Author: Editor

Pay close attention to the artificial intelligence boom.

With it, we could be looking at a potential $641.3 billion opportunity.

According to Verified Market Research, the Global Artificial Intelligence Market size was valued at $51.08 billion in 2020 and could hit $641.3 billion by 2028, growing at a CAGR of 36.1% from 2021 to 2028. AI could revolutionize every industry from consumer products and transportation to healthcare and manufacturing, as corporate America races to embrace machine learning, deep learning and other processes that allow computers to perform tasks that generally require human intelligence.

One of the stocks booming with AI is AI application software company, C3.AI (AI).

At the moment, the company delivers a family of fully integrated products including the C3 AI Suite, an end-to-end platform for developing, deploying, and operating enterprise AI applications and C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally.

Earnings have been just as impressive.

In fact, in its latest quarter, CEO Tom Siebel said, “We killed. We had an exceptionally strong quarter, exceeding everyone’s expectations,” as quoted by Barron’s.

The company saw revenue of $69.8 million, up 42% year over year. That was above the company’s own guidance of $66 million to $68 million, and above Street expectations for $66.8 million.

Barron’s added: “The company now sees revenue for the April 2022 fiscal year in the range from $251 million to $252 million, with a non-GAAP loss in the range from $90 million to $94 million; previous guidance called for revenue from $248 million to $251 million, and a loss in the range from $100 million to $108 million,” added Barron’s.

Plus, the “company’s goal is to establish itself as the market leader in enterprise AI software.”

“We did that at Oracle with relational database-management software, and we did it at Siebel Systems in customer-relationship management,” added. “Investors may not understand the magnitude of the addressable market. But that’s OK. I don’t feel mistreated. It’s fine. But the stock is a screaming buy.”

If you need gas for your car, you may want to fill up now.

Oil prices are up more than $8 a barrel at the moment, as Russia bears down on Ukraine. While the increase hasn’t hit gas prices just yet, it will.

While the International Energy Agency will release 60 million barrels from global reserves to help cool off supply issues, according to CNBC, the situation could get far worse.

“The situation in energy markets is very serious and demands our full attention,” IEA executive director Fatih Birol said in a statement. “Global energy security is under threat, putting the world economy at risk during a fragile stage of the recovery.”

Unfortunately, $106 oil may not be the worst of it.

There’s also fear the war could send crude to $130, even $150, near-term. Coupled with tight crude supply with growing demand, and we’re running into a severe problem.

In addition, “The oil market is heading for simultaneously low inventories, low spare capacity and still low investment,” Morgan Stanley analysts wrote in a research note, lifting their price forecast for the summer quarter by $10 a barrel, to $100 for Brent and $97.50 for West Texas Intermediate,” as noted by The Wall Street Journal.

The only good news – the stocks and ETFs we’ve mentioned are rocketing higher.

Those include:

SPDR Energy Select Sector ETF (XLE)

When we first highlighted the XLE, it traded at $52.70. It’s now up to $71, and could be headed to $75 near-term unless oil prices run.

The XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less.

Invesco DB Oil Fund (DBO)

DBO traded at $13.85 when we first mentioned it.

It’s now up to $16.27, and could push higher with oil prices. This ETF seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the Fund’s holdings of primarily US Treasury securities and money market income less the Fund’s expenses. It trades WTI crude futures.

iShares Global Energy ETF (IXC)

IXC was at $27. It’s now up to $33.67 and pushing higher.

The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector. Trading at $27, some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.

Hydrogen stocks are on the move.

All after Goldman Sachs said hydrogen generation could be a $1 trillion per year market.

“If we want to go to net-zero we can’t do it just through renewable power,” Michele DellaVigna, the bank’s commodity equity business unit leader for the EMEA region, told CNBC. “We need something that takes today’s role of natural gas, especially to manage seasonality and intermittency, and that is hydrogen.”

Its why investors may want to consider taking a position in stocks, such as:

Ballard Power Systems Inc. (BLDP)

After finding double bottom support around $9, BLDP is just starting to push higher. From a current price of $11.19, we’d like to see it test $15, as we near earnings in March 2022.

Helping, major automakers are looking to build hydrogen models, according to Reuters.
BMW for example is planning a model, and has built a hydrogen car prototype. Even Volkswagen’s Audi brand says its researching hydrogen technology.

One of the top stocks that could benefit from all of that is Ballard Power Systems. While the stock is down at the moment, don’t write it off just yet. As the hydrogen market grows, it should benefit the company.

Plug Power (PLUG)

Plug Power is also breaking higher on the Goldman Sachs news.

Plus, analysts seem to like the stock. Susquehanna analysts, for example, set a new price target of $26 a share on the stock. Morgan Stanley has even said the pullback in PLUG is overdone, with analysts setting a price target of $65.

Shares of PLUG last traded at $25.12 this afternoon.

Bloom Energy (BE)

Challenging prior resistance around $23, Bloom Energy could break out, and potentially test $26 a share next. Analysts at Susquehanna just upgraded the stock to positive from neutral, with a price target of $33 from $18.

As noted by TheFly.com, the firm, “believes the current escalation in geopolitical risks should provide a boost for hydrogen adoption, especially in Europe and other import-dependent markets. Bloom’s solid oxide fuel cells could be a key beneficiary given its fuel flexibility and higher efficiency.

There’s growing fear of cyberattacks, we noted on February 22.

In fact, the FBI has called on the private sector to be prepared for potential attacks launched by Russia throughout the latest chaos with Ukraine.

We’re also hearing U.S. banks are prepping for potential cyberattacks after Russian sanctions.

“Among the threats they are preparing for: ransomware and malware attacks; denial-of-service attacks that take down websites; and data wiping and theft, possibly simultaneously,” reports Reuters. “Western governments have warned for weeks that the tensions could spark massive cyberattacks from Russia or its supporters.”

And, as reported by The Cybersecurity & Infrastructure Security Agency (CISA), as quoted by TheHill.com, “While there are no specific or credible cyber threats to the U.S. homeland at this time, we are mindful of the potential for Russia’s destabilizing actions to impact organizations both within and beyond the region, particularly in the wake of sanctions imposed by the United States and our allies. Every organization—large and small—must be prepared to respond to disruptive cyber activity.”

It’s why – on February 22 – we said you may want to keep these stocks on radar.

Global X Cybersecurity ETF (BUG)

Since mentioning the BUG ETF, it ran from about $28 to $30.94.

“The Global X Cybersecurity ETF (BUG) seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices,” says Global X.

iShares Cybersecurity and Tech ETF (IHAK)

Since February 22, IHAK ran from about $38 to $41.71.

According to iShares, “The iShares Cybersecurity and Tech ETF seeks to track the investment results of an index composed of developed and emerging market companies involved in cyber security and technology, including cyber security hardware, software, products, and services.”
Some of its top holdings include Zscaler, Fortinet, Docusign Inc., Okta Inc. and Proofpoint Inc.

Palo Alto Networks (PANW)

Since February 22, PANW ran from about $470 to a recent high of $592.

PANW is one of the biggest cybersecurity firms in the world. Even after running from a low of $225 to $470, it could still see higher highs. JMP Securities recently assumed coverage of the stock with an outperform rating with a target price of $620. Even Citi just initiated a buy rating on the PANW stock with a $585 price target.

All systems go for Virgin Galactic Holdings (SPCE).

Just the other day, the company opened ticket sales to the public for the first time.

All you’ll need is a $150k deposit. Pocket change, right? I kid.

“Virgin Galactic ticket prices start at $450,000 each, as the company revealed last year, with three different sales offerings: a single seat purchase, packaged seats for couples, friends or family, or opportunities to book entire flights. The company has said previously that — of the $150,000 deposit — $25,000 is not refundable,” according to CNBC.

If all goes well, this could be the start of a massive space tourism industry.

Remember, according to analysts at Cowen, “39% of people with a net worth of more than $5 million are interested in paying at least $250,000 for a flight.” In addition, by 2040, Morgan Stanley believes the space tourism industry could be worth about $1 trillion.

Helping, SPCE just reported better than expected earnings.

The company reported a 31-cent loss on $141,000 in revenue. That’s far better than expectations for a loss of 34 cents.

According to Michael Colglazier, CEO of Virgin Galactic. “We achieved many important milestones in 2021 that laid an essential foundation towards becoming a scaled, commercial operation. In recent weeks, we opened sales to the general public and launched our new global consumer brand. Demand for our one-of-a-kind experience remains strong, and we are currently building our operations to accommodate our growing customer base.”

Get set for sticker shock at the pump.

Crude oil prices are pushing toward $100 a barrel. All after Russian President Putin ordered troops into Ukraine, raising fears of a massive war.

As noted by Barron’s, “The picture darkened on Monday as Putin recognized two breakaway regions in Eastern Ukraine—already controlled by separatists—and ordered troops into the area. In response, President Joe Biden signed an executive order restricting U.S. business with the breakaway regions, and wider sanctions are expected to follow globally.”

There’s also fear the war could send crude to $130, even $150, near-term. Coupled with tight crude supply with growing demand, and we’re running into a severe problem.

Here’s hoping for the best.

While investors can always pick up oil ETFs, such as SPDR Energy Select Sector ETF (XLE), Invesco DB Oil Fund (DBO), and iShares Global Energy ETF (IXC), take at oil stocks that also pay out healthy dividends. For example, BP PLC (BP) carries a dividend yield of 4.23%.

Exxon Mobil (XOM) carries a dividend yield of 4.65%.

Most recently, “XOM declared a cash dividend of $0.88 per share on the Common Stock, payable on March 10, 2022 to shareholders of record of Common Stock at the close of business on February 10, 2022. This first quarter dividend is at the same level as the dividend paid in the fourth quarter of 2021. Through its dividends, the corporation has shared its success with its shareholders for more than 100 years and has increased its annual dividend payment to shareholders for 39 consecutive years,” as noted by the company.

Williams Companies Inc. (WMB) carries a yield of 5.83%. The company has paid a dividend every quarter since 2974.