TheBRRR’s Thoughts

GM.

Very little overall volatility this week - the Nasdaq has traded within a 1% range since the Monday open.

Summer seasonality would dictate low vol over the coming month but analysts are skeptical that the old adage “sell in May and go away” makes sense this year.

Bank of America thinks this year’s summer is different because it’s an election year - and pre-election summers have historically been constructive for stocks (CNBC).

Goldman also sees strong stock performance as big tech and other bellwether corporates kick off fresh buybacks, as we cover in today’s lead story.

Goldman: $155B In Summer Buybacks On The Way

WHAT HAPPENED:

• Resurgence of Corporate Buybacks: Post the buyback blackout period ending April 26, Goldman Sachs reports significant activity at its buyback desk, coinciding with a large proportion of S&P 500 companies clearing their earnings announcements. This phase of open buyback windows is expected to continue actively until June 14, 2024.

• Record Buyback Announcements: Apple Inc. recently announced a massive $110 billion buyback, the largest in U.S. history, sparking a rally in its stock and influencing market sentiment. Other tech giants like Alphabet Inc. and Meta Platforms have also announced substantial buyback plans, adding to the momentum.

• Market Stabilization and Growth: Buybacks are strategically employed, especially after market dips, stabilizing and sometimes boosting the market. Goldman Sachs notes that current corporate cash reserves make a sustained market crash unlikely, and instead, buybacks are anticipated to push the market towards new highs.

WHY IT MATTERS:

• Impact on Market Dynamics: About a sixth of the $934 billion in estimated share repurchases for 2024 are slated for execution in May and June. This intense period of buyback activity is expected to significantly influence market trends, particularly favoring large-cap companies.

• Broader Economic Sentiments: Despite the Federal Reserve's stance on maintaining higher interest rates to manage inflation, robust corporate buyback activities are providing a counterbalance, helping to sustain the ongoing stock market rally. This corporate confidence is pivotal as it underscores a bullish outlook amidst macroeconomic uncertainties.

Zerohedge, Bloomberg

Sam Altman-backed Oklo Prepares For NYSE Debut via SPAC Merger

WHAT HAPPENED:

• NYSE Listing: Oklo Inc., an advanced fission technology company, is poised to list on the New York Stock Exchange this Friday, transitioning from its current ticker ALCC to OKLO. This move follows a merger with AltC Acquisition Corp., a SPAC co-founded by Sam Altman, the CEO of OpenAI, and Michael Klein, a veteran dealmaker from Citi.

• Investor Approval: The merger, which values Oklo at approximately $850 million, has received overwhelming shareholder support, with almost 100% of the votes cast in favor, representing about 72.7% of AltC's outstanding shares.

• Strategic Vision: Oklo is focused on developing and deploying compact, advanced fission reactors intended to provide clean, reliable, and affordable energy, particularly to power data centers crucial for AI technologies.

WHY IT MATTERS:

• Impact on Energy Sector: Oklo’s strategy to manufacture and assemble nuclear systems in factories for on-site deployment promises faster and more cost-effective solutions in the energy sector, aligning with global shifts toward sustainable energy sources.

• Broader Industry Implications: As the first commercial advanced reactor is expected to go online in the U.S. before the decade’s end, Oklo's approach could significantly influence the nuclear power industry, moving towards more manageable and economically feasible technologies.

• Market Trends: This listing reflects a wider interest in compact nuclear energy solutions, evidenced by significant investments from high-profile figures like Jeff Bezos, Bill Gates, and Peter Thiel in similar ventures. The industry is seen as pivotal in meeting increasing energy demands, especially from high-tech sectors.

OVERALL IMPACT: Oklo's upcoming NYSE listing not only marks a significant milestone for the company but also highlights the growing intersection of technology and clean energy solutions. This event is expected to draw considerable attention from investors and industry stakeholders, spotlighting the potential of advanced nuclear technologies to contribute to a sustainable energy future.

Bloomberg

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.ll