Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US stocks fell today as the first day of CES 2025 failed to impress tech investors.

• 📈 | One Notable Gainer: Moderna shares rose sharply, adding nearly 12%, following news of the first bird flu death in the US. The company is developing a vaccine for the virus.

• 📉 | One Notable Decliner: NVIDIA shares slumped 6.2% despite breaching an all-time high intraday after unveiling a new generation of chips for AI and gaming at the aforementioned tech conference.

Plus, today’s partner, an asset manager with $1B in assets under management, is publishing their monthly thoughts on the market tomorrow. One-click subscribe here.

Sponsored by Griffin Asset Management

Welcome To Griffin

As a former Portfolio Manager at Citibank and Partner at Dreman Value Management, Tom Famigletti felt that his clients were underserved. At the time, he believed that the wealth management industry was headed in the wrong direction and that it paid far too much attention to volume, fees and transactions.

Tom founded Griffin Asset Management in 1995 as an Independent RIA with the singular objective of providing a more distinct and better level of service for his clients. A few years later, he convinced his son, Doug, to leave his position at Goldman Sachs to join him as a partner. Likeminded and highly experienced investors, Michael Jamison and John Carey, would later come on board as partners to be instrumental in leading and growing the firm to its present size. 

Griffin now manages over $1 billion in assets for a range of individuals, families, institutions, and foundations around the globe.

Click here to one-click subscribe to Griffin’s monthly newsletter which includes thoughts on the market, important wealth management tips, and more.

MARKET MOVERS

Tesla, Micron, Palantir

TSLA (-4.1 %) US opens probe into 2.6 million Tesla vehicles over remote driving feature (Reuters)

MU (+2.7%) Micron stock leaps following Nvidia CEO Jensen Huang's CES reveal (TheStreet)

PLTR (-7.8%) Palantir tumbles after ARK Invest sheds $15M in shares (SeekingAlpha)

FSLR (+3.4%) Smart Money Is Betting Big In First Solar Options (Benzinga)

MSTR (-9.9%) MicroStrategy Buys Bitcoin After Adding Preferred Offering (Bloomberg)

OVERHEARD ON THE STREET

Reuters: US service sector growth picked up in December with solid new orders, little change in employment, and the highest input prices since February 2023.

CNBC: President-elect Donald Trump announced a $20B foreign investment from billionaire Hussain Sajwani to build new data centers in the US.

NPR: President Joe Biden banned new offshore oil and gas drilling in most US coastal waters, a move Trump promises to reverse.

CNN: Meta will remove fact-checkers and replace them with user-generated "community notes" on Facebook and Instagram.

WSJ: AI startup Anthropic, backed by Amazon, is in advanced talks to raise $2B, bringing its valuation to $60B, up from $18B last year.

TOMORROW’S TRADE IDEA, TODAY

Is the Disney Renaissance Due for a Sequel?

Boardroom Blues

Disney (DIS) has lost some of its magic as of late. But Redburn Atlantic believes it could recapture it in the coming year.

The entertainment giant held pace with the S&P 500, rising 23% last year. But the company faced substantial pressures like cord-cutting and franchise fatigue, and fell short of sky-high expectations associated with its market dominance.

Zooming out, though, the struggles run deeper. In the past 10 years, the S&P 500 has returned some 190%. Disney has risen just 20% over the same period.

Return of the Renaissance?

Disney is no stranger to low lows — or high highs. In the 1980s, the company faced a similar downtrend, releasing a string of critical and commercial failures that failed to resonate with audiences or investors.

But in the subsequent decade, it released some of its most known and loved classics, like The Little Mermaid, Beauty and the Beast, and The Lion King, in what is now known as the Disney Renaissance. Over this period, Disney raked in extensive praise and profits, paving the way for the entertainment giant it became today.

Redburn analyst Hamilton Faber believes another such inflection point may be on the horizon. Films like Inside Out 2 and Deadpool & Wolverine broke box office records last year, and an increased focus on streaming profit growth could pay dividends soon, too.

Magic & Momentum

Another source of Faber’s bullishness is the company’s surging sports broadcasting arm. The analyst believes Disney’s direct-to-consumer ESPN offering could reach 21 million subscribers by 2028, without driving up costs too much.

The firm upgraded Disney to a Buy and raised its price target to $147, suggesting it could surge another 32% from today’s close.

Some Disney fans might be getting sick of all the sequels. But if another Disney Renaissance is coming soon to theaters, investors might want to be the first in line.

Sponsored by Cadiz

A Groundbreaking Partnership

This year, Cadiz, Inc. (NASDAQ: CDZI) is set to break ground on the Southwest’s largest water pipeline. The Mojave Groundwater Bank will send affordable, reliable, and clean water to much of the region, including historically underserved communities.

Cadiz made news in November when it purchased 180 miles of steel pipe from the failed Keystone XL project. And investors’ heads turned again shortly thereafter when the Lytton Rancheria tribe announced it would invest $50 million in the project.

It’s a groundbreaking partnership (see what we did there?) that marks the first major investment by a Native American tribe in large-scale water infrastructure off tribal lands.

ON OUR RADAR

WSJ: Trump threatened high tariffs on Denmark if officials don’t cooperate with his bid to buy Greenland.

Bloomberg: JPMorgan plans to return staff to the office five days a week, restoring pre-pandemic policies, as CEO Jamie Dimon has been critical of remote work.

CNBC: A New York appeals court judge rejected Trump's request to delay his criminal sentencing on Friday for his hush money conviction.

CNN: The Biden administration is finalizing a rule to ban medical debt from credit reports, removing $49B in bills from about 15 million people’s records.

BI: This startup is giving free 55-inch 4K TVs to users, and it just hired a former Uber executive as its first ads president to promote it.

MONDAY’S POLL RESULTS

Are you bullish or bearish on Boeing (BA) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨🟨⬜ 🐻 Bearish

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