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- Mammoth | May 29th, 2024
Mammoth | May 29th, 2024
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Today’s insights are courtesy of Mammoth Interactive. Master Generative AI, Prompt Engineering, and Python with Mammoth Interactive's Ultimate Coding Bundle
| Market | Day | Month | Year |
|---|---|---|---|
| Dow | ▼0.55% | ▲2.06% | ▲18.02% |
| S&P | ▲0.02% | ▲3.73% | ▲25.50% |
| Nasdaq | ▲0.59% | ▲5.71% | ▲29.08% |
| Bitcoin | ▲1.31% | ▲9.92% | ▲150.02% |
| 10-Year | ▼0.56% | ▲1.29% | ▼4.46% |
GOOD MORNING
Here's everything you need to know today: Cathie Wood's ARK Invest recently missed out on an $800 million profit after selling Nvidia shares at a loss late last year. Despite Nvidia's skyrocketing stock, Wood's decision to sell highlights the challenges of timing the volatile tech market.
T-Mobile has announced its acquisition of U.S. Cellular for $4.4 billion, adding over 4 million new customers and enhancing its network capacity, particularly in underserved rural areas. This move strengthens T-Mobile's position in the competitive wireless market.
GameStop is back in the spotlight as it raises $933 million from a stock sale, with shares surging over 30% amid renewed meme stock mania. This financial boost positions GameStop for future growth in the gaming market.
Let’s dive into more detail below.
ARK
Cathie Wood's ARK Invest Misses Out on $800 Million Profit After Selling Nvidia Shares at Loss in Late 2023
Cathie Wood's cautious approach to Nvidia underscores the complexities of timing in volatile tech markets, proving even the professionals get left behind sometimes
BREAKING NEWS
Even famed investors like Cathie Wood make mistakes. Renowned for her bold, forward-looking investment strategies at ARK Invest with Bitcoin, Tesla, and AI, it's got to hurt seeing Nvidia stock skyrocket lately after she sold Nvidia shares for a significant loss in November 2023.
Wood's decision to sell Nvidia at its lowest point in November 2023 resulted in a massive missed opportunity as Nvidia's stock has since soared to $1,141.11, an 184.70% increase over the past year.
As they say, you can't win them all.
WHAT HAPPENED
Cathie Wood's ARK Invest held 800,000 shares of Nvidia ($NVDA) before selling them at a significant loss in November 2023. The most notable sale occurred on November 9, 2022, when Nvidia traded at $137. Wood had purchased these shares on August 8, 2022, at $182 per share. This decision to sell at the stock's bottom came under scrutiny as Nvidia's stock has since surged to $1,141.11, representing a 184.70% increase in the past year.
Wood said the group redeployed its capital from Nvidia into Coinbase and other software companies across its range of ETFs, including the flagship ARK Innovation ETF (ARKK).
On Tuesday, Wood said it would take a "significant price correction" for her to reinvest in Nvidia. At ETF Stream's ETF Ecosystem Unwrapped 2024 event, Wood emphasized Nvidia's cyclical nature and potential for a significant price reduction due to inventory build-up. Despite Nvidia's recent impressive performance, Wood's cautious outlook reflects her strategic pivot towards other tech investments, such as Coinbase and various software companies within ARK's ETFs. As Nvidia's share price continues to climb, it will be crucial to monitor market dynamics and ARK Invest's evolving investment approach.
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M&A
T-Mobile Acquires U.S. Cellular for $4.4 Billion, Adding Over 4 Million New Customers
This $4.4 billion deal enhances T-Mobile’s network capacity, particularly benefiting underserved rural areas with better 5G access
BREAKING NEWS
T-Mobile ranked third among the top five wireless telecommunications companies with 119.7 million subscribers and announced its acquisition of U.S. Cellular's wireless operations and certain spectrum assets for $4.4 billion.
Approved by both companies' boards, this strategic purchase includes over 4 million new customers for T-Mobile and approximately 30% of U.S. Cellular's spectrum assets.
This deal is poised to enhance T-Mobile's network capacity and coverage, particularly benefiting underserved rural areas with improved 5G access.
WHAT HAPPENED
T-Mobile's acquisition of U.S. Cellular's wireless operations and select spectrum assets for $4.4 billion marks a significant expansion of the company's customer base and network capabilities. The deal, unanimously approved by the boards of both companies, will transfer over 4 million U.S. Cellular customers to T-Mobile, along with roughly 30% of U.S. Cellular's valuable spectrum assets. This strategic move is expected to bolster T-Mobile's network capacity and coverage, especially in underserved rural areas, where the company aims to improve 5G access and service quality.
The acquisition aligns with T-Mobile's ongoing efforts to strengthen its competitive position in the wireless telecommunications market. By acquiring U.S. Cellular's assets, T-Mobile gains many new subscribers, increasing its market share and revenue potential. Furthermore, adding U.S. Cellular's spectrum assets will enable T-Mobile to expand its network capacity and improve its 5G offerings, which have become increasingly crucial in the race for superior wireless services.
MEMESTOP
GameStop Secures $933 Million from Stock Sale as Shares Surge Over 30% With Renewed Meme Stock Mania
GameStop's recent stock sale generated significant cash reserves, positioning the company for future growth in the gaming market
BREAKING NEWS
Many thought Gamestop (GME) was dead in the water, but on Tuesday, GameStop shares surprised everyone by rising more than 30% following the announcement of a substantial stock sale.
The video game retailer revealed that it had raised approximately $933 million through selling 45 million common shares in an "at-the-market" offering, where shares are sold at the current market price.
This financial boost comes amid renewed interest in the stock, partly driven by social media activity reminiscent of the 2021 meme stock phenomenon.
WHAT HAPPENED
GameStop's shares experienced a remarkable surge of over 30% following the company's announcement of successfully raising approximately $933 million through an "at-the-market" offering of 45 million common shares. This strategic sale, which allows shares to be sold at the prevailing market price, significantly bolstered GameStop's cash reserves. The surge in interest can be attributed to the renewed attention garnered by the social media account Roaring Kitty, renowned for its instrumental role in the 2021 short squeeze that propelled GameStop's stock price to unprecedented levels.
This recent development mirrors instances where strategic stock sales have yielded substantial company benefits. Tesla, for example, has frequently employed stock offerings to fund its ambitious growth plans without compromising its share price in the long run. Similarly, AMC Entertainment successfully leveraged stock sales to raise capital during the pandemic, stabilizing its financial position and facilitating its path to recovery. GameStop's latest move aligns with this pattern, demonstrating a strategic approach to capitalizing on favorable market conditions and fortifying its financial standing. As investors closely monitor GameStop's performance, this strategic stock sale will likely positively impact the company's prospects and market valuation.
YESTERDAY | Here’s what you missed |
1. China Stocks Eye Gains; Traders Await CPI Reports
China-related equities were set for further gains on Tuesday, while other Asian stocks remained muted. Investors are looking forward to various global inflation reports that are expected to influence monetary policy decisions.
2. Grayscale’s Ethereum ETF could bleed $110M daily in first month
Grayscale’s upcoming Ethereum ETF launch might face significant outflows, potentially losing millions daily as its discount narrows. According to Kaiko, investors could exit rapidly in the initial month, affecting the ETF's performance.
3. Japan net external assets hit record high in 2023, remains world's top creditor
Japan's net external assets reached a record 471.3 trillion yen ($3 trillion) in 2023, marking the sixth consecutive year of growth. The increase was driven by a weak yen and overseas corporate acquisitions, maintaining Japan's position as the world's largest creditor.
4. OpenAI’s Sam Altman vows to give away most of his wealth through the Giving Pledge
OpenAI CEO Sam Altman and his husband have joined the Giving Pledge, committing to donate the majority of their wealth to philanthropic causes. This pledge aligns them with other billionaires who have promised to support various charitable efforts worldwide.
5. T-Mobile to acquire majority of US Cellular, further consolidating carrier market
T-Mobile has announced a $4.4 billion deal to acquire most of US Cellular. This acquisition aims to enhance T-Mobile's coverage in rural areas, further consolidating the carrier market and strengthening its competitive position.
6. Elon Musk Is Fighting With Meta’s Chief AI Scientist
A heated debate on AI risks unfolded over the weekend between Elon Musk and Yann LeCun, Meta’s Chief AI Scientist. The disagreement highlights the ongoing divide in the tech community regarding the future and safety of artificial intelligence.
7. J&J makes another I&I acquisition with $1.25B deal for Numab's Yellow Jersey
Johnson & Johnson is set to acquire Yellow Jersey Therapeutics, a subsidiary of Swiss biotech firm Numab Therapeutics, for $1.25 billion. This marks J&J’s second acquisition in the inflammation and immunology field within two weeks, emphasizing its expansion strategy.
8. Top FTX Executive Sentenced to Seven and a Half Years in Prison
Ryan Salame, the head of FTX’s Bahamian subsidiary, has been sentenced to seven and a half years in prison. He is the first among Sam Bankman-Fried’s deputies to receive a sentence following the collapse of the crypto exchange in November 2022.
9. PayPal Announces New Leaders to Build New Advertising Platform and Accelerate Consumer Product Innovation
PayPal Holdings, Inc. (NASDAQ: PYPL) has announced new leadership appointments aimed at developing a new advertising platform. The company plans to enhance its consumer value proposition and drive product innovation under the new leadership.
10. Donald Trump Says He'll Stop All Electric Car Sales
Former President Donald Trump has declared his intention to halt the sale of electric cars, stating, "You won't be able to sell those cars." This announcement comes amid his ongoing legal issues and could significantly impact the automotive industry if implemented.
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Today’s insights are courtesy of Mammoth Interactive. Master Generative AI, Prompt Engineering, and Python with Mammoth Interactive's Ultimate Coding Bundle
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