While a smaller Fed rate hike is generally a good thing for risk assets (and a pause is better), rates are still likely to head higher from here. How high they go, and how long the Fed keeps them high, remains to be seen.

That said, if the market is right, and the Federal Reserve resorts to cuts rather than hikes in the future, the stocks below could go on a tear for the rest of the year.

Let’s dive in!

Coinbase (COIN)

One of the most notable performers in the current market (among many) is Coinbase (NASDAQ:COIN). This past week, COIN stock saw an intra-day move of more than 20% following the recent Fed rate hike. However, it’s clear that investors have found a number of other reasons to get bullish on COIN stock in the near term.

As I discussed in my recent piece, Coinbase is among the more speculative and interest rate-sensitive stocks in the market. Thus, macro factors likely play a bigger role in valuing this company.

That said, this past week saw a judge throw out a proposed class-action lawsuit that would allow investors to sue Coinbase for purportedly offering unregistered securities. Indeed, this potential negative headwind has been hanging over COIN stock for some time, leading to a clear relief rally.

Over the course of the year, how the Fed chooses to react to macro indicators will likely drive significant volatility in COIN stock. For those looking for a higher-beta way to trade the market, this is a stock to keep an eye on.

Nvidia (NVDA)

A company many long-term growth investors continue to look to, Nvidia (NASDAQ:NVDA) has certainly disappointed over the past year. That said, there are plenty of reasons to believe this is a company that could benefit in an economy driven by accommodative monetary policy moving forward.

Nvdida’s cutting-edge graphics processing unit technology powers exceptional computing capabilities, facilitating the creation of advanced technologies.

Nvidia is leading the way into the technological future by offering robust processing capacities to different applications, including quantum computing. The company has established a software development kit referred to as cuQuantum. This kit leverages Nvidia’s existing GPU software to enable quantum computing by allowing developers to build workflows explicitly tailored for quantum computing and, hence, make the most of this technology.

In July, Nvidia launched a novel platform that unites classical and quantum computing abilities. This robust combined computing platform has driven creativity across various industries, including finance, health and artificial intelligence. It is now utilized to enhance progress in R&D endeavors. 

I think these factors, along with a risk-on environment for growth stocks, could lead NVDA stock to outperform this year.

Dutch Bros (BROS)

Last on this list of stocks to watch following the recent Fed rate hike is Dutch Bros (NYSE:BROS). A major coffee chain that’s swiftly expanding across the United States, Dutch Bros’ outstanding track record of growth is predicted to continue. This makes it an intriguing stock for investors looking for long-term plays.

I think the company’s growth trajectory will remain intact despite the recent Fed rate hikes. Should these hikes slow, and the economy is able to catch its breath, Dutch Bros could be among the biggest beneficiaries, given its broad economic exposure to the American consumer.

While competition remains fierce, it’s also true that the company’s business model is relatively defensive, no matter what happens. That’s because the inexpensive everyday luxuries Dutch Bros provides, along with its loyal customer base, have significant value. 

The company had a remarkable year of growth in 2022, expanding its store count by 133 locations, bringing its total to 671 stores nationwide despite the obstacles posed by the Covid-19 pandemic. This is especially remarkable as the company only had 370 stores three years prior in 2019.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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The post 3 Stocks to Buy Following the Recent Fed Rate Hike appeared first on InvestorPlace.

Today, anyone can seed startup ventures in hyper-growth industries and build a portfolio of privately traded companies. But just because you can invest in a private business doesn’t mean you ought to.

Before you put your money on the line, make sure you’re aware of what equity crowdfunding is, what types of offerings are available and, most importantly, what amount of risk you are willing to accept.

Equity Crowdfunding Types

Crowdfunding, as it’s known, began with the Jumpstart Our Business Startups (JOBS) Act. President Barrack Obama’s legislation allows startups to raise money through two key regulations: Regulation crowdfunding and Regulation A+.

The differences between the two are stark. So they can be overwhelming for investors just warming up to the notion of investing via the crowd.

Because of these key fundamental differences, there are numerous implications to you as an investor. These differences also matter to the entrepreneurs looking to raise money. That’s why the lineup of companies on Regulation A+ markets is different from the companies raising money through regulation crowdfunding.

What they have in common, however, is that both are classified within equity crowdfunding, which means:

Innovation Investor’s Luke Lango already discussed the fundamental shortcomings of regulation crowdfunding, so let’s talk about Regulation A+. Specifically, let’s examine what it is, what it means for you and if you should invest in these offerings.

What Is Regulation A+?

Regulation A+, or “Reg A+,” differs from regulation crowdfunding in a number of ways. These include how much money can be raised through equity crowdfunding, state-by-state provisions, the amount of Securities and Exchange Commission coordination required before the offering and the visibility into company financials.

• Forget ChatGPT, this is even bigger

For entrepreneurs looking to test the waters of a capital raise, a regulation crowdfunding offering may be their best bet. Regulation crowdfunding offerings max out at $1.07 million per year. That’s hardly ideal for the next Amazon (AMZN) or Google (GOOG, GOOGL). But it can work for firms that need to gauge the market’s appetite for investment.

Businesses that go through Reg A+ are able to raise up to $50 million per year. While that figure is far from mind-boggling, it’s not inconsequential. A $50 million raise, depending on the valuation multiple, puts these businesses in roughly micro- to small-cap territory. The idea is that Reg A+ offerings attract capital from accredited investors and brand loyalists.

Now, I said “up to $50 million” because the amount of money raised through Reg A+ depends on the tier. Tier I offerings max out at $20 million per year and “blue sky” laws bind them. For example, a private company raising money via Tier I must comply with each individual state’s (and territory’s) laws. This not only slows down transaction speeds, but it’s wildly expensive and generally too expansive for most companies to consider.

Reg A+ Tier II offerings, however, have no such restrictions. Instead they are bound by a “coordinated review” process conducted by states, which is far less restrictive. Tier II offerings also max individuals out at 10% of their net income or 10% of their net worth (whichever is greater).

The ‘Mini IPO’

Unlike regulation crowdfunding, Reg A+ can function as an initial public offering (IPO), or a “mini IPO.”

To this end, the SEC steps in to audit company financials and approve the offering. The costs are smaller than traditional IPOs, however, and the ongoing reporting is less burdensome for the company.

Like IPOs, Reg A+ offerings are mainly liquidity events. But early investors do not experience lock-up expiration periods. While the possibility of secondary markets exists (since Reg A+ crowdfunded securities are freely transferable), there aren’t many avenues for trading to occur yet. That means much of the liquidity premium is future-based.

To take advantage of this, crowd investors need access to what are essentially “venture exchanges.” But companies able to stomach more intrusive financial reporting (and higher costs) can list their Reg A+ offerings on national stock market exchanges or over-the-counter (OTC) markets. Where equity crowd investing really could shine, though, is in democratizing the startup/scaleup investing process.

If you wanted to buy into Uber (UBER), you had to wait until it went public. By that time, everyday investors were too late. Institutional investors, insiders and venture capitalists long made all of the early gains to make. Crowdfunding (especially the higher-capped Reg A+) provides everyday investors the ability to vote on businesses, technologies and industries they believe in.

Like Kickstarter and Indiegogo, Reg A+ crowd investors are fans who believe in the vision of the entrepreneur. But unlike perk-based crowdfunding sites, Reg A+ offerings provide real, transferable equity in a company. You’re not just funding a company to secure a place in their consumer line.

Startups to Invest In

One entrepreneur has staked his reputation on the success of equity crowdfunding through Reg A+ offerings. His name is Howard Marks, co-founder of Activision (ATVI) and the former founder/CEO of Acclaim Games. Marks is now involved in a new venture — StartEngine — whose future is dependent on the viability of equity crowdfunding.

Marks’ equity crowdfunding platform bills itself as a portal for everyday investors and accredited investors alike to learn about new capital raise opportunities and to invest in their offerings. To date, StartEngine has hosted 300-plus offerings on its site, which have raised more than $100 million from the 200,000-plus users on its platform. On average, users typically invest a minimum of $500.

On the site investors find companies such as TerraCycle, an already successful business with more than $20 million in annual sales and blue-chip clients in Walmart (WMT) and Amazon. In the same breath, you may stumble upon offerings like that of Knightscope — a crime-fighting fully autonomous security robotics company.

StartEngine’s own Reg A+ offering is worth looking at as a lens into crowdfunding at large. As of this writing, StartEngine’s current Reg A+ offering has raised $6.66 million from 5,685 investors, approaching its raise cap of $9 million. The funding round values the company at $119 million with a $7.50 per-share price.

However, while it’s a reasonable lens to look through, the success of StartEngine’s offering doesn’t necessarily translate to the success of the Reg A+ equity crowdfunding market.

Marketing the Company Vision

Before crowdfunding, entrepreneurs who sought investment could only pitch venture capitalists. Today they can involve their marketing and communications department in their offerings. StartEngine has the benefit of being able to feature its offering in the prime real estate of its homepage (or any other pages on its site that generate traffic).

This means that the difference between a successful capital raise from equity crowd investors hinges on the ability of the company to be able to not only sell everyday investors on their idea, but to reach them.

But successfully marketing to brand enthusiasts is one thing, and making good on the promises of a return on investment is another. Associate Professor of Management and Entrepreneurship, Brent Goldfarb, at the University of Maryland’s Robert H. Smith School of Business, has his own reservations about the sorts of companies found on equity crowdfunding sites:

“Crowdfunded companies are very high risk, and, as is the case with most entrepreneurial ventures, are more likely than not to fail. Hence, as such, companies in aggregate should only comprise a small percentage of their investments. This thinking sits behind the SEC’s crowdfunding rules, as well as the rules that determine which investors qualify as accredited. In general, investors who invest broadly in the public markets by buying index-based securities will outperform investors who invest in startups, including crowdfunded startups. Admittedly, investing in startups on crowdfunding platforms or otherwise is more fun.”

For example, High Times is a very troubled company whose road to profitability is unclear. The company is in debt up to its eyeballs (with a $105.2 million deficit blotching its balance sheet), and most professional and accredited investors wouldn’t touch it. So High Times tapped into the thousands of cannabis enthusiasts and brand loyalists whose knowledge of valuation and future cash flows is limited.

Bottom Line on Reg A+ Offerings

Equity crowdfunding has a lot of potential. Plenty of companies like StartEngine and MicroVentures are contributing to the democratization of private investing. Its viability as a platform for serious investors is still unknown, though.

William Cong, Associate Professor of Finance at Cornell’s Johnson Graduate School of Management, spoke to me about equity crowdfunding, saying “individuals typically do not have the skill/ability to pick the right funds to invest in or to pick the right projects to invest in.” Cong expands on this by saying that “individuals in aggregate can provide useful information to an entrepreneur or firm executives, and can provide effective monitoring. The key is to have the infrastructure to coordinate the individual investors. Crowdfunding mechanisms such as Kickstarter or Lending Club or ICOs are such examples.”

For less-experienced investors, it’s hard to tell the difference between a TerraCycle and a Knightscope. The users who are currently looking for the next Amazon will need strong guidance, as they currently mostly have the marketing arm of the companies behind the offering to sell them on the future of the business.

It’s worth keeping an eye on the development of equity crowdfunding, especially Reg A+ offerings, over the next few years. And there are interesting things happening in the world of real estate crowdfunding. As crowdfunding evolves, it could prove to be a legitimate means of raising capital … or it could turn out to be a playground of marketers looking for a quick cash-grab from loyalists. Time will tell.

John Kilhefner is the senior managing editor for the Lango franchise. He’s also a founder of the DC creative agency Skellator, LLC. As of this writing, Kilhefner did not hold a position in any of the aforementioned companies.

The post Should You Invest In Reg A+ Startups? appeared first on InvestorPlace.

“I can calculate the movement of the stars, but not the madness of men.”

So lamented Sir Isaac Newton, formulator of the laws of universal gravitation, co-developer of calculus, creator of the Newtonian reflecting telescope…

…and horrendous investor.

Newton was a speculator in the South Sea Company stock bubble during the period around 1711-1720. For all his brilliance, he wasn’t able to protect himself from losing the present-day equivalent of more than $4M on the trade.

What happened?

In short, Newton got caught up in the frenzy of excitement surrounding the much-hyped South Sea Company. He rode the stock up to filthy-rich levels…

But then didn’t sell when the stock began to turn south.

I imagine his mindset as the stock began to crumble was “it’ll come back.”

That ill-fated decision led him to hold the stock as it plummeted all the way back down, losing him all of his gains, and more.

Newton’s experience points toward a challenge that has plagued investors and destroyed portfolios for centuries…

How do you know when to sell?

For readers less familiar, Wood is the CEO and CIO of Ark Invest.

She’s best known for being the engineer of ARKK, which is her disruptive technology ETF. It holds a basket of top-tier technology stocks including Tesla, Zoom, Roku, Crispr Therapeutics, and Teladoc.

This fund exploded in the years leading into the pandemic.

As you can see below, from January 1, 2017, through February 12, 2021, Wood’s flagship ETF utterly destroyed the S&P 500. ARKK climbed 733% in those four years, which was nearly 10X the S&P’s 76% return.

But then, ARKK began to wobble.

Small losses turned into bigger losses – yet Wood held, convinced the bullishness would return.

It did not.

As you can see below, from that February 2021 highwater mark though late-December of last year, ARKK lost 81% of its value, while the S&P lost only 3.4%.

But more disturbing is the fact that ARKK completed a “round trip” and worse.

In other words, had an investor bought on January 1, 2020, and enjoyed the monster gains that ensued – yet didn’t sell – he/she would have lost every single dime of profits, and more.

That investor would still be underwater today.

Once again, not knowing when to sell resulted in complete portfolio destruction.

Keith is the CEO of TradeSmith. You might recognize his name as we recently featured an essay from him in the Digest.

From Keith:

I’m not here to pick on Wood. I could talk about her genius side and about how she could probably be doing 98% of things right.

What I want to talk about is the 2% that she has done wrong, because it’s that part of her decision-making process that sent the Ark Innovation ETF price plummeting.

Wood’s problem is that she’s human.

When you’re managing $8.1 billion in assets (just for the Ark Innovation ETF, not her other ETFs), you need to be a machine.

Machines are calculated, work within a set framework, and have no emotion. They are programmed for one job, and they execute it.

In comparison, we humans are risk-averse when we are winning; we sell too early, and we buy too high and then throw in the towel as a stock price sinks.

We can’t manage our emotions, and it leads us to do the exact opposite of what we need to do in the stock market.

Back to Keith to describe Wood’s mistake, which is also the focal point of tomorrow’s event:

Wood has made one of the most classic investor mistakes: not having an exit strategy.

That comes from not having a fully formed plan that considers what to do when things go south.

Had she just installed a trailing stop, her results could’ve been much different (and, I suspect, far more lucrative).

A trailing stop is a stop price set at a defined percentage below the current market price of the position.

At TradeSmith, we tie our trailing stops to the Volatility Quotient (VQ), our proprietary measure of a stock’s inherent volatility.

These smart trailing stops help us take advantage of the natural ebb and flow of price movement to maximize any gains while ensuring we don’t get stopped out too soon.

So, how would a “smart stop” such as the one Keith is describing have impacted an ARKK investor’s returns?

Keith writes that the Ark Innovation ETF triggered an Entry Signal in Tradesmith’s system on May 22, 2020, at $61.27.

From there, the ETF soared to $155.30 before falling to its stop loss of $113.36 to $109.36 on March 8, 2021.

An investor would have exited the trade with a 78.5% gain – versus Wood, who is still holding, down 30% over the same period.

Regular Digest readers know that Luke is our hypergrowth expert. His specialty is finding market-leading tech innovators that are pioneering explosive trends, capable of generating enormous returns for investors over the long-term.

One of Luke’s investment services is The Daily 10X. It’s like no other service we offer.

Luke doesn’t recommend official “buys,” manage a portfolio, or provide “sell” advice. But every day the market is open, he highlights a small cap stock with the potential to grow 1,000%.

This approach can be incredibly lucrative. For example, coming into 2022, over the prior five years, Luke had recommended 17 different stocks that climbed more than 1,000%.

But let’s return to a detail of the Daily 10X that we just glossed over…

“Luke doesn’t…provide ‘sell’ advice.”

Racking up huge gains is great. But as we’ve seen today, it’s the “locking them in” part that’s so tough for investors.

Take Chinese electric car manufacturer, NIO.

Here’s Luke from all the way back on May 27, 2020, in The Daily 10X:

Many consider NIO to be the “Tesla of China.” That’s an accurate representation. For all intents and purposes, NIO is today exactly where Tesla was back in late 2015…

This is a tiny company ($3.4 billion market cap) in its infancy (the first NIO car was delivered in mid-2018) with a ton of room for market share expansion as the Chinese EV market matures and the premium category flourishes…

Indeed, if you assume NIO nabs Tesla-like market share in China, then there is potential for NIO stock to rise to $50 by 2025.

That’s represents 1,500%-plus potential upside from here … which is big enough that if you’re looking for an EV stock to deliver Tesla-like returns, you should consider taking a position in NIO stock today.

It’s turns out NIO didn’t need until 2025. A handful of months would be good enough.

Between Luke’s NIO profile in The Daily 10X in May 2020 and early-February 2021, NIO soared 1,545%.

But we all know what’s coming…

From that peak price, NIO has fallen 83%.

Well, first, had that investor bought NIO after Luke’s profile of it and held until today, he/she would be sitting on a gain of 184%.

That’s a great return.

However, Keith’s trading stop service would have gotten an investor out of NIO at roughly $19, which could have netted a 903% gain on the trade.

All because of better exit timing.

Tomorrow at 8 PM EST, Keith and Luke will be sitting down to discuss this TradeSmith tool in more detail.

They’ll explain how it can help investors profit in the market as this latest bull surge runs, while simultaneously protecting gains if 2022’s bear makes a resurgence.

Before we sign off, one quick note…

Cathie Wood’s ARKK fund is off to a hot start to the year. Had an investor timed her entry-price perfectly in late-December, she’d be up 40%.

But just a few days ago, this investor was up 50%.

Is ARKK rolling over?

Should she sell?

Is ARKK about to collapse, wiping out that entire 50% return?

Using a smart trailing stop service prevents you from worrying about these types of questions.

Join Keith and Luke tomorrow to hear more about how it works, how it can make your investing career far more peaceful, and how it can transform your portfolio returns.

Click here to sign up for this free event and we’ll see you tomorrow.

Have a good evening,

Jeff Remsburg

The post How to Boost a 184% Gain into a 903% Explosion appeared first on InvestorPlace.

For many people across America, seeing the multitude of crypto Super Bowl commercials in 2022 was confusing. Many were certainly questioning what this new technology was and whether it would last. But for investors who had been watching the crypto market beforehand, it likely came across as jarring more than anything. The ascent of crypto’s popularity can only be likened to the dot-com bubble of the early 2000s, or the infamous “tulip mania” centuries ago.

As these examples suggest, the hype for crypto certainly didn’t last much longer. Prices were already in decline before the day of the Super Bowl, but things took a turn for the worse shortly thereafter. Just as many Americans were introduced to this new category of investing — and as many decided to make their foray into the space thanks to the hype — the market shaved off over $1 trillion. Moreover, projects soon started imploding left and right.

The aggressive push of crypto into the mainstream was poorly timed and poorly received. The crypto Super Bowl commercials from 2022 are a prime example of the market’s hubris. Four different companies aired commercials during America’s biggest sporting event: FTX, Crypto.com, Coinbase (NASDAQ:COIN) and eToro. These companies, at the time, represented some of the most prominent names in the industry. With the decline of crypto prices and the collapse of a number of projects, though, things are changing rapidly.

What has happened to this bunch since their multi-million dollar bets on the Super Bowl?

FTX Implodes After the Crypto Super Bowl Commercials

Of the big four crypto exchanges to air an advertisement during the game, FTX is definitely the most well-known. And, as many know, that’s not for any good reason. In fact, the company is rapidly becoming the de facto cautionary tale against trusting crypto companies altogether.

The company’s Larry David-starred commercial was perhaps the most-talked-about of the pack. David is depicted throughout history, voicing skepticism at the invention of some of the world’s greatest marvels of engineering — the lightbulb, the wheel, the Sony Walkman. The ad ends with David being pitched on crypto, to which he gives a simple “nah.”

It is an effective advertisement when it comes to stoking urgency in its audience. However, those who maintained their David-like attitude were best rewarded. Nine months after airing the commercial, FTX became the subject of one of the biggest financial scandals of the 21st century. Revelations of fund mismanagement, obfuscating of internal communications and general ineptitude of the highest degree has brought the company to its knees — and founder Sam Bankman-Fried to prison.

As it stands now, those unlucky enough to put their funds into FTX have likely been unable to recover them. The company has been entered into bankruptcy court and its new CEO — the same crediting expert who was tasked with liquidating Enron — has been peeling back the layers of corruption publicly. Sam Bankman-Fried faces 115 years in prison and his peers have taken plea deals to help indict the disgraced entrepreneur.

Crypto.com’s Post-Super Bowl Struggles

No other company on this list has had it quite as badly as FTX, but Crypto.com is certainly not fairing the crypto winter well. Its ad features NBA star Lebron James lecturing a younger version of himself, saying “If you want to make history, you’ve got to call your own shots.”

It’s an apt collaboration. After all, Crypto.com shelled out an eye-watering $700 million for naming rights to James’ current home arena in Los Angeles. Unlike James, however, the company has been less successful at calling its own shots in the time since, especially when under pressure. Investors continue to see smoke coming from Crypto.com’s offices. The company recently axed a whopping 20% of its workforce. This follows late 2022’s wave of layoffs, which saw 260 employees get let go. Employees also say the company fired hundreds more behind closed doors.

Adding fuel to the fire are Crypto.com’s adversaries. Binance (BNB-USD) CEO Changpeng Zhao has called Crypto.com’s mass movement of assets in late 2022 “a clear sign of problems.” It’s unsurprising for companies to badmouth competitors. But that same sentiment has been echoed by a significant number of crypto venture capitalists and finance pundits. Comparisons between CEO Kris Marszalek and Sam Bankman-Fried have not been helped by reports rehashing the controversial end to Marszalek’s previous company, Ensogo.

Crypto.com is a private corporation, making it hard to place just how badly the company struggling. However, if its Cronos (CRO-USD) token is any indicator, it’s definitely on the skids. CRO is down 80% year-over-year (YOY). Its market capitalization has fallen to around $2 billion.

What the company does have going for it is user growth. Throughout crypto winter, Crypto.com continues to bring in users. In November, the company surpassed 70 million active users.

Coinbase Suffers After Crypto Super Bowl Commercials, But Holds Much Power

Coinbase didn’t go for laughs or big-name cameos like other crypto Super Bowl commercials did last year. Rather, the company opted for simplicity. The bouncing QR code that populated viewers’ TV screens for 59 seconds changed colors occasionally. That’s about it.  The code itself, when scanned, took viewers to a page offering $15 in Bitcoin (BTC-USD) as a bonus for signing up for the exchange.

From some perspectives, the commercial was easily the most successful of all these crypto ads. More than 20 million viewers scanned the code — so many people that the traffic crashed the app.

Yet, for all of this buzz, COIN stock has been almost entirely in decline since the commercial aired. Trading for around $200 per share in February 2022, Coinbase seemingly showed the proof the world needed that crypto was a booming enterprise here to stay. Today, though, shares trade at just $71. In terms of market cap, COIN has shrunk to $18 billion. It expects a more than 50% YOY decrease in revenue this year.

Like others, Coinbase has tried to tread water by shedding its workforce. In mid-2022, it fired 18% of its staff. In January, Coinbase fired another 20%. Yet, fiscal turmoil continues to find the company in new ways, like the $100 million penalty it recently received from the New York Department of Financial Services.

Coinbase’s struggles should be extra-interesting and extra-concerning to the crypto faithful more so than others. Indeed, it retains an interesting role as the world’s largest staker of Ethereum (ETH-USD). Experts at blockchain security player CertiK say this market dominance could prove problematic for the future of blockchain. The company could very well be pushed to censor transactions by the U.S. Treasury Department. CEO Brian Armstrong says Coinbase will shut down staking before censoring the blockchain, but there’s a possibility Coinbase reneges on this promise to appease shareholders. It’s simply a game of wait-and-see.

eToro: No SPAC Deal to Speak of, but Less Bloodshed Than Peers

eToro rounds out the pack of crypto companies that threw out advertising to the masses via crypto Super Bowl commercials last year. And in the aftermath of its milquetoast ad spot, the company is seeing the mildest volatility of the bunch. Its diversity of offerings has spared eToro much of the same troubles that have plagued peers.

The only thing eToro is guilty of is being boring. Indeed, its Super Bowl ad spot is the least interesting of the bunch — it depicts people floating throughout a city in a bird-like murmuration. Ultimately, it fails to be neither funny nor especially odd, at least by Super Bowl commercial standards.

While most of the crypto commercials last year leaned into the FOMO aspects of crypto investing, eToro stayed more in line with its Wall Street-accepted stock brokerage peers. Crypto was simply an added bonus to the “community investing” offering eToro advertises.

In the end, not leaning too hard on the crypto side of its business model might’ve been what saved eToro from suffering as much as its peers. Indeed, eToro’s first seven years of existence only allowed its users to copy trade. Crypto has been a secondary venture for the company, with it only adding the investments in 2014.

Being a stocks-first, crypto-second trading application may have saved it from the worst of the mid-summer crypto implosion and the FTX meltdown. However, this company is still a fintech player. It did not get off lightly as the bear market swept every corner of the investing world.

Most recently, eToro lost out on its chance to join Coinbase as a publicly traded crypto exchange. In mid-2022, eToro saw its plan for a special purpose acquisition company (SPAC) merger with Fintech Acquisition V come to an end. Factors outside of either’s control kept the deal from going through. This came after the two companies agreed in December 2021 to delay the merger. At the time that delay was announced, eToro’s valuation dipped from around $10 billion to $8.8 billion.

Crypto Marketers Shuffle Plans After Crypto Super Bowl Commercials

The fallout of the crypto market has been unkind to all. But, crypto marketers have had to get especially crafty in the wake of 2022’s storm if they want any chance of attracting new clientele. In the last several months, crypto advertising has become less about the FOMO and community of the Super Bowl crypto commercials. Now, marketers are focused on simply distancing themselves from the bankrupted peers that have shattered trust in the entire system.

Companies like Binance, Coinbase and Crypto.com are taking pains to try and prove to investors that they aren’t like FTX. In fact, Binance has tried to prove this beyond a shadow of a doubt with its transparency audits. That plan has backfired a bit, however; several concerning red flags have been raised and auditors have abandoned the partnership.

For other companies still choosing to push onward with bullish promises, things are still complicated. On Tuesday, news broke that no crypto commercials will be permitted to air during Super Bowl LVII. Two companies have reportedly already paid for their ad space, filmed and finished their commercials. Two others were very close behind. All were set for spots during the game just before the FTX crash had occurred.

All told, it seems some more time for reflection is necessary before Super Bowl airers will be comfortable opening up to crypto ads again.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

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The post Crypto Super Bowl Commercials: Where Are They Now? appeared first on InvestorPlace.

The company was founded in 2014 when CEO Sam Masucci launched the business to help meet the need for thematic investing. Its first theme-based fund was the ETFMG Prime Junior Miners ETF (NYSEARCA:SILJ), which debuted in 2012. In May 2021, the ETF exceeded $1 billion in net assets.  

ETF Managers Group’s AI-Powered Equity ETF (NYSEARCA:AIEQ) hasn’t quite reached that level. Launched in October 2017, it has net assets of nearly $120 million. The actively managed fund uses the proprietary EquBot quantitative model developed by EquBot to pick U.S.-listed stocks. EquBot uses IBM’s (NYSE:IBM) Watson supercomputer to do all the heavy lifting. 

“Each day, the EquBot Model ranks each company based on the probability of the company benefiting from current economic conditions, trends, and world events and identifies approximately 30 to 200 companies with the greatest potential over the next twelve months for appreciation and their corresponding weights, targeting a maximum risk adjusted return versus the broader U.S. equity market,” states the fund’s prospectus.

The automated data-driven investment process eliminates bias and personal preferences from its stock selection. In 2023, AIEQ is up 14.9%, nearly double the S&P 500. 

 Here are three top buys from the market-beating AI-Powered Equity ETF. 

Celsius Holdings (CELH)

Celsius Holdings (NASDAQ:CELH) is AIEQ’s sixth-largest holding with a 2.1% weighting. However, the maker of energy drinks has seen a cooling off of its share price in 2023. It’s down around 5.7% year to date, but it remains up 83% over the past year. 

Wedbush Securities recently upgraded CELH stock to “outperform” with a $115 target price, 17% higher than where it’s currently trading.

“We believe that the recent pullback in shares (which are down over 18% since 1/17/23, due to a lawsuit that will ultimately have little to no impact on company fundamentals) creates an attractive entry point for investors looking to gain exposure to the best growth story in all of [consumer products],” Wedbush analyst Gerald Pascarelli said in a note to clients.

In October 2021, I suggested that Celsius was a stock to buy and hold for the next decade. While its shares slumped in early 2022, I remain confident that it’s an excellent long-term buy.  

In August, PepsiCo (NASDAQ:PEP) acquired an 8.5% stake in Celsius as part of a distribution partnership that saw the beverage giant become its U.S. distributor, with worldwide distribution in the future. 

With Pepsi in its corner, the sky’s the limit.

UnitedHealth Group (UNH)

Next up is the second-largest holding in the AI-Powered Equity ETF, UnitedHealth Group (NYSE:UNH), with a 3.6% weighting. Of the three stocks on my list, this has to be viewed as the defensive position of the bunch. It’s done very little over the past 52 weeks, down 2%. While that’s better than the S&P 500, it’s not what shareholders have been accustomed to in recent years. 

UNH stock took a bit of dive early in February due to the Centers for Medicare and Medicaid Services’ proposed Medicare Advantage rates for 2024. A core rate increase of 2.09% was lower than the average increase of 3.3% over the past five years. Wall Street was certainly not expecting such a low rate. But the final ruling doesn’t come until early April, so the rate may move higher by then. 

“While the result is disappointing, the industry has been the beneficiary of some healthy increases in recent years,” Oppenheimer analyst Michael Wiederhorn wrote in a note to clients. “Additionally, we note that over the last five years, the final rule has come in 1.0% better than the proposal, on average.”

So, I wouldn’t be too concerned if you are considering buying UNH stock. These things have a way of working themselves out. 

Mizuho Securities analyst Ann Hynes told her clients that the proposed increase will still allow UnitedHealth and its competitors “to continue to grow in the high-single digits.”

Analysts like UNH. Of the 26 covering it, 22 rate it “overweight” or “buy,” with no “underweight” or “sell” ratings. The average 12-month target price is $598.52, which is 26% higher than where it’s currently trading.

Roku (ROKU)

Roku (NASDAQ:ROKU), the eighth-largest holding in the AI-Powered Equity ETF at 1.9%, is performing well in 2023 following a tough 2022, during which the stock lost 82%. Up 54% year to date, the video streaming platform got some much-needed good news last week.

Warner Bros. Discovery (NYSE:WBD) will move its free, ad-supported television channels to the Roku Channel. Roku needs to add content to its homegrown channel to grow its advertising revenue. This deal allows it to do precisely that. 

The other big news from Roku in recent weeks is the company’s push into its own line of branded smart TVs. They are expected to be out at some point in 2023. This will be another way for it to generate platform revenue from the Roku Channel. At the same time, it will enable the company to test and introduce new features on Roku TVs, Roku VP of Marketing Dan Robbins told Fierce. 

Most importantly, with an ad platform and operating system purpose-built for TV streaming, advertisers will be more inclined to work with Roku to access this growing piece of the TV viewing audience. 

In early January, Roku announced its active accounts had surpassed 7o million, up more than 16% over the fourth quarter of 2021. In addition, its platform revenue grew 15% in Q3 2022 to $670.4 million, while its average revenue per user rose 10% to $44.25.

More active accounts multiplied by increased streaming hours on Roku Channel translates into significant revenues. Look for Roku to continue to innovate in 2023.     

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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We’re seeing growth stocks come back to life, along with tech. Tech has been the backbone of the market, as many of these companies have grown to sport market capitalizations in excess of $1 trillion.

If this group can continue to roar higher, the market will go along for the ride. However, if it begins to roll back over, equities will be in trouble. Let’s look at a few hot stocks for tomorrow, Feb. 8, starting with a small-time retailer getting a lot of attention.

Bed Bath & Beyond (BBBY)

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Shares of Bed Bath & Beyond (NASDAQ:BBBY) have been all over the place lately. On Monday, the stock gained attention when it was up 20% to 40% throughout the early afternoon. Then the squeeze really came to life.

At one point, BBBY stock was up more than 130% and shares closed the day higher by 92%. So far in midday trading on Tuesday, the stock is down close to 50%.

The volatility comes amid renewed interest in so-called “meme stocks.” That’s why Bed Bath & Beyond has now become one of the hot stocks for tomorrow — because it’s leading the charge on names like Carvana (NYSE:CVNA), AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), among others.

After Monday’s gains, the retailer announced a capital raise, and so far, the stock doesn’t seem to like the dilution impact. We’ll see how it shakes out as the company tries to avoid bankruptcy.

The Chart: On the upside, the 200-day moving average has limited the rally. On the downside, keep an eye on uptrend support (blue line.) After last week’s low of $2.57, shares could fall back below $2. It should be clear, but in case it’s not: BBBY stock is a pure speculation play at this point and most investors should avoid it.

Uber (UBER)

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Uber (NYSE:UBER) will report earnings on Wednesday before the open. For what it’s worth, Lyft (NASDAQ:LYFT) will report on Thursday evening. On Tuesday, Uber stock hit its highest level since April as bulls continue to pile into the name.

Multiple catalysts are helping to drive shares higher. First, tech stocks in general have been doing quite well. That’s as investors dive back into equities and gobble up some of the most beaten down names. Many happen to be investor favorites as well.

Second, travel trends have been incredibly strong, whether we’re looking at trends at Las Vegas casinos or listening to the conference calls of Royal Caribbean (NYSE:RCL) or Delta Air Lines (NYSE:DAL). That should bode well for Uber too.

The Chart: UBER stock is working on its sixth weekly rally in the last seven weeks. However, it’s currently struggling with the 50% retracement (again.) If it can clear the $34.50 area, it will open the door to the 61.8% retracement near $38. Above that and $40-plus is in play. On the downside, it’d be very bullish for Uber to hold the Q4 high as support, along with the 10-week moving average.

Alphabet (GOOG, GOOGL)

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Artificial intelligence (AI) has been all the rage lately. OpenAI’s ChatGPT has garnered attention from millions of people and is popping up all over social media and in the news.

Of course, big tech isn’t going to lie down and let other companies dominate this new and headline-worthy field. Or at least, they’re not going to go down without a fight.

On Wednesday, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is expected to hold an event on search and on AI. According to some reports, “the tech giant said it will detail the power of AI to reimagine how people search for, explore and interact with information. Shopping, Maps, and Travel are also a few of the highlights that are expected to be highlighted at the event.”

Further, Alphabet recently introduced Bard, an AI-powered chatbot. It’s possible that all of these products were coming to a head just a few months ago, but it seems like the progress and excitement around ChatGPT is really pushing big tech to adapt their AI approach even faster.

The Chart: I don’t know that an AI event will be enough to trigger a breakout in Alphabet stock, but if it can, it could be significant. If the stock can clear $110, it puts it above last week’s high, the 61.8% retracement, the gap-fill and the 50-week moving average. On the downside, a break of $100 opens up more downside.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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Now, the hedge funds who carried their short positions into the new year are faced with a difficult dilemma. Year-to-date, the S&P 500 is up by about 9%. Long hedge funds have taken advantage of this, but those on the short side are facing a different fate.

Last week, hedge funds covered their short positions at the fastest rate since 2015. Short coverings were even greater than during the epic January 2021 squeeze of meme stock general GameStop (NYSE:GME).

Hedge Funds Rush to Cover Short Positions

The short covering was driven by a lower rise in interest rates compared to past hikes and the dovish tone of Chairman Jerome Powell. Following those events, companies like AMC Entertainment (NYSE:AMC), Carvana (NYSE:CVNA) and Bed Bath & Beyond (NASDAQ:BBBY) took off in price, despite questionable and precarious balance sheets.

A further rise in the markets would likely equate to even more intense short covering. That would lead to an uptick in price once the short sellers cover their positions by buying shares of the underlying stock.

According to Goldman Sachs, the largest short positions held by hedge funds fall within the information technology and industrials sector. The investment bank also noted funds sold out of many long emerging Asian countries and Chinese equities positions.

However, several Wall Street analysts have voiced their opinion that the recent uptick is just a bear market rally or trap, such as JPMorgan strategist Marko Kolanovic. Kolanovic expects two more rate hikes in March and May and then a period of stable rates. He adds consistently high wages could lower gross margins across the board, which could result in even more layoffs. As a result, the strategist recommends investors take advantage of the recent gains and sell out.

Morgan Stanley’s Mike Wilson has a similar viewpoint. He cites falling corporate profit estimates for 2023. As of the end of January, S&P 500 earnings per share growth estimates were negative, which has only happened five times since 2000. Prior instances occurred in 2001, 2008, 2015 and 2020. Wilson concluded the current earnings recession is not priced into the market, and investors should expect lower prices.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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Many of these cyclical stocks currently provide excellent value in 2023,  compared to defensive stocks, and a multitude of cyclical businesses have substantially reduced their labor costs. As a result, it is only a matter of time before falling commodity prices and a growing economy boost their earnings.

Of course, there are near-term risks facing tech stocks. But betting on well-established businesses already trading at discounts minimizes risk. Also worth noting is that staying out of the market because of a possible recession will only cause investors to miss out on some phenomenal entry points on many stocks.

I made that point in a column I wrote in Dec. pointing out in a subheading that, “Buying tech stocks at their trough will generate outsized returns when the market recovers.” These tech stocks subsequently soared a considerable amount, but I’m confident that these stocks will do even better in the long run.

With that in mind, let’s look at the following seven stocks to buy:

Tesla (TSLA)

Although Tesla (NASDAQ:TSLA) has rebounded significantly from its earlier selloffs, there are more gains to be made in the name. I’ve pointed out in previous columns that Tesla is far from being “just another car company” due to its remarkable growth rate over the past few years. As long as it can sustain those growth levels, the company will continue to trade at a high premium to the market.

Moreover, the prices of important commodities such as lithium are declining,  significantly cutting costs for Tesla. These lower costs should also help the company sell its electric vehicles at more competitive prices and add more middle-class customers.

In conclusion, Tesla’s growth story is not over despite its shares’  decline last quarter. Its competitors in the U.S. and Europe are growing much more slowly than it is, and its Chinese competitors are unlikely to ever take meaningful market share from Tesla in the U.S. and Europe. Tesla’s profit margins are also three times higher than BYD’s (OTCMKTS:BYDDF).

These factors combined should help Tesla retain its valuation premium to its competitors in the long term.

Meta Platforms (META)

Ever since Meta Platforms’ (NASDAQ:META) price-earnings ratio fell to ten, its valuation looked too good to pass up. I’ve pointed out in many of my past articles that Meta’s core business of Facebook, WhatsApp, Instagram, and Messenger, was excessively undervalued. Indeed, Wall Street had to backtrack its punishment on Meta as the company decreased its headcount and its spending on the metaverse.

META stock has doubled from its low, but I believe that the shares can climb further for a few reasons. First, Meta’s profits have been trending downward  since 2022, while its top line has held relatively steady. The company’s layoffs and a recovery of the ad sector should positively impact its profits going forward.

Palantir (PLTR)

Palantir (NYSE:PLTR) is a software company that provides data analytics and integration solutions to governments and private companies. In recent years, the company has become known for its work with the U.S. military and intelligence agencies. Its customers within the government have driven its growth and increased its visibility among investors.

Palantir’s partnership with the U.S. government will ensure that its revenue will not drop much, as government agencies are not willing to shift sensitive information away from such a trusted company. Furthermore, the company is also benefiting from the strong growth of artificial intelligence and cloud storage.

The firm’s past few quarterly reports weren’t that great.  But I still have high hopes for Palantir in the long term due to accelerating demand for AI and cloud storage.

In Q3, the company ‘s revenue jumped 21% year-over-year, with its U.S. commercial revenue growing at a 53% YOY clip. The company seems well-positioned to benefit from the growing demand for data analytics and integration services in both the public and private sectors. Moreover, more favorable exchange rates also should boost PLTR’s top line.

PayPal (PYPL)

The trend towards digitization and the shift towards cashless transactions is only expected to continue in the coming years. That should enable PayPal (NASDAQ:PYPL) to grow rapidly. With its strong brand, PayPal is well-positioned to benefit from the growth of the digital payments industry and provide the owners of PYPL stock with a solid return on investment over the next decade.

The burgeoning freelance market is the most significant catalyst that will drive PayPal over the next decade. Top freelance platforms such as Fiverr (NYSE:FVRR) and Upwork (NASDAQ:UPWK) allow their customers to obtain payments much more easily through apps like PayPal.

Younger Americans are also more likely to use digital apps instead of traditional banking methods, even if the apps charge higher fees. PYPL is already the go-to payment option for many vendors worldwide, and its newer applications, such as Venmo, are increasingly becoming popular. PayPal has also expanded into the crypto market.

These positive trends make me believe that PayPal is set to surge and is among the best stocks to buy for the next decade.

Spotify (SPOT)

Spotify (NYSE:SPOT) is a music streaming company that had 124 premium subscribers before the coronavirus pandemic. Back then, the company reported annual revenue of about $7.6 billion, while it generated losses of around $230 million.

Now, conversely, its premium subscribers are approaching 200 million, and its revenue has nearly doubled. The company still reports losses, and its growth has slowed since the pandemic, but I believe the stock should be much higher than its current levels.

The company has retained the subscribers it obtained during the pandemic and expanded its subscriber base further while recruiting more customers overseas. Although it already has 195 million subscribers, it has more room for growth, especially once its ad revenue improves.

The company’s recent layoffs and more favorable currency exchange rates should also help lift this Sweden-based company’s earnings into positive territory in a few years.

Fiverr International (FVRR)

Fiverr International is an Israel-based company that will be among the top beneficiaries of the rapidly expanding freelance market. It is a platform that enables clients to find freelancers for almost any job and for as low as $5. Its business model is much better than that of its competitors, such as Upwork (NASDAQ:UPWK), where clients need to advertise for workers and whose freelancers have to apply for each opening.

For clients and freelancers, that is a time-consuming process compared to just examining freelancers’ profiles and reviews on Fiverr to find the best candidate.

Fiverr has remarkable customer retention, and the company continuously reinvests its cash in itself . Its financials also look solid, and its management focuses on growth while keeping losses tolerable.

Overall, Fiverr is among the least risky stocks to buy. It is up nearly 60% since I first wrote about it in October, and I think that it will continue to grow down the road.

Shopify (SHOP)

Shopify (NYSE:SHOP) is one of the seven stocks to buy due to its impressive growth record and potential. With online shopping continuing to become more prevalent, the demand for Shopify’s services is only expected to grow.

Its financials and stock price have taken a hit after the coronavirus pandemic declined in severity. But I still see substantial long-term prospects for the stock, as e-commerce is still growing.  

Shopify also reports solid financial results, featuring steady revenue growth and increasing profits. In its last reported quarter, its top-line growth accelerated to 21.5%, and its losses narrowed significantly.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.

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One of the reasons we focus on small caps is because it is a lot easier for a small-cap stock to rise 10X than it is for a mid- or large-cap stock to rise 10X.

That is, a lot more companies go from being worth $200 million to being worth $2 billion than from being worth $20 billion to $200 billion. The former journey happens all the time. The latter journey rarely does.

This is especially true when bear markets turn into bull markets.

That last time this happened was in 2020, when more than 20 stocks rose 1,000% in a year. Almost all were small-cap stocks, and a majority were micro-cap stocks (worth less than $200 million).

Back in 2009, when that bear market turned into a bull market, 16 stocks rose more than 1,000% in that year. Again, pretty much all were either small- or micro-cap stocks.

Going even further back to 2003 when that bear market turned around, we had about 10 stocks soar more than 1,000%. Pretty much all of them were small- or micro-cap stocks.

The point is very clear. When bear markets turn into bull markets, a handful of small stocks soar more than 1,000% in a year.

That’s why we think that if you’re a risk-seeking investor, now is the time to go shopping for stocks that can make you tens of thousands of dollars. The right ones could soar 10X-plus this year alone!

However, it’s crucial that you manage that risk.

Even a successful person can be taken to the brink of bankruptcy.

But right now, there are tools being developed, launched, and marketed to help thousands of people so that they never need to experience financial ruin from a bad stock pick.

Eliminate the Human Flaw in Investing

Everyone’s talking about artificial intelligence (AI) these days.

In fact, just a few days ago tech giant Alphabet (GOOG, GOOGL) said the word “AI”’ on its conference call exactly 62 times! Microsoft (MSFT), meanwhile, also can’t stop talking about AI. Nor can Tesla (TSLA), Amazon (AMZN), Apple (AAPL), or anyone else for that matter.

Artificial intelligence is all anyone wants to talk about these days.

And with good reason – AI will change the world forever. It will fundamentally transform society, much like the internet, the steam engine, the wheel, and even fire. It will change the paradigm of life as we know it.

The AI Revolution represents one of those once-in-a-lifetime investment opportunities where 1,000% and even 10,000% returns are entirely possible.

But while everyone is focused on ChatGPT, there’s something nobody is talking about at all…

Algorithms.

Every day, we make a multitude of small decisions that impact our daily lives.

However, when it comes to financial decisions with long-term consequences, the task becomes more challenging.

These types of decisions – like determining the right house or allocating 401(k) funds – can leave us feeling paralyzed and uncertain about which choice to make.

But that’s where Tradesmith’s ground-breaking algorithmic technology comes in. With over 15 years of experience in developing decision-making algorithms, Tradesmith offers a solution to make even the toughest financial decisions, like when to sell a stock, with ease.

In seconds, Tradesmith’s algorithms provide investors with confidence and clarity in their financial choices.

And I’ll show you how it looks in action LIVE on Thursday, Feb. 8. (Click here to reserve your spot today.)

The Final Word

Being the first to act on rapidly growing technologies can be one of the fastest ways to generate wealth in the world. But I’m not going to sugarcoat it – it’s not as easy as it was in 2020 or the 2010s.

But that’s not to say it’s not still possible.

Here’s the thing: The best technologies do four things…

They make life easier…

They make life faster…

And they make life less stressful and more user friendly.

As I’ve been hinting at over the past few days, I’ve partnered with one of the most renowned CEOs in the tech industry, whose company has a proprietary, decision-making algorithm that could be extremely lucrative in the right hands.

So please, do not miss this special live broadcast on Thursday.

In fact, I’ve already identified the next household name in tech, and on Feb. 8 (this Thursday) I’m going to peel the onion on what could be the most important company in the next decade.

I think it could make each U.S. household $100,000 over the years – it’s a $3 trillion opportunity you don’t want to miss out on.

Sincerely,

Luke Lango

Editor, Hypergrowth Investing

P.S. On Wednesday, February 8, at 8 p.m. Eastern time, I will be making the biggest prediction of my career. I am going ‘all-in’ on a proprietary technology with an estimated market size of 122 million people. In short, the algorithm behind this breakthrough could solve one of the largest, and most urgent, problems in America. And if it goes according to plan, this company could help investors generate up to $3 trillion. Click here for full details.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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The oil and gas industry experienced massive success last year, building a ton of financial resources to begin 2023 from a position of strength. Its strong positioning promises to benefit both businesses and the wider economy.

This optimism has been mirrored in a survey conducted by Deloitte, with an incredibly promising 93% of oil and gas executives expressing positive sentiment towards the industry in the future. Therefore,

The energy industry is always evolving, and the shift to renewable energy sources in the long term is no exception. Despite this, the top oil and gas stocks remain strong investments that could provide a source of steady growth for years. Having said that, let’s look at three of the best oil and gas stocks to buy now.

Devon Energy (DVN)

Devon Energy (NYSE:DVN) is a compelling stock for investors looking for a balanced return combining dividend yield and capital appreciation. With an impressive 8.5% dividend yield, DVN rewards shareholders with a reliable income stream and healthy capital appreciation.

Indeed, DVN’s share price has surged over 20% over the past year, offering bargain hunters the chance to capitalize on an attractive entry point.

Devon Energy’s success in 2022 was heralded by a boom in the price of crude, allowing it to achieve a record-breaking $2.1 billion of free cash flow for the year.

This allowed the company to make sizable investments, including reducing its outstanding shares by 4% through stock buybacks. Moreover, Devon has given no indications that its reliable dividend is in danger. In fact, the firm has enough resources to effectively shield it against potential storms ahead for its growing business.

ExxonMobil (XOM)

With production increasing more than 30% in Guyana and the Permian Basin throughout 2022, it’s no surprise that ExxonMobil (NYSE:XOM) achieved strong bottom-line growth.

As a result, its adjusted earnings for the full year jumped an impressive 161.3%, hitting $14.06 per share and exceeding analysts’ expectations of $13.94 per share. The company also enjoyed robust 44.8% growth in full-year revenues, coming in at $413.7 billion compared to the consensus estimate of $427.9 billion.

Exxon Mobil stock could benefit from multiple sources this year. Economic forecasts suggest that a tight supply of crude oil could help counteract decreased demand, which may stop the price of oil from dropping and ultimately provide a stable platform for the company’s earnings.

Additionally, the company is taking innovative steps to reduce costs and move into renewable energy, giving it an added lift. This is in addition to beneficial return-of-capital initiatives such as regular share buybacks and its generous 3.25% dividend yield, with 20 years of payout expansion.

Chevron (CVX)

Chevron (NYSE:CVX) has certainly seen its fair share of success in the past year, largely due to the increase in global crude oil prices.

The energy giant’s market capitalization has grown substantially to over $350 billion while posting record profits virtually every quarter last year.

It recently released its full-year operating results, where its adjusted earnings came in at $18.8 per share, more than double the $8.13 it generated last year. Additionally, full-year sales came in at an impressive $246.3 billion, up substantially from its sales of $162.5 million a year ago.

With record cash flows and earnings, it increased its investments by more than 75% compared to 2021. Also, its one-year dividend growth rate is at a stellar 7%, roughly 38% higher than its 5-year average. XOM remains in a spectacular position to continue growing its top and bottom lines while rewarding its shareholders.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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“The AI Revolution represents one of those once-in-a-lifetime investment opportunities where 1,000% and even 10,000% returns are entirely possible.

With opportunities that big, we shouldn’t settle for 100% winners. We should think bigger.”

One of the best things about AI is how broad it is. It is truly the new frontier of the tech market, spanning from desktop software to electric vehicles (EVs). But right now, many companies seem to be focused on creating the new, improved ChatGPT or producing something similar. Let’s take a closer look at the most promising AI stocks, companies that are poised to change the market even more as they bring new innovations to the mainstream. Some of the biggest names in the tech sector are hard at work but that doesn’t mean we shouldn’t be watching their much smaller peers.

Promising AI Stocks: Alphabet (GOOG, GOOGL)

This titan of the tech sector has wasted no time creating its own answer to ChatGPT. When the bot first began making headlines, experts speculated that it posed a significant threat to Google. But Alphabet (NASDAQ,GOOG, NASDAQ:GOOGL) didn’t waste time worrying, It set to work creating its own version of the bot and seems to be making excellent progress. Yesterday, the company announced plans to start rolling out “Bard AI,” its answer to ChatGPT, within the coming weeks. This new bot is powered by Google’s own Language Model for Dialogue Applications (LaMDA). According to a blog post from the company:

“Bard seeks to combine the breadth of the world’s knowledge with the power, intelligence and creativity of our large language models. It draws on information from the web to provide fresh, high-quality responses.”

Bard AI isn’t the only reason investing should count Alphabet among promising AI stocks, though. As InvestorPlace contributor Chris MacDonald reports, the company is in an excellent position to benefit from almost every new tech market trend, from the rise of quantum computing to the autonomous vehicle revolution. It’s also worth noting that the company has a clear advantage over smaller competitors due to its vast data stores. Now it will be in an even better position due to its ability to extract relevant consumer behavior data through AI applications.

Baidu (BIDU)

Like Alphabet, Baidu (NASDAQ:BIDU) is focused on creating a bot to rival ChatGPT and it is also making steady progress. BIDU stock has been rising all day as momentum builds for its “Ernie Bot.” According to the company, this name is an acronym for Enhanced Representation through Knowledge Integration and it has been described as a large language model first introduced in 2019. Baidu claims that Ernie manages to integrate extensive knowledge with significant data, “resulting in exceptional understanding and generation capabilities.” Internal testing is scheduled to start in March 2023.

Investors shouldn’t underestimate Baidu’s powerful reach. The company controls more than 75% of China’s search market, very similar to Google’s power in the U.S. Not only has its cloud business been growing but Baidu is also making progress on its autonomous driving component. In late November 2022, it reported plans to construct “the world’s largest autonomous ride-hailing service area in 2023.” According to a statement released by the company, Baidu plans to begin work on this project in 2023. Doing so would help expand its robotaxi business significantly, helping it secure an even greater share of a booming market.

Promising AI Stocks: Stem (STEM)

This company doesn’t typically receive as much attention when investors look for opportunities in tech. But Stem (NYSE:STEM) may be an undiscovered gem among promising AI stocks as well as renewable energy plays. It has successfully carved out an impressive market niche by applying AI solutions to the growing field of clean energy management. Its platform, Athene AI “integrates assets across the clean energy ecosystem, including solar, storage, and EV charging management.” And recently, Stem took this innovative technology a step further when it announced a joint eMobility offering with ChargePoint Holdings (NYSE:CHPT). According to a statement released by the company:

“The offering is expected to integrate Athena^®, Stem’s clean energy platform, on-site energy storage, and ChargePoint’s Express Platform to help drive cost savings and maximize value now and over the lifetime of the assets.”

If successfully executed, the offering could yield significant results for both companies. It combines two fast-growing areas of tech, both of which boast high investor interest that isn’t likely to slow down. Additionally, Wall Street seems to like STEM stock. In January 2023, it received a bullish price target and upgrade from Morgan Stanley. And according to data from TipRanks, analysts from UBS and Goldman Sachs also maintain “buy” ratings. Already a leader in the clean energy space, Stem is poised to join the ranks of breakout AI stocks of 2023.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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Predominantly, most Americans will look to the president for guidance on the consumer economy. With the combination of historically high inflation subsequently meeting rising interest rates, consumer sentiment predictably fell into the dumps. Without cogent guidance on where the economy might be heading, many families sit in limbo regarding significant life decisions.

Still, it’s the long-term implications behind the messaging and not the State of the Union address itself that matters. CNN Business recently stated that stocks “saw gains three out of four times after former President Donald Trump addressed Congress, but overall it’s a fairly mixed bag.”

“The S&P 500 fell by a median of 0.5% the day after President Barack Obama’s SOTU addresses, and gained a median 0.7% after former President George W. Bush’s speeches, according to Bespoke Investment Group.”

Either way, President Biden can either soothe concerns or ratchet up anxieties. Below are four things investors should watch during the State of the Union address.

What’s Going on With the Economy?

Easily one of the most difficult challenges for President Biden to navigate centers on the economy. Further, mixed messaging won’t help the leader of the free world. During the December Federal Open Market Committee (FOMC) meeting, Federal Reserve chair Jerome Powell stated, “I don’t think anyone knows whether we’re going to have a recession or not.”

However, on a recent appearance on Good Morning America, Treasury Secretary Janet Yellen declared, “You don’t have a recession when you have 500,000 jobs and the lowest unemployment rate in 50 years.”

So, recession or no recession? That is the question. Investors will be looking for Biden to provide a clear update on the status of the American economy overall.

State of the Union Likely to Discuss the Debt Ceiling

As Barron’s noted earlier this month, after the U.S. reached the statutory debt limit of $31.381 trillion, the Treasury Department underwent “extraordinary measures” to prevent the federal government from defaulting on its obligations. Now, all eyes are fixated on Congress. Unless it agrees to raise the debt limit, the global economy may fall into disarray.

Complicating matters, of course, is that Republicans now control the House, forcing greater cooperation among policymakers. Bipartisanship will be no easy task. Recall that it took current House Speaker Kevin McCarthy 15 votes and extensive negotiations to secure the gavel. If Republicans can’t agree among themselves, cooperation on major issues with Democrats seems like an uphill battle.

Therefore, the State of the Union will be critical in assuaging anxieties related to national debt.

Biden Tax Proposal Could Secure Sentiment

According to MarketWatch, Biden will call for quadrupling the tax on corporate stock buybacks. Under the Inflation Reduction Act, the bill imposes a 1% tax on buybacks. According to political insiders, the new tax proposal will almost certainly be dead on arrival in the Republican-controlled House. Still, Biden can leverage the State of the Union address to bolster support among voters.

In particular, the White House became incensed with Chevron (NYSE:CVX), which the president implored to boost production amid soaring gas prices. Recently, the oil giant announced that it will repurchase $75 billion in shares. Naturally, Biden can frame this talking point as a rich-versus-everyone-else narrative. This might go a long way, as Americans are still hurting from last year’s inflationary surge.

State of the Union: About That Balloon…

As if the Biden administration needed any more drama ahead of the State of the Union address, a U.S. fighter jet brought down a suspected Chinese spy balloon on Saturday. Politically, the issue caused much debate between Republicans and Democrats. And it resulted in Secretary of State Antony Blinken calling off his planned visit to Beijing.

President Biden may need to discuss this issue to put a positive framing on the matter. However, defense stocks may start rising in anticipation of further frayed tensions depending on his messaging.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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It’s been a strange couple of weeks for Bed Bath & Beyond and other meme stocks. As noted earlier this week, the retailer is in serious trouble. The company is looking at ways to restructure its business. It’s been laying off staff and closing stores as both the top- and bottom-lines remain under pressure. Worse yet, the idea of bankruptcy has been thrown around.

Despite these issues, investors have been piling back into BBBY stock and other meme stocks. They’ve also been buying other distressed stocks like Carvana (NYSE:CVNA) and nibbling at previous short-squeeze favorites like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC).

At one point, BBBY stock spiked more than 360% from the Jan. 6 low to the Jan. 12 high. Shares ran hard again a few weeks later, climbing 235% from the Jan. 26 low to the Feb. 6 high. Volatility has been running rampant here, but so too has speculation, as almost 50% of the stock is sold short according to Fintel.

Capital Raise for BBBY Stock

It was previously reported by the Wall Street Journal that the company could look at “raising capital in the debt and equity markets.” Well, it appears the retailer will do just that.

The latest offering will allow Bed Bath & Beyond to receive $225 million right off the bat and will include an additional $800 million in the future. On top of that, the retailer secured a $100 million loan from one of its lenders, Sixth Street Partners.

The proceeds will be used to pay back a loan Bed Bath & Beyond defaulted on last month — owed to JPMorgan (NYSE:JPM) — as well as the $25 million interest payment it missed on Feb. 1.

As you can tell, clearly the company is still struggling. Neil Saunders, managing director at GlobalData, had this to say about Bed Bath & Beyond: “In our view, this is a last roll of the dice from a company that is desperate to raise cash to provide some financial headroom to pay down debts and keep operations going.”

Even if the company can pull this off, the deal is going to be a weight on BBBY stock. Dilution and/or increased debt are not positive factors for a stock price. Then you throw in the company’s fundamental struggles, and it becomes even more concerning.

Unless investors specialize in distressed assets, it may be best to leave Bed Bath & Beyond alone. That said, the speculative nature of BBBY stock is sure to bring out many investors and traders.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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“What distinguishes ERNIE from other language models is its integration of extensive knowledge with massive data, resulting in exceptional understanding and generation capabilities,” explained Baidu. “It has since evolved into a series of advanced big models that are capable of handling a wide range of tasks, such as language understanding, language generation, and text-to-image generation.”

Bloomberg reports that Baidu has spent billions of dollars over the past few years on AI development. The company eventually plans on incorporating Ernie into its search platform. What this means in terms of revenue translation is still up for debate, according to Union Bancaire Privee Managing Director Vey-Sern Ling.

More details on Ernie will likely be revealed when Baidu reports its fourth-quarter earnings on Feb. 22. Analysts are forecasting revenue of $4.8 billion, up 4.5% year-over-year, and earnings per share (EPS) of $2.11.

5 Investors Betting Big on BIDU Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, a total of 493 13F filers disclosed ownership of BIDU, a decline of 57 filers from the previous quarter. Furthermore, Yahoo Finance reports that institutional shareholders own 31.32% of the float, while insiders own 1.36% of all shares outstanding. Meanwhile, the institutional put/call ratio sits at 0.89, up from 0.8. That’s equivalent to 7.92 million puts and 8.95 million calls, implying a slightly bullish options stance.

With that in mind, let’s take a look at the largest shareholders of Baidu:

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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The latest company to surge after announcing job cuts is Zoom (NASDAQ:ZM). Shares of ZM stock are up roughly 7% today after the company announced layoffs. About 1,300 employees are expected to be let go, or around 15% of Zoom’s workforce. That will lead to marked reductions in costs for Zoom moving forward.

Like other competitors who have announced significant layoffs in recent months, the rationale for these job cuts are roughly the same. Essentially, Zoom scaled up too quickly following the pandemic. This led to a cost-heavy business model that has weighed on its financials. Thus, seeing other peers trim headcounts while maintaining profitability has given companies like Zoom the ability to become more productive with existing resources. Or, so the belief goes right now.

Notably, Zoom’s founder and CEO Eric Yuan is also taking the company’s previous over-hiring mistakes seriously. He has cut his pay by 98% and eliminated his bonus for the year, clearly empathizing with the employees he was forced to lay off.

Let’s dive more into what investors may want to make of this news today.

Zoom Layoffs Result in Surging Stock Price

Personally, I think it’s important to touch on the fact that Zoom’s CEO and founder is taking full responsibility for cutting jobs. Instead of putting the salary savings in his own pocket, he’s signaling to existing employees that it truly was a painful decision. Indeed, this sort of action isn’t common in corporate America, although it should be.

The CEO’s pay cut aside, this significant layoff should considerably improve Zoom’s financial position. The video conferencing company is profitable, but investors will likely want to see sustainable earnings growth over time. By ensuring its productivity metrics are in order, Zoom appears to be setting up for a prolonged period of profitable growth. That’s something long-term value investors are going to like.

We’re no longer talking about the pandemic. Any sort of tailwinds provided by the pandemic are now gone. Thus, Zoom is making it clear that looking forward to the future is the only way to go. This strategy to makes sense, particularly when the company’s CEO is taking the medicine as much as his employees.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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Okay, so the market is clearly having some difficulty placing a value on the communication taking place today. Indeed, Powell’s high-profile speech at the Economic Club of Washington spurred some intriguing price action in the markets today. Much of this volatility appears to relate to the inability to fully understand how far and how long the Fed will hold its aggressive monetary policy stance.

Let’s dive into what Powell said, and why the market is having a difficult time pricing in these comments today.

Why Are Stocks Up Today?

Let’s start with why stocks rallied in the first place today. Federal Reserve Chairman Jerome Powell appears to be ready to break out the champagne when it comes to bringing inflation down. Thus far, his view is that a “disinflationary process” is underway. In his words, “the process of getting inflation down, has begun and its begun in the goods sector,” though there is still “a long way to go. These are the very early stages of disinflation.”

Still, that’s great news for investors pricing in a pause-and-pivot scenario.

That said, Powell did acknowledge that strong labor reports or higher-than-expected inflation readings could change the minds of central bankers. Thus, Powell’s comment that “it may well be the case that we have do more and raise rates more than is priced in” appears to have spooked the market.

On balance, it appears these remarks are being digested favorably by the markets. We’ll see which color the markets decide to end the day in. That said, one thing is for sure — more volatility is likely to come this week, as additional Fed speakers hit the podium.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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And the U.S. government has even taken action, forging an agreement with the European Union to work together to maximize AI’s efficacy. National Security Adviser Jake Sullivan said…

This collaborative effort will drive responsible advancements in AI to address major global challenges with a joint development model and integrated research to deliver benefits to our societies through five key areas of focus: Extreme Weather and Climate Forecasting, Emergency Response Management, Health and Medicine Improvements, Electric Grid Optimization, and Agriculture Optimization.

Companies are rushing to procure a piece of the fast-growing market as AI stocks skyrocket. We’ll get to the implications on your portfolio in a minute, but first, let’s break down AI – what it is, where the phenomenon is going, and why a few choice stocks deserve your attention.

Artificial Intelligence Has Real-Time Applications

AI may seem pretty abstract, like a faraway technological breakthrough that invokes images of uber-intelligent robots attempting to overthrow the human race.

In actuality, you’re probably already using AI daily. Here are a few ways AI has already permeated our daily lives…

• Smartphone facial recognition…
• Virtual assistants like Alexa and Google Assistant…
• GPS turn-by-turn directions…
• And self-driving cars, to name a few.

And you know that creepy feeling you get when you scroll through your social media feed and land on an ad for a product you just Googled or inquired about on Alexa? That’s an AI platform as well – on Facebook, it’s called Facebook Pixel.

It’s easy to be leery and downright suspicious of AI platforms and software… it hasn’t even really reached its full potential yet. AI makes a lot of people uneasy – in fact, a Pew Research study found that AI concerned 37% of respondents, who believed it would impact privacy, job availability, and its potential to “surpass human skills.” But part of that joint initiative with the EU aims to address security and privacy issues by fighting AI… with AI.

There are plenty of ways in which AI actually makes us safer… on our devices, the roads, and in our homes – even our health can be enhanced with AI technology.

$100K Accelerator: Urgent Video Released 

Luke Lango just released an important video leading up to his event on 2/8. See why this algorithm is a necessity in today’s economy. Click here for more.

Monetizing Emerging Technology

While last week’s big tech earnings reports reflected much speculation on how companies plan to monetize AI, don’t put all your eggs in that basket just yet.

The headlines about Microsoft Corp. (MSFT) using AI (ChatGPT) in its search engine, Bing, were difficult to ignore, for example.

ChatGPT is an AI platform that can do just about anything creative when given a prompt – give advice, write research papers, debug code, create content, and so much more. But for all that hype, Google will catch up to Microsoft – and soon. So this is a feature consumers should expect to have access to, regardless of their browser’s default search tool.

However, that is not to say that AI isn’t a big deal for the tech sector in the intermediate and long term. Take Microsoft. In the first quarter, MSFT reported earnings with its cloud computing platform Azure’s growth slowing to a “measly” 35%, which was slower than the 50% growth during the first quarter of last year. Traders reacted and sold MSFT shares, which have since rebounded modestly.

In our view, AI makes Microsoft’s cloud services (including Azure) more attractive for businesses. Machine learning, app development, large language models, and other AI features will create more revenue and profit opportunities this year.

Small and medium-sized businesses that needed access to enterprise-level tech resources drove the growth of cloud computing services, and the same will be true of AI integration. Traders that are pricing slower cloud services growth based on MSFT’s first-quarter performance have not accounted for the opportunity for AI to boost the sales and profitability of Azure. In our view, that makes MSFT undervalued.

Although we used Microsoft as our example, this argument is true for the AI leaders across the tech sector.

Alphabet Inc. (GOOGL) is investing in internal AI projects and startups like Anthropic, a rival to ChatGPT. Salesforce Inc. (CRM) and NVIDIA Corp. (NVDA) also look good as leaders in the AI space. However, any big investing theme will also have some pitfalls.

Investors should beware of companies in distress that start to get a lot of press (and spiking share prices) on speculation that AI is a short-term game changer.

For example, Buzzfeed Inc. (BZFD) quadrupled in price last month as its management said they are integrating AI into its content generation process. BZFD’s share price has been cut in half again, putting most of those buyers in a losing position now.

That part of the market feels a lot like the companies in 2000-2001 that started changing their names to include “crypto” or “blockchain,” even though they had no proven experience in monetizing that market. To profit safely in 2023, make sure you buy AI value, not AI hype.

Sincerely,

John and Wade 

P.S. When looking to invest in AI, we should seek out companies that are innovatively applying AI to their respective industries and creating a new paradigm in the way humans do things. That’s why we think the best AI investment opportunity right now may be in this surprising sector of the industry… and it’s poised to see a huge boom in the future. Click here to learn more.

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A recent report from McKinsey & Company revealed a staggering total addressable market size of $1.5 trillion and $2 trillion for the cybersecurity industry. This opportunity is likely to lead to massive returns over the long term. Moreover, with the stock market sell-off last year, most of the top cybersecurity stocks are trading at a substantial discount.

Fortinet (FTNT)

Fortinet (NASDAQ:FTNT) is one of the best cybersecurity stocks, and one of the most undervalued. It boasts a robust reputation for providing reliable and secure solutions with its comprehensive portfolio of products and services. Its portfolio consists of everything from firewalls to endpoint security to network security solutions, has been widely embraced by businesses across a wide range of industries.

Thanks to its diversified business model and experienced management, the company boasts one of the top margin profiles in the sector, with double-digit sales and earnings expansion over the past several years. Hence, it is set to continue its impressive sales growth streak and is confidently projecting a 22% three-year compound annual growth rate (CAGR) by 2025.

Furthermore, the company reported that it had returned over $2 billion to its shareholders through share repurchases year-to-date. Moreover, recent trends have increased the firm’s clout and competitiveness within the industry, making now the perfect time for new investors to take advantage of this incredible investment opportunity.

CrowdStrike (CRWD)

Next up as one of the best cybersecurity stocks to buy is CrowdStrike (NASDAQ:CRWD). With its innovative cloud-based security platform and advanced AI-powered technology, the company can quickly detect and respond to threats, keeping data secure and preventing malicious actors from penetrating networks. Moreover, it is one of the most consistent businesses in its niche, growing its top line by over 90% over a 5-year period.

CrowdStrike had an outstanding third quarter of 2022. CEO George Kurtz commented on its staggering results, with annual recurring revenue (ARR) increasing by 54% year-over-year. Kurtz was impressed by the record number of customers providing at least $1 million to expand its ARR, further positioning the firm for incredible numbers ahead.

Palo Alto (PANW)

Palo Alto  (NASDAQ:PANW) is positioning itself ahead of the competition, ensuring it remains an innovative leader in the sector. As a top tech stock with high profitability, Palo Alto’s dedication to R&D is paying off as it paves the way for data security to position itself at a leader in the space. Palo Alto has claimed its rightful spot as the top global cyber security vendor, according to analytics research firm Canalys. This was largely made possible by their extensive network of clients who purchase and utilize their products. Furthermore, Palo Alto experienced an impressive 24.9% growth year-over-year while increasing its market share to 8.4% during the third quarter. It is also worth noting that over 80% of their total billings are from its subscription base, signifying customers’ trust in Palo Alto’s cyber security offerings.

SentinelOne (S)

SentinelOne (NYSE:S) is a cybersecurity company that provides innovative technologies to protect its customers from the ever-changing nature of cyber threats. Its Singularity platform is a game-changer, using artificial intelligence for enhanced security and faster response times. This platform has become indispensable for many companies in risk management and data protection in today’s digital world.

Investors responded positively to news of the company’s third-quarter earnings, which exceeded expectations. A 106% surge in revenue resulted in an adjusted EPS of 16 cents, bringing in a much-needed windfall of profits.

This was made possible by a successful adoption of its cloud offerings, with revenue continuing to grow into the fourth quarter, where it could exceed the $125 million mark, 4% higher than expectations. Expected full-year revenue for 2022 is projected to come in at between $420 and $421 million compared to anticipated figures of $416 million; looking further ahead, the company stands primed for ongoing growth as demand for its digital products continues to increase.

Global X Cybersecurity ETF (BUG)

Investing in the cybersecurity sector can be daunting for many. However, the Global X Cybersecurity ETF (NASDAQ:BUG) offers a great option for those wanting to dip their toes in this rapidly growing industry. The fund provides a convenient, efficient, and cost-effective way for individual investors to access the broad market of cybersecurity stocks. Undoubtedly, it will prove an invaluable tool as investors navigate an ever-evolving technology landscape.

The Global X Cybersecurity ETF provides investors with a reliable source of exposure to 27 cybersecurity stocks, making it a highly concentrated fund. Furthermore, software companies represent 57% of the fund’s top holdings, which tend to be more valuable than traditional hardware companies. Moreover, with an expense ratio of just 0.50%, investors gain maximum value from this powerful ETF.

Palantir (PLTR)

Palantir (NYSE:PLTR) has carved out a unique position among the top cybersecurity stocks. For one, the company’s nearly limitless growth potential in the private sector speaks volumes. Moreover, Palantir also enjoys a secure and reliable revenue stream from government contracts, a boon for any enterprise invested in long-term growth. Also, it excelled in its solutions for private clients, generating triple-digit growth in the segment in its most recent quarter.

PLTR’s long-term partnership with the U.S. government and its ability to continuously produce stable revenue are reasons why many investors remain confident in the company’s future. Despite current short-term issues, several analysts still believe that Palantir will be able to generate strong gains in terms of revenue and earnings in the future. Additionally, the stock is down substantially and trading at a massive discount based on its tremendous outlook ahead.

Zscaler (ZS)

Zscaler (NASDAQ:ZS) is the clear front-runner in the cybersecurity realm, boasting impressive analytics and security services tailored specifically to business needs. Its products keep valuable data and resources safe by offering comprehensive protection. Thanks to its capabilities, organizations can monitor traffic in real-time while responding quickly to unexpected threats. The company also benefits from a surge in demand as organizations increasingly rely on remote work during the pandemic.

Zscaler has seen outstanding success in recent years, with its revenue growth nothing short of impressive. In 2022, annual revenue reached a staggering $1.09 billion, a 62% increase from the year before. Recent quarterly results have shown that its growth train is unlikely to stop anytime soon. As we advance, the company has put more effort into marketing its cybersecurity solutions specifically to smaller enterprises by expanding its sales team; this move allows them to secure better margins and demonstrate its dedication towards providing valuable services through service providers.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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Fundamentally, the FET network distinguishes itself from rival platforms with a truly decentralized and permissionless ecosystem. While advancements in blockchain technology focus on the core metrics of speed, scalability and security, they share a common motif: human involvement. That is, prior distributed decentralized architectures enabled human actors to secure desired agreements quicker and more conveniently.

However, Fetch.ai asks the fundamental question: What if human interaction can be whittled down to the bare minimum? That’s really the heart of the AI-driven FET network. Utilizing what the project refers to as autonomous economic agents (AEAs), these entities operate as rational economic actors, directly negotiating the proposed terms of contractual agreements. In this manner, the AEAs eliminate the need for intermediary agents.

What’s more, the Fetch.ai network commands relevancies across a range of applications and industries. This includes smart homes and cities, decentralized finance, supply chain, commodity exchange, autonomous AI-based travel agents, traffic congestion and train systems.

Heightened Interest Sparks Inquiries About Fetch.ai Price Predictions

While the concept of AEAs or intelligent digital agents working on behalf of a human user’s real economic interests may seem like a plot device in a science-fiction film, the FET protocol enjoys genuine case studies, thus undergirding upside Fetch.ai price predictions.

Perhaps most notably, Bosch Research entered a collaboration with Fetch.ai in 2019 and deployed a node on the FET test network in 2021. Specifically, Bosch sought to expand research regarding machine learning protocols to identify equipment failures. Therefore, the FET blockchain doesn’t just involve commercial relationships which require financial incentives for kinesis. Rather, the underlying AEAs can be deployed to foster solutions where no apparent economic incentivization structures exist.

Given the flexibility and astounding acumen of the FET network, interest in Fetch.ai price predictions skyrocketed. As of this writing, the underlying token trades hands for roughly 54 cents.

According to Coincodex, the five-day prediction for FET stands at 74.33 cents. However, over the next month, analysts anticipate a slowing of sentiment, reducing the price to 59.16 cents.

Per Cryptonewsz, FET already beat its maximum 2023 price target of 55 cents. Earlier today, FET reached 57 cents. However, the resource states that by 2025, the average price of FET could hit 63 cents.

Interestingly, not all Fetch.ai price predictions rate optimistically. For instance, AMBCrypto anticipates that by the end of this year, FET will reach a maximum of 46 cents.

Why It Matters

While the total market cap of all cryptos lost about 46% of value in the trailing year, FET’s extraordinary performance moved well against the grain. During the same period, FET is up roughly 39%. Therefore, interest in Fetch.ai price predictions will likely remain elevated for the foreseeable future.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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The post Fetch.ai Price Predictions: What’s Next for the FET Crypto? appeared first on InvestorPlace.

So said legendary UCLA basketball coach John Wooden, who won 10 national championships in just 12 years – a record that hasn’t been touched since and likely never will be again. 

I remember hearing that quote as an 8-year-old at a summer basketball camp. 

It inspired me then. And it inspires me now – so much so that the quote, in many senses, has been my guide to investing. 

As a society, we must adapt to move forward. 

If we want to be successful investors, then we should identify the adaptations society is making to move forward and invest in them. 

Invest in change. 

In fact, one of the greatest investment opportunities we’re presented with today involves such change on a massive scale.

And the 2022 global energy crisis has kicked it into overdrive. 

The Hypergrowth Clean Energy Transition

It’s been nearly a year since Russia launched its invasion of Ukraine. Over those 12 months, the world suffered through an enormous energy crisis. And to move beyond this crisis, the world has been forced to adapt – to reimagine its global energy ecosystem and restructure supply chains to produce more reliable energy. 

Governments and corporations across the world have been faced with two decisions. Either pump more fossil fuels, or accelerate the development of locally sourced alternative energies. 

The overwhelming majority of governments and corporations chose the latter: Accelerate the development and deployment of solar, wind, hydrogen, electric vehicles, energy storage, and more.

Last year, the U.S. passed legislation to accelerate the transition to renewable energies. So did the European Union, Japan, China, Australia, and pretty much every major economic powerhouse in the world. 

In total, that poured a record $1.4 trillion into the clean energy sector – a significant increase from 2021. 

In order to move forward, society must adapt. 

In 2022, society adapted by accelerating the global transition to clean energies. 

Even oil companies agree on this regard. 

In its 2023 energy outlook report released last week, Oil titan BP (BP) – a $100 billion fossil fuel powerhouse that is among the largest and most powerful energy firms in the world – said:

“The increased importance placed on energy security as a result of the Russia-Ukraine war leads over time to a shift away from imported fossil fuels towards locally produced non-fossil fuels, accelerating the energy transition.”

The company increased its long-term demand forecasts for renewable energies by about 5% – and cut its long-term demand forecasts for fossil fuels by about 5% – from its 2022 outlook. 

Powering Up Your Portfolio With Clean Energy Stocks

The Clean Energy Revolution has accelerated. Even the oil titans agree. This is the adaptation the world has chosen to move forward from the 2022 global energy crisis. 

Successful investors invest in generational adaptations. That’s why they’ve been investing in solar, wind, and EV stocks. 

Solar stocks, for example, are on the cusp of a major breakout right now. 

Wind stocks are actually already in their own big breakout, with plenty more upside left. 

And those fast-and-furious EV stocks are soaring right now, too. EV leaders like Tesla (TSLA) and Lucid (LCID) are both up more than 50% in 2023 alone – and we’re just a month into the year. 

The smart money is moving into clean energy stocks. 

If you haven’t already moved with them, you need to do so right now. 

Luckily, we have the perfect stock for you – but only if you’re willing to take on some risk. 

The Final Word

You may have noticed that high-risk stocks are soaring here in early 2023. More than 160 stocks have already risen more than 100% this year. Most are high-risk stocks making a big comeback. 

iBuying disruptor Opendoor (OPEN) and crypto mining firm Marathon Digital (MARA) are both up about 105% in just over a month. Enterprise AI firm C3.ai (AI) is up nearly 150% this year. Vertical farming pioneer AppHarvest (APPH) has soared more than 320%. And analytics startup BigBear.ai (BBAI) has already popped more than 800% in 2023 alone. 

We think 2023 will be the year of the comeback for high-risk stocks. And that’s why we think it is time to start buying them. 

Just look at what they’ve done in just a month! Up 320% on APPH stock? Up 815% on BBAI stock? Imagine what they will do over the next 11 months… 

We’re very excited about the potential rewards here. 

In particular, we’re really excited about one tiny next-gen vehicle stock that we believe has arguably the biggest potential of any in the market right now – not just over the next 12 months, but over the next few years, too. 

Our industry connections tell us that the technology this company is perfecting today is world-class. In fact, it’s so good that we think the biggest company in the world may be interested in getting in on a piece of the action. 

Needless to say, this is one of the most interesting stocks in the market. 

And the timing is perfect to buy. Not only are EV stocks on fire, but small growth stocks are on fire, too. 

Learn how to best capitalize on this boom.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

The post Big Oil Is Hinting at Huge Gains for Clean Energy Investors appeared first on InvestorPlace.

Still, it doesn’t mean that the best biotech stocks to buy are immune from broader economic pressures. As well, with mass layoffs collectively impacting what white-collar workers can spend on their portfolios, investors should exercise careful judgment.

For that, I’ve compiled some of the most compelling ideas in the biotech space. Each of these ideas feature a minimum consensus rating of moderate buy or its equivalent. As well, they’re undervalued relative to trailing earnings. So, if you’re ready, these are the best biotech stocks to buy for Feb. 2023.

Regeneron (REGN)

Regeneron (NASDAQ:REGN) frequently pops up on Gurufocus.com’s radar for compelling and undervalued biotech plays. Headquartered in Westchester County, New York, Regeneron invents, develops, and commercializes life-transforming medicines for people with serious diseases. It’s also a strong performer. In the trailing year, REGN gained over 25% of equity value.

Primarily, retail investors consider Regeneron as one of the best biotech stocks to buy for its value proposition. Currently, the market prices REGN at a forward multiple of 18.79. As a discount to forward earnings, Regeneron ranks better than 66.13% of the competition. As well, the company enjoys excellent sales growth (47.3% over the past three years) and profitability (39.17% net margin).

Not surprisingly, Wall Street analysts peg REGN as a consensus moderate buy. Further, their average price target stands at $834.94, implying upside potential of 6.94%. Finally, hedge funds love REGN, with TipRanks rating sentiment among these institutional investors as very positive. Therefore, REGN is one of the best biotech stocks to buy.

Vertex Pharmaceuticals (VRTX)

Based in Boston, Massachusetts, Vertex Pharmaceuticals (NASDAQ:VRTX) claims it invests in scientific innovation to create transformative medicines for people with serious diseases. Like Regeneron above, Vertex represents a strong performer. In the year so far, VRTX gained almost 7% of equity value. During the trailing year, VRTX soared over 25%.

As well, retail investors appreciate the value proposition that Vertex brings to the table. Presently, the market prices VRTX at a forward multiple of 19.12. As a discount to forward earnings, Vertex ranks better than 64.52% of sector rivals. In addition, the company enjoys a strong sales growth rate (35.3% in the past three years) and profitability (37.62% net margin).

Also, it’s worth noting that Vertex enjoys a stout balance sheet. Specifically, its Altman Z-Score pings at 15.11, reflecting extremely low bankruptcy risk. Finally, Wall Street analysts peg VRTX as a consensus moderate buy. Their average price target stands at $333.73, implying upside potential of 9.47%. Therefore, it makes a compelling case for best biotech stocks to buy this month.

Harmony Biosciences (HRMY)

A relatively lesser-known enterprise, Harmony Biosciences (NASDAQ:HRMY) nevertheless deserves consideration for best biotech stocks to buy. According to its website, the company specializes in developing and delivering new treatments to help people living with rare neurological diseases. As with the top two names, HRMY represents a strong performer in the charts. In the trailing year, shares gained over 30% of equity value.

That said, since the Jan. opener, HRMY slipped more than 6%. However, this stumbling could inspire contrarians to jump onboard. Currently, the market prices HRMY at a trailing multiple of 19.36. As a discount to earnings, Harmony ranks better than 65% of its peers. Also, HRMY trades at 19.4-times operating cash flow. As a discount to the underlying metric, Harmony ranks superior to 62.5% of its peers.

Notably, Harmony enjoys a decently stable balance sheet. In addition, it’s highly profitable with a net margin of 38.84%. Wall Street analysts really dig HRMY, pegging it a consensus strong buy. Also, their average price target stands at $68.25, implying nearly 38% upside potential. Easily, Harmony ranks among the best biotech stocks to buy in February.

Genfit (GNFT)

Stepping toward the higher-risk names among the best biotech stocks to buy, we come to France’s Genfit (NASDAQ:GNFT). A late-stage biopharmaceutical company dedicated to the discovery and development of innovative therapeutic and diagnostic solutions in metabolic and liver-related diseases, Genfit aims to serve considerable unmet medical needs. Despite the clinical risks associated with this subsegment, GNFT is a respectable performer, gaining 13.5% in the trailing year.

Currently, the market prices GNFT at a trailing multiple of 4.68. As a discount to earnings, Genfit ranks better than 89.16% of its peers. Further, GNFT trades at 2.83-times sales, which is very undervalued relative to the industry median. However, Gurufocus.com warns that Genfit may be a possible value trap.

It’s a tough call because its incredible growth rate (nearly 800% in the past three years) won’t last. As such, there might be questions about its profitability metrics. However, H.C. Wainwright analyst Ed Arce is willing to support Genfit, pegging GNFT as a buy. As well, Arce anticipates shares will rise to $8 a pop. That would imply upside potential of over 79%, making GNFT one of the best biotech stocks to buy.

iTeos Therapeutics (ITOS)

A cancer-fighting specialist, iTeos Therapeutics (NASDAQ:ITOS) is pioneering the discovery and development of highly differentiated Immuno-oncology therapeutics for patients. Representing one of the riskier names among the best biotech stocks to buy, prospective investors must be careful. True, ITOS gained nearly 10% since the Jan. opener, a respectable performance. However, in the trailing year, shares collapsed to the tune of about 44%.

Now, despite that obvious challenge, ITOS may still command contrarian interest. Presently, the market prices shares at a trailing multiple of 2.96. Under the context of a running discount against earnings, iTeos ranks better than 93.36% of the competition. Further, the market prices ITOS at 1.71-times sales, comparing favorably to the sector median of 10.61 times.

At the moment, iTeos enjoys a robust balance sheet (with a cash-to-debt ratio of over 167 times) and strong profitability (with net margin of 57.48%). Finally, Wall Street analysts peg ITOS as a consensus moderate buy. Further, their average price target stands at $54, implying 165% upside potential. If it gets there, ITOS would easily represent one of the best biotech stocks to buy.

Selecta Biosciences (SELB)

Another risky but simultaneously compelling name among the best biotech stocks to buy, Selecta Biosciences (NASDAQ:SELB) aims to restore natural immune system balance by re-imagining immunotherapy for autoimmune disease. Ultimately, it hopes to unlock the potential of gene therapy and amplify the efficacy of biologic therapy.

Despite its scientific potential, SELB rates as a volatile investment. In the trailing year, shares slipped nearly 20%. However, since the January opener, SELB gained over 59% of equity value, making it an intriguing prospect for gamblers.

In terms of the financials, the market prices SELB at a trailing multiple of 15.25. Stated as a discount to earnings, Selecta ranks above 70.98% of sector peers. As well, SELB trades at 1.96-times sales, which as a discount ranks better than 88.13% of the industry.

Interestingly, despite the sharp risks involved with Selecta, Wall Street analysts peg SELB as a consensus strong buy. Even better, their average price target of $6.80 implies upside potential of almost 272%.

Chimerix (CMRX)

Perhaps the riskiest name on this list of biotech stocks to buy, Chimerix (NASDAQ:CMRX) belongs to the gamblers. If you want something a bit more reliable, the top names should take priority. However, Chimerix delivers potentially blistering upside potential. Specializing in a new class of cancer therapies, CMRX may skyrocket depending on clinical trial results.

So far, circumstances don’t bode well. In the trailing year, CMRX fell almost 69%, a staggering loss. At the same time, since late September last year, CMRX stabilized. Currently, the market prices shares at a trailing multiple of 1.05. As a discount to earnings, Chimerix ranks better than 97.2% of the competition. Still, as Gurufocus.com warns, CMRX may be a possible value trap.

Admittedly, it’s going to be difficult to hold Chimerix shares, not really knowing where the wind might blow. Still, Wall Street analysts remain confident, pegging CMRX as a consensus moderate buy. Also, their average price target stands at $8, implying upside potential of over 337%. If so, CMRX would easily rank tops among the best biotech stocks to buy this month.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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The post The 7 Best Biotech Stocks to Buy for February 2023 appeared first on InvestorPlace.

Unfortunately, the central bank made a deal with devil. In order to survive the onslaught of the coronavirus pandemic, the Fed injected liquidity into the monetary system. For some time, circumstances appeared somewhat normal. However, as money velocity began accelerating in 2022, inflation similarly skyrocketed. Subsequently, the bankers’ efforts to slow inflation imposed significant pressures on cryptos to watch and other risk-on assets.

Prior to the jobs report, circumstances seemed somewhat favorable for a reversal of hawkish monetary policy. However, that might no longer be the case. Therefore, investors need to be diligent regarding the below cryptos to watch.

Cryptos to Watch: Bitcoin (BTC-USD)

After storming out of the gates for 2023, Bitcoin (BTC-USD) conspicuously suffered a lull in recent sessions. Don’t get me wrong – data from Google Finance reveals that on a year-to-date basis, BTC gained nearly 38% of value. However, it’s also difficult to ignore the impact that the latest jobs report had on Bitcoin and other cryptos. In the trailing five sessions, for instance, BTC dipped almost 3%.

Part of the reason why investors may be skittish about cryptos in general centers on the labor market’s texture. On one hand, you have a robust environment where seemingly anyone that wants a job can get a job. However, the technology sector has absorbed the brunt of the job cuts that are occurring. Unfortunately, this dynamic hurts the broader blockchain ecosystem as fewer people have higher-paying jobs.

At time of writing, Bitcoin sits just underneath the $23,000 level. Interestingly, the $24,000 level acted as strong resistance, both this year and during late summer last year. Ideally, BTC needs to get to the $30K level to inspire confidence among the bulls. Otherwise, the bears could take over, which would be bad news for cryptos.

Cryptos to Watch: Ethereum (ETH-USD)

Another digital asset that got off to a flying start to 2023 is Ethereum (ETH-USD). With it, investors now wait for further clarity. Again, it’s not that ETH performed poorly this year. Quite the contrary, Google Finance reveals that since the Jan. opener, Ethereum gained 36% of market value. However, in the trailing five sessions, ETH slipped about 0.6% at time of writing.

Negative implications associated with the strong jobs report may be to blame. To add onto the narrative, the details showed that the leisure and hospitality sector led the growth in employment opportunities. To put it bluntly, these jobs are not ones where you can call it in. Instead, you’ve got to show up, which actually hurts cryptos.

Think of it this way: workers can’t trade cryptos on the job because, you know, they must work. At the moment, ETH trades a bit above the $1,600 level. However, this point imposed significant resistance last year. Ultimately, for this rally to continue, Ethereum must at minimum regain control of $2,000.

Cryptos to Watch: Tether (USDT-USD)

All other things being equal, stablecoins like Tether (USDT-USD) represent negligible market risk. Pegged to a hard currency (in this case, the U.S. dollar) on a one-to-one ratio, wherever the greenback goes, Tether will follow. While arbitrage opportunities may arise every now and again, for the most part, what you see is what you get.

However, it’s what you don’t see that can become incredibly costly for investors. Allegedly, data from Coinopsy revealed that by late May last year, at least 2,421 cryptos failed. While it’s not an apples-to-apples comparison, global headlines gawked over the implosion of once-revered platforms like FTX. To be clear, I’m not suggesting that Tether will implode anytime soon, if ever. However, it’s also not out of the realm of possibility.

Further, if cryptos fail to rebound from here, investors should be cautious about carrying too much risk in Tether. After all, USDT offers conveniences for traders during bull markets. Under bearish cycles, you might be better off holding Federal Reserve notes.

XRP (XRP-USD)

One of the most unwittingly controversial cryptos due to attracting a lawsuit from the U.S. Securities and Exchange Commission (SEC), Ripple Labs’ creation XRP (XRP-USD) presents both an intriguing and risky narrative. On one hand, if the lawsuit ends up favoring Ripple, XRP would essentially gain legal clarity. But on the flipside, the legal drama could also sink the digital asset.

Interestingly, though, CNBC noted that Ripple CEO Brad Garlinghouse believes that a ruling will come down this year, perhaps during the first half. Obviously, investors will be hoping for a positive legal result. However, any decision one way or the other will at least put the longstanding drama behind the enterprise. That’s got to be worth something.

Encouragingly, XRP printed a series of rising lows since the summer of last year. However, for the Ripple creation to really make waves, it must establish at minimum a baseline of support at the 50-cent level.

Cardano (ADA-USD)

Although Cardano (ADA-USD) is one of the most popular alternative cryptos, it also ranks among the most frustrating. Despite a strong showing in 2023, ADA gave up nearly 68% of market value during the trailing year. That’s incredibly worrying given that risk-on assets face a problematic outlook if the Fed continues to raise interest rates.

To be fair, ADA blasted much higher than its 50-day moving average, which currently sits at 32 cents. However, ADA itself trades hands for about 39 cents a pop. This aligns with its 200 DMA, meaning that this longer-term moving average represents upside resistance. Glaringly, many other cryptos currently trade above their 200 DMAs.

Obviously, for the bulls to have any chance of sustaining the current rally, ADA must move past the 39-cent level. At minimum, Cardano must establish a baseline at 45 cents. From there, it can start climbing the wall back above the psychologically critical $1 milestone.

Polkadot (DOT-USD)

Initially billed as a potential Ethereum killer, Polkadot (DOT-USD) now aims to avoid getting killed. In the trailing one-year period, DOT suffered a loss of around 70%, one of the more severe struggles within cryptos. Fundamentally, Polkadot’s trajectory may largely depend on what future Fed policy looks like. Unfortunately, the environment doesn’t look particularly hospitable.

Politically and ideologically, objective number one for the central bank is to control inflation. Moreover, as prior comments by policymakers indicate, the Fed can’t afford to play nice with rising prices. Otherwise, a premature return to an accommodative policy could see the economy suffer the same problems once again.

Presently, the market prices Polkadot above both its 50 and 200 DMAs. However, for the latter, the positive delta is minute. Therefore, DOT needs to start moving higher and quickly. Preferably, DOT needs to get to the $10 level, which carries significant psychological importance. As well, the $10 level previously represented a demarcation between bullish and bearish cycles.

Avalanche (AVAX-USD)

Another rival to Ethereum, Avalanche (AVAX-USD) seeks to unseat the ETH network as the preferred architecture for smart contracts. Per Coinmarketcap.com, “[i]t aims to do so by having a higher transaction output of up to 6,500 transactions per second while not compromising scalability.” Enticingly, Avalanche has been one of the top performers among cryptos this year, gaining 84% since the January opener.

Moreover, AVAX currently trades hands above both its 50 and 200 DMAs – and by a considerable margin. At time of writing, the market prices Avalanche at $20.07 or over 15% above its 200 DMA. Also, it’s 30% above its 50 DMA, reflecting strong momentum recently. Still, it’s difficult to ignore the risk. In the trailing year, AVAX fell about 76%, a worrying figure.

In the immediate term, AVAX bulls will be looking to hold the $20 line. This level represented upside resistance last year so creating a baseline at this point would spark some confidence. At minimum, though, Avalanche will need to conquer $30, which is easier said than done.

On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT, XRP and ADA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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The post 7 Cryptos to Watch as a Strong Jobs Report Impacts Sentiment appeared first on InvestorPlace.

Vinco Ventures (NASDAQ:BBIG) stock is down by about 10% today following yesterday’s announcement that VVIP Ventures, a joint venture operated by Vinco, would acquire the U.S. and U.K. editions of the National Enquirer, the National Examiner and Globe from a360 Media. The transaction will be an all-cash deal, while other financial aspects of the acquisition were not immediately disclosed. In addition, VVIP will also be provided a 90-day period to discuss other potential business ventures with a360.

Vinco notes that the acquisitions will be its first step in becoming a global celebrity content provider. After the close of the acquisitions, VVIP will enter into a “multi-year service agreement for publishing, financial and distribution services with a360 Media.”

Meanwhile, Hudson Bay just disclosed a major stake in BBIG stock. Let’s get into the details.

BBIG Stock: Hudson Bay Doubles Down

According to an amended Schedule 13G filing received by the U.S. Securities and Exchange Commission (SEC) yesterday, Hudson Bay Capital Management owns a total of 21.99 million shares as of Dec. 31. That’s equivalent to an 8.69% ownership stake. The firm previously filed a Schedule 13G on Feb. 2 showing ownership of 15.13 million shares as of Dec. 31, so it appears that it initially made an error.

Hudson Bay reported owning 2.44 million shares as of the third quarter as well. That means it substantially increased its stake during Q4. Furthermore, it appears that Hudson’s position will soon increase again.

Vinco released a Form 8-K on Feb. 5, providing details on an exchange agreement, a securities purchase agreement and more. The exchange agreement, made with an “accredited investor,” seeks to exchange $250,000 of convertible notes that were issued on July 22, 2021 for a total of 26 million shares of common stock. On the “initial closing date,” $105,000 worth of notes will be exchanged into 10.8 million shares of common stock. On the first day of trading after the company increases its authorized shares, $145,000 worth of notes will be exchanged into 15.2 million shares of common stock.

Vinco issued Hudson Bay $120 million worth of convertible notes in exchange for $100 million and five-year warrants on July 22, 2022. The notes carried a maturation date of July 22, 2022.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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The post Hudson Bay Acquired 20 Million Shares of Vinco Ventures (BBIG) Stock appeared first on InvestorPlace.

The market’s nature is to follow a cycle of euphoria, decline, and consolidation. Underrated stocks would typically be names that have not seen euphoria. However, these stocks are often out of favor due to industry or company-specific headwinds. Their valuations are attractive, and positive business developments reinforce a bullish view from value investors.

I also believe that there are a number of underrated stocks with the potential to deliver at least 100% returns over the next 12 months. These stocks are worth holding even beyond this period, as they represent attractive businesses with long-term cash flow growth potential.

Let’s discuss three underrated stocks that are poised for a meaningful rally in 2023.

Coupang (CPNG)

E-commerce stocks have been among the hottest stocks in the post-pandemic era. However, after a 2022 beat down, many of these previous high-flyers are now trading at attractive valuations. Indeed, Coupang (NYSE:CPNG) is one such stock I’d put in this bucket, and it makes my list of underrated stocks to buy for this reason.

For 2023, the critical catalyst many view as necessary for CPNG stock is sustained EBITDA margin expansion. In Q3 2022, Coupang reported a product commerce EBITDA margin of 4.8%. On a quarter-on-quarter basis, the company’s margin expanded by 280 basis points. With operating leverage, Coupang is likely to move closer to its long-term EBITDA margin target of 7% to 10%.

That’s good. However, it’s also worth noting that Coupang reported cash and cash equivalents of $2.9 billion as of Q3 2022. Thus, the company has ample financial flexibility for expansion in Korea and other Asian markets. Coupang believes it has tapped just 50% of Korean online shoppers. Therefore, there is plenty of headroom for revenue growth.

Overall, Coupang has the potential to deliver robust cash flows in the coming years. After some consolidation below the $20 level, CPNG stock is poised for a big breakout rally.

Tripadvisor (TRIP)

Tripadvisor (NASDAQ:TRIP), the world’s largest travel guidance platform, looks attractive. TRIP stock has corrected by 14% over the past 12 months, and the company’s downside seems capped at its recent levels, around $24. With the renewed surge in global travel and tourism following the pandemic, the upside potential for TRIP stock is significant.

Among the positives I’m looking at is the company’s revenue growth. Tripadvisor reported revenue of $459 million as of Q3 2022, which was 107% higher over the quarterly level reported in 2019. Thus, not only has Tripadvisor surpassed tis pre-pandemic levels in terms of revenue, but it has seen improvement in its adjusted EBITDA margin as well. I expect this margin improvement to be sustained in 2023.

Another fundamental to note is Tripadvisor’s free cash flow of $46 million for Q3 2022. Currently, the company’s annualized FCF potential is around $200 million. Tripadvisor also has $1 billion in cash and cash equivalents. With substantial financial flexibility and an improving industry outlook, I expect Tripadvisor to pursue inorganic growth. Besides the company’s core business, Tripadvisor is already generating healthy revenue from Viator and TheFork.

Lithium Americas (LAC)

Given the impending lithium supply gap, lithium stocks are an attractive investment theme. However, Lithium Americas (NYSE:LAC) stock has underperformed with negative returns of 12% in the last year. Thus, I think it’s among the list of underrated stocks poised to surge higher in 2023 and beyond.

In an important development for the company, General Motors (NYSE:GM) and Lithium Americas agreed to jointly develop the Thacker Pass project. The former will make an equity investment of $650 million in Lithium Americas, which is significant consider the asset’s net present value of $4.95 billion. Once commercial operations commence, it will be a cash flow machine for the company.

Lithium Americas has also decided to split its business into two entities. The company’s U.S. assets will fall under Lithium Americas, and international investments will be under Lithium International. I believe the split will unlock value and make access to funding relatively easier.

With quality assets and high financial flexibility, Lithium Americas is poised to create tremendous value in the coming years.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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Further, consumer tastes will always vary. A brand that might be incredibly popular for one decade might not be relevant the next. Therefore, if you do select an automotive brand as one of the best battery stocks to buy, the underlying enterprise should feature a diversified business. You just never know what’s going to happen in this sector.

Specific to this list of battery players, they each carry varying degrees of financial risk. However, everyone enjoys a consensus view of buy or its equivalent. Therefore, you can approach these best battery stocks to buy with a measure of confidence.

Tesla (TSLA)

Symbolizing the king of EVs, perhaps a discussion on the best battery stocks to buy would not be complete without mentioning Tesla (NASDAQ:TSLA). True, the company primarily earned its reputation for building compelling EVs. However, as a Reuters article mentioned, the company continues to research advanced battery technologies, in large part to cut costs.

For full disclosure, Tesla represents a bit of a mixed story in 2023. On one hand, shares gained nearly 76% of equity value since the January opener. While incredibly impressive, it’s hard to ignore that TSLA started off the new year with a low comparison. By that, I’m referring to the stock’s trailing one-year performance, where it lost 37%.

Still, Tesla represents a growth and earnings machine. As well, it currently enjoys outstanding stability in its balance sheet. Finally, Wall Street analysts peg TSLA as a consensus moderate buy. And it’s worth noting that hedge funds love Tesla. Therefore, it’s one of the best battery stocks to buy.

Honeywell (HON)

A jack-of-all-trades industrial and applied sciences conglomerate, Honeywell (NASDAQ:HON) offers a critical advantage among the best battery stocks to buy. No matter where the economy heads, Honeywell’s robust diversity should keep it relevant. As far as battery technology is concerned, the company provides sensor offerings to enhance safety in EV batteries.

To be fair, HON doesn’t rate as a particularly exciting investment. For instance, the market prices HON at a trailing multiple of nearly 28, which is overvalued. As well, its three-year revenue growth rate of 1.1% ranks worse than average for the sector. However, Honeywell represents a profitability machine, with a net margin of 14%. This stat ranks higher than nearly 83% of its peers.

Presently, Wall Street analysts peg HON as a consensus moderate buy. In addition, their average price target stands at $221.92, implying an upside potential of 9.49%. For a stable idea among the best battery stocks to buy, Honeywell offers a decent option.

Toyota (TM)

Undoubtedly, Toyota (NYSE:TM) garnered plenty of flak recently over its refusal to go all-in on EVs. Indeed, the Japanese automaker’s stubbornness created strange bedfellows, namely the conservative-leaning Fox News. Editorialists there essentially supported Toyota’s bold decision to not cave into the EV mafia or at least that’s sorta the political framing.

Anyways, Fox News viewers should note that Toyota isn’t against EVs. It just wants to provide consumers with options since the full EV integration concept hardly rates as guaranteed. Moreover, Toyota is hard at work on a solid-state battery, which should have significant implications for the global EV rollout. Such research and development also make TM one of the best battery stocks to buy.

No matter what Toyota decides, it’s probably not going anywhere anytime soon. Wall Street analysts apparently agree, pegging TM as a consensus moderate buy. Moreover, their average price target stands at $161.99, implying an upside potential of nearly 12%. Again, it’s a solid idea for the best battery stocks to buy.

General Motors (GM)

Another legacy automotive giant, General Motors (NYSE:GM) may be the best car company in the world right now. I say that because it’s perfectly serving two communities. First, GM’s electrifying its marquee models such as the iconic Hummer, which should boost demand. Second, it stays true to its combustion-powered core, delivering the mid-engine eighth-generation Corvette, the affordable supercar.

For that, General Motors earned my props. However, investors should target the company as one of the best battery stocks to buy. Like its rival Toyota, GM invested considerably in researching and developing advanced EV battery technologies. With its Ultium battery, it might be able to change the game, especially when combined with GM’s modular EV platform.

I’m not just loving GM. Rather, Wall Street analysts weighed in positively as well, pegging shares as a consensus moderate buy. Moreover, their average price target stands at $49, implying an upside potential of over 19%.

Panasonic (PCRFY)

During the 1980s and 1990s, Panasonic (OTCMKTS:PCRFY) garnered fame as one of the top Japanese consumer electronics firms. In the decades before Apple (NASDAQ:AAPL) introduced its i-Whatever products, Japan Inc dominated. Nowadays, Panasonic focuses on its power plants, making it unquestionably one of the best battery stocks to buy.

As myriad publications pointed out, Panasonic has a longstanding partnership with Tesla. However, to put it in a non-politically correct term, Tesla represents the better-looking one in the relationship. But then, this also means that investors can pick up PCRFY shares for relatively cheap. As an example, the market prices shares at a forward multiple of 9.86. As a discount to forward earnings, Panasonic ranks better than nearly 80% of the competition.

Just as well, according to the Wall Street Journal, analysts peg PCRFY as a consensus overweight (buy equivalent) view. Further, their average price target stands at $10.77. Against the time of writing, this forecast implies an upside potential of nearly 23%.

FREYR Battery (FREY)

Moving into the riskiest portion of the best battery stocks to buy, speculators may want to target FREYR Battery (NYSE:FREY). Focusing on decarbonizing the energy and transportation industries, Freyr specializes in high-density and cost-competitive battery cells for stationary energy storage (ESS), electric mobility, and marine applications.

What’s remarkable about FREY compared to other higher-risk direct-play battery providers is its market stability. For instance, in the trailing year, FREY gained about two-thirds of a percent of equity value. It’s not much of anything but it’s also certainly not a loss. Since the Jan. opener, FREY gained over 6%.

To be fair, prospective investors must have high conviction that Freyr’s underlying narrative will pan out. As a pre-revenue enterprise, market participants shouldn’t put all their eggs into the FREY basket. That said, the company does enjoy a well-capitalized balance sheet.

In addition, Wall Street analysts love FREY stock, pegging it a consensus strong buy. Also, their average price target implies an upside potential of over 108%. Therefore, it’s one of the best battery stocks to buy for gamblers.

Microvast (MVST)

Headquartered in Stafford, Texas, Microvast (NASDAQ:MVST) generated plenty of intrigue when it made its public market debut in 2021. Actually, it made its debut in 2019. However, Microvast ended up merging with a special purpose acquisition company in 2021 while the SPAC itself debuted in 2019. Unfortunately, MVST succumbed to the usual performance of SPACs post-merger, which is to say it veritably cratered.

In the trailing year, shares gave up more than 75% of equity value. That’s not going to inspire much confidence. As well, its financials could use plenty of work. About the only resounding positive is that the market prices MVST at 0.87-times book value, which is extremely undervalued.

Still, as the global EV rollout gets underway in earnest, Microvast’s specialty in EV batteries could boost the enterprise. In addition, the company also focuses on energy storage systems, which may gain relevance on grid insecurity. As a parting note, MVST enjoys a sole consensus analyst view of buying. Here’s the thing: with a price target of $8, this represents an upside of 360%. That makes it one of the best battery stocks to buy for speculators.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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Sure, it was not a complete shocker that Nio’s January delivery figures were weak compared to a year ago, and especially compared to a month ago. Since December, there have been some warnings of near-term sales weakness, driven by several factors.

But while shares have only sold off modestly on the heels of this news, as some investors believe that Nio’s prospects will improve during the second half of 2023, I wouldn’t jump to that conclusion. Further disappointment may lie ahead.

With this, let’s dive in, and see why “buying the dip” here is not the best move.

NIO Stock and the Latest Delivery Numbers

On Feb. 1, Nio released its monthly delivery update for January 2023, reporting a total of 8,506 vehicle deliveries. Compared to delivery numbers in January 2022 (9,652) and December 2022 (15,815), these latest numbers represent an 11.9% year-over-year drop, and a 46.2% drop on a sequential (or month-over-month) basis.

These underwhelming numbers have led some to bail on NIO stock, but others are holding tight on their positions. Mostly, on the view that this sales slump was expected, and will be temporary in nature. Several developments have indicated sales weakness during the first half of 2023.

For instance, Nio’s CEO, William Li, back in December warned of “sales challenges,” citing issues such as the phasing out of China’s EV subsidies. Tesla’s (NASDAQ:TSLA) slashing of its vehicle prices by as much as 24% in China has also likely had a near-term impact on demand.

With Nio launching new vehicle models, and with forecasts calling for China’s post-pandemic recovery expected to happen faster and sooner than expected, those bullish on the stock believe that the company’s results will kick it back into high gear a few months from now. However, it’s questionable whether this will happen.

Why Challenges May Persist Throughout the Year

Much like the impact of the January update, delivery updates in the winter and spring may only moderately affect the performance of NIO stock. However, in the months ahead, more signs may emerge that the much-expected growth re-acceleration will not take shape in the latter half of 2023.

For instance, as I’ve noted previously, it’s possible that investors are underestimating the impact the phasing out of subsidies will have on Chinese EV demand. Even a rapid rebound for the overall Chinese economy may prove insufficient to gin up demand, as Nio ramps up production.

As InvestorPlace’s Joel Baglole recently argued, if demand remains weak, domestic Chinese EV makers like Nio may begin to implement their own vehicle price cuts as their U.S.-based counterparts have done. While this could boost delivery numbers, investors could react negatively to the prospect of a Chinese EV price war.

Unlike Tesla, which may have more wiggle room to slash prices (although I have my doubts), the negative impact of price cuts Nio’s margin could far outweigh the positive impact on sales. The sell-side is expecting Nio to become profitable by 2024, but a price war could potentially further extend this timeline.

Bottom Line

Besides the risk of further disappointment with demand in its home market, future news with its efforts to expand globally could disappoint as well. Much of Nio’s appeal as a possible “Tesla killer” hinges on its ability to expand beyond China, first in Europe, then possibly in North America.

Although Carlos Tavares, CEO of European automaker Stellantis (NYSE:STLA), believes Chinese EV makers have the potential to beat European EV makers on their home turf, this may apply mainly to mass-market EV makers.

Nio may have a harder time competing with Tesla and incumbent automakers in Europe’s mass-affluent passenger vehicle market. Failure in Europe may fully put to rest the idea of Nio becoming a global EV brand.

As the recent delivery disappointment may be more than just a short-term hiccup, continue to steer clear of NIO stock.

NIO stock earns a D rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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The release of OpenAI’s ChatGPT in November has spurred something of an AI trend in the stock world. As the masses collectively discover the power of modern AI, companies like Alphabet have been under pressure to respond to the potential threat of AI to their organic search engines. Microsoft (NASDAQ:MSFT) has continued to pour money into OpenAI, having already invested $10 billion in the San Francisco AI startup.

Google in particular has reportedly been ringing the alarm over the danger ChatGPT presents to its search-engine empire. Reasonably so, if conversational AI can just tell you everything you want to know without needing to click any extra links, engines like Google and Bing lose much of their utility — alongside much of the internet.

With that in mind, many investors are eagerly awaiting to see the fruits of Google’s AI initiative this Wednesday. According to the event description, the livestreamed event will offer viewers some insight into Google’s various AI applications:

“We’re reimagining how people search for, explore and interact with information, making it more natural and intuitive than ever before to find what you need. Join us to learn how we’re opening up greater access to information for people everywhere, through Search, Maps and beyond.”

What should you expect for AI stocks heading into Google’s Feb. 8 event?

AI Stocks Flourish Ahead of Google Conference

ChatGPT surpassed 100 million users in January, making it one of the fastest growing apps ever — even outpacing notoriously trendy ByteDance’s TikTok. As a result, a number of AI companies have enjoyed some resounding stock price growth in the past few months.

MSFT stock has climbed more than 10% in the past month, largely off the back of ChatGPT’s success. Meanwhile, even as one of the potential losers of the AI boom, Google-parent Alphabet has enjoyed an 18.6% jump in the past month. Clearly Google’s mysterious Bard chatbot has investors piqued, and frankly for good reason.

Bard is powered by Google’s Language Model for Dialogue Applications, otherwise known as LaMDA. According to Alphabet Chief Executive Sundar Pichai, Bard offers a number of ground-breaking accessibility and computing benefits.

“Bard seeks to combine the breadth of the world’s knowledge with the power, intelligence and creativity of our large language models,” Pichai wrote in a blog post Monday.

Aside from AI titans Microsoft and Google, a number of other AI-enhanced companies have seen some recent investor interest. This includes Advanced Micro Devices (NASDAQ:AMD), which is up 24% in the past month.

Unfortunately, the AI love hasn’t quite been uniform. Companies like Intel (NASDAQ:INTC) and International Business Machines (NYSE:IBM), considered leaders in the future of AI, have tumbled in the past month. Their stocks are down 2.1% and 5.8%, respectively.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Roughly a month into 2023, it’s already clear that artificial intelligence (AI) is this year’s first market boom. Since OpenAI launched ChatGPT, investors haven’t been able to ignore the power of this new tech. This has led to significant speculation around which stocks to buy as the AI boom takes off. Larger-cap stocks have been enjoying significant gains, with plenty of room to run throughout the coming months. But as momentum for this fast-growing tech continues to build, investors shouldn’t overlook the opportunities in AI penny stocks.

This new market frenzy has generated some impressive gains for AI penny stocks. Smaller-cap companies are also well positioned to ride this wave right out of the penny stock category. As Markets Insider reports, names like BigBear.ai (NYSE:BBAI) and SoundHound (NASDAQ:SOUN) have both seen “bullish runs in recent months.” According to the outlet, in just January, “BigBear saw an increase of 356%, while SoundHound climbed 56%.”

BigBear is a key example here, recently rising above the $5 price point due to positive market momentum. But plenty of other companies in this space still trade below that line. They are well-positioned to climb in 2023. This doesn’t refer just to companies that produce AI tools and systems, but to firms that implement AI technology across a variety of sectors.

Let’s take a look at the AI penny stocks to watch as this next bull run continues to unfold.

AI Penny Stocks: Guardforce AI (GFAI)

If you want to see a penny stock surging on AI boom momentum, look no further than Guardforce AI (NASDAQ:GFAI). This dynamic firm leverages AI technology across a wide range of information and security solutions and provides consulting services. It has worked with a wide range of both private and public sector organizations and boasts a truly global reach.

GFAI stock has risen about 40% over the past five days and skyrocketed an impressive 125% year-to-date (YTD). At about 40 cents per share, it also still trades below the $1 mark. Considering that GFAI hovered around 16 cents last month, the progress here is hard to ignore.

Investors should regard GFAI stock’s low share price as a buying opportunity before the AI boom takes it even higher. The recent gains aren’t even all due to the current AI momentum. Less than a month ago, Guardforce secured two lucrative contracts, including a five-year deal with Don Muang Tollway Public Company. The second partner’s name has not been released.

Previously, Guardforce also saw shares rise after acquiring Shenzhen Intelligent Guardforce Robot Co. When it comes to AI penny stocks, GFAI is a clear choice for investors seeking market exposure from undiscovered winners.

SoundHound AI (SOUN)

This AI innovator is another winner this week. SoundHound has successfully ridden the current AI wave to impressive heights, rising 97% over the past five days. If anyone has doubts that the AI boom is here and creating a new class of market winners, they should take a look at this company’s impressive performance.

SOUN stock isn’t the only one in its field enjoying the current rally. But among AI penny stocks, it’s absolutely worth watching. Like Guardforce, SoundHound has given investors other reasons to bet on it. InvestorPlace contributor Chris MacDonald recently reported:

“The company pre-announced its 2022 results […] reporting revenues at the high end of its previous guidance. Additionally, the company announced the closing of an additional $25 million of preferred equity financing. SoundHound expects that this financing will help bolster its balance sheet, as the company looks to reduce debt as it cuts costs to the tune of $60 million per year.”

This type of catalyst is exactly what SOUN stock needs to keep investor interest high.

AI Penny Stocks: Ideanomics (IDEX)

This micro-cap name hasn’t been driven upward by the AI rally yet, but that doesn’t mean it can’t join the pack. Ideanomics (NASDAQ:IDEX) is recovering from a very difficult 2022. Still, investors do have some cause for optimism. Operating in the electric vehicle (EV) space, the company’s field will likely prioritize AI technology as EV makers and the like work toward perfecting autonomous vehicles.

Despite a difficult year, Ideanomics has been working hard to continue scaling operations and leveraging new technology. That includes implementing AI before the launch of ChatGPT. In October 2022, the company announced a three-year partnership with Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud to host its platform, “leveraging the AI and security features Google Cloud extends to its partners.” Per a statement released by the company:

“Built on Google Cloud, the platform will leverage Google Cloud’s advanced AI functionality to collect and analyze telematics from all Ideanomics products as well as third-party EVs and charging infrastructure.”

Predictive Oncology (POAI)

Medical AI darling Predictive Oncology (NASDAQ:POAI) is just starting to catch fire, but it looks poised to continue roaring. The company’s name does a good job of explaining what it does, chiefly applying AI technology to cancer treatment methods.

As InvestorPlace contributor Alex Sirois reports, Predictive Oncology has proven effective at identifying the best ways to treat different types of cancers and tumors. This gives it plenty of room to grow, as the need to find and strategically deploy cancer treatment methods won’t go away anytime soon.

Sirois also notes that Predictive Oncology has a “repository of data points 150,000 plus tumors by cancer type.” Cathie Wood recently highlighted the importance of extensive data for AI companies. While she applied this logic to her bullish case for Exact Sciences (NASDAQ:EXAS), a case could be made that Predictive may offer a similar opportunity.

AI Penny Stocks: Duos Technologies (DUOT)

This dynamic tech company technically just pushed above penny stock levels. Duos Technologies (NASDAQ:DUOT) currently trades at $5.42 per share. Like many AI penny stocks on this list, it’s enjoying the current rally; DUOT has jumped more than 170% over the past month.

Duos primarily deals in the production of automated inspection solutions for rail transportation vehicles. That’s a niche market but, as of now, operating in a specialized field is paying off well. DUOS stock is also up more than 150% year-to-date (YTD).

In late January 2023, Duos reported that its revenue base had grown through its AI and maintenance renewals. Prior to that, InvestorPlace contributor Muslim Farooque also reported that Duos had seen sales growth increase by “triple-digit margins” throughout previous quarters. As Farooque notes, the company has a strong financial profile and seems committed to continuing to drive growth through technology in significant demand. All this positions Duos to continue riding the new AI wave.

Remark (MARK)

After being cast aside by plenty of investors, Remark (NASDAQ:MARK) is currently enjoying a massive second wind surge. Based in Las Vegas, the company “primarily focuses on the development and deployment of artificial intelligence-based solutions for businesses and software developers,” per Yahoo! Finance.

Remark saw some growth in 2021 due to attention from retail traders. But as InvestorPlace’s Louis Navellier noted, MARK stock had appeal beyond short squeeze potential. Over a year later, the new AI boom is proving Navellier correct.

Despite taking some heat from experts lately, Remark seems well-positioned to make up the ground it lost in 2022. Shares are up more than 70% YTD after surging more than 55% in the past month. Since last week, shares have been rising very steadily, showing no signs of slowing down. With interest in AI penny stocks growing, there’s no reason to suspect that MARK stock can’t climb further.

AI Penny Stocks: Rekor Systems (REKR)

“We build for cities, for citizens, and for life,” promises the Rekor Systems (NASDAQ:REKR) webpage. This company uses AI to provide analytical insights on vehicles and urban infrastructure. Rekor’s technology has applications not just for public safety on the road but for law enforcement and numerous commercial aspects. While REKR stock has been fairly volatile throughout 2023, it has overall performed well. Currently, REKR stock is up 30% for the month.

Rekor has done an impressive job leveraging AI for vehicle recognition tech at a time when need for this service should keep growing. As Muslim Farooque reports, “With [its] transition to a subscription model, Rekor Systems is likely to enjoy increased margins and recurring revenues, bringing even more impressive returns from its cutting-edge technologies.”

Farooque notes that Rekor is operating in a niche sector with significant growth potential. According to predictions from Grand View Research, the global market for transportation management systems has the potential to exceed $31.2 billion by 2030. The new interest in AI stocks should help REKR stock grow even more as it benefits from the boom.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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Frankly, it’s just not a great time to try to sell expensive EVs to the public. Elevated inflation and recession fears have caused some people to delay new vehicle purchases.

That’s a problem for Lucid Group, which sells high-priced EVs. Nevertheless, there’s a public investment fund that still seems very bullish on Lucid, but this doesn’t mean you need to jump into the trade right now.

Why Did LCID Stock Rally 98%?

In a shocking price move, LCID stock spiked 98% to $17.81 on Jan. 27 before pulling back. Bear in mind, this was a $6 stock in early January.

The price action was so volatile that the New York Stock Exchange halted trading 12 times on Lucid Group shares in a single day. So, what was all the excitement about?

Apparently, speculation circulated that Saudi Arabia’s Public Investment Fund (PIF), which already owns 65% of Lucid Group, will purchase the automaker’s remaining shares.

It hasn’t been confirmed, however, that the PIF will actually buy the remaining Lucid shares. Cautious investors should wonder whether this possible but unconfirmed event has already been priced into LCID stock. Indeed, there may be a “buy the rumor, sell the news” outcome to this story.

Lucid Group’s Problems Haven’t Disappeared

Interest from Saudi Arabia’s PIF doesn’t mean that Lucid Group is suddenly problem-free. Remember, Lucid is facing competition from automotive giants that are also selling EVs, and Lucid Group only delivered 4,369 vehicles in all of 2022.

So, it’s not as if Lucid Group’s vehicles have been selling like hotcakes. Lucid Group’s EVs are quite expensive, even after $7,500 tax credits under the Inflation Reduction Act have been factored in.

It’s been said that the cheapest vehicle from Lucid Group costs $87,000, while most of the automaker’s EVs are priced “well north of” $100,000. Furthermore, reportedly Morgan Stanley analysts said Lucid Group is “impacted by what they call the Hunger Games pricing war.”

Lucid Group can implement price cuts, but this won’t necessarily make the company competitive or profitable. Lucid Group has been unprofitable for a long time, and until that changes, it’s difficult to recommend LCID stock with confidence.

What You Can Do Now

Speculative frenzy, while exciting in the moment, can lead to a disappointing outcome. Thus, even if Saudi Arabia’s PIF buys the remainder of Lucid Group, this event seems to have already been priced into Lucid shares.

Moreover, Lucid Group’s EVs are expensive and the company isn’t profitable. Therefore, for the time being, it’s wise to remain on the sidelines and avoid LCID stock.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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The post Buyout Buzz Does NOT Make LCID Stock a Buy appeared first on InvestorPlace.

Hailing from Florida, Innovative Eyewear is a relatively small company with a market capitalization of around $27 million to $28 million. Therefore, any announcement from the company could significantly move the Innovative Eyewear share price.

That’s happening today because Innovative Eyewear, a developer and retailer of smart eyewear, is adding new features to its flagship product line. The Lucyd Lyte 2.0 is Innovative Eyewear’s line of next-generation audio-enhanced smart glasses. It’s currently available on Innovative Eyewear’s website.

Apparently, this was a long time in the making. Innovative Eyewear claims that Lyte 2.0 “marks the culmination of years of” research and development. So, how is the market reacting to Innovative Eyewear’s announcement of the Lucyd Lyte 2.0?

What’s Happening With LUCY Stock?

The immediate response has been overwhelmingly positive. Traders bid LUCY stock up 30% this morning after learning about the new features of Innovative Eyewear’s core product line.

You might be amazed to discover what smart glasses can do nowadays. In particular, the Lucyd Lyte 2.0 provides “immersive open-ear audio” with a four-speaker array. Also, it features dual noise-canceling microphones, as well as Bluetooth 5.2 functionality for “improved connection stability.”

On top of all that, the Lucyd Lyte 2.0 features improved battery life and touch controls that “give an audible signal whenever the user adjusts volume or uses the other button functions, such as activating the voice assistant.” In other words, these are among the smartest smart glasses available now.

As the company’s name implies, Innovative Eyewear is dedicated to advancing innovative products in the smart eyewear category. LUCY stock investors are betting on Innovative Eyewear’s new and improved product offerings, and they’re enthusiastically hoarding shares today.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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According to a Form 4 filing submitted to the Securities and Exchange Commission (SEC) on Feb. 3, McDermott sold 53,993 shares worth $24.75 million on Feb. 1. The prices of shares sold ranged between $455.03 and $460.98. Following the sale, McDermott now owns only 3,600 shares.

This is a significant sale, as it represents a majority of the CEO’s stake. However, there’s more than meets the eye underneath the surface.

The sale generated controversy on social media, as McDermott had recently appeared on CNBC with an upbeat tone on the prospects of his company. Following backlash, McDermott disclosed he had sold the shares to fund a property purchase. This comes after the CEO purchased a $43 million Laguna Beach mansion in late 2021. During that year, McDermott received the third-highest pay among all S&P 500 CEOs, totaling $165.8 million.

CEO Bill McDermott Sells $25 Million Worth of NOW Stock

Macquarie analyst Sarah Hindlian-Bowler maintained her “outperform” rating and price target of $458 following the sale. She added McDermott has 56,000 shares lined up this year for time vesting and the right to acquire up to 32,000 shares if the average stock price exceeds $399.47. He also owns the rights to “up to 555,000 in longer-term performance-based stock options.” As a result, Hindlian-Bowler concluded the recent sale only accounted for about 10% of his total ownership. In addition, the transaction was McDermott’s first sale in two years.

When asked about the sale, a ServiceNow spokesperson said:

“It could not be clearer how bullish he is on ServiceNow and its future. ServiceNow stock is the majority of Bill’s compensation, and this is his first stock sale in more than two years. Bill retains a large equity stake in the company; in fact, as his equity awards continue to vest over the next 12 months, he will more than replenish the amount he just sold.”

On the other hand, VerityData’s Director of Research Ben Silverman takes issue with the sale. Silverman believes the sale implies McDermott thinks real estate is a better investment than NOW stock.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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The post CEO Bill McDermott Just Sold $25 Million in ServiceNow (NOW) Stock appeared first on InvestorPlace.

Lizhi isn’t just leveraging AI tools to boost its products; it is using them to successfully drive business growth. More than that, it is showing investors why it’s well-positioned to keep rising as enthusiasm for AI stocks continues growing.

Will Lizhi be among the new generation of AI boom winners? Let’s take a look at the company and what investors can expect in 2023.

What’s Happening with LIZI Stock

As markets opened today, LIZI stock surged, rising 15% in the first hour of trading. Since then, it has lost some momentum. But despite suffering a slight dip, it remains firmly in the green. As of this writing, it is up 14% for the day and looks poised to start rising again. While LIZI has been highly volatile throughout recent months, it is still up an impressive 91% year-to-date (YTD).

Lizhi is best known for its “audio-based social ecosystem,” which has achieved a global presence of late. The company offers multiple product portfolios aimed at catering to users’ social media and audio-entertainment interests. Now it is incorporating voice technology powered by AI into its audio and video streaming services. Per a statement released by the company:

“Incorporating AI and voice technology into the Company’s platforms also supports the continued innovation of LIZHI’s audio products and improvements to the user experience. At the same time, LIZHI will continue to conduct in-depth research on AI-generated content (AIGC) and language processing technologies (such as OpenAI’s ChatGPT) in order to explore the application and expansion of these groundbreaking technologies in LIZHI products.”

Many experts are touting large cap companies as the best AI stocks to buy. But if the company continues scaling operations in this way, LIZI stock could easily be among the winners of the market’s new boom. Investors should be watching carefully as the AI gold rush creates new opportunities for previously unknown companies.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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If you know a high school or college student, then you may be familiar with Chegg. The company provides a “student-first connected learning platform,” including online test preparation resources.

Chegg President and CEO Dan Rosensweig acknowledged “the last several years have been very challenging for everyone,” as if to prepare investors for dismal quarterly results. The data actually wasn’t bad, however.

For Q4 2022, Chegg reported revenue of $205.2 million, down 1% year over year but still beating the analyst consensus estimate of $202.1 million. Also, Chegg posted adjusted earnings per share (EPS) of 40 cents, while Wall Street only expected 38 cents.

What’s Happening with CHGG Stock?

So far, there doesn’t seem to be anything Chegg’s investors could object to. Yet, CHGG stock dropped 20% early this morning.

What happened? Remember, the market’s response isn’t always about actual results; sometimes, a company’s forward guidance is more important.

In this case, analysts predicted Chegg would guide for full-year 2023 revenue of $782 million. However, Chegg instead posted 2023 revenue guidance of $745 million to $760 million. So, that’s what’s bothering the investing community.

Today’s traders are unhappy with this, and evidently so is KeyBanc analyst Jason Celino. Citing the company’s unambitious revenue guidance, Celino and other KeyBanc analysts downgraded CHGG stock from “overweight” (which is similar to “buy”) to “sector weight” (which is similar to “hold.”)

The KeyBanc analysts might be willing to reconsider their position on Chegg if the company improves its margins and addresses other concerns. For the time being, though, Chegg is out of favor with KeyBanc analysts and today’s financial traders.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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Hailing from Colorado, Sitio Royalties owns and manages oil-and-gas mineral and royalty interests in North America. These assets are spread across the famous Permian Basin in Texas, as well as the Anadarko Basin, Williston Basin and other locations.

It’s fine if you want to take a share position in Sitio Royalties because Reddit traders might pump up the price. After learning more about the company, however, you may end up holding your position and not wanting to let it go.

What’s Happening With STR Stock?

STR stock has been on a steady uptrend since October of 2020 but recently pulled back below $30. Therefore, dip-buyers might want to grab a few shares in hopes of a short-term rebound.

Meanwhile, Sitio Royalties could soon be a target of the short-squeeze crowd. Reddit traders seem to prefer companies that are not too big and not too small. Sitio Royalties fits into that space nicely with its $4 billion market capitalization.

MarketBeat and ShortSqueeze both confirm that STR stock has a short percent of float of 30.74%, which is fairly high. Furthermore, Sitio Royalties’ short-interest ratio stands at just 6.7 days to cover. This suggests that the short sellers could exit their positions in haste if there’s a rally in the Sitio share price.

Invest in Sitio Royalties for Dividends and Ambitious Oil Production

Thus, there’s a solid argument to hold STR stock as a short-squeeze candidate. Yet, income-focused investors should also put Sitio Royalties on their watchlists.

For one thing, Sitio Royalties pays a generous 10.4% annual dividend yield. Additionally, value hunters should observe that Sitio Royalties’ price-to-earnings (P/E) ratio is quite reasonable, at 12.2x.

Moreover, you’ll undoubtedly be impressed with Sitio Royalties’ production volume. In 2022’s third quarter, Sitio achieved average daily production volume of 17,990 barrels of oil equivalent per day (Boe/d), up 45% quarter-over-quarter.

The company could almost double that production rate, however. Guiding for the 12 months ending June 30, 2023, Sitio Royalties anticipates achieving average daily production of 32,750 to 34,250 Boe/d.

What You Can Do Now

Enomoto is right to place Sitio Royalties on his list of short-squeeze candidates. There could be a share-price rally any day now, based on short sellers frantically covering their positions.

There are also reasons to buy and hold STR stock, though. Sitio Royalties pays a healthy dividend, and the company’s shares don’t appear to be overpriced at all.

Finally, investors should consider Sitio Royalties for its ambitious petroleum production rate. All in all, whether you’re in the trade for a quick flip or plan to stay for the long haul, Sitio Royalties deserves a prominent position on your watchlist right now.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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The post Why Short-Squeeze Candidate STR Stock Is One to Watch appeared first on InvestorPlace.

However, there’s no news from the company explaining today’s surge in price. Even so, investors will want to keep an eye on XELA stock as it prepares for a hearing concerning its continued listing on the Nasdaq.

That hearing is scheduled to take place on March 2, 2023. The company will make its case to a hearing panel with plans for how it intends to regain compliance with the exchange’s requirements.

There are a few problems weighing on XELA stock that explain its delisting trouble. That includes the company’s shares only trading for about 7 cents when markets closed on Monday. The Nasdaq requires stocks to maintain a price above $1 per share to remain on the exchange.

In addition, Exela is dealing with liquidity problems. That has kept it from paying semiannual coupons, although it’s working to fix that. This includes negotiating deals with third-party sources of liquidity that will help the company make those payments.

What This Means for XELA Stock

There’s no denying that XELA stock is in a rough place right now. Investors will want to watch shares as the March 2 hearing approaches. The events of the hearing will likely have a strong effect on the future of the stock.

It’s worth pointing out that XELA stock is seeing heavy trading volume today. As of this writing, more than 109 million shares have changed hands. That’s quite the surge compared to the daily average trading volume of 97 million shares.

XELA stock is up 6.8% as of Tuesday morning.

There’s more recent stock market news worth diving into below!

We’ve got all the biggest stock stories for traders to read about on Tuesday! That includes why shares of SeqLL (NASDAQ:SQL), Baidu (NASDAQ:BIDU) and Lithium Americas (NYSE:LAC) stock are moving today. You can find all that news at the following links!

More Tuesday Stock Market News

• Why Is SeqLL (SQL) Stock Up 256% Today?
• Baidu (NASDAQ:BIDU) Stock Gains 11% on Ernie AI Bot News
• Lithium Americas (LAC) Stock Jumps 10% on Thacker Pass Ruling

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Yes, the company has made far more progress than undercapitalized upstarts like Mullen Automotive (NASDAQ:MULN). Preorder numbers for Rivian have also been more promising compared to Lucid Group (NASDAQ:LCID), another high-profile EV maker that’s been touted as a possible Tesla (NASDAQ:TSLA) in the making.

Yet despite being perhaps in a stronger position than its peers, this doesn’t mean that RIVN shares are on their way toward substantially higher prices. Whether on a short, medium, or long time horizon, shares could produce disappointing returns from here.

Why? Chalk it up to a valuation that already reflects potential growth and rising competition that may hinder Rivian’s ability to realize this potential.

RIVN Stock Is ‘Priced for Perfection’

Given that Rivian stock trades for around a quarter of its 2021 IPO price ($78 per share), at first it may sound odd to say that shares are at present “priced for perfection.”

However, just because RIVN stock has experienced a significant price decline since its debut doesn’t mean that it became a bargain in the process. RIVN simply went from being extremely overvalued, to trading at a valuation that prices in future forecasts as near-certainties. Granted, this doesn’t necessarily mean the stock today has zero additional runway.

Sure, it is possible for Rivian, after last year’s setbacks, to beat expectations this year. That said, is it likely to happen? In my view, no. This is mostly due to increasing competitive challenges.

Investors bullish on Rivian will argue that this EV maker’s focus on the truck and van market leaves it less vulnerable to competitive risks than the EV upstarts attempting to compete directly with Tesla. However, Ford (NYSE:F), which has sold nearly all of its past RIVN investment, may pose a serious competitive threat, with its best-selling F-150 Lightning truck.

Even Falling Slightly Short of Expectations Could Drive Big Declines

Don’t get me wrong. It’s not as if the F-150 Lightning alone will fully destroy Rivian’s ability to continue growing. That said, this emerging competition will threaten Rivian’s potential to exceed expectations.

It may also result in the company reporting results that fall slightly short of expectations. The stock’s current valuation leaves little room for error. “Slight misses” could still have a serious impact on the performance of RIVN stock.

If factors such as competition affect growth over the next few years, net losses could end up being far greater than current forecasts. Having to delay its profitability timeline once again will of course put more pressure on the stock, but that’s not the only risk.

Although management has previously stated the company has enough cash to fund operations until 2025, if it fails to become profitable by that time, it will likely need to raise more cash by selling new shares, which will be dilutive to existing investors.

My Verdict on RIVN

There’s a lot more that could sink Rivian lower, rather than send it back to substantially higher price levels. The risk/reward proposition does not appear favorable.

In fact, from a risk/reward standpoint, Ford may be a stronger EV wager. The “old school” automaker has a strong chance of successfully transitioning into being primarily a maker of electric vehicles.

As this may result in increased operating margins, the market could in turn rerate Ford’s shares (currently trading for around 8.5 times forward earnings) to a higher valuation.

Multiple expansion, coupled with increased earnings, could put F stock in the fast lane in the coming years.

In contrast, despite moving higher recently, RIVN stock could sputter going forward. With this in mind, it’s definitely not a buy right now.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Coders and other tech wizards have been talking about machine learning for years. Yet, suddenly, AI is in the headlines due to the popularity of OpenAI’s ChatGPT program.

OpenAI isn’t listed on a major U.S. stock exchange, but C3.ai is. Indeed, it’s not too late to buy a stake in C3.ai as a history-making agreement between nations indicates a runway for multi-year growth in the global AI market.

Cathie Wood, White House and E.U. Support AI

Will the machine learning market continue to expand in the coming years? There are a number of reasons to believe so. For one thing, Ark Invest’s Cathie Wood is clearly bullish on the future of AI.

“AI is going to enable the most massive productivity increase in our history,” Wood declared recently.  “The productivity gains are going to be astounding and shocking,” she added.

In that vein, a report from Ark Invest has some eye-opening projections. “AI should increase the productivity of knowledge workers more than 4-fold by 2030,” the report estimates. Moreover, “At 100% adoption, AI could increase global labor productivity ~$200 trillion, dwarfing the ~$32 trillion in total knowledge worker salaries.”

Along with all of that, prospective investors should know that, on Jan. 27, the White House announced an agreement between the United States and European Union. Under this agreement, “experts from across the U.S. and Europe” will collaborate “to further research” on AI, “computing, and related privacy protecting technologies.”

New Product Suite Bodes Well for AI Stock

In case you’re not convinced to give AI stock a try, here’s a potentially game-changing development to consider. Just recently, C3.ai announced it will launch a product suite that will provide enterprise users with a “transformative,” AI-enhanced user experience.

It’s called the C3 Generative AI Product Suite, and the first product from this lineup is C3 Generative AI for Enterprise Search. This will integrate “the latest AI capabilities from organizations such as Open AI,” including the “the most advanced models, such as ChatGPT.”

Thus, rather than try to compete with OpenAI’s ChatGPT, the C3 Generative AI Product Suite can incorporate and deploy it. All in all, it’s a wide-ranging array of enterprise AI tools that uses a “language interface to rapidly locate, retrieve, and present all relevant data across the entire corpus of an enterprise’s information systems.”

So, Here’s My AI Stock Price Prediction for 2025

We’ve addressed multiple reasons to be bullish on C3.ai. The company’s shares have gained value over the past few weeks. However, there’s still much more room to run.

The next few years will be an exciting time for the machine learning industry. C3.ai should benefit from the aforementioned, multinational agreement to support AI. Plus, Wood’s optimism indicates that AI has a robust future, and this bodes well for C3.ai.

Therefore, I fully expect AI stock to rally to $100 by 2025. This might actually be a conservative estimate, but it nonetheless represents multi-bagger potential gains. And, if C3.ai continues to innovate with leading-edge products, the company’s shareholders will have a big winner on their hands.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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SeqLL (NASDAQ:SQL) stock is seeing massive gains on Tuesday after signing a new contract with a government agency.

Specifically, the company has signed a two-year Cooperative Research and Development Agreement (CRADA) with the Federal Bureau of Investigation (FBI). This will see it working with the FBI Laboratory Division on direct RNA sequencing.

The goal is to determine the forensic capabilities of direct RNA sequencing using SeqLL’s True Single Molecule Sequencing platform. The focus will be on forensic body fluid identification “without compromising traditional STR or DNA sequence analysis.”

Daniel Jones, Founder and CEO of SeqLL, said the following about the deal with the FBI:

“We are delighted to be working with a motivated and knowledgeable partner, such as the FBI LD. We appreciate the opportunity this CRADA provides, to methodically develop forensic applications utilizing SeqLL’s technology […] We look forward to demonstrating how single-molecule, PCR-free approaches are ideally suited for this space.”

SQL Stock Reactions

News of the FBI deal has shares of SQL stock seeing incredibly heavy trading today. As of this writing, more than 55 million shares have changed hands. That’s an incredible surge over the daily average trading volume of about 79,000 shares.

SQL stock is up 255.6% as of Tuesday morning.

Investors on the lookout for more of the latest stock market news are in luck!

We’ve got them covered with all of the hottest stock market happenings on Tuesday! A few examples include why shares of Baidu (NASDAQ:BIDU), Lithium Americas (NYSE:LAC) and Boeing (NYSE:BA) are in the news today. You can read up on all that news at the links below!

More Tuesday Stock Market News

• Baidu (NASDAQ:BIDU) Stock Gains 11% on Ernie AI Bot News
• Lithium Americas (LAC) Stock Jumps 10% on Thacker Pass Ruling
• Boeing Layoffs 2023: What to Know About the Latest BA Job Cuts

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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More About Baidu’s Bot

Utilizing similar technology to ChatGPT, the bot will be both a standalone application and incorporated directly into Baidu’s search engine.

In English, Baidu’s system will be called “Ernie bot.”

ChatGPT, in which Microsoft (NASDAQ:MSFT) has invested, has become very widely used and has received a great deal of publicity. Ernie is reportedly short for “Enhanced Representation through Knowledge Integration.”

Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google is also investing in AI search technology called Bard A.I.

BlackRock’s Investment in BIDU Stock

On Feb. 1, Blackrock (NYSE:BLK), a huge asset manager, disclosed via a U.S. Securities and Exchange Commission (SEC) filing that it had boosted its stake in BIDU to 6.6% in Q4 from 3.5% in Q3. BLK manages about $10 trillion of funds.

Baidu’s Other Opportunities

In a Feb. 1 column, I noted that BIDU reportedly intended to release an AI chatbot product and predicted that “Baidu’s offering could very well become very popular in China.”

The article also noted that BIDU is reportedly going to soon start offering robotaxi service in Beijing and widening its current robotaxi service in another Chinese city, Wuhan.

I added: “In the latter city, BIDU is looking to have 200 robotaxis operational by the end of this year. It sounds like robotaxis are getting close to moving the needle financially for Baidu.”

Finally, BIDU should be boosted by surging demand for cloud computing and digital ads in China, I hypothesized.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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Lithium Americas (NYSE:LAC) stock is getting a boost on Tuesday thanks to a new ruling on its Thacker Pass project.

This saw the U.S. District Court, District of Nevada give a favorable ruling to the company in its appeal against the Bureau of Land Management. This had it seeking a Record of Decision connected to the Thacker Pass project.

With this ruling, the court confirmed that the permitting process for the Thacker Pass project was carried out properly. As such, the company can move forward with construction and no restrictions should affect its timeline.

Jonathan Evans, President and CEO of Lithium Americas, said the following about the ruling:

“We are pleased that the Federal Court has recognized the BLM’s decision to issue the Federal Permit, reflecting our considerable efforts to ensure Thacker Pass is developed responsibly and for the benefit of all stakeholders […] The favorable ruling leaves in place the final regulatory approval needed in moving Thacker Pass into construction.”

What This Means for LAC Stock

Lithium Americas securing approval for construction means it can move forward with its lithium mining plans. Lithium is a hot commodity right now as it’s needed for batteries, such as those used in electric vehicles (EVs). Now, Lithium Americas is open to start the project, which will likely open it up to more revenue.

LAC stock is up 9.9% as of Tuesday morning. That comes as some 4 million shares change hands, as compared to the daily average trading volume of about 2.4 million shares.

Investors looking for all of the hottest stock market news will want to keep reading!

InvestorPlace has all of the most recent stock coverage traders need to know about on Tuesday! That includes why shares of Boeing (NYSE:BA), Bed Bath & Beyond (NASDAQ:BBBY) and Blink Charging (NASDAQ:BLNK) stock are moving today. You can learn more on these matters at the links below!

More Tuesday Stock Market News

• Boeing Layoffs 2023: What to Know About the Latest BA Job Cuts
• The $1 Billion Reason Bed Bath & Beyond (BBBY) Stock Is Plunging Today
• Blink Charging (BLNK) Stock Slumps on Public Offering News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Boeing opened Feb. 7 at about $208 per share with a market capitalization of about $124 billion on $66.6 billion in revenue. The company was last profitable in 2018. Boeing lost about $5 billion, or $8.30 per share, in 2022.

The fourth-quarter loss, which missed estimates, was blamed on shortages of labor and supplies.

Flying Low

The layoffs are part of an ongoing trend of releasing office workers and technical staff as businesses anticipates a recession.

Bank of America says companies are now in “belt-tightening mode.” Employers announced more than 100,000 job cuts in January, according to Challenger, Gray & Christmas, which tracks employment, four times more than a year ago. Almost half the cuts were in technology. In Boeing’s case, about one-third of the work is being outsourced to Tata Consulting in India.

Boeing announced plans to move its headquarters from Chicago to Arlington, Virginia last year after leaving Seattle in 2001. While known as America’s largest maker of civilian airliners, it is now the third-largest military contractor in the U.S.

Boeing is now worth half what it was at its peak in early 2019 just before it grounded its entire fleet of the 737-MAX. Production of the MAX resumed in 2020, but 737-MAX flights only picked up again in China, once Boeing’s most important market, this month.

Boeing has 15 analysts following it, according to Tipranks, with 10 recommending investors buy the stock and five in the “hold” camp. None are presently advising a sell. The stock traded for as little as $121 last September but has been recovering since.

What Happens After Boeing Layoffs?

Most large military contractors are wildly profitable. Boeing should be in 2023. Boeing has also trailed rival Airbus S.E. (OTCMKTS:EADSY) in civilian deliveries for 4 years in a row.

Odds are the trends reverse this year. If they don’t, expect management to be shown the door.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

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BBBY stock opened Feb. 7 at $3.11 per share, representing a market capitalization of $400 million.

Is the Party Over for BBBY Stock?

The troubled home goods retailer believes it has commitments to buy the new equity and will then tap another $100 million from stretched credit lines. That should be enough cash to make payments on its debt, repay outstanding loans and stay in business.

The plan authorizes up to 900 million shares of common stock and 1 million of preferred, according to a filing with the U.S. Securities and Exchange Commission (SEC). The company currently has about 117 million shares outstanding.

It’s the preferred stock, and accompanying warrants, that are causing the price of common to fall. The plan puts new stockholders’ interests ahead of those of existing stockholders.

Traders at Stocktwits, who had watched BBBY double in value on Feb. 6, were not amused. Some bought because of the limited supply of stock available to short. Now, it will be unlimited.

What Happens Next?

Wedbush lowered its price target on BBBY to zero, calling the offering “a last gasp” before bankruptcy. TV analyst Jim Cramer said traders “deserve to lose money” if they bought BBBY common at $5.75.

Small investors who got into BBBY anticipating a squeeze have had the rug pulled out from under them. Those who shorted the stock have been saved.

The party’s over.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

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The post The $1 Billion Reason Bed Bath & Beyond (BBBY) Stock Is Plunging Today appeared first on InvestorPlace.

Blink Charging (NASDAQ:BLNK) stock is sliding lower on Tuesday following an update on its public offering plans.

Blink Charging announced today that it intends to sell $100 million worth of BLNK stock in a public offering. That’s an upsized offering compared to the $75 million in BLNK stock the company originally planned to sell.

The public offering has Blink selling 8.33 million shares of its stock at $12 apiece. For the record, shares of BLNK were trading at $13.86 each when markets closed on Monday. Also, the offering includes an option for sole underwriter Barclays (NYSE:BCS) to acquire an additional 1.24 million shares.

According to Blink Charging, it expects net proceeds from the offering to come in at $95 million. The company will use this money for electric vehicle (EV) charging station deployments, investments and acquisitions, general corporate purposes and more.

Why BLNK Stock Is Down Today

It’s no surprise that Blink Charging stock is falling alongside the public offering news. Investors don’t often react well to stock offerings. That’s because offerings increase the number of outstanding shares and are priced below market value.

With today’s offering news comes heavy trading of BLNK stock. That has 1.3 million shares on the move shortly after markets opened. For the record, the company’s daily average trading volume is about 1.2 million shares.

BLNK stock is down 10.4% as of Tuesday morning.

Investors seeking more of the latest stock market news are in the right place!

InvestorPlace is home to all of the hottest stock coverage traders need to know about on Tuesday! A few examples include why shares of Kiora Pharmaceuticals (NASDAQ:KPRX), Rubius Therapeutics (NASDAQ:RUBY) and Bed Bath & Beyond (NASDAQ:BBBY) stock is moving today. All of that news is ready to go at the links below!

More Tuesday Stock Market News

• Why Is Kiora Pharmaceuticals (KPRX) Stock Up 61% Today?
• Why Is Rubius Therapeutics (RUBY) Stock Down 16% Today?
• Why Is Bed Bath & Beyond (BBBY) Stock Down 32% Today?

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Blink Charging (BLNK) Stock Slumps on Public Offering News appeared first on InvestorPlace.

Kiora Pharmaceuticals (NASDAQ:KPRX) stock is heading higher on Tuesday thanks to an update on its KIO-101 eye drops.

The big news here is the treatment getting investigational new drug application approval for a Phase 2 clinical trial. The company is developing the drug as a treatment for Ocular Presentation of Rheumatoid Arthritis and other autoimmune diseases (OPRA+).

This has Kiora Pharmaceuticals expecting to enroll “approximately 120 patients in a multi-center, controlled, randomized, double-masked trial assessing the safety and efficacy of KIO-101 eye drops.” It plans to start enrolling patients in Australia in the first half of this year.

Kiora Chief Development Officer Eric Daniels, M.D. said the following in a news release:

“Proof-of-concept has been established in previous ocular inflammation clinical studies for KIO-101. This drug has the potential to finally close the wide gap of untreated ocular disease in patients with common autoimmune diseases.”

What This Means for KPRX Stock

Kiora Pharmaceuticals moving forward with clinical trials is a positive for KPRX stock. It shows the company’s progress toward the commercialization of the drug. If it reaches that point, the company’s shares could see further gains as it generates revenue from the drug.

With today’s news comes heavy trading of KPRX stock. As of this writing, over 7 million shares have changed hands. For comparison, the company’s daily average trading volume is closer to 281,000 shares.

KPRX stock is up 61% as of Tuesday morning.

Investors looking for all of the latest stock market news will want to stick around!

We’ve got all of the latest happenings investors need to know about on Tuesday! Among that is what’s going on with shares of Rubius Therapeutics (NASDAQ:RUBY), Bed Bath & Beyond (NASDAQ:BBBY) and Oak Street Health (NYSE:OSH) stock today. You can find out more on these matters at the links below!

More Tuesday Stock Market News

• Why Is Rubius Therapeutics (RUBY) Stock Down 16% Today?
• Why Is Bed Bath & Beyond (BBBY) Stock Down 32% Today?
• Why Is Oak Street Health (OSH) Stock Up 36% Today?

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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According to a filing with the U.S. Securities and Exchange Commission (SEC), the company doesn’t meet the requirements to list on the Nasdaq exchange. That’s due to shares of RUBY stock trading below the $1 minimum bid price for too long.

That warning from the exchange would see shares of RUBY stock delisted on Feb. 15, 2023. However, Rubius Therapeutics intends to seek a hearing with the Nasdaq Hearings Panel. This will have it laying out plans for how it will regain compliance.

Investors will note that this isn’t the first delisting notice for RUBY stock. The company’s prior warning came back on July 27, 2022. That gave it until Jan. 23, 2023, to regain compliance with the Nasdaq’s listing rules. It failed to achieve this.

What This Means for RUBY Stock

Rubius Therapeutics needs to convince the Nasdaq Hearings Panel that it can get shares back above the $1 trading minimum. It might choose a reverse stock split to bump up its share price. The company could also switch to the OTC Markets exchange if it can’t regain Nasdaq compliance.

RUBY stock has seen some 830,000 shares change hands as of this writing. That’s quickly gaining on its daily average trading volume of about 1.3 million shares. The stock is also down 16% as of Tuesday morning.

Investors looking for all of the latest stock market news will want to keep reading!

We’ve got all of the hottest stock market coverage traders need to know about on Tuesday! That includes why shares of Bed Bath & Beyond (NASDAQ:BBBY), Oak Street Health (NYSE:OSH), and Vaccinex (NASDAQ:VCNX) stock are moving today. You can read up on that news at the links below!

More Tuesday Stock Market News

• Why Is Bed Bath & Beyond (BBBY) Stock Down 32% Today?
• Why Is Oak Street Health (OSH) Stock Up 36% Today?
• Why Is Vaccinex (VCNX) Stock Up 67% Today?

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Why Is Rubius Therapeutics (RUBY) Stock Down 16% Today? appeared first on InvestorPlace.

That plan from the company includes the sale of preferred stock as a way to increase funds. However, the company may have spooked investors with a warning in the U.S. Securities and Exchange Commission (SEC) filing.

That includes the following statement in its prospectus filing:

“Investing in the offered securities involves risks. You should carefully read and consider the information in this prospectus, the applicable prospectus supplement and the risk factors described in any applicable prospectus supplement and/or in our periodic and other reports and other information that we file with the Securities and Exchange Commission before investing in our securities.”

BBBY’s Plans for the Funds

Bed Bath & Beyond says it intends to use funds raised from the preferred stock offering for general corporate purposes. That may include the reduction of its debt. That’s not much of a surprise considering the company holds more than $1 billion in debt. It’s also at risk of defaulting on some of that money owed.

Shares of BBBY stock are falling 31.7% today as some 14 million shares change hands. The company’s daily average trading volume is about 43 million shares. Year-to-date, the stock is up 153.7%.

Investors searching for all of the hottest stock market news will want to keep reading!

InvestorPlace is home to all of the most recent stock news traders need to know about on Tuesday! A few examples include why shares of Oak Street Health (NYSE:OSH) and Vaccinex (NASDAQ:VCNX) stock are rising, as well as the biggest pre-market stock movers this morning. All of that news is ready to go below!

More Tuesday Stock Market News

• Why Is Oak Street Health (OSH) Stock Up 36% Today?
• Why Is Vaccinex (VCNX) Stock Up 67% Today?
• Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

• Buy This $5 Stock BEFORE This Apple Project Goes Live
• The Best $1 Investment You Can Make Today
• It doesn’t matter if you have $500 or $5 million. Do this now.

The post Why Is Bed Bath & Beyond (BBBY) Stock Down 32% Today? appeared first on InvestorPlace.

Oak Street Health (NYSE:OSH) stock is on the rise Tuesday as investors react to a report that CVS (NYSE:CVS) plans to take over the company.

According to these reports, CVS is willing to pay $10.5 billion to acquire Oak Street Health. The reports claim that CVS is going to pay around $39 per share for OSH stock. That would represent a roughly 50% premium to OSH’s closing price of $25.96 yesterday.

This isn’t the first time that reports of CVS seeking to obtain Oak Street Health have popped up. Earlier this year, similar reports spread with insiders claiming CVS was willing to acquire the company in a $10 billion deal. That would include its debt too.

What This Means for OSH Stock

If CVS acquired Oak Street Health, chances are that OSH stock will cease to trade publicly. However, the reported offer price is a strong premium, meaning that investors would likely accept the deal.

It’s also worth noting that CVS has been expanding its business lately with acquisitions. The company is trying to break into the primary care market, which makes sense considering its role as a retail pharmacy chain.

As for stock movement this morning, about 300,000 shares of OSH stock have changed hands. That’s still a ways off from the daily average trading volume of about 2.4 million shares.

OSH stock is up 35.6% as of Tuesday morning.

Investors can find more of the latest stock market news below!

InvestorPlace is home to all of the hottest stock market coverage for Tuesday! Among that is what’s happening with Vaccinex (NASDAQ:VCNX) stock, the biggest pre-market stock movers this morning and more. You can find all that news at the following links!

More Tuesday Stock Market News

• Why Is Vaccinex (VCNX) Stock Up 67% Today?
• Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
• 5 Investors Betting Big on SoundHound AI (SOUN) Stock

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Instead, it looks like today’s gains come from increased interest from investors. That brings with it heavy trading of VCNX stock. As of this writing, more than 7 million shares of the stock have changed hands. That’s a massive surge next to its daily average trading volume of only about 58,000 shares.

Investors looking for news about VCNX stock will note there have been no new press releases or U.S. Securities and Exchange Commission (SEC) filings from the company recently. So what’s behind today’s rally?

It could be retail traders pumping the stock higher this morning. VCNX’s low trading volume, combined with its market capitalization of $29.43 and price below $1 per share, makes it ripe for manipulation.

To go along with that, the heavy trading volume and rally are taking place during pre-market hours. Yet again, penny stocks are often more volatile during this time as certain traders buy and sell their shares.

What Is VCNX All About?

Vaccinex is a clinical-stage biotechnology company focused on treating neurodegenerative diseases. It seeks to do so through the inhibition of semaphorin 4D (SEMA4D). This has it developing pepinemab to block SEMA4D. That could make it effective in treating Huntington’s, Alzheimer’s, and other neurodegenerative diseases.

VCNX stock is up 67.3% as of Tuesday morning.

Investors seeking out more of the latest stock market news are in the right place!

InvestorPlace is home to all of the hottest stock market news on Tuesday! That includes the biggest pre-market stock movers this morning, as well as the latest on SoundHound AI (NASDAQ:SOUN) and a potential stock market crash. You can read up on that at the links below!

More Tuesday Stock Market News

• Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
• 5 Investors Betting Big on SoundHound AI (SOUN) Stock
• Stock Market Crash Alert: The End of the Stock Market Could Come in 2050

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Why Is Vaccinex (VCNX) Stock Up 67% Today? appeared first on InvestorPlace.

It’s time to start the day with a breakdown of the biggest pre-market stock movers to watch on Tuesday!

Moving stocks this morning are earnings reports, a takeover offer, and funding plans.

Let’s dive into that news below!

Pre-Market Stock Movers: 10 Top Gainers

10 Top Losers

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday appeared first on InvestorPlace.

Since the start of the year, the global markets have been experiencing a mini-rally triggered by positive U.S. economic data. Inflation is cooling down. And the Federal Reserve is taking notice.

The central bank has announced a quarter-point rate increase, the smallest adjustment since March, signaling an easing monetary policy in the country. Last week marked the eighth straight rate hike coming from the Fed.

However, no investor can afford to be complacent. Last year was a disaster for the broader markets. A consumer spending slowdown may quickly become the new norm, with Wall Street starting to feel the shortfall in profits. Talk of inflation and layoffs has investors worried because they could take a large hit.

Morgan Stanley’s investment chief warns clients that earnings reports to come will likely disappoint investors and cause the major stock indexes to drop. Even though it is unlikely a recession will happen, even if it does, the economy is not in as good of shape as people think.

Under these circumstances, it will not hurt to consider Morgan Stanley stock picks.

Advanced Micro Devices (AMD)

While semiconductor stocks are facing some difficult times, AMD (NASDAQ:AMD) is excelling. The stock has been up almost 35% since the start of the year.

AMD released earnings with excellent sales but only a bare minimum of profits due to amortization costs associated with the Xilinx acquisition and a significant decrease in PC sales.

It posted a 16% year-over-year revenue increase to $5.6 billion from $4.83 billion. However, the net income was $21 million, a steep drop from $974 million in the prior-year quarter. The gross margin was down by 740 basis points to 43%, while the operating costs also increased during this quarter.

AMD expects its sales to decline during the first quarter of the 2023 fiscal year due to slow demand. The company expects gains in the data center and embedded segment, while sales will be slower in the gaming and client segments.

Furthermore, AMD has been riding high on the recent data center boom for quite a long time. Though it is not guaranteed to stay as significant when Intel (NASDAQ:INTC) and NVIDIA (NASDAQ:NVDA), who still lead the industry, come back to life, AMD is one to watch seriously in the future.

Intel has been left in the dust with AMD’s Genoa Server CPUs. Intel is still the market leader. But it won’t hold on to the crown for too much longer. During the fourth quarter of 2022, AMD reported a more than 42% increase in data center sales compared to the prior year. Overall, the performance improved significantly from previous quarters.

For 2022, revenues were up by almost 64%, which means that the company is doing exceptionally well in the data center section.

Delta Airlines (DAL)

Among stock picks, Delta (NYSE:DAL) has been a favorite of Morgan Stanley, and with good reason. It posted a bright earnings report for the fourth quarter recently.

It is looking to aggressively cut down on costs to continue improving its financial performance even further.

The airline made $13.44 billion in total revenue in the final quarter of 2022, a 17% increase from $11.44 billion in the same quarter in 2019.

There was a sharp uptick in corporate bookings in the ten days before earnings. And demand for flights to Europe was stronger than ever. This will result in solid results in the coming quarter. In addition, at the end of 2022, Delta had an operating cash flow of $6.2 billion and $9.4 billion in liquidity.

Delta had a very successful year in terms of both new members and new cardholders. It gained 8.5 million SkyMiles members and 1.2 million Delta American Express cardholders.

Delta is expecting a revenue boost of 14% to 17% and forecasts an increase in EPS of between 4% and 6% in the first quarter of 2023 versus 2019.

In addition, Delta is taking meaningful steps towards reducing costs and has already introduced hundreds of fuel-efficient planes to its fleet. Researchers predict that these jet planes will be 20% more effective than the current fleet.

In a connected move, Delta is completing its goal of net zero emissions by 2050. The company’s Delta Sustainable Skies Lab was introduced at the 2023 Consumer Electronics Show. The lab focuses on sustainable air travel and provides a complete overview of current and future technologies dedicated to this cause.

For all these reasons, it is no surprise that Morgan Stanley has named Delta one of its favorites when discussing stock picks.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is an excellent investment that can be used to provide the company with a competitive edge. It has been able to grow steadily since its inception in 1975. And it continues to grow with each passing day.

Microsoft’s long history of innovation and success makes it an excellent investment for any company. Microsoft’s services are used by millions of people across the globe, making it a great way for companies to grow their business.

Microsoft stock is usually a good long-term pick as it allows new investors to profit greatly over time. However, its investment in OpenAI, the company behind ChatGPT, has been grabbing headlines recently.

Microsoft is not immune to change. The interest in ChatGPT is red-hot at the moment. Microsoft, a notable investor, and partner of OpenAI, have provided three rounds of investment into the company. The investment has the potential to turn into something substantial in the future.

For Morgan Stanley, the reasons to invest in Microsoft are varied. The tech giant is experiencing significant growth in key public cloud and data management areas. The stock also performed well during security issues recently. In addition, the investment bank believes demand for Microsoft’s products is highly stable. Hence, investor fears regarding churn rates are overblown.

MSFT shares are down over 14% in the last year, giving investors an attractive entry point to load up on this name.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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