Earnings season kept the pace up this week, with several GeoInvesting names delivering strong results, but some coming with clouded outlooks due to geopolitical events.
Last week was packed with updates across several stocks in our microcap coverage universe, showcasing a mix of momentum, business shifts, and bullish setups heading into Q2 2025.
The next two or three weeks are going to be busy with an onslaught of fourth-quarter 2024 microcap earnings reports coming out in bunches. However, last week was still a fairly busy week in the microcap earnings world.
We launched Buy on Pullback Portfolio #13 near the end of the day on Friday.
Recognizing that markets often overreact, we’ve carefully handpicked a basket of 8 microcap stocks that have gotten beaten up over the last few weeks, some declining to prices that we thought we would not see again. Four stocks are trading at P/Es of ~10x on run-rate EPS. We might be early and a little off on our timing, but we did not want to get greedy at prices that we see as being considerably reasonable.
Some people might say that the data center industry itself is currently at a crossroads already and in a “hot or not” debate in the sphere of investing. In some corners, there are mixed signals causing investor uncertainty. On one hand, industry leaders like $DELL, $META and $NVDA assert that the market remains incredibly healthy, with NVDA CEO Jensen Huang forecasting that data center infrastructure spending could reach $2 trillion in the next four to five years.