5 Best Cheap Stocks to Buy Under $5

One of the five names that cleared our sub-$5 screen is a defense-focused AI company carrying $409.8 million in cash and investments against a $1.45 billion market cap. Its $269.6 million backlog includes a single $53 million sole-source classified award. The free report names it — and shows the one line on its share count you'd want to see first.

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☕️ GM Munchers! My wife asked me what I wanted to accomplish this week. I said "beat the S&P 500." She said "I meant around the house." We are not the same.

On today’s menu:

• 🚗 Uber's President Just Put $5.3 Million On The Line

• 👟 Nike Just Got Kicked Off Wall Street's VIP List

• 🍿 Tasty Movers & Shakers

• 🇨🇦 The Canada Trade War Just Got Pettier

• 👀 Most IPO Coverage Missed This AI Story

Yesterday’s numbers:

BREAKING NEWS

🚗 Uber's President Just Put $5.3 Million On The Line

When one of the most senior people inside a company reaches into his own pocket to buy the stock, it's worth a look. Uber President and COO Andrew Macdonald just bought 70,000 shares on the open market for about $5.3 million, at roughly $76 a share. There's an old Wall Street saying: executives sell for a hundred reasons, but they only buy for one and that’s because they think the stock is going higher.

$UBER Uber has had a rough year, down about 12%. Zoom out five years and it's up 83%, which sounds great until you realize the S&P 500 gained 72% over that same stretch. In other words, you took on a much riskier, more volatile stock and barely beat a boring index fund. That's not much reward for the extra heartburn.

Here's the thing weighing on this stock, and it's the big one: robotaxis. Tesla just rolled out its driverless Cybercab in Austin, and Waymo keeps expanding city by city. Uber's whole business is connecting riders to drivers, so a future full of driverless cars is a genuine long-term threat.

• 🤝 Uber's edge is the app. Millions already have Uber installed and trust the brand, which is a real moat robotaxi makers have to overcome.

• 💰 Uber has the capital. It's committed over $10 billion to robotaxi partnerships and could buy fleets at scale.

• ⚠️ Tesla is the scary competitor. Tesla could run its own robotaxis at cost and compete directly, cutting Uber out of the ride entirely.

The Munch Take: Here's our honest take. The insider buy is a genuine vote of confidence, and it's the kind of signal we respect. But it doesn't erase the elephant in the room. If Tesla and Waymo can deploy their own cars and undercut Uber on price, the middleman gets squeezed hard over time. Uber's brand and app give it a real head start, and we're not writing it off. Long term, though, we'd want to see Uber actually win the robotaxi race before betting on it, not just hope its head start holds. Respect the insider signal, but keep both eyes on Tesla.

Mark Sept 21 — Then Read This First (Ad)

Two years, one device, no public details until Sept 21. That's the timeline insider sources describe for Elon's next reveal, and it's worth your attention even if you've never owned a share of Tesla.

It was built entirely inside Tesla's own facilities, according to those same sources. Elon's own description of the result: "10x bigger than the largest product in history."

Claims that size tend to get laughed off, right up until they don't. Apple made a version of this same claim once, and early Apple stock went on to run as high as 7,537%. Nvidia's CEO already puts this device in that category, calling it "the next biggest opportunity after AI."

See the 3 tickers, free.

STOCK OF THE DAY

👟 Nike Just Got Kicked Off Wall Street's VIP List

Every quarter, the big indexes like the S&P 500 and Nasdaq quietly reshuffle their lineups, adding hot names and dumping cold ones. It sounds boring, but it matters a lot. When a stock gets added, every index fund on earth has to buy it, which lifts the price. When a stock gets cut, it's Wall Street's polite way of saying the party's over.

Nike just got shown the door. The shoemaker was removed from the S&P 100, the club reserved for the bluest of blue-chip stocks, after 18 years on the index. The removal was overdue. $NKE Nike shares are down about 40% this year and a brutal 70%-plus over the past five years, erasing hundreds of billions in market value since its 2021 peak. Meanwhile the index swapped in AI-flavored names like Dell, Palo Alto Networks, and Sandisk. The message is loud: traditional consumer brands are out, anything AI is in.

Here's our honest read. Yes, every 14-year-old girl still owns the white Nike sneakers, but walk into a sporting goods store and see a plain T-shirt priced at $60, and you start to understand the problem. The brand pushed a lot of political messaging a few years back that clearly hurt it, and Nike just doesn't swing with the same cultural punch it used to.

The Munch Take: Will this stock get a dead cat bounce at some point? Absolutely. We wouldn't be shocked to see a 20%, 30%, even 40% pop, so keep an eye on short interest if aggressive bounces are your game. But long term, this isn't a name we want to hold. Trade the bounce if that's your style. We'll pass on owning the fall.

MARKET OVERVIEW

🍿 Tasty Movers & Shakers

💰️ Free Report from Stock Earnings: 5 Stocks Hiding Behind the Robot Revolution

🔮 $GLW Corning jumped 7.58% after landing a multibillion-dollar deal to supply Verizon with fiber-optic tech through 2032.

🧬 $ROIV Roivant Sciences soared 18.75% on strong mid-stage trial results for an experimental treatment targeting a rare lung disease.

💻 $INTC Intel climbed 9.05% on plans to raise PC processor prices by roughly 10% next month. Pricing power is a good look for a company that's spent years trying to prove it still has some.

₿ $MSTR Strategy slipped 4.4% after the biggest corporate Bitcoin holder went a full week without buying any. When the buying pauses, so does some of the excitement around the stock.

🚴 $PTON Peloton fell 6.67% after a Morgan Stanley downgrade pointed to ongoing struggles across the fitness industry. The pandemic darling keeps finding new ways to remind investors those glory days are over.

NEWS OF THE DAY

🇨🇦 The Canada Trade War Just Got Pettier

The U.S.-Canada trade fight escalated again yesterday, and this round is all about who gets to sell to the government. Trump directed the General Services Administration, the agency that handles federal purchasing, to start removing Canadian-origin products from its contract lists. His reasoning: Canada blocks American small businesses from its own government procurement markets, so he's hitting back with "NO RECIPROCITY, NO ACCESS."

The timing is no accident. This landed the same day Canada's retaliatory tariffs officially kicked in, a $27.6 billion dollar-for-dollar package matching the U.S. tariffs that hit earlier. So this is pure tit-for-tat. Canada punched, Trump punched back within hours. Those federal purchasing schedules account for more than $50 billion a year, though nobody's sure how much of that is actually Canadian goods.

• 🏛️ The move: Canadian products get pulled from U.S. federal contract lists unless Canada opens its own procurement markets to Americans.

• 💵 The dollar barely flinched: USD/CAD has actually drifted down from about 1.40 a month ago to 1.38, meaning the loonie strengthened during the trade war, the opposite of what you'd expect.

• 🏭 The winners: U.S. defense and industrial contractors like Oshkosh could scoop up contracts as Canadian suppliers get pushed out.

The Munch Take: We still believe in the TACO trade, and we think this all gets resolved eventually. It's only a matter of time. What's genuinely telling is the currency. USD/CAD should be the most volatile asset in this whole fight, and instead it's just bouncing gently around support at 1.38, actually favoring the Canadian dollar. That’s the market's way of saying it doesn't expect anything catastrophic here. We wouldn't make a single drastic portfolio move over this. Mostly, it's all for show.

🚀 Pre-Market Fuel

1. 👀 Most IPO coverage missed this AI story (Ad)

2. 🇺🇲 This politician just bought Bitcoin.

3. ⛽️ Diesel prices just hit a record high.

4. 🌊 Massive floods in Japan right now.

🍪 Munchy Memes

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