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Market Moves Yesterday
S&P 500 @ 5,995.54 ( ⬆️ 0.38%)
Nasdaq Composite @ 19,286.78 ( ⬆️ 0.090%)
Bitcoin @ $77,332.21 ( ⬆️ 1.08%)
Hey Scoopers,
Happy Monday! Are you ready for an exciting newsletter today?
👉 Tesla rallies as Trump wins
👉 China’s trillion-dollar stimulus
👉 AppLovin spiked over 17%
So, let’s go 🚀
Market Wrap
The stock market climbed to a fresh record high on Friday, as the Dow and S&P 500 wrapped up their best week in a year after Donald Trump’s election win.
The S&P 500 index rose 4.66% last week, while the Dow spiked by 4.61%, notching their best week since November 2023. The tech-heavy Nasdaq rose 5.74%, while the small-cap benchmark Russell 2000 surged 8.57%.
Investors view a Republican government as business-friendly and favoring capitalism. While Donald Trump has proposed lowering taxes, there are concerns over the large fiscal deficit and a tariff war.
Stocks also got a boost from the Federal Reserve this week, as the central bank lowered rates by 0.25% last week. During a press conference following the rate cut, Fed Chair Jerome Powell noted he is “feeling good” about the economy.
Trending Stocks 🔥
Trump Media & Technology - The stock advanced 15% after Donald Trump disclosed he has no plans to sell his $3 billion stake in the company.
Five Below - The discount retailer slipped over 5.5% as the ramifications of Trump’s potential tariffs on Chinese imports weighed on the stock.
Sweetgreen - The stock fell almost 6% after the salad chain reported a loss of $0.18 per share on $173 million in revenue. Analysts were looking for sales of $175 million and a loss of $0.13 per share.
Tesla Rallies 29%
Tesla climbed 8% on Friday, pushing the electric vehicle maker’s market cap past $1 trillion.
The stock rallied close to 30% last week after Donald Trump won the U.S. presidential election, and investors expect that the former leader’s return to the White House could benefit Tesla.
Elon Musk, Tesla’s CEO, was crucial to Trump’s campaign, contributing at least $130 million to the Presidential race.
Source: Companiesmarketcap
Before the U.S. elections, Tesla stock was up 1% in 2024. After its 30% gain last week, Tesla rallied past the $1 trillion market cap, joining the likes of Nvidia, Apple, Microsoft, Alphabet, Amazon, and Meta.
Wedbush Securities analyst Dan Ives has said that a potential Trump administration could spell less regulation for Tesla and other companies.
Tesla is the largest EV manufacturer in the U.S., and Musk’s dynamic with Trump could give it a clear competitive advantage in a non-EV subsidy environment and higher China tariffs that could push cheaper Chinese EV players away from flooding the U.S. market.
In Q3 of 2024, Tesla reported revenue of $25.18 billion and a net income of $2.17 billion. During the earnings call, Musk claimed vehicle growth could range between 20% and 30% in 2025 due to lower-cost vehicles and the advent of autonomy.
Tesla has been promising and developing driverless vehicle technology for over a decade. In the Q3 earnings call, Musk said he would push the Trump administration to establish a federal approval process for autonomous vehicles.
China’s Massive Stimulus Package
On Friday, China announced a five-year stimulus package totaling $1.4 trillion to tackle the government’s debt problems. China also approved a proposal to allocate an additional 6 trillion yuan ($840 billion) to increase the debt limit of local governments.
These policies would allow local governments to reduce their hidden debt of $2 trillion by more than 80% over the next four years. A lower debt balance will free up funds to support economic growth and revive China’s slowing growth rates.
China’s hidden debt refers to extensive borrowing by local governments that is not disclosed in official financial statements. The debt is accumulated through local government financing vehicles and used to fund infrastructure and development projects.
According to investment bank Nomura, China’s hidden debt may range between $7 trillion and $8.4 trillion, accounting for a sizeable portion of the country’s GDP.
Notably, China has ramped up stimulus announcements since late September, fueling a stock rally.
While the country’s central bank has slashed interest rates multiple times, the government approved a plan to increase the fiscal deficit to 3.8% from 3%, which will translate to significant hikes in government debt and spending.
AppLovin is On a Roll
Shares of AppLovin surged close to 80% last week, bringing its year-to-date returns to almost 650%. AppLovin recently announced its Q3 results, which crushed estimates. In the September quarter, it reported:
👉 Revenue of $1.2 billion vs. estimates of $1.13 billion
👉 Earnings per share of $1.25 vs. estimates of $0.92
Its revenue rose by 39% year over year in Q3 of 2024. For the current quarter, it estimates sales between $1.24 billion and $1.26 billion, higher than the consensus forecast of $1.18 billion.
Founded in 2012, AppLovin went public in 2021, riding a Covid-era wave of excitement in online games. In addition to gaming, AppLovin has an online ad business gaining traction from AI advancements that have improved targeting.
AppLovin's AI ad engine, AXON, helps the company's mobile gaming apps display better-targeted ads. The company also licenses the software to other companies, diversifying its revenue base.
In Q3, AppLovin’s software platform sales rose 66% to $835 million due to improvements in AXON’s models.
Its strong revenue growth has allowed AppLvin to expand the bottom line aggressively. In Q3, net income rose by 300% year over year to $434.4 million, up from $108.6 million last year.
Could this be the biggest disruption to Smartphones in the past 15 years? 📲
💥Heads up! There's a new disruptor in smartphones: Mode Mobile. Mode can turn your phone from a cost into an income source — and investors are watching the launch of the company’s pre-IPO offering.1
🤳Mode saw 32,481% revenue growth from 2019 to 2022, ranking them the #1 overall software company on Deloitte’s most recent fastest-growing companies list. Mode’s flagship product EarnPhone, a budget smartphone, has already helped consumers earn & save $325M+.
🫴 Mode’s Pre-IPO offering1 is live at $0.25/share — 20,000+ shareholders already participated in its previous sold-out offering. There’s still time to get in on Mode’s pre-IPO raise and even lock in 100% bonus shares2 … but only until their current raise closes for good.
1 Mode Mobile currently has no formal plans for an IPO.
2 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.
3 Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.
Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.
DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.
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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.