D-Wave and naoo stocks escalate! Will the rally continue? HelloFresh after a price slide with a 100% chance?

naoo: Stock offers an opportunity to enter

An exciting newcomer to the German stock market is naoo AG. The Company aims to roll out local social media and AI-supported monetization. In Switzerland, the Company, which has been listed on the Düsseldorf stock exchange since December, is already doing extremely well. There, the naoo app is at the top of the download lists.

In the current year, naoo wants to accelerate technological development, expand its user base, and make targeted acquisitions. This led to a positive share price performance until mid-February when it reached EUR 29. However, in the tech sell-off, the price dropped to as low as EUR 10. This likely makes the share far too cheap. Investors snapped up shares on Friday, driving the share price up more than 20%. After the announcement of an exciting takeover, the share price rose by a further 20% yesterday. With the EUR 29 mark in sight, the current level of EUR 16 also offers an exciting entry opportunity.

Yesterday, the acquisition of Kingfluencers AG to accelerate growth was announced. The new subsidiary is the largest influencer agency in Switzerland and one of the most established providers in the entire German-speaking region. Its customers include brand companies such as Nestlé, L'Oréal, Migros, Samsung, and UBS. The acquisition makes perfect strategic sense. It allows naoo to expand its ecosystem and tap synergies in the areas of social media, influencer marketing, and content creation. In addition, the new subsidiary is growing strongly. Over the past four years, Kingfluencers has grown by an average of 30% per year and generated around CHF 7 million in sales in 2024. It also got off to a positive start this year and expects a positive operating result (before acquisition costs).

Why Kingfluencers are such a good fit for naoo: naoo aims to set itself apart from the competition with a unique approach that allows users and content creators to share in the platform's success. A portion of advertising and platform usage revenue is shared with the community through naoo points. To do this, naoo uses an AI-based recommendation engine for targeted offers that maximizes revenue opportunities and promotes long-term user loyalty.

In this way, the Swiss social network connects users with similar interests. naoo aims to offer a completely new local experience and recommend restaurants, fitness studios, grocery stores, and many other local businesses. Users can collect points there through their naoo QR code.

The naoo app's interactive map function, for example, is popular. It can be used to discover local events and take advantage of exclusive offers locally. Geo-based games also ensure a high level of user engagement. The Golden Egg Challenge, launched just before Christmas, attracted thousands of interactive treasure hunters. The app also offers an in-app messenger that protects privacy.

D-Wave: Back to an all-time high!

D-Wave's stock made a dramatic comeback last week. Within 5 trading days, the quantum stock rose by around 100%. On Friday alone, it gained almost 50% and is again trading at its all-time high of USD 10. The reason for this was the figures for 2024 published on Thursday evening. At first glance, it seems surprising that these were so well received. At USD 8.8 million, revenue was at the previous year's level. Although gross profit was positive at USD 5.6 million (previous year: USD 4.6 million), adjusted net income was in the red. Nevertheless, the adjusted net loss was reduced from USD 83 million to USD 75.6 million.

What convinced investors was the outlook. The increase in bookings as of December 31, 2024, from USD 13.4 million in the previous year to USD 23.9 million, points to a significant increase in sales in the current year. And this will already be evident in the first quarter. D-Wave has announced that it intends to generate USD 10 million in revenue in the first three months of 2025, more than in the whole of 2024.

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D-Wave CEO Dr. Alan Baratz was confident: "Every day, D-Wave quantum technology helps our customers gain competitive advantage, make new scientific breakthroughs, and innovate in ways previously unimaginable. Our mission is to help companies realize the benefits of quantum computing. With record bookings, record cash on hand, and a clear demonstration that our quantum system outperforms classical systems on a real-world problem, our progress towards fulfilling this mission is clear."

In addition, D-Wave shareholders should mark March 31 in their calendars. That is when the Company will hold its in-house Qubits 2025 Quantum Computing User Conference. There could be new impetus for the industry and D-Wave shares.

HelloFresh: 100% chance after price slide?

HelloFresh shares could do with a boost. The stock has lost around 40% of its value since mid-February. After a weak outlook for the current year, it fell by around 22% last week alone.

The efficiency program initiated in the second half of 2024 is to be expanded and extended to 2026. As a result of the efficiency program and significant investments in physical and digital products, HelloFresh is aiming for a significant increase in AEBIT (before impairment) from EUR 136 million to between EUR 200 million and EUR 250 million in the current year. However, growth is suffering from the efficiency program. Revenues in the current year are even expected to shrink by 3% to 8%.

Due to the significant share price slide from EUR 10 to EUR 8, analysts are also pessimistic about the share price targets above the current level. Deutsche Bank confirmed the "Hold" rating following the publication of the figures. The target for adjusted EBITDA is positive, but the revenue forecast was disappointing. The analysts see the fair value of the HelloFresh share at EUR 11. Despite the hold recommendation, this would allow for a share price increase of 37%.

According to Hauck Aufhäuser, the HelloFresh share price should even more than double. The analysts' price target is a solid EUR 17. The analysts welcome the focus on efficiency and profitable customers. This should drive profits and cash flow in the coming years. Therefore, the analysts consider the slide in the share price to be exaggerated and recommend the HelloFresh share as a "Buy".

naoo combines social media with AI and, with its focus on local offerings, targets an exciting niche, making it an attractive alternative to TikTok and Co. The app downloads indicate that the concept is well received. After the sell-off, an exciting entry opportunity is now presenting itself. D-Wave demonstrated last week how quickly it can rise back towards its all-time high. After doubling, a breather would not be surprising. HelloFresh is poised for a rebound. However, investors may still need to digest the change in strategy from growth to profitability.