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AppLovin: A Lot To Love Now

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  AppLovin's stock has dropped significantly from its peak due to fears and short attacks. The company excels in AI advertising for mobile games, with ad revenues surging 73% in Q4 2024, and is expanding into e-commerce and connected TV ad markets. AppLovin's efficiency is notable, with a 62% adjusted EBITDA margin and $2.1 billion in free cash flow, before divesting the Apps business. Despite short-seller concerns, the stock remains a promising AI ad tech company, trading at sub 20x EPS targets on a gap close to $175. AppLovin Corporation  ( NASDAQ: APP ) is a prime example of how good stocks with explosive gains shouldn't be chased. The stock soared after reporting great results for 2024 and guiding up Q1  '25  results, sending AppLovin to a record high, but the stock is now down over $300 from the peak due to fears, short attacks and economic fears. My investment thesis is ultra-Bullish on the stock due to the e-commerce advertising opportunity, especially on a di...

IB Net Payout Yields Model

Upstart: Looking For The Buy Zone

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Update - Apr. 5, 2025 Upstart has entered the buy zone on the dip to nearly $30. The AI lending stock has just been crushed after rallying to $90. The company will have to report a serious pullback to lending to warrant this dip.  Original article posted on Mar. 30 Upstart Holdings faces economic weakness fears, though loan origination and conversion rates have improved. The AI lending platform aims for $1 billion in 2025 revenue, further expanding into auto lending and HELOC markets. The key UMI index already suggests a tough lending environment, with ultimate upside on an improving market in the next 1 to 2 years. The stock is cheap at 4x sales targets, but investors should wait for better buy signals due to elevated short-term risks in fintech lending platforms. Upstart Holdings, Inc.   ( UPST )  has completely rolled over with other fintech lending stocks due to fears over economic weakness ahead leading to defaults and bank partners pulling back from lending. The sto...

LendingClub: Not The Destination

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Update - March 28, 2025 LendingClub with an interesting re-test of $10. The economy has to slump into a recession to warrant even this price, which is below TBV.  Original article posted on Jan. 30 LendingClub disappointed the market with conservative guidance for 2025. The fintech's potential remains high, with plans to double loan originations over time and expand into new investment products, including a rated structured certificate program. LC stock is attractive at less than 10x peak earnings potential, but patience is required for full growth realization. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » LendingClub Corporation  ( NYSE: LC ) is under pressure after 2025 guidance failed to impress. The online lending platform guided to solid growth for the next year, but the company isn't expanding business as aggressively as desired  by the market. My  investm...

Rigetti Computing: Sell On Any Nvidia Quantum Day Pop

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Update - March 21, 2025 Quantum Day didn't go very well. Rigetti CEO appeared to double-down on current quantum technology not being very useful.  Original article posted on Mar. 19 Rigetti Computing, Inc. reported weak Q4 results, with revenues dipping YoY. Nvidia's Quantum Day at the GTC 2025 event could temporarily boost Rigetti's stock based on quantum computing hype. Rigetti's CEO continues to emphasize limited commercial sales in the near future, relying heavily on government contracts and R&D milestones for now. Investors should consider cashing out if the stock surges due to the Nvidia event, as true commercialization is still 5 years away. The quantum computing space could see a major pop on any announcements coming out of the Quantum Day at the  Nvidia  ( NVDA ) GTC 2025 event this week.  Rigetti Computing, Inc.  ( NASDAQ: RGTI ) just  reported  weak Q4 results  and investors should hone in on the actual prospects of the quantum busi...

Viking Therapeutics: No Buyout Needed Now

  Viking Therapeutics' hit yearly lows despite strong sector expectations, as it enters pivotal trials for obesity drugs. The biotech announced a production deal with CordenPharma, signaling confidence in FDA approval and eliminating the need for capital-intensive manufacturing facilities. The $150 million prepayment deal with CordenPharma ensures production capacity ensures production capacity for 1 billion oral tablets and billions in annual revenues. The stock only has a market cap of $3 billion after this dip, despite the potential for billions in sales and a peer trading at 12.5x sales targets. The obesity drug sector has taken a significant hit despite ongoing strong expectations for weight-loss drugs. The sector dip has left  Viking Therapeutics, Inc.  ( NASDAQ: VKTX ) at yearly lows just as the biotech enters pivotal trials for their  obesity drugs. My  investment thesis  remains ultra-Bullish on the stock following the latest dip and game-changing ...

Reddit Faces Normalization Pain

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Update - March 10, 2025 Reddit ended down 20% and over 50% from the highs.  The stock needs to close the gap to $80, before Reddit gets appealing.  Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Original article posted on Feb. 3 Reddit's current growth rate is unsustainable with U.S. DAU growth decelerating and future growth likely to be challenging, similar to other social media stocks. The stock trades at over 20x forward sales, a multiple other social media stocks were unable to sustain. Investors should be cautious; while Reddit may report strong Q4 results, sustaining growth to justify its current stock price is uncertain. The stock market has an established history of smacking down social media stocks when the major growth phase ends.  Reddit, Inc.  ( NYSE: RDDT ) will ultimately face this outcome when the current spectacular growth phase normalizes. My...

ZIM Integrated: Ceasefire Problem

Update - Mar.7, 2025 A CEO led deal right now makes no sense with shipping rates set to collapse and the Drewry World Container Index already down to $2,541. -ZIM Integrated Shipping (NYSE: ZIM) +7% - Shares soared amid takeover speculation, following reports that CEO Eli Glickman is exploring a management-led buyout of the Israel-based shipping firm. According to a StreetInsider report citing an unidentified source, Glickman is working with advisers on a potential bid, though it remains unclear whether his efforts will materialize or if the board will be receptive. The company is set to report its Q4 earnings on Wednesday. Original article posted on January 21.   ZIM Integrated Shipping Services Ltd. faces a bearish outlook due to the expected collapse in shipping rates following the end of the Red Sea disruption on a Hamas/Israel ceasefire. The container shipping market faces a potential 25% tonnage oversupply and an 11% drop in TEU-mile demand by the sector returning to the Suez...