Wall Street "Embraces The Bubble"
Presented by
NEWS
Wall Street “Embraces The Bubble”
Source: Tenor.com
The market started the final full week of 2024 on a mixed note. The Nasdaq reached a record high, fueled by strong performance from Tesla, Broadcom, Apple, Amazon, and Google. Meanwhile, the Dow slipped into negative territory as Donald Trump’s pledge to crack down on industry middlemen hit healthcare stocks. 👀
Today’s issue covers Barron’s throwing caution to the wind, the Nasdaq 100’s announced changes, and other noteworthy pops and drops. 📰
Here’s the S&P 500 heatmap. 4 of 11 sectors closed green, with consumer discretionary (+1.35%) leading and energy (-2.20%) lagging.
Source: Finviz.com
And here are the closing prices:
|
S&P 500 |
6,074 |
+0.38% |
|
Nasdaq |
20,174 |
+1.24% |
|
Russell 2000 |
2,362 |
+0.64% |
|
Dow Jones |
43,717 |
-0.25% |
Most bullish/bearish symbols on Stocktwits at the close: 📈 $AHG, $AEHR, $LC, $XWEL, $TNXP 📉 $GRND, $CLSK, $NKLA, $UK, $RDDT*
*If you’re a business and want to access this data via our API, email us.
STOCKS
Barron’s Throws Caution To The Wind 🫧
The bullish animal spirit continues to run wild through Wall Street, with another great example from Barron’s Magazine this weekend, where the cover story calls for investors to “embrace the bubble.” 🤔
Source: Barron’s.com
For those who haven’t read the story, the author noted that investing was arguably too easy this year, citing the lack of volatility despite a presidential election, escalating global conflicts, uncertainty about the Fed and economy’s path, and more.
Still, the publication notes that the Trump administration’s deregulation drive and the continued advance of artificial intelligence (AI) could “act as rocket fuel” and send stocks into the stratosphere—or up 15% to 25%. 🚀
The author cites a number of Wall Street firms and strategists who acknowledge the potential risks ahead for the market but believe the bull run has more to go before it ultimately ends in disaster. Whether or not we’re ready for a dot-com redux remains hotly debated, but clearly, many fear the risk of not being bullish enough over that of being in the bearish minority and missing the rally. 😨
And the bullishness it happening at the individual stock level, too. Tesla has doubled in price over the last seven weeks, Broadcom added to its all-time high breakout following several analyst upgrades, and Apple is seemingly a few good days away from hitting a $4 trillion market cap.
We’re all aware that the current environment has been and continues to be a bit whacky. However, on Wall Street, you’ve gotta make hay while the sun is shining. And despite several potential clouds on the horizon, the sun is most certainly shining. 🤑
P.S. Since we’re talking bout sentiment, we should give an update on FartCoin. The memecoin reached a peak market cap of $891 million today…making it larger than over 40% of publicly traded companies. Ain’t that some shit? To keep up with the crypto market, subscribe to The Litepaper to receive our six-day-a-week coverage of the latest happenings. 🤪
SPONSORED
$11M Raised — 6 Days Left to Invest in the AI Company Everyone’s Buzzing About.
It’s not just another buzzword-filled startup… Meet Atombeam, the AI-driven disruptor aiming to change how data moves — faster, safer, and smarter. Investors are taking note, with over a $3M waitlist from their last round and $11M+ raised in this round — but the offering is closing soon.
Up to 4X Faster, $2.4M+ Defense Contracts. Atombeam’s patented AI software can send up to 4x more data over existing networks — without expensive hardware upgrades. That’s why names like the U.S. Space Force, U.S. Air Force are already customers. In 2023, Atombeam secured $2.4M in defense contracts.
Building industry relationships within a $200B market… Atombeam’s partnerships span NVIDIA, Intel, Ericsson, and HPE.1 Atombeam has a projected $200B global data center market by 2025. Now, you can invest in Atombeam.
$3M+ waitlist in last round, and only 6 Days to Invest…before Atombeam’s current funding round is closed. Over 7,500 investors have already invested across offerings, and one previous offering sold out. Invest now before the round closes on 12/18.**
*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. **This is a paid advertisement for Atombeam’s Regulation A+ Offering. This Reg. A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. Please read the Offering Circular and related risks at Atombeam’s webpage on StartEngine before investing. In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion.
STOCKS
Nasdaq 100 Announces Its New Constituents 🧺
Friday, after the markets closed for the weekend, the Nasdaq 100 index announced its annual changes. The index holds 100 of the largest non-financial companies listed on The Nasdaq Stock Market and is reconstituted each December. 🤖
There was widespread speculation and front-running potential additions and subtractions, so as usual, not everyone was left happy.
The stocks added were: Palantir Technologies ($PLTR), MicroStrategy ($MSTR), and Axon Enterprises ($AXON). The stocks removed were: Illumina, Inc. ($ILMN), Super Micro Computer ($SMCI), and Moderna ($MRNA). 💱
Despite a volatile trading session, most of the stocks closed near the flat line as much of this news was expected and priced in already. The exception was Super Micro Computer, which was removed just six months after being added and now has to refocus on its February 2025 financial reporting deadline.
The changes will go into effect on Monday, December 23rd, at the opening bell. The index also hit new all-time highs today on the back of mega-cap tech’s strength. 🔔
STOCKS
Other Noteworthy Pops & Drops 📋️
Tesla (+8%): Wedbush analyst Dan Ives raised his price target from $400 to $515, the highest on Wall Street. He cited growth opportunities in AI and autonomous driving under a Trump White House, which he expects will ease federal regulatory hurdles.
Micron Technology (+6%): Citi expects ongoing weakness in the Dynamic Random Access Memory (DRAM) sector to result in light first-quarter results and guidance. Still, Citi is optimistic that data center strength will offset consumer electronics.
Aehr Test Systems (+26%): The test and burn-in testing provider announced its first order from an artificial intelligence (AI) customer worth over $10 million.
Red Cat Holdings (+12%): The drone company announced a strategic partnership with Palantir Technologies. The collaboration aims to integrate Palantir’s advanced visual navigation software and Warp Speed, its manufacturing operating system, into Red Cat’s Black Widow drones, with an aim to improve autonomous operations for military applications.
Bloom Energy (+2%): BTIG raised its price target on the stationary fuel cell power generation company from $20 to $30, citing data centers as the driver for the biggest U.S. grid transformation since the 1920s.
Foghorn Therapeutics (+4%): Discontinued the independent development of its experimental drug FHD-286 in combination with decitabine for treating relapsed and/or refractory acute myeloid leukemia (AML).
WISeKey International (+51%): The Switzerland-based cybersecurity firm is preparing to launch its next-generation post-quantum-ready satellites with SpaceX.
Viridian Therapeutics (+21%): The company reported promising trial data for its experimental drug veligrotug, aimed at treating chronic thyroid eye disease (TED).
Nature’s Miracle Holding Inc. (+5%): The vertical farming technology and infrastructure firm surged after announcing a stock purchase agreement to acquire a 90% equity interest in J&Y Marigold to further strengthen its Bitcoin mining capacity.
Celsius Holdings (-3%): Roth MKM maintained its ‘Buy’ rating but lowered its price target from $40 to $38, citing weak initial reads on overall product demand trends.
Medirom Healthcare Technologies (-18%): The Japan-based wellness salon operator announced a Series A equity raise by its subsidiary.
Digital Brands Group (+3%): The luxury lifestyle apparel retailer’s 1-for-50 reverse split took effect last Thursday, sparking renewed retail interest.
Honeywell International (+4%): The company announced that its board of directors is exploring additional strategic alternatives for unlocking shareholder value, including the potential separation of its aerospace business.
WHAT’S ON DECK
Tomorrow’s Top Things 📋
Economic data: Retail Sales (8:30 am ET), Industrial Production (9:15 am ET), Business Inventories (10:00 am ET), NAHB Hosuing Market Index (10:00 am ET). 📊
Pre-Market Earnings: REE Automotive ($REE), Cheetah Mobile ($CMCM), Amentum Holdings ($AMTM). 🛏️
After-Hour Earnings: Worthington Enterprises ($WOR), cbdMD ($YCBD). 🎧
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 🌐
🎁 Celebrate the holidays with big discounts on IBD’s premium products every day from Dec. 13-24*
🤖 Which quantum computing stock do Stocktwits users see as the best long-term bet?
😬 Arm-Qualcomm contract fight threatens to upend chip industry
🛰️ EU signs $11B deal for sovereign satellite constellation to rival Musk’s Starlink
💵 Trump and SoftBank CEO announce the company will invest $100 billion in US projects
📫️ Britain clinches the terms of the deal to sell 500-year-old Royal Mail to a Czech billionaire
*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.
Get In Touch 📬
Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲
Help us deliver the best content possible by completing this brief survey. 📝
Email me (Tom Bruni) your feedback; I’d love to hear from you. 📧
Want to sponsor this newsletter and reach hundreds of thousands of passionate investors and traders? Reach us here.
Terms & Conditions 📝
Securities Disclaimer: STOCKTWITS IS NOT A TAX ADVISOR, BROKER, FINANCIAL ADVISOR OR INVESTMENT ADVISOR. THE SERVICE IS NOT INTENDED TO PROVIDE TAX, LEGAL, FINANCIAL OR INVESTMENT ADVICE, AND NOTHING ON THE SERVICE SHOULD BE CONSTRUED AS AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION FOR ANY SECURITY. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital, and not capital required for other purposes. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should also consult an attorney or tax professional regarding your specific legal or tax situation. The Content is to be used for informational and entertainment purposes only and the Service does not provide investment advice for any individual. Stocktwits, its affiliates and partners specifically disclaim any and all liability or loss arising out of any action taken in reliance on Content, including but not limited to market value or other loss on the sale or purchase of any company, property, product, service, security, instrument, or any other matter. You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Service will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which Content is published on the Service have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Read the full terms & conditions here. 🔍
Author Disclosure: The author of this newsletter does not hold positions in any of the securities or assets mentioned. 📋
