PayPal has struggled with poor growth strategy, cost base, and acquisitions, leading to a decline in share price. However, the company has implemented cost reductions and is focused on improving transaction margins. Q1 2023 results showed stability and early signs of improvement, but the reacceleration in volume and revenue growth has come from sources with inferior economics. PayPal is focused on substantially improving the margin structure, including through expansion into higher-margin non-U.S. markets and value-add services. The article discusses the potential risks and rewards of investing in PayPal, with the potential for shareholders to double their money in 2.5 years if there is a successful turnaround. The author reiterates their Buy rating on PayPal stock.

The author recommends Unity Software as a promising tech stock, despite its underperformance this year. Unity Software recently reported a 56% YoY revenue growth in Q1 due to the ironSource acquisition, contributing to a double-digit gain in its stock price. The company also showed positive Adjusted EBITDA values, largely due to expense leverage from the acquisition and multiple rounds of layoffs to reduce costs. Despite a -2% YoY pro forma revenue, analysts still expect ~20% annual revenue growth. Unity Software has over 1,300 customers generating at least $100k in annual revenue, and net dollar expansion is still over 100%. Based on forward revenue estimates, the stock is currently cheap, but the author believes investors will be willing to pay more for Unity's growth stream as its path to profitability becomes clearer.

The author maintains a high conviction investment thesis for Advanced Micro Devices (AMD), despite a decline in revenue and profitability metrics in Q1 2023. The author suggests that the stock is undervalued despite its significant year-to-date rally. AMD's Q1 2023 results showed a beat in revenue and non-GAAP EPS, despite a challenging environment. The decrease in revenue was mainly due to a 65% drop in the Client segment, offset by nearly threefold growth in the Embedded segment. The Data Center segment showed a promising double-digit percentage growth YoY, with AMD gaining market share from Intel. Additionally, AMD sees significant growth opportunities in the AI computing era and has made substantial progress in its AI roadmap and customer engagements. Despite the PC market's weakness, the author believes the potential of AI outweighs this issue. After updating their valuation of AMD stock, the author concludes that AMD is still an attractive investment opportunity with significant room for share price upside, reiterating a "Strong Buy" rating.

SoFi Technologies, Inc. has been growing rapidly with its personal loan book increasing fivefold from less than $2Bn in early 2021 to over $10Bn as of Q1 2023. However, the company has deviated from its gain-on-sale model, essentially freezing the sale process over the last six months. Despite CEO Anthony Noto's insider buying, concerns have been raised over the recent Q1 2023 10Q filing. The company used a third-party firm for fair value measurement of its loans, resulting in two favorable adjustments in the last two quarters totaling ~$700Mn for its ~$10Bn personal loan portfolio. Yet, the justification for these adjustments isn't compelling, raising concerns about SoFi's ability to sell its loans at the marked fair value. Any future sales below this value would significantly pressure the company's equity, regulatory capital, and customer confidence. Therefore, until SoFi can convincingly demonstrate that its loan fair value measurement is genuinely market-aligned, the risks of owning SoFi stock are considered too substantial.

Gemfields Group, the world's largest colored gemstones miner, is viewed as a promising investment despite operating in politically unstable regions like Mozambique and Zambia. The company, headquartered in Guernsey, owns major assets including the world's largest emerald and ruby mines and the iconic luxury brand Faberge. Guided by an Africa-first approach, Gemfields has formed strong partnerships with local governments, contributing significantly to their economies. While it grapples with potential risks such as security concerns and market competition from artificial gems, the company, with its prospects for high dividend returns and multiple assets, aims to become the "De Beers of colored gemstones". In its current state, the company can potentially return its whole market cap in dividends within five years.

NewtekOne Bank boasts a strong moat due to its Preferred Lender Program (PLP) status granted by the SBA, enabling it to earn 11.25% on loans with a solid risk profile. The bank's loan portfolio is diversified across industries and geographies, and it offers competitive deposit rates due to high margins on loan interest. NewtekOne is exceeding its own projections in gathering deposits and is targeting stable, "sticky" deposits. The bank's cost-effective business model doesn't require brokers, branches, or business development officers, and it plans to stop conducting substantial securitization offerings due to the funding advantage that deposits offer. The bank's CEO, Mr. Sloane, believes that NewtekOne's asset-light subsidiary businesses are undervalued according to accounting standards for banks. NewtekOne is currently trading at a ~21% discount to Mr. Sloane's valuation. Over the next 1-2 years, deposit growth will be the most important metric to track. The author rates NewtekOne a "strong buy" due to its discount to fair value and competitive position in the market.