Pharma Stocks Based on Predictive Analytics: Returns up to 77.85% in 3 Months
High PEG Stocks Based on Machine Learning: Returns up to 184.12% in 1 Year
Google (GOOGL) is up 17.33% since October 31st's bullish analysis. This forecast argues that Google should focus on YouTube after a Needham & Company analyst estimated Youtube's worth at $300 billion.
Nvidia (NVDA) jumped by 18.52% following this article from November 19, 2019 about its GPU accelerators and partnership with Microsoft.
Microsoft (MSFT) is up 78.92%, after last year's bullish prediction from the I Know First research team.In this piece from February 3rd, 2019, we argue that Microsoft is a safer investment than Apple because of its software-centric business.
Tesla Stock Forecast: The Gigafactory 3 and its Impact on 2020
The year 2020 brought several good news to the electric-car maker Tesla. Thanks to the recently opened factory in China and the announcement of an increase in car sales, Elon Musk’s company surpassed Volkswagen in market value, reaching more than $100 billion. Even though the volume of the car sales is still miles away from Toyota’s – 367,500 compared to more than 9 million, it is expected that the new factory in Shanghai will help Tesla to have a bigger share of the Chinese market. Those numbers are supported by their $7.38 billion fourth-quarter revenue, over $300 million above analysts’ revenue expectation.
Still, global events can hold TSLA back. In case a recession occurs, it is known that luxury-car companies take a big hit in their sales. For example, luxury vehicle deliveries had a big decline following the 2008 recession. This kind of event can make Tesla revenues fall from $32 billion to $21 billion from 2020 to 2022. Also, other risks besides a recession can cause a decline in Tesla stock forecast price. The trade war between China and the USA could hurt Tesla and its new factory on Asian soil, as well as the new Coronavirus, might generate problems for Tesla in China in the short term.
MarketWatch Feature: AI Algorithm Shows Success Identifying Best Brazilian Stocks and Beats Ibovespa
This stock market forecast evaluation report published recently by I Know First presents the performance of the stock market predictions generated by the I Know First AI Algorithm for the Brazilian stock market, which showed significant results during 2019 and is expected to further grow by some 15% in 2020. The evaluation used two models - the Global Model which was sent only to institutional investors and the Daily Forecast Model which was daily delivered to both individual and institutional investors.
The analysis covered the time period from June 19, 2019, to December 26, 2019. Both models consistently outperformed the Ibovespa index, generating impressive returns and accuracy. The stock market predictions generated by the AI stock algorithm provided an average return of 20.25% and 90% accuracy for the 90 days' time horizon.
Artificial intelligence can give traders investment advice based on the trading signals it has found in the market. This area is one of the more challenging and promising tasks for machine learning
There have already been a few attempts to train AIs that would be able to predict the price dynamics for various assets. Among them is an AI designed by an Israeli-based company called I Know First, which delivers daily forecasts for over 10 000 financial instruments, including stocks, ETFs and currencies. Trained on a historical dataset covering 15 years of trading, it views the markets from a holistic perspective, looking for signals in the fresh trading data and using those to model what happens next on the market. The idea is to establish a pattern and make use of it to identify the direction in which the price for the assets in a specific universe is most like to fluctuate in next, as well as the expected intensity of its swings.
Deep Learning Finance: Artificial Neural Network, Deep Learning, and Application of Deep Learning in Finance
Imagine you’re handed a piece of paper with a picture of an animal on it. You know that it’s an animal, and you know which one. Now, try to explain to somebody else how you recognized which animal it was. Which characteristics told you that it was a dog and not a cat? How did you know which characteristics were the most important to identify? If that was too easy for you, think about how you might instruct a computer to distinguish the differences between animals and to identify a given animal from an image.
Billions of neurons in our brains are interconnected to form a complex system of communication. These neurons help the brain communicate with the rest of the body and allow us to process information, and ultimately, to perform this kind of simple object recognition. Based loosely on this biological system, scientists and mathematicians developed Artificial Neural Networks (ANNs) to execute similar tasks to people, and in some cases, with more efficiency.
The failure of Alphabet (GOOGL) to challenge Microsoft’s (MSFT) Azure and Office 365 is largely why MSFT is now trading well above $145. Alphabet’s G Suite of productivity/collaboration apps is more affordable than Microsoft’s Office 365. However, home and business users still prioritize Office 365. Therefore, among many top stock picks around, you should definitely add more MSFT shares, because Office 365 has more than 200 million monthly active users.
The higher valuation of MSFT is because Microsoft is king of the $450 billion/year software industry. Global software sales is still bigger than digital advertising’s estimated annual revenue of $333 billion. Using Office 365 is also not as vulnerable to privacy issues like it is with Alphabet/Google’s advertising practices.
Going forward, both companies are great investments. However, Microsoft is the safer long-term bet. My view is that SaaS annual growth rate will remain robust for the next 10 years. On the other hand, digital advertising’s growth will eventually slow down due to more people using ad-blocking on their PCs and mobile devices.
This week, I'm writing to share I Know First's success in predicting volatile Tesla stock prices. Tesla is one of the recent 'hot stocks' with significant increases in price. I Know First's proprietary AI algorithm already had a bullish forecast for Tesla 3 months ago, leading to a return of 131.42%. Moreover, I Know First's forecast was positive over more recent time intervals too like one month, one week, and three days with respective returns of 65.84%, 29.6%, and 13.92%. Click here to get our updated Tesla forecast: will high returns continue?
Along with Tesla stock, the market as a whole has been volatile too. Recent news of coronavirus and growing uncertainty is impacting market expectations. However, one thing we're sure of is that our healthcare package has been one of the hottest of the week, returning 65.43% in 3 days. Subscribe to this package here to find the best opportunities in the healthcare sector as corona concerns grow.
Warmest Regards
Yaron Golgher, Co-Founder and CEO
Commodities, Gold & Currencies
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This week in Apple News, we're focusing on first-quarter results and developing global trends.
For the first time in company history, Apple had 91.8 billion dollars of quarterly revenue. This number is 9% higher from the same quarter of 2019 and is also the company’s record, which had an impact on Apple stock. Per Tim Cook, the demand for iPhones was responsible for the record revenue.
It's also important to note that Apple is now not only the best smartwatch-seller in the world but also the best watch-seller. However, Apple declared this week that, for safety concerns due to coronavirus, all their official stores, and corporate offices in China would be shut until February 9.
