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.
Palantir Snubbed: 7 Top “AI” Stocks, Big Upside
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.
Snowflake (SNOW) Quick Note
In this quick note, we provide some brief updated data and valuation metrics for Snowflake (SNOW), as well as our thoughts on the market opportunity, health of the business and risks. This one was so popular when it IPO’d during the pandemic bubble in late 2020, and the shares have now fallen so hard.
Top Growth Stocks - Still Hated
In this quick note, we share updated data on top growth stocks (those with at least 20% revenue growth expectations for this year and next). You’ll notice the names with positive net margins have performed relatively better over the last year (quite the opposite of when the pandemic bubble had full momentum behind it and revenue growth was all that seemed to matter). The table also shows recent performance, short interest, margins, various valuation metrics and more. It’s hard to take a contrarian view, but that’s often a profitable approach for selective long-term investors at lower points in the market cycle (i.e. right now).
Big Data Stock: Massive Sales Growth, About to Turn EPS Profitable
This big data stock went public in late 2020. And after some incredible post-IPO gains in 2020-2021, the shares came crashing down as the high-growth pandemic bubble burst. However, the company’s massive revenues have continued to grow an incredible pace, it just announced impressive quarterly results last week, and it is about to turn EPS positive (a great thing in this environment). And critically important—there is still a lot more room to run (in terms of sales growth that will lead to massive profits in the relatively near future.
Snowflake: An Enormous Opportunity for Long-Term Growth
Snowflake provides a cloud-based data platform, addressing the rising data management needs of enterprises. The company went public recently and has delivered staggering listing gains to its investors. In this report, we analyze Snowflake’s business model, competitive strength, financial position, and finally conclude with our opinion on the stock’s risk-reward investment opportunity versus its current valuation.