December 03, 2024 | [Read Online]( Tiny Logistics Provider Soaring 300%+
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[share on linkedin] Good morning. It's December 3rd, and today weâll look at ZScalerâs plunge despite posting decent earnings, AT&Tâs $40B roadmap for 2027, and SpaceXâs leap to becoming the worldâs most valuable private startup. Previous Close ð On Monday, the S&P 500 edged up 0.2% to close at 6,047.15, marking a new record high. The Nasdaq Composite also reached a record, climbing 1% to 19,403.95. In contrast, the Dow Jones Industrial Average dipped 0.3%, ending at 44,782. Futures Dow Jones Industrial Average futures are up by approximately 0.1%, S&P 500 futures are up about 0.1%, and Nasdaq-100 futures are rising by around 0.2% this morning. Technology [This $0.26 Tech Stock Could Be the Next Big Thing]( Smartphones have been a massive expense for most people, with new models costing as much as $1,499. But [one company is flipping the script](, turning phones into income-generating tools. Their [âEarnPhone technologyâ]( pays users for everyday activities like using apps, streaming music, and watching videos. With [32,481% revenue growth]( between 2019 and 2022, this company ranked #1 in software on Deloitteâs 500 fastest-growing companies list. Their partnerships with giants like Amazon and Walmart are setting the stage for significant expansion, and their impact [has already helped users earn and save over $325 million.]( Now, theyâre offering investors the chance to [get in early at just $0.26 per share](, with up to 100% bonus shares for a limited time. [Click here to learn more about this groundbreaking opportunity and secure your stake today.]( * This is a paid advertisement for Mode Mobile Regulation A offering. Please read the offering circular and related risks at [invest.modemobile.com](. What to Watch This morning, Donaldson Company, Inc. (DCI) and Citi Trends, Inc. (CTRN) will announce their quarterly earnings before the opening bell. Watch closely for Salesforce Inc. (CRM), Marvell Technology, Inc. (MRVL), and Okta, Inc. (OKTA), which will report their results after the market closes. On the economic calendar, the JOLTS Job Openings report for October will be released at 10:00 a.m. ET, providing a snapshot of labor market dynamics by tracking job vacancies. Technology Zscaler Shares Slip Despite Beating Q1 Expectations and Positive Outlook Source: [Michael Sutton](, [CC BY-SA 4.0](, via Wikimedia Commons Zscaler Inc. shares are down nearly 8% in premarket trading today, extending a lackluster year for the cybersecurity company despite outperforming quarterly expectations. This decline starkly contrasts with the software sectorâs broader rally, where the iShares Expanded Tech Software ETF has climbed 29% in 2024, while Zscaler has shed 6% year-to-date. The company reported fiscal Q1 revenue of $628 million on Monday, surpassing analystsâ expectations of $606 million, alongside adjusted earnings per share (EPS) of 77 cents, well above the consensus of 63 cents. However, Zscalerâs fiscal Q2 guidance, projecting revenue of $633 million to $635 million and adjusted EPS of 68 to 69 cents, met but did not significantly exceed forecasts, leaving investors wanting more. For the full fiscal year ending next July, Zscaler expects revenue between $2.623 billion and $2.643 billion and adjusted EPS of $2.94 to $2.99, outpacing analystsâ estimates. Despite the optimistic outlook, investor reactions suggest concerns over the companyâs near-term growth momentum, particularly as pipeline commentary remains mixed across regions. On a GAAP basis, Zscaler narrowed its net loss to $12.1 million from $33.5 million a year earlier, signaling progress in cost management. CEO Jay Chaudhry emphasized strong customer engagements and robust sales execution as key drivers for the quarter. While Zscalerâs long-term outlook appears solid, investors seem cautious about its ability to sustain growth in a competitive and rapidly evolving cybersecurity landscape. Telecommunications AT&T Plans $40 Billion in Shareholder Returns by 2027 Amid Network Expansion AT&T unveiled its strategic roadmap for the next three years today, forecasting over $18 billion in free cash flow by 2027, fueled by investments in its 5G and fiber internet services. The company aims to double its fiber availability across the U.S. while enhancing its 5G network, offering bundled discounts for high-speed internet and wireless phone services. The Dallas-based telecom giant plans to extend its fiber reach to more than 50 million locations by 2029, a substantial increase from the 28.3 million fiber passings reported earlier this year. This aggressive expansion aligns with growing industry demand for faster, more reliable internet services and has already driven notable customer acquisition. AT&T anticipates maintaining an annual capital expenditure of approximately $22 billion through 2027 while returning over $40 billion to shareholders via dividends and stock buybacks. The company has also adjusted its 2024 earnings forecast, raising the lower end of its guidance to $2.20â$2.25 per share, surpassing analyst expectations. Excluding its 70% stake in DirecTV, which is set to be sold to TPG for $7.6 billion by mid-2025, AT&Tâs projections highlight robust growth. The companyâs wireless subscriber growth has outperformed estimates, boosted by attractive unlimited plans featuring perks like increased hotspot data. AT&Tâs plans come as competitors like T-Mobile also target significant free cash flow growth, with T-Mobile recently forecasting $18â$19 billion in adjusted free cash flow by 2027. Space Exploration Muskâs SpaceX Could Become Worldâs Most Valuable Private Startup SpaceX is reportedly in talks to facilitate an insider share sale that could elevate its valuation to approximately $350 billion, according to a Bloomberg report. This potential valuation marks a substantial jump from the $255 billion figure considered just last month and could solidify SpaceX as the worldâs most valuable private startup. The proposed tender offer would allow employees and early shareholders to sell their stakes, providing liquidity for those holding equity in the company. SpaceX last conducted a similar transaction earlier this year, which placed its valuation at about $210 billion. While the specifics of the deal remain under negotiation, the discussions reflect growing investor confidence in SpaceXâs ambitious space and satellite ventures. The company, officially known as Space Exploration Technologies Corp., has not yet commented on the matter. The news comes as Elon Muskâs enterprises experience significant valuation gains. Teslaâs stock has climbed 42% since early November, propelling Muskâs personal fortune to $353 billion, according to the Bloomberg Billionaires Index. At $350 billion, SpaceXâs valuation would rival major publicly traded corporations, underscoring its growing dominance in the aerospace industry. Energy [Could This Tiny $1 Stock Be the Key to AIâs Future?]( Artificial intelligence is booming, [but thereâs one massive challenge: energy.]( Without it, AI will never scale. Thatâs why Microsoft, Tesla, and Google are signing multi-decade energy deals to fuel their growing data centers. [One tiny company, trading for less than $1,](is stepping up to meet this demand. Positioned at the heart of this energy race, [it holds the potential to power AIâs growth and capitalize on a 20-year bull market.]( With its innovative solutions and growing interest from major tech players,[this stock could be the investment opportunity of the decade.]( [Click here to get the full details on this energy breakthrough and how to invest.]( Movers and Shakers Janux Therapeutics, Inc. [JANX] - Last Close: $40.18 Janux Therapeutics stock is up 75% in premarket trade today following promising results from its prostate cancer treatment, JANX007, in a Phase 1a clinical trial. The drug showed high prostate-specific antigen (PSA) response rates and significant PSA declines across all doses, demonstrating both strong efficacy and safety. These results led to the selection of JANX007 for expansion trials targeting pre-Pluvicto second-line (2L) and third-line (3L) patients, addressing a major unmet need in advanced prostate cancer treatment. Pluvicto is an existing therapy delivering radiation to cancer cells, and JANX007's novel approach could provide a highly differentiated and broader therapeutic option. My Take: While it is still in the trial phase, this could be a major breakthrough and could potentially send Janux even higher in days to come. Keep this stock on your radar for long-term growth. Credo Technology Group Holdings [CRDO] - Last Close: $47.80 Credo Technology Group's stock is surging 34% in premarket trading due to outstanding fiscal Q2 earnings and strong forward guidance that exceeded expectations. The companyâs revenue of $72 million is up 64% year-over-year, surpassing the $66.5 million analysts had predicted. Adjusted earnings of $0.07 per share met analyst expectations. The surge is driven by higher-than-anticipated demand for Credo's connectivity solutions, particularly for AI deployments and deepening customer relationships, marking a key turning point for the company. CEO Bill Brennan highlighted that the second half of fiscal 2025 has exceeded their initial projections. For Q3, Credo expects revenue between $115M and $125M, significantly higher than analystsâ expectations of $86.04M. This strong performance, coupled with adjusted gross margins forecasted at 61% to 63%, has fueled investor optimism, pushing the stock sharply higher. My Take: The stock is up 160.07% YTD, and even though there are some challenges with regards to the firmâs profitability, the recent quarterly results are inspiring confidence. Make sure to keep your eye on this stock. Cheetah Net Supply Chain Service Inc. [CTNT] - Last Close: $1.87 Logistics and warehousing service provider CTNT has grown by more than 300% in premarket trading after announcing a strategic acquisition of TW & EW Services Inc., a California-based labor and logistics service provider. This acquisition strengthens Cheetah's position in the logistics sector by integrating TW & EW's expertise in general labor and logistics support services. The deal, valued at $1 million, includes a $200,000 cash payment and $800,000 worth of Cheetahâs Class A common stock. Once completed, TW & EW will become a wholly owned subsidiary of Cheetah, enhancing its capacity to deliver comprehensive supply chain solutions. Cheetahâs pivot from luxury vehicle trading to broader logistics and warehousing services has allowed it to capitalize on new market opportunities, particularly in transporting goods between the U.S. and China. Investors are optimistic about this acquisition's potential to streamline operations, boost revenue, and expand Cheetah's customer base, driving the significant premarket surge. My Take: This acquisition can be a game changer for CTNT, even though it has had a fairly lackluster show of late in the market and is struggling with profitability. Keep this stock on your wait-and-watch list for now. Future of Smartphones [Donât Miss This $0.26 Tech Stock Before It Moves Higher]( The smartphone market is being disrupted in ways no one saw coming. While major players focus on premium pricing, [one innovative company]( is rewriting the rulesâand itâs catching the attention of investors everywhere. With a staggering 32,481% revenue growth from 2019 to 2022, [this company has already helped millions save over $325 million]( while positioning itself for even greater expansion. Strategic partnerships with Amazon and Walmart are paving the way for its continued dominance in [a $1 trillion industry.]( [At just $0.26 per share,]( with an opportunity for up to 100% bonus shares, this is your chance to[Â]([get in on a company thatâs reshaping the future of smartphones.]( [Discover more about this revolutionary opportunity before itâs too late.]( * This is a paid advertisement for Mode Mobile Regulation A offering. Please read the offering circular and related risks at [invest.modemobile.com](. Everything Else - [Carlsberg]( finalizes its exit from Russia, transferring Baltika shares to local ownership. - An unexpected [GDP drop in South Africa]( highlights challenges from falling food production. - [Beijing retaliates]( against U.S. chip restrictions with export bans on gallium, germanium, and antimony. - [Apple]( faces Indonesia's demands with potential $1 billion supply chain investment. - [BlackRock]( expands into private credit with a $12 billion acquisition of HPS Investment. - [Millennium Management]( allocates $1.8 billion to Scopia Capital and NorthArrow Capital. - [ServiceTitan]( files for an IPO, eyeing a $502 million capital raise. Thatâs all for today. Thank you for reading. If you have any feedback, please reply to this email. Best Regards, â Adam Garcia
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