The Stock I'm Buying For AI Hyper Growth Connectivity!

Stock Market News
14 Mar 202408:37

TLDRIn this video, the host discusses Rumble's recent performance and its potential involvement with TikTok, as well as an exciting new AI company, Estera Labs, backed by Intel and Fidelity, which is set to go public with a $534 million IPO. The host shares insights on Rumble's stock movement, its partnership with Quinshift, and the impact of potential TikTok divestment. Estera Labs' financials and market potential are also highlighted, with the host expressing interest in the IPO despite concerns about the share price.

Takeaways

  • 📈 The speaker discusses Rumble and an upcoming AI company, highlighting their potential and recent developments.
  • 💡 Rumble's stock was bought by the speaker at $0.74, later selling at $0.88, missing out on further gains due to late announcements.
  • 🚀 Rumble has formed a strategic partnership with Quinshift and is involved in potential TikTok acquisition talks.
  • 💥 TikTok's future in the U.S. is uncertain due to possible divestiture or ban, with Meta being a likely buyer.
  • 🌐 Rumble Cloud's launch was recent, and the company has a $12 price target due to TikTok hype and AI integrations.
  • 🤖 Estera Labs Incorporation, backed by Intel and Fidelity, is set for a $534 million IPO with shares priced between $27-$30.
  • 🔢 Estera targets hyperscale companies with data center applications and has served major Fortune 500 companies.
  • 💰 The company has a strong financial position with $45 million in cash, $39 million in liabilities, and a 70% gross margin.
  • 📊 Estera's revenue increased from $79.8 million in 2020 to $15.7 million in 2023, showing significant growth.
  • 📈 The speaker considers Estera overpriced at the IPO price but plans to buy shares for short-term trading and hopes to buy back in at a lower price for long-term investment.

Q & A

  • What is the main topic of the video?

    -The main topic of the video is the discussion of Rumble and an introduction to an exciting new AI company, Estera Labs Incorporation, that is about to go public.

  • What does the host recommend doing with Rumble stock?

    -The host initially recommended buying Rumble stock at $0.74, but later expressed regret for selling it too early before a significant news announcement and a partnership with Quin shift.

  • What happened to Rumble's stock price after the host sold it?

    -After the host sold Rumble's stock, the price increased to $8.88 and even surpassed $9.

  • What is the potential impact of the TikTok possible ban or divestiture on Rumble?

    -The potential impact is that Rumble could be part of a group looking to acquire TikTok, and this situation has led to increased interest and a price target of $12 for Rumble's stock.

  • What is Estera Labs Incorporation and what products does it offer?

    -Estera Labs Incorporation is a company that sells connectivity solutions for data center applications, targeting hyperscale companies. It offers hardware and Cosmos software suite management.

  • Who are the major investors backing Esteera Labs Incorporation?

    -Esteera Labs is backed by Intel and Fidelity.

  • What is the financial status of Esteera Labs Incorporation?

    -Esteera Labs had a revenue of $79.8 million in 2020 and $15.7 million in 2023. It has a gross margin of about 70%, $45 million in cash, $39 million in total liabilities, and a free cash flow of $15.5 million.

  • What is the IPO price range for Esteera Labs Incorporation and how many shares will be offered?

    -The IPO price range for Esteera Labs Incorporation is $27 to $30 per share, with 17.8 million shares being offered.

  • What is the host's opinion on Esteera Labs Incorporation's IPO valuation?

    -The host believes that Esteera Labs Incorporation's IPO valuation is a bit overpriced, and would have preferred a price of $18 to $20 per share.

  • Does the host plan to buy Esteera Labs Incorporation's stock on the first day of its IPO?

    -Yes, the host plans to buy the stock on the first day of the IPO for a short-term trade, but hopes to buy back into it at a lower price in the future for the long term.

  • How does the host describe the potential future for Esteera Labs Incorporation?

    -The host describes Esteera Labs Incorporation as a company with an awesome future, one that he definitely wants in his portfolio for years to come.

Outlines

00:00

📈 Rumble and AI Market Updates

The video discusses the recent performance of Rumble stock, the strategic partnership with Quin shift, and the potential impact of a TikTok ban or divestment on the market. The speaker expresses both satisfaction and frustration with Rumble's stock movement, having sold at a profit but missing out on further gains due to late-breaking news. The video also introduces an exciting, upcoming AI company backed by Intel and Fidelity, which is set to go public on the 20th of March. The company has strong financials and is expected to make significant moves in the AI space.

05:01

🚀 Estera Labs: The New AI Player on the Block

Estera Labs, an Intel-backed company, is preparing for a $534 million IPO with a price range of $27 to $30 per share. The firm specializes in connectivity solutions for data centers, particularly targeting hyperscale companies. Estera Labs has served some of the largest Fortune 500 companies and has a solid financial background, with a 70% gross margin and improving net income. Despite the company's positive prospects, the speaker feels the IPO price might be slightly overpriced but is still considering a short-term investment, with plans to buy back in at a lower price in the future.

Mindmap

Keywords

💡Rumble

Rumble refers to a digital platform mentioned in the video, which is involved in the stock market and has recently experienced significant changes in its stock value. The speaker discusses their personal investment in Rumble and the strategic partnership it announced with Quin shift, as well as its potential involvement in the acquisition of TikTok. The term is central to the video's theme of stock market analysis and investment opportunities.

💡TikTok

TikTok is a social media platform that is facing potential regulatory challenges in the United States, which may lead to a forced divestment or ban. The video discusses the implications of these challenges for TikTok and the opportunities it presents for other companies, like Rumble, to capitalize on the situation. The platform's potential sale or partnership with other social media companies is a key point in the video's discussion of market trends and investment strategies.

💡AI Play

AI Play refers to a company or investment that is related to artificial intelligence. In the context of the video, the speaker is excited about a new AI play that is about to go public, highlighting the growing importance of AI in the tech industry and its potential as a lucrative investment area. The term is used to describe opportunities in the stock market that involve innovative technologies and are expected to have significant growth potential.

💡IPO

IPO stands for Initial Public Offering, which is the process by which a private company goes public by offering its shares to the general public for the first time. In the video, the speaker discusses an upcoming IPO by Estera Labs Incorporation, a company backed by Intel and Fidelity, and provides insights into the potential value and investment strategy related to this event. The IPO is a central concept in the video as it represents a new opportunity for investors to participate in the growing AI sector.

💡Financials

Financials refer to the financial health and performance of a company, typically assessed through its revenue, gross profit, net income, and other financial metrics. In the video, the speaker evaluates the financials of Estera Labs, noting its revenue growth, gross margin, and cash flow, to determine the company's potential as an investment. The financials are crucial for investors to understand the profitability and stability of a company before making investment decisions.

💡Hyperscale

Hyperscale refers to companies or data centers that operate at an extremely large scale, often handling vast amounts of data and requiring high levels of computing power. In the context of the video, Estera Labs targets hyperscale companies with its connectivity solutions, indicating that their products and services are designed for clients with extensive data center needs. The term is important as it highlights the specialized market segment that Estera Labs is focusing on and the potential size of the opportunity in the AI and data center space.

💡Valuation

Valuation is the process of determining the economic value of an asset or a company, often based on financial metrics and market conditions. In the video, the speaker discusses the valuation of Estera Labs in the context of its upcoming IPO, expressing a view that the company might be overpriced at the expected share price. Valuation is a critical concept for investors as it helps them assess whether the current or potential market price of a stock is justified by the company's financial performance and growth prospects.

💡Free Cash Flow

Free cash flow is the cash generated by a company after accounting for capital expenditures needed to maintain or maximize its asset base. It indicates the amount of cash a company can distribute to its investors, debt holders, or use for other purposes such as reinvestment without affecting its operations. In the video, the speaker highlights Estera Labs' free cash flow of $15.5 million as a positive financial metric, showing the company's ability to generate cash that can be used for various strategic purposes.

💡Investment Strategy

Investment strategy refers to a plan or approach that an investor uses to achieve their financial goals. This includes decisions about what types of investments to make, when to buy or sell, and how to manage risk. In the video, the speaker shares their personal investment strategy regarding Rumble and Estera Labs, including decisions to sell, hold, or buy back into stocks based on market conditions and company performance. The term is essential as it guides viewers on how to potentially navigate the stock market and make informed investment decisions.

💡Discord

Discord is a communication platform originally designed for gamers but has since expanded to be used by various communities. In the video, the speaker mentions their Discord server as a place where viewers can join a trading community for potential investment opportunities and to benefit from collective knowledge and discussions. The term is relevant as it represents a social aspect of investing, where individuals can share insights and strategies.

Highlights

The video discusses Rumble and an exciting new AI play that is not yet public.

Rumble's stock was bought at $0.74 and later sold at $0.88 for gains.

Rumble's stock price dropped to around $0.6 after the initial buy.

Rumble's stock price rose to $8.88 after the speaker sold his shares.

Rumble announced a strategic partnership with Quin shift after the speaker sold his shares.

TikTok faces a possible ban or divestiture in the United States.

Rumble's CEO expressed readiness to take part in a consortium to acquire TikTok.

Rumble Cloud's launch to the public happened shortly after the speaker sold his shares.

Rumble has a $12 price target due to the TikTok hype and its AI integrations.

Intel and Fidelity are backing the new AI play, Estera Labs, which is going public.

Estera Labs seeks a $534 million IPO with a share price of $27 to $30.

Estera Labs targets hyperscale companies with data center applications.

The company serves some of the biggest Fortune 500 companies.

Estera Labs' revenue was $79.8 million in 2020 and $15.7 million in 2023.

The company has a gross margin of about 70% and $45 million in cash.

Estera Labs has a net income that is improving, though not yet profitable.

The speaker plans to buy Estera Labs' shares on the first day for a short-term trade.

The speaker considers Estera Labs overpriced but still plans to buy for the long term at a lower price.

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