Was this the most dangerous Company of 2022?

Well, yes. It sure felt like it.

When this Company’s stock price fell, it fell hard. It crashed and burned on an astonishing scale.

From peak to trough, it lost over 97% of its value:

  • To put this into perspective, just imagine this — a theoretical sum of $100,000 invested here in January 2022 would be worth *only* $2,040 by December 2022. Totally shocking.
  • You can blame the interest-rate cycle for this. Globally, the hikes we’ve experienced are the sharpest since 1988. We’re talking 18 straight months of being walloped. Repeatedly.
  • The risk premium for debt has risen. Therefore, tech stocks have been punished most severely. Worries about valuation and liquidity have become the main obsession during this bear market. Crunch time had arrived — and it was painful.

 

Source: Portfolio Visualizer

 

But watch out. There’s a twist in this tale. Yes, fear is overpowering emotion — but it can just as easily switch over to greed. This is exactly what happened in 2023:

  • Suddenly, investors became interested in artificial intelligence, which created a fresh groundswell of optimism. Also, there was hope that the interest-rate cycle was already priced in and due to turn.
  • As a result, this Company’s stock price jumped over 1,000%. This means that a theoretical sum of $100,000 invested here in January 2023 would be worth over $1 million by September 2023.

 

Source: Portfolio Visualizer

 

Well, golly. What a difference 18 months makes:

  • This stock experienced a deep loss in 2022.
  • Then it bounced back with a profound gain in 2023.
  • Such wild price swings are only possible because this Company is considered speculative. It’s driven by extremes of fear and greed.

So, right now, here’s the billion-dollar question:

  • Is there still room for this dangerous Company to gallop as we looked ahead at 2024?
  • Is this Company plugged into the next boom cycle for artificial intelligence?
  • Will this Company’s exposure to automation and robotics give it an edge?

 

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