To The Moon

💰The show is on. Will the first trading day of Trump 2.0 deliver strong performance?

💹 $SoFi Technologies Inc.(SOFI)$, $Nu Holdings Ltd.(NU)$, and $Bread Financial Holdings, Inc.(BFH)$ have great potential for growth in the evolving market environment.

📣Stay tuned, supercharge purchasing power through CashBoost!

| Market recap

Last week, the market saw a series of reversals: Wednesday saw a broad rally, Thursday a widespread decline, and Friday another broad rally. For the week, major indices posted gains, marking the largest weekly increase since the November elections: $.DJI(.DJI)$ rose 3.69%, the S&P 500 $.SPX(.SPX)$ gained 2.91%, and the Nasdaq $.IXIC(.IXIC)$ climbed 2.45%.

On Friday, $Tesla Motors(TSLA)$ rose over 3%, and $NVIDIA(NVDA)$ gained more than 3%. $NASDAQ Golden Dragon China Index(HXC)$ finished up 3.18% for the day, with a weekly gain of 6.19%, outperforming the broader U.S. market.

Headline

All three major U.S. stock futures continued to rise after Trump’s presidential inauguration. President Trump took office, pledging "America First" but did not mention new tariffs, which lifted market sentiment. $Trump Media & Technology(DJT)$ declined by 1.32% in after-hours trading.

Focus

- Bitcoin accelerated its decline, dropping to $100,100 during trading. Earlier, following the launch of a personal meme coin by the Trump couple, Bitcoin had briefly surged above $100,900, setting an intraday record high. $MicroStrategy(MSTR)$ fell 2.54% in after-hours trading.

- On January 16, 2025, Canalys reported that iPhone shipments in China fell by 25% in Q4 2024, while Huawei’s shipments grew by 24% during the same period. This significant shift underscores the growing challenges $Apple(AAPL)$ faces in the Chinese market.

TikTok Saga

TikTok received a 75-day extension—can it catch its breath? Last weekend, TikTok’s parent company proactively removed four apps from the U.S. market, signaling a firm stance. Just 12 hours later, they announced the restoration of services. On last Friday, $Meta Platforms, Inc.(META)$ briefly dropped over 1%, nearly touching its 20-day moving average before rebounding, ultimately closing up 0.24%. $Snap Inc(SNAP)$ saw a significant volume-driven drop of over 3%.

| All attention

The first earnings season of 2025 has officially kicked off, with the financial sector once again leading the way in earnings releases. Driven by strong earnings reports, $Morgan Stanley(MS)$ rose 4%.

This week, major financial institutions will report their quarterly results, including $Charles Schwab(SCHW)$ and $Capital One(COF)$ on Tuesday, and $American Express(AXP)$ on Friday.

Wall Street is generally bullish on the broader U.S. stock market for 2025. However, expectations are for slower growth compared to the past two years, with the possibility of a sharp upward trajectory being reduced. During this period, investors may find opportunities to buy on dips.

| Consumer Economy: Where good is good

Economic data continues to show improvement, with lower unemployment and stronger consumer financial conditions, helping drive the growth of consumer finance businesses. In 2025, factors such as slowing inflation, real wage growth, gradually declining interest rates, and more reasonable loan standards are expected to support growth in consumer finance companies’ performance.

SOFI

$SoFi Technologies Inc.(SOFI)$ is a comprehensive financial product platform that initially focused on student loans, making it a typical consumer finance company with 85% of its business in personal finance.

SOFI aims to become a one-stop financial services provider, offering savings, loans, cash management, investment accounts, and home loans. Its target customers are affluent younger individuals.

Since the Federal Reserve began cutting interest rates, SOFI’s loan business has seen a rapid rebound. Since the first rate cut in September, the stock price has risen by over 80%.

NU

$Nu Holdings Ltd.(NU)$ is a fintech company focused on Latin America and South America.

It has attracted the attention of big names: Both Cathie Wood and Warren are holding positions.

The company’s valuation is particularly attractive, and it is expanding from Brazil into Mexico, Colombia, and Argentina, supporting its valuation growth.

BFH

$Bread Financial Holdings, Inc.(BFH)$ (formerly Alliance Data Systems Corporation) provides simple, personalized payment, lending, and savings solutions for individual users. It also offers a suite of white-label digital products, including proprietary and co-branded credit cards, installment loans, and buy-now-pay-later (BNPL) services.

$Bread Financial Holdings, Inc.(BFH)$’s stock price surged to a 52-week high in December, with a price-to-earnings ratio of 9.88, and has maintained consistent dividend payments for nine consecutive years.

The company extended a $700 million unsecured revolving credit facility, improved its terms, and diversified its product portfolio by partnering with over 100 brands. The company is optimistic about a gradual economic recovery and is prepared to mitigate the impact of potential regulatory changes.

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