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⚡ The Next Big Energy Deal
Plus, Meta’s new vision for virtual worlds—can you guess the price?
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 were mixed on Wednesday, as the Dow fell 293 points (0.7%) and the S&P 500 dipped 0.2%, with Amgen contributing to the market's retreat from recent highs. The Nasdaq ended mostly flat.
📈 | One Notable Gainer: Flutter Entertainment shares surged 5% after the FanDuel parent unveiled a $5 billion share buyback plan and projected revenue growth reaching $21 billion by 2027.
📉 | One Notable Decliner: Shares of Ford and General Motors dropped about 4% and 5%, respectively, after Morgan Stanley downgraded the automakers.
⚡ | Tomorrow's Trade: The Next Big Energy Deal. Scroll down for more.
GO DEEPER
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TOGETHER WITH THE INVESTMENT JOURNAL
Old wells leak methane, but one company grows rapidly by plugging them.
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
KBH (-5.4%) KB Home Stock Slides After Earnings: What to Know (Kiplinger)
PRGS (+11.9%) Progress Software Beats Q3 Estimates: Guidance Raise to Lift Shares? (Zacks)
AMGN (-5.5%) Amgen's Rocatinlimab Has Commercial Potential Despite Competitive Landscape, Says Goldman Sachs (Benzinga)
DJT (+10.5%) Trump Media stock surges as Donald Trump holds onto his shares (QZ)
NVDA (+2.2%) Nvidia stock edges up as industry report predicts 'unprecedented levels' of investment in AI data centers (YF)
OVERHEARD ON THE STREET
CNBC: Meta unveiled $299 Quest 3S VR headset, a cheaper alternative to the $499 Quest 3, and showcases its Orion AR glasses prototype for future tech.
AP: Southwest Airlines will cut one-third of its Atlanta flights next year, eliminating over 300 jobs as it seeks to boost profits.
Reuters: Starbucks CEO Brian Niccol affirmed his respect for workers' union rights during ongoing contract talks with Workers United.
CNBC: In an antitrust complaint, Google claims Microsoft’s Azure licensing contracts unfairly hinder cloud competition and customer migration.
Reuters: A Senate panel faulted Boeing's safety culture and FAA oversight, citing worker pressure to prioritize speed over quality.
TOMORROW’S TRADE IDEA, TODAY
The Next Big Energy Deal?
Powering Partnerships
Bloom Energy (BE) could see its share price double, according to one investment bank — as long as it can follow in its competitors’ footsteps.
Constellation Energy (CEG) just inked a major contract with Microsoft (MSFT) to restart the power plant on Three Mile Island and supply the tech giant with electricity generated. This suggests that tech companies are willing to shell out big bucks for reliable power sources to power the data center boom.
Bloom Energy may well be the next beneficiary.
A Different Kind of Deal
With the demand proved out, Morgan Stanley analysts (MS) expect Bloom Energy to land a similar data center deal with a major tech company for 100 megawatts or more sometime next year.
That said, Constellation’s deal involves using power from the Three Mile Island nuclear power plant to offset Microsoft data center emissions. So unlike Constellation, Bloom is likely to receive a “time-to-power” premium on its deal because it will be directly supplying a major data center, per Morgan Stanley.
Getting In Early
Morgan Stanley has lifted its price target to $22 per share for the energy provider, around 50% upside from current prices. The stock has fallen over 28% YTD and 23% over the past 12 months.
If the bank’s analysts are correct, the stock could see significant gains if and when a deal materializes — and investors may want to take a second look at a stock that is trading low, with the potential to explode in the next year.
Are you bullish or bearish on Bloom Energy (BE) over the next 12 months? |
TOGETHER WITH THE INVESTMENT JOURNAL
Old wells leak methane, but one company grows rapidly by plugging them.
ON OUR RADAR
CNN: A UK ad for $35 Nike kids' sneakers was banned for misleadingly marketing them to adults as a discount, lacking clarity on the target audience.
Axios: The last full-size Kmart in the continental U.S. will close in October, leaving only a small store in Miami and a few locations in Guam and the U.S. Virgin Islands.
BI: DoorDash is shifting from gig contractors to hourly employees with benefits by partnering with two companies focused on a career-oriented work model.
CNN: Gold has surged 30% this year, hitting a new high of $2,687.30, driven by central bank demand and investor concerns over U.S. economic uncertainty.
Axios: Starting October 1, SNAP recipients will see a slight increase in maximum benefits to help offset high grocery prices.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish
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