Let’s step back for a second. SoundHound AI has been buzzing ever since it posted those blockbuster quarterly results. The kind of numbers that make you think, “Is this the next Apple?” And yes, while the stock has rocketed recently, it’s still down about 20% for the year-because let’s be honest, who doesn’t like a little drama with their portfolio?
This vigorous climb of Rumble stock appeared to be inspired by the speculative whispers about its foray into the realms of artificial intelligence. Initial propulsion came swiftly, born of an unshackled fervor, yet even as the echoes of the day’s trade came to a conclusion, the rally subsisted, albeit with a softened charge. Here, one discerns an undercurrent of hopes and ambitions speaking of a future touch with AI, disguised beneath the veneers of the market’s ephemeral ebullience.
Nvidia, a manufacturer of silicon, currently stands at $4.3 trillion, a figure seemingly detached from any necessary connection to the production of useful things. Microsoft, a purveyor of software and cloud services, follows at $3.9 trillion, and Apple, the maker of fashionable devices, at $3.1 trillion. These valuations, while remarkable, are not guarantees of enduring strength, and should be regarded with a degree of…caution.
Allow me to introduce four such stocks, each with a future as promising as a sunny forecast and valuations that don’t require you to sell the family silver. Here’s a rundown of who’s who in the growth stock zoo, and which might find a cozy spot in your long-term portfolio.
Ladies and gentlemen, behold the crafting of a deal as tricky as a catfish in a coffee maker! Northern Data’s shareholders will be seeing a little stipend in the form of 2.319 gallant Rumble shares for each Northern share they possess. This leaves Northern gentlesmen with a golden Colorado-sized slice-about 33%-of the shiny new company fortress. Meanwhile, Rumble keeps the old hat-as their shareholders stay atop the welcoming committee.
But what is this “growth” they speak of? A mirage, perhaps, conjured by the alchemists of Wall Street. These companies, it is said, will generate billions in incremental cash flow, a promise as fleeting as a shadow in a desert. The devil, one might imagine, is already drafting the fine print.
So how does this circus act come together? Well, for starters, Ethereum needs to flex its muscles and smash through those pesky 2021 highs. “Once ETH breaks this high,” he says, “ETH has officially gone onto a bull market.” And until then, talk of Dogecoin blasting off to infinity sounds less like prophecy and more like wishful thinking fueled by Reddit memes. 🚀😂
Enter Brad Erickson, RBC Capital’s very own Nostradamus of numbers. He took his price target and gave it a good ol’ fashioned raise, bumping it from $5 to $6.50 per share. Now, don’t get too excited-he didn’t exactly light the “Buy” signal flare. Nope, he kept his rating at “sector perform,” which is analyst-speak for “eh, maybe hold onto this one unless you’ve got nothing better to do.” But oh, the man had some bullish musings tucked into his research note. And by “bullish,” I mean he sounded about as optimistic as a guy who just found out his ex-wife remarried someone richer.
Enter Matthew Miller, CFRA’s resident oracle of doom-or maybe just another guy with too much caffeine in his system. He downgraded MP Materials from “Strong Buy” to “Buy,” which sounds like moving from a ten-course feast to a slightly smaller buffet. BUT WAIT! He also cranked up the price target from $68 to $88 per share, as if to say, “Sure, I’m slapping you around, but hey, there’s gold in them thar hills!”
Back in 2022, Adobe (NASDAQ: ADBE) made a bid to snap up Figma for a cool $20 billion, looking to add it to their growing empire. The regulators had other ideas, though, and put the kibosh on the deal. Now, Figma’s a free agent, floating on the market like a lone shark in a sea of minnows.