- 3 Big Scoops
- Posts
- Apple Surges to Record High
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,375.32 ( ⬆️ 0.27%)
Nasdaq Composite @ 17,343.55 ( ⬆️ 0.88%)
Bitcoin @ $67,385.11 ( ⬇️ 0.42%)
Hey Scoopers,
Happy Wednesday! Ready to tackle the midweek hustle?
👉 Apple stock pops 7%
👉 Oracle bags cloud deal with Google and OpenAI
👉 Will a Solana ETF launch soon?
So, let’s go 🚀
Market Wrap 📉
Indices such as the S&P 500 and Nasdaq Composite closed at fresh record highs driven by Apple. It seemed investors booked profits in AI juggernaut Nvidia and rotated into Apple, widely considered an emerging AI play.
Moreover, the Federal Reserve will end its two-day policy meeting today with an interest rate decision followed by a press conference featuring Jerome Powell.
While there are indications that the economy is slowing, the U.S. central bank is unlikely to cut interest rates today.
In fact, a stronger-than-expected May jobs report might suggest that interest rates would be cut just once in late 2024.
Trending Stocks 🔥
Paramount- Shares of the entertainment company fell almost 8% after the proposed acquisition by Skydance appeared to fall apart. National Amusements is the controlling shareholder of Paramount, and it failed to reach a deal with Skydance.
Rubrik - Shares of the cloud data management company advanced 1.5% in pre-market after it beat Q1 revenue estimates. It reported revenue of $187 million, higher than estimates of $172 million.
Affirm Holdings - The fintech stock popped 11% following the announcement that its buy now, pay later loans will be embedded into Apple Pay as an option for purchases.
Apple Gains Pace
Apple shares rose 7% to a record high of $207.15, a day after the hardware giant announced a much-awaited push into AI at its annual WWDC event.
Source: CNBC
Apple unveiled AI features at the event, including the overhaul of Siri, its integrated voice assistant. It also stated that ChatGPT will be available on its latest iPhones while introducing writing assistance tools and new customizable emojis.
Apple’s latest AI features might position the company with a differentiated consumer digital agent that could drive users to upgrade their iPhones, accelerating device replacement cycles.
Several analysts remain bullish on Apple as the recent AI developments indicate a multiyear upgrade cycle with potential for gross margin upside and higher services growth.
Oracle Misses Estimates
Shares of software giant Oracle are up 9% in pre-market trading despite missing consensus Q4 estimates after the software maker announced cloud deals with Google and OpenAI.
In fiscal Q4 of 2024 (ended in May), Oracle reported:
👉 Revenue of $14.29 billion vs. estimates of $14.55 billion
👉 Earnings per share of $1.63 vs. estimates of $1.65
While sales rose 3% in Q4, its cloud services and license support segment generated $10.23 billion, up 9% from the year-ago period.
Oracle’s cloud infrastructure revenue stood at $2 billion, up 42% year over year but slower than the 49% growth rate in Q3. The cloud business is much smaller than Amazon Web Services and Microsoft Azure, but it is growing at a rapid clip.
The software giant announced it would bring its database to Google Cloud, allowing enterprises to deploy workloads in Google and Oracle Cloud without being subject to data-transfer charges. Oracle inked a similar partnership with Microsoft Azure last September.
Oracle also announced that it is partnering with Microsoft and OpenAI to deliver supplemental computing capacity, which has excited investors.
Is BlackRock Filing a Solana ETF?
The SEC has greenlit spot ETFs for Bitcoin and Ethereum this year, and crypto punks are now wondering who is next in line.
According to the above tweet, a Solana ETF might be next, given rumors that BlackRock has started an application process for it. Solana is the fifth largest cryptocurrency globally, valued at $70 billion by market cap.
However, the road to an ETF might be pretty tricky as a spot ETF for Bitcoin and Ethereum was approved two years after the launch of a futures ETF.
Moreover, the SEC considers Solana a security in ongoing court cases with Coinbase and Kraken, which might hamper its ETF launch.
Headlines You Can't Miss!
IEA warns of significant oil oversupply by 2030
Apple Vision Pro to debut in Japan and Singapore
The global gender pay gap might take 134 years to close
Elon Musk drops lawsuit against OpenAI and Sam Altman
Bitcoin open interest stays over 35%
Chart of The Day
Starbucks stock has returned 866% to shareholders in the last two decades after adjusting for dividend reinvestments. Comparatively, the S&P 500 index has returned 588.6% in this period.
A key driver for Starbucks is the company’s focus on new store openings. Between 2005 and 2023, it increased its store count from 10,241 to 38,038, indicating an annual growth rate of 7.6%.
China has moved the needle significantly for Starbucks as store count in this region has grown by 21.3% annually in the past 18 years.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.