The AI Trade Is Still In Play...

Good morning, folks.

AI is not a fad. This technology is here to stay. 

Yesterday, Duolingo, the language learning app, shared an internal all-hands email from its CEO stating, 

“Duolingo is going to be AI-First.”

The company writes, 

“Just like how betting on mobile in 2012 made all the difference, we’re making a similar call now. This time, the platform shift is AI.”

I hope you’re taking notice… AI has enabled a new paradigm shift. 

April was turbulent for markets, but we see relative strength within “AI-infused” risk-on assets. Here are a few of my favorite AI names in play, sorted by the proximity to their 52W High. 

Let’s review the top 5… 

A few weeks back, I shared a post detailing how Netflix reinvents discovery with AI to boost its bottom line. 

$NFLX quietly rests at its all-time high. We want to own stocks exhibiting this degree of relative strength. 

Crowdstrike uses AI for real-time cyber threat detection, automated triage and security automation. Downtown Josh Brown spoke with $CRWD CEO George Kurtz, talking about how the company infuses AI to better its business. I highly recommend you take the time to listen.

$CRWD trades just shy of its February all-time high. If the stock is above 400, the path of least resistance appears higher. 

Palantir leverages AI to analyze complex data, uncover insights, and support critical decisions for governments and businesses. We can’t invest in the CIA - but we can own $PLTR.

$PLTR rests just below its February all-time high. The company is scheduled to report earnings next Monday. I don’t love buying stocks before earnings… but I love buying an all-time high after earnings. Post-earnings announcement drifts are a staple in behavioral economics.

Fortinet uses AI to detect threats and automate cybersecurity responses. Cybersecurity is a no-brainer use case for AI. 

As long as $FTNT holds $100 - we want to be long. 

As we mentioned above, Duolingo is an “AI-First” company. It leverages AI to personalize, adapt, and optimize language learning. 

$DUOL will report earnings tomorrow after the close. If the stock holds 360 after its earnings report, the path of least resistance appears higher. 

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Godspeed - Rosebee

_{Disclosure: The author of this newsletter holds $ACHR/W.}