I think the AI trade is nearing a peak and want to diversify. There's this crazy narrative in the market that AI is the only source of growth but I don't think that's true.
A few I like:
– Internet Advertising: APP and RDDT price you don't have to be Meta to put up monster ad revenue growth and neither show any signs of slowing down
– Latam: NU and MELI are both down on Macro and near term profitability concerns that are very temporary. Meanwhile the growth engine at both is not slowing. The macro picture will clear up eventually and margins will expand again for Meli. Also the credit profile risk for Nu is overblown. The next year or two should be great for both.
-American Fintech: FIGR just had a monster quarter. Sequential growth QoQ when cyclicality says origination should be down and YoY growth of 100%. I don't care if not 100% of operations are on 'blockchain'. They are getting there and doing something right to be originating this much volume.
What's your favorite non-AI, non-rocketship based growth stock / story?
byu/thebiggercat instocks
Posted by thebiggercat
3 Comments
APP has better numbers than PLTR (OBVIOUSLY the moat is entirely different and demands a lower multiple) but trades at half the Mcap. I am accumulating.
Buying NOW:CRM at 80:20 based on conviction and that AI is SaaS accretive.
Own some CAT. Energy (Cameco & CAD oil, I wish I could say Bloom). PMs.
Meli. Incredible revenue growth. Loan book is growing nicely, and gives access to customer and business data. Ad earnings as well.
Speaking of macro. Latam has had a huge brain drain/ North American diaspora issue for the last several decades. As the US… does what it’s doing… that brain drain is going to reverse course causing massive latam growth over the coming decades.
Edit – short term… not shareholder friendly because of capex. Long term, years to decades, going to grow revenue, and eventually earnings, as LatAm benefits from an entire generation that would rather live, and spend, in South America than North America.
Curious what peak you are referring to with regards to ai? These companies seem to be laying a several trillion dollar foundation from which to build off of over the next 5 years. Where is the peak?