Mad Hedge Technology Letter
February 16, 2024
Fiat Lux
Featured Trade:
(THE RIDE SHARING KING OF TECH)
(UBER), (LYFT)

Mad Hedge Technology Letter
February 16, 2024
Fiat Lux
Featured Trade:
(THE RIDE SHARING KING OF TECH)
(UBER), (LYFT)

It’s hard to believe that Uber (UBER), the ride-sharing company, is where it’s at now and by that, I mean delivering profits.
It was just only a few years ago when burning money was something they were known for and beginning the next lender to fund them was a common request.
That was the era of cheap money where 0% interest rates created companies like Uber and this capital was the oxygen they needed to keep trying until they could make it work.
Much of the early years were characterized by a fierce competition with competitor Lyft (LYFT) offering subsidies to drivers.
Fast forward to today and they also have a sparkling food delivery business and are projected to continue to grow in the first quarter of 2024.
The company carved out a profit of $1.43 billion in the final three months of 2023, which included a $1 billion benefit from its equity investments as well as income from its operations.
The company has turned an annual profit once before, in 2018 on the back of its investments, but it wasn’t earning money from its operations until now.
The company’s performance in the last three months of 2023 suggests that demand for its ride-sharing and food-delivery services remains robust.
From 2016 through the first quarter of 2023, Uber bled cash close to $30 billion in operating losses.
The company posted its first quarterly operating profit in the second quarter of 2023. The company was founded in 2009.
It was also better than Lyft at responding to a sudden driver shortage after the economy reopened from lockdowns. That helped Uber gain market share.
Lyft is still twisting in the wind of mediocrity and has yet to post its first operating profit.
Uber expanded advertising on its app over the past year. It says it has continued to become more disciplined about spending on discounts to consumers and incentives to drivers. It says it has also become better at combining deliveries and reducing errors, which has improved its operational efficiency.
In the last three months of 2023, the company’s mobility revenue grew 34% and its delivery revenue expanded 6%, while its revenue from freight declined 17%.
After bottoming around $19 per share in the middle of 2022, the stock has been on a rampage and now sits nicely at over $81 per share.
No doubt the stock benefited from last year's slew of capital betting on the Fed to drop interest rates.
I even anointed Uber as my number 1 stock of 2023 and their performance delivered in spades.
What we are witnessing is the maturity of the company and I am not saying they are going to deliver profit back to the shareholder like a FANG, but the conversation will start and that should carry momentum.
The US economy is still going strong growing a few percentage points per quarter and that means US consumers are still spending and that is good for ride-sharing and food delivery.
Uber is sitting nicely as they are a monopoly in this area of technology services.
I am bullish Uber.


When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Global Market Comments
February 16, 2024
Fiat Lux
Featured Trade:
(JOIN ME ON CUNARDS QUEEN ELIZABETH FOR MY SATURDAY JUNE 29 ALASKA SEMINAR AT SEA),
(TESTIMONIAL)

Merry Christmas & Happy New Year to you and your family! You are my hero, and who I aspire to be. Be well and see you in 2024!
Sincerely,
Wilson
Mill Valley, CA

“Large round numbers in the market act as rusty doors and sometimes need several swings before you can get through,” said Sam Stovall of CFRA Research.

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Mad Hedge Biotech and Healthcare Letter
February 15, 2024
Fiat Lux
Featured Trade:
(TACKLING THE BIG C)
(PFE), (BNTX), (BMY), (ABBV), (AZN)

Super Bowl Sunday: not just a day for football fanatics but a golden opportunity for brands to shine brighter than the halftime show, captivating over 100 million pairs of eyes.
Amid the usual suspects of beers, cars, and fizzy drinks, an unexpected name popped up on the screen: Pfizer (PFE). The Big Pharma titan threw its hat in the ring with a multimillion-dollar message that could be summed up as a toast to science itself.
Here’s how Pfizer’s ad went: animated legends of science — from Newton to Einstein, alongside Rosalind Franklin and Katalin Karikó — belting out an ode to medical milestones to the tune of Queen’s “Don’t Stop Me Now.” Add a dash of whimsy with a cameo from penicillin and a crooning tardigrade, culminating in the heartwarming sight of a young cancer survivor leaving the hospital to applause.
This cinematic piece wasn’t just about selling a product; it was about selling a dream, one where science leads the charge against cancer, underscored by Pfizer’s new rallying cry, "Outdo Yesterday," and a nudge towards LetsOutdoCancer.com.
Shrouded in mystery is the exact price Pfizer paid for this 60-second spectacle — shortened from its original 90-second glory.
But, my sources say that the pharma giant shelled out around $6.5 million to $7 million for half that time, making Pfizer’s splurge no drop in the bucket, especially juxtaposed against a recent $15 million pledge to the American Cancer Society.
This grand gesture comes at an important milestone, marking Pfizer’s 175th year and a concerted push to cast a vibrant, forward-looking shadow across its brand, appealing to the public, investors, and its own ranks alike.
After all, it’s an open secret that Pfizer’s looking to weather a storm, with its COVID-19 vaccine sales dwindling.
Despite riding high on the COVID-19 vaccine wave in partnership with BioNTech (BNTX), raking in roughly $57 billion across 2021 and 2022, Pfizer's financial seas have been anything but calm. The stock’s dramatic descent from its late 2021 peak paints a picture of uncertainty, rooted in the sobering performance of its COVID-19 titans, Comirnaty and Paxlovid.
Yet, as we can see, Pfizer’s narrative isn’t one of gloom. Stripping away the pandemic’s shadow reveals a company in robust health, with a 7% operational growth and a record seven FDA nods in 2023 alone.
Speaking of making it rain, Pfizer's not just throwing its COVID-earned billions around for kicks. For example, they've laid down a cool $43 billion on the table to bring oncology biotech Seagen into the fold.
This acquisition isn't your everyday shopping spree either. It's a move designed to transform Pfizer into the leader of the antibody-drug conjugate (ADC) movement in cancer therapy, potentially beating the likes of Bristol Myers Squibb (BMY), AbbVie (ABBV), and AstraZeneca (AZN).
Think of this move as the biopharma eyeing Seagen's $3 billion in 2023 revenue and saying, "Let's crank this up to $10 billion by 2030." Ambitious? Absolutely. But if anyone's got the blueprint to make it happen, it's Pfizer.
The pivot to cancer isn’t just a strategic shift but a play for the heartstrings of a global audience. With cancer touching lives universally, Pfizer’s Super Bowl gambit seeks to transcend its COVID-19 narrative, aiming for a connection that’s both deeper and more universal. The deliberate omission of its vaccine from the ad speaks volumes, aiming to bridge divides in a viewership as diverse as the Super Bowl’s.
Still, the true measure of its Super Bowl splash — beyond the ad’s immediate sparkle — may lie in subtler indicators, from stock movements to talent retention and a potential surge in interest around its cancer-fighting mission.
Whether this move translates into a long-term win for Big Pharma titan remains to be seen, but for now, the spotlight isn’t just on the Chiefs’ victory but on Pfizer’s leap into the hearts and minds of millions, championed by science and the indomitable spirit of innovation. I suggest you buy the dip.

Global Market Comments
February 15, 2024
Fiat Lux
Featured Trade:
(SPECIAL INCOME TAX ISSUE)
(THE TAX RATE FALLACY)
(THANK GOODNESS I DON’T LIVE IN SWEDEN)
(EWD)

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