🤖📈 Top Trade Ideas for July 7th

Threads by Meta has huge potential, 180% upside potential for $ATEX, and more...

Author

Connor Van Ooyen
July 07, 2023

👋 Hello!

Welcome to the 661 new Yellowbrick Road readers who joined since the last issue.

If you find this newsletter useful, please forward it to a friend or share the link.

Our AI read and summarized 183 articles today from all over the internet to find the best trade ideas to help you make more money in the stock market.

What you’ll find in this email:

  • 📱 Threads by Meta has huge potential

  • 🐻 The bearish v bullish case for META

  • 📞 [Premium] 180% upside potential for $ATEX

  • 🤖📈🚗📱 Much more…

*If you missed yesterday’s email, you can read it here

💰 Today’s Featured Trade Ideas

The three best trade ideas our AI tool found today. Make sure to vote on your favorite!

🥇 Taiwan Semiconductor: Thriving Through Turbulence And Building A Bright Future (link)

Ticker: $TSM | Current Price: $99.41 | Price Target: $135 (+36%)

⚡️ Semiconductor | 🇹🇼 Taiwan | 🤖 AI | 📈 Long Idea

The author initiates coverage of Taiwan Semiconductor Manufacturing Company Limited (TSMC) with a buy rating. TSMC has successfully navigated challenges and expects a bottom in the cycle in Q2, followed by a gradual recovery. TSMC's position as a global force in the semiconductor industry is strong, driven by manufacturing, innovation, and customer satisfaction. Despite challenges, TSMC has demonstrated resilience and adaptability. TSMC's market share and dominance in semiconductor manufacturing solidify its standing. TSMC's long-term growth potential remains promising, with exposure to advanced technologies and ongoing investments in R&D. Challenges like inventory corrections and rising energy prices may impact margins in the short term, but TSMC's competitive positioning and cost improvements are expected to mitigate these effects. TSMC's track record, technological prowess, and ability to navigate market conditions make it a compelling investment opportunity. However, investing in TSMC comes with geopolitical risks associated with its location in Taiwan and the threat of a Chinese invasion.

Click here to read the full article

🥈 Meta: Musk Vs. Zuckerberg; Tweets Vs. Threads (link)

Ticker: $META | Current Price: $291 | Price Target: N/A

🧑‍💻 Social Network | ⬆️ Growth | 📈 Long Idea

Meta Platforms has launched Threads, a new platform aiming to compete with Twitter. Threads has already attracted 30 million users and has the potential to become a billion-dollar business for Meta. The timing of its launch is advantageous as Twitter is struggling to grow and users are seeking alternatives. Threads is closely tied to Instagram, requiring users to have an Instagram account to sign up. It offers real-time public conversations, likes, comments, and reposts. However, it does not have a chronological feed or hashtags. Threads is currently only available on mobile and through the app. Meta's data, scale, and financial resources give it an advantage over Twitter. The launch of Threads is seen as a great opportunity for Meta, with the potential for traction and a real battle between the two tech giants.

Click here to read the full article

🥉 RCI Hospitality: Defining Iconoclastic (link)

Ticker: $RICK | Current Price: $75.64 | Price Target: N/A

💃 Nightclubs | 💼 Roll-up | 🏠 Real Estate | ✉️ Investor Letter | 📈 Long Idea

RCI Hospitality is a unique investment opportunity despite facing challenges such as SEC fines, auditor issues, and operating in the entertainment industry during a pandemic. Led by founder and CEO Eric Langan, RCI acquires gentlemen's clubs in the US through a roll-up strategy and has introduced the Bombshells restaurant concept. The author believes RCI presents an excellent opportunity due to its exceptional business and valuation. The roll-up strategy in the gentlemen's club industry is defensible, and RCI has a potential M&A runway with many potential acquisition targets. The regulatory moat in the industry creates favorable terms for clubs, and the longevity of gentlemen's clubs contributes to the resilience of the business. RCI's comps only went down less than 5% during the Great Financial Crisis, indicating strength during economic downturns. RCI also offers gambling options and has a media business dedicated to the gentlemen's club industry. The Bombshells restaurant concept offers strong returns on investment, and the company has multi-franchise deals in place. While RCI has faced SEC fines and auditor issues in the past, the author sees these as resolved issues. The management is described as iconoclastic, and the valuation of the company is considered undervalued. RCI's business model is defensible, and the inclusion of Bombshells adds potential upside. Overall, RCI presents a great opportunity for investors with a long runway for growth and a double-digit free cash flow yield.

Click here to read the full article

Which featured trade idea was the most compelling to you?

Choose your answer below 👇

Login or Subscribe to participate in polls.

Yesterday’s Poll Results (link):

🟩🟩🟩⬜️⬜️ Visa ($V) [45%]

🟨🟨⬜️⬜️⬜️ Topgolf Gallaway ($MODG) [33%]

🟥⬜️⬜️⬜️⬜️ Kraft Heinz ($KHC) [22%]

Your Thoughts:

  • 💳 mau*** ($V): You use your Visa to play golf and buy ketchup. It benefits from the upside of all businesses.

  • ⛳️ dc*** ($MODG): Has the most growth potential with the increasing popularity of golf.

🤔 Stock Market Quiz

The SEC banned this practice after the 2008 financial crisis as it was partly blamed for the downfall of Lehman Brothers and other big banks.

Login or Subscribe to participate in polls.

Yesterday’s Question: Which tech giant had a co-founder that sold their shares for just $800 in 1976? They’d be worth over $70 billion now if he’d held them.

Answer: Apple (Ronald Wayne owned 10% of the company but sold it back to Jobs and Wozniak just 12 days after the company started).

🐻 Bearish v 🐂 Bullish

Company: Meta ($META)

Bullish Reasons:

  1. Investments in AI: Meta is investing in AI technology, which could lead to the creation of AI agents for business messaging and customer support as well as improving its ad platform. This could enhance user experience and attract more businesses to its platform.

  2. Open Ecosystem for Large Language Models: Meta is working on creating an open ecosystem for large language models, which could standardize the use of these open tools in the industry and make it easier for other companies to integrate with Meta's products and platforms

  3. New Product Launches: The Threads app was over 30M users in less than one day and they are continuing to work on AI experiences with Oculus.

Bearish Reasons:

  1. Regulatory Risks: Meta Platforms faces regulatory risks in various markets, which could impact its operations and financial performance.

  2. Investment in Metaverse: The company's significant investment in the development of the metaverse is a risky venture, as the commercial viability

  3. Data Privacy and Security Concerns: Meta has faced multiple class actions and regulatory scrutiny related to its platform and user data practices. The misuse of data by a developer, who shared such data with third parties in violation of Meta's terms and policies, has led to these lawsuits seeking unspecified damages and injunctive relief

Are you bearish or bullish on $META?

Login or Subscribe to participate in polls.

Yesterday’s Results for $KHC (link):

🟩🟩🟩⬜️⬜️ 🐂 Bullish (64%)

🟨🟨⬜️⬜️⬜️ 🐻 Bearish (36%)

💰📈 Winning Trade from a Previous Email

Opera ($OPRA): An Undervalued Small Cap (link)

Ticker: $OPRA

Date Published: 2023-04-26

Return: +108% ($11.36 → $23.66)

📈 Premium Trade Ideas

These premium trade ideas include trade ideas from research reports, analyst upgrades, and hedge fund investor letters.

Get 30 Days of Premium Trade Ideas for FREE!

This section contains 5 premium trade ideas and is for premium subscribers only. Click the button below to try out premium completely free for 30 days. If you don’t find it valuable, you can cancel online anytime without ever paying a penny!

Subscribe to Premium to read the rest.

Become a paying subscriber of Premium to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • Get the stock ideas before they are sent in the free email
  • • A TON of extra exclusive trade ideas (50+ each week) that are put on a website where you can easily search and filter them.
  • • Access to the Yellowbrick Road Premium Portfolio with $10,000 that gets invested in the stock ideas we find
  • • $10/month discount on CEO Watcher premium

Reply

or to participate.