Tiny Semiconductor Stock Jumps 120%

Good morning. It's December 11th, and today we’ll look at why Google jumped by more than 5% yesterday, Gamestop’s positive earnings report, and a semiconductor stock that has more than doubled itself in premarket trade.

Previous Close 📈

Stocks continued their decline on Tuesday, with all three major indices closing lower. Investors remain cautious ahead of key inflation data expected later this week, which could influence the Federal Reserve's rate decision.

Futures

Stock futures are showing mixed movement early morning today as markets await the November CPI report. Dow futures are down 49 points (-0.11%), while S&P 500 futures are rising by 5.75 points (+0.10%). Nasdaq-100 futures are up by 43.50 points (+0.20%).

Technology

This $0.26 Company Could Be the Next Big Smartphone Disruptor

The $1 trillion smartphone industry is being shaken up by a fast-growing company that’s turning phones into revenue-generating devices. With 32,481% growth, this company has already ranked #1 on Deloitte’s 500 fastest-growing companies list.

More than 28,000 investors have backed this revolutionary idea, with partnerships secured with giants like Best Buy, Walmart, and Amazon. To date, users have saved and earned over $35M—proof that this disruptor is delivering real results.

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What to Watch

Kanzhun Limited (BZ), Photronics (PLAB), and REV Group (REVG) will report their quarterly earnings in the premarket session.

Keep a close eye on Adobe (ADBE) and Nordson (NDSN) who will announce their results after the market closes.

Semiconductors

Google's 'Willow' Quantum Chip Boosts Alphabet Stock by 5%

Alphabet Inc. (NASDAQ: GOOGL) shares climbed 5% on Tuesday and continue to climb in premarket trade today after Google introduced its latest quantum computing chip, "Willow," which the company has described as a significant advancement in quantum technology.

Unveiled Monday, Willow is part of Google’s long-term strategy to develop quantum computers capable of solving complex problems that traditional computers cannot handle.

The chip, equipped with about 100 qubits, significantly outperformed its predecessor from 2019 in quantum computing benchmarks. Notably, Google emphasized that Willow can reduce expected errors faster than they emerge as the system scales, addressing a key challenge in quantum computing.

Google has outlined a six-step roadmap to build quantum systems with up to 1 million qubits. The company views Willow as a crucial step toward achieving practical applications, such as drug discovery, fusion energy advancements, and battery design innovations.

The announcement has drawn praise from tech leaders like Elon Musk and OpenAI’s Sam Altman, highlighting the broader industry excitement surrounding quantum advancements. Competitors, including Microsoft, NVIDIA, and IBM, as well as startups and universities, are also pursuing quantum computing innovations.

Gaming

Shares of GameStop Rise After Third-Quarter Earnings Beat

GameStop posted a profit for its third quarter, driven by aggressive cost-cutting strategies, including store closures and an increased focus on higher-margin products. Shares of the videogame retailer are rising by over 3% in premarket trading today following the announcement.

The company reported a net income of $17.4 million, reversing a $3.1 million loss from the same period last year. CEO Ryan Cohen’s strategy to streamline operations and emphasize value-added items appears to be yielding results, even as GameStop grapples with slowing hardware and collectibles sales amid competition from giants like Amazon and eBay.

Revenue for the quarter fell by 20% to $860 million, compared to $1.08 billion in the previous year, highlighting challenges in navigating a weaker gaming market and reduced consumer spending due to inflation.

Cash reserves improved slightly, with GameStop ending the quarter with $4.58 billion in cash and equivalents, up from $4.19 billion in the prior quarter.

The stock has surged over 50% in 2024, driven partly by renewed interest from meme-stock enthusiasts. GameStop’s strategic pivot to cost-saving measures signals an effort to remain competitive in an evolving retail and gaming landscape.

Steel

Biden Expected to Block US Steel Sale to Nippon Steel on Security Grounds

President Joe Biden is poised to block Nippon Steel's $14.1 billion acquisition of U.S. Steel Corp., citing national security concerns, according to reports. The decision is expected later this month after the Committee on Foreign Investment in the United States (CFIUS) refers the case to Biden, potentially by December 22 or 23.

The move has reignited political and economic debates surrounding the deal, which U.S. Steel views as a critical lifeline. The Pittsburgh-based company has warned of potential closures and a headquarters relocation if the merger is derailed.

Biden, born in Pennsylvania, has consistently advocated for U.S. Steel to remain domestically owned, while President-elect Donald Trump has promised to block the sale outright.

CFIUS has been reviewing the deal for most of the year. A referral to Biden typically signals a panel member perceives the transaction as a risk. U.S. Steel and Nippon Steel may pursue legal action if the deal is vetoed.

Shares of U.S. Steel plunged 9.7% to close at $35.26 on Tuesday, while Nippon Steel’s stock traded flat in Tokyo. The Japanese firm criticized the political interference, emphasizing the strength of the U.S.-Japan alliance and expressing confidence in the American legal system.

The deal has faced opposition from the United Steelworkers union and Democratic leaders, including Vice President Kamala Harris. Republican lawmakers have accused the administration of subordinating the CFIUS process to political interests, further intensifying scrutiny over the decision.

Billion Dollar Industry

This Company Could Transform the $4.2 Billion Music Industry

Goldman Sachs predicts a $4.2 billion opportunity as the music industry shifts toward direct-to-fan engagement and superfans drive new revenue streams.

At the forefront of this evolution is a company with proprietary technology—protected by 15 patents—empowering artists to deliver personalized fan experiences on an unprecedented scale.

Already collaborating with top-tier artists and major record labels, this company is positioned to claim up to 60% of this market by 2027.

This is more than a business opportunity—it’s a chance to invest in a company that’s reshaping how music is monetized and shared.

Click here to learn more about this innovative company and its growth potential.

SEALSQ Corp [LAES] - Last Close: $0.57

SEALSQ stock continues to surge by more than 120% in premarket trading today after rising nearly 46% yesterday.

This boost comes after the announcement of the firm’s strategic partnership with IC’ALPS to accelerate the development of post-quantum Application-Specific Integrated Circuits (ASICs).

This collaboration positions SEALSQ as a leader in creating highly secure, quantum-resistant microcontrollers and chips for industries like automotive, telecommunications, and healthcare.

Investors are optimistic about the company's innovative approach to meeting this demand, fueling the stock's premarket rally.

Frequency Electronics, Inc. [FEIM] - Last Close: $12.79

Frequency Electronics’ stock is climbing by 25% in premarket trading due to its strong fiscal second-quarter results, showcasing significant growth in both profit and revenue.

The company reported a net profit of $2.7 million (28 cents per share), a substantial jump from $797,000 (8 cents per share) in the same quarter last year. Revenue also rose by 17% to $15.8 million.

This growth reflects the company's successful operational improvements and the solid performance of its core businesses, which include frequency control, precision timing, and synchronization products.

Stitch Fix, Inc. [SFIX] - Last Close: $4.60

Stitch Fix stock is surging in premarket trading, up 25%, due to its improved financial outlook and better-than-expected quarterly performance.

The company raised its fiscal 2025 revenue forecast to $1.14 billion to $1.18 billion, surpassing its earlier estimate. For the first quarter, Stitch Fix’s sales of $318.8 million are more than analysts' expectations of $306.9 million, driven by higher revenue per active client.

Additionally, the company's adjusted loss of $0.05 per share is significantly smaller than the anticipated $0.14-per-share loss, indicating strong cost management.

Analysts attribute part of the success to Stitch Fix's "Retail Therapy" marketing campaign, which has resonated with customers and driven engagement.

Trading Hacks

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Everything Else

• German authorities raided Adidas headquarters amid a customs and tax regulation inquiry.

• Co-CEO Ted Sarandos reaffirmed Netflix’s strategy of avoiding mergers and acquisitions next year.

• Tesla’s Model Y dominates in China as December sales hit record highs.

• The Yuan drops and the dollar gains amid speculation of China abandoning its stable-currency policy.

• Acadia and Microsoft lead a $9-billion renewable energy push with community benefits.

• Infowars’ sale to The Onion was halted as a judge ordered a new auction process to resolve disputes and debts.

• TeamViewer shares fall after announcing a $720-million deal to buy 1E from Carlyle Group.

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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