We recently published a list of 10 Unstoppable Growth Stocks To Buy According to Reddit. In this article, we are going to take a look at where MicroStrategy Incorporated (NASDAQ:MSTR) stands against other unstoppable growth stocks to buy according to Reddit.
What Does the Launch of DeepSeek Mean for the US Market?
Tech stocks in the US saw a decline amid DeepSeek AI concerns shortly after the market rose post Trump’s $500 billion AI investment announcement in project Stargate. The OpenAI rival is said to follow an open-source model and celebrates similar efficiency at a fraction of the cost of OpenAI. The launch of the Chinese startup has shaken the stock market in the US and to discuss the aftermath of such Sarah Kreps, Director of Cornell University’s Tech Policy Institute, joined Catalysts on Yahoo Finance on January 27, 2025.
Kreps suggested that this small startup is seen to perform in the same way these “pioneers” in the United States do. She added that the launch puts “enormous pressure” on firms in the United States and expects companies in the US to put more effort into delivering customer value to their AI investments moving forward, suggesting that competition can be “good” for these companies.
Similarly, on January 27, Matt Calkins, Founder and CEO of Appian (APPN), appeared in an interview on Yahoo Finance to discuss the implications of DeepSeek on the US market. Calkins suggested that the AI war between the two countries is going to be an asymmetric war for US and China, and any other countries planning to get involved. He also added that the things “that make China strong” differ from the elements that make the USA strong, therefore, companies in either country do not need to strive to match each other.
Calkins also believes that the DeepSeek announcement is a “wake-up call” for companies in the United States and expects more surprises to come from the rapidly changing industry. He strongly emphasized the need for a framework on a state level that protects the rights and privacy of Americans for this situation to work out and position the US for success. However, he reiterated the need to first understand the dynamics of the AI industry, the value of these AI models, and the source of data before comprehensive frameworks are established.
Overall, the AI, and technology market as a whole, is extremely disruptive and subject to rapid changes, making such surprises a part of the bigger picture. That said, let’s take a look at some stocks that have performed extremely well over the past six months and have been on the radars of the general public for their solid growth opportunities.
Our Methodology
To come up with the 10 unstoppable growth stocks to buy we sifted through important threads and picked the 25 most popular stocks. We then examined the 6-month return for each stock and picked the top 10 with the largest number of hedge fund holders as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer wearing a headset, collaborating with a remote team on a project.
MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Funds: 25
6-month Performance as of January 27, 2025: 107.1%
MicroStrategy Incorporated (NASDAQ:MSTR) is a Bitcoin treasury and business intelligence company that offers various services to businesses such as data visualization and advanced predictive analytics. Some of its major clients include KFC, eBay, Crate&Barrel, Celio, Petco, Sony, and Pfizer. The company is trying to accelerate its software services by forging crucial partnerships with large names in the industry. For instance, on January 8, the company partnered with STACKIT to produce a sovereign data cloud for AI-backed business intelligence.
While the company’s software business is growing slowly, its rise to stardom can be attributed to its Bitcoin treasury. Previously, on January 21, MicroStrategy Incorporated (NASDAQ:MSTR) purchased another $1.1 billion worth of bitcoin, bringing its total reserve to 461,000 on January 21. On January 27, the company announced the acquisition of 10,107 BTC, now bringing the total reserve to 471,107.
This marked the 12th consecutive week of MSTR purchasing BTC. The move can explain why MSTR’s stock price has gained nearly 2,500% since its buying spree kicked off in 2020.
Overall, MSTR ranks 3rd on our list of unstoppable growth stocks to buy according to Reddit. While we acknowledge the potential of MSTR to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
