Trump Targets Intel ($INTC (-0,24%) )
The president really can’t live a day without making new headlines. This time, it will either cost Intel’s former great hope his head, or the company’s favor with Trump. Intel CEO Lip-Bu Tan clawed back at Trump after he accused him of being “highly conflicted” and called for his immediate resignation, due to Tan’s involvement and investments in some Chinese firms.
As of now, Intel’s board stands with their CEO, but it’s uncertain for how long, considering how persistent the president can be at times.
New Buy: Dynatrace ($DT (-0,7%) )
Let’s talk about something more wholesome. I added a new holding to my portfolio today. Dynatrace, originally founded in Austria, is a venture capital success story with an extremely sticky business model. Dynatrace uses advanced AI models to flag and fix flaws in IT systems automatically, before its customers even notice.
It essentially works as a control room for large companies with complex, cloud-based IT structures. Importantly, Dynatrace’s applications are deeply embedded into clients’ systems, which makes it very hard to switch without disruption (therefore, very sticky). These services are offered as a subscription model, leading to recurring revenue and high margins for Dynatrace, which invests heavily in expanding its AI models to stay ahead of the competition. This is a very interesting buy – expect a detailed analysis soon.
Dodged a Bullet: Redwire ($RDW )
I have a passion for innovative defense companies. Seriously, I find them fascinating, which unfortunately makes me more inclined to hop on a train rolling straight to Neverland. Last week, I was very close to buying into Redwire’s space infrastructure story.
Ultimately, I didn’t, due to slight valuation concerns and high volatility. And, thank goodness, I was able to control myself. The company reported earnings on Wednesday, and they were bad – really bad. Redwire completely missed expectations on every metric possible, slashed guidance, and waffled about unexpected costs.
After such a horrific report and a disillusioning call, I would have sold and taken a heavy loss. Often, it’s better to keep emotions and personal interests out of investment decisions.
