Final Trade: SERV, VRT, SPOT, XOM

Key Concepts

• Serve Robotics: A robotics company presenting at CES, experiencing stock pressure.
• SoftBank: A technology conglomerate, known for market timing and recent NVIDIA stake sale.
• VRT (Vertu): A company identified as an AI infrastructure play.
• NVIDIA: A semiconductor company whose stock was previously held by SoftBank.
• Spotify & Netflix: Streaming services identified as potentially interesting investment opportunities.
• CES (Consumer Electronics Show): A technology trade show.
• Year-to-Date (YTD): Performance of a stock since the beginning of the current calendar year.
• Directional Bias: The tendency of an investment to move in a particular direction.
• Top Tick the Market: To invest at or near the peak of a market cycle.

Market Commentary & Investment Ideas – January 9th

The discussion centers around quick market observations and potential investment opportunities during the final minute of trading. Steve Grasso initiates the conversation by referencing a stock mentioned by Dan Ives: Serve Robotics. He highlights that the company is currently facing downward pressure, being down 27% year-to-date (YTD). The context is Serve Robotics’ presence at the Consumer Electronics Show (CES).

Grasso notes a pattern with SoftBank, suggesting the conglomerate has a “tendency to top tick the market,” meaning they often invest near market peaks. However, he acknowledges that SoftBank’s actions can provide valuable directional bias for investors, implying their movements can indicate potential market trends. He specifically recommends looking at VRT (Vertu) as a company involved in the AI infrastructure play.

A related point is raised regarding SoftBank’s recent performance. It’s noted that SoftBank is down nearly 30% since it sold its entire stake in NVIDIA a couple of months ago. This data point reinforces the observation about SoftBank’s market timing and potentially its impact on investor sentiment.

Shift in Focus: Streaming Services

The conversation then pivots away from robotics and AI infrastructure. Grasso clarifies that Serve Robotics is not his final pick for the day. Instead, he identifies Spotify and Netflix as starting to look “interesting.” This suggests a potential shift in his investment outlook towards the streaming sector, though the reasoning behind this assessment isn’t elaborated upon within this brief excerpt.

Jason Coleman’s Input

The segment concludes with a brief acknowledgement of Jason Coleman, indicating he is the next contributor to the discussion, though his specific input isn’t provided in the transcript.

Synthesis

The core takeaway from this short exchange is a rapid-fire assessment of market conditions and potential investment ideas. While Serve Robotics and Vertu are initially presented as points of interest linked to SoftBank’s influence and the AI sector, the focus ultimately shifts towards Spotify and Netflix as potentially attractive opportunities. The discussion emphasizes the importance of observing market trends, recognizing patterns in the actions of major players like SoftBank, and adapting investment strategies accordingly. The mention of specific percentage declines (27% YTD for Serve Robotics, nearly 30% for SoftBank post-NVIDIA sale) provides concrete data points for further analysis.