Apple (AAPL) shares have been weak this year as compared to other mega-cap names (as you can see in the chart below). And with iPhone market share falling in China, some investors are wondering if it’s time to dump their shares. Here are five (5) key points to consider, followed by my personal opinion on selling versus buying and/or holding the shares.
AMD: A Top AI Megatrend Play, On Sale
Advanced Micro Devices’ (AMD) revenue has been growing rapidly. This is because of its datacenter tie in with Artificial Intelligence (“AI”) and the great cloud migration and digital revolution. However, the shares have been falling, sitting near a 52-week low. In this report, we review the business, the AI megatrend, AMD’s valuation and the big risk factors for investors. We conclude with our strong opinion on investing.
Monolithic Power: Very Tempting Post Pullback
Shares of Kirkland Washington based chipmaker, Monolithic Power Systems, are getting very tempting again. We dumped 100% of our shares back in August in the $800’s, and they now trade below $600. The company’s diverse end-market strategy is expected to produce ~+20% revenue growth this year and next, while producing above 20% net margins and trading at only 1.7x forward PEG ratio (price-to-earnings / growth) and with a 5-year expected EPS growth rate estimate of 25%… impressive!
Snowflake Earnings Note: Massive Revenue, Still No Profits
If you are a growth investor, cloud data AI company, Snowflake (SNOW) has massive revenue and massive revenue growth. However, the share price has fallen from extreme highs (in 2021) so that its recent 33%+ pop in share price (following strong quarterly earnings) still leaves a lot to be desired. In this brief note, we review the company’s incredible revenue growth, earnings (still very negative net income), valuation and share dilution. We conclude with our strong opinion on investing.
Aspen Aerogels: High Growth, Shares Down 50% Since August
Aspen Aerogels (ASPN) recent sell-off (shares down 50% since August) provides a tempting buying opportunity for long-term growth investors. But there are a few things investors need to consider. For starters, investors were disappointed with Q3 results, in large part because the company reported a $13.0 million net loss, which included a $27.5 million one-time charge from the redemption of the company's convertible note (without the one-time charge, net income was $14.5 million, a $27.4 million YoY improvement). Additionally…
SoFi's Big Rally (+90% in the last 6 months)
SoFi Technologies (SOFI) shares are unsurprisingly up significantly post-election considering the new White House and Congress will be less friendly to the idea of student loan forgiveness (SoFi private loans didn’t qualify), but also as the company announced record beating quarterly performance at the end of October.
Albemarle: Lithium Supply Cycle
This lithium miner (with a strong tie in to electric vehicle batteries) has gone from “loved” (at over $300 per share in 2022) to “hated” (now trading at around $100). But what many investors may not fully appreciate is the massive lithium supply cycle swing, which now places Albemarle in an interesting position going forward. In this report, we review the business, the lithium supply cycle, current market dynamics and risks. We conclude with our strong opinion on investing.
Eli Lilly: The Bull Case is Compelling
Despite the recent “dip” (shares are trading 20% below recent all time highs), Eli Lilly remains a very attractive company and compelling investment opportunity (e.g. blockbuster weight-loss drugs, wide moat, massive growth, attractive valuation). In this report, we share the bull case (plus a few bear case arguments, for balance). Let’s get into it.
AI-Powered Marketing Software Stock: Disruptive Growth
The Artificial intelligence revolution is still just getting started, and some industries are set to benefit more than others. For example, the AI-powered marketing software company we review in this report has a lot of momentum right now, including rapidly rising revnues, a large market opportunity, competitive advantages, a compelling new mobile solution, healthy financials, solid leadership and new tailwinds from lower interest rates. After reviewing the company, including opportunities and risks, we conclude with our strong opinion on investing.
New Purchase: Disciplined Growth Portfolio
Quick Note: We have added back shares of this “fallen angel” AI stock mainly because the risk-reward and valuation metrics appear very compelling, despite high uncertainty and high short sales. The share price could get worse before it gets better, but if you like to buy profitable high-growth businesses with a long runway for growth, this one is compelling.
Thermal Barriers Company: Growth Accelerating on Government Regs, OEM Wins
Nvidia: Too Much, Too High
If you are like just about every single person I talk to, you own shares of Nvidia. And you probably love to tell your story of how you got in early, or how you should have bought more. But what about Nvidia's valuation? And what about your "position sizing" of Nvidia within your aggregate investment portfolio? After reviewing Nvidia's business, growth trajectory and risks, we discuss its current valuation and prudent position sizing within your personal investment portfolio. We conclude with our strong opinion about owning Nvidia shares ahead of the upcoming earnings announcement.
Earnings Note: Mercado Libre En Fuego
Earnings Note: Paylocity
Quick Note: Paylocity (PCTY) beat earnings and revenue expectations, and the shares are up. However, Paylocity shares have been so beaten up for so long (they’re still down ~50% from the 2021 high, thanks in large part to its focus on small-and-mid-sized businesses as customers) that some people haven’t noticed the fundamentals have never stopped improving.
Earnings Note: Meta Platforms
Quick Note: ServiceNow Earnings Update
Quick Note: Vertiv Earnings Update
Quick Note: Alphabet Earnings
Quick Note: NXP Semiconductors Earnings Note
Enovix: Despite Risks, Big Upside
As smart phone energy demands grow (especially with the proliferation of AI apps), Enovix is working to scale its disruptive battery architecture to improve efficiency and capacity. And the company’s total addressable market (“TAM”) is enormous, expanding beyond just smart phones and into wide-ranging Internet of Things (“IoT”) devices and electric vehicles. In this report we review the Enovix solution, TAM, progress, valuation and risks. We conclude with our strong opinion on investing.