RJ Hamster
🦉 The Night Owl Newsletter for December 2nd
Unsubscribe No AI Bots. Just Real Signals. (From Market Pulse Today)Wall Street’s Sleeping Giant: Is Amazon About to Wake Up?Written by Sam QuirkeShares of Amazon.com Inc. (NASDAQ: AMZN) closed Monday’s session just above $230, right around where they were back in January. Despite logging a 60% rally at one point in the months in between, the tech giant is now on track to finish roughly flat for 2025. For long-term investors who’ve watched the stock grind sideways since summer, that might seem disappointing, particularly when other mega-cap tech names have been continuing to set fresh highs. But for those of us on the sidelines thinking about opening a position, this consolidation could be the best setup Amazon has offered in years. A year of quiet trading has left it cheaper than many major tech stocks, even as its fundamentals continue to improve. Let’s jump in and see why “boring” might actually mean “coiled” in this instance. Amazon’s Sideways Chart Signals Strength, Not StagnationThe temptation is to read Amazon’s sideways performance as stagnation, but that misses the bigger picture. When a company delivers consistently strong earnings yet its share price doesn’t move, it’s often a sign of consolidation, rather than fading momentum. While many of its peers in the tech industry have started to have their stretched prices and valuations questioned, Amazon avoided that kind of scrutiny. Compare its current technical setup with that of other giants: Apple Inc. (NASDAQ: AAPL) was recently trading 6% above its 50-day moving average, while Alphabet Inc. (NASDAQ: GOOGL) was 19% above, versus Amazon, which was just 2.5% higher. That gap speaks volumes about which stocks might be due for a breather, and which ones are primed to catch up.It also matters that this consolidation comes amid rising market optimism. After wobbling through much of November, the S&P 500 has suddenly popped 5% in little more than a week. If this risk appetite continues into 2026, Amazon’s relatively subdued chart could give it more room to run if equities are about to start the next leg of the rally. Analysts Double Down on Bullish Amazon Stock ForecastsIt would be worrying if the tide had started to shift among analysts, who have spent much of 2025 calling Amazon a red-hot buy, but if anything, this trend is only getting stronger. A fresh update from Oppenheimer this week underscored the potential of the stock. On Monday, Dec. 1, the team there boosted its price target on Amazon to $305, implying almost 30% upside, and called for “significant upside” from the company’s AWS unit in the coming years. It’s now secret that AWS remains Amazon’s crown jewel and the main driver of its long-term profitability. The division’s accelerating capacity expansion, along with AI-driven efficiencies, suggests its best growth years may still be ahead. With cloud demand continuing to grow and Amazon’s market position quite strong, Oppenheimer’s bullish stance reflects a broader recognition that the company’s most profitable business line is still gaining momentum.And as MarketBeat has been highlighting in recent weeks, while this is just one of many optimistic stances taken by analysts in recent months, it isn’t even the most bullish. That title can go to Loop Capital, which gave Amazon a fresh street-high price target of $360 last month, suggesting more than 50% upside from current levels. This isn’t exactly the type of call you would see being made on a stock that was on the verge of turning over. Amazon Stock Offers a Strong Risk/Reward Setup Into 2026Another attraction to Amazon is its valuation, which the stock’s sideways action has favorably impacted. Even though earnings have been rising steadily, Amazon’s price-to-earnings (P/E) ratio is now lower than at any point in 2024, and cheaper than much of the last decade,That relative discount looks even starker when set against peers still priced for perfection. Many of the hottest AI-related names have very little room for mistakes heading into 2026, baggage Amazon doesn’t carry. This makes the current setup an appealing risk-reward trade in its own right. For investors thinking about getting involved now as we round the last corner of the year, 2025’s flat performance might end up being a gift. READ THIS STORY ONLINEDo Not Trade Bio-tech’s Before Reading This! (Ad)The biotech world is undergoing a seismic shift — right now.Regenerative medicine isn’t “the future” anymore… it’s happening, and it’s happening fast. And there’s one company — almost completely under Wall Street’s radar — that’s obliterating expectations in 2025.THIS WEDNESDAY, AFTER THE CLOSE, WE DROP THE FULL DEEP-DIVE REPORT.Checkmate in the Cloud: ServiceNow’s Shopping SpreeWritten by Jeffrey Neal JohnsonServiceNow (NYSE: NOW) is acquiring identity security startup Veza for over $1 billion—a move that underscores a much larger strategy in motion.For investors, this is the latest and clearest signal of a much larger ambition. ServiceNow is executing a well-funded, calculated roll-up strategy, methodically acquiring critical pieces of the enterprise artificial intelligence (AI) puzzle.This aggressive mergers-and-acquisitions (M&A) playbook, aimed at creating an end-to-end platform for the future of work, is cementing the company’s market leadership and strengthening the long-term investment case for its stock.The Blueprint for an AI EmpireServiceNow’s acquisition strategy is not random; it’s a pattern of targeted strikes aimed at enhancing its core platform.Each purchase serves a distinct purpose, building a more comprehensive and defensible product. A look at the company’s recent activity reveals a clear blueprint.Fortifying Governance (Veza): The Veza deal directly targets one of the biggest hurdles to enterprise AI adoption: security. Veza’s technology specializes in data access governance, helping companies manage who can access what data. This capability perfectly strengthens ServiceNow’s AI Control Tower and its security business, which recently crossed the $1 billion annual contract value (ACV) mark.Acquiring Intelligence (Moveworks): Underscoring the scale of this ambition is the pending approximately $2.9 billion acquisition of Moveworks. This is the centerpiece of ServiceNow’s plan to integrate best-in-class conversational AI. The goal is to create sophisticated AI assistants that can autonomously handle complex requests, making the Now Platform more powerful and intuitive.Expanding the Footprint (Logik.io): The strategy also extends beyond ServiceNow’s traditional IT stronghold. Its approximately $506 million purchase of Logik.io, a Configure-Price-Quote (CPQ) provider, was a direct offensive into the lucrative Customer Relationship Management (CRM) market, proving its ambition to challenge established software leaders.M&A as an Accelerator, Not a CrutchBut this acquisition spree isn’t happening in a vacuum or as a response to a lack of internal innovation. Instead, it is designed to supercharge an already powerful organic growth engine.ServiceNow’s own homegrown AI products are seeing massive adoption. The company recently reported that its Now Assist generative AI offerings are on pace to exceed $500 million in ACV in 2025. This tracks well ahead of its goal to reach $1 billion in 2026. This powerful internal momentum shows that the M&A strategy is about accelerating, acquiring key technologies to reach the future faster, not patching weaknesses.Why These Acquisitions Just Work BetterWhat makes this roll-up strategy uniquely effective for ServiceNow is its foundational architecture.The company’s core differentiator is its unified Now Platform, built on a single data model.Unlike competitors that must stitch together disparate systems after an acquisition, ServiceNow can absorb new technologies directly into its core.This allows for faster, deeper integration, ensuring that a new security feature from Veza can seamlessly interact with existing IT, HR, and customer service workflows. For investors, this means each dollar acquired is amplified, creating a more cohesive platform that rivals find difficult to replicate.Deep Pockets for a Grand StrategyAn ambitious strategy requires the capital to execute it, and ServiceNow is exceptionally well-positioned. The company’s third-quarter 2025 financial report revealed a formidable balance sheet, highlighted by $9.7 billion in cash and investments.This substantial war chest is continually replenished by the business’s strong and consistent cash generation. The ability to fund multi-billion-dollar deals while maintaining financial health provides a significant competitive advantage. It allows management to act decisively when strategic opportunities arise, signaling to investors that this aggressive growth plan is both deliberate and sustainable.ServiceNow’s Strategy of AmbitionServiceNow is presenting a clear and compelling growth story.The AI Roll-Up strategy, combined with powerful organic growth and a unique platform advantage, creates a formidable engine for long-term value creation.This approach is aggressively widening the company’s competitive moat and solidifying its role as an indispensable partner for enterprises navigating digital transformation.As a final exclamation point, management is signaling its own confidence in this trajectory. The company’s upcoming 5-for-1 stock split, set to take effect on Dec. 5, 2025, is a shareholder-friendly move designed to make shares more accessible. More importantly, such actions are often taken when leadership believes the company is positioned for significant future growth.For investors, the message is clear: ServiceNow’s deliberate and well-funded acquisition strategy is cementing its status as a dominant force in enterprise software. This aggressive playbook reinforces the company’s long-term growth narrative and its position as a key holding for the future of work. READ THIS STORY ONLINENo AI Bots. Just Real Signals. (Ad)You don’t need fancy software or AI tools to stay ahead — just the right signal before momentum hits. Market Pulse Today tracks a repeating pattern that flashes before select small caps start to move, sending fast, no-fluff alerts with clear breakdowns of why they matter now.GET THE NEXT MARKET PULSE REPORT BEFORE IT DROPS IN 24 HOURSThe Contrarian Case for MSTR Amid MSCI Delisting DebacleWritten by Nathan ReiffShares of Strategy Inc. (NASDAQ: MSTR), formerly known as MicroStrategy, have fallen by 43% year-to-date (YTD), with a substantial portion of this decline taking place in the last month.The company’s bid to broaden its scope from a software firm to a Bitcoin treasury in recent years has led to conflicting opinions about the stock.As Strategy has accumulated hundreds of thousands of BTC, it has generated speculation that the popular Morgan Stanley Capital International (MSCI) indices may remove MSTR shares due to its deep exposure to the crypto market. Capital outflows, the volatile nature of crypto assets, and Strategy’s perceived departure from its core software operations have made investors wary.Short interest in MSTR stock has ballooned by almost 9% in the last month alone, reflecting this skepticism. Further, multiple analysts lowered their price targets for MSTR after its latest earnings report in late October. Still, both crypto bulls and those who believe in Strategy’s software operations see the current volatility as a potential entry point for high-risk, high-reward portfolios.The Risks and Possibilities of a Leveraged Bitcoin StrategyStrategy has shifted in recent years to a leveraged Bitcoin acquisition model, in which the company has utilized its cash reserves and issued preferred stock in order to fund the purchase of more than 600,000 BTC since 2020. It has then held Bitcoin on its balance sheet while continuing to maintain its significant analytics software business.Certainly, there are significant risks associated with shifting billions of dollars toward cryptocurrency—and these have been highlighted particularly in recent weeks as a multi-month Bitcoin rally has collapsed, bringing the price of coins down below $90,000 for the first time since April. However, optimists might point to Strategy’s unique approach—because, unlike other companies that have shifted to become Bitcoin treasuries, it has retained its core business, providing a buffer in case of crypto volatility.Some investors may perceive MSTR as having asymmetric upside potential due to this approach, with the stock’s performance potentially outperforming BTC during cryptocurrency upcycles, thanks to its dual nature.The Impact—Or Lack Thereof—From MSCI DelistingOne reason investors have shied away from MSTR in recent weeks is rumors that it may be delisted from MSCI indices because of its reliance on Bitcoin. Delisting would undoubtedly cause further volatility, as it would prompt exchange-traded funds (ETFs), mutual funds, and institutional investors to rebalance portfolios away from MSTR shares.However, while a delisting would increase short-term volatility, it does not fundamentally impact Strategy’s Bitcoin accumulation model or software operations. If investor fear drives MSTR’s price below its Bitcoin-equivalent value, the stock may present a value opportunity relative to its holdings.Shoring Up Against Bitcoin VolatilityResponding to concerns surrounding the inclusion of billions of dollars worth of BTC on its balance sheet, Strategy recently announced the establishment of a $1.44-billion USD reserve specifically to support preferred share dividend distributions and debt costs.Although it did not immediately reverse the selloff of MSTR stock, it should give cautious investors some reassurance that the company will be able to maintain its dividends at the current level for up to two years. So long as Strategy continues to focus on Bitcoin, it will carry risks associated with the cryptocurrency space.However, investors who believe in the macro trajectory of BTC and are willing to take on a high degree of volatility in the short term might use the recent price decline—and any further turbulence related to a potential delisting—as an opportunity to buy while the prices of both shares and Bitcoin are low.As disruptive as a delisting might be, it represents a technical problem for Strategy rather than a fundamental one, and analysts still see the company nearly tripling in value once again despite these issues. READ THIS STORY ONLINEDrop these 5 stocks now! (Ad)You think the volatility is over? Think again … Because it’s just getting started. In fact, according to a strange investment secret discovered just before the Great Depression …INCLUDING THE LIST OF FIVE STOCKS YOU SHOULD ABSOLUTELY AVOID … CLICK HERE NOW — BEFORE IT’S TOO LAMore StoriesCongress Beat the Market Again—Here Are the 3 Stocks They BoughtThese Are the Hottest Upgrades From the Q3 Reporting CyclePost-Shutdown Market Reset: 3 Small Caps Showing Early Signals (Ad)Up Over 20% in 2025, These 3 Stocks Are Boosting Buyback CapacitySymbotic Reanimates Market, Long-Term Targets Are Back In Focus3 Fresh Dividend Hikes That Might Be Telling You SomethingGo on a Shopping Spree With 3 Top Retail ETFsThe Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.  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