AirBnB (ABNB)
Entry:
Price target: 145.00-150.00
Second PT:
Vacation rentals by owner, or “VRBOs” weren’t invented by AirBnB, but the company sure paved the way for the industry by becoming THE recognized name for those seeking places to stay during their travels. According the Bureau of Economic Analysis, U.S., consumer spending on “experiences” vs “things” has shifted to transform the tourism landscape. Americans and consumers globally are willing to spend on adventure travel, often times looking for unique experiences and AirBnB has been able to accommodate by allowing travelers to rent and stay in a more experiential type of way.
At a market cap of $85 billion, ABNB is arguably a bit expensive, but their growth projections are promising enough to justify their price point. AirBnB posted nearly $10B in revenue last year, and is expected to grow by 30% through 2026 to $13B. Their balance sheet also boasts of more than $22B in assets vs $13.7B in liabilities, a healthy ratio and signal of competence by its leaders. And finally, free cash flow reserves reached a record $4.07B in the past twelve months.
With the travel industry showing no signs of slowing, combined with consumers who are willing to spend more on experiences, AirBnB is positioned well in the industry, making them an attractive buy for the quarter and possibly for next year.
Please note that this may take beyond this week to come around to price targets.
Ouster (OUST)
Entry:
Price target: 14.00-14.50
Second PT:
Ouster, Inc. specializes in high-resolution digital LiDAR sensors, providing advanced 3D vision for machinery, vehicles, robots, and fixed infrastructure. LiDAR (Light Detection and Ranging) technology is increasingly in demand across industries due to its ability to create precise 3D maps and measurements.
Founded in 2015, Ouster entered a market where demand for its products was initially slow, but its deep industry experience now positions it as a strong contender for growth. As technological advancements accelerate, LiDAR’s importance has never been greater, and Ouster's performance over the past two years reflects this shift. The company has achieved an average quarterly revenue growth of 74%, consistently posting record earnings. Though not yet profitable, Ouster is on track to potentially post its first profitable quarter in 2025.
While Ouster remains a relatively small company, generating around $100 million in annual revenue, it operates in a rapidly growing industry. Despite fierce competition, Ouster has established itself as a key player, earning a spot on our watchlist for this quarter and potentially for the year ahead.
Please note, this is still a small company with a lot to prove. Their past performance does not guarantee that they will keep performing at such levels, but so far they do display signs of further growth. Future earnings must be watched closely and investment must be adjusted accordingly.
Please note that this may take beyond this week to come around to price targets.
Taiwan Semiconductor (TSM)
Entry:
Price target: 215.00-220.00
Second PT:
Taiwan Semiconductor is a company that needs no introduction, but just in case you haven’t heard, it is the manufacturer behind many of the components that enable companies like Nvidia and AMD to thrive. TSMC is responsible for over 60% of the world’s semiconductors and more than 90% of advanced semiconductors, making it an essential driver of global technological advancement.
This giant has earned a spot on our watchlist for obvious reasons, one of which is its impressive revenue growth—36% last quarter—to $23.5 billion, nearly half of which was profit. This marks the second consecutive quarter in which TSMC's revenue grew by over 30%, with net income rising even more impressively by 51%.
Examining its balance sheet, Taiwan Semi boasts over $180 billion in assets versus just $66 billion in liabilities—a remarkable 3:1 ratio. Additionally, free cash flow has expanded to a substantial $30 billion, further cementing TSMC's status as a leader in the semiconductor industry.
The stock is up 94% in 2024 so far, but it has remained stuck around the same highs over the past quarter. This stagnation is likely due to rising geopolitical tensions and uncertainty surrounding the new presidential administration, which has pledged to prioritize American businesses. Since TSMC is not an American company, investors are concerned that new regulations could affect its operations. However, it is likely that TSMC will be granted some leniency, given its critical role in advancing technology for American companies.
Please note that this may take beyond this week to come around to price targets.
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You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
You've reached the end of our complimentary public watchlist. Unlock for the full list by becoming a member of our Hyper Stocks community. Click here for more information.
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck! Let’s have a fantastic week.