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All Posts Author: Patrick Stevens

GameStop Goes Bananas Again: Thanks to Roaring Kitty!

GameStop Goes Bananas Again: Thanks to Roaring Kitty!

Social Media Post Sparks Another Rally

It’s not every day in the world of stocks that a single social media post can send Wall Street into a tizzy. But to be Roaring Kitty, the rules of the game seem to bend a bit. Today, the markets witnessed a spectacle as GameStop's shares took a joyride on the roller-coaster of meme stock mania, all thanks to a cryptic yet potent post by the one and only Roaring Kitty.

RoaringKitty

More Than Just a Meme

Let's set the scene: It's a regular trading day, and the buzz around GameStop had been, well, more of a murmur lately. Enter Roaring Kitty, the trader who became a legend in the meme stock saga, with a Reddit post that was anything but ordinary. The post? A screenshot that sent the message boards ablaze with speculation. The result? GameStop shares closed nearly 75% higher the next day.

The Power of Social Media

But wait, there's more. This isn't just a tale of stocks and screenshots. It's about the power of influence and the underdog story that keeps on giving. Known in the real world as Keith Gill, the roaring cat has become something of a folk hero in the business community. His apparent opinion of the video game retailer, highlighted in the letter, was enough to trigger wild pre-sale trading.

Roaring Kitty: The King of Meme Stocks

And the numbers? They're as eye-popping as the rally itself. We're talking about a position that's purportedly worth a cool $175 million³. That's not just chump change; that's a war chest that could make even the most stoic of hedge fund managers do a double-take.

So, what is the moral of the story? In the age of social media and retail trading, stock market dynamics can change in the blink of an eye—or at the click of a "post" button. Roaring Kitty’s latest move is a reminder that in stocks, sometimes a wild card isn’t just part of the deck; his hands are dealing the cards.

Microsoft Unveils New Line of AI-Focused Copilot+ PCs

Microsoft Unveils New Line of AI-Focused Copilot+ PCs

Buckle up, tech fans! Microsoft just unveiled a brand new kind of Windows PC at their fancy new digs, and it's all about AI. They're calling them Copilot+ PCs, and let me tell you, these machines are seriously brainy.

CoPilot

Here's the lowdown:

Super Speed: Copilot+ PCs blow the doors off other laptops. Ditch the charger anxiety! Copilot+ PCs boast mind-bending speed (over 40 trillion operations per second!), leaving even the latest MacBook Air in the dust. And the best part? You still get all-day battery life.

AI Smarts: These PCs aren't just speedy; they're brainiacs. Imagine a computer that remembers everything you've ever seen on it, helps you find anything instantly, and even creates cool AI images for you. That's the magic of Copilot+. Plus, it translates conversations in real-time, so language barriers become a thing of the past.

Style Meets Smarts: Copilot+ PCs come in a variety of styles, with options from Microsoft's Surface line and leading brands like Acer, ASUS, Dell, HP, Lenovo, and Samsung. Pre-orders are available now with prices starting at $999, and general availability begins June 18th.

Roaring Kitty: The Catalyst Behind GameStop's Soaring Stock Price

Roaring Kitty: The Catalyst Behind GameStop's Soaring Stock Price

The Beginning

This regular dude with a day job saw something special in GameStop way back in 2019. He thought the stock was way undervalued, so he started buying options like crazy. Basically, he bet the stock would go up, big time. And guess what? He was right!

RoaringKitty

The Reddit Forum and YouTube Fame

Keith didn't keep his insights to himself. As Roaring Kitty, he shared regular updates on WallStreetBets, a Reddit forum. His YouTube channel echoed his enthusiasm, touting GameStop as a solid investment. Then, in August 2020, something crazy happened. A big-shot investor named Ryan Cohen bought a ton of GameStop stock, and the price went nuts! Keith's original $53,000 investment ballooned to a cool $1 million.

The Short Squeeze Phenomenon

A thing called a "short squeeze" happened, and GameStop's price went NUTS, skyrocketing to almost $500 a share! Keith's investment became a whopping $48 million. He admitted, "I thought this trade would be successful, but I never expected what happened over the past week."

Market Volatility and Unwavering Belief

The party didn't last forever, though. The stock price dropped a bunch in February, but Keith stayed true to GameStop. He actually bought even more shares, bringing his total to over 100,000! He also had a bunch of options contracts and extra cash on the side. This guy wasn't messing around.

April 2021: The Millionaire's Journey

Keith exercised 500 call options contracts, gaining 50,000 more shares at $12 each. Then he bought another 50,000 shares, pushing his total holdings to over $30 million. As of April 16, 2021, Keith's Reddit post hinted at nearly $20 million in gains, with GameStop's share price at $154.69.

Inflation Nation: Are We Back for More?

Inflation Nation: Are We Back for More?

Remember that whole "everything's getting more expensive" thing? Inflation? Yeah, it might be making a comeback. So, how do we deal with that as investors? That's where the "inflation trade" comes in.

Think of it like this: imagine your money is a bag of chips. Inflation is like someone slowly sneaking fries into that bag. You still have the same bag, but it's not worth as much.

InflationTrade

The Inflation Trade

The inflation trade is about fighting back. It's about swapping your chips for things that tend to hold their value, or even go up, when prices rise. Here's the lowdown:

Swapping Your Portfolio: Investors ditch stuff that inflation eats away at (like cash) and grab things that tend to do well when prices climb. This could be stuff like gold, real estate, or even certain stocks.
Commodities as Bodyguards: Imagine gold as your financial bodyguard. When inflation goes up, gold prices often follow. So, it can help protect your money's worth.
Currency Dodgeball: Some folks use fancy financial tools to avoid getting whacked by inflation that weakens their currency. Basically, they bet on how currencies will trade against each other.
Interest Rates: The Party Crashers: Inflation can make central banks raise interest rates. This can be bad news for some investments, like bonds, but it's not all doom and gloom.

The stock market can actually handle some inflation okay. Companies might even make more money if they can raise their prices without scaring away customers. But, not all stocks are created equal. Some industries, like energy or materials, might even benefit from rising prices.

Here's the catch: if inflation gets too crazy, central banks might slam on the brakes with those interest rate hikes. This can hurt the stock market in general.

Eli Lilly & Co. Report Q1 2024 Strong Earnings

Eli Lilly & Co. Report Q1 2024 Strong Earnings

Indianapolis, IN – April 30, 2024, Eli Lilly just released its Q1 earnings report, and things are looking good! Summary of the main points:

Profits on the Rise: They made more money per share than analysts expected (that's good!). This was true for both their regular earnings and a special adjusted version that accounts for some extra costs.
Revenue Up Big Time: Overall sales jumped 26% compared to last year. A big reason for this is their new weight-loss drug Mounjaro, which is apparently super popular. Other meds like Zepbound, Verzenio, and Jardiance also did well.
The outlook is bright: Eli Lilly is feeling confident and has raised its forecast for how much revenue it will earn for the remainder of the year.

EliLilly

What's Driving the Growth?

Eli Lilly's strong performance can be attributed to several factors:

New meds in the works: They've got a bunch of promising new drugs on the way that look really effective for different diseases. This means more money coming in down the line!
Going global: Eli Lilly sells more drugs in other countries, helping them make more money.
Smart shopping: Other migraine brands are being acquired, resulting in an even larger selection of products for sale.

Challenges Ahead

Despite the positive results, Eli Lilly faces challenges:

Drug Battle Royale: The pharmaceutical industry is super competitive, so Eli Lilly has to fight hard for market share.
The Rules of the Game: Changes in government regulations and how much drugs cost could hurt their profits down the line.

In Conclusion

Eli Lilly's earnings report this quarter was basically a gold medal performance for investors. The company is feeling good about the future, and for good reason! Here's the scoop:

Stock Party: Investors were so hyped they drove the stock price up almost 8% before the market even opened!
Sales on Fire: Revenue jumped a whopping 26% thanks to their new weight-loss drug, Mounjaro, which is apparently a mega-hit. Other drugs like Zepbound, Verzenio, and Jardiance did great too.

Amazon: Where Dreams Are Delivered (and So Are Packages)

Amazon: Where Dreams Are Delivered (and So Are Packages)

The Prime Numbers

Amazon Prime is booming, with like 180 million people in the US having a membership. That's a ton of folks who love getting their stuff fast and free. Think of it like a club, but instead of weird handshakes, you get super speedy deliveries and access to tons of cool shows and movies. All for a yearly fee (or a monthly splurge, if that's your jam).

For a price (think monthly splurge or annual fee, depending on your style), you get free shipping, exclusive deals, and access to Prime Video. It's pretty sweet, especially if you're constantly ordering things online (no judgment, we've all been there with the cat socks and fancy pickles).

Amazon Prime

The Stock Market Tango

Amazon's been doing great lately, kind of like it's dancing on top of the charts. The pandemic definitely helped, with everyone shopping online like crazy. But here's the kicker: Prime memberships actually slowed down a bit during that time. Some folks thought Amazon might have hit a wall, like a climber stuck on a tough ledge. But here's the twist: Prime membership growth flattened out during the pandemic. Some folks thought Amazon had hit a plateau, like a climber stuck on a tricky ledge.

But guess what? The recent data shows that 75% of US shoppers still have Prime memberships. That's a clear sign that Amazon is still gaining new subscribers. These folks believe their Amazon addiction justifies the investment in Prime. It's like saying, "Yeah, I order cat socks and artisanal pickles every week, but at least I get free shipping!"¹

Investing in the Amazon Jungle

Here's the lowdown: They're not just an online store anymore. They're a tech giant with their hands in everything, from cloud computing to streaming to even getting groceries delivered. Pretty wild, right? Here's why you might want to consider grabbing some AMZN stock (that's their ticker symbol):

1. E-Commerce Dominance: Amazon's e-commerce game is stronger than a double-shot espresso. People shop there for everything from dog food to inflatable unicorn floats. As long as humans crave convenience (and unicorns), Amazon's got a seat at the table.

2. Cloud Magic: Amazon Web Services (AWS) is like the wizard behind the curtain. It powers half the internet, including Netflix, NASA, and your neighbor's cat blog. AWS revenue keeps climbing, like a mountain goat scaling Everest.

3. Prime Addiction: Remember those 180 million Prime members? They're not going anywhere. Prime's sticky like caramel on a hot day. Plus, Amazon keeps adding perks, like free grocery delivery and early access to Black Friday deals.

4. Innovation Galore: Jeff Bezos, the Amazon founder, loves crazy ideas. Think drones delivering packages, cashier-less stores, and Alexa reading bedtime stories. If you're into futuristic stuff, Amazon's your playground.

5. Risk Alert: Investing can be risky, and Amazon has competition to keep an eye on (Walmart and Alibaba, anyone?). Plus, things can change fast in the world of business. So, don't expect overnight success – investing is a marathon, not a sprint.

TSMC Gets a $6.6 Billion Boost to Make Chips in the Desert

TSMC Gets a $6.6 Billion Boost to Make Chips in the Desert

Big win for tech! TSMC (Taiwan Semiconductor Manufacturing Company) just scored a giant pile of cash (like, $6.6 billion!) from the US government to build chip factories here in the states.

That's right, Arizona is about to become a major chip-making hub, and forget the whole cacti and cowboy boots thing for a sec. This dusty state is about to be on the cutting edge of tech! Imagine it: super-advanced chip production happening under the Arizona sun. Maybe not with tumbleweeds rolling by, but you get the picture.

TSMC

The Grand Plan

TSMC already has two factories in Arizona, set to fire up their chip-making engines in 2025 and 2028. But wait for it—the $6.6 billion jackpot means they're building a third factory. Yep, you heard me right. Three factories, all humming with the promise of next-gen 2-nanometer chips. That's like having a pocket-sized supercomputer in your smartphone.

The Nitty-Gritty

So, what's the fuss about these 2nm chips? Well, they're the secret sauce behind everything cool: artificial intelligence, self-driving cars, and even the military's top-secret gadgets. Imagine your phone's brainpower on steroids. And guess what? TSMC plans to churn out these tiny marvels right here in the land of burgers and fries.

Gina Raimondo's Victory Lap

Commerce Secretary does a happy dance! Gina Raimondo, the big boss at the Commerce Department, is practically popping champagne corks. Why? Because for the first time ever, the US will be churning out the most advanced chips around, right here at home. And guess what? American workers will be making them!

The Biden Effect

This whole shebang is part of President Joe Biden's grand plan to boost domestic chip production. The Chips and Science Act (sounds like a blockbuster movie title, doesn't it?) set aside a whopping $39 billion in direct grants. Plus, there are loans and guarantees worth $75 billion. It's like Uncle Sam's saying, "Hey, chipmakers, come party in the USA!"

The Ripple Effect

TSMC's stock is doing a little victory dance too. Intel's already in on the action with nearly $20 billion in grants and loans. And rumor has it that Samsung's getting a slice of the pie too—more than $6 billion, to be precise.

Inflation in the USA: What's Cooking in 2024?

Inflation in the USA: What's Cooking in 2024?

Hey there, fellow money-watchers! Let’s chat about everyone’s favorite topic: inflation. You know, that sneaky thing that matches prices and makes your wallet suck. Take charge of yourself, as we plunge into a dangerous world of rising debt and bankruptcy.

Inflation

The Scoop

So what's the deal on inflation in 2024? Well, according to the latest crime from the US. According to the Labor Department (they call it a "report," but let's keep it spicy), annual inflation struts its stuff at 3.2% for the 12 months ending in February. Not too simple, right? But wait, there’s more! The next update is due on April 10th, and we’re all on the edge of our beanbag seats waiting to see if inflation has got any more surprises up its sleeve.

Blast from the Past

Let's rewind the VHS tape and check out the highlights from the past decade. Picture this: inflation rates doing the cha-cha from 2014 to 2024. Here's the rundown:

1. 2023: A whopping 6.4% inflation rate. Yeah, it was like inflation had a double espresso and decided to party.
2. 2022: Hold onto your avocado toast—8.0% inflation! People were side-eyeing their grocery bills like, "What's the deal, organic kale?"
3. 2021: Pandemic recovery mode, and inflation was like, "Hey, I'm back!" Clocking in at 4.7%, it was the inflation equivalent of a surprise guest at your birthday party.

Crystal Ball Predictions

What do the experts say? Well, the Federal Reserve (those money wizards) expects core PCE inflation to chill out from 3.2% in 2023 to a breezy 2.4% in 2024. They're sipping chamomile tea and hoping for the best. Meanwhile, the private sector folks are nodding along, predicting inflation to dip below 2.5%. It's like a financial game of limbo—how low can you go? If inflation looks tame and rates are dropped this summer good things could be in store in the real estate market and the stock market.

Navigating the Inflation Jungle

Policymakers are tiptoeing through this jungle of rising prices. Imagine them in khaki shorts, binoculars in hand, whispering, "Watch out for the CPI vines!" The challenge? Balancing economic growth with taming inflation. If things get wild, the Fed might pull out the recession card to keep inflation in check. It's like playing Jenga with the economy—careful moves, folks.

Trump’s Truth Social Public: A Controversial Journey to the Stock Market

Trump’s Truth Social Public: A Controversial Journey to the Stock Market

Former President Donald Trump’s social media platform **Truth Social** has been the subject of intense and anticipated discussion. After years of struggle, it finally found its place in the stock market. In this article, we take an in-depth look at Truth Social’s journey, its research, and the implications of its public debut.

TruthSocial

The way society works

Truth Social’s parent company **Trump Media & Technology** took a different approach to going public. Instead of a traditional initial public offering (IPO), it chose to "blank check" merge with a shell company called **Digital World Acquisition**. Shareholders of Digital World voted in favor of the merger, giving Trump’s social media venture access to the stock market.

Lackluster Launch and Shareholder Support

Truth Social has faced challenges since its lackluster design, which has led to limited sales of about $5 million as of 2021. However, loyal Trump supporters have rallied behind it, increasing participation in Digital World and have driven the stock up an impressive 145% since the beginning of the year to $6 billion.

Ticker Symbol: DJT

The newly formed company will trade on the stock market as **Trump Media & Technology Group**, using the ticker symbol **"DJT"**—Trump's initials. Ahead of the announcement, Digital World's stock price stood at $44, implying that the combined entity would debut with a value exceeding $5 billion.

Trump's Paper Fortune

Donald Trump's stake in the combined business comprises approximately **79 million shares**, translating to a paper fortune of about **$3 billion**. However, he won't be able to cash in immediately due to a six-month lock-up period for key shareholders after the merger.

Financial Crunch and Meme Stock Status

This move comes amidst a financial crunch for Trump, who aims to regain the presidency from Joe Biden in the upcoming elections. A New York judge recently ordered him to pay $454 million following a civil fraud case. His lawyers have deemed this payment a "practical impossibility" after 30 surety companies declined to cover it.

Digital World has also become a so-called **meme stock**, fueled by internet memes—some posted on platforms like Truth Social—encouraging retail investors to buy into it. Despite underlying fundamentals, the stock's rise has been remarkable.

Record Inflows into Nvidia ETF Funds Amid AI Frenzy

Record Inflows into Nvidia ETF Funds Amid AI Frenzy

Investors have flocked to Nvidia-focused exchange-traded funds (ETFs) amid an AI frenzy, with a bullish fund tracking shares of the chip designer achieving an all-time high in Thursday's GraniteShares 2x Long NVDA Daily ETF seeing notable growth, which has attracted significant capital from investors eager to ride the wave of artificial intelligence.

NvidiaETF

Inflow Numbers and Growth

- Net daily inflows into the GraniteShares 2x Long NVDA Daily ETF reached a staggering $197 million, according to LSEG Lipper data. This record inflow reflects the growing interest in Nvidia as a key player in the AI and high-performance computing space.
- The assets managed by the ETF have surged from $213.75 million at the start of the year to an impressive $1.41 billion. This substantial increase underscores the confidence investors have in Nvidia’s future prospects.

Why It Matters

Risk-averse investors have traditionally shied away from single-currency tracking ETFs, especially those that target short-term returns. But the arrival of these ETFs in the United States. The 2022 market has attracted interest from investors. Leveraged single-stock ETFs seek to maximize returns on the underlying stock in one day, and often use financial derivatives and debt as leverage.

Nvidia's Dominance and Euphoria Around AI

- Nvidia, which controls nearly 80% of the high-end AI chip market, has been on a tear since the start of the year. Buoyed by stellar forecasts and a new boom for AI technology, the stock is up nearly 82%.
- Leveraged ETFs focused on Nvidia have become a favored choice for investors seeking higher returns in exchange for added risk. As a new wave of must-own companies emerges, these ETFs offer exposure to the tech giant’s growth potential.

Impressive Performance

- The GraniteShares 2x Long NVDA ETF, along with other Nvidia-linked ETFs, has witnessed explosive growth. Assets of these funds have multiplied between five and 11 times since the start of 2024.
- Year-to-date, their prices have soared between 143% and 218%, outperforming many other ETFs in the market.

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