Technology investors who voted for AMD and Nvidia (NVDA) over Intel (INTC) may regret the decision. Team Blue (Intel), plans to spend an aggressive $100 billion across four US states.
Intel will spend heavily to build factories. The firm secured $19.5 billion in federal grants and loans. It may get another $25 billion in tax breaks. INTC stock peaked at over $50 in Dec. 2023 before settling at around $42.00.
Still struggling to break out of a downtrend, Paramount (PARA) stock popped yesterday. Apollo (APO) is reportedly offering $11 billion to buy Paramount’s studio. The stock closed at exactly the resistance level. That is, the simple day moving average of 50 days at $12.51 on Wednesday.
Reddit’s (RDDT) is set to trade as the hottest IPO of the year. The company invited some of its Redditors to buy the stock at the same price as institutional investors. Unfortunately, these power users are reportedly not interested in participating in the investment.
Reddit is dealing with a patent infringement complaint from Nokia (NOK). The Securities and Exchange Commission is also investigating the social networking site’s licensing deal with OpenAI.
Expect RDDT stock to spike sharply higher when it starts trading. But like past IPOs, including Mobileye (MBLY), the follow-through rally is unlikely. Additionally, the lock-up expiry is an impending headwind. Insiders will likely rush to sell their stock. They may increase their cash holdings to avoid having their net worth tied to the stock.
