GM and Happy Tuesday!
Are you ready to rumble? It seems like we are going to see a once-in-a-lifetime billionaire slugfest. Elon Musk has tweeted that his fight with Mark Zuckerberg will be live-streamed on X.
Aside from their physical tussle, the two billionaires are also duking it out online as Zuckerberg tries to dethrone X, with an upgrade to Meta’s Threads.
In other news, we have Google enticing workers to return to the office with a discounted hotel stay. And you might want to lock in your gains in the recent stock rally since analysts are saying we are not out of the woods yet.
Go grab your popcorn. 🍿
MONEY MASTERY BRIEF
- Elon vs. Zuck Slugfest is Still On
- Threads Upgrades in the Pipeline
- Wall Street Analysts Sound the Alarm
- Do You Want to Stay in a Google Hotel?
🥋 Elon vs. Zuck Slugfest is Still On
Have you been dreaming of the long-awaited Elon vs. Zuck cage match? Tech Mogul Elon Musk confirmed that the match is still on. And you don’t have to bid for front-row tickets since it will be live-streamed on Twit… err X. The proceeds of the match will be given to a charity for veterans.
Elon said that he is preparing for the match by lifting weights all day. Since he does not have a lot of time, he brings his weights to the office. He even posted a video curling a 45-pound dumbbell like it was nothing.
Mark countered with a jab on Threads and said that he is ready, but he is not holding his breath. He also launched a right hook by pointing out that streaming should be done on a more reliable platform that can actually raise money for charity. His retort points to Meta’s platform’s tested fund-raising features, which X lacks.
Now for the most important question – do you think bets will be made in DOGE?
⬆️ Threads Upgrades in the Pipeline
In the 1989 movie Field of Dreams, actor Kevin Costner’s character said, “If you build it, they will come”. Mark Zuckerberg created Threads as a counter to Twitter. Subscribers came in droves, but keeping them was a different story. Engagement on the platform has tapered off as users were dismayed with its lack of features.
Meta’s new baby lacks web access, which is popular for people who want to check their social media while working. The app lacks an easy way to find past posts and trending topics. But those who are rooting for Mark will be delighted to know that upgrades to address these issues are on the way.
However, it is not known if the upgrades will allow Threads’ users to watch the live stream of Elon and Zuck’s slugfest.
⏰ Wall Street Analysts Sound the Alarm
The market has been exceeding expectations and has been gaining 18% since January. However, those Lamborghinis might have to wait. Four prominent names in the financial industry are sounding the alarm that we might be heading into a bubble. Oh, boy.
- JP Morgan (NYSE: JPM). The bank’s top quant Marko Kolanovic is warning that the AI hype is creating a stock bubble. He noted that having 25% of the S&P 500 index concentrated in the top 7 firms is a strong indicator of an impending doom and gloom scenario.
- Wells Fargo’s (NYSE: WFC) global market strategist Scott Wren is still wary of an inflation rebound due to economic pressures, like a strong labor market. He believes that sectors behind the rally are vulnerable to pullbacks. On the brighter side, he expects the S&P 500 to end the year at 4,600-4,800, which is above present levels.
- BlackRock (NYSE: BLK), the largest asset manager in the world, is predicting a “roller coaster” inflation and is also expecting volatility. High inflation would raise the cost of operation, which could slash margins. At the same time, lower inflation also means lower prices for products and services, which also hurts profits.
- Rosenberg Research’s head David Rosenberg is not optimistic about the current rally and described it as “FOMO-based”. In short, buy big green candles and get shanked by big red ones.
Aren’t you dizzy yet with the flip-flopping predictions?
🛌 Do You Want to Stay in a Google Hotel?
Do you dread the commute to and from work? You are not alone; Google employees are finding it challenging to go back to the office. But Google is trying to entice their staff by giving out special discounts to their on-campus hotel, inside the Mountain View office. The tech company is marketing it as a time saver.
“Just imagine no commute to the office in the morning and instead, you could have an extra hour of sleep and less friction“.
However, the search engine’s personnel are not so enthusiastic about the deal. One employee pointed out that $99 a night accommodation is more than what she pays for in her current apartment. Another thought it would have been better if the price was in the $60 range.
It must be a bummer to work for a tech company whose services are being used by remote workers, yet you are required to go to the office.
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🦉 Quote of the Day
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Warren Buffet gave this quote to Berkshire Hathaway’s shareholders in 1989. It signifies that doing your homework is part of the game. You buy because it is a good deal and the company has a bright future.
🔢 The Big Number
$150 Billion – is the value of Apple (NASDAQ: AAPL) shares held by Warren Buffet’s Berkshire Hathaway, Inc. (NYSE: BRK.A). The Oracle of Omaha’s company holds 915,560,382 shares of the tech giant. This accounts for more than 46% of Berkshire’s equity portfolio. Apple has announced a dividend payout of $0.24 per share, which would net the Nebraskan firm more than $200 million.
Ever wondered what happened to Forrest Gump’s shares?
♨️ Trending News (TL;DR)
Alibaba (HKG: 9988) launches its own AI called Tongyi Qianwen. It is a multi-lingual chatbot that can communicate in Chinese and English. It is expected to compete with Meta’s AI and OpenAI’s ChatGPT. Alibaba’s AI has 7 billion parameters. Parameters refer to an AI’s capability to learn and understand. Full story
Lucid Group, Inc. (NASDAQ: LCID) has announced price cuts for its electric luxury vehicles. Lucid Pure, its cheapest model, will be sold for $82,400, a big drop from the original price of $92,900. According to the company the move is “intended to capitalize on the increased brand awareness to drive demand and deliveries.” Full story
Microsoft’s (NASDAQ: MSFT) OpenAI investment eliminates Cortana. The upcoming Windows 11 update will kill the smart assistant app, as the tech company pivots towards Bing Chat, which is powered by ChatGPT. Microsoft has over $10 billion invested in OpenAI, the creator of ChatGPT. Full story
X/Twitter takes over a user’s “@music” account. The account was created in 2007 by software developer Jeremy Vaught and has around 500,000 followers. X’s terms of service allow the company to take a username. X was “kind enough” to port over followers to Jeremy’s new account, “@musicfan”. Full story
Nikola‘s (NASDAQ: NKLA) shares dived more than 25% after the electric truck maker named its fourth CEO in four years. This puts doubts on the company’s ability to survive in the next 12 months. Nikola’s third-quarter revenue forecast is between $18 million to $28 million, far from the estimates of $34.5 million. Full Story
📊 Must See Chart
Rektember is just around the corner. There is a belief in trading circles that September is the worst for stock returns. The chart shows the S&P 500 average returns since 1928, and September looks bad. Some analysts attribute this to investors cashing in at the end of summer. Another theory is that mutual funds cash in to harvest tax losses.
💭 Closing Thoughts
While it is interesting to watch how two billionaires will fare inside the ring, we also have to think that investing is like entering an arena. You don’t know if you are going to steamroll your way to millions or be pierced by big red candles. So always be on the lookout for the latest news and data to make the best decisions.
We don’t want to keep you, but we have a quick question:
Do you think Elon Musk and Mark Zuckerberg will push through with their fight?
Reply YES or NO to this email and let us know! 📨
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