HAPPY THURSDAY TO THE STREET.

It’s a phone! It’s glasses! It’s… what exactly? No one really knows exactly what AI hardware OpenAI CEO Sam Altman is paying $6.5B to acquire, along with Jony Ive’s startup. But here are some of the best guesses out there.

— Brooks & Cas

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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

SNOWFLAKE, HUMANA, URBAN OUTFITTERS

$SNOW ( ▼ 0.42% ) Snowflake Gives Strong Outlook With Focus on New AI Tools (Bloomberg)

$HUM ( ▲ 0.28% ) / $CVS ( ▲ 2.29% ) Humana, CVS drop on expanded Medicare Advantage audits (Investing.com)

$URBN ( ▼ 1.03% ) Urban Outfitters Sales, Earnings Jump on Strength Across Retail Banners (WSJ)

$FSLR ( ▲ 9.69% ) / $ENPH ( ▲ 2.67% ) Trump’s Tax Bill Pummels First Solar, Enphase, SunRun Stocks (Barron’s)

$COIN ( ▲ 1.0% ) Coinbase May Soon Acquire Circle According to Rumors (Bitcoin.com)

OVERHEARD ON THE STREET

CNN: Here’s why the bond market is worried about the GOP tax bill.

Reuters: Initial jobless claims ticked down last week, signaling ongoing stability in the job market.

WSJ: Universal $CMCSA ( ▼ 0.06% ) officially opened Epic Universe, the first new US theme park in decades.

Bloomberg: A Federal Reserve official pointed to early signs of turmoil in money markets.

CNBC: The Trump administration blocked Harvard University from enrolling international students.

Tomorrow's Trade Idea, Today

IS LOTTERY.COM ABOUT TO PAY THE STUPID TAX?

A Lotto That Can’t Sell Tickets

Short-seller Ragnarok Research has broken its year-and-a-half silence to release a short report on Lottery.com $LTRY ( ▼ 2.67% ) — and, according to the firm, it's their most damning report yet.

Ragnarok argues that the company is more interested in self-enrichment than legitimate business. It alleges that LTRY has essentially ceased legitimate operations since mid-2022 and is generating revenue primarily through subsidiaries engaged in illegal and fraudulent activity.

The company reportedly has no licenses to sell lottery tickets in the US, no functioning app, and a defunct website. Despite all of these red flags, management continues to issue press releases Ragnarok describes as “largely fake.”

A Web of Deception

All of this comes as its leadership allegedly uses share dilution schemes to enrich themselves, according to Ragnarok.

The report paints a detailed picture of systematic misconduct by Lottery.com executives. It accuses the CEO and others of orchestrating theft from co-founders, forging documents, and engaging in schemes involving illegal lottery ticket sales, including one linked to a major US lottery fraud now under FBI investigation.

Indeed, from a California church that was allegedly defrauded of $2.7 million to investors claiming millions were stolen under false pretenses, there is no shortage of lawsuits against Lottery.com.

Fake Capital, Real Dilution

Ragnarok also did a deep dive into LTRY’s financials, exposing two entities — Generating Alpha LTD and United Capital Investments London — as financially incapable of lending the $250 million LTRY claims.

Allegations of financial deceit extend to shell companies, fake acquisitions, and a “corporate campus” that’s actually just the CEO’s personal mansion in Florida.

Despite LTRY reporting increased cash on hand, Ragnarok says this is actually only due to stock dilution. The SEC recently hit the company with a delisting notice, and its legal troubles remain ongoing, leading Ragnarok to declare Lottery.com a “house of cards” — on the verge of total collapse.

Will Lottery.com be delisted in the next 12 months?

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ON OUR RADAR

AP: The US mint is moving forward with plans to end penny production.

Bloomberg: The US Senate is weighing punishing sanctions on Russia as peace talks between the nation and Ukraine stall.

CNN: Nike $NKE ( ▲ 0.6% ) announced plans to hike prices and re-list its products on Amazon $AMZN ( ▲ 0.2% ) in response to tariffs.

Fortune: Could tariffs make the Fall/Winter fashion season less stylish?

CNBC: The GOP tax bill might be bad for solar stocks. But what does it mean for your money?

WEDNESDAY’S POLL RESULTS

Which stock do you think will outperform over the next 12 months?

▇▇▇▇▇▇ American Healthcare (AHR)

▇▇▇▇▇▇ Sonida Senior Living (SNDA)

And, in response, you said:

  • American Healthcare (AHR) — “These businesses rely on Medicaid money to a fair extent. It's hard to see how either one will do well over the next year.”

  • Sonida Senior Living (SNDA) — “Baby boomers.”

Reply

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