All Posts in "George"

Wolfspeed (NYSE:WOLF) Shares Plummet 59% After Confirming US$270-295 Million Net Loss

Wolfspeed faced a significant challenge last month, with its share price plunging 58%. This remarkable decline can be linked to reaffirmed guidance projecting a GAAP net loss of $270 million to $295 million, indicating possible investor concerns about Wolfspeed’s financial health. Additionally, while the broader market faced modest declines amid escalating tariff concerns, which affected technology stocks in particular, Wolfspeed’s executive change announcements might have added an element of uncertainty. With Robert Feurle set to take over as CEO and board member, investor reactions appear cautious ahead of expected leadership shifts.

Over the past year, Wolfspeed’s total return was a significant decline of 91.22%, starkly underperforming the broader US Semiconductor industry’s modest growth of 2.5%. This downturn can be partly attributed to an array of challenges the company faced. The sharp increase in net loss, as evidenced by substantial losses reported in Q2 of fiscal 2025, highlighted financial pressures. Leadership changes also contributed, with Robert Feurle’s impending appointment as CEO marking a shift in company strategy.

Furthermore, product innovation continued with the launch of Gen 4 technology, aiming to enhance high-power applications. Financial restructuring, including a $200 million follow-on equity offering, sought to stabilize Wolfspeed amidst these challenges. Legal headwinds, including a class-action lawsuit concerning securities law violations, compounded investor concerns, further pressuring stock performance. As Wolfspeed navigates these multifaceted issues, the market’s response underscores a cautious outlook.

George by — March 30, 2025 By George in Equities
Is Loar Holdings Inc. (NYSE:LOAR) the Best Aerospace and Defense Stock to Buy According to Analyst?

Defense Spending Uncertainty

On February 13, CNBC reported that President Trump’s statement regarding a potential reduction in US defense spending triggered a drop in defense stocks. During a White House event, the President proposed cutting the defense budget in half, stating that there is no need for the United States to spend nearly $1 trillion on the military. He mentioned plans to discuss this idea with China and Russia in future meetings. This sent mixed signals regarding military spending. On the one hand, he has emphasized the need for a strong military and proposed initiatives like the “Iron Dome of America,” a missile defense system. On the other hand, he also suggested significant cuts to defense spending, aligning with broader efforts to reduce government expenditures.

To discuss this, TD Cowen’s Roman Schweizer joined CNBC for an interview on February 14. He noted that setting aside all the mixed signals and uncertainty around the sector, the government would increase defense spending. This will be a result of the reconciliation plan of the Senate and House, however, the magnitude of this increase is still unclear. Schweizer also noted that some members of both the House and Senate are pushing President Trump to increase defense spending to 4% or 5% of GDP. Moreover, US Secretary of Defense, Pete Hegseth, reiterated that US defense should be pegged at 3% of GDP. Schweizer highlighted that this forms an interesting baseline for a potential $40 billion to $60 billion increase in spending over the upcoming years.

Regardless of the uncertainty in the White House regarding increasing or decreasing defense spending, the industry has been redefining itself with the help of technology and AI. On February 21, Morgan Stanley released a report highlighting megatrends for the industry. The report highlights that innovations in unmanned drones, robotics, autonomy, and artificial intelligence are not only modernizing military operations but also influencing how nations allocate and grow their defense budgets. In 2023, global military expenditures reached a record high of $2.4 trillion, marking a 6.8% increase from the previous year, the steepest annual growth since 2009.

Morgan Stanley’s Global Investment Office views this resurgence in defense spending and technological innovation as an opportunity to enhance productivity and stimulate economic growth. They highlighted that the integration of new technologies can create investment opportunities not only in defense contractors but also in related sectors such as supply chains, transportation, manufacturing, energy, and cybersecurity.

Our Methodology

To curate the list of 12 best aerospace and defense stocks to buy according to analysts we used the Finviz stock screener and CNN as our sources. Using the screener we aggregated a list of aerospace and defense stocks for which analysts see more than 30% upside in the next 12 months. After sorting the list by market capitalization, we cross checked the analyst upside from CNN and ranked the stocks in ascending order of this indicator. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s Q4 2024 database. Please note that the data was recorded on March 27, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points.

A machinist performing intricate work on a high-temperature resistant alloy for a jet engine.

Loar Holdings Inc. (NYSE:LOAR)

Number of Hedge Fund Holders: 32

Analyst Upside Potential: 39.66%

Loar Holdings Inc. (NYSE:LOAR) is a diversified manufacturer and supplier of niche aerospace and defense components. It specializes in designing, manufacturing, and selling a wide range of products that support major aircraft platforms. The company serves three core end markets including commercial aerospace, business jet, and general aviation.

Loar Holdings Inc. (NYSE:LOAR) reported a significant increase in net sales for the third quarter of 2024, reaching $103.5 million. This represents a 25% year-over-year growth, driven by robust demand in both commercial and defense sectors. The company’s strong performance is attributed to its strategic execution and the growing demand for aerospace and defense components. For 2025, the company forecasts net sales between $470 million and $480 million.

It is actively expanding its portfolio through strategic acquisitions. A notable example is the planned purchase of LMB Fans & Motors for €365 million, which is expected to enhance the company’s specialized aerospace and defense component offerings. It is one of the best aerospace and defense stocks to buy according to analysts.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q3 2024 investor letter:

“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Providing a 40% lift was Loar Holdings Inc. (NYSE:LOAR), a diversified manufacturer and supplier of niche aerospace and defense components. We first added Loar to the strategy on its IPO in April and continued building the position early this quarter. Later, Loar reported higher-than-anticipated revenues and earnings, then boosted its guidance for the rest of the year. Loar forecasted increased growth for all three of its end-markets: aerospace original equipment, aftermarket, and defense.”

Overall, LOAR ranks 7th  on our list of best aerospace and defense stocks to buy according to analysts. While we acknowledge the potential of LOAR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LOAR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — March 30, 2025 By George in Equities
Why Wall Street is talking about a ‘Mar-A-Lago accord’ as a way to understand Trump

Last November, Hudson Bay Capital released a 41-page document that outlined a plan to restructure the global trading system with a juicy premise for Wall Street. Complicated and dense, “A User’s Guide to Restructuring the Global Trading System” touches on everything from US debt to interest rates to re-shoring of US manufacturing but with a central idea of a “Mar-a-Lago accord” built around tackling dollar “overvaluation” and what author Stephen Miran wrote could be “a 21st Century version of a multilateral currency agreement.” “Many argue that tariffs are highly inflationary,” he wrote at another point, but “that not need be the case,” especially if currency issues are also addressed. The idea quickly gained steam on Wall Street, with prominent backers on Wall Street like Jim Bianco of Bianco Research urging investors to read it. Bianco said in February it was a signal that the young administration is “thinking very big,” as he put it on a podcast called MacroVoices. The thesis was also bolstered by Miran’s subsequent selection to head Trump’s Council of Economic Advisers, a sort of in-house think tank at the White House. The issue, at least so far? That fuller plan outlined in the paper has been belied by the administration’s own actions since taking office. President Trump is clearly aiming to upend the global trading system and is full speed ahead on one side of Miran’s thesis — the implementation of tariffs — but has put the corollary currency piece on ice and even offered some skeptical comments since taking office. Miran himself acknowledged as much in a series of recent comments. He told the Washington Post recently, “Anyone thinking what I wrote in November is the policy agenda we’re secretly implementing right now is just looking for something to write about.” He added to Bloomberg of his ideas that “some of them are easy, some are tough,” and downplayed the importance of his paper, saying instead that Trump is “solely” focused on tariffs right now. Yet the paper has remained a source of positivity, even as Bianco said from the get-go it could never happen. Miran even wrote about tariffs being a first priority before policy “becomes dollar negative.” It was cited often by those needing a silver lining amid the current uncertainty of market volatility, sticky inflation, and nervousness about the possibility of a recession as Trump touts his coming April 2 “Liberation Day” plans. Columbia University historian Adam Tooze went so far in a recent Substack post as to compare the continued market focus on Miran’s paper with Stockholm Syndrome, the psychological phenomenon where a hostage develops positive feelings toward their captor. “Call it Mar-a-Lago (Accord) Syndrome,” Tooze wrote.

What Miran laid out

Miran in his paper argued that tackling the currency question could rebound in America’s favor on a variety of fronts — from the national debt to national security arrangements to providing a boost to US businesses. The goal is to ensure the dollar remains supreme as a global reserve currency while at same time correcting what he viewed as an “overvalued dollar” that makes US manufacturing less competitive. The US, he argued, could convince other countries to help with that devaluation in exchange for security guarantees or a pledge to drop punitive tariffs — what he called the “multilateral” approach to a new trading landscape but one that it’s very unclear other countries would go along with willingly. He also wrote in detail about how the administration could, if needed, unilaterally act “if it is willing to be creative” to address the problem of undervalued foreign currencies — pointing to possible measures in the International Emergency Economic Powers Act of 1977 (IEEPA). But it’s a detail that has perhaps unwittingly underlined Trump’s focus elsewhere so far in his second presidency. The president has indeed relied on IEEPA law for dramatic actions in his early weeks in office — but almost solely the tariff provisions in the law, to impose tariffs on China, Canada, and Mexico, without significant action on currency. And in another recent appearance, on CNBC, Miran didn’t weigh in on currency at all and even sounded firmly in line with Trump’s overall message of downplaying any economic effects from tariffs. “My view is that the country on which we are imposing those tariffs ultimately pays those tariffs as opposed to having any negative economic consequence on the United States,” he offered.

Competing impulses from Trump

Trump likes to promise to keep aloft “the mighty U.S. Dollar” and maintain its status as the global reserve currency. But in other settings, Trump has suggested an openness to a devaluation case and acknowledged in a campaign interview that the gap between the US and other currencies has created a “tremendous burden” on companies. In any case, a meaningful push for currency measures or devaluation hasn’t emerged from the White House so far even as Wall Street interest has remained high. In his recent comments to Bloomberg, Miran seemed amused that he was still being asked about the paper as he downplayed its chances in the near term. It’s “taken on a life of its own, against all my intents,” he quipped. But hope perhaps springs eternal, with Miran adding of the currency side of the equation, “Could it be something that is entertained down the road? Sure.”
George by — March 30, 2025 By George in Market Watch
Is President Donald Trump’s “Liberation Day” Going to Cause a Stock Market Crash? History Provides a Clear Answer.

Over the last five weeks, Wall Street has reminded investors that stocks can move in both directions. Although the widely followed Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and innovation-inspired Nasdaq Composite (NASDAQINDEX: ^IXIC) are still firmly in respective bull markets, there was a brief period where the S&P 500 and Nasdaq Composite dipped into correction territory — i.e., a decline of at least 10% from a recent high. While there are a few concerns that have investors’ attention at the moment, including a forecasted contraction in first-quarter gross domestic product, along with the historic priciness of stocks, perhaps the prevailing issue for the stock market is President Donald Trump’s tariff policy. Trump has touted what he calls “Liberation Day” as a key milestone for the U.S. in its fight to make foreign trade fair. The question is: Will the president’s tariff proposals perpetuate a stock market crash? Interestingly enough, history offers a clear answer.

What, exactly, is Liberation Day?

Before digging into a data-driven analysis of how stocks perform when tariffs are implemented, let’s lay the foundation of what tariffs are, why they’re being leaned on by President Trump, and what Liberation Day might entail. Put simply, a tariff is a tax added to an imported or exported good. Tariffs are commonly placed on imports from foreign countries, with the goal to protect domestic jobs and/or make domestically manufactured goods more price-competitive. If finished goods imported into the U.S. become notably pricier, it might encourage businesses to shift their manufacturing to the U.S., or at the very least entice consumers to buy American-made goods. In a March 21 post to his social media platform Truth Social, President Trump stated:
April 2nd is Liberation Day in America!!! For DECADES we have been ripped off and abused by every nation in the World, both friend and foe. Now it is finally time for the Good Ol’ USA to get some of that MONEY, and RESPECT, BACK. GOD BLESS AMERICA!!!
Thus, Liberation Day (April 2) represents the date where Trump will institute potentially broad-ranging tariffs on countries that have persistent trade imbalances with the U.S. As of this writing in the early morning hours of March 25, the details of which goods or countries will be subject to tariffs via Liberation Day remain fluid. While April 2 was initially viewed as a date that sweeping global tariffs might take effect, weekend reports from The Wall Street Journal and Bloomberg intimate that tariffs will be far more targeted than initially anticipated.

Will Liberation Day allow the bears to run wild on Wall Street?

Considering how volatile the Dow Jones, S&P 500, and Nasdaq Composite have been during the early innings implementation of tariffs on China, as well as aluminum and steel imports, it raises questions about what might happen to stocks when Liberation Day arrives. Thankfully, history provides a very big clue. In December, four economists at Liberty Street Economics — Liberty Street provides research and analysis for the New York Federal Reserve — published a report (Do Import Tariffs Protect U.S. Firms?) that examined the various impacts Trump’s China tariffs had on stocks and publicly traded companies during his first term in office. Perhaps the least-surprising of all takeaways is that public companies exposed to Trump’s China tariffs in 2018-2019 did worse than those not exposed on the days these duties were announced. Wall Street likes predictability, and there’s no telling what impact an added tax could have on a company’s margins or demand for its products. Additionally, Liberty Street Economics observed an adverse correlation between tariffs and future outcomes for public companies with exposure to the U.S.-China trade war. In particular, companies that fared poorly on tariff announcement days, on average, saw their profits, employment, sales, and labor productivity all decline from 2019 to 2021. Lastly, the four economists were quick to point out the difference input versus output tariffs had on U.S. businesses during the U.S.-China trade war. “Output” tariffs are duties placed on finished goods imported into the U.S. While this type of tariff often leads to reciprocal duties from other countries, it’s as straightforward as it gets. Meanwhile, an “input” tariff is an added tax placed on an imported good used to manufacture a finished product in the U.S. This type of tariff can make domestic goods pricier and hurt U.S. businesses. President’s Trump’s tariff policy hasn’t historically paid much attention to this difference between output and input tariffs. Based on Liberty Street Economics’ data-driven analysis, a stock market crash isn’t likely. However, the uncertainty created by tariffs does tend to lead to modest weakness in the equities exposed to said tariffs. In other words, the Dow, S&P 500, and Nasdaq could all take the escalator lower.

Uncertainty begets opportunity on Wall Street

If history were to rhyme for the stock market, a heightened period of volatility and weakness have arrived. Until there’s clarity from President Trump on tariffs and/or trade deals in place, it’s not far-fetched to expect uncertainty to drive equity valuations lower. But it’s important to note that, when given ample time, uncertainty begets opportunity on Wall Street. Inclusive of the latest 10.1% peak-to-trough decline in the benchmark S&P 500, it’s endured 40 corrections of at least 10% since the start of 1950, based on data from Yardeni Research. This works out to a correction occurring, on average, every 1.88 years. In short, downturns are probably more common than you might realize. Something else that’s incredibly common but might be flying under the radars of investors is the undeniable nonlinearity of investing cycles. In June 2023, the analysts at Bespoke Investment Group published a data set on social media platform X that explored the length of every bull and bear market in the S&P 500 dating back to the start of the Great Depression (September 1929). What this data set depicted was the night-and-day difference between optimism and pessimism on Wall Street. On one hand, the average 20% (or greater) downturn in the broad-based index lasted for 286 calendar days. Further, no S&P 500 bear market endured longer than 630 calendar days, with only nine out of 27 bear markets topping one year (365 calendar days) in length. On the other side of the coin, the typical bull market stuck around for a considerably longer 1,011 calendar days. Additionally, a third of these 27 bear markets spanning 94 years ranged from 1,324 calendar days to 4,494 calendar days in length. Even without ever knowing ahead of time when stock market corrections will begin, how long they’ll last, or where the bottom will be, this data set from Bespoke demonstrates the power of optimism and patience on Wall Street. If President Donald Trump’s Liberation Day tariffs sink the stock market, it would represent the perfect opportunity for long-term investors to pounce.
George by — March 30, 2025 By George in Market Watch
How Trump’s car tariffs will impact Americans, in 3 charts

Car prices are about to shoot higher. That’s because a 25% tariff across all cars that the United States imports is set to take effect on April 3. And not long after, a 25% tariff on most foreign-made car parts is set to take effect. In President Donald Trump’s ideal world, his tariffs will cause auto producers to move more of their production to the US. But automotive experts have told CNN that’s more or less a pipe dream. And even if it were possible for companies to move all production to the US, it would end up costing a lot more to manufacture. On top of that, Trump has already enacted 25% tariffs on steel and aluminum shipped to the US and he’s threatened to impose tariffs on copper. All three metals are needed to make cars, therefore, tariffs on those will also raise the cost of making a car. But even putting that aside, the 25% tariff on imported cars could raise prices per vehicle by a range of $5,000 to $15,000, depending on the make and model, according to Goldman Sachs estimates. For decades, North America has functioned virtually without any border when it comes to producing cars, as a result of free trade agreements that allowed cars and car parts to come into the US duty-free. That’s in part why Mexico was the top source of cars imported into the US last year. Even though there is a lot of auto production that takes place in the US, there is no car that’s 100% American-made, given how many parts are shipped in from abroad. For instance, at least 60% of Volvo, Mazda, Volkswagen and Hyundai’s US car sales last year were imported, according to an analysis by S&P Global Mobility. For the time being, imported cars that comply with the United States-Mexico-Canada Agreement (USMCA), which was negotiated by Trump during his first term, will be able to come in to the US duty-free until US Customs and Border Protection has a system in place to apply tariffs to non-US parts, according to a fact sheet published by the White House.
George by — March 30, 2025 By George in Business News
Over 200 ‘Tesla Takedown’ protests take place throughout US on ‘Global Day of Action’ against Elon Musk’s role with DOGE

Hundreds of “Tesla Takedown” demonstrations are taking place in the United States, Canada and Europe as activists ramp up their opposition to CEO Elon Musk’s efforts to slash federal government staffing and budgets. Since joining the Trump administration, Musk has aggressively pushed policies to reduce spending, curb regulations and downsize the workforce as the head of the so-called Department of Government Efficiency, all while repeatedly misleading the public about federal spending. More than 200 demonstrations are planned at US Tesla locations on Saturday as part of the “Tesla Takedown” movement, which called for a “global day of action” aiming for 500 protests worldwide. The campaign wants people to sell their Tesla vehicles and their shares of Tesla stock as a way to denounce Musk, the world’s richest man, whose wealth is overwhelmingly linked to his Tesla holdings. “It’s unfortunate that Musk has decided to use his power and riches for negative efforts,” said Austin Naughton, who runs a Facebook page for a grassroots organization and helped publicize the Washington, DC, protest for organizers. A demonstration that began around 11 a.m. local time outside a Tesla showroom in DC’s Georgetown neighborhood drew a crowd of over 100 people for a “Tesla Takedown Dance Party!” as it’s described on the Tesla Takedown Website. Those in attendance carried anti-Musk signs and danced to disco music as cars drove by honking in support. James Decherd, a DC native, said he was there to show his support for federal workers. “I’m just afraid for what kind of country this is going to be after these cuts,” Decherd told CNN. “The whole country is at risk of becoming a dystopian hellscape. I don’t know what’s going to happen.” DOGE has not slowed down in its sweeping efforts to dismantle or overhaul federal agencies. On Monday, the department attempted to shut down the United States Institute of Peace, an independent non-profit agency, and CNN reported on March 13 that DOGE had proposed cutting 20% of the staff at the Internal Revenue Service by May 15. Since Musk’s controversial alignment with the Trump administration, Tesla has transformed from an innovative car brand to a symbol of injustice and a prime target for escalating acts of vandalism and violence. On Thursday, authorities announced that a man suspected of setting fire to several Tesla vehicles at a repair facility in Las Vegas last week has been arrested. Paul Kim, 36, allegedly sprayed the word “RESIST” in pink paint across the front doors of a Tesla facility before shooting at multiple vehicles and using a Molotov cocktail to set them on fire, authorities said. Although acts of violence have been unfolding for months against Tesla vehicles and facilities, including charging stations and individually owned vehicles, Tesla Takedown organizers have stressed that the demonstrations are intended to remain strictly nonviolent.

What demonstrators are saying

At the protest in Georgetown, co-organizers Sara Steffens and Melissa Knutson stood alongside other demonstrators carrying signs. They have both planned multiple protests just like this one for months. “There’s a very serious and strategic component in what we’re doing. This is a way to say we’re not afraid,” said Knutson, who has neighbors who were recently fired in a round of DOGE cuts and have put their homes up for sale. Her daughter, who is disabled and relies on Medicaid, is another source of motivation for her, she said. Marisa Deline told CNN that this was her first Tesla protest. Although she supports the mission of electric vehicle makers like Tesla, she doesn’t believe Musk’s values align with her own. She now plans to attend more protests and take other actions, such as supporting nonprofits and mutual aid. “They’re not just able to do whatever they want,” Steffens said, referring to the dismantling of government agencies and lofty federal cuts. “They can pretend they can like bullies do, but they can’t have power unless we let them.” Melanie Aron, who was also in the crowd along the road holding a sign up, has a nephew conducting studies about Alzheimer’s disease at the National Institutes of Health (NIH) and saw his research funding slashed by DOGE. “Those studies benefit American people. When we cut those off, people are going to suffer,” Aron said. “I know we tend to talk about the workers. But we need to focus on the people who are impacted when the work doesn’t happen.” In Arlington, Virginia, Ed Grass, 56, echoes Aron’s sentiments. Grass, who has muscular dystrophy, a degenerative genetic muscle disease, was one of over 150 people who attended a protest against Musk and DOGE outside of a Tesla showroom on Saturday. Grass, sitting in his wheelchair holding up a sign, says he worries about the future of health care research for people like him with lifelong conditions. “There won’t be as many (medical) breakthroughs,” Grass said. “We have the jewel of the education system and they’re destroying it…It’s a long-term problem. I may be long gone but my grandchildren may suffer.” Protesters are also concerned about people in need who live in other countries that are also now impacted by Musk and the Trump administration’s decisions to freeze foreign aid and dismantling the agency that oversees it. Laura Plaia, 59, was also in attendance at the protest in Arlington and was recently laid off from the US Department of State where she worked in the Bureau of African Affairs. “Our work benefits all the countries in Africa,” she said. “Trump is running the country like a company. It’s been gut wrenching for so many people. Lives have been turned upside down.” Todd Post, 50, was laid off from the Health Services and Resources Administration on Monday. Prior to that job, he worked for the Office of Infectious Disease and HIV/AIDS Policy, which was recently eliminated by the Trump administration. “Now there are women in foreign countries not getting HIV treatment,” Post said, holding an American flag on the side of the road at the protest in Arlington. “This administration really has blood on its hands because it’s caused people to get life ending diseases as a result of their arbitrary cuts…How is that efficient?” Alainn Hanson brought her mother from Minnesota to their first Tesla protest. Hanson hopes there will be more protests as summer approaches and believes people should speak with their dollars, especially when it comes to hurting Tesla’s valuation. “I’m sick of billionaires trampling over working class people,” she said. There were about 750 protesters outside of a Tesla location in Rockville, Maryland, according to a post on Bluesky. Organizers told CNN that hundreds arrived at a protest in Boston and were still trickling in after 12:30 p.m. despite the rain. Roughly 200 gathered at a location in Chicago, according to a user on Bluesky. “I am proud of myself. Today I participated in my first protest against the Musk-Trump regime,” a Bluesky user wrote.

FBI launches task force

Both FBI Director Kash Patel and Attorney General Pam Bondi have referred to anti-Tesla acts as “domestic terrorism.” The FBI has created a task force intended to “crack down on violent Tesla attacks,” it announced Monday, following a spate of incidents appearing to target Musk’s electric car manufacturer. The new task force will work in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives to investigate anti-Tesla attacks, FBI Assistant Director for Public Affairs Ben Williamson said in a post on X. Anti-Tesla incidents have happened in at least nine states, the FBI said over the weekend, noting the pattern appears to be them occurring overnight and “conducted by lone offenders.” “These incidents have involved arson, gunfire, and vandalism, including graffiti expressing grievances against those the perpetrators perceive to be racists, fascists, or political opponents,” the FBI said, asking anyone with information about these crimes to contact law enforcement. Over the weekend, the FBI urged the public to look out for signs of a possible attack on Tesla dealerships or Tesla-related entities, including individuals surveilling or trying to break into Tesla properties or making threats against the company online. “I do worry that we’re conflating a bunch of random acts of violence with what is a very earnest attempt by many people who’ve not really spent a lot of time in the streets protesting but feel called to action right now,” said Joan Donovan, an assistant professor of journalism and emerging media studies at Boston University who has helped organize protests. Last weekend in Florida, protesters outside a Tesla dealership in Palm Beach County had to move out of the way of an SUV that jumped the curb and drove toward them,according to authorities. A black SUV was seen slowing down and crept by the protesters before suddenly accelerating. The SUV almost struck people, but no one was injured, authorities said. A Tesla employee told police the driver got out of his vehicle and then entered the showroom and said he “stands with Tesla,” according to an arrest report.

Musk responds to demonstrations and Tesla stock’s plunge

Musk has publicly discussed Tesla’s stock and the acts of vandalism against Tesla vehicles and showrooms. In a meeting on March 21 with employees that was broadcast on X, the social media platform Musk owns, he said, “there are times when there are ‘rocky’ moments,” and added, “What I’m saying is: Hang on to your stock.” Shares of Tesla (TSLA), which closed at $263.55 on Friday, have slid 45% since December 17. In an interview that aired Friday on Fox News, Musk responded to the backlash against Tesla, which has involved acts of vandalism that include the spray painting of vehicles and chargers. There have been no reports of injuries. “It’s actually disadvantageous for me to be in the government, not advantageous,” Musk told Fox News host Bret Baier about his role with DOGE. “My companies are suffering because I’m in the government.” Musk specifically referenced how the acts of vandalism have hurt Tesla’s revenue. “Do you think it helps sales if (Tesla) dealerships are gonna be fire-bombed? Of course not,” Musk said.
George by — March 30, 2025 By George in Business News
Social Security Administration delays and curtails new anti-fraud policy

The Social Security Administration announced Wednesday that it is pushing back the rollout of a controversial anti-fraud measure by two weeks and reducing the number of applicants it will affect.

It’s the latest backtrack at the agency, which is in turmoil amid a massive reorganization spurred by the Department of Government Efficiency, and comes as the Elon Musk-led initiative is hunting for fraud at Social Security. More than 73 million Americans receive Social Security benefits.

The planned policy, which was set to take effect Monday, would have required all those filing benefit applications who cannot verify their identities through their online “my Social Security” account to visit a field office to complete the claim in person.
Currently, they can also apply over the phone.

But now the new identity verification policy will only apply to those filing for retirement, survivors or family benefits and will take effect on April 14.

People applying for disability benefits, Supplemental Security Income and Medicare will continue to have the option of filing their claims over the phone.

Also, the agency will not require filers in “extreme dire-need situations,” such as terminal illnesses, to adhere to the new policy and will instead develop an alternate process for them, it said.

“We have listened to our customers, Congress, advocates, and others,” Lee Dudek, Social Security’s acting commissioner, said in a statement, noting the delay allows for more training for employees. Applicants for disability, SSI and Medicare have other opportunities to verify their identity during the decision process, he said.

Pushing millions to understaffed offices

Advocates have raised concerns that the change would prove onerous for senior citizens and people with disabilities who are not able to go online or travel to agency offices.

“Our members nationwide have told us this change would require hundreds of miles and hours of travel merely to fill out paperwork,” Nancy LeaMond, AARP’s chief advocacy and engagement officer, said in a statement. “Merely delaying the implementation of this change is not enough, though.”

The change, along with another new rule barring beneficiaries from changing their bank account information over the telephone, could send millions more people to the agency’s offices, forcing folks to wait longer for payments and straining Social Security’s operations at a time when the agency is downsizing its staff, advocates have said.

The new policy regarding bank account information will take effect on April 15, instead of Saturday, as originally planned, according to an agency spokesperson.

However, a two-week delay is still “nowhere near enough time” to develop a comprehensive plan, train staff and inform the public of the identity verification change, Kathleen Romig, director of Social Security and disability policy at the left-leaning Center on Budget and Policy Priorities, wrote in a Bluesky thread.

Plus, she questioned the need for such a policy.

“SSA has provided no evidence of direct deposit fraud that would require such heavy burdens on customers & staff, & no evidence at all of apps filed under assumed identities,” Romig wrote.

The agency reported $88 million of confirmed fraud for financial fraud in fiscal year 2023, according to a Congressional Research Service report. That’s separate from improper payments, though some of these payments may have fraud-related causes. Social Security sends about $1.5 trillion in payments annually.

Last week, he suggested he would shut down the agency in the wake of a court ruling temporarily blocking DOGE representatives from having access to Social Security data containing individuals’ personal information. He then announced in a news release that he would not do so after getting clarification from the judge.

Dudek has rolled out a series of rapid-fire changes – as well as some reversals – during his stint as acting commissioner, which began less than six weeks ago. He told advocates in a call earlier this week that these types of policies typically take two years to implement but said the White House is pushing him to act swiftly.

And earlier this month, he reversed a decision to end a program that lets parents sign up their newborns for a Social Security number and card at the hospital in at least one state, admitting it was a mistake. Dudek told The New York Times in an interview last week that he originally ordered the change because he was “ticked” at Maine’s governor (who is a Democrat) for “not being real cordial” to President Donald Trump at the White House.

George by — March 29, 2025 By George in World News
YouTube tests turning off notifications for channels you don’t watch

YouTube is switching off some push notifications for channels with frequent uploads in a new test that might make you miss alerts you’ve signed up for. The latest test announced by the official TeamYouTube community targets channels that users have notifications set to “all” for, but often don’t open those notifications. The test won’t turn off notifications for channels that don’t upload frequently, as TeamYouTube member Rob noted:
Viewers who haven’t recently engaged with a channel despite having been sent recent push notifications will not receive push notifications in the experiment. Notifications will still be available via the notification inbox in the YouTube app. Channels that upload infrequently will not have their notifications affected. Actively engaged viewers with push notifications enabled on their device will continue to receive them. (No change)
It’s not clear whether users will have any indication that they’re missing notifications, and it doesn’t seem normal to have a platform manage your notifications for you. “When viewers turn off all notifications from YouTube, all creators are unable to reach even their most engaged viewers outside the app. The goal of this experiment is to help us find ways to reduce this problem,” wrote Rob. Too many notifications can certainly be annoying, it’s possible some viewers want to see their favorite channels’ updates, even if they don’t immediately watch them. The test is just a “small experiment,” but there’s no mention of how long it will go on for or whether it will expand to more users.
George by — March 29, 2025 By George in World News
Reddit Inc. (NYSE:RDDT) Fourth Best Up and Coming Stock to Buy According to This Indicator

We recently published a list of the 12 Best Up and Coming Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Reddit Inc. (NYSE:RDDT) stands against other up and coming stocks to buy according to Wall Street Analysts.

Tom Lee, Fundstrat managing partner, joined CNBC’s ‘Closing Bell’ on March 22 to discuss the current market sentiment. When asked about the recent report on tariffs, which oscillates between an iron fist and an olive branch, Lee expressed optimism. He suggested that markets should interpret the situation positively because many clients view tariffs as punitive and potentially recession-inducing. However, a mutually agreed or reciprocal tariff deal could create a favorable scenario for businesses, potentially setting the stage for a significant recovery rally. Addressing the immediate challenge of volatility leading up to April 2, Lee acknowledged the dilemma investors face during this period of uncertainty. He noted that many are overwhelmed by market fluctuations and tempted to give up. Drawing a parallel to the Cuban Missile Crisis in 1962, which lasted 12 days, Lee pointed out that markets historically bottom before crises are resolved. For instance, during that crisis, the stock market reached its lowest point seven days in and recovered two-thirds of its losses before the resolution. He suggested this historical pattern could serve as a template for today’s market behavior.

When asked about the economy, Lee remarked on how quickly sentiment has deteriorated. He attributed part of this decline to divisive political leadership that affected consumer confidence and noted that CEO confidence has also dropped unexpectedly. CEOs have become hesitant to make decisions, which is contributing to what he described as a growth shock. However, he remained hopeful that this slowdown would be temporary if it does not persist for months. The conversation shifted to concerns about a potential recession, with Jeffrey Gundlach recently estimating a 50% to 60% chance of one occurring in the next few quarters. Lee countered this by stating that while a 10% drawdown in the S&P 500 already prices in a 40% chance of recession, markets do not fully align with Gundlach’s pessimistic view. He highlighted that economies like China, Europe, Canada, and Mexico have been outperforming the US since February 18. If punitive tariffs were truly driving global recessions, these economies would also be struggling. Instead, Lee described markets as more paralyzed than outright pessimistic.

Our Methodology

We used the Finviz stock screener to compile an initial list of the top stocks that went public in the last 5 years. We then selected the 12 stocks with high analysts’ upside potential as of March 21 that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a user’s hand scrolling through a mobile social media application.

Reddit Inc. (NYSE:RDDT)

Average Upside Potential as of March 21: 88.51%

Number of Hedge Fund Holders: 87

Reddit Inc. (NYSE:RDDT) enables users to engage in conversations, explore passions, research new hobbies, and exchange goods and services. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another.

The company is enhancing its advertising platform by integrating AI-powered tools, such as the AI Headline Generator and Memorable AI, to improve performance and attract mid-market and SMB advertisers. It’s also focusing on brand safety and using its unique community intelligence to develop advertising solutions like Reddit Pro Trends. The company is investing in ad stack automation and advertiser diversification.

In Q4 2024, Reddit Inc.’s (NYSE:RDDT) advertising revenue surged by 60% year-over-year and reached $395 million. For the full year 2024, advertising revenue drove total revenue to $1.3 billion, which was a 62% increase. International advertising revenue saw a 77% growth. This is attributed to the company’s ability to connect brands with engaged users seeking trustworthy opinions across various advertising objectives, channels, verticals, and geographies.

Reddit Inc.’s (NYSE:RDDT) strong quarterly earnings, user growth, and AI partnership news drove a stock surge, which made it a top performer for Columbia Threadneedle Global Technology Growth Strategy. The fund stated the following in its Q4 2024 investor letter:

“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”

Overall, RDDT ranks 4th on our list of the best up and coming stocks to buy according to Wall Street Analysts. While we acknowledge the growth potential of RDDT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — March 29, 2025 By George in Equities
Is BigBear.ai Holdings Inc. (NYSE:BBAI) the Most Popular AI Penny Stock to Buy Under $5?

We recently published a list of the 10 Most Popular AI Penny Stocks to Buy Under $5. In this article, we are going to take a look at where BigBear.ai Holdings Inc. (NYSE:BBAI) stands against other popular AI penny stocks to buy under $5.

Umesh Sachdev, the CEO of Uniphore, recently appeared on CNBC on March 19 to talk about what he calls the ‘the third year of a ten-year AI buildout’. Sachdev shared his perspective on the GPU Technology Conference (GTC) conference during this conversation. GTC is a global AI-focused event held semi-annually that brings together developers, engineers, researchers, and IT professionals to explore advancements in AI, ML, computer graphics, and autonomous machines. Sachdev attended both Jensen Huang’s keynote and spoke on a panel afterward. He highlighted several announcements that caught his attention. These included the Vera Rubin chips and the next-generation Blackwell Ultra chips, which were expected advancements in computing power.

However, what stood out most to him was Huang’s discussion around Agentic AI and physical AI. He explained that AI agents are becoming smarter and beginning to reason. This development is significant for customers like insurance companies, banks, telecom companies, and manufacturing firms. Sachdev noted that AI agents are already assisting employees or replacing certain jobs within these companies, and are performing tasks faster and more efficiently. Similarly, physical AI robots are being implemented in manufacturing setups with guardrails, which showcases early applications of these technologies. He believes these advancements will lead to what he calls an age of abundance, which will ultimately improve free cash flow for many publicly traded companies and create a bright future for AI in the enterprise.

Our Methodology

We sifted through financial media reports and stock screeners to compile a list of the top AI penny stocks that were trading under $5 as of March 24. We then selected the 10 AI stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A closeup of a computer server rack surrounded by a CAT5 network of cables.

BigBear.ai Holdings Inc. (NYSE:BBAI)

Share Price as of March 24: $2.97

Number of Hedge Fund Holders: 13

BigBear.ai Holdings Inc. (NYSE:BBAI) delivers AI-powered decision intelligence solutions. It offers services in national security, supply chain management, and digital identity through advanced data analytics and ML. The company’s AI platforms process and visualize complex data, and enable predictive insights for sectors like defense, logistics, and transportation.

The company has a strong focus on government contracts. The company’s work with the US Department of Defense (DoD) is a key revenue driver. The company recently secured a 3.5-year, $13.2 million sole-source contract to support the DoD’s ORION Decision Support Platform (DSP). This platform provides automated force management and data analytics that uses BigBear.ai Holdings Inc.’s (NYSE:BBAI) AI capabilities. The company also reported that increased revenue from the Department of Homeland Security and Digital Identity awards contributed to its growth.

In Q4 2024, BigBear.ai Holdings Inc. (NYSE:BBAI) reported revenue of $43.8 million, which was an 8% increase year-over-year. For FY2025, the company projects revenue between $160 and $180 million. It’s focused on the AI sector, particularly in serving the government, and is actively using the DoD’s Tradewinds Marketplace to secure AI/ML procurement contracts.

Overall, BBAI ranks 3rd on our list of the most popular AI penny stocks to buy under $5. As we acknowledge the growth potential of BBAI, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — March 29, 2025 By George in Equities
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