Happy Wednesday 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 were mixed on Wednesday. Federal Reserve officials indicated at their last meeting that they were in no hurry to cut interest rates.

• 📈 | One Notable Gainer: Wix’s stock popped 6% after the website builder beat top and bottom line expectations.

• 📉 | One Notable Decliner: Shares of SolarEdge sank 12% on an “abrupt slowdown in demand” and inventory backlog.

• 💸 | Tomorrow's Trade: What Cash Crunch? Scroll down for more.

Plus, if you’re looking for more trade ideas, today’s partner might be worth checking out.

Also: Nvidia reported earnings after the bell that beat Wall Street expectations for earnings and sales. The company’s total revenue rose 265% from a year ago. Go deeper.

MARKET MOVERS

Teledoc, Ring Central & HSBC

TDOC (-24%) Teladoc stock plunges on weak revenue guidance (Yahoo! Finance)

PANW (-28%) Cybersecurity Stocks Tumble as Palo Alto Cuts Sales Forecast (Investopedia)

RNG (+3%) RingCentral calls for lower 2024 sales than Wall Street expects, stock falls then rises (MarketWatch)

TOL (4%) Toll Brothers (TOL) Stock Rises to Record With Strong Home Demand Outlook (Bloomberg)

HSBC (9%) HSBC shares fall most since 2020 after profits plummet 80% (Financial Times)

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Target Located: Bullseye!

If you're looking for free daily trading ideas, options trading strategies, and real-time alerts, then consider subscribing to Bullseye Trades. The e-letter is captained by world-famous 20-year trading veteran Jeff Bishop and is packed full of information.

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OVERHEARD ON THE STREET

WSJ: Reddit intends to offer shares in its initial public offering to 75,000 of its biggest users.

MarketWatch: Fed officials more worried about cutting rates too fast than moving too slow, minutes show.

WSJ: The Boeing executive in charge of the factory that built the jet involved in last month’s door-plug blowout is leaving the company amid a broader leadership shake-up.

The Block: Terraform Labs co-founder Do Kwon will be headed to the U.S. where he faces fraud charges linked to devastating losses for U.S. investors tied to an algorithmic stablecoin.

Bloomberg: China has banned major institutional investors from reducing equity holdings at the open and close of each trading day, part of the government’s most forceful attempt yet to prop up the nation’s $8.6 trillion stock market.

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TOMORROW’S TRADE IDEA, TODAY

What Cash Crunch?

All in Favor Say “Buy”

An immunology company could see its stock price rise by almost 40%, according to JPMorgan. 

Immunovant (IMVT) is a biotech company dedicated to finding solutions for those with autoimmune diseases. The stock closed at $36.50 per share today. JPM believes it can go much higher, with an average price target of $50.71. 

Analysts currently see the stock as overweight. Of the 15 analysts covering the stock, all 15 give it a “buy” rating or higher.

Burning Through Cash

Analysts tout the company’s technological advances in the anti-FcRn space to treat autoimmune diseases. They also like Immunovant’s focus on self-administering products. 

And yet, Immunovant has a bit of a cash problem. At the end of last year, it had $691 million in cash and had spent $211 million over the previous 12 months. Analysts predict that the company will begin to break even in 4 years. However, at its current rate, the company could run out of cash in a little over 36 months.

In a scenario like this, the company would need to raise capital through new issues or leveraging debt.

Growth Isn’t Cheap

Nevertheless, the company is continuing to ramp up its spending. Part of that cash is funding a clinical trial for IMVT-1402, a new injection designed to reduce the immunoglobulin G antibody. This could help reduce inflammation associated with autoimmune diseases.

Recently there have been a plethora of mergers, acquisitions, and partnerships taking place within the biotech industry. Some analysts believe that Immunovant’s impressive portfolio could lead it to a merger next. 

None of us can predict exactly how Inmmunovant will handle its cash crunch, but analysts are optimistic about the future of this stock’s technology.

POWERED BY BULLSEYE TRADES

Target Located: Bullseye!

If you're looking for free daily trading ideas, options trading strategies, and real-time alerts, then consider subscribing to Bullseye Trades. The e-letter is captained by world-famous 20-year trading veteran Jeff Bishop and is packed full of information.

Subscribe here to have it delivered directly to your inbox.

ON OUR RADAR

NYP: The White House said Wednesday it is canceling $1.2 billion worth of student loans for some 153,000 people, moving forward with a piecemeal solution to its debt forgiveness pledge after the Supreme Court struck down an earlier scheme to cancel $430 billion.

BBG: The UK has registered seven quarters without per person growth, the longest stretch on record.

BBG: More than $13.6 billion of loans and bonds issued by companies in Germany were distressed last month, 13 times the level in Italy.

QZ: Foreign businesses’ direct investments into China totaled $33 billion last year, down over 90% from a peak in 2021, and the lowest since 1993.

WSJ: The Biden administration plans to invest billions in the domestic manufacturing of cargo cranes, seeking to counter fears that the prevalent use of China-built cranes with advanced software at many U.S. ports poses a potential national-security risk.

A MESSAGE FROM OUR PARTNERS