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February 12, 2025

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In this video, Dave breaks down the formerly high-flying Mag 7 stocks into three distinct buckets. These include long & strong (META, NFLX & AMZN), broken down (TSLA, AAPL, MSFT & NVDA), and questionable (GOOGL). He also shows how GOOGL is not the only leading name featuring a bearish momentum divergence in February 2025, and what that could mean for the broad equity markets!

This video originally premiered on February 11, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

A rampaging rebel group has claimed the capture of another mining town in the eastern part of the Democratic Republic of Congo (DRC), a little over a week after it took control of the region’s largest city Goma.

Clashes between the rebel coalition Alliance Fleuve Congo (AFC) and Congolese forces have left more than 3,000 people dead in less than two weeks, according to DRC’s government.

The AFC, of which the M23 armed group – which claims to defend the interest of minority Rwandophone communities – is a key member, took over resource-rich Nyabibwe last week after Goma, the provincial capital of North Kivu, fell on January 27.

It comes less than a year after the rebels seized Rubaya, a mining hub also in the country’s east, which harbors one of the world’s largest deposits of coltan, a valuable mineral used in the production of smartphones.

Here’s what you need to know.

Is my phone fueling the conflict?

For decades, DRC, a Central African nation of more than 100 million people, has grappled with bloody militia violence, including ethnic and resource-driven armed rebellion by M23 and dozens of other armed groups.

Roughly the size of Western Europe, the war-riven country is endowed with vast mineral wealth, including the world’s largest reserves of cobalt and coltan – both critical to the production of electronics. Cobalt is used to produce batteries that power cell phones and electric vehicles, while coltan is refined into tantalum, which has a variety of applications in phones and other devices.

However, according to the World Bank “most people in DRC have not benefited from this wealth,” and the country ranks among the five poorest nations in the world.

Much of DRC’s mineral wealth is split between its government and armed groups who control swathes of the resource-rich east.

“It’s not a coincidence that the zones occupied by the rebels are mining areas,” Okenda said, adding that global demand for cobalt and coltan has fueled the crisis.

“It takes money to wage war. Access to mining sites finances the war,” he added.

Why do the rebels want the minerals?

But a top United Nations official has an idea.

Bintou Keita, the UN Secretary General’s Special Representative to the DRC, told the Security Council in a September briefing that coltan trade from Rubaya’s mines is estimated to supply over 15 percent of global tantalum production and generates an estimated $300,000 in revenue a month for M23.

M23 denied these claims, insisting its presence in Rubaya was “solely humanitarian.”

Much of the international community, including the Congolese government, has accused neighboring Rwanda of backing M23 and aiding the plunder of DRC minerals.

UN experts believe that an estimated 3,000 to 4,000 Rwandan soldiers are supervising and supporting M23 fighters in eastern DRC, outnumbering the rebel group’s forces in the country. A December report by the UN Group of Experts on the DRC revealed that “at least 150 tons of coltan were fraudulently exported to Rwanda and mixed with Rwandan production.”

Rwanda is one of the world’s top suppliers of coltan and has surpassed DRC’s export of the mineral in recent years.

Where do DRC’s plundered minerals go?

In a public address that drew outrage last year, Kagame admitted that Rwanda was a transit point for minerals smuggled from DRC, but insisted his country was not stealing from its neighbor.

“Some people come from Congo; whether they smuggle or go through the right channels, they bring minerals. Most of it goes through here (Rwanda) but does not stay here. It goes to Dubai, Brussels, Tel Aviv, (and) Russia. It goes everywhere,” Kagame said, without providing evidence or specifying what minerals were being smuggled.

In 2022, the United States Treasury Department said that over 90% of DRC’s gold was being “smuggled to regional states, including Uganda and Rwanda” where they are “refined and exported to international markets, particularly the UAE,” and sanctioned a Belgian businessman for facilitating the trade.

For DRC’s other valuable minerals including coltan and cobalt, the scale of the plunder remains unclear.

In December, DRC sued subsidiaries of Apple in Belgium and France, accusing the company of sourcing conflict minerals. Apple denied the accusation.

Every year, tech giants such as Apple and Microsoft publish reports saying that they demand responsible sourcing of minerals from their suppliers.

In an earlier filing to the US Securities and Exchange Commission in 2023, Apple said that while it continued to source 3TG (tin, tungsten, tantalum and gold) and other minerals such as cobalt and lithium from DRC and other countries, it was “committed to meeting and exceeding internationally accepted due diligence standards for primary minerals and recycled materials in our supply chain.” It added that its due diligence efforts had “found no reasonable basis for concluding that any of the smelters or refiners of 3TG determined to be in our supply chain as of December 31, 2023 directly or indirectly financed or benefited armed groups in the DRC or an adjoining country.”

Is there a solution to the conflict?

DRC’s mineral wealth has presented itself as a “curse,” according to analyst Okenda, who explained:

Last week, a humanitarian ceasefire announced by M23 fell apart almost immediately after it was declared, as the rebels swiftly advanced into Nyabibwe.

While regional and global leaders ponder solutions to ending the crisis, Okenda believes that DRC’s government needs to reinvent itself if it hopes for lasting peace.

DRC “has a governance model that if it does not change, the Congolese population will gain absolutely nothing, whether there is war or not,” he said.

“If the Kinshasa government improves its governance, invests in the army, ensures a fair sharing of resources between citizens in the country, and conducts elections that are of better quality, I still think that peace can return (to DRC),” he said.

This post appeared first on cnn.com

McDonald’s on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.

But shares of the company rose more than 4% in morning trading as executives predicted sales would improve in 2025.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company’s overall same-store sales growth of 0.4% outperformed Wall Street’s expectations of same-store sales declines of 1%, according to StreetAccount estimates.

But McDonald’s U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company’s domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.

McDonald’s said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald’s U.S. same-store sales tick up in the third quarter.

However, analysts have warned that value meals only work if customers also add menu items that aren’t discounted to their orders. McDonald’s executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.

The biggest hit to McDonald’s U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

However, in the days following the news of the outbreak, traffic at McDonald’s U.S. restaurants fell steeply, particularly in the states affected.

U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.

McDonald’s expects its U.S. sales to recover by the beginning of the second quarter, executives said.

“I think right now what we’re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,” CEO Chris Kempczinski said on the company’s conference call. “So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.”

The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.

Outside the U.S., sales were stronger. Both of McDonald’s international divisions reported same-store sales increases, bolstering the company’s overall performance.

The company’s international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.

McDonald’s international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.

McDonald’s reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.

Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald’s earned $2.83 per share.

Looking to 2025, the first quarter is expected to be the low point for McDonald’s same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.

For the full year, McDonald’s plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company’s international developmental licensed markets, including about 1,000 new restaurants in China.

Including its investments in restaurant openings, McDonald’s plans to spend between $3 billion and $3.2 billion this year on capital expenditures.

The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.

This post appeared first on NBC NEWS