š¤ NVIDIA'S Real Moat, Scrapped?
Plus: Americaās Forgotten Stock, and More
Hey Movements Readers,
Itās earnings season for top mobility companies like UBER 0.00%ā , DASH 0.00%ā and LYFT 0.00%ā, and here's a newsletter we've been following ourselves, Money Machine Newsletter.
Itās designed to help you become a smarter, independent investor with two things:
Market-beating stocks in a 5-min read. Picked by elite traders. Delivered weekly to your inbox pre-market.
Market, investing, and business insights from insiders and experts outside the mainstream media.
You wonāt find the same watered down stock picks like other services. Nor will you find the same regurgitated mainstream media information here.
Iāll let Money Machine Newsletter take it from hereā¦
This weekās market, investing, and business insights from insiders and experts outside the mainstream media:
Did DeepSeek just scrap NVIDIA's real moat, CUDA?
China gamified shopping and 63% of people are gobbling it up.
Americaās forgotten stock (dirt-cheap right now).
THIS country owns 1.5% of all public stocks and is killing it!
And more. Letās get to it!
Top Insights of the Week
1. ā ļø NVIDIA'S Real Moat, Scrapped?
HOT TAKESā¦ did DeepSeek steal OpenAIās AI model? sureā¦ did they also innovate? ABSOLUTELYā¦ did China want to disrupt the U.S. economy? alwaysā¦ did big tech get lazy and just throw money at AI with no constraints? probablyā¦ this can all be true at the same timeā¦ but the real breakthroughā¦ DeepSeek ditched NVIDIAās CUDAā¦
NVIDIAās CUDA is the software controlling AI trainingā¦ they skipped it, instead, they coded on the hardware (PTX), never been done before. THATāS A FLEX šŖ.
Did they only drop $6M to create DeepSeek? Nope, fugaziā¦
The real cost, +$1B on compute.
$6M is just the final training run, itās like bragging about building a skyscraper for the cost of the last shipment of cement.
DeepSeek didnāt get VIP entrance to the club, so they used the back alley doorā¦
OpenAI says DeepSeek trained R1 using GPT-4ās outputs.
DeepSeekās early model would straight-up say it was as GPT-4 in testsā¦ I mean at least be subtle about it, geez.
Huawei just joined the partyā¦ they adapted DeepSeekās AI for their own chips, slashing costs by 70%.
NVIDIA chips still flowing to Chinaā¦
Despite U.S. bans, China still got tens of thousands of NVIDIAās best chips, potentially through Singapore.
What happens next is anyoneās guess, but donāt expect Washington to sit stillā¦ game on.
2. šø QVC Effect Is BackāOn Steroids
Remember back in the day when you would get home at 3am, drunk as hell, near blacking out, sat down to go ham on the personal pizza you just picked up, and all of the sudden youāre being sold a the George Foreman grill on QVCā¦ buy 1, get 1 free, YES PLEASE, speed dial! All of the sudden you have two baller grills on your kitchen counterā¦ Ah, yes, the golden yearsā¦ wellā¦ itās happening all over again, minus the booze and pizza, and China is all over itā¦
Chinese apps like Douyin and Xiaohongshu make shopping feel like a game. Scroll, laugh, buy. No effort, no searchingājust perfectly timed impulse buys.
Douyin sold $375B worth of goods in 2023. Xiaohongshu, ~$1B in profit for 2024.
Shopping has shifted from search to discovery, and weāre gobbling it upā¦ 63% of people prefer finding products they werenāt even looking for, the algorithm gods working overtime.
Big players are catching onāInstagram and Facebook have in-app shopping, Amazon Inspire mimics TikTok with shoppable videosā¦ but there's one company in particular that is quietly dominating... Whatnot.
$359M in revenue for 2024 (+102% YoY).
Valued at ~$5B and backed by big dawgs like Andreessen Horowitz & DST Global.
Processed more than $3B in total sales in 2024 (doubled from 2023).
Whatnot isnāt publicāyetā¦ but livestream shopping is heating upā¦ when the right player goes public, it could be a big win for self-directed investorsā¦ weāll be watching closely.
3. š„ Americaās Forgotten Stock
For years, THIS particular company thrived in a protected marketāwith steady growth, fat margins, and market-beating returnsā¦ then came the setbacksā¦ a rough stretch sent shares tumbling nearly 50%... but now, somethingās stirringā¦ a high-profile activist investor is demanding change and itās triggered our radarā¦ Brown-Forman.
Today, it's facing a few threatsā¦
Gen Z is drinking less.
50% EU tariff could crush international sales.
U.S. Surgeon General is linking alcohol to cancer.
While most investors see riskā¦ we see an opportunityā¦
Revenue fell 1.18% to $4.18B in 2024, but profits jumped 30.78% to $1.02B.
Stock is down 40% YoY, hitting five-year lows, currently undervalued.
Cutting 648 jobs, closing its cooperage, and saving $70ā80M a yearāall to boost profits.
Profitable for a long time. With brands like Jack Danielās, itās a strong, stable business.
Actively keeping debt in check, $2.39 billion as of October 31, 2024ādown 9.91% from last year.
RTD cocktails are booming, and Brown-Forman is jumping in.
Gen Z drinks less but spends more on premium spirits. Brown-Forman sees the shiftāhence the buyout of Diplomatico Rum.
Join Money Machine Newsletter to get our buy/sell setups, weāre watching this one closely. If Brown-Forman weathers tariffs and capitalizes on premiumization, the upside could be massive. It looks like a bargain, but timing matters.
Top 3 Charts of the Week
1. š° Norwayās Wealth Fund Hits Record Profits
Norway saved its oil money instead of spending it and invested it in stocks, real estate, and bonds. Now, that fund has grown to ~$2T, making $222B in profit last year. If divided equally, each Norwegian would get $319,900. Itās the biggest investment fund in the world, owning 1.5% of all public stocks.
2. āļø Starbucks' China Struggles Persist
Starbucks is struggling in China. Sales fell over 5% last quarter, even after adding nearly 100 new stores. Fewer customers are visiting, and those who do are spending lessāaverage ticket size dropped 4%.
Expanding stores isnāt helping. Local competitors like Luckin are cheaper, Chinese consumers are leaning away from Western brands, and nationalism is rising. The old Starbucks playbook isnāt working.
China is Starbucksā second-biggest market. If this decline continues, it could hit revenue hard. Investors expecting growth might be in for a bitter surprise.
3. š§Ŗ Reality Labs Is Still Incinerating Cash
Metaās Reality Labs has lost $60B since 2020. But Metaās core apps print money, so they keep funding the dream.
Meta still dominates VR/AR with 70% market share and sold 3 million Quest 3s. Theyāre betting bigā2025 is the āpivotal year for the metaverse,ā and theyāre spending $65B on AI and capex this year.
Join 6,000+ self-directed investors who have already placed themselves on the path to greater wealth by making $500, $1,000, $2,000, $3,000, or more every month with Money Machine Newsletterās trade ideas.
See you in there!
Best,
Money Machine Newsletter
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