Here is the list of the most Hyped assets of the week insights and analysis
Feb 13 - Feb 17 2023
Gaotu Techedu Inc. (NYSE: GOTU)
China's Gaotu is a technology-driven education firm that offers large-class online tutoring services.
The business provides educational services, instructional materials, and digital learning goods.
Gaotu uses an online live large-class format to conduct its courses because the company thinks it's the most efficient and scalable way to get China's aspirant students access to scarce, high-quality teaching materials.
The company uses big data analytics, which makes it possible to apply the newest technologies to enhance teaching methods, student learning outcomes, and operational effectiveness.
Gaotu Techedu finally caught a second wind in December, when the Chinese government repealed its zero-COVID policy and began to reopen its economy. However, China is pulling the rug out from under investors again -- and announcing new regulations on education companies.
Shares of several Chinese companies including Gaotu that trade on U.S. Exchanges jumped after U.S. and Chinese financial regulators announced a preliminary agreement on a long-standing auditing dispute between the two countries.
Additionally, Gaotu reported first-quarter earnings earlier last week that showed how much it benefited from the events mentioned previously. While its revenue had previously taken a hit, the company has now returned to profitability.
Hype Change: 400%
Price Change: 33%
Palantir Technologies Inc. (NYSE: PLTR)
A publicly traded American corporation, Palantir Technologies, also focuses on Big Data Analytics.
Palantir's stock will suffer a difficult week, with a potential breakdown to a new record low on the horizon, as the out-of-favour data-mining specialist’s fourth-quarter financial results will likely reveal another slowdown in both profit and revenue growth.
Palantir has missed Wall Street’s profit estimates in the last four quarters, reflecting the negative impact of various headwinds on its business.
At current valuations, the Denver, Colorado-based big-data firm has a market cap of $15.6 billion. Shares, which have bounced back to start the new year along with the tech-heavy Nasdaq, are up 17% thus far in 2023. Notwithstanding the recent turnaround, the stock remains over 80% below its January 2021 all-time high of $45.
Hype Change: 200%
Price Change: 25%
Airbnb, Inc. (NASDAQ: ABNB)
The San Francisco, California-based company Airbnb, Inc. runs an online marketplace that specializes in experiences and short-term homestays.
Financial results outperformed guidance from management and surpassed Wall Street's expectations. And that's why Airbnb stock was up 13% as of 12:45 p.m. ET, jumping to a six-month high.
For Q4, Airbnb's management had guided for revenue of up to $1.88 billion.management had guided for about a 22% margin for adjusted EBITDA, which ended up at almost 27% thus far exceeding expectations again.
Another highlight for Airbnb in 2022 was its profitability -- specifically, net income according to GAAP. The company had $1.9 billion in full-year net income, compared to a net loss of $352 million in 2021.
Hype Change: 100%
Price Change: 30%
The growth of Airbnb appears promising in the future. In the first quarter of 2023, management is forecasting revenue growth of between 16% and 21% year over year.
Coinbase Global, Inc. (NASDAQ: COIN)
Coinbase, runs a bitcoin exchange platform.
By trading volume, it is the biggest cryptocurrency exchange in the country.
The cryptocurrency exchange won't release its financial results until next week, but it got some good news from the crypto markets and noted that it is in good position to deal with the latest developments in the industry.
In addition, Coinbase revealed that it believes it already complies with a recent proposal from the U.S. Securities and Exchange Commission (SEC) to impose new rules on qualified custodians for digital assets.
Hype Change: 50%
Price Change: 23%
Although spring is still a ways off, it already appears that the ground is quite fertile for cryptocurrencies and other associated assets.
Sorrento Therapeutics, Inc. (NASDAQ: SRNE)
Sorrento is a biopharmaceutical business in the clinical and commercial stages that is working to create novel medicines for COVID-19, autoimmune diseases, cancer, and pain (using non-opioid painkillers).
Sorrento announced that it and its wholly-owned direct subsidiary Scintilla Pharmaceuticals (collectively, "the debtors") have voluntarily started a Chapter 11 bankruptcy proceeding in the U.S. Bankruptcy Court for the Southern District of Texas. This information was revealed in an 8-K filing with the U.S. Securities and Exchange Commission.
The stock has plummeted, losing up to 85% in terms of prices since this happened.
Hype Change: 500%
Price Change: -85%
Sentiment: VERY NEGATIVE
On the one hand, Wall Street analysts who follow the stock do appear to believe that the clinical pipeline of the biotech company is now being grossly undervalued by the market. However, the legal process surrounding bankruptcy is inherently uncertain.
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