💰 Maniac Minute: This Stock Quietly Gained 450%

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Good morning, Maniacs!

This week is packed with action. We’ll see earnings from most of the Magnificent 7, Q3 GDP, and the final jobs report before the election. Plus, we’re kicking off our dividend investing series to unpack why these payouts matter—even if they nudge stock prices down in the short-term. Let’s dive in!

Market Recap 📈

Stocks took a breather, as the S&P 500 and Dow both snapped six-week winning streaks. Tech remained a bright spot, with the Nasdaq inching up 0.2% due to excitement over big tech earnings.

So far, more than a third of S&P 500 companies have reported Q3 results, with 75% beating profit expectations—slightly below the five-year average of 77%.

Winners & Losers 🚀

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

Winners

1. Tesla ($TSLA) – Market Cap: $864.1B (+22.0%)

The EV giant reported earnings that surpassed expectations and forecasted vehicle sales growth of up to 30% next year. The secret sauce? The Cybertruck finally turning a profit, reduced material costs, an expanding energy division, and lucrative sales of regulatory credits. CEO Elon Musk isn’t slowing down, hinting at more affordable models on the horizon. Buckle up, because TSLA is back on the fast track!

2. MicroStrategy ($MSTR) – Market Cap: $43.4B (+8.6%)

MicroStrategy’s impressive 450% surge over the past 12 months has drawn interest from both retail and institutional investors, thanks to its Bitcoin and AI investments. BlackRock raised its stake to 5.2%, as bullish calls for Bitcoin to reach $200,000 by 2025 gain traction. Yet, some investors warn that MicroStrategy’s valuation, nearly three times its Bitcoin holdings, may signal a risk.

3. Philip Morris (PM) - Market Cap: $204.3B (+8.0%)

Philip Morris surged this week, fueled by strong results from its Zyn nicotine pouches and IQOS heated tobacco system. Revenue from traditional “combustible” products grew 8.6%, while its high-margin, smoke-free segment climbed 16.8%. The company ignited further gains by raising its dividend to an attractive 4.2% forward yield.

Losers

1. Lockheed Martin ($LMT) – Market Cap: $134.2B (-8.1%)

America’s largest defense contractor took a hit this week after missing revenue estimates. Despite a substantial backlog of $165.7 billion and ongoing strength in programs like the F-35, Lockheed Martin’s stretched valuation and potential contract losses (due to sanctions on Turkey) led to a pullback.

2. McDonald’s ($MCD) – Market Cap: $214.2B (-7.6%)

McDonald's shares tumbled this week as the fast-food giant grappled with an E. coli outbreak potentially linked to slivered onions in its Quarter Pounders. The outbreak, spanning from September 27 to October 11, affected at least 75 people across 13 states, resulting in one death and 22 hospitalizations. McDonald's has paused sales of the affected products.

3. International Business Machines ($IBM) – Market Cap: $214.4B (-7.6%)

IBM’s stock took a hit after missing revenue targets. Consulting and infrastructure sales faced headwinds despite growth in software and AI. Morgan Stanley promptly lowered its price target, while other analysts see a chance to “buy the dip” ahead of the company’s Telum II processor drop in 2025.

Dividend Investing Series: Part 1

Before we get into the power (and strategy) of dividend investing, let’s start with the basics.

What exactly is a dividend?

Profit Sharing: Dividends are a way for companies to share their profits with shareholders, providing a cash payout simply for owning the stock. Not all stocks pay dividends, but those that do offer investors regular income and a touch more stability.

Who gets dividends?

Shareholders on Record: To receive a dividend, you need to own the stock before its ex-dividend date.

Dividends vs. Stock Price

Price Drop: When a company pays a dividend, its stock price typically dips by the same amount, reflecting cash going out of the business. The value isn’t lost—it’s just transferred directly to shareholders.

Why seek dividends?

Steady Income: Dividends offer predictable cash flow, which is especially appealing to retirees and income-focused investors.

Superior Returns: Over the past 50 years, dividend-paying companies have averaged a 9.2% annual return, while non-dividend payers averaged 4.3%.

What kind of companies pay dividends?

Cash-Rich, Stable Firms: Mature companies like Coca-Cola or Procter & Gamble often distribute cash to investors, while startups or high-growth companies reinvest earnings for expansion.

In theory, companies decide to pay or withhold dividends based on which option has the higher return on investment for shareholders: reinvesting profits or distributing them.

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 📚

📊 Election Safeguards – Curious about how your vote is protected? Learn more about the unseen checks and balances in Georgia, Arizona, and Pennsylvania that help to prevent voter fraud. [Read here.]

🏡 Green Real Estate Boom – Investors are flipping outdated "brown" buildings into eco-friendly "green" properties—and doubling their money in the process. Find out why sustainable renovations are the hot new trend in commercial real estate. [Read here.]

⛽ Prime's New Gas Perk – Amazon Prime just added fuel discounts to its list of perks! Members can now save 10 cents per gallon at thousands of BP and Amoco stations. See how this benefit stacks up against competitors and what it means for your wallet. [Read here.]

🖼️ Art Market Takes a Hit – High-end art sales are facing challenges as older collectors offload pricey works, and younger buyers stick to lower-budget pieces. This generational shift has led to an oversupply of high-value Impressionist and Abstract pieces. [Read here.]

💸 CD Mirage – Think that 5% CD is a sweet deal? After taxes and inflation crash the party, you might be left with crumbs. Here’s why it’s time to rethink where you stash your cash. [Read here.]

The Week Ahead 🔍

Get ready for a high-stakes week as the market’s biggest players and key economic indicators take the stage. Here’s what’s coming up:

Monday

• Earnings from Waste Management, Ford, and ON Semiconductor

Tuesday

• Earnings from Alphabet (Google), Visa, AMD, McDonald’s, Pfizer, Anheuser-Busch, BP, PayPal, Chipotle, Spotify, Phillips 66, Royal Caribbean, and Snap

• Case-Shiller home price index, Consumer Confidence (est. 99.2), and Job Openings (est. 7.9M)

Wednesday

• Earnings from Microsoft, Meta, Eli Lilly, AbbVie, Caterpillar, Booking Holdings, Starbucks, DoorDash, Coinbase, Allstate, MicroStrategy, Kraft Heinz, Carvana, eBay, and Robinhood

• Q3 GDP growth (est. 3.2%)

Thursday

• Earnings from Apple, Amazon, Mastercard, Merck, Shell, Uber, Comcast, ConocoPhillips, Intercontinental, Intel, Cigna, Altria, Atlassian, Estee Lauder, Roblox, and Hyatt

• Core PCE inflation (est. 0.2%), Personal Income growth (est. 0.4%), and Personal Spending growth (est. 0.4%)

Friday

• Earnings from Berkshire Hathaway, Exxon Mobil, and Chevron

• Non-Farm Payrolls job growth (est. 140k), and Unemployment Rate (est. 4.1%)

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.