Out Fox The $treet

Update - Nov. 20  C3.ai still doesn't appear to be riding the AI wave. Job cuts are an opportunity to improve efficiency, but this company should have the growth to make job cuts unnecessary.  C3.ai ( NYSE: AI ) shares erased earlier gains and  fell nearly 6%  on Monday amid a report that the enterprise software company is cutting jobs. The job cuts, which happened across multiple departments, happened due in part to employee performance and cost savings,  Bloomberg  reported . Original article posted on Sept. 7   C3.ai, Inc. stock is falling after the company announced plans to invest more in branding their AI software, prolonging ongoing losses. The company has a large cash balance and positive operating cash flows, but the market is unlikely to reward investments without corresponding revenue growth. The stock is expensive with no appeal until the EV/FY24 sales multiple dips closer to 5x due to the limited growth. The enterprise artificial intellige...

  SoFi Technologies continues to report strong growth but trades at a low valuation, disconnected from its results. The company hiked adjusted EBITDA guidance for 2023 by 16%, yet SoFi now trades lower. The stock trades at only 11x '24 adjusted EBITDA targets, which are equivalent to adjusted profits. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Despite persistently strong growth,  SoFi Technologies  ( NASDAQ: SOFI ) still trades closer to the lows after going public via a SPAC at $10. The digital bank continues to report impressive growth disconnected from the stock movement where every quarterly beat is  sold off. My  investment thesis  remains ultra Bullish on the secular growth story trading at a massive discount. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details. 

Update - Nov. 15 Good sign Luminar has finally hit bottom. The stock has rallied over 13% after the reversal on Nov. 14.  Original article posted on Nov. 10 Luminar Technologies, Inc. faces production start delays at a key partner that limited revenue ramp in 2023. The Lidar company was hit by multiple project delays in the last quarter, contributing to a Q3 2023 miss, though revenues should surge in Q4. The stock trades at a massive discount to the order book with a market cap of only $1.2 billion, making Luminar stock a speculative buy. Out Fox The Street members get exclusive access to our real-world portfolios. See all of our investments  here »   The Lidar sector faces a volatile ramp path due to the implementation of new technologies into auto production requiring years of testing and unpredictable new vehicle launches.  Luminar Technologies, Inc.  ( NASDAQ: LAZR ) is the latest company to get snarled in production start delays of a major auto manufacturer...

  Advanced Micro Devices, Inc.'s Q3 results and guidance initially disappointed the market, but the stock has rallied to multi-month highs. The launch of AI chips could drive the stock to all-time highs, with projected AI revenue exceeding $2 billion in 2024 alone. The stock trades at a base case of only 20x '25 EPS targets, but AI GPU chip sales could provide a substantial boost to conservative targets. After the market initially didn’t like the  Q3 results  and  guidance  from  Advanced Micro Devices, Inc.  ( NASDAQ: AMD ), the stock has suddenly rallied to multi-month highs. The launch of AI chips could send the stock  to all-time highs similar to peer stocks. My  investment thesis  remains ultra bullish on AMD, with investors best to focus on future numbers, not short-term hiccups around product launches. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more detai...

  Novavax, Inc. reported Q3 2023 numbers above consensus estimates based almost solely on grant revenue. The company cut guidance for 2023 revenues and even pushed out a large portion of those revenues to Q1 2024 due to weak COVID vaccine demand. The stock continues to decline as the company remains disconnected from the market demand for COVID vaccines. Novavax, Inc.  ( NASDAQ: NVAX ) continues to trend lower as the biotech still sounds somewhat disjointed from the market demand for COVID vaccines. Ironically, the company announced another cost reduction plan, a sure sign of the actual direction of vaccine demand  is much lower. My  investment thesis  remains Bearish on NVAX stock, even at the multi-year lows near $6. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details.