Out Fox The $treet

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...