| | Good Afternoon! | Hey, everyone. It's Adam from Elite Trade Club. | Here’s what moved the market today. |
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| | | | Markets 📈 | The market felt the weight of a tech slump that pulled several stocks down today. The Dow Jones managed to weather most of the blow, adding nearly a percent to its total. | DJIA [+0.86%] S&P 500 [+0.16%] |
| Nasdaq [-0.38%] Russell 2K [+0.10%] |
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| | Market-Moving News 📈 | Healthcare | Moderna Revises 2025 Outlook as Vaccine Demand Declines | | Moderna has revised its 2025 revenue outlook, lowering its projection due to potential challenges ahead. The company now estimates earnings between $1.5 billion and $2.5 billion, marking a decrease from its earlier forecast. Most of this revenue is expected in the latter half of the year, driven primarily by its Covid vaccine and a recently launched RSV vaccine. | Several factors are influencing the updated guidance. Increased competition in the Covid vaccine market and declining vaccination rates have been notable contributors. Additionally, uncertainties surrounding manufacturing agreements and RSV vaccine recommendations are creating further complexities. Moderna has also highlighted a drop in its share of the U.S. Covid vaccine market over the past year. | To navigate these headwinds, the company plans to cut 2025 expenses by $1 billion, with additional cost reductions projected for 2026. Moderna aims to diversify its offerings, targeting 10 new product approvals over the next three years, including combination vaccines and updated Covid shots. | This adjustment comes as the company transitions from the peak demand for its Covid vaccine, which saw substantial revenue declines in recent years. With its focus on leveraging mRNA technology, Moderna is positioning itself for growth in a more competitive and evolving healthcare landscape. |
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| | Tech | Sonos CEO Resigns as Company Faces Challenges with New App and Strategy | | Sonos announced a major leadership shift with the resignation of its CEO, Patrick Spence, effective today. A board member, Tom Conrad, has stepped in as interim CEO, taking the helm during what has been a challenging period for the company. | The turmoil traces back to a rushed release of an overhauled app that left critical features missing, frustrating customers and triggering a cascade of issues. These missteps have impacted employee morale, sparked public criticism, and led to declining sales of key products. Despite efforts to address these concerns, including transparency initiatives and partnerships with crisis management firms, the board determined that further change was necessary. | As the company faces declining demand for its products, internal dissatisfaction, and lingering customer frustration, the leadership change signals a fresh approach. The interim CEO will be tasked with restoring trust among employees and customers while steering the company toward stability. | Sonos remains committed to its updated app and is actively refining it to address ongoing complaints. Meanwhile, the company continues to pursue its ambitious product pipeline, including new innovations aimed at solidifying its market position. With these adjustments, Sonos hopes to regain momentum and rebuild confidence in its brand. |
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| | Technology | | | The Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—have shaped the market’s narrative for years, delivering extraordinary returns for early investors. | But with their growth slowing, the spotlight is shifting to the next generation of market leaders. We’ve identified seven under-the-radar companies positioned to define the next era of growth. | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) | Backed by expanding market share, solid cash flows, and disruptive innovation, these stocks could deliver the kind of returns that made the Magnificent Seven household names. | Don’t miss your chance to discover tomorrow’s market leaders today. | Click here to access your free report: "These 7 Stocks Will Be Magnificent in 2025." | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) |
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| | Semiconductors | Nvidia Faces Delays as Data Center Customers Experience Issues with New AI Chips | | Nvidia's stock dropped on Monday following a report suggesting delays in the rollout of data center racks powered by the company's latest artificial intelligence chips. The issue reportedly centers around Nvidia's Blackwell chips, with some racks overheating and facing connection problems between the chips. These types of technical setbacks are not uncommon but appear to be causing significant delays for several of Nvidia’s major clients. | Among the affected companies are Microsoft, Amazon Web Services, Google, and Meta Platforms, which have reportedly reduced their orders for Nvidia’s Blackwell GB200 racks. These clients are waiting for updated versions of the racks, which are expected to become available later this year. In the meantime, some companies are opting to purchase Nvidia’s older AI chips, which, although less powerful, are seen as more reliable. | The delays could have broader implications, as these tech giants had placed substantial orders for the Blackwell racks, with some valued at over $10 billion. Despite the setbacks, Nvidia's continued innovation in AI technology remains a key focus, and future versions of the racks may address the current issues. |
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| | Top Winners and Losers 🔥 | | | Phio Pharmaceuticals Corp [PHIO] $6.60 (+290.53%) | Phio Pharmaceuticals hit a major breakthrough in its carcinoma treatment, sending its stock price to the stratosphere. | Sage Therapeutics Inc [SAGE] $7.50 (+35.14%) | Sage Therapeutics took off after Biogen offered to buy a majority of the company’s shares at their current valuation. | Intra-Cellular Therapies Inc [ITCI] $127.19 (+34.07%) | Intra-Cellular agreed to be bought out by Johnson & Johnson in a monumental $14.6 billion deal, causing shares to soar. |
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| | | | | | Establishment Labs Inc [ESTA] $33.71 (-26.38%) | Establishment Labs revealed the exit strategy for its current CEO, leaving investors wondering about its leadership. | Arqit Quantum Inc [ARQQ] $16.77 (-23.49%) | Arqit Quantum is still feeling the effects of Nvidia’s announcement last week that true quantum computing is still decades off. | Moderna Inc [MRNA] $35.15 (-16.80%) | Moderna shares fell today after cutting nearly $1 billion from its forecast due to lower Covid vaccine demand. |
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| | | | That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback! | Thanks for reading. I'll see you at the next open! | Best Regards,
— Adam G.
Elite Trade Club |
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