RJ Hamster
🦉 The Night Owl Newsletter for December 4th
Unsubscribe The Top 10 AI Stocks You Need to Know (From TradingTips)The Trade Desk: After a 70% Plunge, This Could Be The Time to BuyWritten by Sam QuirkeShares of The Trade Desk Inc. (NASDAQ: TTD) have been under pressure for almost all of 2025. After peaking around this time last year, the stock has gone on to fall 70%, wiping out years of gains and sending shares back to levels last seen in 2020.It’s been one of the worst performers in the software and ad-tech sector, as investors bail on anything tied to digital advertising amid concerns about shrinking budgets and weak consumer spending.However, those of us on the sidelines know that this kind of punishment can often create opportunity.Despite the collapse in its share price, The Trade Desk continues to deliver strong operational performance and deliver results that are consistently better than analyst expectations.The stock is also trading right along a long-term support line that has held multiple times in the past, and with its valuation at multi-year lows, the worst-case scenario already appears to be priced in.For investors with risk appetite and patience, here are three reasons The Trade Desk may be near a turning point.1: The Fundamentals Are Still SolidWhile sentiment has cratered, the numbers tell a different story. In its most recent quarterly report, The Trade Desk posted year-over-year (YOY) revenue growth in the high teens that comfortably beat expectations, as did its earnings per share. The company’s customer retention remained above 95%, as it has for more than a decade, while management’s forward guidance came in well ahead of the consensus. Management also boosted investor confidence by extending its $500 million share-buyback program, a move that implies they believe the underlying stock to be massively undervalued. These are far from the kinds of fundamental results you’d typically see in a stock that has shed 70% of its value in the previous year, suggesting investors may have overreacted. 2: It Hasn’t Been This Cheap in YearsThe Trade Desk’s valuation has reset to levels not seen since before the pandemic. Its price-to-earnings (P/E) ratio has collapsed from over 200 last year to around 60 today—still not “cheap” by traditional metrics, but very low compared to where it’s been in the past. At this level, investors are paying a fraction of the premium they once did for the same long-term story—a business with near-100% customer retention, solid free cash flow, and an impressive position in the ad-tech market. The stock is back trading at 2020 levels even though revenue has more than tripled since then, which tells you how extreme the market’s pessimism has become.Simply put, the worst-case scenario now looks priced in. If growth merely stabilizes from here, there’s ample room for multiple expansion, and if it re-accelerates, this current valuation will look like a gift in hindsight.3: The Technicals Support the BullsFor those watching the chart, the near-term setup looks increasingly bullish. The Trade Desk shares have been testing a long-term support zone around the $38-40 mark that dates back to 2020, and each time, as in previous years, buyers have stepped in. The stock’s relative strength index (RSI) readings are starting to move up out of extremely oversold territory, suggesting that the selling pressure has started to exhaust itself, while its moving average convergence divergence (MACD) is in the process of a bullish crossover. That doesn’t necessarily mean a rebound will take off right away, but it does mean that technically speaking, the downside looks contained while the upside potential is significant. For patient investors, that’s usually where the best asymmetry lies.Risks Remain, but Valuation Mitigates the DownsideOf course, there are still risks to consider. Growth has slowed from the explosive levels seen during the post-pandemic boom, and competition remains fierce. Sentiment also remains fragile, and if it were to weaken further in early 2026, it would delay any rebound.But for a stock trading at its lowest multiple in years and a third of its former price, the risk/reward balance looks unusually attractive right now. If there’s a level at which The Trade Deck can find its footing and stage a meaningful recovery, this is going to be it. READ THIS STORY ONLINEFree access: Where billionaires are positioning in crypto (Ad)Learn the same strategies 20 of the crypto’s biggest experts are using…Learn the exact altcoins they’re accumulating and why.GET YOUR FREE TICKET TO THE CRYPTO HEDGE FUND SUMMITTap Into 2026 AI Infrastructure Gains With This High-Growth ETFWritten by Jordan ChusslerWith 2026 just around the corner, there is no shortage of analyst forecasts predicting that AI will deliver tangible productivity and earnings gains in the year ahead, especially for the 493 companies that fall outside of the Magnificent Seven.For that growth to materialize, however, AI applications have to be scaled across industries, which will depend heavily on the expansion of data centers and digital infrastructure.While that expansion presents a compelling investment opportunity, attempting to pick the individual winners—whether companies involved in the design and installation of data centers or the utility companies that power them—can be a risky proposition. But for investors keen on exchange-traded funds (ETFs), the backdrop of AI growth bodes well for the Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR).Data Centers and Digital Infrastructure Are in High Demand There’s been no shortage of reporting on the explosive growth in the AI data center industry. But though this expansion is already underway, it’s just a drop in the bucket compared to what’s to come. According to market consultancy firm Grand View Research, the global data center market is expected to undergo a compound annual growth rate (CAGR) of 11.2% from 2025 through 2030.That suggests an industry valued at more than $347 billion at the end of 2024 will be worth an estimated $652 billion at the close of 2030.The firm’s research highlights how the North American market holds a significant share at 40%, and that the software data center segment specifically is anticipated to grow at a CAGR of 12.5% during the forecast period.Meanwhile, the global AI infrastructure market is forecast for a CAGR of 30.4% from 2024 through 2030. That would result in the industry’s market size increasing from more than $35 billion in 2023 to more than $223 billion at the end of 2030. Importantly, according to Grand View Research, the AI infrastructure market in the United States accounted for the largest revenue share at nearly 89%, while Asia Pacific accounts for the fastest-growing region. That’s promising news for the companies that comprise the Global X Data Center & Digital Infrastructure ETF’s portfolio, which sit at the intersection of those two burgeoning markets, nearly 68.9% of which operate in the United States, with another 17.3% operating in China and Taiwan. An ETF That Provides Diversified Data Center ExposureOne thing to like about DTCR is that it’s a well-diversified fund. While its focus is AI data centers and AI infrastructure, its holdings are spread across numerous industries, which inherently lowers its risk exposure. Nearly 41% of the ETF is allocated to companies operating in the real estate management and development space—specifically, some of the largest real estate investment trusts (REITs) in the industry. Nearly 27% is allocated to semiconductor companies, and 17% is allocated to IT service providers. Another 7% is earmarked for telecommunications and their services. That’s resulted in a portfolio with attractive names, including REITs like: Equinix (NASDAQ: EQIX)Digital Reality Trust (NYSE: DLR)American Tower (NYSE: AMT)Crown Castle (NYSE: CCI)Beyond its REIT holdings, DTCR also holds Applied Digital (NASDAQ: APLD), a designer, builder, and operator of high-performance computing and AI data centers as well as Taiwan-based Winbond Electronics—a designer and manufacturer of semiconductors and several types of integrated circuits. Those holdings have produced strong returns in 2025. The fund, which is up more than 26% year-to-date (YTD), hit its all-time high of $22.65 on Oct. 27. A sector-wide AI sell-off led to a 13% pullback, but DTCR has since rebounded more than 6% and remains on an upward trend.Wall Street Is Bullish on DTCRThere are some liquidity concerns with DTCR, as the fund is comparatively small with assets under management of nearly $623 million. Average daily trading volume is just 278,437 shares. And while institutional ownership is relatively light, those who do hold it have been buying far more than selling. Over the past 12 months, the ETF has seen inflows of $7.57 million compared to outflows of just $79,950. Perhaps most telling is that the fund’s current short interest is just 0.74% of the float, which marks a decrease of nearly 7% from the month prior. Icing the cake, DTCR’s dividend yields 1.29%, or 27 cents per share annually at current prices. READ THIS STORY ONLINEThe Top 10 AI Stocks You Need to Know (Ad)Discover the 10 Best AI Stocks to Buy Now! The AI revolution is reshaping the investment landscape, and knowing where to place your bets is crucial. Our free report reveals the 10 top AI stocks that should be on your radar right now. Don’t miss your chance to get in on these high-potential tech plays. DOWNLOAD YOUR FREE REPORT TODAY.Strong Quarter, Weak Reaction: Why GitLab Shares DroppedWritten by Chris MarkochShares of GitLab Inc. (NASDAQ: GTLB) are down nearly 13.5% the day after the company delivered its fiscal year 2026 third-quarter earnings report.The results were solid. In fact, revenue growth of 25% kept the company’s perfect streak of reporting quarterly revenue growth of at least 25% in every quarter since its initial public offering (IPO) in 2021. The report also featured an 89% non-GAAP gross margin, 18% non-GAAP operating margin, and a 119% net retention rate, highlighting sustained strength in GitLab’s core metrics.So why is the market reacting so negatively? The answer may be due, in part, to Microsoft Corporation (NASDAQ: MSFT). News broke that Microsoft is reportedly scaling back artificial intelligence (AI) offerings after the sales staff fell short of targets in the company’s fiscal year, which ended in June. The concern is that AI features and platforms aren’t converting into meaningful revenue growth as quickly as expected.This could be why analysts became hyper-focused on GitLab’s guidance, which wasn’t bad, but is making investors hesitant to move the stock out of the downtrend it has been in since February.The Earnings Report Doesn’t Justify a Strong SelloffGitlab’s Q3 results should help reduce concerns that the introduction of AI tools would hurt the company’s revenue as it moves away from its developer-heavy seat model toward a hybrid approach. Its strong cRPO (current remaining performance obligation) and RPO (remaining performance obligation) growth also shows that the company is holding its own, even as it faces pressure from AI-native startups.The issue is that GitLab, like many tech stocks, faced concerns about potentially weak AI monetization before the report. Unfortunately, the results, along with Microsoft’s announcement, gave investors a reason to question expectations and the interpretation of AI demand.GitLab May Not Be Getting the AI PremiumIn recent quarters, GitLab has released its AI-powered DevSecOps platform. This has raised the bar on what analysts expect in terms of accelerated AI-driven upsells, rapid AI feature adoption, measurable seat expansion, and clear pricing uplift from AI integration. Unfortunately, GitLab’s revenue guidance of between $946 million and $947 million for its fiscal year 2026 implies steady growth, but not the AI premium that analysts want.The Microsoft announcement then makes GitLab guilty by association. It’s too early to draw firm conclusions from the report. However, it could suggest that companies are still in proof-of-concept (POC) mode. That means they’re experimenting with AI, but may not be ready for large-scale paid adoption.This comes at a time when AI budgets are lumpy and tied to ROI metrics that are still unclear. The takeaway may be that if Microsoft can’t hit its AI sales targets, then smaller AI-platform vendors will likely face similar adoption headwinds.The Upside in GTLB Stock May Be LimitedAnalysts have been quick to chime in on GitLab’s report, and their response isn’t encouraging. GitLab analyst forecasts on MarketBeat show four analysts have lowered their price targets.Only one of those is above the consensus price target of $54.75, and that was only a $55 target.This cautious sentiment suggests investors and analysts are tempering expectations amid AI-related uncertainty.It also reflects broader skepticism about GitLab’s ability to achieve the kind of accelerated growth typically associated with high-performing AI platforms.GitLab Breaks Down from Long Trading RangeGitLab’s weekly chart has shifted decisively bearish, with the share price sliding into the high‑30s and losing its multi‑month trading range in the low‑to‑mid 40s. The stock now trades well below its declining 50‑week moving average near the upper‑40s, turning that level into firm overhead resistance rather than support. Momentum indicators confirm the downtrend. The weekly MACD sits below the zero line and its signal, with no clear bullish crossover yet, pointing to persistent negative momentum despite brief pauses in selling. Recent downside candles have appeared on heavier‑than‑normal volume, signaling institutional distribution rather than routine profit‑taking. Until GitLab can base in the mid‑30s and reclaim the low‑40s on strong volume with improving MACD, rallies are best viewed as counter‑trend bounces within a broader decline rather than the start of a durable uptrend.  READ THIS STORY ONLINEEveryone sees the crypto bounce. Almost no one sees THIS (Ad)Portfolios are recovering. The panic is fading…But relief rallies reveal which cryptos have REAL strength behind them. Find out the next crypto set to surge.CLICK HERE TO DISCOVER THE #1 COIN PLAY RIGHT NOWMore StoriesBeyond NVIDIA: 5 Semiconductor Stocks Set to Dominate 20263 Stocks Poised to Benefit From Google’s AI BreakthoughBitcoin Dip: 27 Experts Share Buy Strategies (Ad)The Nuclear Revival Is Real: SMR Stocks Flash Buy Signals After DOE Push3 Stocks You’ll Wish You Bought Before 2026Wall Street Punished CrowdStrike for Beating Earnings? Seriously?Battle of the Big-Upside Tech Names: HUBS vs. NBIS vs. TEAMThe Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.  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