Miso | April 10th, 2024

Today's insights are courtesy of Miso Robotics. Join the cutting edge of AI by investing in Miso Robotics.

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GOOD MORNING

Here's everything you need to know today: Costco's venture into gold bar sales has turned into a lucrative draw amid high inflation, striking gold with sales potentially hitting up to $200 million a month. Trump’s billionaire status is on a slippery slope as Trump Media shares take a dive, leading to his exit from the Bloomberg Billionaires Index.

Intel steps up the competition in the AI chip market with the launch of Gaudi 3, aiming to challenge Nvidia's dominance. Lastly, Lucid Motors surprises the market with record EV deliveries, showcasing its resilience and strategic maneuvering in the competitive EV sector.

Let’s dive into more detail below.

GOLD

Costco Strikes Gold with Bar Sales

Amid high inflation, Costco's gold bars become a lucrative draw, boosting member exclusivity and sales

BREAKING NEWS
Costco's foray into gold sales has struck gold, metaphorically speaking, transforming what began as a novel product offering into a burgeoning revenue stream.

With sales potentially hitting up to $200 million a month, as per Wells Fargo analysts, Costco's venture into selling 24-karat gold bars has outpaced initial expectations and caught the eye of both investors and consumers alike.

WHAT HAPPENED
Late in the summer of 2023, Costco introduced 1-ounce, nearly pure 24-karat gold bars to its inventory, yielding significant financial returns. Initially generating about $100 million in sales during its fiscal first quarter, the big-box retailer's gold sales have seen a dramatic uptick, now estimated to be between $100 million to $200 million monthly.

This success is attributed to Costco's aggressive pricing, coupled with a high degree of customer trust in the retailer. Analyst Edward Kelly from Wells Fargo notes the "significant interest" sparked among consumers, evidenced by rapid online sell-outs and a noticeable increase in Costco's monthly e-commerce sales. These gold bars are pegged slightly above the spot market price, offering an attractive proposition for shoppers amid rising gold prices and economic uncertainties.

While the price is not disclosed online to nonmembers, it is estimated that the product generally sells for about 2% above the spot price, which was around $2,357 an ounce as of Tuesday morning. That would put the price at Costco at just more than $2,400.

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TRUMP

Trump's Billionaire Status Slips

A steep drop in Trump Media shares erases Donald Trump from the Bloomberg Billionaires Index

BREAKING NEWS
After the launch of $DJT, which made headlines worldwide, former President Donald Trump was removed from the Bloomberg Billionaires Index. This development is due to a sharp fall in the stock value of Trump Media, the parent company of Truth Social, Trump's social media platform.

The shares have dropped over 50% from their peak in late March, significantly diminishing Trump's wealth and leading to his exit from the prestigious list of the world's 500 wealthiest individuals.

WHAT HAPPENED
Trump Media's journey on the stock market has been nothing short of a rollercoaster which, for the last week, has been nothing but down.

After a high-flying debut that saw its valuation nearly touching $8 billion, the company witnessed a stark decline, with shares dropping 12% on Friday, 8% on Monday, and an additional 2% by late Tuesday morning, bottoming at $36.35. This downturn marks the lowest trading day since the company went public through a merger with Digital World Acquisition Corp., adopting the ticker DJT.

This downward trajectory has erased billions from Trump Media's market capitalization, now hovering around $5 billion, a steep fall from its post-debut highs. Amidst this turmoil, Donald Trump's net worth has similarly seen dramatic fluctuations, given his 60% stake in Trump Media. This is after two brothers, Michael, and Gerald Shvartsman, pled guilty to insider trading charges related to the merger of Donald Trump's media company, Trump Media & Technology Group (TMTG), with the blank-check company Digital World Acquisition Corp (DWAC) that took TMTG public.

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AI

Intel Heats Up the AI Arms Race

Intel and Nvidia's rivalry escalates with the launch of Gaudi 3, aiming to redefine AI technology benchmarks

BREAKING NEWS
Intel Corp. has announced the rollout of its latest artificial intelligence chip, Gaudi 3, setting the stage for a significant showdown with Nvidia Corp., a current leader in the AI semiconductor arena.

The Gaudi 3 processor, slated for widespread release in the third quarter, promises enhanced performance in AI system training and software operation, signaling Intel's renewed commitment to capturing a larger share of the burgeoning AI chip market.

This move comes amid a surge in demand for AI services, with Intel's shares witnessing a 1.4% increase amidst market anticipation.

WHAT HAPPENED
During an early Tuesday company event, Intel unveiled Gaudi 3, an update designed to significantly improve its predecessors' market performance. Intel's CEO, Pat Gelsinger, expressed optimism that Gaudi 3 would mark a turning point in Intel's AI strategy, particularly in challenging Nvidia's dominance. Nvidia has recently seen a dramatic rise in its fortunes, thanks to its H100 accelerator chip doubling its revenue and propelling its market valuation past $2 trillion. However, Intel is positioning Gaudi 3 as a formidable competitor, boasting superior speed and energy efficiency compared to Nvidia's H100 and aiming to match the performance of Nvidia's latest H200 model.

The development highlights a fiercely competitive landscape, with Intel targeting gains against Nvidia and bracing for a broader expansion of AI technology beyond data centers to consumer devices. Intel's strategic pivot reflects a broader industry trend, emphasizing AI's increasing ubiquity across various technology sectors. This aggressive push into AI chips by Intel and others underscores the market's rapid evolution, driven by escalating demand for more sophisticated AI capabilities across a wide array of applications.

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EVs

Lucid Defies Odds with Record EV Deliveries

Lucid Motors outshines Tesla with increased EV deliveries, showcasing resilience and strategic

BREAKING NEWS
Lucid Motors has surprised market expectations by reaching a new pinnacle in electric vehicle (EV) deliveries for the first quarter of 2024 despite facing a production downtrend and operating losses reaching $752.9 million, up from $687.5 million a year earlier.

The juxtaposition of decreased production with heightened delivery numbers has sparked discussions on Lucid's strategic maneuvering in the competitive EV sector, particularly following recent price adjustments.

Lucid's stock price is currently trading around $2.73, down from a 52-week high of $8.87.

WHAT HAPPENED
Lucid announced a delivery of 1,967 EVs in Q1 2024, marking a notable rise from the previous quarter's 1,734 units and surpassing the previous high of 1,932 in Q4 2022. This increase of over 13% comes amidst a 27% production drop from the last quarter of 2023. The company has adjusted its production targets, aiming to construct 9,000 vehicles for the year, a slight increment from the 8,428 manufactured in 2023.

After revising its 2023 forecast, Lucid achieved its updated production goal, reflecting a strategic calibration in response to market conditions. In a broader context, the EV maker's deliveries surged after it slashed prices, a move paralleled by its competitor Rivian.

CEO Peter Rawlinson has hinted at future expansions with a midsize EV to rival Tesla's popular models. At the same time, the company prepares to introduce its first electric SUV, the Gravity, bolstered by significant financial backing from Saudi Arabia's PIF.

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1. Dow Edges Lower as Wall Street Awaits Inflation Data

The Dow Jones Industrial Average closed slightly lower, reflecting investor caution ahead of a crucial U.S. inflation report, with the index dipping a mere 0.02%.

2. Mixed Tech Performance Amid Nvidia Drop

The technology sector showed mixed results, as Nvidia's shares fell by 2%, contributing to varied performance among major tech companies, including slight declines in Meta and Netflix.

3. Anticipation for CPI Report Influences Market Sentiment

With the consumer price index report on the horizon, investors are keenly waiting for inflation insights that could signal the Federal Reserve's direction on interest rates.

4. Seasonal Tax Selling Pressures Market

As Tax Day approaches, the market faces selling pressure, attributed to investors liquidating assets to meet tax obligations, contributing to the day's cautious trading.

5. Energy Sector Draws Interest from Bill Gross

Notable investor Bill Gross highlights master limited partnerships in the energy sector as attractive investments amidst rising oil prices, suggesting they offer better returns than AI stocks.

6. Market Wary of Overextended Rally

Experts suggest Tuesday's pullback reflects market concerns that the recent rally might have progressed too quickly, with a focus on Nvidia's fluctuating performance as a case in point.

7. Fresh Highs for Select S&P 500 Stocks

Several S&P 500 companies, including Alphabet and Freeport-McMoRan, reached new highs, indicating selective market strength amidst broader uncertainty.

8. Hedge Funds Increase Bearish Bets

Amidst a slight market downturn, hedge funds have ramped up selling and bearish wagers, marking the most significant pace of sales since mid-January.

9. Manufacturing Sector Faces Continued Challenges

Despite signs of economic resilience, the manufacturing sector remains vulnerable to high interest rates and inflation, potentially delaying its recovery.

10. Major Movers Include Boeing and Norfolk Southern

Boeing faces regulatory scrutiny, impacting its shares, while Norfolk Southern benefits from a settlement announcement, highlighting the day's significant stock movements.

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Today's insights are courtesy of Miso Robotics. Miso Robotics in transforming the restaurant industry. As creators of Flippy, the AI-powered robot that revolutionized the fry station, we leverage our robotics expertise and proprietary data to transform fast food kitchens.

Learn More About Miso Robotics ➔

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