HAPPY SUNDAY TO THE STREET

Two of the most infamous founders of the last startup bubble are looking at a different kind of exit.

FTX insider Caroline Ellison only served half her prison sentence before being quietly moved into community confinement. Meanwhile, Theranos founder Elizabeth Holmes has already had nearly three years shaved off her prison term thanks to good-conduct credits.

The rule of three raises the obvious question: who’s next? Sam Bankman-Fried feels like the cleanest bet. But recency bias has us leaning toward Do Kwon.

— Brooks & Cas

Presented by Venture Trader

We all know the feeling. You watched the stock. You waited for the perfect moment. Then it ran right by you. Without you. 

Genetic AI is built to change that. 

Trained by a 25-year market quant to think like a trader, but with a brain capable of testing 15000+ strategies nightly, Genetic AI is designed to recognize the earliest signals in microcaps. 

From there, it delivers premarket alerts with exact entry and exit levels, to help everyday traders act early instead of reacting late. 

If you want fewer regrets and more conviction, this is the tool that shifts momentum in your favor.

PUT SOME EGGS IN THIS STOCK’S BASKET

A Nervous Market

While investors tiptoe around rate cuts, tariffs, and geopolitical noise, one consumer staple keeps quietly delivering.

Cal-Maine Foods $CALM ( ▼ 0.43% ) is the largest egg producer in the US. Recent results suggest it is doing far more than just cracking shells.

In its fiscal 2026 first quarter, Cal-Maine posted record performance across the board. Earnings per share jumped 35% year over year to $4.12, while net sales rose 17% and operating cash flow more than doubled to $279M.

Those gains came despite volatile egg prices, lingering avian flu risks, and a cautious consumer. The company also paid a 6.6% dividend yield, backed by a free cash flow yield north of 30%.

Taste for Premium

According to Barron’s, Cal-Maine’s edge is vertical integration. It controls nearly every step of production, from hatchery to distribution, supplying major customers like Walmart $WMT ( ▼ 0.41% ), Costco $COST ( ▼ 0.23% ), and Publix. Nearly half of the revenue still comes from its top three customers, but diversification is underway.

Earlier this year, Cal-Maine acquired Echo Lake Foods for $258M in cash. The deal expands the company into prepared egg-based foods, and already accounts for most of its Prepared Foods segment revenue.

At the same time, demand for specialty eggs continues to climb. Cage-free, organic, and premium offerings made up 36% of egg sales last quarter, up double digits from a year ago.

The FDA’s 2024 decision to reclassify eggs as a healthy food has only added fuel.

Risks Remain, So Does Upside

Avian flu remains the biggest wild card. Cal-Maine has largely avoided the worst outbreaks thanks to heavy biosecurity investment, though no producer is immune. Lawsuits tied to egg pricing and swings in feed costs add another layer of risk.

Still, Barron’s points out, the balance sheet is unlevered, buybacks are underway, and capacity spans 49 facilities across 18 states. Eggs may not be as exciting a business model as AI innovation or space travel. But in a market craving stability, Cal-Maine looks to Barron’s like a protein-rich defensive worth scrambling for.

Are you bullish or bearish on Cal-Maine (CALM) over the next 12 months?

Login or Subscribe to participate

A SAFE BET IS A SELECTIVE BET

Selectivity Matters

Technology powered much of this year’s rally, but cracks are starting to show. Elevated valuations and questions around AI payoffs have investors separating durable winners from crowded trades.

JPMorgan $JPM ( ▲ 1.35% ) believes the AI theme still has legs, but not evenly. Analyst Doug Anmuth argues AI will keep driving quality growth and momentum stocks, while also creating record concentration across the market.

In that environment, JPMorgan highlighted four internet stocks it believes can outperform into 2026, each of which offers leverage to AI-driven productivity.

Full-Stack AI & Underappreciated Engines

Alphabet $GOOGL ( ▲ 1.55% ) tops JPMorgan’s list for what the firm calls a full-stack AI strategy. Recent launches like Gemini 3, Nano Banana Pro, and custom silicon chips reinforce Alphabet’s edge across models, infrastructure, and applications.

JPMorgan also expects AI Overviews to support search growth and advertising demand, while YouTube and Google One subscriptions add incremental momentum.

Amazon $AMZN ( ▲ 0.26% ) is another core pick. Despite modest gains this year, JPMorgan sees valuation appeal and improving fundamentals.

Amazon Web Services should benefit from AI-driven demand, the bank argues, with gigawatt capacity expected to double by 2027. The upcoming Trainium3 chip is projected to deliver 40% better AI performance than its predecessor.

Beyond the Usual Giants

Outside the Mag 7, JPMorgan also likes DoorDash $DASH ( ▲ 1.43% ) and Spotify $SPOT ( ▲ 3.25% ).

For DoorDash, the bull case centers on scale. JPMorgan expects US gross order value to grow at an 18% compound annual rate through 2028, helped by rising monthly active users and an underdeveloped advertising business.

Meanwhile, Spotify’s opportunity looks broader than music alone. JPMorgan points to steady user growth and expanding verticals across podcasts, audiobooks, and video as drivers of revenue leverage.

AI may be crowded at the top. But JPMorgan’s view is clear. The next leg higher favors platforms that quietly turn innovation into cash flow.

Which stock do you think will outperform in 2026?

Login or Subscribe to participate

Presented by Venture Trader

Timing is everything in microcaps. Genetic AI helps you get ahead of the move. 

It processes millions of data points each night and flags stocks with early signs of potential momentum, netting 8% returns in the last 2 months.*

You receive the plan before the market opens. Plenty of time left to act. 

THE DRUG PRICE REVOLUTION IS MESSY

A Travel Agent Problem, Revisited

Drug pricing is starting to look more transparent. But according to a new analysis by the Wall Street Journal, appearances can be deceiving.

Much like old-school travel agents steering clients toward higher-commission hotels, the modern prescription system still rewards middlemen in ways patients rarely see. At the center are pharmacy benefit managers (PBMs) run by companies like CVS Health $CVS ( ▼ 0.09% ) and Cigna $CI ( ▼ 0.77% ) . Drugmakers pay them rebates to secure favorable placement on insurance formularies. That often makes higher list prices more attractive than cheaper drugs with smaller rebates.

Patients, meanwhile, feel the pain. Out-of-pocket costs often reflect inflated list prices, while rebate dollars flow back to insurers or employers to lower premiums for everyone else. The sickest patients often end up subsidizing the system.

Rebate-Free Sounds Better Than It Is

Direct-to-consumer pricing, especially in weight-loss drugs, has exposed how wide the gap really is between list prices and real prices.

In response, Cigna announced a rebate-free pharmacy model. Discounts would apply at the counter, lowering patient costs upfront. Fully insured customers will transition automatically in 2027, while others can opt in later.

On the surface, this looks like a break from the old system. But the incentives may simply be shifting. Instead of rebates tied to list prices, PBMs increasingly collect manufacturer fees through separate channels. These fees are less visible, still lucrative, and still tied to formulary access.

As one analyst put it, the commission did not disappear. It just changed its name.

What This Means For Investors

For investors, this is not a clean disruption story.

PBMs operate on thin margins, often around 4%, but their scale and opacity give them durable leverage. Companies like CVS, Cigna, and UnitedHealth Group $UNH ( ▼ 0.22% ) are betting they can adapt faster than regulators can act.

But the real risk isn’t margin compression. It’s loss of trust. Employers and regulators still struggle to see true drug costs. Smaller, more transparent PBMs are trying to exploit that gap.

Drug pricing reform is underway. But incremental tweaks may not deliver the savings patients expect. For now, the system remains complicated, profitable, and very much intact.

Are you bullish or bearish on pharmacy benefit managers over the next 12 months?

Login or Subscribe to participate

LAST WEEK’S POLL RESULTS

Are you bullish or bearish on Weyerhaeuser $WY ( ▼ 0.51% ) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

  • 🐂 Bullish — “In the new year, I have several projects planned for my house, ALL require lumber.”

  • 🐻 Bearish — “Lumber is becoming obsolete with the invention of other building materials.”

Are you bullish or bearish on the VanEck Vietnam ETF $VNM ( ▲ 2.85% ) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

  • 🐂 Bullish — “Vietnam is possibly the most westernized Eastern country, with financial and legal systems that are heavily western influenced in their design, so well suited to partner with western systems and institutions.”

Are you bullish or bearish on Walmart $WMT ( ▼ 0.41% ) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

  • 🐂 Bullish — “I noticed an uptick in cost in Walmart and being passed to consumers.”

  • 🐻 Bearish — “Walmart is huge already, so it’s hard to see how they might expand either market size or margin.”

*IMPORTANT DISCLAIMERS: Educational Publisher Notice: Venture Trader is an educational publisher—not a broker-dealer or investment adviser. We provide educational content and trading insights for informational purposes only. Risk Warning: Micro-cap stocks can be highly volatile and illiquid. Only invest capital you can afford to lose. Trading stocks involves risk, and you should carefully consider your investment objectives, level of experience, and risk appetite. Performance Disclaimer: Results reflect fixed trading rules tested on historical market data. These are hypothetical, not live trades, and real results may vary. Past performance is not indicative of future results. Individual results will vary. Not Financial Advice: Nothing on this page should be considered personalized financial advice. Always consult with a licensed financial professional before making investment decisions.

Reply

or to participate