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Happy Sunday! |
The Fed held interest rates steady this week, keeping its policy range at 4.25% to 4.5%. |
Rates have remained unchanged since December, as the central bank navigates expectations of higher inflation and slower growth. Still, the Fed's dot plot suggests two rate cuts are likely before year-end.
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Fed Governor Christopher Waller, considered a potential successor to Powell, said he supports a cut as early as July. |
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Meanwhile, Donald Trump continued to criticize Powell on Truth Social, calling him a "numbskull" and "a dumb guy." |
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Some key data bites from this week that you should know: |
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In today's newsletter: |
๐ 15 Compounding Machines ๐ Undervalued Stocks To Watch ๐บ YouTube Is A Cash Cow ๐ Most Valuable Drugmakers ๐ต Companies With Most Profit
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Let's jump right in. |
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๐ฃ Together With StartEngine |
StartEngine's $30M Surge โ Own a Piece Before June 26 |
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Private markets are having a moment, thanks to companies like StartEngine. |
The leading alternative investing platform is helping everyday investors like you access deals once reserved for VCs and insiders, including exposure to private market titans like OpenAI, Databricks, and Perplexity.ยน |
How's it going? In Q1 2025, StartEngine pulled off $30M in revenue, its biggest quarter ever (based on unaudited financials).ยฒ |
But StartEngine isn't just a middleman. The company earns 20% carried interest on select pre-IPO offerings, unlocking value for shareholders when these deals succeed.ยณ |
How can you tap into this diversification play? By investing in StartEngine. |
StartEngine has crowdfunded $85M+ to date, and you can join 45K+ shareholders before the company's current round closes on June 26. |
Invest in StartEngine |
Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page. |
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Want to know if a company truly creates value? |
Look at its Return on Invested Capital, or ROIC. ROIC measures how efficiently a company turns its capital into profits.
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It reveals whether a business is generating returns above the cost of that capital, something only great companies consistently do. |
Companies that maintain high ROIC over long periods typically outperform the market. |
A high ROIC often signals strong management, disciplined reinvestment, and a lasting competitive edge. For long-term investors, it's one of the clearest indicators of quality.
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Markets have been shaky lately, but volatility often brings opportunity. |
One way to spot potentially undervalued stocks in this kind of environment is by using the Price/Earnings-to-Growth (PEG) ratio. Unlike the basic PE ratio, PEG accounts for expected earnings growth, offering a more complete view of valuation.
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The metric was popularized by legendary investor Peter Lynch, who looked for companies trading at a PEG below 1. |
Today, several notable names fall into that category: Nu Holdings, UBS, Pinterest, Capital One, Southwest Airlines, and International Paper.
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Of course, a PEG under 1 doesn't guarantee a bargain. |
It's a sign the stock might be undervalued relative to its growth, but it still requires a closer look. Also keep in mind, PEG ratios vary depending on the earnings estimates used.
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Still, it remains a useful tool when evaluating opportunities in an uncertain market. |
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Despite being around for two decades, YouTube's growth shows no signs of slowing down. |
Shorts, its short-form video feature, is now averaging 200B daily views, nearly triple the 70B it saw at launch in 2021. Viewers are also spending more time on the big screen, with over 1B hours of YouTube watched on TVs each day.
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That engagement is fueling serious revenue. |
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Who owns YouTube? |
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Perhaps even more impressive than YouTube's growth is the fact that Alphabet posted $111B in net income over the past twelve months. |
This makes it the most profitable company in the world, and ahead of other tech titans like Apple, Microsoft, and Nvidia.
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Yet Alphabet trades at just 19x earnings due to ongoing antitrust risks and rising competition from AI challengers like ChatGPT and Perplexity. |
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Eli Lilly is doubling down on innovation to protect its lead. |
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It follows a string of recent acquisitions. |
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Driving this aggressive push is the success of Mounjaro and Zepbound. |
These blockbuster drugs have helped propel Lilly to a $705B market cap, making it the world's most valuable pharmaceutical company. |
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๐ Skims Stall. Nike has delayed launch for new brand with Kim Kardashian's Skims due to production delays - BB | ๐ Headcount Hit. Microsoft is planning thousands of job cuts, primarily targeting sales roles - R | ๐จ๐ณ Waiver Ban. US is considering terminating waivers that allows chipmakers to send American technology to China - CNBC | ๐ช Ad Expansion. Meta is finally opening WhatsApp to business ads - CNBC | โ
Stablecoin Win. The Senate passed the GENIUS Act, establishing a federal framework for dollar-pegged stablecoins - CNBC | ๐ต Delayed Fate. Trump will delay the TikTok ban with another 90 day extension - TC | โค๏ธ Tinder Together. Tinder is reintroducing its double dating feature after a failed 2016 launch - BB |
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 | Courtesy of our paid partner, EarningsHub. |
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Notable Companies Reporting Earnings Week of June 22nd, 2025: |
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Here's what I will be watching this week: |
Tuesday: FedEx $FDX, Carnival Corporation $CCL Wednesday: Micron Technology $MU, Paychex $PAYX Thursday: Nike $NKE, Walgreens Boots Alliance $WBA
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EarningsHub helps me stay on top of earnings, forecasts, and AI-powered call recaps. |
It's free, and perfect if you want to track every major company reporting. |
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 | Major Trades Published 6/16 - 6/20. Trades may be those of family members. [Source: 2iQ] |
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Buys |
Tim Moore (R) Jonathan Jackson (D)
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Sells |
Tim Moore (R) Jonathon Jackson (D)
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 | Major Trades Published 6/16 - 6/20 |
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Buys |
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Sells |
IonQ ($IONQ) Tempus AI ($TEM)
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How was today's newsletter?I value all of the feedback that I receive. Let me know how I did so I can continue to make this the best investing newsletter available! |
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๐ค Review of the Week |
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