The payment processing software company we review in this report has a lot of attractive qualities and a few question marks (i.e. risks). After reviewing the business, the growth opportunity, the valuation and the risks, we conclude with our opinion on investing.
Snowflake: 20+ Top AI Stocks, Ranked
Fads come and go. Megatrends (such as urbanization and the internet) change the world. Certainly, megatrends can get ahead of themselves (there was an internet bubble in the early 2000s, and more recently China built entire cities expecting rapid pockets of urbanization that never happened). Some investors wonder if Artificial Intelligence (“AI”) is a fad, a megatend that has gotten ahead of itself, or still in its infancy. In this report, we address this question with a variety of data points (including comparative data on 20+ top AI stocks) and a special focus on big-data AI stock Snowflake (SNOW) (including its business, growth opportunity, valuation and risks). We conclude with our strong opinion on AI as a theme and Snowflake as an investment opportunity.
Alphabet, Big Risks: Bing AI, Apple DOJ, Meta-Like Spending
Alphabet (GOOGL) shares are up a measly 7.9% this year, and up 10.8% over the last two-years. That may not sound too bad, but compared to other mega-caps like Microsoft (MSFT) (+14.2% ytd, +45.9% 2yr) and Meta Platforms (META) (+44.1% ytd +141.2% 2yr), Alphabet has been lackluster (and some investors worry it’s increasingly going the way of Apple (AAPL) (-10.4% ytd). In this report, we review Alphabet’s business, its big risks (e.g. AI threats, challenges from being enormous, high spending) and its current valuation. We conclude with our strong opinion on investing.
Lithium Stock: The Yin to Nvidia's Yang, Big Upside Ahead
Chip stocks (such as Nvidia) are notoriously cyclical (50% to 80% declines are not uncommon). Somewhat similarly, the materials stock (lithium) we review in this report is likely near the bottom of an epic cyclical decline of its own (shares are down 66%). And like Nvidia, this materials stock is a leading beneficiary of another big secular trend (rather than AI, it benefits from technological advances in batteries). In this report, we review the materials stock (including it business, market opportunity, valuation and risks) and then conclude with a comparison of its massive price appreciation potential as compared to Nvidia’s with regards to where each one sits in its own massive secular market trend.
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.
Nvidia: 40 Top Chip Stocks (Ranked by Value)
With Nvidia shares now up more than 45% this year (and up over 1,870% in the last 5 years) some investors are again wondering if the stock is overpriced. On one hand, the semiconductor industry is notoriously cyclical, and big price pullbacks (60% to 80%) are not uncommon. On the other hand, Nvidia benefits enormously from two megatrends (artificial intelligence (“AI”) and the great cloud migration/ digitization), and the share price gains may still just be getting started. In this report, we take a closer look at Nvidia’s current valuation versus 40 other top chip stocks, share our views on what sets it apart, and then conclude with our strong opinion on investing.
AI-Powered Marketing Software Stock: Disruptive Growth
The company we review in this report is a leading omnichannel data-driven cloud platform offering consumer intelligence and marketing automation software to enterprises. The company enables its clients to engage consumers across various channels like email, social media, web, chat, Connected TV, and video. In this report, we analyze the company’s business model, its market opportunity, financials, valuation and risks, and then conclude with our opinion on whether the shares offer an attractive balance between risks and rewards.
Top Small Cap: Big Secular Growth, Automotive Semiconductors
In this report, we review a small cap company that specializes in providing semiconductor and software solutions for Advanced Driver Assistance Systems (ADAS), including light detection and ranging (LiDAR), connected cars, user experience, and electrification applications. The company's technologies serve as the foundational elements for both electric and autonomous vehicles, with a focus on enhancing in-cabin experiences and seamless connectivity to mobile platforms. In this report, we analyze the company’s business model, its market opportunity, financials, valuation, risks, and then finally conclude with our opinion on whether investing offers an attractive balance between risks and rewards.
Amazon: Ranking “The Magnificent 7” for 2024
2023 was largely a tale of two markets. The “S&P 493” (roughly two-thirds of the index, by market cap) was up 20.3% (on average), while the seven largest mega-cap stocks (i.e. the “Magnificent 7”) were up ~100%, on average (see table below). In this report, we rank each of the Magnificent 7 stocks for 2024, with a special focus on Amazon (including an update on its business, its four big growth opportunities, valuation and risks). We conclude with our stern opinion on investing in Amazon (and the Magnificent 7) in 2024, especially as compared to non-mega-cap growth stock opportunities.
Next Gen AI Data Center: Massive Disruptive Upside
The data center company we review in this report is the epitome of a high-risk / high-reward opportunity, and the odds appear tilted strongly towards high reward (based on the massive secular opportunities: mainly explosive growth in Artificial Intelligence, and to a lesser extent blockchain hosting). This isn’t the type of stock you bet the farm on, but it’s absolutely worth considering for an allocation within a prudently concentrated high-growth portfolio. In this report, we review the business, the opportunities, valuation and risks, and then conclude with an important takeaway.
Big EV Upside for this Tiny Specialty Chemicals Company
As inflation slows, the fed gets less hawkish and the market builds momentum heading into 2024, the shares of some high growth stocks remain depressed despite the fact that business is accelerating rapidly. The specialty chemicals company we review in this report has a healthy “energy industrials” business (servicing oil producers, refiners and the like), but it is the company’s tie in to electric vehicles (thermal barriers used in battery packs) that make the disruptive upside potential most compelling (for example, the shares have nearly 90% upside compared to the consensus Wall Street price target, and they’re rated “strong buy”). In this report, we review the business, the growth potential, the valuation and the risks, and then conclude with our strong opinion on investing.
Small, Under-the-Radar, High-Growth, High-TAM, SaaS Stock
The Software-as-a-Service company we review in this report has a lot of attractive qualities, including a leadership position in a large total addressable market (“TAM”) where growth is being driven by increasing cloud-based connectivity (i.e. the Internet of Things (“IoT”)). It’s also a “smid” sized company ($2.7B market cap) and trades at a compelling 3.1x forward sales. In this report, we review the business, the growth opportunity, the valuation and the risks. We conclude with our strong opinion on investing.
Visa: Big Dividend Hike, Massive Share Repurchases
Technology-driven payment processor, Visa (V), recently announced another big dividend hike (15.6%) and a massive $25B share repurchase program. And this industry-leading company is benefiting form the enormous digital payments secular trend. It also has one of the most impressive net profit margins you’re ever going to see. In this report, we review the business, the market opportunity, the valuation, the dividend and the risks. We conclude with our strong opinion on investing.
Monolithic Power: 40 Top Chip Stocks, Ranked
The world is being “digitized,” and besides software, semiconductors are the "nuts and bolts" making it all happen (in datacenters, on devices, in the cloud and just about everywhere else too, considering the expansive "Internet of Things" ("IoT")). In this report, we share data on 40+ top semiconductor stocks, ranked by net profit margins (a particularly important metric in the currently challenging macroeconomic environment). We have a special focus on Monolithic Power Systems (MPWR) an "offense-and-defense" chip stock, including a review of its business, financials, valuation and risks. We conclude with our strong opinion on investing in semiconductors in general, and Monolithic Power in particular.
Despite 28 Years of Dividend Growth, This Materials Company is Hated
With an increasingly strong tie in to alternative energy, this materials company is absolutely hated right now. The shares are ~60% below their 52-week high, yet the dividend is safe (and growing for 28 consecutive years), and the shares are very undervalued. In this update, we review why the shares are down (plenty of news), what we believe the shares are actually worth (they have significant upside) and why we think the stock offers a rare (and highly attractive) opportunity for healthy dividend growth and dramatic share price appreciation.
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.
Innovative Staples Stock—Disrupting a Big Market
The innovative consumer staples stock we review in this report is involved in the creation, promotion, and distribution of functional beverages, liquid supplements and protein bars. We analyze its business model, market opportunity, financials, valuation and risks. And then conclude with our strong opinion on investing.
AI Will Supercharge This Attractive High-Growth SaaS Stock
The SaaS (Software-as-a-Service) business we review in this report was already benefiting dramatically from its leadership position in the massive digital revolution megatrend (which, by the way, is still in its early innings). However, by the very nature of the business (the company has immense well-organized data), Artificial Intelligence (“AI”) technologies will supercharge the value it brings to clients and the growth rate of its profits. In this report, we briefly review the business, its growth and valuation, and then conclude with our strong opinion on investing.
Meta AI: Sustaining the Money-Printing Machine?
Meta (META) makes money through advertising on its four main assets, Facebook, Instagram, WhatsApp and Threads (they’re all basically communications aps). But how will the business be disrupted by newly emerging (and rapidly accelerating) Artificial Intelligence (“AI”) technologies? We answer that question in this report, as well as review Meta’s growth, valuation and competitive advantages. We conclude with our strong opinion on investing.
Rivian: Big Risks, Big Rewards. Buy, Sell or Hold?
You’re likely aware electric vehicle (“EV”) sales are on a high-growth trajectory. And you may also sense the growing popularity of Rivian Automotive (RIVN) Trucks, SUVs and Electric Delivery Vans. But are Rivian shares a buy, sell or hold? In this report, we review Rivian’s business model, its market opportunity, financials, valuation, risks, and then conclude with our strong opinion about investing in Rivian.