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This week, we bring you
Table of Contents
China’s DeepSeek Disrupts AI Economics
Chinese AI firm DeepSeek has created a top-tier AI model for just $6 million and 2,000 chips. Their R1 model ranked second in quality behind only OpenAI’s latest offering, despite using older hardware.
The breakthrough sent shockwaves through the tech sector, with the Nasdaq falling 3.3% as investors questioned the sustainability of massive AI infrastructure investments.
A $700k Gold Bar Scam
A glittering new scam is sweeping across the United States, leaving victims out of pocket by the hundreds of thousands. It all begins with a convincing phone call from someone posing as a government official—think FTC or Treasury Department. They claim your bank account has been compromised and present an alluring fix: purchase gold bars and hand them over to secure your funds.
OpenAI Launches ChatGPT Gov
OpenAI has found its way into government contracts with ChatGPT Gov, a specialized version designed to address security and privacy concerns for federal agencies.
The company is partnering with Microsoft Azure to allow government agencies to run the technology on their own infrastructure. The push into government contracts follows OpenAI’s recent “AI in America” policy blueprint.
SES AI Strikes Big Automotive Deal
SES AI has secured a groundbreaking $10 million in contracts with major automotive companies to revolutionize battery development through artificial intelligence.
SES aims to use AI to develop new electrolytes for both lithium-metal and lithium-ion batteries. The company, which previously partnered with Nvidia, is now backed by GM and Honda.
Women Set to Control Wealth Transfer
A seismic shift is occurring in wealth management as baby boomer women are poised to control $40 trillion in the largest wealth transfer in modern history.
Female wealth has grown a staggering 80% since 2018. The impact is already visible, with women over 60 currently overseeing $8 trillion in liquid assets and 85% of affluent household financial decisions now influenced by women.
Microsoft Eyes TikTok Again
History appears to be repeating itself as Microsoft emerges as a potential buyer for TikTok, with President Trump confirming the tech giant’s interest.
The talks come as TikTok faces a looming deadline following recent U.S. legislation based on national security concerns. Unlike the failed 2020 attempt, Microsoft might join forces with Oracle and other investors to take control of TikTok’s global operations.
Nvidia’s Plunge Doesn’t Scare Traders
Despite Nvidia’s historic 17% single-day drop triggered by concerns over Chinese AI competition, options traders remained remarkably bullish.
The stock’s massive $593 billion market value loss on Monday – the largest one-day decline for any company – was met with aggressive dip-buying on Tuesday. Overall options volume surged to twice the usual pace.
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
Dedicated coverage for the must-know stories, with emphasis on the private market.
Your one-stop shop for all things crypto.
An easy, fast, and simple-to-read breakdown of complex financial topics for the financially curious investor.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
ClearPoint Neuro (CLPT)
Bullish Case
- Unique Market Position: ClearPoint Neuro is the only company positioned to capitalize on a multi-billion dollar neuro therapy opportunity.
- Expansion and Scalability: The company’s expansion into the operating room accelerates adoption and scalability.
- Product and Partner Synergies: A shift in product mix is expected to expand gross margins by over 500 basis points.
Bearish Case
- Market Adoption Risks: Despite its unique position, ClearPoint Neuro faces challenges in achieving widespread market adoption.
- Scalability Challenges: While expansion into the operating room is promising, execution risks in scaling operations could hinder expected financial benefits.
CBL & Associates Properties (CBL)
Bullish Case
- Strategic Debt Reduction: CBL has significantly reduced its leverage since emerging from bankruptcy, enhancing financial stability and shareholder value.
- Attractive Valuation: Trading at a discount to fair value, CBL’s shares are valued at $40-45 compared to the current price of $28.
- Strong Cash Flow and Asset Management: CBL’s portfolio generates robust cash flow, and ongoing property sales optimize returns.
Bearish Case
- Retail Sector Challenges: The traditional mall business faces ongoing challenges from ecommerce growth and changing consumer preferences.
- Property Quality Variability: CBL’s portfolio includes lower-quality properties in tertiary markets.
NCS Multistage Holdings (NCSM)
Bullish Case
- Strong Financial Position: NCSM is trading below its net tangible assets, with a market cap of $77 million against a net tangible asset value of $91 million.
- Positive Earnings Momentum: The company reported $4.1 million in net income last quarter, showing a significant improvement from previous quarters.
- Strategic Industry Position: 65% of NCSM’s revenue is well-positioned to benefit from increased domestic energy production initiatives.
Bearish Case
- Recent Operational and Legal Issues: The company faced significant operational troubles and legal settlements in 2023.
- Dependency on Fracking: A substantial portion of revenue comes from fracking-related services, which could be vulnerable to regulatory changes.
Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- Nothing above is financial advice. DYOR, you filthy animal.