📈 Palantir's AI Revenue Boom

Good morning.

⚡ The Fast Five → Boeing strike ends, Nintendo profit plunges, Saudi Aramco slips, Vitamin Shoppe seeks bankruptcy, Palantir shares surge

🔎 Market Trends → US Stocks Close Lower Ahead of Election and Fed Decision; Futures calm as Wall Street braces for U.S. election day

 🇺🇸 Special Message from the Bull → Your vote today is the loudest voice you have in shaping the future of markets and freedoms. Make it count!

And now…

⏱️ Your 5-minute briefing for Tuesday, November 5, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Election Jitters and Fed Decision Loom, Pressuring Markets

U.S. stocks slid Monday, with the Dow dropping 0.6% to 41,794.6 and the S&P 500 and Nasdaq down 0.3% each, as investors brace for Tuesday’s presidential election and an anticipated Fed rate cut.

The Big Picture:

With Vice President Kamala Harris facing off against former President Donald Trump in today's election, markets are grappling with uncertainty on multiple fronts. On top of the political spotlight, the Fed is set to convene midweek, with expectations of a 25-basis-point rate cut. Investors are eyeing this mix of political and economic shifts, especially as the Fed may be pressured by post-election policies that impact fiscal outlooks and central bank independence.

Oil and Commodities:

WTI crude surged 3.2% to $71.68 per barrel after OPEC+ delayed an expected production hike, signaling tighter supply in the near term. Meanwhile, gold dipped 0.2% to $2,745.20 per ounce, while silver eased 0.3% to $32.59 per ounce.

Market Movers:

• Constellation Energy (CEG): Dropped 12.5% after Mizuho cut its price target, citing a cautious outlook following Constellation’s Q3 earnings.

• Intel (INTC): Fell 2.9%, impacted by Nvidia (NVDA) replacing it in the Dow starting Nov. 8. Intel’s removal could reflect a broader shift in tech dominance.

• Freshpet (FRPT): Jumped 13% as it raised its annual sales forecast, driven by robust Q3 growth and strong pet food demand.

What They’re Saying:

“If Trump wins, questions may arise around tariffs, fiscal policy, and Fed independence,” noted Macquarie in a client memo.

WHAT WE’RE WATCHING
Events

• Today: US Election Day

• Why You Should Care: Election Day matters because policy changes from elected leaders can significantly impact market regulations, taxation, and economic growth, directly affecting investment opportunities and economic freedoms.

• Today: Institute for Supply Management - Purchasing Managers’ Index, 8:30AM

• Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Earnings Reports

• Today: Ferrari, Apollo Global Management, Thomson Reuters, Emerson Electric, Marathon Petroleum

• Tomorrow: Novo Nordisk, Toyota, Qualcomm, CVS Health, McKesson

MARKET BRIEF
Leading News

Palantir's Earnings: AI Hype Meets Real Gains

Why it matters:

Palantir (PLTR) is cashing in on the AI wave, and the company’s latest earnings hint that it’s more than just hype — it’s a pivot to profitability..

The big picture:

Palantir’s Q3 earnings report shows the software company is finding its stride in a crowded AI market. With revenue climbing 18% year-over-year to $628 million, the company is delivering on promises of growth, particularly through government contracts. This quarter marks five consecutive quarters of profitability, an impressive streak for a firm that's heavily invested in emerging tech.

For investors, this is a potential opportunity. Palantir has proven it can secure lucrative government contracts — a steady revenue stream — while also expanding into the private sector. Their edge? A focus on AI-driven data solutions that resonate with enterprise clients seeking advanced analytics.

But let’s be real: competition is fierce, with giants like Microsoft (MSFT) and Google (GOOGL) also vying for a piece of the AI pie. Still, Palantir’s deep government ties could be its winning ticket, especially as demand for secure, scalable AI solutions accelerates.

Go deeper:

• Revenue growth: Up 18% YoY, with major gains in U.S. commercial contracts, pointing to demand outside of government sectors. Palantir’s government contracts make up 57% of total revenue, highlighting a reliable income stream while diversifying into commercial ventures.

• Profitability streak: Five quarters of GAAP profitability signal operational maturity and cost discipline. Palantir has tightened spending, focusing on high-value clients and targeted AI solutions that resonate in today’s data-driven economy.

• Stock buyback: Palantir announced a $1 billion buyback, which boosts shareholder value and signals management’s confidence in long-term growth.

What they're saying:

"We’re at the beginning of a very long ramp in demand for what our technology can do,” CEO Alex Karp said, suggesting that Palantir is strategically positioned for the AI boom.

The bottom line:

Palantir’s steady revenue, rising profits, and growing buybacks make it a compelling play for investors eyeing the AI sector. Yes, there’s risk as competition heats up, but Palantir’s government-first strategy sets it apart.

Headlines

• Your ‘I voted’ sticker gets you Election Day deals across the US (link)

• Boeing strike ends after labor union accepts contract offer, announces return to work (link)

• Nintendo profit plunges 69% as it cuts forecast for sales of ageing Switch console (link)

• Saudi Aramco Profit Falls on Refining Weakness (link)

• "Double That Of Past Election Cycles": Marriott Says Election Weighing On Hotel Demand (link)

• B. Riley-backed Vitamin Shoppe owner files for bankruptcy protection (link)

• Physical Intelligence Raises $400 Million to Develop Robot Software (link)

CRYPTO
Fear & Greed

Headlines

• Long Bitcoin Short Solana Preferred Tactical Trade Heading Into U.S. Election: 10X Research (link)

• Spot bitcoin ETFs see $541 million in outflows, largest daily negative flow since May (link)

• Binance lawyers seek to dismiss SEC’s amended securities complaint in new filing (link)

DAILY SHARE
On the Socials