Happy Thursday 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 slightly Thursday as investors awaited more key economic data this week.

• 📈 | One Notable Gainer: American Airlines shares rose 16.8% after announcing Citi will become its sole credit card partner, replacing Barclays in 2026.

• 📉 | One Notable Decliner: American Eagle stock dropped over 14.3% after missing Q3 revenue expectations and offering weak holiday guidance.

Plus, ditch the high fees typically associated with direct index investing and use today’s partner, Frec to automate your way to thousands of dollars in tax savings.

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With an index ETF, you own a piece of the ETF fund. This means you don’t own the stocks that are part of the index. 

However, with direct indexing, you own the underlying stocks. 

You might be wondering: why go through all this trouble? 

The answer is tax savings. 

In an index ETF, the underlying stocks cannot be traded by you. 

But with direct indexing, you unlock the ability to sell stocks that are down to claim a loss, temporarily buy a different one while still tracking the index, and buy back the stocks you sold later.

Here’s the thing: you either have to do this manually (which is time consuming and challenging) or deal with high fees or high account minimums through wealth advisors and large financial institutions.

On the other hand, Frec automates this process for you and gives you the ability to invest for as little as a 0.10% aum fee. 

St. Sheet is not a Frec customer and Frec paid a one-time fee for this full sponsorship. Frec’s aum fees range from .10%-.45% based on the index chosen. Investing involves risk, including the risk of loss. Brokerage services provided by Frec Securities LLC, member FINRA/SIPC and advisory services provided by Frec Advisers LLC, an SEC RIA. Both wholly owned subsidiaries of Frec Markets, Inc.

MARKET MOVERS

Five Below, SentinelOne, Synopsys

FIVE (+10.5%) Five Below Q3 Earnings Surpass Estimates, Gross Margin Rises Y/Y (Zacks)

S (-13.2%) SentinelOne Stock Tumbles Amid Revenue Beat As Guidance Underwhelms (IBD)

SNPS (-12.4%) Synopsys Stock Is the S&P 500's Worst Performer Today (Investopedia)

CHPT (+10.7%) ChargePoint Stock Trades Up, Here Is Why (StockStory)

SIG (-11.9%) Signet Stock Plunges on Underwhelming Results, Outlook Cut (Investopedia)

OVERHEARD ON THE STREET

CNBC: McKinsey's subsidiary will pay $123 million to settle claims it bribed South African officials, with profits of $85 million tied to the scheme.

WSJ: A Texas judge rejected Boeing's guilty plea, citing concerns over the inclusion of diversity requirements in the appointment of a compliance monitor.

AP: The District of Columbia sued Amazon for secretly halting fast deliveries to two predominantly Black ZIP codes, despite charging for Prime benefits.

Reuters: Intel appointed chip industry veterans Eric Meurice and Steve Sanghi to its board as the company searches for a new CEO.

CNN: AstraZeneca appointed Iskra Reic as China head, replacing Leon Wang, who is under investigation, amid investor concerns over his detention.

TOMORROW’S TRADE IDEA, TODAY

Don’t Be Surprised if Roku is Acquired Next Year

Ripe For the Picking

According to Needham, Roku (ROKU) is ripe for the picking, and could be acquired next year by a competitor. 

Analyst Laura Martin believes that it is attractive due to its vast user base, unique data, and pricing power. Additionally, it would likely be more cost-effective to purchase the company than to build a similar platform. 

Martin believes it will be purchased for a “large premium” over the next 12 months once Republicans take control and loosen regulations.

Potential Buyers

Companies such as Netflix (NFLX), as well as advertisers like The Trade Desk, retailers or AI operators are all potentially in the market to purchase a company like Roku.

According to Martin, it features “best in class” consumer viewing and ad spending data. Additionally, its control over ad viewing provides pricing power and its ability to direct audiences through its homepage gives it negotiating leverage.

The Stock

The stock has gained over 25% over the past month as investors begin to price in the likelihood of an acquisition in the near future. 

Martin has given the stock a buy rating with a price target of $100 per share, which is around 32% upside from current prices.

Sponsored by Frec

Done-For-You, Low-Fee Direct Investing: Sign Me Up!

With an index ETF, you own a piece of the ETF fund. This means you don’t own the stocks that are part of the index. 

However, with direct indexing, you own the underlying stocks. 

You might be wondering: why go through all this trouble? 

The answer is tax savings. 

In an index ETF, the underlying stocks cannot be traded by you. 

But with direct indexing, you unlock the ability to sell stocks that are down to claim a loss, temporarily buy a different one while still tracking the index, and buy back the stocks you sold later.

Here’s the thing: you either have to do this manually (which is time consuming and challenging) or deal with high fees or high account minimums through wealth advisors and large financial institutions.

On the other hand, Frec automates this process for you and gives you the ability to invest for as little as a 0.10% aum fee. 

St. Sheet is not a Frec customer and Frec paid a one-time fee for this full sponsorship. Frec’s aum fees range from .10%-.45% based on the index chosen. Investing involves risk, including the risk of loss. Brokerage services provided by Frec Securities LLC, member FINRA/SIPC and advisory services provided by Frec Advisers LLC, an SEC RIA. Both wholly owned subsidiaries of Frec Markets, Inc.

ON OUR RADAR

Axios: Private stock tenders surged 44% in Q3 2024, with early-stage companies making up half the offers, as founders delay IPOs for liquidity.

CNN: Anesthesiologists are protesting Anthem Blue Cross Blue Shield’s plan to limit anesthesia coverage time, arguing it’s a misguided effort to cut costs.

Axios: The Biden administration moved to end subminimum wages for workers with disabilities, aiming to eliminate a practice rooted in past discrimination.

CNBC: To ease the housing crisis, U.S. malls are being converted into apartment complexes, with over 192 malls planning housing projects.

CNN: The number of 401(k) millionaires increased by 9.5% in Q3, with 544,000 accounts holding over $1 million, according to Fidelity.

WEDNESDAY’S POLL RESULTS

Which stock do you think will outperform over the next 12 months?

🟩🟩🟩🟩🟩🟩 Cleveland-Cliffs

🟨🟨🟨🟨⬜️⬜️ Commercial Metals