3 Artificial Intelligence (AI) Stocks That Could Go Parabolic
The rapid growth of the artificial intelligence (AI) market drove many stocks to record highs over the past few years. That’s why shares of Nvidia, the chipmaking bellwether of that booming market, surged 2,760% over the past five years.
Some investors might be reluctant to chase those breakneck gains, but plenty of overlooked AI stocks could still go parabolic in the future. Let’s take a look at three stocks that fit this description: Innodata (NASDAQ: INOD), MicroStrategy (NASDAQ: MSTR), and Lumen Technologies (NYSE: LUMN).
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Innodata was once considered a slow-growth IT services and enterprise software company. However, its stock soared from about $1 at the end of 2019 to about $32 today. That massive rally was the result of an AI-driven acceleration in its top line.
Revenue rose 10% in 2023. But in the first nine months of 2024, sales soared 83% year over year to $111 million as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 266% to $20 million. It also turned profitable on the basis of generally accepted accounting principles (GAAP). That explosive growth stemmed from its rollout of generative AI tools for five of the “Magnificent Seven” companies.
For the full year, Innodata expects its revenue to soar in the range of 88% to 92% as more companies adopt its generative AI services. From 2024 to 2026, analysts expect its sales to have a compound annual growth rate (CAGR) of 25% as its adjusted EBITDA experiences a CAGR of 29%.
Those are stellar growth rates for a stock that trades at 4 times next year’s sales and 37 times its adjusted EBITDA. Innodata has already had a great run over the past five years, but it could head even higher as it locks in more big tech companies with its data processing and AI capabilities.
MicroStrategy was once dismissed as a slow-growing enterprise software company, then it started to hoard Bitcoin in 2020. At the end of its latest quarter, it held 252,220 of the digital tokens with a current market value of $19.26 billion. That’s nearly a third of MicroStrategy’s enterprise value of $59.1 billion.
The bulls believe MicroStrategy’s hoarding strategy will pay off if the top cryptocurrency’s price skyrockets over the next few years. In theory, the rising value of its Bitcoin holdings could offset the slower growth of its enterprise software business.
However, MicroStrategy is also a generative AI company. Last October, it rolled out MicroStrategy AI, a platform that enables companies to integrate generative AI features into their existing data applications. It expects those new features, along with the transformation of its on-site applications into cloud-based services, to stabilize the growth of its core software business as it accumulates more crypto.
As Tesla Market Capitalization Soars Past $1 Trillion, Dan Ives Calls Musk's Trump Bet 'Poker Move For The Ages: Gene Munster Say It Is 'More Than Just A Meme Stock'
On Friday, the market cap of Tesla Inc. TSLA soared past the $1 trillion mark, a surge attributed to CEO Elon Musk’s bet on President-elect Donald Trump.
What Happened: Following Trump’s victory and his comeback as the 47th U.S. president, Tesla’s stock experienced a sharp rally, propelling Musk’s fortune past the $300 billion mark.
During an appearance on Yahoo Finance, Wedbush analyst Dan Ives praised Musk’s support of Trump as a “poker move for the ages.” He anticipates an expedited autonomous sector, which could be worth $1 trillion alone for Tesla’s AI segment.
See Also: Elon Musk’s Mom Knew He Was A ‘Genius’ By 3 Years Old But Worried He’d ‘End Up In A Basement’
In a separate post, Gene Munster, managing partner at Deepwater Asset Management, noted Tesla’s impressive 44% rally over the past 12 trading days. “This is more than just a meme stock,” he wrote on X, formerly Twitter.
Munster believes that Tesla’s accelerating delivery growth and the long-term opportunity around autonomy will power the fundamentals leading to further price appreciation. “
Why It Matters: Tesla’s stock surged nearly 29% this week following Trump’s victory in the U.S. presidential election, as investors grow hopeful that President-elect’s return to the White House could favor the automaker.
The Tesla CEO was a key political supporter of Trump’s 2024 campaign, reportedly donating over $130 million to aid his re-election.
Trump’s victory speech also praised Musk, dedicating nearly four minutes to call him a “super genius” and highlighting achievements, including SpaceX launches and its expanding satellite internet network.
Musk has also shown interest in leading a proposed Department of Government Efficiency (DOGE) to reduce federal waste. Trump has suggested Musk for the role of “Secretary of Cost-Cutting,” overseeing efforts to trim $2 trillion in federal spending.
Last month, Tesla reported third-quarter revenue of $25.18 billion, reflecting an 8% year-over-year increase. However, the figure fell short of the Street consensus estimate of $25.37 billion, according to data from Benzinga Pro.
Price Action: Tesla shares closed Friday’s session with an 8.19% gain, finishing at $321.22. In after-hours trading, the stock rose further, reaching $322.80, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Tesla
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Ethereum Skyrocket 70% To Reclaim Its Peak Once This Happens, Says Crypto Expert
Ethereum ETH/USD could be on the cusp of a significant rally, according to a well-known crypto analyst, which would see the cryptocurrency skyrocket by nearly 70% to reclaim its all-time high.
What Happened: Guy Turner, the host of Coin Bureau, shared insights with his 2.53 million YouTube followers, suggesting that Ethereum (ETH) might reach its all-time high in 2025, following the anticipated Pectra upgrade.
The Pectra upgrade, expected in 2025, is a two-part hard fork designed to improve Ethereum’s speed, scalability, and usability. Binance highlights that these changes will enable gas fees to be paid with any digital asset, offer larger rewards to bigger validators, and enhance the Ethereum Virtual Machine (EVM).
Turner believes these improvements could be the catalyst Ethereum needs for a breakout, potentially attracting institutional investors. He stated, “ETH has been desperate for a breakout for quite some time. This could be the spark it needs.”
See Also: El Salvador’s Bitcoin Bet Is Paying Off—Here’s How Much The Country Is Up
Currently, Ethereum trades at $2,902, marking a 2% increase for the day. The cryptocurrency’s all-time high was approximately $4,900 in November 2021, and a return to that level would mean a 68% increase from its present value.
Why It Matters: The potential surge in Ethereum’s value aligns with broader market predictions. A recent note from Standard Chartered forecasts a fourfold increase in the digital assets market cap by the end of 2025, driven by anticipated regulatory shifts and mainstream adoption. This aligns with Turner’s prediction, suggesting a favorable environment for Ethereum’s growth.
Additionally, Ali Martinez, another prominent analyst, has expressed bullish sentiments on Ethereum, citing an attractive risk-to-reward ratio. Martinez’s strategy involves setting a stop-loss below $1,880 and targeting a take-profit price of $6,000, further indicating potential upward momentum for Ethereum.
These developments come amid discussions about the potential impact of the Bitcoin Act, which could reshape the U.S. economy by designating Bitcoin as a strategic reserve asset.
Price Action: Ethereum is currently trading at $2,975, up by more than 2.3% over the past 24 hours, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There's A Catch
Steve Madden Ltd. SHOO, a major player in the footwear industry valued at $3 billion, has announced plans to significantly reduce its manufacturing operations in China. This strategic shift is in response to President-elect Donald Trump’s proposed tariffs on Chinese imports.
What Happened: CEO Edward Rosenfeld revealed that the company intends to cut its production in China by half, as reported by CNN. Currently, 70% of Steve Madden’s imports come from China.
The company plans to decrease this to between 40% and 45% over the next year by shifting production to countries like Cambodia, Vietnam, Mexico, and Brazil. This strategy aims to circumvent the potential tariffs, which could reach up to 60% on Chinese goods.
Why It Matters: The decision by Steve Madden to move production is part of a broader response to President-elect Trump’s aggressive tariff proposals.
Trump has suggested imposing a 20% tariff on all imports and even higher rates on Chinese goods. This has raised concerns among companies heavily reliant on Chinese manufacturing, such as Apple Inc. and others, about potential cost increases that might be passed on to consumers.
Furthermore, a study by the National Retail Federation warns that these tariffs could lead to a significant reduction in consumer spending, potentially costing Americans $78 billion annually. The study highlights the impact on essential items like apparel and appliances, which could see price hikes, disproportionately affecting low-income families.
Economist Justin Wolfers thinks that the anticipation of these tariffs might drive a surge in consumer spending on big-ticket items in the short term as people rush to make purchases before the tariffs take effect.
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ALLR DEADLINE: ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Allarity Therapeutics, Inc. Investors With Losses in Excess of $100K to Secure Counsel Before Important Deadline in Securities Class Action – ALLR
NEW YORK, Nov. 09, 2024 (GLOBE NEWSWIRE) —
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Allarity Therapeutics, Inc. ALLR between May 17, 2022 and July 19, 2024, both dates inclusive (the “Class Period”), of the important November 12, 2024 lead plaintiff deadline.
SO WHAT: If you purchased Allarity securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Allarity class action, go to https://rosenlegal.com/submit-form/?case_id=27420 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than November 12, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) defendants had overstated the Dovitinib, Allarity’s drug candidate which treats renal cell carcinoma, new drug application’s (“NDA”) continued regulatory prospects; (2) Allarity and three of its former officers had engaged in illegal, illicit, and/or otherwise improper conduct in connection with the Dovitinib NDA and/or the Dovitinib-DRP premarket approval application (“PMA”); (3) the foregoing misconduct subjected Allarity to an increased risk of regulatory and/or governmental scrutiny and enforcement action, as well as significant legal, monetary, and reputational harm; (4) following Allarity’s announcement that it was, in fact, being investigated for wrongdoing in connection with the Dovitinib NDA and/or the Dovitinib-DRP PMA, Allarity downplayed the substantial likelihood that an enforcement action would result from such investigation; and (5) as a result, Allarity’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Allarity class action, go to https://rosenlegal.com/submit-form/?case_id=27420 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
——————————-
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
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case@rosenlegal.com
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Cohen & Steers Announces Changes to Realty Indexes
NEW YORK, Nov. 8, 2024 /PRNewswire/ — Cohen & Steers, Inc. CNS announced today pending changes to its Global Realty Majors Portfolio Index (GRM) and International Realty Majors Portfolio Index (IRP), effective as of the close of business on November 15, 2024.
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Cohen & Steers Global Realty Majors Portfolio Index (GRM) |
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Removed component (symbol) |
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Charter Hall Group (CHC.AU) |
Daiwa House REIT Investment Corp. (8984.JP) |
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Cohen & Steers International Realty Majors Portfolio Index (IRP) |
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Added component (symbol) |
Removed component (symbol) |
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Charter Hall Group (CHC.AU) |
Daiwa House REIT Investment Corp. (8984.JP) |
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Big Yellow Group Plc (BYG.LN) |
Cofinimmo SA (COFB.BB) |
These free-float adjusted, modified market capitalization-weighted total return indexes of selected real estate equity securities are quoted intraday on a real-time basis by the Chicago Mercantile Exchange. The Indexes’ modified capitalization-weighted approach and qualitative screening process emphasize companies that Cohen & Steers believes are leading the securitization of real estate globally.
The Indexes can be used as indexing benchmarks, stock selection universes, underlying indexes for derivative instruments or performance benchmarks. All index weightings are independently calculated by Standard & Poor’s.
Website: https://www.cohenandsteers.com/
Symbol: CNS
About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.
View original content:https://www.prnewswire.com/news-releases/cohen–steers-announces-changes-to-realty-indexes-302300243.html
SOURCE Cohen & Steers, Inc.
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Jack Dorsey's Block Gave Employees 'Stern Warnings' To Not Talk About Jay-Z Amid Layoffs: Report
Employees at Block, Inc. SQ, the fintech company led by Jack Dorsey, have been reportedly directed not to discuss board member and rapper Shawn Carter, better known as Jay-Z.
What Happened: Block employees were given “stern warnings” by management against mentioning Jay-Z on internal company forums. The rationale behind this directive is yet to be clarified, reported Fortune, citing three employees.
The directive to avoid mentioning Carter was given last month.
This occurred around the same time when some employees began questioning Carter’s position on Block’s board.
This was due to the rapper’s long-standing friendship with rapper and entrepreneur Sean “Diddy” Combs, who is currently in prison awaiting trial on serious charges.
After issuing the warning about discussing Carter, Dorsey conducted a virtual all-hands meeting, during which he reportedly disabled the option for employees to ask questions anonymously.
Block laid off several employees from music streaming service Tidal’s staff last week, with more cuts anticipated across other Block entities, including Square and CashApp.
Layoffs also took place at Square and TBD, Block’s developer platform, which is now slated for closure, the report noted.
Why It Matters: In 2021, CEO Dorsey’s Block secured a controlling interest in the Tidal, which Carter owned. Dorsey and Carter are reported to have a close personal friendship.
In the same year, Dorsey and Jay-Z launched a Bitcoin-focused non-profit aimed at advancing the cryptocurrency, with an initial focus on Africa and India.
They contributed 500 BTC to support the initiative. At the time, Bitcoin was priced at $47,504, so a $1,000 investment would have bought 0.021 BTC.
The directive against discussing Carter comes at a time when Block is facing significant challenges. The company’s shares took a hit after mixed third-quarter results reported after Thursday’s closing bell.
Block reported quarterly earnings of 88 cents per share, surpassing the analyst consensus of 87 cents.
However, its quarterly revenue totaled $5.97 billion, falling short of the expected $6.24 billion, though it represents an increase from $5.617 billion in sales during the same period last year.
Price Action: Block’s shares closed Friday’s trading down 0.94% at $74.56. In after-hours trading, the stock dropped further, reaching $74 at the time of writing, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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Trump Presidency Could Be A Boon For Small Cap Stocks: Fundstrat's Tom Lee Sees Them Doubling Over Next 2 Years
Small-cap stocks could see a significant boost under President-elect Donald Trump’s presidency, potentially doubling their value over the next two years, according to Tom Lee, head of research at Fundstrat.
What Happened: During an interview with CNBC on Friday, Wall Street strategist Lee expressed optimism for small-cap stocks, attributing this to Trump’s re-election.
The election results have already caused a surge in stocks as traders anticipate a new economic agenda, relaxed regulations, and tax cuts.
Lee believes there’s still significant potential for growth. He noted that the index is currently trading at around 10 times forward median earnings, a lower valuation than the S&P 500, which is trading at approximately 17 times forward earnings.
See Also: Jim Cramer Calls Trump’s Return To White House A ‘Huge Win For The Stock Market’
“I do think there’s still a lot of upside,” Lee stated, adding, “So I think small-caps could, over the next couple of years, outperform by more than 100%.”
Why It Matters: Lee’s predictions align with his previous forecast of a significant market rally following Trump’s victory. The surge is attributed to renewed investor confidence and a more business-friendly environment.
However, economists have warned of potential inflationary pressures following a Republican victory. These concerns stem from higher tariffs, a swelling budget deficit, and restricted immigration policies.
Previously, it was reported that the rising U.S. Treasury yields and the strengthening of the dollar following Trump’s return to the White House could potentially undermine the Federal Reserve’s efforts to reduce interest rates.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Flickr
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