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Snowflake Inc.'s stock surged post-FQ3 earnings but remains overvalued based on limited AI revenue and decelerating growth. The company is only targeting 23% YoY growth in FQ4 despite the investor excitement. The stock's rally is driven by AI hype and multiple expansions, pushing the valuation similar to pre-IPO Databricks with up to double the growth rates. Investors should consider cashing out of Snowflake due to downside risks on a stock trading at 15x FY26 revenues, especially as Snowflake's growth continues to point to decelerating. After a rough patch that saw  Snowflake, Inc.  ( NYSE: SNOW ) shares collapse over 50% from the yearly highs, investors came rushing back into the stock following a promising  FQ3 earnings report . The AI data company highlighted  some bright spots in the quarter to overcome past issues with data security. My  investment thesis  remains Bearish on the stock after the big rally back up to $175 and the related rich valuation....

Update - Nov. 22, 2024 Moderna has been hit hard following the last couple of years on waning demand for Covid vaccines while the biotech over spent on new drug development. Now, the stock appears to have been hit too hard. RFK is unlikely to alter vaccine sales by a dramatic amount.  -Moderna (NASDAQ:MRNA) is up ~8% in Friday trading after company management said that Robert F. Kennedy Jr. potentially heading up HHS under the next Trump administration is not likely to lead to vaccines being pulled from the market. -In a note, Jefferies analyst Michael Yee noted that while Kennedy Jr.'s nomination may have caused some investors anxiety, it is highly unlikely he would do "anything draconian." Moderna's management made the comments Nov. 21 at the Jefferies London Healthcare Conference. -Jefferies has a hold rating on the stock with a $50 price target (~31% upside based on Nov. 21 close). Original article posted on Sept. 13 Moderna, Inc. slashed its R&D budget by $1....

 Update - Nov. 21, 2024 The problem with Trump Media raising a bunch of cash is that management doesn't have any clear plans for building the media company. Now signs continue to suggest Trump Media is moving into the crypto segment via either building a crypto payment platform, or the purchase of Bakkt Holdings (BKKT). -Trump Media & Technology has recently filed a trademark application with plans to establish a cryptocurrency payment platform. -A report in The New York Times said that the Nov. 18 application from the parent company of social media platform Truth Social is looking to trademark the name TRUTHFI. Original article posted on Nov. 6 Trump Media & Technology Group Corp. stock rallied on Donald Trump winning the While House again, but the business fundamentals remain weak with no meaningful improvements. The media company reported weak Q3 '24 results with minimal revenues. The company lacks a clear business plan and unique offerings, with Truth Social and Tru...

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 » Update - Nov. 18, 2024 Baird ups Roku to a PT of $90, up from $70. . -Analysts at Baird upgraded Roku (NASDAQ:ROKU) to "outperform" from "neutral," and the research firm thinks the company's shares are not reflecting the meaningful changes in the business and the attractive long-term opportunity. -Baird noted that ROKU is down 25% so far this year compared to the benchmark S&P index's 23% rally. But their optimism for the upside is pegged on increasingly favorable industry trends, positive developments in the company's strategy, and encouraging early indicators in recent results. -They expect the company to deliver sustained double-digit platform revenue growth going ahead and continued margin expansion, driving upside across estimates and valuation over time. -ROKU has a PT of $90, hiked from $70, implyi...

  Arm Holdings' stock remains overvalued due to AI hype, despite only 5% YoY sales growth and limited AI chip market participation. The company's revenue growth is constrained by volatile license revenues and slow adoption of the newer Armv9 architecture, limiting significant royalty rate increases. Arm's massive margins and strong profits are overshadowed by a small revenue base and the need for substantial growth to justify current valuations. The stock trades at over 63x FY26 EPS targets, with a fair value below $100. 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 » ARM Holdings plc  ( NASDAQ: ARM ) continues to report mixed results in the AI chip race, while the company doesn't really participate as viewed by the market. The company just recorded a quarter where sales hardly grew YoY despite a big beat. My  investment thesis  remains ultra-Bearish on the stock,...

Updated - Nov. 15, 2024 Despite leadership in AI and robotaxis in China, Baidu trades right back down to historical support around $80. The stock has now dipped $30 following the volatile move on hope for the Chinese government to fully stimulate the economy.  Update - Aug. 22, 2024 Baidu didn't report anything impressive from robotaxis or AI yet during Q2. The big robotaxi ramp up in Wuhan hasn't started yet. The stock did hold the key $80 support level.  Q2 Non-GAAP EPADS of $2.89 beats by $0.29. Revenue of $4.67B (flat Y/Y) misses by $70M. Adjusted EBITDA was $1.26 billion and adjusted EBITDA margin was 27%.  Adjusted EBITDA for Baidu Core was $1.19 billion and adjusted EBITDA margin for Baidu Core was 32%. Free cash flow was $862 million, and free cash flow excluding iQIYI was $810 million. Original article posted on Aug. 18 Baidu trades at levels first seen in 2011 despite strong growth catalysts. The Chinese search leader will report Q2 earnings on August 22, reveal...

Update - Nov. 12, 2024 SoundHound reports after the close with the following expectations: Consensus EPS Estimate is -$0.07 (+22.2% Y/Y)  Consensus Revenue Estimate is $23.03M (+73.2% Y/Y The big growth comes from the Amelia deal, but the market typically latches onto the reported growth rate, regardless of whether the growth was organic. The stock has already surged to over $7.50 and a market cap of $2.7 billion despite recent guidance for 2025 revenues of $150 million, up from only $103 million prior to announcing the deal.  Original article posted on Aug. 9 SoundHound AI reported unimpressive results with minimal revenues, despite the hype surrounding automotive and restaurant AI voice deals. The acquisition of Amelia raises concerns due to its low valuation, debt assumption, and potential limited growth, distracting from existing opportunities. The stock will still trade at 12x 2025 sales targets, while Amelia will cut organic growth rates. SoundHound AI, Inc.  ( NASD...

Update - Nov. 8, 2024 MoneyLion appears headed straight back to $100 after a strong Q3. The fintech guided up Q4 revenue growth to 34%.   Original article posted on July 23 MoneyLion faces CFPB concerns over paycheck advances with a proposal for new interpretive rules. The financial regulator is focused on the high costs of employer-partnered earned wage products, allegedly not properly disclosed. MoneyLion's Instacash program has apparently been a big part of its growth. The stock trades at 6x EBITDA. After a massive snapback rally following a reverse split,  MoneyLion   ( NYSE: ML ) has again hit turbulence due to regulators. The fintech has reported strong numbers in the last year despite headwinds in the enterprise business. My  investment thesis  remains  ultra-Bullish on the stock, trading at a bargain-basement price after the recent dip. Read the full article on Seeking Alpha.  Disclosure: Long ML. Please review the disclaimer page for more det...

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 » Update - Nov. 8, 2024 Pinterest reported pretty solid Q3'24 numbers. The dip back to the lows around $30 makes no sense. The market is disappointed in guidance, but Pinterest still expects at least 15% growth.  -Q3 Non-GAAP EPS of $0.40 beats by $0.06. -Revenue of $898.37M (+17.7% Y/Y) beats by $1.93M. Outlook: For Q4 2024, we expect revenue to be in the range of $1,125 million to $1,145 million vs. consensus of $1.14B, representing 15-17% growth year over year. Original article posted on Nov. 5 Pinterest is set to report Q3'24 results on November 7, with consensus estimates reflecting strong growth. Despite market disappointment with original Q3 guidance, the business focus on social commerce and AI tools is driving higher engagement and ad budget gains from major brands. PINS stock is undervalued, trading at 18x 2025 EPS targets,...

  Intel Corporation reported another mixed quarter in Q3, with relatively weak results while the market tries to celebrate earnings beating guidance. The chip company continues to focus on cutting costs and capex, while peers are moving full speed ahead with advanced AI GPUs and increasing foundry spending. The stock shouldn't be bought until Intel has turned around the business due to the stressed balance sheet and cash burn position. 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 » Intel Corporation  ( NASDAQ: INTC )  stock jumped  after finalizing plans to slash thousands of jobs in a move that isn't a positive sign for the business. The once chip giant again  reported mixed results  in a sector with explosive growth. My  investment thesis  remains Bearish on the stock, especially on any major rally above $20. Read the full article on Seekin...