📊 Biggest Tech Layoffs In 2024

In partnership with

In partnership with

Happy Sunday!

Welcome to the +150 subscribers that have joined us in the last week. Glad to have you onboard.

As the market was closed this Wednesday due to Juneteenth, there was less news than usual. However, there’s still a lot to cover! Let’s dive right in.

Some key data bites from this week that you should know: 

• Activist investor Starboard purchased a $500M stake in Autodesk $ADSK.

• AMC $AMC announced its issuing $125M in new debt.

• Home prices hit a record high, with the median home reaching a price of $419,300.

• Warren Buffett bought $OXY for 9 straight days, increasing his stake to nearly 29%.

• Billionaire Steve Cohen is looking to raise $1B for a new AI hedge fund.

• MicroStrategy $MSTR acquired 11.9K Bitcoin $BTC for $786M.

• 29% of central banks intend to increase their gold reserves in the next 12 months.

• Nikola $NKLA announced a 1-for-30 reverse stock split.

In today’s newsletter:

• 🥙 Every Cava Is Worth $30M

• 🦾 Nvidia Reaches The Top

• 💼 Biggest Tech Layoffs In 2024

• 📊 S&P 500 Every Year

• 💰 15 Stocks Profit Margin

Is Cava the next Chipotle? That’s what investors are betting on.

The Mediterranean fast casual stock has been on a tear, climbing over 300% since its IPO.

And in 2024, it’s already up roughly 130%.

With a market cap nearing $11B as of 5/21, this translates to a $33M market value per store for each of its 323 restaurants.

Yet, each of these restaurants generates only about $3M in revenue per year on average.

It looks like investors are willing to pay a high premium to not miss the next hot restaurant stock.

During the week, Nvidia briefly became the most valuable company in the entire world.

Since then, it has rescinded its lead, but still closely trails Microsoft and Apple.

A decade ago, Nvidia’s market cap was a mere $10B. 

Since then, it's grown by a staggering 30,000%, marking a 300x return.

This meteoric rise has propelled Nvidia's market cap to $3.11T.

Here’s some interesting TTM figures to consider:

Nvidia:

• Market Cap: $3.11T

• Revenue: $80B

• Profit: $43B

Microsoft:

• Market Cap: $3.34T

• Revenue: $237B

• Profit: $86B

Apple:

• Market Cap: $3.18T

• Revenue: $382B

• Profit: $100B

The question on everyone's mind: What will Nvidia’s market cap be when it reaches the same profit as Microsoft and Apple?

This week, the online learning platform Chegg announced it would be reducing its global headcount by 23%, laying off 441 employees.

This move puts Chegg among the many tech companies making layoffs in 2024. 

According to Layoffs.fyi, 337 tech companies have laid off 98,834 employees this year. 

In 2023, a staggering 1,191 tech companies let go of 263,180 employees.

Tesla leads the pack this year with 14,500 employees affected by layoffs. 

It’s likely we’ll continue to see layoffs as companies look to restructure in an attempt to accelerate execution and reduce expenses.

📣 A Message From Our Sponsor

Two Forbes 30U30 Founders Transforming Mental Wellness

People scroll on their smartphones, they get depressed. Today, 25% of American adults are suffering from a diagnosable mental health condition.

After seeing their mother struggle with depression, Lee brothers, Forbes 30U30 winners, founded Aura, already with over 8 million users and 100K+ paying subscribers.

Aura quickly received investments from Silicon Valley’s legendary VCs as well as executives from Spotify, Youtube, Facebook, and Apple. And they’re just getting started.

For [x] more days, you can invest in Aura alongside 2000+ investors and back the future of mental wellness.

Only a few days left to invest.

Is this the most resilient stock market in history?

Despite record high interest rates, above average inflation, and other headwinds, the market continues to reach all time highs.

This week, the S&P 500 briefly crossed the 5,500 market for the first time ever before ending the session lower.

A few other interesting data points? It's been 378 days without a 2%+ drop, the longest since the financial crisis.

In addition, 10% of S&P 500 members hit 52-week highs this week, with 70% trading above their 200-day average, showing a strong upward trend.

Analysts are bullish too. Goldman Sachs raised its S&P 500 year-end target to 5,600, and said 6,300 was possible.

When it comes to investing, a robust net profit margin is crucial.

A high margin signals competitive strength, effective pricing strategies, operational efficiency, and skilled management.

It's essential to note that margins vary across industries; for instance, software companies often have higher margins than automobile companies.

To make informed comparisons, its better to focus on companies within the same industry and track how their margins evolve over time.

In this infographic, we see a broad range of profit margins: Visa boasts a 54% margin in payment processing, McDonald’s achieves 34% with fast-food chains, and Nike maintains a 10% margin in athletic apparel.

📣 A Message From Our Sponsor

The Rising Demand for Whiskey: A Smart Investor’s Choice

Why are 250,000 Vinovest customers investing in whiskey?

In a word - consumption.

Global alcohol consumption is on the rise, with projections hitting new peaks by 2028. Whiskey, in particular, is experiencing significant growth, with the number of US craft distilleries quadrupling in the past decade. Younger generations are moving from beer to cocktails, boosting whiskey's popularity.

That’s not all.

Whiskey's tangible nature, market resilience, and Vinovest’s strategic approach make whiskey a smart addition to any diversified portfolio.

Schedule a call with a Vinovest advisor to learn more.

Notable Companies Reporting Earnings Next Week:

• Tuesday (6/25):

  • FedEx $FDX, Carnival Corporation $CCL

• Wednesday (6/26):

  • Micron Technology $MU, Paychex $PAYX, General Mills $GIS, Jefferies Financial Group $JEF, Levi Strauss & Co $LEVI

• Thursday (6/27):

  • Nike $NKE

All of the companies that are reporting earnings next week can be viewed here.

Buys

• Richard Blumenthal (D)

  • Company: Sweetgreen ($SG)

    • Amount Purchased: $250K - $500K

• Mike Kelly (R)

  • Company: Cleveland-Cliffs ($CLF)

    • Amount Purchased: $50K - $100K

Sells

• Richard Blumenthal (D)

  • Company: Sweetgreen ($SG)

    • Amount Sold: $250K - $500K

• Mike Kelly (R)

  • Company: Vanguard Mid-Cap ETF ($VO)

    • Amount Sold: $15K - $50K

Buys

• Exxon Mobil ($XOM)

  • Insider: Maria Dreyfus (Director)

    • # of Shares Purchased: 18,310

    • $ Amount: $2,000,386

    • SEC Forms: [1]

• Biohaven ($BHVN)

  • Insider: Bruce Car (Chief Scientific Officer)

    • # of Shares Purchased: 30,000

    • $ Amount: $1,007,490

    • SEC Forms: [1]

Sells

• Applied Materials ($AMAT)

  • Insider: Gary Dickerson (President & CEO)

    • # of Shares Sold: 400,000

    • $ Amount: $98,579,111

    • SEC Forms: [1]

• Uber ($UBER)

  • Insider: Dara Khosrowshahi (CEO)

    • # of Shares Sold: 1,000,000

    • $ Amount: $70,421,300

    • SEC Forms: [1]

• Nvidia ($NVDA)

  • Insider: Jensen Huang (President & CEO)

    • # of Shares Sold: 480,000

    • $ Amount: $63,452,132

    • SEC Forms: [1], [2]

• Dell ($DELL)

  • Insider: William Scannell (Pres., Glob. Sales. & Cust. Ops)

    • # of Shares Sold: 160,271

    • $ Amount: $24,411,625

    • SEC Forms: [1]

🤝 Review of the Week