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Investing in Tech: Potential Stocks for Parabolic Gains

Investors eye tech stocks ripe for short squeezes and growth. SoundHound AI, Serve Robotics, and Plug Power emerge as potential winners with high short interest and significant revenue growth expectations.

Date: 
AI Rating:   7

Market Overview: The report highlights emerging tech stocks that could undergo parabolic gains, particularly those that are heavily shorted. Short squeezes can create rapid stock price increases, catering to investors looking for the next big opportunity. While SoundHound AI, Serve Robotics, and Plug Power are identified as candidates, thorough examination of their fundamentals is crucial.

SoundHound AI: This company is currently experiencing significant volatility; the stock has depreciated by over 50% since its all-time high in December. The report notes that 31% of its float is shorted, which could set the stage for a potential short squeeze if growth expectations hold true. SoundHound is expected to grow its revenue at a compound annual rate of 54%, despite the company being unprofitable and its shares trading at 28 times sales.

Serve Robotics: Having recently faced similar stock volatility (down 60% from peak), Serve Robotics is also significant for professional investors. With an expected growth in revenue from $1.8 million in 2024 to $91.7 million by 2027, and a core partnership with Uber, optimism around its growth could further trigger buying interest enhancing stock prices.

Plug Power: This hydrogen fuel cell company is deeply entrenched in the green energy transition. Despite a striking 95% decline over three years and 25% short interest, it shows potential for recovery with a projected revenue growth of 29% per annum from 2024 to 2027. Support from major clients like Amazon and Walmart enhances its legitimacy and may influence a positive turnaround.