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Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week, we bring you
- Amazon’s Drones Cleared for Long Flights
- Swiss Startup Launches Brain Cell Bioprocessor
- Gen Z Turns to Social Media Over Google
- OJ Prices Soar as Harvests Wither
- ElevenLabs Debuts AI Sound Effects
- Non-Alcoholic Beer Sales Surge
- 3 Stocks To Consider
Thanks for reading.
Wyatt
Table of Contents
Amazon’s Drones Cleared for Long Flights
The FAA has given Amazon the green light to expand its drone delivery service, Prime Air, allowing for longer-distance deliveries beyond the operator’s line of sight.
This approval comes as Amazon aims to deliver over 500 million parcels to Prime customers by 2030, giving it a competitive edge in the fast-growing drone delivery market. With rivals like Walmart and Google’s Wing also making strides in drone delivery, the race to dominate the skies is heating up.
Swiss Startup Launches Brain Cell Bioprocessor
FinalSpark, a Swiss biocomputing startup, has launched Neuroplatform, the world’s first online platform providing remote access to 16 human brain organoids that function as bioprocessors.
The company claims these bioprocessors consume a million times less power than traditional digital processors, potentially reducing computing’s environmental impact.
While still in its early stages, FinalSpark has already granted access to nine institutions to spur research and development in this cutting-edge field.
Gen Z Turns to Social Media Over Google
A recent study by Forbes Advisor found that while Google Search still dominates for finding local services, younger audiences are increasingly turning to social media platforms like TikTok and Instagram for gift ideas, beauty tips, and wellness content.
As AI-powered search features emerge on both Google and social apps, marketers should take note of these platform-specific search trends to better target their desired audiences.
OJ Prices Soar as Harvests Wither
Orange juice prices are hitting record highs as a series of poor harvests strain the existing supply of frozen juice futures.
Brazil, the world’s largest producer, has seen a 24% decline in output due to heatwaves, while Florida’s citrus industry continues to grapple with disease, hurricanes, and urban development.
As consumer demand remains strong, farmers are exploring alternative fruits to supplement the dwindling orange supply.
ElevenLabs Debuts AI Sound Effects
ElevenLabs has launched Text to Sound Effects, a groundbreaking tool that allows users to generate sound effects, short instrumental tracks, and immersive soundscapes from simple text prompts.
Developed in partnership with Shutterstock, this AI-powered platform aims to revolutionize audio production for creators across various industries, offering a quick, affordable, and scalable solution.
By leveraging Shutterstock’s extensive library, ElevenLabs has created a tool that empowers modern creators to bring their projects to life with rich, realistic sounds.
Non-Alcoholic Beer Sales Surge
Non-alcoholic beer is experiencing a remarkable surge in popularity, with sales growing at a rate 12 times faster than traditional alcoholic beer.
Major brewers like Heineken and Anheuser-Busch InBev are investing heavily in this rapidly expanding market segment.
The trend is driven by health-conscious consumers seeking alternatives to regular beer without sacrificing taste or social experiences.
Read more about the non-alcoholic beer boom.
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:
Visual insights into business, tech, entertainment, and society.
5-minute reports on AI, Crypto, and more for those looking to start their own business.
Aussie-focussed market news that gives a solid non-US perspective on global finance.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
H&E Equipment Services ($HEES)
Bull Case:
- Industry Consolidation Advantage: As a top 4 player in an industry with 40% market share among the leaders, HEES benefits from scale and pricing power.
- Growth Opportunities: HEES has a proven ability to expand through acquisitions and organic growth.
- Infrastructure Spending Tailwinds: The IIJA and IRA represent significant investments that should drive demand.
Bear Case:
- Valuation Discount to Peers: Despite attractive prospects, HEES trades at a substantial discount to larger peers.
- Economic Uncertainty: As a cyclical business, HEES may face challenges if economic conditions deteriorate.
Enerpac Tool Group Corp ($EPAC)
Bull Case:
- Strong Competitive Position: Enerpac has #1 market share in key products, allowing premium pricing and 25%+ mid-cycle ROIC.
- Margin Expansion Potential: New CEO implementing 80/20 program, expanding EBITDA margins from 14% to 25% with potential for 27-28%.
- Attractive Growth Opportunities: Targeting 7% annual organic growth driven by infrastructure spending, APAC expansion, new products, and e-commerce.
Bear Case:
- Cyclical End Market Exposure: Some end markets are cyclical with potential volume declines in recession.
- Electrification Uncertainties: The pace of hydraulic tool electrification is uncertain with potential new battery-focused competitors.
Synchronoss ($SNCR)
Bull Case:
- Cost Savings and Financial Performance: SNCR completed cost removals resulting in $15 million annual savings.
- Attractive Valuation and Upside Potential: Despite strong margins and recurring revenues, SNCR trades at a low 5.5x EV/EBITDA multiple, with a potential 200% upside.
- Board Involvement and Value Creation: The author’s board involvement aims to enhance SNCR’s return profile through specific actions as a pure-play cloud business in 2024.
Bear Case:
- Stock Price Volatility: SNCR’s stock doubled to $14 after the cost savings announcement but quickly retraced, indicating market skepticism.
- Execution Risks: SNCR faces execution risks in realizing value-creation opportunities.
That’s it for this week.
If you write amazing content and want to be featured, please send it through for consideration.
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.
