The article presents Adobe (ADBE) as an attractive investment opportunity given its near-monopoly on creative software and its innovative products. Adobe's success is attributed to its demand-driven operating model, focus on customer feedback, and continual product innovation, especially in AI. Adobe is acquiring Figma, a web-first collaborative design platform, for $20 billion, which is expected to be a significant growth driver, although there are concerns about potential rejection from regulatory authorities. Despite economic and technological risks, Adobe's stock is currently trading at 16.4x the FY2023 consensus EBITDA and 14.7x the FY2024 consensus EBITDA, with expected revenue growth of over 9% this fiscal year and nearly 12% in fiscal year 2024. The author recommends buying Adobe stock with a $460 target (currently $341), which is a 20x multiple on FY24 EBITDA.

Cloudflare, a provider of cloud-based network services, saw a 37% rise in Q1 revenue, although growth slowed from previous quarters. The company has lowered its full-year revenue guidance but raised its operating profit and non-GAAP EPS guidance. It faces challenges in expanding sales within its customer base due to cost-cutting measures, but it remains a highly competitive player in a large and growing market. Despite trading at high multiples relative to peers, analysts maintain a near-term BUY rating with a revised target price of $80. Cloudflare offers a free service to attract testers and early-warning cyberattack detectors, and its network is seen as a key competitive advantage. However, it faces competition from industry leader AWS and must avoid hyperscaler lock-in. The company had $1.72 billion in cash and near cash equivalents at the end of 1Q23, with $1.44 billion in debt. Despite a valuation above the peer average, the author maintains a BUY rating with a revised target price of $80.

Uber reported a strong Q1 performance, with revenues up 29% YoY and adjusted EBITDA up $593 million YoY. The company saw growth in all major markets and its membership program, Uber One, is driving a significant portion of its growth. Uber's advertising division also experienced substantial growth, with Cartop Ads expected to contribute towards driver retention and increased revenues. The author predicts gross bookings for the rest of the fiscal year will be robust, with a total FY23 gross bookings of $130 billion. Uber's valuation was estimated using a forward EV/adjusted EBITDA multiple of 30x, resulting in an enterprise value of $108 billion. However, the author notes potential issues with Uber Freight's performance and increased stock-based compensation. Despite these issues, the author believes that Uber is a strong long-term investment, with potential for further growth and stock price increase.

Enphase Energy's share price fell over 20% following Q1 2023 results due to weak guidance for Q2 2023, which was 5% lower than consensus. This was attributed to a temporary slowdown in the US, difficulties for installers due to higher interest rates, and changing working capital needs. However, the company's guidance may be conservative and sell-through is expected to improve in Q2 2023. Europe could also drive growth and Enphase's market share is stable. The company is selective with buybacks, only buying back stock when the price is below its estimated intrinsic value. Given the current lower share price and increased cash on the balance sheet, more buybacks could occur. With the share price at 22x 2024 P/E, the author views the sell-off as an opportunity, suggesting the stock is now an attractive risk-reward proposition.

Squarespace started fiscal 2023 strongly, with resilient customer retention and record customer trials, leading to a 14% YoY revenue increase in Q1 2023. The company is primarily targeting entrepreneurs and micro businesses, and is making an aggressive move into e-commerce. However, it faces fierce competition in a dynamic, fragmented market, necessitating significant investment in marketing, sales, and product innovation. The shares are currently overvalued, trading at a 22% premium to the updated fair value estimate of $22.50 per share. Squarespace's key differentiators can be replicated by competitors, adding to potential market share losses and pricing pressure. The company's future growth is expected to be driven by the reacceleration of average revenue per subscriber growth and the uptake of add-on commerce solutions and higher-value subscriptions. Squarespace is also exposed to swings in economic conditions, and is highly reliant on entrepreneur and micro business customers. Despite this, the company's balance sheet is sound, with healthy free cash flow generation and a net cash position expected from fiscal 2024. Squarespace has executed several acquisitions since 2019 to bolster its offering, and it announced a $200 million share buyback during fiscal 2022.

Assured Guaranty (AGO) has made significant progress in growing its intrinsic value, settling most of its Puerto Rico exposure, and positioning itself for new business growth. AGO has a strong capital position and a clean insured portfolio. It reported solid Q1 results, with strong new business production and continued market leadership. AGO's future earnings and return on equity are set to benefit from reinvesting maturing bonds and new premiums at higher rates. AGO announced a deal to merge its asset management business with Sound Point Capital Management, which should improve profitability and remove operational distractions. However, AGO's buyback activity was weak in Q1 due to limited dividend capacity. The company has been reducing its Puerto Rico exposure, with only PREPA remaining. Despite a clean balance sheet and strong performance, the stock is trading significantly below its operating shareholders' equity and adjusted book value. The stock is estimated to be worth $70-$80 per share (currently $53), indicating a strong risk/reward profile at current prices.

Upstart reported strong 1Q23 earnings with net revenues slightly above guidance and increased contribution margin. The company expects to reach EBITDA breakeven in 2Q23, backed by workforce reductions and spending optimization. Upstart has also secured multiple long-term funding sources, expected to bring $2 billion in the next 12 months, which will enhance business resilience and predictability. The company is expanding its product offerings beyond personal loans, entering the auto retail lending and home equity markets, thereby diversifying its revenue sources. The financial health of the average US consumer seems to have stabilized or improved in 1Q23, according to the Upstart Macro Index. Despite these positives, the company needs to continue investing in innovation to remain competitive. The market may be underestimating Upstart's potential for EBITDA positive results in 2023, which could lead to further upside revisions to EPS and EBITDA.

Hanesbrands Inc., despite facing challenges such as excess inventory, high shipping costs, and a looming debt, is considered undervalued by the author who anticipates a 1.5X-4X return when the company returns to normal business levels. The company, which primarily owns 60% of their plants and manufactures most of their products overseas, suffered a ransomware attack and loss of traction in their Champion segments due to the popularity of athleisure and private labeling. However, management is now addressing these issues, learning from their mistakes, managing debt and dividends, growing their brand, and expanding their ecommerce presence on Amazon. The company has launched an offering of $600 million of senior notes due in 2031 at a 9% coupon to prolong their debt obligations due in 2024, and it has eliminated the dividend completely to allocate all future cash flows to pay down the debt. The author sees Hanesbrands as a strong brand in an ecommerce setting and is optimistic about its return to normal margin levels due to recent quarterly performance and guidance of $500 to $550 million in operating profit this year. The author believes the current valuation of Hanesbrands heavily favors the reward side and considers it one of the strongest plays of current times, despite the main risk being a failure to return to normal margin levels.

Planet Labs (PL) is a top player in next-generation Earth Observation with a 200-satellite fleet and a cloud-native analytics platform. The company sees a huge market opportunity in satellite data services, digital transformation, and sustainability. PL's new products extend its lead in next-gen EO and its unique capabilities enable it to play a vital role in digital and sustainability transformation. The satellite data services market is projected to expand from $5.5 billion in 2019 to $19 billion in 2027. PL's valuation premium to its peers is viewed as warranted by the author due to its operational fleet and $100 million+ in revenue. However, PL is vulnerable to the loss of significant customers, which could impact revenue growth and net dollar retention rate. The government side of PL's business is also at higher risk due to political, budgetary, and other unpredictable challenges. Furthermore, PL's plan to expand into new verticals may be more challenging than expected. The author has a one-year price target of $5.40 (currently $4.20) on the stock based on a forward EV/Sales assumed multiple of 4x applied to the FY25 consensus revenue estimate of $342 million.