Weekend Updates - 5|11|25

Last week the market was volatile but remained neutral with little variations. The S&P 500: Down -0.5% for the week, DOW was down -0.2%, and Nasdaq was down -0.3%. The stock market was influenced by Federal Reserve actions and economic data. The Fed held interest rates steady at 4.25%-4.5% on May 7, citing increased risks of inflation and unemployment due to Trump’s tariff policies. Fed Chair Powell emphasized a “wait-and-see” approach, noting economic uncertainty and tariff impacts on growth and prices. I would say that he showed neutral stand. However, looking to the current inflation rate, I feel that FED may cut rates in its June meeting, though it's too early to call. There will be a few very important economic report this week which may determine Fed's next action. You may be aware of the India and Pakistan geopolitical situation. They declared so-called ceasefire but of course it did not impact the stock market. 

One good news, which may bring the stock up early next week. Just an hour ago the White House released a statement that U.S. and China have stuck a trade deal. Per the treasury secretary, there will be a briefing tomorrow morning. As of now, there is not much information about what is the exact deal but this is certainly a good news for the stock market. In my view, it's better to keep investing and trading under such environment to buy on the dip and sell on the run for better ROI. At least that's what I plan to do. In addition, last week we also saw some good earnings from some quantum computing stocks. So, let's see the earnings. 


IonQ (IONQ) Q1 2025 vs. Q1 2024:

• Revenue: $7.6M vs. $7.6M, flat YoY.

• EPS: -$0.14 vs. -$0.19, improved 26%.

• Net Loss: $32.3M vs. $39.6M, reduced 18%.


My View: IONQ is the leader in Quantum Computing. I like it and would add on any pullback or add if the stock market gains further momentum.


D-Wave Quantum (QBTS) Q1 2025 vs. Q1 2024:

• Revenue: $15.0M vs. $2.5M, up 509%.

• EPS: -$0.02 vs. not specified, beat estimates of -$0.07.

• Net Loss: $5.4M vs. $17.3M, reduced 69%.


My View:After the earnings, this stock exploded more than 50%. This is one of the small Quantum Computing stock that I like visualizing its future potential. 


SoundHound AI (SOUN) QA result:

Revenue: $29.13 million vs analyst estimates of $30.46 million (151% year-on-year growth, 4.4% miss)

EPS (GAAP): $0.31 vs analyst estimates of -$0.08 (significant beat)

Operating Margin: 440%, up from -246% in the same quarter last year.


My View: It beats the bottomline hands down but missed the top line. I will watch and keep adding on the dip.


ECONOMY REPORT this week

TUESDAY, MAY 13: CPI/Inflation Report (April)

THURSDAY, MAY 15: Producer price index (PPI April)

FRIDAY, MAY 16: Consumer Sentiment (Preliminary). Consumer sentiment is declining and we will see how people feels about it.


STOCKS to watch this Week

META, NFLX, TSLA, AVGO, NVDA, FAS, TEM, SOXL, TQQQ, QBTS, IONQ, RGTI

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