An AI Stock Soars By 40% After a Blockbuster Earnings

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JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, An AI Stock Soars By 40% After a Blockbuster Earnings As a bullish signal for the economy, Walt Disney reported a strong earnings quarter that saw a better-than-expected 1st quarter earnings. Cost-cutting efforts boosted Disney’s earnings, but revenue was basically flat. But it was music to Wall Street’s ears when Disney said it is on pace to meet (or surpass) its at least $7.5 billion cost-cutting program by fiscal 2024. And it could lead to a whopping 20%+ gain in its fiscal 2024 earnings. What’s more, Disney announced its $1.5 billion stake in Fortnite’s studio, Epic Games, and launch its flagship ESPN streaming service in fall 2025. As a result, shares jumped by about 7% after the bell. Bob Iger, CEO of Disney (Photo: Getty Images) Disinflation + growth: So far, the economy is behaving just the way Wall Street dreamed of. Namely, the economic growth is above the historical trend with the GDP growing at an annualized pace of 4% in the fourth quarter, while inflation continues to fall down. There’s a little sign of a recession that everybody thought was a base case a few months ago. Best of all, the growth shows a lot of stickiness that looks durable over the next few weeks. The bullish case could become even bigger once the central bank starts cutting rates. - “The good news has come in, and the U.S. economy is continuing to show incredible robustness,” said Nancy Curtin, chief investment officer at AlTi Tiedemann Global. “At the same time, we still see signs of disinflation” and “sticky growth,” which is a “positive backdrop for the Fed at some point to cut interest rates this year.” The stock market keeps on churning out gains despite the change in rate cut forecasts. Analysts originally expected the first rate cut to happen in March. Fed Chair Jerome Powell pushed back against this sentiment in his CBS’s 60 Minutes interview. Other Fed officials echoed Powell’s comments. So, the odds of a rate cut in March has plummeted. But it did nothing to stop the rally for now. The AI frenzy continues: Arm Holdings reported its result yesterday, and its blockbuster profit forecast fro the current quarter sent its stock price soaring by as much as 41% in extended trading. The company expects earnings of between 28 cents and 32 cents for revenue while analysts only expected 21 cents per share. Arm licenses much of its chip designs for virtually every smartphone and many PCs, but it also sells licenses its CPU designs to run AI. That business is booming, leading Arm to issue higher guidance than Wall Street forecasts. All in all, the earnings season has been superb except for some cases. It was better than what analysts expected, and technology companies showed little signs of slowing down, especially these with AI technologies. We will see whether it can translate to another leg in the current rally. Top Stock To Own In The Clean Energy Era (And Collect Fat Dividends) Today’s Stock Pick: Brookfield Renewable ([BEPC]( This is the stock to own right now! The reason is simple – yes, clean energy is all the rage now. But it is no longer an “ideological” pursuit because it has become economically cheaper than “dirty” energy. In six short years, the cost of solar energy ($/MWh) plummeted to be ~40% cheaper than coal and gas. Ditto for onshore wind. Solar and onshore wind costs are now below what gas used to cost back in 2016: (Source: Brookfield Renewable) America is a capitalist, and it is good business to be in renewable energy. Brookfield Renewable is a company that owns a group of renewable assets. And want to know how explosive the renewable energy market is? Corporations bought a record 31.1 GW of clean energy through power purchase agreements (PPAs) in 2021 which was nearly a 24% growth from the previous year. And believe it or not… The PPA volume grew by 8-fold in just five years! (Source: Brookfield Renewable) Get paid now: You don’t need to hope for the stock price to rise. Why? Brookfield Renewable pays out fat dividends. It currently yields about 4.06%, which is high because the company is growing its cash flow rapidly. Since 2000, Brookfield raised its dividends by 6% CAGR. (Source: Brookfield Renewable) This is a powerful combination for a stock. Many dividend stocks with this much of a dividend growth would trade with a lower yield. Why? Investors anticipate future dividend growth. But you can enjoy a 5.11% yield right now, and it will continue to expand over the years. That’s a rare scenario! Bottom line: Brookfield Renewable operates in the red-hot industry of renewable energy, and it offers a massive dividend yield of about 5.11%. This yield could only continue to grow because of its aggressive investments to grow its cash flow. If you are looking for a safe stock with a good upside, Brookfield Renewable is the stock you absolutely need to own right now. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](