Finding the Next Big Winners: Spotting High-Growth Stocks in a Technology-Driven Market

Good evening, everyone!

I’m excited to join you tonight to discuss investing, especially how to spot high-growth quality stocks.

Welcome to the Diamond Ridge Financial Academy online class, where we’ll explore proven methods for stable and profitable investing.

Last night, we covered the UK stock market and the global economy's current state. We also analyzed historical trends to identify future opportunities. Even though the global economy faces challenges like inflation and geopolitical risks, the opportunities brought by the tech revolution are greater than ever. By following these trends, we can uncover new opportunities and grow our wealth.  

The fourth industrial revolution, driven by AI and the digital economy, is set to fuel global growth by 2025, creating incredible opportunities for investors. Last night, we also studied the price trends of high-growth stocks and learned how to use the 21-day moving average to track the upward patterns of stocks and crypto.

Tonight, we’ll continue exploring the patterns of high-growth stocks to help you better spot and seize investment opportunities.  

Before we begin, let’s take a quick look at today’s market and catch up on the latest updates.

Today is Thanksgiving, so the US stock market was closed. As a result, markets across the board were quiet. For example, GBP/USD moved less than 0.0005 GBP all day, and even oil and gold saw price changes below 1%. The main reason is that the US, being the largest economy, dominates global dollar circulation, and many assets are priced in USD. When the US stock market closes, trading volumes drop significantly, liquidity shrinks, and fewer participants mean less price movement.

Compared to other global economies, the UK’s economy, while influenced by the US, has a degree of independence.

For example, on Wednesday, while US stocks led to a big drop in the Eurozone markets, the UK stock market actually went up.

Other than that, the FTSE 100 Index today continued its upward trend, thanks to the UK's strong position in technology. The UK is home to many cutting-edge technologies and emerging tech companies, excelling in some areas even beyond US markets. Fields like AI, biotech and fintech showcase the UK’s world-class companies and innovations, which provide solid support for the UK stock market.

Take AI as an example. The UK has world leaders like DeepMind, a pioneer in deep learning and AI algorithms. In biotech, institutions like Oxford University lead breakthroughs in gene editing and drug development. In fintech, companies like Revolut provide advanced services in payments, lending and investments.

These strengths in technology give the UK stock market solid support, helping it stay partly independent from US market swings and show its own unique trends.

Of course, US and UK stock markets are still interconnected, especially in traditional sectors like energy. However, the real driver of future growth lies in tech stocks. Over the past 20 years, leading technologies in the US and UK have moved toward a common focus which is AI and digital economy. From the mechanization of the 3rd Industrial Revolution to the intelligent and digital transformation of the 4th Industrial Revolution, the global economy is undergoing a major shift. Emerging technologies like AI, digital assets, renewable energy and Internet of Things are reshaping industries and driving fast economic growth.

In the future, tech stocks will continue to lead global economic development. Both US and UK stock markets will adapt closely to this trend.

To pick high-growth stocks, it’s not just about choosing the right sector or industry. You also need to catch market trends and short-term catalysts. For example, today’s top gainer in the UK stock market, Renewi PLC (LSE:RWI), soared 43.5% (see the chart) after announcing a £700.9M acquisition deal with Australia’s Macquarie. Renewi said on Thursday that Macquarie’s offer was 870 pence per share, 57% higher than Wednesday’s closing price. This premium from the deal gave Renewi’s already rising stock price an extra boost.

Besides rare opportunities like premiums from such deals, we can also look at publicly disclosed institutional moves for investment ideas. For instance, US-based BTC miner Marathon Digital Holdings recently spent $67M to buy more BTC after selling $1B in convertible bonds at a 0% interest rate. According to an article from Florida-based BTC exchange MARA Holdings, Marathon has grown its BTC holdings to 34.794K coins, valued at about $3.3B at the current spot price of $95K per BTC. Marathon also revealed it executed a $200M note buyback and set aside $160M for additional BTC purchases, signaling a “buy the dip” strategy.

This isn’t an isolated case. BTC, as the leading crypto, not only aligns with the future trend of the digital economy but is also attracting significant institutional investments. Many major institutions, like MicroStrategy and Tesla, have added BTC to their portfolios and continue to increase their holdings. This shows that institutional investors are increasingly recognizing the value of crypto and BTC, along with other major cryptos, is likely to have even greater growth potential in the future.

Because of this, BTC and other top cryptos can be seen as high-growth investment options. You can follow institutional strategies, like Marathon Digital Holdings “buy the dip” approach, to make moderate purchases during market pullbacks and aim for long-term gains. From a technical perspective, BTC is currently in an uptrend (see the chart above). If you're interested in using digital assets to achieve stable returns, feel free to message me directly so I can help you design a more profitable investment portfolio.

As for individual stocks, we can also look at potential winners driven by political factors and the tech wave, like Trump Media & Technology Group (DJT). This company, founded by former US President Donald Trump, owns the social media platform Truth Social, which aims to compete with Facebook and Twitter. With Trump’s massive influence and digital media ambitions, DJT holds a unique market position and strong growth potential.

DJT benefits from a powerful brand thanks to Trump’s political following. His large fanbase provides a massive potential user base for DJT. Truth Social’s unique positioning appeals to users dissatisfied with mainstream social platforms, offering them a space for more open expression. Additionally, DJT is actively expanding into new areas. Its acquisition of crypto trading platform Bakkt will strengthen its role in the digital asset space. While Truth Social’s current user base is relatively small, it has significant growth potential. With ongoing improvements to the platform, it could attract more users and become a major player in social media.

As for DJT's financial situation, even though its revenue is currently low, the market values its potential highly, likely because of its focus on social media and digital assets. According to the data, DJT's revenue this year is only $2.6M, but its equity is valued at over $6B. Both revenue and user growth are showing positive trends and with the launch of new services and potential acquisitions, DJT is expected to grow.

Trump Media & Technology Group (DJT) holds a unique competitive edge. First, Trump's political influence gives DJT a special market position and potential for user growth. Secondly, DJT appeals to users who are dissatisfied with mainstream social media platforms or want to share different viewpoints, creating a distinct market niche. Additionally, DJT is expanding into digital media and digital assets, with its acquisition of crypto platform Bakkt enhancing its impact in this space. This acquisition could signal further expansion into crypto and strengthen DJT's role in digital assets.

So, the bullish case for DJT centers around two key points: The first is Trump's political influence offers DJT a unique position and the potential for user growth, especially when Trump takes office on Jan 20th, which could trigger a surge in DJT stock.

Second, DJT’s push into digital media and digital assets, along with the Bakkt acquisition, should further strengthen its position in the digital asset space. As the digital media and digital asset industries continue to grow, DJT is well-positioned for new opportunities.

From a technical perspective, DJT stock saw a big surge at the end of Sept this year, with its price increasing nearly 5 times. It recently dropped back to an important support level of $25, but has since bounced back. If it breaks above the 21-day moving average, we could see another big jump.

Recently, DJT stock has become a way for investors to express their views on Trump's political stance and the company's fundamentals, especially with Trump about to take office. This has made DJT stock more volatile, but also offers good opportunities for investors.

DJT has a strong industry background, unique market positioning, active business expansion and ongoing tech innovation, all of which point to its huge potential. With the continued growth of the digital media and digital asset markets, DJT is likely to see new growth opportunities.

For those who want to follow DJT’s moves, please add my assistant now and send a message to book real-time trading tips for tomorrow’s session.

That’s all for tonight’s share! If you have any questions about stocks, crypto, forex or other investments, feel free to reach out to me. I’ll provide real-time guidance based on market conditions.

Also, please make sure your investment accounts for stocks and crypto are ready so we can implement portfolio strategies for more stable profits. In the next lesson, we will analyze the relationship between the 21-day moving average and candlestick patterns to catch accurate buy signals. Stay tuned!

If you have any questions, feel free to contact me anytime!