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 on Tuesday. The Nasdaq Composite dropped roughly 2%, with Apple and other big names in the tech sector seeing steep declines. The Dow also tumbled approximately 400 points, and the S&P 500 dipped 1%.

• 📈 | One Notable Gainer: Target saw a 12% jump due to stronger-than-expected holiday-quarter earnings paired with plans to introduce private-label brands and a new membership program.

• 📉 | One Notable Decliner: Apple shares fell yet again, dropping by nearly 3% following a report that iPhone sales have plunged 24% in China.

• ⬇️ | Tomorrow's Trade: What Goes Up Must Come Down. Scroll down for more.

Plus, today’s partner is presenting novel solutions to the deadliest cancers…

MARKET MOVERS

Gitlab, Meta, and Tesla

GTLB (-21%) GitLab exceeded revenue expectations by roughly $6 million, but its full-year guidance fell short of what Wall Street expected (YF)

AMD (-1%) AMD hits US roadblock in selling AI chip tailored for China (Reuters)

Meta (-2%) Meta's stock price falls amidst Facebook and Instagram outage (DM)

Tesla (-4%) Tesla stock slides as suspected Arson halts production at Berlin plant (Investopedia)

Walmart (+1%) Walmart was among the small group of stocks able to buck today’s trend (CNBC)

POWERED BY THERIVA

For The First Time The US Is Set To Hit 2 Million New Cancer Cases: Theriva Biologics Presents Novel Solutions To The Deadliest Cancers

A recent cancer study showed that the incidence rates of early-onset cancer "increased substantially" from 2010 to 2019. The increasing cancer incidence, especially among young people, is a big cause for concern in the medical community. Specifically, there is an increase in pancreatic cancer, which is expected to become the second-highest cause of cancer-associated deaths in 2030 in the U.S.

Theriva Biologics is one of the biotech companies that is helping push the envelope in cancer treatment. The company specializes in developing oncolytic viruses that are unique and highly differentiated. The company's lead drug candidate is VCN-01, which is a uniquely engineered human adenovirus 5. The clinical-stage company's innovative drug research might present a novel solution to extend the lives of those suffering from the deadliest of cancers, providing patients with new hope and improved outcomes. 

Click here to read more!

OVERHEARD ON THE STREET

UBS: UBS says that investor euphoria isn’t close to what it was in the late 1990s before the dot-com bubble burst.

YF: But, but, but a new economic model highlighted by economist David Rosenberg suggests there’s an 85% chance of a recession within the next 12 months.

Reuters: India’s most valuable carmaker, Tata Motors, hit a record high today after announcing it will separate its commercial vehicle and passenger vehicle units in a demerger.

Barron’s: Members of the so-called “Magnificent Seven” group of mega-cap tech stocks struggled with Microsoft, Meta, Tesla, and Apple trading lower on the day.

CNBC: Energy stocks in the S&P 500 were able to sidestep today’s market downturn. The sector is up more than 1%, while the index as a whole fell around 1%.

A MESSAGE FROM OUR PARTNERS

TOMORROW’S TRADE IDEA, TODAY

What Goes Up Must Come Down

On the Rise

Bitcoin (BTC) recently broke $65,000 for the first time since 2021. The cryptocurrency now has a market cap of $1.3 trillion. 

The asset has benefitted from geopolitical tensions, bank failures, and the introduction of BTC ETFs. As a result, Bitcoin and other crypto-related stocks have been surging.

This drastic price increase has analysts thinking that some crypto-related stocks now belong in the “overbought” category.

Coinbase

Coinbase Global Stock (COIN), one of the largest crypto exchanges in the world, is up a whopping 247% over the past 12 months.

Coinbase earns most of its revenue through commissions and fees from trades. As the price of Bitcoin has increased, so have commissions earned from each transaction. Its Q4 revenue was $529.3 million, up 64.3% year-over-year. 

Of 21 analysts covering the stock, 8 have it as a “strong buy.” However, the average price target of $159.11 would indicate a decrease of around 30% from its current price.

Marathon Digital Holdings

Bitcoin mining company Marathon Digital Holdings (MARA) is another crypto stock that may be overbought. It’s up an incredible 256% over the past 12 months. It brought in $156.8 million in revenue in Q4 but lost an adjusted $0.02 per share. 

The company has been focusing on increasing its mining capacity, and it ended 2023 with around $1 billion in liquidity. It’s also focusing on cutting debt and seeking out acquisitions. 5 out of 9 analysts covering the stock have it as a “hold.” The average price target is $19.10, a 25% decrease from its current price. 

There’s a lot of hype around Bitcoin these days. But if these price targets are correct, investors might be able to acquire these stocks at cheaper prices soon.

POWERED BY THERIVA

For The First Time The US Is Set To Hit 2 Million New Cancer Cases: Theriva Biologics Presents Novel Solutions To The Deadliest Cancers

A recent cancer study showed that the incidence rates of early-onset cancer "increased substantially" from 2010 to 2019. The increasing cancer incidence, especially among young people, is a big cause for concern in the medical community. Specifically, there is an increase in pancreatic cancer, which is expected to become the second-highest cause of cancer-associated deaths in 2030 in the U.S.

Theriva Biologics is one of the biotech companies that is helping push the envelope in cancer treatment. The company specializes in developing oncolytic viruses that are unique and highly differentiated. The company's lead drug candidate is VCN-01, which is a uniquely engineered human adenovirus 5. The clinical-stage company's innovative drug research might present a novel solution to extend the lives of those suffering from the deadliest of cancers, providing patients with new hope and improved outcomes. 

Click here to read more!

ON OUR RADAR

Fortune: Goldman says office buildings need a 50% price drop for residential conversion to be a real thing.

BI: The shrinking birthrate in the US could drag down GDP by 1-2 percentage points each year, according to Todd Buchholz, a former White House economist.

CNBC: US Energy Secretary Jennifer Granholm stated that the US is “very concerned” about China’s dominance as a critical minerals supplier.

Reuters: To add to the concern, China announced plans to boost its defense spending this year by 7.2% and has adopted an even tougher stance against Taiwan.

BI: Arizona Governor Katie Hobbs announced plans to cancel $2 billion in medical debt for up to 1 million residents.

A MESSAGE FROM OUR PARTNERS