CBC Daily Digest

Stocks on the Rise

1. Longboard Pharmaceuticals, Inc. (LBPH) 58.99+20.09(+51.65%) At close: 4:00 PM EDT 58.990.00(0.00%

The stock price of Longboard Pharmaceuticals (LBPH) surged by 51.65% for the following three reasons;-

• Acquisition by H. Lundbeck A/S: The largest was Lundbeck’s $2.6BN for Longboard at $60 per share which was 54.2% above its previous close to say the least. This deal greatly enhances the investors’ awareness of Longboard’s possibility.

• Bexicaserin's Market Potential: Longboard’s pipeline consists of several candidates, of which the leading one bexicaserin is in a late stage of development for the treatment of severe epilepsies. The projections are that it will achieve between fifteen-fifteen and twenty- twenty worldwide sales. The drug fills an important void in the treatment of rare and severe types of epilepsy

• Strategic Fit with Lundbeck: This acquisition is seen by Lundbeck as major for the development of its neuroscience pipeline. The acquisition of bexicaserin and another new form neuroscience stage drug enhances its position in the neuro –rare disease market.

2. Trump Media & Technology Group Corp. (DJTWW) 21.24+3.47(+19.53%) At close: 4:00 PM EDT 22.00+0.76(+3.58%)

Trump Media & Technology Group Corp. (DJTWW) increased by 19.53% for several reasons including-

• Positive Momentum from Rallying Support: After one of the company’s owners, Elon Musk, joined Trump’s campaign rally, the share price rose as it attracted attention in social media trading apps.

• Rising User Engagement on Truth Social: The activity level of the company that operates Truth Social has improved which improves its growth potential.

• Pre-Election Speculation: As the elections in the United States are approaching there is more speculation over the strategic direction of the firm.

3. Upstart Holdings, Inc. (UPST) 54.07 +7.05 (+14.99%)  At close: 4:00 PM EDT 54.35 +0.28 (+0.52%)

Upstart Holdings, Inc. (UPST) has also spiked by almost 15% in a single trading session. These are the following reasons:-

• Improving Financial Performance and Growth Projections: There was a decline in its revenue growth recently, however, Upstart ‘s financial position remains promising. Every company’s lending platform powered by AI indicates even better sales growth in the future years. Consultants expect the firm’s revenue to grow at an average of 23% per annum in the next three years, which surpasses the industry growth of 14%, as a result enhancing investors’ confidence.

• Favorable Market Sentiment: Fintech market and more specifically the AI in lending position has received a fillip from broader optimism around the companies in the sector. Because more industries are shifting to solutions that leverage technology and because credit lending is a competitive space, up starts utilization of artificial intelligence to evaluate credit worthiness makes it strategic. This has helped the stock to continue moving in the upward direction since investors are purchasing it on the basis of growth in proof of concept business, and potential increase in revenue in the years to come.

Attractive Valuation and Investor Interest: This is evident as the current price-to-sales ratio of Upstart is way above the industry standard due to robust investor confidence in the company’s growth rate. This rise in valuation is due to expectations for the firm’s AI-driven platform to and upends conventional lending businesses even more and achieves greater utilization and sales.

Trending stocks- What’s Hot in the Market Right Now

• NVIDIA Corporation (NVDA) 138.07+3.27(+2.43%) At close: 4:00 PM EDT 138.08+0.01(+0.01%)

Some of the major factors with respect to which NVIDIA Corporation’s stock (NVDA) is trending are as below with reference to the data of 2024-

• Strong AI Demand: NVIDIA uses the increasingly growing need for generative AI, and data processing technologies. AI systems rely on the company’s GPUs and as generative AI increases, the firm is expected to see sustainable sales growth for its products.

• Supercomputing Power: They are also gaining stock from NVIDIA who has also been accredited for powering supercomputers. Its GPUs are used mostly for training of sophisticated AI models that companies like Meta and Tesla apply. The growth of the new supercomputers specialising in AI strengthens NVIDIA’s place in this lucrative area.

• Impressive Financial Performance: In its recent financial statements, NVIDIA reported record-high revenues, especially in its data center division. Based on its Q2 of 2024 financial report, it achieved a 152% YoY sales increase demonstrating robust market control and investment attractiveness.

2. SoFi Technologies, Inc. (SOFI) 10.04+1.03(+11.43%) At close: 4:00 PM EDT 10.01-0.03(-0.30%)

Here are three reasons why the SoFi Technologies, Inc. (SOFI) stock is trending-

• Fortress Investment Deal: SoFi has struck a $2bn loan platform with Fortress Investment Group and thus SoFi has increased its personal loan capacity. This move enables SoFi to prescreen borrowers and introduce them to partners, sell loans to third parties and purchase loans from them while increasing investors and driving the stock up.

• Bull Market Momentum: SOFI surged to just above the $10 mark which it has not traded at since December 2023. This breakout has attracted a lot of investor attention including the small investor as well as the large institutions, and this is because observers of the market have regarded this as the long-bull market for the stock.

• Positive Economic Outlook: That we see investors are optimistic at this point, they have good economic indicators that include low interest rates, consumer health etc. This has created a positive outlook on financial service stocks like SoF.

3. Trump Media & Technology Group Corp. (DJT) 29.95 +4.67 (+18.47%) At close: 4:00 PM EDT 31.34 +1.39

The stock of Trump Media & Technology Group Corp. (DJT) has recently trending due to several factors:

• Truth+ Streaming Service Launch: Among the factors that contributed to the stock’s success is the Truth+, the new streaming station, which will contribute to developing digital media of the company. This has resulted in the generation of considerable investor interest in the company’s growth prospects because of the various content types adopted by this platform: news and documentaries and entertainment. The move to streaming seems to provide the company a way of fighting in a diverse media environment.

• Political and Election-Related Speculation: Due to the next year’s U.S. elections, the effect of these platforms and the company’s latest one, Truth Social, might be seen to increase. This has brought new focus by investors who regard Trump Media as having a critical duty in election cycle, thus enhancing its value. This has ensured that this stock not only receives attention during elections that are regarded as politically sensitive but also politically sensitive media stock.

Growing User Base and Platform Engagement: For example, the number of users engaging on Truth Social, the firm’s leading social media application, has grown gradually. The initial problem came from the perspective that many users are joining the platform and with the increase in business prospects a company’s growth and its stock increases. As a result of this growth, investors believe that there will be better advertising revenues thus a better overall financial performance.