The $0.30 AI Stock That Could Be the Next NVIDIA

Good morning. It's July 16th, and today, I will cover the impact of the Fed’s indications on cutting rates, an AI stock that is poised to explode, Tesla’s recent hiring spree, Activist Starboard’s interest in Match Corp, and more.

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Futures

Futures are up slightly as key indices closed in the green. Investors might be hoping that the unsuccessful bid on former President Donald Trump’s life will give the Republicans a leg up for November. If elected, the GOP may introduce favorable fiscal and tax policies for investors.

What to watch

Banking stocks are a must-watch today as Morgan Stanley and Bank of America announce their quarterly results in the morning session.

We’ll also get the U.S. retail sales data and Import Price Index this morning.

Economy

Powell Indicates Fed Won’t Wait for 2% Inflation Before Cutting Rates

Federal Reserve Chair Jerome Powell announced Monday that the central bank will not wait until inflation reaches 2% before cutting interest rates. Speaking at the Economic Club of Washington, D.C., Powell explained that monetary policy works with “long and variable lags,” meaning waiting too long could drive inflation below the target.

The Fed seeks “greater confidence” that inflation will return to the 2% level, buoyed by recent positive inflation data. Powell downplayed the likelihood of a “hard landing” for the U.S. economy despite these being his first public comments since the June Consumer Price Index report showed cooling inflation.

Powell clarified he wasn’t signaling when rate cuts might begin, with the next policy meeting scheduled for the end of July. The federal funds rate currently stands at 5.25% to 5.50%, significantly higher than during the COVID-19 pandemic.

The $0.30 AI Stock That Could Be the Next NVIDIA

AI is reshaping our world, and NVIDIA's meteoric rise to a $3 trillion market cap proves it.

But while everyone's chasing the next big tech giant, a little-known company is quietly revolutionizing public safety with AI—and it's trading for just $0.30.

They've achieved a 128% revenue surge in 2023, hitting $12.8 million, yet their market cap is only $35 million.

With the security robots market projected to explode to $120 billion by 2030, this company could be on the verge of NVIDIA-like growth.

Get the full story on this $0.30 game-changer before it hits the mainstream!

Electric Vehicles

Tesla Embarks on Major Hiring Spree Following Significant Layoffs

Tesla has launched a major recruitment drive, aiming to fill nearly 800 new positions just three months after CEO Elon Musk ordered the company's largest-ever round of layoffs. These job openings, which have recently appeared on Tesla’s careers page, cover a range of roles from artificial intelligence specialists to routine service positions.

This hiring surge comes amid a dramatic increase in Tesla's stock value, which has soared by over $223 billion in market capitalization over the past 14 trading days. During this period, the stock rose consistently, except for a minor setback when Tesla postponed the unveiling of its robotaxi prototypes due to Musk requesting design modifications.

Despite this recruitment effort, the number of new positions is relatively small compared to the thousands of jobs eliminated earlier this year. In May, Tesla had only three job postings following a significant miss in vehicle sales expectations, which led to a 20% drop in quarterly deliveries. This prompted Musk to slash the workforce by about 28,000 employees from the more than 140,000 that Tesla employed at the start of the year.

The new job listings indicate a strong focus on AI and robotics, particularly for Tesla’s humanoid robot, Optimus. The company is actively seeking to fill at least 25 roles related to self-driving technology and Autopilot, and at least 30 positions for Optimus development. This recruitment drive underscores Musk’s vision of transforming Tesla into a leader in AI, robotics, and sustainable energy, beyond its identity as an electric vehicle manufacturer.

Technology

Activist Starboard Acquires 6.5% Stake in Tinder Owner Match

Activist investor Starboard has acquired a stake of more than 6.5% in Tinder owner Match (MTCH) and is advocating for a potential sale if the company cannot successfully turn around its performance, as per a report. Match shares surged over 8% in pre-market trading on Tuesday following the news.

Starboard sees significant potential in improving Tinder, which generates more than half of Match's revenue, and also identifies growth opportunities for the Hinge app and other emerging platforms. The investor suggests that Match should consider going private and engage in more aggressive share buybacks if these changes do not yield results.

Match remains focused on the growth of Tinder and the expansion of Hinge, according to a company spokesperson, who emphasized ongoing open dialogue with investors, including Starboard.

Activist investor Elliott has also been pressuring Match for better performance, appointing Instacart executive Laura Jones and Zillow co-founder Spencer Rascoff to its board earlier this year. Additionally, Anson Funds Management has built a stake in Match, pushing for a board refresh amid the company's challenges with slowing revenue due to weaker discretionary spending in an uncertain economy.

Conduit Pharmaceutical [CDT] - Last Close: $0.2625

Conduit Pharmaceuticals is trending up after it announced the approval of its composition of matter patent application by IP Australia on July 15th.

The company has achieved successful examination of a patent on its lead asset, an HK-4 Glucokinase Activator which targets a wide range of autoimmune diseases.

The news has caused the stock to rise sharply this morning, going as high as 60% in pre-market trading.

Scisparc Ltd [SPRC] - Last Close $0.82

Scisparc is going up in a pre-market rally after it announced the submission of a U.S. Patent application for treating metabolic syndrome and weight loss in collaboration with Clearmind Medicine.

The stock increased by about 29% in pre-market trading, with an average volume traded of about 130k.

Silo Pharma [SILO] - Last Close: $1.07

Silo Pharma shares are up by +115% in premarket trade after it announced its entry into an exclusive global license agreement to further develop, manufacture, and commercialize its Alzheimer's drug SPC-14.

Silo intends to utilize the FDA's streamlined 505(b)(2) pathway for SPC-14, which would shorten clinical timelines and reduce drug development costs.

The stock has been trending up in the last week with an overall growth of 18% in the past five days.

Everything else

• BofA profit drops on lower interest income, outlook lifts shares.

• Microsoft’s hiring of staff from AI startup Inflection referred for U.K. merger probe.

• Morgan Stanley beats estimates on better-than-expected trading and investment banking.

• UnitedHealth Q2 profit beats expectations, shares dip on hack cost update.

• Schwab shares fall as new brokerage accounts miss estimates.

That’s all for today. Thank you for reading, and if you have any feedback, please reply to this email.

Best regards,

— Adam Garcia
Elite Trade Club

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