💰 Maniac Minute: Super Micro's $14 Billion Loss

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Good morning, Maniacs!

Election Day is tomorrow, finally. Whether you're Team Red, Team Blue, or just Team Let's-Get-This-Over-With, the markets are bracing for whatever comes next.

Meanwhile, Nvidia’s set to replace Intel in the Dow and Warren Buffett’s cash pile crossed $300 billion after selling even more Apple. Is he gearing up for the next big buy?

Plus, in Part 2 of our Dividend Series: How Buffett turned a $1.3 billion investment into $750 million in annual cash flow—and how you can too.

Let's get into it! 💸

Market Recap 📈

Last week brought a Halloween scare to Wall Street. The S&P 500, Dow Jones, and Nasdaq all took a tumble, spooked by rising Treasury yields and Big Tech earnings that didn’t live up to their even bigger expectations.

But it wasn’t all tricks and no treats! We learned that the U.S. economy showed some resilience in Q3. GDP clocked in at a solid 2.8% growth rate, fueled by a big boost in spending from both consumers and the government.

Winners & Losers 🚀

The market played favorites last week—here’s who came out on top and who got left in the dust:

Winners

1. Reddit ($RDDT) – Market Cap: $19.8B (+38.9%)

The front page of the internet just posted its first-ever profitable quarter, sending shares soaring. The social media platform's revenue surged 68% to $348 million, beating expectations, thanks to lucrative AI licensing deals with Google and OpenAI. Meanwhile, daily active users jumped nearly 50% to 97 million. Time to check your karma, because this stock is getting upvoted in a big way.

2. Roblox ($RBLX) – Market Cap: $33.8B (+22.1%)

Roblox smashed third-quarter expectations by over $100 million. Revenue climbed 29%, bookings shot up 34%, and daily active users climbed 27% to a whopping 88.9 million. The company even upped its 2024 outlook—talk about playing in God mode! If you thought virtual worlds were just for kids, think again.

3. Twilio ($TWLO) – Market Cap: $13.0B (+20.4%)

Ring, ring—it's opportunity calling! This cloud communications company just reported a beat on both revenue and profit, with a 76% surge in adjusted earnings per share. By tightening up costs and boosting profit margins, Twilio seems to be making all the right adjustments.

Losers

1. Super Micro Computer ($SMCI) – Market Cap: $15.3B (-44.9%)

When your auditor resigns mid-audit, things get ugly fast. Super Micro’s stock plunged after Ernst & Young stepped down, saying it could no longer “rely on management’s and the Audit Committee’s representations.” Following recent allegations of accounting manipulation, Super Micro now risks delisting from Nasdaq. The company may also face removal from the S&P 500 as regulatory scrutiny intensifies.

2. Estée Lauder ($EL) – Market Cap: $23.9B (-23.7%)

Looks like Estée Lauder needs a makeover. Shares plummeted after the beauty giant withdrew its fiscal 2025 outlook and slashed its dividend nearly in half. The company is grappling with declining sales in China—its largest market—due to economic slowdowns and stiff competition from local brands. Even the new CEO appointment couldn't conceal investors' concerns.

Dividend Investing Series: Part 2

Compounding is the eighth wonder of the world. So when companies harness that power by consistently growing their dividends, it’s like unlocking a financial cheat code.

Take Warren Buffett's legendary investment in Coca-Cola.

Back in 1988, Buffett's Berkshire Hathaway started buying shares, eventually investing about $1.3 billion. At the time, Coca-Cola's dividend yield was around 3%, so Berkshire was collecting roughly $40 million annually in dividends.

Fast forward to today, and Coca-Cola's annual dividend has grown so much that Berkshire now receives over $750 million each year. That's an annual yield of nearly 60% on the original investment! Talk about a sweet deal.

But you don't need billions—or a time machine—to tap into this strategy.

By investing in companies known as Dividend Kings (those that have increased dividends for 50+ consecutive years) or Dividend Aristocrats (25+ years), you can ride the wave of growing dividend income. These are firms with time-tested business models and a track record of rewarding shareholders.

Imagine investing $10,000 in a Dividend King with a starting yield of 3%, and the company increases its dividend by 5% every year. Over 30 years, your annual dividend income would grow from $300 to $1,300. This would pay your entire investment back twice over—without taking any price appreciation into account.

The magic lies in owning companies that don't just pay dividends but grow them consistently. This growth accelerates your wealth-building, much like a snowball gathering speed and size as it rolls downhill.

So, what's the bottom line?

Finding and holding onto companies that grow their dividends is like planting a money tree that bears more fruit each year. It's a strategy that combines income, growth, and the magic of compounding to help you reach your financial goals faster than you might think.

The Dividend Kings | The Best-Of-The-Best Dividend Stocks

Thousands of publicly traded companies have a dividend – that means they pay you just for owning their stock.

However, only some are able to increase their dividend payments year-after-year.

Sure Dividend researches the best dividend growth stocks for investors looking to build rising passive income over time.

And the best-of-the-best are the elite Dividend Kings.

• A stock must have 50+ consecutive years of dividend increases to be included on Sure Dividend’s Dividend King list. 

Only 53 stocks qualify for the exclusive Dividend Kings list. 

These are businesses that have increased their dividend every year since the 1970s, despite recessions, wars, pandemics, and changing technology.

Instantly get your free Dividend Kings spreadsheet by clicking the link below:

Get my free Dividend Kings list now →

Worth The Read 📚

🏠 The Great State Migration – States are shuffling residents like never before! Texas is attracting the most newcomers, while California, New York, and Illinois lead the way in losses. Curious about the reasons behind these moves? Dive into the data on where Americans are setting down roots—and why. [Read here.]

💼 Job Hopping No More? – The days of big raises for job switchers seem to be fading. New data shows a sharp slowdown in wage growth for those on the move. Here’s why wage gains are shrinking for job hoppers and what it means for your career strategy. [Read here.]

💸 Russia’s Astronomical Fine – Russia hit Google with a staggering $20 decillion fine for blocking its media channels. Yes, that’s a 2 followed by 34 zeros. Yes, that is more than all of the wealth in the entire world. Get the details on this massive penalty and the rising tech tensions in Russia. [Read here.]

📈 Mortgage Rates Bite – Mortgage rates at 7% have priced some buyers out of the market, slashing purchasing power by $33,000 in a matter of weeks. With affordability shifting across the seven critical swing states, find out how these rate hikes could impact the upcoming election. [Read here.]

🏀 Slam Dunk Investing – Morgan Stanley is introducing a portfolio for high-net-worth fans who want a piece of the action. Their new sports index taps into companies tied to major leagues. For anyone who's dreamed of a financial stake in sports, this might be your chance. [Read here.]

The Week Ahead 🔍

There’s more than one market-moving event on deck this week! Major earnings reports, a Fed rate decision, and the U.S. presidential election are all set to take center stage:

Monday

• Earnings from Palantir, Constellation Energy, Realty Income, and Hims & Hers Health

Tuesday

• Presidential Election

• Earnings from Ferrari, Apollo, Marathon Petroleum, Yum! Brands, and SuperMicro

• U.S. trade deficit (est. -$84B), ISM Services PMI (est. 53.3)

Wednesday

• Earnings from Novo Nordisk, Toyota, Qualcomm, Gilead, CVS, Duolingo, and FICO

Thursday

• Earnings from Duke Energy, Petrobras, Monster Beverage, Datadog, Hershey, Cloudflare, Airbnb, and Pinterest

• Fed interest rate decision (est. 4.75%)

Friday

• Earnings from Paramount, Trump Media, and Icahn Enterprises

• November Consumer Sentiment (est. 70)

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 💸

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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.