Upstart is an AI-powered lending platform that partners with banks and credit unions to offer consumer loans. Upstart was born out of the frustration of young professionals not qualifying for a loan because they didn’t have enough experience or credit history. 

Upstart uses machine learning and artificial intelligence to assess a person’s financial history, education, work experience, and behavioral data to determine their risk level. It analyzes applicants’ income, education, and work history to assess their creditworthiness, which means they can typically get approved for financing in minutes. The system also monitors the borrower’s progress on repayment, notifying them of any changes. 

Upstart (NASDAQ: UPST)

According to consensus estimates, Upstart is a company that has been profitable and is predicted to post a 40% growth rate in 2022. According to projections, the company’s stock is valued at 20x forward sales, 84x 2022 earnings, and on the conservative end of the spectrum. The company has solid fundamentals, strong management and should sustain high growth rates over the long term. That being said, the market may cause some fluctuation in stock prices, so this is a name to keep on your radar.

Mobile video games have taken the world by storm over the last decade, and Skillz is at the forefront of the mobile gaming revolution. Skillz has created something that no one has done before with an online multiplayer platform. It’s a fun and social way to play competitive mobile games with friends and other players worldwide.

Skillz empowers gamers to make real money playing games on their smartphones. Game developers looking to monetize their games can offer in-game cash prizes through Skillz’s SDK, which will be paid out directly to the player’s PayPal account. In addition, sponsors can run large prize competitions by providing cash prizes and running marketing campaigns through Skillz’s marketing tools.

Skillz (NYSE: SKLZ)

Skillz’s Q3 2021 revenue was $102.1 million, a 70% increase over the previous year. However, this figure fell short of expectations by $0.51 million. When studying Skillz, consider that Skillz’s overall income is mostly driven by the statistic PMAU, which stands for Paying Monthly Active User, rather than MAU. While an increasing MAU is beneficial, revenues only increase when those users pay to compete on the platform. Skillz saw a 47% increase in PMAUs year on year to $50 million. We’re looking for payor conversion rates to rise in the coming quarters, and we can’t wait to see these numbers rise. The payor conversion rate in Q3 2021 was 17%, and we hope it grows from 13% in the previous year and 19% in the last quarter. Skillz gross profit increased 66% year-on-year to $94 million thanks to integrating Aarki, which has a lower gross margin than Skillz.

Disney is a household name in the entertainment industry. Every year, they produce several movies and release them to theaters worldwide. They also have their TV network, Disney Channel, which has been around for over 20 years. Disney’s success is due in part to its business model that is centered on four key elements:

1. The company owns its content outright.
2. Disney offers high-quality family entertainment that appeals to everyone, from kids to grandparents.

Disney creates content that it knows children will be exposed to when they’re young and then reintroduces the same content later in life when kids are adults and parents are grandparents.

Walt Disney himself was a creative and innovative thinker who contributed to changing America’s cultural landscape. He has always been an inspiration to children and adults alike because of his creative genius and his knack for business success. 

Disney (NYSE: DIS)

Disney’s valuation and low price-to-earnings ratio make it a good opportunity for investors looking for a discount. Disney is currently trading with a forward P/E ratio of 25.6 and a future P/E of 2.9. Although profits are likely to expand at more than 25% per year for the next few years, investors should be aware that Disney’s current valuation is already slightly high, so they should be cautious about buying the stock while it is still expensive.

Disney is a strong buy at the current levels, but if you’re concerned about future volatility, you can protect yourself with a cash-secured put.

We measure the put’s attractiveness by two main factors:

1. Premium yield percentage (or average monthly yield percentage): the projected return on capital if the option expires worthless.
2. The margin of safety percent: the measure of downside protection or how many shares in Disney can drop before you break even on your option deal.

The disadvantage to cash-secured puts is that you are required to purchase shares at the strike price, which in most cases ends up being a bad trade.

Tesla is a company whose mission is to accelerate the world’s transition to sustainable energy. Tesla manufactures electric cars, the all-electric power train, and battery products. They also offer services for electric vehicles such as direct current fast charging, valet charging, renewable energy on your home using solar panels with Powerwall batteries.

It was founded in 2003, and they want to make it possible for your car to be as smart as your phone. Elon Musk is the man who revolutionized the electric vehicle industry and founded Tesla. Elon Musk has gone from running SpaceX and PayPal to building a $50 billion company in just over a decade. He’s done so by mastering the rules of disruption and creating affordable electric cars, among other things. 

Tesla (NASDAQ: TSLA)

Tesla’s market value is currently at $41 billion (which is a record high in the company’s 11-year trading history). Furthermore, its enterprise value to earnings before interest, taxes, depreciation, and amortization ratio is severe. However, it is not a record high in its 11-year trading history. The bad news is that an EV to EBITDA ratio of 147x makes no sense compared to a CPI inflation rate of 6%. Competition appears to be significantly high in 2021-22 for Tesla, with Apple aiming 2025 for their autonomous and self-driving attempt. What would Tesla be valued if it becomes a low-growth player, one of ten or twenty significant new EV firms by 2024-25?

Tesla appears to be exceedingly rich, judging from 1-year predictions and its current valuation. The company is worth $1,100 per share at 127x predicted earnings per share and 15x revenues. Tesla seems to be priced high considering the company’s trailing revenues, cash flows, and book values. If competition proves to be a drag on Tesla’s future growth, a 50% drop in the company’s valuation to $500 seems realistic. Tesla is not likely to see a future increase in its stock price because it is already being valued at an unprecedentedly high number.

Netflix is the world’s leading streaming media provider, with over 86.8 million members in over 190 countries enjoying more than 126 million hours of TV shows and movies per day (numbers for December 2017).

Netflix provides instant access to TV shows and movies for an affordable monthly fee. It accepts payment through credit card, debit card, PayPal, Apple Pay, Google Wallet, gift card, or promotional code.

Netflix delivers content to users using software that recognizes what movie or show they last watched (based on metadata) then automatically resumes at the last point of content being watched. Netflix is the most popular streaming service on the web today.

Netflix (NASDAQ: NFLX)

Netflix has been spending a lot of money on content, spending billions in the process. However, despite competition getting tougher and streaming markets are becoming more and more competitive, Netflix’s expenditure has resulted in substantial subscriber growth. As a result, Netflix’s ARPUs are also among the highest among its main competitors, with $14.68 in the US and Canada, $11.65 in Europe, the Middle East and Africa, $9.6 in the Asia Pacific, and $7.86 in Latin America (data from Q3). This, combined with Netflix’s ongoing membership growth, has resulted in rising profits over recent years even as content investment increased.

Netflix reported a quarterly net income of $1.45 billion and a TTM net income of $5 billion (in Q3) which follows more than a decade of break-even/near-breakeven operations.

Datadog helps you monitor your running servers, collect logs and metrics from your databases, visualize all of these data streams in one place, get alerted when important things happen, and make sense of the whole system with powerful analytics.

Datadog is designed to automatically detect new services on your servers or nodes and send metrics about them. It automatically discovers all the databases in your environment by scanning through all TCP ports. Datadog can then send benchmarks for each database type to help you find the right balance between performance and cost.

Datadog has a powerful dashboard that makes it easy to analyze all these different data sources together to understand how they are related. The dashboard also provides interactive visualizations and customizable alerts that can be set up as conditions change, which helps you stay on top of every metric in your system.

Datadog (NASDAQ: DDOG)

Datadog currently has a market cap of $56 billion, and – based on the current figures – analysts estimate that they will reach $900 million in annual billings. However, their top-line revenue could multiply to a much higher amount due to public cloud growth (20% or more), increasing digitalization, and continued upselling. If Datadog generates $3.5 billion in sales in 2024 with 40% forward growth in 2025, investors can expect an annualized return of 15%.

CrowdStrike is a cybersecurity company that protects from cyberattacks. They offer various services, including endpoint security, malware analysis and protection, and next-generation antivirus.

Crowdstrike has been dealing with a major hacking attack against them since mid-2015. The hackers stole information about their company’s products and services. In retaliation to the hack, CrowdStrike applied the term “Cyber Hygiene” for the trademark in January 2016. CrowdStrike believes this term will help them control the hackers by giving them a voice in the language used when discussing cybersecurity and privacy.

CrowdStrike’s mission is to simplify cybersecurity by making it possible for every person and every organization to secure their most important data wherever it lives. CrowdStrike is the only company that offers a complete cyber defense solution, protecting endpoints from malware and unauthorized outbound data transfers while simultaneously investigating incidents with global real-time intelligence from more than 130 countries worldwide. 

CrowdStrike (NASDAQ: CRWD)

CrowdStrike’s valuation of 24x forward sales is a good sign for investors. CrowdStrike looks like an outstanding stock to buy now on the market, considering this was priced at mid-30x forward sales only a few weeks ago.

Some of its competitors are far more expensive while being exposed to essentially the same risks and possibilities. SentinelOne, which I briefly mentioned above, is priced at 39x forward sales. SentinelOne is likely to grow at far quicker rates in the coming year.

Investors should expect a 9.4 percent return on equity capital over a 10-year DCF, assuming the firm operates in line with my forecasts below. Assumptions include a 15% annual growth rate decay, a chance to increase leverage to 4.0x.

Fulgent is a leader in clinical diagnostic genetic sequencing, determining the order of bases in a DNA molecule. It is a medical laboratory with a state-of-the-art sequencing and genotyping technology platform. Fulgent was founded on the principles of innovation, passion, and responsibility for healthcare providers and their patients. We are committed to providing clinicians with the most up-to-date diagnostics so they can provide accurate diagnoses and treatments to each patient. Through their expertise, they deliver high-quality, cost-effective solutions for our clients so they can focus on what matters – taking care of people.

Fulgent is different from other laboratories because they offer automated systems that allow easy access to leading technologies previously unavailable to any but the largest labs.

Fulgent Genetics (NASDAQ: FLGT)

Fulgent is worth 7.5x sales at $200M of core NGS business and 10x EV/S if the corporation chooses to put the other $1B to work. However, several other benefits should be considered, which we’ll discuss now. This year, Fulgent has doubled its main business at a 215% growth rate. The corporation may distribute part of their cash to invest in more expansion, as they did this year, cementing their NGS business. Covid has added $1 billion in cash to Fulgent, accelerating NGS business. Since Covid isn’t going away in 2022 and its profitability, it will still contribute considerably to Fulgent’s profits.