CEO Watchlist: Week In Review

March 16, 2025

TOP NEWS AFFECTING THE STOCK MARKET THIS WEEK:

Government Shutdown Nearly Catastrophic For Stocks (Source)

Stocks mentioned: $LMT, $NOC, $PLTR

President Trump signed a Republican-crafted spending bill to fund the government through September 30, preventing a shutdown but deepening divisions among Democrats as some felt Senate Minority Leader Chuck Schumer conceded too easily. The bill boosts defense spending by $6 billion while cutting $13 billion from non-defense programs, with key votes coming from a mix of Republicans and centrist Democrats.

With this increase in funding for defense companies, stocks such as Lockheed Martin (LMT), Northrup Grumman (NOC), and even higher risk stocks like Palantir Technologies (PLTR) could see a benefit from this. But there is currently still some risk with ongoing tariffs between the US and Europe. Due to concerns by the EU, certain countries such as Germany have decided to take on a more active role in supplying military aid to Eurpoe in leiu of the US. It is still yet to be seen if this will be a long term headwind for US defense companies, or just a short-term blip on the map.
Are Nuclear Energy Stocks The Future? (Source)

Stocks mentioned: $CEG, $VST, $GEV, $OKLO, $SMR

Big name companies like Amazon, Alphabet, and other major companies have signed a pledge to support tripling global nuclear energy capacity by the year 2050! This announcement was made during the CERAWeek conference, which was held in Houston, Texas recently. The initiative, backed by the World Nuclear Association, aligns with efforts from over 30 countries to expand clean energy solutions, especially for data centers, which are the backbone of AI. Amazon has already invested over $1 billion in nuclear projects, while companies like Meta and Google are exploring small modular reactor technology. Anytime money flows into a sector at a much heavier rate, it tends to lead to higher stock prices for stocks in that sector.

Due to big tech's large investments into the nuclear power industry, certain companies that are serving that demand could see some major upside in the coming months and years. That's why we are watching stocks like Constellation Energy (CEG), Vistra Corp. (VST), and GE Vernova, Inc. (GEV). However, there are also some higher risk names that could present more upside potential and have gained popularity in the trading community as of recently. In fact, in our Investing Club, we have made multiple profitable trades on stocks like Oklo, Inc. (OKLO) and NuScale Energy (SMR), however, the trades have been short-term as these companies are still in their pre-revenue stage, meaning they have yet to turn a profit. Let's be clear, these 2 stocks are EXTREMELY HIGH RISK and speculative in nature. For a safer long term portfolio, I much prefer CEG, VST, or GEV.
Tariff Wars Aren't Over: How Will Markets React? (Source)

Stocks mentioned: $SPY, $QQQ, $GLD

President Donald Trump’s proposed 25% tariffs on Canadian goods and comments about making Canada a U.S. state have sparked nationalist backlash, with Canadians rejecting American imports and implementing countermeasures like banning U.S. alcohol sales in Ontario. In response, Canada announced its own tariffs and trade restrictions, while travel to the U.S. from Canada dropped significantly, impacting tourism and businesses.

These tariff wars have had major impacts on the stock market over the past few weeks, and we expect more volatility to come. With the S&P500 (SPY) hitting official correction territory, which is when the S&P500 drops 10% from its all time high, the market's currently at a fork in the road. Historically, corrections have been a buying opportunity for long term investors and have yielded great returns a year later. In addition, when looking at the Nasdaq (QQQ), we typically see that when it falls more than 2% per week for 4 consecutive weeks, it tends to underperform the market over the next 6 months. As tech makes up a large part of the market, we could see a lot of volatility in the market due to unknowns in unemployment, GDP, and tariffs. For more stability in a volatile environment like this, gold the metal (GLD) may be a safe haven for investors. Just be aware that gold recently hit a record high of $3,000 per ounce, and that is a psychological level ($1,000/oz, $2,000/oz, etc..) which historically we have seen short-term pullbacks from.

INSIDER TRADES FROM THE WEEK:

1. IonQ, Inc. (IONQ) - William (Bill) Scannell, director, bought approximately ~$2,000,000 of IONQ stock on Mar. 12, 2025, and it was reported later that same day. (Source)

2. Venture Global, Inc. (VG) - Michael Sabel, Chief Executive Officer (CEO), bought over ~$11,900,000 of Venture Global stock between Mar. 10-14, 2025. These transactions were reported between Mar. 11-14, 2025. (Source)

Sidenote: Only his most recent stock purchase is pictured above. Additionally, other insiders joined Mr. Sabel in purchasing stock, including Robert Pender, the Executive Vice Chairman of the company, and Jimmy Stanton, a director of the company. These other insiders bought about ~$10,000,000 worth of shares during the same time window as Mr. Sabel.

3. Reddit, Inc. (RDDT) - David C. Habiger, director, bought ~$100,000 of Reddit stock on Mar. 12, 2025, but it was reported to the public on Mar. 14, 2025. (Source)