๐Ÿซง Stock marketโ€™s vibing. Hereโ€™s the tea โ˜•๏ธ


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May 18, 2025 | Read Onlineโ€‹

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Hey there, Tech Fizz here. The stock market is heating up again. Let's find out why.

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What we've got in this edition:

  • Recession, or no recession? See revised predictions for a recession this year.
  • IPO Success. Find out which company recently went public and if investing is a good idea.
  • AI Edge. A Chinese tech company slashed its AI training costs by 88%. So what?

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๐Ÿšจ Market News

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Week of May 12, 2025

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โ–ฒ S&P 500 5,958.38 +2.66%
โ–ฒ Nasdaq 19,211.10 +3.58%
โ–ฒ DOW 42,654.74 +0.96%
โ–ฒ Bitcoin $103,253.40 +0.42%
โ–ผ Ethereum $2,486.25 -0.51%

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*Stock data as of market close on May 16, 2025. Cryptocurrency data as of 2:30pm PT on May 17.

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Market Highlights

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  • The S&P 500 had its second-best week of the year, with stocks on the uptrend outnumbering fallers by 391.

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  • Bitcoin stayed above $100k this week and is hitting resistance at $105k. Following up on last week, here's proof that Steak n' Shake really is accepting Bitcoin as payment:

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  • Market sentiment keeps shifting deeper into GREED territory. Risk-on trading is back.

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Earnings Season

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Company EPS Revenue Insight
Rigetti Computing ๐Ÿ“‰ Miss ๐Ÿ“‰ Miss Weak revenue and earnings per share. Being outperformed by competitors like D-Wave Quantum.
Cisco ๐Ÿ“ˆ Beat ๐Ÿ“ˆ Beat Strong revenue and profitability. Taking advantage of AI demand.
CoreWeave ๐Ÿ“‰ Miss ๐Ÿ“ˆ Beat Extremely strong revenue growth, but big portion of revenue is concentrated among a few clients.

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See full earnings calendar here.

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Economic Reports

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๐Ÿ“‰ US and Chinese tariffs plummeted from 145% to 30% and 125% to 10% respectively.โ€‹
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Market Impact: โ†—๏ธ Bullish

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๐Ÿ”ฎ Because of the improved US/China trade deal, JPMorgan lowered its odds of a recession from 60% to 50%, while Goldman Sachs cut its recession forecast from 45% to 35%.
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Market Impact: โ†—๏ธ Bullish

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๐Ÿ›๏ธ Consumer prices rose 0.2% for the month of April, bringing the rate of inflation to its lowest since Feb. 2021.
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Market Impact: โ†—๏ธ Bullish

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๐Ÿš€ Alpha Picks

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eToro ($ETOR)

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Profile: Investment and social trading platform. IPO'd on May 14, 2025. Market cap of $5.19B. Last closed at $61.70/share.

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Financials: Revenue increased from $639 million in 2023 to $931 million in 2024. The IPO ended up 10X oversubscribed and shares soared 29.85% on opening day.

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Risk/Opportunity: The online trading space is highly competitive (think Robinhood and Coinbase), but the company offers a unique "CopyTrading" feature that allows users to replicate the trades of successful investors.

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The Verdict: Great opportunity to get in early, but remember to do your own research.

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CoreWeave ($CRWV)

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Profile: AI cloud-computing company. IPO'd on March 28, 2025. Market cap of $37.27B. Last closed at $77.90/share.

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Financials: Stock is up 95% since IPO. Revenue is up 420% YoY.

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Risk/Opportunity: Company is generating a lot of revenue but it's concentrated among just a few clients.

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The Verdict: Risk is manageable. This is your chance to ride the uptrend.

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โ›ฐ๏ธ Tech Terrain

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๐Ÿš€ High Impact | Alibaba Slashes AI Training Costs by 88%

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  • Background: Researchers at the company say theyโ€™ve built โ€˜ZeroSearchโ€™, a new technique that trains AI systems to search for information without linking up with external search engines.

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  • Investor Impact: Bullish for Alibaba and its strategic partners (Intel, Nvidia, Softbank). Creates competitive pressure for OpenAI, Anthropic, Gemini (and by proxy, Microsoft, Amazon, and Google, respectively).

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๐Ÿ“ˆ Moderate Impact | Airbnb Expands into Services and Experiences

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  • Background: Airbnb has introduced a new feature that allows travelers to book services and experiences.

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  • Investor Impact: Bullish for Airbnb as new feature is expected to bring in more revenue. Bearish for competitors like Groupon who connect subscribers with local merchants.

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๐Ÿ‘€ Watchlist | US Air Force Taps Rocket Lab for Launch and Return-to-Earth Mission

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  • Background: The flight will test Rocket Lab Neutron's reentry capabilities and the rocket's viability for global point-to-point cargo transportation objectives.

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  • Investor Impact: Bullish for Rocket Lab if it can demonstrate a successful flight test (sometime in 2026). Will be difficult to compete with SpaceX's Falcon 9 on cost.

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๐ŸŽฌ Startup Scene

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Geoship

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Have you also noticed that most new houses and apartment buildings look the same? It's kinda depressing.

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โ€‹Geoship is trying to change that.

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This startup is reshaping the future of housing by using sustainable materials, mirroring nature's patterns through geodesic design, and speeding up construction time by 10x.

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Highlights:

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โœ… Revolutionary Tech: Built the worldโ€™s first ceramic geodesic home, material science breakthrough.

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โœ… Product-Market Fit: $300M+ sales pipeline - over 1,800+ domes reserved with deposits.

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โœ… Enormous Market: Reshaping a $2.5T US housing market with deep impact across many categories.

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๐Ÿ—ฃ๏ธ Social Signals

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๐Ÿ’ก Top Google Searches (May 12 - May 16):

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Trend Search Volume Insight
"coinbase stock" โฌ†๏ธ 200% Coinbase was added to the S&P 500 and stock went up. Major milestone for crypto.
"coreweave stock" โฌ†๏ธ 200% CoreWeave reported revenue increase of 420% YoY.
"moody downgrades US credit rating" โฌ†๏ธ 400% US Government is paying $1.1T in debt interest, higher than defense spending.

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๐Ÿง  Twitter Social Sentiment Scorecard (May 12 - May 16):

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Trend Mood Insight
Robinhood ๐Ÿ“ˆ Bullish Robinhood acquired Canadaโ€™s largest crypto trading platform WonderFi.
Walmart ๐Ÿ“‰ Bearish Walmart CFO said stores are raising prices due to tariffs.
Sats ๐Ÿ“ˆ Bullish People are sharing receipts of using Bitcoin to buy a burger at Steak n' Shake (1sat=1satoshi, 1bit=100satoshis,1bitcoin=1M bits).

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๐Ÿ˜Ž Vibe Check

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Thoughts on this week's newsletter?

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โ€‹ ๐Ÿค‘๐Ÿค‘๐Ÿค‘ Keep 'Em Coming, Big Boy โ€‹

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๐Ÿค‘๐Ÿค‘ Not Great, Not Terrible โ€‹

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๐Ÿค‘ Weak Sauce โ€‹
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If this newsletter was forwarded to you and you thought it was ๐Ÿ”ฅ, you can subscribe here.

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Follow us on Twitter (yeah, we ain't calling it X).

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As always, thanks for reading and stay tuned for next week's edition!

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Tech Fizz Team, signing off ๐Ÿซก

113 Cherry St #92768, Seattle, WA 98104-2205
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