Social Security expected to run out of cash in 8 years, Home sellers outnumber buyers by 500,000, Palantir up 600%, S&P 490 has no earnings growth since 2022, My Stock Picks, Insider Trades, and More!
Hi Andrew, great issue as always! I’m curious — AI has been driving huge growth for some time now, but how do you personally decide when to stay invested in these AI leaders versus when it might be time to take profits or step back? What signs or signals do you watch for to balance riding the wave and managing risk?
I’d love to hear what others in the community think as well — how do you approach this balance in your own investing? Thanks!
I watch how fast revenue growth turns into real cash. Hype can push prices, but cash flow tells the truth. If a company’s profits stall while costs rise, it’s a warning.
And look past the stock price and focus on user growth. Are more people signing up for and using the AI product every month? If the growth in the user base slows down, revenue growth will almost certainly follow. For tech companies, slowing user growth is one of the earliest signs that a peak might be near.
Debt levels also matter more for AI companies than people realize. High-growth companies shouldn’t need debt financing if their business model actually works.
Employee retention rates reveal more than earnings calls ever will. When top AI engineers start leaving for competitors, the stock price will follow within six months. Talent drives everything in the tech sector.
I also watch insider selling closely. If top executives sell large amounts, they may see slower growth ahead. It doesn’t always mean trouble, but it’s worth noting.
And thanks for the kind words! I hope this response helps!!
Really apreciate the BBAI breakdown in the earnings section. Your point about government contract lumpiness is spot on - that's been the challenge for all defense contractors, not just BBAI. The comparison to Palantir is interesting, but I think there's room for both. Palantir dominates in enterprise analytics, while BBAI has deeper roots in mission-critical defense applications. The Magnificent 7's dominance you highlighted earlier in the article makes mid-cap opportunities like BBAI even more compelling for diversification. Thanks for the thorough analysis!
BBAI sits in a unique lane between pure AI firms and traditional defense contractors. That hybrid model could be its biggest long-term edge if defense spending shifts toward automation and AI integration.
Palantir built its moat on data analytics, but BBAI is embedding AI into actual mission systems. That difference could drive faster scaling once defense agencies start modernizing at scale.
Hi Andrew, great issue as always! I’m curious — AI has been driving huge growth for some time now, but how do you personally decide when to stay invested in these AI leaders versus when it might be time to take profits or step back? What signs or signals do you watch for to balance riding the wave and managing risk?
I’d love to hear what others in the community think as well — how do you approach this balance in your own investing? Thanks!
I watch how fast revenue growth turns into real cash. Hype can push prices, but cash flow tells the truth. If a company’s profits stall while costs rise, it’s a warning.
And look past the stock price and focus on user growth. Are more people signing up for and using the AI product every month? If the growth in the user base slows down, revenue growth will almost certainly follow. For tech companies, slowing user growth is one of the earliest signs that a peak might be near.
Debt levels also matter more for AI companies than people realize. High-growth companies shouldn’t need debt financing if their business model actually works.
Employee retention rates reveal more than earnings calls ever will. When top AI engineers start leaving for competitors, the stock price will follow within six months. Talent drives everything in the tech sector.
I also watch insider selling closely. If top executives sell large amounts, they may see slower growth ahead. It doesn’t always mean trouble, but it’s worth noting.
And thanks for the kind words! I hope this response helps!!
Really apreciate the BBAI breakdown in the earnings section. Your point about government contract lumpiness is spot on - that's been the challenge for all defense contractors, not just BBAI. The comparison to Palantir is interesting, but I think there's room for both. Palantir dominates in enterprise analytics, while BBAI has deeper roots in mission-critical defense applications. The Magnificent 7's dominance you highlighted earlier in the article makes mid-cap opportunities like BBAI even more compelling for diversification. Thanks for the thorough analysis!
BBAI sits in a unique lane between pure AI firms and traditional defense contractors. That hybrid model could be its biggest long-term edge if defense spending shifts toward automation and AI integration.
Palantir built its moat on data analytics, but BBAI is embedding AI into actual mission systems. That difference could drive faster scaling once defense agencies start modernizing at scale.