MicroStrategy Jumps Upon Nasdaq Entry

Good morning. It’s December 16th, and today we’ll look at MicroStrategy’s rise after being included in the Nasdaq 100, the continued fall of Super Micro Computer, and an AI-enabled e-commerce platform that has nearly doubled itself in premarket trade.

Previous Close 📈

U.S. stock markets closed with mixed results on Friday. The Dow Jones Industrial Average declined by 86.06 points (-0.20%), marking its seventh consecutive loss. The S&P 500 also edged down slightly by 0.16 points. In contrast, the Nasdaq Composite rose by +0.12%, buoyed by gains in technology stocks, notably Broadcom.

Futures

U.S. stock futures are showing modest gains today. Dow Futures are up 49.00 points (+0.11%) at 44,386.00, S&P Futures have risen 8.75 points (+0.14%) to 6,134.50, and Nasdaq Futures have increased by 56.00 points (+0.25%) to 22,138.00.

Security

This Tiny Company Could Be the Future of Cybersecurity

A revolutionary technology is on the verge of reshaping the world as we know it—and hostile nations like China, North Korea, and Russia are racing to control it.

This technology, called quantum computing, is no longer science fiction. It’s real, and it’s poised to be a billion times faster than the most advanced systems today.

With it, America’s enemies could break encryption codes, access classified secrets, and undermine national security.

But where there’s risk, there’s also opportunity. The growing need to combat these threats could fuel an estimated $2 trillion in cybersecurity spending annually.

One under-the-radar company is positioned to ride this wave, developing groundbreaking solutions to safeguard data and thwart quantum-based threats.

Click here to discover this emerging opportunity and learn how to align your portfolio with the future of cybersecurity.

What to Watch

Zedge (ZDGE) will announce its quarterly earnings today before the market opens, offering insights into the digital content and mobile applications space.

After the market closes, Red Cat Holdings (RCAT), Compass Minerals (CMP), RCI Hospitality Holdings (RICK), and Mama's Creations (MAMA) will release their results.

On the economic front, the Empire State Manufacturing Survey for December will be released at 8:30 a.m. ET.

At 9:45 a.m. ET, the S&P Flash U.S. Services PMI and S&P Flash U.S. Manufacturing PMI for December will be published, offering a snapshot of activity in the service and manufacturing sectors.

Interactive Media

Zedge Stock Falls Upon Q1 Results as Revenue Misses Slightly Despite Strong Subscription Growth

Zedge Inc. shares are falling nearly 5% in premarket trade as its Q1 FY25 revenue is slightly below estimates despite notable gains in subscription growth.

The company’s $7.2 million revenue for the quarter ending October 31, 2024, is 1.6% higher than the previous year but is just shy of the $7.28 million estimate given by analysts.

Zedge also has a GAAP net loss of $0.3 million, or $0.02 per share, as compared to breakeven results in the prior-year period. Adjusted EBITDA is at $0.3 million, highlighting resilience in operational efficiency amidst advertising challenges that hindered overall growth.

Key drivers of performance include a 21% rise in Marketplace subscription revenue, supported by an 8% increase in subscriber numbers and a 22% boost in Average Revenue per Monthly Active User (ARPMAU).

Zedge Premium's gross transaction value surged 61.6% to $0.7 million, and Emojipedia revenue climbed 33% year-over-year. However, advertising revenue was impacted by coding errors and delays in ad partner integrations.

Looking ahead, Zedge anticipates a stronger Q2 as seasonal trends and the resolution of advertising issues are expected to drive growth. The company continues prioritizing AI-driven innovation and enhanced user engagement as part of its strategic roadmap.

Technology

Server Maker Super Micro Stock Tumbles as Delayed Filing and Fundraising Weigh on Outlook

Super Micro Computer (SMCI) shares are down 15% in premarket trading today, extending last week’s 17% decline as concerns mount over delayed financial filings and a reported plan to raise fresh capital.

Bloomberg reported Friday that the server maker is working with investment bank Evercore on options, including selling additional shares or bonds to bolster its finances. Super Micro has not commented on the report.

The company has faced scrutiny since delaying its financial filings with the Securities and Exchange Commission. Although an internal investigation found no evidence of misconduct, Super Micro has until February 25 to submit its accounts to avoid delisting from the Nasdaq.

In a related move, the company replaced Ernst & Young as its auditor after the firm stepped away, citing concerns about associating with Super Micro's financial statements.

Super Micro’s stock, which peaked at $119 earlier this year, has experienced a volatile trajectory, hitting lows of $18 before recovering. Despite recent losses, shares are up 28% year-to-date and nearly 70% in the past month. However, its smaller market capitalization led to its removal from the Nasdaq 100 index during a recent reshuffle.

Investor concerns over the company’s financial stability and reporting delays continue to weigh heavily on its outlook.

Cryptocurrency

Bitcoin-Heavy MicroStrategy Joins Nasdaq 100, Stock Surges

MicroStrategy (MSTR) shares are up 5% in premarket trading today as the company is set to join the Nasdaq 100 index, a move that could amplify its stock rally. Known for its massive bitcoin holdings, the software firm brings indirect exposure to the digital currency to the $25.7 trillion index, which tracks the largest non-financial companies in the U.S.

MicroStrategy currently holds $44 billion worth of Bitcoin, accounting for roughly 2% of the cryptocurrency’s total supply. The stock has already soared nearly 550% this year, mirroring bitcoin’s surge.

Its inclusion in the Nasdaq 100 may attract more buying from index-tracking funds, potentially further lifting its stock price and enabling the company to increase its bitcoin holdings through debt and equity offerings.

Bitcoin hit a record $106,000 today following President-elect Donald Trump’s proposal to establish a U.S. Bitcoin reserve. MicroStrategy’s market cap now exceeds $100 billion, more than double the value of its bitcoin holdings.

The Nasdaq 100 reshuffle also adds Palantir and Axon Enterprise while removing Illumina, Super Micro, and Moderna. Trading with the updated index begins on December 23.

Technology

This $0.26 Company is Disrupting the $1 Trillion Smartphone Industry

Imagine a smartphone that pays you to use it. That’s the vision behind a fast-growing company that’s changing the way people view mobile technology.

With over $325 million earned and saved by users already, this company has unlocked a new market serving billions of underbanked individuals. Its innovative platform is driving explosive growth—32,481% to be exact—while attracting partnerships with major global retailers.

For just $0.26/share, you can join a movement poised to disrupt a trillion-dollar industry and transform lives around the world.

Click here to learn how you can be part of this game-changing opportunity.

WEBUY GLOBAL LTD. [WBUY] - Last Close: $0.18

Webuy Global's stock is surging 90% in premarket trading today.

The company has advanced to the next phase of NVIDIA’s AI Accelerator Program.

This program, supported by Singapore’s Economic Development Board and other tech leaders, provides access to NVIDIA’s cutting-edge AI resources.

Webuy leverages AI for features like personalized travel planning, predictive demand analytics, and enhanced social shopping interactions.

Progressing in the program positions Webuy to refine these innovations, boosting operational efficiency and customer engagement.

This milestone aligns with its expansion goals across Southeast Asia, reinforcing its reputation as a leader in AI-driven community e-commerce.

Edgewise Therapeutics, Inc. [EWTX] - Last Close: $27.62

Edgewise Therapeutics' stock is up by more than 25% in premarket trading today.

The firm announced positive results from a mid-stage trial for its experimental drug, Sevasemten.

The drug, designed to treat Becker Muscular Dystrophy—a rare genetic disorder causing muscle weakness—met the study’s primary goal.

With the stock already more than doubling this year, the promising study results have further boosted investor confidence in Edgewise's innovative therapies.

Viridian Therapeutics, Inc. [VRDN] - Last Close: $17.85

Viridian Therapeutics is up 18% before the opening bell today.

The firm has announced positive topline results from their Phase 3 THRIVE-2 clinical trial for Veligrotug in patients with chronic Thyroid Eye Disease.

The trial met its primary endpoint, demonstrating a significant reduction in proptosis (eye bulging) compared to placebo. This positions Veligrotug as a potential competitor to existing treatments for TED, such as Amgen's Tepezza.

This successful trial outcome has significantly boosted investor confidence in the company's drug development pipeline.

Cybersecurity

This Could Be the Breakthrough That Defends the Internet as We Know It

The age of quantum computing is here, and with it comes unprecedented risks. Hostile nations like China and Russia are racing to develop quantum systems capable of breaking the encryption protecting sensitive government, corporate, and personal data.

The implications are staggering. With this "Master Key" to the internet, no system would be safe. Businesses and governments are projected to spend up to $2 trillion annually to defend against these threats.

But one innovative company is leading the charge to secure the digital world.

Developing quantum-resistant cybersecurity solutions, this firm is at the forefront of protecting vital systems from emerging quantum threats.

For investors, the opportunity is clear: as quantum technology disrupts industries, the demand for solutions like this will surge.

Click here to uncover the company poised to lead the charge in quantum defense.

Everything Else

• The Trump administration will prioritize gas-powered vehicles and domestic battery production over EVs.

• Honeywell’s board reviews an aerospace split following Elliott’s call for a company breakup.

• The historic Royal Mail is set for foreign ownership as the UK clears EP Group’s acquisition.

• Softbank plans a $100 billion U.S. investment, doubling down on AI and infrastructure development.

• Tinubu’s reforms attract a $5 billion investment in Bonga North from Shell, boosting Nigeria’s oil industry.

• Singapore blocks Allianz’s acquisition of Income Insurance, prompting withdrawal of the offer.

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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