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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.

Fed Governor Christopher Waller, considered a potential successor to Powell, said he supports a cut as early as July.

"We've been on pause for six months thinking that there was going to be a big tariff shock to inflation. We haven't seen it," Waller said.

Meanwhile, Donald Trump continued to criticize Powell on Truth Social, calling him a "numbskull" and "a dumb guy."

He hinted at firing Powell, though a recent Supreme Court ruling eased concerns about presidential overreach, given the Fed's independent structure.
Powell's current term runs through May 2026.

Some key data bites from this week that you should know:

Coatue released 2030 market cap estimates for 40 top tech firms.
Meta is offering $100M signing bonuses to poach OpenAI talent.
Massive data breach exposed 16B passwords from Apple, Google, and Facebook.
Elon Musk's xAI is burning through $1B a month due to high AI costs.
Trump reported over $600M in income from crypto, golf, licensing fees.
Masa Son wants to build a $1T US AI Hub in Arizona with TSMC.
Amazon to invest $13B to expand data center infrastructure in Australia.
OpenAI won a $200M contract with US Defense Department.
Central banks are ramping up gold with 43% planning to boost reserves.
Buss family purchased LA lakers for $67.5M and sold for $10B.
Texas Instruments will invest $60B to expand its US manufacturing.
Retail sales extended a two-month slide, falling 0.9% in May.

In today's newsletter:

📠 15 Compounding Machines
📈 Undervalued Stocks To Watch
📺 YouTube Is A Cash Cow
💉 Most Valuable Drugmakers
💵 Companies With Most Profit

Let's jump right in.

Partner With Us

📣 Together With StartEngine

StartEngine's $30M Surge — Own a Piece Before June 26

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.¹

How's it going? In Q1 2025, StartEngine pulled off $30M in revenue, its biggest quarter ever (based on unaudited financials).²

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.³

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.}

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.

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.

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.

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.

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.

Still, it remains a useful tool when evaluating opportunities in an uncertain market.

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.

That engagement is fueling serious revenue.

In 2024, YouTube generated $36B in ad revenue, up 4.5x from the $8B it brought in back in 2017.

Who owns YouTube?

None other than Google's parent company, Alphabet.

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.

Yet Alphabet trades at just 19x earnings due to ongoing antitrust risks and rising competition from AI challengers like ChatGPT and Perplexity.

With the S&P 500 at 28x earnings, the stock sits at a 30% discount to the broader market.

Eli Lilly is doubling down on innovation to protect its lead.

This past week, the company announced plans to acquire Verve Therapeutics for up to $1.3B.
The deal aims to advance one-time gene-editing treatments for patients at high cardiovascular risk.

It follows a string of recent acquisitions.

In January 2025, Lilly bought Scorpion Therapeutics for up to $2.5B to gain access to a precision oncology platform.
Back in July 2024, it acquired Morphic Holding for $3.2B to expand in autoimmune and GI care.

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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👚 Skims Stall. Nike has delayed launch for new brand with Kim Kardashian's Skims due to production delays - BB

📉 Headcount Hit. Microsoft is planning thousands of job cuts, primarily targeting sales roles - R

🇨🇳 Waiver Ban. US is considering terminating waivers that allows chipmakers to send American technology to China - CNBC

🚪 Ad Expansion. Meta is finally opening WhatsApp to business ads - CNBC

✅ Stablecoin Win. The Senate passed the GENIUS Act, establishing a federal framework for dollar-pegged stablecoins - CNBC

🎵 Delayed Fate. Trump will delay the TikTok ban with another 90 day extension - TC

❤️ Tinder Together. Tinder is reintroducing its double dating feature after a failed 2016 launch - BB

Courtesy of our paid partner, EarningsHub.

Notable Companies Reporting Earnings Week of June 22nd, 2025:

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

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.

Check Out EarningsHub!

Major Trades Published 6/16 - 6/20. Trades may be those of family members. [Source: 2iQ]

Buys

Tim Moore (R)
- Company: Direxion Daily Small Cap Bull 3X ETF ($TNA)
  - Amount Purchased: $160K - $400K
- Company: Ford ($F)
  - Amount Purchased: $95K - $250K
Jonathan Jackson (D)
- Company: IBM ($IBM)
  - Amount Purchased: $50K - $100K

Sells

Tim Moore (R)
- Company: American Airlines ($AAL)
  - Amount Sold: $250K - $500K
- Company: Ford ($F)
  - Amount Sold: $100K - $250K
Jonathon Jackson (D)
- Company: Linde PLC ($LIN)
  - Amount Sold: $50K - $100K

Major Trades Published 6/16 - 6/20

Buys

Marriott Vacations Worldwide ($VAC)
- Insider: Christian Asmar (Director)
  - # of Shares Purchased: 750,000
  - $ Amount: $50,873,606
  - SEC Forms: [1]
Nuvation Bio ($NUVB)
- Insider: David Hung (President and CEO)
  - # of Shares Purchased: 500,000
  - $ Amount: $893,500
  - SEC Forms: [1]

Sells

IonQ ($IONQ)
- Insider: Peter Chapman (Executive Chair)
  - # of Shares Sold: 5,989,244
  - $ Amount: $230,732,263
  - SEC Forms: [1], [2]
Tempus AI ($TEM)
- Insider: Eric Lefkofsky (CEO and Chairman)
  - # of Shares Sold: 500,000
  - $ Amount: $34,876,062
  - SEC Forms: [1]

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