Humanoid Robots Bigget Than Evs, Retail Investors Buy $1B Nvidia But Institutions Sell, Microsoft Offers DeepSeek - Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META)

Humanoid Robots Bigget Than Evs, Retail Investors Buy $1B Nvidia But Institutions Sell, Microsoft Offers DeepSeek - Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META)
January 30th, 2025

Opportunities of Robot Humans Are Coming

This article is based on the general idea and not on a particular company. The TSLA stock chart will be used as an example of the concept. The chart of TSLA stock shows the release of TSLA earnings. It shows that TSLA stock is still below the support area at the time of writing despite the worst results. The RSI in the chart indicates that TSLA stock moved up from the oversold region. The chart shows that TSLA stock has increased significantly since the last buy signal of The Arora on November 6. Earnings of Tesla were very bad, worse than the consensus and whisper estimates. Tesla missed EBIT by 38%. Margin was the lowest in years. First, TSLA stock fell on the negative earnings, but then it rose on the humanoid robots and robotaxis. Musk said that the Optimus humanoid robot is a $10T opportunity. Tesla is planning to build Optimus faster than it built any of its previous products. In The Arora Report analysis, the analyzed products are humanoid robots and electric vehicles (EVs) and the former is a more opportunities than the latter. Musk also announced that unsupervised full self driving robotaxis will be available by June 2025. In The Arora Report analysis, the June timeframe is earlier than anticipated. There are big possibilities in the future in robotaxis and humanoid robots. The Arora Report will issue signals when it identifies high potential for generating high risk adjusted returns. Nearly all buying in TSLA stock is done by retail traders. Institutions are not buying TSLA stock. In The Arora Report analysis, Tesla's moonshots are turning out to be real than what institutions think. As full disclosure, TSLA is in The Arora Report's ZYX Buy Core Model Portfolio. In The Arora Report analysis, TSLA stock should be bought by those not in TSLA stock in the context of a properly diversified portfolio when TSLA stock declines in the buy area. Retail investors are also heavily investing in NVIDIA Corp NVDA stock. So far this week, retail investors have purchased more than $1 billion worth of NVDA stock. Prudent investors should note that institutions are taking advantage of retail investor buying and selling NVDA stock on up spikes. It should be noted that institutions still have a large position in NVDA. They are just following the prudent strategy of reducing risk in NVDA stock after DeepSeek. We told you earlier that we would be paying attention to conference calls from Meta Platforms Inc META and Microsoft Corp MSFT, especially regarding CapEx for AI. Meta is not backing off. Meta reiterated $60B – $65B of CapEx for the year. Microsoft is also not backing off. Microsoft is planning to spend $22 billion every two quarters for the next two quarters. Stargate is a project that is primarily backed by SoftBank Group Corp – ADR SFTBY, the big Japanese conglomerate. SoftBank is in talks for a $25 billion investment in OpenAI. If this investment takes place, SoftBank will become the biggest investor in OpenAI, throwing Microsoft out of the window. Such an investment shows that SoftBank has no fear that DeepSeek is going to be the end of OpenAI. To this moment, Microsoft has been mainly dependent on OpenAI. In a development worth monitoring, Microsoft is hedging its bets. After examining DeepSeek for using data from OpenAI without the permission of Microsoft, it has begun to offer DeepSeek to its customers. Initial jobless claims were 207K vs. 221K consensus. This data indicates that the jobs picture is better than expected. GDP data is inline with expectation. Investors should note this is a lagging indicator. We publish it because the market pays attention to GDP data. However, The Arora Report system is focused on leading indicators. Here are the details: The Adv. Q4 GDP came in at 2.3%, missing estimates of 2.3%. The Adv. Q4 GDP Deflator was 2.2%, missing estimates of 2.4%. Earnings will be released after the close today from Apple Inc (AAPL), Intel Corp (INTC), and Visa Inc (V). In early trade the U.S. market is up on news from overseas. Please scroll down. DJIA is not showing what is taking place in the early trade due to Caterpillar Inc (CAT) earnings that came out lower than expectations. Japan The BOJ has shrank its balance sheet by $500 billion through quantitative tightening. Europe The European Central Bank (ECB) has reduced its key interest rate by 25 basis points. This is inline with expectations. The Magnificent Seven of the Money Flows In the early trade, money flows are positive in GOOG, META, and TSLA. In the early trade, money flows are negative in AAPL, Amazon.com, Inc. (AMZN), MSFT, and NVDA. In the early trade, money flows are positive in SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust Series 1 (QQQ). The Momo Crowd And Smart Money In Stocks. Investors can gain an edge by tracking money flows in SPY and QQQ. Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil. The most popular ETF for gold is SPDR Gold Trust (GLD). The most popular ETF for silver is iShares Silver Trust (SLV). The most popular ETF for oil is United States Oil ETF (USO). Bitcoin Bitcoin (BTC.USD) is also rising with tech stocks during the rally. Protection Band And What To Do Now It is important for investors to look ahead and not in the rearview mirror. The proprietary protection band from The Arora Report is very popular. The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors. Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time. You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges. A protection band of 0% would be very bullish and would indicate full investment with 0% in cash. A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling. It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market. Traditional 60/40 Portfolio At this time, probability based risk reward adjusted for inflation does not support the extension of strategic bond duration to long duration. Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less. Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time. The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever Generate Wealth Newsletter. METAMeta Platforms Inc$688.13 1.72%Overview Rating:Speculative 50%Technicals Analysis 66 100Financials Analysis 40 100WatchlistOverviewMSFTMicrosoft Corp $414.71 -6.24%NVDANVIDIA Corp $118.91 -3.87%SFTBYSoftBank Group Corp $31.10 3.74%Market News and Data brought to you by Benzinga APIs

Shandor Brenner

Shandor Brenner is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.

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