AI: The Gift That Keeps on Giving

Plus, Vanguard's CEO had this to say on Bitcoin ETFs

Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • | US stocks fell on Friday. Inflation concerns remain front and center for investors ahead of the Feds policy meeting next week. This pressure caused a 1% drop in the Nasdaq Composite and S&P 500 as well as a 190-point drop in the Dow.

  • | One Notable Gainer: Semiconductor stock Micron Technology gained 2% after Citi named the company one of its top stock picks and increased its price target from $95 to $150.

  • | One Notable Decliner: Microsoft dropped more than 2% after it hit record highs in yesterdays session upon launching its AI cybersecurity tool.

  • | Tomorrow's Trade: AI: The Gift That Keeps on Giving. Scroll down for more.

S&P 500 Heatmap. Credit: Finviz

All stocks on US exchanges. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

ADBE (-14%) Adobe stock plunged after the company predicted weaker-than-expected sales for the current quarter (IBD)

FSR (+13%) Fisker shares rose Friday after the embattled electric-vehicle maker played down talks of a potential bankruptcy filing (WSJ)

RIVN (+3%) In better news for the EV industry Electric vehicle maker Rivian saw its shares pop after Piper Sandler hiked its price target from $15 to $21 (YF)

MMM (+2) 3M shares rose to a total of 11% on the week, the companys biggest weekly gain in more than two decades (CNBC)

AMZN (-2%) Amazon was one of the loss leaders contributing to todays decline in the Dow Jones Industrial Average (Barrons)

POWERED BY RYSE

What if you had the opportunity to invest in the biggest electronics products as they launched into big box retail, would you?

Ring changed doorbells and Nest changed thermostats. Early investors in these smart-home companies earned massive returns, but the opportunity to invest was limited to a select, wealthy few.

Not anymore. RYSE has just launched in 100+ Best Buy stores, and you're in luck you can still invest at only $1.50/share before their name becomes known nationwide.

They have patented the only mass market shade automation device, and their exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.

OVERHEARD ON THE STREET

CNN: The 6% commission on buying or selling a home is gone as the National Association of Realtors announced a seismic settlement with home seller groups.

Bloomberg: The average consumer credit score in the US has dropped for the first time in a decade, albeit by just one point, to 717.

AB: Vanguard CEO stated they will not offer spot Bitcoin ETFs because it does not belong in a long-term portfolio and its not a store of value.

Reuters: Apple agreed to pay $490 million to settle a class-action lawsuit alleging Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.

RD: Adidas posted its first annual net loss in over 30 years, which Adidas attributes to the extraordinarily high tax rate.

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TOMORROWS TRADE IDEA, TODAY

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AI Innovation

AI has been the talk of the town on Wall Street lately but its not all talk. The emerging sector is largely responsible for the surge in tech stocks that has pushed the market forward this year.

With immense gains seen in stocks indirectly related to AI such as NVIDIA, which produces the chips powering the massive computers running generative AI models analysts are now trying to pinpoint what other industries stand to benefit the most from AI advances.

Ark Invests Tasha Keeney predicts the equity market cap attributable to innovation, primarily in the AI space, will hit $220 trillion by 2030. This has made Keeney particularly bullish on two surprising sectors: Autonomous cars and autonomous drones.

Autonomous Cars

According to Keeney, the next 10 years should be a period of substantial growth for the self-driving car industry.

The analyst is particularly bullish on Tesla (TSLA). Keeney concedes that Teslas self-driving cars are not perfect, but cites the companys data capabilities as an advantage over its competition.

Tesla shares are down 1.8% over the past 12 months, but Ark is giving it a price target of $200, around a 19% upside from todays open. Even that may seem conservative compared to the average price target of $210.65 given by the 49 analysts covering the stock.

Autonomous Drones

Keeney is also bullish on autonomous drones, particularly in regards to how they relate to ongoing geopolitical conflicts. Thats why two of her top stock picks in the sector are both defense companies: Kratos Defense & Security Solutions (KTOS) and AeroVironment (AVAV).

Kratos manufactures jet-powered drones, while AeroVironment focuses on munitions. Kratos is down over 12% YTD, while AeroVironment has surged, up over 34% over the same period.

Both feature attractive stock prices and affordable drone platforms, according to Keeney.

For investors looking to get in on the AI action without investing in highly-valued AI companies themselves, these stocks may be one way to gain exposure.

Which stock do you think will outperform in 2024?

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POWERED BY RYSE

What if you had the opportunity to invest in the biggest electronics products as they launched into big box retail, would you?

Ring changed doorbells and Nest changed thermostats. Early investors in these smart-home companies earned massive returns, but the opportunity to invest was limited to a select, wealthy few.

Not anymore. RYSE has just launched in 100+ Best Buy stores, and you're in luck you can still invest at only $1.50/share before their name becomes known nationwide.

They have patented the only mass market shade automation device, and their exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.

ON OUR RADAR

Bloomberg: Credit woes are souring Americans on the economy and could be a drag on President Bidens reelection bid.

BI: TikToks daily active user growth has collapsed, with Q4 2023 reports showing the video service lagged behind Snap Chat, YouTube, Instagram, and Facebook.

NYP: A new survey finds 57% of Gen Zers prefer savings accounts as their investment method. In contrast, 46% of baby boomers prefer stock investments.

Bloomberg: Taylor Swifts Eras tour concerts in Singapore prompted economists to upgrade the nations first-quarter GDP forecast.

RBC: The Canadian economy is slowing as output has stagnated, and the number of job openings has dropped 25% from last years levels.

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