Peloton 🤝 TikTok

Plus, last year venture capital funding was down 35%.

Happy Thursday 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 were mixed today. The Nasdaq Composite closed lower for the fifth trading day in a row.

  • 📈 | One Big GainerCarnival Corp (+3%). Shares of cruise lines fell earlier this week. Wall Street could be buying the dip.

  • 📉 | One Big Decliner: APA (-7.4%). Shares of the oil producer fell after announcing it would buy Callon Petroleum, a Permian Basin producer.

  • 🏢 | Tomorrow's Trade: REIT Relief?

Plus: It’s time to bottle your wealth. Get started in under 5 minutes here.

S&P 500 Heatmap. Credit: Finviz.

All stocks listed on US stock exchanges. Credit: Finviz.

Foreign ADR stocks on NYSE, NASDAQ, AMEX. Credit: Finviz.

MARKET MOVERS

PTON: Peloton is partnering with TikTok to bring short-form fitness videos and other content to the social media channel. Shares of Peloton popped 15% after the news.

MBLY: Mobileye shares plunged 25% after the company said first-quarter revenue would fall 50% year over year. The autonomous driving tech company said it has an excess of inventory.

ALL: Morgan Stanley upgraded Allstate which caused shares to jump 2.4%. The bank said the insurance company is an “underappreciated story” that could see better earnings growth this year. Did they read The Street Sheet yesterday?

WBA: Shares of Walgreens Boots Alliance fell over 5% after the company cut its quarterly dividend to 25 cents per share from 48 cents per share.

TOGETHER WITH VINOVEST

American Single Malt is a brand new classification of whiskey, created by the Alcohol and Tobacco Tax and Trade Bureau in the summer of 2022. The new classification now allows US whiskey brands to market themselves as competitors to Scotch.

The new classification has resulted in a flurry of brands trying to release their own Single Malt offerings. However, the process for making single malt is different than bourbon and there currently isn't enough single malt distilling infrastructure in the US to meet the new demand.

You can now profit off this trend: Vinovest enables you to invest in new make American Single Malt before it’s matured and sold to brands. Vinovest will take care of storage, insurance and eventual selling of your whiskey.

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OVERHEARD ON THE STREET

Reuters: Carrefour (CARR.PA) is telling customers it will no longer sell PepsiCo products like Pepsi, Lay's crisps and 7up because they had become too costly, in the latest tug-of-war over prices between retailers and global food giants.

NYT: The U.S. auto industry is expected to sell 15.7 million vehicles this year, according to the market researcher Edmunds. That would be a modest increase from 15.5 million last year, when sales jumped 12 percent.

Bloomberg: Last year, venture capital investors put $345.7 billion into startups, down 35% from the prior year and the lowest outlay since 2017.

CNBC: The NCAA and ESPN have reached a new eight-year media rights deal worth more than $115 million annually. The new agreement carries an annual value of roughly three times the current 14-year deal, which pays about $40 million annually.

Fox Business: The median U.S. sales price for homes jumped in December, the biggest increase in over a year.

TOMORROW’S TRADE IDEA, TODAY

Listing Real Estate GIF by South Park

Looking to generate some income in 2024? Real estate-related investments may fit the bill. 

Hiking interest rates was the Fed’s favorite tactic in its all-out war on inflation. But this wasn’t great for real estate. It made borrowing costs more expensive and yields less attractive compared to other “safer” investments like money market funds and savings accounts.

But interest rates may finally begin to come down in 2024. Although minutes from their December meeting were slightly confusing, the Fed is ostensibly planning to cut rates this year. This means money could flow into vehicles like Real Estate Investment Trusts, or REITs. 

That’s good news for the real estate industry, and it may present a great opportunity for investors.

Glimmers of Hope

We saw glimmers of this trend appear at the end of last year.

Real estate emerged as the standout performer in the fourth quarter of 2023, with a remarkable 17.6% surge, capped off by a significant 8% jump in December alone.

This rebound mirrored a period of notable moderation in the 10-year Treasury yield, which peaked at just over 5% in October before settling back to around 3.8% by year-end.

If rate cuts do materialize this year, real estate bulls think we could see more of this positive momentum in the months ahead.

Look To Senior Housing

There is one sector of the real estate industry that analysts are particularly excited about: senior housing. 

Senior housing’s occupancy rate was up to 84.4% in Q3 of 2023, per the National Investment Center for Seniors Housings & Care. The Baby Boomer generation is getting older and will have an average age of 80 come 2026. As this giant generation ages, demand for senior housing should skyrocket. 

To get in on the action there are a few companies analysts are highlighting: 

  • Welltower (WELL)

  • Ventas (VTR)

Both have received “buy” or “strong buy” ratings from a number of analysts. 

As you monitor the sector, pay close attention the the Fed’s plans for rate cuts in 2024. Powell’s plans will most likely dictate the rise or fall of real estate in the year ahead.

Are you bullish or bearish on real estate stocks over the next 12 months?

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A MESSAGE FROM OUR PARTNERS

We’re going to let you in on a $59 billion investing secret. 

This well-kept secret is not in stocks or bonds. It’s not gold, either. One of the most lucrative assets is….fine whiskey

Fine whiskey offers an easy way to diversify and grow your wealth beyond the stock market. Over the last 10 years, whiskey has returned 314%, with the investment consultancy Knight Frank calling it the best-performing collectible of the decade. 

Impressive returns are only the start. A whiskey cask in your portfolio also comes with:

- A near-zero correlation to the stock market

- One-third of the volatility of global equities

- A robust hedge against inflation and recessions

You too can have access to this $59 billion industry. Companies like Vinovest have made it easy and affordable to invest in fine whiskey. In fact, Vinovest users own more than $100 million in “liquid” assets” with an average return rate of 9.05%.

It’s time to bottle your wealth. Get started in under 5 minutes at Vinovest.co.

ON OUR RADAR

Bloomberg: Nigerian electricity companies are short of an estimated 2 trillion naira ($2.5 billion) in capital and need new investors to revive the industry that can barely supply power to its 200 million residents.

CNBC: Ford is adjusting the pricing of its F-150 Lightning EV by as much as $10,000.

Bloomberg: Short sellers lost $195 billion in 2023 despite wins on regional banks.

WSJ: Customer defections, or churn, across premium streaming services rose to 6.3% in November, from 5.1% a year earlier.

Axios: Digital news start-up The Messenger is seeking to raise around $20 million amid layoffs and financial struggles, sources tell Axios.

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