The artificial intelligence bubble for speculative stocks popped. While Nvidia (NVDA) is the exception to a sell-off for AI stocks, its sale of SoundHound AI (SOUN) sent the stock down by 28.1% last Friday.
Nvidia filed a 13-F that indicated the firm closed its position on SoundHound AI, Nano-X (NNOX), and Serve Robotics (SERV). Nvidia also sold some of its Arm Holdings (ARM) shares. Investors should be wary of SERV stock. The robotic solution for delivering goods is not attractive, since it lacks a moat.
Informatica (INFA) lost 24% of its value after posting Q4/2024 results. Revenue fell by 3.8% Y/Y to $428.3 million. The CEO said that the company is in the final stages of its cloud-only transformation.
To support its share price, Informatica added $400 million to its stock buyback program. The total authorization is $400 million.
Communications software firm Twilio (TWLO) retreated by 15% to close at $125.17. It earned $1.00 in non-GAAP EPS. Despite strong Y/Y improvement in income and revenue growth of 10.2% to $1.19 billion, investors expected more.
The company has strong bookings growth. New bookings are tied to multiyear deals, so the customer growth will not show up until later quarterly reporting periods.
Among the stocks mentioned above, TWLO stock is the most attractive. It has strong growth, profitability, and positive stock momentum. Analysts will continue to hold or even raise their earnings forecast for Twilio.
