As football’s greatest spectacle comes to North America, our cartoonist creates a heartwarming narrative around the Fifa president Buy a cartoon | David’s favourite works of 2025 And his latest book, Chaos in the Box: get it now Continue reading...
As football’s greatest spectacle comes to North America, our cartoonist creates a heartwarming narrative around the Fifa president Buy a cartoon | David’s favourite works of 2025 And his latest book, Chaos in the Box: get it now Continue reading...
JuSun/iStock via Getty Images After such a large rally, the rational follow-up would be to ask: Why invest in Applied Optoelectronics ( AAOI ) here, instead of waiting for another pullback? Simply put, the reason is that the story is now more likely to be one of future earnings rather than multiple expansion. After all, Nvidia ( NVDA ) extended the demand runway for 800G and 1.6T optics at its GTC...
JuSun/iStock via Getty Images After such a large rally, the rational follow-up would be to ask: Why invest in Applied Optoelectronics ( AAOI ) here, instead of waiting for another pullback? Simply put, the reason is that the story is now more likely to be one of future earnings rather than multiple expansion. After all, Nvidia ( NVDA ) extended the demand runway for 800G and 1.6T optics at its GTC 2026 conference. Furthermore, the company is in the middle of an incredible order flow with hundreds of millions of dollars in orders, while demand appears to be stronger than capacity into at least mid-2027. All it takes is solid execution to see today's price justified extremely quickly. Nvidia Has Extended AAOI's Runway Some of the major takeaways that were derived from Nvidia's GTC 2026 include the fact that Nvidia reaffirmed pluggable optics' importance as part of their tech lineup for sure up to 2027. The worries about optics with respect to CPO and possible disturbance for AAOI, for instance, have turned out to be rather overrated because Nvidia explicitly said that copper remains the king of scale-up networking. This is key since the hyperscalers still need immense amounts of 800G and 1.6T transceivers to build their next generation of AI factories. Already, AAOI has disclosed more than $324 million in orders and sees its revenues surpassing $1.1 billion in 2026 . Perhaps even more interestingly, management has mentioned that customer demand exceeds manufacturing capacity into mid-2027. Applied Optoelectronics Website Second-half 2026 looks like an extremely strong period for AAOI, especially as its financial profile becomes increasingly more impressive. The company continues to deliver on revenue, as Q1 revenues jumped to a record $151.1 million (+51% YoY), while data center revenue grew by 154% to $81.4 million . The most important takeaway from the revenue figures, however, is that 800G revenue accounted for only $4.6 million, despite the shipments starting. In ...
Pakorn Supajitsoontorn/iStock via Getty Images A patient waits for a favorable entry into a business that delivers a strong data-model moat, rides the AI tailwinds, yet shows significant risk-reward balance, and seems to be turning finally in favor of Tempus AI, Inc. ( TEM ). I have been covering the stock since July 2025. It started with a Hold , called a Sell in October on valuations, and revert...
Pakorn Supajitsoontorn/iStock via Getty Images A patient waits for a favorable entry into a business that delivers a strong data-model moat, rides the AI tailwinds, yet shows significant risk-reward balance, and seems to be turning finally in favor of Tempus AI, Inc. ( TEM ). I have been covering the stock since July 2025. It started with a Hold , called a Sell in October on valuations, and reverted to a Hold again in December. The stock is down by another ~28% since, while visibility of stable, high-margin, durable revenues has improved. Investors can finally start accumulating Tempus AI at the current risk-reward setup. Valuations are finally well below the levels we had in July last year (indicated forward EV/Revenue multiples in the coverage chart below), while the business looks far more ready to deliver on its product strength, which was always promising. Analyst's Ratings and EV to forward revenue at each call - TEM (Seeking Alpha) Multiple Compression, Business Expansion Since my Hold call in December, the multiple compression (forward EV to revenue terms) has been as stark as during the length of my earlier Sell call. Currently at ~5.7x forward revenue, that compression seems like a true valuation normalization given that revenue revisions have not been drastically negative in the past 6 months. The expected revenue for 2026 is ~$1.59b, backed by management's own guidance of ~$1.59-$1.6b for the full year. Reading Past Obvious Weaker Numbers One of the potential reasons why the valuations have compressed and the stock remains lackluster could be a couple of headline weaknesses seen in the Q1 numbers. First, revenue seems to have fallen sharply from 75-90% YoY growth ranges seen in the prior quarters to the mid-thirties. This is easier to explain given the comps—the 2025 prints were not organic; they were inflated by the Ambry consolidation and by hereditary share gains. Even as per the Q1 commentary, oncology's headline ~54% Q1 growth falls to ~7% once Ambr...
Copenhagen Infrastructure Partners (CIP) has announced a partial divestment of its Devilla battery storage project, transferring minority stakes to the Scottish National Investment Bank and Nuclear Liabilities Fund. The 500MW Devilla facility, currently in construction, is poised to become one of Europe’s largest battery energy storage systems upon its commissioning in 2028. This project, strategi...
Copenhagen Infrastructure Partners (CIP) has announced a partial divestment of its Devilla battery storage project, transferring minority stakes to the Scottish National Investment Bank and Nuclear Liabilities Fund. The 500MW Devilla facility, currently in construction, is poised to become one of Europe’s largest battery energy storage systems upon its commissioning in 2028. This project, strategically located in Kincardine, Scotland, aims to enhance grid stability and support the integration...
NVDA's 11.9% YTD gain trails chip peers, but AI data center demand, the Blackwell ramp-up and a lower P/E keep the upside case alive, backed by strong quarterly results.
NVDA's 11.9% YTD gain trails chip peers, but AI data center demand, the Blackwell ramp-up and a lower P/E keep the upside case alive, backed by strong quarterly results.
NVDA's 11.9% YTD gain trails chip peers, but AI data center demand, the Blackwell ramp-up and a lower P/E keep the upside case alive, backed by strong quarterly results.
NVDA's 11.9% YTD gain trails chip peers, but AI data center demand, the Blackwell ramp-up and a lower P/E keep the upside case alive, backed by strong quarterly results.
Apple's stock declined almost 2% on the first day of Apple CEO Tim Cook's final Worldwide Developers Conference (WWDC). The reason was more perceived letdown on the artificial intelligence front, which reawakened chatter that Apple won't dominate in the AI era.
Apple's stock declined almost 2% on the first day of Apple CEO Tim Cook's final Worldwide Developers Conference (WWDC). The reason was more perceived letdown on the artificial intelligence front, which reawakened chatter that Apple won't dominate in the AI era.
A selloff on Friday whipsawed investors used to seeing momentum stocks go nowhere but up. They shouldn’t be quick to disregard it as a one-off. Such is the warning from trading desks at Barclays Plc and Goldman Sachs Group Inc., who say crowded positioning, narrow market breadth and the prospect of higher-for-longer interest rates make the stock market more vulnerable to abrupt pullbacks. “All of ...
A selloff on Friday whipsawed investors used to seeing momentum stocks go nowhere but up. They shouldn’t be quick to disregard it as a one-off. Such is the warning from trading desks at Barclays Plc and Goldman Sachs Group Inc., who say crowded positioning, narrow market breadth and the prospect of higher-for-longer interest rates make the stock market more vulnerable to abrupt pullbacks. “All of that creates an environment where factor unwinds can become materially more violent than index-level volatility implies,” Goldman traders including Lee Coppersmith wrote in a note to clients. Friday gave investors a taste of how quickly the tide may turn for the stock market’s biggest winners should sentiment flip. The iShares MSCI USA Momentum Factor ETF lost 6% that day in its sharpest decline since a ‘Liberation Day’ selloff in April 2025. The Nasdaq 100 Index fell 4.8% as traders rushed to dump megacap technology stocks and snap up defensive names. The momentum trade, which involves buying winners in the market and selling the losers, is more crowded on the long end than ever, data compiled by Goldman show. At the same time, the short end remains underowned, the data show, amplifying the risk of a sharp reversal should uncertainty take hold regarding the artificial intelligence trade, the Federal Reserve’s interest rate path or rekindling inflation. Systematic investors may add to the pressure. Commodity trading advisers and volatility-control strategies have ramped up stock exposure to the highest level since February, leaving them vulnerable to forced selling if price swings persist. Volatility-controlled funds may need to cut US stock allocation by roughly 14 percentage points following Friday’s rout, according to Barclays’ head of global equities tactical strategies Alexander Altmann . That would be the biggest one-day de-risking since Feb. 6. Some of the derisking likely happened on Friday, but much of the selling typically takes place with a short-term lag, which ...
The New York Knicks may have lost Game 3 of the NBA Finals, but they're still ahead by a game, and Wall Street has been cheering them on. Shares of Madison Square Garden Sports ( MSGS ), the parent company of the Knicks, have been on a rip since the team clinched a playoff spot in late March, soaring more than 20%. However, the real story here has taken place over the past year, with the stock mor...
The New York Knicks may have lost Game 3 of the NBA Finals, but they're still ahead by a game, and Wall Street has been cheering them on. Shares of Madison Square Garden Sports ( MSGS ), the parent company of the Knicks, have been on a rip since the team clinched a playoff spot in late March, soaring more than 20%. However, the real story here has taken place over the past year, with the stock more than doubling in value and beating many market benchmarks. Bing Bong! The factors boosting the share price go beyond the Knicks' championship, though the "first time since 1999" does make a good headline. Fans are increasingly prioritizing live events over digital consumption, seeking tangible and communal experiences that cannot be replicated by a screen. This is especially true among higher-earning consumers, who are continuing to shell out big bucks on live sports and concerts. This has all led to high-margin growth, with explosive premium ticket pricing power, especially with a crew like Jalen Brunson and Karl-Anthony Towns. It has also led to scaled value via sports franchise appreciation, sponsorship deals, rising media rights contracts, and merchandising revenue. MSG Sports ( MSGS ) gets further cuts from the in-game concessions and premium suite licensing sister company from Madison Square Garden Entertainment ( MSGE ), which has seen its stock nearly double over the past year. The success has spread to other James Dolan-controlled properties as well, with shares of Sphere Entertainment ( SPHR ) skyrocketing over 250% since last summer. Corporate structure: Madison Square Garden Sports ( MSGS ) owns both the Knicks and the Rangers, and a new proposal this year excited investors. The spinoff would divide the two teams into separately traded entities, helping to unlock further value typically hindered by holding company dynamics. "During 2025, MSGS stock had an average market cap of $5B vs. a combined team valuation of $11B trading at more than a 50% Dolan discount....
Over the last 7 days, the United States market has experienced a 2.7% drop, yet it has risen by 23% over the past year with earnings expected to grow by 17% annually. In this context, growth stocks with high insider ownership can offer unique insights into potential opportunities as insiders may have confidence in their company's future prospects and are often aligned with shareholder interests.
Over the last 7 days, the United States market has experienced a 2.7% drop, yet it has risen by 23% over the past year with earnings expected to grow by 17% annually. In this context, growth stocks with high insider ownership can offer unique insights into potential opportunities as insiders may have confidence in their company's future prospects and are often aligned with shareholder interests.
MotionIsland/iStock via Getty Images Co-authored by Luuk Wierenga. A massive supply shortage is coming, and no, I'm not talking about oil, fertilizer, aluminum, sulfur, or any of the other commodities that used to travel through the Strait of Hormuz. That is a possibility we have accounted for with other portfolio picks at High Dividend Opportunities , but today we want to focus on something more ...
MotionIsland/iStock via Getty Images Co-authored by Luuk Wierenga. A massive supply shortage is coming, and no, I'm not talking about oil, fertilizer, aluminum, sulfur, or any of the other commodities that used to travel through the Strait of Hormuz. That is a possibility we have accounted for with other portfolio picks at High Dividend Opportunities , but today we want to focus on something more local. The real estate construction cycle has been materially impacted by rapidly rising interest rates. High-interest rates caused many companies to pull back from investing in new construction because it made new construction more expensive and less profitable. The thing is that for many commercial structures, development is something that takes several years. There are zoning and other political considerations and processes that have to be gone through before a shovel even touches the ground. Then, even when construction starts, it is a process that can take a year or even several years, depending on the complexity and size of the project. What happens when you have several consecutive years when investors are disincentivized from embarking on development projects? The incoming supply of leasable space fails to keep up with demand. When demand is higher than supply, prices go up. REITs have seen their share prices decline in recent years because interest rates have gone up. Higher rates directly cause lower property values, and since REITs typically use leverage, it increases their cost of borrowing. Yet, the unseen benefit is that by discouraging activity in the real estate market, high rates also discourage new construction. Since development takes years to ramp up, this results in a lack of supply and causes prices to rise. Who owns the supply? REITs. Sector Opportunity: REIT CEFs When you invest in individual dividend stocks or funds, it is important to look at the broader sector trends. For a while now, we've been reading about a clear lack of new supply coming thro...