šŸ“Š Netflix Is Printing Cash

1) S&P 500ā€™s Sector Performance 2) Nancy Pelosi Is The GOAT 3) Is Palantir In A Bubble? and more!

In partnership with

Happy Sunday!

Iā€™ve already decided what tops my Christmas wish list: the Ferrari F80.

The F80 is the latest masterpiece from the Italian luxury brand and is the companyā€™s first hypercar in 11 years.

It features a V6 turbo engine paired with three electric motors.

And with nearly 1,200 hp, itā€™s easily the most powerful Ferrari ever built.

True to Ferrariā€™s focus on exclusivity, only 799 units will be made, each priced at $3.9M.

Over its production run, the F80 is expected to add $3.2B to Ferrariā€™s top line.

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

In todayā€™s newsletter:

  • šŸ“ˆ S&P 500ā€™s Sector Performance

  • šŸ’ø Dividends Every Month

  • šŸ Nancy Pelosi Is The GOAT

  • šŸ«§ Is Palantir In A Bubble?

  • šŸæ Netflix Is Printing Cash

Not subscribed yet? Sign up today!

šŸ“£ A Message From CompareCredit

2 Cards Charging 0% Interest Until 2026

Paying down your credit card balance can be tough with the majority of your payment going to interest. Avoid interest charges for up to 18 months with these cards.

Despite the usual market turbulence during an election year, the S&P 500 shows no signs of slowing down. 

Which sectors are leading the charge?

  • Unsurprisingly, the information technology sector takes the top spot with a 33% YTD return.

  • Perhaps unexpected, in second place is the utilities sector, which is up 29%.

  • The sectorā€™s return over the last year marks its best 12-month performance this century, per Barrons.

Whatā€™s driving utilities? 

  • Two key factors: lower interest rates, which drives investors toward dividend-heavy stocks, and higher energy demand needed to fuel the AI revolution.

As earnings season picks up steam, one trend to watch is companies increasing their dividends

  • For example, from this list, Taiwan Semi, Broadcom, Verizon, Altria, and Microsoft all recently raised their payouts.

  • When a company increases its dividend, it signals a commitment to shareholders and typically reflects strong cash flow needed to support the higher payments.

The beauty of dividend investing? 

  • You can strategically pick 12 stocks with staggered payout schedules, ensuring consistent monthly income from different companies.

Step aside, Warren Buffettā€”thereā€™s a new GOAT.

  • Her name is Nancy Pelosi.

While the market has been soaring, Congress is cashing in too. 

According to estimates from our friends at Quiver Quant, Congress has made around $133M so far this year.

Leading the pack is Pelosi, with an impressive $24.1M in profits

  • One of her biggest home runs? Nvidia

  • She bought call options in November 2023, followed by 10,000 shares in both June and July 2024.

  • Since her call option purchase, Nvidia has surged nearly 190%.

Thereā€™s expensive.

Thereā€™s Zurich, Switzerland expensive.

And then thereā€™s Palantir expensive.

The big data analytics company holds the highest Price-to-Sales ratio in the S&P 500, currently trading at 39x sales. This is higher than Nvidiaā€™s 35x.

Hereā€™s where it gets interesting though.

  • According to FinChat, Palantirā€™s two-year forward revenue growth is projected at +22%, while Nvidia expects +70%

  • In other words, Nvidia is estimated to deliver much more aggressive growth at a slightly lower multiple.

Valuation, though, isnā€™t just about revenue growth. 

  • Expanding margins, increasing profitability, and product breakthroughs all play a role. 

  • Palantir, a key beneficiary of the AI revolution, has seen rising profitability and strategic partnerships, driving the stock up 159% this year.

But can Palantir sustain this momentum?

  • Anything is possible, and so far, CEO Alex Karp has successfully hunted all bears in sight.

One thingā€™s for sure though. Itā€™s not cheap.

Netflix just pressed play on a blockbuster quarter.

The streaming giant reported strong Q3 2024 earnings on Thursday, pushing shares up 11% on Friday.

Hereā€™s the quick breakdown:

  • Earnings: $5.40 vs. $5.12 Est.

  • Revenue: $9.83B vs. $9.77B Est.

  • Global Paid Subscribers: 282.7M vs. 282.15M Est.

The quarter had plenty of highlights. 

  • Revenue grew 15%, operating margins expanded by 8 percentage points, diluted EPS increased 45%, and global paid memberships rose 14.4%.

  • Netflix continues to generate strong free cash flow, with $2.2B in Q3 and $7.1B over the last 12 months.

The company hit the high end of its full-year 2024 revenue forecast, projecting 15% growth, and exceeded its operating margin expectations, raising it to 27% from the earlier estimate of 26%.

  • For the first three quarters, view hours per member in owner households increased YoYā€”a key metric for member satisfaction.

  • The ad-tier membership also grew 35% QoQ.

It appears a sequel to the blockbuster is also in the books ā€” Netflix expects its growth story to continue into 2025.

šŸ’° Wealth Milestone. Elon Musk is set to become the worldā€™s first trillionaire by 2027 - CNBC

šŸ˜¢ Missed Gains. Stanley Druckenmiller said it was mistake selling his entire Nvidia stake - YT

ā˜•ļø Elite Espresso. Starbucks' new CEO, Brian Niccol, is cutting promotions to reposition the brand as a premium coffeehouse - YF

šŸ’¾ AI Sanctions. The U.S. is considering restricting Nvidia and AMD AI chip sales to the Middle East - BB

ā˜¢ļø Fission Fuel. Microsoft, Google, and Amazon are investing in nuclear power plants to power AI data centers - NYT

šŸš• Travel Takeover. Uber is reportedly considering the acquisition of travel technology company Expedia - FT

Presented by our sponsor, EarningsHub

Notable Companies Reporting Earnings This Week:

  • Monday: Nucor $NUE

  • Tuesday: General Electric $GE, Philip Morris $PM, Verizon $VZ, Raytheon $RTX, Lockheed Martin $LMT, General Motors $GM, Texas Instruments $TXN

  • Wednesday: Coca-Cola $KO, Thermo Fisher $TMO, AT&T $T, Boeing $BA, Tesla $TSLA, T-Mobile $TMUS, IBM $IBM, ServiceNow $NOW, Lam Research $LRCX

  • Thursday: S&P Global $SPGI, Honeywell $HON, UPS $UPS, CapitalOne $COF

  • Friday: Colgate-Palmolive $CL, AON $AON

I use EarningsHub to track earnings, estimates, and receive AI summaries of investor calls.

  • If youā€™d like an all-in-one earnings tool and see all other companies reporting, I definitely recommend you check it out!

The ultimate form of passive income?

Dividends.

Readers of The Dividendology Newsletter get tips on how to build a perpetually growing, perpetually cash flowing dividend portfolio.

Unlock financial freedom and join over 22,000 investors!

Click the button below to subscribe nowšŸ‘‡

Major Trades Published 10/14 - 10/18. Trades may be those of family members. [Source: 2iQ]

Buys

  • Michael McCaul (R)

    • Company: Aramark ($ARMK)

      • Amount Purchased: $200K - $500K

    • Company: Howmet Aerospace ($HWM)

      • Amount Purchased: $150K - $350K

    • Company: Intel ($INTC)

      • Amount Purchased: $115K - $300K

    • Company: Global Payments ($GPN)

      • Amount Purchased: $100K - $250K

Sells

  • Michael McCaul (R)

    • Company: Alphabet ($GOOGL)

      • Amount Sold: $200K - $500K

    • Company: American International Group ($AIG)

      • Amount Sold: $115K - $300K

    • Company: Sun Communities ($SUI)

      • Amount Sold: $115K - $300K

  • Kevin Hern (R)

    • Company: Citigroup ($C)

      • Amount Sold: $250K - $500K

  • John Hickenlooper (D)

    • Company: Chipotle Mexican Grill ($CMG)

      • Amount Sold: $100K - $250K

    • Company: Liberty Media SiriusXM Group ($LSXMA)

      • Amount Sold: $100K - $250K

Major Trades Published 10/14 - 10/18

Buys

  • Upstream Bio ($UPB)

    • Insider: Erez Chimovits (Director)

      • # of Shares Purchased: 825,000

      • $ Amount: $14,025,000

      • SEC Forms: [1]

  • Marvell Technology ($MRVL)

    • Insider: Matthew Murphy (Chairman of the Board and CEO)

      • # of Shares Purchased: 13,000

      • $ Amount: $1,009,190

      • SEC Forms: [1]

Sells

  • Squarespace ($SQSP)

    • Insider: Andrew Braccia (Director)

      • # of Shares Sold: 13,929,575

      • $ Amount: $647,725,238

      • SEC Forms: [1]

  • Ncino ($NCNO)

    • Insider: Jeff Horing (Director)

      • # of Shares Sold: 1,356,721

      • $ Amount: $48,869,633

      • SEC Forms: [1]

  • Constellation Brands ($STZ)

    • Insider: Robert Sands (Director)

      • # of Shares Sold: 119,274

      • $ Amount: $28,908,889

      • SEC Forms: [1]

How was today's newsletter?

I value all of the feedback that I receive. Let me know how I did so I can continue to make this the best investing newsletter available!

Login or Subscribe to participate in polls.

šŸ¤ Review of the Week

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author, paid advertiser, or partner and do not reflect the official policy or position of any other agency, organization, employer or company.

Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.

The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary.

THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORSā€™ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

The mention of Dividendology in our newsletter is provided as a courtesy to our readers and should not be construed as an endorsement of any product, service, or information provided by the sponsor or partner. Carbon Finance makes no representations or warranties, express or implied, about the accuracy, completeness, reliability, or suitability of the information contained in the sponsorā€™s or partnerā€™s materials or any related services. Any reliance you place on such information is strictly at your own risk. We are not liable for any loss or damage arising from your engagement with Dividendology or their content.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

Some of the links in this newsletter are affiliate links. This means that if you click on the link and purchase the item, we will receive an affiliate commission at no extra cost to you. All opinions remain our own.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.