💰 Maniac Minute: Bitcoin Quietly Soars Past $80k

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Good morning, Maniacs!

First and foremost, Happy Veterans Day! Today we honor the brave men and women who have served our country. Your sacrifices have safeguarded our freedoms, and we can't thank you enough.

Now, onto the markets—what a week it's been! Stocks are soaring, major indices are hitting record highs, and investor optimism is off the charts.

Plus, in Part 3 of our Dividend Investing Series, we reveal two key metrics that will help you pick sustainable dividend stocks.

Let's dive in! 💸

Market Recap 📈

Stocks ripped higher this week, with the S&P 500 and Nasdaq hitting fresh all-time highs.

Investors are embracing a risk-on sentiment, excited for a more pro-growth and laissez-faire economic environment—think fewer regulatory hurdles and a potential surge in mergers and acquisitions (if FTC Chair Lina Khan is replaced).

The Federal Reserve also cut interest rates by 25 basis points, as it continues to guide toward a soft landing. The markets took this in stride—already pricing in another cut next month.

Meanwhile Bitcoin quietly added $10,000, zooming past the $80,000 mark last night for perhaps the most under-the-radar all-time high we've seen.

Winners & Losers 🚀

The market had its fair share of plot twists last week—here's who took the spotlight and who exited stage left:

Winners

1. AppLovin ($APP) – Market Cap: $97.3B (+77.3%)

Love is in the air for AppLovin! The mobile marketing specialist just got a golden ticket into the Nasdaq 100, and investors are smitten. The business earned upgraded forecasts from analysts after posting a jaw-dropping 317% surge in earnings.

Their AI-powered matching system, Axon, places ads with pinpoint precision in gaming apps, boosting engagement and revenue. With such impressive growth, AppLovin is proving that AI and mobile marketing are a winning combination.

2. Lyft ($LYFT) – Market Cap: $7.4B (+31.9%)

Lyft is shifting into high gear! The ride-share company reported a 32% revenue jump to $1.52 billion, driven by a 9% increase in active riders. After securing new partnerships with self-driving technology companies, CEO David Risher hailed it as "one of the strongest quarters in Lyft history."

3. Zillow ($Z) – Market Cap: $17.1B (+23.6%)

Despite challenges in the residential real estate market, Zillow is proving it's more than just a listings site. The online real estate titan reported 17% revenue growth, defying industry headwinds. With residential revenue up 12% and mortgage revenue skyrocketing 63%, Zillow is cashing in on every corner of the housing market.

User traffic hit an all-time high, proving that when it comes to finding your next home (or investment), Zillow is the place to click.

Losers

1. Match Group ($MTCH) – Market Cap: $7.9B (-14.3%)

Match Group is feeling the heartbreak this quarter. Despite a slight beat in earnings, revenue played hard to get, and Tinder's active users swiped left—down 9%. New features didn't spark joy and even stole the spotlight (and revenue) from subscriptions. With a flat forecast, investors are questioning the company's ability to reignite growth.

2. Pinterest ($PINS) – Market Cap: $19.7B (-8.9%)

Pinterest might need to revisit its vision board. Even with record user numbers and 18% revenue growth, the stock took a tumble. Why? Revenue was driven by a flood of ad placements without a corresponding demand for ad units. As a result, ad prices fell 17%! Throw in rising AI costs, and investors are pinning their hopes elsewhere.

3. Mercedes-Benz ($MBGAF) – Market Cap: $61.7B (-7.1%)

Mercedes-Benz—and other German automakers—hit a roadblock this week as fears of U.S. import tariffs intensified. Investors are growing cautious as Germany’s largest, and one of its most lucrative, export destinations may become harder to access. With Trump’s election, demand for higher-margin combustion-engine models could take a hit, potentially stalling profits.

Dividend Investing Series: Part 3

In dividend investing, two figures hold the key to understanding a company's payout quality and sustainability: dividend yield and payout ratio.

Dividend Yield: Quality Over Quantity

The dividend yield shows the cash return from dividends relative to an investment today.

Formula: Dividend Yield (%) = (Annual Dividends per Share ÷ Price per Share) × 100

While high yields can look enticing, be cautious. A sky-high dividend yield often results from a drop in stock price, which may signal underlying issues.

A sustainable and growing yield—one that’s competitive yet moderate—is more likely to point to a company on solid footing.

Pro Tip: Rather than buying the highest yields, look for dividend yields that align with industry norms.

Payout Ratio: A Gauge Of Stability

The payout ratio indicates what portion of a company's earnings goes toward dividend payments.

Formula: Payout Ratio (%) = (Annual Dividends per Share ÷ Earnings per Share) × 100

Companies with lower payout ratios tend to be more stable dividend payers. These companies have enough income to pay shareholders, reinvest in the business, and weather any unexpected storms.

What constitutes a “low” payout ratio varies from industry to industry, but between 30% and 60% is generally considered healthy.

On the flip side, a payout ratio that is too high can be detrimental to the long-term prospects of the business. And a payout ratio above 100% means the company is distributing more than it earns, which isn’t sustainable.

High payout ratios can lead to dividend cuts or suspensions, reducing your income and signaling distress to the market—often driving the stock price down.

Determining Dividend Sustainability

Beyond yield and payout ratio, it’s always wise to check a company’s earnings consistency and cash flow health. Companies with strong cash flow and manageable debt levels are better positioned to maintain dividends, even during downturns.

Firms with a history of raising dividends, like Dividend Aristocrats and Kings, also offer a track record of reliability, suggesting they value long-term shareholder returns.

Bottom Line: By focusing on companies with reasonable yields and sustainable payout ratios, you’re investing in reliable, long-term income. Opt for solid, steady payouts rather than chasing high yields that may be unsustainable.

Trump Calls Central Bank Digital Currency 'Very Dangerous'

Trump warns that the Government can CONFISCATE your money through Digital Currency. A Fed-controlled Digital Dollar, he said, "would give our federal Government absolute control over your money. They could take your money, and you wouldn't even know it's gone. This would be a dangerous threat to our freedom."

It's the Greatest System of Control Ever Invented… and it's Closer to Reality Than You Think.

The FDIC Bank list shows 963 banks have officially laid the foundation for Biden's Digital Money Payment System, which the Fed and MIT developed.

"Digital Currencies Created by the Government Are Centralized - Can be Used as a Tool to Surveil Americans' Private Transactions." Sen. Ted Cruz

"Banking giant Morgan Stanley says that central bank digital currencies (Digital Money) may contribute to a shift away from the US dollar."

Forbes said, "Central Bank Digital Currencies are about control—They should be stopped."

Get all the details in this Free Guide today.

Worth The Read 📚

✈️ Fly to Europe on a Budget – Dreaming of a European getaway? Now's the time to book! Flights across the Atlantic are the cheapest they've been in years. Learn why prices have dropped and how to snag a deal. [Read here.]

🧐 Buffett Halts Buybacks – Even Warren Buffett isn't buying his own stock. Berkshire Hathaway paused its six-year streak of buybacks, signaling the legendary investor thinks his stock is pricey. Find out what this means for the market and your investments. [Read here.]

🤖 AI Under Trump – With Trump's return to the White House, sweeping changes are on the horizon for AI, Big Tech, and the chip industry. From antitrust cases to Musk’s influence, see how his administration could reshape Silicon Valley. [Read here.]

🚨 Trump’s Unilateral Moves – Fresh off his victory, Donald Trump is ready to enact bold changes. From tariffs to immigration reform, discover which promises he can fulfill on his own and where he'll need Congress to act. [Read here.]

🐳 The French Polymarket Whale – Meet Théo, the French trader who wagered $30 million on Trump's election victory and won big. His massive bets have caught the attention of French regulators, prompting an investigation into the crypto-based prediction platform Polymarket. [Read here.]

The Week Ahead 🔍

Earnings season is winding down, but a few big names are still reporting. Look out for a couple of key inflation measures and a Fed speech the market definitely won’t overanalyze:

Monday

• Veteran’s Day holiday

• Earnings from Live Nation

• Bond market closed

Tuesday

• Earnings from Home Depot, AstraZeneca, Shopify, Spotify, Occidental Petroleum, and CAVA

Wednesday

• Earnings from Cisco and Under Armour

• Consumer price index (est. 2.4% annually, 0.2% monthly)

• Monthly U.S. federal budget

Thursday

• Earnings from Disney and Sony

• Initial jobless claims

• Producer price index (est. 1.8% annually, 0.0% monthly)

• Fed Chair Powell speaks

Friday

• Earnings from Alibaba

• October U.S. retail sales (est. 0.4%)

That’s a wrap! Hope you enjoyed the Maniac Minute—we’ll see you next Monday with all the market insights and money tips you need to stay ahead.

Keep stacking,
The Money Maniac 💸

P.S. Got feedback, burning questions, or just want to say hi? Feel free to reply directly to this email!

DISCLAIMER: The information provided in this newsletter is for informational purposes only and should not be construed as financial advice or a solicitation to buy or sell any assets. All opinions expressed are those of the author and are subject to change without notice. Please do your own research or consult with a licensed professional before making any investment decisions.