December Begins Red for Stocks: Here's What's Ahead

[snorts] Hello, welcome to Market Beat Monday everyone. I hope you had a

Monday everyone. I hope you had a wonderful Thanksgiving week. And now

it's back to reality and back to the market to see what's moving. Uh, as

always for Market Beat Monday, we have our analysts Chris Marcotch and Thomas Hughes with us. Thanks for joining us, guys. Uh, December not off to the

guys. Uh, December not off to the strongest start in the market. Not the

news we wanted to see, but maybe not all that unexpected, right, Thomas?

>> Uh, yeah, we had a weak opening today, but it was a small move lower. really

tep it. I would say [clears throat] market moved in a tight range. So really

to me that there's no change. This was

just a cautious opening ahead of this week's data. Um there's quite a bit of

week's data. Um there's quite a bit of catchup data coming out. Um so to me the uptrend is still intact. We're still

poised to set new highs. Um it's just a matter of what the trigger will be to get the market to move up there. And it

may just be as simple as the market creeping higher and hitting that new high. And once that happens, it could

high. And once that happens, it could trigger, you know, more money coming into the market. Um, and that, you know, fear of missing out, uh, trade comes into play.

>> Yeah, definitely some different moves.

Uh, a lot of red to start the the market or to start off December in the market.

I think one of the moves that is really interesting to look at. I want to start by talking about Broadcom because it was down so much today. Uh, but that's after a really big rise that it had. You're

looking at the chart here. It had jumped so much in the last week or two. really

the week of Thanksgiving. Uh Broadcom

had an [clears throat] amazing week and now today we're down just about uh what 4% today.

>> Yeah, I I think this is profit taking largely. I I I'm not seeing this as a as

largely. I I I'm not seeing this as a as necessarily a uh you know, something that's something that's indicating a problem with the overall trade. I mean,

again, it it hit that all-time high. I

think that's an all-time high uh last week or was it? Yeah, last at the end of last week. And I think it's just pulling

last week. And I think it's just pulling back. It's it's just profit taking right

back. It's it's just profit taking right now. And you know,

now. And you know, >> I think there I think there's still some of that going on in the whole AI trade in general right now. I'm not

necessarily sure if there's, you know, people are taking profits towards the end of the year and that's just what's happening.

Right? I mean, Broncom's up, you know, wickedly in the last six, seven months, you know, like more than 100%. So,

really, anytime the market moves higher, you're going to trigger somebody that's wants to sell and take profits, even if it's just for simple money management, you know, anytime that somebody's position hits 100%. They should they

should be selling some of some of their stake to, you know, get back some of their their initial investment. Um, but

ultimately, this market looks pretty strong. Like you said, last week was a

strong. Like you said, last week was a pretty strong week. Set a new high, broke this market out to a new high.

Looks like a continuation signal. Uh so

I would expect to see, you know, Broadcom continue to trend higher over time.

>> A good look at one of the the down stocks in the market today. So good to see everybody tuning in the chat. I love

to see some of the regulars that we have. Welcome back to Market Beat

have. Welcome back to Market Beat Monday. We love having you here all the

Monday. We love having you here all the time. A lot of really good names coming

time. A lot of really good names coming in. Before we get into some of the names

in. Before we get into some of the names that you guys have for us to look at today, I just wanted to make sure that everybody watching now is subscribed to the channel. If you haven't subscribed

the channel. If you haven't subscribed to Market Beat yet, it makes a big difference for us. If you can hit the subscribe button and like every video that you watch and and even leave us a comment just to let us know you're

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subscribe if you haven't done that yet.

All right, we're going to get to some of the names that you guys have. Nvidia is

one of them. I know I've got that chart ready to go. Uh let's talk about the big Nvidia purchase today just announced today.

>> Yes, synopsis. I think that that's a it's a good move. Uh for one thing, it answers the question, what is Nvidia going to do with all of its money, all the cash that it's been making. Uh this

$2 billion investment is is one good way for them to spend that money um investing in the future. So, with

Synopsis, they're going to be working on ex expanding um options and and revenue streams um across a broad array of sectors, really helping to cement Nvidia's future. So, I think that uh

Nvidia's future. So, I think that uh this really it's just it's a good move for the company.

>> Yeah, I'm going to pull up Synopsis again, just kind of recapping that news today. Nvidia announced a $2 billion

today. Nvidia announced a $2 billion investment in Synopsis. U do we know what Synopsis is exactly? Nvidia stock

got hit a little bit from that announcement today, but Synopsis of course getting a nice little boost today because of that announcement up almost 5%. Um, what is Synopsis?

5%. Um, what is Synopsis?

>> Yeah, it's like uh testing and engineering services for semiconductors and technology. So, uh, what this means

and technology. So, uh, what this means for Nvidia is just a way for it to um to to broaden and expand its exposure to different industries. So, it should be

different industries. So, it should be able to use this partnership to help develop more specific types of technologies that will help it uh generate more specific revenue streams

as the data center story starts to play itself out.

>> Good. Yeah. One thing Chris, I think you can talk about this. Charmin had a question about Nvidia and when Nvidia might actually start to see uh a boost in its dividend. I think that's a great question and something a lot of us have

talked about, a lot of investors have talked about. there's not much there for

talked about. there's not much there for dividend yield with Nvidia even though it's such a monster company.

>> Well, I get I guess the the the question that I would ask is I I'm not or I should say maybe not a question but a statement I would make because I'm not sure if investors really want to see um Nvidia get too aggressive with

increasing their dividend. I think I would prefer to see a company like Nvidia doing something like what they're doing now with their cash and that is making acquisitions like Synopsis because that is really signaling the

next stage of the company's growth. I

think when you start saying you're going to have a company like Nvidia simply increasing the size of its dividend then that's that's sort of indicating the opposite of what I think investors would

want at this stage. I think now can Nvidia increase their dividend some?

Maybe. But I wouldn't necessarily think Nvidia investors should get crazy about them increasing their dividend.

>> Right. I totally hear what you're saying, Chris. With this big tech

saying, Chris. With this big tech company, they definitely want to be spending their money to help secure their growth. I think that the cash flow

their growth. I think that the cash flow in this company has been so ridiculously good over the last few years. The cash

balance is growing so quickly every quarter that they could easily increase their dividend to a more substantial level. um and and and still continue to

level. um and and and still continue to invest in their future and still have tons of money left over. I mean, right now they're paying four cents a share.

Uh that's really it's a token amount really. It's not really what you would

really. It's not really what you would consider to be a dividend, but what it does do is allow all these funds and other managers and portfolios that are only allowed to invest in dividend

companies to buy Nvidia. So, it helps improve the ownership. Um, but I think even more significant than a dividend, which I I think would be coming, would be share buybacks. I mean, share buybacks are something that they could

do opportunistically um on a quarter-to- quarter basis or annually, and it would certainly help uh provide a lot of investor leverage over time.

>> Yeah, I mean, fair enough. I mean, like Apple has a dividend that they've been growing modestly over the over the course of a few years, and I I could see Nvidia tracking along that level, but Apple doesn't have a a dividend yield

that you would sit there and say, "Woohoo!"

"Woohoo!" >> Oh, right.

>> Apple is a technology company that happens to pay a dividend. I think

Nvidia is in that same category. So,

yes, I I think they can afford to to increase their dividend. I didn't mean to suggest otherwise, but I would >> but I wouldn't necessarily be suggesting that that's something that a lot of

investors should be, you know, getting that excited about. I'd be more excited about these deals with Synopsis.

>> Yeah. Very good. Well, speaking of dividends, I want to move on before we get to a couple names. The first thing we're going to cover, both TC and little John want to know about SoFi, so we'll cover that one first. Thanks, guys, for

always being here with us. Uh but before that, we want to talk about kind of a a dividend king. I I believe anyway, Walt

dividend king. I I believe anyway, Walt Disney making a little bit of news this weekend simply because of a kids movie, a super popular kids movie. Let's talk

about what this uh record-breaking release weekend at the movies did for Walt Disney stock.

>> Well, right. Um so record-breaking weekend, uh really fantastic news for the company. uh set numerous records

the company. uh set numerous records domestically and internationally which I mean really fantastic news because in the last quarter's report the entertainment segment was kind of weak.

We were looking towards this coming year as an opportunity for the company to to to rebuild some of that that that weakness and this you know it's a home

run. Uh so for me it really affirms the

run. Uh so for me it really affirms the outlook and it says that the the guidance for the year and also the analyst expectations for the year are probably too low. Um, now it's possible

that subsequent releases won't be met as well, but uh the slate of upcoming releases, I think, is pretty strong.

There's pretty good movies. There's

pretty good content on Disney streaming.

[snorts] Uh, so I think this is really just a good sign for the entertainment segment and for the company in general for the upcoming year.

>> Now, the real question, Thomas, you've got little kids, I've got little kids.

Did you go to the opening weekend for Zootopia? Uh, we didn't because we were

Zootopia? Uh, we didn't because we were busy traveling, but uh I I want to go check it out now more than ever.

>> I know. I think it's on my list, too, of movies to watch with the kids. Well, if

you're a Walmart stockholder, put it in the chat really quick. Are you happy to see a win for Walmart? It's been a little while. Or not Walmart, sorry,

little while. Or not Walmart, sorry, Walt Disney. Let me know in the comments

Walt Disney. Let me know in the comments if you're a Walt Disney fan and you've seen something. Goodness. All right,

seen something. Goodness. All right,

let's move on to the next one. Let's

talk about SoFi Technologies. What's

going on with this company?

>> Right. so far.

>> Well, it's it's been growing really strongly. Um, it's it's it's up 89%

strongly. Um, it's it's it's up 89% year-to date. And one of the interesting

year-to date. And one of the interesting things that is getting a lot of analysts excited about SoFi is the fact that it's done over 50% return in 2023. It did an

over 50% stock price return in 2024 and now it's on pace to do that for a third consecutive year. It's just it continues

consecutive year. It's just it continues to be one of the outsized um you know stocks in that their sector and you know the company's been hitting on all cylinders. It's one of those

companies, Bridget, that I've said for a long time, it's kind of one of those stocks, it's the stocks because it's one of those that it seems like every quarter they've they've overcome hurdles that people said they had to overcome in

order for the stock to move higher. And

for a long time, it didn't do that. And

seems like now in these last couple of years, investors have been rewarding the stock more, and it's it's starting you're starting to see a you're starting to see the stock move higher. In fact,

it's moved sharply higher just in the last gosh in the last 12 months.

>> Right. Everything that Chris said is true. It's just a company that's just is

true. It's just a company that's just is performing well.

>> It's proving that it business model works that the AI works. Um,

>> you know, expanding services, deepening penetration, really has um a lot of tailwinds going for it um going for it right now. And I think that's all

right now. And I think that's all playing out in the analyst sentiment as well. Let me check on that. that that's

well. Let me check on that. that that's

where this actually has a little bit of a sticking point. Right now, we've got the consensus price target up and we're trading above that consensus price target and there's a couple of recent downgrades. Um any concern there?

downgrades. Um any concern there?

>> All right.

>> I think you're seeing a lot of valuation concerns right now. I mean, it is trading at about 111 times forward earnings. Um

earnings. Um you know that >> right >> it could chop around at the level it's at right now. I see on the chart there's a little of a there's a little choppiness or not choppiness but there's

a little bit of a there's a little bit of a channel forming. I I don't know if Thomas would

forming. I I don't know if Thomas would agree with me there but looks like there's kind of a channel >> certainly. Um so with the analyst

>> certainly. Um so with the analyst sentiment there is one recent uh price target reduction but they reduced to 28 which is right along with the price

action is right now. Uh the stock is kind of um outpacing consensus but you got to look at the trends. Uh the trends include rapidly increasing coverage,

firming sentiment with some recent upgrades and the price target uh revisions have this let's see 10 like 150% increase over the last year. So

what we're seeing right now is the market just kind of consolidating waiting uh for those that price trend to kind of catch up with with where the market is. the way things are going, the

market is. the way things are going, the analysts are leading to the high end of the range and that puts this market um >> up in the $38 range because that most

recent reduction was to 38. So that's

still looking at a 14 134 upside from where we are right now, which is like a 50% stock price gain. Uh so again, the trends are bullish. Uh the market kind of got ahead of itself. We're in a

period of consolidation, but based on these analyst trends, I would expect this trend to continue moving higher.

>> All right, that's a good look at SoFi.

Let's move on to some others. We have a lot of different names coming in.

Michael, I missed you last week, so let's get to Michael. He wants to know about DLO. Let's look at that stock. One

about DLO. Let's look at that stock. One

of the comments on that is it's recently had an upgrade to $19 with a buy signal um from capital from Corsair Capital Management. So, we'll look at that one.

Management. So, we'll look at that one.

Um, and then I also want to look at AS.

It sounds like the stock is down quite a bit right now. It's a stock we've talked about plenty of times on the channel.

So, we'll talk about both of those and why might uh might have seen such a a big decline right now.

>> All right. So, I'm going to pull up DLO first.

>> Yeah, DLO is a payment processor.

>> Yeah.

>> Right. So certainly with e-commerce has a a good industry and a good position.

It seems like market sentiment is generally okay. I would say there's

generally okay. I would say there's probably a lot of um competition for this company. There's plenty of payment

this company. There's plenty of payment processors and fintexs out there trying to connect merchants and and consumers.

Um growing pretty strong though. I mean

it's had >> held a hyper growth pace for the last couple of years. 288 for the next one.

>> Yeah, >> still looking at a double digit growth pace for the next quarter.

Um it's profitable. I mean, all that, you know, was good.

The um chart is kind of iffy. You know,

we're moving in a range right now. It

looks like we're drifting up within that range. We might get another, you know,

range. We might get another, you know, surge higher, but it looks like there could be some pretty strong resistance in the $1750, $18 range.

CDL and the analysts are saying >> I mean it has a focus in a lot of you know it's not a US focused company and I think that's probably >> that's probably helping it out a little

bit in terms of why there's a lot of interest in it because it's doing a lot of the cross crossborder payment stuff in Mexico and Brazil and India South Africa and those so I think that's

probably Um that's probably one of the reasons why the stock's doing so well this year and quite frankly probably why it's got um why it's getting such positive an analyst sentiment.

>> Right. The analysts you they're pretty optimistic and institutional coverage is pretty high 90% but uh the price target

ranges are kind of weak. Um tops out at the $19 range. So upside is limited and it's kind of saying that um we'll stay within this range. What we'll need to

see is some catalyst to get the analysts to start lifting their targets outside the range to give the market any kind of a real hope uh for it to move outside the range without you know some other kind of a catalyst to push it.

>> Yeah.

>> And it's got like 90% institutional ownership too. So I think investors have

ownership too. So I think investors have to be careful with that because that means it's not going to I mean it it's it's good in one sense but it's also means that you're probably not going to

get that real volatile juice that you might like. And there was a lot of heavy

might like. And there was a lot of heavy institutional selling in this last quarter. But I mean, I I I I like the

quarter. But I mean, I I I I like the stock and or I like what the stock's doing. And I especially like the markets

doing. And I especially like the markets it's working in because that's that's that's an area where it might face a little less competition.

>> Yeah. Short interest isn't real high, but it's elevated, you know. So, just,

you know, a lot of things that are kind of saying this market's going to stay in this range for a little while. Um, we'll

need to see like some good news.

Invigorate analysts, invigorate institutional buying, give the shorts a reason to cover um to get this market out of its range. Otherwise, you're

you're risking just, you know, dead money moving sideways.

>> That was a good look at a different stock we haven't talked about before.

Thanks for that one, Michael. We're

going to go toss next, but I want to give um Chris, why don't you look up um another one uh we've had a couple of requests for NKT. So, Chris, you can

look up inkt. Thomas, let's talk about AS, >> right? Uh the quick look at the chart. I

>> right? Uh the quick look at the chart. I

mean, we're still in this consolidation, this pullback and correction that we talked about um last week and the week before last. It looks like the market

before last. It looks like the market has good support down where it is. It

may wallow at these levels. Uh the last earnings report was kind of weak. Um but

that's mostly because of you know the spottiness of the contracts and its ability to begin recognizing revenue as its you know network comes online. But

you know given the miss revenue still grew by 1,200%. Uh the next quarter is also expected to be very strong looking

at um you know almost a 200% sequential gain. So we are definitely in in the the

gain. So we are definitely in in the the period for this company where its revenue is going to start ramping and affirming this outlook and you know it may take another quarter or two to

really get the market impressed but I think that's coming. We should see this market begin to rebound simply because um how robust the outlook is. We're

looking at hyperrowth over the next couple years. Triple digits on an

couple years. Triple digits on an annualized basis. Um

annualized basis. Um and then analysts Yeah. Uh, Thomas, that's one thing I

Yeah. Uh, Thomas, that's one thing I wanted to talk about with this stock real quick is looking even though we're down almost 35% in a month, we're still

trading uh at $52, which is above that analyst forecast, and that's after it's down 35%. So, part of my question is why

down 35%. So, part of my question is why did it go up so quickly? Was it just excitement in the idea? Uh, was it really getting ahead of itself? uh even

the highest analyst forecast is $60 and it looks like the stock at one point got got above that.

>> Yeah, it is a market that got ahead of itself because it did have this rapidly swelling outlook. Um had lots of good

swelling outlook. Um had lots of good news. Uh so the market really was

news. Uh so the market really was pricing in a lot of forward growth that hasn't really happened yet, you know. So

right now the the price action has has retreated back to where the consensus level is more in line with the consensus. uh probably waiting for the

consensus. uh probably waiting for the upcoming earnings release or some news to affirm, you know, this growth outlook that's better than this past earnings release. Uh so there could be some some

release. Uh so there could be some some weakness, there could be some sideways move movement over the next couple of weeks, two to three months, but I would expect to see another positive catalyst emerge in the next earnings report or

the one right after that.

>> I think the big question before we move on is is it a buy at this range? So

looking at is it down far enough yet that it's a time to get in if you've not been in ons before or do you need to see more of a pullback before you're interested in in buying this dip?

>> Um it does look oh excuse me it does look like a pretty decent entry point.

Uh but there is some risk that will move below the 150WE moving average. Um in

that case this market could fall down to the $38 level. Uh so I would wait to see a clear indication of of support at the current levels and if you don't get one uh then be patient and wait for that

market to move lower down to that $38 level.

>> Yeah. And thank you for sharing whether it's a good time or not. That's one

thing I'm always looking at. If you've

been paying attention to the channel the last couple of weeks, I started Bridget's Buys. So every time we do a

Bridget's Buys. So every time we do a video, I'm going to pick one of the stocks that we talk about and add it to our list. Um if you haven't looked at it

our list. Um if you haven't looked at it yet, it's doing pretty well so far. our

purchase buys is up pretty well. Uh but

ASS is definitely a name that I would look at in that um because it's one that I like. I like the concept of it, but it

I like. I like the concept of it, but it is hard to know that it's uh it just got up so quickly. So, I hope you haven't been burned too badly on that one.

Here's a look at that that page and how it's doing so far. I've only added seven stocks to it so far. Um but up about three and a half% and in a down market today. That's not too bad, right guys?

today. That's not too bad, right guys?

Uh the first one was on Market Beat Monday a couple of weeks ago. we were

talking about Nebius Group. Um, and that one is up 16% from when we talked about it on November 17th. So, this is a fun way to track some of the stocks that we talk about on the channel. Again, if you

haven't looked at that page yet, you can scan the QR code. We'll put a link in the comments here in just a second, so you can click that, too, and check out Bridget Spy. All right, let's get on to

Bridget Spy. All right, let's get on to KT. This is a different one that we

KT. This is a different one that we haven't talked about before. At least I don't remember talking about this one before.

>> I don't remember talking about this one either. Um, so here we're getting into

either. Um, so here we're getting into that bio biotech uh sector again. Um,

this is Mink Therapeutics and again the ticker symbols INKT. Um, so this is a company that is not profitable yet,

generates no revenue. Um, it's been it's been making headlines this month. It had

a it had its earnings report um on November 14th. it um it showed a slight

November 14th. it um it showed a slight I guess you'd call it a little bit of a beat in terms of the fact that it lost less money than it was being forecast to lose but again there's no revenue coming

in. Um so let me just go quickly through

in. Um so let me just go quickly through this. Uh the company is again it's a

this. Uh the company is again it's a clinical stage company meaning it doesn't have any commercial products yet. um it is developing offtheshelf

yet. um it is developing offtheshelf uh inkt which stands for invariant natural killer tea cell therapies for

cancer and other autoimmune diseases. So

um what where the company's differentiating itself is from their the CARTT or NK cell therapies uh because

the in this sense the NKT cells come from healthy donors. Um

they have a their lead candidate is called agent T797 and it received some positive uh phase

one slash2 uh data um in I think it was just last week. So but the stock didn't seem to

week. So but the stock didn't seem to get that much of a bump from that news.

it seemed to like it sold off more sharply after the earnings than it did from the you know from this news. Um

boy I mean the story here's all the same Bridget with stocks like these um there's a lot of enthusiasm behind it. I

see the analysts really have a price target up there about 33% above where the current price is. It's all going to depend on can the stock can the you know

can the candidate make through the clinical trial stages. It's not in phase three trials yet. It's probably not going to go in phase three trials until the earliest would be probably beginning to middle of next year. And then you're

talking probably maybe even 2027 before it gets into the phase three. So you've

got a while to wait before this company is really going to be making revenue and more importantly profit. But

>> right, >> as is the case with a lot of these biotechnology companies, if you're willing to wait on it, um, and you believe in the technology behind it, I've only scratched the surface at the

due diligence that investors would have to do, but you know, that's that's what you're dealing with here.

>> Yeah, I think this one is just really interesting to see how much of a spike we saw so quickly in this stock, too. It

was up around 65, I think, uh, just about six months ago. now down around $11. The um analyst coverage is really

$11. The um analyst coverage is really interesting on this one. Thanks for

bringing this name up. Um it's that volatile biotech. I think it fits fits

volatile biotech. I think it fits fits the bill pretty well of a volatile >> before Yeah, before we jump off of that, Bridget, I again I'm just scratching the surface on this because we're just giving this kind of a cold look. I would

be curious if people are doing their due diligence on the stock. I'd be curious to see if and how they're using AI in terms of maybe developing their their

candidates and and identifying um ways of getting that that uh that candidate to commercialization. I don't know.

to commercialization. I don't know.

>> Yeah, >> but that's one of the fascinating applications for for AI. So maybe

>> Yeah, there's a couple other ones we want to go to here quick. We're going to talk about uh Joby and Archer. We had a couple people ask about Archer, so of course we'll talk about those together.

Um but first before we get there, I want to talk about just in general before we started, we were talking about healthc care being down quite a bit right now.

Uh what do we see? What are we seeing in healthcare and why would we be seeing a decline there?

>> I didn't see any uh specific healthcare news today.

>> My short answer would be it's the it's the whole thing of the expiring things.

the the whole reason behind the government shutdown and they still have to come up with a solution and they haven't done that yet. That would be my that would be my 50,000 foot view level because I can't understand why the

entire sector is red and that's what the heat map showing is the entire the entire sector is red.

My guess would be it's because that they haven't kind of come to a resolution on that.

>> Interesting.

>> We don't know we don't know how that's going to impact drug prices. we don't

know how it's going to affect this and that and you know >> all right very good look and then Charmin had a question about um the Fed rate cut and what we're watching um as far as when that when that announcement

could come and what the current kind of trend is on whether we think that's happening or not and how much it could be >> I know there was supposed to be there's always been talks of rumors of one more

coming in December I believe >> uh right so um over the last month, the market started to feel like there wasn't going to be a cut. Uh the some Fed hints

and some data pointed to no cuts, but then some of the catchup data that we've gotten from during the shutdown has kind of affirmed that uh you know the economy

is still okay. Labor markets might still be kind of weak and that kind of cleared the way for the Fed to actually do that cut in December. So those odds have kind of lifted back up to where they had been

before. Um the longer term outlook is

before. Um the longer term outlook is still a little bit um affected. We're

not [snorts] expecting quite as many cuts by June next year. Um but that could change. Also, we're looking for

could change. Also, we're looking for more data to come out over the next few weeks. Um not only catchup data, but

weeks. Um not only catchup data, but more current data. So, in in this light, it's possible that we could see, you know, economic health still being

present and inflation being tame um and and providing the Fed, you know, just some leeway where it could continue on with those rate cuts. Um, but that news is going to change a lot over the next few weeks and I think it'll be market

moving and it will certainly play into some some market volatility.

>> Now, specifically, the Fed meetings next week um if he's asking for that specific data. So, the announcement of the of

data. So, the announcement of the of whether or not there's going to be a cut or stay the same is going to be on December 10th. So, it'll be a week from

December 10th. So, it'll be a week from this Wednesday. Um, I just looked at the

this Wednesday. Um, I just looked at the CME Fed Watch tool, so they're still predicting right now an 87% chance of a

25 basis point cut. Um, you know, I I think Thomas, if I'm not mistaken, I think there's some other I think there's some economic data coming out this week

on that. Aren't they doing more like the

on that. Aren't they doing more like the revised CPI? Isn't that coming out later

revised CPI? Isn't that coming out later this week?

>> What what we're going to get on Friday is the September read on PCE.

>> Okay.

>> So, it's an important inflation read, but it's incredibly rearl looking. It's

way back from September.

>> Um, so what it'll do is it'll tell us if things were getting worse or better way back then.

>> Um, so that will have some impact on the outlook. It will certainly affect the

outlook. It will certainly affect the the rate cut outlook. Um, but I think it might not be enough data to really sway the Fetty the way just because of how rearlooking it is.

>> Yeah.

>> Good. Perfect. All right. Well, we're

going to go over Joby and Archer right now. We had another request for DVLT.

now. We had another request for DVLT.

And then, uh, Roaring Space Queen wants to know about ONDS. It's one that we talked about in your picks of the month, uh, I believe this time, Thomas. So,

we'll we'll look at the chart for that one, too, and talk about that a little bit more. and AMX is another question

bit more. and AMX is another question because there's uh still some downward moves on that one. So, we'll talk about all of these. Let's start with Joby and Archer though. Um Archer is really

Archer though. Um Archer is really getting down there quite low. I'm going

to pull up that full screen on the chart.

>> We're um down all the way to 746.

So it's to me Joby and Archer are are moving in tandem. But these two charts, these two markets show a clear uh division bifurcation to where u the market doesn't have as much faith and

hope and archer and you can see that because the price action is so low. It's

more uh trending in the low end of a trading range. It's definitely below

trading range. It's definitely below critical resistance points where Joby is trading in the high end of its range.

It's showing um support at those same comparable um critical points. Um, but

the real big question is their commercial viability.

Now, what I'm seeing is, you know, analysts still think that Joby is going to reach commercial certification sometime next year, which is awesome because it'll start commercially operating its EV tolls by the end of the

year, which is what its core business is going to be. Between now and then, it's using its new blade segment to offer helicopter rides from key airports, which means it's going to have revenue

starting very, very soon. Now for

Archer, what I'm seeing is some analysts are thinking that it might not get certification till 2028. That's fully

two years after Joby, uh, which is really bad news for them. Job's going to have two full years to cement its position, um, and build out its network and, you know, to to generate revenue.

And that's what we're really seeing in in the stock price.

Now, kind of tangentally, Joby has made allegations that Archer committed some uh corporate espionage, which uh you know, the the details seem pretty cut

and dry, but I'm not the lawyer or the the uh the judge to decide on that. That

could certainly have an impact um on the company long term, and right now, I think it is having an impact on the sentiment.

>> That's a good look at those. We talk

about them often, so it's just a good update really quick with [clears throat] where they're at right now. Are they

buys for those who believe that this idea is going to take off? Is it still too speculative that you could see a lot of a lot more moves, a lot more volatility in the future, or do you think it's a good buy at this point,

especially for Archer to get in at this low?

>> Uh, well, so I think both of the stocks for traders looking for swings have both moved down within their ranges and their channels and set up um a pos have are in

position to produce a bullish swing. As

far as which one is a is a better buy or which a good buy now, I think that would be Joby far more than Archer. Uh just

because it's got a a clearer, cleaner path to profitability and to commercial operations. Um certainly has hurdles to

operations. Um certainly has hurdles to surpass. Uh but in in this comparison, I

surpass. Uh but in in this comparison, I think Joby is the better choice.

>> All right, very good. Let's move on to a couple others. Again, we're going to go

couple others. Again, we're going to go to uh DVL next. I think this is one um we've talked about before. I can't

remember, Thomas, have you talked about this one or not?

>> Yeah, we have quite a few times. Uh this

market still looks like it's, you know, it's moving sideways, kind of side winding, trying to get its uh to get traction. I think we probably still have

traction. I think we probably still have a high short interest. Let me check on that.

>> Yes, about 11 and a half% right.

Yeah. [snorts]

>> Oh, yeah. And that's up. So, short

interest is rising. That's certainly

going to keep uh you know, the market under pressure. We still have very tepid

under pressure. We still have very tepid institutional activity. Uh it seems like

institutional activity. Uh it seems like they're accumulating, but they own less than 1% of the stock. That's not very much. Um also, analysts aren't very

much. Um also, analysts aren't very active with the stock either.

>> I mean, we have three covering it.

They're asking or they're looking for 270% upside, but only three analysts isn't very many. one of them rates as a sell and that's the most recent that's the

most recent uh coverage. So, you know, certainly is a is a promising stock. It

has had some affirmations recently with its deals and its funding. Um but still needs to start producing. Um until then, I think this market's going to be moving sideways with a risk of correcting back

down to lower levels. uh because uh profitability, revenue growth isn't really there yet and there's plenty of short interest and not enough broad market support.

>> All right, good look at that one. Let's

go to next and thenx. Um Chris, you can chime in too. I know I've talked about both of these in Thomas' monthly stock picks, but we've talked about on Market Beat Monday a couple weeks ago. This is

a drone company. Um right,

>> Thomas, why did it make your monthly stock pick list for December?

Well, um it's drones have real utility.

Um not only are they capable, but they provide cost effective um cost effectiveness. Uh they're getting lots

effectiveness. Uh they're getting lots of follow-on orders from different government agencies. Uh the revenue

government agencies. Uh the revenue outlook is starting to swell. Analyst

coverage is improving and uh also institutional coverage is starting to improve and it's kind of got it set up to rally over time. And within this equation, there's also a very high short

interest. So, uh, we're looking for, uh,

interest. So, uh, we're looking for, uh, um, potential for a short squeeze where this stock could, uh, probably double in price real easy, uh, provided we get the right catalyst that could come out

really at any time with the announcement of, um, new contracts or with the upcoming earnings release.

>> And Chris, >> yeah, I see the government contracts as being the key driver here. I mean that's that's what you're going to be looking at for a lot of these technologies is the fact that the the company has these

contracts with government not just with the US government but with governments with international governments that's the that's going to be the driver because if they can get those contracts as a way of you know proving the

technology then it makes it easier for them to branch out. stock does have pretty high short interest. It's

>> right.

>> Yeah, that's up a lot in the last month, but >> yeah. So, one thing I'm looking at is is

>> yeah. So, one thing I'm looking at is is is the growth. It's still a pretty small company. The last quarter it made about

company. The last quarter it made about 10 million. uh but it's in a hyperrowth

10 million. uh but it's in a hyperrowth phase where it's growing at a 500% pace and the upcoming uh >> yeah upcoming quarters are expected to be very similar and the way that the the

deal volume is going it's going to sustain a hyper growth pace for quite some time I think >> yeah this looks like a good one >> okay all right moving on tox and then if

you want to look at Chris really quick look at Clorox we want to change it up somebody asked to talk about less of these small cap stocks and more of a a company that's been around for a while and wondering if Clorox is a good value

play right now with the levels it's at right now. So Chris, you can look that

right now. So Chris, you can look that one up. Uh Thomas, let's talk about AMX

one up. Uh Thomas, let's talk about AMX and what's happening with that stock.

>> One checking out right now. I don't

think there's any new news. No. So this

market is still just kind of consolidating and waiting for the next big catalyst to come out. The news

stream has been very good. um the latest release um aligns with the outlook, you know, swelling business, you know, improving outlook and new clients, new

business, hyper growth. Um so we're, you know, we're just waiting for this market to to decide to move higher. Uh right

now it's down, let's see, 15. So it's

down about 30% from its high, but it's [snorts] still trading um at critical support. And that critical support was

support. And that critical support was the top of the previous range. And so

what I'm seeing right now is this market has has moved up from its old lower level to a new higher level where the market really now is about $10.60, $10.50.

Probably stay around that level um until the next release comes out which will probably provide that catalyst, help it uh to get moving higher again.

>> Very good. Yeah, that's one I feel like we talk about every week. So a quick little run through on AP works well.

>> Yeah. Right. So until there's like some new news, it's just going to be the same story with this one. Um it's a great stock. It's a great story. The market is

stock. It's a great story. The market is moving higher in leaps and bounds. But

each one of those leaps and bounds is going to be followed by consolidation and a correction, which is where we are right now, which just allows the market to kind of cool off, regain its feet, get itself ready for that next move. Um

and it'll come. It's just a matter of time. uh because of the way the story is

time. uh because of the way the story is developing, you know, ramping production, ramping sales, uh ramping clientele, ramping outlook, you know, all just points to a higher a higher

stock price.

>> All right, Chris, let's take a quick look at Clorox. This is a little bit of a different story than what we've been looking at already this this show. Uh

this is a this is a rough chart for a company many of us have known for for years.

Yeah, the company's um they're they're they're in the process of a of a of a operational transition. They're trying

operational transition. They're trying to and it just it's not going very well.

Um the company itself issued some pretty tepid guidance in its last quarter. It

actually did very well in its last quarter. Um they they they did a they

quarter. Um they they they did a they had a beat on the top and bottom lines.

They were a little bit lower on a year-over-year basis, but and I think uh investors were hoping to hear a little bit more positive guidance. They didn't

hear that. Um that being said, um the stock is trading at around 16 times forward earnings, which is a discount um to its

to its historical average. So that's

good.

um you know it it it pays a dividend that's a little bit it it the payout ratio is getting a little high but I wouldn't worry about a company like Clorox not

being able to pay the dividend. Um you

know if you believe the analyst forecast and you believe that the consensus price targets $125 which is about 18% upside and then you factor that in with the 4%

4.6% 6% dividend and you know Clorox looks like it could be a value play here. Um

here. Um you know analysts some analysts have been lowering their price targets recently. So um it's it

certainly has that feel of a stock that's been beaten down so much that it might actually turn into something good.

But >> um you're going to want to you're going to want to pay attention to you know to what to what some of these analysts are saying about it and decide you know

where do you stand on it. This should be one of their best quarters. Uh just

historically this is this is a strong quarter for them in terms of their their revenue and because of you know because we're in the cold and flu season and that's when people are going to be using Clorox products. So they they're going

Clorox products. So they they're going to get a little bit of a bump from there. Um,

there. Um, you know, >> I think one thing I want to just mention real quick, cold and flu season makes sense. But remember that whole year when

sense. But remember that whole year when the whole year was cold and flu season, I'm talking corona virus year. You look

back at the history of this this stock.

I think if investors were getting into this during that that season, that whole year, um, they could be holding this at a loss.

>> I'm sorry, what? holding during the 2020 during the the pandemic the stock jumped so much when you look at the alltime history of it.

>> Oh yeah. I mean that >> right because it was it was it was the stock to have back then because everybody was using Clorox every day multiple times throughout the day. They

were announcing partnerships with major airlines to keep them sanitary and things like that. So it certainly had a big boost from COVID. But it really is the poster child for the postcoid letdown because once people started

getting tired of COVID, you can see that the stock price just started to deteriorate. And that's because it just

deteriorate. And that's because it just wasn't, you know, sustaining those really awesome growth pace that it, you know, produced for two or three quarters while people were, you know, pantry loading and and really leaning real hard

into sanitation.

>> Yeah. I mean, you're seeing the stock though trading now 10-year lows. I mean,

it seems like it seems like the sell-off is a little overdone right now.

>> And that I would I would then support that as saying that's probably a good reason to think of it as a value stock because it's just it's been so beaten down. But

down. But >> right, >> yeah, I like Charmin good good comment here about Clorox just no new innovation. It's really the same thing.

innovation. It's really the same thing.

Uh same product, nothing new.

>> What are they going to innovate? You

know, >> right? uh the best thing that they could

>> right? uh the best thing that they could do is use some of their money to buy another brand that they could grow because uh Clorox is more than just Clorox. They own quite a few center of

Clorox. They own quite a few center of the the store brands um that are popular and and and and help maintain the business. So, they might just need to

business. So, they might just need to find another one to add to the portfolio that they can use as a as a growth pillar.

>> Yeah.

>> All right, let's move on to another stock. Thomas, were you looking at one?

stock. Thomas, were you looking at one?

>> I I don't think I was.

>> Okay. See, I have to remember what we're where we're at and what I'm on. Let's

pick a couple others to look at here really quick. We'll go to the the late

really quick. We'll go to the the late latest one. DG uh Dollar General. I know

latest one. DG uh Dollar General. I know

that's one you like to talk about. We've

talked about before. And then we've had a couple requests for GR. Chris, I think this is one you've talked about before.

G.

>> Um I somebody asked about Well-Wisher asked about quantum and energy stocks.

We're going to be talking about that on the channel next week sometime. Um so

stay tuned for that one. Um we'll talk about that later. Uh, but for now, let's stick with DG and then uh G R A L. I'm

going to pull up DG first.

>> Yeah.

>> Right. So, Dollar General, the news flow looks good. The last

looks good. The last earnings report was good.

Sentiment seems okay, but I'm looking at the chart and the chart is ugly. Now, it looks like it could possibly be a head and shoulders reversal, but I think based on the bias

and the action, this is going to be a reversal from down to sideways. Uh

because this is totally skewed uh lower in my opinion. Uh we have a high left shoulder. we have a very deep dip for

shoulder. we have a very deep dip for the head and then the right shoulder is lower than the left shoulder which just shows the market kind of weakening down as it moves through the through the

bottoming process instead of like building up more support. Um

so this one is one that I would be worried about. Um so I'm sure if we dig

worried about. Um so I'm sure if we dig into it we might find a reason but uh at face value it's not really you know jumping out.

Um, I mean, valuation seems pretty good.

I mean, today it's trading about 18 times earnings and that falls to seven times earnings in 2035. So, that

suggests we could get a pretty robust stock price increase.

Um, see here, the dividend still looks pretty safe. Payout ratio is low.

pretty safe. Payout ratio is low.

Um, say that may simply be because it's not really growing that quickly. And as far as the dividend goes, it's not paying out that much of its earnings. So some

other retailers pay a higher percentage of earnings, which would, you know, command a premium among dividend dividend collecting investors.

Um, so yeah, this one could rebound, but the price action is not giving me a lot of hope.

>> Yeah, it's an interesting time to talk about retail stocks, especially over this holiday season. We saw some other small retail so stocks see some moves just based on the the weekend data from Black Friday shopping and all the

shopping. But I think that the real

shopping. But I think that the real moves from that value customer could potentially impact Dollar General. I

think that we talked last week about consumer trends, consumer confidence being down quite a bit. Any potential

impact on retail stocks, especially these value brands like Dollar General in this kind of consumer sentiment market?

Yeah, that's really hard to say because um retail spending has really been focused in certain areas and you can see that in

in Target's results and in Walmart's results and in TJ Maxx's results where investors are not investors but consumers are price conscious but

they're also quality conscious. And I

wouldn't say that Dollar General really has the highest quality goods, especially when you can go to these off-pric retailers and find really really smoking deals.

>> Yeah, good point. All right, Chris, let's move on to GR A uh G R A L and then Thomas, if you want to look up just a couple of more. Um we've had a lot of requests for VFF. So, you can look up

that, see if it's something worth talking about. VF. And then we'll talk

talking about. VF. And then we'll talk about uh UAMY. That's another one that has been asked a couple of different times. Um, all right,

times. Um, all right, Grail, I've got the chart pulled up right now. It looks like it had a little

right now. It looks like it had a little bit [clears throat] of a pullback after a really strong month, Chris.

>> Yeah, it did. Um, this is one I'm not familiar with, but I I did see that you had an interview with somebody on the channel about this. Um, this is an

interesting biotech company. So, the the company is the the company's um main product, I guess you'd call it, is

they've developed the gallery test, and it's a it's a blood test that can detect more than 50 types of cancer. Um, so it

it's it's an interesting company in the fact that it does have revenue coming through the door. Um in

fact in the last quarter it was up to about 36 million in revenue but company's not profitable yet and I think one of the reasons why you may be seeing the pullback that you've seen is the

fact that um the company had a although it it did better than expected in terms of the operating loss. It was still higher I think on a year-over-year

basis. Um, never let you know analysts

basis. Um, never let you know analysts the consensus price target $75. That's

about 23 23% below where it's at now.

But I see that you've got several analysts who have price targets um or at least a couple of them that have uh

price targets at 100 or even $105. Um I

think you could say that this is a pullback that's just based on profit taking at this point. Um, you know, I I'll be curious to see if the stock would go down and get down around that

$92 level or even down around, you know, if it were even to get down to the $80 level. I think that would be a screaming

level. I think that would be a screaming buy opportunity, but I that's not to say that um investors couldn't get in on it.

Now, I'm look at the short interest.

Short interest is up about it short interest is about 13%. It hasn't really moved that high in the last month, but it is something to think about. I think

one thing that stood out to me here just looking through the charts a little bit, it looks like institutions started buying this stock back in Q4 of last year um or about a year ago and and you look at the chart that would have been a

good time to be getting in on this stock because it's gone up so much and it maybe is one of those ideas. I remember

the guest who was on talking about this saying the idea has a lot of potential.

Um if if this >> cancer screening blood test ends up getting that FDA approval and it's covered by insuranceances, it could be a common test that that could really see

some some movement on the stock then.

But we're not there yet. We haven't yet.

But but that doesn't stop investors from getting ahead of it. And I I understand that there's the temptation of you don't want to be not in the stock when it gets that FDA FDA approval and it can be used

and it has insurance reimbursement such but right now do I want to get in on it?

Probably. I want to wait for a little bit. Maybe see the stock pull back a

bit. Maybe see the stock pull back a little bit more before I'd get involved with it.

>> All right. Very good.

>> Thomas, which one were you looking at?

>> Village Farms. >> All right. VFF.

>> All right.

>> What is this stock? It looks like a small one.

>> Uh it is a it's a tiny company. Um

>> this company has got a couple of tailwinds going for it. One of them is potential for US um legalization of cannabis. One of it is the company's

cannabis. One of it is the company's shift from a um a combo play on organic vegetables and cannabis to being a cannabis pure play. Okay.

>> Um it's got higher margins with cannabis. It's produced record

cannabis. It's produced record profitability allowed it to initiate some buybacks but again uh the weed business is real

small. Um there is some growth expected

small. Um there is some growth expected uh but it's not robust. Um, I think as far as, you know, weed stocks goes, this is another

one to be careful chasing, uh, because if we do get federal legalization, these small companies are going to disappear, uh, because the big players are going to just immediately step in and dominate the market.

Um, and until then, you've got, you know, profits and buybacks to help support the market, help support the stock price. Analysts have been fairly

stock price. Analysts have been fairly positive about it. So, I mean, it looks okay. Uh but as far as uh investibility,

okay. Uh but as far as uh investibility, I think that this is another one that uh just to be to be careful with.

>> Yes, very small company for sure. All

right, we only have time for maybe one or two more. I know we had I had said as one and I think this is one we've talked about on the channel before, but I can't

remember what it is. A mining company, >> United States Anamoney. That's uh it's going to be it's going to be in that rare earth category.

>> We just had a video out for those uh who watching with Jeffrey talking about some rare earth stocks. If you haven't seen that one yet, just go back and watch it.

Just came out on um Sunday. It's a

really good watch about some of those stocks that are down so much right now.

This is this is no different. This stock

is down 30% in the last month. Um still

down yet today. another 10% today it looks like.

>> Any thoughts on this one?

>> I'm pulling it up.

>> Oh wow. Yeah, right.

>> That looks like part of the you know.

Yeah, this the the rare earth surge and pullback.

Yeah, it looks like the mining operations are um >> we've got >> they've started mining operations in Montana, but it looks like they're going

to have to they're pretty close to having to shut it down >> for the winter. Um

>> yeah, they're making like nine or 10 million per quarter. I mean, the growth for next year is like 200%, but we're

still looking at only 120 million. Um,

could be profitable, though. That's

that's good. Um, this one could be a buy for next year, but uh yeah, like Chris said, with the winter coming on, it

would uh maybe be wise to wait until the spring, you know, because this market could continue to move lower. Looks like

today's action has it down oh 10% today. That's pretty big. Um

we're at long-term lows. We move below critical moving averages. So this one could continue to sell off.

Yeah, I think that's definitely possible. Excuse me everyone. My uh

possible. Excuse me everyone. My uh

computer is frozen right now. So nothing

is really changing on the screen yet.

I'm hoping you're still able to hear this. But we are just about done for the

this. But we are just about done for the day. So I think that we will be wrapping

day. So I think that we will be wrapping up here. Chris and Thomas, if you can

up here. Chris and Thomas, if you can still hear me, I think you could just give a little closing thought. Anything

um uh any final thoughts for the market heading into this week?

>> Um I think this week could be more of what we saw today, which is just kind of flat tepid action while the market waits on this data. Um reacts to what it is and kind of uh gets a grip on what it

thinks will happen next week when the FOMC meets.

Perfect. All right, guys. Thank you so much for watching. Thanks everyone for watching. Sorry about this last minute

watching. Sorry about this last minute delay at the end. As always, happy investing everyone.