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🚀 Rocket Ride, Back On
Chip stocks bounced back after tough Wednesday, Rivian gets a strong bounce and more
Charla Hojnacki
May 03, 2024
Happy Friday Zingernation! You might be the richest dude in the world. You might even own three companies worth more than $10 billion. But that won’t stop you from watching what your peers are doing.
-Aaron Bry and Nic Chahine
Plus, check out the lithium company that’s helping power the EV boom.
And, crypto is so back. Billions of dollars are flowing into the new Bitcoin ETFs, driving prices to near all-time highs. Join thousands of engaged readers of Future Finance - our FREE digital assets newsletter.
MARKET SNAPSHOT
Yesterday: Was a big bounce-back day for bulls, with all major indices closing in the green after Wednesday’s sell-off.
On Our Radar: Jobs data coming your way bright and early! The U.S. employment report came out at 8:30 AM ET. There will also be a few earnings reports this morning like Hershey’s, Fubo, XPO Logistics, and more.
Plus: Looking to learn more about options? Join options masters Chris Capre and Matt Maley on SUNDAY at 1:00 PM EST! Click here to claim your free ticket.
TOP STORY
In Short: Carvana experienced a dramatic surge yesterday, with its stock leaping by 33% after reporting first-quarter earnings that surpassed expectations.
So: This jump pushed Carvana’s annual gain to over 1,500%, significantly deepening the financial squeeze on short sellers.
Basically: Bloomberg revealed that data from S3 Partners indicates that short sellers have now incurred losses totaling approximately $3.9 billion, with yesterday’s rise alone accounting for more than $860 million in paper losses.
The Price Action: Yesterday Carvana shares closed 33.8% higher, recording their strongest session since July 2023.
PRESENTED BY ATLAS LITHIUM
Atlas Lithium Corporation (NASDAQ: ATLX) has secured a definitive investment and offtake agreement with Mitsui & Co., Ltd. (OTC: MITSF), signaling confidence in the company's project and team. Mitsui will invest $30 million in Atlas Lithium and has committed to purchasing 15,000 tons of lithium concentrate from phase 1 of the Neves Project in Brazil's Lithium Valley, with a further agreement for 60,000 tons per year for five years from phase 2.
The investment will provide immediate funding for Atlas Lithium to continue project development and focus on generating revenue from the production and sale of environmentally friendly lithium concentrate. This partnership marks a significant milestone for Atlas Lithium as it aims to become a key lithium supplier in the global EV battery materials supply chain. Mitsui's long-established presence in Brazil and profitable mining investments add further credibility to the collaboration.
FIVE ZINGERS
Block Party: Block, formerly Square, reported strong earnings after the close yesterday, sending the stock higher by more than 10%.
Rocket Chip: Semiconductor and chip stocks got back on track yesterday after AMD and SMCI earnings sent the sector lower on Wednesday.
All Clear: Microsoft’s acquisition of Call of Duty maker Activision got the all-clear after investigators failed to find wrongdoing or insider trading.
Rev, Rev, Riv: Rivian is revving up, and closed higher by more than 7% yesterday after receiving nearly $1 billion in incentive funding.
Bet On It: DraftKings reported strong earnings yesterday, and raised revenue and EBITDA guidance.
ONE FOR THE ROAD
What’s Happening: Fortinet reported its first-quarter financial results after the bell yesterday. Here are the highlights.
The Numbers: Fortinet reported quarterly earnings of 43 cents per share, which beat the analyst consensus estimate of 38 cents. The quarterly revenue grew 6.97% year over year to $1.35 billion, beating the analyst consensus estimate of $1.338 billion.
Quoted: "We are diligently executing on our strategy announced six months ago to leverage our scale, go-to-market capabilities, customer-first focus, and engineering expertise to capitalize on the fast-growing Unified SASE and Security Operations markets while continuing to gain market share in Secure Networking," said CEO Ken Xie.
Outlook: Fortinet expects second-quarter adjusted earnings between 39 and 41 cents per share, versus the 40 cents estimate. It also expects revenue between $1.375 and $1.435 billion, versus the $1.394 billion estimate.
Click here to read more.
PRESENTED BY ATLAS LITHIUM
Atlas Lithium Corporation (NASDAQ: ATLX) has secured a definitive investment and offtake agreement with Mitsui & Co., Ltd. (OTC: MITSF), signaling confidence in the company's project and team. Mitsui will invest $30 million in Atlas Lithium and has committed to purchasing 15,000 tons of lithium concentrate from phase 1 of the Neves Project in Brazil's Lithium Valley, with a further agreement for 60,000 tons per year for five years from phase 2.
The investment will provide immediate funding for Atlas Lithium to continue project development and focus on generating revenue from the production and sale of environmentally friendly lithium concentrate. This partnership marks a significant milestone for Atlas Lithium as it aims to become a key lithium supplier in the global EV battery materials supply chain. Mitsui's long-established presence in Brazil and profitable mining investments add further credibility to the collaboration.