This Tiny Stock Could Break Out

Good morning. It's November 12th, and today we’ll look at why Home Depot and running shoe brand On’s shares are rallying in premarket trade while Tencent Music Entertainment is crashing nearly 6% on a steep decline in its social entertainment segment.

Previous Close 📈

The stock market rally subsided a bit on Monday, but all three major indices ended the day in the green again.

Futures

U.S. stock futures are edging lower today as investors reassess risk in light of high valuations and inflationary potential tied to proposed policies.

Clean Energy

This Tiny Stock Could Break Out

As the demand for renewable energy soars, one material is emerging as critical: high-purity silica.

Essential for solar panels, energy storage, and advanced tech, silica is now in short supply.

A small-cap company is securing control over this vital resource and pioneering tech to produce ultra-pure 99.999% silica.

Positioned to be a key player in clean energy, they could be on the verge of rapid growth.

Learn more about this undiscovered stock here.

What to Watch

It’s going to be an action-packed morning on the earnings front as Home Depot (NYSE: HD), Shopify (NYSE: SHOP), Sea Limited (NYSE: SE), Tyson Foods (NYSE: TSN), Tencent Music Entertainment Group (NYSE: TME), and On Holding AG (NYSE: ONON) will share their quarterly earnings before the opening bell.

The NFIB Optimism Index for October was also released at 6:00 a.m. ET.

Watch out for Fed Governor Christopher Waller’s speech at 10:00 a.m. ET, followed by Richmond Fed President Tom Barkin at 10:15 a.m. ET. Philadelphia Fed President Patrick Harker will speak at 5:00 p.m. ET.

Keep an eye on Spotify Technology (NYSE: SPOT), Occidental Petroleum Corporation (NYSE: OXY), Flutter Entertainment (OTC: FLUT), and Cava Group (NYSE: CAVA), who will all announce their results after the market closes.

Home Improvement

Home Depot Lifts Revenue Outlook as Customer Spending Stabilizes

Home Depot’s third-quarter earnings are better than Wall Street expectations. A slight rebound in consumer spending has softened the impact of prolonged economic pressures.

The home improvement giant’s revenue growth touched 6.6%, reaching $40.22 billion—well above the $39.31 billion forecast by analysts. This improvement has encouraged Home Depot to raise its full-year revenue outlook to a projected 4% increase, up from the previous estimate of 2.5% to 3.5%.

Sales at stores open at least a year dipped 1.3%, marking a modest improvement from the 3.3% drop seen in the second quarter. U.S. store sales fell 1.2%, a milder decline than anticipated. Customer transactions remained nearly flat compared to last year, though the average ticket size fell slightly to $88.65.

Home Depot’s adjusted earnings per share of $3.78 also exceeded the $3.65 per share expected by analysts. The company anticipates a full-year earnings per share decline of about 2%, a more optimistic outlook than its previous guidance of a 2-4% drop.

Premarket trading is showing Home Depot’s shares rising by 2.7%, reflecting investor confidence in the company's strong quarterly performance amid a gradually stabilizing retail environment.

Music

Tencent Music Misses Revenue Estimates, Hit By Social Entertainment Slump

Tencent Music Entertainment’s quarterly revenue announced today is weaker than expected, with its social entertainment segment facing a steep decline as regulatory pressures weigh on the company.

The Chinese tech giant’s social entertainment revenue, which includes popular platforms like WeSing and Kuwo Music, is down 23.9% in the third quarter, impacted by ongoing restrictions from Beijing’s crackdown on online gambling.

In August last year, Tencent Music removed several live-streaming features to comply with anti-gambling regulations, a move that has continued to challenge its social entertainment business. U.S.-listed shares of Tencent Music fell 5.6% in premarket trading following the news.

Despite this setback, growth in Tencent Music's online music unit offset some of the losses, with a 20.4% revenue increase. The number of paying users in this segment rose by 15.5% to 119 million, driven by the popularity of its Super VIP (SVIP) memberships. The premium SVIP offering, which includes high-quality audio, karaoke, and long-form audio content, has been well-received by users.

For the third quarter, Tencent Music’s revenue has risen 6.8% year-over-year to 7.02 billion yuan ($970.23 million), narrowly missing analysts' average forecast of 7.04 billion yuan. However, shares of the firm are currently at 6.4% below their previous close during premarket trading.

Sportswear

On’s Sales Reach Record Levels, Plans Minimal Discounts for Holidays

On Holding AG has raised its annual sales forecast for 2023 following a strong third quarter, setting the Swiss sneaker brand up for further competition with global sportswear giants like Adidas and Nike.

The Zurich-based company now anticipates net sales of at least 2.29 billion Swiss francs (approximately $2.6 billion), a slight increase from its previous guidance. This upward revision is fueled by record-breaking quarterly sales, which surged by 33% at constant exchange rates and exceeded analyst predictions.

A large part of this growth came from On’s own direct-to-consumer channels, including its websites and stores, signaling robust demand for the brand’s offerings.

Established in 2010, On has seen significant expansion in both Europe and North America, where its products have gained traction at specialty running outlets and high-end retailers. The brand’s visibility has also grown in Asia, enhancing its international footprint.

The company recently broadened its portfolio, introducing a new sportswear line and signing actress and singer Zendaya as a brand ambassador. On’s co-CEO and CFO, Martin Hoffmann, shared that the company, known for its premium-priced sneakers and apparel, plans to minimize discounting during the holiday season, highlighting its strong pricing strategy.

This year, On’s shares have nearly doubled in value, contrasting sharply with a 29% drop for Nike and a 21% gain for Adidas, underlining On’s rapid rise in the competitive sportswear market.

The sneaker brand’s U.S.-listed stock is up 4% in premarket trade this morning.

Technology

AI Disruptor on the Verge of Strategic Buyouts

This fast-growing AI startup is turning heads, delivering nearly 3.5X ROI to Fortune 1000 clients and attracting support from major investors, including the Adobe Fund and leaders from Google, Amazon, Meta, and Snapchat.

In just three years, its valuation skyrocketed from $5M to $85M, backed by over $35M in funding and 7,800+ investors who see its high potential.

Shares are now available at just $0.50, with an exclusive 10% bonus for new investors until November 21st!

This AI innovator is primed for major strategic buyouts, making it a potential game-changer in the tech industry.

This is your chance to get in early and grow with a company poised for significant impact.

Find out more about this investment opportunity here.

BTC Digital Ltd. [BTCT] - Last Close: $2.52

BTC Digital Ltd. is surging 72% before today's opening bell.

The stock is the latest beneficiary of the recent rally in Bitcoin prices.

Following President-elect Donald Trump's pro-cryptocurrency stance, Bitcoin reached an all-time high of $89,550.58 on Monday.

This surge has positively impacted companies like BTCT, which are closely linked to the cryptocurrency market.

Investors are optimistic that the new administration's favorable policies toward digital currencies will benefit such firms, leading to increased stock valuations.

Bridger Aerospace Group Holdings [BAER] - Last Close: $3.50

Bridger Aerospace Group's stock is up 25% in premarket trading after announcing impressive third-quarter results yesterday.

The aerial firefighting company saw record revenue of $64.5 million, up 20% from last year, with net income rising 56% to $27.3 million.

Their specialized firefighting aircraft, like the Super Scooper fleet, contributed heavily to growth.

Bridger’s recent acquisition of FMS Aerospace added $1.6 million to revenue, and international expansion is underway, with new equipment set for Spain.

Additionally, the company cut its operating costs and improved cash reserves to $42.6 million.

Nevro Corporation [NVRO] - Last Close: $5.32

Nevro Corp. shares are up 18% in premarket trading today after the company received CE Mark Certification in Europe for its HFX iQ spinal cord stimulation (SCS) system, which integrates artificial intelligence (AI) technology.

This certification allows Nevro to market HFX iQ in European countries, expanding the reach of their innovative pain relief solution globally.

HFX iQ is unique in offering AI-driven, personalized pain management, gathering patient data through a mobile app to adjust therapy in real-time.

This regulatory approval opens doors for Nevro to reach more chronic pain patients with tailored, data-backed relief.

Solar Energy

This Tiny Stock Could Be on the Brink of a Major Breakout

As the global shift toward renewable energy accelerates, one resource is proving essential: high-purity silica. It’s a core ingredient in solar panels, energy storage, and other advanced tech—yet supply is tightening as demand surges worldwide.

A small-cap company is stepping up to meet this need, securing control over prime silica reserves and developing proprietary technology to produce 99.999% pure silica.

This level of purity is crucial for energy applications, positioning this company as a potential frontrunner in the clean energy landscape.

With a strong foothold in a rapidly expanding market, this company could see significant growth as it supplies the material at the heart of renewable energy.

For investors seeking opportunities in the clean energy sector, this stock may be one to watch closely.

Discover more about this high-potential stock here.

Everything Else

• Apple faces EU pressure to remove geo-blocking on the App Store and other services, enabling broader access.

• Visa and Affirm are collaborating to offer a new payment flexibility product in the U.S.

• Avia Solutions Group placed its first direct Boeing order for 40 fuel-efficient 737-8 aircraft.

• The Biden administration aims to boost nuclear energy as a long-term carbon-free power strategy.

• Billionaire Pham Nhat Vuong injected $2 billion into VinFast amid intense EV market competition.

• A Dutch court overturned the emissions mandate for Shell, citing an unclear impact on climate change.

• SoftBank returned to profit with Vision Fund gains driven by Coupang, Didi, and Bytedance.

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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