Tag: Tech Stocks

ChatGPT and AI Investing in 2023

Posted on by The MarketClub Team

Schools, colleges, corporate boardrooms, and even family dinners are all abuzz with the common topic of conversation: ChatGPT. It would still be an understatement to say that it has taken the world by storm.

The easily accessible chatbot signed up 1 million users in five days and amassed 100 million monthly active users only two months into its launch.

To put this in context, TikTok, the erstwhile fastest-growing app, took nine months to reach 100 million users.

Daily Visits OpenAI

Source: www.cnbc.com

Many users feel that ChatGPT may eventually have the power to disrupt how humans interact with computers and change how information is retrieved. To make things more interesting, its creator, which has launched the chatbot to demonstrate what it is capable of, is just getting started.

We delve deeper to find out what the hype is all about and how investors and traders may stand to benefit from it. Continue reading "ChatGPT and AI Investing in 2023" →

2 Tech Stocks That Have Finally Bottomed

Posted on by Taylor Dart

2022 was a year to forget for investors and one of the worst years in history for the 60/40 stock/bond portfolio strategy in history.

This was evidenced by both assets posting double-digit declines, with the S&P 500 (SPY) actually performing the best with a 20% decline for the year, which says a lot about the magnitude of the decline in bonds.

Fortunately, 2023 is off to a better start, and while the S&P 500 entered the year in rough shape, the Nasdaq Composite was over 30%, with sentiment for the tech sector arguably the worst it’s been in nearly a decade.

This has set up some oversold buying opportunities, and some tech names have ~65% of their value, placing them in an interesting position from a valuation standpoint.

In this update, we’ll look at two tech stocks that look to have finally bottomed and where investors could find some value in buying the dip.

Crowdstrike (CRWD)

Crowdstrike (CRWD) is a $24 billion company in the cybersecurity space, and it continues to be one of the fastest-growing companies globally, increasing annual revenue from $119 million in FY2018 to $1.45 billion in FY2022, and sales estimates are sitting at $3.8 billion for FY2025.

The company is currently the market leader in endpoint security. Its flagship product is the Falcon Platform, with continuous AI analytics on trillions of signals helping to defend the thousands of customers on its platform.

As of the company’s most recent quarter, it has 15 of the top 20 US banks on its platform, 537 of the Global 2000 companies, and 21,100 customers in total.

Notably, the company is certainly not seeing a slowdown in line with other S&P 500 companies in this recessionary environment, growing customers by 44% year-over-year and revenue by 53% to $580.9 million.

The result is that Crowdstrike is set to grow annual EPS yet again this year by a market-leading 130%, with annual EPS estimates sitting at $1.54, up from $0.67 last year. This growth is expected to continue in FY2024, with annual EPS set to come in at $2.02. Continue reading "2 Tech Stocks That Have Finally Bottomed" →

1 Tech Stock That's Safe And 1 That's Not

Posted on by The MarketClub Team

Recent data suggests that the U.S. economy has been more resilient than expected, despite the Fed’s efforts to cool it down through monetary tightening. However, the market widely expects the central bank to implement a lower rate hike in its meeting this month.

However, many economists believe that the terminal interest rates will beat the earlier estimates. This might tighten fund availability for growing businesses while softening consumer demand in the year ahead.

Hence it would be safe to bet on stocks with an encouraging outlook while avoiding the weak ones.

Given the uncertain economic outlook, do you expect a Santa Claus Rally this year?

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Given its strong trends, it could be wise to buy NVIDIA Corporation (NVDA) to capitalize on increased consumer spending on electronics during holidays. On the other hand, CrowdStrike Holdings, Inc. (CRWD) might be best avoided now, given its downtrend.

NVIDIA Corporation (NVDA)

NVDA is a global provider of graphics, computation, and networking solutions. The company operates through two segments: Graphics and Compute & Networking.

NVDA’s revenue has exhibited a 41.8% CAGR over the past three years. During the same time horizon, the company’s EBITDA and net income have also grown at 51.6% and 35.2% CAGRs, respectively.

For the fiscal third quarter, ended October 30, 2022, NVDA’s non-GAAP operating income increased 15.9% sequentially to $1.54 billion, while its non-GAAP net income came in at $1.46 billion, up 12.7% quarter-over-quarter. This resulted in a sequential increase of 13.7% in non-GAAP EPS to $0.59 during the same period.

Analysts expect NVDA’s revenue and EPS for the fiscal fourth quarter to increase 1.5% and 37.9% sequentially to $6.02 billion and $0.80, respectively. The company has surpassed consensus EPS estimates in two of the trailing four quarters. Continue reading "1 Tech Stock That's Safe And 1 That's Not" →

Apple Just Entered the Space Race

Posted on by Matt Thalman

Over the past few years, many big technology companies have entered the space race, whether it was Amazon's (AMZN) Jeff Bezos with Blue Horizon, Tesla's (TSLA) Elon Musk with Space X, or Alphabet's (GOOG) satellite internet service, which will be competing with Space X Starlink internet service.

Now the newest technology company to enter space is Apple (AAPL), but in a slightly different way than the others.

On September 7th, Apple released its newest iPhone, the iPhone 14. One of the key features of this new device is the Emergency SOS via satellite feature. This feature allows iPhone 14 owners to contact emergency services via satellites in an emergency when the individual does not have traditional cellular telephone service.

This feature could be a game changer during natural disasters and cell towers are knocked out. Those in need of help will be able to contact first responders with their location, health status, and other pertinent information to help save lives.

Apple is subcontracting the satellite service with a company called Globalstar (GSAT) which already has a network of satellites in outer space for which Apple iPhone 14 and newer phones will be able to access.

The Emergency SOS satellite service will be free for the first two years of owning the iPhone 14; after that time, there will be a price associated with the service, but those details are unknown now.

With more and more of the major technology companies entering space in some form or fashion, it is not hard to see that aerospace technology and the companies currently operating in that industry will benefit from the shift.

That is why I believe you should consider investing a small portion of your portfolio in the aerospace industry. And one of the best ways to gain broad access to any sector is using exchange-traded funds. So, let us look at a few ETFs you can own today, which will give you access to the aerospace industry. Continue reading "Apple Just Entered the Space Race" →

Tech Stocks - A "Win-Win-Win"?

Posted on by Noah Kiedrowski

Tech stocks seem to be eerily appropriate for the famous “win-win-win” term coined by Michael Scott on the sitcom The Office. Tech stocks are in the sweet spot and continue to appreciate regardless of the COVID-19 backdrop and feed into every industry in today’s economy. Whether COVID-19 is on the rise or on the decline, technology underpins the stay-at-home economy and the so-called back to a normal economy. And now more than ever, technology serves an integral part of every slice of the economy that these stocks have remained strong despite the massive rotation into value stocks. Whether the COVID-19 backdrop is good, bad, or the market is pricing-in putting the pandemic behind us, the technology sector is in a “win-win-win” situation. Considering many of these names have traded sideways since their September highs and significantly off their 52-week highs, these large-cap tech companies may be worth a look in this frothy market. Stocks such as Apple (AAPL), Amazon (AMZN), Alibaba (BABA), Facebook (FB), and Google (GOOGL) fit his profile.

The Value Rotation and Stagnant Technology

The market has witnessed a massive sea change as the prospects of a large-scale vaccination program in the US coming to fruition. The Dow Jones and S&P 500 have rallied to all-time highs while recovery and value names have recaptured much of their lost market capitalization due to COVID-19. Meanwhile, many technology stocks that powered the market higher in the initial stages of this post-COVID-19 rally have stalled out. Once the value rotation began, many high-quality technology names fell from their highs and have traded sideways since their highs back in September (Figure 1). Continue reading "Tech Stocks - A "Win-Win-Win"?" →