Charlie Kirk Assassinated

Conservative influencer, Charlie Kirk, shot dead in a 'political assassination.'

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🎯 In this issue:

  • Banana Bits: Finance headlines that actually matter

  • What’s Ripe / Rotten: The tastiest and most disgusting stocks today

  • Banana Bits: Finance headlines that actually matter

  • Market Summary: The market clawed its way to a positive gain

  • What’s Ripe / Rotten: The tastiest and most disgusting stocks 

  • Technical Trip: Interview Q&A from BlackRock

Market Snapshot

📉 Banana Bits

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Market Recap

A Narrative for the Next Bullrun

Everything feels like 2023 again when Nvidia was on its run, and we’re on the narrative of the Fed's first rate cut. This year, we might get that again. Except this time, it's Oracle in the spotlight. 

ORCL soared 40% in early Wednesday trading after the company provided a massive revenue forecast, making it a $4.2 trillion entity and its founder, Ellison, the richest in the world 

Another narrative is today’s weaker-than-expected PPI result. The cost of wholesale goods and services slipped 0.1% in August compared to economists’ forecast of a 0.4% gain, putting the annual rate at 2.6% This again boosted the S&P 500 and Nasdaq to record highs. 

This adds to the number of reasons for a September rate cut. In fact, more than 10% of traders are now betting on a 50-basis-point rate cut, compared to 7% on Wednesday. 

Thursday’s consumer price index could make or break the streak in the bull run and a September Fed rate cut. Economists are expecting a 0.3% increase compared to August, making it 3.1% YOY, well above the Fed’s 2% target.

What's Ripe

Vimeo Inc. (VMEO) 60.9%

  • VMEO soared 60.91% after the news that it had made a definitive agreement to be acquired by Bending Spoons for $1.38 billion.

  • Vimeo shareholders will receive $7.85 per share in cash for each share of Vimeo capital stock that they own, representing a 91% premium.

Oracle Corp. (ORCL) 36.0%

  • ORCL soared 36.04% in Wednesday trading after the company gave an aggressive outlook for its cloud business, making its biggest intraday jump since 1992. 

  • It expects cloud infrastructure revenue of $32B, $73B, $114B, $114B, for the next four years.

  • The company’s remaining performance obligations reached $455B, more than 4 times the amount in the same period a year earlier.

What's Rotten

Synopsys Inc. (SNPS) 35.8%

  • Shares of Synopsys Inc. plunged 35.84% as the company warned that U.S. export restrictions are contributing to a slowdown in China, the largest market for semiconductors.

  • Predicted EPS is $2.76 to $2.80, well below analysts’ target of $4.50.

Chewy Inc. (CHWY) 16.6%

  • CHWY declined -16.60% despite the company beating sales of $3.10B up 8.6% YOY with an EPS of $0.33, which is in line with analyst estimates.

  • The sharp decline suggests that investors expect a spectacular performance rather than just slightly beating estimates.

🧠 Technical Trip

Q&A Interview with BlackRock

👉 Want 1-on-1 recruiting help from BlackRock bankers & 2,000+ top mentors? Apply to WSO Academy

🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

Banana Brain Teaser

Previous

If money is invested at r% interest, compounded annually, the amount of the investment will double in approximately 70/r years. If Pat’s parents invested $5,000 in a long-term bond that pays 8% interest, compounded annually, what will the approximate total amount of the investment be 18 years later, when Pat is ready for college?

Answer: $20,000

Today

It would take 1 machine 4 hours to complete a large production order, and another machine 3 hours to complete the same order. How many hours would it take both machines, working simultaneously at their respective constant rates, to complete the order?

A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.

Burton Malkiel

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Happy Investing,
Chris, Vyom, Ankit, Mitchell, Colin & Patrick