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Drive Hyperion 8 incorporates a series of sensors including nine radars, 12 cameras, one front-facing lidar and 12 ultrasonic sensors. The entire setup is meant to be modular so carmakers can take and leave whatever they want.

Nivida states the system utilizes two Nvidia Drive Orin systems on a chip to give redundancy and fail-over, as well as the possibility for level four AI self-driving tech. Self driving cars are rated within a scale of 0 being the human driver controlling every part of the driving and level 5 meaning the vehicle completely operates itself without human intervention.

Nvidia’s Drive Chauffeur is their AI driving system. It utilizes Hyperion 8 sensors and lets vehicles drive from one place to another on their own in urban environments and highways. In addition to operating without humans, Chauffeur can be a high-end emergency system for those who would still rather drive themselves.

Then there is Drive Concierge, Nvidia’s AI assistant. Think of it like a high-powered Siri inside your car. It is designed to see each passenger and deal with them individually. So you can use your voice to manage parts of your vehicle that currently need you to tap touchscreens or twist knobs.

Concierge also works as a virtual valet with the power to find parking areas and park without you being inside. So you can get into an entrance to a restaurant and your car will park itself. When you are finished, you can call your vehicle back and it will come pick you up.

While Nvidia’s success in self-driving technology is certainly impressive, real self-driving cars are now years away from being used on American roads. There are huge hurdles to get over including how AI can safely get through bad weather, random construction areas, animals such as deer, and even reading the road while in rainstorms and snow.

Still, the huge moves forward that Nvidia and other companies are making are a sign that while self-driving technology is not a reality just yet, it will be a thing pretty soon.

Author: Steven Sinclaire

Advanced Micro Devices will soon dive into the metaverse.

The chip giant stated its EPYC chips were chosen by Meta (previously known as Facebook) to assist in powering its centers on Monday at its virtual Accelerated Data Center debut event. The chip maker explained the two companies had worked together to create a power-efficient, high-performance processor based on the AMD’s 3rd Generation EPYC processor.

AMD stock price jumped higher by 10% in afternoon trading.

The high-profile win was accompanied by announcements from the chip maker, including some specifics around future EPYC processors with code names “Bergamo” and “Genoa.” The Genoa processor was dubbed the “world’s best performance processor for general purpose computing,” by AMD.

Su told Yahoo Finance Live we’re living through a high-performance computing “megacycle” that is showing no signs of slowing down.

AMD is consistently one of the hottest technology stocks in the market as it wrestles market shares away from its rival Intel.

Shares of AMD have risen 65% year to date, outpacing the Nasdaq Composite’s 24% gain. Intel’s share price has risen 2% on the year, while Nvidia has ballooned a whopping 127%.

AMD’s third quarter performance may help to explain the stock’s rapid ascent.

Sales have risen 54% from a year ago all the way up to $4.3 billion. Earnings per share jumped 134% year-over-year.

“We think AMD will continue to boost material server/PC share in 2021/2022 that will be driven by performance leadership while Intel keeps struggling on 10 and 7nm,” stated Barclays analyst Blayne Curtis in a recent memo to clients.

Curtis rated AMD’s stock at an Overweight (equivalent to a Buy rating) with a $135 price target.

AMD has had an excellent past two years after the debut of its very popular Ryzen CPUs. Their new line of products took the industry by storm given their price range and performance compared to rival Intel. Meanwhile, Facebook has suffered a storm of controversy after whistleblowers revealed the company maintains a “whitelist” of celebrities and political insiders who are allowed to break the company’s speech policies.

Author: Steven Sinclaire

In the near term, stocks seem to head in whatever direction the market is going. That is because on a daily basis, sentiment is driven by choices. During a longer time frame, the company’s possible earnings power will decide performance. However, when a sector is in a state of transition, the uncertainty may create volatility that can last years. That seems to be the case right now.

The healthcare business has changed a lot in the past ten years. And while some major players attempt to reinvent their company, new participants reinvent their processes with the customer in mind. It has caused wild changes in share prices as firms change places in the race to lead parts of the $3.8 trillion industry.

Teladoc

Teladoc’s revenue grew by an amazing 108% during the first nine months of 2021, during the same time period in 2020. So, the company’s earnings have increased substantially from what it was at the peak of the covid pandemic, even though most of society has returned from the pandemic and most people are back to doing school, social, and work activities in person. Also, overall visits to its platform jumped by a shocking 59% during the initial nine months of this year, compared with the initial nine months of last year. Meanwhile, the firm is expecting that it will almost double its entire-year 2021 revenue from last year’s revenue.

In fact, stock market analysts believe the stock has a peak upside possibility of over 70% during 2022. If you are looking for a top healthcare-based ETF that you can purchase and keep for many years, and that is trading at a great bargain right now, Teladoc could be a compelling investment that is definitely worth looking into.

GoodRx

The past few months have brought in a large amount of profits for GoodRx investors, with the share price up around 42% against the S&P 500, which is up around 7%.

The GoodRx brand keeps becoming more popular as consumers are learning about and subscribing to its discount services. GoodRx users have saved an average of 79% off store prices In 2020, and over half of prescriptions filled while using GoodRx costs less than the average insurance copays for the top 100 medications.

During the second quarter, GoodRx revealed they had 6 million monthly active customers, growing by 36% year over year. Earnings was $176.6 million, expanding 43% year over year.

Beyond the consumers, pharmaceutical businesses use the GoodRx market to make their products known and provide discounts. The second quarter revenue from drug creation programs and telehealth rose by 136% to reach $17.4 million. This is an indication of a second source of growth and diversification of GoodRx income streams.

On the second quarter earnings call, GoodRx expected a 40% earnings growth during the third quarter. It’s scheduled to present Q3 earnings on November 10, so we should have another upcoming opportunity to gauge how it has grown the company.  Every indication is pointing to excellent future possibilities for GoodRx as it continues to grow its services, value, and subscribers in the prescription drug sector.

Author: Blake Ambrose

Foreclosures could look tempting — especially in the market of today. Home prices are higher than 18% during the previous year while foreclosures often being priced at a big discount.

According to analytics company ATTOM Data Solutions, U.S. foreclosures were valued around 36% under traditional properties at the end of 2020. That is the difference between one $300,000 home and a $192,000 one — pretty big savings for the normal American family.

Still, despite the money a foreclosure could save you, they are not the best thing for everyone. Nor are they especially easy to find.

Are you considering buying a foreclosure as an investor? Here is what you should consider before you do this.

Repairs and renovations

Most foreclosures are sold “as-is,” meaning whatever the condition the house is in, that is what you get — so do not expect the seller to pay for your repairs.

Sometimes, that is not a big deal, and only minor problems exist — things such as chipped paint, holes inside walls, or carpet stains. In others, it is much more serious. You could have also have roof damage, problems with plumbing or electrical systems, some foundation problems, and a lot more. And fixing all of these? That is on you.

Availability

Foreclosures are not exactly easy to find these days. For most of this year because of the covid pandemic, foreclosures were restricted, which meant a limited amount of distressed properties that came to the market. As a result, there is little to choose from in numerous markets, and the foreclosures that are up for purchase come with stiff competition — both from traditional homebuyers and investors.

Timing

If you are looking for a quick and pain free transaction, a foreclosure is probably not the correct move. For one, the foreclosure process could take some time (the owner might not even be moved out by the time you buy). On top of this fact, the financing of such a property usually takes longer — especially if you are buying directly from a lender, bank or government agency.

Sometimes, offering cash can aid in speeding up the process, but it all is based on what stage the foreclosure is at. Normally speaking, you can expect purchasing a foreclosure to take a bit longer than a traditional property.

Author: Scott Dowdy

Last week, the benchmark S&P 500 did what it has been doing throughout most of 2021: It jumped to another record close. however, the broad-based index is not the only thing on stock market hitting rarified air.

Just recently, Tesla Motors joined Microsoft, Apple, Amazon, Alphabet, and Meta Platforms, Facebook’s parent company, in getting to the psychologically critical $1 trillion valuation mark. There is little doubt that, as economies around the globe grow over time and companies innovate, we will see new additions to the trillion-dollar club.

In fact, the following two growth stocks all possess the potential to be valued at $1 billion in 15 years, if not earlier.

Mastercard

The biggest growth stock of these two by market cap is Mastercard, which is effectively a tripling in its value away from reaching a $1 trillion valuation. If smart investors give Mastercard around 15 years, they could triple in market cap.

One of the best things about payment processors such as Mastercard is they benefit from longer periods of expansion. Although recessions are an inescapable part of the economic cycle, they generally only last for two months to a few quarters. By comparison, expansions usually last for years. This gives Mastercard a lot of time to reap the rewards of elevated corporate and consumer spending.

Another reason Mastercard is growing is its avoidance of lending. You would think with the United States and global economy relishing such long periods of economic growth that Mastercard would want to generate interest and fee income. However, when recessions arrive, lenders are made to backpedal by putting aside capital to cover loans in default. Mastercard is better stationed to navigate any economic downturn with no loans outstanding. Avoiding lending is what has helped push its profit margin frequently above 40%.

With a lot of opportunity to grow its payment infrastructure to new markets, Mastercard’s expansion rate should remain powerful throughout the decade, if not well beyond.

Salesforce

Cloud-based customer relationship management software provider Salesforce.com also has the tools needed to grow from its current $297 billion value to $1 trillion within 15 years.

For those who don’t know what CRM software is, it is used by consumer-facing companies to enhance client relationships and boost sales. It can be used to handle online marketing campaigns, oversee service or product issues, and most importantly run predictive sales inquiries on an existing client base.

What makes Salesforce unique is its role as CRM kingpin. As reported by IDC, Salesforce collected 19.5% of CRM software spending last year, which was over one percentage point higher than number 2 through number 5 in market share… combined! CRM software is discovering use in new sectors (e.g.,healthcare, industrial, and financial) and gives sustainable double-digit growth possibilities for the foreseeable future.

Also helping Salesforce is CEO Marc Benioff’s frugal acquisitions. Acquiring Tableau, MuleSoft, and most recently Slack, has grown the Salesforce company, and made its services more available to both medium and small sized companies, and given the firm new places to cross-sell its highly profitable services.

Author: Steven Sinclaire

Could more cash be coming your way?

On Nov. 1, 2021, $510 million in refunds was sent out by the IRS  to around 430,000 American citizens. This is money that went to employees who were out of work during the course of the covid-19 pandemic.

These refunds which totaled about 430,000 which were recently sent are the latest in a long line of payments the agency has been sending to workers who were out of work last year. Over $14.4 billion in all has been sent out in more than 11.7 million refunds during the course of this year. More cash may be forthcoming as the Internal Revenue Service continues to process last year’s tax returns.

Let’s look at who got the newest payments — and who might be entitled to get cash in their checking accounts in the future.

Here’s why the IRS is mailing out billions

The IRS is giving billions of dollars worth of refunds because millions of people ended up having to pay taxes on unemployment benefits last year that was not actually taxable. Those people are entitled to have this cash returned to them.

Under normal circumstances, unemployment benefits are subject to income taxes. But, the American Rescue Plan Act — the covid-19 relief law that passed early this year — excluded $10,200 in unemployment funds from federal taxes for single and couples that have adjusted gross income below $150,000.

Democrats’ American Rescue Plan Act was not passed until March of 2021. Many Americans had already filed their tax returns by the time it had passed. People who filed returns before the act passed likely paid taxes on all received unemployment benefits that the new rules exempted from those taxes. The Internal Revenue Service is making changes to tax returns and automatically fixing them so it can send out the cash that people overpaid.

About 16 million taxpayers may be entitled to receive a refund of the taxes they improperly gave on unemployment funds, and the IRS has been slowly pushing through the process of sending the checks to those who are owed it. This latest round of 430,000 refunds was part of their newest effort to return money to Americans out of work during the Corona pandemic.

Americans who received these tax refunds got an average around $1,189 from the IRS. The agency has said this group of people are likely one of the last to get checks, as they are almost done processing all of the tax returns that could be affected by this issue.

Author: Scott Dowdy

Nvidia and Palantir work in different areas, but both tech firms are profiting from their secular expansion of the AI market.

Nvidia’s GPUs are often connected with video games, but a growing amount of data centers are installing its top-end GPUs to deal with AI tasks. Palantir’s data mining systems accumulate and work on data from many different sources to aid government agencies and private companies to make AI-driven choices.

Both companies have given impressive gains over the previous 12 months. Nvidia’s stock has more than doubled as it kept selling more data center and gaming GPUs. Palantir’s stock increased around 160% as it surprised investors with its good revenue growth and great long-term targets. But should investors who missed those gains consider purchasing either stock?

Nvidia’s growth vs Palantir

Nvidia’s revenue increased by 53% to $16.7 billion during fiscal 2021, which ended this Jan., while its adjusted net income went up 75% to $6.3 billion. Its adjusted gross margin increased 310 basis points to reach 65.6%.

In the first part of fiscal 2022, Nvidia’s revenue went up another 75% y/y to $12.2 billion as its adjusted net income went up 99% to $4.9 billion. Its current adjusted gross margin went up 50 basis points to reach 66.4%. Its growth was mostly driven by its data center and gaming GPUs, which gave the company 83% of its revenue during the last quarter.

Nvidia now trades at 55 times its forward earnings and 25 times its sales this year. Those valuations may seem high, but they are fairly reasonable compared to Wall Street’s good expectations for the firm.

Palantir now trades at 34 times the sales this year. That valuation also seems to be high, but it might be justified if Palantir reaches its target of bringing in over 30% revenue growth for the next four years.

But numerous headwinds — including enterprise market competition, the loss of possible government contracts, and the public’s watchful eye of its secretive deals with federal agencies — could still restrict its long-term gains.

The best: Nvidia

Palantir could be a more direct move in the AI market than Nvidia is, but it is also more risky. Nvidia is more diversified, and more profitable, and faces less controversies, and its stock is much cheaper.

Author: Steven Sinclaire

The United States Federal Reserve announced its plans to lower its $120-billion-per-month in bond buys, taking the initial step toward lowering a post-covid money-printing policy that has inspired a lot of investors to buy bitcoin as an inflation hedge.

The Fed said this week in a comment that it will lower their pace of asset purchases by around $15 billion per month. Purchases of United States Treasurys will go down to $70 billion per month from $80 billion, while buys of government-backed mortgage securities will lower to $35 billion per month from $40 billion.

Under this plan, the Fed will continue to decrease its purchases by $15 billion each month until the program concludes during next year.

“The committee judges that similar lowerings in the rate of net asset buys will possibly be appropriate every month, but it is prepared to change the rate of buys if needed by changes within the economic outlook,” the Fed’s Open Market Committee, or FOMC, said in a comment.

The asset purchases – a form of stimulus paid for by newly printed money, which is called “quantitative easing,” or QE for short – have aided to more than double the amount of the Fed’s current balance sheet since March of 2020, to around $8.6 trillion as of just last week.

‘Expected to be transitory’

Jerome Powell, the Fed Chairman, had signaled during a September meeting that there was “broad support” to start tapering asset purchases, based on a program to complete the effort “sometime around the middle of 2022, which seems to be appropriate.”

A growing group of top investors including the legendary hedge fund titan Paul Tudor Jones II along with PayPal cofounder Peter Thiel have joined with crypto traders in expecting that bitcoin will be effective as an inflation hedge. That is mainly because of the restriction on new amounts of bitcoin, as is hard-coded into the underlying technology.

JPMorgan analysts have said recently that more investors are now seeing the cryptocurrency as a possible hedge against inflation.

But bitcoin also has often been very correlated with United States stocks, which can come under pressure when the Fed tightens their monetary policy, because greater borrowing costs often mean higher financing costs for firms, possibly becoming a drag on their quarterly profits.

Author: Blake Ambrose

High inflation rates in the nation have become a serious problem for Wall Street.

But fortunately for normal investors, Berkshire Hathaway CEO Warren Buffett has the experience to navigate such an environment.

Buffett managed a portfolio through times of inflation in the 1970s and has lots of advice for what to buy and hold when prices spike.

In a 1981 message to Berkshire shareholders, Buffett said there were two characteristics that made a business well adapted to any inflationary environment: 1) the ability to increase prices, and 2) the ability to take on greater business without needing to spend too much to do it.

In other words, aim to invest in asset-light companies with pricing power. Let’s look at two companies that fit this description.

Nike

Nike is a global powerhouse in the footwear market that commands a high loyalty among its customers.

Customers are willing to give top dollar for signature gear linked with high-profile athletes such as Michael Jordan and LeBron James.

Despite the pressures of inflation, Nike continues to grow its gross margins and post great returns on equity higher than 30%.

The company is also captured the full price of its products during an increasingly digital, direct-to-consumer model.

Management thinks digital sales might continue to expand from 20% of revenue currently to around 40% of the business by the year 2025. And price increases might kick in as early as 2022.

Apple

Global demand for Apple’s top hardware is expanding, as are adoption rates for its top-margin Apple services.

Strong brand identity, user friendliness, and a large range of fully integrated products are great attributes that are not going away any time soon.

Customers just cannot afford to live outside Apple’s ecosystem. That gives the tech company more freedom to play with their pricing as inflation goes up.

The company’s newest M1 chips, which has replaced Intel’s CPUs almost every Mac, underscores its commitment to new innovation.

Apple’s ability to pass on rising costs to a global customer base without significant losses of sales is undeniable.

Warren Buffett has allowed Apple to go to 40% of Berkshire Hathaway’s portfolio for a good reason: The business just keeps expanding profits through every economic cycle.

Apple is higher by around 13% ytd and trades at almost $150 a share.

Author: Blake Ambrose

Sustainable-sneaker company Allbirds debuted on the stock market this Wednesday at $21.21, 41% higher than their offer price of $15 per share on the market.

Shares of the California company at last check went up 62% to $25.30. They have traded on Wednesday at as high as $26.30, up 75%.

AllBirds raised up an initial public offering and valued its shares higher than its marketed range to bring in $303 million.

On Tuesday the company said it raised the money after pricing its IPO over the top end of estimates. After marketing 19.2 million shares priced from $12 to $14, It priced 20.2 million shares at $15 apiece.

16.3 million shares were sold in total, by Allbirds and 3.8 million by other current stockholders.

The underwriters also have an option to purchase as many as 504,645 more shares from the Allbirds and up to 2.5 million more from current share holders.

The California company, backed by Franklin Templeton who is an asset manager, started trading on the Market Wednesday under the stock symbol BIRD.

Morgan Stanley leads the underwriters, along with Bank of America and JPMorgan Chase.

Created in 2015, Allbirds stated it would tap into public markets through what it said was a “sustainable public equity offering” as a social, environmental, and governance company.

Allbird’s pitch to shoe-buyers highlights the natural, sustainable materials used in its footwear, including castor bean oil, eucalyptus fiber and wool, as well as crab shells.

By Using “materials that are naturally derived serves as a competitive edge, as we make high quality products that are sustainable and that we think are better than synthetic alternatives across performance, style, and comfort” the San Francisco company stated in a SEC filing.

During the first half of 2021, the company’s net loss went to $21.1 million from $9.5 million. Revenue jumped 27% to $117.5 million from $92.8 million.

As investors search for more gains in the stock market, IPOs are routinely bringing in big money because of the hype, which sometimes is baseless, but other times turns out to be based in facts.

Author: Blake Ambrose

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