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NEWS
Can Quantum Computing Save Stocks?

All four major U.S. indices ended the day in the red for a second straight session. Microsoft shareholders pushed back against the company’s flirtation with Bitcoin investments, highlighting the differing appetites for corporate risk-taking. With semiconductors falling, the market is hoping quantum computing can be the next major catalyst. 👀

Today’s issue covers Google’s quantum computing breakthrough, Gamestop turning a profit (sort of), and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 3 of 11 sectors closed green, with communication services (+1.57%) leading and real estate (-1.63%) lagging.

Source: Finviz.com

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $GOOG, $KR, $BA, $QGEN, $FOOD, 📉 $MDB, $DUO, $FERG, $IOT, $MRNA*

*If you’re a business and want to access this data via our API, email us.

COMPANY NEWS
Ok Google, Show Me Quantum Computing Gains 🤖 

While many of the market’s biggest winners have struggled in recent days, Alphabet has managed to buck the trend and break out to almost 5-month highs.

Yesterday the company unveiled a new chip that it says is a breakthrough in quantum computing, an emerging technology expected to shake up the tech sector. 👀 

Its blog post claims that a quantum computer powered by its new chip, Willow, solved a mathematical equation that would take a classical supercomputer 10 septillion years to solve. And it did it in only five minutes… 🤯 

Competitors like IBM, Intel, Amazon, Microsoft, and Honeywell are also chasing the next major technological breakthrough in this space. The industry largely believes this tech has “promising applications in many fields,” though we’re still far from seeing those practical applications.

Nonetheless, the world is racing to be the leader in this space, and the U.S. does not want to fall behind. In 2018, the National Quantum Initiative Act pledged $1.2 billion in federal funding for this space, and senators are looking to authorize another $2.7 billion. Meanwhile, China is reportedly spending more than $15 billion on its own quantum computing research. 🤑 

The latest tech arms race is on, and Google just fired a major shot. That’s why shares jumped out of their recent lull and are once again approaching all-time highs.

Stocktwits sentiment is still ‘extremely bullish,’ with the majority of the community saying it’s ‘a top tech stock to hold’ regardless of these developments. If the market can regain its footing, many are expecting fresh all-time highs in Alphabet soon! 👍️ 

Source: Stocktwits.com

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EARNINGS
GameStop Games The System (Again) 🎮️ 

Despite widespread speculation following his December 5th tweet, Roaring Kitty did not make an appearance ahead of GameStop’s earnings…allowing the stock to drift slightly lower ahead of its results.

As for the actual business, its share offering during the quarter helped bring its cash and cash equivalents balance up to $4.6 billion. Although the company has mastered the art of selling its stock, it still hasn’t figured out how to sell its core product, which is video game-related hardware, software, etc. 🤔 

Revenues fell 20% YoY to $860 million, missing expectations of roughly $888 million. Yet another quarter of revenue declines and a management team that outlines no

Still, the stock is up because of its massive cash pile and investment in U.S. Treasuries, which helped drive net income of positive $17.4 million. Roughly $54.2 million in interest income offset an operating loss of $33.4 million, driving the bottom-line result. 💸 

Management has a ton of runway ahead of it to figure out what it’s going to do with that cash to get the core business back on track. But investors won’t get any insights into their current thinking right now because the company skipped its quarterly conference call for the eighth straight quarter.

As a result, investors and traders are left to rely on speculation and Roaring Kitty appearances to help drive moves in the stock. With about a third of its market cap being cash, the company is in a great position to build a better, brighter future. It’s just unclear when that transformation will begin.

Stocktwits community sentiment shifted into ‘bearish’ territory after the bell, but our current poll of users shows that 69% (nice) view today’s results as positive. 🐂 

Source: Stocktwits.com

Time will tell if this is enough to bring sustained momentum back into the stock price. History has suggested otherwise, but maybe this time will be different. The believers are certainly betting on that being the case. 😬 

By the way, I joined Yahoo Finance! today to talk about GameStop earnings and other retail investing and trading trends. Check out the video if you’re interested! 📺️ 

STOCKS
Other Noteworthy Pops & Drops 📋️ 

Chimerix (+227%): The microcap biopharmaceutical company announced plans to submit a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for Dordaviprone under the Accelerated Approval pathway by year-end.

uniQure (+108%): The gene therapy company reached its highest level since mid-June 2023 after announcing it had reached an agreement with the U.S. Food and Drug Administration (FDA) on key aspects of an Accelerated Approval pathway for its AMT-130 treatment, a potential therapy for Huntington’s disease.

General Motors (+3%): The automaker is discontinuing its robotaxi business, Cruise, which its former CEO once championed as a major growth driver.

Stellantis (+1%): The automaker announced a $4.3 billion joint venture with Chinese company CATL to build a European battery plant in Zaragoza, Spain.

Kroger (+6%): A federal judge blocked its $25 billion merger with Albertsons, which would have been the largest supermarket deal in history.

Taiwan Semiconductor (-3%): The world’s largest contract chipmaker reported a 34% YoY jump in November revenue, citing strong AI demand. Still, weakness in Nvidia and the broader chip sector dragged the stock lower.

Broadcom (-4%): Citigroup raised its price target from $175 to $205, maintaining a “Buy” rating ahead of its earnings report Thursday after the bell. The hangover from Nvidia’s recent antitrust troubles dragged the entire sector lower.

Oracle (-7%): The tech giant’s earnings and revenue just missed estimates and its forward guidance was also lighter-than-anticipated.

Rigetti Computing (+49%): The company announced that it had successfully used artificial intelligence (AI) to automate the calibration of a quantum computer.

MongoDB (-17%): The software company reported strong third-quarter results and raised its full-year outlook, but news that its COO and CFO, Michael Gordon, would be stepping down raised major questions for investors.

Walgreens (+17%): The struggling retail pharmacy chain jumped following a WSJ report that it’s in talks with private equity firm Sycamore Partners for a potential go-private transaction.

Forum Energy (+5%): The diversified energy company announced a $75 million share buyback and the completion of sale-leaseback transactions.

MIcroStrategy (+3%): The Bitcoin holding company rose on speculation that it will be added to the Nasdaq 100 during its December rebalancing.

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WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Consumer Inflation Rate CPI (8:30 am ET), Bank Of Canada Rate Decision (9:45 am ET), EIA Energy Inventories (10:30 am ET), U.S. Monthly Budget Statement (2:00 pm ET). 📊

Pre-Market Earnings: Vera Bradley ($VRA), Photonics ($PLAB), REV Group ($REV). 🛏️

After-Hour Earnings: Adobe ($ADBE), 17 Education & Tech ($YQ). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

Links That Don’t Suck 🌐

🎧️ Stocktwits “Trends With Friends:” Bowlero talks growth in the location-based entertainment space, its name change to Lucky Strike, and more!

🚘️ Amazon is officially in the online car sales business

😨 ‘We’re absolutely in panic mode’: Toymakers are bracing for Trump’s tariffs

🏭️ Dodge maker Stellantis and China’s CATL team up to build $4.3 billion EV battery plant in Spain

😋 Alaska Airlines plans new nonstop flights to Japan, Korea in $1 billion postmerger profit push

🧑‍💼 Stellantis CEO Carlos Tavares lost control of the automaker with ‘arrogant’ mistakes, sources say

👵 A phone company developed an AI ‘granny’ to beat scammers at their own game

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