Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of more than 16,000 subscribers striving to be better investors with an edge in the market.

Every weekend we publish “The Weekly Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

Grab your coffee and let’s dive in.

Market Talk

The S&P 500 and Dow Jones rose as breadth in the overall market improved. Meanwhile, the Nasdaq was flat on the week as several mega cap stocks struggled, including Nvidia and Apple.

3 Stories Moving the Market

These are some of the biggest stories from the second half of the week that had an influence on market action.

Nvidia briefly passes Microsoft to become most valuable public company

Nvidia briefly surpassed Microsoft to become the world's most valuable public company on Tuesday as the chipmaker’s market cap touched $3.34 trillion.

However, Nvidia's stock fell by 6% to end the week, returning it to the third position behind Microsoft and Apple.

Despite this, Nvidia shares have surged over 170% this year, significantly boosted by its dominance in AI chips, which make up 80% of the market for data centers. This rise aligns with the growth of generative AI.

In the latest quarter, Nvidia's data center revenue increased 427% year-over-year to $22.6 billion, representing 86% of its total sales.

Apple stops offering buy now, pay later loans in U.S.

Apple has discontinued its Apple Pay Later program, which allowed customers to make purchases and pay in four interest-free installments.

This decision comes as Apple plans to introduce installment loans through third-party companies like Affirm and credit card issuers such as Citigroup later this year. Users seeking installment plans will now access them via other financial intermediaries, expanding availability beyond the U.S.

Apple emphasized its focus on secure and private payments with Apple Pay, and users with existing Apple Pay Later loans can still manage and pay them.

The move suggests that not all of Apple's fintech innovations become a success or align with its broader strategy.

📚 EDGE-UCATION: What is “Buy Now, Pay Later”?

"Buy now, pay later" (BNPL) is a type of financing option that allows consumers to purchase items immediately and pay for them over a set period, often in equal installments. Typically, these payments are interest-free if paid on time. BNPL services are offered by various providers and are integrated into the checkout process of many online and physical retailers. Here's a breakdown of how it works:

1. Purchase: A consumer selects the BNPL option at checkout.

2. Approval: The BNPL provider assesses the consumer's eligibility, often requiring a soft credit check.

3. Installments: The total purchase amount is divided into a series of equal payments, usually spread over weeks or months.

4. Repayment: The consumer makes regular payments according to the agreed schedule. These payments can be automated and are often interest-free if made on time.

BNPL services are popular because they offer consumers a way to manage their cash flow without paying upfront or incurring high-interest charges, provided they adhere to the payment terms. However, missed payments can result in late fees and affect credit scores.

Warren Buffett buys Occidental shares for 9 straight days, pushes his stake to nearly 29%

Warren Buffett’s Berkshire Hathaway has increased its stake in Occidental Petroleum to nearly 29% by purchasing 7.3 million additional shares over the past nine trading sessions.

These purchases, made at prices just under or above $60 per share, bring Berkshire’s total holding to over 255 million shares, making it Occidental's largest institutional investor.

Berkshire also owns $10 billion in Occidental preferred stock and has warrants to buy another 83.9 million shares.

Despite speculation of a takeover, Buffett has stated he does not intend to take full control of the company.

In other news, Buffett’s Berkshire Hathaway continued to trim its stake in China’s largest electric vehicle maker BYD, selling an additional 1.3 million shares and reducing its position to 6.9%, from 7%.

IE+ Posts of the Week

We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.

Edge Report

Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the possibility of a calm week ahead but that we were watching the VIX in anticipation of increased volatility in the weeks ahead. See the latest full report here:

The Week Ahead

Earnings season comes to an end next week, though investors will be more focused on the all important PCE report later in the week.

Earnings Reports

This is arguably the last week of earnings season. Then, after about three weeks, the next earnings season begins.

There are three names that we cover here at The Investor’s Edge that are scheduled to report. Here is the list of names we will be covering:

• Monday 6/24: --

• Tuesday 6/25: FedEx

• Wednesday 6/26: Micron

• Thursday 6/27: Nike

• Friday 6/28: --

Here is the full calendar of scheduled earnings releases:

Economic Reports

Next week will be all about the PCE report on Friday. As the Fed’s preferred inflation metric, investors will be watching this one closely ahead of the next Fed meeting in July.

There will also be the bank stress test reports, a slew of housing data, the latest GDP numbers, consumer sentiment, and several speeches from Fed members throughout the week.

The Investor’s Edge Discord is growing!

Our brand-new Discord server is growing quickly and we are excited to hear from so many intelligent minds!

The channel is tailor-made for investors like you who want to dive deeper into stocks, share insights, and engage directly with us.

Here's what happened in the Discord this week:

🗨️ Chat rooms: Investors discussed the the huge moves from names that reporting earnings like Crowdstrike, Lululemon and Dollar Tree, and shared their insights on the earnings. Members also dove into the number of jobs reports and shared their views on the overall economy.

🚨 Trade Alerts: Chris and Mark shared several trades, including additions to the portfolio and trades that set up their portfolios for the week.

Join us on Discord and let's level up our investing game together. The future of trading awaits—and you're invited to be a part of it! 🌟

Want more? Check out our other resources

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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.