest or adoption of brain-machine interfaces, would likely strengthen Neuralink’s position in the market and contribute to a bullish scenario for the stock.” -SwingingBull
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PookiesRevenge:
“I know a lot of people are fearful of new tech, especially things which go into the human body, but we’ve been using implants, prosthetics, and even neurological interfaces for a long time. It’s just part of evolving technology and I’m looking forward to it (cautiously, of course) and the kinds of impacts it can have on our society. This company may pave the way, but that will open the avenue to other, better companies and inventors and that’s our advantage as a species.” -PookiesRevenge
“Decent hold of that 181.95 level, mentioned in November of last year. For this to get back to being somewhat bullish in the bigger picture we need to get above 217.65 with a weekly candle close. If not, then my expectation is that eventually the 181.95 is going to fall out, and that we make our way back down to the 152.37 level.”-BTC_JAY
Option 2: Bearish Entry: Strong break below $181.95 (safer entry would be waiting for retest of $181.95 as resistance) Targets: $161, $152.37 Stop Loss: $170.03
This upcoming week is one of the busiest of the quarter for investors and traders of the Stock Market. We have earnings from five of the “Magnificent Seven” tech stocks, over 100 S&P 500 companies reporting earnings, a Fed Meeting, and the January jobs report.
Magnificent Seven Earnings
The term “Magnificent Seven” in the stock world refers to a group of seven high-performing stocks in the technology sector that are very influential to the overall market. The phrase was coined by Bank of America analyst Michael Hartnett last year. The seven stocks are Apple $AAPL, Alphabet (Google) $GOOGL, Microsoft $MSFT, Amazon $AMZN, Nvidia $NVDA, Tesla $TSLA, and Meta (Facebook) $META.
We Took $META From $355.15 Up To $384.33 From Our Latest Blog Trade Idea For $META. We Are Currently Up On Our Trade From $384.33 (Currently Over $400)
These companies are at the forefront of the Artificial Intelligence, Electric Vehicle, cloud computing and digital services sectors. They are known for adaptability, financial health, global reach, brand recognition worldwide, and a strong market position in their sectors. With technology growing at the rate it has been since the Internet, these stocks are known as “recession proof” to some analysts. In November 2023 King Lip of BakerAvenue Wealth Management said, “They are the highest quality names out there, and frankly, if we do go into a recession next year… I actually think the Magnificent Seven will hold up better.
We Have A Current Trade Idea For Amazon From One Of Our Past Blogs
The five reporting earnings this week are Apple, Google, Microsoft, Amazon and Meta. Julian Emanuel from Evercore described these five earnings as “critical for overall market direction”
The Federal Reserve Board is set to announce its latest policy decision on Wednesday afternoon. Back in December when inflation was still near a 40-year high, it seemed everyone had expectations for a March rate cut. Investors were aggressive to price in a March cut, but have since scaled back that thinking, as economic date since then has surprised investors to the upside. Job growth continued, consumer spending held strong, and GDP growth remained robust.
Headline inflation dipped significantly, falling below 4% and marking its lowest level in nearly three years. This lessened the immediate pressure on the Fed to prioritize inflation control. As evidence mounted that the economy was handling tighter monetary policy better than expected, some investors started questioning the necessity of a March cut.
Despite the shifting narrative, some economists still argue for imminent rate cuts. Even with declining inflation, it remains above the Fed’s 2% target. Many economists believe the Fed won’t rest until inflation is closer to that goal. Some argue the current high-interest-rate environment is unnecessarily restrictive, potentially hindering economic growth in the long run. They advocate for a gradual easing to find a more sustainable balance. While job growth shows resilience, some signs of weakening in the labor market, like slower wage growth and declining job openings, have fueled concerns about a potential slowdown. This could push the Fed towards easing sooner.
“Labor markets have cooled, and inflation has come down more rapidly than expected absent a large rise in unemployment, but we don’t think the Fed is ready to send a strong signal about its intentions just yet” said Bank of America economist Michael Gapen. It seems he believes the Fed is buying time to see more data, some of which will come in the days following the Fed meeting.
We Will Be Streaming Our Thoughts On The Fed Meeting 2:30PM EST On Wednesday On Our Discord
8:30 AM EST on Friday is when the January jobs report is scheduled for release. While recent news has been dominated by layoffs, economists don’t expect the January jobs report to reflect a widespread slowdown in the labor market.
Job growth: Economists predict around 175,000 new nonfarmpayroll jobs added in January, down from 216,000 in December.
Unemployment: The unemployment rate is expected to tick up slightly from 3.7% to 3.8%.
Normalization: Economists see signs of the labor market “normalizing,” with improving supply (more workers), cooling demand (less hiring), and slower overall job growth.
Moderation ahead: Even if January’s numbers are decent, experts anticipate further moderation in future months due to decreasing hiring from various industries and declining job openings/hiring plans.
If this is plays out, the January jobs report might not fully reflect the recent layoff headlines, but it might show the first signs of a slow-down in the previously booming labor market. While new jobs are still being created, the pace is expected to gradually decrease over the coming months. Layoffs in certain sectors, like tech, might not be representative of the entire labor market. It’s important to note that continued job growth even with some moderation is still a positive sign for the economy. This information is based on predictions from economists and Bloomberg data. The actual January jobs report is not yet released.
See What Our CEO Austin Thinks About The Upcoming Week
Other Economic Data To Watch This Week
This week is jam-packed with economic releases, offering vital insights into the health of the US economy. Here’s a quick rundown of the key events:
Tuesday: The Conference Board’s consumer confidence index takes center stage, revealing how Americans feel about their finances and the economy. Investors will be watching closely for any signs of optimism or pessimism, potentially impacting market behavior.
Wednesday: The ADP private payrolls report provides an early glimpse into the official nonfarm payrolls data coming Friday. This indicator offers crucial clues about the job market’s health and the Fed’s future policy decisions. There is also the Fed Meeting we talked about above.
Thursday: The initial jobless claims report and the ISM manufacturing index offer further insights into the labor market and manufacturing activity, respectively. Both indicators are closely tied to economic growth and can influence market sentiment.
Friday: The grand finale arrives with the nonfarm payrolls report, the crown jewel of economic data releases. This report reveals the number of jobs added in the US economy last month, a key metric for assessing economic strength and the Fed’s policy stance.
Bonus: While not as impactful as the headliners, Monday’s Dallas Fed manufacturing and services activity readings, along with Thursday’s Challenger job cuts and construction spending data, can provide additional color about specific sectors of the economy.
These data releases will paint a clearer picture of the US economy’s trajectory. Positive data could signal continued growth and solidify the Fed’s hawkish stance on interest rates. Conversely, weaker data could raise concerns about a slowdown and potentially prompt the Fed to shift its policy stance.
We Will Be Streaming Our Thoughts On The Fed Meeting Wednesday 2:30PM EST On Our Discord
We already talked about Apple, Google, Microsoft, Amazon and Meta’s earnings this week. There are also a lot of other key companies outside of “The Magnificent Seven” that have earnings coming up. In all, 106 S7P 500 companies (20% of S&P 500 stocks) are set to report earnings this week.
Tuesday: Advanced Micro Devices (AMD), Alphabet (GOOGL), Electronic Arts (EA), General Motors (GM), JetBlue (JBLU), Juniper Networks (JNP), Match Group (MTCH), Marathon Petroleum Corporation (MPC), Microsoft (MSFT), Pfizer (PFE), Starbucks (SBUX), UPS (UPS)
Wednesday: Aflac (AFL), Boeing (BA), Hess (HES), Mastercard (MA), MetLife (MET), Novo Nordisk (NVO), Phillips 66 (PSX), Qualcomm (QCOM)
Thursday: Apple (AAPL), Amazon (AMZN), Deckers Outdoor (DECK), Honeywell (HON), Meta (META), Merck (MRK), Royal Caribbean Group (RCL), Peloton (PTON), SiriusXM (SIRI), Skechers (SKX), Tractor Supply (TSCO), The Clorox Company (CLX), United States Steel (X)
Friday: Chevron (CVX), Exxon Mobil (XOM), Charter Communications (CHTR)
We Are Live Streaming Our Thoughts On The Tuesday And Thursday Earnings Plays 4PM EST In Our Discord
What Our Exclusive In-House Analysts Think About This Week’s Earnings Plays
I asked a few of our Exclusive In-House Analysts what they think about the companies that have earnings this week. Here’s what they said:
Ethan:
$AAPL- Could run into some trouble with the recent lawsuits they have had. I think Iphone sales havent been as high as they used to be since the new phone didnt offer a whole lot of new innovations. Their VR headset was very pricey and they havent sold many of them. I would expect a down move on AAPL, but you have to factor in holiday sales. Maybe they get a boost in revenue into the end of the year when people are buying gifts.
$GOOGL- Recently they have been pushing into the AI space. I would think they do good on earnings. They have been pushing all time highs and may continue with the ability to short squeeze if we do gap up when the number comes out.
$MSFT- Also been really pushing into the AI space. They have partnered with NVDA as well and have been pushing all time highs with the other names. I think it is likely they gap up as well. But this is all speculation, it will come down to the numbers and what they say for guidance on their earnings call.
$AMZN- Something that usually does good on Q4 earnings simply do to holiday spending. They broke records this year on black friday and cyber monday and im sure there was plenty of buying through them for christmas and the holiday season in general. This to me is the highest odds of pushing higher. I won’t be playing the earnings, but will watch the fallout for trades. We could use some pullback to keep this “healthy” but I wouldn’t be surprised if we see $170 over time with positive earnings.
$META- Instagram, Snapchat both seeing some innovation on the ad space. Influencers really pushing the snapchat side of things. META specifically is also diving into the AI space also partnering with NVDA so definitely a chance to see some good earnings and for this to squeeze through all times highs some more.
$AMD- AI innovations would not be surprised to see some good news out of them.
$XOM- oil/gas prices have come down from where we were at the start of 2023, so I would think this would hurt their margins. This is something I think we see a sell off on unless they miraculously beat earnings unexpectedly. You also have the factor that more electric cars are being used than ever before, so less people are buying gas.
$BA- has to have some good news here or this stock could really slip up. With the recent news on Alaska Airlines with them, we are at a dangerous spot for the stock technical wise. If they dont unexpectadly come out with some good news, we could easily see a big drop here with the negativity surrounding the name.
Ethan Live Trades Every Tuesday And Thursday Market Open
SwingingBull:
Out of these stocks, 3 stick out to me as ones that I am bullish on long-term:
$AAPL – Apple is at the forefront of innovation with its groundbreaking products like the iPhone, iPad, and Mac. The company’s commitment to pushing technological boundaries ensures a promising future.
$GOOGL – Google’s search engine is an absolute powerhouse, with an unrivaled market share. In the digital age, where information is key, Google’s dominance positions it for continued success.
$MSFT – Microsoft Azure is a major player in the cloud computing industry. With the ever-growing demand for cloud services, MSFT is well-positioned for continued success and innovation.
SwingingBull Will Be Live Streaming 4PM EST Discussing $GOOGL, $MSFT and $SBUX Earnings On Tuesday and $AMZN, $AAPL, and $META Thursday!! Check Out His Latest Earnings Stream
PookiesRevenge:
I think the “Magnificent Seven” are going to take a bit of a backseat this year, personally, while there are other factors at play. I personally don’t like $AAPL, we trade $GOOGL quite a bit and it’s levels are delicious, $MSFT is always a goodie in my opinion (especially for long-term holds and dollar-cost-averaging in), $AMZN may experience some hits pretty soon as their competition steps up but their estimates aren’t too terrible so I don’t see them having issues beating, and $META is always going to be a personal non-favorite for me.
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One Long-Term Stock To Watch
Speaking of earnings plays $SOFI is one that our in-house analysts are personally bullish on long term. They just had earnings today and shot up 20% from the $7.75 range to the $9 range.
SoFi Technologies, Inc. is a digital financial services company that operates in three segments: Lending, Technology Platform, and Financial Services. The company’s revenue is primarily generated from lending, with 63.47% of total revenue coming from this segment, followed by Financial Services at 20.21% and Technology Platform at 16.32%.
In terms of profitability, SoFi has a gross profit margin of 81.29%, but it has a negative net profit margin and pre-tax profit margin, indicating that the company is currently operating at a loss. Looking at the company’s forward valuation, the forward P/E ratio is quite high at 194.88, which suggests that the market has high expectations for future earnings growth.
In recent filings, SoFi has highlighted its focus on scaling its products through increased brand awareness and network effects, with the goal of achieving contribution profit positivity in its segments by the end of 2023 and beyond. The company also emphasized the importance of deposit funding in providing stability during macroeconomic volatility and mentioned its Tier 1 capital ratio, which was 14.3% as of September 30, 2023.
However, the company also acknowledged potential challenges, such as the impact of rising interest rates on demand for refinancing loan products and the potential negative effects of economic and market volatility on its liquidity, results of operations, and financial condition. Overall, SoFi is working to diversify its business and endure through market cycles, but it faces challenges related to market conditions and profitability.
Strengths:
Strong gross profit margin: The high gross profit margin of 81.29% indicates efficient operations and potential for significant profitability in the future.
Focus on scaling: SoFi’s commitment to increasing brand awareness and network effects could drive user growth and revenue in the long term.
Solid capital position: The Tier 1 capital ratio of 14.3% suggests stability and resilience against potential financial hardships.
Weaknesses:
Negative profitability: Currently, SoFi operates at a net loss, highlighting the need for improved cost management and revenue generation.
High valuation: The forward P/E ratio of 194.88 implies significant risk, as the market expects high future earnings to justify the current stock price.
Vulnerability to market conditions: Rising interest rates and economic volatility could negatively impact loan demand and SoFi’s overall financial performance.
Read Above To See Why We Are Watching $SOFI And Check Out Our Trade Idea Below
How Our Exclusive In-House Analysts Are Trading This Stock
We are bullish on $SOFI, however they just shot up 20% on earnings. We wouldn’t be surprised if we get a little pullback here before going back up again. We will have a bullish trade idea for pullback as well as for a breakout.
Trade Idea #1: Bullish Pullback Entry: Break below $8.48 followed by a 4H candle close back above Targets: $9.19, $9.45, $10.48, $11+ Stop Loss: Below low that was formed before 4H candle close back above $8.48
Carnival Cruse Line Had To Ban A Passenger For Life Recently
Carnival Cruise Line Bans Female Passenger For Life Following Dangerous Viral Balcony Stunt
On December 30th a passenger aboard the Carnival Jubilee cruise ship decided to climb over their obstructed view balcony onto the roof of a common area below, while the ship was sailing. A fellow passenger filmed them and posted it as a TikTok video. If the ship made a sudden movement or there was a strong gust of wind, that incident could have ended in a very avoidable accident. “Our security team on Carnival Jubilee identified the guests involved in this matter, and those guests will no longer be sailing on Carnival ships. The safety of everyone on board is our priority and we do not tolerate this behavior.” Carnival didn’t say whether or not they caught the passenger in the act, or found her after it happened, but according to their statement they clearly banned her for life.
Imagine Being Banned For Life From Carnival Cruise Lines?
According to their contract with passengers, they had every right to do so as it states, “Any Guest whose conduct affects the comfort, enjoyment, safety, or well-being of other guests or crew will be detained onboard and/or disembarked at their own expense and will be prohibited from sailing with Carnival in the future.” It also mentions a $500 fine. One commenter of the video said, “I mean, climbing over the balcony on a cruise that’s out in the middle of the ocean is just a good way to thin out bad genes.” While another stated, “Best way to get banned from Carnival”.
Carnival Cruise Lines took a huge hit during the pandemic. They had high fixed costs, but weren’t allowed to sail. Money was still coming out, but not coming in. Through no fault of their own, their long-term debt soared from around $11 billion to over $25 billion in a matter of months due to COVID restrictions. They were stuck in survival mode during the pandemic.
The Pandemic Hit Cruise Lines Hard
Now they are allowed to sail again, and their management said they’re targeting “investment-grade leverage” by 2026. In the context of Carnival Cruise, “investment-grade leverage” refers to the company’s debt level relative to its ability to generate earnings (profits). It’s an important metric used by credit rating agencies to assess the financial health of a company and its risk of defaulting on its loans.
Leverage: This term simply refers to the amount of debt a company uses to finance its operations. It’s expressed as a ratio, typically debt-to-equity or debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization).
Investment-grade: This refers to a high credit rating from agencies like Standard & Poor’s (S&P) and Moody’s. Companies with investment-grade ratings are considered less likely to default on their debt, making their bonds more attractive to investors.
Carnival’s goal of achieving “investment-grade leverage” by 2026 means they want to reduce their debt level or increase their earnings (or both) to a point where credit rating agencies would consider them worthy of an investment-grade rating. This would make it easier and cheaper for them to borrow money in the future.
Carnival’s debt levels increased significantly during the pandemic due to canceled cruises and lost revenue. This caused their credit rating to be downgraded to non-investment grade, making it more expensive for them to borrow money.
Achieving investment-grade leverage would be a significant step for Carnival’s financial recovery. It would demonstrate to investors that the company is on the right track and improve its access to capital.
However, it’s important to note that achieving this goal will not be easy. Carnival will need to carefully manage its finances and continue to improve its operating results.
Carnival didn’t specify an exact number that they consider “investment-grade” by 2026, however they are already down $4.6 billion in debt from its peak. Management is making progress, but they still have a long way to go to hit their 2026 goal. According to reports Carnival booked 3.5 million new customers in 2023. The Cruise Lines International Association’s data says that 85% of people who take a cruise say they want to take another in the future. So out of their 3.5 million new customers, that’s around 3 million customers that are going to want to come back, and that’s just counting the new customers from 2023. This is good news for Carnival Cruise, but does that make $CCL a buy? Well it is important to keep in mind they will be redirecting a heavy amount of cash flow towards its debt in coming years. We will hear more about $CCL later on in this article from our Exclusive In-House Analysts, as well as a trade idea at the end!
Carnival Cruise Lines Had 3.5 Million NEW Passengers In 2023
Carnival Cruise Line’s Per Capita Sexual Assault Rate Is Actually Higher Than The Majority Of U.S. States
One of the big findings is that Carnival Cruise Line’s per capita sexual assault rate is higher than 27 U.S. States. Carnival Cruise reports 42 sexual assault cases per 100,000 people. New York’s is 29.4 per 100,000, Florida is 30, and California is 37.4. The average in the US is 40 per 100,000 people.
According to DOT there were 131 alleged sexual assault crimes in 2023 on all cruise ships that use U.S. ports, up from 89 from 2022. Carnival Cruise Line had the most out of any of the other cruise lines with 45 in 2023. This means that in theory, people have more of a chance of getting sexually assaulted on a Carnival Cruise ship than they do in the majority of U.S. states.
According To Data There Is A Greater Chance Of Sexual Assault Aboard Carnival Cruise Lines Than In The Majority Of U.S. States
7 Common Dining Mistakes Cruise Ship Passengers Make
Carnival Cruise Lines alone had 3.5 million brand new passengers in 2023. When people are told they can’t have something, that’s when they want it. Cruise Lines shut down during the pandemic, and now that they are opening up again there has been an influx of new cruise-goers flooding the market. These new cruise-goers might not know how cruises work, in particular the dining. Here are 7 common mistakes cruise ship passengers make regarding dining, so that you don’t end up making these mistakes on your next cruise!
Not looking into the complimentary room service breakfast options: Most cruise lines have an option for complimentary room service for breakfast. On some cruises this option comes with a service charge, for instance on Virgin Voyages the charge is $5.00 per order. While you might not have as many options as you would in the ship’s buffet’s or restaurants, it’s a nice convenience have your breakfast and coffee delivered to your room first thing in the morning, saving you both time and energy. Plus you can eat while you prepare for the day!
Not knowing about the breakfast and lunches in the Main Dining Rooms: Some cruise-goers think that the Main Dining Room is open for just dinner, but that’s not the case! You can enjoy breakfast, lunch, or brunch in the Main Dining Room and skip the buffet line and crowded seating. For example, Carnival Cruise is known for their “Sea Day Brunch” in the Main Dining Room. Be sure to check your cruises daily schedule to see when the Main Dining Room is open on your cruise.
Not trying new foods: Even if you are a picky eater, cruises are the best place to try new food options, especially ones from different cultures. It’s also recommended to have at least one meal ashore so that you can try the local food, while the cruise ship is in port.
Not doing the research ahead of time: Some cruises have 20+ dining options, while some of the older ones have only 3-5. If you are a foodie, make sure to research the cruise’s meal options before booking so you aren’t disappointed. Are you looking for a cruise with buffets? One with fast-casual options? Fancy restaurants?
Not giving yourself enough time to eat: If you decide to eat at a restaurant or the Main Dining Room, you might not be “in and out” as fast as you may hope. For example if you have an event at 9PM, you shouldn’t arrive in the Main Dining Room at 8:30PM. Instead you can consider eating dinner at the buffet instead. Eating at these cruises can be just as much of an experience as the events and sight seeing, so make sure to make time for it!
Picking the wrong dining option: For some cruises you will have to decide whether you want to eat at a set time each evening, or have a more flexible dining schedule. If you choose an assigned time you can pick an earlier seating which is typically between 5PM-6PM, or a later seating which is typically between 7:45PM-8:30PM. This option typically comes with an assigned table and wait staff each night. The relaxed finding option means you won’t have an assigned table and wait staff, you’ll sit where there is availability. Some flexible dining options will allow you to make reservations in advance, while some just have you check in when you are ready to eat.
Not understanding the Main Dining Room ad-ons: If you decide to take advantage of the complimentary Main Dining Room options, it’s important to be aware that not everything on the menu in the Main Dining Room is included in your cruise fee. For example Royal Caribbean ships charge $16.99 for a Maine lobster tail, $19.99 for Chops Grille filet, and $34.99 for surf & turf. Carnival Cruise Line charges $5 extra if you order a third entrée.
Do You Prefer Restaurants, Buffets, Or Room-Service?
What Our Exclusive In-House Analysts Think About Carnival Cruise Lines $CCL
I asked our exclusive in-house analysts from our discord what they thought about $CCL. Here’s what they had to say:
$CCL Is Reading Bearish In The Weekly Timeframes And Lower On StocksBuddy
“Over the last 10 years, CCL is down over 75% from its high in 2018. COVID was the killer of all cruise ship companies, demolishing stock prices since travel was prohibited. However, CCL is trading on a major discount that could offer an incredible buy spot for the coming years. After COVID, we have faced massive inflation which has also kept travel as a whole still muted for the most part. With the summer months roughly 6 months away, CCL could be something to keep an eye on for the short term and the long term if inflation comes down and travel booms back to normal levels, when the cost of things comes back down to normal levels.”-Ethan
Ethan’s $CCL Chart
Technical Analysis $CCL Breakdown From Austin:
“RSI crossed over to sell-side momentum, however it has not yet dipped below 50 on the weekly chart. This indicates that there may still be hope for bulls expecting this stock to level out and remain bullish. StocksBuddy indicator has flashed a “Bear Signal” when the stock broke down below $19/share. Following that signal, Carnival Cruise Lines stock would need to break back above $18 and stabilize to continue any bullish momentum moving forward into our next couple stock trading sessions. Strong trend support lies around $13/share, if bears take control of $CCL stock price – we could see lows in that range.”-Austin
Austin’s $CCL Chart
Fundamental Analysis $CCL Breakdown From Mr.SLP
“Let’s dive into the basics of $CCL’s performance and understand what’s happening behind the scenes! Carnival Corporation & plc provides leisure travel services globally, including in North America, Australia, Europe, Asia, and beyond. After facing challenges during the COVID-19 pandemic, Carnival has made a strong comeback so far. While revenue growth took time to recover since 2020, it has now exceeded 500%, soaring from $1.9 billion to $12 billion between 2021 and 2022. However, there’s a concern in their recovery journey – the substantial increase in debt that incurred during the COVID pandemic. When cruises were halted, debt piled up, and capital raises became necessary for survival. Examining the debt situation, total debt in 2019 was $19 billion, which was manageable due to outweighing assets. Fast forward to today, and it’s at $35 billion. The critical question is how they plan to reduce this debt, especially with impending due dates. Time will reveal the outcome. Now, let’s consider some valuation measures. The Trailing P/E ratio is 5.99, suggesting the stock might be undervalued, presenting a potential long-term bargain. The Forward P/E is 15.70, indicating an expectation of increasing earnings over time. Overall, the stock could be a strong long-term choice if they effectively manage and reduce their debt. In the short term, a cautious approach may be wise, waiting for selling pressure to subside. Key support levels to monitor are $15, $14, and the strongest at $10. If looking for a possible reversal, consider resistance levels above $17, aiming towards $19.” –MrSLP
$CCL
Options Chain $CCL Breakdown From SwingingBull
“Before considering trading options on Carnival Cruise Line ($CCL), it’s crucial to conduct thorough research. The other analysts have done a detailed company and chart breakdown on $CCL, which would be the first steps. Next I like to look at Volatility. The ATR on the monthly is at lows that haven’t been seen since 2015. That was right before it made it’s run from the $30’s to ATH in $70 range.”-SwingingBull
“I don’t expect it to hold at these levels, personally, so I’m bearish down to below $15. This one’s nice and cyclical.”
PookiesRevenge’s $CCL Chart
How Our Exclusive In-House Analysts Are Trading Carnival Cruse $CCL
BTC_Jay’s $CCL Chart And Trade Set-Up
“This thing needs to get above the $185.55 level for me personally. It’s currently trading in the $16’s. This is in a monthly downtrend still. If we get above $18.55 I like this for a “Rest and Retire” long term type of play to $32.21, with a stop loss below $14. If it comes down we have $15.03 and $14.17 as my personal levels of interest and relevant high timeframe support. A move below either of these levels followed by a 4H candle close above would be my signal for a long entry, per the trading technique we teach in the discord. The exact stop loss will be for that position, that depends on how low we have gone before closing a 4H back above. If this, in the bigger picture, ever breaks back above $33.46, I think it could go a lot higher at that point. For now it’s really important to remain cautious for the bigger overarching monthly downtrend.” -BTC_JAY
Check Out Jay’s Technical Analysis Strategy We Teach In The Discord
Option 1: Bullish Entry: 4H close above $18.55 Targets: $32.21+ (long term hold, or you can take profits on the way for shorter swings) Stop Loss: Below $14
Option 2: Bullish Entry: Watching for break below $15.03 followed by a 4H close back above Targets: $18.55, $32.21 (taking profits on the way) Stop Loss: Below $14 or the low that was formed after the break below $15.03
Option 3: Bullish Entry: Watching for break below $14.17 followed by a 4H close back above Targets: $15.03, $18.55, $32.21 (taking profits on the way) Stop Loss: Below the low that was formed after the break below $14.17 (depending on how low we have gone before closing back above)
