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Alphabet Inc. (GOOG $350.60)
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Applied Digital Corp. (APLD $34.30)
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Brookfield Corporation Class A Limited Voting Shares (BN $61.07)
Q: what is your opinion on this company and how do you see it preforming going forward? Would this be a buy and hold as an Ai infrastructure play or s there others you would recomend? I own Goog, NVDA and BN for some exposure already
5i Research Answer:
APLD is a solid company in the right sector at the right time. Shares are up 632% in a year. This does make them expensive on valuation. Growth is high, but it is still losing money (annually) and also still has negative cash flow. But it made money in its recent quarter and sales were 65% ahead of estimates. Last week it signed a $7.5B hyperscale lease deal. The stock has many of the classic signs of a momentum stock and we think will continue to do well. We would consider it higher risk but ownable for investors looking for AI exposure.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in GOOG.