2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire
Nine months into the year, the stock market is red-hot. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Index are all at or near all-time highs.
Undoubtedly, one of the reasons why is the artificial intelligence (AI) boom.
Let’s examine two AI stocks that have already made a few fortunes and have the potential to make many more in the years to come.
1. Meta Platforms
When it comes to AI, size and scale matter — and no social media company has a greater scale than Meta Platforms (NASDAQ: META).
As of the end of the second quarter, Meta had nearly 3.3 billion daily active users (DAUs). That’s a huge advantage for the company in many ways, but consider this: Meta is in a position to introduce its AI-powered features to roughly 40% of the world’s population.
That may not guarantee success, but it’s a great start.
As for the tools themselves, the company has developed several, under the banner of Meta AI, powered by its Llama 3.1 model:
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Image generation
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Problem solving
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Search capabilities
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Research
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Smart glasses
Crucially, the technology is designed to integrate with Meta’s family of apps. For example, users could ask Meta AI to generate a picture of them standing in front of the Eiffel Tower, which they could then post to Instagram or Facebook. Similarly, a user might ask Meta AI to suggest some recipe ideas for an upcoming potluck dinner — then post the ideas for those who are looking for inspiration.
Whether Meta AI will take off remains unknown. But in any event, Meta remains a stock that could continue making millionaires for many years to come. The company’s massive user base is generating tremendous amounts of ad revenue and profits — much of which it is returning to shareholders via stock buybacks and its recently instituted dividend. That makes Meta a stock that investors shouldn’t ignore.
2. Palantir Technologies
Oftentimes, it can be best to avoid overthinking in investing. That’s why I must suggest Palantir Technologies (NYSE: PLTR) as an AI stock that could make you a millionaire.
The company’s business model revolves around helping organizations make sense of vast volumes of data and use them to reach conclusions that they can act upon. That might seem like a simplistic business model — but one look at Palantir’s financials will demonstrate why it’s a winning formula.
In the second quarter, Palantir’s total revenue grew by 27% year over year while its U.S. commercial revenue increased by an even faster 55%. And while commercial clients are rushing to adopt Palantir’s platform to increase their efficiency, the company is still landing big contracts from its traditional source of strength: governments’ defense branches and intelligence agencies.
On Sept. 20, the company announced it had been awarded a five-year, $100 million contract to extend the use of its Maven smart system to the U.S. Army, Navy, Air Force, Space Force, and Marine Corps.
It’s another sign that while the company is more aggressively pursuing private-sector clients, government contracts remain an important piece of the puzzle. Indeed, government-derived revenues still account for more than half of its top line.
Analysts expect the company’s sales to increase a further 21% next year to about $3.3 billion. Granted, the AI field is volatile, and Palantir stock isn’t an appropriate pick for every investor or portfolio. However, those looking for an AI stock with massive upside potential need look no further than Palantir.
Should you invest $1,000 in Palantir Technologies right now?
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2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire was originally published by The Motley Fool
'You Don't Feel Like You Ate A Brick': Joe Rogan And Chamath Palihapitiya On The Shocking Truth About America's Food Supply
In a recent episode of The Joe Rogan Experience, billionaire investor Chamath Palihapitiya issued a stark warning about the state of the American food supply, calling it “the most precarious it’s ever been.” The food supply was one of several topics covered on the episode with host Joe Rogan, including a discussion about the 2024 election.
What Happened: Palihapitiya, known for his candid takes on business and society, shared alarming insights from his personal experience with diet and nutrition, sparking a critical conversation on the country’s health crisis.
During the podcast, Palihapitiya revealed that wearing a glucose monitor for 90 days changed his perception of supposedly healthy foods like quinoa and rice.
“The things that I thought were healthy for me, my body was like, this is radioactive,” Palihapitiya said, noting how these foods spiked his blood sugar.
He discovered that storing these foods in the fridge for 24 hours reduced their glycemic load—a tip few Americans know.
Did You Know?
Why It’s Important: The conversation shifted to a stark contrast between the food systems in Europe and the U.S. Palihapitiya explained how, despite not restricting himself, his health improved during his trips to Europe.
“When I’m back in the United States, I have to go back on lockdown,” Palihapitiya shared.
Despite eating similar foods, he saw negative effects on his body in the U.S., highlighting American food’s poor quality and additives.
Rogan agreed, adding that even foods like pizza feel different in Europe.
“Even when you eat pizza over there, you don’t feel like you ate a brick,” Rogan noted, pointing out the use of higher-quality ingredients and heirloom grains in European food versus the highly processed, enriched products common in the U.S.
Palihapitiya also touched on the broader systemic issues, mentioning how the U.S. food industry is rife with harmful additives and dyes banned in other countries.
“It’s brutally hard to figure this out,” he said, underscoring how difficult it is for Americans to eat healthy, especially in food deserts where only processed, fast foods are available.
The episode sparked widespread discussion online, with many viewers echoing concerns over the quality of the U.S. food system and its impact on public health.
Check This Out:
Photo: Featureflash Photo Agency/Shutterstock.com
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Disney Magic Meets Luxury Living – New High-End Developments Hit Southeast
As affluent buyers flock to the Southeast U.S. for a more relaxed lifestyle, a wave of high-end residential projects is launching.
According to Mansion Global, a new luxury community near iconic Disney World is among the most anticipated developments.
Located just four miles from Magic Kingdom Park, Four Seasons Private Residences Orlando will offer a collection of 40 elegant homes with access to world-class amenities.
Don’t Miss:
The project is on five acres adjacent to the Four Seasons Resort Orlando, providing residents access to the resort’s five-star amenities, including five pools, sports and fitness facilities, a full-service spa and a championship golf course.
As part of the Golden Oak at Walt Disney World Resort community, residents also will have access to the private clubhouse, fitness center and pool.
See Also: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
The residential tower, inspired by the resort’s Spanish Revival style, will feature spacious interiors, floor-to-ceiling windows and private verandas. Residents will also enjoy a private pool with lounge areas, cabanas and a children’s water play area.
Sales for the Four Seasons Private Residences Orlando are expected to launch later this year with completion anticipated in early 2026. The project is being developed by Host Hotels & Resorts with architectural design by HKS and interior design by Parker-Torres Design.
Prices are expected to start at more than $5 million.
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Art Residences Atlanta
Another new luxury property in the Sun Belt is Art Residences Atlanta, which features spacious living areas designed to showcase art, expansive interior wall space and ambient lighting.
Developed by Rockefeller Group, Art Residences residents also will have access to professional art consultant T Williams Design, who can provide expert advice on curating their personal art collections.
Trending: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want.
The residences have high-end features, including subzero and Wolf Appliances, wine refrigerators, in-wall fireplaces, balconies, white-oak flooring and large laundry rooms.
Communal amenities include a fitness club with adjoining space for personal training and yoga sessions, a resident-only all-season pool with views of Midtown and a clubroom with full kitchen and bar and a private outdoor terrace for relaxing and socializing.
Prices for the eight homes, which went on the market in July, start at $1.7 million with a penthouse priced at $2.1 million.
Paramount Nashville
Paramount, a new residential tower that rises 750 feet above the city, is poised to become Nashville’s tallest building. The mixed-use development will feature 360 apartments and 140 condominiums, offering residents a luxurious and sophisticated lifestyle.
The tower’s design features faceted surfaces that reflect light in multiple directions. The “crown,” composed of triangular glass surfaces that form a diamond shape, will occupy the top four floors and house the most exclusive residences.
Trending: Unlock the hidden potential of commercial real estate — This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!
Amenities include a fitness and yoga room, game room, residential lounges, demonstration kitchen, private dining room and coworking space with private study rooms. A 16,000-square-foot open deck includes a pool, lounge chairs, cabanas, grilling stations and an outdoor exercise area.
For condo residents, the 40th floor will have exclusive amenities, including a lounge and bar area, fireplace, lounge, private dining room and catering kitchen.
Pricing is not yet available for the Paramount, which is expected to be completed in 2027.
Read Next:
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Trump Wants US To Be Bitcoin Mining Capital Of The World — Core Scientific's Move To Buy Chips From Jack Dorsey Just The First Step In That Direction? CEO Gives Us His Take
Core Scientific Inc. CORZ, one of the world’s biggest Bitcoin BTC/USD mining companies, would remember 2024 as a turnaround year.
The firm exited Chapter 11 bankruptcy in January and relisted its shares on Wall Street. Since making a comeback, the company’s stock has surged nearly 260%.
The resurgence was largely fueled by a recovery in Bitcoin’s price, which had fallen to $16,000 when the company declared bankruptcy in December 2022. Since the recovery, the company has pivoted to a high-performance computing (HPC) model, servicing data center demand for artificial intelligence applications.
Benzinga talked to Adam Sullivan, the company’s CEO, about its strategy and the evolving dynamics of the industry in the U.S.
Halving Woes And The Pivot To AI
Sullivan acknowledged the industry’s pains, especially after the April halving, that slashed block rewards, a major component of mining revenue, by 50%.
The top executive disclosed that the company’s post-halving strategy, focused on hash price, local power costs, and environmental factors, has successfully maximized fleet performance and profitability
“We conducted extensive scenario analysis to understand the impact of different hash price assumptions on our business.”
Sullivan added that the company’s HPC strategy was shaped over the last 18 months, as it spotted a supply-demand balance in the high-power data center market.
In contrast to the volatile Bitcoin mining business, Sullivan described the AI business as a “predictable, long-term, and profitable revenue stream.”
Earlier in June, Core Scientific entered into a 12-year contract with Nvidia-backed cloud provider CoreWeave to provide infrastructure for AI use cases.
Sullivan said the company expected $6.7 billion in revenue as a result of the deal, positioning itself as one of the biggest publicly traded data center companies in the U.S.
See Also: PayPal Steps Up Crypto Game, Allows US Merchants To Buy, Sell, And Hold Digital Assets
Historic Deal With Jack Dorsey’s Block In Line With Trump’s “America First” Vision?
Bitcoin mining has received support from Republican presidential candidate Donald Trump, who wanted all remaining Bitcoins to be mined in the U.S.
Sullivan welcomed support from all elected officials, from the White House to Congress to local legislatures and city councils.
“We believe that Bitcoin and artificial intelligence represent strategic technologies that the United States must support and nurture to ensure continued leadership in the global arena” he said.
Sullivan also talked about Core Scientific’s historic mining chip purchase from Jack Dorsey’s company Block Inc SQ, departing away from the China-headquartered market leader. Bitmain.
“We believe the new Block ASIC chips will improve our mining economics in terms of initial capital expenditures, ongoing maintenance, and performance,” Sullivan stated.
The CEO added that the deal reflected the capabilities of domestic chipmakers, and strong government backing would pave the way for future success.
These insights set the stage for deeper discussions at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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ABR DEADLINE ALERT: ROSEN, TRUSTED INVESTOR COUNSEL, Encourages Arbor Realty Trust, Inc. Investors to Secure Counsel Before Important September 30 Deadline in Securities Class Action – ABR
NEW YORK, Sept. 29, 2024 (GLOBE NEWSWIRE) —
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Arbor Realty Trust, Inc. ABR between May 7, 2021 and July 11, 2024, both dates inclusive (the “Class Period”), of the important September 30, 2024 lead plaintiff deadline.
SO WHAT: If you purchased Arbor Realty securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Arbor Realty class action, go to https://rosenlegal.com/submit-form/?case_id=20777 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than September 30, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants provided investors with false and/or materially misleading information concerning Arbor Realty’s operational and financial health, including its balance sheet loan book and net interest income. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Arbor Realty class action, go to https://rosenlegal.com/submit-form/?case_id=20777 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
——————————-
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
case@rosenlegal.com
www.rosenlegal.com
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44-Year-Old Earning $60,000 Annually In Dividends Says He's 'Still Grinding And Not Spending Much' As He Relies On These 8 Investment Picks
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
As investors look for attractive opportunities to funnel capital into the markets following the first rate cut, dividend stocks are gaining ground. In a recent interview with CNBC, John Linehan, T. Rowe Price’s chief investment officer of equity, said dividend stocks outperform the market over the long term. The analyst said he prefers dividend stocks with decent yields and attractive valuations.
Looking beyond rate cuts, what kind of dividend stocks and ETFs can help you reach dividend income significant enough so you could stop living paycheck to paycheck? There are plenty of success stories that can provide beginners with inspiration and guidance.
Check It Out:
About two years ago, someone shared their detailed dividend income report on the r/dividends community on Reddit, saying they reached about $60,000 in annual dividend income, with their portfolio yielding 9%.
Almost the entire portfolio of the investor was allocated to dividend ETFs. Here’s what he said about this:
“My money is in closed-end funds primarily so I try to understand them before I invest in them. A lot of them use leverage which means they got hit this past quarter with the increase in rates. We’ll see long term how that plays though.”
The dividend investor said the total worth of his portfolio was about $1.1 million, with about $600,000 in “high dividend.”
The investor was asked how he could save this kind of money for his investments. Here’s what he said:
“I started around 21. I’ve been saving and working in tech. I got lucky on a couple ipos and a house sale. So it really wasn’t a steady thing. I didn’t miss on my IRA and 401(k) contributions but that is a separate account with about 500k.”
This dividend investor got a lot of appreciation on Reddit for generating such a high yield from his investments. However, he repeatedly said he’s setting higher goals for himself and trying to save more.
“But there needs to be much more before I can take my foot off the gas. Still grinding and not spending much. My wife drives a 2015 minivan. We don’t take fancy vacations. Eating out is generally Chipotle, Chick Fil A and Tijuana Flats.”
A lot of people grilled the investor on being too worried about his spending and urged him to take it easy and live his life. In response, the Redditor said that he was not “frugal.”
“I have a new house on 1/2 acre land. My cars are paid for. We go out to eat when we want. I buy/build a new gaming PC every two years. We just don’t do the expensive versions of those things. Although last year I splurged and got the 3080 instead of the normal 3060 I’d have purchased.”
There were about 20 dividend funds in the portfolio of this dividend investor. Let’s take a look at the biggest funds in this high-yield portfolio.
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Global X Russell 2000 Covered Call ETF
Global X Russell 2000 Covered Call ETF (NYSE:RYLD) was the biggest holding of the Redditor earning about $60,000 in annual dividend income. RYLD generates income by selling call options on the small-cap-heavy Russell 2000 Index. The ETF yields about 12%. Being a covered call ETF, RYLD is also not risk-free and often posts losses during down markets. The ETF is now in the limelight as analysts believe small-cap stocks will be among the top beneficiaries of an easing monetary environment.
First Trust Energy Infrastructure Fund
First Trust Energy Infrastructure Closed Fund (FIF) was the second-biggest holding of the Redditor when he shared his portfolio details a couple of years back. However, in May this year, the fund was merged into FIRST TRUST EXCHANGE-TRADED FUND VIII (EIPI).
Western Asset Inflation-Linked Opportunities & Income Fund
About 7% of the Redditor’s portfolio generating $60,000 in dividend income per year was allocated to the Western Asset Inflation-Linked Opportunities & Income Fund (WIW). The fund primarily invests in U.S. treasuries. It yields over 8% and pays monthly income.
Quadratic Interest Rate Volatility and Inflation Hedge ETF
About 6% of the portfolio of the Redditor earning $60,000 in annual dividends was allocated to Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL). The fund invests in treasuries and interest rate options, helping investors hedge against fluctuations in interest rates and inflation. Roughly 80% of the fund’s portfolios is invested in Schwab U.S. TIPS ETF, which tracks the total return of an index composed of inflation-protected U.S. Treasury securities.
Eaton Vance Corporation Tax-Managed Global Buy-Write Opportunities Fund of Beneficial Interest
Eaton Vance Corporation Tax-Managed Fund (ETW) invests in U.S. and international stocks and generates income by selling call options on a portfolio of its holdings.
It’s a tax-efficient fund as it minimizes taxable distributions through its options strategy and managing the timing of stock sales. Apple, Nvidia, Amazon and Microsoft are among the fund’s top holdings.
Eagle Point Credit Company Inc.
Eagle Point Credit Company (ECC) is a publicly traded fund that primarily invests equity tranches of collateralized loan obligations (CLOs), which are high-risk, bundled leveraged loans from companies with limited credit access. These are high-yield, high-risk investments.
Cohen & Steers REIT and Preferred and Income Fund
The portfolio details publicly shared by the Redditor earning about $60,000 in dividend income per year showed about 2% of his total investments were in Cohen & Steers REIT and Preferred and Income Fund (RNP), which generates income by investing in real estate stocks. The fund also invests in fixed income, including debt and preferred securities of companies operating across diversified sectors.
Nuveen Real Asset Income and Growth Fund
Nuveen Real Asset Income and Growth Fund (JRI) invests in real estate stocks and fixed-income securities. Its portfolio consists of common stocks, preferred securities and companies’ debt involved in infrastructure, facilities, services and REITs.
Interest Rates Are Falling, But These Yields Aren’t Going Anywhere
Lower interest rates mean some investments won’t yield what they did in months past, but you don’t have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
Arrived Homes, the Jeff Bezos-backed investment platform, offers a Private Credit Fund. This fund provides access to a pool of short-term loans backed by residential real estate with a target of 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
This article 44-Year-Old Earning $60,000 Annually In Dividends Says He’s ‘Still Grinding And Not Spending Much’ As He Relies On These 8 Investment Picks originally appeared on Benzinga.com
PDD Investor Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against PDD Holdings Inc. f/k/a Pinduoduo Inc. (PDD)
RADNOR, Pa., Sept. 29, 2024 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York against PDD Holdings Inc. f/k/a Pinduoduo Inc. (“PDD”) PDD on behalf of investors who purchased or otherwise acquired PDD securities between April 30, 2021 and June 25, 2024, inclusive (the “Class Period”) The lead plaintiff deadline is October 15, 2024.
CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP:
If you suffered PDD losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/pdd-holdings-inc?utm_source=PR&utm_medium=link&utm_campaign=pdd&mktm=r
Please CLICK HERE to view our video or copy and paste this link into your browser: https://youtu.be/glvfZPoNCbE
You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at info@ktmc.com.
DEFENDANTS’ ALLEGED MISCONDUCT:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) PDD’s applications contained malware, which was designed to obtain user data without the user’s consent, including reading private text messages; (2) PDD has no meaningful system to prevent goods made by forced labor from being sold on its platform, and has openly sold banned products on its Temu platform; (3) the foregoing subjected PDD to a heightened risk of legal and political scrutiny; and (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
THE LEAD PLAINTIFF PROCESS:
PDD investors may, no later than October 15, 2024, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP encourages PDD investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE OR GO TO: https://www.ktmc.com/new-cases/pdd-holdings-inc?utm_source=PR&utm_medium=link&utm_campaign=pdd&mktm=r
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
info@ktmc.com
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
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Pelorus Fund REIT Seeks To Force StateHouse Holdings Into Receivership
In a significant move within California’s cannabis industry, Pelorus Fund REIT, LLC has filed a complaint in the Superior Court of California, requesting the appointment of a receiver to oversee StateHouse Holdings Inc.
The move comes after StateHouse STHZF defaulted on four loans, prompting Pelorus, a major creditor, to seek court intervention.
According to Dan Leimel Jr., CEO of Pelorus, the receivership aims to safeguard StateHouse’s operations, employees and assets while restructuring the company for enhanced efficiency and product delivery. “We recognize the inherent value in the Company’s operations, employees, and assets,” Leimel stated, underlining the intention to protect all stakeholders involved.
- Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you’re serious about the business.
StateHouse’s Mixed Financial Outlook
Despite the turmoil surrounding its financial stability, in August StateHouse Holdings reported a 10% year-over-year revenue increase for the second quarter of 2024.
Revenue reached $27.8 million, compared to $25.3 million in Q2 2023, with net income climbing to $200,000 from a $2.1 million loss the previous year. CEO Ed Schmults attributed this growth to innovative product launches and effective cost-saving measures, resulting in a gross margin improvement of 50.8%.
However, the company’s financial health remains precarious, marked by a net working capital deficiency of approximately $156 million. As it navigates these challenges, the company continues to expand its product offerings, having launched 24 new products in the past year, which now account for 15% of its sales for 2024.
Read Next: Nasdaq-Listed Vaping Company Ispire Reports 31% YoY Increase In 2024 Revenue
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Super Micro Computer Stock Has Fallen 30%. Before Buying or Selling, Here's What You Need to Know.
Super Micro Computer (NASDAQ: SMCI) started the year off with a bang. The stock soared 188% in the first half, even surpassing the performance of market darling Nvidia, and was invited to join both the S&P 500 and the Nasdaq-100. And for good reason. Earnings have soared at the equipment maker, thanks to demand from artificial intelligence (AI) customers.
The company sells workstations, servers, and other products essential for AI data centers. And considering forecasts for AI market growth — today’s $200 billion market is expected to reach $1 trillion by the end of the decade — the future looks bright too. But a few pieces of news in recent times have weighed on the company, and the stock has dropped nearly 30% since late August.
From a short report alleging troubles at the company to an article in The Wall Street Journal about a possible Justice Department probe, Supermicro has faced headwinds in recent times. So, if you’re a shareholder or potential shareholder, you may be wondering what to do. Before buying or selling, here’s what you need to know.
The Hindenburg report
The Hindenburg Research short report was published on Aug. 27. Hindenburg, following a three-month investigation, alleges “accounting red flags,” “evidence of… export control failures,” and other troubles at Supermicro.
It’s important to note that Hindenburg has a short position in Supermicro stock, meaning it benefits from any declines in the share price. In short selling, an investor borrows shares of a particular company, sells them — then ideally buys them back at a lower price to return to their original owner. Because of this position, Hindenburg has a bias toward the stock’s decline, making it difficult to rely on the firm as a source of information.
Supermicro responded to the report, calling statements “false or inaccurate,” and saying it would address them “in due course.”
In unrelated news, but around the same time as the Hindenburg report, Supermicro informed the market that it was delaying the filing of its 10-K annual report — a move that made some investors worry about potential changes to earnings figures. But Supermicro followed up by saying it didn’t expect any significant adjustments to its fourth-quarter or full-year numbers.
A new element of uncertainty
The comments addressing both of these issues should ease investors’ minds. But a third piece of news, just this past week, offered another element of uncertainty. The Wall Street Journal, citing people familiar with the matter, reported the Justice Department had launched a probe into Supermicro following the Hindenburg report.
The probe still is in the early stages, the WSJ reported, with a prosecutor from the U.S. attorney’s office in San Francisco recently contacting people who may have “relevant information.” Supermicro and the U.S. attorney’s office declined to comment, the Journal said.
Following this newspaper report, Supermicro shares fell 12% in one trading session.
So, now you may be wondering if this top AI equipment maker is really in trouble — and if you should stay away from the stock or sell. Or you may wonder, considering the recent decline in valuation, if this is an opportunity to get in on a recovery story at a good price.
Take a long-term view
Well, first, it’s important to remember that a Justice Department probe hasn’t been confirmed — and even if it is confirmed, this doesn’t mean Supermicro has done anything wrong. And, if we imagine a more difficult scenario, one in which a probe happens and potential problems are found, this wouldn’t necessarily spell disaster over the long term. So, it’s essential to follow the story and take a long-term view when considering any developments — positive or negative.
And if you’re a shareholder, avoid panic selling. Consider the facts, and again think of how they may impact the company over the coming five to 10 years. At the moment, from what we know, the future remains bright for Supermicro. The company has a solid track record of earnings growth, its products are in high demand, and growth of the AI market suggests Supermicro’s earnings growth could continue for quite some time.
Now, if you’re not yet a shareholder, should you buy the stock or wait? Very aggressive investors may see this as a good time to pick up a few shares of Supermicro, as it’s trading for about 11x forward earnings estimates, which is very cheap for a growth stock.
Still, most investors would be better off staying on the sidelines — temporarily — until we know more about the current issues. After all, Supermicro did say it would further address the statements in the Hindenburg report, and those words could ease investors’ minds.
All this means that, yes, there’s reason to be optimistic about Supermicro over the long term, but with some uncertainty weighing on the shares right now, it may be best to wait for some of those clouds to lift before buying.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Super Micro Computer Stock Has Fallen 30%. Before Buying or Selling, Here’s What You Need to Know. was originally published by The Motley Fool
Should You Buy SoFi Technologies While It's Trading Below $10?
The S&P 500 index keeps hitting new record highs in 2024, driven higher this month on enthusiasm over the Federal Reserve’s recent reduction of the fed funds rate. Plenty of stocks saw significant gains on the news, but SoFi Technologies (NASDAQ: SOFI) is one stock that has yet to benefit.
SoFi has done a solid job diversifying its business over the past several years. Still, its stock price remains down 51% from the start of 2022, just before the Federal Reserve began raising interest rates. The company has added new deposits at a staggering pace, but concerns linger about its credit portfolio.
With interest rates coming down, investors may want to purchase SoFi stock while it is trading below $10 a share. But they should consider the following first.
SoFi’s multiyear transformation
SoFi stock’s poor performance of late doesn’t represent the company’s progress over the past several years. This fintech got its start in the 2010s as a student loan specialist that used tech to more efficiently handle the student loan process. In 2022, the company acquired Golden Pacific Bancorp, giving it a banking charter that allows it to hold on to customer deposits and loans.
The move came at a good time for SoFi, ahead of the Federal Reserve‘s aggressive interest rate hiking cycle, and it was able to capitalize on the higher interest rate environment. Last year, SoFi raked in nearly $1.3 billion in net interest income, up over 400% from where it was in 2021. Solid growth continues through the first half of this year, with net interest income increasing 55% year over year to $815 million.
SoFi’s deposit base has also grown at an impressive rate. Since it acquired Golden Pacific, its total deposits have grown to nearly $23 billion, thanks to its high-yield savings accounts that currently offer an annual percentage yield (APY) of up to 4.5%.
While SoFi has progressed in advancing its business, it has been a money-burning operation until the past few quarters; last year, it lost $301 million. However, things are beginning to look up. SoFi reported $105 million in net income this year, up from its $82 million through six months last year, and has achieved a profit in three consecutive quarters.
SoFi’s push to be the AWS of fintech
SoFi’s banking business continues to grow steadily, but one aspect of its business that has me optimistic is its technology platform. Over the past few years, the company has invested heavily in Galileo and Technisys to build its technology platform to help bring banking products to non-bank companies.
Galileo provides back-end infrastructure for fintechs without banking charters, allowing them to process payments and provide other banking services through SoFi. Technisys replaces decades-old legacy systems that made it difficult to innovate quickly. Technysis can help support multiple products at once, runs on the cloud, and allows banks to process and analyze data in real-time. With this technology stack, SoFi has dreams of becoming the Amazon Web Services (AWS) of fintech.
The technology platform has bloomed into a business for SoFi that can also be a source of stability thanks to its use of long-term contracts. In the first half of this year, the technology platform’s net revenue was $190 million, up 15% from last year, and its contribution profit margin was a solid 33%.
What’s next for SoFi
Some concerns linger about SoFi’s lending business. In the second quarter, net charge-offs on its $16 billion personal loan portfolio ticked up to 3.84%, from 2.94% one year ago. Also, lending activity has fallen this year “in light of macroeconomic uncertainty,” according to CEO Anthony Noto earlier this year. Investors will want to continue monitoring net charge-offs, which could impact the bottom line if they continue to rise.
However, with interest rates falling, SoFi is well-positioned to benefit. For one, Noto has said SoFi will continue offering higher interest rates than competitors thanks to its loan portfolio. This should help it continue growing its deposit base, giving it the capital to hold more loans on its books.
Lower interest rates could also boost its lending business. According to data from the Federal Reserve, personal loan interest rates have gone from 8.73% in 2022 to as high as 12.49% last year. Further rate cuts in 2025 should help reduce borrowing costs and make for a more attractive refinancing environment for consumers.
Is SoFi a buy?
SoFi’s earnings have improved, and analysts covering the stock expect income growth to continue over the next few years. This year, they project SoFi’s net income will be $173 million, followed by $320 million in 2025 and $577 million the year after that.
Its bottom line is improving, and lower interest rates should be another positive tailwind for its lending business. With multiple growth levers in place, I think now is an excellent time to scoop up shares of the fintech.
Should you invest $1,000 in SoFi Technologies right now?
Before you buy stock in SoFi Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $743,952!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 23, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
Should You Buy SoFi Technologies While It’s Trading Below $10? was originally published by The Motley Fool