During Q1, Third Point invested in GOOGL, seeing a unique entry point due to fears around AI and ChatGPT/MSFT. The market underestimates GOOGL's own capabilities and opportunities in generative AI, despite the company being a leader in AI for years and pioneering software and hardware innovations. At Google I/O, GOOGL previewed its latest large language model and AI-powered product improvements, putting the company on the offensive in the age of AI. This allows for growth in consumer engagement, competitiveness against Microsoft Office, and differentiation from AWS and Azure. GOOGL is committed to reengineering its cost base for sustainable and consistent margin expansion, with 70% of its revenues coming from Search with 90% incremental margins, yet consolidated operating margins were only 32%. The improvement in communications around AI capabilities at the I/O conference received significant attention and helped buck the negative narrative around Google's technological leadership.

The article discusses CrowdStrike's market leadership in Endpoint protection and presents a bullish argument for investing in the company. CrowdStrike's Falcon platform has a leading share of 17.7% and outperforms Microsoft in most categories. The company has a strong customer retention rate and a growing customer base, including many global and Fortune 500 companies. CrowdStrike has defended its market leadership and grown its share by 3.8% in 2022, adding 6,694 customers representing growth of 41%. The company's strategic edge is highlighted by executives from SentinelOne joining their team. The biggest risk for shareholders is the company's historically high valuation.

MicroVision is expected to experience significant revenue growth driven by the Automotive Advanced Driver Assistance Systems market growth, successful custom ASIC tools, and MEMS-based high-speed lidar sensors. The company has exposure to other markets like smart infrastructure and robotics, which could imply even more revenue growth. However, MicroVision competes with other lidar developers who may have larger resources and could commercialize and develop products faster, leading to lower market share and margins. The company expects to deliver cumulative sales volume through 2030 of close to 75-90 million units and potential cumulative EBITDA through 2030 of close to $1.5-$2 billion. The cash flow model predicts net income growth close to 14.8%, and the equity valuation would be close to $857.626 million, and the implied price would be close to $4.855. However, there are risks that could impact its stock valuation if FCF expectations decline or if management cannot deliver expected revenue and EBITDA growth. Despite these risks, the author believes that MicroVision could trade at higher prices if the Automotive Advanced Driver Assistance Systems market grows as expected and the company successfully develops and sells its products.

Equinor has been highly profitable in the last five years, leading its peers in gross profitability, operating margins, and returns. The company has generated over 93% of its market cap in free cash flows, providing support for future capital distribution. Despite its profitability, Equinor's share price has only risen by 4.26% in the last five years, compared to a peer group average of over 16%. Equinor's dividend issuance has contributed to a total shareholder return of 33.5%, compared to a peer group average of 48.08%. Equinor's profitability has significantly improved since 2016 due to tying executive compensation to return on average capital employed and TSR relative to the company's peer group. Equinor has a P/E multiple of 3.08 compared to a peer group average of 6.58 and an FCF yield of 17.94%, which is higher than the peer group average of 16.7%. Equinor's management has turned the business around since 2016, with an incentive for improving capital allocation, increasing dividends and share repurchases, and the company is trading at a low multiple.

The surge in AMC stock prices is driven by speculation and hype, not reflective of the company's actual value. AMC has a high debt load and has been struggling financially even before the pandemic. \"Apes\" investing in AMC may be motivated more by a desire to stick it to hedge funds than by a belief in the company's long-term prospects. Short squeezes can drive up stock prices in the short term, but this is not a sustainable strategy for long-term investing. The outcome of the lawsuit involving allegations of fraud and manipulation by AMC and its executives in relation to the issuance of securities is uncertain and could have significant implications for AMC and its shareholders. The CEO of AMC has used memetic energy to raise capital online and has found creative solutions to keep the company alive during the pandemic. The court will only consider the fairness of the give versus the get in the settlement regarding AMC's issuance of more shares. The use of blockchain technology for stockholder records has been advocated for by Vice Chancellor Laster. The economic equivalence of AMC apes to regular shares is being questioned, particularly in regards to voting rights. The scope of the release in a potential settlement is a point of concern, as it may be too broad and include claims from ape holders who are not part of the settlement.

The Toyota Tacoma is a midsize pickup truck that has been successful in the US market due to Toyota's steady approach to product improvement. Toyota grew Tacoma's sales as GM and Ford de-emphasized and dropped smaller pickup models. Toyota's Hilux midsize pickup, which sells outside the US, was the third best-selling pickup globally in 2022. The midsize pickup truck segment is growing, and Toyota is currently dominant, but GM and Ford have recently entered the market. Toyota has redesigned its Tacoma midsize pickup for 2024 with new features and options, including a gas-electric hybrid powertrain. A battery-powered midsize truck is unlikely due to cost and engineering challenges. The competition will likely cause Tacoma's market share to fall, but Toyota has a history of being pragmatic and withdrawing from markets when necessary. The author predicts that Tacoma will remain Toyota's anchor in the U.S. truck market and rates Toyota as a buy for patient long-term investors. Toyota's recent electrification strategy includes launching 10 new battery electric vehicles (BEVs) by 2026 and placing greater emphasis on battery-electrics while continuing to offer models with a variety of technologies. Toyota could have followed the lead of its competition and vowed to eliminate fossil fuel models by some date certain, but instead chose to be ready to adjust to an unpredictable future and avoid embracing fads too soon.

The author believes in conservative portfolio positioning to avoid blowing up, and defensive businesses tend to perform better over the long-term. Pizza Pizza (TSX:PZA) is a defensive stock that may be entering a new growth phase. It is Canada's largest quick-serve pizza chain with over 700 locations split between the Pizza Pizza and Pizza 73 brands. Pizza Pizza is a royalty company, and investors get a percentage of sales straight off the top line. The company focuses on value, digital ordering, and menu innovation to stay relevant in a competitive market. Pizza Pizza has potential for expansion in Quebec, B.C., New Brunswick, Nova Scotia, and Newfoundland. The author suggests that Pizza Pizza should consider getting rid of Pizza 73 and focus on expanding their own brand. Pizza Pizza has begun an expansion plan in Mexico with its new brand, Pza Pizzeria, which could be a compelling long-term opportunity. The stock currently yields 5.9%, and the payout is expected to slowly increase over time. Pizza Pizza could deliver a 10-12% total return annually over the next five years. The biggest risk is Pizza 73 continuing to stumble in the tough Alberta market.

The article discusses the differences between banks and insurance companies in terms of their sources of funds and methods of managing money. Insurance companies bear solvency risk on both sides of the balance sheet, making disciplined underwriting critical to long-term success. The insurance industry can be divided into opportunistic and non-opportunistic insurers, with investors favoring those that rely on consistently profitable underwriting rather than the float. Fairfax Financial is highlighted as possessing all four characteristics of a great growth insurance business and is expected to focus on certain investment buckets, including hidden assets such as Digit. Fairfax has the potential to generate significant after-tax earnings run rate by 2023 and may enter a long period of significant buybacks.

PDS Biotech develops immunotherapies for targeted cancers and infectious diseases using proprietary technologies like Versamune and Infectimune. Their pipeline targets a range of cancers, including HPV-positive and prevalent types, and designs vaccines capable of durable immune responses. The preliminary results from their Phase 2 trial were encouraging, demonstrating enhanced treatment efficacy and a favorable safety profile. However, there are risks associated with clinical trials, regulatory approval, commercialization, competition, and financials. The innovative combination of PDS0101 and Keytruda could be a potential game-changer in the immunotherapy landscape, but success in Phase 2 does not guarantee success in later-stage trials. The company's increased net loss in Q1 2023 indicates a rising burn rate, which could deplete cash reserves sooner than expected and necessitate additional fundraising that could dilute existing shareholders. Investors should closely monitor upcoming clinical data and have a higher risk tolerance.

Chipotle's Q1 2023 earnings led to a 15% increase in stock price and a year-to-date return of 63%. The market perceives Chipotle as a growth stock rather than a value stock, which explains its high valuation. Using a DCF model based on 7,000 stores, 15% WACC, and 10% free cash flow margin, the calculated target price is $329 per share, representing an 84% downside from the current price. However, using the assumption of 28,000 stores globally and a WACC of 10%, the author suggests a stock target price of $1439 per share, which indicates that the stock is fairly valued at the current price level. If CMG adopts a franchise model and achieves the same free cash flow margin as McDonald's, the author estimates a price target of $4,800 per share, representing a 132% upside. The author emphasizes the importance of sensitivity analysis in utilizing the DCF model and the rule of margin of safety in decision-making. The company has a history of increasing its free cash flow margin through cost-cutting strategies and investments in technology and food preparation processes. The lack of long-term margin guidance presents an opportunity for stock appreciation. The stock is rated as a "buy," and investors are advised to adopt a long-term hold approach or take advantage of occasional buying opportunities.