🗞 Broadcom Stuns Wall Street

as AI revenue triples in Q4

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Bulls, Bitcoin, & Beyond

Market Moves Yesterday

S&P 500 @ 6,051.25 ( ⬇️ 0.54%)

Nasdaq Composite @ 19,902.84 ( ⬇️ 0.66%)

Bitcoin @ $100,002.23 ( ⬇️ 1.47%)

Hey Scoopers,

Happy Friday! Here’s what we’re covering today 👇

👉 Broadcom smashes Q4 estimates

👉 ServiceTitan surges on IPO debut

👉 JPMorgan bullish on Celsius

So, let’s go 🚀

Market Wrap

Stock indices declined Thursday following a higher-than-expected inflation report and disappointing tech sector news.

Key Market Drivers:

  • Producer Price Index: +0.4% monthly vs. +0.2% expected

  • 10-year treasury yield reached two-week high

  • Adobe fell 13% on weak 2025 guidance

  • Other tech leaders (Nvidia, Meta, Alphabet, Amazon) also declined

Despite Thursday's pullback, the S&P 500 has shown remarkable strength in 2024:

  • Year-to-date gain: approximately 27%

  • Trading near all-time highs

  • On track for seventh-best year in history

  • Second consecutive year of 20%+ gains

According to Canaccord Genuity's Michael Welch, consecutive years of 20%+ gains are rare but historically signal further upside.

Uber - Shares of the ride-sharing company climbed marginally, rebounding from losses earlier in the week. It shed close to 6% on Wednesday after General Motors halted funding Crusie, the autonomous driving division that is in partnership with Uber.

Riot Platforms - The stock jumped over 4% after activist investor Starboard Value took a significant position in the bitcoin miner, pushing the company to convert some of its mining facilities into space for big data center users.

RH - The stock is up 15% in pre-market despite posting Q3 earnings short of consensus estimates. It raised Q4 guidance and expects top-line growth between 18% and 20%, above estimates of 7.1%.

Broadcom Sales Climb 51%

Broadcom surpassed earnings expectations in its fourth quarter (ended in October), driven by explosive growth in artificial intelligence and the integration of its VMware acquisition.

The chipmaker's shares are up 13% in pre-market trading after CEO Hock Tan revealed partnerships with three major cloud customers for custom AI chip development.

Broadcom’s Q4 Financial Performance:

  • Revenue: $14.05 billion (up 51% YoY)

  • Adjusted EPS: $1.42 vs. $1.38 expected

  • Net Income: $4.32 billion (up 23% YoY)

  • Q1’25 Revenue Guidance: $14.6 billion

The company's AI business grew remarkably in fiscal 2024, with revenue soaring 220% to $12.2 billion.

The growth was supported by strong demand for ethernet networking components used in AI infrastructure.

Tan announced ambitious plans for the AI segment, projecting that each of their three major cloud customers will deploy 1 million AI chips in networked clusters by 2027, representing a potential market opportunity of $60-90 billion.

Segment Performance:

  • Semiconductor solutions: $8.23 billion (up 12% YoY)

  • Infrastructure software: $5.82 billion (nearly tripled YoY, boosted by VMware)

Looking ahead, Broadcom announced an 11% increase in its quarterly dividend to 59 cents per share for fiscal 2025, reflecting confidence in its growth trajectory and financial strength.

ServiceTitan Shines on Market Debut

ServiceTitan, a cloud software provider for contractors, saw its shares soar 42% in its Nasdaq debut on Thursday, marking one of the most significant tech IPOs of 2024.

The company raised approximately $625 million after pricing its shares at $71, with the stock opening and closing at $101, valuing the company at $8.9 billion.

Founded in 2007 by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan provides software solutions for plumbing, landscaping, and electrical contractors, serving about 8,000 customers with annual billings exceeding $10,000.

It reported $198.5 million in revenue for the October quarter, showing 24% year-over-year growth, though net losses widened to $47 million, up from $40 million last year.

The successful IPO, the first major venture-backed tech offering since Rubrik in April, signals renewed investor appetite for technology stocks.

The company's valuation stands at 12x trailing revenue, notably higher than the cloud computing industry average of 6.4 times. ServiceTitan trades under the symbol TTAN.

JPMorgan Is Bullish on Celsius

JPMorgan launched coverage of Celsius Holdings with an optimistic outlook despite the energy drink maker's challenging year. The stock rose 7.5% yesterday but still trades over 60% below all-time highs.

Key Analyst Insights:

  • Rating: Overweight

  • Price Target: $37 (24.3% upside)

  • Current Market Position: Third-largest U.S. energy drink brand

Growth Catalysts:

  • Lighter inventory levels

  • Expected growth reacceleration

  • Alignment with consumer trends:

  • Sugar-free options

Stock Performance:

  • Down over 45% in 2024

  • Heading for the first negative year since 2018

JPMorgan analyst Andrea Teixeira emphasized that the slowdown of the broader energy drink category doesn't undermine Celsius's long-term growth potential within the consumer staples sector.

While Goldman Turns Bearish on General Dynamic

Goldman Sachs has taken a bearish stance on General Dynamics, downgrading the aerospace and defense company's shares.

Key Points:

  • New Rating: Sell (from Neutral)

  • Price Target: $245 (implies 7.7% downside)

  • YTD Performance: +2%, lagging broader market

Analyst Analysis:

  • Noah Poponak cited "fundamental challenges" across all four business segments

  • General Dynamics joins other defense stocks with Goldman sell ratings:

    • Lockheed Martin

    • Northrop Grumman

    • L3Harris Technologies

    • Huntington Ingalls Industries

    • Mercury Systems

The downgrade reflects Goldman's broader reassessment of the defense sector's outlook for 2025.

This tech company grew 32,481%...

No, it's not Nvidia... It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.

Just as Uber turned vehicles into income-generating assets, Mode is turning smartphones into an easy passive income source, already helping 45M+ users earn $325M+ through simple, everyday use.

They’ve just been granted their stock ticker by the Nasdaq, and you can still invest in their pre-IPO offering at just $0.26/share.

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

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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.