Jabil Stock Surging on Earnings Beat

Good morning. It's December 18th, and today, we’ll look at why Jabil Inc. is surging while General Mills is going down during premarket trade, plus a tiny biotech stock that has tripled in value before the opening bell.

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Previous Close 📈

All three major stock market indices declined yesterday as investors awaited the Federal Reserve's interest rate decision.

Futures

Futures are indicating a positive opening today. Dow Futures are up 117.00 points, S&P Futures are up +0.28%, and Nasdaq Futures are gaining by 60.75 points (+0.27%). There is optimism ahead of the Federal Reserve's anticipated 25 basis point rate cut, which is likely causing the uptick.

What to Watch

This morning, keep an eye on General Mills (GIS), Jabil (JBL), and Birkenstock Holding (BIRK), who will announce their quarterly earnings before the market opens.

On the economic front, the Housing Starts and Building Permits data for November will be released at 8:30 am ET, providing a snapshot of new construction activity and future housing supply trends.

After the close of the day's trading, Micron Technology (MU) and Lennar (LEN) will report their results.

Food

Earnings Beat Fails to Lift General Mills Amid Revised Guidance

General Mills shares are down -5% during premarket trade today despite surpassing earnings expectations for its fiscal second quarter.

The food giant’s adjusted EPS of $1.40 beat analyst projections of $1.22. Revenue also increased 2% year-over-year to $5.2 billion, slightly above the $5.14 billion estimate.

However, it is now anticipating an adjusted operating profit decline of 2-4% in constant currency, compared to its earlier guidance of flat to a 2% drop. The revision is due to increased promotional spending and other headwinds that are expected to impact the latter half of the fiscal year.

Chairman and CEO Jeff Harmening is highlighting progress in volume growth and market share during the first half, including a rebound in North America Pet sales, which grew 5%.

The company is maintaining its forecast for organic net sales growth of 0-1% for fiscal 2025 but is indicating that it now targets the lower end of that range. Adjusted EPS is expected to decline 1-3% in constant currency, a downgrade from the prior range of -1% to +1%.

Second-quarter results benefited from temporary factors like retailer inventory increases, which are anticipated to reverse in the coming months. North America Retail sales are flat, while the Pet division provided a rare bright spot with moderate growth.

Social Media

Reels Propel Instagram to Majority Share of Meta's US Ad Earnings

Instagram is projected to generate over half of Meta Platforms’ U.S. advertising revenue by 2025, driven by improved monetization strategies and a surge in video content engagement, according to a report by research firm Emarketer.

The report highlights Instagram’s transition into a video-first platform, with users dedicating nearly two-thirds of their time on the app to watching videos. Reels, Instagram’s short-form video feature, competes directly with TikTok and YouTube Shorts, offering marketers a compelling alternative as Meta integrates more ads into the format to bolster revenue.

The platform’s growth could further accelerate if a U.S. ban on TikTok takes effect, opening the door for Instagram and YouTube Shorts to capture reallocated ad dollars. Jasmine Enberg, principal analyst at Emarketer, suggests that Instagram could secure more than 20% of the redirected TikTok advertising spend in such a scenario.

In 2024, Instagram's ad revenue leaned heavily on its Feed (53.7%) and Stories (24.6%). By 2025, the share of revenue from Reels, Explore, and potentially Threads is expected to climb to 9.6%, reflecting Instagram's growing emphasis on diverse content formats.

Electronics

Strong Cloud and Data Center Sales Propel Jabil’s Stock Rally

Jabil Inc. is trading nearly 10% higher in premarket action today due to its stronger-than-expected results for the fiscal first quarter, which ended on November 30. The electronics manufacturing giant’s adjusted earnings of $2 per share significantly exceeded Wall Street’s estimate of $1.88.

Jabil’s $7 billion revenue is well above the consensus forecast of $6.6 billion. CEO Mike Dastoor is crediting the company’s success to robust performance in the Cloud, Data Center Infrastructure, and Digital Commerce markets.

For the second fiscal quarter, Jabil anticipates adjusted earnings per share in the range of $1.60 to $2, compared to analysts’ expectations of $1.79. For fiscal 2025, the company projects an adjusted EPS of $8.75, slightly above the consensus estimate of $8.69.

The upbeat results and optimistic guidance signal growing momentum for Jabil’s business, particularly in sectors with rising demand for digital and cloud services.

Jabil’s strong performance highlights its strategic focus on high-growth markets, further solidifying investor confidence as the company outpaces market expectations.

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Polyrizon Ltd. [PLRZ] - Last Close: $1.05

Polyrizon Ltd. is experiencing a 200%+ premarket surge today.

The company announced today that it has entered into a Good Manufacturing Practice (GMP) manufacturing agreement for its PL-14 allergy blocker.

Polyrizon is now preparing for a planned 2025 clinical trial.

Investors see this as a positive sign for the company, causing the sudden surge.

Nukkleus Inc. [NUKK] - Last Close: $11.88

Nukkleus Inc. shares are again surging by over 35% today after registering a massive 750% increase yesterday.

The company has secured a controlling 51% stake in Star 26 Capital Inc., which holds a 95% interest in RIMON, an Israeli defense contractor known for supplying components to the Iron Dome missile defense system.

This move signifies Nukkleus's shift from fintech to the defense sector, aiming to capitalize on increased global defense spending amid geopolitical tensions.

The acquisition, valued at $26 million, includes cash, promissory notes, and common stock, positioning Nukkleus to expand its presence in the defense industry.

Snow Lake Resources Ltd. [LITM] - Last Close: $0.1830

Snow Lake Resources Ltd. is seeing its stock rise by 130% in premarket trade today.

The firm announced positive preliminary results from its uranium exploration at the Engo Valley Uranium Project.

The company's focus on clean energy, particularly lithium and uranium, aligns with current market trends toward sustainable resources, boosting investor optimism.

The stock jumped over 17% yesterday on the news and is continuing to move up today.

Multi-Billion Dollar Industry

This $15 Company Could Be Wall Street’s Next Big Winner

While most investors chase the usual headlines, hedge funds are quietly swarming a company that’s set to disrupt a $90 billion industry critical to modern civilization.

Trading for less than $15 a share, this NYSE-listed firm has the backing of top Wall Street underwriters and is positioned to capitalize on a sector projected to grow 62% by 2032.

With major players like Ken Griffin’s Citadel already moving in, the smart money is catching on—but the window to act is closing.

This newly IPO’d stock could still be one of the most undervalued opportunities in today’s market.

Uncover the full details here before Wall Street catches up.

Everything Else

• Nissan and Honda explore a merger to tackle EV transition and global auto competition.

• The Observer changes hands as Tortoise Media acquires the world’s oldest Sunday newspaper.

• Salesforce secures 1,000 Agentforce deals and unveils AI-driven digital labor initiatives.

• AI-powered Databricks achieved a massive $62 billion valuation as it eyes an IPO and future growth.

• A Siemens Energy stake sale will support a major Altair acquisition while maintaining market stability.

• Merck partners with Hansoh on a potential breakthrough oral obesity treatment in a $2 billion agreement.

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

Best Regards,

— Adam Garcia
Elite Trade Club

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