This Med Tech Stock Could Take Off

Good morning. It's September 18th, and in today’s edition, we’ll take a look at General Mills’ better-than-expected earnings, Google’s victory against the European Commission in its antitrust case, and a med tech stock that is poised to take off.

Previous Close 📈

Stocks had a mixed session on Tuesday, with the S&P 500 edging up 0.03%. The Dow Jones Industrial Average slipped nearly 16 points, while the Nasdaq Composite added 0.2%.

Futures

U.S. stock futures are slightly higher today as Wall Street anticipates a potential Fed rate cut. Dow futures are up 0.2%, S&P 500 futures have gained 0.1%, and Nasdaq-100 futures are 0.2% higher. Traders are divided between a 25- and 50-basis-point cut. A larger cut could benefit earnings growth and support the market.

Biotech

This Med Tech Stock Could Take Off

A rapidly growing med tech company just released its second-quarter earnings, surpassing all expectations!

Revenue growth has exploded, with a nearly 74-fold increase compared to the same period last year.

The company has maintained an impressive 95% profit margin, demonstrating strong operational efficiency.

Industry experts have raised their price targets once again, signaling an opportunity to get in before a potential major move.

With innovative products and increasing adoption in the medical community, this company is one to watch!

Click here to learn more and discover why this stock could be a great addition to your portfolio!

What to Watch

The much-anticipated FOMC interest rate decision will be announced at 2:00 p.m. Eastern, followed by a press conference from Fed Chair Jerome Powell at 2:30 p.m. Eastern, providing insights into the future direction of monetary policy.

Apart from this, key housing data, including Housing Starts and Building Permits for August, will be released at 8:30 a.m. Eastern.

General Mills (NYSE: GIS) will report its quarterly earnings before the market opens, while Steelcase (NYSE: SCS) will release its earnings after the market closes.

Packaged Foods

General Mills’ Higher Snack Prices Help Offset Consumer Weakness in Latest Quarter

General Mills reported a smaller-than-anticipated drop in quarterly sales, buoyed by price hikes on key products like snacks, which helped mitigate softer consumer demand.

The Cheerios maker’s sales fell by 1% to $4.85 billion, slightly better than analysts' projections of a 2.11% decline.

Despite the sales performance, General Mills is seeing gross margins slip to 34.8%, impacted by rising input costs and an unfavorable inventory mix.

The company reaffirmed its fiscal year 2025 forecast but warned of an uncertain economic environment in its primary markets.

General Mills expects gradual improvement in volume trends throughout fiscal 2025, though overall growth is forecasted to fall below long-term targets.

Shares of the company are down by about 1.3% in premarket trading.

Technology

Tech Giants Microsoft and BlackRock Launch $100 Billion AI Infrastructure Investment Group

Microsoft and BlackRock are collaborating to raise up to $100 billion to invest in AI data centers and the power infrastructure needed to support them.

The initiative, called the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), was announced on Tuesday. Other participants include Global Infrastructure Partners (GIP) and MGX, a tech investor from the UAE.

The group plans to initially raise $30 billion, with a future target of $100 billion, which will include debt financing. This comes as tech companies rush to build data centers with NVIDIA GPUs, which are essential for running advanced AI models like OpenAI’s ChatGPT. The GPUs require significant power, creating a demand for robust energy infrastructure.

Microsoft’s involvement in the initiative adds to its existing capital investments in expanding its Azure cloud infrastructure. Meanwhile, BlackRock's acquisition of GIP is set to close on October 1, further boosting its role in this massive AI and power infrastructure project.

Technology

EU Court Annuls $1.7 Billion Fine Against Google in Ad Product Case

A 1.5-billion-euro ($1.7 billion) antitrust fine imposed by the European Commission on Google has been annulled, as ruled by the EU’s General Court today.

The fine, originally issued in 2019, stemmed from allegations that Google abused its market dominance through restrictive clauses in contracts for its AdSense for Search product, which prevented rivals from placing ads on third-party websites.

Google’s stock is up by around 1% in premarket trading.

While the court upheld most of the European Commission’s findings, it canceled the fine, stating that regulators failed to fully assess the duration of the contract clauses deemed abusive. Google had previously removed the contested provisions from its contracts in 2016, prior to the Commission’s ruling.

The European Commission acknowledged the ruling and is considering potential next steps, including a possible appeal to the European Court of Justice.

This decision follows a series of recent rulings involving major tech companies, including a $2.65-billion fine against Google and a 13-billion-euro tax ruling against Apple.

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Intuitive Machines, Inc. [LUNR] - Last Close: $5.40

Intuitive Machines stock is up 53% in premarket trading.

The company announced yesterday it was awarded a NASA contract for communication and navigation services in near space, with a potential value of up to $4.82 billion.

The contract, which supports NASA's Artemis mission to the Moon, has a five-year base period, with an option to extend for another five years.

Intuitive Machines will deploy lunar relay satellites and offer data transmission services, helping to establish a long-term lunar presence.

This major contract positions the company as a key player in space exploration, driving investor optimism and the stock's significant rise.

Odyssey Marine Exploration, Inc. [OMEX] - Last Close: $0.50

Odyssey Marine Exploration is surging 84% before the opening bell today.

The company won a NAFTA arbitration case against the Mexican government, which was announced yesterday.

The International Centre for Settlement of Investment Disputes (ICSID) awarded Odyssey $37.1 million, plus interest, after Mexico's environmental agency wrongfully denied the company’s environmental permit.

The ruling supports Odyssey’s claim that the denial was arbitrary and politically motivated.

This significant financial victory validates Odyssey's environmental strategy and positions the company to continue advancing its global projects in underwater mineral exploration.

VivoPower International PLC [VVPR] - Last Close: $1.25

VivoPower International shares are up 20% so far in premarket trade after announcing a strategic merger agreement with Future Automotive Solutions and Technologies Inc. (FAST).

The proposed all-stock merger values VivoPower at $556 million and FAST at $578 million.

The merger will see VivoPower issuing 5.72 million restricted shares at $101 per share to FAST shareholders, with VivoPower shareholders expected to own 49% of the combined entity.

FAST specializes in hydrogen technology, including converting internal combustion engine vehicles to hydrogen power.

This partnership is anticipated to significantly strengthen VivoPower's position in the sustainable energy and hydrogen technology sectors, driving investor enthusiasm.

Vivos Therapeutics, Inc. [VVOS] - Last Close: $2.80

Vivos Therapeutics stock is rallying by 23% in premarket trading.

The company received FDA 510(k) clearance for its DNA appliance, a non-invasive oral medical device designed to treat moderate to severe pediatric obstructive sleep apnea (OSA) and snoring in children aged 6 to 17.

This is the first FDA approval for an oral device targeting moderate to severe OSA in children, offering a new alternative to current treatments like surgery.

With over 10 million U.S. children estimated to suffer from pediatric OSA, this clearance opens up a significant market opportunity for Vivos, boosting investor confidence and driving the stock higher.

Health

Explosive Growth in the Med Tech Sector!

An innovative med tech company just reported its second-quarter earnings, showing a staggering 74-fold revenue increase compared to the same period last year.

Profit margins remained at an impressive 95%, reflecting strong operational efficiency.

Analysts have raised their price targets again, signaling this could be a great opportunity for investors.

The company’s cutting-edge products are gaining recognition in the medical field, especially for their effectiveness in treating a challenging health condition.

With groundbreaking advancements and growing recognition, the future looks promising for this firm.

Click here to find out why this stock might be your next big winner!

Everything Else

• Progress in homegrown chipmaking tech is boosting Chinese semiconductor stocks.

• An AI safety gathering is planned for a post-election San Francisco summit.

• Investors await new leadership as Campari shares slide post-CEO exit.

• China escalated tensions with sanctions on U.S. defense companies.

• Hezbollah pagers that exploded in Lebanon and Syria were traced back to a Hungarian company.

• The anticipation of Fed rate cuts has driven 30-year mortgage rates to their lowest in two years.

• Meta has partnered with BTG Pactual for a major Carbon Offset purchase in Latin America.

• Tupperware is seeking bankruptcy amid financial struggles and planning for a sale.

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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