Straight to your inbox from Keith himself!

*Trusted by tens of thousands of savvy investors and traders around the world every day

☕ Musk to naysayers: Pfffft!

Oct 24, 2024

Good morning! 👋

Funny how that works…

Tesla’s results have kicked today’s markets into gear, pun absolutely intended.

That and the fact that the computers together with high-speed traders shook enough of the weak money out over the past three days that buy programs are sweeping the floor.

Not for nothing, but the US 10YR yield is down a skosh today, too – and that means big traders can lever up to magnify their returns, a situation I explained in quite some detail earlier this week.

Here’s my playbook.

1 – Musk to naysayers: Pfffft!

As you know, I've been a staunch proponent of Team Musk (even though he can be one of the most mercurial CEOs on the planet), so I was delighted to see the profit beat and projection of at least 20% vehicle growth next year. (Read)

I'm not so keen to see Unka Elon get heavily involved in politics, but I certainly don't blame him.

There’s a lot at stake.

I think Tesla is 3-5X a few years from now.

Meanwhile, Wall Street analysts continue to get Tesla wrong just like they did Apple, Nvidia, Palantir and more.

Earnings per share: 72 cents, adjusted vs. 58 cents expected
Revenue: $25.18 billion vs. $25.37 billion expected and + 8% YoY

I have repeatedly encouraged you to view any weakness as an opportunity and I hope you’ve taken advantage of the situation.

OBAers: Please check your email or the OBA Portal if you haven’t already. I sent a Special Trade Alert earlier this morning regarding the potential for some quick Tesla profits.

Keith’s Investing Tip: I encourage every aspiring money maverick to learn the skills needed to trade around core investments like Tesla. Doing so can help boost profits, but also help reduce risk and magnify compounding depending on the strategies used. I believe that any investor armed with the right education and knowledge can beat Wall Street at its own game! (Learn More)

2 – Palantir + L3Harris = heck yeah!!

This is an awesome development and, now that I think about it, entirely logical.

L3Harris Technologies and Palantir Technologies have partnered to advance technology development and accelerate L3Harris' digital transformation by integrating L3Harris' sensors and systems with Palantir’s AIP to enhance decision-making and connectivity for defense. (Read)

In particular, the integration of L3Harris' WESCAM MX-20 system with Palantir's SIP improved target detection and situational awareness while reducing operator workload during live tests.

Reducing operator workload… that’s the key.

Most people haven’t got a clue how information intensive today’s battlefield is and, frankly, I hope they never learn firsthand.

Palantir is not only about defense, but about AI – something you’ve heard me say repeatedly.

It’s also, as the venerable Charles Payne pointed out yesterday when we chatted, the best performing AI stock of the year. (Watch)

3 – Novo Nordisk may be an Alzheimer’s drug, too

A new analysis of electronic health records found that Novo Nordisk’s Ozempic may reduce the risk of Alzheimer’s disease. (Read)

According to findings, Ozempic’s active ingredient, Semaglutide, was linked to a 40% to 70% reduction in the risk of a first-time Alzheimer's diagnosis in patients with Type 2 diabetes, compared to seven other diabetes medications.

Honestly, I am not surprised.

Recent research suggests that systemic inflammation may play a role in the development and progression of Alzheimer's disease.

Other studies have shown that systemic inflammation can lead to the release of pro-inflammatory mediators, which can cross the blood-brain barrier and induce neurotoxicity. This can ultimately affect the transport of amyloid beta (Aβ) proteins and increase their aggregation in the brain, which is a hallmark of Alzheimer's disease.

Additionally, epidemiological studies have suggested that inflammation outside of the central nervous system may promote neurodegenerative and Alzheimer's-specific pathology within the brain.

We’re on the cusp of customizable medicine (which I was just talking about as a newly emerging medical investment theme with the super savvy Kristin Scholar at the NYSE) – Watch.

My guess is AI dramatically accelerates our understanding of “off indicated” use which means that stocks like Novo Nordisk could still have a long way to run.

It’ll be interesting to see how the FDA reacts.

Novo Nordisk stock has returned +357.78% in 5 years versus a still super-respectful but far less 92.59% from the S&P 500.

4 – Nvidia expands in India but...

Nvidia expands partnerships in India to drive AI growth. (Read)

Nvidia has partnered with major Indian firms like Reliance Industries, Tata Communications, and Yotta to build AI and computing infrastructure. CEO Jensen Huang predicts India’s computing power will grow 20x this year, with the country shifting from a software exporter to an AI exporter.

The company also launched a Hindi language model, Nemotron-4-Mini-Hindi 4B.

With India aiming to grow its electronics industry to $500 billion by 2030, and Reliance Jio pushing AI democratization, Nvidia has significant opportunities ahead.

Nvidia stock has returned over 2,744% in the last 5 years, by comparison the S&P 500 has returned 92.77%.

Buy the best, ignore the rest!

MyPOV: This is a great development but one that concerns me. I’ve been in this game long enough to know that there is no such thing as coincidence and that the law of unintended consequences is very, very real. India is attending Putin’s BRICs and Friends conference as I type. So’s China. My guess is intelligence agencies from both countries are going to prioritize acquiring Nvidia tech by whatever nefarious means possible now that it’ll be out in the open so to speak. To quote legendary strategist Sun Tzu, “The supreme art of war is to subdue the enemy without fighting.”

Speaking of China…

5 - Chinese smartphone maker Oppo is playing Google

The Western media are reporting that Chinese smartphone maker Oppo is in regular talks with Google and Microsoft regarding AI. (Read)

If that were all there was to it, I’d say great. But comments from a man named Billy Zhang, Oppo’s president of overseas sales should set off alarm bells from here to Beijing.

Said Zhang (whose comments were translated directly, a rarity), “Google will also come to China to ask us, what needs and pain points do you have with your products? Let’s solve them together.”

What he’s really saying is that Google will come to China (because China is granting an audience and views Google as a pawn) and that solving problems together (will be solved only in China’s interest). The fact that he didn’t call out Microsoft in the same sentence suggests that Beijing thinks differently about the company, perhaps even realizes that it’s not a patsy.

I’ve seen this so many times over the years.

Chinese companies will ostensibly position deals like this as a partnership and Western execs will fall for it every time because they don’t know how the game is played.

I don’t know what to make of this from an investing standpoint just yet, but I have a sneaking suspicion that makes me think that Google’s looking at China the way it would like to rather than the way it is. 🤦