- Elite Trade Club
- Posts
- Biotech Firm More Than Doubles Today
Biotech Firm More Than Doubles Today
Adam Garcia
January 24, 2025
Good Afternoon!
Hey, everyone. It's Adam from Elite Trade Club.
Here’s what moved the market today.
High-Growth Gaming Stock
The iGaming market is experiencing unprecedented growth, with New Jersey alone hitting a record $2.4 billion in revenue last year. Amid this surge, one company is carving out a dominant position with a strategy designed for sustainable, high-margin growth.
Unlike others chasing risky sports betting ventures, this company focuses on high-value VIP casino players. With proprietary AI technology driving customer retention and efficiency, it has doubled industry averages for player retention and achieved 60% revenue growth in 2023.
Now, with its recent expansion into Latin America, the stage is set for even greater market share gains in the months ahead.
As the iGaming industry continues its upward trajectory, this could be the stock to lead the charge.
Markets 📈
The market lost some steam to end the week, causing several U.S. indexes to slip. The Nasdaq Composite fell the furthest, giving up half a percent on the day.
|
|
Market-Moving News 📈
Artificial Intelligence
Meta’s $65 Billion AI Expansion Lifts Stock to New High
Meta CEO Mark Zuckerberg announced plans to invest between $60 billion and $65 billion in capital expenditures, aiming to advance the company’s AI infrastructure significantly. Calling 2025 a defining year for AI, Zuckerberg revealed that Meta is building a data center large enough to cover a significant part of Manhattan. By the end of that year, the company expects to have 1.3 million GPUs online and bring in around 1 gigawatt of computing power to support new AI-driven products and services.
Shares of Meta reached a fresh all-time high on Friday following Zuckerberg’s announcement. Although the social media giant continues to rely heavily on digital advertising for revenue, it has poured billions of dollars into AI research in recent years. Zuckerberg acknowledges that returns on these investments may take time, describing a multiyear investment cycle before fully scaling.
Despite a steep share price decline earlier this year, Meta’s leadership remains optimistic. Zuckerberg says the company’s robust capital reserves will support long-term growth, and he expects the upcoming Meta AI assistant to exceed one billion users. He also outlined a plan for an AI “engineer” to contribute code to research and development, underscoring Meta’s ambitions to lead in the fast-evolving artificial intelligence sector.
Crypto
MicroStrategy Faces Potential Tax on Bitcoin Gains Under New Rules
MicroStrategy, a major corporate holder of bitcoin, could face a significant tax liability on unrealized cryptocurrency gains due to the corporate alternative minimum tax introduced in 2022. This tax applies to adjusted GAAP earnings, now including the fair market value of bitcoin under new accounting standards. Unlike traditional capital gains taxes that apply only to sold investments, this tax impacts unrealized gains, potentially leading to a substantial bill starting in 2026.
The company has reported a significant increase in retained earnings and deferred tax liabilities tied to its bitcoin holdings. To address this, MicroStrategy is advocating for an IRS exemption similar to those granted to companies holding traditional securities. Without such an exemption, the company might be forced to liquidate some of its bitcoin to cover tax obligations, although this remains a last-resort option.
This development underscores the evolving regulatory landscape for cryptocurrencies and its implications for corporate holders. As new rules reshape accounting and taxation practices, companies like MicroStrategy must navigate potential financial challenges while advocating for policies that better align with the unique nature of digital assets.
Smart Glass Revolution
Smart glass technology and AI are redefining industries, and one Nasdaq-listed company is emerging as a game-changing leader.
With blue-chip clients like BMW, Ferrari, and Mercedes-Benz, and a dominant 95% market share in cockpit shading systems, this company is uniquely positioned to capture massive market opportunities across automotive, aviation, and architecture.
Their 59% revenue growth from 2022 to 2023 is just the start, with projected aeronautics revenue alone estimated at $240 million. A recent nine-year production deal to supply smart glass technology for 50,000 vehicles annually signals significant growth ahead.
With AI enhancing real-world applications, including collision-detecting camera systems that are replacing rearview mirrors, this company is not just innovating—it's leading the charge into the future.
Entertainment
Amazon Focuses on Live Sports to Boost Prime Video Revenue
Amazon is reportedly shifting its Prime Video strategy to prioritize live sports broadcasting over its previous focus on original movies and TV shows. This change is seen as a key step toward meeting profitability goals for the platform, as live sports offer a prime opportunity for advertising revenue through real-time viewership.
The move highlights the growing competition among streaming platforms to secure live content. Sports broadcasts provide a unique draw for audiences and advertisers alike, prompting Amazon to make significant investments in this area. The company has reportedly been allocating substantial resources to acquire broadcasting rights for major leagues, such as the NBA and NFL, solidifying its presence in the sports entertainment market.
This strategy shift comes as Amazon’s entertainment division scales back on film and TV production, directing more resources toward live sports. Competitors in the streaming space are also exploring similar avenues, recognizing the potential of live sports to attract and retain subscribers while unlocking additional revenue streams.
Amazon’s broader entertainment budget for 2024, which includes sports, remains substantial, reflecting the company’s commitment to reshaping its content offerings to align with its financial objectives and market demands. The shift underscores the importance of live events in the evolving streaming landscape.
Top Winners and Losers 🔥
Allurion Technologies Inc [ALUR] $8.69 (+134.86%)
Allurion Technologies more than doubled after unveiling its plan to surpass healthcare giants Eli Lilly and Novo Nordisk.
BlackSky Technology Inc [BKSY] $14.96 (+25.29%)
BlackSky Technology shipped its first Gen-3 satellite for launch by Rocket Lab in February, sparking investor interest.
Twilio Inc [TWLO] $136.23 (+20.13%)
Twilio saw significant gains thanks to its strong 2025 outlook and increased demand for AI.
U Power Ltd [UCAR] $5.60 (-30.09%)
U Power announced pricing for its upcoming $5 million registered offering, causing shareholder pullback.
Midland States Bancorp Inc [MSBI] $20.00 (-20.00%)
Midland States Bancorp is reeling after its Q4 report showed revenue and earnings drops compared to last year.
Telefonaktiebolaget LM Ericsson [ERIC] $7.62 (-14.38%)
Ericsson stock lost ground on fears that Trump’s U.S. tariffs will significantly dampen business opportunities.
Electrifying the Skies
Exploring the next wave of electric aviation stocks?
This company is leading the charge with its innovative approach to electrification and strong industry ties.
That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback!
Thanks for reading. I'll see you at the next open!
Best Regards,
— Adam G.
Elite Trade Club
📧 Like newsletters? Here are some newsletters our readers also enjoy. Explore
Click here to get our daily newsletter straight to your cell for free.
P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.