Stonks: Candy crush, $AAPL AI, Powell cuts, and $CVNA

Author

Michael Luo
July 16, 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.

The Candy Crush guys are secretly building a new startup after $5.9 billion sale to Activision Blizzard

  • Reddit sentiment: mixed/positive

  • Sebastian Knutsson, co-founder of King (acquired by Activision Blizzard in 2016 for $5.9 billion), has formed a new gaming startup called Queen Digital Entertainment (QDE) in 2023

  • QDE is working on new casual gaming apps, starting with a 'match 3' style puzzle game

  • Similar games like Candy Crush and Royal Match have been top downloaded apps for over a decade

  • QDE raised around $5 million from Knutsson, fellow King co-founder Thomas Hartwig, and others

  • Gaming industry facing slowdown, as estimated by Newzoo to have grown by only 0.5% in annual revenue last year

Apple stock hits record high on AI iPhone anticipation — as analysts predict $5 trillion valuation

  • Reddit sentiment: mixed

  • Apple stock hit a record high on Monday, reaching $237.23

  • Market capitalization for Apple is now $3.59 trillion, higher than Microsoft at $3.36 trillion

  • Analysts from Loop Capital and Morgan Stanley increased their price targets for Apple stock

  • Loop Capital raised its target to $300, while Morgan Stanley raised theirs to $273

  • Analysts anticipate strong earnings potential for Apple with the debut of AI iPhones

  • Woodring from Morgan Stanley predicts 498 million new iPhone sales in 2025 and 2026, with $488 billion in revenues

  • Apple has officially announced the "Apple Intelligence" generative AI plans

  • This announcement has helped Apple stock increase by over 20% since its release

  • Apple aims to become the "Gen AI base camp of choice" with its AI vision

  • Apple will release the integrated ChatGPT chatbot into the iOS operating system in September

Powell indicates Fed won’t wait until inflation is down to 2% before cutting rates

  • Reddit sentiment: mixed/negative

  • Fed Chair Jerome Powell states that the Fed won't wait until inflation hits 2% to cut interest rates

  • Powell explains that central bank policy works with "long and variable lags" to emphasize the need for timely monetary policy adjustments

  • The Fed is looking for "greater confidence" that inflation will return to the 2% level before making any rate cuts

  • Powell does not foresee a "hard landing" for the U.S. economy

  • It was Powell's first public speaking appearance since the consumer price index report for June showed cooling inflation

  • The next policy meeting of the Federal Reserve is scheduled for the end of July

  • The current target range for the federal funds rate is 5.25% to 5.50%

  • The federal funds rate influences the cost of money throughout the economy, such as mortgage rates.

CVNA - It's a short. Don't act like I never told ya.

  • Reddit sentiment: mixed/negative

  • Carvana (CVNA) stock has increased 288% in the past 12 months

  • Ernest Garcia II, father of the current Carvana CEO, pleaded guilty to bank fraud in the 90s

  • Garcia has been selling off 84% of his CVNA shares in the past 3 weeks

  • Carvana reported $28 million in profits on $3.06 billion of revenue with a net profit margin of 0.91%

  • Selling used cars is not a unique business and can easily be replicated by competitors

  • CVNA stock has risen 40% in the past month for no apparent reason

  • The OP plans to short CVNA stock based on concerns over profitability and competition

  • Similar to the stories of high-flying stocks like PTON, SNAP, and SHOP, but for used cars