Eksentricity

Tech

AI Advancements

• AI Investment Surge: The AI sector continues to attract significant investment, with Goldman Sachs dismissing concerns of a speculative bubble. Nvidia aims to become a one-stop shop for data center customers by offering full-stack AI solutions. Safe Superintelligence, a startup co-founded by OpenAI’s Ilya Sutskever, has raised $1 billion in funding.
• Increased AI Infrastructure Spending: Companies like Alphabet, Microsoft, and Amazon are significantly increasing their AI infrastructure spending. This has driven up demand for AI chips from Nvidia, which remains a solid buy for investors willing to take on risk, despite recent volatility. Nvidia’s revenue is expected to double in the next several years.
• AI in Cybersecurity: CrowdStrike’s AI-powered security platform, Falcon, has been instrumental in the company’s success. Falcon enables CrowdStrike to deliver comprehensive security solutions and maintain its leading position in the cybersecurity market.

Cloud Computing Growth

• Oracle’s Cloud Expansion: Oracle is well-positioned to benefit from the growing demand for generative AI. Its trusted cloud and enterprise software solutions are used by 98% of Fortune 500 companies, positioning it for strong growth in the coming years.
• AWS Market Dominance: AWS remains a key driver of Amazon’s profitability. Its revenue rose nearly 19% year over year in the second quarter, while its operating margin is over 35%. AWS commands nearly a third of the worldwide cloud infrastructure market share, showcasing its dominance and potential for continued growth.

Semiconductor Industry

• TSMC’s Leadership: TSMC remains the world’s leading semiconductor fabrication contractor. The company is leading the way in technological innovations and increasing its production capacity to meet the growing demand for AI chips.
• ASML’s High-NA EUV Technology: ASML, a leading supplier of chip manufacturing equipment, is experiencing a transitional year with the introduction of its newest technology: high NA EUV. The high demand for ASML’s products and the increasing number of new fabs expected to come online bode well for its future growth prospects.
• Arm Holdings’ Expansion: Arm Holdings, a leading semiconductor company for CPUs, has a dominant position in the smartphone market. The company is expanding its reach to the PC and automotive markets. Arm has a high-margin, largely recurring revenue stream through licensing and subscriptions.

Cryptocurrency Trends

• Bitcoin Halvings Impact: Bitcoin’s (BTC) halvings occur every four years, reducing the rate at which new Bitcoin is created. This deflationary mechanism has historically been a key driver of Bitcoin’s price appreciation. The next halving is predicted for 2028.
• Cathie Wood’s Bullish Outlook: Cathie Wood, the head of Ark Invest, has set a $1.5 million price target for Bitcoin by 2030. This reflects her continued bullish outlook on the cryptocurrency.
• Polymarket Token Speculation: Polymarket, a crypto prediction market, is experiencing a surge in trading volume and user activity. Rumors of a potential token launch and airdrop have led some traders to artificially inflate their trading volume to increase their chances of receiving a larger airdrop reward.

Finance

US Market Valuation Trends

• Top 10 Market Cap Changes: The combined market capitalization of eight of the top-10 most valued firms in India decreased by Rs 2,01,699.77 crore last week. Reliance Industries and Tata Consultancy Services experienced the most significant declines. The BSE benchmark dropped by 1.43% during the week.
• Top Performers: Hindustan Unilever’s market cap increased by Rs 14,179.78 crore, reaching Rs 6,66,919.73 crore, while HDFC Bank’s market cap rose by Rs 3,735.35 crore to Rs 12,47,941.78 crore.
• Reliance Remains Top: Reliance Industries remained the most valuable domestic firm, followed by TCS, HDFC Bank, Airtel, ICICI Bank, Infosys, State Bank of India, Hindustan Unilever, LIC, and ITC.

Indian GST Council Deliberations

• Insurance Premium Taxation: The GST Council is expected to deliberate on the taxation of insurance premiums. Potential reductions in the tax burden on health insurance or exemptions for specific categories of individuals, such as senior citizens, will be discussed.
• Rate Rationalization: The GoM’s suggestions on rate rationalization will also be discussed. The GoM previously advised against any immediate changes to the four-tier GST slab. However, the fitment committee was asked to explore potential rate rationalization for goods and services.
• Online Gaming Status Report: The GST Council will receive a status report on online gaming, including GST revenue collection from the sector before and after October 1, 2023.

IPO Market Activity

• Bajaj Housing Finance Leads IPOs: The IPO market is set to see significant activity next week with four companies, including Bajaj Housing Finance, planning to launch their initial public offerings. These IPOs are aiming to raise a total of Rs 8,390 crore.
• SME IPOs: Nine SMEs are preparing to debut with their maiden public issues, targeting to raise Rs 254 crore.
• Positive Market Sentiment: Recent IPOs have seen substantial subscription levels, indicating positive market sentiment. The average subscription level for main-board IPOs in August was over 75 times, while the year-to-date average for 2024 is 66 times.
• Concerns Over SME IPOs: Experts have expressed concerns about activity in the SME IPO market. Some suggest a potential slowdown due to regulatory interventions.

Warren Buffett’s Investment Strategies

• Berkshire Hathaway Stock Repurchases: Warren Buffett has consistently repurchased Berkshire Hathaway stock every quarter for six consecutive years. He has spent a cumulative total of $78 billion on buybacks during that period.
• Apple Sale: Buffett sold 505 million shares of Apple in the first half of 2024. This reduced Berkshire’s stake by more than 50%.
• Investment in Occidental Petroleum: Berkshire increased its position in Occidental Petroleum by buying over 7 million additional shares in the second quarter. This brought its total ownership of the company up to 27.3%.
• Sirius XM Acquisition: Berkshire acquired a new position in Sirius XM, increasing its position by 262% during the quarter.

Social Security COLA

• Expected Announcement: The Social Security Administration (SSA) is expected to announce the 2025 cost-of-living adjustment (COLA) on October 10.
• Lower Projection: The Senior Citizens League projects a 2025 COLA of 2.57%, significantly lower than the 3.2% raise seniors on Social Security received this year.
• Planning for Lower COLA: Seniors may need to assess their spending and consider adjustments to their lifestyles or spending habits to accommodate a potentially lower COLA.

Healthcare

Drug Development & Approvals

• Lilly’s Blockbuster Pipeline: Eli Lilly continues to dominate the biopharmaceutical sector with new drug approvals and a robust pipeline. In 2023, the FDA approved Omvoh (mirikizumab) for ulcerative colitis, Jaypirca (pirtobrutinib) for mantle cell lymphoma and chronic lymphocytic leukemia, and Kisunla (donanemab) for Alzheimer’s disease. Analysts predict peak annual sales for these drugs ranging from $2 billion for Omvoh to $8 billion for Kisunla.
• Promising Diabetes and Obesity Treatments: Lilly is evaluating orforglipron and retatrutide in phase 3 clinical trials for type 2 diabetes and obesity. Orforglipron is predicted to generate nearly $10 billion in peak annual sales. Retatrutide could become a major commercial success.
• Remternetug for Alzheimer’s: Lilly is also testing remternetug in phase 3 trials for Alzheimer’s disease. Early data suggests it may be more effective than Kisunla at removing amyloid plaque.
• New Drug Approvals for Orphan Diseases: Lilly also secured FDA approval for several treatments for rare diseases, including a drug for rare genetic disorders and another for a rare form of muscular dystrophy. These approvals showcase Lilly’s commitment to developing therapies for underserved patient populations.

Alzheimer’s Treatment Advancements

• Leqembi’s Gradual Rollout: Biogen and Eisai’s Alzheimer’s drug Leqembi, while promising to slow cognitive decline, faces challenges in its rollout due to a complex process. The drug requires diagnostic tests, including PET scans and MRIs, and a panel review for eligibility.
• Reimbursement and Access Hurdles: Reimbursement uncertainties, diagnostic test requirements, and the need for regular brain scans create bottlenecks in Leqembi’s availability. The need for specialist care and limited access to neurologists, coupled with insurance coverage issues, further complicate matters.
• Increasing Leqembi Uptake: Despite challenges, Leqembi’s sales have increased from $10 million in its first year to nearly $60 million in the first half of 2024. Biogen estimates that roughly 5,000 patients are currently taking the drug.
• Potential for More Convenient Options: Biogen and Eisai are exploring a monthly maintenance dose and a subcutaneous version of Leqembi, which would increase patient access and ease of administration.

Pulmonary Hypertension Drug Approvals

• Liquidia’s Tentative Approval: Liquidia Technologies, Inc. received tentative approval from the FDA for YUTREPIA™, an inhalation powder for treating pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. However, final approval is contingent on the expiration of a competing product’s regulatory exclusivity.
• United Therapeutics’ Competition: United Therapeutics is a key competitor in the pulmonary hypertension market with its existing drug, Adcirca. The tentative approval of YUTREPIA™ has raised concerns about potential market share losses for United Therapeutics, leading to increased competition in the pulmonary hypertension treatment space.
• Potential for New Treatment Options: The approval of YUTREPIA™ offers hope for patients with pulmonary hypertension who may not respond well to existing treatments. The inhalation powder format could also provide a more convenient administration route for some patients.

Global Healthcare Trends

• Growing Demand for Telehealth: The global telehealth market is expected to reach $454.6 billion by 2028, driven by increased patient demand for convenient and accessible healthcare services. The COVID-19 pandemic significantly accelerated the adoption of telehealth, prompting healthcare providers to adapt their delivery models to accommodate virtual consultations and remote monitoring.
• Rise of Digital Health Solutions: Digital health solutions are transforming healthcare delivery, with advancements in artificial intelligence (AI), wearable technology, and remote patient monitoring. The global digital health market is projected to reach $748.9 billion by 2027, indicating a substantial growth trajectory for innovative technologies in the healthcare sector.
• Increased Focus on Personalized Medicine: Personalized medicine is gaining momentum as advancements in genomics and data analytics enable tailored treatments based on individual genetic profiles. This approach promises more effective therapies and personalized healthcare experiences for patients.

Economy & Real estate

Real Estate Investments

• Student Accommodation Boom in Hong Kong: Investors are purchasing properties at a discount and converting them into student accommodation, driven by rising demand from mainland Chinese students. Crystal Investment, the largest student accommodation provider in Hong Kong, acquired two properties for HK$343 million (US$44 million) in the last four months.
• Nina Hospitality Expansion: Nina Hospitality, a subsidiary of Chinachem Group, is expanding into mainland China and overseas markets such as the UK, Australia and Singapore within two years. The company will spend at least HK$240 million (US$31 million) to launch new facilities and refurbish existing ones in Hong Kong.
• Realty Income’s Tenant Challenges: Realty Income, the largest net lease REIT, owns over 15,400 properties and serves over 1,500 tenants. The company expects a $0.02 per share FFO headwind from troubled tenants like Rite Aid, Red Lobster, Walgreens, Dollar Tree, At Home, and Big Lots. Despite this, Realty Income’s large portfolio and focus on high-quality locations should mitigate the impact.
• Arkade Developers IPO in India: Arkade Developers Ltd, a real estate developer with a significant presence in Mumbai, will float its Rs 410 crore (US$50 million) IPO on September 16. The company plans to use the proceeds for developing ongoing projects, acquiring future real estate projects, and general corporate purposes.

Global Economic Outlook

• FPI Inflows in India: Foreign Portfolio Investors (FPIs) infused nearly Rs 11,000 crore (US$1.3 billion) in domestic Indian equities during the first week of September, driven by the resilience of the Indian market and expectations of a US interest rate cut.
• US Recession Fears: Wall Street traders are increasingly concerned about a potential recession, fueled by weak labor market data and the Fed’s hawkish policies. The S&P 500 fell for four straight days, credit spreads widened, and an index of computer chip makers plunged 12%, reflecting a shift in investor sentiment.
• Pensioner Support in India: The number of pensioners receiving government support to avail the minimum monthly pension of Rs 1,000 (US$12) under the Employee Pension Scheme (EPS) is projected to increase by nearly 4% to 2.13 million in FY24.
• US Steel Takeover Debate: The proposed takeover of US Steel by Nippon Steel has sparked a political debate, with President Biden expected to block the deal, potentially impacting the steelmaker’s share price and operations.

Retail

Indian Auto Industry Inventory Pile-up

• Dealership Funding Concerns: The Federation of Automobile Dealers Associations (Fada) is urging banks and non-banking financial companies (NBFCs) to exercise caution in funding dealerships due to a growing pileup of unsold passenger vehicles (PVs). In August, unsold inventory reached 70-75 days worth of sales, valued at Rs 77,800 crore.
• Impact on Dealership Profitability: Fada highlights that extended inventory levels are eroding dealership profitability, with margins averaging between 3 per cent and 4 per cent. Every 10-day increase in inventory translates to higher interest costs, eroding margins by almost 2 per cent.
• Liquidity Crunch Fears: Fada fears that if stock levels don’t correct after the festival season, dealerships could face a severe liquidity crunch and be forced to liquidate. This concern arises from the decline in retail sales of PVs in August, which fell by 4.53 per cent year-on-year.
• Addressing the Issue: Fada’s outreach to banks and NBFCs aims to prevent overfunding, stabilize stock levels, and safeguard dealers’ financial health ahead of an uncertain market period.

Starbucks’ CEO Transition and Turnaround Efforts

• New Leadership: Starbucks appointed Brian Niccol, former CEO of Chipotle Mexican Grill, as its new CEO, aiming for a turnaround after facing slowing growth and declining comparable sales.
• Niccol’s Track Record: Niccol has a strong reputation for turning around struggling companies, having successfully transformed Chipotle and Taco Bell. He brings expertise in digital technologies, restaurant operations, and branding.
• Focus Areas: Niccol plans to focus on operational excellence, digital development, product innovation, expanding brand awareness, and a strong work culture, similar to his approach at Chipotle.
• Initial Steps and Future Outlook: Niccol will need to define Starbucks’ brand, streamline operations, and address employee concerns. Investors will get an update on his plans in the 2024 fiscal fourth-quarter report.

Cinepolis’ India Expansion Challenges

• Limited Mall Availability: The limited availability of malls in India is hindering the expansion plans of Cinepolis, the Mexico-based international movie theatre chain. The company initially aimed to open 1,000 screens in 10 years but has revised its target.
• Focus on Existing Screens: Cinepolis plans to focus on opening 80 new screens in 2023, with 50 screens already in the fit-out stage. The company acknowledges that mall owners and licensing authorities need to adhere to timelines for expansion.
• Growth in Footfall: Despite challenges, Cinepolis India is seeing growth, with overall footfall expected to rise by 15 per cent compared to pre-pandemic levels. However, this growth is uneven.
• Focus on F&B: Cinepolis India sees huge potential in the F&B segment, with customers increasingly planning their meals around their cinema visits. The company aims to increase customer frequency and revenue from this segment.

Starbucks’ New CEO Challenges

• Menu Complexity and Cost Pressures: Starbucks faces challenges including the rising cost of its products, the increasing popularity of cheaper alternatives, and the complexity of its menu.
• Digital Ordering and Unionization: The company’s reliance on mobile ordering and drive-through service has led to a decline in store customers. Additionally, unionization efforts have added to its challenges.
• Global Challenges: Niccol will need to navigate a complex global landscape, including low-cost competitors in China and ongoing boycotts in the Middle East.
• Board’s Expectations: Despite some skepticism, Starbucks’ board is confident in Niccol’s ability to lead the company in a new direction. His generous contract reflects the high expectations the company has for him.

Infrastructure

South Africa’s Energy Transition

• Eskom’s Renewable Energy Shift: Eskom, South Africa’s state-owned utility, is navigating a complex energy transition. It faces pressure to balance energy security with the need to reduce emissions and adhere to “just energy transition” commitments.
• International Funding for South Africa’s Transition: The US, EU, UK, France, and Germany have pledged $8.5 billion to aid South Africa in phasing out coal-fired power stations.
• Eskom’s Fossil Fuel Dependence: Eskom generates over 90% of South Africa’s electricity, with 85% coming from fossil fuels. This has led to 41% of the country’s CO₂ emissions, earning Eskom the title of “the world’s worst polluting power company” by some environmental groups.
• Komati Power Station Closure: The decommissioning of Eskom’s 1,000MW Komati power station, despite partnerships with the South African Renewable Energy Technology Centre and the Global Energy Alliance for People and Planet to redeploy workers, highlighted the social challenges of the energy transition.

Adani Group’s Infrastructure Expansion

• Global Expansion of Adani Group: The Adani Group, a major Indian conglomerate, is expanding its infrastructure operations globally. The company has formed a subsidiary, Adani Energy Resources (Shanghai) Co., in China, to provide supply chain solutions and project management services.
• Adani’s Airport Investments in Kenya: Adani has established Airports Infrastructure PLC (AIP) in Kenya, entering the African market. The group plans to invest $750 million for a new terminal and taxiway system at Jomo Kenyatta International Airport (JKIA) by 2029 and $92 million for improvements by 2035.
• Previous Airport Investments by Adani: The Adani Group has previously invested in airports outside India through its subsidiary, Global Airports Operator L.L.C., in Abu Dhabi.

Restructuring & Unbundling of Eskom

• Eskom’s Unbundling Process: In 2019, the South African government initiated a process to unbundle Eskom into separate subsidiaries for generation, transmission, and distribution to improve efficiency and transparency.
• Creation of NTCSA: The transmission division was spun off in July 2024, creating National Transmission Company South Africa (NTCSA), a subsidiary with a separate board and management team.
• Potential Benefits of Unbundling: NTCSA, potentially the most profitable subsidiary, will operate the transmission system and purchase electricity from multiple generators. This could lead to increased efficiency and create a platform for electricity trading between generators, consumers, retailers, and traders.

Eskom’s Financial & Operational Challenges

• Load Shedding Impact: Eskom has faced debilitating power outages known as “load shedding” since 2008 due to insufficient generation, poor management, corruption, and political decisions.
• Economic Impact of Load Shedding: Load shedding has led to electricity price spikes and weakened the South African economy, costing up to £40 million per day.
• Eskom’s Leadership: Dan Marokane, Eskom’s 12th chief executive in a decade, has returned to address the challenges of balancing energy security and a just energy transition.
• Eskom’s Financial Concerns: The company is facing financial pressures and has expressed concerns about the impact of allowing private generators to sell directly to customers, potentially undermining its existing cross-subsidy model.

Commodities

Vedanta Ltd Demerger

• Demerger Scheme Approval: Vedanta Ltd, a global natural resources company, has received approval from lenders for its demerger scheme and has filed it with the National Company Law Tribunal (NCLT). The company aims to complete the process by the end of the fiscal year.
• Independent Businesses Creation: This demerger will create independent companies focusing on aluminium, oil and gas, power, steel, ferrous materials, and base metals. Vedanta Ltd will retain its zinc business and new ventures.
• Simplified Corporate Structure: The demerger will simplify Vedanta’s corporate structure, leading to greater transparency and accountability for each business.
• Direct Investment Opportunities: The demerger will give global investors direct investment opportunities in these independent companies, enabling them to benefit from India’s robust economic growth.

Steel Stock Profitability

• Strong Steel Demand Outlook: Steel demand is projected to remain strong, driven by a boom in mega projects, each valued at over $1 billion. Since 2021, $1.4 trillion worth of mega projects have been announced, which will heavily utilize steel.
• Steel Production Method Impact: The primary steel production methods are blast furnaces and electric arc mini-mills. While blast furnaces are vital, they are expensive to operate and susceptible to losses during downturns. Electric arc mini-mills, using scrap metal and electricity, are more efficient and profitable even during market downturns.
• Steel Stocks to Avoid: Companies heavily reliant on blast furnaces, such as Cleveland-Cliffs and U.S. Steel, are likely to experience earnings fluctuations, with significant losses during downturns. U.S. Steel is also facing a complex cross-border acquisition scenario.
• Steel Stocks to Buy: Nucor and Steel Dynamics, both utilizing electric arc mini-mills, offer greater consistency throughout the steel industry’s cyclical ups and downs. They have a strong track record of profitability throughout the cycle, with Nucor being a Dividend King and Steel Dynamics exhibiting consistent dividend growth.

High-Yield Oil and Gas Dividend Stocks

• Chevron’s Stock Performance: Chevron’s stock price has remained relatively stable in 2024, but it is currently trading near its 52-week low despite its solid financial position and commitment to low-carbon initiatives.
• Chord Energy’s Bakken Focus: Chord Energy, focused on the Bakken oil field, has underperformed due to market sentiment surrounding the region’s production challenges. However, Chord’s strong adjusted free cash flow and long-term development plans make it a potentially undervalued investment.
• APA Corp.’s Permian Expansion: APA Corp., despite missing earnings expectations in the first and second quarters of 2024, has expanded its portfolio by acquiring Callon Petroleum, increasing its presence in the Permian Basin. APA’s strong free cash flow and commitment to shareholder returns, combined with its current discount valuation, make it an attractive investment opportunity.

Politics & Legal

US Presidential Election

• Harris vs. Trump Debate: The upcoming debate between Vice President Kamala Harris and former President Donald Trump is crucial for both candidates as they vie for undecided voters. Recent polls indicate a close race, with Harris holding a slight national lead. However, the contest remains tight in key swing states such as Georgia and Arizona.
• Trump’s “No Artificial Lifts” Rule: Former President Donald Trump has voiced his opinion against allowing Vice President Harris to use “artificial lifts” during the debate, claiming it would constitute cheating. While it’s unclear if this is an official rule or simply his speculation, height has been a topic of contention in past debates.
• Social Security Benefit Cuts: The latest Social Security Trustees Report projects a $23.2 trillion funding shortfall by 2098, potentially leading to benefit cuts of up to 21% by 2033. The report attributes this to demographic shifts, including the retirement of baby boomers, increased longevity, and a decline in legal migration.

International Relations

• India-GCC Foreign Ministers’ Meeting: The first India-Gulf Cooperation Council (GCC) Foreign Ministers’ Meeting took place in Riyadh, with Indian External Affairs Minister S Jaishankar in attendance. The meeting aimed to review and enhance cooperation between India and the GCC in areas such as political affairs, trade, investment, energy, and cultural exchanges.

Legal & Regulatory Issues

• SEBI Investigation into Adani Group: The Congress party has criticized the Securities and Exchange Board of India (SEBI) for its perceived slow pace in investigating the Adani Group. The investigation, now pending for 18 months, has drawn criticism from the Congress party, who allege SEBI has a lot to explain regarding its handling of the case and potential conflicts of interest.
• Class Action Lawsuits
  • Late Stage Asset Management: The Rosen Law Firm is encouraging investors who purchased Pre-IPO shares through funds issued by Late Stage Asset Management between March 2019 and March 2023 to seek legal counsel before the September 30, 2024, lead plaintiff deadline. The lawsuit alleges fraudulent sales and misleading statements regarding unregistered securities.
  • WEBTOON Entertainment: Bronstein, Gewirtz & Grossman, LLC is representing investors who purchased Webtoon Entertainment securities in the company’s June 2024 IPO. The lawsuit alleges that the registration statement contained false and misleading statements about the company’s financial performance.
  • Lululemon: The Rosen Law Firm is representing investors who purchased Lululemon securities between December 2023 and July 2024. The lawsuit alleges that the company made misleading statements about its inventory allocation issues and the performance of its Breezethrough product launch.
  • American Airlines: The Rosen Law Firm is representing investors who purchased American Airlines securities between January 2024 and May 2024. The lawsuit alleges that the company made misleading statements about its sales and distribution strategy.
  • Endava: Bronstein, Gewirtz & Grossman, LLC is representing investors who purchased Endava plc securities between May 2023 and February 2024. The lawsuit alleges that the company made misleading statements about demand for its services and the potential impact on revenue.
  • Symbotic: Bronstein, Gewirtz & Grossman, LLC is representing investors who purchased Symbotic, Inc. securities between May 2024 and July 2024. The lawsuit alleges that the company made misleading statements about its financial performance and the reasons behind its lowered revenue guidance.

Constitutional Amendments

• Trump’s 25th Amendment Revision: Former President Donald Trump has proposed a revision to the 25th Amendment that would allow for the impeachment of a vice president who allegedly covers up a president’s incapacity. This proposal has received mixed reactions, with some arguing it could introduce complexity and instability to the U.S. presidency.

Stock Picks

Nasdaq Stocks With Upside

• Sirius XM Upside: Sirius XM Holdings, with a near monopoly in North American satellite radio, boasts 34 million paying subscribers and an audience of 150 million when including Pandora. Despite recent economic headwinds, some analysts see a 121% upside potential, citing a disconnect in investor understanding of the company’s merger and strategic initiatives. Sirius XM trades at less than 9 times earnings, suggesting investors are not factoring in potential growth.
• Celsius Holdings Upside: Celsius, a purveyor of healthier energy drinks, holds the third-largest market share and has seen robust growth, even as competitors struggle. In the second quarter, revenue jumped 23% year over year, while EPS surged 65%. Despite fears of decelerating growth, analysts see a 141% upside potential for the stock, citing Celsius’s leadership in the functional energy drink market and its attractive valuation.

No-Brainer Buy and Hold Stocks

• Amazon Growth: Amazon, with over $600 billion in annual revenue, continues to grow at around 10% year over year, adding approximately $60 billion in new sales annually. Amazon Web Services (AWS), the company’s cloud computing unit, is a major driver of growth, expanding at a rate of roughly 19% year over year. The company is also a pioneer in robotics and artificial intelligence (AI), making it a compelling long-term investment.
• Meta Platforms Cash Flow: Meta Platforms generates significant free cash flow, increasing it from $3 billion to nearly $50 billion over the past decade. This robust cash flow allows the company to return value to shareholders through dividends, share repurchases, and acquisitions, contributing to potential long-term share price appreciation.

Eli Lilly’s Growth Catalysts

• GLP-1 Dominance: Eli Lilly, a major player in the GLP-1 market with drugs like Mounjaro and Zepbound, stands to benefit from the expanding market for these treatments for diabetes and obesity. The global market for GLP-1s is expected to reach $100 billion by 2030, with potential for further growth as the drugs are investigated for new indications.
• Alzheimer’s Treatment: Lilly’s recently approved Alzheimer’s drug, donanemab, has the potential to disrupt the market and add to Lilly’s revenue growth. The global Alzheimer’s disease therapeutics market is expected to grow at a compound annual rate of 19% between 2024 and 2033.
• AI in Healthcare: Lilly is exploring the potential of artificial intelligence (AI) in healthcare, particularly in the development of antimicrobial medications to combat drug-resistant bacteria. This innovative approach could lead to significant long-term growth opportunities for the company.

Stock Split Opportunities

• Walmart Value Proposition: Walmart’s stock split reflects the company’s strong performance in a challenging economic environment, with consumers seeking value offerings. The retailer’s online sales are also growing briskly, driven by curbside pickup and delivery services, as well as an expanding third-party merchant network.
• Nvidia’s AI Leadership: Nvidia, a semiconductor leader, is at the forefront of the AI revolution, with its chip designs powering cloud computing giants like Microsoft and Alphabet. The company is expected to benefit from the massive spending on AI infrastructure, with its sales projected to grow significantly in the coming years.

Analyst Favorites

• Planet Fitness Growth: Analysts are optimistic about Planet Fitness’s growth prospects, citing its strong consumer value proposition, high-margin franchise model, and a new CEO who is focused on enhancing shareholder returns.
• Ross Stores Value Shift: Ross Stores is benefiting from a shift in consumer spending toward value offerings, with its enhanced merchandise efforts attracting customers. The company’s margins and earnings are expected to expand due to increased efficiencies and a higher mix of branded merchandise.
• SentinelOne AI Security: SentinelOne is experiencing strong growth, with its AI-powered Singularity Platform gaining traction in the cybersecurity market. The company recently delivered positive net income and earnings per share, and its full-year revenue guidance reflects robust momentum.

Lululemon Athletica Rebound Potential

• Lululemon’s Recent Challenges: Lululemon’s stock has been pressured by disappointing growth, driven by factors such as product missteps and a challenging economic environment. The company’s earnings and revenue guidance for 2024 reflect this near-term headwind.
• Lululemon’s Long-Term Potential: Despite recent struggles, Lululemon remains a dominant player in the athleisure and yoga market. The company has a strong track record of innovation and is working to address its recent product shortcomings.
• Potential for a Recovery: Analysts anticipate a rebound in Lululemon’s stock price, driven by a combination of improved product offerings and an expected economic recovery in 2025.

Dividend Stock Picks

• AbbVie Dividend Growth: AbbVie, a Dividend King with a 3.2% forward dividend yield, has a strong track record of dividend growth and is expected to deliver high-single-digit revenue growth through the end of the decade.
• Merck’s Patent Cliff: Despite the approaching patent expiration for Keytruda, Merck has a strong pipeline of new drugs and is developing a subcutaneous version of Keytruda that is expected to be a blockbuster.
• Pfizer’s High Yield: Pfizer, with a high dividend yield of around 6%, is navigating a transition phase as it faces patent losses and declining COVID-related revenue. The company is investing in new products and acquisitions, making it a potentially attractive dividend play.

Discount Dividend Stocks

• United Parcel Service: UPS’s stock has been pressured by the decline in e-commerce sales, but the company is benefitting from a rebound in traditional delivery services. Analysts are anticipating revenue growth in 2025, making it a compelling dividend stock with a 5% forward yield.
• Devon Energy: Devon Energy, an oil and gas producer, has a high dividend yield of 4.7%, which is subject to fluctuations based on oil prices. The company’s dividend strategy makes it a direct play on the price of oil, offering potential for significant income.
• Franklin Resources: Franklin Resources, an investment management company, has seen a sell-off in its shares due to investor sentiment towards mutual funds, but the company has a strong track record of dividend growth and is expected to maintain its position in the market.

August’s Best Performing Mid-Cap Stocks

• Polestar Automotive Holding: Polestar Automotive Holding’s stock soared in August due to strong second-quarter deliveries.
• Upstart Holdings: Upstart Holdings reported better-than-expected second-quarter results, driving a surge in its stock price.
• Lumen Technologies: Lumen Technologies reported mixed second-quarter results, but its stock price surged on the back of its earnings release.
• GDS Holdings: GDS Holdings reported a better-than-consensus second-quarter loss per share, leading to a rise in its stock price.
• Tempus AI: Tempus AI benefited from investments by Google and SoftBank Group Corp, boosting its stock price.
• Clear Secure: Clear Secure reported better-than-expected quarterly results, driving a gain in its stock price.
• Iovance Biotherapeutics: Iovance Biotherapeutics issued upbeat guidance for 2024 and 2025, along with strong second-quarter earnings, leading to a jump in its stock price.
• Evolent Health: Evolent Health received takeover inquiries from private equity firms and healthcare providers, leading to a surge in its stock price.
• Semtech Corporation: Semtech Corporation reported a second-quarter earnings beat, driving a rise in its stock price.
• AST SpaceMobile: AST SpaceMobile announced its plans to launch five satellites in early September, leading to a gain in its stock price.

Chipotle Mexican Grill’s Growth Prospects

• Chipotle’s Steady Climb: Despite occasional pullbacks, Chipotle’s stock price has steadily climbed over time, suggesting a long runway for growth.
• Chipotle’s Strong Performance: The company’s business remains robust, with same-store sales soaring 11.1% in the second quarter of 2024.
• Chipotle’s Leadership Succession: While the CEO’s departure is noteworthy, the company has a strong leadership team in place and is operating efficiently.

Miscellaneous

Music & Entertainment

• Super Bowl LIX Halftime Show: Kendrick Lamar, a multi-platinum, Grammy and Emmy award-winning artist, will headline the Apple Music Super Bowl LIX Halftime Show on February 9, 2025. This marks Lamar’s second appearance at the event, following his 2022 performance. The performance will be directed by Lamar’s creative imprint, pgLang, and produced by DPS, with Roc Nation and Jesse Collins serving as executive producers.
• Apple Music Halftime Show: Cultural Impact: The Apple Music Super Bowl Halftime Show, now in its fourth year with a multi-year partnership between the NFL and Roc Nation, has become the most-watched musical performance of the year. The previous two performances, featuring Usher and Rihanna, garnered numerous Emmy nominations, demonstrating the show’s continued success and cultural impact.

Indian Real Estate: Coworking Expansion

• Incuspaze Expands in Bengaluru: Coworking firm Incuspaze has leased 3.25 lakh sq ft of office space in Bengaluru’s QUBE Software Park, Outer Ring Road. This expansion, accommodating over 5,000 seats, follows Incuspaze’s recent acquisition of 1.56 lakh sq ft of office space in Whitefield, Bengaluru. The company plans to add 2 million sq ft of office space in Bengaluru and other key cities of South India in the next year.
• Growth-Driven Expansion: Incuspaze attributes its expansion to India’s growth-oriented ecosystem, which continues to attract both domestic and foreign occupiers. The company’s expansion reflects the increasing demand for flexible workspaces in India’s booming tech sector.

Luxury Yachting & Monetization

• NFL Billionaire’s Superyacht Charter: NFL billionaire Shahid Khan has made his superyacht, Kismet, available for charter at a cost of $3 million per week. The 122-meter yacht boasts a Balinese-inspired spa, gym, basketball court, pickleball court, three pools, four bars, an outdoor cinema, a DJ booth, and a grand piano.
• Monetizing Luxury Assets: Khan’s move to charter his superyacht reflects a growing trend among billionaires to monetize their luxury assets. This trend indicates the increasing demand for ultra-luxury experiences among the world’s wealthiest individuals, who are willing to pay premium prices for exclusive experiences.

Class Action Lawsuit Against Extreme Networks

• Allegations of Financial Misconduct: Bronstein, Gewirtz & Grossman, LLC has filed a class action lawsuit against Extreme Networks, Inc., alleging that the company made false and misleading statements about its financial performance. The lawsuit seeks to recover damages for investors who purchased Extreme Networks securities between July 27, 2022, and January 30, 2024.
• Misleading Statements: The lawsuit alleges that Extreme Networks misrepresented its financial performance by overstating the size of its backlog and downplaying the negative impact of weak client demand. Investors are encouraged to contact the law firm to learn more about the lawsuit and potential participation.