All Dips in Growth Stocks Are Buying Opportunities  | | Luke Lango | The Dow Jones is making a mini comeback today as it leads the major three indices with gains of 0.54%. It is interesting to note, however, the 10-year Treasury yield is down a couple of basis points on the day and continues to sit around the 1.45% range. So long as yields remain lower for longer, as we expect they will, all dips in growth stocks should be seen as temporary and thus as strong buying opportunities. A relatively new development we are keeping our eye on is this new Delta strain of Covid-19. While we feel America has largely moved past the virus, large swaths of the Asia Pacific region have gone back into lockdown on Delta case surges. That’s problematic because we live in a global economy, so APAC shutdowns will inevitably have an adverse economic impact of the U.S. economic recovery and put further downward pressure on yields. Sure, this won’t last forever — but it looks like the world’s battle with Covid will be this on-again, off-again debacle that will keep economic expansion relatively stunted. These developments continue to put pressure on the labor supply shortage in America and will only accelerate enterprise automation tech adoption. This will leave lasting damage on the labor market as some jobs get permanently displaced. With that said, we are always laser-focused on the latest developments with our companies, so let’s have a look at today’s Daily Notes:
Innovation Investor - Palantir (PLTR) keeps winning partnerships. Business momentum is great at the moment. Palantir has scored another two years on its partnership with Latin America’s biggest media company, Grupo Global. According to Grupo, Palantir has aided in their businesses acceleration “toward becoming a data-driven company.” Grupo cites Palantir’s Foundry platform as a huge reason for the improvement of the company’s many internal processes, which has “allowed [Grupo] to develop new and innovative products for the market, entirely based on data, and with a direct impact on [their] top line.”
- Virgin Galactic (SPCE) downgraded on valuation. SPCE stock has traded down Wednesday as Bank of America has lowered its rating on Virgin Galactic from “Buy” to “Underperform.” Importantly, and despite the downgrade, BoFA analysts still see Virgin Galactic has “a beneficiary of the new commercial space race.” However, they warn that a premium is already priced into SPCE stock, and it’s one that will be chipped away at as more space stocks take off. Fair play. But we see hype surrounding CEO Richard Branson’s flight as carrying shares higher in July, despite valuation concerns. We remain uber bullish on SPCE stock as the space economy continues to boom.
- Canopy Growth (CGC) cheers on the latest marijuana ruling out of Mexico. The growth narrative for CGC continues to improve. Canopy Growth is no stranger to Mexico’s stance on marijuana legalization, and the marijuana firm has previously urged Mexico’s lawmakers to forge a “responsible, constructive cannabis marketplace” by way of legislation in the country. Today, CGC is applauding Mexico’s decision to strike down the criminalization of recreational marijuana use. We believe any and all legalization works toward the greater good for CGC, and that it helps lay the groundwork for the company to expand into other markets. Over the next few quarters, we expect to see more in the way of legal cannabis barriers being broken down, which will in turn improve the narrative for Canopy Growth.
- Roku (ROKU) surges on Apple TV remote addition. Roku’s stock is sharply higher on the day as Apple revealed that it has bought itself a prime location on Roku’s remote. The space, naturally, will showcase Apple TV Plus. Roku gave interested parties a glimpse at its new remote, which shows buttons for Netflix, Disney Plus, Hulu, and Apple TV Plus. So why is Roku stock soaring on this news? Well, this helps cement the narrative that Roku is the cable box of streaming, as Apple had previously vied for that position with Apple TV. Its addition into a prominent place on Roku’s hardware is an acknowledgment of sorts that Roku is the “kingmaker” of streaming boxes.
- Editas (EDIT) rallies as Intellia-powered surge continues. Over the weekend, news broke that Intellia’s in vivo (tested on living humans) gene-editing therapy was a major success. As a result, the gene-editing space went on a tear, taking Editas stock along for the ride. Companies like Editas share a commonality in technology with Intellia, so it’s no wonder investors are piling into EDIT stock for the third straight day. We continue to believe this is a huge win for EDIT stock holders, as the company’s second-leading therapy is a CRISPR-based sickle cell treatment.
- Spotify (SPOT) looks to get into the live events business. Livenation takes a tumble. Spotify is considering making an entry into the events business, where it would use its data-based insights about consumer behavior to host virtual (possibly live) concerts. This is great news, as events (and merch sales) are a strong source of revenue for any music artist. And it will go a long way toward repairing Spotify’s relationship with musicians who have historically had gripes with the service over streaming royalties. According to the report, Spotify isn’t looking to compete with LiveNation, but LiveNation’s stock is falling nonetheless.
Exponential Growth Report - AST SpaceMobile (ASTS) takes off on Deutsche Bank upgrade. Today, Deutsche Bank raised its price target on ASTS stock to $35, which shows significant upside in the company that was just recently trading around $10 before today’s rally. This is great news, to be sure, as it shows big money support for this early-stage tech company. This isn’t one of the small banks. It’s Deutsche Bank, which is a very bullish development. DB believes its $35 price target is dependent on the average of four scenarios, and that ASTS could see even more upside with promising execution over the next five years. Like DB, we also see ASTS as having significantly more upside, potentially vaulting to $100 if the company delivers (and we think it’s perfectly capable of delivering).
- Hims & Hers Health (HIMS) gets into personalized health and wellness solutions. Hims & Hers announced today that it’s partnering with Urban Outfitters to deliver personalized health and wellness solutions. As part of the partnership, Hims & Hers products will feature on the Urban Outfitters website. Score! According to Urban Outfitters, “there is great synergy between the Urban Outfitters customers and those digitally native consumers who are interested in the personalized health and wellness offerings of Hims & Hers.” This comes on the heels of Hims & Hers’ acquisition of teledermatology specialist Apostrophe, which will help HIMS reach deeper into the Gen-Z and millennial demographic. Today’s news is yet another bullish feather in our cap for HIMS stock.
That's all for Daily Notes today. See you back here tomorrow. Sincerely, 
Luke Lango
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