Black Swan Street Weekly Stock Market Summary (June 17-June 21 2024)

Welcome to Black Swan Street!

Welcome back to another edition of Black Swan Street!!

It was an action-packed week, so let’s get into it:

• Nvidia Short-Lived Run At The Top👇

• The Swan’s Selections🦢

• In Other News🗞️

• Next Week In The Stock Market🔮

• The Swan’s Story Of The Week🦢

Read time: 6 minutes

Nvidia Short-Lived Run At The Top👇

Short-lived reign: Nvidia had its short-lived moment of euphoria last week when it became the most valuable company in the world. 

Nvidia was commanding a ~$3.4 trillion market cap with only 29,600 employees, while the second-largest company, Microsoft, has over 221,000+ employees. 

However, that excitement has since subsided as Nvidia fell back into the number three spot behind Microsoft and Apple. 

But don’t you worry; the investment train into AI doesn’t appear to be slowing down anytime soon. 

The AI bubble: Dell CEO, Michael Dell, announced that his company, in partnership with Nvidia, would be building an “AI factory” for Elon Musk’s xAi. In turn, Musk revealed earlier this week that Super Micro (SMCI) will be providing the hardware needed for the supercomputer that xAI is building. 

It appears that the AI bubble is only continuing to expand as companies like SMCI, TSM, Dell, and NVDA continue to make record gains.

• Super Micro Computers (SMCI) has gained +217.60% YTD

• Taiwan Semiconductor Manufacturing (TSM) has gained +72.10% YTD

• Dell (DELL) has gained +93.76% YTD

• Nvidia (NVDA) has gained +162.65% YTD

As for retail investors like you and I, who can’t get a piece of private companies like xAI; remember that the shovel and pick sellers were the real money-makers during the gold rush.

Powering the computer systems that train and run AI systems requires huge amounts of energy. As innovation within the industry progresses, the AI chips developed by companies like Nvidia will only get more advanced and more necessary for tech companies to obtain.

Expect Nvidia to maintain its leadership, but prepare for competition on the horizon as the industry remains hot.

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The Swan’s Selections🦢

 🗣️Elon Musk Backs Down: Last year, Musk told advertisers on X to “go f*** yourself”. Well, now he’s walking back on those remarks as he tries to win advertisers back to X/Twitter. Elon is now saying those remarks were meant as a general point on free speech rather than a comment to the wider advertising industry.

🎬Netflix’s New Mega Experience: Netflix is building new 100,000+ square foot retail spaces that let shoppers feel like they’re inside hit shows like “Bridgerton” and “Squid Games”. Netflix is set to launch this experience at malls in Dallas, Texas and King of Prussia, Pennsylvania.

🖥️Anthropics New Model: OpenAI rival Anthropic has released its new powerful gen AI model called Claude 3.5 Sonnet. They claim the model is best in class; however, does the model live up to its hype?

🏢Former AI Boss Starts New Company: Ilya Sutskever, OpenAI’s former chief scientist, launches a new AI company. He is joined by former Y Combinator partner Daniel Gross and ex-OpenAI engineer Daniel Levy at the startup Safe Superintelligence Inc (SSI). Sutskever left the company in May after a dramatic falling out with leadership at OpenAI.

In Other News🗞

• Sam Altman says OpenAI could become for-profit corporation - TI

• U.S. home sales fell to the lowest level in a decade - RT

• Early repayments shrink China's MBSs market by 65% - FT

• U.S. exec pay rises at fastest rate in fourteen years - ISW

• PE firm Advent International and a unit of SWF ADIA will acquire a $3B minority stake in billionaire Ken Fisher’s Fisher Investments at a $12.75B valuation - BBG

• M&A-focused hedge funds have outperformed all other strategies YTD - RT

• SCOTUS to hear shareholder lawsuit against Nvidia - RT

• Activist Starboard built a $500M stake in Autodesk - WSJ

• Trafigura to pay $55M over fuel oil manipulation - BBG

• U.S. Treasury and IRS to close $50B tax loophole on partnerships - RT

• $3.7B-listed packaged water company Primo Water will merge with peer BlueTriton Brands in an all-stock deal and trade on the NYSE - RT

• US labor market, housing data point to slowing economy - RT

• Deutsche's private bank cuts consultant spending by 70% - FT

• KPMG will cut another 200 UK jobs amid slowdown - FT

• US casino operator Boyd Gaming expressed takeover interest in peer Penn Entertainment, which has a ~$9B market value, including debt - RT

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

Economic Calendar Next Week:

The Swan’s Story Of The Week🦢

The Rich are Fleeing London at Record Pace

Once seen as a playground for the super-rich, the wealthy are quitting London amid the political and economic turmoil the great city has seen in recent years. The city seems to have lost its once-promising allure. 

As of now, the UK is seeing an unprecedented exodus of millionaires spurred by political and economic issues, with as many as 9,500 high-net-worth individuals set to leave the great nation. The only other country where this number is higher is China, with an estimated 15,200 individuals. 

This all makes sense. China’s economic output has slowed as companies take their manufacturing to cheaper countries. As for Britain, who wants to live in such a dreary country anyway?

Find out why millionaires are leaving Britain (here).

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊