Robo Advisors: Navigating the Future of Investment

September 12, 2023
Zheman ZhongThis Robo Advisors Analysis article was written by Zheman Zhong – Financial Analyst at I Know First.

Summary

  • Robo-advisors, powered by advanced algorithms and machine learning, are transforming the investment management landscape by offering low-cost, efficient alternatives to traditional human advisors.
  • Hybrid models that combine both robo-advisors and human expertise are gaining popularity, indicating that many investors still value personalized guidance for complex financial decisions.
  • The robo-advisory industry is dominated by financial giants like Fidelity, Vanguard, and Charles Schwab, with independent platforms struggling for survival despite the sector managing close to $900 billion in assets as of 2022.
  • Younger demographics are more inclined to adopt robo-advisory services, with 31% of individuals aged 18-22 using these platforms, suggesting a future shift in the investment advisory landscape.
  • Robo-advisors pose unique challenges and risks, including regulatory accountability and data security, requiring a comprehensive, holistic risk management approach to navigate the complexities of the digital era.

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ASML Stock Forecast: A Monopoly with Higher Upside

September 7, 2023
Meiru ZhongThis ASML Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The increased sales of EUV and DUV were mainly driven by the strong demand of chipmakers due to digital transformation and chip shortage.
  • ASML is a monopoly on the manufacturing of EUV lithography machines and it has a strong pricing power that the price per EUV had increased by 22% to €176.1 million from 2020 to 2022.
  • ASML has a strong competitive position in the semiconductor industry, with low threats of rivals, new entrants, and substitutes, and low bargaining power of customers and suppliers. It has over 90% market share of the lithography market and 100% share of the EUV market.
  • EUV 0.55 NA, the next generation of the EUV system and promising engine of revenue growth, is expected to ship to customers for R&D purposes at the end of 2023 and support high-volume manufacturing by 2025. 
  • DCF Values ASML at $696, an upside potential of 4% compared with the stock price of $666.04 on September 6, 2023

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Capri Holdings Ltd (CPRI) Stock Forecast: In the Wake of the $8.5 Billion Tapestry Acquisition

August 28, 2023
Zheman ZhongThis CPRI Stock Forecast article was written by Zheman Zhong – Financial Analyst at I Know First.

Summary

  • Tapestry will acquire Capri Holdings for $8.5 billion, consolidating six luxury brands under one corporate umbrella.
  • The acquisition allows Tapestry to diversify its product line and geographic reach, reducing over-reliance on the Americas and accessories.
  • Capri Holdings share price jumps 55.7% post-announcement, nearing the acquisition offer of $57.00 per share, signaling investor confidence.
  • Capri shows strong profitability metrics but weaker liquidity ratios, suggesting potential benefits from Tapestry's financial backing.
  • Compared to industry peers, Capri appears mostly undervalued, although a high Price to Book ratio warrants investor caution.

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India’s Economic Growth Analysis: Navigating a Goldilocks Growth Period 

August 21, 2023
Zheman ZhongThis India's Economic Growth Analysis article was written by Zheman Zhong – Financial Analyst at I Know First.

Summary

  • India’s GDP experienced significant growth in the fiscal year 2022-23, with a 6.1% expansion in Q4, leading to an annual growth rate of 7.2%. The GDP reached the $3.75 trillion mark, making India the fifth-largest economy in the world.
  • India’s economic growth entered the "Goldilocks" Economic Period, symbolizing stability, with growth in manufacturing, construction, and agriculture sectors.
  • India's Reserve Bank implemented a strategic approach to inflation, raising the repo rate by 250 basis points over 11 months, resulting in an inflation rate of 4.8% in June 2023.
  • With a median age of around 28 years and two-thirds of the population in the working-age category, India's young population serves as a catalyst for potential growth, especially in manufacturing.
  • Infrastructure Investment: An ambitious allocation of 1.7% of GDP on transport infrastructure shows India's focus on overcoming historical inadequacies in transportation, water, and power, aiming to achieve a $5 trillion economy.

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META Stock Forecast: Pioneer to New Heights

August 14, 2023
Meiru ZhongThis META Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.

Summary

  • The underperformance in 2022 was attributed to significant currency risks, reduced advertising demand, and strict regulation on target advertising.
  • The advertising revenue is resilient and a good sign shows that advertisers have a strong demand as the economy recovers from COVID and the recession.
  • Restructuring, by implementing a series of cost management practices, reflects META's determination to align business and strategic priorities for operating efficiency.
  • Although it’s difficult to depict how the metaverse will develop and the operating losses kept increasing for Reality Labs, META expects this will be the next chapter of the Internet and will unlock monetization chances.  
  • DCF estimates META stock will grow to $313, an 4% upside potential for the year 2023.

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SWAV Stock Forecast: Riding the Sonic Wave of Innovation in Cardiovascular Treatment

August 14, 2023
Anastasia MakuyevThis SWAV Stock Forecast article was written by Anastasia Makuyev – Quantitative Analyst at I Know First.

Summary

  • Shockwave Medical is innovating cardiovascular treatment with its Intravascular Lithotripsy (IVL) technology, which uses sonic pressure waves for minimally invasive procedures.
  • Recent financials showcase robust growth, with a YoY increase of 72% in Q1 2023 revenues and expectations of future growth, making it an appealing target for potential acquisitions.
  • Rumors of a takeover from giants like Johnson & Johnson and Medtronic have surfaced, yet irrespective of such speculations, Shockwave’s strong financial performance and differentiated technology make it a compelling investment.

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Investment Strategies: Who is Winning in the Battle between Active vs Passive Investors

August 10, 2023
Sergey Okun This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • Over 50% of U.S. Large-Cap active managers have underperformed the S&P 500 in 18 of the past 21 years.
  • The percentage of funds underperforming expands as the investment horizon lengthens, ranging from around 55% over a 1-year horizon to 94% over a 20-year horizon for U.S. funds.
  • The IKF AI algorithms can assist in identifying the latest investment opportunities and enhancing the performance of active investment strategies.

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