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Hello there.
Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best of finance from last week. Friday, we’ll cover tech, and next Monday, we’ll tackle policy.
This week, we’ve got…
🎠 The Big Short 2: Electric Boogaloo
⚡️ Finance Quick Fix
🏚 Mr. Bessent, Housing Doesn’t Feel so Good
🎭 Winners & Losers
😆 Meme of the Week
📈 Top Stock Ideas
With how quickly the market and investment climate are changing right now, we can’t afford to fall behind. You can always read the latest and most relevant finance news & updates at FinanceWrapped.com.
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🫧 The Big Short 2: Michael Burry VS. the AI Bubble
You probably saw that yesterday was an awful day for markets. You may have also seen that what kicked it off was Palantir (PLTR) shares falling (down 11.8% since market close on Monday).
But did you know that the main reason PLTR fell was Michael Burry’s announcement that he’s shorting the stock (betting against it). Oh, and Burry’s also shorting NVDA. The $5T market cap company.
Cinema.
So, that happened on Monday. Then on Tuesday, Palantir’s CEO Alex Karp went on CNBC’s live show and called anyone who would short ontology and chips (PLTR and NVDA) “batsh*t crazy.” Not the kind of thing you hear every day on “Squawk Box.”
Throughout the rest of the day, all members of the Magnificent 7 were in the red (except for Apple, which only rose 0.37%). Crypto had it worse: Bitcoin sank to $99K at one point and Ethereum fell over 10%.
So far today: mixed market. Palantir is down over 2%, but the Maggy 7 stocks are all slightly up (except for Apple and Amazon, which are slightly down now).
We’ll be very interested to see how the rest of the week plays out. Brace yourselves for what the market might do if OpenAI announced its 283rd partnership or Trump announces the China trade deal for the 55th time.
⚡️ Finance Quick Fix
Kimberly-Clark agreed to buy Kenvue in a deal valued at $48.7 billion, combining brands like Huggies and Kleenex with Tylenol and Band-Aid.
Millennium Management sold a roughly 15% stake to investors for about $2 billion, valuing Izzy Englander's hedge fund firm at approximately $14 billion.
UBS is inching toward a historic move to leave Switzerland, applying for a US national bank charter and planning to meet with the Trump administration.
Morgan Stanley CEO Ted Pick warned that equity markets are heading toward a 10-15% correction, echoing other Wall Street heavyweights.
🏠 Is Housing in a Recession, Bessent?
I know the previous story was about Michael Burry and we called it The Big Short 2, but this story’s actually about the housing market. So strap in.
US Treasury Secretary Scott Bessent just declared US housing to be in a recession due to lack of rate cuts by the Fed. Cue Trump’s next verbal attack of Fed Chair Jerome Powell on Truth Social.
Now, this definitely comes across as political maneuvering and like Bessent is just trying to pressure the Fed to do what he wants even more.
However, there’s good data to support his claims:
Home sales have stalled for the last two and a half years at around 4 million existing homes sold annually
The U.S. averaged about 5 million homes sold annually before the COVID-19 pandemic
Homeowners are selling and trading homes less frequently, about once every 11 years, as opposed to the historical average of six to seven years
Median house prices are still $410K, and haven’t been below $400K since 2021
So it’s true that home sales are somewhat stalling and that prices are still sky high (especially for low-income consumers).
All I can say is that I hope house prices AND interest rates come down. Remember when mortgage rates were in the 2-3% range in 2021? Pepperidge Farm remembers.
🫡 Meme of the Day
📈 Stock ideas
Analysis provided by altindex.com.
Remember to always DYOR.
Celsius Holdings $CELH
Celsius Holdings Inc. is a global company engaged in the development, marketing, sale, and distribution of fitness drinks and dietary supplements. The company's mission is to become a leader in the categories they operate in, providing innovative products that promote a healthier lifestyle, thus aiming to capture a significant market share in the wellness industry.
The signals:
Revenue: $739M. That’s a 124.51% increase QoQ and a 83.91% increase YoY
Net income: $100M. Up 124.80% QoQ and up 25.16% YoY
Positive short-term and long-term price momentum (up over 100% YoY)
RSI is neutral at 32.3
P/E ratio is high at 155.92. Could reflect high anticipation of growth OR overvaluation
Alternative data over the past few months:
138% increase in job postings
18% decrease in web traffic
12% increase in Instagram followers
Current price: $60.93
Target price: $69.6
SharkNinja $SN
SharkNinja is a prominent player in the consumer electronics and home appliance market, known for its innovative and versatile product lines in categories such as vacuum cleaners, kitchen appliances, and more. The company has successfully carved out a significant market share by focusing on technology and consumer needs, helping to drive impressive revenues and profitability over recent quarters.
The signals:
Revenue: $1.44B. Up 18.18% QoQ and 15.71% YoY
Net income: $140M. Increased 18.47% QoQ and 105.15% YoY
Negative short-term and long-term momentum
RSI is neutral at 57.1
P/E ratio is 23.31, suggesting the stock is fairly valued based on earnings
Alternative data over the past few months:
5% increase in job postings
79% in Instagram followers
26% increase in web traffic
Current price: $86.00
Target price: $98.2
⭐️ What did you think of today's edition?
That’s all for today. Write us and let us know your thoughts on the market, the newsletter, or the weather—we’d just love to hear from you.
Till next time,
— Brandon and Blake of Invested Inc.
Disclosures
The information provided in Finance Wrapped is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Finance Wrapped is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.