📈 AI Showdown: Palantir vs. Microsoft

Good morning.

⚡ The Fast Five → Bitcoin surges past 80k, Consumer sentiment rises, DraftKings loses $250M, Booking.com cuts jobs in reorg, Microsoft's next big move

🔎 Market Trends → S&P 500 breaks 6,000 level as Trump and Fed-fueled rally advances; US Futures Extend Post-Election Rally

And now…

⏱️ Your 5-minute briefing for Monday, November 11, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Post-Election Bump Sends Stocks to Record Highs—Investors Eye Growth

The Dow closed up 0.6% at 43,989, the S&P 500 rose 0.4% to 5,995.5, and the Nasdaq inched up 0.1% to end at 19,286.8. Weekly gains soared as investor confidence rallied post-election.

The Big Picture:

Markets cheered Trump’s return to the White House, with all major indexes hitting record highs by week’s end. A robust tech and utility rally helped drive the Nasdaq up nearly 6% for the week, a notable signal of investor enthusiasm for sectors that may thrive under expected pro-business policies. The Federal Reserve’s recent rate cut (down 25 basis points after a 50-point cut in September) is also adding fuel, lowering borrowing costs and potentially spurring corporate investment.

While WTI crude dropped 2.6% to $70.45/barrel as supply disruptions eased, gold fell 0.6% to $2,690.80. These declines suggest lower safe-haven demand as economic optimism rises.

Market Movers:

• Axon Enterprise (AXON) +28.7%: Led the S&P 500 with a standout earnings beat, raising its revenue outlook and capitalizing on demand for public safety tech.

• Fortinet (FTNT) +10%: Nasdaq’s top gainer after strong Q3 results, as cybersecurity demand grows amidst heightened digital threats.

• Tesla (TSLA) +8.2%: The electric vehicle giant gained on speculation that Trump’s win could mean favorable policies, driving market cap above $1 trillion.

• Airbnb (ABNB) -8.7%: Tumbled on disappointing earnings, struggling to keep up with forecasts as post-pandemic travel slows.

What They’re Saying:

"Markets are signaling optimism for a policy environment that may prioritize growth and reduce regulatory burdens," one analyst observed, seeing gains in sectors like technology and utilities as a reflection of this sentiment.

WHAT WE’RE WATCHING
Events

• Wed. Nov. 13: Bureau of Labor Statistics - Consumer Price Index - 8:30am

• Why You Should Care: Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

Earnings Reports

• Today: Live Nation, Grab Holdings, Monday.com, Aramark

• Tomorrow: Home Depot, Astrazeneca, Shopify, Spotify, Tyson Foods

MARKET BRIEF
Leading News

Palantir vs. Microsoft: Which AI Has More Upside?

Why it matters:

AI is rewriting the rules of tech investing. Knowing which giants will lead the pack could drive big returns in the years ahead.

Zoom Out:

Palantir (PLTR) and Microsoft (MSFT) have both made bold moves in the AI space, but their approaches — and the resulting growth trajectories — are vastly different. Palantir, known for aggregating and analyzing vast datasets, is a favorite among government agencies and large enterprises for its platforms like Gotham and Foundry. This dominance, combined with a booming demand for generative AI tools, sent its stock surging over 170% this past year.

Microsoft, on the other hand, is using its sheer scale to fuse AI across its ecosystem. With stakes in OpenAI, a frontrunner in generative AI, Microsoft’s integration of AI into Office, Azure, and Bing is keeping it competitive in cloud and productivity software — areas with steady, predictable growth.

Deep Dive:

• Palantir’s High Expectations: With anticipated 26% revenue growth in 2024 and a compound annual growth rate (CAGR) of 23% through 2026, Palantir’s numbers are flashy. Yet, at 186 times next year’s earnings, the stock’s valuation hinges on future performance — a high-risk bet for investors chasing AI hype.

• Microsoft’s Stability with AI Upside: Microsoft’s CAGR of 15% in revenue and earnings through 2027 is strong, though not as rapid as Palantir’s. But its 27x earnings multiple signals a more sustainable valuation. Microsoft also gains potential windfalls if regulatory actions trim Google’s influence in search.

Market Pulse:

“AI’s not just a product; it’s the future of every platform,” said Satya Nadella, Microsoft CEO.

Bull’s Take:

Microsoft’s diversified growth and steady returns make it the safer pick for sustained AI exposure, while Palantir appeals to those eyeing fast, volatile gains. Bottom line: Play it smart with Microsoft or buckle up for Palantir’s rollercoaster.

Headlines

• Consumer sentiment rises again as inflation pressures ease (link)

• Xi Jinping Courts US Allies To Counter Trump's Trade Threats (link)

• How does a gambling site lose money? DraftKings just lost $250 million in revenue (link)

• American Freight closing all stores amid parent company's bankruptcy filing (link)

• Booking.com Parent Eyes Job Cuts Amid Larger Reorg Plan (link)

• Fintechs Upstart and Toast soar on earnings (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin surges to record high on Trump bets (link)

• Solana Joins $100B Club, Hitting Nearly a Three-Year High Above $210 (link)

• a16z crypto says tokens will likely be 'legitimate and lawful' under new regulations (link)

DAILY SHARE
On the Socials