The Cat Has 9 Lives, But The Kitty Has 9,000,000 Shares

US stocks hit new records, led by the S&P 500 and Nasdaq while investors are trying to navigate how to handle the Fed's cautious rate strategy. Let’s see what else flew under your radar.

Today’s issue covers Tesla shareholders green-lighting Elon Musk's $56 billion payday and the company's Texas move…

Broadcom exploding 12% off of earnings…

And the Roaring Kitty exiting one position, and YOLO’ing like we’ve never seen before.

Before we get to this historic moment for our nation…
 

Here’s the heatmap for today.

US stocks continued their victory lap on Thursday. The S&P 500 and Nasdaq Composite both broke records (again), while the Dow Jones decided to take a tiny nap, dipping just a smidge.

So, what's the buzz? Investors are navigating the twin forces of easing inflation and the Federal Reserve's cautious approach to interest rate cuts. The Fed, led by Chair Jerome Powell, hinted at scaling back rate cuts from three to just one this year. But traders, ever the optimists, are still betting on two rate cuts come September. Who's right? We'll see.

Speaking of inflation, May's producer price index cooled off by 0.2%, a welcome change after April's 0.5% rise. Maybe, just maybe, the inflation dragon is finally starting to retreat.

And in the tech world, it was another banner day. Nvidia saw a 3% uptick, while Broadcom shot up 12% after unveiling its quarterly results. The tech giants Microsoft and Apple also reached new heights. Tech stocks have been leading the charge for the past month and show no signs of slowing down. It's clear: tech is the star of this market show.

Elon Gets PAID

Alright, Tesla fans and skeptics alike, buckle up because the drama around Elon Musk's $56 billion pay package just hit a new high. On Thursday, Tesla (TSLA) shareholders gave a resounding "thumbs-up" to Musk’s eye-watering compensation plan. This is not just any payday; it’s the biggest in U.S. corporate history, folks.

The vote of confidence comes amid Tesla's rollercoaster ride through EV market challenges. And guess what? Shareholders also approved moving Tesla’s legal HQ from Delaware to Texas, because why not keep things interesting?

Musk, always one to keep us on our toes, hinted on his social media platform X that the proposals were winning big. Spoiler alert: they did. This approval highlights the unwavering support Musk enjoys from Tesla’s loyal retail investors, despite some big institutional players and proxy firms shaking their heads in disapproval.

However, it’s not all smooth sailing for Musk. A Delaware judge previously described the pay package as "unfathomable" and invalidated it in January. So, expect some more courtroom drama as Musk defends his mega payday. Fresh lawsuits could also spring up, just to keep things lively.

This shareholder nod doesn’t just pad Musk’s wallet; it’s a clear sign that investors believe in his leadership and don't want to risk Tesla’s future without him. Earlier this year, Musk even threatened to take his AI and robotics projects elsewhere if he didn’t get the votes he needed. Talk about high stakes.

Musk’s focus has shifted to robotaxis, sidelining cheaper mass-market EVs, which has some investors biting their nails. Tesla's stock has taken a 60% nosedive from its 2021 peak, partly due to Musk’s attention being spread across his other ventures, like SpaceX, X (formerly Twitter), and his new AI firm, xAI. Yet, the stock closed up 2.9% on Thursday, thanks to this vote of confidence.

“This vindicates Musk and calms some investor concerns about his waning interest in Tesla,” said Sandeep Rao from Leverage Shares, which holds Tesla stock. The board has stood by Musk, stating he earned his keep by hitting all ambitious targets for market value, revenue, and profitability.

Despite big names like the California Public Employees' Retirement System calling the package “excessive,” Musk’s team rallied retail investors, who often don’t vote, to support him. Executives posted messages on X and even promised factory tours for shareholders who cast their ballots.

While Musk's leadership is seen as Tesla’s driving force, his plate is undeniably full with six companies to his name. Georgetown business professor Jason Schloetzer points out that shareholders seem to believe Musk is irreplaceable, even as Tesla becomes more reliant on him.

The Delaware judge had criticized Tesla’s board for being too cozy with Musk, leading to the original ruling against the pay package. Holding this shareholder vote is Tesla’s way of strengthening their appeal.

So, in a nutshell, Elon Musk’s $56 billion pay package is officially a go, backed by enthusiastic shareholders who just can’t get enough of the man behind the Tesla magic. Buckle up for the legal battles, folks; this ride is far from over.

Stock.News Spikers of the Day

ZAPP Electric Vehicles Group Limited: [ZAPP] [+239.86%]

Nexalin Technology, Inc.: [NXL] [+120.99%]

The Cat Has 9 Lives, But The Kitty Has 9,000,000 Shares

Our favorite feline-themed trader, Keith Gill—aka ‘Roaring Kitty’—has dropped a bombshell update on Reddit, and it's a doozy. Gill’s latest YOLO portfolio post on r/Superstonk reveals he's dumped his call options and now holds a whopping 9 million GameStop shares.

So, what’s the scoop? On Wednesday and Thursday, GameStop $20 call options set to expire on June 21 saw a massive spike in activity. On Wednesday, 93,266 contracts traded hands, mostly in the last half hour, making it the hottest option in town. Thursday morning followed suit with another 41,230 contracts changing hands by midday, with many trades close to the bid, hinting at selling pressure.

It turns out Gill probably exercised 40,010 of his 120,000 call options and sold the rest, using the cash to buy an additional 4,001,000 GameStop shares. This YOLO move leaves him with $6.3 million in cash, down from $29.4 million. Last week, his portfolio was valued at over half a billion dollars, but after some strategic moves and GameStop's $75 million share capital raise, it's now around $268 million.

All this drama unfolded just as GameStop was supposed to have a shareholder meeting on Thursday, which got postponed because of technical hiccups with the live stream. Classic.

The trading frenzy suggests that Gill might have "sold to close" part of his position, according to Christopher Jacobson from Susquehanna International Group. After all, GameStop shares have nearly doubled to over $45 this month before cooling off. With expiration looming, everyone’s wondering if Gill will cash in his options for shares or just close out.

But no more speculation is needed. Gill’s recent Reddit post confirms he’s all-in on GameStop, now holding 9,001,000 shares. This move has freed him from the pressure of looming option expirations and effectively doubled down on his GME bet.

As of now, Gill hasn’t commented on his recent trades, leaving everyone guessing. But no matter what, retail traders are likely to cheer him on. As Wedbush Securities analyst Michael Pachter put it, “They’ll say: good for him.”

So there you have it, folks. Roaring Kitty is still roaring loud and proud, with a mountain of GameStop shares to prove it.

Stocks.News have positions in Tesla