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- 📈 Archer's 23% Liftoff
📈 Archer's 23% Liftoff
Trump Seals $1T Saudi Deal, Nvidia Rallies On Saudi AI, Chime Files For IPO, eToro Sets $52 IPO Price, Verizon's $5B Small Business Bet
Evelio Silvera
May 14, 2025
Good morning.
⚡ The Fast Five → Trump Seals $1T Saudi Deal, Nvidia Rallies On Saudi AI, Chime Files For IPO, eToro Sets $52 IPO Price, Verizon's $5B Small Business Bet
🔎 Market Trends → S&P, Nasdaq end higher on soft inflation data, trade optimism; US Futures Steady Ahead of Key Inflation Data
And now…
⏱️ Your 5-minute briefing for Wednesday, May 14, 2025:
MARKET BRIEF
Before the Open
As of market close 05/14/2025.
Pre-Market
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Fear & Greed
Markets in Review
Nvidia Lifts Nasdaq as Inflation Miss Fuels Fed Patience
Stocks ended Tuesday on a mixed note. The Nasdaq climbed 1.6% to 19,010.1, powered by Big Tech, while the S&P 500 rose 0.7%. The Dow slipped 0.6%, weighed down by health care.
The Big Picture:
April’s inflation print missed forecasts—a modest victory for the Fed’s credibility and a green light for tech bulls. Annual CPI dropped to a three-year low, fueling optimism that tariff effects haven’t yet infiltrated prices—at least not in force.
While headline risk remains high with global trade in flux, investors latched on to receding inflation and surging innovation, especially around AI. The broader market took a pause, but tech’s forward momentum remains intact.
The White House’s announcement that Saudi Arabia plans to invest $600 billion in U.S. sectors like energy, AI, and minerals also added fuel to the bulls.
Market Movers:
Nvidia (NVDA) popped 5.6%, leading the Dow, after unveiling a high-profile AI partnership with Humain backed by Saudi funding.
First Solar (FSLR) soared 23% as Wolfe Research issued a bullish upgrade, citing valuation and tailwinds from trade policy.
Coinbase (COIN) jumped 24% as its imminent inclusion in the S&P 500 boosts institutional interest.
UnitedHealth (UNH) tanked 18%, the Dow’s worst, after suspending its forecast amid higher-than-expected medical costs and a sudden CEO exit.
What They’re Saying:
"There isn't a lot of evidence of tariffs boosting the CPI in April, but this shouldn’t be surprising—it takes time." — Oxford Economics
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Cisco Systems, Boot Barn Holdings, Haleon, NexGen Energy
Tomorrow: Walmart, Alibaba, Deere & Company, Take-Two Interactive, Dillard's, Birkenstock, LG Display
MARKET BRIEF
Leading News
Archer's UAE Air Taxi Launch Powers 23% Stock Surge
Photo Credit: Archer Aviation
Why it matters:
Archer Aviation's imminent UAE air taxi deployment signals the dawn of urban air mobility as a viable commercial reality, not just a sci-fi fantasy.
Zoom Out:
The eVTOL (electric vertical takeoff and landing) pioneer surged nearly 23% Tuesday after confirming it's on track to deliver its first Midnight aircraft to the UAE within months. This marks the fifth consecutive day of gains for a stock that investors had largely dismissed as speculative until recently.
While the broader market digested April's encouraging inflation report (annual rate down to 2.3%, the lowest since February 2021), Archer's concrete timeline for commercial operations represents a crucial inflection point for the urban air mobility sector.
Key Insights:
Middle East beachhead: UAE's approval of Abu Dhabi's hybrid airport design adds tangible infrastructure backing to Archer's commercial launch plans, addressing one of the sector's most persistent hurdles (ACHR +22.91%)
Strategic partnerships accelerating: Beyond its UAE launch, Archer's collaboration with defense startup Anduril for military eVTOL development and a fresh partnership with Palantir (PLTR +8.14%) for AI-enhanced aviation systems demonstrate a multi-vertical revenue strategy
Runway remains solid: Despite pre-revenue status, Archer maintains over $1 billion in cash reserves against quarterly operating expenses of $144 million, giving investors confidence in its path to commercialization
Market Pulse:
"In the US, Midnight FAA certification continues to move forward with recent favorable standard clarifications," notes Benchmark analyst Josh Sullivan, who maintains a $12 price target and sees the Anduril partnership as "one of the largest opportunities at the company."
Bull’s Take:
Smart investors recognize that Archer's commercial deployment timeline puts it ahead of most air mobility competitors, creating an early-mover advantage in what Morgan Stanley projects as a $1 trillion market by 2040 – making today's entry price potentially look like a bargain in hindsight.
Headlines
UnitedHealth CEO leaves abruptly, company pulls forecast as shares sink (link)
Trump and Saudi Arabia Sign Deal for $1 Trillion in US Investments (link)
Nvidia Stock Retakes Key Level On Saudi AI Deal (link)
Chime Financial Files for IPO, Sees ‘Enormous Opportunity to Grow’ (link)
Stock and crypto trading site eToro prices IPO at $52 per share ahead of Nasdaq debut (link)
Verizon to invest $5 billion in US small business suppliers over next 5 years (link)
CRYPTO
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*Hat-tip to alifarhat79
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