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Quantum Computing Company Rebounds for 25% Gains
Adam Garcia
December 20, 2024
Good Afternoon!
Hey, everyone. It's Adam from Elite Trade Club.
Here’s what moved the market today.
Gold
As gold rallies and experts project prices could climb beyond $5,000, a small-cap gold stock trading at just $0.21 is emerging as a standout opportunity.
Economic uncertainty is at an all-time high—massive layoffs, financial instability, and surging gold demand paint a clear picture. Backed by a major catalyst fueling record-breaking gold acquisitions, this company is poised to capitalize on the market's momentum.
For investors seeking growth in turbulent times, this could be the stock to watch.
Markets 📈
The market ended the week on a high note, with U.S. indexes gaining significant ground. The Dow Jones is back in top form, adding nearly 500 points to its total.
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Market-Moving News 📈
Healthcare
Novo Nordisk Shares Plunge After Disappointing Results for Obesity Drug Trial
Novo Nordisk recently reported disappointing results from a late-stage trial for its experimental obesity treatment, leading to a significant drop in its market value. The drug, which combines two active ingredients to suppress hunger and manage glucose levels, showed lower-than-anticipated weight loss in patients.
The trial revealed that the drug helped patients achieve weight loss of just over 22%, falling short of the company’s expectations. This outcome raises concerns about its competitiveness against rival treatments already on the market, particularly from other major pharmaceutical players. While the drug demonstrated the best weight loss seen in a late-stage trial, the complexity of its formulation and issues with patient tolerability could limit its potential.
Novo Nordisk plans to conduct another trial next year to explore the drug’s capabilities further. Despite this setback, the company remains optimistic about its long-term prospects in the growing obesity drug market, which is expected to expand significantly over the coming decade.
With shares taking a notable hit and investor confidence shaken, Novo faces mounting pressure to develop a more impactful successor to its existing treatments. The company’s ability to navigate this challenge will be critical as it continues to compete in the fiercely contested weight-loss drug market.
Consumer
Holiday Strikes by Starbucks Workers Threaten Seasonal Operations
Starbucks baristas are staging strikes in several cities, beginning with Los Angeles, Chicago, and Seattle, with plans to expand the walkouts in the lead-up to Christmas Eve. This coordinated action is intended to spotlight demands for improved wages and benefits, potentially causing delays for customers seeking holiday drinks and merchandise.
The relationship between Starbucks and its workers’ union, Starbucks Workers United, has grown increasingly strained. Earlier in the year, there were signs of progress, but recent negotiations ended without a resolution. The union is calling for substantial pay increases, while Starbucks has proposed more modest adjustments, citing financial limitations.
This year has been particularly challenging for Starbucks, with a notable slowdown in sales across domestic and international markets. Baristas are expected to see smaller annual raises next year, adding to worker frustrations. The union, representing over 500 Starbucks locations, has ramped up efforts to push for change, amplifying the stakes during the busy holiday period.
In addition to Starbucks, other major corporations are also facing strikes, as workers leverage the peak holiday season to demand better conditions. These actions could add further complications to an already hectic time for consumers and businesses alike.
Recreational Vehicles
Winnebago Faces Quarterly Loss as Consumer Demand Weakens
Winnebago Industries, a well-known manufacturer of recreational vehicles, reported a quarterly loss for its first fiscal quarter of 2025. This unexpected result highlights the company’s challenges with reduced consumer demand and cautious purchasing patterns from dealers.
Revenue declined significantly compared to the same period last year, driven by weaker sales across its towable and motorhome segments. Towable RV sales experienced a notable drop, while motorhome sales followed a similar downward trend. On a more positive note, marine vehicle sales saw modest growth.
The company has revised its earnings expectations for the full fiscal year, narrowing its forecasted range while maintaining its revenue outlook. These adjustments reflect the ongoing hurdles in the recreational vehicle and marine markets.
Executives noted that dealers are approaching new inventory purchases conservatively, particularly with the traditionally slow winter season approaching. While short-term conditions remain challenging, the company remains optimistic about its long-term market positioning and growth prospects.
Winnebago’s stock has faced significant pressure this year, reflecting the broader uncertainties in the recreational vehicle sector. With nearly a third of its value lost in 2024, the company faces the task of navigating a tough market while aiming to rebuild investor confidence.
Market Warnings
Despite recent rallies, big banks such as JP Morgan, Goldman Sachs, GMO, and Apollo Global Manage are warning that stocks could now be dead money - for the next 10 years.
At the same time, well-connected billionaires like Warren Buffett have been selling off US stocks at an alarming rate.
Today, one of America's most trusted market experts is stepping forward to explain what's really going on behind the scenes of this bull market - and why, even if you're sitting on large gains right now, you could soon face losses of 50% or more if you do nothing.
Top Winners and Losers 🔥
Rigetti Computing Inc [RGTI] $9.37 (+25.44%)
Rigetti Computing climbed back from yesterday’s lows, citing strong AI implementation in its processes.
Clearwater Paper Corp [CLW] $30.26 (+22.61%)
Clearwater Paper jumped after news that Suzano is interested in acquiring the company.
Mission Produce Inc [AVO] $14.45 (+17.29%)
Mission Produce reported excellent third-quarter results, prompting a hike in share price.
Innovative Industrial Properties [IIPR] $73.66 (-22.96%)
Innovative Industrial Properties fell after its tenant PharmaCann was defaulting on all its leases.
Scholastic Corp [SCHL] $19.81 (-20.25%)
Scholastic shared lackluster third-quarter results, causing investors to pull away.
Novo Nordisk ADR [NVO] $85.00 (-17.85%)
Novo Nordisk lost significant ground after its obesity drug missed forecasts.
High-Growth Stock
Amid economic instability and rising gold demand, one small-cap gold stock is standing out.
Trading at just $0.21, this company is positioned to benefit from record-breaking gold acquisitions and a market poised for a rally.
With experts forecasting gold prices surging to $5,000, this under-the-radar stock could offer exceptional growth potential for early investors.
As financial uncertainty continues to drive interest in safe-haven assets, the opportunity to capitalize on this momentum is now.
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
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