I Know First
Weekly Newsletter | June 29th, 2020

We’re happy to share our best article and stock prediction of the week:

• Top Trade Ideas – Top Stock to Buy Based on Algorithmic Trading: Returns up to 554.19% in 3 Months 

• Top Featured Article – How AI Can Help You Outperform Warren Buffett’s Portfolio

Need to Know First!

• Top Biotech Stocks Based on Data Mining: Returns up to 23.03% in 3 Days
• Momentum Stocks Based on Algorithmic Trading: Returns up to 43.35% in 14 Days
• Top Stocks to Buy Based on Machine Learning: Returns up to 276.6% in 1 Month
• Artificial Intelligence Stocks Based on Machine Learning: Returns up to 351.54% in 1 Year
• Amazon (AMZN) Stock is up 41.24% since April 4, 2020 as Coronavirus pandemic sends new customers to Amazon’s online marketplace and their cloud computing infrastructure service, AWS.
• Shopify (SHOP) Stock is up 25.5% since June 12, 2020 as investors continue to believe in Shopify’s strong momentum growth potential.
• InterActiveCorp (IAC) Stock returns up to 12.78% since May 31, 2020 as annual sales see consistent growth without substantial increase in cost of revenue. 

Weekly Winning Forecasts

Stay Ahead Of The Curve: AI Weekly

How AI Can Help You Outperform Warren Buffett’s Portfolio

Value stocks, or stocks that trade below their intrinsic value, have been underperforming in the broader market alongside stocks found in Warren Buffet’s portfolio. The recent Coronavirus pandemic has only exacerbated this trend. Berkshire Hathaway’s performance saw its worst year in 2019, falling behind the S&P 500 by 20%, and self-admitted mistakes like Warren Buffet’s holdings in airlines have shown that his portfolio may not be as lucrative as it once was on its own. 

Despite recent upsets in Buffett’s ability to find attractive investments, investors still look to the stock-trading guru for guidance in their own trading. However, they should not look to him solely as their instrument for success. Artificial intelligence can help investors achieve better results by improving their valuation accuracy, identifying opportunities in high-growth stocks, and follow Buffett’s portfolio more efficiently. Instead of following Buffett’s portfolio directly, follow his ideas, and augment investment with deep learning solutions.

Read more.

I Know First AI Algorithm Stock Portfolio Construction Live Test by TV Channel 13

When somebody claims that they can accurately predict the stock market using artificial intelligence, it invites harsh skepticism over the nearly cliché using of the phrase. When that same person says that the predictive algorithm was created by a PhD from Weizmann Institute and originally was used to predict chemical processes, the story becomes wilder. Channel 13 decided to put the algorithm to the test during the most volatile month in years, August 2019.

With the active portfolio’s return of 8.18% outperforming the S&P 500 by nearly 6 times, even the passive portfolio returned 3.88% over the S&P 500’s 1.37%. This ability to create a portfolio that was not only more accurate but less risky and volatile than the benchmark index just shows the scope of the algorithm’s reach. If this could be done for August 2019, a month that saw US-China trade war tensions increase and the Fed begin deciding their verdict on interest rates, the algorithm could work for any volatile period. With the Coronavirus pandemic sweeping the world and wreaking havoc on economic markets as an added consequence, the I Know First algorithm can act as a mitigating instrument in the uncertainty that is today’s market, and provide a less risky and more accurate approach to analyzing today’s volatile stock market.

Read more.

Grubhub Stock: How GRUB Gains From Coronavirus Market Trends?

The US online food delivery market is growing fast, causing competition within the industry to become more intense. Grubhub, an online and mobile platform for restaurant pick-up and delivery orders has seen its stock price double from $30.13 to $63.88 since March 2020, or the start of the global Coronavirus pandemic. With recent fears of the virus spreading keeping many Americans at home, Grubhub has benefited from a surge in food delivery orders, with analysts giving the industry as a whole growth rate estimates from 15% to 30%. 

To keep their growth consistent, Grubhub has opted to merge with Just Eat in a $7.3 billion deal, effectively forming the world’s largest online food delivery service outside of China. Additionally, Grubhub has seen its revenue increase by 12% in Q1, using up all of its profits during the COVID-19 recovery phase in hopes of facilitating powerful future growth. For reasons state above, Grubhub is poised to come out of the global crisis stronger and more valuable than before.

Read more.

Coronavirus Stock Market: A Post-pandemic Stock Market Glimpse

In the aftermath of the Coronavirus pandemic, the macroeconomy of the world features large deficits and debt, alongside globalization which has weakened because of the global crisis. Although certain sectors saw ruin from the recent stock market crash and other factors surrounding the virus, certain industries such as tech and healthcare have remained resilient throughout, and are set to be sectors that investors should pay attention to post-pandemic.  

With the market shaky and ever so volatile, investors seek strategies to mitigate risk and retain consistent gains and contain potential losses. For the post-pandemic world, investors can employ one of two strategies to overcome recent times. They can invest in cheaper stocks hurt by the pandemic and wait for a rebound in price or invest in strong resilient stocks that sport sturdy balance sheets, such as Netflix and Facebook. However, human intuition can only do so much, and the algorithmic power of the I Know First deep learning forecast can provide analytical feedback on market trends to help supplement investors’ speculation, and provide another tool in their set of instruments for stock picking.

Read More

Salesforce Stock Forecast: Work.com Bolsters Salesforce.com’s Lead In CRM

As a long-running leader in Customer Relationship Management (CRM), Salesforce has been able to remain No. 2 in the Enterprise Software-as-a-Service industry. As of 2020, Salesforce has 18.4% market share within the CRM industry, which itself is on a strong growth curve. In just 2019, the CRM industry was evaluated to be worth $40.2 billion, with a consistent CAGR of 14.2% projected to remain up until 2027. 

These observations only strengthen Salesforce’s current endeavors which includes their recent launch of Work.com, a suite of tools that helps businesses safely re-open during the global pandemic. With a 5-year CAGR of 26.36%, this streak is set to continue as work-from-home and learn-from-home cultural trends are poised to bolster Salesforce growth in their respective market. Given these strong boons, Salesforce is in a position to remain on a high-growth and bullish trajectory going forward.

Read more.

Want to learn more?

• Sirius Stock Predictions: Why You Should Raise Your Bets On Sirius XM
• NOK Stock Recommendation: Why Nokia Deserves A Price Target of $5.30
• Algorithmic Trading: The New I Know First Interactive User Interface

Letter from the CEO

Dear Readers, 

Common fallacies claim that markets are unpredictable. However, chaos theory together with powerful algorithms prove such statement to be wrong. Markets are chaotic systems with complex dynamics. And yet to a certain extent, we are able to make valid stock market forecasts. Using these forecasts generated by cutting-edge predictive algorithms along with a careful risk management strategy may give a trader a significantly competitive advantage. With this being said, it is possible to use machine learning algorithms such as that of I Know First in order to identify the next direction of the market!

The beauty here is that no matter if the market will go up or down, there are always market opportunities and artificial intelligence can assist in identifying them on a daily basis:

For example, just 3 days ago the algorithm identified these 10 stocks as the best S&P 500 stocks to short. 10 out of 10 top stock picks from the algorithm decreased as predicted in this 3 Days forecasting period. WYNN dropped by 17.13% in just 3 Days in accordance with the forecast, with the 10 stocks to short giving a total average return of 10%, 3 times more than the S&P 500.

One of the most interesting packages this week for long positions was the biotech stock forecast. In the 3 day forecast, CLDX, NAVB, and NVAX all saw returns of 23.03%, 20.58%, and 11.27%, respectively. The total average return of the 10 stocks was 7.08%, outperforming the S&P 500 by a matter of 88 times! In the 7 day forecast, CLDX, NAVB, and CLSN all saw returns of 63.72%, 39.13%, and 36.93%, respectively. The total average turn of the 10 stocks was 14.7%, outperforming the S&P 500 by a matter of 5 times! In the 1 month forecast, CLDX, NVAX, and NAVB all saw returns of 379.18%, 81.17%, and 64.2%, respectively. The total average return of the 10 stocks was 55.82%, outperforming the S&P 500 by a matter of 12 times! In the 3 months forecast, CLDX, NVAX, and SRPT all saw returns of 601.12%, 558.64%, and 72.04%, respectively. The total average return of the 10 stocks was 141.39%, outperforming the S&P 500 by a matter of 6 times!

This week we are launching a new and promising package. Robinhood users were the interesting story behind the recent market rally. Robinhood users’ total holdings increased in March, exactly when stocks bottomed and started their stunning trek upward, according to Societe Generale. This new package will include daily AI-based forecasts for the most popular stocks on the Robinhood platform and daily ranking that will assist our clients in identifying the best market opportunities in this market. You can join here.

Warmest Regards

Yaron Golgher, Co-Founder and CEO

Q: What are the Top 10 stock predictions?
A: The Top 10 stock predictions are the stocks that are poised to grow the most (have the strongest positive signals).

Q: What is the S&P 500 stock prediction and why do you include it?
A: The S&P 500 is the major US index and is the general indicators for the direction of the US stock market. If the algorithm predicts that the S&P 500 will go up, then it is a good sign that the stock market will generally increase. It helps in decision making. It is generally preferable to go long the Top 10 stocks when the S&P 500 has a positive prediction, and to go short the 10 stocks on the bottom of the table when the S&P 500 has a negative prediction.

Q: How should I use the S&P 500 forecast?
A: The S&P 500 is a great representation of the general US stock market. If the algorithm predicts that the S&P 500 will go up, then it is a good sign that the stock market will generally increase. If the predictability for the S&P 500 is relatively weak, then it is important to be cautious, as the algorithm is unconfident about the direction of the stock market.

Q. Which time horizons should I follow?
A. The longer-term forecasts (1-month and 3-month) tend to have higher predictabilities as the algorithm can more easily spot long-term trends. We suggest following these two time horizons the most closely, but the more reactionary shorter term horizons are helpful in understanding the short-term volatility of the market. Perhaps if you see that a stock with a strong, positive 3-month prediction has a negative short-term forecast, it is a good idea to wait until the stock decreases in value before buying it.

Q. How should I use the predictabilities and signals?
A. It is recommended that investors consider both the signal strength and predictability, as a highly predictable stock that barely moves and an unpredictable stock that is projected to move drastically both make unattractive investments.