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 Wednesday as investors digested stubborn inflation data.

• 📈 | One Notable Gainer: Lululemon’s stock added 2.3% after the activewear brand partnered with Disney for a much-hyped collaboration.

• 📉 | One Notable Decliner: Semiconductor stocks sold off, dragged down by a 6.6% slump in Monolithic Power shares after a report revealed potential risks to its allocation in NVIDIA’s Blackwell GPU line.

Plus, do taxes stress you out? Yep, us too. Thankfully, today’s partner Gelt has a solution to that problem. Read below and support our sponsors. They’re what keep these trade ideas flowing on a daily basis.

Sponsored by Gelt

Top 3 Tax Mistakes High Earners (>$200k) Make, and how to avoid them

Even high earners make costly tax mistakes. Here are the top three to watch out for—and how to avoid them to keep more of your hard-earned income.

1. Think about taxes once a year—by then, it’s often too late for tax-saving moves.

2. Sign their own tax return—risking higher chances of an IRS audit.

3. Don’t strategize—missing out on a professionally crafted plan to minimize liability and maximize deductions.

Gelt is helping individuals and businesses optimize their taxes while staying fully compliant. Leverage top-tier CPAs and proprietary AI-technology to maximize your tax efficiency.

Gelt isn’t just about filing taxes; it’s about creating a smarter, stress-free approach to your finances. Stop overpaying taxes and start making the most of your money.

Street Sheet readers can sign up for a free consultation and enjoy 10% off!

MARKET MOVERS

Warner Bros, Boeing, Charter

WBD (+5.4%) Wolfe upgrades Warner Bros. Discovery as trends at Max improve (SeekingAlpha)

BA (-3.6%) Boeing stock slides as company posts sharp decline in October deliveries due to strike (YF)

CHTR (+3.6%) Liberty Deal Looks Favorable for Charter as Malone Simplifies His Empire (Barron’s)

SMCI (-6.3%) Will Super Micro Stock Be Delisted? (Forbes)

ALB (+5.3%) Albemarle Corporation is Attracting Investor Attention: Here is What You Should Know (Zacks)

OVERHEARD ON THE STREET

WSJ: Inflation rose 2.6% annually in October, per the Consumer Price Index, in line with expectations, but showing upward pressure on prices remains stubbornly high.

NBC: Republicans will win the House, giving President-elect Donald Trump's party full control of Washington.

CNBC: Amazon launched its Temu and Shein competitor, Amazon Haul, a discount store in its mobile app offering products priced below $20 and two-week shipping.

Reuters: Bitcoin surged past $90,000 for the first time today, continuing its rally amid expectations that a Trump presidency will benefit cryptocurrencies.

TechCrunch: AMD will lay off 4% of its workforce to prioritize "large growth opportunities."

TOMORROW’S TRADE IDEA, TODAY

One Way To Ride the Next Wave of AI

Not Just an Ankle Biter

Wells Fargo (WAF) analyst Michael Turrin recently upgraded software company Twilio (TWLO) to Overweight and raised his price target by 50% to $120 per share. That price target represents around 20% upside from Wednesday's close. 

Twilio is a cloud-based communications company with its shares up more than 30% YTD. Software stocks across the board are starting to rebound as the year draws to a close, and Turrin believes it still has plenty of room to run.

Positioned in the Pocket

The first wave of AI largely benefited chipmakers and tech giants. Turrin feels that software vendors have the most to gain from the next wave. And Twilio in particular may be well-positioned to take advantage of that. 

The company’s AI-powered customer engagement services leave it poised for sustained growth as AI continues to take hold, Turrin says, as do its platform-as-a-service capabilities.

Twilio should also be able to leverage data and infrastructure to further its growth, the analyst adds.

Acclaimed Collab

It helps that Twilio has partnered with one of the biggest players in the AI industry.

Turrin is bullish on the company’s integration with ChatGPT-creator OpenAI’s Realtime API, which permits developers to build low-latency speech-to-speech AI agents directly into applications. This could help bring in companies who choose to build in-house solutions rather than use pre-existing ones.

For investors who sat on the sidelines, the AI wave of recent years “stoked” nothing but FOMO. But if Turrin is to be believed, now may be the time to start paddling to catch the next one.

Sponsored by Gelt

Top 3 Tax Mistakes High Earners (>$200k) Make, and how to avoid them

Even high earners make costly tax mistakes. Here are the top three to watch out for—and how to avoid them to keep more of your hard-earned income.

1. Think about taxes once a year—by then, it’s often too late for tax-saving moves.

2. Sign their own tax return—risking higher chances of an IRS audit.

3. Don’t strategize—missing out on a professionally crafted plan to minimize liability and maximize deductions.

Gelt is helping individuals and businesses optimize their taxes while staying fully compliant. Leverage top-tier CPAs and proprietary AI-technology to maximize your tax efficiency.

Gelt isn’t just about filing taxes; it’s about creating a smarter, stress-free approach to your finances. Stop overpaying taxes and start making the most of your money.

Street Sheet readers can sign up for a free consultation and enjoy 10% off!

ON OUR RADAR

CNBC: Dogecoin has surged more than 150% since Election Day, most recently gaining following Trump's announcement of a Department of Government Efficiency (DOGE).

Barron’s: Trump's tariff proposal could increase the cost of an iPhone by $240.

Reuters: Trump and President Joe Biden met and pledged a smooth transfer of power in January.

AP: The Supreme Court appears poised to allow a class-action lawsuit against NVIDIA to proceed.

FT: John Thune was elected Senate majority leader in a move seen as a rebuke to Trump allies, including Elon Musk.

TUESDAY’S POLL RESULTS

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

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish