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  • Daily stonks: Fed rates, SHOP poopy, NVDA, and Disney deep dive

Daily stonks: Fed rates, SHOP poopy, NVDA, and Disney deep dive

Author

Michael Luo
May 08, 2024

Here’s the latest “under the radar” stock news from Reddit in the last 24 hours that you don’t want to miss, as picked by Fluid Bot’s AI.

  • Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated interest rates will likely stay high for an "extended period" and a hike cannot be ruled out if inflation stalls near 3%

  • If inflation remains entrenched at 3%, rates may need to be raised higher

  • A rate cut is also possible if inflation drops or the labor market weakens

  • Kashkari believes two rate cuts or less may occur this year, depending on upcoming data

  • There has been a lack of progress towards the Fed's 2% inflation target

  • Fed Chair Jay Powell stated a rate hike is unlikely to be the next policy move in a press conference

  • Shopify (NYSE: SHOP) reported strong financial results for the first quarter of 2024

  • Revenue increased by 23%, reaching $1.9 billion with a 29% year-over-year growth when adjusting for the sale of logistics businesses

  • Gross profit increased by 33% and free cash flow margin doubled to 12%

  • The company emphasized its commitment to being agile, profitable, and focused on long-term growth

  • For the second quarter of 2024, Shopify expects high-teens revenue growth, a slight decrease in gross margin, and continued strong free cash flow margins

  • The stock is down over 18% based on these earnings

  • U.S. projected to triple semiconductor manufacturing capacity by 2032 due to CHIPS Act

  • CHIPS Act provides $52.7 billion for research, development, manufacturing

  • U.S. share of global chip manufacturing to increase from 10% in 2022 to 14% by 2032

  • U.S. expected to grow share of advanced logic manufacturing to 28% by 2032

  • Companies investing nearly $450 billion in semiconductor projects in U.S.

  • U.S. efforts to boost semiconductor manufacturing echoed by other countries like EU, India, China, Korea, Japan

I read through Disney’s latest earnings (with the help of AI) so you didn’t have to. Here’s what you need to know:

📈 Suggested plays by AI📉 

  • Buy short term options (1-3 months) if you think Disney will come out with a hit movie in the next 3 months

  • Buy long term stock if you think Disney+ will make up for declining ad sales and/or lack of viewers in movie theaters.

  • Short if you think Disney isn’t going to grow as much and can’t reach expectations, causing stock to drop.

🚀 To Infinity and... Hold Up, Not So Fast 🚀

Disney's stock took a bit of a tumble down the rabbit hole, dropping 10% after their latest earnings call. Seems like investors were expecting a fairy tale ending, but got a plot twist instead. It's not that the House of Mouse did poorly – in fact, they saw a 17% jump in total segment operating income (cheers to Disney+ and Hulu for finally turning a profit!). But, expectations were as high as Rapunzel's tower, and Disney's content growth wasn’t exactly reaching for the sky.

💲 Let's Talk Numbers 💲

  • Disney+ is the new prince in town with a shiny armor of 117.6 million global subscribers.

  • U.S. parks are whistling while they work, pulling in a 7% increase in revenue.

  • International park sales are soaring like Aladdin's carpet, up by a whopping 29%.

  • ESPN is still in the game, but with a slight limp – revenue's up by 3%, but operating income's down by 9%.

  • The not-so-magical part? Movie sales took a hit harder than Gaston's ego, down by 40%.

🎬 Blockbuster Blues 🎬

It's been quieter than a library in the Beast's castle when it comes to blockbuster hits from Disney lately. No Marvel or Star Wars headliners have graced the silver screen in the past quarter. But, if you believe in Disney's fairy godmother, this might be your cue to buy some short-term options. A hit movie could flip the script on that 40% movie sales drop.

🔮 Crystal Ball Time 🔮

The real sorcerer's stone to rub here is whether Disney+ can wave its wand and make up for the old-school cable TV and movie theater blues. If you've got faith, trust, and a little pixie dust in Disney's streaming magic, long-term stock could be your happily ever after.