You may have heard of Serve Robotics (SERV). The company is an Uber spinoff that makes autonomous sidewalk delivery robots. They have a deal with Uber Eats and will deploy 2,000 of its bots in multiple markets across the U.S.
These bots have been running in West Hollywood for the last year with over 200 restaurants trying them out. They also have a fleet of 100 robots in Los Angeles and are building out across the country.
For the past five months, the Serve share price has been flat. The little bots were mocked online as people believed that they would be robbed, the food ripped out of their guts and the carcass tossed in a nearby drainage ditch.
Well yesterday, the stock jumped 50% after climbing about 187% on Friday. Today it is back down to $8 a share on profit-taking.
The shares are rocking because the hottest stock in the world right now, Nvidia, revealed that it has taken a stake in the company. The volume has been astronomical at 266 million shares trading hands versus its average daily share volume of $4.8 million. Heck, the float is only 15 million.
Nvidia bought 62,500 shares of SERV stock in July for $4 per share. This is on top of the over 1 million shares it acquired in April by redeeming a promissory note.
This puts Nvidia’s stake in SERV at about 10%. Nvidia has a strategy of taking stakes in smaller businesses in the robotics and AI sectors.
Is SERV a Buy?
I love this type of break-out stock. The chart is flat and no one cares about it, and then it breaks out on high volume due to a news event. The stock was a buy on Friday but yesterday’s launch is over the top.
As I said, today it’s down a bit. I expect some volatility over the next week but I’d be a speculative buyer around $5.50 and would definitely buy at $4.
Gold
The blue-chip gold miner Newmont (NEM) should report strong growth in Q3 tomorrow before the market opens.
The company is riding on a significant surge in gold prices and a favorable macro environment. The consensus EPS estimate is $0.62 (+87.9% Y/Y) and the consensus revenue estimate is $4.15B (+54.7% Y/Y).
This could create a liftoff in gold stocks heading into the fall. These gold stocks are still greatly undervalued. Gold has been hitting new highs and the market doesn’t seem to notice. Positive gold miner earnings could be the catalysts we are looking for.
All the best,
Christian DeHaemer
Outsiderclub.com
https://www.outsiderclub.com/nine-meals-away-from-chaos/
https://www.outsiderclub.com/bad-stories-get-worse/
https://markets.businessinsider.com/news/stocks/gold-miners-hit-27-month-peak-bullion-breaks-record-as-traders-decide-september-rate-cut-as-good-as-done-1033560719?op=1
