“The So-So Seven”

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, “The So-So Seven” What a day on Wall Street. The Nasdaq plunged 3.64% yesterday for the worst day since 2022 after the earnings reports from Tesla and Alphabet. Investors were alarmed that Alphabet’s YouTube revenues missed estimates just as the company poured more money into AI initiatives. Tesla’s earnings fell below the expectations and delayed its Robotaxi event. So, investors are starting to wonder if these Big Tech companies can generate revenues from AI fast enough to justify their massive investments. - “Investors are finally waking up to all that AI spend and realizing it is much more of an expense right now rather than a revenue generator,” said Peter Boockvar at The Boock Report. In fact, there’s a new nickname floating around on Wall Street for the Magnificent Seven stocks: The “So-So Seven.” Simply said, the expectations were sky-high for this earnings quarter. In the past, these Big Tech companies beat big expectations with ease. Alphabet and Tesla may have signaled that other Big Tech companies could struggle to deliver big-time results to justify the AI frenzy. - “The market is not impressed with the start of earnings season for the mega tech stocks,” said Kathleen Brooks, research director at XTB. “There was a lot resting on these results and we don’t think that they give clear answers to questions about the effectiveness and profit potential for AI right now.” Kathleen Brooks, research director at XTB (Photo: XTB) What’s more, the timing might play a factor in the tech rout. Investors began rotating to smaller-cap stocks after the positive June CPI reading. Disappointing earnings results may have accelerated the rotation. - “Tech’s problem isn’t just that earnings are less than perfect, but the group is still caught up in the violent rotation trade that kicked off with the June CPI,” said Vital Knowledge’s Adam Crisafulli. - “Many assumed the anti-tech rotation would be ephemeral and the fact it’s proving durable is compounding anxiety toward the group and spurring additional selling pressure.” Apple, Microsoft, Amazon, and Meta Platforms will report their results next week, which Wall Street is anxious to see them. Jose Torres at Interactive Brokers doesn’t believe that the current pullback is close to be over. Of those S&P 500 companies that already reported results, profits beat analyst estimates by the smallest margin since the end of 2022. - “Yesterday we wrote that a 10% to 15% correction was in the cards this quarter, historically the worst period of the year,” said Jose Torres at Interactive Brokers. - “This quarter, the valuation concerns are paired with front-loaded gains, irrational exuberance, a high bar for earnings estimates and a presidential election.” This Company Simply Cannot Stop Growing Today’s Stock Pick: Remitly Global (RELY) Remember Western Union and Moneygram? These companies used to be the to-go services for people to wire money across countries. But these companies are quickly becoming dinosaurs. Fees are too high, and their technologies are too slow. Enter Remitly. It’s a new software company that is ready to disrupt the industry of cross-border payments for remittances. The momentum is tremendous. In the first quarter, active customers skyrocketed by 36% to 6.2 million. As a result, its Q1 revenue grew 32% year over year. (Source: Remitly) Its opportunity is simply massive. The company said it is operating in a $1.2 trillion TAM. There were about $1.8 trilllion remittances sent last year – or 3% to 5% of GDP for low and mid-income countries. But about 50% of US immigrants are underbanked. And they paid about $3,000 a year on average for financial services fees and interest paid. What’s more, it is difficult to send money across borders. It takes about 3 to 5 business days to transfer. These stores are often located in unsafe locations. Need customer support? Good luck! Despite all of these things, competitors take 5-7% in fees – not counting hidden FX rates where they profit from a small spread. Remitly wants to make it super easy to send money. It holds over 3.7 billion bank accounts and 690 million mobile wallets. There are about 395,000 cash pickup locations and home delivery is also available. The majority of transactions are disbursed in minutes. The total cost? Just ~2% average cost to send. The irresistible value proposition led to explosive revenue growth for Remitly. The company had 30%+ year over year growth since 1Q23, which makes it one of the most exciting stocks to own right now. (Source: Remitly) Guidance: The momentum is expected to continue as the company forecasted its 2023 revenue to post 32% to 35% year over year growth. (Source: Remitly) Plus, BlackLine is still relatively young with only a $2.95 billion market cap. In comparison, Salesforce is at $248 billion. So there’s a lot of growth in the next five to 10 years. Buy the dip: Investors were unhappy with BlackLine’s recent growth slowdown. Its total revenue growth rate was 13% in 2023 when it was growing 20%+ annually in the prior years. However, the company has set a medium-term growth target of 20% to 25%, so it is your chance to get in while the company accelerates its growth. Don’t miss out on this steady, compounding machine that can easily turn into a ten-bagger in the next decade. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](