Rocket Lab Soars Upon US Grant

Author

Adam Garcia
November 25, 2024

Good morning. It's November 25th, and today we’ll look at why Bath & Body Works is surging while Macy’s shares are struggling in premarket trade, as well as how a double whammy from Rocket Lab has sent its shares through the roof.

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Wall Street started the Thanksgiving week on a high note, with U.S. equities posting solid gains last week. The Dow climbed 2%, closing at a record high on Friday, while the S&P 500 and Nasdaq Composite both rose 1.7%.

Futures

Stock futures are climbing early today ahead of a shortened trading week. Dow futures are up 302 points (0.7%), S&P 500 futures rose 0.5%, and Nasdaq-100 futures gained 0.6%. The advance reflects continued optimism from last week’s rally, with investors focused on a mix of corporate earnings and economic data.

Digital Currency

Compared to MicroStrategy, this stock has already tripled in value, driven by a strategy that combines exposure to Bitcoin’s upside with diversified income streams to weather volatility.

With crypto markets hitting new highs almost daily, this stock is positioned to ride the wave of Bitcoin’s continued momentum.

The timing couldn’t be better to explore this potential breakout opportunity.

What to Watch

Bath & Body Works (NYSE: BBWI) will report its quarterly earnings before the market opens this morning.

Agilent Technologies (NYSE: A), Zoom Video Communications (NASDAQ: ZM), Semtech (NASDAQ: SMTC), BBB Foods (NASDAQ: TBBB), and Blue Bird (NASDAQ: BLBD) will announce their results after the market closes.

Retail

Bath & Body Works Shares Surge After Q3 Earnings Beat

Pic Credit: Mike Mozart from Funny YouTube, USA, CC BY 2.0, via Wikimedia Commons

Bath & Body Works’ stock is surging 12% in premarket trading due to its better-than-expected third-quarter earnings and raised full-year guidance.

The Ohio-based company’s quarterly sales are $1.61 billion, up from $1.56 billion in the same period last year, surpassing estimates of $0.47 earnings per share and $1.58 billion in sales.

CEO Gina Boswell attributed the strong performance to effective execution, saying, "Our strong results exceeded the high end of our net sales and earnings per diluted share guidance."

The company is now forecasting its full-year sales to decline between 1.7% and 2.5%, an improvement from its prior projection of a 2% to 4% drop. Adjusted earnings per share are expected to range from $3.15 to $3.28, up from the earlier guidance of $3.06 to $3.26.

Despite the recent gains, Bath & Body Works shares are down 29% year-to-date, underperforming the S&P 500’s 25% increase. However, the raised guidance and Q3 outperformance signal renewed momentum for the retailer heading into the crucial holiday season.

Clothing

Macy’s Delays Q3 Results, Cites Accounting Issue and Sales Misses, Stock Plummets

Macy’s delayed the release of its third-quarter financial results after uncovering an accounting irregularity related to delivery expenses.

Preliminary results indicate that net sales fell 2.4% to $4.74 billion, missing Wall Street’s estimate of $4.77 billion. The decline underscores challenges in attracting cost-conscious shoppers, even with steep promotions. Macy’s stock is down 7% in premarket trade.

The issue stems from intentional errors made by a single employee overseeing small package delivery expense accounting.

According to Macy’s, the individual concealed $132 million to $154 million in cumulative delivery expenses from the fourth quarter of 2021 through the most recent quarter. An independent investigation has been launched to assess the scope of the misconduct.

Macy’s assured investors that it would publish its full third-quarter results, along with its fourth-quarter and annual guidance, by December 11. Despite the setback, the retailer emphasized its commitment to resolving the issue swiftly.

The delay highlights mounting pressure on retailers to manage operational complexities while navigating sluggish consumer spending. Macy’s performance contrasts sharply with rivals like Walmart, which recently reported robust holiday-season demand.

The company’s upcoming earnings release will be closely scrutinized as it works to restore confidence among investors and customers.

Semiconductors

BAE and Rocket Lab Receive $60M in US Semiconductor and Space Subsidies, Rocket Lab Shares Surge

Rocket Lab (RKLB) shares are surging 14% in premarket trading today following dual announcements of federal funding and a groundbreaking operational milestone.

Rocket Lab’s subsidiary, SolAero Technologies, received a $23.9 million grant from the U.S. Commerce Department to expand the production of space-grade solar cells. This grant, part of the Biden administration’s $52.7 billion “Chips and Science” program, will boost SolAero’s output by 50% over three years. These solar cells power key missions, including NASA’s Artemis lunar program and the James Webb Space Telescope.

BAE Systems will also receive $35.5 million to enhance semiconductor production in New Hampshire. The funding aims to quadruple BAE’s chip output, which is critical for F-35 fighter jets and satellites, while halving its modernization timeline. The Pentagon’s $1.7 trillion F-35 program underscores the strategic importance of these semiconductors.

Rocket Lab simultaneously achieved a record-breaking operational feat, completing two launches within 24 hours from sites in Virginia and New Zealand. The “Ice AIS Baby” mission deployed five satellites for French IoT firm Kinéis, advancing their global connectivity constellation. This marks Rocket Lab’s 14th mission in 2024 and 56th overall, with 203 satellites deployed to date.

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Billion Dollar Industry

Goldman Sachs projects the global music market will surpass $160 billion by 2030, but a deeper transformation is already underway.

The next major economic wave in music will be driven by direct-to-consumer engagement and monetization, redefining how artists connect with their fans.

Much like Amazon and Shopify revolutionized eCommerce by cutting out traditional retailers, a new platform is empowering artists to bypass middlemen like streaming services, social media platforms, and ticketing agencies.

This innovative infrastructure enables artists to fully monetize their audience, strengthen relationships with top fans, and build a loyal base of superfans—proven to spend up to 80% more than the average listener.

With 15 granted patents and cutting-edge technology, this company is poised to lead the way in powering this direct-to-fan revolution. For investors, this represents a rare opportunity to join an industry poised for massive growth and transformation.

Movers and Shakers

Nine Energy Services Inc. [NINE] - Last Close: $1.45

Nine Energy Service's stock is up 13% before today’s opening bell, likely influenced by significant insider buying activity.

Monroe William, a 10% owner of the company, acquired a total of 960,000 shares over three consecutive days—November 19, 20, and 21, 2024—amounting to approximately $1.16 million.

The weighted average purchase prices per share were $1.1901, $1.2095, and $1.2359, respectively.

Following these transactions, Monroe William's direct ownership in Nine Energy Service rose to 4,860,000 shares.

Investors may view this substantial insider purchase as a signal of confidence in the company's prospects.

My Take: The stock is down 47.65% YTD, so it may be best to tread cautiously here. Hedge your bets if you decide to invest.

Mobix Labs, Inc. [MOBX] - Last Close: $0.73

Mobix Labs is surging 21% in premarket trading on the back of its strategic acquisition of Spacecraft Components Corp., a Nevada-based leader in high-precision components for aerospace, defense, and transportation sectors.

This acquisition marks a major expansion for Mobix Labs, allowing it to diversify into mission-critical industries such as missile technology, naval systems, and urban transportation.

The deal is expected to be financially beneficial, adding Spacecraft's $18.1 million in annual revenue and positive cash flow to Mobix Labs.

It also promises operational synergies by integrating Spacecraft’s manufacturing expertise with Mobix Labs' innovative technologies.

My Take: Mobix Labs is currently facing delisting, so it might be best to keep this stock on your wait-and-watch list for now.

Quantum Computing Inc. [QUBT] - Last Close: $6.10

Quantum Computing is up 15% in premarket trade today.

Amazon Web Services (AWS) announced its Quantum Embark Program last week on Thursday, which set off a rally in quantum computing stocks.

This initiative is designed to help businesses prepare for the quantum computing era by providing advisory services to tackle computationally intensive problems and identify relevant quantum technologies.

The program has sparked significant interest in quantum computing stocks, with Quantum Computing Inc. benefiting from the heightened attention on the sector's potential to revolutionize industries by solving problems beyond the reach of traditional computing.

My Take: QUBT has doubled itself in the last 5 days, and there is potential for even more growth. It might be a good one to keep your eye on.

Crypto

Bitcoin has smashed past $80,000, and one Canadian company is quietly making its mark in the crypto world.

Unlike others, this emerging player takes a balanced approach—capitalizing on Bitcoin’s explosive growth while mitigating risk through steady income streams.

With its stock already tripling as Bitcoin continues to surge, the stage is set for even bigger moves.

Investors looking for the next major crypto breakout may want to take a closer look at this under-the-radar opportunity.

Everything Else

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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