⛽ Fueling the Future

Plus, how much short sellers lost during yesterday's GameStop rally.

Happy Tuesday 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 Rose on Tuesday, despite the producer price index showing that wholesale prices rose sharply last month. Investors are still waiting for more key inflation data coming later this week.

  • 📈 | One Notable Gainer: Sony’s stock surged 7% after reporting fourth-quarter revenue and earnings that beat expectations. The company also announced plans to buy back up to 30 million shares of its own stock.

  • 📉 | One Notable Decliner: Shares of Alibaba dropped 6% after the Chinese tech giant posted an 86% drop in profit amid cautious consumer spending in China and its largest-ever corporate structure overhaul.

  • ⛽ | Tomorrow's Trade: Fueling the Future. Scroll down for more.

Plus, our partner makes it easy to find trading platforms for Cboe index options.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨⬜️⬜️⬜️ Bearish

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

VOD (+5%) UK-based telecommunications company Vodafone reported a 2.2% rise in earnings for 2024 and saw growth in all of its global markets (Reuters)

NWL (+6%) Barclays upgraded consumer goods company Newell Brands to Equal Weight, claiming that Wall Street now understands its risks better (YF)

STLA (+3%) Automaker Stellantis announced it would aggressively expand EV sales outside the US through a deal with Leapmotor (CNBC)

WMT (-1%) Walmart is cutting hundreds of corporate jobs and asking most remote workers to move back to offices (CNBC)

GME (+60%) Meme stocks continued soaring today. Shares of AMC and BlackBerry also surged 32% and 12%, respectively (CBS)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

AP: Federal Reserve Chair Jerome Powell said that the central bank is unlikely to raise its key interest rate in response to signs of stubborn inflation.

Reuters: Powell still expects inflation to fall, but the Fed Chair is not as confident as he was before recent inflation data.

CNBC: Home Depot posted first-quarter earnings that beat expectations and revenue that missed estimates as high interest rates hurt sales.

NYP: Red Lobster abruptly closed at least 50 restaurants nationwide, including over a dozen in New York and New Jersey, blindsiding seafood chain employees.

CNBC: Data firm S3 Partners claims that short-selling hedge funds suffered an $838 million loss during Monday’s monster GameStop rally.

TOMORROW’S TRADE IDEA, TODAY

Hydrogen GIF by PBS Digital Studios

Investing in Hydrogen

Investment bank Metzler is bullish on Wolftank Group (WAH), an environmental technology company based in Austria. According to the firm, the company’s stock could see gains of up to 140% over the next year. 

Metzler noted that Europe is beefing up its hydrogen infrastructure, and Wolftank could see a serious windfall from this influx of capital. 

The bank’s analysts have given Wolftank a price target of $24.80, more than double Monday’s opening price.

Revenue Growth

Hydrogen refueling stations are a key piece of Wolftank’s strategy. Over the past 10 years, the number of stations in Europe has ballooned by 600%. 

The company is projecting 2024 revenue for hydrogen projects to come in at over 16 million euros, and around 18 million in 2025. Metzler believes other projects in Wolftank’s pipeline could add at least another 80 million euros to 2025’s revenue. 

According to analyst Guido Hoymann, Wolftank could see significant growth opportunities as conventional tanks and refueling stations are phasing out.

Growing Business

Wolftank announced last week that it had secured two contracts worth 6.7 million euros. Last year, it announced several large public transportation contracts in Italy centered around hydrogen refueling. 

The company operates under the assumption that public transportation will continue using hydrogen. These recent contracts indicate that the assumption is correct. 

If Metzler is right, Wolftank is well-positioned to take advantage of a growing European market. Investors have an opportunity to take advantage of the landscape as well.

Are you bullish or bearish on Wolftank Group (WAH) over the next 12 months?

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TOGETHER WITH CBOE

ON OUR RADAR

AP: US airlines are suing the Biden administration over a new rule to make certain fees easier to spot, claiming it would only confuse consumers.

FT: A Chinese car executive from Great Wall Motor called the West’s claim of overcapacity a “fake concept” as the nation continues to ramp up exports.

Globe and Mail: Canadian business insolvencies have risen to levels not seen since the Great Recession, up 87% from the same quarter last year.

BI: The share of prime working-age US men with a job has declined from about 96% in the 1950s to 86% today, partially due to recessions and globalization.

Bloomberg: Apple is preparing to sell its $3,499 Vision Pro headset outside of the United States for the first time in countries like China, France, and Germany.

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