I received an email today about a new George Gilder stock teaser and decided to look into the clues he shared about his three so-called “moonshot” stock picks.
In short, Gilder talked about a “$15 trillion market force” that he claims could make several “safe” and “bloated” companies obsolete while pushing the few “tiny companies” he’s recommending to “potentially join the S&P 500.”
Here’s a snippet from the ad:
“I’m here today because I’ve discovered something quite stunning that will bring major changes to the market.
“While many of today’s bloated and popular stocks like Facebook and Alphabet have seen their revenues decline quarter after quarter…
“And laid off thousands of workers…
“A few tiny and efficient companies are the key builders of America’s new economy, and they’re innovating at such a fast rate…
“They’re igniting a massive $15 trillion economic force.”Source: https://web.archive.org/web/20230608030656/https://www.gilderreport.com/offer/gilders-moonshots-market-shake-up-599/?source=GMMSU6M09&step=1
What “market force is Gilder referring to? Why is it supposedly bullish for his three stock picks? And what companies is he talking about?
That’s what I wanted to know.
And to find out for sure, you need to join a newsletter he runs called Gilder’s Moonshots, which costs $599 for six months.
I didn’t want to do that. So instead, I looked into his presentation to get to the bottom of what stocks he was recommending.
And in this post, I’ll show you what I found…
Unpacking George Gilder’s “Moonshot” Teaser
The essence of George Gilder’s latest “moonshot” pitch is that he’s bullish on three companies with “breakthrough innovations” that he claims are “building America’s new economy railroad” behind the scenes.
And according to Gilder, they could replace some of the existing well-established companies in the S&P 500 in the coming years.
As for the supposed “market force” he claims is causing all this, Gilder refers to it as a “convergence,” where new tech merges to create “booms” from old, tired economies.
“… let me tell you about this game-changing market force creating losers and winners in today’s stocks.
“This force is called Convergence.
“Convergence is when distinct technologies, industries or devices merge to create new booms out of old, tired economies.”
One of the examples he used to describe this phenomenon is how Kodak (which pioneered analog cameras) and other companies were made obsolete by the iPhone.
As such, some investors lost, while others won.
And that’s the gist of what he’s predicting now, in 2023. That the companies he’s recommending are at the forefront of emerging technologies like AI, machine learning, IoT, and robotics and that they could be “tomorrow’s winners.”
“Right now, a $15 trillion convergence force—I’ll tell you about it in a minute—has engulfed the market and is pushing a few little-known companies as tomorrow’s winners.”
“I’m talking about the convergence of artificial intelligence, machine learning, the Internet of Things (IoT) and robotics.
“Exciting new platforms allow communication from device to device… in smart homes… industrial… automotive… and many more markets….”
Gilder is a pretty well-known tech investing “guru” who has apparently made some decent predictions and recommendations in his time.
But does that mean his new stock picks will make you rich?
Not necessarily, no.
Still, I wanted to know what he was teasing, so I looked into his clues, and I think I know what all three of them are. So let’s discuss that now.
What Are George Gilder’s 3 Stock Picks?
George Gilder teased three separate companies in his “moonshot” presentation.
These are detailed in a research report he put together called “10X Convergence: 3 Top Stocks That Could Recharge the S&P,” which comes with a subscription to his service, but I looked into his clues to see if I could solve the riddle without joining.
What follows is my research on each company…
“The Company That Will Power Web 3.0”
According to Gilder, the first company he’s teasing has developed an AI-based platform that allows you to create an “interactive digital twin of any space.”
“This company converged artificial intelligence and digital twin technology to build a platform that will soon be part of everyday life—just like social media is.
“That platform allows anyone with a smartphone to scan a realistic 3D and fully interactive digital twin of any space…
“And share it with anyone, anywhere in the world, to give them a 360-degree walk-through of the space.”
“Vacation rentals like Airbnb, hotels, and retail shops like Guess use this technology to take customers inside their businesses virtually.”
He also shared some hints about the company’s partners, revenue, balance sheet, and stock price. Here’s an overview of those clues:
“Amazon Web Services Marketplace formed a partnership with the tiny company.
“The company’s customers include a quarter of Fortune 1000 companies, plus hundreds of companies in 150 countries.
“And the company’s numbers look even more impressive.
“In 2022, annual revenue jumped a record $136.1 million. Its total revenue was up 52% year over year.
“What’s more impressive is that the company has a strong balance sheet, with $477 million in cash and investments and no debt.
“I’ll show you how to get in on this stock at under $3.”
Based on those clues, I think he’s teasing Matterport, Inc. (MTTR), a California-based company that specializes in “digitizing and indexing the built world.”
What led me to that conclusion was the clue about the clue he shared about the retail company Guess, which he said uses the company he’s teasing’s technology.
According to this press release, GUESS has used Matterport digital twins in its business to create “immersive, virtual experiences” and help increase its productivity.
So, that was a start.
I then jumped over to Yahoo Finance, which shows that the company’s 2022 revenue was $136 million (check) and its share price is around $2.89 as of June 8, 2023 (check):
So, while I can’t be certain, Matterport looks like a match.
“Tiny Defense Contractor Powering Web 3.0”
Next, Gilder teased a “tiny” U.S. advanced microchip company that he claims is powering a whole bunch of emerging technologies and that has developed a “superior microchip described as radiation-hardened.”
“This tiny company is the only U.S.-owned, advanced microchip company doing business today.
“Its chips power the convergence exploding among artificial intelligence… quantum computing… electric vehicles… biotech… industrial IoT… aerospace and defense technology.
“And here’s the kicker…
“The company developed a superior microchip described as radiation-hardened.”
What else did he say?
According to Gilder, the company recently signed a contract with the DoD to the tune of $269 million, which he reveals is more than half of its market cap.
“The company just signed landmark contracts with the Department of Defense (DoD) totaling $269 million.
“That’s more than half the market cap of the tiny company.”
He also dropped some hints about the company’s CEO:
“The CEO is a big fish in the semiconductor industry.
“Before leading this company, he was the VP at another semiconductor firm that soared 6,160% over the last decade.
“Plus, this guy isn’t just an executive. His name is on 48 patents.”
And lastly, he shared some hints about its revenue:
“In the last quarter of 2022, revenue was $65.1 million… a 65% jump that crushed expectations.”
What could it be?
It looks like Gilder is teasing Skywater Technology (SKYT), a semiconductor engineering and fabrication foundry based in Minnesota.
Here’s why I say that:
- According to govconwire.com, Skywater Technology “secured $99 million in additional funds” from the DoD in 2022 following a previous $170 million DoD investment ($269 million total).
- The clues about the CEO seem to line up very closely with what is discussed in the Skywater CEO’s (Thomas Sonderman’s) bio on the company website. Not only does his bio state that Skywater is “the only U.S.-based and U.S.-owned semiconductor foundry,” which matches another Gilder clue, but it talks about the CEO’s previous experience in the semiconductor space and says he’s the “author of 50 patents.”
- Third, the company’s market cap is currently around $442 million, which fits.
- And lastly, its fourth quarter 2022 revenue was $65.1 million (rounded up).
So, it looks like we may have solved this one, too.
Now for Gilder’s third and final pick…
“The ‘Uber’ of Cell and Gene Therapy (CTG). Taking the Cure to the Masses”
Gilder’s third pick centers around a cell and gene therapy (CTG) company that he says is “taking CTG to the masses by converging machine learning, 3D bioprinting and medicine.”
“This company is now taking CTG to the masses by converging machine learning, 3D bioprinting and medicine.
“The company’s automated artificial intelligence network… its mobile processing labs bring together research institutes, patients and hospitals worldwide.
“That’s how they help deliver these novel therapies on-site at any hospital at an affordable cost.
“The company’s point-of-care centers are set up in the U.S., Europe, Israel and South Korea…
“And will soon penetrate Dubai.”
He also revealed that its share price is around $3…
“… you can still get in at under $3 a share.”
So, we’re looking for a CTG company with some sort of “mobile processing lab” that has operations globally, and that is trading for under $3 a share.
After looking through those hints, I couldn’t find any close matches.
But then I looked into Gilder’s “Uber” of CTG clue… and that brought me to this article on biopharma-reporter.com about a company called Orgenesis Inc (ticker: ORGS), where the company’s CEO talked about being the “Uber” of the CTG space.
From there, I found this article on ucdavis.edu about the company’s Orgenesis Mobile Processing Units and Labs™ (OMPULs™), which could be what George Gilder was referring to in the presentation when he talked about its mobile processing labs.
Next, I looked into where the company is operating. And aside from the U.S., the company site states that it has operations in Israel, Korea, and Belgium (check).
Lastly, the company’s stock is “under $3 a share” as of writing, which lines up the other clue Gilder shared.
Granted, it’s trading quite a bit under $3 a share, but technically, the clue still fits.
So, all things considered, I’d say it’s possible this is his third pick.
Recommended: Go here to see my #1 rated stock advisory of 2023
Gilder seems to have made some noteworthy calls throughout his multi-decade-long stock-picking career. For instance, he predicted that the semiconductor would “change the world forever” in the late 80s and recommended Qualcomm in the early 90s.
He has also published some popular tech-related books and is generally pretty well-known in the tech-investing space.
So, it will be interesting to see how his future predictions work out.
But as with any stock teaser presentation (aka newsletter sales pitch), I would recommend taking what is said with a pinch of salt because nobody has a crystal ball.
Just because he’s made some decent predictions in the past doesn’t mean his latest “web 3” and “convergent” predictions will play out as he suggests.
Nor does it mean his stock picks will make you lots of money.
Nevertheless, I found researching his presentation interesting and am reasonably confident I’ve figured out what all three of his picks are.
So at least now you don’t have to fork out almost $600 to find that out.
Thanks for reading, and all the best going forward!