💰 Maniac Minute: Can Nvidia Justify Its 187% Run?

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Good morning, Maniacs!

The post-election rally is cooling, but volatility? That’s here to stay.

Last week, the Trump trade continued to ripple through the market, as every new cabinet appointment minted fresh winners, losers—or both.

This week, Nvidia steps into the spotlight. The $3.5 trillion AI titan reports earnings, aiming to defend its jaw-dropping 187% rise this year. Can it keep the momentum going? Investors are bracing for the verdict.

Let’s dive in! 💸

Market Recap 📈

After two sticky inflation reports, yields continued their ascent, and investors began resumed questioning whether inflation was truly tamed.

Jerome Powell didn’t ease those nerves. Instead, he indicated that the Fed is in no rush to make interest-rate cuts, reiterating a “slow and steady” approach. And that news officially ended the post-election rally, as all three indices pulled back to end the week.

But it wasn't all doom and gloom! Retail sales data showed the American consumer is still flexing those spending muscles. October sales ticked up 0.4%, beating the 0.3% forecast, while September's numbers were revised up to a strong 0.8% gain.

Meanwhile, Bitcoin stole the show (yes, again). The crypto king surged nearly 20%, settling between $90,000 and $92,000. Even crypto-linked stocks like MicroStrategy and Coinbase rode the rocket, basking in Bitcoin's glow.

Winners & Losers 🚀

It was a wild ride on Wall Street last week! Here’s who rode the wave to the top and who wiped out along the way:

Winners

1. Shopify ($SHOP) – Market Cap: $140.9B (+24.5%)

Shopify is riding the wave of a consumer comeback! The online retail enabler's revenue jumped 26% year-over-year to $2.16 billion, while net income doubled to $344 million. With an optimistic forecast for the holiday shopping season and Q4 sales expected to rise ~25%, Shopify is hitting its stride—and new 52-week highs.

2. Disney ($DIS) – Market Cap: $208.4B (+16.2%)

The magic is back at the House of Mouse! Earnings per share climbed 39%, driven by streaming strength and aggressive cost-cutting moves. Disney+ subscribers hit 123 million, and total streaming users reached 200.6 million—even after multiple price hikes. Investors are optimistic that CEO Bog Iger has finally returned Disney to the top of the entertainment kingdom.

3. Spotify ($SPOT) – Market Cap: $92.6B (+14.4%)

Spotify turned up the volume this quarter! The music streaming leader posted a jaw-dropping 341% earnings surge and 20% revenue growth. Monthly active users jumped 11% to 640 million, while paid subscribers rose 12% to 252 million—more than double Apple Music's numbers. With record operating income and gross margins, Spotify is hitting all the right notes.

Losers

1. AbbVie ($ABBV) – Market Cap: $291.6B (-17.3%)

AbbVie’s drug pipeline hit a major roadblock. Shares tanked after Phase II trials for emraclidine, its once-promising schizophrenia treatment, failed to deliver encouraging results. The setback blindsided investors, sparking a sell-off. Meanwhile, Bristol Myers saw a 4% boost as reduced competition strengthened the prospects of its own schizophrenia treatment.

2. Micron Technology ($MU) – Market Cap: $106.8B (-13.9%)

Micron’s stock has short-circuited. Shares fell after a bearish report from Edgewater Research warned of weakening demand and falling prices in two key memory chip markets. Fears of oversupply and a cooling AI boom weighed heavily, pushing Micron’s P/E ratio below 12x—a steep discount compared to competitors like Nvidia.

3. Broadcom ($AVGO) – Market Cap: $769.9B (-10.2%)

Broadcom’s signal is breaking up. Concerns about underwhelming core business performance, masked by growth from its VMware acquisition, pushed shares down. Investor confidence took another hit as both Jim Simons’ Renaissance Technologies and Steve Cohen's Point72 fund reduced their Broadcom stakes in Q3.

Dividend Investing Series: Part 4

Dividend investing is not just about picking the right stocks—it’s also about understanding how Uncle Sam treats your earnings.

Let's dive into the two types of dividends and their tax implications so you can keep more of that hard-earned cash.

Qualified vs. Ordinary Dividends

Not all dividends are created equal in the eyes of the IRS. They generally fall into two categories:

Qualified Dividends

• Tax-Friendly: Taxed at the long-term capital gains rate, which is typically lower than the ordinary income tax rate.

• Eligibility Criteria: Must be paid by a U.S. corporation or a qualified foreign corporation, and you must meet specific holding period requirements.

Ordinary (Non-Qualified) Dividends

• Higher Tax Rate: Taxed as ordinary income, which could be as high as 37% depending on your tax bracket.

• Common Sources: Includes dividends from real estate investment trusts (REITs), master limited partnerships (MLPs), and certain foreign corporations.

Meeting the Holding Period Requirement

To enjoy the lower tax rates on qualified dividends, the IRS requires you to hold the stock for a minimum period:

• Common Stock: Hold shares for more than 60 days during the 121-day period starting 60 days before the ex-dividend date.

• Preferred Stock: Hold shares for more than 90 days during the 181-day period starting 90 days before the ex-dividend date.

Translation? Don't be a day trader if you're after qualified dividends. Patience pays—literally.

Understanding Tax Rates

Here's how qualified dividends stack up against ordinary income:

Qualified Dividend Tax Rates

• 0% if you're in the 10% or 12% ordinary income tax brackets.

• 15% for most taxpayers.

• 20% if you're in the highest 1-2 tax brackets.

Ordinary Dividend Tax Rates

• Taxed at your regular income tax rate, which could be anywhere from 10% to 37%.

The Net Investment Income Tax (NIIT)

• Additional 3.8% Tax: High-income earners (individuals earning over $200,000 or couples over $250,000) may owe this tax on investment income, including both qualified and ordinary dividends.

Tax-Advantaged Accounts

Of course, the tax rates above apply only to investments in taxable accounts.

Dividends reinvested inside of tax-advantaged accounts like IRAs, 401(k)s, or HSAs can compound without the drag of annual taxes, allowing your investments to grow more efficiently.

Bottom Line

By understanding the difference between qualified and ordinary dividends and investing accordingly, you can maximize what really matters: your after-tax returns.

After all, it's not about how much you earn—it's about how much you keep.

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 📚

📰 Satire Meets Scandal – Satirical news site The Onion has won the auction to acquire Alex Jones' Infowars, with plans to relaunch the site as a parody of itself. However, a federal judge has raised questions about the auction process. [Read more.]

📱 TikTok's New Lifeline – In a turn of fate, Trump's victory might be just what TikTok needed. Despite previously supporting a ban, Trump has shifted his stance—perhaps due to the benefit a ban would provide competitors like Meta. [Read more.]

🐶 Musk, Ramaswamy, and DOGE – Elon Musk and Vivek Ramaswamy will head up the newly formed "Department of Government Efficiency" (DOGE). This advisory board aims to reduce bureaucracy with an entrepreneurial approach. [Read more.]

💰 Cash App Settlement Alert – If you've used Cash App since 2018, you might be eligible for up to $2,500 in reimbursements. A class-action lawsuit is underway after a former employee accessed user accounts without permission. Claims must be filed by TODAY—don't miss out. [Read more.]

🛍️ Amazon’s $20-and-Under Store – Amazon takes on Shein and Temu with “Amazon Haul,” a new discount store offering "crazy low prices" on everything from gadgets to home goods. Shipping is free over $25—but may take up to 2 weeks. [Read more.]

The Week Ahead 🔍

Housing is in focus this week with updates on confidence, starts, permits, and sales. Nvidia wraps up Q3 earnings for the Magnificent 7—this time as the world’s largest company. Plus, expect a steady stream of Fed commentary to keep markets buzzing.

Monday

• Home builder confidence index (est. 42)

Tuesday

• Earnings from Walmart, Lowe’s, and Medtronic

• October housing starts (est. 1.34 million)

• October building permits (est. 1.44 million)

Wednesday

• Earnings from Nvidia, Palo Alto Networks, Target, and Snowflake

Thursday

• Earnings from Intuit, Deere, PDD Holdings, and Baidu

• October existing home sales (est. 3.91 million)

Friday

• Final November consumer sentiment (est. 73.5)

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.