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✈️All You Need $LUV
Southwest Airlines gets a pop on new activist investor stake, Apple gears up for big WWDC event and more
Charla Hojnacki
June 10, 2024
Happy Monday Zingernation! First, Apple was a fruit. Then, it was a computer company. Later, it became a phone company. And now? It’s trying to position itself as an AI company. Here’s everything you need to know heading into the company’s WWDC event today.
—Aaron Bry & Nic Chahine
Plus, take a look at the med-tech company that’s aiming to pioneer the industry through cutting-edge technology.
MARKET SNAPSHOT
Last Week: We touched new all-time highs on the overall market, but strong labor market data put doubts on the Fed’s ability to cut rates, sending stocks lower.
On Our Radar: Big week for economic data with CPI due Wednesday, PPI on Thursday and the Fed’s interest rate decision coming Wednesday afternoon as well.
TOP STORY
Briefly: NVIDIA shares traded lower in premarket trading on Monday, towing in line with the sentiment that prevailed in the futures market.
Basically: In premarket, the stock was down 0.42% at $120.38, according to Benzinga Pro data. The Nasdaq Composite and S&P 500 futures were down 0.02% and 0.09%, respectively. After hitting a record high on Wednesday, when the company’s market cap breached $3 trillion, the stock has pulled back in the previous two sessions.
So: Nvidia begins to trade on a split-adjusted basis on Monday following the 10-for-1 stock split that was implemented Friday after the close. A stock split theoretically should not impact a stock’s price, given that no new shares are issued in the process and shareholders’ ownership is not diluted. This corporate action merely makes the shares affordable for retail traders.
The Details: With Nvidia’s 10-for-1 split, a Nvidia shareholder will have 10 shares for each share they held before the split but the value of the total holdings remain the same. Essentially, Nvidia’s market capitalization remains the same but the number of outstanding shares varies depending on the split ratio.
Expected Weakness? Typically, shares see some weakness immediately after the split, potentially due to profit-taking following the pre-split run-up. They normalize thereafter and begin trading in line with fundamentals.
PRESENTED BY CALEB & BROWN
Bitcoin’s recent surge in value, a topic that has caught the attention of both investors and casual observers, might have left some wondering if they missed out on a golden opportunity. In truth, the cyclicality of Bitcoin’s price will likely always leave room for individuals to enter at a reasonable price point and benefit from the appreciation that occurs.
Factors like supply and demand, Bitcoin halvings, increased adoption and inherent cyclicality all continue to create potential opportunities in the cryptocurrency.
For individuals who want to remain abreast of the latest Bitcoin and cryptocurrency developments, Caleb & Brown, the world’s leading cryptocurrency brokerage, offers the latest information about what's happening within the cryptocurrency landscape.
Click here to learn more.
FIVE ZINGERS
Warren Being Warren: Buffett and Berkshire Hathaway doubled down on $OXY yet again, buying more shares after a recent dip.
Who Killed The Electric Car Phone?: Elon Musk shot down the idea that Tesla would one day get into the smartphone space. Here’s why.
$PLAY Of The Day?: Dave & Buster’s is getting some love from analysts ahead of the entertainment company’s earnings report later this week.
Robot Takeover: Tesla is one of many companies working on humanoid robots. And Musk thinks one day, they will outnumber us.
Show Me Some $LUV: Southwest Airlines popped Monday morning after Elliott announced an activist position worth around $2 billion.
ONE FOR THE ROAD
Briefly: Venture capitalist Naval Ravikant stated on Sunday that he would sell his Tesla stock if Elon Musk’s $56 billion compensation package is not approved, and buy more if it is passed.
What Happened: Ravikant took to X to announce that he is a Tesla stockholder and will vote in favor of Musk’s rescinded pay package. Musk's 2018 pay package was rescinded by the Delaware Court of Chancery earlier this year, deeming it “an unfathomable sum.”
So: Tesla’s board is now attempting to reinstate the rescinded pay package with another shareholder vote, the results of which will be declared at the company’s annual shareholder meeting on June 13.
Quoted: On Sunday, Ravikant described the invalidation of Musk’s pay package as “politically motivated.” “A politically motivated judge invalidated a private deal ex-post facto,” he wrote on X.
Click here for the full breakdown.
No, these aren't covered calls or complicated trades… Just wait for a stock to hit the “MoneyLine” on the chart. There’s no fancy indicator or software you need, just a free chart. It’s simple. Buy when it hits the MoneyLine… sell when it touches the next MoneyLine. That’s all. Nic Chahine has used this method for the last 20 years to trade full-time and win more than almost all other options trader.
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