Happy Tuesday, Zingers! Has your favorite sports team ever started the season super hot and you feel on top of the world? Unfortunately, they don’t hand out championships to teams that start the year 3-0.

Running out of momentum can be a serious problem, and the same goes for stocks. The ‘momentum mania’ ran out of some steam yesterday, with high-flying stocks like Carvana, Celsius, and Super Micro Computer trading lower and underperforming the overall market. Mo’ mentum, mo’ problems if you ask me!

Before we dive in, check out today’s partner who’s reshaping how people get in a workout at home.

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MARKET SNAPSHOT

Yesterday: The calm before the storm. Some momentum names ran out of steam, but the overall market was largely flat as investors remained tentative ahead of this morning’s big CPI report.

On Our Radar: CPI Day! The expectation is for CPI to come in at .3% in February, slightly lower than it was in January. Core CPI is expected to fall from 3.9% to 3.7% YoY. Buckle up!

TOP STORY

Oracle’s Stock Moves Higher On Up-Beat Earnings, Strong AI Demand

Briefly: Well, the momentum isn’t slowing down for all AI plays. Oracle reported earnings after the close yesterday and traded higher on increased AI demand, despite missing revenue estimates.

The Details: Oracle’s third-quarter revenue increased 7% year-over-year to $13.3 billion, which missed the consensus estimate of $13.306 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.41 per share, which beat average estimates of $1.38 per share.

Going Up: Total remaining performance obligations were up 29%. Total cloud revenues were up 25%, cloud infrastructure revenues were up 49%, cloud application revenues were up 14%, Fusion cloud revenue was up 18% and NetSuite Cloud ERP revenues were up 20% in the quarter.

Quoted: “We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply—despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly,” said Safra Catz, CEO of Oracle.

Click here to read more.

PRESENTED BY BEACH BODY

Taking The Gym To The Living Room: How Beachbody is Getting in Shape With its Overhaul

Habits learned during the pandemic are hard to break. That’s particularly true of the at-home fitness market. It’s projected to grow at a CAGR of 32.7% through 2032, reaching a valuation of $250.7 billion. 

The Beachbody Company, Inc. (NYSE: BODY) is trying to capitalize on that. The granddaddy of at-home workouts, which now goes by BODi, has made a name for itself thanks to fitness programs like P90X and Insanity. At last count, it has a library of over 120 different workouts. It also does brisk business selling Shakeology and other fitness-focused supplements and drinks. 

Under the leadership of executive chairman Mark Goldston, BODi has successfully navigated a turnaround, slashing $165 million in costs since 2021, and launching a 1000 bps improvement in Sales and Marketing in 2024. The company's focus on the digital platform overhaul has resonated with users, with about 60% of subscribers renewing with the new BODi offering, surpassing internal expectations. 

As the fitness landscape continues to evolve, BODi's strategic initiatives and adaptability should position it as a player in the flourishing virtual fitness market. Click here to learn more about the BODi platform.

FIVE ZINGERS

MongoDB’s stock moved lower in yesterday’s session, despite posting strong earnings last Thursday.

Nio shares moved higher Monday alongside several Chinese stocks amid multiple developments. Here’s a look at what’s going on.

Celsius shares needed some caffeine yesterday, closing down more than 4% as the ‘momo’ trade ran into a wall.

On Holding’s stock ran higher Monday as investors took a bullish stance on the shoe company ahead of its earnings report this morning.

New York Community Bancorp shares continued to dip Monday as traders appear concerned about the failing bank’s rescue plan.

ONE FOR THE ROAD

No Stock Market Bubble In Sight, Says Analyst

Basically: Good times for the market are often celebrated by investors. But when tailwinds are long-lasting, a question arises: are we in a bubble?

On A High: The S&P 500 has experienced a remarkable run in recent months, led by substantial growth in the tech sector. Since the start of the year, the index has repeatedly closed at historic highs, beating the latest record last week. The index is up over 32% in the past year.

Raising Expectations: Last week, Bank of America analysts raised the S&P 500's one-year price target from 5000 to 5400, raising the expected growth by 5%. Analysts are expecting the index to yield 13% in the coming 12 months, yet they warned that the sustained growth could be preceded by a pull-back in the near term.

Quoted: Analyst Savita Subramanian explained in a note released on Monday that following last week's price target correction, her team received pushback from investors and colleagues who "see the market is trading in bubble-like territory", and think it's time for "something else to break from the Fed’s aggressive monetary policy."

Click here for the full analyst breakdown.

PRESENTED BY BEACH BODY

Fitness On Your Mind? Ring In The New Year With BODi

Is getting in shape on your list of New Year’s resolutions? Then The Beachbody Company Inc. (NYSE: BODY) may be able to help. The health and wellness company that now goes by BODi has been offering consumers on-demand subscription-based fitness and wellness programs for over twenty-five years. It recently revamped its digital platform, providing exercise enthusiasts with various workouts for every fitness level. 

The company is in expansion mode, focused on reaching more customers. An important aspect of that is its new subscription tier BODi Previews. Potential customers can sample more than $59 worth of BODi content for free including popular workout programs P90X, Insanity, 21 Day Fix, and #MuscleBurnsFat. Users also get access to nutrition guidelines and personal development content. BODi is also launching a limited version of BODi Previews on YouTube, providing access to a wider audience. BODi is also bulking up its direct sales program, incentivizing individuals to sell more of its product. 

With fitness on the minds of millions as we ring in 2024, BODi is doing its part to make that resolution easier with its BODi Previews, which you can check out here.