Despite the Nasdaq hitting new all-time highs this week, select disruptive growth stocks still have massive long-term upside potential, particularly certain names benefitting from the Artificial Intelligence (AI) mega trend (which, by the way, is still just getting started). In this report, we share 7 top ideas, with a special focus on “Big Data” AI stock Palantir, and then conclude with our strong opinion on investing in disruptive growth stocks at this point in the market cycle.
Nvidia: AI Meet Digital Revolution (5 Stocks Worth Considering)
When two of the economy’s biggest mega trends combine, you get Nvidia (+59% ytd) and offshoots like Super Micro Computer (+202% ytd). And if you’re wondering if its “too late” to invest in these two mega trends (i.e. Artificial Intelligence and/or the Digital Revolution) the answer is a resounding, no way! We’re still in the early innings and here are 5 stock ideas that could potentially ride these waves dramatically higher in the decade ahead (volatility haters need not read on).
Palantir: A Long-Term Play on Big Data and AI, But at What Price?
Palantir provides sophisticated software platforms for data analysis, leveraging advanced AI and machine learning techniques. Its software effortlessly integrates structured data like spreadsheets and unstructured data like images and social media posts into a single centralized database, enabling visualization and analysis of all information. The company is further leveraging its AI expertise with AIP, a novel platform that introduces support for large language models and generative AI to its current offerings. In this report, we analyze Palantir’s business model, its market opportunity, financials, valuation, risks, and then conclude with our opinion on investing.
Big Data: Climbing “The Wall of Worry,” Attractive long-term play in AI / ML
Like a lot of stocks that started trading publicly during the pandemic bubble, there has been a lot of skepticism associated with the one we review in this report. For example, naysayers decried that it wasn’t profitable (now it is), the company could never successfully expand from government to commercial (now it has), stock-based compensation was too high (now it’s not) and the whole big-data theme was dramatically overblown (however, machine learning and artificial intelligence are now big revenue growth drivers). In this report, we review the business, the financials, current valuation and risks. We conclude with our strong opinion on investing.
This AI-ML Stock: Massive Sticky Secular Growth
The company we review in this report is already benefiting from the massive secular growth in Artificial Intelligence (“AI”) and Machine Learning (“ML”). And it is positioned to keep benefiting massively in the years ahead thanks to its leading solutions, innovation, sticky customer base and very strong balance sheet. This one was loved (during the pandemic bubble) then hated (when the bubble burst), but the business has only been getting stronger and the shares are still inexpensive relative to where we expect them to be in five years and beyond. In this report, we review the business, the growth, the opportunity, the valuation and the risks. We are currently long these shares with no intention of selling.
50 Hated Pandemic Stocks, These 3 Are Worth Considering
After the initial pandemic shock in 2020, certain high-growth stocks performed well. Extremely well. Bolstered by extraordinarily low interest rates and a new crowd of “work-from-homers” (with newfound time to “invest”) it seemed the sky was the limit. Until it wasn’t. Flash forward to now, the market has fallen sharply this year (especially high-growth stocks), and there is no short supply of reasons to stay bearish. Very bearish. In this report, we share data on 50 high-growth stocks that have crashed, run through a list of compelling reasons (data points) to stay bearish, and then discuss the merits of three interesting high-growth stocks from the list that have crashed particularly hard, with a special focus on pandemic darling, Palantir (PLTR). We conclude with some important takeaways and our very strong opinion about investing in Palantir and investing in this market in general.
New Options Trade: High Upfront Income, Fear Creates Opportunity
High growth stocks have been selling off hard as the market is fearful of the fed’s indication of higher interest rates (as the "pandemic trade" continues to unwind). This has created an attractive opportunity to generate high upfront premium income in the options market. In this report, we share an income-generating options trade on an attractive long-term growth stock that has simply sold off too hard as a result of the market’s latest volatility and fear. In fact, premium income available goes up when short-term fear is high, and that is a big part of the reason why this trade is particularly attractive. We believe this is an attractive trade to place today and potentially over the next few trading sessions as long as the price of the underlying shares doesn’t move too far before then.
New Options Trade: High Upfront Income, High Growth
In the short-term, the market is a voting machine, and in recent trading sessions high-growth stocks have been voted down indiscriminately. However in the long-term, the market is a weighing machine, and top business eventually rise to the top. In this report, we share an options trade that generates a lot of upfront premium income, and the trade is on a highly attractive long-term growth stock. This trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in a matter of weeks). We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.
Palantir: Selling Put Options, Lots of Cash
Big data software company Palantir has become an emotional stock for many people with widely ranging viewpoints. And these differing viewpoints have created volatility that leads to high premium income (i.e. cash) being available in the options market. In this report, we share a high income-generating options trade on Palantir that we believe is attractive to place today and potentially over the next few trading sessions, as long as the price of the underlying shares doesn’t move too widely before then.
Palantir: Massive Upside
Palantir is a software company, that is growing rapidly, and it has a massive total addressable market. It provides big data analytics solutions (ranging from data mining to visual analytics), on a single consolidated platform, thereby enabling informed decision-making. The company is having great success landing and expanding government agency contracts, but is also recently attempting to diversify into enterprise-grade commercial organizations too. In this report, we analyze Palantir’s business model, its market opportunity, financials, valuation, risks, and finally conclude with our opinion on investing.
Palantir Options Trade: Very High Upfront Income
With the price pullback over the last month, and an earnings announcement coming up in less than two weeks, data analytics company Palantir, is setting up for a very interesting and very high upfront income generating options trade. We successfully implemented a similar Palantir trade at the end of November, but those contracts expired (quite profitably) on January 15, and conditions are again attractive for a similar trade. In this report, we review the trade details. We believe it’s an attractive trade to place today and potential over the next few trading days, as long as the price doesn’t move too dramatically before then.
New Options Trade: Very High Upfront Income, Intelligence Community Software Platform
We wrote about the attractive, yet somewhat speculative, opportunity in this newly public stock just over 1-week ago, and the shares have surged more than 50% since that report (i.e. they’ve climbed from $18 to $28). We still believe the shares are somewhat speculative here (especially at the higher price), but the extremely high upfront premium income available in the options market is hard to ignore. In this report, we share a trade that generates very high upfront premium income (that you get to keep no matter what) and it gives us a chance to own shares of this company at a much more reasonable price. We believe this is an attractive trade to place today and potential over the next few trading days, as long as the price doesn’t move too dramatically before then.
Newly Public Data Analytics Company: Keep It High On Your Watchlist
This data analytics software company recently began trading publicly, and it is known for its highly secretive work with the US government. It has also recently experienced strong revenue growth, and it has a large (and growing) total addressable market (although a fiercely competitive one). In this report, we analyze the company’s business model, growth prospects, valuation, risks, and finally conclude with our opinion on whether this stock offers an attractive risk-versus-reward investment opportunity.