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Everybody knows about the Mag7. But have you heard about the "Unprofitable 858" ???
Meme stocks and YOLO bets are back and fuelling the market’s rally. Shares of unprofitable companies have outperformed since April, and investors are now speculating like it’s 2021 again... Source: HolgerZ, WSJ
$JPM JPMorgan has outperformed 5 of the Magnificent 7 over the last 5 years.
Source: Koyfin
JUST IN 🚨: EXTREME GREED RETURNS to the Stock Market for the first time this year 🥳🤑
This is the highest reading since March 2024! Congrats everyone, we did it ! Source: Barchart
Mind the gap... US exceptionalism explained in one chart
US stocks remain expensive vs. the rest of the world but this is justified by strong profitability versus global peers Source: Blackrock thru Mike Zaccardi, CFA, CMT, MBA
If you follow and believe in the Presidential Cycle..
Source: Nautilus Research through RBC
‼️ New listing volume in Hong Kong Stock Exchange jumped around eight times to $14 billion in the first half of this year.
▶️ The frenzy came after years of lackluster IPO activity in the city. ▶️The renewed interest is fueled by a confluence of factors, including Beijing’s regulatory tailwinds, lackluster A-share listings and delisting fears in U.S. markets. https://lnkd.in/eK4PnfUQ Source: CNBC
‼️ The IBM revival. The stock has doubled over the past 18 months, breaking through its historic ~$250bn market cap ceiling from 1999 and 2012.
So how can we explain such a comeback for this iconic company? It is primarily due to its successful transformation into a leader in enterprise artificial intelligence (AI) and hybrid cloud solutions, which has driven strong financial performance and investor confidence. Key factors behind this surge include: ▶️ Strong AI and Cloud Growth: IBM's AI business bookings have surged to over $5 billion, growing nearly $2 billion quarter-over-quarter, and its Red Hat subsidiary, a major hybrid cloud platform, grew 17% in a recent quarter and is expected to contribute $3 billion in revenue this year. This software-led strategy and expanding AI capabilities have been pivotal. ▶️Robust Financial Results: IBM reported solid earnings beats and a bullish 2025 forecast with expected revenue growth exceeding 5% and free cash flow growing even faster, targeting about $13 billion in free cash flow.
