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HypeIndex Weekly Trending Stocks Report May 17 - 24


HypeIndex

Here is the list of the Trending stocks of the week insights and analysis




May 17 - May 24 2023


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Asset 1


Celsius Holdings, Inc. (NASDAQ: CELH)



Background:


Celsius Holdings offers various carbonated and non-carbonated functional energy drinks under the CELSIUS Originals name.


The company develops, processes, markets, distributes and sells functional drinks and liquid supplements in the United States and internationally.


Summary:


The company behind the sparkling energy drinks that help improve a body's metabolism to burn more calories saw its revenue skyrocket 95% to $290 million through the first three months of this year (while analysts were expecting only 64%).


Celsius also disclosed during its Q1 conference call, that its volume from grocers and convenience stores grew a record 95.4% during the three months in question, accelerating from a growth pace of 69.5% in the comparable quarter a year earlier.


Turning to profitability, Celsius' gross margin jumped to 43.8% compared to 40.4% in the same quarter of 2022. On the bottom line, Celsius had a net income of $34.4 million, up from just $6.7 million in the prior-year period.

There's optimism for Celsius to duplicate its success overseas now that beverage giant PepsiCo is on board as both a distribution partner and an investor. PepsiCo invested $550 million for an 8.5% stake in Celsius last summer as well.


While the recent price change is quite minimal, Celsius has seen an increase in price by over 29% since the 9th of May.


Hype Change: 282%

Price Change: 6%


Sentiment: POSITIVE






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Asset 2


Twilio Inc. (NYSE: TWLO)



Background:


Twilio Inc (Twilio) is a provider of cloud communications platforms The company's product portfolio includes voice, video, messaging, IoT, authentication, look up, verify, and Twilio engage, and flex.


Twilio enables developers to build, scale and operate real-time communications within software applications.


Summary:


Twilio reported lackluster financial results in the first quarter. Its customer count climbed 12%, and the average customer spent 6% more. In turn, revenue rose 15% to $1 billion, a significant deceleration from 48% revenue growth in the prior year. While this might seem like a red flag, it’s up here because what’s important are efficiency gains and a cheap valuation.


Twilio has significantly reduced its headcount as it went through two rounds of layoffs. These layoffs helped increase Twilio's profitability, with the company posting a $104 million non-GAAP net income figure in Q1.


Management believes its revenue will grow between 4% and 5% in Q2. But, for a stock valued like Twilio, it may still look like a buy.


Wall Street analysts expect Twilio to return to more reasonable growth levels in 2024, with the average analyst predicting 11% revenue growth, so should the company continue the way it is doing, this stock will seem like a bargain.


Looking ahead, Grand View Research says the CPaaS market will increase by 31% annually to reach $101 billion by 2030. Twilio should benefit from that tailwind.


Hype Change: 176%

Price Change: 26%


Sentiment: POSITIVE



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Asset 3


Applied Materials, Inc. (NASDAQ: AMAT)



Background:


Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products.


Summary:


Applied Materials plans to invest up to $4 billion over the next seven years for an R&D innovation center in Silicon Valley.


Applied Materials reported its Q2 earnings, with EPS of $2.00 coming in better than the consensus estimate of $1.84. Revenue grew 6% year-over-year to $6.63 billion, beating the consensus estimate of $6.39B.


“Our longer-term outlook is very positive as semiconductors become a larger and more strategically important market globally and major technology inflexions are enabled by materials engineering, creating outsized growth opportunities for Applied,” said CEO Gary Dickerson.


For Q3/23, the company expects EPS to be in the range of $1.56-$1.92, compared to the consensus of $1.65. Revenue is expected to be $6.15B, above the consensus estimate of $6.02B.


Hype Change: 100%

Price Change: 8%


Sentiment: POSITIVE




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Asset 4


Upstart Holdings, Inc. (NASDAQ: UPST)



Background:


Upstart is an AI lending platform that partners with banks and credit unions to provide consumer loans using non-traditional variables, such as education and employment, to predict creditworthiness.


Summary:


Upstart reported triple-digit revenue growth and positive net income as recently as the first quarter of 2022. But soon after, its financials deteriorated as rising interest rates dramatically reduced loan demand. Upstart is a company that’s seen extremes during its time.


In the earnings report for the first quarter of 2023, Upstart reduced the loan amounts it held on its balance sheet by 3%.


Also, the forecast second-quarter revenue of $135 million is up sequentially from Q1's revenue level, making it more likely the declines will stop.


More importantly, CEO Dave Girouard announced a partnership with investment firm Castlelake where it would buy up to $4 billion in consumer instalment loans originated on Upstart. Such developments could significantly improve Upstart's financials and reduce the dependence on the two banks that drive most of the company's revenue.


Hype Change: 92%

Price Change: 44%


Sentiment: POSITIVE



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HYPEINDEX

HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.


The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.




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