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  • Stonks: Ozempic wows, $NVDA supply chain, $CAVA next CMG, and Fed rate cut

Stonks: Ozempic wows, $NVDA supply chain, $CAVA next CMG, and Fed rate cut

Author

Michael Luo
May 28, 2024

POV: You’re waiting for the markets to open on the long weekend

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.

🚨 New to this newsletter - Reddit sentiment summary! Read more to find out

Upcoming earnings this week:

  • Cava ($CAVA)

  • C3.AI ($AI)

  • Salesforce ($CRM)

  • Best Buy ($BBY)

  • Costco ($COST)

  • Dollar General ($DG)

  • Dell ($DELL)

  • Ulta ($ULTA)

  • Reddit Sentiment: Bullish (Mention of potential future widespread use of Ozempic as a treatment drug)

  • Diabetes drug Ozempic (Novo Nordisk, ticker: NVO) shows benefits for kidney disease

  • Trial data shows the drug reduces the risk of kidney failure and death in people with type 2 diabetes and kidney disease

  • Study found that participants were less likely to have major kidney disease events and die from heart attacks

  • The drug can potentially protect against heart disease, which is often linked to chronic kidney disease

  • Semaglutide may offer benefits for people with chronic kidney disease, but researchers need to further study its effectiveness and compare it to other medications

  • Reddit sentiment: Neutral (Look at NVDA's supply chain to see who else benefits from them)

  • Similar price movements in AMD, KLAC, MU, LRCX, and AMAT stocks

  • All in semiconductor industry

  • Correlation experiment based on market cap > $10B

  • Top correlations with NVDA: KLAC, MU, LRCX, AMAT, ADI

  • Reddit sentiment: Mixed/Bullish (CAVA has seen significant revenue growth recently, Some people believe CAVA is being hyped up as the next Chipotle without solid fundamentals)

  • Chipotle (CMG) IPO in 2006 traded over $100 the first year

  • Cava (CAVA) went public last year and has been up 277% since IPO

  • Both companies focus on providing healthy food options

  • CAVA plans to open 48 to 52 new restaurants in 2024

  • CAVA anticipates 3-5% same restaurant sales growth and strong profit margins

  • CAVA's growth trajectory and market position suggest potential for significant revenue growth and store count expansion

  • CAVA's financial metrics show strong operational performance with slightly lower margins compared to CMG

  • CAVA projects continued profitability and operational efficiency in 2024, crucial for investor confidence and expansion funding

  • Reddit sentiment: Mixed (Mixed opinions on rate cuts and inflation data)

  • Federal Reserve President Neel Kashkari wants to see more positive inflation data before considering a rate cut

  • Kashkari says the Fed could potentially raise rates if inflation does not decrease further

  • U.S. inflation rose by 0.3% in April, still up 3.4% for the year

  • Divergence among central banks with the Fed growing more hawkish on interest rates

  • European Central Bank expected to lower rates before the Fed, Bank of England also expected to cut rates