Welcome to another brand-new episode of our Hypergrowth Investing podcast, where we get candid on SoFi’s (SOFI) prospects in 2023, ChatGPT3 and the AI Revolution, TikTok government bans, and whether Apple’s (AAPL) XR headset can do for the metaverse what the iPhone did for the internet. Buckle up, friends, it’s going to be a long one!
If you’re a sports fan, then you probably know that the college football championship game just happened a few nights ago (and boy, it wasn’t even close, was it?). But more importantly, this championship game was held at SoFi Stadium. Since then, SoFi’s been in the spotlight – and rightfully so.
Great products make for great businesses, which make for great stocks. And that’s exactly what you have with SoFi. Its world-class digitally native consumer finance app is a modern-day dream. And because the company doesn’t have to maintain a physical presence, it can pass those cost-savings onto customers through better yields and higher interest.
We see this as a company that will grow 20% per year into 2030. Yet SOFI stock is trading at 0.9X its book value. Traditional banking giants are trading at larger multiples – while growing at just 2% per year. And it’s all thanks to the major risk-off sentiment that began in 2022.
As soon as that sentiment abates – and it always does – SOFI stock could rocket in a hurry.
The AI Revolution Is Here
Pivoting to artificial intelligence, which we’ve talked about a lot since the launch of ChatGPT3, OpenAI (the company behind that product) is reportedly looking to raise funds at a $29 billion valuation. What does this mean for AI stock investors?
Well, in 2021, the company was worth $14 billion. Less than two years later, it has increased its value by more than 100%. And we’re confident that the launch of ChaptGPT3 was a tipping point for the AI Revolution.
Coding, music creation, copywriting, storytelling – there are already a plethora of things you can do with AI, even in these early stages. And we just hit the fast-forward button.
Considering the state of the markets and the stressful macro backdrop we had in 2022, the launch of many AI platforms went unnoticed. While they’re flying under the radar today, they’ll soon attract tons of users – and value – leading to a categorical boom in AI.
Some trends are unstoppable forces, and it seems that AI is one of them.
TikTok Tops Out – Should You Buy SNAP Stock?
First off, we see short-form video as the future. It’s no secret that we’re big fans of TikTok, but the platform keeps getting banned in certain places, namely on government devices in various U.S. states.
Now, this doesn’t mean TikTok is done. But we do think its ascent is over. Bans are one thing, and widespread media coverage is another. If all media outlets agree on anything, it’s that TikTok is sketchy. And their coverage is likely to encourage users to migrate elsewhere.
As a result, platforms like Snap (SNAP) and Instagram will probably see their usage soar over the next two years. TikTok’s descent will act as an engagement tailwind for these platforms, and they’ll return to continued growth very soon.
The companies that will really thrive in this environment are those that tap into next-gen technology to augment user experience in a way that others cannot, and we think Snap really excels on that front. Get bullish here!
Watch the full episode of Hypergrowth Investing here.
On the date of publication, Seth Kuczinski did not have (either directly or indirectly) any positions in the securities mentioned in this article.