Momentum trades

[Kingran]

If you wonder that only Mag7 is driving US markets, the momentum trade has other actors. One of the facts many investors are not aware, because they are not playing in that sandbox, is penny stocks. Today penny stocks account for 47.x% of volume. Many of these names trade their entire market cap in a day.

There are many unhealthy, disturbing signs in US market. I am not trying to scare you or doomsaying… but be aware of the environment in which you are trading/ investing.

Waymo self-driving cars -- progress

Please re-read what I posted. I am not saying they are low or high probability. Rather, the $1T valuation bakes in, IMHO, around $800 ~ $900 billion valuation that those efforts succeed. Whether it is $TSLA or $PLTR or $MSTR. The valuation of these names bakes in a very huge runway success for many years even decade. for ex: $PLTR with $3 B revenue run rate has over $303 B valuation, $MSTR is just a company that holds bitcoin, is valued at almost 2x of their Bitcoin holding, same with $TSL…

[HohumYNWA]

Last month, I thought the PLTR bounce was going to be short lived, so I harvested some gains. Yes, it moved higher. PLTR is an AI play.

[Kingran]

$PLTR is valued at 100 times revenue and their revenue is growing at 30%. Here is a Chinese vide gen model that is far better and just 3% of Google model. I think US AI firms valuation is a bubble. But that doesn’t mean you cannot ride the momentum and make money.

Deedy