Out Fox The $treet

Updated - July 8, 2026 The chip company Baidu controls is now set to be more valuable than all of the parent company. Baidu only has a market cap of $40 billion while the company has a net cash position of nearly $30 billion. The valuation is just wild.  -Baidu's (BIDU) Hong Kong-listed shares surged about 7% on Monday after reports that its AI chip unit, Kunlunxin, is targeting a Hong Kong IPO at a valuation of about $50B. -Kunlunxin is seeking the valuation in its planned IPO and has asked prospective investors to commit to purchasing the company's AI chips at a value equivalent to three to seven times their intended IPO share subscription, according to The Information report. -Baidu (BIDU) disclosed in January that Kunlunxin had confidentially filed for a Hong Kong listing as part of a planned spin-off while the parent company retains a controlling stake. Founded in 2011 as Baidu's in-house AI chip division, Kunlunxin has expanded beyond supplying Baidu (BIDU) to serving...

  CoreWeave remains the leading neocloud with a $100 billion revenue backlog, yet trades at a depressed valuation due to debt and competitive fears. Meta Platform's AI cloud ambitions are misunderstood; META’s long-term capacity needs likely reinforce, not threaten, CRWV’s revenue pipeline. CRWV trades at only 2x 2028 EV/S target, with EBITDA forecasted at 70% of revenues and significant cash generation underway. I remain ultra Bullish, viewing the current weakness and sub-$45 billion market cap as a compelling entry point given rapid growth and a strong backlog. CoreWeave, Inc.   ( CRWV )   remains the leading neocloud, but the market hasn't given the company a lot of benefit for the booming backlog. The AI cloud company has investors fearful of large debt loads, and now a  major customer potentially entering the AI space is seen as another negative. My  investment thesis  remains ultra Bullish with the market likely misinterpreting the competitive threat....

Rivian Automotive launched the R2, marking a pivotal shift toward more affordable EVs and reigniting sales momentum. The EV manufacturer raised 2026 delivery guidance to 65K–70K vehicles, reflecting robust Q2 deliveries and improved production outlook. The stock trades at only ~2x 2026 sales targets, with valuation supported by strong positioning in the $50K midsize SUV/Crossover segment. The investment thesis remains ultra Bullish, emphasizing accelerating production, growing addressable market, and positive delivery surprises. Rivian Automotive Inc.  ( RIVN ) finally launched the R2 and the momentum in the company appears to have finally turned. The EV manufacturer now has a more affordable vehicle to sell, leading to a long  period of sales growth ahead. My  investment thesis  remains ultra Bullish on the stock still trading within the yearly range despite the vastly improving story. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. ...

Update - July 1, 2026 BAM agreeing to expand the partnership by $20B is just massive. BE ended down on the day due to irrational fears related to Meta Platforms (META) exploring entering the market to sell unused compute capacity. The market should fucus more on the demand for their data center power solution.  -Bloom Energy (BE) up 12% post-market Tuesday after announcing an ​expansion of its partnership with Brookfield Asset Management (BAM) to finance power ‌projects for AI infrastructure from the previously announced $5B to $25B, a fivefold expansion since October 2025. -The companies said the expanded partnership "reflects strong and sustained demand from hyperscalers and AI infrastructure developers for fast, reliable, and community-friendly power," as they continue to advance a new model for AI factories that integrates power, compute, data center infrastructure, and capital from the outset. Originally posted on May 21 Bloom Energy has secured major AI data center cont...

Update - June 16, 2026 Mobileye  seems very late to the robotaxi business. The  frustration over the last couple of years was the lack of leadership in the autonomous vehicle shift.  -Mobileye ( MBLY ) on Tuesday said it plans to launch its own autonomous ride-hailing service in a U.S. city in 2027, expanding beyond supplying self-driving technology to operating robotaxi fleets directly. -The company aims to deploy around 100 driverless vehicles initially, with plans to scale to about 17,000 vehicles over the following five years. Original article posted on Apr. 4 Mobileye Global remains in a transitional phase, struggling to capture leadership in the fast-moving robotaxi and autonomous vehicle markets. The company has a promising $24.5B eight-year revenue pipeline, but annual revenues remain stagnant near $2B, with 2026 guidance projecting flat to 5% growth. The recent $900M Mentee Robotics acquisition pushes MBLY into humanoid robotics, but the company faces formidable ...

Update - June 12, 2026 Not sure how the Roku OS works inside another media company, but a buyout could be a good opportunity to cash out on big gains. The stock wasn't overly cheap anymore.  -Roku Inc. (ROKU) soared 20% on a report that the streaming video platform is in discussions to sell itself. -Roku has been in talks with at least one US media company about a potential deal, according to a Bloomberg report on Friday, which cited people familiar with the matter. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Original article posted on May 2 Roku, Inc. has surged to $125 as platform revenues grew at a robust 28% YoY clip in Q1'26, driving bullish sentiment. ROKU's business mix shift to high-margin platform revenue (now 90% of total) has yielded a 165% YoY jump in adjusted EBITDA. Management targets $5.5B in revenue and $675M in EBITDA in 2026, with free cash flow expected...

MP Materials Corp. leads rare earths mining outside China, with robust existing operations and ambitious expansion targets. MP targets $650 million adjusted EBITDA, driven by scaling NdPr and magnet capacity, with upside from higher NdPr prices and recycling. The stock is more attractive on dips to $50, equating to 15x EBITDA targets, though execution risks remain significant. MP Materials Corp.  ( MP ) is a leader in rare earths mining outside of China. The company already has a sizable business, but the stock has already reached levels with a similarly sizable valuation for the  opportunity in the near term. My investment thesis is more Bullish on the stock after the recent dip to $50 based on long-term valuation targets. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - June 8, 2029 Based on news out of WWDC 2026, Apple continues to fail to deliver a functioning AI experience for the iPhone. The Siri AI now plans to work with the Google Gemini LLM on a private cloud, but the system won't reach Beta testing until later this year.  Deepwater analyst Gene Munster  -Craig says Siri AI in beta later this year, which explains the sell off. Investors wanted it in September. That means the real version is likely early to mid 2027. Funny that the stock actually ticked up 0.5% on the "beta later this year" update given while it's later than what they wanted, it is at least a date that investors can focus on. The stock trades at 35x FY26 EPS targets while the company still has no real AI product.  Original article posted on Apr. 29  Apple Inc. faces a challenging transition as Tim Cook exits and John Ternus assumes the CEO role. The iPhone replacement cycle appears to be ending with the March quarter, raising concerns about future gro...

Updated - June 3, 2026 Nu Holdings  hit a new 52-week low on the CFO change, but the stock rebounded pretty big on the hiring of a 30-yr veteran from Visa. The stock was cheap when trading at $19, much less below $12 now.  -Nubank ( NU ) has appointed Rob Livingston as chief financial officer, effective July 13, 2026. -Current CFO Guilherme Lago will transition to special advisor. Original article posted on May 19 Nu Holdings reported Q1 revenues up 42% FXN to $5.3B, but the stock had a post-earnings dip driven by higher credit losses. The digital bank reported a credit loss increase attributed to seasonality and portfolio growth, not asset quality deterioration; NPL ratios remain stable. NU trades at a valuation far below its >30% projected growth, offering a compelling entry point amid market overreaction to credit risks. The stock trades at just 10x '27 EPS targets while the fintech has a major catalyst with the entry into the U.S. market. Looking for a portfolio of idea...

Update - May 28, 2026   Red Cat is now up 40% on beginning production of the USVs, though no news on contracts. These boats cost upwards of $1M each. Also, the drone sector is jumping on news Trump is pushing for equity stakes in drone companies, though ironically shareholder dilution isn't bullish.  -Blue Ops Ramps into Full-Rate Production of U.S.-Built Variant 7, Advancing Red Cat’s Autonomy Stack Across Air, Land and Sea Original article posted on Apr. 21 Red Cat Holdings is positioned for significant growth in defense drones and robotics, with an unofficial 2026 revenue target of $170 million. The company is ramping up USV and drone production, targeting multi-billion-dollar opportunities, but refrains from formal guidance until government contracts are secured. Recent NATO-aligned Black Widow drone orders and robust cash reserves ($168 million) support operational expansion and future upside. Key risks include high competition and uncertainty in USV order flow; war de-es...

Reddit, Inc. has retraced its gains as initial AI and user growth enthusiasm faded. The social media company has more normalized growth, with logged-in users only growing 7% YoY in Q1'26 and key U.S. users reporting sub-10% growth. RDDT's ability to capture a larger share of the AI opportunity is a key forward driver, but the company isn't expected to see any material increase in data licensing fees. The stock is increasingly becoming more attractive at 20x forward EPS targets with more normalized earnings. Reddit, Inc.  ( RDDT ) made a complete roundtrip the last year as the original excitement over AI and user growth collapsed. The stock is no longer expensive, with the valuation more reasonable now and potentially very  attractive with the social media company grabbing a larger share of the AI pie. My  investment thesis  is turning more Bullish on Reddit. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer...

Update - May 20, 2026 Nebius is paying $2.6B for energy supplies over the next 10 years via systems from Bloom Energy, but isn't clear on how much Bloom Energy collects since it's only installed capacity of 328 MWs. The chart looks challenged here failing to top the recent highs.  -Bloom Energy (BE) up 10.9% in Wednesday's trading after artificial intelligence infrastructure provider Nebius (NBIS) disclosed it entered into a fuel cell capacity agreement with the company worth as much as $2.6B in total monthly services fees. -In a 6-K filing, Nebius (NBIS) said on May 14 it entered into a master fuel cell capacity agreement and related system orders with Bloom Energy (BE) in which it will purchase the capacity and associated electricity generated by the power supply systems, and Bloom will install, operate and maintain the power supply systems. -The power capacity being provided under the agreement is expected to come in three phases, each with a supply term of 10 years, and...

Update - May 7, 2026 Still blown away that the 2026 revenue target isn't even 50% of the revenue potential of the 2,000 delivery robots placed in service at the end of 2025, much less the opportunity to expand and the addition of hospital robots. -Q1 Non-GAAP EPS of -$0.50 beats by $0.01. -Revenue of $3M (+581.8% Y/Y) misses by $0.03M. -The Company is reaffirming its 2026 financial guidance of approximately $26 million in full year revenue (consensus at $25.99M); and 2026 Non-GAAP operating expense of $160 to $170 million. Serve Robotics only reported Q1 daily active robots at just 812. The company was only running at 40% capacity.  Original article posted on March 11 Serve Robotics Inc. remains in early-stage scaling, with 2,000 robots deployed but Q4 revenue at only $0.88 million. SERV's current per-robot revenue is $1,185 per quarter, far below the $7,500 needed to meet its $60–80 million annual revenue goal. Management guided to only $26 million in 2026 revenue, significant...

  Super Micro Computer continues to see robust AI demand and innovative infrastructure products outweigh recent internal and external controversies. SMCI posted a revenue miss in FQ3'26 due to data center delays but exceeded earnings targets, with gross margins rebounding to 9.9% (10.1% non-GAAP). Management maintains FY26 revenue guidance near $40 billion and is rapidly expanding manufacturing capacity, targeting far over $100 billion in annualized output. The stock only trades at ~10x conservative EPS targets with a base case for far higher EPS targets based on the revenue capacity and normalized gross margins. Super Micro Computer, Inc.  ( SMCI ) has been in the hot seat the last couple of years due to internal and external employee actions, but the company always seems to come out strong. Due to overwhelming AI demand and compelling AI  infrastructure products, customers appear to quickly move beyond ethical concerns. My  investment thesis  remains ultra bul...

Update - May 7, 2026 CoreWeave reports backlog surges to nearly $100 billion. Solid quarter, but the neocloud remains in the early phases of growth. CoreWeave has plans to grow 8x by 2030 with 8 GW of power versus only 1 GW to end Q1.  The stock has finally rallied off the lows, but the stock still has plenty of resistance above $140.  Update - April 9, 2026 CoreWeave could have a backlog approaching $90 billion now after signing a new $21 billion deal with Meta Platforms. The neocloud guided to Q1'26 revenue of up to $2 billion, so the backlog starting point is $85 billion plus what additional unannounced deals contribute to the backlog.  -CoreWeave shares rose 7% in premarket trading Thursday after the company announced an expanded long-term agreement with Meta Platforms (META) to provide AI cloud capacity through December 2032, valued at about $21B. -The deal builds on an existing partnership and will support Meta’s AI development, with the company using CoreWeave’s pl...