🚨 Don't Sleep On This Market Signal

April 26, 2025 | Read Online | Subscribe

The median pay for CEOs rose to a record $16.8 million in 2024, according to Reuters.

Do they deserve that kinda money? Probably not. Hit reply and let us know what you think.

What we've got in this edition:

Wealth breakdown. See how wealth is distributed among US households.
Stock Market Reversal. A market indicator that has 100% accuracy was just triggered.
Go Big or Go Home. Stock pick #1 went from -$106M to $264M in profit in just one year. Stock pick #2 has crazy upside potential.

DISCLAIMER: The content in this newsletter is not monetary advice; it is for educational and informational purposes only. Stocks can be risky and speculative. Please do your own research before investing.

Week of April 21, 2025

▲ S&P 500	5,525.21	+6.43%
▲ Nasdaq	17,382.94	+9.19%
▲ DOW	40,113.50	+4.13%
▲ FTSE 100	8,415.25	+1.69%
▲ Bitcoin	$94,976.04	+11.53%
▼ Ethereum	$1,800.78	+13.50%

*Stock data as of market close on April 25, 2025. Cryptocurrency data as of 2:00pm PT.

Markets

Megacap tech carried US stocks higher for the week.
- Alphabet ($GOOGL): +7.37%
- Amazon ($AMZN): +9.23%
- Nvidia ($NVDA): +9.59%
Bitcoin started the week off at a low of ~$85k and has showed sustained upward price momentum throughout the week.
Market sentiment has shifted from Extreme Fear to Fear as overall stock prices have stabilized at their 50-day moving average.

Earnings

Tesla ($TSLA)
📉 EPS: Adjusted $0.27 per share, below the $0.39 projected by analysts
📉 Revenue: $19.34 billion, under the $21.11 billion forecast

IBM ($IBM)
📈 EPS: Adjusted $1.60 per share, above the $1.43 projected by analysts
📈 Revenue: $14.54 billion, above the $14.39 billion forecast

Alphabet ($GOOGL)
📈 EPS: Adjusted $2.81 per share, above the $2.01 projected by analysts
📈 Revenue: $90.23 billion, above the $89.15 billion forecast

See full earnings calendar here.

Economic Reports

Homebuilder sentiment slumps due to tariffs. Material costs jumped 6.3% for 60% of builders, adding $10.9K per average home as construction headwinds multiply.

Credit card delinquencies signal economic warning. Consumer credit card debt and missed payments rose to concerning levels.

Here’s the breakdown of the $148 trillion in total US household wealth in 2024:
👑 The richest 1% of households own 31% of US wealth
👔 The wealthiest 10% of households account for 67% of US wealth
🥡 The bottom 50% of households own just 3% of US wealth

📊 CHART

⁉️ What is the Zweig Breadth Thrust? It's a bullish technical indicator often used to identify potential trend reversals and assess market sentiment (it also has a 100% accuracy rate).

🧮 How is it calculated? The indicator takes the 10-day moving average of the number of advancing stocks across the market and divides it by the number of advancing stocks plus the number of declining stocks.

💡 Why does it matter? The Zweig Breadth Thrust has a perfect record of predicting market gains 6 and 12 months after it appears. Since it was recently triggered, this means investing in the S&P 500 right now will (probably) make you some money in the next 6-12 months.

📈 Stock Pick #1

$GEV (GE Vernova)
📆 Publicly traded since 2024 (spun off from General Electric)
💰 Specializes in decarbonization and renewables
📍 Headquarters in Cambridge, Massachusetts

Financial Green Flags

Based on Earnings Report:

✅ Net income is up 295% Year-over-Year

✅ Diluted EPS are up 293% Year-over-Year

✅ Operating income is up 1991% Year-over-Year (not a typo)

Things to Consider

💡 The company miraculously converted last year’s $106M loss into a $264M profit.

💡 It announced a $600 million investment in U.S. factories and facilities over the next two years (manufacturing's coming back, baby) to meet the surging electricity demands.

💡 Despite forecasting up to $400 million in tariff-related costs for 2025, GE Vernova is projecting revenue between $36 billion and $37 billion and free cash flow of $2 billion to $2.5 billion.

The Bottom Line

GE Vernova's solid financials, strategic investments, and confidence in the face of unstable macroeconomic conditions make it an attractive investment. Its financial outlook is especially refreshing since many companies have pulled their forecasts due to tariffs.

📈 Stock Pick #2

$CRWV (CoreWeave)
📆 Publicly traded since 2025
💰 Specializes in cloud computing for AI
📍 Headquarters in Livingston, New Jersey

Financial Green Flags

Since CoreWeave went public recently, it hasn't published earnings yet. Here's some financial data we do have:

✅ CoreWeave reported a 737% increase in revenue in 2024

✅ Projections indicate continued growth, with expectations of 156% and 120% increases in 2025 and 2026, respectively.

Things to Consider

💡 CoreWeave gets early access to cutting-edge GPU technology due to its relationship with Nvidia. This enhances its competitive edge in AI infrastructure.

💡 The company secured a significant $11.9 billion contract with OpenAI to provide computing power for AI model training and deployment (OpenAI also directly invested $350 million in CoreWeave).

The Bottom Line

While we have limited financial data on the company, it has a lot of growth potential due to its strategic partnerships (e.g., Nvidia and OpenAI), technological advancements (operates 32 data centers equipped with over 250,000 Nvidia GPUs), and bullish analyst sentiment (price targets range from $43 to $54). You could invest now and enjoy some serious gains (or lessons in risk management), or you could wait until the first earnings report to get an official look at the company's financials.

🤖 Artificial Intelligence

Google Research unveils model that can ‘talk’ to cells. The open-source model family lets researchers ask cells specific questions — and receive answers in plain English, an innovation that could boost drug discovery and personalized medicine.

💾 Electronics

Chinese engineers claim they’ve just developed the world’s fastest flash memory device. It’s 100,000x faster than current tech, performing operations in as little as 400 picoseconds (one picosecond = one trillionth of a second).

🦾 Robotics

UK startup Open Bionics revealed (what it claims is) the world's most advanced bionic arm. It's the first fully waterproof prosthetic hand on the market and is able to function while detached from the user.

Equity Crowdfunding

Invest in RISE Robotics, the company that's electrifying heavy machines (goodbye oil and diesel). Investing round closes on Apr 30 @ 11:59 PM ET.

Highlights:
1️⃣ Official 2025 GUINNESS WORLD RECORDS™ holder for the World's Strongest Robotic Arm Prototype
2️⃣ Built technology that is 3x faster, 3x more efficient and 20% lighter than hydraulics
3️⃣ $7.3M in total revenue, 225% YoY growth

Invest in Our Bond, the company that's using AI to democratize personal security (investing round closes on Apr 30 @ 11:59 PM ET).

Highlights:
1️⃣ Revenue grew 5.2x to $7.2M in 2023
2️⃣ Pioneering transformation of a $438B personal security market with AI-powered platform
3️⃣ Signed deal with a global brand that aims to offer Bond to its ~200M customers worldwide

Note: If you're serious about investing in any of these startups, do a Porter's Five Forces Analysis first.

Venture Capital

⛓️ Chainguard, a software supply chain security startup, raised $356M at a valuation of $3.5B.

💾 Supabase, an open source database developer, raised $200M at a valuation of $2B.

💸 Altruist, a digital wealth management startup, raised $152M at a valuation of $1.9B.

Insights from Google Trends...

🎓 Search volume for “student loans” shot up by 700% on Apr 21:
➡️ The Trump Administration announced plans to start collections on defaulted student loans. Seems like a terrible idea. Most people are living paycheck to paycheck. And the economy right now? Trash.

🖍️ Search volume for “food dye ban” shot up by 200% on Apr 22:
➡️ RFK Jr. wants to ban artificial food dyes. We're on board. The only problem is that if this actually gets passed, food prices might go up even more.